LJ (Copiers) Limited 06541702 false 2022-09-01 2023-08-31 2023-08-31 2023-08-31 The principal activity of the company is the sale and service of digital copiers/printers and other multifunctional and digital reprographic equipment. Digita Accounts Production Advanced 6.30.9574.0 true true true false false false false false 06541702 2022-09-01 2023-08-31 06541702 2023-08-31 06541702 bus:Director3 1 2023-08-31 06541702 bus:Director4 1 2023-08-31 06541702 bus:OrdinaryShareClass1 bus:Consolidated 2023-08-31 06541702 bus:OrdinaryShareClass2 bus:Consolidated 2023-08-31 06541702 bus:OrdinaryShareClass3 bus:Consolidated 2023-08-31 06541702 bus:Consolidated 2023-08-31 06541702 core:AcceleratedTaxDepreciationDeferredTax bus:Consolidated 2023-08-31 06541702 core:RetainedEarningsAccumulatedLosses 2023-08-31 06541702 core:RetainedEarningsAccumulatedLosses bus:Consolidated 2023-08-31 06541702 core:ShareCapital 2023-08-31 06541702 core:ShareCapital bus:Consolidated 2023-08-31 06541702 core:SharePremium 2023-08-31 06541702 core:SharePremium bus:Consolidated 2023-08-31 06541702 core:TotalEquityAttributableToOwnersParentBeforeNon-controllingInterests bus:Consolidated 2023-08-31 06541702 core:CurrentFinancialInstruments 2023-08-31 06541702 core:CurrentFinancialInstruments bus:Consolidated 2023-08-31 06541702 core:CurrentFinancialInstruments core:WithinOneYear 2023-08-31 06541702 core:CurrentFinancialInstruments core:WithinOneYear bus:Consolidated 2023-08-31 06541702 core:Goodwill bus:Consolidated 2023-08-31 06541702 core:CostValuation 2023-08-31 06541702 core:BetweenTwoFiveYears bus:Consolidated 2023-08-31 06541702 core:WithinOneYear bus:Consolidated 2023-08-31 06541702 core:FurnitureFittingsToolsEquipment 2023-08-31 06541702 core:FurnitureFittingsToolsEquipment bus:Consolidated 2023-08-31 06541702 core:LandBuildings 2023-08-31 06541702 core:LandBuildings bus:Consolidated 2023-08-31 06541702 core:MotorVehicles bus:Consolidated 2023-08-31 06541702 core:DeferredTaxation bus:Consolidated 2023-08-31 06541702 bus:FRS102 bus:Consolidated 2022-09-01 2023-08-31 06541702 bus:Audited bus:Consolidated 2022-09-01 2023-08-31 06541702 bus:FullAccounts bus:Consolidated 2022-09-01 2023-08-31 06541702 bus:RegisteredOffice bus:Consolidated 2022-09-01 2023-08-31 06541702 bus:CompanySecretaryDirector1 2022-09-01 2023-08-31 06541702 bus:CompanySecretaryDirector1 bus:Consolidated 2022-09-01 2023-08-31 06541702 bus:Director2 bus:Consolidated 2022-09-01 2023-08-31 06541702 bus:Director3 2022-09-01 2023-08-31 06541702 bus:Director3 1 2022-09-01 2023-08-31 06541702 bus:Director4 2022-09-01 2023-08-31 06541702 bus:Director4 1 2022-09-01 2023-08-31 06541702 bus:OrdinaryShareClass1 bus:Consolidated 2022-09-01 2023-08-31 06541702 bus:OrdinaryShareClass2 bus:Consolidated 2022-09-01 2023-08-31 06541702 bus:OrdinaryShareClass3 bus:Consolidated 2022-09-01 2023-08-31 06541702 bus:Consolidated 2022-09-01 2023-08-31 06541702 bus:Consolidated 5 2022-09-01 2023-08-31 06541702 bus:Consolidated 1 2022-09-01 2023-08-31 06541702 bus:PrivateLimitedCompanyLtd bus:Consolidated 2022-09-01 2023-08-31 06541702 bus:ConsolidatedGroupCompanyAccounts 2022-09-01 2023-08-31 06541702 countries:UnitedKingdom bus:Consolidated 2022-09-01 2023-08-31 06541702 core:Goodwill bus:Consolidated 2022-09-01 2023-08-31 06541702 core:PlantEquipmentOtherAssetsUnderOperatingLeases bus:Consolidated 2022-09-01 2023-08-31 06541702 core:ComputerEquipment bus:Consolidated 2022-09-01 2023-08-31 06541702 core:FurnitureFittings bus:Consolidated 2022-09-01 