REGISTERED NUMBER: SC094831 (Scotland) |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
FOR |
LEVENSEAT LTD. |
REGISTERED NUMBER: SC094831 (Scotland) |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
FOR |
LEVENSEAT LTD. |
LEVENSEAT LTD. (REGISTERED NUMBER: SC094831) |
CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 5 |
Report of the Independent Auditors | 7 |
Consolidated Income Statement | 10 |
Consolidated Other Comprehensive Income | 11 |
Consolidated Balance Sheet | 12 |
Company Balance Sheet | 14 |
Consolidated Statement of Changes in Equity | 16 |
Company Statement of Changes in Equity | 17 |
Consolidated Cash Flow Statement | 18 |
Notes to the Consolidated Cash Flow Statement | 19 |
Notes to the Consolidated Financial Statements | 21 |
LEVENSEAT LTD. |
COMPANY INFORMATION |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Accountants and Statutory Auditor |
20 Barns Street |
Ayr |
Ayrshire |
KA7 1XA |
LEVENSEAT LTD. (REGISTERED NUMBER: SC094831) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
The directors present their strategic report of the company and the group for the year ended 31 December 2022. |
REVIEW OF BUSINESS |
2022 was a year of further growth and investment for Levenseat with a view to building on previous success. We secured a number of new Local Authority contracts further enhancing and strengthening our position in the market. |
The acquisition of the Lathallan site in Falkirk was concluded in May 2022, following this a key focus of the business was the delivery of the new Lathallan processing facility, this included design and procurement of a package of works including new processing equipment, removal of redundant equipment, modifications to the facility and specialist contractors to undertake the work. In order to deliver this, a funding package of £5m was secured to finance the acquisition in 2022 followed by further funding in 2023 to support the capital investment modifications which included grant funding through the Scottish Enterprise Low Carbon Manufacturing fund. |
Covid impacts on the supply chain presented challenges in terms of timelines & cost for supply of equipment, whilst this impacted on the project delivery, arrangements were put in place to successfully mitigate this to minimise the impact. |
During this period to ensure continued servicing of existing customer contracts we continued to operate the old sorting line at Forth, given the age of the plant and operational issues this resulted in significant extra operational and disposal costs resulting in this discontinuing activity lower of EBITDA by around £1m in 2022. |
The organics facility continued its focus on optimisation of the organics press and developing outlets of the extract to Anaerobic Digestion facilities across the UK. Whilst operational challenges with the processing equipment impacted on the ability to provide a consistent feedstock supply, good progress was made in developing relationships with offtakers. |
A significant upgrade was carried out on our 'Zambezi' process plant which sits within our minerals processing operations, this has significantly increased our processing capacity for cleaning up contaminated streams and has also benefitted through operational efficiencies. This is an example of continued investment in improving our ability to provide cost effective solutions to customers and ensure the long-term viability of our operations. |
Levenseat further solidified its commitment to Innovate Ash Solutions by extending it's funding support through loan funding. Planning permission was secured enabling the commencement of site preparation works. IAS also secured end of waste certification. Application for a variation to the PPC was made to facilitate development of the plant. |
Throughout the year Levenseat retained full employment, and further expanded the team in key areas. this supported continued Turnover growth increasing by £5.5m to £33.5m (20% increase year on year) however EBITDA fell to £0.5m from £3.9m in 2021 of which the discontinuing activity at Forth represented £1m of the fall. |
Recognising the importance of supporting and developing our team, Levenseat has been well placed to navigate the challenges presented in attracting and retaining talent. Having achieved Real Living Wage accreditation in 2020, we continue to ensure that all personnel working in our operations are fairly rewarded, whilst investing in developing talent within the teams. |
2022 also saw the continued development of our management, financial and IT systems as part of our drive for individual profit centre responsibility and accountability, moving away from our site wide management. This has enabled us to be more proactive through early indications and trends, utilising more specific and in-depth performance reporting which has now become the basis for 2023 departmental management ownership and objective setting, review and continual update. |
With the company's purpose focussed on the sustainable management of resources, we see ourselves as fully embedded in the Circular Economy and the secondary materials economy. Recognising that true sustainability covers a wide range of criteria we have a working group developing a range of metrics to be able to measure and track our impact as an organisation, in particular the carbon metrics and both the positive and negative impacts of our operations. This will inform the development of the company's policies and operational approach on such matters. |
LEVENSEAT LTD. (REGISTERED NUMBER: SC094831) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
PRINCIPAL RISKS AND UNCERTAINTIES |
The directors have assessed the risks the group is exposed to as stated below: |
