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Registration number: 00843899

G.R. Lane Health Products Limited

Annual Report and Financial Statements

for the Year Ended 31 July 2023

 

G.R. Lane Health Products Limited

Contents

Company Information

1

Strategic Report

2 to 3

Directors' Report

4

Statement of Directors' Responsibilities

5

Independent Auditor's Report

6 to 8

Profit and Loss Account

9

Statement of Comprehensive Income

10

Balance Sheet

11

Statement of Changes in Equity

12

Notes to the Financial Statements

13 to 28

 

G.R. Lane Health Products Limited

Company Information

Directors

J M Groves

P Whatley

J R Groves

M Horan

A Kelly

T E Howard

E M Hardy

R A Davies

M R Elton

Registered office

Sisson Road
Gloucester
GL2 0GR

Solicitors

Harrison Clark Rickerbys Limited
Ellenborough House
Wellington Street
Cheltenham
GL50 1YD

Bankers

Svenska Handelsbanken AB
1145 Regent Court
The Square
Gloucester Business Park
Gloucester
GL3 4AD

Auditors

Hazlewoods LLP
Windsor House
Bayshill Road
Cheltenham
GL50 3AT

 

G.R. Lane Health Products Limited

Strategic Report for the Year Ended 31 July 2023

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

Principal activity

The principal activity of the company is that of the manufacture and distribution of Over the Counter pharmaceutical products, nutritional supplements and cosmetics.

Fair review of the business

Market conditions and the economic environment continue to be challenging and the directors have been reacting accordingly to ensure that the financial resources available to the company are sufficient to support the company's business strategy.

On 31 July 2023, the G R Lane group underwent an asset re-organisation which involved the transfer of fixed assets to its parent, G R Lane Holdings Limited. The results for the year, which are set out in the profit and loss account and balance sheet are noted below:

2023

2022

£

£

Pre-tax profit before exceptional costs

2,009,455

3,497,242

Exceptional costs

(2,860,358)

-

Pre-tax (loss) profit after exceptional costs

(850,903)

3,497,242

The exceptional costs relate to the insurance cost of de-risking the company's defined benefit pension scheme of £1,850,000 (2022 - £nil) and a non cash book loss incurred in transferring assets to the company's parent as part of a group restructuring exercise. Following this exercise the company's net assets at 31 July amounted to £6,010,002 (2022 - £13,228,449).

Key performance indicators

Given the nature of the business, the Directors are of the opinion that key performance indicators are a valuable tool for driving continuous improvement across all aspects of the business. The Company uses a number of key performance indicators to monitor and improve the performance of the business. Indicators are reviewed and altered to meet changes both in the internal and external environments and include measures relating to Financial Performance, Health and Safety, Employee Satisfaction, Customer Satisfaction, Quality and, Environmental.

The Company’s key financial indicators during the year included the measurement of turnover, gross profit margin, EBITDA and net cash generation which are presented in the Profit and Loss Account and Balance sheet. Indicators are reviewed on a daily, weekly and monthly basis, with a tiered escalation system in place for simplified communications and to ensure changes in internal and external environments can be reacted to in a timely manner.

Principal risks and uncertainties

The management of the company and the execution of the company's strategy are subject to a number of risks. The key business risks and uncertainties affecting the company are considered to relate to the general economic climate and competition from other manufacturers of complimentary products.

Brexit was one of the most significant economic events for the UK, with its final effects still ongoing. The directors continuously assess the possible risks using a framework that considers both probability and impact on the business.

Financial instruments

Financial risk management is an integral part of the way the company is managed. The overall aim of the company's financial risk policies is to minimise potential adverse effects on financial performance and net assets.

The company is exposed to the usual credit and cashflow risk associated with selling on credit and manages this through credit control procedures and maintains credit insurance cover on major customers.

Short term bank deposits are only placed with reputable blue chip banks.

The company's policy on liquidity risk is to ensure that sufficient funds for ongoing operations are available.

 

G.R. Lane Health Products Limited

Strategic Report for the Year Ended 31 July 2023

Going concern and liquidity risk

In accordance with Financial Reporting Council's 'Going Concern and Liquidity Risk: Guidance for Directors of UK Companies 2006' the directors of all companies are now required to provide disclosures regarding the adoption of the going concern basis of accounting.

The company has sufficient financial resources available and is currently trading profitably and generating cash. The directors have prepared forecasts for the next 12 months that indicate that this trend will continue. The directors believe that the company has sufficient resources to continue in operational existence for the foreseeable future and have continued to adopt the going concern basis in preparing the financial statements.

