IRIS Accounts Production v23.3.1.45 03459006 director 1.6.22 31.5.23 31.5.23 true false true true false false false true false Ordinary 1.00000 Class E 1.00000 iso4217:GBPiso4217:USDiso4217:EURxbrli:sharesxbrli:pureutr:tonnesutr:kWh034590062022-05-31034590062023-05-31034590062022-06-012023-05-31034590062021-05-31034590062021-06-012022-05-31034590062022-05-3103459006ns10:Originalns15:EnglandWales2022-06-012023-05-3103459006ns14:PoundSterlingns10:Original2022-06-012023-05-3103459006ns10:Originalns10:Director12022-06-012023-05-3103459006ns10:Original2022-06-012023-05-3103459006ns10:Original2023-05-3103459006ns10:Originalns10:PrivateLimitedCompanyLtd2022-06-012023-05-3103459006ns10:Originalns10:FRS1022022-06-012023-05-3103459006ns10:Originalns10:Audited2022-06-012023-05-3103459006ns10:Originalns10:LargeMedium-sizedCompaniesRegimeForDirectorsReport2022-06-012023-05-3103459006ns10:LargeMedium-sizedCompaniesRegimeForAccountsns10:Original2022-06-012023-05-3103459006ns10:Originalns10:FullAccounts2022-06-012023-05-3103459006ns10:Original12022-06-012023-05-3103459006ns10:Originalns10:OrdinaryShareClass12022-06-012023-05-3103459006ns10:Originalns10:OrdinaryShareClass22022-06-012023-05-3103459006ns10:Originalns10:RegisteredOffice2022-06-012023-05-3103459006ns10:Original2021-06-012022-05-3103459006ns10:Original2022-05-3103459006ns10:Originalns5:CurrentFinancialInstruments2023-05-3103459006ns10:Originalns5:CurrentFinancialInstruments2022-05-3103459006ns5:ShareCapitalns10:Original2023-05-3103459006ns5:ShareCapitalns10:Original2022-05-3103459006ns10:Originalns5:RetainedEarningsAccumulatedLosses2023-05-3103459006ns10:Originalns5:RetainedEarningsAccumulatedLosses2022-05-3103459006ns5:ShareCapitalns10:Original2021-05-3103459006ns10:Originalns5:RetainedEarningsAccumulatedLosses2021-05-3103459006ns10:Original2021-05-3103459006ns10:Originalns5:RetainedEarningsAccumulatedLosses2021-06-012022-05-3103459006ns10:Originalns5:RetainedEarningsAccumulatedLosses2022-06-012023-05-3103459006ns10:Original2022-05-3103459006ns5:IntangibleAssetsOtherThanGoodwillns10:Original2022-06-012023-05-3103459006ns10:Originalns5:ComputerSoftware2022-06-012023-05-3103459006ns10:Originalns5:PlantMachinery2022-06-012023-05-3103459006ns10:Originalns5:FurnitureFittings2022-06-012023-05-3103459006ns10:Originalns5:MotorVehicles2022-06-012023-05-3103459006ns5:OwnedAssetsns10:Original2022-06-012023-05-3103459006ns5:OwnedAssetsns10:Original2021-06-012022-05-3103459006ns10:Originalns5:ComputerSoftware2021-06-012022-05-3103459006ns10:Original12022-06-012023-05-3103459006ns10:Original12021-06-012022-05-3103459006ns10:Originalns10:OrdinaryShareClass12021-06-012022-05-3103459006ns10:Originalns5:ComputerSoftware2023-05-3103459006ns10:Originalns5:PlantMachinery2022-05-3103459006ns10:Originalns5:FurnitureFittings2022-05-3103459006ns10:Originalns5:MotorVehicles2022-05-3103459006ns10:Originalns5:PlantMachinery2023-05-3103459006ns10:Originalns5:FurnitureFittings2023-05-3103459006ns10:Originalns5:MotorVehicles2023-05-3103459006ns10:Originalns5:PlantMachinery2022-05-3103459006ns10:Originalns5:FurnitureFittings2022-05-3103459006ns10:Originalns5:MotorVehicles2022-05-3103459006ns10:Originalns5:CurrentFinancialInstrumentsns5:WithinOneYear2023-05-3103459006ns10:Originalns5:CurrentFinancialInstrumentsns5:WithinOneYear2022-05-3103459006ns10:Originalns5:WithinOneYear2023-05-3103459006ns10:Originalns5:WithinOneYear2022-05-3103459006ns5:BetweenOneFiveYearsns10:Original2023-05-3103459006ns5:BetweenOneFiveYearsns10:Original2022-05-3103459006ns10:Originalns5:AllPeriods2023-05-3103459006ns10:Originalns5:AllPeriods2022-05-3103459006ns10:Originalns5:DeferredTaxation2022-05-3103459006ns10:Originalns5:DeferredTaxation2022-06-012023-05-3103459006ns10:Originalns5:DeferredTaxation2023-05-3103459006ns10:Originalns10:OrdinaryShareClass12023-05-3103459006ns10:Originalns10:OrdinaryShareClass22023-05-3103459006ns10:Originalns5:RetainedEarningsAccumulatedLosses2022-05-31
REGISTERED NUMBER: 03459006 (England and Wales)

















