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REGISTERED NUMBER: 03280008 (England and Wales)















LYNDHURST SHOE COMPANY LIMITED

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED 28 FEBRUARY 2023






LYNDHURST SHOE COMPANY LIMITED (REGISTERED NUMBER: 03280008)

CONTENTS OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2023










Page

Company Information 1

Strategic Report 2

Report of the Directors 4

Report of the Independent Auditors 6

Statement of Comprehensive Income 9

Statement of Financial Position 10

Statement of Changes in Equity 11

Notes to the Financial Statements 12


LYNDHURST SHOE COMPANY LIMITED

COMPANY INFORMATION
FOR THE YEAR ENDED 28 FEBRUARY 2023







DIRECTORS: S Morley
A M Morley
A Morley-Doidge
R L Morley



SECRETARY: L Hunter



REGISTERED OFFICE: Units 1-7 Fallbarn Road
Rawtenstall
Lancashire
BB4 7NT



REGISTERED NUMBER: 03280008 (England and Wales)



AUDITORS: DTE Business Advisers Limited
Chartered Accountants
Statutory Auditors
The Exchange
5 Bank Street
Bury
BL9 0DN



BANKERS: Lloyds TSB Bank plc
Church Street
Blackburn
Lancashire
BB2 1JQ

LYNDHURST SHOE COMPANY LIMITED (REGISTERED NUMBER: 03280008)

STRATEGIC REPORT
FOR THE YEAR ENDED 28 FEBRUARY 2023


The directors present their strategic report for the year ended 28 February 2023.

REVIEW OF BUSINESS
The results for the period and financial position of the company are shown in the annexed financial statements.

The directors are satisfied with the turnover and results achieved in the year. These have been achieved despite the continuing difficulties facing the retail and footwear industry. As in the prior year, the majority of sales are generated from the company's key brands.

The company's gross profit margin fluctuates year on year due to a number of factors including:

- Exchange rate variation impacting the purchase price of goods.

- The sales mix of product type sold

- The ratio of wholesale and cash and carry

Going forward, the directors believe that it will be very difficult to sustain the current year's results but they will aim to do so by improving the product range and building on strong relationships with customers.

PRINCIPAL RISKS AND UNCERTAINTIES
The main ongoing risks facing the company are falling demand, foreign currency exposure and bad debts.

The shoe industry is highly competitive and a general downturn in consumer spending has seen increased pressure from customers in relation to prices. The current downturn in consumer spending will continue to put sales under pressure over the next twelve months. Demand may be further impacted by unseasonal weather patterns.

Falling demand - the directors aim to mitigate this risk by sourcing new customers and also continually offering new product designs.

Rising cost of raw materials and manufacturing cost - price increases will be passed on to customers where possible to help mitigate against this risk.

Fluctuation in shipping costs - as some customers move to freight on board (FOB) it will help to mitigate against this risk.

Bad debt risk - As retail outlets continue to suffer, the risk of bad debts is expected to increase in the coming year. The directors operate a strong credit control function, impose strict credit limits and continually monitor balances owed.

Foreign currency exposure - the fluctuation of the pound against the US dollar will continue to impact margins. The risk is mitigated where possible by the use of forward contracts.

KEY PERFORMANCE INDICATORS
The key performance indicators used by the directors are:-

i) Monthly sales data - which is compared to results in the prior year.

ii) Monthly sales ledger - which is is analysed by age of balance.

iii) Profit margins on a product by product basis.


LYNDHURST SHOE COMPANY LIMITED (REGISTERED NUMBER: 03280008)

STRATEGIC REPORT
FOR THE YEAR ENDED 28 FEBRUARY 2023

FUTURE DEVELOPMENTS
Trading since the year end has continued to be challenging, in light of the cost of living crisis.

ON BEHALF OF THE BOARD:





S Morley - Director


22 November 2023

LYNDHURST SHOE COMPANY LIMITED (REGISTERED NUMBER: 03280008)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 28 FEBRUARY 2023


The directors present their report with the financial statements of the company for the year ended 28 February 2023.

PRINCIPAL ACTIVITY
The principal activity of the company in the year under review was that of the design, import and sale of footwear.

DIVIDENDS
No dividends will be distributed for the year ended 28 February 2023.

DIRECTORS
The directors shown below have held office during the whole of the period from 1 March 2022 to the date of this report.

S Morley
A M Morley
A Morley-Doidge
R L Morley

Other changes in directors holding office are as follows:

A M Turner - resigned 13 September 2022

DISCLOSURE IN THE STRATEGIC REPORT
Identification of the information for which the company has chosen, in accordance with s414C(11) of the Companies Act, to set out in the company's strategic report which would otherwise be required by Schedule 7 of the 'Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008' to be contained in the directors' report.

