REGISTERED NUMBER: |
MARK HARRIS (LINCOLN) LIMITED |
STRATEGIC REPORT, REPORT OF THE DIRECTOR AND |
FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MAY 2023 |
REGISTERED NUMBER: |
MARK HARRIS (LINCOLN) LIMITED |
STRATEGIC REPORT, REPORT OF THE DIRECTOR AND |
FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MAY 2023 |
MARK HARRIS (LINCOLN) LIMITED (REGISTERED NUMBER: 03459006) |
CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MAY 2023 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Director | 3 |
Report of the Independent Auditors | 5 |
Statement of Comprehensive Income | 9 |
Balance Sheet | 10 |
Statement of Changes in Equity | 11 |
Cash Flow Statement | 12 |
Notes to the Cash Flow Statement | 13 |
Notes to the Financial Statements | 14 |
MARK HARRIS (LINCOLN) LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 31 MAY 2023 |
DIRECTOR: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
SENIOR STATUTORY AUDITOR: |
AUDITORS: |
Newland House |
The Point |
Weaver Road |
Lincoln |
Lincolnshire |
LN6 3QN |
MARK HARRIS (LINCOLN) LIMITED (REGISTERED NUMBER: 03459006) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 31 MAY 2023 |
The director presents his strategic report for the year ended 31 May 2023. |
REVIEW OF BUSINESS |
The company continues to manufacture bespoke commercial vehicles for a variety of industries. |
The company is based just outside Lincoln in Lincolnshire and primarily retails Peugeot and Fiat alongside other makes such as Vauxhall, Citroen, Renault and Mercedes. |
The key financial performance indicators are considered to be sales, gross margins and profit on ordinary activities, as shown in the income statement along with solvency and the working capital position as indicated in the statement of financial position. |
With the challenging economic and retail climate the core trade element of the business has continued to perform well. Turnover has increased in the year to £31,497,729 (2022: £21,736,205) the gross profit margin has been increased to 35% (2022: 31%). |
The above have combined to produce a profit on ordinary activities of £9,533,697 (2022: £5,497,175). |
The director considers the statement of financial position of the company to be strong, with a comfortable net asset and working capital position. Management remains mindful of the competitive environment in which the company operates and the need to maintain close control over the company's working capital and financial position. |
PRINCIPAL RISKS AND UNCERTAINTIES |
The company is affected by a number of factors, the principle ones of which are: |
- The company is exposed to the risk of negative developments in global and regional economies and financial markets, either directly or through the impact on the company's bankers, suppliers or customers. These developments can result in recession, inflation, deflation, currency fluctuations, restrictions in the availability of credit, business failures in the customer or supplier base, or increase in financing costs, and the cost of utilities, raw materials and finished products. Such development might increase operating costs, reduce revenues, lower asset values or result in the business being unable to meet in full its strategic objectives. |
- The company operates in a competitive market and failure to compete effectively in terms of price, product specification or levels of service can have an adverse effect on demand and/or margins. |
The company mitigates risk in several ways: |
- The company has in place an organisational structure with clearly defined lines of responsibility and delegation of authority. There are established policies and procedures for the setting of corporate strategies; financial planning and budgeting; for information and reporting systems; for systems of operational and financial internal control; for assessment of risk; and for monitoring operations and performance. |
- Management and staff at all levels work closely with customers and suppliers to operate as effectively and efficiently as possible whilst maintaining long term working relationships, innovation and good lines of communication. |
- The company operates a recruitment and selection process to ensure employees are experienced and competent in their work. The workforce is trained to be alert, responsive to customer needs and to operate in line with the company's corporate objectives. |
FUTURE DEVELOPMENTS |