Future developments

The external commercial environment remains challenging during 2023/24 and the directors have reacted to changes in the circumstances in trading conditions where appropriate to do so. Those actions and the ongoing application of the businesses strategy are expected to be sufficient to ensure the continuity of the business.

Approved by the Board on 28 February 2024 and signed on its behalf by:


J M Groves
Director

 

G.R. Lane Health Products Limited

Directors' Report for the Year Ended 31 July 2023

The directors present their report and the financial statements for the year ended 31 July 2023.

Directors of the company

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

J M Groves

P Whatley

J R Groves

M Horan

A Kelly

T E Howard

E M Hardy

R A Davies

The following director was appointed after the year end:

M R Elton (appointed 1 August 2023)

Disclosure of information to the auditors

Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.

Reappointment of auditors

Hazlewoods LLP have expressed their willingness to continue in office.

Approved by the Board on 28 February 2024 and signed on its behalf by:


J M Groves
Director

 

G.R. Lane Health Products Limited

Statement of Directors' Responsibilities

The directors are responsible for preparing the Directors Report and Strategic 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:

select suitable accounting policies and apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

state whether applicable UK Accounting Standards has been followed, subject to any material departures disclosed and explained in the financial statements; and

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the 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.R. Lane Health Products Limited

Independent Auditor's Report

Opinion

We have audited the financial statements of G.R. Lane Health Products Limited (the 'company') for the year ended 31 July 2023, which comprise the Profit and Loss Account, Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

give a true and fair view of the state of the company's affairs as at 31 July 2023 and of its loss for the year then ended;

have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor 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 original financial statements were authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinion on other matter prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

the information given in the Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report and the Directors' Report.

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

 

G.R. Lane Health Products Limited

Independent Auditor's Report

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.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page 5, 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.

Extent to which the audit was capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We considered the nature of the company’s industry and its control environment and reviewed the company’s documentation of their policies and procedures relating to fraud and compliance with laws and regulations. We also enquired of management about their own identification and assessment of the risks of irregularities.

We obtained an understanding of the legal and regulatory framework that the company operates in and identified the key laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements, including the UK Companies Act and tax legislation, and, those that do not have a direct effect on the financial statements but compliance with which may be fundamental to the company’s ability to operate or to avoid a material penalty.

We discussed among the audit engagement team regarding the opportunities and incentives that may exist within the organisation for fraud and how and where fraud might occur in the financial statements.

In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override of controls. In addressing the risk of fraud through management override of controls, we tested the appropriateness of journal entries and other adjustments; assessed whether the judgements made in accounting estimates are indicative of a potential bias; and evaluated the business rationale of any significant transactions that are unusual or outside the normal course of business.

In addition to the above, our procedures to respond to the risks identified included the following:

reviewing financial statement disclosures by testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;

performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatements due to fraud;

enquiring of management concerning actual and potential litigation and claims and instances of non-compliance with laws and regulations; and

reading minutes of meetings of those charged with governance.

 

G.R. Lane Health Products Limited

Independent Auditor's Report

Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.

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

Use of this 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.





Jon Cartwright (Senior Statutory Auditor)
For and on behalf of Hazlewoods LLP, Statutory Auditor

Windsor House
Bayshill Road
Cheltenham
GL50 3AT

28 February 2024

 

G.R. Lane Health Products Limited

Profit and Loss Account
for the Year Ended 31 July 2023

Note

2023
£

2022
£

Turnover

3

24,301,868

23,275,962

Cost of sales

 

(8,857,839)

(8,285,957)

Gross profit

 

15,444,029

14,990,005

Distribution costs

 

(391,412)

(414,134)

Administrative expenses

 

(14,372,668)

(14,812,025)

Operating profit (loss) before exceptional administrative expenses and other operating income

 

679,949

(236,154)

Administrative expenses - exceptional

5

(2,860,116)

-

Other operating income

4

1,516,660

1,315,693

Operating (loss)/profit

5

(663,507)

1,079,539

Income from shares in group undertakings

 

-

2,600,000

Other interest receivable and similar income

29,524

-

Interest payable and similar charges

6

(216,920)

(182,297)

(Loss)/profit before tax

 

(850,903)

3,497,242

Taxation

9

425,528

(121,593)

(Loss)/profit for the financial year

 

(425,375)

3,375,649

The above results were derived from continuing operations.

