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Registration number: 00601878

G.R. Lane Holdings Limited

Annual Report and Consolidated Financial Statements

for the Year Ended 31 July 2023

 

G.R. Lane Holdings Limited

Contents

Company Information

1

Strategic Report

2 to 3

Directors' Report

4 to 5

Statement of Directors' Responsibilities

6

Independent Auditor's Report

7 to 9

Consolidated Profit and Loss Account

10

Consolidated Statement of Comprehensive Income

11

Consolidated Balance Sheet

12

Balance Sheet

13

Consolidated Statement of Changes in Equity

14

Statement of Changes in Equity

15

Consolidated Statement of Cash Flows

16

Notes to the Financial Statements

17 to 36

 

G.R. Lane Holdings Limited

Company Information

Directors

J M Groves

J Sissons

J Groves

M Frost

A Power

R J Sissons

T E Howard

R R Cox

T J Sissons

Registered office

Sisson Road
Gloucester
GL2 0GR

Solicitors

Harrison Clark Rickerbys Limited
Ellenborough House
Wellington Street
Cheltenham
GL50 1YD

Bankers

Svenska Handelsbanken AB
1145 Regent Court
The Square
Gloucester Business Park
Gloucester
GL3 4AD

Auditors

Hazlewoods LLP
Windsor House
Bayshill Road
Cheltenham
GL50 3AT

 

G.R. Lane Holdings Limited

Strategic Report for the Year Ended 31 July 2023

The directors present their strategic report for the year ended 31 July 2023.

Principal activity
The principal activity of the company is that of a holding company of a trading group. The principal activities of its subsidiary undertakings continued to be the manufacture and distribution of over the counter pharmaceutical products, nutritional supplements, cosmetics and functional confectionery.

Fair review of the business

The directors consider that the business has performed adequately during the year given the market conditions, and consider the financial resources available to the group at the year end to be sufficient. The results for the year, which are set out in the profit and loss account and balance sheet, show pre-tax profit for the year of £4,930,232 (2022 - £3,829,093) and net assets of £27,823,597 (2022 - £25,647,355).

Key performance indicators
Given the nature of the business, the Directors are of the opinion that key performance indicators are a valuable critical tool for driving continuous improvement across all aspects of the business. The group uses a number of key performance indicators to monitor and improve the performance of the business. Indicators are reviewed and altered to meet changes both in the internal and external environments and include measures relating to Financial Performance, Health and Safety, Employee Satisfaction, Customer Satisfaction, Quality and, Environmental.

The group’s key financial indicators during the year included the measurement of turnover, gross profit margin, EBITDA and net cash generation which are presented in the Profit and Loss Account, Balance sheet and Cash Flow Statements. Indicators are reviewed on a daily, weekly and monthly basis, with a tiered escalation system in place for simplified communications and to ensure changes in internal and external environments can be reacted to in a timely manner.

The key financial highlights (excluding pension adjustments to profit and loss) are:

2023

2022

2021

2020

2019

Turnover

44,249,848

38,436,143

32,844,406

38,643,302

36,167,598

Turnover growth

15.1%

17.0%

(15.0)%

6.8%

(1.1)%

Profit before tax

4,180,232

3,356,093

1,714,384

2,924,181

2,704,943

Profit before tax growth

24%

96%

(41)%

8%

19%

Return on investments

10.4%

9.1%

4.6%

9.1%

7.5%

Net assets

27,823,597

25,647,355

22,023,428

19,055,457

18,475,158

Liquidity - current ratio

2.73

3.2

2.78

2.14

2.49

Principal risks and uncertainties

The management of the companies and the execution of the companies' strategies are all subject to a number of risks. The key business risks and uncertainties affecting the companies are considered to relate to the general economic climate, and competition from other manufacturers of complementary products.

Brexit was one of the most significant economic events for the UK, with its final effects still ongoing. The directors continuously assess the possible risks using a framework that considers both probability and impact on the business.

Financial instruments

Financial risk management is an integral part of the way the group is managed. The overall aim of the group's financial risk policies is to minimise potential adverse effects on financial performance and net assets.

The group is exposed to the usual credit and cashflow risk associated with selling on credit and manages this through credit control procedures and maintains credit insurance cover on major customers.

Short term bank deposits are only placed with reputable blue chip banks.

The group's policy on liquidity risk is to ensure that sufficient funds for ongoing operations are available.

 

G.R. Lane Holdings Limited

Strategic Report for the Year Ended 31 July 2023

Future developments

The external commercial environment remains challenging during 2023/24. Together with the operating company directors the directors have reacted to these circumstances in trading conditions where appropriate. Those actions and the ongoing application of the business strategy are expected to be sufficient to ensure the continuity of the business.

Section 172 statement

The Directors believe that they have effectively implemented their duties under section 172 of the Companies Act 2006. The company has considered the long-term strategy of the business in the Strategic Report and consider that this strategy will continue to deliver long term success to the business and it’s stakeholders.

The company is committed to maintaining an excellent reputation and strives to achieve high standards. We are highly selective about which suppliers are used to deliver best value while maintaining an awareness of the environmental impact of the work that they do and strive to reduce their carbon footprint.

The Directors recognise the importance of wider stakeholders in delivering their strategy and achieving sustainability within the business. The main stakeholders in the company are considered to be the employees, suppliers and customers.

In ensuring that all our stakeholders are considered as part of every decision process we believe we act fairly between all members of the company.

Approved by the Board on 28 February 2024 and signed on its behalf by:


J M Groves
Director

 

G.R. Lane Holdings Limited

Directors' Report for the Year Ended 31 July 2023

The directors present their report and the for the year ended 31 July 2023.

Directors of the company

The directors who held office during the year were as follows:

J M Groves

J Sissons

P Simons (resigned 2 October 2022)

J Groves

M Frost

A Power

R J Sissons

T E Howard

R R Cox

The following director was appointed after the year end:

T J Sissons (appointed 1 January 2024)

Employment of disabled persons

The group's policy is to consider the recruitment of disabled workers for those vacancies that they are able to fill. All necessary assistance with initial training courses is given. Once employed, a career plan is developed so as to ensure suitable opportunities for each disabled person. Arrangements are made, where possible, for retraining employees who become disabled, to enable them to perform work identified as appropriate to their aptitudes and abilities.