2023-08-31 06541702 core:FurnitureFittingsToolsEquipment 2022-09-01 2023-08-31 06541702 core:FurnitureFittingsToolsEquipment bus:Consolidated 2022-09-01 2023-08-31 06541702 core:LandBuildings 2022-09-01 2023-08-31 06541702 core:LandBuildings bus:Consolidated 2022-09-01 2023-08-31 06541702 core:MotorVehicles bus:Consolidated 2022-09-01 2023-08-31 06541702 core:DeferredTaxation bus:Consolidated 2022-09-01 2023-08-31 06541702 core:Subsidiary1 2022-09-01 2023-08-31 06541702 core:Subsidiary1 countries:AllCountries 2022-09-01 2023-08-31 06541702 core:Subsidiary2 2022-09-01 2023-08-31 06541702 core:Subsidiary2 countries:AllCountries 2022-09-01 2023-08-31 06541702 core:UKTax bus:Consolidated 2022-09-01 2023-08-31 06541702 countries:EnglandWales bus:Consolidated 2022-09-01 2023-08-31 06541702 2022-08-31 06541702 bus:Director3 1 2022-08-31 06541702 bus:Director4 1 2022-08-31 06541702 bus:Consolidated 2022-08-31 06541702 core:Goodwill bus:Consolidated 2022-08-31 06541702 core:FurnitureFittingsToolsEquipment 2022-08-31 06541702 core:FurnitureFittingsToolsEquipment bus:Consolidated 2022-08-31 06541702 core:LandBuildings 2022-08-31 06541702 core:LandBuildings bus:Consolidated 2022-08-31 06541702 core:MotorVehicles bus:Consolidated 2022-08-31 06541702 core:DeferredTaxation bus:Consolidated 2022-08-31 06541702 2022-08-31 06541702 bus:Director3 1 2022-08-31 06541702 bus:Director4 1 2022-08-31 06541702 bus:OrdinaryShareClass1 bus:Consolidated 2022-08-31 06541702 bus:OrdinaryShareClass2 bus:Consolidated 2022-08-31 06541702 bus:OrdinaryShareClass3 bus:Consolidated 2022-08-31 06541702 bus:Consolidated 2022-08-31 06541702 core:AcceleratedTaxDepreciationDeferredTax bus:Consolidated 2022-08-31 06541702 core:RetainedEarningsAccumulatedLosses 2022-08-31 06541702 core:RetainedEarningsAccumulatedLosses bus:Consolidated 2022-08-31 06541702 core:ShareCapital 2022-08-31 06541702 core:ShareCapital bus:Consolidated 2022-08-31 06541702 core:SharePremium 2022-08-31 06541702 core:SharePremium bus:Consolidated 2022-08-31 06541702 core:TotalEquityAttributableToOwnersParentBeforeNon-controllingInterests bus:Consolidated 2022-08-31 06541702 core:CurrentFinancialInstruments 2022-08-31 06541702 core:CurrentFinancialInstruments bus:Consolidated 2022-08-31 06541702 core:CurrentFinancialInstruments core:WithinOneYear 2022-08-31 06541702 core:CurrentFinancialInstruments core:WithinOneYear bus:Consolidated 2022-08-31 06541702 core:Goodwill bus:Consolidated 2022-08-31 06541702 core:CostValuation 2022-08-31 06541702 core:BetweenTwoFiveYears bus:Consolidated 2022-08-31 06541702 core:WithinOneYear bus:Consolidated 2022-08-31 06541702 core:FurnitureFittingsToolsEquipment 2022-08-31 06541702 core:FurnitureFittingsToolsEquipment bus:Consolidated 2022-08-31 06541702 core:LandBuildings 2022-08-31 06541702 core:LandBuildings bus:Consolidated 2022-08-31 06541702 core:MotorVehicles bus:Consolidated 2022-08-31 06541702 bus:Director3 1 2021-09-01 2022-08-31 06541702 bus:Director4 1 2021-09-01 2022-08-31 06541702 bus:Consolidated 2021-09-01 2022-08-31 06541702 countries:UnitedKingdom bus:Consolidated 2021-09-01 2022-08-31 06541702 core:PlantEquipmentOtherAssetsUnderOperatingLeases bus:Consolidated 2021-09-01 2022-08-31 06541702 core:Subsidiary1 2021-09-01 2022-08-31 06541702 core:Subsidiary2 2021-09-01 2022-08-31 06541702 core:UKTax bus:Consolidated 2021-09-01 2022-08-31 06541702 bus:Director3 1 2021-08-31 06541702 bus:Director4 1 2021-08-31 06541702 bus:Consolidated 2021-08-31 iso4217:GBP xbrli:pure xbrli:shares