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-select suitable accounting policies and then apply them consistently;
-make judgements and accounting estimates that are reasonable and prudent;
-state whether applicable accounting standards have been followed, subject to any material departures disclosed and
explained in the financial statements;
-prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

LYNDHURST SHOE COMPANY LIMITED (REGISTERED NUMBER: 03280008)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 28 FEBRUARY 2023


AUDITORS
DTE Business Advisers Limited has indicated its willingness to be reappointed for another term and appropriate arrangements are being made for it to be deemed reappointed as auditor in the absence of an Annual General Meeting.

ON BEHALF OF THE BOARD:





S Morley - Director


22 November 2023

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
LYNDHURST SHOE COMPANY LIMITED


Opinion
We have audited the financial statements of Lyndhurst Shoe Company Limited (the 'company') for the year ended 28 February 2023 which comprise the Statement of Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:
-give a true and fair view of the state of the company's affairs as at 28 February 2023 and of its profit for the year then ended;
-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
LYNDHURST SHOE COMPANY LIMITED


Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page four, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

As part of our planning process:
- We enquired of management the systems and controls the company has in place, the areas of the financial statements that are mostly susceptible to the risk of irregularities and fraud, and whether there was any known, suspected or alleged fraud.
- We obtained an understanding of the legal and regulatory frameworks applicable to the company. We determined that the following were most relevant: FRS 102, Companies Act 2006 and Health & Safety at Work 1974.
- We considered the incentives and opportunities that exist in the company, including the extent of management bias, which present a potential for irregularities and fraud to be perpetuated, and tailored our risk assessment accordingly.
- Using our knowledge of the company, together with the discussions held with the company at the planning stage, we formed a conclusion on the risk of misstatement due to irregularities including fraud and tailored our procedures according to this risk assessment.

The key procedures we undertook to detect irregularities including fraud during the course of the audit included:
- Identifying and testing journal entries, in particular those that were significant and unusual.
- Reviewing the financial statement disclosures and determining whether accounting policies have been appropriately applied.
- Reviewing and challenging the assumptions and judgements used by management in their significant accounting estimates, in particular in relation to bad debt and inventory provisions.
- Assessing the extent of compliance, or lack of, with the relevant laws and regulations.
- Testing key revenue lines, for evidence of management bias.
- Documenting and verifying all significant related party balances and transactions.


REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
LYNDHURST SHOE COMPANY LIMITED

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements even though we have properly planned and performed our audit in accordance with auditing standards. The primary responsibility for the prevention and detection of irregularities and fraud rests with the directors.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Use of our report
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.




Fiona O'Loughlin (Senior Statutory Auditor)
for and on behalf of DTE Business Advisers Limited
Chartered Accountants
Statutory Auditors
The Exchange
5 Bank Street
Bury
BL9 0DN

27 November 2023

LYNDHURST SHOE COMPANY LIMITED (REGISTERED NUMBER: 03280008)

STATEMENT OF COMPREHENSIVE
INCOME
FOR THE YEAR ENDED 28 FEBRUARY 2023

2023 2022
Notes £    £   

REVENUE 3 10,272,816 11,869,831

Cost of sales (8,292,271 ) (8,729,263 )
GROSS PROFIT 1,980,545 3,140,568

Administrative expenses (402,389 ) (579,822 )
1,578,156 2,560,746

Other operating income 4 14,210 32,271
OPERATING PROFIT 6 1,592,366 2,593,017

Income from fixed asset investments 5,525 1,437
Interest receivable and similar income 7 253,575 4,331
1,851,466 2,598,785

Interest payable and similar expenses 8 (3,064 ) (353 )
PROFIT BEFORE TAXATION 1,848,402 2,598,432

Tax on profit 9 (363,762 ) (498,528 )
PROFIT FOR THE FINANCIAL YEAR 1,484,640 2,099,904

OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

1,484,640

2,099,904

LYNDHURST SHOE COMPANY LIMITED (REGISTERED NUMBER: 03280008)

STATEMENT OF FINANCIAL POSITION
28 FEBRUARY 2023

2023 2022
Notes £    £   
FIXED ASSETS
Intangible assets 10 - -
Property, plant and equipment 11 68,351 88,002
Investments 12 1,590,185 620,164
1,658,536 708,166