Competitive Risk. Levenseat is reliant on certain major local authorities for contracts which are subject to periodic competitive tender. Renewal of these contracts is uncertain and based on financial and performance criteria. To mitigate this risk Levenseat provides a comprehensive portfolio of services to minimise exposure to market and the associated contracts are spread over a range of customers and durations. Levenseat aims to provide the highest level of customer service at all times and is in continuous contact with customers to ensure all their needs are met. Levenseat also keeps its pricing competitive for all services provided and continually invests in its sites, processes and employees to optimise value within it's operations and ensure quality of performance and customer experience is maximised. |
Credit Risk is the risk that one party to a financial instrument will cause a financial loss for that other party by failing to discharge an obligation. Levenseat mitigates this risk by only granting these terms to customers who demonstrate an appropriate payment history and satisfy credit worthiness procedures. |
Liquidity Risk is the risk that the entity will encounter difficulty in meeting obligations associated with financial liabilities. Levenseat mitigates liquidity risk by managing cash generation of its operations and by having credit facilities in place. |
Regulatory Compliance Risk is the risk that Levenseat fails to comply with the terms of the Pollution Prevention and Control (PPC) permits and other regulations which govern its waste management operations. To mitigate this risk Levenseat employs staff who are suitably knowledgeable and qualified to manage the business in compliance with these permits and regulations.. Levenseat is accredited under ISO14001 for environmental management systems and employs an independent consultant to regularly monitor and audit processes and procedures. Levenseat also fully and continuously engages with SEPA throughout the year. |
Health and Safety Risk is the risk that Levenseat's operations pose a risk to the health or safety of its employees, suppliers, customers or the general public. Levenseat mitigates this risk by maintaining a regime which (i) requires all operations to be conducted in accordance with high standards of health and safety; and (ii) maintains a high level of awareness among all people involved of potential dangers and the appropriate methods of mitigating them. To support this Levenseat employs an independent health and safety consultant who regularly monitors and audits all of Levenseat's operations. |
Re-Financing Risk is the risk that Levenseat Limited either defaults on its current Loan Facilities or is unable to refinance or renegotiate new terms during 2024. The Company has good relationships with its Lenders with weekly meetings to update and progress short term issues which have been met with constructive solutions. Advisors are also appointed to work on refinancing options. |
LEVENSEAT LTD. (REGISTERED NUMBER: SC094831) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
GOING CONCERN |
The financial statements of the company have been prepared on a going concern basis, which assumes the company will be able to continue to meet its liabilities as they fall due for the foreseeable future. The directors have prepared a 12 month cash flow forecast out to April 2025 which shows, the company will need short term additional funds and have appointed financial advisors to work with the company and the Lender to provide the short term funding in the second quarter of 2024. |
The company's management is actively seeking ways to support the process, including exploring potential sources of additional funding, implementing cost-saving measures and focus on operational improvements at the new Lathallan Facility. However, there is at the time of signing these accounts no absolute certainty that these actions will be sufficient to enable the company to continue as a going concern. |
Despite the good progress, until the refinancing is completed there remains the existence of material uncertainty which may cast doubt on the company's to continue as a going concern. |
ON BEHALF OF THE BOARD: |
LEVENSEAT LTD. (REGISTERED NUMBER: SC094831) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
The directors present their report with the financial statements of the company and the group for the year ended 31 December 2022. |
PRINCIPAL ACTIVITY |
The group's principal activities during the year continued to be waste management, including materials recovery & recycling. |
DIVIDENDS |
No dividends will be distributed for the year ended 31 December 2022. |
RESEARCH AND DEVELOPMENT |
Levenseat is involved in innovative work with regards to a range of waste management and ancillary operations. |
FUTURE DEVELOPMENTS |
Levenseat completed the plant retrofit to modify the existing production process to enable processing of its existing "household and commercial bulky waste" from the Levenseat site to its new facility at Lathallan with take-over and first commercial operation on 5 April 2023 at a total investment spend of £10m, making this the largest single re-investment by Levenseat in achieving its objective towards Zero Landfill from this waste steam. This project is being supported with financing from Virgin Money and has enabled the Company to create and protect around 50 full time employees. |
Further investment at Forth was approved to upgrade the Concrete Block manufacturing facility at Forth with a new mobile concrete batching plant enabling increased Levco Block volume in support of increased demand and additional ability to provide batch concreting facilities both on and off site. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 January 2022 to the date of this report. |