 

G.R. Lane Health Products Limited

Statement of Comprehensive Income
for the Year Ended 31 July 2023

2023
 £

2022
 £

(Loss) profit for the year

(425,375)

3,375,649

Unrealised surplus on revaluation of defined benefit pension liability

(30,651)

(35,953)

Remeasurement of net defined benefit pension liability

(585,099)

1,140,233

(615,750)

1,104,280

Total recognised gains and losses relating to the year

(1,041,125)

4,479,929

 

G.R. Lane Health Products Limited

(Registration number: 00843899 )
Balance Sheet
as at 31 July 2023

Note

2023
 £

2022
 £

Fixed assets

 

Intangible assets

10

-

6,196,431

Tangible assets

11

-

5,152,545

Investments

12

-

5,491,416

 

-

16,840,392

Current assets

 

Stocks

13

7,018,297

5,065,063

Debtors

14

5,840,320

4,298,578

Cash at bank and in hand

1,946,558

4,216,589

 

14,805,175

13,580,230

Creditors: amounts falling due within one year

15

(6,710,785)

(13,417,810)

Net current assets

 

8,094,390

162,420

Total assets less current liabilities

 

8,094,390

17,002,812

Creditors: amounts falling due after more than one year

15

(2,084,388)

(2,948,265)

Provisions for liabilities

9

-

(691,848)

Net assets excluding pension liability

 

6,010,002

13,362,699

Net pension liability

19

-

(134,250)

Net assets

 

6,010,002

13,228,449

Capital and reserves

 

Called up share capital

17

10,002

10,002

Share premium reserve

-

2,240,000

Revaluation reserve

-

1,935,774

Pension scheme reserve

-

(134,250)

Retained earnings

6,000,000

9,176,923

Total equity

 

6,010,002

13,228,449

Approved and authorised by the Board on 28 February 2024 and signed on its behalf by:
 


J M Groves
Director

 

G.R. Lane Health Products Limited

Statement of Changes in Equity
for the Year Ended 31 July 2023

Share capital
£

Share premium
£

Revaluation reserve
£

Pension scheme reserve
£

Retained earnings
£

Total
£

At 1 August 2022

10,002

2,240,000

1,935,774

(134,250)

9,176,923

13,228,449

Loss for the year

-

-

-

-

(425,375)

(425,375)

Other comprehensive income

-

-

-

-

(615,750)

(615,750)

Dividends

-

-

-

-

(6,177,322)

(6,177,322)

Other share premium reserve movements

-

(2,240,000)

-

-

2,240,000

-

Revaluation Reserve - transfer of realised profit

-

-

(1,935,774)

-

1,935,774

-

Transfer from pension scheme reserve

-

-

-

134,250

(134,250)

-

At 31 July 2023

10,002

-

-

-

6,000,000

6,010,002

Share capital
£

Share premium
£

Revaluation reserve
£

Pension scheme reserve
£

Retained earnings
£

Total
£

At 1 August 2021

10,002

2,240,000

1,957,521

(1,711,530)

9,252,527

11,748,520

Profit for the year

-

-

-

-

3,375,649

3,375,649

Other comprehensive income

-

-

-

-

1,104,280

1,104,280

Dividends

-

-

-

-

(3,000,000)

(3,000,000)

Revaluation reserve - transfer to realised profit

-

-

(21,747)

-

21,747

-

Transfer from pension scheme reserve

-

-

-

1,577,280

(1,577,280)

-

At 31 July 2022

10,002

2,240,000

1,935,774

(134,250)

9,176,923

13,228,449

 

G.R. Lane Health Products Limited

Notes to the Financial Statements
for the Year Ended 31 July 2023

 

1

General information

The company is a private company limited by shares incorporated and domiciled in England and Wales.

The address of its registered office is:
Sisson Road
Gloucester
GL2 0GR

 

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

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

Basis of preparation

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

The company is exempt from preparing a cash flow statement as 90% or more of the voting rights are held within the group.

The presentational currency of the financial statements is Pounds Sterling, being the functional currency of the primary economic environment in which the company operates. Monetary amounts in these financial statements are rounded to the nearest Pound.

Name of parent of group

These financial statements are consolidated in the financial statements of G R Lane Holdings Limited.

The financial statements of G R Lane Holdings Limited may be obtained from the company's registered office..

Going concern

The company has sufficient financial resources available and is currently trading profitably and generating cash. The directors have prepared forecasts for the next 12 months that indicate that this trend will continue. The directors believe that the company has sufficient resources to continue in operational existence for the foreseeable future and have continued to adopt the going concern basis in preparing the financial statements.

