REGISTERED NUMBER: 09580353 (England and Wales) |
Lynx (GP) Holdings Limited |
Group Strategic Report, |
Directors' Report and |
Consolidated Financial Statements |
for the Year Ended 31 May 2023 |
REGISTERED NUMBER: 09580353 (England and Wales) |
Lynx (GP) Holdings Limited |
Group Strategic Report, |
Directors' Report and |
Consolidated Financial Statements |
for the Year Ended 31 May 2023 |
Lynx (GP) Holdings Limited (Registered number: 09580353) |
Contents of the Consolidated Financial Statements |
for the year ended 31 May 2023 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Directors' Report | 3 |
Independent Auditors' Report | 4 |
Consolidated Income Statement | 7 |
Consolidated Other Comprehensive Income | 8 |
Consolidated Balance Sheet | 9 |
Company Balance Sheet | 10 |
Consolidated Statement of Changes in Equity | 11 |
Company Statement of Changes in Equity | 12 |
Consolidated Cash Flow Statement | 13 |
Notes to the Consolidated Financial Statements | 14 |
Lynx (GP) Holdings Limited |
Company Information |
for the year ended 31 May 2023 |
Directors: |
Registered office: |
Registered number: |
Auditors: |
Statutory Auditor |
250 Fowler Avenue |
Farnborough |
Hampshire |
GU14 7JP |
Lynx (GP) Holdings Limited (Registered number: 09580353) |
Group Strategic Report |
for the year ended 31 May 2023 |
The directors present their strategic report of the company and the group for the year ended 31 May 2023. |
Fair review of business |
The directors aim to present a balanced and comprehensive review of the development and performance of the business during the period. The review is consistent with its size and objectives. |
The business continues to review is KPI's and is satisfied with its performance over the period. It continues to adjust and flex to the changing marketplace and has put itself in a very strong position to maximise future opportunities. Turnover and margins continue to be in line with expectations. Long term objectives and strategic opportunities remain on track with succession planning on track. We continue to invest in the skills of the key personnel, so we have highest calibre of person to provide excellence in our delivery. |
Lynx Construction Group continues with its environmental commitments and maintains its Carbon Neutrality Status already gained. |
Principal risks and uncertainties |
The group remains in a strong position on all trading fronts, it continues to review risks to the business and plans remain in place for any contingency plans that are required to mitigate these. The Directors remain confident that cost control and cash flow remain strong within the group. |
All works remain with 'Blue Chip' clients remain strong and positive, where our service and position remain focused. The Directors are satisfied that the group remains able to meet obligations and operations for the next 12 months, for this reason the directors have adopted the going concern basis in preparing these statements. |
On behalf of the board: |
Lynx (GP) Holdings Limited (Registered number: 09580353) |
Directors' Report |
for the year ended 31 May 2023 |
The directors present their report with the financial statements of the company and the group for the year ended 31 May 2023. |
Principal activity |
The principal activity of the group continues to be that of the construction and refurbishment of petroleum retail forecourts. However, the business has recognised the diminishing nature of the petroleum business and has invested in rebranding itself as the 'Lynx Construction Group'. Using its core expertise in the construction and refurbishment of 'online warehouse, restaurant outlets and EV Hubs', the company will now focus on four core sectors: Petroleum, Retail, Commercial and EV. |
Dividends |
During the year, no ordinary dividends were paid (2022 - £300,000). |
Directors |
The directors shown below have held office during the whole of the period from 1 June 2022 to the date of this report. |
Statement of directors' responsibilities |
The directors are responsible for preparing the Group Strategic Report, the Directors' Report 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 the group and of the profit or loss of the group 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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group 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 group's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
On behalf of the board: |
Independent Auditors' Report to the Members of |
Lynx (GP) Holdings Limited |
Opinion |