Other changes in directors holding office are as follows: |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Group Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
LEVENSEAT LTD. (REGISTERED NUMBER: SC094831) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
STATEMENT OF DIRECTORS' RESPONSIBILITIES - continued |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
AUDITORS |
The auditors, Galbraith Pritchards, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
LEVENSEAT LTD. |
Opinion |
We have audited the financial statements of Levenseat Ltd. (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2022 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
In our opinion the financial statements: |
- | give a true and fair view of the state of the group's and of the parent company affairs as at 31 December 2022 and of the group's loss for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
Material uncertainty related to going concern |
We draw attention to note 2 in the financial statements, which indicates that the group incurred a net loss of £1,350,657 during the year ended 31 December 2022 and, as of that date, the group's current liabilities exceeded its current assets by £5,068,941. This is a result of investing in a new facility which proved to be more expensive than anticipated and has resulted in short term financing issues. The group is dependent upon the support of its bankers in the short term to continue trading, but is confident in obtaining new longer term financing and investment, although, this is not guaranteed. These events and conditions indicate that a material uncertainty exists that may cast significant doubt on the group's ability to continue as a going concern. Our opinion is not modified in respect of this matter. |
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the accounts is appropriate. |
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
LEVENSEAT LTD. |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the parent company financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on pages five and six, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
In preparing the financial statements, the directors are responsible for assessing the group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so. |
Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
We gained an understanding of the legal and regulatory framework applicable to the group and the industry in which it operates and considered the risk of acts by the group that were contrary to applicable laws and regulations, including fraud. We designed audit procedures to respond to the risk, 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 or intentional misrepresentations, or through collusion. |
We focussed on laws and regulations which could give rise to a material misstatement in the financial statements, including, but not limited to, the Companies Act 2006 and UK tax legislation. Our tests included agreeing the financial statement disclosures to underlying supporting documentation and, enquiries with management. There are inherent limitations in the audit procedures described above 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 would become aware of it. We did not identify any key audit matters relating to irregularities, including fraud. As in all our audits, we also addressed the risk of management override of internal controls, including testing journals and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
LEVENSEAT LTD. |
Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
for and on behalf of |
Chartered Accountants and Statutory Auditor |
20 Barns Street |
Ayr |
Ayrshire |
KA7 1XA |
LEVENSEAT LTD. (REGISTERED NUMBER: SC094831) |
CONSOLIDATED INCOME STATEMENT |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
31/12/22 | 31/12/21 |
Notes | £ | £ | £ | £ |
TURNOVER | 33,462,366 | 27,979,611 |
Cost of sales | 27,713,356 | 20,454,604 |
GROSS PROFIT | 5,749,010 | 7,525,007 |
Administrative expenses | 8,388,847 | 5,963,405 |
(2,639,837 | ) | 1,561,602 |
Other operating income | 3 | 508,941 | 546,414 |
OPERATING (LOSS)/PROFIT | 5 | (2,130,896 | ) | 2,108,016 |
Income from interest in associated undertakings |
34,716 |
46,055 |
Interest receivable and similar income | 22,588 | - |
57,304 | 46,055 |
(2,073,592 | ) | 2,154,071 |
Interest payable and similar expenses | 6 | 239,503 | 40,050 |
(LOSS)/PROFIT BEFORE TAXATION | (2,313,095 | ) | 2,114,021 |
Tax on (loss)/profit | 7 | (962,438 | ) | 467,348 |
(LOSS)/PROFIT FOR THE FINANCIAL YEAR |
( |
) |
(Loss)/profit attributable to: |
Owners of the parent | (1,385,373 | ) | 1,600,618 |
Non-controlling interests | 34,716 | 46,055 |
(1,350,657 | ) | 1,646,673 |
LEVENSEAT LTD. (REGISTERED NUMBER: SC094831) |
CONSOLIDATED OTHER COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
31/12/22 | 31/12/21 |
Notes | £ | £ |
(LOSS)/PROFIT FOR THE YEAR | (1,350,657 | ) | 1,646,673 |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
(1,350,657 |
) |
1,646,673 |
Total comprehensive income attributable to: |
Owners of the parent | (1,385,373 | ) | 1,600,618 |
Non-controlling interests | 34,716 | 46,055 |
(1,350,657 | ) | 1,646,673 |
LEVENSEAT LTD. (REGISTERED NUMBER: SC094831) |
CONSOLIDATED BALANCE SHEET |
31 DECEMBER 2022 |
31/12/22 | 31/12/21 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 9 | 19,987,121 | 11,569,905 |
Investments | 10 |
Interest in associate | 1,037,395 | 1,002,679 |
Other investments | 1,640,981 | 2,027,979 |
Investment property | 11 | 624,916 | 553,267 |
23,290,413 | 15,153,830 |