The group's selection, training, development and promotion policies ensure equal opportunities for all colleagues regardless of factors such as gender, marital status, race, age, sexual preference and orientation, colour, creed, ethnic origin, religion or belief, disability or trade union affiliation. All of our decisions are based on merit.

Employee involvement

The group strives to create a working environment where people enjoy working, give their best and deliver successful outcomes.

The group continues to invest in leadership, technical and safety training for all staff who have been identified as likely to benefit themselves and the Group. Feedback from employees is also welcomed across the Group.

Employees are able to share in the success of the group through an annual bonus scheme, which is based on the group's financial performance and to the individual's performance throughout the period.

Going concern

In accordance with the Financial Reporting Council's 'Going Concern and Liquidity Risk: Guidance for Directors of UK Companies 2009' the directors of all companies are now required to provide disclosures regarding the adoption of the going concern basis of accounting.

The group has sufficient financial resources available, and continues to trade profitably generating cash. The directors have prepared forecasts for the next 12 months that indicate that these trends will continue. The directors therefore have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future and have continued to adopt the going concern basis in preparing the financial statements.

 

G.R. Lane Holdings Limited

Directors' Report for the Year Ended 31 July 2023

Disclosure of information to the auditor

Each director has taken the steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditor is unaware.

Reappointment of auditors

Hazlewoods LLP have expressed their willingness to continue in office.

Approved by the Board on 28 February 2024 and signed on its behalf by:


J M Groves
Director

 

G.R. Lane Holdings Limited

Statement of Directors' Responsibilities

The directors are responsible for preparing the Strategic Report, 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 group and company 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 apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

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

 

G.R. Lane Holdings Limited

Independent Auditor's Report to the Members of G.R. Lane Holdings Limited

Opinion

We have audited the financial statements of G.R. Lane Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 July 2023, which comprise the Consolidated Profit and Loss Account, Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Balance Sheet, Consolidated Statement of Changes in Equity, Statement of Changes in Equity, Consolidated Statement of Cash Flows, 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 the parent company's affairs as at 31 July 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 auditor 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 ability to continue as a going concern for a period of at least twelve months from when the original financial statements were 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 included in the annual report, other than the financial statements and our auditor’s 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

Opinion on other matter prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

the information given in the Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements.

 

G.R. Lane Holdings Limited

Independent Auditor's Report to the Members of G.R. Lane Holdings Limited

Matters on which we are required to report by exception

In the light of our 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 and 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 set out on page 6, 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 is 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.

Auditor’s 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 auditor’s 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.

Extent to which the audit was capable of detecting irregularities, including fraud

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 considered the nature of the group’s industry and its control environment and reviewed the groups’s documentation of their policies and procedures relating to fraud and compliance with laws and regulations. We also enquired of management about their own identification and assessment of the risks of irregularities.

We obtained an understanding of the legal and regulatory framework that the group operates in and identified the key laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements, including the UK Companies Act and tax legislation, and, those that do not have a direct effect on the financial statements but compliance with which may be fundamental to the group’s ability to operate or to avoid a material penalty.

We discussed among the audit engagement team regarding the opportunities and incentives that may exist within the organisation for fraud and how and where fraud might occur in the financial statements.

In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override. In addressing the risk of fraud through management override of controls, we tested the appropriateness of journal entries and other adjustments; assessed whether the judgments made in accounting estimates are indicative of a potential bias; and evaluated the business rationale of any significant transactions that are unusual or outside the normal course of business.

In addition to the above, our procedures to respond to the risks identified included the following:

reviewing financial statement disclosures by testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;

performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatements due to fraud;

 

G.R. Lane Holdings Limited

Independent Auditor's Report to the Members of G.R. Lane Holdings Limited

enquiring of management concerning actual and potential litigation and claims and instances of non-compliance with laws and regulations; and

reading minutes of meetings of those charged with governance.

Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.

A further description of our responsibilities is available on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

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 auditor’s 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.





Jon Cartwright (Senior Statutory Auditor)
For and on behalf of Hazlewoods LLP, Statutory Auditor

Windsor House
Bayshill Road
Cheltenham
GL50 3AT

28 February 2024

 

G.R. Lane Holdings Limited

Consolidated Profit and Loss Account for the Year Ended 31 July 2023

Note

2023
 £

2022
 £

Turnover

3

44,249,848

38,436,143

Cost of sales

 

(16,035,411)

(14,664,736)

Gross profit

 

28,214,437

23,771,407

Distribution costs

 

(844,422)

(874,737)

Administrative expenses

 

(21,174,616)

(19,504,499)

Operating profit before exceptional administrative expenses and other operating income

 

6,195,399

3,392,171

Administrative expenses - exceptional

5

(1,850,000)

-

Other operating income

4

753,329

640,991

Operating profit

5

5,098,728

4,033,162

Other interest receivable and similar income

6

65,458

-

Interest payable and similar charges

7

(233,954)

(204,069)

 

(168,496)

(204,069)

Profit before tax

 

4,930,232

3,829,093

Taxation

11

(860,391)

(768,345)

Profit for the financial year

 

4,069,841

3,060,748

The above results were derived from continuing operations.