We have audited the financial statements of Lynx (GP) Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 May 2023 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement 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 group's and of the parent company affairs as at 31 May 2023 and of the group's 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 group 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 group's and the parent 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 Group Strategic Report and the Directors' Report, but does not include the financial statements and our Auditors' Report 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 Group Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Group Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements. |
Independent Auditors' Report to the Members of |
Lynx (GP) Holdings Limited |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Directors' Report. |
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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the parent company 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, 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 group's and the parent 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 group or the parent 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 an Auditors' Report 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. |
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below. |
We gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates, and considered the risk of acts by the company that were contrary to applicable laws and regulations, including fraud. We discussed with the di rectors the policies and procedures in place regarding compliance with laws and regulations. We discussed amongst the audit team the identified laws and regulations, and remained alert to any indications of non-compliance. |
During the audit we focussed on laws and regulations which could reasonably be expected to give rise to a material misstatement in the financial statements, including, but not limited to, the Companies Act 2006 and UK tax legislation. |
Our procedures in relation to fraud, included but were not limited to: inquires of management whether they have any knowledge of any actual, suspected or alleged fraud, and discussions amongst the audit team regarding risk of fraud such as opportunities for fraudulent manipulation of financial statements. We determined that the principal risks related to posting manual journal entries to manipulate financial performance and management bias through judgements in accounting estimates and challenged the assumptions and judgements made by management in its significant accounting estimates. We also addressed the risk of management override of internal controls, including testing journals and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud. Our tests included agreeing the financial statement disclosures to underlying supporting |
documentation. |
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. |
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 Auditors' Report. |
Independent Auditors' Report to the Members of |
Lynx (GP) Holdings Limited |
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 an Auditors' Report 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. |
for and on behalf of |
Statutory Auditor |
250 Fowler Avenue |
Farnborough |
Hampshire |
GU14 7JP |
Lynx (GP) Holdings Limited (Registered number: 09580353) |
Consolidated |
Income Statement |
for the year ended 31 May 2023 |
2023 | 2022 |
Notes | £ | £ |
Turnover | 4 | 17,024,218 | 12,205,469 |
Cost of sales | (14,649,998 | ) | (9,657,502 | ) |
Gross profit | 2,374,220 | 2,547,967 |
Administrative expenses | (1,124,763 | ) | (1,074,329 | ) |
Operating profit | 1,249,457 | 1,473,638 |
Interest receivable and similar income | 4,282 | 347 |
1,253,739 | 1,473,985 |
Gain/loss on revaluation of assets | (584,995 | ) | 464,642 |
Profit before taxation | 7 | 668,744 | 1,938,627 |
Tax on profit | 9 | (79,112 | ) | (477,356 | ) |
Profit for the financial year |
Profit attributable to: |
Owners of the parent | 409,632 | 1,311,271 |
Non-controlling interests | 180,000 | 150,000 |
589,632 | 1,461,271 |
Lynx (GP) Holdings Limited (Registered number: 09580353) |
Consolidated |
Other Comprehensive Income |
for the year ended 31 May 2023 |
2023 | 2022 |
Notes | £ | £ |
Profit for the year | 589,632 | 1,461,271 |
Other comprehensive income |
Revaluation of investment property | (615,125 | ) | 511,419 |
Deferred tax on revaluation | 153,781 | (142,723 | ) |
Transfer from reserves | 461,344 | (368,696 | ) |
Income tax relating to components of other comprehensive income |