Judgements and estimation uncertainty

No significant judgements have been made by management in preparing these financial statements.

The company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts and after eliminating sales within the company.

The company recognises revenue when: a) the amount of revenue can be reliably measured; b) it is probable that future economic benefits will flow to the entity; and c) specific criteria have been met for each of the company's activities.

 

G.R. Lane Health Products Limited

Notes to the Financial Statements
for the Year Ended 31 July 2023

Foreign currency transactions and balances

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rates prevailing on the initial transaction dates.

Non- monetary items measured in terms of historic cost in a foreign currency are not translated.

Tax

The corporation tax expense for the period comprises current and deferred tax. Corporation tax is recognised in the profit and loss account, except that a charge attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current corporation tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Deferred tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements and on unused tax losses or tax credits in the company. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.

Tangible assets

Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

The company has adopted a policy of revaluation in respect of its freehold land and buildings.

Depreciation

Depreciation is provided at rates calculated to write off the cost or valuation less estimated residual value of each asset over its expected useful life, as follows:

Asset class

Depreciation method and rate

Land and buildings freehold

Land - nil, Buildings - 2% straight line basis

Plant and machinery

10 - 20% straight line basis

Fixtures, fittings and equipment

10 - 33% straight line basis

Intangible assets

Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the company’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

Licenses, knowhow and trademarks acquired in a business combination are recognised at fair value at the acquisition date.

Licenses, knowhow and trademarks have a finite useful life and are carried at cost less accumulated amortisation and any accumulated impairment losses.

Amortisation

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

Asset class

Amortisation method and rate

Goodwill

5-10% straight line

Licences, knowhow and trade marks

5-10% straight line

 

G.R. Lane Health Products Limited

Notes to the Financial Statements
for the Year Ended 31 July 2023

Research and development
Research expenditure is written off to the profit and loss account in the year in which it is incurred. Development expenditure is written off in the same way unless the directors are satisfied as to the technical, commercial and financial viability of individual projects. In this situation, the expenditure is deferred and amortised over the period during which the company is expected to benefit.

Investments

Fixed asset investments are stated at cost less provision for diminution in value.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade debtors

Trade debtors are amounts due from customers for merchandise sold in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. All debtors are repayable within one year and are hence included at the undiscounted amount of cash expected to be received. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using a standard cost method.

The cost of finished goods comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and are repayable within one year and hence are included at the undiscounted amount of cash expected to be paid.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Profit and Loss Account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Leases

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

Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the balance sheet as a finance lease obligation.
Lease payments are apportioned between finance costs in the Profit and Loss Account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

 

G.R. Lane Health Products Limited

Notes to the Financial Statements
for the Year Ended 31 July 2023

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Dividends

Dividend distributions to the company’s shareholders are recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

Defined benefit pension obligation

The pension costs are assessed using the projected unit credit method. The cost of providing pensions is charged to the profit and loss account so as to spread the regular costs over the service lives of the employees. The pension obligation is measured at the present value of the estimated future cash flows using interest rates on government securities that have terms to maturity approximating the terms of the related liabilities. The assumptions of life expectancy, salary increase and asset valuations reflect historical experience and current trends.

Financial instruments

Classification
Financial instruments are classified and accounted for according to the substance of the contractual arrangement, as financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. Where shares are issued, any component that creates a financial liability of the company is presented as a liability on the balance sheet. The corresponding dividends relating to the liability component are charged as interest expenses in the profit and loss account.
 
Recognition and measurement
All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

Financial assets and liabilities are only offset in the balance sheet when, and only when, there exists a legally enforceable right to set off the recognised amounts and the company intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.

 
Impairment
Assets, other than those measured at fair value, are assessed for indicators of impairment at each balance sheet date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss as described below.

Non-financial assets
An asset is impaired where there is objective evidence that, as a result of one or more events that occurred after initial recognition, the estimated recoverable value of the asset has been reduced. The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use.

Where indicators exist for a decrease in impairment loss, and the decrease can be related objectivity to and event occurring after the impairment was recognised, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised.
 

 

G.R. Lane Health Products Limited

Notes to the Financial Statements
for the Year Ended 31 July 2023

Financial assets
For financial assets carried at amortised cost, the amount of an impairment is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the financial asset’s original effective interest rate.

For financial assets carried at cost less impairment, the impairment loss is the difference between the asset’s carrying amount and the best estimate of the amount that would be received for the asset if it were to be sold at the reporting date.

