Company registration number 02753264 (England and Wales)
G & A M LAWSON LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023
G & A M LAWSON LIMITED
COMPANY INFORMATION
Directors
Mr G Lawson
Mrs AM Lawson
Mr D Lawson
Mr JL Lawson
Mr A Lawson
Mrs B Thomson
Mr M Thomson
Secretary
Mrs B Thomson
Company number
02753264
Registered office
Whinbank Farm
Distington
Workington
Cumbria
CA14 4QH
Auditor
Gibbons
Chartered Accountants and Statutory Auditors
Carleton House
136 Gray Street
Workington
Cumbria
CA14 2LU
Bankers
HSBC Bank plc
3 Pow Street
Workington
Cumbria
CA14 3AH
G & A M LAWSON LIMITED
CONTENTS
Page
Strategic report
3
Directors' report
1 - 2
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Profit and loss account
8
Statement of comprehensive income
9
Balance sheet
10
Statement of changes in equity
11
Statement of cash flows
12
Notes to the financial statements
13 - 27
G & A M LAWSON LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 1 -

The directors present their annual report and financial statements for the year ended 30 September 2023.

Principal activities

The principal activity of the company continued to be that of plant hire, haulage, civil engineering contractor, property developer and loan finance provider.

Results and dividends

The results for the year are set out on page 8.

No ordinary dividends were paid. The directors do not recommend payment of a final dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Mr G Lawson
Mrs AM Lawson
Mr D Lawson
Mr JL Lawson
Mr A Lawson
Mrs B Thomson
Mr M Thomson
Financial instruments

Objectives and policies

The company uses various financial instruments which include cash, debtors, trade creditors and hire purchase. The main purpose of these financial instruments is to raise finance for the company's operations (working capital) and to facilitate the growth of the company.

Adequate financial resources have been available to take advantage of business opportunities arising during the year and the directors consider the state of affairs to be satisfactory as the company is in a strong financial position.

 

Price risk, credit risk, liquidity risk and cash flow risk

Price risk - the company negotiates with large customers to make future supplies. The success of these negotiations is uncertain and is subject to financial and performance criteria. The company is exposed to changes in market prices but because of the size of the company's operations it would not be cost effective to attempt to manage this risk. However, the directors will review this policy if circumstances change.

 

Credit risk - the main area of risk is that of credit risk by which one party will cause loss for another party by failing to discharge an obligation. The company's policy is to minimise that risk by ensuring that credit terms are only granted for customers who demonstrate an appropriate payment history and satisfy credit worthiness procedures. Trade debtors falling due after more than one year comprise loans to connected companies. There are loan agreements in place. There is no evidence to suggest the loan balances will not be paid in full. Details of the company's debtors are shown in note 18 of the financial statements. The amounts presented are net of allowances for doubtful debtors.

 

Liquidity and cash flow risk - in respect of bank balances, the liquidity risk is managed by maintaining a healthy cash balance. Trade creditors' liquidity risk is managed by ensuring there are sufficient funds available to meet amounts due.

Future developments

In the next financial year the directors believe that the company will trade profitably and produce results which compare favourably to previous years.

Auditor

The auditor, Gibbons, Chartered Accountants and Statutory Auditors, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

G & A M LAWSON LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 2 -
Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

Going concern

The financial statements have been prepared on a going concern basis.

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

On behalf of the board
Mr M Thomson
Director
29 March 2024
G & A M LAWSON LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 3 -

The directors present the strategic report for the year ended 30 September 2023.

Fair review of the business

The company's turnover increased by 13% to £11.4m (2022 - £10.1m). The company has performed well in plant hire, haulage and civil engineering contract income, which has increased by 8.5% this year to £10.8m (2022 - £10m).

 

The gross profit margin is 25.38% (2022 - 27.72%).

 

The company is in a strong financial position with net assets of £19m which is an increase of 11% from 2022.

 

The directors continue to monitor its plant and fleet profile to ensure that it only holds equipment that is in demand.

 

The directors believe that the economic outlook for the next twelve months will be mixed as last year. The construction and civil engineering markets are experiencing low but positive growth which is expected to continue over the next few years.

 

The company's business is straightforward and the company can adapt its operations to meet customer demand. Operatives are multi-skilled and therefore can move roles to deliver the outcomes clients demand.