MARK HARRIS (LINCOLN) LIMITED

STRATEGIC REPORT, REPORT OF THE DIRECTOR AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MAY 2023






MARK HARRIS (LINCOLN) LIMITED (REGISTERED NUMBER: 03459006)

CONTENTS OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023










Page

Company Information 1

Strategic Report 2

Report of the Director 3

Report of the Independent Auditors 5

Statement of Comprehensive Income 9

Balance Sheet 10

Statement of Changes in Equity 11

Cash Flow Statement 12

Notes to the Cash Flow Statement 13

Notes to the Financial Statements 14


MARK HARRIS (LINCOLN) LIMITED

COMPANY INFORMATION
FOR THE YEAR ENDED 31 MAY 2023







DIRECTOR: M R Harris



REGISTERED OFFICE: The Old Stables
42 Sudbrooke Road
Scothern
Lincoln
Lincolnshire
LN2 2UZ



REGISTERED NUMBER: 03459006 (England and Wales)



SENIOR STATUTORY AUDITOR: Joanne Brown



AUDITORS: Nicholsons Audit
Newland House
The Point
Weaver Road
Lincoln
Lincolnshire
LN6 3QN

MARK HARRIS (LINCOLN) LIMITED (REGISTERED NUMBER: 03459006)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 MAY 2023


The director presents his strategic report for the year ended 31 May 2023.

REVIEW OF BUSINESS
The company continues to manufacture bespoke commercial vehicles for a variety of industries.

The company is based just outside Lincoln in Lincolnshire and primarily retails Peugeot and Fiat alongside other makes such as Vauxhall, Citroen, Renault and Mercedes.

The key financial performance indicators are considered to be sales, gross margins and profit on ordinary activities, as shown in the income statement along with solvency and the working capital position as indicated in the statement of financial position.

With the challenging economic and retail climate the core trade element of the business has continued to perform well. Turnover has increased in the year to £31,497,729 (2022: £21,736,205) the gross profit margin has been increased to 35% (2022: 31%).

The above have combined to produce a profit on ordinary activities of £9,533,697 (2022: £5,497,175).

The director considers the statement of financial position of the company to be strong, with a comfortable net asset and working capital position. Management remains mindful of the competitive environment in which the company operates and the need to maintain close control over the company's working capital and financial position.

PRINCIPAL RISKS AND UNCERTAINTIES
The company is affected by a number of factors, the principle ones of which are:

- The company is exposed to the risk of negative developments in global and regional economies and financial markets, either directly or through the impact on the company's bankers, suppliers or customers. These developments can result in recession, inflation, deflation, currency fluctuations, restrictions in the availability of credit, business failures in the customer or supplier base, or increase in financing costs, and the cost of utilities, raw materials and finished products. Such development might increase operating costs, reduce revenues, lower asset values or result in the business being unable to meet in full its strategic objectives.

- The company operates in a competitive market and failure to compete effectively in terms of price, product specification or levels of service can have an adverse effect on demand and/or margins.

The company mitigates risk in several ways:

- The company has in place an organisational structure with clearly defined lines of responsibility and delegation of authority. There are established policies and procedures for the setting of corporate strategies; financial planning and budgeting; for information and reporting systems; for systems of operational and financial internal control; for assessment of risk; and for monitoring operations and performance.

- Management and staff at all levels work closely with customers and suppliers to operate as effectively and efficiently as possible whilst maintaining long term working relationships, innovation and good lines of communication.

- The company operates a recruitment and selection process to ensure employees are experienced and competent in their work. The workforce is trained to be alert, responsive to customer needs and to operate in line with the company's corporate objectives.