The director looks forward to the future with cautious optimism and is ready to take advantage of opportunities which may present themselves. The electrification of vehicles has been taken into account in the company's strategic plans and in financial growth forecasts however at this stage is not thought to present any risk to the company's operations. |
ON BEHALF OF THE BOARD: |
MARK HARRIS (LINCOLN) LIMITED (REGISTERED NUMBER: 03459006) |
REPORT OF THE DIRECTOR |
FOR THE YEAR ENDED 31 MAY 2023 |
The director presents his report with the financial statements of the company for the year ended 31 May 2023. |
PRINCIPAL ACTIVITY |
The principal activity of the company in the year under review was that of commercial vehicle sales. |
DIVIDENDS |
An interim dividend of £ |
The total distribution of dividends for the year ended 31 May 2023 will be £ |
DIRECTOR |
His beneficial interests in the shares of the company, according to the register of directors' interests, were as follows: |
31.5.23 | 1.6.22 |
Class E shares of £1 each | 300,000 | 300,000 |
He did not hold any beneficial interests in the Ordinary shares of £1 each. |
He did not hold any non-beneficial interests in any of the shares of the company. |
EVENTS SINCE THE YEAR END |
The current ongoing issues in Israel and the Ukraine and not anticipated to impact on the company's supply of materials or production lines. The director remains confident that the company will enjoy expansion and increased profitability in future years through innovation and efficiencies. |
STREAMLINED ENERGY AND CARBON REPORTING |
The director has invested significantly in measures to reduce the carbon footprint of the company. The acquisition of a biomass system, the switch to energy efficient lighting and the capture of rain water for use, all contribute significantly to improvements in energy reduction. The Director continues to seek avenues of efficiency and intends to invest in this area in future years. |
DISCLOSURE IN THE STRATEGIC REPORT |
The company has chosen to include information regarding future developments, and principle risks and uncertainties in the strategic report rather than the directors report. |
DIRECTOR'S RESPONSIBILITIES STATEMENT |
The director is responsible for preparing the Strategic Report, the Report of the Director and the financial statements in accordance with applicable law and regulations. |
Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the director is required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The director is responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable him to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
MARK HARRIS (LINCOLN) LIMITED (REGISTERED NUMBER: 03459006) |
REPORT OF THE DIRECTOR |
FOR THE YEAR ENDED 31 MAY 2023 |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the director is aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and he 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 company's auditors are aware of that information. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
MARK HARRIS (LINCOLN) LIMITED |
Opinion |
We have audited the financial statements of Mark Harris (Lincoln) Limited (the 'company') for the year ended 31 May 2023 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the 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 company's affairs as at 31 May 2023 and of its profit for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company 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 company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the director 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 Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- the information given in the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- the Report of the Directors has been prepared in accordance with applicable legal requirements. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
MARK HARRIS (LINCOLN) LIMITED |
Matters on which we are required to report by exception |
In the light of the 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 or the Report of the Director. |
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, or returns adequate for our audit have not been received from branches not visited by us; or |
- the 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; or |
- the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemption from the requirement to prepare a Strategic Report or in preparing the Report of the Directors. |
Responsibilities of director |