LJ (Copiers) Limited

Annual Report and Consolidated Financial Statements
Year Ended 31 August 2023

Registration number: 06541702

 

LJ (Copiers) Limited

Contents

Strategic Report

1 to 2

Directors' Report

3

Statement of Directors' Responsibilities

4

Independent Auditor's Report

5 to 8

Consolidated Statement of Income and Retained Earnings

9

Consolidated Balance Sheet

10

Balance Sheet

11

Consolidated Statement of Cash Flows

12

Notes to the Financial Statements

13 to 26

 

LJ (Copiers) Limited

Strategic Report

Year Ended 31 August 2023

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

Principal activity

The principal activity of the group is the sale and service of digital copiers/printers and other multifunctional and digital reprographic equipment.

Fair review of the business

The group has continued to perform well during difficult trading conditions. Following on from Covid 19 restrictions, many companies retained their staff working remotely rather than working in the office. This resulted in office printers being used less, which in turn had an adverse effect on usual service revenue increases. Due to the preceding, group turnover only achieved a 0.33% increase this period compared with a 20.24% increase in the previous financial period.

With no borrowings, the liquidity of the company remains very strong with a year end bank balance of £7,961,651, being a 7.54% increase over the previous year. Coupled with an excellent management team and robust financial controls, the group therefore continues to remain secure and be in an enviable position to enhance further trading opportunities.

The directors are therefore of the opinion that the group continued to operate exceptionally well under difficult trading conditions.

The group continues to be committed to the International Quality Standard ISO9001:2015 with a dual certification encompassing both sales and service, with particular attention to customer satisfaction.

The group's key financial and other performance indicators during the year were as follows:

 

Unit

2023

2022

Sales

£'000

17,899

17,839

Gross profit

%

14

14

Profit before tax

£'000

1,369

1,240

Operating profit margin

%

6

7

The group also uses non-financial KPIs such as customer satisfaction and return custom to gauge its performance.

 

LJ (Copiers) Limited

Strategic Report

Year Ended 31 August 2023

Going concern

Whilst the directors remain concerned about the change in dynamics of the post covid working environment, during the forthcoming financial year, they are of the opinion that the group is in a particularly strong position. It does not anticipate making any redundancies and has substantial reserves.

Moreover, the group’s sales cover England, Wales and Scotland, therefore it has a strong regional spread of business; as well as a wide geographical spread, our customer base ranges from home office users through to multinational companies in a diverse range of industries therefore if one area or industry is affected adversely, we are not reliant on a particular business type. Nonetheless, whilst it will be a challenging year because our overheads are tightly controlled, a loss over the forthcoming year is not anticipated.

Accordingly, the directors have not identified any material uncertainties related to the going concern status of the group and continue to adopt the going concern basis in preparing the annual report and financial statements.

Principal risks and uncertainties

The principal risks and uncertainties facing the company are:

• Effects of ongoing Global/National Pandemic.

• Keeping pace with the practical advances in technology that benefit customers which may change the range of hardware and services the company provides.

• The financial stability of key suppliers.

• The availability of credit facilities for customers to fund replacement hardware and software.

Approved by the Board on 7 November 2023 and signed on its behalf by:

.........................................
Mr L T Whittington
Company secretary and director

   
     
 

LJ (Copiers) Limited

Directors' Report

Year Ended 31 August 2023

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

Directors of the group

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

Mr L T Whittington - Company secretary and director

Mr J Eldridge

Financial risk management objectives and policies

The group considers the major financial risks of the business to be linked to liquidity, cash flow and cyclical changes in the economy. The group mitigates these risks by carefully managing cash, stock and debt levels through forecasting and budgeting. The experience of management enables the group to respond to changes in the economy and to adapt the group's strategy accordingly.

Disclosure of information to the auditor

Each director has taken 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.

Approved by the Board on 7 November 2023 and signed on its behalf by:

.........................................
Mr L T Whittington
Company secretary and director

   
     
 

LJ (Copiers) Limited

Statement of Directors' Responsibilities

The directors acknowledge their responsibilities for preparing the Annual 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 the 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.

