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REGISTERED NUMBER: 08203435 (England and Wales)










STRATEGIC REPORT, REPORT OF THE DIRECTOR AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 28 FEBRUARY 2023

FOR

LF SOLUTIONS LIMITED

LF SOLUTIONS LIMITED (REGISTERED NUMBER: 08203435)






CONTENTS OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2023




Page

Company Information 1

Strategic Report 2

Report of the Director 3

Report of the Independent Auditors 4

Income Statement 7

Other Comprehensive Income 8

Statement of Financial Position 9

Statement of Changes in Equity 10

Statement of Cash Flows 11

Notes to the Statement of Cash Flows 12

Notes to the Financial Statements 14


LF SOLUTIONS LIMITED

COMPANY INFORMATION
FOR THE YEAR ENDED 28 FEBRUARY 2023







DIRECTOR: Mr F Kane





REGISTERED OFFICE: 6 Water End Barns
New Water End
Eversholt
Bedfordshire
MK17 9EA





REGISTERED NUMBER: 08203435 (England and Wales)





AUDITORS: AGK Partners
Chartered Accountants & Statutory Auditors
1 Kings Avenue
London
N21 3NA

LF SOLUTIONS LIMITED (REGISTERED NUMBER: 08203435)

STRATEGIC REPORT
FOR THE YEAR ENDED 28 FEBRUARY 2023

The director presents his strategic report for the year ended 28 February 2023.

REVIEW OF BUSINESS
The principle activities of the company are construction management and providing specialist civil engineering services.

The turnover for the year decreased by approximately 2.78% to £23,299,749 (2022: £23,967,471), mainly due to general economic conditions affecting the industry.

The gross profit has increased to £2,044,103 from £1,768,851. The increase in gross margin is in line with expectations.

The profit before tax for the year is £270,151 (2022: £414,436).

PRINCIPAL RISKS AND UNCERTAINTIES
The Directors systematically and actively assess and manage risk across all areas of the business. Risks are considered by the Directors as an intrinsic part of strategy setting and consideration of new opportunities.

The main risks are market/competition risk, financial risk and regulatory risk, as described below:
(i) Market/Competition Risk
A recession or significant slow-down in the UK economic recovery, leading to flat or negative valuation movements and/or stagflation pursuant to an external factor.

(ii) Financial Risk
The inability to obtain sufficient finance to fund the Company's growth strategy and operations arising from external
factors/events (including, but not limited to the Covid-19 pandemic) which impacts the ability to fund the delivery of the strategy and maintain a strong capital structure.

(iii) Regulatory Risk
Failure to meet current regulatory obligations and adapt to ongoing requirements. The Company's ability to anticipateand prepare for the future, understanding complexities of a changing regulatory landscape in which the Company operates in.

KEY PERFORMANCE INDICATORS
The Director consider the following as key performance indicators:

2023 2022
Unaudited
£ £
Turnover 23,299,749 23,967,471
Cost of sales 21,255,646 22,198,620
Gross Profit 2,044,103 1,768,851
Gross Margin 8.76% 7.38%
Profit before tax 270,151 414,436
Net Assets 2,101,944 2,089,333

FUTURE DEVELOPMENTS
The Directors have built a strong brand and reputation by providing first class service in repairs, maintenance and
construction projects. This is achieved by aligning ourselves closely with our clients, ensuring we have a full understanding of their requirements. Our strategy is to continue to specialise in our principle activities, maintain our brand reputation whilst managing the risk areas across our business.

ON BEHALF OF THE BOARD:





Mr F Kane - Director


1 March 2024

LF SOLUTIONS LIMITED (REGISTERED NUMBER: 08203435)

REPORT OF THE DIRECTOR
FOR THE YEAR ENDED 28 FEBRUARY 2023

The director presents his report with the financial statements of the company for the year ended 28 February 2023.

PRINCIPAL ACTIVITY
The principal activity of the company in the year under review was that of construction management and providing specialist civil engineering services.

DIVIDENDS
An interim dividend of £170,000 per share on the Ordinary £1 shares was paid on 28 February 2023. The director recommends that no final dividend be paid on these shares.

No interim dividend was paid on the B Ordinary £1 shares. The director recommends that no final dividend be paid on these shares.

The total distribution of dividends for the year ended 28 February 2023 will be £ 170,000 .

DIRECTOR
Mr F Kane held office during the whole of the period from 1 March 2022 to the date of this report.