As explained more fully in the Statement of Directors' Responsibilities set out on page four, 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 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 company or to cease operations, or have no realistic alternative but to do so. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
MARK HARRIS (LINCOLN) LIMITED |
Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
We obtained an understanding of the legal and regulatory frameworks that are applicable to the organisation and determined that the most significant are those that relate to the reporting framework (FRS102), the Companies Act 2006 and the relevant tax compliance. |
We understood how the organisation is complying with those frameworks by making enquiries of management and those charged with governance, and we corroborated our enquiries by reviewing board minutes and reviewing third party correspondence, including correspondence with HMRC. |
We assessed the susceptibility of the financial statements to material misstatement, including how fraud might occur by meeting with management from various parts of the business to understand where they considered there was susceptibility to fraud. We considered the controls that the organisation has established to address risks identified, or that otherwise prevent, deter and detect fraud and also reviewed how these had operated in the year. |
Where the risk was considered to be higher, we performed audit procedures to address each identified fraud risk along with procedures to identify non-compliance with such laws and regulations identified in the paragraphs above along with areas where management override of controls may be relevant. These procedures included assessing the appropriateness of presentation of separately disclosed items with a focus on manual journals and journals indicating large or unusual transactions based on our understanding of the organisation. These procedures were designed to provide reasonable assurance that the financial statements were free from material fraud or error. |
We also considered the risk associated with completeness of income and work-in-progress and whether this could have a material impact on the financial statements. Work was targeted in these areas. |
We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit. The audit was planned to ensure that the more complex areas were performed by more experienced members of the audit team and there were no areas of the audit which were considered to require external experts to be appointed by the audit team. |
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 or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
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 |
MARK HARRIS (LINCOLN) 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 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 |
Newland House |
The Point |
Weaver Road |
Lincoln |
Lincolnshire |
LN6 3QN |
MARK HARRIS (LINCOLN) LIMITED (REGISTERED NUMBER: 03459006) |
STATEMENT OF COMPREHENSIVE |
INCOME |
FOR THE YEAR ENDED 31 MAY 2023 |
2023 | 2022 |
Notes | £ | £ |
REVENUE |
Cost of sales |
GROSS PROFIT |
Administrative expenses |
9,465,778 | 5,421,249 |
Other operating income |
OPERATING PROFIT | 4 |
Interest receivable and similar income |
9,538,713 | 5,497,175 |
Interest payable and similar expenses | 6 |
PROFIT BEFORE TAXATION |
Tax on profit | 7 |
PROFIT FOR THE FINANCIAL YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
MARK HARRIS (LINCOLN) LIMITED (REGISTERED NUMBER: 03459006) |
BALANCE SHEET |
31 MAY 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 9 |
Property, plant and equipment | 10 |
Investments | 11 |
CURRENT ASSETS |
Inventories | 12 |
Debtors | 13 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 14 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
PROVISIONS FOR LIABILITIES | 16 |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 17 |
Retained earnings | 18 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the director and authorised for issue on |
MARK HARRIS (LINCOLN) LIMITED (REGISTERED NUMBER: 03459006) |
STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 MAY 2023 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 June 2021 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 31 May 2022 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 31 May 2023 |
MARK HARRIS (LINCOLN) LIMITED (REGISTERED NUMBER: 03459006) |
CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 MAY 2023 |
2023 | 2022 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 |
Interest paid | ( |
) |
Tax paid | ( |
) | ( |
) |
Net cash from operating activities |