 

G.R. Lane Holdings Limited

Consolidated Statement of Comprehensive Income for the Year Ended 31 July 2023

2023
£

2022
£

Profit for the year

4,069,841

3,060,748

Remeasurement gain/loss on defined benefit pension schemes

(615,750)

1,104,280

Total comprehensive income for the year

3,454,091

4,165,028

 

G.R. Lane Holdings Limited

(Registration number: 00601878)
Consolidated Balance Sheet as at 31 July 2023

Note

2023
 £

2022
 £

Fixed assets

 

Intangible assets

12

6,236,735

7,565,988

Tangible assets

13

8,374,501

7,907,315

 

14,611,236

15,473,303

Current assets

 

Stocks

15

10,051,151

7,580,103

Debtors

16

6,266,225

6,539,309

Cash at bank and in hand

 

9,226,577

7,265,044

 

25,543,953

21,384,456

Creditors: Amounts falling due within one year

17

(9,356,739)

(6,717,312)

Net current assets

 

16,187,214

14,667,144

Total assets less current liabilities

 

30,798,450

30,140,447

Creditors: Amounts falling due after more than one year

17

(2,305,361)

(3,282,830)

Provisions for liabilities

11

(669,492)

(1,076,012)

Net assets excluding pension asset/(liability)

 

27,823,597

25,781,605

Net pension liability

19

-

(134,250)

Net assets

 

27,823,597

25,647,355

Capital and reserves

 

Called up share capital

20

3,500,000

3,500,000

Revaluation reserve

2,362,754

2,384,501

Pension scheme reserve

-

(134,250)

Foreign currency translation reserve

 

1,317

52,309

Profit and loss account

21,959,526

19,844,795

Total equity

 

27,823,597

25,647,355

Approved and authorised by the Board on 28 February 2024 and signed on its behalf by:
 

J M Groves
Director

 

G.R. Lane Holdings Limited

(Registration number: 00601878)
Balance Sheet as at 31 July 2023

Note

2023
 £

2022
 £

Fixed assets

 

Intangible assets

12

5,444,107

-

Tangible assets

13

5,829,786

-

Investments

14

7,741,418

2,250,002

 

19,015,311

2,250,002

Current assets

 

Debtors

16

15,860

11,182,121

Cash at bank and in hand

 

6,158,814

28,497

 

6,174,674

11,210,618

Creditors: Amounts falling due within one year

17

(1,445,184)

(187,234)

Net current assets

 

4,729,490

11,023,384

Total assets less current liabilities

 

23,744,801

13,273,386

Provisions for liabilities

11

(505,692)

-

Net assets

 

23,239,109

13,273,386

Capital and reserves

 

Called up share capital

20

3,500,000

3,500,000

Profit and loss account

19,739,109

9,773,386

Total equity

 

23,239,109

13,273,386

The company made a profit after tax for the financial year of £11,192,580 (2022 - profit of £3,138,191).

Approved and authorised by the Board on 28 February 2024 and signed on its behalf by:
 

J M Groves
Director

 

G.R. Lane Holdings Limited

Consolidated Statement of Changes in Equity for the Year Ended 31 July 2023
Equity attributable to the parent company

Share capital
£

Foreign currency translation
£

Revaluation reserve
£

Other reserves
£

Profit and loss account
£

Total
£

At 1 August 2022

3,500,000

52,309

2,384,501

(134,250)

19,844,795

25,647,355

Profit for the year

-

-

-

-

4,069,841

4,069,841

Other comprehensive income

-

-

-

-

(615,750)

(615,750)

Dividends

-

-

-

-

(1,226,857)

(1,226,857)

Transfer of realised profits

-

-

(21,747)

-

21,747

-

Transfer from pension scheme

-

-

-

134,250

(134,250)

-

Foreign currency translation

-

(50,992)

-

-

-

(50,992)

At 31 July 2023

3,500,000

1,317

2,362,754

-

21,959,526

27,823,597

Share capital
£

Foreign currency translation
£

Revaluation reserve
£

Other reserves
£

Profit and loss account
£

Total
£

At 1 August 2021

3,500,000

(80,709)

2,406,248

(1,711,530)

17,909,419

22,023,428

Profit for the year

-

-

-

-

3,060,748

3,060,748

Other comprehensive income

-

-

-

-

1,104,280

1,104,280

Dividends

-

-

-

-

(674,119)

(674,119)

Transfer of realised profits

-

-

(21,747)

-

21,747

-

Transfer from pension scheme

-

-

-

1,577,280

(1,577,280)

-

Foreign currency transaction

-

133,018

-

-

-

133,018

At 31 July 2022

3,500,000

52,309

2,384,501

(134,250)

19,844,795

25,647,355

 

G.R. Lane Holdings Limited

Statement of Changes in Equity for the Year Ended 31 July 2023

Share capital
£

Profit and loss account
£

Total
£

At 1 August 2022

3,500,000

9,773,386

13,273,386

Profit for the year

-

11,192,580

11,192,580

Dividends

-

(1,226,857)

(1,226,857)

At 31 July 2023

3,500,000

19,739,109

23,239,109

Share capital
£

Profit and loss account
£

Total
£

At 1 August 2021

3,500,000

7,309,314

10,809,314

Profit for the year

-

3,138,191

3,138,191

Dividends

-

(674,119)

(674,119)

At 31 July 2022

3,500,000

9,773,386

13,273,386

 

G.R. Lane Holdings Limited

Consolidated Statement of Cash Flows for the Year Ended 31 July 2023

Note

2023
£

2022
£

Cash flows from operating activities

Profit for the year

 

4,069,841

3,060,748

Adjustments to cash flows from non-cash items

 

Depreciation and amortisation

5

2,484,861

2,503,356

Loss on disposal of tangible assets

224

3

Finance income

(65,458)

-

Finance costs

233,954

204,069

Income tax expense

11

860,391

768,345

 

7,583,813

6,536,521

Working capital adjustments

 

Increase in stocks

15

(2,471,048)

(2,048,270)

Decrease/(increase) in trade debtors

16

273,084

(243,152)

Increase/(decrease) in trade creditors

17

3,048,261

(390,942)

Decrease in retirement benefit obligation net of actuarial changes

19

(750,000)

(473,000)

Cash generated from operations

 

7,684,110

3,381,157

Income taxes paid

11

(999,440)

(717,829)

Net cash flow from operating activities

 

6,684,670

2,663,328

Cash flows from investing activities

 

