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REGISTERED NUMBER: 13249531 (England and Wales)














Group Strategic Report,

Report of the Directors and

Consolidated Financial Statements

for the Year Ended 31 May 2023

for

Lui Group Limited

Lui Group Limited (Registered number: 13249531)






Contents of the Consolidated Financial Statements
for the Year Ended 31 May 2023




Page

Company Information 1

Group Strategic Report 2

Report of the Directors 3

Report of the Independent Auditors 5

Consolidated Income Statement 9

Consolidated Other Comprehensive Income 10

Consolidated Balance Sheet 11

Company Balance Sheet 12

Consolidated Statement of Changes in Equity 13

Company Statement of Changes in Equity 14

Consolidated Cash Flow Statement 15

Notes to the Consolidated Cash Flow Statement 16

Notes to the Consolidated Financial Statements 17


Lui Group Limited

Company Information
for the Year Ended 31 May 2023







DIRECTORS: N F Oakes
P Lui





REGISTERED OFFICE: FFT Reedham House
31 King Street West
Manchester
Greater Manchester
M3 2PJ





BUSINESS ADDRESS: Prestige House
142 Bury Old Road
Whitefield
Manchester
Greater Manchester
M45 6AT





REGISTERED NUMBER: 13249531 (England and Wales)





AUDITORS: Freedman Frankl & Taylor
Statutory Auditors
Chartered Accountants
Reedham House
31 King Street West
Manchester
M3 2PJ

Lui Group Limited (Registered number: 13249531)

Group Strategic Report
for the Year Ended 31 May 2023

Principal activities
The principal activities of the group during the year were trading in roast and aromatic duck products and pork products.

Business Review
The results for the year and financial position as at 31 May 2023 for the group are shown in the annexed financial statements. The results for the year show an improved performance on last year mainly due to increased turnover and savings in overhead expenses. Bird Flu in europe resulted in a shortage of products but the group has performed well due to its strong brand and market presence.

Key Performance Indicators
2023 2022
Turnover £22,806,879 £18,057,252
Gross Margin 16.07% 16.26%
Administrative expenses £973,812 £1,216,443
Net Profit (before tax) £2,480,246 £1,674,023

Principal risks and uncertainties
The financial risks of the company are described below.

Financial risk management
The group operations are exposed to a variety of financial risks mainly the effects of movement in exchange rates, the group has procedures in place to mitigate these by entering into forward exchange contracts to cover forecast supplier purchases.

Liquidity risk
The group seeks to manage financial risk by ensuring sufficient liquidity to meet foreseeable needs through forecasting and to invest cash safely and profitably.

Interest rate risk
The group is exposed to interest rate fluctuations on its borrowings as most of its facilities are at floating rates.The group feel their exposure to material interest rate change is low.

ON BEHALF OF THE BOARD:





N F Oakes - Director


21 February 2024

Lui Group Limited (Registered number: 13249531)

Report of the Directors
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.

DIVIDENDS
Interim dividends per share were paid as follows:
£200.00 - 24 August 2022
£500.01 - 8 December 2022
£800.00 - 25 January 2023
£1,500.01

The directors recommend that no final dividend be paid.

The total distribution of dividends for the year ended 31 May 2023 will be £ 1,500,001 .

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

N F Oakes
P Lui

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Group 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 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;
- 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.

Lui Group Limited (Registered number: 13249531)

Report of the Directors
for the Year Ended 31 May 2023


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:





N F Oakes - Director


21 February 2024

Report of the Independent Auditors to the Members of
Lui Group Limited

Opinion
We have audited the financial statements of Lui Group 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 Consolidated 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 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 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 Group 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 Group 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
Lui Group 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 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 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 set out on page three, 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.

Report of the Independent Auditors to the Members of
Lui Group 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 identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.

Identifying and assessing potential risks to irregularities
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following:

Audit response to risks identified
- the nature of the industry and sector, control environment and business performance;
- results of enquiries of management about their own identification and assessment of the risks of irregularities;
- any matters we identified having obtained and reviewed the Company's documentation of their policies and
procedures relating to:

- identifying, evaluating and complying with laws and regulations and whether they were aware of any instances
of noncompliance;

- detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or
alleged fraud;
- the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations;
- the matters discussed among the audit engagement team and involving other internal specialists including tax
regarding how and where fraud might occur in the financial statements and any potential indicators of fraud.

As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risks of management override.

We also obtained an understanding of the legal and regulatory frameworks that the Company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the UK Companies Act and local tax legislation.