FUTURE DEVELOPMENTS
The director looks forward to the future with cautious optimism and is ready to take advantage of opportunities which may present themselves. The electrification of vehicles has been taken into account in the company's strategic plans and in financial growth forecasts however at this stage is not thought to present any risk to the company's operations.

ON BEHALF OF THE BOARD:





M R Harris - Director


14 February 2024

MARK HARRIS (LINCOLN) LIMITED (REGISTERED NUMBER: 03459006)

REPORT OF THE DIRECTOR
FOR THE YEAR ENDED 31 MAY 2023


The director presents his report with the financial statements of the company for the year ended 31 May 2023.

PRINCIPAL ACTIVITY
The principal activity of the company in the year under review was that of commercial vehicle sales.

DIVIDENDS
An interim dividend of £15.40 per share was paid on the Ordinary £1 shares on 6 April 2023. No dividends were paid on the Class E £1 shares.

The total distribution of dividends for the year ended 31 May 2023 will be £ 77,000 .

DIRECTOR
M R Harris held office during the whole of the period from 1 June 2022 to the date of this report.

His beneficial interests in the shares of the company, according to the register of directors' interests, were as follows:

31.5.23 1.6.22
Class E shares of £1 each 300,000 300,000
He did not hold any beneficial interests in the Ordinary shares of £1 each.

He did not hold any non-beneficial interests in any of the shares of the company.

EVENTS SINCE THE YEAR END
The current ongoing issues in Israel and the Ukraine and not anticipated to impact on the company's supply of materials or production lines. The director remains confident that the company will enjoy expansion and increased profitability in future years through innovation and efficiencies.

STREAMLINED ENERGY AND CARBON REPORTING
The director has invested significantly in measures to reduce the carbon footprint of the company. The acquisition of a biomass system, the switch to energy efficient lighting and the capture of rain water for use, all contribute significantly to improvements in energy reduction. The Director continues to seek avenues of efficiency and intends to invest in this area in future years.

DISCLOSURE IN THE STRATEGIC REPORT
The company has chosen to include information regarding future developments, and principle risks and uncertainties in the strategic report rather than the directors report.

DIRECTOR'S RESPONSIBILITIES STATEMENT
The director is responsible for preparing the Strategic Report, the Report of the Director and the financial statements in accordance with applicable law and regulations.

Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is 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 director is required to:

-select suitable accounting policies and then apply them consistently;
-make judgements and accounting estimates that are reasonable and prudent;
-prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The director is 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 him to ensure that the financial statements comply with the Companies Act 2006. He is 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.

MARK HARRIS (LINCOLN) LIMITED (REGISTERED NUMBER: 03459006)

REPORT OF THE DIRECTOR
FOR THE YEAR ENDED 31 MAY 2023


STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the director is 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 he 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 company's auditors are aware of that information.

ON BEHALF OF THE BOARD:





M R Harris - Director


14 February 2024

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
MARK HARRIS (LINCOLN) LIMITED


Opinion
We have audited the financial statements of Mark Harris (Lincoln) Limited (the 'company') for the year ended 31 May 2023 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, 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 31 May 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 director's 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 director 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 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 Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Report of the Directors has been prepared in accordance with applicable legal requirements.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
MARK HARRIS (LINCOLN) 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 Director.

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; or
- the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemption from the requirement to prepare a Strategic Report or in preparing the Report of the Directors.

Responsibilities of director
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.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
MARK HARRIS (LINCOLN) LIMITED


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:

We obtained an understanding of the legal and regulatory frameworks that are applicable to the organisation and determined that the most significant are those that relate to the reporting framework (FRS102), the Companies Act 2006 and the relevant tax compliance.

We understood how the organisation is complying with those frameworks by making enquiries of management and those charged with governance, and we corroborated our enquiries by reviewing board minutes and reviewing third party correspondence, including correspondence with HMRC.

We assessed the susceptibility of the financial statements to material misstatement, including how fraud might occur by meeting with management from various parts of the business to understand where they considered there was susceptibility to fraud. We considered the controls that the organisation has established to address risks identified, or that otherwise prevent, deter and detect fraud and also reviewed how these had operated in the year.

Where the risk was considered to be higher, we performed audit procedures to address each identified fraud risk along with procedures to identify non-compliance with such laws and regulations identified in the paragraphs above along with areas where management override of controls may be relevant. These procedures included assessing the appropriateness of presentation of separately disclosed items with a focus on manual journals and journals indicating large or unusual transactions based on our understanding of the organisation. These procedures were designed to provide reasonable assurance that the financial statements were free from material fraud or error.