 

The company is continually assessing its market position and adjusting its operations to take advantage of business opportunities. The company actively seeks ways to diversify the business, thus reducing business risk and improving stability and dependency. The directors are confident that the company has sufficient resources to take advantage of opportunities as they arise and the company can adapt to change.

 

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

Unit
2023
2022
Turnover
£
11,413,033
10,100,527
Turnover growth
%
13
39
Gross profit margin
%
25
28
Profit before tax
£
2,283,783
1,886,477
The company can manage its affairs with the above basic KPI's no other KPI's are relevant to business decisions
Principal risks and uncertainties

The company is not immune to risks and the company takes a responsible and balanced approach towards risk management. The directors have put procedures in place aimed to minimise the possibility and scale of specific risks that may impact on the company. The directors are involved in the day-to-day running of the company so new risks that arise can be easily identified. The company benefits from a strong market presence, reputation and goodwill.

On behalf of the board

Mr M Thomson
Director
29 March 2024
G & A M LAWSON LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 4 -

The directors are responsible 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 company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are 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 them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

G & A M LAWSON LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF G & A M LAWSON LIMITED
- 5 -
Opinion

We have audited the financial statements of G & A M Lawson Limited (the 'company') for the year ended 30 September 2023 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including 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:

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's 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 directors' 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 directors with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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. 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 course of 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 our audit:

G & A M LAWSON LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF G & A M LAWSON LIMITED
- 6 -
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 directors' report.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, 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 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.

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.

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:

We assessed the susceptibility of the company's financial statements to material misstatements including obtaining an understanding of how fraud might occur, by:

G & A M LAWSON LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF G & A M LAWSON LIMITED
- 7 -

In response to the risk of irregularities and non-compliance with laws and regulations, we designed audit procedures which included, but were not limited to:

In response to the risk of fraud through management bias and override of controls, we:

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 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 is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

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.

Hollie Stanger
Senior Statutory Auditor
For and on behalf of Gibbons
3 April 2024
Chartered Accountants
Statutory Auditor
Carleton House
136 Gray Street
Workington
Cumbria
CA14 2LU
G & A M LAWSON LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 8 -
2023
2022
Notes
£
£
Turnover
3
11,413,033
10,100,527
Cost of sales
(8,515,906)
(7,300,256)
Gross profit
2,897,127
2,800,271
Administrative expenses
(1,252,228)
(1,165,617)
Other operating income
302,859
252,788
Operating profit
4
1,947,758
1,887,442
Interest receivable and similar income
7
355,479
373
Interest payable and similar expenses
8
(14,454)
(1,338)
Amounts written off investments
9
(5,000)
-
Profit before taxation
2,283,783
1,886,477
Tax on profit
11
(455,174)
(383,384)
Profit for the financial year
1,828,609
1,503,093

The profit and loss account has been prepared on the basis that all operations are continuing operations.

G & A M LAWSON LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 9 -
2023
2022
£
£
Profit for the year
1,828,609
1,503,093
Other comprehensive income
-
-
Total comprehensive income for the year
1,828,609
1,503,093
G & A M LAWSON LIMITED
BALANCE SHEET
AS AT
30 SEPTEMBER 2023
30 September 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
13
14,774,245
12,913,191
Investment property
14
320,000
325,000
Investments
15
36,180
36,180
15,130,425
13,274,371
Current assets
Stocks
17
2,996,821
2,816,723
Debtors
18
2,583,265
3,383,494
Cash at bank and in hand
2,013,540
1,207,830
7,593,626
7,408,047
Creditors: amounts falling due within one year
19
(1,082,196)
(1,197,418)
Net current assets
6,511,430
6,210,629
Total assets less current liabilities
21,641,855
19,485,000
Creditors: amounts falling due after more than one year
20
(126,468)
(253,399)
Provisions for liabilities
Provisions
22
100,000
100,000
Deferred tax liability
23
2,416,413
1,961,236
(2,516,413)
(2,061,236)
Net assets
18,998,974
17,170,365
Capital and reserves
Called up share capital
25
120,000
120,000
Capital redemption reserve
1,200,000
1,200,000
Profit and loss reserves
17,678,974
15,850,365
Total equity
18,998,974
17,170,365