Interest received

65,458

-

Acquisitions of tangible assets

(1,615,067)

(743,014)

Proceeds from sale of tangible assets

 

61,794

-

Net cash flows from investing activities

 

(1,487,815)

(743,014)

Cash flows from financing activities

 

Interest paid

(233,954)

(204,069)

Repayment of bank borrowing

 

(1,857,029)

(2,325,974)

Proceeds from other borrowing draw downs

 

210,916

(2,790)

Payments to finance lease creditors

 

(77,476)

(146,568)

Foreign exchange losses

 

(50,922)

133,018

Dividends paid

(1,226,857)

(674,119)

Net cash flows from financing activities

 

(3,235,322)

(3,220,502)

Net increase/(decrease) in cash and cash equivalents

 

1,961,533

(1,300,188)

Cash and cash equivalents at 1 August

 

7,265,044

8,565,232

Cash and cash equivalents at 31 July

 

9,226,577

7,265,044

 

G.R. Lane Holdings Limited

Notes to the Financial Statements for the Year Ended 31 July 2023

 

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
Sisson Road
Gloucester
GL2 0GR

 

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland and the Companies Act 2006'.

Basis of preparation

These financial statements have been prepared using the historical cost convention except for, where disclosed in these accounting policies, certain items that are shown at fair value.

The presentational currency of the financial statements is pound sterling, being the functional currency of the primary economic environment in which the company operates. Monetary amounts in these financial statements are rounded to the nearest pound.

Basis of consolidation

The consolidated financial statements consolidate the financial statements of the company and its subsidiary undertakings drawn up to 31 July 2023.

A subsidiary is an entity controlled by the company. Control is achieved where the company has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.

The results of subsidiaries acquired or disposed of during the year are included in the income statement from the effective date of acquisition or up to the effective date of disposal, as appropriate. Where necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by the group.

The purchase method of accounting is used to account for business combinations that result in the acquisition of subsidiaries by the group. The cost of a business combination is measured as the fair value of the assets given, equity instruments issued and liabilities incurred or assumed at the date of exchange, plus costs directly attributable to the business combination. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. Any excess of the cost of the business combination over the acquirer’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities recognised is recorded as goodwill.

Inter-company transactions, balances and unrealised gains on transactions between the company and its subsidiaries, which are related parties, are eliminated in full.

Intra-group losses are also eliminated but may indicate an impairment that requires recognition in the consolidated financial statements.

Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the group. Non-controlling interests in the net assets of consolidated subsidiaries are identified separately from the group’s equity therein. Non-controlling interests consist of the amount of those interests at the date of the original business combination and the non-controlling shareholder’s share of changes in equity since the date of the combination. Total comprehensive income is attributed to non-controlling interests even if this results in the non-controlling interests having a deficit balance.

 

G.R. Lane Holdings Limited

Notes to the Financial Statements for the Year Ended 31 July 2023

Going concern

The group has sufficient financial resources available and is currently trading profitably and generating cash. The directors have prepared forecasts for the next 12 months that indicate that this trend will continue. The directors believe that the company has sufficient resources to continue in operational existence for the foreseeable future and have continued to adopt the going concern basis in preparing the financial statements.

Critical accounting judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amounts 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 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.
 

Judgements

The company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results.

No significant judgements have been made by management in preparing these financial statements.

Key sources of estimation uncertainty

No key sources of estimation uncertainty have been identified by management in preparing these financial statements other than those detailed in these accounting policies..

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the group’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts and after eliminating sales within the company.

The group recognises revenue when: a) the amount of revenue can be reliably measured; b) it is probable that future economic benefits will flow to the entity; and c) specific criteria have been met for each of the group's activities.

Government grants

Government grants are recognised based on the accrual model and are measured at the fair value of the asset received or receivable. Grants are classified as relating either to revenue or to assets. Grants relating to revenue are recognised in income over the period in which the related costs are recognised. Grants relating to assets are recognised over the expected useful life of the asset. Where part of a grant relating to an asset is deferred, it is recognised as deferred income.

Foreign currency transactions and balances

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rates prevailing on the initial transaction dates.

Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.

Tax

The corporation tax expense for the year comprises current and deferred tax. Corporation tax is recognised in the profit and loss account, except that a charge attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current corporation tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the group operates and generates taxable income.

 

G.R. Lane Holdings Limited

Notes to the Financial Statements for the Year Ended 31 July 2023

Deferred tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated financial statements and on unused tax losses or tax credits in the group. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.

Tangible assets

Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

The company has adopted a policy of revaluation in respect of its freehold land and property.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Land and buildings freehold

Land: Nil; Buildings: 2% straight line basis

Land and buildings leasehold

10% straight line basis

Plant and machinery

10% - 20% straight line basis

Fixtures, fittings and equipment

10% - 33% straight line basis

Motor vehicles

25% straight line basis

Business combinations

Business combinations are accounted for using the purchase method. The consideration for each acquisition is measured at the aggregate of the fair values at acquisition date of assets given, liabilities incurred or assumed, and equity instruments issued by the group in exchange for control of the acquired, plus any costs directly attributable to the business combination. When a business combination agreement provides for an adjustment to the cost of the combination contingent on future events, the group includes the estimated amount of that adjustment in the cost of the combination at the acquisition date if the adjustment is probable and can be measured reliably.

Goodwill

Goodwill is amortised over its estimated useful life of ten years.

Intangible assets

Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the group’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

Separately acquired trademarks and licences are shown at historical cost.

Licences, knowhow and trademark intangible assets acquired in a business combination are recognised at fair value at the acquisition date.

Licences, knowhow and trademark intangible assets have a finite useful life and are carried at cost less accumulated amortisation and any accumulated impairment losses.

Amortisation

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their estimated useful life as follows:

Asset class

Amortisation method and rate

Goodwill

5-10% straight line

Licences, knowhow and trade marks

5-10% straight line

 

G.R. Lane Holdings Limited

Notes to the Financial Statements for the Year Ended 31 July 2023

Investments

Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.

Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade debtors

Trade debtors are amounts due from customers for merchandise sold in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. All debtors are repayable within one year and are hence included at the undiscounted amount of cash expected to be received. A provision for the impairment of trade debtors is established when there is objective evidence that the group will not be able to collect all amounts due according to the original terms of the receivables.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using a standard cost method.

The cost of finished goods comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in the profit or loss account.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the group does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and are repayable within one year and hence are included at the undiscounted amount of cash expected to be paid.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the group has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Provisions

Provisions are recognised when the group has an obligation at the reporting date as a result of a past event, it is probable that the group will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

 

G.R. Lane Holdings Limited

Notes to the Financial Statements for the Year Ended 31 July 2023

Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.

Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the balance sheet as a finance lease obligation. Lease payments are apportioned between finance costs in the profit and loss account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Dividends

Dividend distributions to the company’s shareholders are recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the group has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

Defined benefit pension obligation

The pension costs are assessed using the projected unit credit method. The cost of providing pensions is charged to the profit and loss account so as to spread the regular costs over the service lives of the employees. The pension obligation is measured at the present value of the estimated future cash flows using interest rates on government securities that have terms to maturity approximating the terms of the related liabilities. The assumptions of life expectancy, salary increase and asset valuations reflect historical experience and current trends.

Financial instruments


Classification
Financial instruments are classified and accounted for according to the substance of the contractual arrangement, as financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. Where shares are issued, any component that creates a financial liability of the company is presented as a liability on the balance sheet. The corresponding dividends relating to the liability component are charged as interest expenses in the profit and loss account.

 Recognition and measurement
All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

Financial assets and liabilities are only offset in the balance sheet when, and only when, there exists a legally enforceable right to set off the recognised amounts and the company intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.


 Impairment
Assets, other than those measured at fair value, are assessed for indicators of impairment at each balance sheet date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss as described below.

 

G.R. Lane Holdings Limited

Notes to the Financial Statements for the Year Ended 31 July 2023

 

3

Turnover

The analysis of the group's Turnover for the year by market is as follows:

2023
£

2022
£

UK

40,701,379

35,634,905

Europe

1,210,915

1,095,286

Rest of world

2,337,554

1,705,952

44,249,848

38,436,143

All of the group's revenue is derived from the sale of goods.

 

4

Other operating income

The analysis of the group's other operating income for the year is as follows:

2023
£

2022
£

Government grants

-

7,981

Royalties receivable

753,329

633,010

753,329

640,991

Coronavirus Job Retention Scheme

The group received grants in relation to the Coronavirus Job Retention Scheme (CJRS) which are accounted ass revenue grant. £nil (2022 - £7,981) was credited to the profit and loss account in relation to this grant.

 

5

Operating profit

Arrived at after charging/(crediting)

2023
£

2022
£

Depreciation expense

1,155,608

1,137,401

Amortisation expense

1,329,253

1,365,955

Foreign exchange (gains)/losses

(48,766)

85,601

Operating lease expense - property

127,545

107,660

Operating lease expense - other

240,814

211,182

Exceptional administrative expenses

1,850,000

-

The exceptional administrative expenses of £1,850,000 relate to obligated costs of de-risking the Group's defined benefit pension scheme.

 

6

Other interest receivable and similar income

2023
£

2022
£

Interest income on bank deposits

65,458

-

 

7

Interest payable and similar expenses

2023
£

2022
£

Interest on bank overdrafts and borrowings

226,732

192,830

Interest on obligations under finance leases and hire purchase contracts

7,222

11,239

233,954

204,069

 

G.R. Lane Holdings Limited

Notes to the Financial Statements for the Year Ended 31 July 2023

 

8

Staff costs

Group
The aggregate payroll costs (including directors' remuneration) were as follows:

2023
 £

2022
 £

Wages and salaries

9,288,815

7,897,751

Social security costs

875,747

764,055

Pension costs, defined contribution scheme

488,520

1,676,175

10,653,082

10,337,981

The average number of persons employed by the group (including directors) during the year, analysed by category was as follows:

2023
 No.

2022
 No.

Production

132

109

Administration and support

121

126

253

235

Company
The aggregate payroll costs (including directors' remuneration) were as follows:

2023
 £

2022
 £

Wages and salaries

162,498

195,756

Social security costs

16,813

16,854

Pension costs, defined contribution scheme

22,153

22,523

201,464

235,133

The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:

2023
 No.

2022
 No.

Administration and support

8

6

 

G.R. Lane Holdings Limited

Notes to the Financial Statements for the Year Ended 31 July 2023

 

9

Directors' remuneration

The directors' remuneration for the year was as follows:

2023
£

2022
£

Remuneration

78,979

219,534

Contributions paid to money purchase schemes

10,000

9,785

88,979

229,319

During the year the number of directors who were receiving benefits and share incentives was as follows:

2023
No.

2022
No.

Accruing benefits under money purchase pension scheme

1

4

In respect of the highest paid director:

2023
£

2022
£

Remuneration

35,027

99,048

 

10

Auditors' remuneration

2023
£

2022
£

Audit of these financial statements

4,950

4,500

Audit of the financial statements of subsidiaries of the company pursuant to legislation

38,830

35,300

43,780

39,800

Other fees to auditors

All other non-audit services

32,169

-


 

 

11

Taxation

Tax charged/(credited) in the consolidated profit and loss account

2023
£

2022
£

Current taxation

UK corporation tax

1,256,505

661,907

UK corporation tax adjustment to prior periods

10,406

18,034

1,266,911

679,941

Deferred taxation

Arising from origination and reversal of timing differences

(406,520)

88,404

Tax expense in the income statement

860,391

768,345

 

G.R. Lane Holdings Limited

Notes to the Financial Statements for the Year Ended 31 July 2023

The tax on profit before tax for the year is higher than the standard rate of corporation tax in the UK (2022 - higher than the standard rate of corporation tax in the UK) of 21.01% (2022 - 19%).