CURRENT ASSETS |
Stocks | 12 | 227,191 | 169,385 |
Debtors: amounts falling due within one year | 13 | 7,254,734 | 6,438,635 |
Debtors: amounts falling due after more than one year |
13 |
595,000 |
- |
Cash at bank and in hand | 2,266 | 2,740,224 |
8,079,191 | 9,348,244 |
CREDITORS |
Amounts falling due within one year | 14 | 13,148,132 | 8,260,293 |
NET CURRENT (LIABILITIES)/ASSETS | (5,068,941 | ) | 1,087,951 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
18,221,472 |
16,241,781 |
CREDITORS |
Amounts falling due after more than one year |
15 |
(6,698,278 |
) |
(2,667,232 |
) |
PROVISIONS FOR LIABILITIES | 19 | (3,954,285 | ) | (4,654,983 | ) |
NET ASSETS | 7,568,909 | 8,919,566 |
LEVENSEAT LTD. (REGISTERED NUMBER: SC094831) |
CONSOLIDATED BALANCE SHEET - continued |
31 DECEMBER 2022 |
31/12/22 | 31/12/21 |
Notes | £ | £ | £ | £ |
CAPITAL AND RESERVES |
Called up share capital | 20 | 900 | 900 |
Share premium | 21 | 99,102 | 99,102 |
Revaluation reserve | 21 | 2,855,176 | 2,855,176 |
Retained earnings | 21 | 4,426,336 | 5,811,709 |
SHAREHOLDERS' FUNDS | 7,381,514 | 8,766,887 |
NON-CONTROLLING INTERESTS | 187,395 | 152,679 |
TOTAL EQUITY | 7,568,909 | 8,919,566 |
The financial statements were approved by the Board of Directors and authorised for issue on 22 April 2024 and were signed on its behalf by: |
A J Hamilton - Director |
D Walker - Director |
LEVENSEAT LTD. (REGISTERED NUMBER: SC094831) |
COMPANY BALANCE SHEET |
31 DECEMBER 2022 |
31/12/22 | 31/12/21 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 9 |
Investments | 10 |
Investment property | 11 |
CURRENT ASSETS |
Stocks | 12 |
Debtors: amounts falling due within one year | 13 |
Debtors: amounts falling due after more than one year |
13 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 14 |
NET CURRENT (LIABILITIES)/ASSETS | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
15 |
( |
) |
( |
) |
PROVISIONS FOR LIABILITIES | 19 | ( |
) | ( |
) |
NET ASSETS |
LEVENSEAT LTD. (REGISTERED NUMBER: SC094831) |
COMPANY BALANCE SHEET - continued |
31 DECEMBER 2022 |
31/12/22 | 31/12/21 |
Notes | £ | £ | £ | £ |
CAPITAL AND RESERVES |
Called up share capital | 20 |
Share premium | 21 |
Revaluation reserve | 21 |
Retained earnings | 21 |
SHAREHOLDERS' FUNDS |
Company's (loss)/profit for the financial year | (1,385,372 | ) | 1,600,617 |
The financial statements were approved by the Board of Directors and authorised for issue on |
LEVENSEAT LTD. (REGISTERED NUMBER: SC094831) |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
Called up |
share | Retained | Share |
capital | earnings | premium |
£ | £ | £ |
Balance at 1 January 2021 | 900 | 4,211,091 | 99,102 |
Changes in equity |
Total comprehensive income | - | 1,600,618 | - |
Balance at 31 December 2021 | 900 | 5,811,709 | 99,102 |
Changes in equity |
Total comprehensive income | - | (1,385,373 | ) | - |
Balance at 31 December 2022 | 900 | 4,426,336 | 99,102 |
Revaluation | Non-controlling | Total |
reserve | Total | interests | equity |
£ | £ | £ | £ |
Balance at 1 January 2021 | 2,855,176 | 7,166,269 | 106,624 | 7,272,893 |
Changes in equity |
Total comprehensive income | - | 1,600,618 | 46,055 | 1,646,673 |
Balance at 31 December 2021 | 2,855,176 | 8,766,887 | 152,679 | 8,919,566 |
Changes in equity |
Total comprehensive income | - | (1,385,373 | ) | 34,716 | (1,350,657 | ) |
Balance at 31 December 2022 | 2,855,176 | 7,381,514 | 187,395 | 7,568,909 |
LEVENSEAT LTD. (REGISTERED NUMBER: SC094831) |
COMPANY STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
Called up |
share | Retained | Share | Revaluation | Total |
capital | earnings | premium | reserve | equity |
£ | £ | £ | £ | £ |
Balance at 1 January 2021 |
Changes in equity |
Total comprehensive income | - | - |
Balance at 31 December 2021 |
Changes in equity |
Total comprehensive income | - | ( |
) | - | ( |
) |
Balance at 31 December 2022 |
LEVENSEAT LTD. (REGISTERED NUMBER: SC094831) |
CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
31/12/22 | 31/12/21 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 1,708,597 | 3,620,420 |
Interest paid | (172,504 | ) | (2,087 | ) |
Interest element of hire purchase payments paid |
(66,999 |
) |
(37,963 |
) |
Tax paid | 2,358 | (150,530 | ) |
Net cash from operating activities | 1,471,452 | 3,429,840 |
Cash flows from investing activities |
Purchase of tangible fixed assets | (10,730,034 | ) | (5,154,012 | ) |
Purchase of fixed asset investments | (13,000 | ) | (104,000 | ) |
Purchase of investment property | (71,649 | ) | - |
Sale of tangible fixed assets | 195,682 | 62,500 |
Interest received | 22,588 | - |
Net cash from investing activities | (10,596,413 | ) | (5,195,512 | ) |
Cash flows from financing activities |
New loans in year | 5,000,000 | 500,000 |
Loan repayments in year | (333,474 | ) | (92,247 | ) |
New hire purchase loans in year | 967,143 | 2,758,306 |
Capital repayments in year | (986,321 | ) | (643,372 | ) |
Net cash from financing activities | 4,647,348 | 2,522,687 |
(Decrease)/increase in cash and cash equivalents | (4,477,613 | ) | 757,015 |
Cash and cash equivalents at beginning of year |
2 |
1,977,811 |
1,220,796 |
Cash and cash equivalents at end of year | 2 | (2,499,802 | ) | 1,977,811 |
LEVENSEAT LTD. (REGISTERED NUMBER: SC094831) |
NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
1. | RECONCILIATION OF (LOSS)/PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
31/12/22 | 31/12/21 |
£ | £ |
(Loss)/profit before taxation | (2,313,095 | ) | 2,114,021 |
Depreciation charges | 2,195,717 | 1,766,540 |
Profit on disposal of fixed assets | (78,581 | ) | (62,500 | ) |
Loss on revaluation of fixed assets | 399,998 | - |
Finance costs | 239,503 | 40,050 |