 

LJ (Copiers) Limited

Independent Auditor's Report to the Members of LJ (Copiers) Limited

Opinion

We have audited the financial statements of LJ (Copiers) Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 August 2023, which comprise the Consolidated Statement of Income and Retained Earnings, Consolidated Balance Sheet, Balance Sheet, 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 August 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 director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group and parent company'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.

 

LJ (Copiers) Limited

Independent Auditor's Report to the Members of LJ (Copiers) Limited

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.

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 4], 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.

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:

 

LJ (Copiers) Limited

Independent Auditor's Report to the Members of LJ (Copiers) Limited

As part of our audit planning, through discussions with management, we obtained an understanding of the legal and regulatory framework that is applicable to the group and the sector in which it operates to identify the key laws and regulations affecting the group.

We discussed with management how the compliance with these laws and regulations is monitored and we discussed the policies and procedures in place. We also identified the individuals who have responsiblity for ensuring that the group complies with laws and regulations and deals with reporting any issues if they arise. As part of our planning procedures, we assessed the risk of any non-compliance with laws and regulations on the group's ability to continue trading and the risk of material misstatement to the accounts.

Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Our procedures involved the following:

- Enquiries of management and those charged with governance regarding their knowledge of any non-compliance with laws and regulations that could affect the financial statements. As part of our enquiries we discussed with management whether there have been any known instances, allegations or suspicions of fraud, of which there were none.
- Reviewed legal and professional costs to identify any possible non-compliance or legal costs in respect of non-compliance.

We also evaluated the risk of fraud through management override including that arising from management's incentives. The key risks we identified were manipulation of revenue and fraudulent financial reporting.

In response to the identified risk, as part of our audit work we:
- Used data analytics to test journal entries throughout the year and year end adjustments, for appopriateness;
- Reviewed estimates and judgements made in the accounts for any indication of bias and challenged assumptions used by management in making the estimates; and
- Used data analytics to identify common bank details for suppliers and staff

No issues were identified during this work.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements. This risk increases the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements as we are less likely to become aware of instances of non-compliance. 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, collusion, omission or misrepresentation.

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.

 

LJ (Copiers) Limited

Independent Auditor's Report to the Members of LJ (Copiers) Limited

Use of our report

This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in 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.

......................................
James Barrett (Senior Statutory Auditor)
PKF Francis Clark, Statutory Auditor

Unit 18, 23 Melville Building East
Royal William Yard
Plymouth
Devon
PL1 3GW

17 November 2023

 

LJ (Copiers) Limited

Consolidated Statement of Income and Retained Earnings

Year Ended 31 August 2023

Note

2023
£

2022
£

Turnover

3

17,898,902

17,839,379

Cost of sales

 

(15,353,088)

(15,298,036)

Gross profit

 

2,545,814

2,541,343

Administrative expenses

 

(1,390,756)

(1,308,622)

Other operating income

4

-

7,477

Operating profit

5

1,155,058

1,240,198

Other interest receivable and similar income

9

213,668

4,859

Profit before tax

 

1,368,726

1,245,057

Taxation

10

(352,359)

(283,839)

Profit for the financial year

 

1,016,367

961,218

Profit/(loss) attributable to:

 

Owners of the company

 

1,016,367

961,218

Retained earnings brought forward

 

9,390,375

8,690,361

Dividends paid

 

(609,103)

(261,204)

Retained earnings carried forward

 

9,797,639

9,390,375

 

LJ (Copiers) Limited

Consolidated Balance Sheet

31 August 2023

Note

2023
 £

2022
 £

Fixed assets

 

Intangible assets

11

1,201,892

1,442,270

Tangible assets

12

736,684

755,222

 

1,938,576

2,197,492

Current assets

 

Stocks

14

379,220

507,524

Debtors

15

1,933,762

1,841,453

Cash at bank and in hand

 

7,961,651

7,403,406

 

10,274,633

9,752,383

Creditors: Amounts falling due within one year

16

(1,416,544)

(1,559,661)

Net current assets

 

8,858,089

8,192,722

Total assets less current liabilities

 

10,796,665

10,390,214

Provisions for liabilities

18

(30,026)

(30,839)

Net assets

 

10,766,639

10,359,375

Capital and reserves

 

Called up share capital

21

162

162

Share premium reserve

968,838

968,838

Profit and loss account

9,797,639

9,390,375

Equity attributable to owners of the company

 

