Company Registration No. 01150261 (England and Wales)
THE LUREX COMPANY LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
PAGES FOR FILING WITH REGISTRAR
THE LUREX COMPANY LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 12
THE LUREX COMPANY LIMITED
BALANCE SHEET
AS AT
31 MARCH 2023
31 March 2023
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
4
374,464
382,540
Investment properties
5
2,768,112
2,500,000
Investments
6
-
0
56,170
3,142,576
2,938,710
Current assets
Stocks
8
2,689,708
1,922,583
Debtors
9
671,255
671,949
Cash at bank and in hand
344,550
854,068
3,705,513
3,448,600
Creditors: amounts falling due within one year
10
(785,408)
(527,080)
Net current assets
2,920,105
2,921,520
Total assets less current liabilities
6,062,681
5,860,230
Creditors: amounts falling due after more than one year
11
-
0
(52,083)
Provisions for liabilities
13
(478,958)
(416,279)
Net assets
5,583,723
5,391,868
Capital and reserves
Called up share capital
900,000
900,000
Investment property reserve
1,829,025
1,623,592
Capital redemption reserve
100,000
100,000
Profit and loss reserves
2,754,698
2,768,276
Total equity
5,583,723
5,391,868

The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the board of directors and authorised for issue on 16 April 2024 and are signed on its behalf by:
A. Kollias
Director
Company Registration No. 01150261
THE LUREX COMPANY LIMITED
NOTES TO THE  FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
- 2 -
1
Accounting policies
Company information

The Lurex Company Limited is a private company limited by shares incorporated in England and Wales. The registered office is 22 Ashville Way, Whetstone, Leicester, LE8 6NU.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The company has taken advantage of the exemption under section 399 of the Companies Act 2006 not to prepare consolidated accounts, on the basis that the group of which this is the parent qualifies as a small group. The financial statements present information about the company as an individual entity and not about its group.

The financial statements have been prepared under the historical cost convention, modified to include investment properties at fair value. The principal accounting policies adopted are set out below.

1.2
Going concern

These financial statements are prepared on the going concern basis. The directors have a reasonable expectation that the company will continue in operational existence for the foreseeable future. The company has sufficient liquid assets (cash, trade debtors and stock) to pay its creditors for a period of at least 12 months after the date the accounts are signed and the entity holds an unencumbered investment property which if sold would generate significant cash reserves for the business.

1.3
Turnover
Turnover represents the invoiced value of goods sold net of VAT.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

1.4
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.

Tangible fixed assets are stated at cost less depreciation. Depreciation is provided on all tangible fixed assets at rates calculated to write off the cost less estimated residual value of each asset over its expected useful life, as follows:
Plant and machinery
20 %  Reducing balance or 5%-8% Straight line
Fixtures and Fittings
20 %  Reducing balance
Motor vehicles
25 %  Reducing balance

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

1.5
Investment properties

Investment property, which is property held to earn rentals and/or for capital appreciation, is measured using the fair value model and stated at its fair value as the reporting end date. The surplus or deficit on revaluation is recognised in the profit and loss account.

THE LUREX COMPANY LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 3 -
1.6
Fixed asset investments

Interests in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

1.7
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

1.8
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.9
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

THE LUREX COMPANY LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 4 -
Basic financial liabilities

Basic financial liabilities, including creditors and loans from fellow group companies, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

1.10
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.11
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

1.12
Pensions

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

THE LUREX COMPANY LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 5 -
1.13
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

1.14
Government grants

Government grants, which include amounts received under the Coronavirus Job Retention Scheme, are recognised at the fair value of the grant received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received. The income is recognised in other income on a systematic basis over the periods in which the associated costs are incurred, using the accrual model.

1.15
Foreign exchange
Transactions denominated in foreign currencies are recorded at the rate of exchange ruling at the date of the transaction.

Monetary assets and liabilities denominated in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date, or where appropriate the rate fixed under the terms of the transaction. All differences are taken to profit and loss account.
1.16

Investment property reserve

The investment property reserve comprises the fair value uplift on the company's investment property net of the associated deferred tax. Any movement in the fair value of the investment property and/or the deferred tax associated with it during the year is transferred from the profit and loss account into this reserve as a reserve movement. The reserve is non-distributable.

THE LUREX COMPANY LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 6 -
2
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 amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

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

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Valuation of investment property

The investment property is held at fair value, directors are required to use their judgement in estimating the fair value of the investment property. The directors have presented a valuation based on similar properties on the market and trends in the property market during the period.

Stock provision

Stock provisions have been made on the following basis:

 

- < 1 year old - no provision

- 1-2 years old - 5% on cost

- 2-3 years old - 10% on cost

- 3-4 years old - 15% on cost

- 4-7 years old - 20% on cost

- 7-9 years old - 40% on cost

> 9 years old - at an average rate of 75% on cost

 

Overall, the total stock provision of £422k (2022: £363k) represents approximately 15% (2022: 16%) of the total stock cost. Of this stock provision £193k (2022: £111k) relates to stock greater than 9 years old which has a cost of £257k (2022: £147k).  The directors have used their knowledge and experience of the business sector to ascertain the levels off stock provision required. For every 5% of additional stock provision the net assets and profit for the year would fall approximately £147k (2022: £110k). The directors are of the opinion that the stock provision is sufficient at the year end.