Finance income | (57,304 | ) | (46,055 | ) |
386,238 | 3,812,056 |
Increase in stocks | (57,806 | ) | (38,793 | ) |
Increase in trade and other debtors | (1,321,965 | ) | (762,892 | ) |
Increase in trade and other creditors | 2,702,130 | 610,049 |
Cash generated from operations | 1,708,597 | 3,620,420 |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 31 December 2022 |
31/12/22 | 1/1/22 |
£ | £ |
Cash and cash equivalents | 2,266 | 2,740,224 |
Bank overdrafts | (2,502,068 | ) | (762,413 | ) |
(2,499,802 | ) | 1,977,811 |
Year ended 31 December 2021 |
31/12/21 | 1/1/21 |
£ | £ |
Cash and cash equivalents | 2,740,224 | 1,220,796 |
Bank overdrafts | (762,413 | ) | - |
1,977,811 | 1,220,796 |
LEVENSEAT LTD. (REGISTERED NUMBER: SC094831) |
NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
3. | ANALYSIS OF CHANGES IN NET DEBT |
At 1/1/22 | Cash flow | At 31/12/22 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 2,740,224 | (2,737,958 | ) | 2,266 |
Bank overdrafts | (762,413 | ) | (1,739,655 | ) | (2,502,068 | ) |
1,977,811 | (4,477,613 | ) | (2,499,802 | ) |
Debt |
Finance leases | (3,147,278 | ) | 19,178 | (3,128,100 | ) |
Debts falling due within 1 year | (85,958 | ) | (418,042 | ) | (504,000 | ) |
Debts falling due after 1 year | (414,042 | ) | (4,248,484 | ) | (4,662,526 | ) |
(3,647,278 | ) | (4,647,348 | ) | (8,294,626 | ) |
Total | (1,669,467 | ) | (9,124,961 | ) | (10,794,428 | ) |
LEVENSEAT LTD. (REGISTERED NUMBER: SC094831) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
1. | STATUTORY INFORMATION |
Levenseat Ltd. is a |
2. | ACCOUNTING POLICIES |
BASIS OF PREPARING THE FINANCIAL STATEMENTS |
GOING CONCERN |
The group incurred a net loss of £1,350,657 during the year ended 31 December 2022 and, as of that date, the group's current liabilities exceeded its current assets by £5,068,941. This is a result of investing in a new facility which proved to be more expensive than anticipated and has resulted in short term financing issues. The group is dependent upon the support of its bankers in the short term to continue trading, but, is confident in obtaining new longer term financing and investment, however, this is not guaranteed The directors believe that is remains appropriate to prepare the financial statements on a going concern basis. |
BASIS OF CONSOLIDATION |
The group financial statements consolidate the financial statements of the company and its subsidiaries; Levenseat Organics Limited, Levenseat Recycling Limited and Levenseat House Limited. The results of subsidiaries acquired or sold are consolidated for the periods from or to the date on which control passed. |
CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY |
In the application of the company's accounting policies, which are described in this note, 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. |
TURNOVER |
Revenue represents the income received excluding value added tax, trade discounts and intercompany sales, in the ordinary course of business for goods and services provided. Revenue is measured at the fair value of consideration given and is recognised on receipt of waste and on sale of recyclable materials. Landfill tax is included within both revenue and cost of sales. |
TANGIBLE FIXED ASSETS |
Freehold property | - |
Plant and machinery | - |
A review of impairment is carried out at each reporting date. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. |
LEVENSEAT LTD. (REGISTERED NUMBER: SC094831) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
2. | ACCOUNTING POLICIES - continued |
INVESTMENTS IN SUBSIDIARIES AND ASSOCIATES |
In the Company balance sheet, investments in subsidiaries and associates are measured at cost less impairment. |
In the Group financial statements, investments in associates are accounted for using the equity method. Investments in associates are initially recognised at the transaction price and are subsequently adjusted to reflect the Group's share of the profit or loss and other comprehensive income of the associate. |
INVESTMENT PROPERTY |
Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in profit or loss. |
STOCKS |
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
FINANCIAL INSTRUMENTS |
Interest- bearing loans receivable are basic financial instruments initially recognised at the present value of cash receivable (including interest). After initial recognition they are measured at amortised cost using the effective interest method, less any impairment. |
TAXATION |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
DEFERRED TAX |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
HIRE PURCHASE AND LEASING COMMITMENTS |
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter. |
The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability. |
PENSION COSTS AND OTHER POST-RETIREMENT BENEFITS |
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
LEVENSEAT LTD. (REGISTERED NUMBER: SC094831) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
2. | ACCOUNTING POLICIES - continued |
LANDFILL PROVISIONS |
Provisions for the reinstatement of landfill sites and environmental costs are made in compliance with both SEPA and planning authority regulations. The costs are charged to the profit and loss over the operational life of the landfill site on the basis of the usage of void space. The environmental costs are provided for based on the Directors expectation that the obligation will have been fulfilled 60 years post closure of the site. |
3. | OTHER OPERATING INCOME |
31/12/22 | 31/12/21 |
£ | £ |
Rents received | 191,942 | 215,980 |
Sundry receipts | 28,374 | 64,820 |
Electricity generation income | 288,625 | 227,741 |
Government grants | - | 37,873 |
508,941 | 546,414 |