CHARITABLE DONATIONS AND EXPENDITURE
Donations to charities made during the period was £3,704.

STATEMENT OF DIRECTOR'S RESPONSIBILITIES
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.

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.

AUDITORS
The auditors, AGK Partners, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





Mr F Kane - Director


1 March 2024

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
LF SOLUTIONS LIMITED

Opinion
We have audited the financial statements of LF Solutions Limited (the 'company') for the year ended 28 February 2023 which comprise the Income Statement, Other Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity, Statement of Cash Flows and Notes to the Statement of Cash Flows, 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 28 February 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 director is responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Director, 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 Strategic Report and the Report of the Director for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Director 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 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 director's remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
LF SOLUTIONS LIMITED


Responsibilities of director
As explained more fully in the Statement of Director's Responsibilities set out on page three, the director is 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 director determines 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 director is 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 director either intends to liquidate the company or to cease operations, or has 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:

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:
- the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognize non-compliance with applicable laws and regulations;
- we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the industry;
- we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
- making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

To address the risk of fraud through management bias and override of controls, we:
- performed analytical procedures to identify any unusual or unexpected relationships;
- tested journal entries to identify unusual transactions;
- assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and
- investigated the rationale behind significant or unusual transactions.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
- agreeing financial statement disclosures to underlying supporting documentation;
- reading the minutes of meetings of those charged with governance;
- enquiring of management as to actual and potential litigation and claims; and
- reviewing correspondence with HMRC, relevant regulators, and the company's legal advisors.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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.

Other matters which we are required to address
As disclosed in note 19 to the financial statements, the corresponding comparative figures to these financial statements were unaudited. Our opinion is not modified with respect to this matter.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
LF SOLUTIONS 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.




Alekos Christofi (Senior Statutory Auditor)
for and on behalf of AGK Partners
Chartered Accountants & Statutory Auditors
1 Kings Avenue
London
N21 3NA

1 March 2024

LF SOLUTIONS LIMITED (REGISTERED NUMBER: 08203435)

INCOME STATEMENT
FOR THE YEAR ENDED 28 FEBRUARY 2023

2023 2022
(Unaudited)
Notes £    £   

REVENUE 23,299,749 23,967,471

Cost of sales (21,255,646 ) (22,198,620 )
GROSS PROFIT 2,044,103 1,768,851

Administrative expenses (1,737,924 ) (1,459,272 )
306,179 309,579

Other operating income 62,767 189,454
OPERATING PROFIT 4 368,946 499,033

Interest receivable and similar income - 1,386
368,946 500,419

Interest payable and similar expenses 5 (98,795 ) (85,983 )
PROFIT BEFORE TAXATION 270,151 414,436

Tax on profit 6 (87,541 ) (61,482 )
PROFIT FOR THE FINANCIAL YEAR 182,610 352,954

LF SOLUTIONS LIMITED (REGISTERED NUMBER: 08203435)

OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 28 FEBRUARY 2023

2023 2022
(Unaudited)
Notes £    £   

PROFIT FOR THE YEAR 182,610 352,954


OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME FOR
THE YEAR

182,610

352,954

LF SOLUTIONS LIMITED (REGISTERED NUMBER: 08203435)

STATEMENT OF FINANCIAL POSITION
28 FEBRUARY 2023

2023 2022
(Unaudited)
Notes £    £    £    £   
FIXED ASSETS
Property, plant and equipment 8 733,666 703,058

CURRENT ASSETS
Inventories 9 2,706,362 3,224,477
Debtors 10 4,312,308 4,387,802
Cash at bank and in hand 182,294 65,596
7,200,964 7,677,875
CREDITORS
Amounts falling due within one year 11 5,062,632 5,252,128
NET CURRENT ASSETS 2,138,332 2,425,747
TOTAL ASSETS LESS CURRENT
LIABILITIES

2,871,998

3,128,805

CREDITORS
Amounts falling due after more than one
year

12

(688,852

)

(982,943

)

PROVISIONS FOR LIABILITIES 16 (81,202 ) (56,529 )
NET ASSETS 2,101,944 2,089,333

CAPITAL AND RESERVES
Called up share capital 17 2 1
Retained earnings 18 2,101,942 2,089,332
SHAREHOLDERS' FUNDS 2,101,944 2,089,333

The financial statements were approved by the director and authorised for issue on 1 March 2024 and were signed by:





Mr F Kane - Director


LF SOLUTIONS LIMITED (REGISTERED NUMBER: 08203435)

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 28 FEBRUARY 2023

Called up
share Retained Total
capital earnings equity
£    £    £   

Balance at 1 March 2021 1 1,796,378 1,796,379

Changes in equity
Dividends - (60,000 ) (60,000 )
Total comprehensive income - 352,954 352,954
Balance at 28 February 2022 1 2,089,332 2,089,333

Changes in equity
Issue of share capital 1 - 1
Dividends - (170,000 ) (170,000 )
Total comprehensive income - 182,610 182,610
Balance at 28 February 2023 2 2,101,942 2,101,944

LF SOLUTIONS LIMITED (REGISTERED NUMBER: 08203435)

STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 28 FEBRUARY 2023

2023 2022
(Unaudited)
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 923,146 25,695
Interest paid (93,071 ) (84,236 )
Interest element of hire purchase payments
paid

(5,724

)

(1,747

)
Tax paid (1 ) (48,628 )
Net cash from operating activities 824,350 (108,916 )

Cash flows from investing activities
Purchase of tangible fixed assets (49,728 ) (5,025 )
Government grants 5,474 3,453
Interest received - 1,386
Net cash from investing activities (44,254 ) (186 )

Cash flows from financing activities
New loans in year - 205,800
Loan repayments in year (490,746 ) (214,905 )
Share issue 1 -
Equity dividends paid (170,000 ) (60,000 )
Net cash from financing activities (660,745 ) (69,105 )

Increase/(decrease) in cash and cash equivalents 119,351 (178,207 )
Cash and cash equivalents at beginning
of year

2

62,943

241,150

Cash and cash equivalents at end of year 2 182,294 62,943

LF SOLUTIONS LIMITED (REGISTERED NUMBER: 08203435)

NOTES TO THE STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 28 FEBRUARY 2023

1. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS
2023 2022
(Unaudited)
£    £   
Profit before taxation 270,151 414,436
Depreciation charges 73,338 78,805
Government grants (5,473 ) (3,454 )
Finance costs 98,795 85,983
Finance income - (1,386 )
436,811 574,384
Decrease/(increase) in inventories 518,115 (551,573 )
Increase in trade and other debtors (70,600 ) (2,560,611 )
Increase in trade and other creditors 38,820 2,563,495
Cash generated from operations 923,146 25,695

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts:

Year ended 28 February 2023
28.2.23 1.3.22
£    £   
Cash and cash equivalents 182,294 65,596
Bank overdrafts - (2,653 )
182,294 62,943
Year ended 28 February 2022
28.2.22 1.3.21
(Unaudited)
£    £   
Cash and cash equivalents 65,596 241,150
Bank overdrafts (2,653 ) -
62,943 241,150


LF SOLUTIONS LIMITED (REGISTERED NUMBER: 08203435)

NOTES TO THE STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 28 FEBRUARY 2023

3. ANALYSIS OF CHANGES IN NET DEBT

Other
non-cash
At 1.3.22 Cash flow changes At 28.2.23
£    £    £    £   
Net cash
Cash at bank
and in hand 65,596 116,698 182,294
Bank overdrafts (2,653 ) 2,653 -
62,943 119,351 182,294
Debt
Finance leases (706 ) 8,771 (54,218 ) (46,153 )
Debts falling due
within 1 year (516,757 ) 163,792 - (352,965 )
Debts falling due
after 1 year (982,943 ) 322,171 - (660,772 )
(1,500,406 ) 494,734 (54,218 ) (1,059,890 )
Total (1,437,463 ) 614,085 (54,218 ) (877,596 )

LF SOLUTIONS LIMITED (REGISTERED NUMBER: 08203435)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2023

1. STATUTORY INFORMATION

LF Solutions Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).


2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Significant judgements and estimates
In the application of the company's accounting policies, the director is required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are relevant. Actual results may differ from these estimates.

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

There are no significant judgements or estimates involved in the preparation of the financial statements.

Revenue
Revenue is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Revenue is recognised at the point the company has transferred to the buyer the significant risks and rewards, the amount of the revenue can be measured reliably and it is probable the economic benefits associated with the transactions will flow to the company.