- |
- |
Other comprehensive income for the year, net of income tax |
- |
- |
Total comprehensive income for the year | 589,632 | 1,461,271 |
Total comprehensive income attributable to: |
Owners of the parent | 589,632 | 1,461,271 |
Lynx (GP) Holdings Limited (Registered number: 09580353) |
Consolidated Balance Sheet |
31 May 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
Fixed assets |
Intangible assets | 12 | - | - |
Tangible assets | 13 | 702,279 | 606,883 |
Investments | 14 | 1,128,353 | 1,098,223 |
Investment property | 15 | 2,997,875 | 3,613,000 |
4,828,507 | 5,318,106 |
Current assets |
Debtors | 16 | 8,844,784 | 3,154,706 |
Cash at bank and in hand | 2,191,149 | 2,634,998 |
11,035,933 | 5,789,704 |
Creditors |
Amounts falling due within one year | 17 | 8,010,659 | 3,514,880 |
Net current assets | 3,025,274 | 2,274,824 |
Total assets less current liabilities | 7,853,781 | 7,592,930 |
Provisions for liabilities | 18 | 84,235 | 233,016 |
Net assets | 7,769,546 | 7,359,914 |
Capital and reserves |
Called up share capital | 19 | 128 | 128 |
Share premium | 1,656,653 | 1,656,653 |
Fair value reserve | 450,047 | 911,391 |
Retained earnings | 5,662,718 | 4,791,742 |
Shareholders' funds | 7,769,546 | 7,359,914 |
The financial statements were approved by the Board of Directors and authorised for issue on 31 October 2023 and were signed on its behalf by: |
J C Pinto - Director |
Lynx (GP) Holdings Limited (Registered number: 09580353) |
Company Balance Sheet |
31 May 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
Fixed assets |
Intangible assets | 12 |
Tangible assets | 13 |
Investments | 14 |
Investment property | 15 |
Current assets |
Debtors | 16 |
Cash at bank |
Creditors |
Amounts falling due within one year | 17 |
Net current assets |
Total assets less current liabilities |
Capital and reserves |
Called up share capital | 19 |
Share premium |
Retained earnings |
Shareholders' funds |
Company's profit for the financial year | 990,657 | 727,276 |
The financial statements were approved by the Board of Directors and authorised for issue on |
Lynx (GP) Holdings Limited (Registered number: 09580353) |
Consolidated Statement of Changes in Equity |
for the year ended 31 May 2023 |
Called up |
share | Retained | Share | Fair value | Total |
capital | earnings | premium | reserve | equity |
£ | £ | £ | £ | £ |
Balance at 1 June 2021 | 128 | 4,149,167 | 1,656,653 | 542,695 | 6,348,643 |
Changes in equity |
Dividends | - | (300,000 | ) | - | - | (300,000 | ) |
Total comprehensive income | - | 942,575 | - | 368,696 | 1,311,271 |
Balance at 31 May 2022 | 128 | 4,791,742 | 1,656,653 | 911,391 | 7,359,914 |
Changes in equity |
Total comprehensive income | - | 870,976 | - | (461,344 | ) | 409,632 |
Balance at 31 May 2023 | 128 | 5,662,718 | 1,656,653 | 450,047 | 7,769,546 |
Lynx (GP) Holdings Limited (Registered number: 09580353) |
Company Statement of Changes in Equity |
for the year ended 31 May 2023 |
Called up |
share | Retained | Share | Total |
capital | earnings | premium | equity |
£ | £ | £ | £ |
Balance at 1 June 2021 |
Changes in equity |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - | - |
Balance at 31 May 2022 |
Changes in equity |
Total comprehensive income | - | - |
Balance at 31 May 2023 |
Lynx (GP) Holdings Limited (Registered number: 09580353) |
Consolidated Cash Flow Statement |
for the year ended 31 May 2023 |
2023 | 2022 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 21 | (42,054 | ) | 2,178,267 |
Tax paid | (67,891 | ) | (194,119 | ) |
Net cash from operating activities | (109,945 | ) | 1,984,148 |
Cash flows from investing activities |
Purchase of tangible fixed assets | (168,686 | ) | (24,701 | ) |
Purchase of fixed asset investments | - | (500,000 | ) |
Purchase of investment property | - | (141,581 | ) |
Sale of tangible fixed assets | 10,500 | - |
Interest received | 4,282 | 347 |
Net cash from investing activities | (153,904 | ) | (665,935 | ) |
Cash flows from financing activities |
Payments to non-controlling interests | (180,000 | ) | (150,000 | ) |
Equity dividends paid | - | (300,000 | ) |
Net cash from financing activities | (180,000 | ) | (450,000 | ) |
(Decrease)/increase in cash and cash equivalents | (443,849 | ) | 868,213 |
Cash and cash equivalents at beginning of year |
22 |
2,634,998 |
1,766,785 |
Cash and cash equivalents at end of year | 22 | 2,191,149 | 2,634,998 |
Lynx (GP) Holdings Limited (Registered number: 09580353) |
Notes to the Consolidated Financial Statements |
for the year ended 31 May 2023 |
1. | Statutory information |
Lynx (GP) Holdings Limited is a |
2. | Accounting policies |