CURRENT ASSETS
Inventories 13 893,239 1,612,534
Debtors 14 2,042,108 3,266,915
Cash at bank 16,382,633 5,418,640
19,317,980 10,298,089
CREDITORS
Amounts falling due within one year 15 (9,414,314 ) (928,693 )
NET CURRENT ASSETS 9,903,666 9,369,396
TOTAL ASSETS LESS CURRENT
LIABILITIES

11,562,202

10,077,562

CAPITAL AND RESERVES
Called up share capital 16 2 2
Retained earnings 11,562,200 10,077,560
SHAREHOLDERS' FUNDS 11,562,202 10,077,562

The financial statements were approved by the Board of Directors and authorised for issue on 22 November 2023 and were signed on its behalf by:




A Morley-Doidge - Director



R L Morley - Director


LYNDHURST SHOE COMPANY LIMITED (REGISTERED NUMBER: 03280008)

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 28 FEBRUARY 2023

Called up
share Retained Total
capital earnings equity
£    £    £   
Balance at 1 March 2021 2 7,977,656 7,977,658

Changes in equity
Total comprehensive income - 2,099,904 2,099,904
Balance at 28 February 2022 2 10,077,560 10,077,562

Changes in equity
Total comprehensive income - 1,484,640 1,484,640
Balance at 28 February 2023 2 11,562,200 11,562,202

LYNDHURST SHOE COMPANY LIMITED (REGISTERED NUMBER: 03280008)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2023


1. STATUTORY INFORMATION

Lyndhurst Shoe Company Limited is a private company, limited by shares, registered in England and Wales, registration number 03280008. The registered office is 1-7 Fallbarn Road, Rawtenstall, Lancashire BB4 7NT.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

Going concern
The company had net assets of £11,562,202 (2022: £10,077,562) and a cash balance of £16,382,633 (2022: £5,418,640) at the year end and so is well placed to meet all its cash requirements for the next 12 months. The company has continued to trade profitably post-year end. The directors believe that the company can manage the risk it faces at these challenging times and therefore continue to adopt the going concern basis of accounting in preparing these financial statements.

The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

the requirements of Section 7 Statement of Cash Flows;
the requirement of paragraph 33.7.

Critical accounting estimates and judgements
In the application of the company's accounting policies, the directors are required to make estimates and judgement. The estimates are based on historical experience and other relevant factors. Actual results may differ from these estimates.

The estimates are continually evaluated. Revisions to accounting estimates are recognised in the period in which the estimate is revised.

The estimates and assumptions which have a significant risk of causing material adjustment to the carrying amount of assets and liabilities are outlined below.

Making judgement based on historical experience on the level of provision required for impairment of inventory. Further information received after the statement of financial position date may impact on the level of provision required.

The directors use judgement to provide against bad debts using knowledge of customers and experience. The provisions are revisited after the statement of financial position date to ensure appropriate.

LYNDHURST SHOE COMPANY LIMITED (REGISTERED NUMBER: 03280008)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 28 FEBRUARY 2023


2. ACCOUNTING POLICIES - continued

Revenue
Revenue comprises the aggregate of the fair value of the sale of footwear, net of value-added tax. Revenue is recognised when the company has delivered goods to the customer, the customer has accepted the goods and collection of the related receivables is anticipated.

Trademarks
Trademarks are accounted for at cost. Trademarks are amortised over the following useful economic lives:

Groundwork - over 10 years
Cushion Walk - over 10 years

The directors also consider the need for impairment annually, if any such impairment is noted it is recognised in the income statement immediately. Trademarks are amortised in full.

Property, plant and equipment
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Improvements to property - 2% on cost
Plant and machinery - 20% on reducing balance
Fixtures and fittings - 20% on reducing balance
Motor vehicles - 25% on reducing balance
Computer equipment - 33% on reducing balance

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of comprehensive income.

The residual values, estimated useful lives and depreciation method of property, plant and equipment are reviewed, and adjusted as appropriate, at each statement of financial position date. The effects of any revision are recognised in the income statement when the change arises.

Cash and cash equivalents
Cash and cash equivalents include cash in hand, deposits held at call with banks and other short term liquid investments with original maturities of three months or less.

Government grants
Grants are accounted for under the accruals model as permitted by FRS 102.

During the prior year the company benefitted from the Government Coronavirus Job Retention Scheme ('Furlough'). Furlough income has been recognised in "other income" in the same period as the related wage costs.

The company has not directly benefitted from any other forms of government assistance.

Inventories
Inventories are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Costs, which comprise purchase price, duty and shipping are based on the average cost for the period. Net realisable value is based on the estimated selling price less any estimated completion or selling costs.