3
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2023
2022
Number
Number
Total
21
19
THE LUREX COMPANY LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 7 -
4
Tangible fixed assets
Plant and machinery
Fixtures and Fittings
Motor vehicles
Total
£
£
£
£
Cost
At 1 April 2022
1,244,803
273,898
11,660
1,530,361
Additions
33,792
4,017
-
0
37,809
Disposals
-
0
(15,790)
-
0
(15,790)
At 31 March 2023
1,278,595
262,125
11,660
1,552,380
Depreciation and impairment
At 1 April 2022
905,275
235,449
7,097
1,147,821
Depreciation charged in the year
37,786
6,958
1,141
45,885
Eliminated in respect of disposals
-
0
(15,790)
-
0
(15,790)
At 31 March 2023
943,061
226,617
8,238
1,177,916
Carrying amount
At 31 March 2023
335,534
35,508
3,422
374,464
At 31 March 2022
339,528
38,449
4,563
382,540
5
Investment property
2023
£
Fair value
At 1 April 2022
2,500,000
Revaluations
268,112
At 31 March 2023
2,768,112
The directors valued the investment property at open market value as at 31 March 2023 based on the rental yield and the sales price of comparable properties. The directors' valuation has been assessed by a chartered surveyor and considered to be at fair value.
On historical cost basis, the property has original costs of £640,758.
6
Fixed asset investments
2023
2022
£
£
Investments
-
0
56,170
THE LUREX COMPANY LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
6
Fixed asset investments
(Continued)
- 8 -
Movements in fixed asset investments
Shares in group undertakings
£
Cost or valuation
At 1 April 2022
56,170
Additions
18,370
At 31 March 2023
74,540
Impairment
At 1 April 2022
-
Impairment losses
74,540
At 31 March 2023
74,540
Carrying amount
At 31 March 2023
-
At 31 March 2022
56,170
7
Subsidiaries

Details of the company's subsidiaries at 31 March 2023 are as follows:

Name of undertaking
Registered
Nature of business
Class of
% Held
office
shares held
Direct
Indirect
Hi-Tec Yarns Limited
United Kingdom
Manufacture of man-made fibres (dormant)
Ordinary share capital
100.00
-
Sildorex Company Limited
United Kingdom
Non-trading company
Ordinary share capital
100.00
-
Lurex International (Hong Kong) Limited
Hong Kong
Trading of textile fabrics and accesories
Ordinary share capital
100.00
-
8
Stocks
2023
2022
£
£
Stocks
2,689,708
1,922,583
THE LUREX COMPANY LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 9 -
9
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
230,224
202,643
Corporation tax recoverable
-
0
14,021
Amounts owed by group undertakings
257,620
320,989
Other debtors
100,871
56,812
Prepayments and accrued income
82,540
77,484
671,255
671,949
10
Creditors: amounts falling due within one year
2023
2022
£
£
Bank loans
52,083
125,000
Trade creditors
589,482
268,362
Amounts owed to group undertakings
-
0
49,956
Corporation tax
13,437
-
0
Other taxation and social security
12,635
12,464
Other creditors
35,126
11,670
Accruals and deferred income
82,645
59,628
785,408
527,080
11
Creditors: amounts falling due after more than one year
2023
2022
£
£
Bank loans
-
0
52,083
12
Provisions for liabilities
2023
2022
£
£
Deferred tax liabilities
13
478,958
416,279
THE LUREX COMPANY LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 10 -
13
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Liabilities
Liabilities
2023
2022
Balances:
£
£
Accelerated capital allowances
92,243
92,243
Investment property
386,715
324,036
478,958
416,279
THE LUREX COMPANY LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 11 -
14
Audit report information

As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:

The auditor's report was unqualified.

The senior statutory auditor was Gary Miller.
The auditor was HW Fisher LLP.
15
Financial commitments, guarantees and contingent liabilities

The company has given security to its bank in the form of a first legal charge over its freehold premises. At the year end its borrowings from the bank were £52,083 (2022: 177,083).

 

The company is party to a multilateral cross guarantee together with two of its subsidiary undertakings, in respect of group bank borrowings. None of the subsidiary undertakings had any borrowings at the year end.

THE LUREX COMPANY LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 12 -
16
Operating lease commitments

At 31 March 2023 the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2023
2022
£
£
Within one year
61,688
62,718
Between two and five years
-
0
61,688
61,688
124,406
17
Related party transactions
Transactions with related parties

During the year the company entered into the following transactions with related parties:

Income of £12,000 (2022: £12,000) was earned during the year as a result of rental income received from a related party. As at year end there was a debtor value still outstanding of £nil (2022: £nil). The rental income is considered to be below market rate.

18
Parent company

The parent company of The Lurex Company Limited is Sildorex S.A. This company holds 100% of the share capital, is incorporated in France and the registered office is 92 rue de Richelieu, 75002, Paris, France.

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