Accounting convention |
These financial statements have been prepared in accordance with FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" ("FRS 102") and the requirements of the Companies Act 2006. |
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest pound. |
The financial statements have been prepared under the historical cost convention, modified to include investment properties at fair value. The principal accounting policies adopted are set out below. |
The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements: |
- Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues’ - Carrying amounts, interest income/expense and net gains/losses for each category of financial instrument; basis of determining fair values. |
- Section 33 ‘Related Party Disclosures’ - Compensation for key management personnel. |
Basis of consolidation |
In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. |
The consolidated financial statements incorporate those of Lynx (GP) Holdings Limited and all of its subsidiaries (i.e. entities that the group controls through its power to govern the financial and operating policies so as to obtain economic benefits). All financial statements are made up to 31 May 2023. All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. |
Going concern |
The directors have given due consideration to the business and its available resources. Based on current circumstances and recent performance, the business has a solid demand from its Blue Chip client base and with surplus reserves and good liquidity, the group and company has a strong financial base. |
After reviewing the group and company performance, the directors are satisfied that the group is able to meet its obligations and continue in operational existence for the twelve months from the date of the approval of these financial statements. For this reason, the directors have adopted the going concern basis in preparing these financial statements. |
Turnover |
Turnover represents amounts receivable for construction services net of VAT and trade discounts, and is recognised in the period the service is provided when certified by the customer. |
Income relating to rent received is recognised on an accruals basis, net of VAT and trade discounts. |
Construction contracts |
Where the outcome of a construction contract can be estimated reliably, revenue and costs are recognised by reference to the stage of completion of the contract activity at the reporting end date. Variations in contract work, claims and incentive payments are included to the extent that the amount can be measured reliably and its receipt is considered probable. |
Lynx (GP) Holdings Limited (Registered number: 09580353) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31 May 2023 |
2. | Accounting policies - continued |
When it is probable that total contract costs will exceed total contract turnover, the expected loss is recognised as an expense immediately. |
The "percentage of completion method" is used to determine the appropriate amount to recognise in a given period. The stage of completion is measured by the proportion of contract costs incurred for work performed to date compared to the estimated total contract costs. Costs incurred in the year in connection with future activity on a contract are excluded from contract costs in determining the stage of completion. These costs are presented as prepayments or other assets depending on their nature, and provided it is probable they will be recovered. |
Goodwill |
Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. |
Tangible fixed assets |
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses. |
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases: |
Freehold buildings | 2% Straight line |
Leasehold improvements | 10% Straight line |
Plant and machinery | 33% Straight line |
Fixtures and fittings | 50% Straight line |
Motor vehicles | 25% Straight line |
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 profit and loss account. |
Investment property |
Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently, it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss. |
Fixed asset investments |
Interests in subsidiaries and other unlisted investment are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss. |
A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities. |
Listed investments are initially measured at cost and subsequently measured at fair value at the reporting end date. Changes in fair value are recognised in the profit and loss. |
Impairment of fixed assets |
At each reporting period end date, the group reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). |