Audit response to risks identified
As a result of performing the above, we did not identify any key audit matters related to the potential risk of fraud.

Our procedures to respond to risks identified included the following:
- reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with
provisions of relevant laws and regulations described as having a direct effect on the financial statements;
- enquiring of management concerning actual and potential litigation and claims;
- performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of
material misstatement due to fraud;
- obtained an understanding of provisions and held discussions with management to understand the basis of
recognition or non-recognition of tax provisions; and

Report of the Independent Auditors to the Members of
Lui Group Limited

- in addressing the risks of fraud through management override of controls, testing the appropriateness of journal
entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative
of potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the
normal course of business.We also communicated relevant identified laws and regulations and potential fraud risks
to all engagement team members, and remained alert to any indications of fraud or noncompliance with laws and
regulations throughout the audit.

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.




Samuel Bacall BSc(Hons) BFP ACA (Senior Statutory Auditor)
for and on behalf of Freedman Frankl & Taylor
Statutory Auditors
Chartered Accountants
Reedham House
31 King Street West
Manchester
M3 2PJ

21 February 2024

Lui Group Limited (Registered number: 13249531)

Consolidated
Income Statement
for the Year Ended 31 May 2023

Year Ended Period
31.5.23 8.3.21 to 31.5.22
Notes £    £    £    £   

TURNOVER 22,806,879 18,057,252

Cost of sales 19,139,808 15,120,291
GROSS PROFIT 3,667,071 2,936,961

Distribution costs 79,564 82,471
Administrative expenses 945,612 1,216,443
1,025,176 1,298,914
2,641,895 1,638,047

Other operating income 18,275 48,517
OPERATING PROFIT 4 2,660,170 1,686,564

Interest receivable and similar income 38,262 42,500
2,698,432 1,729,064

Interest payable and similar expenses 5 189,986 55,041
PROFIT BEFORE TAXATION 2,508,446 1,674,023

Tax on profit 6 503,353 319,616
PROFIT FOR THE FINANCIAL YEAR 2,005,093 1,354,407
Profit attributable to:
Owners of the parent 2,005,093 1,354,407

Lui Group Limited (Registered number: 13249531)

Consolidated
Other Comprehensive Income
for the Year Ended 31 May 2023

Period
8.3.21
Year Ended to
31.5.23 31.5.22
Notes £    £   

PROFIT FOR THE YEAR 2,005,093 1,354,407


OTHER COMPREHENSIVE INCOME
Share cancellation - 500
Acquisitions via business combinations - 3,066,253
Income tax relating to components of other
comprehensive income

-

-
OTHER COMPREHENSIVE INCOME
FOR THE YEAR, NET OF INCOME TAX

-

3,066,753
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

2,005,093

4,421,160

Total comprehensive income attributable to:
Owners of the parent 2,005,093 4,421,160

Lui Group Limited (Registered number: 13249531)

Consolidated Balance Sheet
31 May 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 9 6,667 10,220
Investments 10 - 500,000
6,667 510,220

CURRENT ASSETS
Stocks 11 3,947,453 2,894,395
Debtors 12 1,802,497 1,291,912
Cash at bank 1,465,390 3,564,522
7,215,340 7,750,829
CREDITORS
Amounts falling due within one year 13 3,867,788 5,411,647
NET CURRENT ASSETS 3,347,552 2,339,182
TOTAL ASSETS LESS CURRENT
LIABILITIES

3,354,219

2,849,402

PROVISIONS FOR LIABILITIES 16 1,667 1,942
NET ASSETS 3,352,552 2,847,460

CAPITAL AND RESERVES
Called up share capital 17 500 500
Retained earnings 18 3,352,052 2,846,960
SHAREHOLDERS' FUNDS 3,352,552 2,847,460

The financial statements were approved by the Board of Directors and authorised for issue on 21 February 2024 and were signed on its behalf by:





N F Oakes - Director


Lui Group Limited (Registered number: 13249531)

Company Balance Sheet
31 May 2023

2023 2022
Notes £    £   
FIXED ASSETS
Tangible assets 9 - -
Investments 10 1,000 1,000
1,000 1,000
TOTAL ASSETS LESS CURRENT
LIABILITIES

1,000

1,000

CAPITAL AND RESERVES
Called up share capital 17 500 500
Retained earnings 18 500 500
SHAREHOLDERS' FUNDS 1,000 1,000

Company's profit for the financial year 1,500,001 1,574,200

The financial statements were approved by the Board of Directors and authorised for issue on 21 February 2024 and were signed on its behalf by:





N F Oakes - Director


Lui Group Limited (Registered number: 13249531)

Consolidated Statement of Changes in Equity
for the Year Ended 31 May 2023

Called up
share Retained Total
capital earnings equity
£    £    £   

Changes in equity
Issue of share capital 500 - 500
Dividends - (1,574,200 ) (1,574,200 )
Total comprehensive income - 4,421,160 4,421,160
Balance at 31 May 2022 500 2,846,960 2,847,460

Changes in equity
Dividends - (1,500,001 ) (1,500,001 )
Total comprehensive income - 2,005,093 2,005,093
Balance at 31 May 2023 500 3,352,052 3,352,552

Lui Group Limited (Registered number: 13249531)

Company Statement of Changes in Equity
for the Year Ended 31 May 2023

Called up
share Retained Total
capital earnings equity
£    £    £   

Changes in equity
Issue of share capital 500 - 500
Dividends - (1,574,200 ) (1,574,200 )
Total comprehensive income - 1,574,700 1,574,700
Balance at 31 May 2022 500 500 1,000

Changes in equity
Dividends - (1,500,001 ) (1,500,001 )
Total comprehensive income - 1,500,001 1,500,001
Balance at 31 May 2023 500 500 1,000

Lui Group Limited (Registered number: 13249531)

Consolidated Cash Flow Statement
for the Year Ended 31 May 2023

Period
8.3.21
Year Ended to
31.5.23 31.5.22
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 673,464 1,572,389
Interest paid (189,986 ) (55,041 )
Tax paid (321,250 ) (3,581 )
Net cash from operating activities 162,228 1,513,767

Cash flows from investing activities
Sale of fixed asset investments 500,000 -
Interest received 38,262 42,500
Net cash from investing activities 538,262 42,500

Cash flows from financing activities
New loans in year - 1,472,175
Loan repayments in year (1,299,621 ) -
Cash acquired via business combinations - 2,110,280
Equity dividends paid (1,500,001 ) (1,574,200 )
Net cash from financing activities (2,799,622 ) 2,008,255

(Decrease)/increase in cash and cash equivalents (2,099,132 ) 3,564,522
Cash and cash equivalents at beginning of
year

2

3,564,522

-

Cash and cash equivalents at end of year 2 1,465,390 3,564,522

Lui Group Limited (Registered number: 13249531)

Notes to the Consolidated Cash Flow Statement
for the Year Ended 31 May 2023

1. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS
Period
8.3.21
Year Ended to
31.5.23 31.5.22
£    £   
Profit before taxation 2,508,446 1,674,023
Depreciation charges 3,552 4,085
Finance costs 189,986 55,041
Finance income (38,262 ) (42,500 )
2,663,722 1,690,649
Increase in stocks (1,053,057 ) (266,750 )
Increase in trade and other debtors (510,585 ) (73,926 )
(Decrease)/increase in trade and other creditors (426,616 ) 222,416
Cash generated from operations 673,464 1,572,389

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 1,465,390 3,564,522
Period ended 31 May 2022
31.5.22 8.3.21
£    £   
Cash and cash equivalents 3,564,522 -


3. ANALYSIS OF CHANGES IN NET DEBT

At 1.6.22 Cash flow At 31.5.23
£    £    £   
Net cash
Cash at bank 3,564,522 (2,099,132 ) 1,465,390
3,564,522 (2,099,132 ) 1,465,390
Debt
Debts falling due within 1 year (3,780,806 ) 1,299,621 (2,481,185 )
(3,780,806 ) 1,299,621 (2,481,185 )
Total (216,284 ) (799,511 ) (1,015,795 )

Lui Group Limited (Registered number: 13249531)

Notes to the Consolidated Financial Statements
for the Year Ended 31 May 2023

1. STATUTORY INFORMATION

Lui Group 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 General 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.

Basis of consolidation
The group financial statements include the financial statements of the company and all its subsidiary undertakings.

The results of subsidiaries acquired are consolidated from the periods from which control passes. Acquisitions are accounted for in accordance with merger accounting rules per Companies Act 2006 S.612.

Related party exemption
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements.

Significant judgements and estimates
In applying the company's and the group accounting policies, the director is required to make judgements, estimates and assumptions in determining the carrying amounts of assets and liabilities. The director's judgements, estimates and assumptions are based on the best and most reliable evidence available at the time when the decisions are made, and are based on historical experience and other factors that are considered to be applicable. Due to the inherent subjectivity involved in making such judgements, estimates and assumptions, the actual results and outcomes may differ.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revision to accounting estimates are recognised in the period in which the estimate is revised, if the revision affects only that period, or in the period of the revision and future periods, if the revision affects both current and future periods.