Where indicators exist for a decrease in impairment loss, and the decrease can be related objectively to an event occurring after the impairment was recognised, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired financial asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised.

 

3

Turnover

The analysis of the company's revenue for the year by market is as follows:

2023
 £

2022
 £

UK

22,046,365

21,272,897

Europe

300,961

534,395

Rest of world

1,954,542

1,468,670

24,301,868

23,275,962

The company's revenue derives entirely from the sale of goods.

 

4

Other operating income

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

2023
£

2022
£

Government grants

-

5,192

Other operating income

1,516,660

1,310,501

1,516,660

1,315,693


Coronavirus Job Retention Scheme
The company received grants in relation to the Coronavirus Job Retention Scheme (CJRS) which are accounted as revenue grant. £nil (2022 - £5,192) was credited to the profit and loss account in relation to this grant.

Other operating income
Other operating income for the year ended 31 July 2023 consists of £957,606 (2022 - £754,800) in relation to management charges received from Jakemans (Confectioners) Limited, a company that is part of the same group as G.R. Lane Health Products Limited, as well as £559,054 (2022 - £555,701) in relation to royalties receivable.

 

G.R. Lane Health Products Limited

Notes to the Financial Statements
for the Year Ended 31 July 2023

 

5

Operating (loss) profit

Arrived at after charging:

2023
 £

2022
 £

Operating lease expense

238,135

204,533

Auditor's remuneration - the audit of the company's annual accounts

26,365

24,542

Foreign exchange (gains)/losses

6,327

13,217

Depreciation expense

594,849

539,952

Amortisation expense

1,044,088

1,087,262

Administrative expenses - exceptional

Exceptional administrative expenses relate to a book loss on disposal of property, plant and equipment of £1,010,116, that arose on the transfer of assets to the company's parent company, G R Lane Holdings Limited, as part of the group asset re-organisation and £1,850,000 which relates to obligated costs of the company in relation to de-risking its defined benefit pension scheme.

 

6

Interest payable and similar expenses

2023
£

2022
£

Interest on bank overdrafts and borrowings

216,920

182,076

Interest on obligations under finance leases and hire purchase contracts

-

221

216,920

182,297

 

7

Staff costs

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

2023
 £

2022
 £

Wages and salaries

7,118,472

5,970,967

Social security costs

679,937

592,487

Pension costs

403,822

1,600,439

8,202,231

8,163,893

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

2023
 No.

2022
 No.

Administration and support

103

110

Production

74

61

177

171

 

8

Directors' remuneration

The directors' remuneration for the year was as follows:

2023
£

2022
£

Remuneration

838,080

679,583

Contributions paid to money purchase schemes

80,706

99,002

918,786

778,585

 

G.R. Lane Health Products Limited

Notes to the Financial Statements
for the Year Ended 31 July 2023

During the year the number of directors who were receiving benefits and share incentives was as follows:

2023
No.

2022
No.

Accruing benefits under money purchase pension scheme

5

6

In respect of the highest paid director:

2023
£

2022
£

Remuneration

203,903

163,812

 

9

Corporation tax

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

2023
£

2022
£

Current taxation

UK corporation tax

233,662

37,827

UK corporation tax adjustment to prior periods

-

16,028

233,662

53,855

Deferred taxation

Arising from origination and reversal of timing differences

(659,190)

67,738

Tax (receipt)/expense in the profit and loss account

(425,528)

121,593

The tax on profit before tax for the year is lower than the standard rate of corporation tax in the UK (2022 - lower than the standard rate of corporation tax in the UK) of 21.01% (2022 - 19%).

The differences are reconciled below:

2023
£

2022
£

(Loss)/profit before tax

(850,903)

3,497,242

Corporation tax at standard rate

(178,736)

664,476

Effect of revenues exempt from taxation

(157,541)

(583,870)

UK deferred tax (credit)/expense relating to changes in tax rates or laws

(96,127)

244

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

-

16,028

Other tax effects for reconciliation between accounting profit and tax expense (income)

6,876

24,715

Total tax (credit)/charge

(425,528)

121,593

Analysis of deferred tax

2023

Asset
£

Short term timing differences

10,534

Pension scheme

462,500

473,034

2022

Liability
£

Difference between accumulated depreciation and amortisation and capital allowances

186,156

Deferred tax on revaluation of property

505,692

691,848

 