4. | EMPLOYEES AND DIRECTORS |
31/12/22 | 31/12/21 |
£ | £ |
Wages and salaries | 5,524,810 | 5,023,277 |
Social security costs | 588,207 | 505,174 |
Other pension costs | 120,649 | 104,857 |
6,233,666 | 5,633,308 |
The average number of employees during the year was as follows: |
31/12/22 | 31/12/21 |
Production | 125 | 123 |
Management | 5 | 4 |
Administration | 21 | 20 |
The average number of employees by undertakings that were proportionately consolidated during the year was 151 (2021 - 147 ) . |
31/12/22 | 31/12/21 |
£ | £ |
Directors' remuneration | 276,361 | 169,289 |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes | 3 | 3 |
LEVENSEAT LTD. (REGISTERED NUMBER: SC094831) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
4. | EMPLOYEES AND DIRECTORS - continued |
Information regarding the highest paid director for the year ended 31 December 2022 is as follows: |
31/12/22 |
£ |
Emoluments etc | 103,965 |
5. | OPERATING (LOSS)/PROFIT |
The operating loss (2021 - operating profit) is stated after charging/(crediting): |
31/12/22 | 31/12/21 |
£ | £ |
Depreciation - owned assets | 1,563,138 | 1,404,090 |
Depreciation - assets on hire purchase contracts | 632,579 | 362,450 |
Profit on disposal of fixed assets | (78,581 | ) | (62,500 | ) |
Auditors' remuneration | 18,000 | 17,000 |
Foreign exchange differences | - | 2,959 |
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
31/12/22 | 31/12/21 |
£ | £ |
Bank interest | - | 522 |
Bank loan interest | 172,504 | 1,565 |
Hire purchase | 66,999 | 37,963 |
239,503 | 40,050 |
7. | TAXATION |
Analysis of the tax (credit)/charge |
The tax (credit)/charge on the loss for the year was as follows: |
31/12/22 | 31/12/21 |
£ | £ |
Current tax: |
UK corporation tax | (91,492 | ) | - |
Deferred tax | (870,946 | ) | 467,348 |
Tax on (loss)/profit | (962,438 | ) | 467,348 |
LEVENSEAT LTD. (REGISTERED NUMBER: SC094831) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
7. | TAXATION - continued |
RECONCILIATION OF TOTAL TAX (CREDIT)/CHARGE INCLUDED IN PROFIT AND LOSS |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
31/12/22 | 31/12/21 |
£ | £ |
(Loss)/profit before tax | (2,313,095 | ) | 2,114,021 |
(Loss)/profit multiplied by the standard rate of corporation tax in the UK of 19 % (2021 - 19 %) |
(439,488 |
) |
401,664 |
Effects of: |
Expenses not deductible for tax purposes | 3,579 | 3,393 |
Capital allowances in excess of depreciation | (1,163,771 | ) | - |
Utilisation of tax losses | (91,492 | ) | - |
Deferred tax | (870,946 | ) | 467,348 |
Other tax adjustments | (6,596 | ) | (8,750 | ) |
Capital allowances in advance of depreciation | - | (573,658 | ) |
Losses brought forward | 1,606,276 | 177,351 |
Total tax (credit)/charge | (962,438 | ) | 467,348 |
8. | INDIVIDUAL INCOME STATEMENT |
As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
LEVENSEAT LTD. (REGISTERED NUMBER: SC094831) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
9. | TANGIBLE FIXED ASSETS |
Group |
Freehold | Plant and |
property | machinery | Totals |
£ | £ | £ |
COST OR VALUATION |
At 1 January 2022 | 3,329,006 | 20,432,916 | 23,761,922 |
Additions | 3,803,364 | 6,926,670 | 10,730,034 |
Disposals | - | (382,280 | ) | (382,280 | ) |
At 31 December 2022 | 7,132,370 | 26,977,306 | 34,109,676 |
DEPRECIATION |
At 1 January 2022 | 347,679 | 11,844,338 | 12,192,017 |
Charge for year | 21,941 | 2,173,776 | 2,195,717 |
Eliminated on disposal | - | (265,179 | ) | (265,179 | ) |
At 31 December 2022 | 369,620 | 13,752,935 | 14,122,555 |
NET BOOK VALUE |
At 31 December 2022 | 6,762,750 | 13,224,371 | 19,987,121 |
At 31 December 2021 | 2,981,327 | 8,588,578 | 11,569,905 |
Cost or valuation at 31 December 2022 is represented by: |
Freehold | Plant and |
property | machinery | Totals |
£ | £ | £ |
Valuation in 2003 | 1,575,691 | - | 1,575,691 |
Valuation in 2015 | 1,279,485 | - | 1,279,485 |
Cost | 4,277,194 | 26,977,306 | 31,254,500 |
7,132,370 | 26,977,306 | 34,109,676 |
If freehold land and buildings had not been revalued they would have been included at the following historical cost: |
31/12/22 | 31/12/21 |
£ | £ |
Cost | 4,277,194 | 473,830 |
Aggregate depreciation | 369,620 | 261,670 |
Value of land in freehold land and buildings | 6,693,337 | 2,889,974 |
Freehold land and buildings were valued on an open market basis on by the directors . |
LEVENSEAT LTD. (REGISTERED NUMBER: SC094831) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
9. | TANGIBLE FIXED ASSETS - continued |
Group |
Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
Plant and |
machinery |
£ |
COST OR VALUATION |
At 1 January 2022 | 5,507,003 |
Additions | 1,111,979 |
Transfer to ownership | (571,030 | ) |
At 31 December 2022 | 6,047,952 |
DEPRECIATION |
At 1 January 2022 | 1,174,253 |
Charge for year | 632,579 |
Transfer to ownership | (444,925 | ) |
At 31 December 2022 | 1,361,907 |
NET BOOK VALUE |
At 31 December 2022 | 4,686,045 |
At 31 December 2021 | 4,332,750 |
Company |
Freehold | Plant and |
property | machinery | Totals |
£ | £ | £ |
COST OR VALUATION |
At 1 January 2022 |
Additions |
Disposals | ( |
) | ( |
) |
At 31 December 2022 |
DEPRECIATION |
At 1 January 2022 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) |
At 31 December 2022 |
NET BOOK VALUE |
At 31 December 2022 |
At 31 December 2021 |
LEVENSEAT LTD. (REGISTERED NUMBER: SC094831) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
9. | TANGIBLE FIXED ASSETS - continued |
Company |
Cost or valuation at 31 December 2022 is represented by: |
Freehold | Plant and |
property | machinery | Totals |
£ | £ | £ |
Valuation in 2003 | 1,575,691 | - | 1,575,691 |
Valuation in 2015 | 1,279,485 | - | 1,279,485 |
Cost | 4,277,194 | 26,977,307 | 31,254,501 |