The differences are reconciled below:

2023
£

2022
£

Profit before tax

4,930,232

3,829,093

Corporation tax at standard rate

1,035,694

727,528

UK deferred tax (credit)/expense relating to changes in tax rates or laws

(86,968)

45,611

Increase in UK and foreign current tax from adjustment for prior periods

10,406

18,034

Other tax effects for reconciliation between accounting profit and tax expense (income)

(98,741)

(65,155)

Tax increase from effect of unrelieved tax losses carried forward

-

42,327

Total tax charge

860,391

768,345

Deferred tax

Group

Deferred tax assets and liabilities

2023

Liability
£

Accelerated capital allowances

638,263

Deferred tax on revaluation of property

505,712

Other timing differences

(474,483)

669,492

2022

Liability
£

Accelerated capital allowances

570,300

Deferred tax on revaluation of property

505,712

1,076,012

Company

Deferred tax assets and liabilities

2023

Liability
£

Deferred tax on revaluation of property

505,692

505,692

 

G.R. Lane Holdings Limited

Notes to the Financial Statements for the Year Ended 31 July 2023

 

12

Intangible assets

Group

Goodwill
 £

Licences, knowhow & trademarks
 £

Total
£

Cost

At 1 August 2022

5,648,741

15,528,649

21,177,390

Amortisation

At 1 August 2022

4,515,220

9,096,182

13,611,402

Amortisation charge

237,224

1,092,029

1,329,253

At 31 July 2023

4,752,444

10,188,211

14,940,655

Carrying amount

At 31 July 2023

896,297

5,340,438

6,236,735

At 31 July 2022

1,133,521

6,432,467

7,565,988

Company

Goodwill
 £

Licences, knowhow & trademarks
 £

Total
£

Cost

Transfers

50,000

5,394,107

5,444,107

At 31 July 2023

50,000

5,394,107

5,444,107

On 31 July 2023, the company acquired the above intangible assets from its subsidiaries, G R Lane Health Products Limited and Jakemans (Confectioners) Limited.

 

G.R. Lane Holdings Limited

Notes to the Financial Statements for the Year Ended 31 July 2023

 

13

Tangible assets

Group

Land and buildings
£

Furniture, fittings and equipment
 £

Motor vehicles
 £

Plant and machinery
£

Total
£

Cost

At 1 August 2022

4,603,915

1,622,510

35,133

13,114,391

19,375,949

Additions

-

235,844

275,712

1,173,256

1,684,812

Disposals

-

(12,800)

(67,995)

(63,803)

(144,598)

At 31 July 2023

4,603,915

1,845,554

242,850

14,223,844

20,916,163

Depreciation

At 1 August 2022

491,621

1,382,969

6,443

9,587,601

11,468,634

Charge for the year

71,975

160,520

42,385

880,728

1,155,608

Eliminated on disposal

-

(2,773)

(21,361)

(58,446)

(82,580)

At 31 July 2023

563,596

1,540,716

27,467

10,409,883

12,541,662

Carrying amount

At 31 July 2023

4,040,319

304,838

215,383

3,813,961

8,374,501

At 31 July 2022

4,112,294

239,541

28,690

3,526,790

7,907,315

Included within the net book value of land and buildings above is £4,025,615 (2022 - £4,092,282) in respect of freehold land and buildings and £14,704 (2022 - £20,012) in respect of long leasehold land and buildings.
 

 

G.R. Lane Holdings Limited

Notes to the Financial Statements for the Year Ended 31 July 2023

Revaluation

The fair value of the company's freehold land and buildings was valued at £4,000,000 on 31 July 2020. An independent valuer was not involved.

Part of the freehold land and buildings in use during the year were revalued on 31 July 2016 by Ash & Co. Chartered Surveyors who are external to the company. the basis of this valuation was market value. This class of assets has a current balance sheet value of £3,533,333 (2022 - £3,600,000) and a carrying amount at historical cost of £2,372,790 (2022 - £2,372,790). The depreciation on this historical cost is £888,241 (2022 - £978,079).

The freehold property which is in the process of development for use is stated at its historic cost of £492,282 (2022 - £492,282) and will not be depreciated until it is brought into use
.
 

Company

Land and buildings
£

Furniture, fittings and equipment
 £

Motor vehicles
 £

Plant and machinery
£

Total
£

Cost

Transfers

4,112,742

168,454

240,562

1,308,028

5,829,786

At 31 July 2023

4,112,742

168,454

240,562

1,308,028

5,829,786

Carrying amount

At 31 July 2023

4,112,742

168,454

240,562

1,308,028

5,829,786

On 31 July 2023, the company acquired the above tangible assets from its subsidiaries, G R Lane Health Products Limited and Jakemans (Confectioners) Limited.

Included within the net book value of land and buildings above is £4,025,519 (2022 - £Nil) in respect of freehold land and buildings and £87,223 (2022 - £Nil) in respect of long leasehold land and buildings.
 

 

G.R. Lane Holdings Limited

Notes to the Financial Statements for the Year Ended 31 July 2023

 

14

Investments

Company

Subsidiaries

£

Cost or valuation

At 1 August 2022

2,250,002

Transfer from subsidiary

5,491,416

At 31 July 2023

7,741,418

Carrying amount

At 31 July 2023

7,741,418

At 31 July 2022

2,250,002

Details of undertakings

Details of the investments (including principal place of business of unincorporated entities) in which the company holds 20% or more of the nominal value of any class of share capital are as follows:

Undertaking

Registered office

Holding

Proportion of voting rights and shares held

     

2023

2022

Subsidiary undertakings

G.R. Lane Health Products Limited

England

Ordinary

100%

100%

Olbas Limited

England

Ordinary

100%

100%

Kalms Limited

England

Ordinary

100%

100%

Jakemans (Confectioners) Limited

England

Ordinary

100%

100%

Supersun Nutrition Limited

England

Ordinary

100%

100%

Laneshealth Limited

England

Preference

100%

100%

Thos. Symington & Co. Limited

Scotland

Ordinary

100%

100%

Sarakan Limited

England

Ordinary

100%

100%

Gopo Limited

England

Ordinary

100%

100%

Lanes Brands Incorporated

U.S.A.