We also considered the risk associated with completeness of income and work-in-progress and whether this could have a material impact on the financial statements. Work was targeted in these areas.

We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit. The audit was planned to ensure that the more complex areas were performed by more experienced members of the audit team and there were no areas of the audit which were considered to require external experts to be appointed by the audit team.

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

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.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
MARK HARRIS (LINCOLN) 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 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.




Joanne Brown (Senior Statutory Auditor)
for and on behalf of Nicholsons Audit
Newland House
The Point
Weaver Road
Lincoln
Lincolnshire
LN6 3QN

14 February 2024

MARK HARRIS (LINCOLN) LIMITED (REGISTERED NUMBER: 03459006)

STATEMENT OF COMPREHENSIVE
INCOME
FOR THE YEAR ENDED 31 MAY 2023

2023 2022
Notes £    £   

REVENUE 31,497,729 21,736,205

Cost of sales 20,627,999 15,075,741
GROSS PROFIT 10,869,730 6,660,464

Administrative expenses 1,403,952 1,239,215
9,465,778 5,421,249

Other operating income - 72,763
OPERATING PROFIT 4 9,465,778 5,494,012

Interest receivable and similar income 72,935 3,163
9,538,713 5,497,175

Interest payable and similar expenses 6 5,016 -
PROFIT BEFORE TAXATION 9,533,697 5,497,175

Tax on profit 7 1,726,551 824,467
PROFIT FOR THE FINANCIAL YEAR 7,807,146 4,672,708

OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME FOR
THE YEAR

7,807,146

4,672,708

MARK HARRIS (LINCOLN) LIMITED (REGISTERED NUMBER: 03459006)

BALANCE SHEET
31 MAY 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 9 13,387 -
Property, plant and equipment 10 190,977 210,189
Investments 11 957 957
205,321 211,146

CURRENT ASSETS
Inventories 12 7,602,209 7,439,334
Debtors 13 1,891,528 891,326
Cash at bank and in hand 19,832,827 12,607,394
29,326,564 20,938,054
CREDITORS
Amounts falling due within one year 14 2,762,333 2,115,232
NET CURRENT ASSETS 26,564,231 18,822,822
TOTAL ASSETS LESS CURRENT
LIABILITIES

26,769,552

19,033,968

PROVISIONS FOR LIABILITIES 16 31,473 26,035
NET ASSETS 26,738,079 19,007,933

CAPITAL AND RESERVES
Called up share capital 17 8,000 8,000
Retained earnings 18 26,730,079 18,999,933
SHAREHOLDERS' FUNDS 26,738,079 19,007,933

The financial statements were approved by the director and authorised for issue on 14 February 2024 and were signed by:





M R Harris - Director


MARK HARRIS (LINCOLN) LIMITED (REGISTERED NUMBER: 03459006)

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MAY 2023

Called up
share Retained Total
capital earnings equity
£    £    £   
Balance at 1 June 2021 8,000 14,408,225 14,416,225

Changes in equity
Dividends - (81,000 ) (81,000 )
Total comprehensive income - 4,672,708 4,672,708
Balance at 31 May 2022 8,000 18,999,933 19,007,933

Changes in equity
Dividends - (77,000 ) (77,000 )
Total comprehensive income - 7,807,146 7,807,146
Balance at 31 May 2023 8,000 26,730,079 26,738,079

MARK HARRIS (LINCOLN) LIMITED (REGISTERED NUMBER: 03459006)

CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 MAY 2023

2023 2022
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 9,033,756 7,154,254
Interest paid (5,016 ) -
Tax paid (1,759,627 ) (650,491 )
Net cash from operating activities 7,269,113 6,503,763

Cash flows from investing activities
Purchase of intangible fixed assets (13,500 ) -
Purchase of tangible fixed assets (25,019 ) (55,844 )
Interest received 72,935 3,163
Net cash from investing activities 34,416 (52,681 )

Cash flows from financing activities
Amount introduced by directors 85,337 129,856
Amount withdrawn by directors (86,433 ) (147,867 )
Equity dividends paid (77,000 ) (81,000 )
Net cash from financing activities (78,096 ) (99,011 )

Increase in cash and cash equivalents 7,225,433 6,352,071
Cash and cash equivalents at beginning of year 2 12,607,394 6,255,323