LYNDHURST SHOE COMPANY LIMITED (REGISTERED NUMBER: 03280008)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 28 FEBRUARY 2023


2. ACCOUNTING POLICIES - continued

Financial instruments
The company enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable, loans from banks and other third parties and loans to related parties.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, and impairment loss is recognised in the income statement.

Basic financial liabilities are initially measured at transaction price and subsequently measured at amortised cost.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date.

Deferred tax
Deferred tax is recognised in respect of all material timing differences that have originated but not reversed at the statement of financial position date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Foreign currencies
Monetary assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the statement of financial position date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to the income statement in the period in which they relate.

Fixed asset investments
Listed investments are included at fair value, with changes in fair value being recognised in the income statement.

Income from fixed asset investments is received in the form of dividends and is credited to the income statement when received.

Dividends
Equity dividends are recognised when they become legally payable and are no longer at the discretion of the company.

LYNDHURST SHOE COMPANY LIMITED (REGISTERED NUMBER: 03280008)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 28 FEBRUARY 2023


3. REVENUE

The revenue and profit before taxation are attributable to the one principal activity of the company.

An analysis of revenue by geographical market is given below:

2023 2022
£    £   
United Kingdom 9,326,779 10,881,491
Europe 475,827 688,028
Rest of the world 470,210 300,312
10,272,816 11,869,831

4. OTHER OPERATING INCOME
2023 2022
£    £   
Rents received 14,210 -
Furlough income - 7,271
Management charges - 25,000
14,210 32,271

5. EMPLOYEES AND DIRECTORS
2023 2022
£    £   
Wages and salaries 175,823 179,635
Social security costs 12,669 11,809
Other pension costs 3,368 4,434
191,860 195,878

The average number of employees during the year was as follows:
2023 2022

Administration 7 8
Warehouse 3 3
10 11

2023 2022
£    £   
Directors' remuneration 37,349 39,722

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes 3 3

LYNDHURST SHOE COMPANY LIMITED (REGISTERED NUMBER: 03280008)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 28 FEBRUARY 2023


6. OPERATING PROFIT

The operating profit is stated after charging/(crediting):

2023 2022
£    £   
Depreciation - owned assets 11,854 16,794
Profit on disposal of fixed assets (5,353 ) -
Auditors' remuneration 8,500 8,500
Foreign exchange differences (219,959 ) (33,258 )
Revaluation of investments 31,236 10,176
Furlough income - (7,271 )

7. INTEREST RECEIVABLE AND SIMILAR INCOME
2023 2022
£    £   
Deposit account interest 250,339 3,345
Corporation tax interest 3,236 986
253,575 4,331

8. INTEREST PAYABLE AND SIMILAR EXPENSES
2023 2022
£    £   
Interest on late corporation tax 3,064 353

9. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
2023 2022
£    £   
Current tax:
UK corporation tax 363,762 498,528
Tax on profit 363,762 498,528

UK corporation tax was charged at 19%) in 2022.

LYNDHURST SHOE COMPANY LIMITED (REGISTERED NUMBER: 03280008)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 28 FEBRUARY 2023


9. TAXATION - continued

Reconciliation of total tax charge included in profit and loss
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

2023 2022
£    £   
Profit before tax 1,848,402 2,598,432
Profit multiplied by the standard rate of corporation tax in the UK of 19%
(2022 - 19%)

351,196

493,702

Effects of:
Expenses not deductible for tax purposes 5,793 2,102
Income not taxable for tax purposes (1,050 ) (273 )
Depreciation in excess of capital allowances 3,734 -
Deferred tax not recognised - 2,997
Chargeable gains 146 -
Interest on corporation tax 3,943 -
Total tax charge 363,762 498,528

For financial years beginning after 1 April 2023, the corporation tax rate will be increased to 25% for profits over £250,000. A small profits rate (SPR) will also be introduced for companies with profits of £50,000 or less so that they will continue to pay corporation tax at 19%. Companies with profits between £50,000 and £250,000 will pay tax at the main rate reduced by marginal relief. The directors are not aware of any other factors that will materially affect the future tax charge.