Lynx (GP) Holdings Limited (Registered number: 09580353) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31 May 2023 |
2. | Accounting policies - continued |
Financial instruments |
The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments. |
Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument. |
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously. |
Basic financial assets |
Basic financial assets, which include trade and other debtors, cash and bank balances, are measured at transaction price including transaction. Financial assets classified as receivable within one year are not amortised. |
Other financial assets |
Other financial assets, including investments in equity instruments are measured at cost less impairment. |
Impairment of financial assets |
Financial assets are assessed for indicators of impairment at each reporting end date. |
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss. |
Classification of financial liabilities |
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. |
Basic financial liabilities |
Basic financial liabilities, including creditors and loans from fellow group companies, are recognised at transaction price unless the arrangement constitutes a financing transaction. Financial liabilities classified as payable within one year are not amortised. |
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price. |
Equity instruments |
Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group. |
Taxation |
The tax expense represents the sum of the tax currently payable and deferred tax. |
Current tax |
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date. |
Deferred tax |
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Lynx (GP) Holdings Limited (Registered number: 09580353) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31 May 2023 |
2. | Accounting policies - continued |
Pension costs and other post-retirement benefits |
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
Employee benefits |
The costs of short-term employee benefits are recognised as a liability and an expense. |
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received. |
Retirement benefits |
The group operates a defined contribution scheme for the benefit of its directors and employees. Contributions payable are charged to the profit and loss account in the year they are payable. |
Leases |
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases. |
3. | Critical accounting judgements and key sources of estimation uncertainty |
In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. |
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods. |
Critical judgements |
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements. |
Amounts recoverable under long term contracts |
The directors assess any in progress contract that straddles the year end, with due consideration to the accounting policies applied for turnover and construction contracts, as noted above. This assessment is made on a contract by contract basis to review the stage of completion between the last survey date and the year end. The directors apply their judgement, based on their knowledge of the business and industry to determine the stage of completion and the quantum of turnover and profit, or foreseeable losses, that need to be adjusted for at the year end. |
Fixed asset investments |
The directors undertake an annual impairment review of the fixed asset investments. Based on their assessment and knowledge at the year end, in light of the current position, a review is undertaken and any necessary adjustment is made through the profit and loss account. |
The directors consider the carrying amount of listed investments on an annual basis, taking into account the market values of these investments at the year end. Changes in fair value are recognised in the profit and loss as detailed in note 14. |
Valuation of investment properties |
On an annual basis, the directors consider the valuation of the investment properties, taking into account current market values. Based on their knowledge and review of the property market, the directors believe that the carrying amount of the investment properties do not reflect the current market value at the year end and have revalued the assets as detailed in note 15. |
Lynx (GP) Holdings Limited (Registered number: 09580353) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31 May 2023 |
4. | Turnover |
The turnover and profit before taxation are attributable to the one principal activity of the group. |
An analysis of turnover by class of business is given below: |
