Company registration number SC191166 (Scotland)
LYON & TURNBULL LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023
LYON & TURNBULL LIMITED
COMPANY INFORMATION
Directors
Mr C Armour
Mr N Curnow
Mr J Mackie
Mr G Strang
Mr P Roberts
Ms A Dove
Mr R Brown
(Appointed 9 March 2023)
Mr I Mackinnon
(Appointed 9 March 2023)
Mr P Smith
(Appointed 9 March 2023)
Mr W A Bremner
(Appointed 5 December 2023)
Secretary
Mr W A Bremner
Company number
SC191166
Registered office
33 Broughton Place
Edinburgh
EH1 3RR
Auditor
MHA
Chartered Accountants
6 St Colme Street
Edinburgh
EH3 6AD
LYON & TURNBULL LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 6
Profit and loss account
7
Balance sheet
8
Statement of changes in equity
9
Statement of cash flows
10
Notes to the financial statements
11 - 22
LYON & TURNBULL LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 JULY 2023
- 1 -
The directors present the strategic report for the year ended 31 July 2023.
Principal activities
The principal activity of the company continued to be that of an auctioneers and valuers.
Review of the business
The results of the company for the year are set out on page 7. Turnover of £6,643,682 was 17.3% lower than in 2022. The company’s profit before tax was £608,404 (2022: £2,429,803). The decrease in turnover and profit can be attributed to a combination of company expansion in line with its strategic plan and notable high value sales in the prior year.
At the year end the company had strong cash reserves of £3,932,251 (2022: £6,542,566) and net assets of £5,338,276 (2022: £5,650,765).
The directors consider the result achieved in the financial year and the financial position at the end of the year to be satisfactory.
The directors monitor company performance using a wide range of financial and non-financial KPIs. Details of these KPIs are commercially sensitive but the directors confirm they are satisfied with the company’s performance against its KPIs.
Principal risks and uncertainties
The principal risks and uncertainties facing the company are, in no particular order, the macroeconomic environment, industry competition, financial exposures, liquidity risk and information security.
Mr G Strang
Director
23 April 2024
LYON & TURNBULL LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 JULY 2023
- 2 -
The directors present their annual report and financial statements for the year ended 31 July 2023.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr C Armour
Mr N Curnow
Mr J Mackie
Mr G Strang
Mr P Roberts
Ms M McFadden
(Resigned 1 September 2023)
Ms A Dove
Mr R Brown
(Appointed 9 March 2023)
Mr I Mackinnon
(Appointed 9 March 2023)
Mr P Smith
(Appointed 9 March 2023)
Mr W A Bremner
(Appointed 5 December 2023)
Results and dividends
The results for the year are set out on page 7.
Ordinary dividends were paid amounting to £750,000. The directors do not recommend payment of a further dividend.
Auditor
MHA were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.
Statement of directors' responsibilities
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:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The 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.
LYON & TURNBULL LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
- 3 -
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.
On behalf of the board
Mr G Strang
Director
23 April 2024
LYON & TURNBULL LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF LYON & TURNBULL LIMITED
- 4 -
Opinion
We have audited the financial statements of Lyon & Turnbull Limited (the 'company') for the year ended 31 July 2023 which comprise the profit and loss account, 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 FRS102 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 profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
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.
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:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
LYON & TURNBULL LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF LYON & TURNBULL LIMITED
- 5 -
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:
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 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 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.
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 identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures to respond to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we consider the following:
The nature of the industry, control environment and business performance of the company
The requests of our enquires with management and Directors about their own identification and assessment of the risks of irregularities
The matters discussed among the audit engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud.
As a result of these procedures, we consider the opportunities and incentives that may exist within the company for fraud. In common with all audits under ISAs (UK), we perform specific procedures to respond to the risk of management override.
LYON & TURNBULL LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF LYON & TURNBULL LIMITED
- 6 -
We also obtain an understanding of the legal and regulatory environment in which the company operates, focusing on those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements and those which may be fundamental to the company’s ability to operate.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
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 the 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.
Paul Marshall
Senior Statutory Auditor
For and on behalf of MHA
23 April 2024
Chartered Accountants
Statutory Auditor
6 St Colme Street
Edinburgh
EH3 6AD
MHA is the trading name of MacIntyre Hudson LLP, a limited liability partnership in England and Wales (registered number OC312313)
LYON & TURNBULL LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 JULY 2023
- 7 -
2023
2022
Notes
£
£
Turnover
3
6,643,682
8,031,862
Cost of sales
(1,391,530)
(1,342,721)
Gross profit
5,252,152
6,689,141
Administrative expenses
(4,647,389)
(4,240,133)
Operating profit
4
604,763
2,449,008
Interest receivable and similar income
7
39,480
50
Interest payable and similar expenses
8
(35,839)
(19,255)
Profit before taxation
608,404
2,429,803
Tax on profit
9
(170,893)
(480,851)
Profit for the financial year
437,511
1,948,952
The profit and loss account has been prepared on the basis that all operations are continuing operations.