Cash and cash equivalents at end of year 2 19,832,827 12,607,394

MARK HARRIS (LINCOLN) LIMITED (REGISTERED NUMBER: 03459006)

NOTES TO THE CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 MAY 2023


1. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS
2023 2022
£    £   
Profit before taxation 9,533,697 5,497,175
Depreciation charges 44,344 42,467
Finance costs 5,016 -
Finance income (72,935 ) (3,163 )
9,510,122 5,536,479
(Increase)/decrease in inventories (162,875 ) 2,730,420
(Increase)/decrease in trade and other debtors (1,009,691 ) 210,494
Increase/(decrease) in trade and other creditors 696,200 (1,323,139 )
Cash generated from operations 9,033,756 7,154,254

2. 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 19,832,827 12,607,394
Year ended 31 May 2022
31.5.22 1.6.21
£    £   
Cash and cash equivalents 12,607,394 6,255,323


3. ANALYSIS OF CHANGES IN NET FUNDS

At 1.6.22 Cash flow At 31.5.23
£    £    £   
Net cash
Cash at bank and in hand 12,607,394 7,225,433 19,832,827
12,607,394 7,225,433 19,832,827
Total 12,607,394 7,225,433 19,832,827

MARK HARRIS (LINCOLN) LIMITED (REGISTERED NUMBER: 03459006)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023


1. STATUTORY INFORMATION

Mark Harris (Lincoln) Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

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.

Turnover
Revenue is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Intangible assets
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Website is being amortised evenly over its estimated useful life of ten years.

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

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

Cost is calculated using the first-in, first-out method and includes all purchase, transport, and handling costs in bringing inventories to their present location and condition.

Work in progress is valued on the basis of direct costs plus attributable overhead based on a normal level of activity. Provision is made for any foreseeable losses where appropriate. No element of profit is included in the valuation of work in progress.

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 balance sheet date.

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet 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.

Research and development
Expenditure on research and development is written off in the year in which it is incurred.


MARK HARRIS (LINCOLN) LIMITED (REGISTERED NUMBER: 03459006)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MAY 2023


2. ACCOUNTING POLICIES - continued

Hire purchase and leasing commitments
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

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 profit or loss in the period to which they relate.

3. EMPLOYEES AND DIRECTORS
2023 2022
£    £   
Wages and salaries 1,381,480 1,231,046
Social security costs 138,464 119,408
Other pension costs 32,347 30,413
1,552,291 1,380,867

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

Workshop 37 39
Sales and Administration 7 6
Director 1 1
45 46

2023 2022
£    £   
Director's remuneration 8,424 8,424
Director's pension contributions to money purchase schemes 4,274 4,070

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

Money purchase schemes 1 1

4. OPERATING PROFIT

The operating profit is stated after charging:

2023 2022
£    £   
Other operating leases 337,500 300,000
Depreciation - owned assets 44,231 42,467
Website amortisation 113 -
Auditors' remuneration 6,300 6,300

5. EXCEPTIONAL ITEMS
2023 2022
£    £   
HMRC Settlement - 72,763
Intercompany loan write off (231,441 ) (149,356 )
(231,441 ) (76,593 )

Exceptional items, included within other income, includes the reduction in the agreed settlement with HM Revenue and Customs in respect of tax planning from earlier years.

MARK HARRIS (LINCOLN) LIMITED (REGISTERED NUMBER: 03459006)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MAY 2023


6. INTEREST PAYABLE AND SIMILAR EXPENSES
2023 2022
£    £   
Corporation tax interest 5,016 -

7. 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 1,721,113 820,221

Deferred tax 5,438 4,246
Tax on profit 1,726,551 824,467

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 9,533,697 5,497,175
Profit multiplied by the standard rate of corporation tax in the UK of 20.003%
(2022 - 19%)

1,907,025

1,044,463

Effects of:
Expenses not deductible for tax purposes 46,295 28,644
Capital allowances in excess of depreciation (311 ) (6,337 )
Temporary timing differences 5,438 4,246
Research and development (231,896 ) (246,549 )
Total tax charge 1,726,551 824,467

8. DIVIDENDS
2023 2022
£    £   
Ordinary shares of £1 each
Interim 77,000 81,000

9. INTANGIBLE FIXED ASSETS
Website
£   
COST
Additions 13,500
At 31 May 2023 13,500
AMORTISATION
Amortisation for year 113
At 31 May 2023 113
NET BOOK VALUE
At 31 May 2023 13,387