2023 | 2022 |
£ | £ |
Contract revenue | 16,882,912 | 12,071,691 |
Rental income | 141,306 | 133,778 |
17,024,218 | 12,205,469 |
An analysis of turnover by geographical market is given below: |
2023 | 2022 |
£ | £ |
United Kingdom | 17,024,218 | 12,205,469 |
17,024,218 | 12,205,469 |
5. | Employees and directors |
2023 | 2022 |
£ | £ |
Wages and salaries | 1,540,695 | 1,558,808 |
Social security costs | 192,471 | 203,668 |
Other pension costs | 64,356 | 59,544 |
1,797,522 | 1,822,020 |
The average number of employees during the year was as follows: |
2023 | 2022 |
Accounts | 4 | 3 |
Health and safety | 1 | 1 |
Site workers | 9 | 7 |
Administrative | 8 | 9 |
6. | Directors' emoluments |
2023 | 2022 |
£ | £ |
Directors' remuneration | 637,204 | 779,867 |
Directors' pension contributions to money purchase schemes | 39,643 | 39,643 |
Information regarding the highest paid director is as follows: |
2023 | 2022 |
£ | £ |
Emoluments etc | 364,704 | 444,696 |
Pension contributions to money purchase schemes | 21,321 | 21,321 |
The number of directors who accrued benefits under defined contribution pension schemes was 2 (2021 - 2). |
Lynx (GP) Holdings Limited (Registered number: 09580353) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31 May 2023 |
7. | Profit before taxation |
The profit is stated after charging/(crediting): |
2023 | 2022 |
£ | £ |
Hire of plant and machinery | 1,454 | 182 |
Other operating leases | 11,310 | 10,592 |
Depreciation - owned assets | 73,289 | 72,102 |
Profit on disposal of fixed assets | (10,499 | ) | (13,440 | ) |
8. | Auditors' remuneration |
2023 | 2022 |
Fees payable to the company's auditor and associates: | £ | £ |
For audit services |
Audit of the financial statements of the group and company | 3,300 | 2,750 |
Audit of the financial statements of the company's subsidiaries | 19,500 | 15,200 |
22,800 | 17,950 |
For other services |
All other non-audit services | 64,819 | 43,106 |
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 | 232,893 | 295,079 |
Tax adjustment in respect of the previous year | - | 40,531 |
Total current tax | 232,893 | 335,610 |
Deferred tax | (153,781 | ) | 141,746 |
Tax on profit | 79,112 | 477,356 |
Lynx (GP) Holdings Limited (Registered number: 09580353) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31 May 2023 |
9. | Taxation - continued |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
2023 | 2022 |
£ | £ |
Profit before tax | 668,744 | 1,938,627 |
Profit multiplied by the standard rate of corporation tax in the UK of 19 % (2022 - 19 %) |
127,061 |
368,339 |
Effects of: |
Expenses not deductible for tax purposes | 5,046 | 4,066 |
Capital allowances in excess of depreciation | (5,878 | ) | - |
Depreciation in excess of capital allowances | - | 13,494 |
Adjustments to tax charge in respect of previous periods | - | 40,531 |
Effect of revaluations of investments | 98,827 | (88,282 | ) |
Other tax adjustments | 7,837 | (2,537 | ) |
Movement in deferred tax | (153,781 | ) | 141,745 |
Total tax charge | 79,112 | 477,356 |
Tax effects relating to effects of other comprehensive income |
2023 |
Gross | Tax | Net |
£ | £ | £ |
Revaluation of investment property | (615,125 | ) | - | (615,125 | ) |
Deferred tax on revaluation | 153,781 | - | 153,781 |
Transfer from reserves | 461,344 | - | 461,344 |
- | - | - |
2022 |
Gross | Tax | Net |
£ | £ | £ |
Revaluation of investment property | 511,419 | - | 511,419 |
Deferred tax on revaluation | (142,723 | ) | - | (142,723 | ) |
Transfer from reserves | (368,696 | ) | - | (368,696 | ) |
- | - | - |
The UK corporation tax rate increased from 19% to 25% from 1 April 2023. The tax charge has been calculated using these rates accordingly. |
10. | Individual income statement |
As permitted by Section 408 of the Companies Act 2006, the Statement of Comprehensive Income of the parent company is not presented as part of these financial statements. |
11. | Dividends |
2023 | 2022 |
£ | £ |
Ordinary shares of £0.001 each |
Final | - | 300,000 |
Lynx (GP) Holdings Limited (Registered number: 09580353) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31 May 2023 |
12. | Intangible fixed assets |
Group |
Goodwill |
£ |
Cost |
At 1 June 2022 |
and 31 May 2023 | 86,128 |
Amortisation |
At 1 June 2022 |
and 31 May 2023 | 86,128 |
Net book value |
At 31 May 2023 | - |
At 31 May 2022 | - |
13. | Tangible fixed assets |
Group |
Freehold | Improvements | Plant and |
property | to property | machinery |
£ | £ | £ |
Cost |
At 1 June 2022 | 522,000 | 3,916 | 31,525 |
Additions | - | 16,180 | - |
Disposals | - | - | (2,173 | ) |
At 31 May 2023 | 522,000 | 20,096 | 29,352 |