10,766,639

10,359,375

Total equity

 

10,766,639

10,359,375

Approved and authorised by the Board on 7 November 2023 and signed on its behalf by:
 

.........................................
Mr L T Whittington
Company secretary and director

   
     

Company Registration Number: 06541702

 

LJ (Copiers) Limited

Balance Sheet

31 August 2023

Note

2023
£

2022
£

Fixed assets

 

Tangible assets

12

687,976

707,722

Investments

13

10,059,009

10,059,009

 

10,746,985

10,766,731

Current assets

 

Debtors

15

2,084

8,611

Cash at bank and in hand

 

324,845

292,113

 

326,929

300,724

Creditors: Amounts falling due within one year

16

(1,464,260)

(855,010)

Net current liabilities

 

(1,137,331)

(554,286)

Total assets less current liabilities

 

9,609,654

10,212,445

Provisions for liabilities

18

(30,026)

(30,839)

Net assets

 

9,579,628

10,181,606

Capital and reserves

 

Called up share capital

21

162

162

Share premium reserve

968,838

968,838

Profit and loss account

8,610,628

9,212,606

Shareholders' funds

 

9,579,628

10,181,606

The company made a profit after tax for the financial year of £7,125 (2022 - profit of £6,334).

Approved and authorised by the Board on 7 November 2023 and signed on its behalf by:
 

.........................................
Mr L T Whittington
Company secretary and director

   
     

Company Registration Number: 06541702

 

LJ (Copiers) Limited

Consolidated Statement of Cash Flows

Year Ended 31 August 2023

Note

2023
 £

2022
 £

Cash flows from operating activities

Profit for the year

 

1,016,367

961,218

Adjustments to cash flows from non-cash items

 

Depreciation and amortisation

5

274,878

273,431

Profit on disposal of tangible assets

(502)

(6,004)

Finance income

9

(213,668)

(4,859)

Income tax expense

10

352,359

283,839

 

1,429,434

1,507,625

Working capital adjustments

 

Decrease/(increase) in stocks

14

128,304

(163,270)

Increase in trade debtors

15

(92,310)

(118,724)

(Decrease)/increase in trade creditors

16

(70,862)

120,522

Cash generated from operations

 

1,394,566

1,346,153

Income taxes paid

10

(425,426)

(156,159)

Net cash flow from operating activities

 

969,140

1,189,994

Cash flows from investing activities

 

Interest received

213,668

4,859

Acquisitions of tangible assets

(18,469)

(34,196)

Proceeds from sale of tangible assets

 

3,009

9,600

Net cash flows from investing activities

 

198,208

(19,737)

Cash flows from financing activities

 

Dividends paid

(609,103)

(261,204)

Net increase in cash and cash equivalents

 

558,245

909,053

Cash and cash equivalents at 1 September

 

7,403,406

6,494,353

Cash and cash equivalents at 31 August

7,961,651

7,403,406

 

LJ (Copiers) Limited

Notes to the Financial Statements

Year Ended 31 August 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:
Clarity House
Collett Way
Newton Abbot
Devon
TQ12 4PH

2

Accounting policies

Statement of compliance

These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

Basis of preparation

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

Reduced disclosure exemptions for parent company

FRS 102 grants a qualifying entity exemptions from the full requirements of FRS 102. The following exemptions have been taken in these financial statements as the company is deemed to be a qualifying entity.

The company has taken advantage of the exemption, under FRS 102 paragraph 1.12(b), from preparing a Statement of Cash Flows on the basis that it is a qualifying entity and its cash flows are included in the consolidated financial statements of the group. The company is also taking exemption from disclosure of key management personnel compensation and exemption from disclosure of related party transactions entered into between the company and other members of the LJ (Copiers) Limited group.

Basis of consolidation

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

As a consolidated profit and loss account is published, a separate profit and loss account for the parent company is omitted from the group financial statements by virtue of section 408 of the Companies Act 2006.

 

LJ (Copiers) Limited

Notes to the Financial Statements

Year Ended 31 August 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.

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.

Key sources of estimation uncertainty

In the application of the group’s accounting policies, which are described in this note, management is required to make judgements, estimates and assumptions about the carrying value of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historically known factors and experience. Therefore, management do not perceive there to be any critical areas of judgement or key sources of estimation uncertainty in the formulation of the financial statements.

Any estimates and underlying assumptions used by management such as depreciation rates and the useful economic lives of assets are reviewed on an ongoing basis. Any revision deemed to be required to any accounting estimates would be 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.

