Registration number:
Lh Agro (Uk) Limited
for the Year Ended 28 February 2023
Lh Agro (Uk) Limited
Contents
Company Information |
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Director's Report |
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Accountants' Report |
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Profit and Loss Account |
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Balance Sheet |
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Notes to the Unaudited Financial Statements |
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Detailed Profit and Loss Account |
Lh Agro (Uk) Limited
Company Information
Director |
Mr R J Reed |
Company secretary |
Mrs R Reed |
Registered office |
|
Accountants |
|
Lh Agro (Uk) Limited
Director's Report for the Year Ended 28 February 2023
The director presents his report and the financial statements for the year ended 28 February 2023.
Director of the company
The director who held office during the year was as follows:
Principal activity
The principal activity of the company is the sale and distribution of electronic instruments and agricultural machinery
Small companies provision statement
This report has been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.
Approved and authorised by the
......................................... |
Chartered Certified Accountants' Report to the Director on the Preparation of the Unaudited Statutory Accounts of
Lh Agro (Uk) Limited
for the Year Ended 28 February 2023
In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the accounts of Lh Agro (Uk) Limited for the year ended 28 February 2023 as set out on pages 4 to 12 from the company's accounting records and from information and explanations you have given us.
As a practising member firm of the Association of Chartered Certified Accountants, we are subject to its ethical and other professional requirements which are detailed at https://www.accaglobal.com/gb/en/member/standards/rules-and-standards/rulebook.html.
This report is made solely to the Board of Directors of Lh Agro (Uk) Limited, as a body, in accordance with the terms of our engagement letter dated 11 February 2008. Our work has been undertaken solely to prepare for your approval the accounts of Lh Agro (Uk) Limited and state those matters that we have agreed to state to the Board of Directors of Lh Agro (Uk) Limited, as a body, in this report in accordance with the requirements of the Association of Chartered Certified Accountants as detailed at http://www.accaglobal.com/gb/en/technical-activities/technical-resources-search/2009/
october/factsheet-163-audit-exempt-companies.html. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Lh Agro (Uk) Limited and its Board of Directors as a body for our work or for this report.
It is your duty to ensure that Lh Agro (Uk) Limited has kept adequate accounting records and to prepare statutory accounts that give a true and fair view of the assets, liabilities, financial position and profit of Lh Agro (Uk) Limited. You consider that Lh Agro (Uk) Limited is exempt from the statutory audit requirement for the year.
We have not been instructed to carry out an audit or a review of the accounts of Lh Agro (Uk) Limited. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory accounts.
......................................
Chartered Certified Accountants
The Broadway
St Ives
Cambridgeshire
PE27 5BN
Lh Agro (Uk) Limited
Profit and Loss Account for the Year Ended 28 February 2023
Note |
2023 |
2022 |
|
Turnover |
|
|
|
Cost of sales |
( |
( |
|
Gross profit |
|
|
|
Administrative expenses |
( |
( |
|
Other operating income |
- |
|
|
Operating profit |
104,087 |
83,059 |
|
Interest payable and similar expenses |
( |
( |
|
Profit before tax |
|
|
|
Tax on profit |
( |
( |
|
Profit for the financial year |
|
|
The above results were derived from continuing operations.
The company has no recognised gains or losses for the year other than the results above.
Lh Agro (Uk) Limited
(Registration number: 02208177)
Balance Sheet as at 28 February 2023
Note |
2023 |
2022 |
|
Fixed assets |
|||
Tangible assets |
|
|
|
Current assets |
|||
Stocks |
|
|
|
Debtors |
|
|
|
Cash at bank and in hand |
|
|
|
|
|
||
Creditors: Amounts falling due within one year |
( |
( |
|
Net current assets |
|
|
|
Total assets less current liabilities |
|
|
|
Creditors: Amounts falling due after more than one year |
( |
( |
|
Net assets |
|
|
|
Capital and reserves |
|||
Called up share capital |
150,000 |
150,000 |
|
Retained earnings |
345,151 |
267,836 |
|
Shareholders' funds |
495,151 |
417,836 |
Lh Agro (Uk) Limited
(Registration number: 02208177)
Balance Sheet as at 28 February 2023
For the financial year ending 28 February 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
Director's responsibilities:
• |
|
• |
The director acknowledges his responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts. |
These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.