Key sources of estimation uncertainty
The key assumptions concerning the future, and other key sources of estimation uncertainty, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are disclosed below.

Assessing indicators of impairment
In assessing whether there have been any indicators of impairment assets, the directors have considered both external and internal sources of information such as market conditions and experience of recoverability.

Tangible fixed assets
Tangible fixed assets, are depreciated over their useful lives taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In re-assessing asset lives, factors such as technological innovation, product life cycles and maintenance programmes are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projected disposal values.

Lui Group Limited (Registered number: 13249531)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 May 2023

2. ACCOUNTING POLICIES - continued

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

Bank and other interest is recognised in the period in which it is recieved,

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Fixtures and fittings - 20% on cost
Computer equipment - 25% on reducing balance

Tangible fixed assets are initially recorded at cost less accumulated depreciation and accumulated impairment losses.

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

Financial instruments
Basic financial assets, including trade and other receivables, cash and bank balances, are initially recognised at transaction price.

Investments are initially measured at fair value, which is normally the transaction price.
Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, 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.

Foreign currencies
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet 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.

Lui Group Limited (Registered number: 13249531)

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.

Leasing commitments
Amounts payable under operating leases are charged to the profit and loss account in the period in which they are incurred.

Government grants
Government grants relating to tangible fixed assets are treated as deferred income and released to the profit and loss account over the expected useful lives of the assets concerned. Other grants are credited to the profit and loss account as the related expenditure is incurred.

Going concern
The financial statements for the year ended 31st May 2023 have been prepared on a going concern basis as, after making appropriate enquiries, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future.

3. EMPLOYEES AND DIRECTORS
Period
8.3.21
Year Ended to
31.5.23 31.5.22
£    £   
Wages and salaries 352,121 439,979
Social security costs 35,722 37,505
Other pension costs 90,866 172,587
478,709 650,071

The average number of employees during the year was as follows:
Period
8.3.21
Year Ended to
31.5.23 31.5.22

Selling & administration 8 10

The average number of employees by undertakings that were proportionately consolidated during the year was 8 (2022 - 10 ) .

Period
8.3.21
Year Ended to
31.5.23 31.5.22
£    £   
Directors' remuneration 106,530 67,593
Directors' pension contributions to money purchase schemes 40,000 80,000

Lui Group Limited (Registered number: 13249531)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 May 2023

3. EMPLOYEES AND DIRECTORS - continued

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:

Period
8.3.21
Year Ended to
31.5.23 31.5.22
£    £   
Depreciation - owned assets 3,553 4,084
Auditors' remuneration 15,295 12,000
Foreign exchange differences 159,636 324,677

5. INTEREST PAYABLE AND SIMILAR EXPENSES
Period
8.3.21
Year Ended to
31.5.23 31.5.22
£    £   
Bank interest 189,986 55,041

6. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
Period
8.3.21
Year Ended to
31.5.23 31.5.22
£    £   
Current tax:
UK corporation tax 503,628 321,250

Deferred tax (275 ) (1,634 )
Tax on profit 503,353 319,616

Lui Group Limited (Registered number: 13249531)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 May 2023

6. 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:

Period
8.3.21
Year Ended to
31.5.23 31.5.22
£    £   
Profit before tax 2,508,446 1,674,023
Profit multiplied by the standard rate of corporation tax in the UK of 25 %
(2022 - 19 %)

627,112

318,064

Effects of:
Expenses not deductible for tax purposes 1,450 2,410
Capital allowances in excess of depreciation - (858 )
Depreciation in excess of capital allowances 613 -
Adjustment to tax charge in respect of rate change (125,822 ) -
Total tax charge 503,353 319,616

Tax effects relating to effects of other comprehensive income

There were no tax effects for the year ended 31 May 2023.

8.3.21 to 31.5.22
Gross Tax Net
£    £    £   
Share cancellation 500 - 500
Acquisitions via business combinations 3,066,253 - 3,066,253
3,066,753 - 3,066,753

The UK Government announced in the 2021 budget that from 1 April 2023, the rate of corporation tax in the United Kingdom will increase from 19% to 25%.

7. INDIVIDUAL INCOME STATEMENT

As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements.