No such changes or amendments are deemed necessary in either this or the prior period.

Revenue recognition

Turnover represents the fair value of consideration receivable, excluding Value Added Tax, in the ordinary course of business for the sale of goods and services provided.

Revenue on sale of goods is recognised when delivered/installed.

Service and call-out revenue is recognised when the maintenance and/or repair work is completed.

Government grants

Government revenue grants are accounted for under the accrual model as permitted by FRS102. The grant is recognised in line with the expense to which it relates.

Tax

Tax is recognised in profit or loss, except that a change 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.

 

LJ (Copiers) Limited

Notes to the Financial Statements

Year Ended 31 August 2023

Deferred tax is recognised on all timing differences at the balance sheet date unless indicated below. Timing differences are differences between taxable profits and the results as stated in the consolidated profit and loss account and other comprehensive income. 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.

Goodwill

Positive goodwill is capitalised, classified as an asset on the balance sheet and amortised on a straight line basis over its expected useful economic life. It is reviewed for impairment at the end of the first full financial year following the acquisition and in other periods if events or changes in circumstances indicate that the carrying value may not be recoverable.

Amortisation

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

Asset class

Amortisation method and rate

Goodwill

5% straight line

Goodwill is amortised over a period in excess of 10 years. This is justified by the directors on the basis that the goodwill represents the premium paid for access to the market place in which the subsidiary companies operate which will be in existence for longer than 10 years.

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

Depreciation

Depreciation is charged so as to write off the cost of an asset, less its estimated residual value, over its estimated useful life as follows:

Asset class

Depreciation method and rate

Freehold land and buildings

2% straight line

Fixtures and fittings

15% reducing balance

Motor vehicles

30% reducing balance

Computer equipment

33% straight line

Investments

Fixed asset investments are measured at cost less impairment.

Stocks

Stock is valued at the lower of cost and net realisable value, after due regard for obsolete and slow moving items.

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

 

LJ (Copiers) Limited

Notes to the Financial Statements

Year Ended 31 August 2023

Pensions

Retirement benefits for the directors are provided by money purchase schemes which are funded by contributions from the company.

Contributions are charged against profits of the year in which they are paid.

Financial instruments

Classification
The company holds the following financial instruments:

• Short-term trade and other debtors and creditors; and
• Cash and bank balances.

All financial instruments are classified as basic.

 Recognition and measurement
The company has chosen to apply the recognition and measurement principles in FRS 102.

Financial instruments are recognised when the company becomes party to the contractual provisions of the instrument and derecognised when in the case of assets, the contractual rights to cash flows from the assets expire or substantially all the risks and rewards of ownership are transferred to another party, or in the case of liabilities, when the company’s obligations are discharged, expire or are cancelled.

Such instruments are initially measured at transaction price, including transaction costs, and are subsequently carried at the undiscounted amount of the cash or other consideration expected to be paid or received, after taking account of impairment adjustments.

 

3

Turnover

The analysis of the group's Turnover for the year from continuing operations is as follows:

2023
£

2022
£

Sale of goods

17,898,902

17,839,379

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

2023
£

2022
£

UK

17,898,902

17,839,379

 

LJ (Copiers) Limited

Notes to the Financial Statements

Year Ended 31 August 2023

4

Other operating income

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

2023
£

2022
£

Government grants

-

7,477

5

Operating profit

Arrived at after charging/(crediting)

2023
£

2022
£

Depreciation expense

34,500

33,053

Amortisation expense

240,378

240,378

Operating lease expense - plant and machinery

39,100

33,338

Profit on disposal of property, plant and equipment

(502)

(6,004)

6

Staff costs

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

2023
£

2022
£

Wages and salaries

714,935

673,712

Social security costs

83,674

75,527

Pension costs, defined contribution scheme

35,581

36,703

834,190

785,942

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

2023
 No.

2022
 No.

Management

2

2

Administration

9

10

Sales and distribution

9

9

20

21

 

LJ (Copiers) Limited

Notes to the Financial Statements

Year Ended 31 August 2023

7

Directors' remuneration

The directors' remuneration for the year was as follows:

2023
£

2022
£

Remuneration

-

2,500

Contributions paid to money purchase schemes

5,333

8,166

5,333

10,666

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

1

8

Auditor's remuneration

2023
£

2022
£

Audit of these financial statements

11,000

10,000


 

9

Interest receivable and similar income

2023
£

2022
£

Interest income on bank deposits

213,668

4,859

 

LJ (Copiers) Limited

Notes to the Financial Statements

Year Ended 31 August 2023

10

Taxation

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

2023
 £

2022
 £

Current taxation

UK corporation tax

351,593

285,001

UK corporation tax adjustment to prior periods

1,579

-

353,172

285,001

Deferred taxation

Arising from origination and reversal of timing differences

(813)

(1,162)

Tax expense in the income statement

352,359

283,839

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 21.5% (2022 - 19%).