Cash flows from investing activities |
Purchase of intangible fixed assets | ( |
) |
Purchase of tangible fixed assets | ( |
) | ( |
) |
Interest received |
Net cash from investing activities | ( |
) |
Cash flows from financing activities |
Amount introduced by directors | 85,337 | 129,856 |
Amount withdrawn by directors | (86,433 | ) | (147,867 | ) |
Equity dividends paid | ( |
) | ( |
) |
Net cash from financing activities | ( |
) | ( |
) |
Increase in cash and cash equivalents |
Cash and cash equivalents at beginning of year | 2 | 6,255,323 |
Cash and cash equivalents at end of year | 2 | 19,832,827 | 12,607,394 |
MARK HARRIS (LINCOLN) LIMITED (REGISTERED NUMBER: 03459006) |
NOTES TO THE CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 MAY 2023 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2023 | 2022 |
£ | £ |
Profit before taxation |
Depreciation charges |
Finance costs | 5,016 | - |
Finance income | (72,935 | ) | (3,163 | ) |
9,510,122 | 5,536,479 |
(Increase)/decrease in inventories | ( |
) |
(Increase)/decrease in trade and other debtors | ( |
) |
Increase/(decrease) in trade and other creditors | ( |
) |
Cash generated from operations |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 31 May 2023 |
31.5.23 | 1.6.22 |
£ | £ |
Cash and cash equivalents | 19,832,827 | 12,607,394 |
Year ended 31 May 2022 |
31.5.22 | 1.6.21 |
£ | £ |
Cash and cash equivalents | 12,607,394 | 6,255,323 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1.6.22 | Cash flow | At 31.5.23 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 12,607,394 | 7,225,433 | 19,832,827 |
12,607,394 | 19,832,827 |
Total | 12,607,394 | 7,225,433 | 19,832,827 |
MARK HARRIS (LINCOLN) LIMITED (REGISTERED NUMBER: 03459006) |
NOTES TO THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MAY 2023 |
1. | STATUTORY INFORMATION |
Mark Harris (Lincoln) Limited is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Turnover |
Revenue is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
Intangible assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
Property, plant and equipment |
Plant and machinery | - |
Fixtures and fittings | - |
Motor vehicles | - |
Inventories and work in progress |
Inventories and work in progress are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
Cost is calculated using the first-in, first-out method and includes all purchase, transport, and handling costs in bringing inventories to their present location and condition. |
Work in progress is valued on the basis of direct costs plus attributable overhead based on a normal level of activity. Provision is made for any foreseeable losses where appropriate. No element of profit is included in the valuation of work in progress. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, 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. |
Research and development |
Expenditure on research and development is written off in the year in which it is incurred. |
MARK HARRIS (LINCOLN) LIMITED (REGISTERED NUMBER: 03459006) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MAY 2023 |
2. | ACCOUNTING POLICIES - continued |
Hire purchase and leasing commitments |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. |
3. | EMPLOYEES AND DIRECTORS |
2023 | 2022 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
The average number of employees during the year was as follows: |
2023 | 2022 |
Workshop | 37 | 39 |
Sales and Administration | 7 | 6 |
Director | 1 | 1 |
2023 | 2022 |
£ | £ |
Director's remuneration |
Director's pension contributions to money purchase schemes |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes |
4. | OPERATING PROFIT |
The operating profit is stated after charging: |
2023 | 2022 |
£ | £ |
Other operating leases |
Depreciation - owned assets |
Website amortisation |
Auditors' remuneration |
5. | EXCEPTIONAL ITEMS |
2023 | 2022 |
£ | £ |
HMRC Settlement | - | 72,763 |
Intercompany loan write off | (231,441 | ) | (149,356 | ) |
(231,441 | ) | (76,593 | ) |
Exceptional items, included within other income, includes the reduction in the agreed settlement with HM Revenue and Customs in respect of tax planning from earlier years. |
MARK HARRIS (LINCOLN) LIMITED (REGISTERED NUMBER: 03459006) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MAY 2023 |
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2023 | 2022 |
£ | £ |
Corporation tax interest |
7. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2023 | 2022 |
£ | £ |
Current tax: |
UK corporation tax |
Deferred tax |