G.R. Lane Health Products Limited

Notes to the Financial Statements
for the Year Ended 31 July 2023

 

10

Intangible assets

Goodwill
 £

Licences, knowhow and trade marks
£

Total
£

Cost or valuation

At 1 August 2022

1,404,439

14,978,655

16,383,094

Transfers

(1,404,439)

(14,978,655)

(16,383,094)

At 31 July 2023

-

-

-

Amortisation

At 1 August 2022

1,329,439

8,857,224

10,186,663

Amortisation charge

25,000

1,019,088

1,044,088

Transfers

(1,354,439)

(9,876,312)

(11,230,751)

At 31 July 2023

-

-

-

Carrying amount

At 31 July 2023

-

-

-

At 31 July 2022

75,000

6,121,431

6,196,431

On 31 July 2023, the company transferred its intangible assets to its parent company, G R Lane Holdings Limited.

 

11

Tangible assets

Freehold land and buildings
£

Plant and machinery
£

Fixtures and fittings
£

Motor vehicles
 £

Total
£

Cost or valuation

At 1 August 2022

4,000,000

5,762,247

1,459,575

35,133

11,256,955

Additions

-

581,830

175,336

275,712

1,032,878

Disposals

-

(63,803)

-

(67,995)

(131,798)

Transfers

(4,000,000)

(6,280,274)

(1,634,911)

(242,850)

(12,158,035)

At 31 July 2023

-

-

-

-

-

Depreciation

At 1 August 2022

400,000

4,450,837

1,247,130

6,443

6,104,410

Charge for the year

66,667

342,032

143,765

42,385

594,849

Eliminated on disposal

-

(58,446)

-

(21,361)

(79,807)

Transfers

(466,667)

(4,734,423)

(1,390,895)

(27,467)

(6,619,452)

At 31 July 2023

-

-

-

-

-

Carrying amount

At 31 July 2023

-

-

-

-

-

At 31 July 2022

3,600,000

1,311,410

212,445

28,690

5,152,545

 

G.R. Lane Health Products Limited

Notes to the Financial Statements
for the Year Ended 31 July 2023

Revaluations
The freehold land and buildings class of fixed assets was valued at £4,000,000 on 31 July 2020 by Ash & Co. Chartered Surveyors who are external to the company. The basis of this valuation was market value. This class of assets has a current balance sheet value (prior to the asset being transferred to its parent company) of £3,533,333 (2022 - £3,600,000) and a carrying amount at historical cost of £2,372,790 (2022 - £2,372,790). The depreciation on this historical cost is £888,241 (2022 - £978,079).

On 31 July 2023, the company transferred its tangible assets to its parent company, G R Lane Holdings Limited.

 

12

Investments

Subsidiaries

£

Cost

At 1 August 2022

5,491,416

Disposals

(5,491,416)

At 31 July 2023

-

Details of undertakings

Details of the investments (including principal place of business of unincorporated entities) in which the company holds 20% or more of the nominal value of any class of share capital are as follows:

Undertaking

Registered office

Holding

Proportion of voting rights and shares held

     

2023

2022

Subsidiary undertakings

Jakemans (Confectioners) Limited

England

Ordinary

0%

100%

         

Lanes Brands Incorporated

U.S.A.

Ordinary

0%

100%

         

Supersun Nutrition Limited

England

Ordinary

0%

100%

         

Laneshealth Limited

England

Ordinary

0%

100%

         

Thos. Symington Limited

Scotland

Ordinary

0%

100%

         

Sarakan Limited

England

Ordinary

0%

100%

         

The principal activity of Jakemans (Confectioners) Limited is the manufacture and retail of confectionery.

The principal activity of Lanes Brands Incorpoarted is the retail of confectionery.

Supersun Nutrition Limited, Laneshealth Limited, Thos. Symington Limited and Sarakan Limited are all dormant companies.

On 31 July 2023, the company transferred its investment assets to its parent company, G R Lane Holdings Limited.