When the outcome of a construction contract can be estimated reliably, contract revenue and contract costs are recognised as revenue and expenses respectively by reference to the stage of completion of the contract activity at the balance sheet date. When the outcome of a construction contract cannot be estimated reliably, contract revenue is recognised to the extent of contract costs incurred that are likely to be recoverable. When it is probable that total contract costs will exceed total contract revenue, the expected loss is recognised as an expense immediately.

Property, plant and equipment
Property, plant and equipment are stated at cost less accumulated depreciation and accumulated impairment losses. Such cost includes costs directly attributable to making the assets capable of operating as intended.

The carrying value of tangible assets are reviewed for impairment when events or changes in circumstances indicate the carrying value may not be recoverable.

Depreciation has been provided at the following rates in order to write off the assets over their estimated useful lives.

Short leasehold - no depreciation.
Plant and machinery - 20% on reducing balance.
Fixtures and fittings - 20% on reducing balance.
Computer equipment - 20% on cost

Inventories
Inventories are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first in first out method. The carrying amount of inventory sold is recognised as an expense in the period in which the related revenue is recognised.


LF SOLUTIONS LIMITED (REGISTERED NUMBER: 08203435)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 28 FEBRUARY 2023

2. ACCOUNTING POLICIES - continued
Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the 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 statement of financial position date.

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position 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.

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.

Cash and cash equivalents
Cash and cash equivalents in the statement of financial position comprise cash at banks and in hand, short term deposits with an original maturity date of one month. Cash equivalents are defined as short-term, highly liquid investments that are readily convertible to known amounts of cash and that are subject to an insignificant risk of changes in value.

Financial instruments
Basic financial instruments are recognised at amortised cost, except for investments in non-convertible preference and non-puttable ordinary shares which are measured at fair value, with changes recognised in profit or loss.

Derivative financial instruments are initially recorded at cost and thereafter at fair value with changes recognised in profit or loss.

3. EMPLOYEES AND DIRECTORS
2023 2022
(Unaudited)
£    £   
Wages and salaries 842,509 735,577
Social security costs 112,498 81,233
Other pension costs 11,041 11,346
966,048 828,156

LF SOLUTIONS LIMITED (REGISTERED NUMBER: 08203435)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 28 FEBRUARY 2023

3. EMPLOYEES AND DIRECTORS - continued

The average number of employees during the year was as follows:
2023 2022
(Unaudited)

Administration 16 14

2023 2022
(Unaudited)
£    £   
Director's remuneration 95,255 95,280

4. OPERATING PROFIT

The operating profit is stated after charging:

2023 2022
(Unaudited)
£    £   
Hire of plant and machinery 9,281 11,557
Other operating leases 39,744 25,257
Depreciation - owned assets 71,599 76,658
Depreciation - assets on hire purchase contracts 1,739 2,147
Auditors' remuneration 10,000 -

5. INTEREST PAYABLE AND SIMILAR EXPENSES
2023 2022
(Unaudited)
£    £   
Bank interest payable 75,825 67,481
Interest on other loans 17,246 16,755
Hire purchase 2,180 121
Other interest payable 3,544 1,626
98,795 85,983

6. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
2023 2022
(Unaudited)
£    £   
Current tax:
UK corporation tax 62,868 61,482

Deferred tax 24,673 -
Tax on profit 87,541 61,482

LF SOLUTIONS LIMITED (REGISTERED NUMBER: 08203435)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 28 FEBRUARY 2023

6. TAXATION - continued

Reconciliation of total tax charge included in profit and loss
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

2023 2022
(Unaudited)
£    £   
Profit before tax 270,151 414,436
Profit multiplied by the standard rate of corporation tax in the UK of 19%
(2022 - 19%)

51,329

78,743

Effects of:
Expenses not deductible for tax purposes 16,335 5,016
Capital allowances in excess of depreciation (4,796 ) -
Depreciation in excess of capital allowances - 13,013
Deferred tax 24,673 (35,290 )
Total tax charge 87,541 61,482

7. DIVIDENDS
2023 2022
(Unaudited)
£    £   
Ordinary share of £1
Interim 170,000 60,000

8. PROPERTY, PLANT AND EQUIPMENT
Fixtures
Short Plant and and Computer
leasehold machinery fittings equipment Totals
£    £    £    £    £   
COST
At 1 March 2022 388,316 643,891 105,830 64,390 1,202,427
Additions 6,427 - 89,320 8,199 103,946
At 28 February 2023 394,743 643,891 195,150 72,589 1,306,373
DEPRECIATION
At 1 March 2022 - 387,309 75,115 36,945 499,369
Charge for year - 54,317 6,143 12,878 73,338
At 28 February 2023 - 441,626 81,258 49,823 572,707
NET BOOK VALUE
At 28 February 2023 394,743 202,265 113,892 22,766 733,666
At 28 February 2022 388,316 256,582 30,715 27,445 703,058