Tax on profit |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
2023 | 2022 |
£ | £ |
Profit before tax |
Profit multiplied by the standard rate of corporation tax in the UK of (2022 - |
Effects of: |
Expenses not deductible for tax purposes |
Capital allowances in excess of depreciation | ( |
) | ( |
) |
Temporary timing differences | 5,438 | 4,246 |
Research and development | (231,896 | ) | (246,549 | ) |
Total tax charge | 1,726,551 | 824,467 |
8. | DIVIDENDS |
2023 | 2022 |
£ | £ |
Ordinary shares of £1 each |
Interim |
9. | INTANGIBLE FIXED ASSETS |
Website |
£ |
COST |
Additions |
At 31 May 2023 |
AMORTISATION |
Amortisation for year |
At 31 May 2023 |
NET BOOK VALUE |
At 31 May 2023 |
MARK HARRIS (LINCOLN) LIMITED (REGISTERED NUMBER: 03459006) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MAY 2023 |
10. | PROPERTY, PLANT AND EQUIPMENT |
Fixtures |
Plant and | and | Motor |
machinery | fittings | vehicles | Totals |
£ | £ | £ | £ |
COST |
At 1 June 2022 |
Additions |
At 31 May 2023 |
DEPRECIATION |
At 1 June 2022 |
Charge for year |
At 31 May 2023 |
NET BOOK VALUE |
At 31 May 2023 |
At 31 May 2022 |
11. | FIXED ASSET INVESTMENTS |
Investments (neither listed nor unlisted) were as follows: |
2023 | 2022 |
£ | £ |
Paintings | 957 | 957 |
12. | INVENTORIES |
2023 | 2022 |
£ | £ |
Stocks |
Work-in-progress |
13. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£ | £ |
Trade debtors |
Bad debt provision | (14,528 | ) | (14,528 | ) |
Other debtors |
Tax |
Prepayments and accrued income |
MARK HARRIS (LINCOLN) LIMITED (REGISTERED NUMBER: 03459006) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MAY 2023 |
14. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£ | £ |
Trade creditors |
Tax |
Social security and other taxes |
VAT | 465,865 | 43,462 |
Other creditors |
Directors' current accounts | 398 | 1,494 |
Accruals and deferred income |
15. | LEASING AGREEMENTS |
Minimum lease payments under non-cancellable operating leases fall due as follows: |
2023 | 2022 |
£ | £ |
Within one year |
Between one and five years |
16. | PROVISIONS FOR LIABILITIES |
2023 | 2022 |
£ | £ |
Deferred tax | 31,473 | 26,035 |
Deferred |
tax |
£ |
Balance at 1 June 2022 |
Provided during year |
Balance at 31 May 2023 |
The deferred tax provision is made in respect of accelerated capital allowances already claimed. |
17. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
Ordinary | £1 | 5,000 | 5,000 |
Allotted and issued: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
Class E | £1 | 3,000 | 3,000 |
MARK HARRIS (LINCOLN) LIMITED (REGISTERED NUMBER: 03459006) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MAY 2023 |
17. | CALLED UP SHARE CAPITAL - continued |
The holders of the ordinary shares are entitled to receive dividends as declared from time to time and are entitled to one vote per share at meetings of the company. All ordinary shares rank equally with regard to the company's residual assets. |
The holders of the E Shares are entitled to receive dividends as declared from time to time and carry no other rights or preferences. |
Called up share capital represents the nominal value of shares that have been issued. Only 1p per Class E Share has been called up. |
18. | RESERVES |
Retained |
earnings |
£ |
At 1 June 2022 |
Profit for the year |
Dividends | ( |
) |
At 31 May 2023 |
19. | ULTIMATE PARENT COMPANY |
Mark Harris (Holdings) Limited is regarded by the director as being the company's ultimate parent company. |
Mark Harris (Lincoln) Limited is a subsidiary of ultimate controlling parent Mark Harris (Holdings) Limited, registered office address - |
The Old Stables, Sudbrooke Road, Scothern, Lincoln, Lincolnshire, UK, LN2 2UZ. |
Mark Harris (Holdings) Limited prepares consolidated financial statements |
20. | RELATED PARTY DISCLOSURES |
At the balance sheet date Mark Harris (Lincoln) Limited and Mark Harris (Properties) Limited are both 100% owned subsidiaries of Mark Harris (Holdings) Limited. M R Harris is the managing director and majority shareholder of Mark Harris (Holdings) Limited. |
The company was charged £337,500 (2022: £300,000) in rent by Mark Harris (Properties) Limited during this financial year. |
At 31 May 2023 the amounts due to Mark Harris (Properties) Limited was £337,500 (2022: £Nil). |
At 31 May 2023 the amounts due from Mark Harris (Properties) Limited was £Nil (2022: £Nil). |
The key management personnel of the company are considered to be that of only the directors of the company. |
21. | ULTIMATE CONTROLLING PARTY |
The ultimate controlling party is |