The differences are reconciled below:

2023
£

2022
£

Profit before tax

1,368,726

1,245,057

Corporation tax at standard rate

294,276

236,561

Effect of expense not deductible in determining taxable profit (tax loss)

57,593

49,250

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

1,579

-

Tax decrease from effect of capital allowances and depreciation

(894)

(1,693)

Tax decrease from other short-term timing differences

(195)

(279)

Total tax charge

352,359

283,839

Deferred tax

Group and company

Deferred tax assets and liabilities

2023

Asset
£

Liability
£

Difference between accumulated depreciation and amortisation and capital allowances

-

30,026

-

30,026

 

LJ (Copiers) Limited

Notes to the Financial Statements

Year Ended 31 August 2023

2022

Asset
£

Liability
£

Difference between accumulated depreciation and amortisation and capital allowances

-

30,838

-

30,838

11

Intangible assets

Group

Goodwill
 £

Cost

At 1 September 2022

4,867,561

At 31 August 2023

4,867,561

Amortisation

At 1 September 2022

3,425,291

Amortisation charge

240,378

At 31 August 2023

3,665,669

Carrying amount

At 31 August 2023

1,201,892

At 31 August 2022

1,442,270

 

LJ (Copiers) Limited

Notes to the Financial Statements

Year Ended 31 August 2023

12

Tangible assets

Group

Freehold land and buildings
£

Fixtures and fittings
 £

Motor vehicles
 £

Total
£

Cost

At 1 September 2022

824,605

165,916

46,635

1,037,156

Additions

-

11,440

7,029

18,469

Disposals

-

-

(6,395)

(6,395)

At 31 August 2023

824,605

177,356

47,269

1,049,230

Depreciation

At 1 September 2022

138,578

125,419

17,937

281,934

Charge for the year

16,492

9,712

8,296

34,500

Eliminated on disposal

-

-

(3,888)

(3,888)

At 31 August 2023

155,070

135,131

22,345

312,546

Carrying amount

At 31 August 2023

669,535

42,225

24,924

736,684

At 31 August 2022

686,027

40,497

28,698

755,222

Company

Freehold land and buildings
£

Fixtures and fittings
 £

Total
£

Cost

At 1 September 2022

824,605

87,550

912,155

At 31 August 2023

824,605

87,550

912,155

Depreciation

At 1 September 2022

138,578

65,855

204,433

Charge for the year

16,492

3,254

19,746

At 31 August 2023

155,070

69,109

224,179

Carrying amount

At 31 August 2023

669,535

18,441

687,976

At 31 August 2022

686,027

21,695

707,722

 

LJ (Copiers) Limited

Notes to the Financial Statements

Year Ended 31 August 2023

13

Investments

Company

2023
£

2022
£

Investments in subsidiaries

10,059,009

10,059,009

Subsidiaries

£

Cost

At 1 September 2022

10,059,009

At 31 August 2023

10,059,009

Carrying amount

At 31 August 2023

10,059,009

At 31 August 2022

10,059,009

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

Country of incorporation

Holding

Proportion of voting rights and shares held

     

2023

2022

Subsidiary undertakings

Clarity Copiers (Holdings) Limited
Clarity House
Collett Way
Newton Abbot
Devon
TQ12 4PH

England and Wales

Ordinary

100%

100%

Clarity Copiers Limited
Clarity House
Collett Way
Newton Abbot
Devon
TQ12 4PH

England and Wales

Ordinary

100%

100%

 

LJ (Copiers) Limited

Notes to the Financial Statements

Year Ended 31 August 2023

Subsidiary undertakings

Clarity Copiers (Holdings) Limited

The principal activity of Clarity Copiers (Holdings) Limited is that of being a dormant company.

Clarity Copiers Limited

The principal activity of Clarity Copiers Limited is the sale and service of digital copiers/printers, photocopiers and other multifunctional and digital reprographic equipment.