MARK HARRIS (LINCOLN) LIMITED (REGISTERED NUMBER: 03459006)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MAY 2023


10. PROPERTY, PLANT AND EQUIPMENT
Fixtures
Plant and and Motor
machinery fittings vehicles Totals
£    £    £    £   
COST
At 1 June 2022 421,505 314,954 4,149 740,608
Additions 906 24,113 - 25,019
At 31 May 2023 422,411 339,067 4,149 765,627
DEPRECIATION
At 1 June 2022 298,983 228,485 2,951 530,419
Charge for year 24,640 19,165 426 44,231
At 31 May 2023 323,623 247,650 3,377 574,650
NET BOOK VALUE
At 31 May 2023 98,788 91,417 772 190,977
At 31 May 2022 122,522 86,469 1,198 210,189

11. FIXED ASSET INVESTMENTS

Investments (neither listed nor unlisted) were as follows:
2023 2022
£    £   
Paintings 957 957

12. INVENTORIES
2023 2022
£    £   
Stocks 6,923,159 7,073,334
Work-in-progress 679,050 366,000
7,602,209 7,439,334

13. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Trade debtors 1,660,941 649,813
Bad debt provision (14,528 ) (14,528 )
Other debtors 179,319 182,974
Tax - 9,489
Prepayments and accrued income 65,796 63,578
1,891,528 891,326

MARK HARRIS (LINCOLN) LIMITED (REGISTERED NUMBER: 03459006)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MAY 2023


14. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Trade creditors 579,559 367,265
Tax 421,113 469,116
Social security and other taxes 35,722 29,036
VAT 465,865 43,462
Other creditors 785,063 1,121,311
Directors' current accounts 398 1,494
Accruals and deferred income 474,613 83,548
2,762,333 2,115,232

15. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:
2023 2022
£    £   
Within one year 10,318 14,011
Between one and five years 2,464 11,090
12,782 25,101

16. PROVISIONS FOR LIABILITIES
2023 2022
£    £   
Deferred tax 31,473 26,035

Deferred
tax
£   
Balance at 1 June 2022 26,035
Provided during year 5,438
Balance at 31 May 2023 31,473

The deferred tax provision is made in respect of accelerated capital allowances already claimed.

17. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: £    £   
5,000 Ordinary £1 5,000 5,000

Allotted and issued:
Number: Class: Nominal 2023 2022
value: £    £   
300,000 Class E £1 3,000 3,000

MARK HARRIS (LINCOLN) LIMITED (REGISTERED NUMBER: 03459006)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MAY 2023


17. CALLED UP SHARE CAPITAL - continued

The holders of the ordinary shares are entitled to receive dividends as declared from time to time and are entitled to one vote per share at meetings of the company. All ordinary shares rank equally with regard to the company's residual assets.

The holders of the E Shares are entitled to receive dividends as declared from time to time and carry no other rights or preferences.

Called up share capital represents the nominal value of shares that have been issued. Only 1p per Class E Share has been called up.

18. RESERVES
Retained
earnings
£   

At 1 June 2022 18,999,933
Profit for the year 7,807,146
Dividends (77,000 )
At 31 May 2023 26,730,079

19. ULTIMATE PARENT COMPANY

Mark Harris (Holdings) Limited is regarded by the director as being the company's ultimate parent company.

Mark Harris (Lincoln) Limited is a subsidiary of ultimate controlling parent Mark Harris (Holdings) Limited, registered office address -
The Old Stables, Sudbrooke Road, Scothern, Lincoln, Lincolnshire, UK, LN2 2UZ.

Mark Harris (Holdings) Limited prepares consolidated financial statements

20. RELATED PARTY DISCLOSURES

At the balance sheet date Mark Harris (Lincoln) Limited and Mark Harris (Properties) Limited are both 100% owned subsidiaries of Mark Harris (Holdings) Limited. M R Harris is the managing director and majority shareholder of Mark Harris (Holdings) Limited.

The company was charged £337,500 (2022: £300,000) in rent by Mark Harris (Properties) Limited during this financial year.

At 31 May 2023 the amounts due to Mark Harris (Properties) Limited was £337,500 (2022: £Nil).

At 31 May 2023 the amounts due from Mark Harris (Properties) Limited was £Nil (2022: £Nil).

The key management personnel of the company are considered to be that of only the directors of the company.

21. ULTIMATE CONTROLLING PARTY

The ultimate controlling party is M R Harris.