Depreciation |
At 1 June 2022 | 20,880 | 3,916 | 30,571 |
Charge for year | 10,440 | 1,213 | 953 |
Eliminated on disposal | - | - | (2,173 | ) |
At 31 May 2023 | 31,320 | 5,129 | 29,351 |
Net book value |
At 31 May 2023 | 490,680 | 14,967 | 1 |
At 31 May 2022 | 501,120 | - | 954 |
Lynx (GP) Holdings Limited (Registered number: 09580353) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31 May 2023 |
13. | Tangible fixed assets - continued |
Group |
Fixtures |
and | Motor |
fittings | vehicles | Totals |
£ | £ | £ |
Cost |
At 1 June 2022 | 3,588 | 234,658 | 795,687 |
Additions | 65 | 152,441 | 168,686 |
Disposals | (14,184 | ) | (20,939 | ) | (37,296 | ) |
At 31 May 2023 | (10,531 | ) | 366,160 | 927,077 |
Depreciation |
At 1 June 2022 | 3,588 | 129,849 | 188,804 |
Charge for year | 16 | 60,667 | 73,289 |
Eliminated on disposal | (14,184 | ) | (20,938 | ) | (37,295 | ) |
At 31 May 2023 | (10,580 | ) | 169,578 | 224,798 |
Net book value |
At 31 May 2023 | 49 | 196,582 | 702,279 |
At 31 May 2022 | - | 104,809 | 606,883 |
Company |
Freehold | Improvements | Motor |
property | to property | vehicles | Totals |
£ | £ | £ | £ |
Cost |
At 1 June 2022 |
Additions |
Disposals | ( |
) | ( |
) |
At 31 May 2023 |
Depreciation |
At 1 June 2022 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) |
At 31 May 2023 |
Net book value |
At 31 May 2023 |
At 31 May 2022 |
Lynx (GP) Holdings Limited (Registered number: 09580353) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31 May 2023 |
14. | Fixed asset investments |
Group |
Listed | Unlisted |
investments | investments | Totals |
£ | £ | £ |
Cost or valuation |
At 1 June 2022 | 853,223 | 743,662 | 1,596,885 |
Revaluations | 5,130 | 25,000 | 30,130 |
At 31 May 2023 | 858,353 | 768,662 | 1,627,015 |
Provisions |
At 1 June 2022 |
and 31 May 2023 | - | 498,662 | 498,662 |
Net book value |
At 31 May 2023 | 858,353 | 270,000 | 1,128,353 |
At 31 May 2022 | 853,223 | 245,000 | 1,098,223 |
Cost or valuation at 31 May 2023 is represented by: |
Listed | Unlisted |
investments | investments | Totals |
£ | £ | £ |
Valuation in 2023 | 5,130 | 25,000 | 30,130 |
Cost | 853,223 | 743,662 | 1,596,885 |
858,353 | 768,662 | 1,627,015 |
Company |
Shares in |
group | Listed | Unlisted |
undertakings | investments | investments | Totals |
£ | £ | £ | £ |
Cost or valuation |
At 1 June 2022 | 1,103,225 |
Revaluations | 30,130 |
At 31 May 2023 | 1,133,355 |
Net book value |
At 31 May 2023 | 1,133,355 |
At 31 May 2022 | 1,103,225 |
Cost or valuation at 31 May 2023 is represented by: |
Shares in |
group | Listed | Unlisted |
undertakings | investments | investments | Totals |
£ | £ | £ | £ |
Valuation in 2023 | - | 5,130 | 25,000 | 30,130 |
Cost | 5,002 | 853,223 | 245,000 | 1,103,225 |
5,002 | 858,353 | 270,000 | 1,133,355 |
Lynx (GP) Holdings Limited (Registered number: 09580353) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31 May 2023 |
14. | Fixed asset investments - continued |
Company |
The directors have considered the valuation of the listed and unlisted investments. The directors believe that the carrying amount does not reflect the market value of the listed investments and have revalued the assets at the year end to £858,353. The revaluation gain of £5,130 has been taken through the current year profit and loss. The historical cost of these investments held by the company at the year end was £900,000. |
The directors believe that the carrying amount does not reflect the market value of the unlisted investments and have revalued the assets at the year end to £270,000. The revaluation gain of £25,000 has been taken through the current year profit and loss. The historical cost of these investments held by the company at the year end was £245,000. |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiary |
Name of undertaking | Registered | Nature of | Class of | % | held |
office | business | shares held | Direct | Indirect |
Lynx Forecourt Limited | 250 Fowler Avenue, Farnborough, Hampshire, GU14 7JP |
Construction and refurbishment of petrol forecourts |
Ordinary | 85.00 | - |
Lynx Lettings Limited | As above | Property investment company |
Ordinary | 100.00 | - |
Solaris Finance & Investments Limited |
As above | Dormant company | Ordinary | 100.00 | - |
15. | Investment property |
Group |
Total |
£ |
Fair value |
At 1 June 2022 | 3,613,000 |
Revaluations | (615,125 | ) |
At 31 May 2023 | 2,997,875 |
Net book value |
At 31 May 2023 | 2,997,875 |
At 31 May 2022 | 3,613,000 |
Fair value at 31 May 2023 is represented by: |
£ |
Valuation in 2023 | (615,125 | ) |
Cost | 3,613,000 |
2,997,875 |