Approved and authorised by the
......................................... |
Lh Agro (Uk) Limited
Notes to the Unaudited Financial Statements for the Year Ended 28 February 2023
General information |
The company is a private company limited by share capital, incorporated in England and Wales.
The address of its registered office is:
England
These financial statements were authorised for issue by the
Accounting policies |
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A smaller entities - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006 (as applicable to companies subject to the small companies' regime).
Basis of preparation
These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.
Revenue recognition
Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.
The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.
Tax
The tax expense for the period comprises current tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.
Lh Agro (Uk) Limited
Notes to the Unaudited Financial Statements for the Year Ended 28 February 2023
Tangible assets
Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
Depreciation
Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:
Asset class |
Depreciation method and rate |
Plant and machinery |
25% reducing balance basis |
Fixtures and fittings |
25% reducing balance basis |
Motor vehicles |
25% reducing balance basis |
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
Trade debtors
Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.
Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.
The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.
Trade creditors
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.
Lh Agro (Uk) Limited
Notes to the Unaudited Financial Statements for the Year Ended 28 February 2023
Borrowings
Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.
Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.
Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.
Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the balance sheet as a finance lease obligation.
Lease payments are apportioned between finance costs in the profit and loss account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.
Share capital
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
Staff numbers |
The average number of persons employed by the company (including the director) during the year, was
Profit before tax |
Arrived at after charging/(crediting)
2023 |
2022 |
|
Depreciation expense |
|
|
Lh Agro (Uk) Limited
Notes to the Unaudited Financial Statements for the Year Ended 28 February 2023
Tangible assets |
Furniture, fittings and equipment |
Motor vehicles |
Other tangible assets |
Total |
|
Cost or valuation |
||||
At 1 March 2022 |
|
|
|
|
Additions |
|
- |
- |
|
Disposals |
( |
- |
- |
( |
At 28 February 2023 |
|
|
|
|
Depreciation |
||||
At 1 March 2022 |
- |
|
|
|
Charge for the year |
- |
|
|
|
Eliminated on disposal |
- |
( |
- |
( |
At 28 February 2023 |
- |
|
|
|
Carrying amount |
||||
At 28 February 2023 |
|
|
|
|
At 28 February 2022 |
|
|
|
|
Stocks |
2023 |
2022 |
|
Other inventories |
|
|
Debtors |
Current |
2023 |
2022 |
Trade debtors |
|
|
Other debtors |
|
|
|
|
Lh Agro (Uk) Limited
Notes to the Unaudited Financial Statements for the Year Ended 28 February 2023
Creditors |
Creditors: amounts falling due within one year
Note |
2023 |
2022 |
|
Due within one year |
|||
Loans and borrowings |
|
|
|
Trade creditors |
|
|
|
Taxation and social security |
|
|
|
Other creditors |
|
|
|
|
|
Creditors: amounts falling due after more than one year
Note |
2023 |
2022 |
|
Due after one year |
|||
Loans and borrowings |
|
|
Share capital |
Allotted, called up and fully paid shares
2023 |
2022 |
|||
No. |
£ |
No. |
£ |
|
|
|
150,000 |
|
150,000 |
Lh Agro (Uk) Limited
Notes to the Unaudited Financial Statements for the Year Ended 28 February 2023