 

13

Stocks

2023
 £

2022
 £

Raw materials

3,127,071

2,804,420

Finished goods

3,891,226

2,260,643

7,018,297

5,065,063

 

G.R. Lane Health Products Limited

Notes to the Financial Statements
for the Year Ended 31 July 2023

 

14

Debtors

2023
 £

2022
 £

Trade debtors

3,743,489

3,820,724

Amounts owed by group undertakings

1,130,604

-

Other debtors

8,300

109,254

Prepayments and accrued income

484,893

368,600

Deferred tax assets

473,034

-

5,840,320

4,298,578

 

15

Creditors

Note

2023
 £

2022
 £

Due within one year

 

Loans and borrowings

16

997,460

1,838,601

Trade creditors

 

1,507,483

1,207,672

Amounts owed to group undertakings

 

-

8,590,332

Social security and other taxes

 

406,251

154,560

Other creditors

 

1,878,366

-

Accruals and deferred income

 

1,718,018

1,622,417

Corporation tax liability

9

203,207

4,228

 

6,710,785

13,417,810

Due after one year

 

Loans and borrowings

16

2,084,388

2,948,265

 

16

Loans and borrowings

2023
£

2022
£

Current loans and borrowings

Bank borrowings

968,600

1,833,844

HP and finance lease liabilities

28,860

4,757

997,460

1,838,601

2023
£

2022
£

Non-current loans and borrowings

Bank borrowings

2,043,503

2,948,265

HP and finance lease liabilities

40,885

-

2,084,388

2,948,265

 

G.R. Lane Health Products Limited

Notes to the Financial Statements
for the Year Ended 31 July 2023

Bank borrowings

Bank loan 1 is denominated in £ sterling with an interest rate of 5.66%, and the final instalment is due on 22 December 2024. The carrying amount at year end is £639,318 (2022 - £1,036,647).

Bank loan 2 is denominated in £ sterling with an interest rate of 7.06%, and the final instalment is due on 12 December 2022. The carrying amount at year end is £nil (2022 - £845,462).

The loans are secured by a debenture over the assets and undertakings of G.R. Lane Health Products Limited, G.R. Lane Holdings Limited and Jakemans (Confectioners) Limited, a first legal mortgage over the freehold premises and an unlimited joint and several guarantee from guarantors.

In May 2021, the company obtained a Coronavirus Business Interuption Loan of £3,000,000. The loan is denominated in £ sterling with an interest rate of 2.43% plus the bank base rate. Capital repayments commence in May 2022 and the final instalment is due in April 2026. The carrying amount at the year end is £2,372,785 (2022 - £2,900,000).

 

17

Share capital

Allotted, called up and fully paid shares

 

2023

2022

 

No.

£

No.

£

Ordinary shares of £1 each

10,002

10,002

10,002

10,002

         
 

18

Dividends

2023
 £

2022
 £

Dividends paid

6,177,322

3,000,000

 

G.R. Lane Health Products Limited

Notes to the Financial Statements
for the Year Ended 31 July 2023

 

19

Pension and other schemes

Defined benefit pension schemes
 

G R Lane Health Products Limited Pension Scheme

The company operated a pension scheme that provide defined benefits based on final pensionable pay. This scheme was closed to future accrual of benefit on 1 August 2012. The assets of the scheme are held separately from those of the company, being invested with investment managers. Contributions to the scheme are charged to the profit and loss account so as to spread the cost of pensions over employees' working lives with the company. The pension cost and assets are assessed by a firm of independent consulting actuaries on the basis of triennial valuations using the projected unit method.

The date of the most recent comprehensive actuarial valuation was 31 July 2020. The actuary concluded that the resources of the scheme were likely, in the normal course of events, to meet 82% of the liabilities of the scheme as they fell due. This valuation and the calculation of scheme liabilities for FRS 102 reporting purposes in these financial statements reflect the decision to close the scheme to future accrual of benefits on 1 August 2012.

The total cost relating to defined benefit schemes for the year recognised in profit or loss as an expense was £177,000 (2022 - £127,000).

Reconciliation of scheme assets and liabilities to assets and liabilities recognised

The amounts recognised in the balance sheet are as follows:

2023
£

2022
£

Fair value of scheme assets

13,753,000

15,719,000

Present value of defined benefit obligation

(10,234,000)

(12,959,000)

3,519,000

2,760,000

Effect of asset ceiling

(3,519,000)

(2,760,000)

Defined benefit pension scheme surplus/(deficit)

-

-

Defined benefit obligation

Changes in the defined benefit obligation are as follows:

2023
£

Present value at start of year

12,959,000

Interest cost

449,000

Benefits Paid

(764,000)

Experience gains (losses) on defined benefit obligations

1,037,000

Change in financial assumptions

(3,447,000)

Present value at end of year

10,234,000

 

G.R. Lane Health Products Limited

Notes to the Financial Statements
for the Year Ended 31 July 2023

Fair value of scheme assets

Changes in the fair value of scheme assets are as follows:

2023
£

Fair value at start of year

15,719,000

Interest income

561,000

Return on plan assets, excluding amounts included in interest income/(expense)

(2,407,000)

Employer contributions

709,000

Benefits paid

(764,000)

Administration costs

(65,000)

Fair value at end of year

13,753,000

Analysis of assets

The major categories of scheme assets are as follows:

2023
%

2022
%

Cash and cash equivalents

3

6

Equity instruments

-

64

Debt instruments

97

19

Property

-

11

100

100

Return on scheme assets

2023
£

2022
£

Return on scheme assets

(1,846,000)

622,000

The pension scheme has not invested in any of the company's own financial instruments or in properties or other assets used by the company.