14

Stocks

 

Group

Company

2023
 £

2022
 £

2023
 £

2022
 £

Stocks

379,220

507,524

-

-

15

Debtors

 

Group

Company

2023
 £

2022
 £

2023
 £

2022
 £

Trade debtors

1,880,176

1,825,066

-

-

Other debtors

9,816

9,073

-

6,668

Prepayments

9,110

7,314

2,084

1,943

Accrued income

34,660

-

-

-

1,933,762

1,841,453

2,084

8,611

No provision is made for bad debts in trade debtors.

 

LJ (Copiers) Limited

Notes to the Financial Statements

Year Ended 31 August 2023

16

Creditors

   

Group

Company

Note

2023
 £

2022
 £

2023
 £

2022
 £

Due within one year

 

Trade creditors

 

271,747

400,799

-

-

Amounts due to group undertakings

22

-

-

1,335,348

727,657

Corporation tax

 

136,709

208,963

6,418

6,185

Social security and other taxes

 

115,725

90,944

1,200

1,199

Commissions payable

 

722,290

689,020

-

-

Other creditors

 

81,311

69,426

70,718

69,393

Accrued expenses

 

88,762

100,509

50,576

50,576

 

1,416,544

1,559,661

1,464,260

855,010

17

Obligations under leases and hire purchase contracts

Group

Operating leases

The total of future minimum lease payments is as follows:

2023
£

2022
£

Not later than one year

26,180

28,929

Later than one year and not later than five years

31,023

45,890

57,203

74,819

The amount of non-cancellable operating lease payments recognised as an expense during the year was £34,540 (2022 - £33,338).

18

Deferred tax and other provisions

Group and company

Deferred tax
£

At 1 September 2022

30,839

Decrease in existing provision

(813)

At 31 August 2023

30,026

 

LJ (Copiers) Limited

Notes to the Financial Statements

Year Ended 31 August 2023

19

Analysis of changes in net debt

At 1 Sep 2022

Cash flow

Other non-cash changes

At 31 Aug 2023

£

£

£

£

Cash at bank and in hand

7,403,407

558,244

-

7,961,651

Cash and cash equivalents

7,403,407

558,244

-

7,961,651

Net debt

7,403,407

558,244

-

7,961,651

At 1 Sep 2021

Cash flow

Other non-cash changes

At 31 Aug 2022

£

£

£

£

Cash at bank and in hand

6,494,353

909,054

-

7,403,407

Cash and cash equivalents

6,494,353

909,054

-

7,403,407

Net debt

6,494,353

909,054

-

7,403,407

20

Pension and other schemes

Defined contribution pension scheme

The group operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the group to the scheme and amounted to £35,581 (2022 - £36,703).

21

Share capital

Allotted, called up and fully paid shares

 

2023

2022

 

No.

£

No.

£

Ordinary shares A of £0.01 each

3,249

32

3,249

32

Ordinary shares B of £0.01 each

812

8

812

8

Ordinary shares C of £0.01 each

12,179

122

12,179

122

 

16,240

162

16,240

162

Rights, preferences and restrictions

Ordinary shares have the following rights, preferences and restrictions:
Each share carries the right to one vote.

 

LJ (Copiers) Limited

Notes to the Financial Statements

Year Ended 31 August 2023

22

Related party transactions

The company has taken advantage of the exemption in FRS 102 "Related Party Disclosures" from disclosing transactions with other wholly owned members of the group.

Group

The directors do not consider any employees other than the statutory directors, whose remuneration is disclosed in note 6, to be key management personnel within the definition of FRS102.

Company

Transactions with directors

2023

At 1 September 2022
£

Advances to director
£

Repayments by director
£

At 31 August 2023
£

Director 1

Directors current account

6,668

484,242

(493,101)

(2,191)

         
       

Director 2

Directors' current account

(69,393)

116,867

(116,002)

(68,528)

         
       

 

2022

At 1 September 2021
£

Advances to director
£

Repayments by director
£

At 31 August 2022
£

Director 1

Directors current account

(11,163)

147,823

(129,992)

6,668

         
       

Director 2

Directors' current account

(45,644)

107,462

(131,211)

(69,393)

         
       

 

23

Parent and ultimate parent undertaking

The ultimate controlling party is Mr L T Whittington who owns 20% of the shares in LJ (Copiers) Limited. Mr Eldridge owns 5% and the remaining 75% is held in the L T Whittington 2008 Settlement of which Mr L T Whittington is a trustee but has no beneficial interest.