7,132,370 | 26,977,307 | 34,109,677 |
If freehold land and buildings had not been revalued they would have been included at the following historical cost: |
31/12/22 | 31/12/21 |
£ | £ |
Cost | 3,973,830 | 473,830 |
Aggregate depreciation | 369,620 | 347,679 |
Value of land in freehold land and buildings | 6,459,386 | 2,981,326 |
Freehold land and buildings were valued on an open market value basis on 31 December 2022 by the directors . |
Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
Plant and |
machinery |
£ |
COST OR VALUATION |
At 1 January 2022 |
Additions |
Transfer to ownership | (571,030 | ) |
At 31 December 2022 |
DEPRECIATION |
At 1 January 2022 |
Charge for year |
Transfer to ownership | (444,925 | ) |
At 31 December 2022 |
NET BOOK VALUE |
At 31 December 2022 |
At 31 December 2021 |
LEVENSEAT LTD. (REGISTERED NUMBER: SC094831) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
10. | FIXED ASSET INVESTMENTS |
Group | Company |
31/12/22 | 31/12/21 | 31/12/22 | 31/12/21 |
£ | £ | £ | £ |
Shares in group undertakings | 1 | 1 |
Participating interests | 1,188,175 | 1,153,459 |
LREH loan notes | 1,490,200 | 1,877,198 |
2,678,376 | 3,030,658 |
Additional information is as follows: |
Group |
Interest |
Shares in | Interest | in other |
group | in | participating |
undertakings | associate | interests | Totals |
£ | £ | £ | £ |
COST |
At 1 January 2022 | 1 | 1,002,679 | 150,780 | 1,153,460 |
Share of profit/(loss) | - | 34,716 | - | 34,716 |
At 31 December 2022 | 1 | 1,037,395 | 150,780 | 1,188,176 |
NET BOOK VALUE |
At 31 December 2022 | 1 | 1,037,395 | 150,780 | 1,188,176 |
At 31 December 2021 | 1 | 1,002,679 | 150,780 | 1,153,460 |
Company |
Interest |
Shares in | Interest | in other |
group | in | participating |
undertakings | associate | interests | Totals |
£ | £ | £ | £ |
COST |
At 1 January 2022 |
and 31 December 2022 | 150,780 | 1,001,022 |
NET BOOK VALUE |
At 31 December 2022 | 150,780 | 1,001,022 |
At 31 December 2021 | 150,780 | 1,001,022 |
LEVENSEAT LTD. (REGISTERED NUMBER: SC094831) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
10. | FIXED ASSET INVESTMENTS - continued |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
SUBSIDIARIES |
Registered office: By Forth, Lanark ML11 8EP |
Nature of business: |
% |
Class of shares: | holding |
31/12/22 | 31/12/21 |
£ | £ |
Aggregate capital and reserves |
Registered office: Forth, Lanark ML11 8EP |
Nature of business: |
% |
Class of shares: | holding |
31/12/22 | 31/12/21 |
£ | £ |
Aggregate capital and reserves |
Registered office: Levenseat Waste Management Site, Wilsontown, Lanark ML11 8EP |
Nature of business: |
% |
Class of shares: | holding |
31/12/22 | 31/12/21 |
£ | £ |
Aggregate capital and reserves |
ASSOCIATED COMPANIES |
Registered office: John Lynch & Co, Torridon House, Torridon Lane, Rosyth KY11 |
Nature of business: |
% |
Class of shares: | holding |
31/12/22 | 31/12/21 |
£ | £ |
Aggregate capital and reserves | ( |
) | ( |
) |
Loss for the year | ( |
) | ( |
) |
LEVENSEAT LTD. (REGISTERED NUMBER: SC094831) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
10. | FIXED ASSET INVESTMENTS - continued |
Registered office: Seacliff Park, Seacliff, North Berwick EH39 5PP |
Nature of business: |
% |
Class of shares: | holding |
£ | £ |
Aggregate capital and reserves |
Profit for the year |
Registered office: Levenseat, By Forth, Lanark, Scotland, ML11 8EP |
Nature of business: |
% |
Class of shares: | holding |
31/12/22 | 31/12/21 |
£ | £ |
Aggregate capital and reserves | ( |
) |
Loss for the year | ( |
) | ( |
) |
Group |
LREH loan |
notes |
£ |
At 1 January 2022 | 1,877,198 |
New in year | 13,000 |
Other movement | (399,998 | ) |
At 31 December 2022 | 1,490,200 |
Company |
LREH loan |
notes |
£ |
At 1 January 2022 |
New in year |
Other movement | ( |
) |
At 31 December 2022 |
LEVENSEAT LTD. (REGISTERED NUMBER: SC094831) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
11. | INVESTMENT PROPERTY |
Group |
Total |
£ |
FAIR VALUE |
At 1 January 2022 | 553,267 |
Additions | 71,649 |
At 31 December 2022 | 624,916 |
NET BOOK VALUE |
At 31 December 2022 | 624,916 |
At 31 December 2021 | 553,267 |
Company |
Total |
£ |
FAIR VALUE |
At 1 January 2022 |
Additions |
At 31 December 2022 |
NET BOOK VALUE |
At 31 December 2022 |
At 31 December 2021 |
Investment property was valued on an open market basis on 31 December 2022 by the directors. |
12. | STOCKS |
Group | Company |
31/12/22 | 31/12/21 | 31/12/22 | 31/12/21 |
£ | £ | £ | £ |
Stocks | 227,191 | 169,385 |
LEVENSEAT LTD. (REGISTERED NUMBER: SC094831) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
13. | DEBTORS |
Group | Company |
31/12/22 | 31/12/21 | 31/12/22 | 31/12/21 |
£ | £ | £ | £ |
Amounts falling due within one year: |
Trade debtors | 3,578,024 | 4,304,044 |
Amounts owed by associates | 597,676 | - |
Other debtors | 103,638 | 534,669 |
Tax | 140,136 | 51,002 |
Prepayments | 2,306,783 | 1,026,734 |
Accrued income | 528,477 | 522,186 | 528,477 | 522,186 |
7,254,734 | 6,438,635 |
Amounts falling due after more than one | year: |
Loan Levenseat House Ltd | - | - | 253,033 | 253,033 |
Amounts due by associates | 595,000 | - | 595,000 | - |
595,000 | - |
Aggregate amounts | 7,849,734 | 6,438,635 |
14. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
31/12/22 | 31/12/21 | 31/12/22 | 31/12/21 |
£ | £ | £ | £ |
Bank loans and overdrafts (see note 16) | 3,006,068 | 848,371 |
Hire purchase contracts (see note 17) | 1,092,348 | 894,088 |
Trade creditors | 6,685,790 | 2,612,298 |
Landfill tax | 1,011,043 | 2,262,680 | 1,011,043 | 2,262,680 |
Social security and other taxes | 467,602 | 586,224 |
Other creditors | 41,639 | 9,232 |
Provision for reinstatement and aftercare of landfills |