The net carrying value of tangible fixed assets includes the following in respect of assets held under hire purchase contracts:-

20232022
£   £   
Plant and machinery - cost54,21831,000
Accumulated depreciation(24,044)(22,305)
--------------------------
Net book value30,1748,695
--------------------------

LF SOLUTIONS LIMITED (REGISTERED NUMBER: 08203435)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 28 FEBRUARY 2023

9. INVENTORIES
2023 2022
(Unaudited)
£    £   
Stocks and WIP 2,706,362 3,224,477

10. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
(Unaudited)
£    £   
Trade debtors 1,638,413 2,403,230
Amounts owed by group undertakings 372,227 518,321
Other debtors 438,140 88,175
VAT 1,690,931 1,287,427
Prepayments 172,597 90,649
4,312,308 4,387,802

11. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
(Unaudited)
£    £   
Bank loans and overdrafts (see note 13) 322,165 313,610
Other loans (see note 13) 30,800 205,800
Hire purchase contracts (see note 14) 18,073 706
Trade creditors 2,350,477 2,626,774
Amounts owed to group undertakings 500,082 -
Tax 159,640 96,773
Social security and other taxes 1,311,038 1,358,248
Other creditors 370,357 650,217
5,062,632 5,252,128

12. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
2023 2022
(Unaudited)
£    £   
Bank loans (see note 13) 660,772 982,943
Hire purchase contracts (see note 14) 28,080 -
688,852 982,943

13. LOANS

An analysis of the maturity of loans is given below:

2023 2022
(Unaudited)
£    £   
Amounts falling due within one year or on demand:
Bank overdrafts - 2,653
Bank loans 322,165 310,957
Other loans 30,800 205,800
352,965 519,410

Amounts falling due between one and two years:
Bank loans - 1-2 years 75,772 137,943

Amounts falling due between two and five years:
Bank loans - 2-5 years 585,000 845,000

LF SOLUTIONS LIMITED (REGISTERED NUMBER: 08203435)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 28 FEBRUARY 2023

14. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase contracts
2023 2022
(Unaudited
£    £   
Net obligations repayable:
Within one year 18,073 706
Between one and five years 28,080 -
46,153 706

Non-cancellable operating leases
2023 2022
(Unaudited)
£    £   
Within one year 47,772 -
Between one and five years 163,221 -
210,993 -

The operating lease relates to a property.

15. SECURED DEBTS

The following secured debts are included within creditors:

2023 2022
(Unaudited)
£    £   
Bank loans 982,937 1,293,900

There is a Debenture in place dated 25 May 2021 secured by way of a negative pledge, fixed and floating charge over all the assets of the Company.

16. PROVISIONS FOR LIABILITIES
2023 2022
(Unaudited)
£    £   
Deferred tax
Accelerated capital allowances 81,202 56,529

Deferred
tax
£   
Balance at 1 March 2022 56,529
Provided during year 24,673
Balance at 28 February 2023 81,202

LF SOLUTIONS LIMITED (REGISTERED NUMBER: 08203435)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 28 FEBRUARY 2023

17. CALLED UP SHARE CAPITAL



Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: £    £   
1 Ordinary £1 1 1
1 B Ordinary £1 1 -
2 1

18. RESERVES
Retained
earnings
£   

At 1 March 2022 2,089,332
Profit for the year 182,610
Dividends (170,000 )
At 28 February 2023 2,101,942

19. RELATED PARTY DISCLOSURES

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Included in other debtors due within a year, is an amount of £44,590 (2022: £30,420) owed by connected companies under common control. The amount is interest free and repayable on demand.

Included in other creditors due within one year, is an amount of £145,629 (2022: £399,305) owed to connected companies under common control. The amount is interest free and repayable on demand.

During the year, £57,294 (2022: £186,000) was charged as management fees to connected companies.

20. ULTIMATE CONTROLLING PARTY

The controlling party is AOI Holdings Ltd.

21. COMPARATIVES

The comparative figures in the financial statements are unaudited.