Ordinary

100%

100%

 

G.R. Lane Holdings Limited

Notes to the Financial Statements for the Year Ended 31 July 2023

Subsidiary undertakings (continued)

The principal activity of G.R. Lane Health Products Limited is the manufacture and retail of over the counter medicines.

The principal activity of Jakemans (Confectioners) Limited is the manufacture and retail of confectionery.

The principal activity of Lanes Brands Incorporated is the retail of confectionery.

Olbas Limited, Kalms Limited, Supersun Nutrition Limited, Laneshealth Limited, Thos. Symington & Co Limited, Sarakan Limited and Gopo Limited are all dormant companies.

On 31 July 2023, the company acquired the direct investment in Jakemans (Confectioners) Limited from G R Lane Health Products Limited.

 

15

Stocks

 

Group

Company

2023
£

2022
£

2023
£

2022
£

Raw materials and consumables

3,708,900

3,284,468

-

-

Finished goods and goods for resale

6,342,251

4,295,635

-

-

10,051,151

7,580,103

-

-

 

16

Debtors

 

Group

Company

2023
 £

2022
 £

2023
 £

2022
 £

Trade debtors

5,567,432

5,776,694

-

-

Amounts owed by related parties

-

-

-

11,033,228

Other debtors

11,200

114,013

-

23,833

Prepayments

687,593

648,602

15,860

125,060

Total current trade and other debtors

6,266,225

6,539,309

15,860

11,182,121

 

17

Creditors

   

Group

Company

Note

2023
 £

2022
 £

2023
 £

2022
 £

Due within one year

 

Loans and borrowings

18

1,460,893

2,137,268

358,979

148,063

Trade creditors

 

2,352,769

1,605,125

-

-

Amounts due to related parties

 

-

-

959,236

-

Social security and other taxes

 

594,608

420,319

1,382

1,702

Outstanding defined contribution pension costs

 

12,240

9,878

-

-

Other creditors

 

1,878,521

29,780

618

617

Accrued expenses

 

2,457,703

2,182,408

100,393

36,852

Corporation tax liability

11

600,005

332,534

24,576

-

 

9,356,739

6,717,312

1,445,184

187,234

Due after one year

 

Loans and borrowings

18

2,305,361

3,282,830

-

-

 

G.R. Lane Holdings Limited

Notes to the Financial Statements for the Year Ended 31 July 2023

 

18

Loans and borrowings

 

Group

Company

2023
£

2022
£

2023
£

2022
£

Current loans and borrowings

Bank borrowings

1,006,600

1,920,867

-

-

Finance lease liabilities

95,314

68,338

-

-

Directors' current accounts

358,979

148,063

358,979

148,063

1,460,893

2,137,268

358,979

148,063

 

Group

Company

2023
£

2022
£

2023
£

2022
£

Non-current loans and borrowings

Bank borrowings

2,138,503

3,081,265

-

-

Finance lease liabilities

166,858

201,565

-

-

2,305,361

3,282,830

-

-

Bank loan 1 is denominated in £ sterling with an interest rate of 5.66%, and the final instalment is due on 22nd December 2024. The carrying amount at year end is £639,318 (2022 - £1,036,647).

Bank loan 2 is denominated in £ sterling with an interest rate of 7.06%, and the final instalment is due on 12th December 2022. The carrying amount at year end is £nil (2022 - £845,462).

Bank loan 3 is denominated in £ sterling with an interest rate of 2.00%, and the final instalment is due on 11th January 2027. The carrying amount at year end is £133,000 (2022 - £220,023).

The loans are secured by a debenture over the assets and undertakings of G.R. Lane Health Products Limited, G.R. Lane Holdings Limited and Jakemans (Confectioners) Limited, a first legal mortgage over the freehold premises, and a joint guarantee from group companies.

In May 2021, the group obtained a Coronavirus Business Interuption Loan of £3,000,000. The loan is denominated in £ sterling with an interest rate of 2.43% plus the bank base rate. Capital repayments commence
in May 2022 and the final instalment is due in April 2026. The carrying amount at the year end is £2,363,838 (2022 - £2,900,000).
 

 

G.R. Lane Holdings Limited

Notes to the Financial Statements for the Year Ended 31 July 2023

 

19

Pension and other schemes

Defined benefit pension schemes

G R Lane Health Products Limited Pension Scheme

The company operated a pension scheme that provide defined benefits based on final pensionable pay. This scheme was closed to future accrual of benefits on 1August 2012. The assets of the scheme are held separately from those of the group, being invested with investment managers. Contributions to the scheme are charged to the profit and loss account so as to spread the cost of pensions over employees' working lives with the group. The pension cost and assets are assessed by a firm of independent consulting actuaries on the basis of triennial valuations using the projected unit method.

The date of the most recent comprehensive actuarial valuation was 31 July 2020. The actuary concluded that the resources of the scheme were likely, in the normal course of events, to meet 82% of the liabilities of the scheme as they fell due. This valuation and the calculation of scheme liabilities for FRS 102 reporting purposes in these financial statements reflect the decision to close the scheme to future accrual of benefits on1 August 2012.

The total cost relating to defined benefit schemes for the year recognised in profit or loss as an expense was £177,000 (2022 - £127,000).