100,000 |
100,000 |
100,000 |
100,000 |
Accrued expenses | 743,642 | 947,400 |
13,148,132 | 8,260,293 |
Included in accruals at the year end are outstanding pension contributions of £10,915 (2021 £26,808). |
LEVENSEAT LTD. (REGISTERED NUMBER: SC094831) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
15. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group | Company |
31/12/22 | 31/12/21 | 31/12/22 | 31/12/21 |
£ | £ | £ | £ |
Bank loans (see note 16) | 4,662,526 | 414,042 |
Hire purchase contracts (see note 17) | 2,035,752 | 2,253,190 |
6,698,278 | 2,667,232 |
16. | LOANS |
An analysis of the maturity of loans is given below: |
Group | Company |
31/12/22 | 31/12/21 | 31/12/22 | 31/12/21 |
£ | £ | £ | £ |
Amounts falling due within one year or on | demand: |
Bank overdrafts | 2,502,068 | 762,413 |
Bank loans | 504,000 | 85,958 |
3,006,068 | 848,371 |
Amounts falling due between two and five | years: |
Bank loans - 2-5 years | 1,952,090 | 414,042 |
Amounts falling due in more than five years: |
Repayable by instalments |
Bank loans more 5 yr by instal | 2,710,436 | - | 2,710,436 | - |
LEVENSEAT LTD. (REGISTERED NUMBER: SC094831) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
17. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Hire purchase contracts |
31/12/22 | 31/12/21 |
£ | £ |
Gross obligations repayable: |
Within one year | 1,169,781 | 952,890 |
Between one and five years | 2,183,369 | 2,418,164 |
3,353,150 | 3,371,054 |
Finance charges repayable: |
Within one year | 77,433 | 58,802 |
Between one and five years | 147,617 | 164,974 |
225,050 | 223,776 |
Net obligations repayable: |
Within one year | 1,092,348 | 894,088 |
Between one and five years | 2,035,752 | 2,253,190 |
3,128,100 | 3,147,278 |
Company |
Hire purchase contracts |
31/12/22 | 31/12/21 |
£ | £ |
Gross obligations repayable: |
Within one year |
Between one and five years |
Finance charges repayable: |
Within one year |
Between one and five years |
Net obligations repayable: |
Within one year |
Between one and five years |
LEVENSEAT LTD. (REGISTERED NUMBER: SC094831) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
18. | SECURED DEBTS |
The following secured debts are included within creditors: |
Group | Company |
31/12/22 | 31/12/21 | 31/12/22 | 31/12/21 |
£ | £ | £ | £ |
Bank loans | 5,166,526 | 500,000 |
Hire purchase contracts | 3,128,100 | 3,147,278 | 3,128,100 | 3,147,278 |
8,294,626 | 3,647,278 |
Levenseat Ltd has granted standard security charges to various entities who have been granted a lease to operate business activities on company owned property. A floating charge has been granted to Virgin Money (formerly Clydesdale Bank) for the provision of invoice financing facility and term loan. |
19. | PROVISIONS FOR LIABILITIES |
Group | Company |
31/12/22 | 31/12/21 | 31/12/22 | 31/12/21 |
£ | £ | £ | £ |
Deferred tax | 436,961 | 1,307,906 | 436,961 | 1,307,906 |
Other provisions |
Provision for reinstatement and aftercare of landfills |
3,517,324 |
3,347,077 |
3,517,324 |
3,347,077 |
Aggregate amounts | 3,954,285 | 4,654,983 | 3,954,285 | 4,654,983 |
Group |
Reinstatement |
Deferred | of |
tax | landfills |
£ | £ |
Balance at 1 January 2022 | 1,307,906 | 3,347,077 |
Provided during year | (870,945 | ) | 211,584 |
Credit to Income Statement during year | - | (41,337 | ) |
Balance at 31 December 2022 | 436,961 | 3,517,324 |
Company |
Deferred | Reinstatement |
tax | oflandfills |
£ | £ |
Balance at 1 January 2022 |
Provided during year | ( |
) |
Credit to Income Statement during year | ( |
) |
Balance at 31 December 2022 |
LEVENSEAT LTD. (REGISTERED NUMBER: SC094831) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
19. | PROVISIONS FOR LIABILITIES - continued |
Land reinstatement and environmental provisions |
As part of its normal activities, Levenseat Ltd undertakes to reinstate its landfill sites as well as maintain the sites and control leachate and methane emissions. Provision is made for these anticipated costs and they are incurred as each site is filled, and for a number of years after its closure. |
20. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 31/12/22 | 31/12/21 |
value: | £ | £ |
Ordinary | £1 | 900 | 900 |
21. | RESERVES |
Group |
Retained | Share | Revaluation |
earnings | premium | reserve | Totals |
£ | £ | £ | £ |
At 1 January 2022 | 5,811,709 | 99,102 | 2,855,176 | 8,765,987 |
Deficit for the year | (1,385,373 | ) | (1,385,373 | ) |
At 31 December 2022 | 4,426,336 | 99,102 | 2,855,176 | 7,380,614 |
Company |
Retained | Share | Revaluation |
earnings | premium | reserve | Totals |
£ | £ | £ | £ |
At 1 January 2022 | 8,765,987 |
Deficit for the year | ( |
) | ( |
) |
At 31 December 2022 | 7,380,615 |
22. | RELATED PARTY DISCLOSURES |
Entities over which the entity has control, joint control or significant influence |
31/12/22 | 31/12/21 |
£ | £ |
Sales | 2,178 | 69,577 |
Amount due from related party | 314,681 | 414,246 |
Amount due to related party | 4,973 | 4,973 |
LEVENSEAT LTD. (REGISTERED NUMBER: SC094831) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
22. | RELATED PARTY DISCLOSURES - continued |
Key management personnel of the entity or its parent (in the aggregate) |
31/12/22 | 31/12/21 |
£ | £ |
Sales | 585 | 587 |
Purchases | 308,471 | 391,841 |
Amount due from related party | 30,236 | 30,236 |
Amount due to related party | 65,714 | 43,469 |
Entities with common directors |
31/12/22 | 31/12/21 |
£ | £ |
Sales | 7,394,222 | 5,891,525 |
Purchases | 8,969,796 | 7,817,783 |
Amount due from related party | 1,468,493 | 1,217,369 |
Amount due to related party | 615,377 | 728,944 |
23. | ULTIMATE CONTROLLING PARTY |
In the opinion of the directors, there is |