Principal actuarial assumptions

The principal actuarial assumptions at the balance sheet date are as follows:

2023
%

2022
%

Discount rate

5.30

3.60

Future pension increases

2.60

3.50

Inflation

2.60

2.90

 

G.R. Lane Health Products Limited

Notes to the Financial Statements
for the Year Ended 31 July 2023


G R Lane Health Products Limited Executive Pension Scheme

The company operates a defined contribution scheme for certain executive staff members. The assets of the scheme are held separately from those of the company.

However, the company has guaranteed that some members of this defined contribution scheme will receive the same benefits, which they would have had, had they been members of the defined benefits scheme.

Contributions to the scheme are charged to the profit and loss account so as to spread the cost of pensions over employees' working lives with the company.

The total cost relating to defined benefit schemes for the year recognised in profit or loss as an expense was £31,000 (2022 - £28,000).
 

Reconciliation of scheme assets and liabilities to assets and liabilities recognised

The amounts recognised in the balance sheet are as follows:

2023
£

2022
£

Fair value of scheme assets

3,072,000

3,294,000

Present value of defined benefit obligation

(2,901,000)

(3,473,000)

171,000

(179,000)

Related deferred tax asset

-

44,750

Effect of asset ceiling

(171,000)

-

Defined benefit pension scheme deficit

-

(134,250)

Defined benefit obligation

Changes in the defined benefit obligation are as follows:

2023
£

Present value at start of year

3,473,000

Current service cost

10,000

Interest cost

111,000

Benefits paid

(107,000)

Experience gains (losses) on defined benefit obligations

(444,000)

Change in financial assumptions

(142,000)

Present value at end of year

2,901,000

 

G.R. Lane Health Products Limited

Notes to the Financial Statements
for the Year Ended 31 July 2023

Fair value of scheme assets

Changes in the fair value of scheme assets are as follows:

2023
£

Fair value at start of year

3,294,000

Interest income

105,000

Return on plan assets, excluding amounts included in interest income/(expense)

(230,000)

Employer contributions

25,000

Benefits paid

(107,000)

Administration costs

(15,000)

Fair value at end of year

3,072,000

Analysis of assets

The major categories of scheme assets are as follows:

2023
%

2022
%

Cash and cash equivalents

7

9

Equity instruments

69

63

Debt instruments

24

28

100

100

Return on scheme assets

2023
£

2022
£

Return on scheme assets

(125,000)

(65,000)

The pension scheme has not invested in any of the company's own financial instruments or in properties or other assets used by the company.

Principal actuarial assumptions

The principal actuarial assumptions at the balance sheet date are as follows:

2023
%

2022
%

Discount rate

5.35

3.25

Future pension increases

2.70

2.90

Inflation

3.50

3.70

 

G.R. Lane Health Products Limited

Notes to the Financial Statements
for the Year Ended 31 July 2023

 

20

Obligations under leases

The total of future minimum lease payments is as follows:

2023
£

2022
£

Not later than one year

55,365

104,266

Later than one year and not later than five years

48,653

31,166

104,018

135,432

The amount of non-cancellable operating lease payments recognised as an expense during the year was £131,970 (2022 - £204,090).

 

21

Related party transactions

Summary of transactions with key management

Key management personnel are considered to be the directors of the company and key management personnel compensation is disclosed in note 8 to the financial statements.
 

Related parties
The company has taken advantage of the exemption from disclosing transactions with other members of the group.

 

22

Parent and ultimate parent undertaking

The company is controlled by G.R. Lane Holdings Limited, the ultimate parent undertaking.

G.R Lane Health Products Limited is a wholly owned subsidiary of G.R. Lane Holdings Limited.

G.R Lane Holdings Limited is registered in England and Wales.

G.R. Lane Holdings Limited prepare consolidated financial statements and copies can be obtained from the registered office.