Reconciliation of scheme assets and liabilities to assets and liabilities recognised

The amounts recognised in the balance sheet are as follows:

2023
£

2022
£

Fair value of scheme assets

13,753,000

15,719,000

Present value of defined benefit obligation

(10,234,000)

(12,959,000)

3,519,000

2,760,000

Effect of asset ceiling

(3,519,000)

(2,760,000)

Defined benefit pension scheme surplus/(deficit)

-

-

Defined benefit obligation

Changes in the defined benefit obligation are as follows:

2023
£

Present value at start of year

12,959,000

Interest cost

449,000

Benefits paid

(764,000)

Experience gains (losses) of defined benefit obligations

1,037,000

Change in financial assumptions

(3,447,000)

Present value at end of year

10,234,000

 

G.R. Lane Holdings Limited

Notes to the Financial Statements for the Year Ended 31 July 2023

Fair value of scheme assets

Changes in the fair value of scheme assets are as follows:

2023
£

Fair value at start of year

15,719,000

Interest income

561,000

Return on plan assets, excluding amounts included in interest income/(expense)

(2,407,000)

Employer contributions

709,000

Benefits paid

(764,000)

Administration costs

(65,000)

Fair value at end of year

13,753,000

Analysis of assets

The major categories of scheme assets are as follows:

2023
%

2022
%

Cash and cash equivalents

3

6

Equity instruments

-

64

Debt instruments

97

19

Property

-

11

100

100

Return on scheme assets

2023
£

2022
£

Return on scheme assets

(1,846,000)

622,000

The pension scheme has not invested in any of the group's own financial instruments or in properties or other assets used by the group.

Principal actuarial assumptions

The principal actuarial assumptions at the balance sheet date are as follows:

2023
%

2022
%

Discount rate

5.30

3.60

Future pension increases

2.60

3.50

Inflation

2.60

2.90

 

G.R. Lane Holdings Limited

Notes to the Financial Statements for the Year Ended 31 July 2023

G R Lane Health Products Limited Executive Pension Scheme

The group operates a defined contribution scheme for certain executive staff members. The assets of the scheme are held separately from those of the company.

However, the group has guaranteed that some members of this defined contribution scheme will receive the same benefits, which they would have had, had they been members of the defined benefits scheme.

Contributions to the scheme are charged to the profit and loss account so as to spread the cost of pensions over employees' working lives with the company.

The total cost relating to defined benefit schemes for the year recognised in profit or loss as an expense was £31,000 (2022 - £28,000).

Reconciliation of scheme assets and liabilities to assets and liabilities recognised

The amounts recognised in the balance sheet are as follows:

2023
£

2022
£

Fair value of scheme assets

3,072,000

3,294,000

Present value of defined benefit obligation

(2,901,000)

(3,473,000)

171,000

(179,000)

Related deferred tax asset

-

44,750

Effect of asset ceiling

(171,000)

-

Defined benefit pension scheme deficit

-

(134,250)

Defined benefit obligation

Changes in the defined benefit obligation are as follows:

2023
£

Present value at start of year

3,473,000

Current service cost

10,000

Interest cost

111,000

Benefits paid

(107,000)

Experience gains (losses) of defined benefit obligations

(444,000)

Change in financial assumptions

(142,000)

Present value at end of year

2,901,000

Fair value of scheme assets

Changes in the fair value of scheme assets are as follows:

2023
£

Fair value at start of year

3,294,000

Interest income

105,000

Return on plan assets, excluding amounts included in interest income/(expense)

(230,000)

Employer contributions

25,000

Benefits paid

(107,000)

Administration costs

(15,000)

Fair value at end of year

3,072,000

 

G.R. Lane Holdings Limited

Notes to the Financial Statements for the Year Ended 31 July 2023

Analysis of assets

The major categories of scheme assets are as follows:

2023
%

2022
%

Cash and cash equivalents

7

9

Equity instruments

69

63

Debt instruments

24

28

100

100

Return on scheme assets

2023
£

2022
£

Return on scheme assets

(125,000)

(65,000)

The pension scheme has not invested in any of the group's own financial instruments or in properties or other assets used by the group.

Principal actuarial assumptions

The principal actuarial assumptions at the balance sheet date are as follows:

2023
%

2022
%

Discount rate

5.35

3.25

Future pension increases

2.70

2.90

Inflation

3.50

3.70

 

20

Share capital

Allotted, called up and fully paid shares

 

2023

2022

 

No.

£

No.

£

A Ordinary shares of £1 each

1,077,771

1,077,771

1,077,771

1,077,771

A1 Ordinary shares of £1 each

40,000

40,000

40,000

40,000

A2 Ordinary shares of £1 each

604,594

604,594

604,594

604,594

A3 Ordinary shares of £1 each

27,635

27,635

27,635

27,635

B Ordinary shares of £1 each

1,105,530

1,105,530

1,105,530

1,105,530

B1 Ordinary shares of £1 each

40,000

40,000

40,000

40,000

B2 Ordinary shares of £1 each

604,470

604,470

604,470

604,470

 

3,500,000

3,500,000

3,500,000

3,500,000

All share capital in issue rank pari passu except that they have separate rights to dividends.

 

G.R. Lane Holdings Limited

Notes to the Financial Statements for the Year Ended 31 July 2023

 

21

Obligations under leases

Group

Operating leases

The total of future minimum lease payments is as follows:

2023
£

2022
£

Not later than one year

161,134

204,670

Later than one year and not later than five years

426,766

142,114

Later than five years

181,550

31,166

769,450

377,950

The amount of non-cancellable operating lease payments recognised as an expense during the year was £264,570 (2022 - £313,224).

 

22

Dividends

2023
 £

2022
 £

Dividends paid

1,226,857

674,119

 

23

Analysis of changes in net debt

Group

At 1 August 2022
£

Financing cash flows
£

New finance leases
£

At 31 July 2023
£

Cash and cash equivalents

Cash

7,265,044

1,961,533

-

9,226,577

Borrowings

Long term borrowings

(3,081,265)

942,762

-

(2,138,503)

Short term borrowings

(1,920,867)

914,267

-

(1,006,600)

Lease liabilities

(269,903)

77,476

(69,745)

(262,172)

(5,272,035)

1,934,505

(69,745)

(3,407,275)

Total net debt

1,993,009

3,896,038

(69,745)

5,819,302

 

24

Related party transactions

Group

Key management

Key management personnel are considered to be the directors of the company and key management personnel compensation is disclosed in note 9 to the financial statements.
 

 

25

Control

The company is controlled by the directors.