Loans and borrowings |
2023 |
2022 |
|
Non-current loans and borrowings |
||
Bank borrowings |
|
|
Hire purchase contracts |
- |
|
|
|
2023 |
2022 |
|
Current loans and borrowings |
||
Bank borrowings |
|
|
Hire purchase contracts |
|
|
|
|
Related party transactions |
Transactions with the director |
2023 |
At 1 March 2022 |
Repayments by director |
At 28 February 2023 |
Mr R J Reed |
|||
Loan (to)/from director - interest free, unsecured and repayable on demand |
( |
|
( |
2022 |
At 1 March 2021 |
Repayments by director |
At 28 February 2022 |
Mr R J Reed |
|||
Loan (to)/from director - interest free, unsecured and repayable on demand |
( |
|
( |
Director's remuneration
The director's remuneration for the year was as follows:
2023 |
2022 |
|
Remuneration |
|
|
Lh Agro (Uk) Limited
Detailed Profit and Loss Account for the Year Ended 28 February 2023
2023 |
2022 |
|
turnover (analysed below) |
2,053,426 |
1,630,356 |
Cost of sales (analysed below) |
(1,247,073) |
(950,732) |
Gross profit |
806,353 |
679,624 |
Gross profit (%) |
39.27% |
41.69% |
Administrative expenses |
||
Employment costs (analysed below) |
411,834 |
325,650 |
Establishment costs (analysed below) |
105,311 |
95,241 |
General administrative expenses (analysed below) |
151,363 |
141,030 |
Finance charges (analysed below) |
2,076 |
1,673 |
Depreciation costs (analysed below) |
31,682 |
40,471 |
702,266 |
604,065 |
|
Other operating income (analysed below) |
- |
7,500 |
Operating profit |
104,087 |
83,059 |
Interest payable and similar charges (analysed below) |
(2,294) |
(5,502) |
Profit before tax |
101,793 |
77,557 |
Lh Agro (Uk) Limited
Detailed Profit and Loss Account for the Year Ended 28 February 2023
2023 |
2022 |
Turnover |
||
Sales, UK |
2,053,426 |
1,630,356 |
Cost of sales |
||
Opening stock |
326,140 |
174,624 |
Purchases |
1,198,486 |
1,077,684 |
Closing stock |
(298,330) |
(326,140) |
Freight and carriage |
20,777 |
24,564 |
1,247,073 |
950,732 |
Employment costs |
||
Wages and salaries |
269,475 |
213,774 |
Staff NIC (Employers) |
22,816 |
20,002 |
Directors remuneration |
76,545 |
45,000 |
Directors NIC (Employers) |
8,628 |
4,158 |
Staff pensions (Defined contribution) |
8,466 |
7,590 |
Subcontract cost |
21,610 |
33,338 |
Staff training |
632 |
- |
Staff welfare |
3,662 |
1,788 |
411,834 |
325,650 |
Establishment costs |
||
Rent |
30,445 |
29,180 |
Water rates |
298 |
360 |
Light, heat and power |
2,820 |
2,410 |
Insurance |
22,337 |
22,706 |
Repairs and renewals |
49,411 |
40,585 |
105,311 |
95,241 |
Lh Agro (Uk) Limited
Detailed Profit and Loss Account for the Year Ended 28 February 2023
2023 |
2022 |
General administrative expenses |
||
Telephone and fax |
12,775 |
14,823 |
Computer software and maintenance costs |
1,446 |
2,112 |
Printing, postage and stationery |
3,927 |
3,620 |
Trade subscriptions |
10,408 |
8,525 |
Charitable donations |
1,246 |
1,636 |
Sundry expenses |
- |
43 |
Cleaning |
1,820 |
1,820 |
Petrol or diesel |
31,752 |
29,807 |
Motor insurance |
1,564 |
- |
Motor repairs and renewals |
8,905 |
21,146 |
Travel and subsistence |
28,430 |
13,924 |
Hotel accommodation |
17,086 |
7,248 |
Advertising |
29,490 |
33,527 |
Accountancy fees |
1,150 |
1,109 |
Legal and professional fees |
- |
525 |
Leasing payments |
1,364 |
1,165 |
151,363 |
141,030 |
Finance charges |
||
Bank charges |
2,076 |
1,673 |
Depreciation costs |
||
Depreciation of plant and machinery (owned) |
- |
489 |
Depreciation of fixtures and fittings (owned) |
368 |
2,527 |
Depreciation of motor vehicles (owned) |
28,093 |
37,455 |
Depreciation of office equipment (owned) |
3,221 |
- |
31,682 |
40,471 |
Other operating income |
||
Other operating income |
- |
7,500 |
Interest payable and similar expenses |
||
Bank interest payable |
- |
553 |
Bank loan interest payable |
676 |
- |
Hire purchase interest |
1,618 |
4,949 |
2,294 |
5,502 |