10. INTANGIBLE FIXED ASSETS
Trademarks
£   
COST
At 1 March 2022
and 28 February 2023 2,577,588
AMORTISATION
At 1 March 2022
and 28 February 2023 2,577,588
NET BOOK VALUE
At 28 February 2023 -
At 28 February 2022 -

LYNDHURST SHOE COMPANY LIMITED (REGISTERED NUMBER: 03280008)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 28 FEBRUARY 2023


11. PROPERTY, PLANT AND EQUIPMENT
Improvements Fixtures
to Plant and and
property machinery fittings
£    £    £   
COST
At 1 March 2022 62,819 13,356 67,679
Disposals - - -
At 28 February 2023 62,819 13,356 67,679
DEPRECIATION
At 1 March 2022 24,283 12,713 63,342
Charge for year 1,256 180 762
Eliminated on disposal - - -
At 28 February 2023 25,539 12,893 64,104
NET BOOK VALUE
At 28 February 2023 37,280 463 3,575
At 28 February 2022 38,536 643 4,337

Motor Computer
vehicles equipment Totals
£    £    £   
COST
At 1 March 2022 66,359 68,076 278,289
Disposals (12,475 ) - (12,475 )
At 28 February 2023 53,884 68,076 265,814
DEPRECIATION
At 1 March 2022 24,143 65,806 190,287
Charge for year 8,824 832 11,854
Eliminated on disposal (4,678 ) - (4,678 )
At 28 February 2023 28,289 66,638 197,463
NET BOOK VALUE
At 28 February 2023 25,595 1,438 68,351
At 28 February 2022 42,216 2,270 88,002

LYNDHURST SHOE COMPANY LIMITED (REGISTERED NUMBER: 03280008)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 28 FEBRUARY 2023


12. FIXED ASSET INVESTMENTS
Listed
investments
£   
COST OR VALUATION
At 1 March 2022 620,164
Additions 992,500
Revaluations (31,236 )
Dividends received 8,757
At 28 February 2023 1,590,185
NET BOOK VALUE
At 28 February 2023 1,590,185
At 28 February 2022 620,164

Cost or valuation at 28 February 2023 is represented by:

Listed
investments
£   
Valuation in 2023 (31,236 )
Valuation in 2022 (10,176 )
Valuation in 2021 968
Valuation in 2020 (13,023 )
Valuation in 2019 (107,934 )
Valuation in 2018 2,425
Valuation in 2017 (55,121 )
Valuation in 2016 (90,076 )
Valuation in 2015 (9,247 )
Valuation in 2014 (56,769 )
Cost 1,960,374
1,590,185

13. INVENTORIES
2023 2022
£    £   
Finished goods 514,959 936,125
Goods in transit 378,280 676,409
893,239 1,612,534

LYNDHURST SHOE COMPANY LIMITED (REGISTERED NUMBER: 03280008)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 28 FEBRUARY 2023


14. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Trade debtors 1,712,209 2,378,965
Other debtors 70,444 64,355
Amount due from related parties - 691,477
Directors' loan account - 47,774
S455 taxation debtor 134 1,763
Accrued income 176,740 -
Prepayments 82,581 82,581
2,042,108 3,266,915

15. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Trade creditors 427,413 241,911
Corporation tax 339,309 309,348
Social security and other taxes 4,756 32,003
Other creditors 128,847 132,254
Amounts due to related parties 6,436,205 -
Directors' loan account 2,008,990 26,100
Accrued expenses 68,794 187,077
9,414,314 928,693

16. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: £    £   
2 Ordinary £1 2 2

17. ULTIMATE PARENT COMPANY

The immediate parent company is LSC Holdings Limited, company registered in England and Wales.

The ultimate parent company is LSC Group Limited, company registered in England and Wales. The results of the company are included within the consolidated financial statements of LSC Group Limited, copies of which can be obtained from the company's registered office at Units 1 - 7 Fallbarn Road, Rawtenstall, Rossendale, Lancashire, BB4 7NT.

18. DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

In the prior year included within debtors due within one year is an overdrawn director's loan account balance in respect of S Morley totalling £47,774. These amounts were interest free, unsecured and were repaid in the current year. There were no advances or repayments during the prior year which are considered material.

LYNDHURST SHOE COMPANY LIMITED (REGISTERED NUMBER: 03280008)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 28 FEBRUARY 2023


19. RELATED PARTY DISCLOSURES

Rent amounting to £46,000 (2022: £55,000) was paid to a director for the occupation of the properties used by the company.

Included within creditors falling due within one year are amounts due from related parties of £6,436,205 (2022: £691,477 debtor). These loans are interest free, unsecured and repayable on demand.

All related party loans are due from or to companies which are under the control of the directors of Lyndhurst Shoe Company Limited.

20. ULTIMATE CONTROLLING PARTY

The company is controlled jointly by A Morley-Doidge, R L Morley and S Morley as shareholders of the ultimate parent company LSC Group Limited. No single shareholder has overall control.