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.true

The financial statements were approved by the board of directors and authorised for issue on 29 March 2024 and are signed on its behalf by:
Mr M Thomson
Director
Company registration number 02753264 (England and Wales)
G & A M LAWSON LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 11 -
Share capital
Capital redemption reserve
Profit and loss reserves
Total
£
£
£
£
Balance at 1 October 2021
120,000
1,200,000
14,347,272
15,667,272
Year ended 30 September 2022:
Profit and total comprehensive income
-
-
1,503,093
1,503,093
Balance at 30 September 2022
120,000
1,200,000
15,850,365
17,170,365
Year ended 30 September 2023:
Profit and total comprehensive income
-
-
1,828,609
1,828,609
Balance at 30 September 2023
120,000
1,200,000
17,678,974
18,998,974
G & A M LAWSON LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 12 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
27
3,763,732
2,375,704
Interest paid
(14,454)
(1,338)
Income taxes refunded
30,111
49,787
Net cash inflow from operating activities
3,779,389
2,424,153
Investing activities
Purchase of tangible fixed assets
(3,767,707)
(2,878,626)
Proceeds from disposal of tangible fixed assets
565,120
44,434
Interest received
3,279
373
Dividends received
352,200
-
0
Net cash used in investing activities
(2,847,108)
(2,833,819)
Financing activities
Finance lease extended in the year
-
395,720
Payment of finance leases obligations
(126,571)
(10,414)
Net cash (used in)/generated from financing activities
(126,571)
385,306
Net increase/(decrease) in cash and cash equivalents
805,710
(24,360)
Cash and cash equivalents at beginning of year
1,207,830
1,232,190
Cash and cash equivalents at end of year
2,013,540
1,207,830
G & A M LAWSON LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 13 -
1
Accounting policies
Company information

G & A M Lawson Limited is a private company limited by shares incorporated in England and Wales. The registered office is Whinbank Farm, Distington, Workington, Cumbria, CA14 4QH.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

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

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2
Going concern

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

 

Turnover also includes the sale of properties developed by the company and interest receivable on loans extended to related companies.

 

The company recognises revenue when:

- The amount of revenue can be reliably measured;

- it is probable that future economic benefits will flow to the entity;

- and specific criteria have been met for each of the company's activities.

1.4
Tangible fixed assets

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

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Land and buildings
20% reducing balance basis
Plant and machinery
10% reducing balance basis
Fixtures and fittings
33% reducing balance/50% straight line basis
Motor vehicles
15% reducing balance basis

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

1.5
Investment properties

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.

G & A M LAWSON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
1
Accounting policies
(Continued)
- 14 -
1.6
Fixed asset investments

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

A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

1.7
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.8
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

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

G & A M LAWSON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
1
Accounting policies
(Continued)
- 15 -
1.9
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.10
Financial instruments

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

 

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

 

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

Basic financial assets

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

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

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

 

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

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

G & A M LAWSON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
1
Accounting policies
(Continued)
- 16 -
Classification of financial liabilities

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

Basic financial liabilities

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

 

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

 

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

Other financial liabilities

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.11
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.12
Taxation

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

Current tax

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

G & A M LAWSON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
1
Accounting policies
(Continued)
- 17 -
Deferred tax

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

 

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

1.13
Provisions

Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

 

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

1.14
Employee benefits

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

 

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

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.15
Retirement benefits

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

1.16
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

G & A M LAWSON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
1
Accounting policies
(Continued)
- 18 -
1.17
Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

 

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

2
Judgements and key sources of estimation uncertainty

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

 

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

3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Plant hire, haulage and civil engineering contract income
10,879,923
10,024,772
Sale of development property
450,000
-
Rental income
51,556
56,899
Interest received
31,554
18,856
11,413,033
10,100,527
2023
2022
£
£
Turnover analysed by geographical market
UK
11,413,033
10,100,527
2023
2022
£
£
Other significant revenue
Interest income
3,279
373
Dividends received
352,200
-
Grants received
15,049
-
Miscellaneous other operating income
287,810
252,788
G & A M LAWSON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 19 -
4
Operating profit
2023
2022
Operating profit for the year is stated after charging/(crediting):
£
£
Government grants
(15,049)
-
Depreciation of owned tangible fixed assets
1,524,014
1,358,257
Depreciation of tangible fixed assets held under finance leases
41,100
3,483
Profit on disposal of tangible fixed assets
(223,581)
(19,173)
Impairment of stocks recognised or reversed
173,273
-
0
5
Employees

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

2023
2022
Number
Number
Production
76
77
Administration and support
9
9
Total
85
86

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
3,877,258
3,285,514
Social security costs
364,397
347,914
Pension costs
69,573
62,984
4,311,228
3,696,412
6
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
305,746
305,746

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 4 (2022 - 4).