Lui Group Limited (Registered number: 13249531)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 May 2023

8. DIVIDENDS
Period
8.3.21
Year Ended to
31.5.23 31.5.22
£    £   
Ordinary F shares of £1 each
Interim 1,500,001 1,574,200

9. TANGIBLE FIXED ASSETS

Group
Fixtures
and Computer
fittings equipment Totals
£    £    £   
COST
At 1 June 2022
and 31 May 2023 9,774 12,716 22,490
DEPRECIATION
At 1 June 2022 5,943 6,327 12,270
Charge for year 1,955 1,598 3,553
At 31 May 2023 7,898 7,925 15,823
NET BOOK VALUE
At 31 May 2023 1,876 4,791 6,667
At 31 May 2022 3,831 6,389 10,220

10. FIXED ASSET INVESTMENTS

Group Company
2023 2022 2023 2022
£    £    £    £   
Shares in group undertakings - - 1,000 1,000
Other loans - 500,000 - -
- 500,000 1,000 1,000

Additional information is as follows:


Lui Group Limited (Registered number: 13249531)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 May 2023

10. FIXED ASSET INVESTMENTS - continued

Company
Shares in
group
undertakings
£   
COST
At 1 June 2022
and 31 May 2023 1,000
NET BOOK VALUE
At 31 May 2023 1,000
At 31 May 2022 1,000

Group
Other
loans
£   
At 1 June 2022 500,000
Repayment in year (500,000 )
At 31 May 2023 -


Lui Group Limited (Registered number: 13249531)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 May 2023

10. FIXED ASSET INVESTMENTS - continued


The company and group investments at the balance sheet date in the share capital of unlisted companies include the following:


Company

Lui Holdings Limited
Registered office: England & Wales
Nature of business: Holding company
%
Class of shares: holding
Ordinary shares 100.00


Group

Sino International Trading Limited
Registered office: England & Wales
Nature of business: Wholesale of meat products
%
Class of shares: holding
Ordinary shares 100.00


Chilli Kingdom Limited
Registered office: England & Wales
Nature of business: Dormant
%
Class of shares: holding
Ordinary shares 100.00


Medal Meats Limited
Registered office: England & Wales
Nature of business: Dormant
%
Class of shares: holding
Ordinary shares 100.00


Papparich Limited
Registered office: England & Wales
Nature of business: Dormant
%
Class of shares: holding
Ordinary shares 100.00

Lui Group Limited (Registered number: 13249531)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 May 2023

11. STOCKS

Group
2023 2022
£    £   
Goods for resale 3,947,453 2,894,395

12. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group
2023 2022
£    £   
Trade debtors 1,724,214 1,213,251
Other debtors 9,766 11,131
VAT 23,113 17,637
Prepayments 45,404 49,893
1,802,497 1,291,912

13. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group
2023 2022
£    £   
Bank loans and overdrafts (see note 14) 2,481,185 3,780,806
Trade creditors 756,057 1,214,670
Tax 503,628 321,250
Social security and other taxes 5,960 5,376
Other creditors 9,763 18,248
Accrued expenses 111,195 71,297
3,867,788 5,411,647

14. LOANS

An analysis of the maturity of loans is given below:

Group
2023 2022
£    £   
Amounts falling due within one year or on demand:
Bank loans 2,481,185 3,780,806

Lui Group Limited (Registered number: 13249531)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 May 2023

15. SECURED DEBTS

The following secured debts are included within creditors:

Group
2023 2022
£    £   
Bank loans 2,481,185 3,780,806

The bank loans and overdrafts are secured by a debenture including a fixed and floating charge over all the assets of one of the subsidiary undertakings.

16. PROVISIONS FOR LIABILITIES

Group
2023 2022
£    £   
Deferred tax 1,667 1,942

Group
Deferred
tax
£   
Balance at 1 June 2022 1,942
Credit to Income Statement during year (275 )
Balance at 31 May 2023 1,667

Analysis of deferred tax balance

2023 2022
£ £
Accelerated capital allowances 1,667 1,942

17. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: £    £   
NIL - -
500 Ordinary F £1 500 500
500 500

Lui Group Limited (Registered number: 13249531)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 May 2023

18. RESERVES

Group
Retained
earnings
£   

At 1 June 2022 2,846,960
Profit for the year 2,005,093
Dividends (1,500,001 )
At 31 May 2023 3,352,052

Company
Retained
earnings
£   

At 1 June 2022 500
Profit for the year 1,500,001
Dividends (1,500,001 )
At 31 May 2023 500


19. RELATED PARTY DISCLOSURES

Other related parties
2023 2022
£    £   
Sales 8,400 8,400
Due to 8,376 17,112