The directors have considered the valuation of the investment properties. The directors believe that the carrying amount does not reflect the market value of the investment properties and have revalued the assets at the year end to £2,997,875. The revaluation loss of £615,125 has been taken through the current year profit and loss. The historical cost of the properties held by the company at the year end were £2,523,174. |
Lynx (GP) Holdings Limited (Registered number: 09580353) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31 May 2023 |
16. | Debtors |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Amounts falling due within one year: |
Trade debtors | 5,177,636 | 396,928 |
Amounts recoverable on contract | 1,931,457 | 1,026,295 |
Other debtors | 30,707 | 26,500 |
Prepayments | 95,001 | 95,000 |
7,234,801 | 1,544,723 |
Amounts falling due after more than one | year: |
Amounts owed by group undertakings | - | - |
Other debtors | 1,533,123 | 1,533,123 |
Deferred tax asset | 11,535 | 11,535 |
Tax | 65,325 | 65,325 | - | - |
1,609,983 | 1,609,983 |
Aggregate amounts | 8,844,784 | 3,154,706 |
17. | Creditors: amounts falling due within one year |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Trade creditors | 1,665,125 | 1,202,248 |
Tax | 123,344 | 112,123 |
Social security and other taxes | 36,169 | 20,654 |
VAT | 965,637 | 208,130 | 5,450 | 8,368 |
Other creditors | 1,178,049 | 1,126,601 |
Deferred income | 24,920 | 17,502 |
Accrued expenses | 4,017,415 | 827,622 |
8,010,659 | 3,514,880 |
18. | Provisions for liabilities |
Group |
2023 | 2022 |
£ | £ |
Deferred tax | 79,235 | 233,016 |
Other provisions |
Dilapidation provision | 5,000 | - |
Aggregate amounts | 84,235 | 233,016 |
Lynx (GP) Holdings Limited (Registered number: 09580353) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31 May 2023 |
18. | Provisions for liabilities - continued |
Group |
Deferred | Other |
tax | provisions |
£ | £ |
Balance at 1 June 2022 | 233,016 | - |
Provided during year | - | 5,000 |
Credit to Income Statement during year | (153,781 | ) | - |
Balance at 31 May 2023 | 79,235 | 5,000 |
Deferred tax |
The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes: |
Liabilities | Liabilities | Assets | Assets |
2023 | 2022 | 2023 | 2022 |
Group | £ | £ | £ | £ |
Accelerated capital allowances | - | - | 11,535 | 11,535 |
Revaluation of investment properties | 79,235 | 233,016 | - | - |
233,016 | 233,016 | 11,535 | 11,535 |
19. | Called up share capital |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
Ordinary | £0.001 | 128 | 128 |
20. | Non-controlling interests |
Lynx Forecourt Limited has 30 Ordinary B shares which are not held by Lynx (GP) Holdings Limited. These shares hold no voting rights but they are entitled to dividends and winding up distributions. In accordance with the Articles of Association, winding up distributions to shareholders of Ordinary B shares are made only when the assets of Lynx Forecourt Limited are greater than £2,500,000. As at 31 May 2023, the assets of Lynx Forecourt Limited are below this threshold, hence the non-controlling interests is limited to the dividends paid by Lynx Forecourt Limited of £180,000 during the year (2022: £150,000). |
21. | Reconciliation of profit for the financial year to cash generated from operations |
2023 | 2022 |
£ | £ |
Profit for the financial year | 589,632 | 1,461,271 |
Depreciation charges | 73,290 | 72,103 |
(Profit)/loss on disposal of fixed assets | (10,500 | ) | 23,565 |
Loss/(gain) on revaluation of fixed assets | 584,995 | (464,642 | ) |
Movement in provisions | (148,781 | ) | - |
(Decrease)/increase in deferred income | - | (26,953 | ) |
Finance income | (4,282 | ) | (347 | ) |
Taxation | 79,112 | 477,356 |
1,163,466 | 1,542,353 |
(Increase)/decrease in trade and other debtors | (5,690,078 | ) | 1,353,272 |
Increase/(decrease) in trade and other creditors | 4,484,558 | (717,358 | ) |
Cash generated from operations | (42,054 | ) | 2,178,267 |
Lynx (GP) Holdings Limited (Registered number: 09580353) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31 May 2023 |
22. | Cash and cash equivalents |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 31 May 2023 |
31/5/23 | 1/6/22 |
£ | £ |
Cash and cash equivalents | 2,191,149 | 2,634,998 |
Year ended 31 May 2022 |
31/5/22 | 1/6/21 |
£ | £ |
Cash and cash equivalents | 2,634,998 | 1,766,785 |
23. | Analysis of changes in net funds |
At 1/6/22 | Cash flow | At 31/5/23 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 2,634,998 | (443,849 | ) | 2,191,149 |
2,634,998 | (443,849 | ) | 2,191,149 |
Total | 2,634,998 | (443,849 | ) | 2,191,149 |