Remuneration disclosed above include the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
76,437
76,437
G & A M LAWSON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 20 -
7
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
3,279
155
Other interest income
-
0
218
Total interest revenue
3,279
373
Income from fixed asset investments
Income from shares in group undertakings
352,200
-
0
Total income
355,479
373
2023
2022
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
3,279
155
8
Interest payable and similar expenses
2023
2022
£
£
Other finance costs:
Interest on finance leases and hire purchase contracts
14,454
1,338
9
Amounts written off investments
2023
2022
£
£
Changes in the fair value of investment properties
(5,000)
-
10
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
10,870
10,000
For other services
All other accountancy services
14,575
20,196
11
Taxation
2023
2022
£
£
Deferred tax
Origination and reversal of timing differences
455,174
383,384
G & A M LAWSON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
11
Taxation
(Continued)
- 21 -

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2023
2022
£
£
Profit before taxation
2,283,783
1,886,477
Expected tax charge based on the standard rate of corporation tax in the UK of 22.00% (2022: 19.00%)
502,432
358,431
Tax effect of expenses that are not deductible in determining taxable profit
827
(1,321)
Effect of change in corporation tax rate
-
0
470,696
Permanent capital allowances in excess of depreciation
26,011
(448,007)
Depreciation on assets not qualifying for tax allowances
3,388
3,585
Dividend income
(77,484)
-
0
Taxation charge for the year
455,174
383,384
12
Impairments

Impairment tests have been carried out where appropriate and the following impairment losses have been recognised in profit or loss:

2023
2022
Notes
£
£
In respect of:
Stocks
17
173,273
-
0
Recognised in:
Cost of sales
173,273
-
G & A M LAWSON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 22 -
13
Tangible fixed assets
Land and buildings
Plant and machinery
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 October 2022
441,906
22,829,894
84,514
2,534,605
25,890,919
Additions
-
0
3,437,437
1,770
328,500
3,767,707
Disposals
-
0
(1,634,700)
-
0
(306,117)
(1,940,817)
At 30 September 2023
441,906
24,632,631
86,284
2,556,988
27,717,809
Depreciation and impairment
At 1 October 2022
250,134
10,905,446
59,758
1,762,390
12,977,728
Depreciation charged in the year
38,400
1,366,178
12,570
147,966
1,565,114
Eliminated in respect of disposals
-
0
(1,328,447)
-
0
(270,831)
(1,599,278)
At 30 September 2023
288,534
10,943,177
72,328
1,639,525
12,943,564
Carrying amount
At 30 September 2023
153,372
13,689,454
13,956
917,463
14,774,245
At 30 September 2022
191,772
11,924,448
24,756
772,215
12,913,191

The carrying value of land and buildings comprises:

2023
2022
£
£
Freehold
153,372
191,772

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

2023
2022
£
£
Plant and machinery
369,934
411,034
14
Investment property
2023
£
Fair value
At 1 October 2022
325,000
Net gains or losses through fair value adjustments
(5,000)
At 30 September 2023
320,000

There has been no valuation of investment property by an independent valuer.

G & A M LAWSON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 23 -
15
Fixed asset investments
2023
2022
Notes
£
£
Investments in associates
16
36,180
36,180
16
Associates

Details of the company's associates at 30 September 2023 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Lawson's Training Centre Limited
Whinbank Farm, Disington, Workington, Cumbria, CA14 4QH
Ordinary shares
50.00

Lawson's Training Centre Limited

The principal activity of Lawson's Training Centre Limited is the provision of training in the construction and industrial sector.

During the year G & A M Lawson Limited received dividends of £352,200 (2022 - £nil) from Lawson's Training Centre Limited.

17
Stocks
2023
2022
£
£
Raw materials and consumables
50,948
40,456
Work in progress
176,648
306,194
Finished goods and goods for resale
2,769,225
2,470,073
2,996,821
2,816,723
18
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
1,876,343
2,536,641
Corporation tax recoverable
-
0
30,108
Other debtors
53,682
78,485
Prepayments and accrued income
240,098
148,218
2,170,123
2,793,452
G & A M LAWSON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
18
Debtors
(Continued)
- 24 -
2023
2022
Amounts falling due after more than one year:
£
£
Other debtors
413,142
590,042
Total debtors
2,583,265
3,383,494

Details of non-current trade and other debtors

 

£413,142 (2022 - £590,042) of loans to related parties is classified as non-current.

 

 

19
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Obligations under finance leases
21
132,267
131,907
Trade creditors
504,068
611,180
Taxation and social security
88,420
100,305
Other creditors
112,899
140,570
Accruals and deferred income
244,542
213,456
1,082,196
1,197,418
20
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Obligations under finance leases
21
126,468
253,399
21
Finance lease obligations
2023
2022
Future minimum lease payments due under finance leases:
£
£
Within one year
132,267
131,907
In two to five years
126,468
253,399
258,735
385,306

Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 3 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

G & A M LAWSON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 25 -
22
Provisions for liabilities
2023
2022
£
£
100,000
100,000
Movements on provisions:
£
At 1 October 2022 and 30 September 2023
100,000

The company has an obligation to pay a settlement to a customer, estimated at £100,000.

23
Deferred taxation

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

Liabilities
Liabilities
2023
2022
Balances:
£
£
Accelerated capital allowances
2,756,735
1,715,638
Tax losses
(340,322)
(225,099)
Change in tax rate
-
470,697
2,416,413
1,961,236
2023
Movements in the year:
£
Liability at 1 October 2022
1,961,236
Charge to profit or loss
455,177
Liability at 30 September 2023
2,416,413

The deferred tax liability set out above relates to accelerated capital allowances and tax losses .

 

G & A M LAWSON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 26 -
24
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
69,573
62,984

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund. An amount of £10,896 (2022 - £7,138) is included in other creditors at the year end and is payable to the scheme.

25
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
120,000
120,000
120,000
120,000

Rights, preferences and restrictions

Ordinary shares have the following rights, preferences and restrictions:

The ordinary shares have full rights in respect of voting rights, dividend rights, and the right to participate in capital on winding up. The shares are not redeemable shares.

26
Related party transactions
Transactions with related parties

There are five separate companies under common control which have had transactions with G & A M Lawson Limited during the course of the financial year.

 

The transactions were for the purchase and sale of goods and services.

 

G & A M Lawson Limited also provides loan finance to three of the connected companies. Interest on loans is normally charged at bank base rate plus 1% and is payable either monthly or quarterly in arrears. The loans are unsecured.

Sales
Sales
Purchases
Purchases
2023
2022
2023
2022
£
£
£
£
Entities with control, joint control or significant influence over the company
252,668
353,437
471,935
258,562
Associates
113,916
121,042
60,221
45,138
2023
2022
Amounts due to related parties
£
£
Entities with control, joint control or significant influence over the company
109,904
62,465
Associates
4,111
1,404
G & A M LAWSON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
26
Related party transactions
(Continued)
- 27 -

The following amounts were outstanding at the reporting end date:

2023
2022
Amounts due from related parties
£
£
Entities with control, joint control or significant influence over the company
592,829
1,138,009
Associates
21,511
18,479
27
Cash generated from operations
2023
2022
£
£
Profit for the year after tax
1,828,609
1,503,093
Adjustments for:
Taxation charged
455,174
383,384
Finance costs
14,454
1,338
Investment income
(355,479)
(373)
Gain on disposal of tangible fixed assets
(223,581)
(19,173)
Fair value loss on investment properties
5,000
-
0
Depreciation and impairment of tangible fixed assets
1,565,114
1,361,740
Increase in provisions
-
0
100,000
Movements in working capital:
Increase in stocks
(180,098)
(795,376)
Decrease/(increase) in debtors
770,121
(106,046)
Decrease in creditors
(115,582)
(52,883)
Cash generated from operations
3,763,732
2,375,704
28
Analysis of changes in net funds
1 October 2022
Cash flows
30 September 2023
£
£
£
Cash at bank and in hand
1,207,830
805,710
2,013,540
Obligations under finance leases
(385,306)
126,571
(258,735)
822,524
932,281
1,754,805
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