LYON & TURNBULL LIMITED
BALANCE SHEET
AS AT 31 JULY 2023
31 July 2023
- 8 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
12
3,389,743
2,919,502
Investments
13
100
100
3,389,843
2,919,602
Current assets
Debtors
15
210,596
633,721
Cash at bank and in hand
3,932,251
6,542,566
4,142,847
7,176,287
Creditors: amounts falling due within one year
16
(1,612,219)
(3,821,174)
Net current assets
2,530,628
3,355,113
Total assets less current liabilities
5,920,471
6,274,715
Creditors: amounts falling due after more than one year
17
(294,718)
(507,366)
Provisions for liabilities
Deferred tax liability
19
287,477
116,584
(287,477)
(116,584)
Net assets
5,338,276
5,650,765
Capital and reserves
Called up share capital
21
500,000
500,000
Revaluation reserve
888,520
909,675
Profit and loss reserves
3,949,756
4,241,090
Total equity
5,338,276
5,650,765
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 23 April 2024 and are signed on its behalf by:
Mr G Strang
Director
Company registration number SC191166 (Scotland)
LYON & TURNBULL LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JULY 2023
- 9 -
Share capital
Revaluation reserve
Profit and loss reserves
Total
£
£
£
£
Balance at 1 August 2021
500,000
930,830
2,270,983
3,701,813
Year ended 31 July 2022:
Profit and total comprehensive income for the year
-
-
1,948,952
1,948,952
Transfers
-
(21,155)
21,155
-
Balance at 31 July 2022
500,000
909,675
4,241,090
5,650,765
Year ended 31 July 2023:
Profit and total comprehensive income for the year
-
-
437,511
437,511
Dividends
10
-
-
(750,000)
(750,000)
Transfers
-
(21,155)
21,155
-
Balance at 31 July 2023
500,000
888,520
3,949,756
5,338,276
LYON & TURNBULL LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 JULY 2023
- 10 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash (absorbed by)/generated from operations
24
(474,245)
2,555,389
Interest paid
(35,839)
(19,255)
Income taxes paid
(436,332)
(420,801)
Net cash (outflow)/inflow from operating activities
(946,416)
2,115,333
Investing activities
Proceeds from disposal of intangibles
(847)
1,280
Purchase of tangible fixed assets
(744,231)
(136,710)
Proceeds from disposal of tangible fixed assets
848
Interest received
39,480
50
Net cash used in investing activities
(704,750)
(135,380)
Financing activities
Repayment of bank loans
(209,149)
(183,396)
Dividends paid
(750,000)
Net cash used in financing activities
(959,149)
(183,396)
Net (decrease)/increase in cash and cash equivalents
(2,610,315)
1,796,557
Cash and cash equivalents at beginning of year
6,542,566
4,746,009
Cash and cash equivalents at end of year
3,932,251
6,542,566
LYON & TURNBULL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023
- 11 -
1
Accounting policies
Company information
Lyon & Turnbull Limited is a private company limited by shares incorporated in Scotland. The registered office is 33 Broughton Place, Edinburgh, EH1 3RR.
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 represents commission receivable for the sale of auction items as well as the delivery of other associated services during the period, exclusive of Value Added Tax and other sales related taxes. Sales are recognised when the auction takes place, which is the point at which a hammer price is agreed on an item.
1.4
Goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date if the fair value can be measured reliably.
1.5
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 freehold
2% / 20% straight line
Fixtures, fittings & equipment
15% straight line
Computer equipment
25% / 33% straight line
Motor vehicles
25% straight line
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.
LYON & TURNBULL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
1
Accounting policies
(Continued)
- 12 -
1.6
Impairment of fixed assets
The carrying value of tangible fixed assets are reviewed for impairment when events or changes in circumstances indicate that the carrying value may not be recoverable.
1.7
Fixed asset investments
Interests in subsidiaries 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.
1.8
Cash at bank and in hand
Cash at bank and in hand 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.
1.9
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.
Debtors
Debtors with no stated interest rate or receivable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account.
Creditors
Creditors with no stated interest rate and payable within one year are recorded at transaction price.
All interest bearing loans and borrowings which are basic financial instruments are initially recorded at the present value of cash payable. After initial recognition they are measured at amortised cost.
1.10
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.
1.11
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.
LYON & TURNBULL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
1
Accounting policies
(Continued)
- 13 -
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.
1.12
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense.
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.
1.13
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.14
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
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.
Critical judgements
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
Useful life of tangible assets
The company sets depreciation rates which reasonably reflect the probable economic life of an asset. The directors review the applicability of the policies used with reference to the returns generated by an asset, experience and judgement.
LYON & TURNBULL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
- 14 -
3
Turnover
The total turnover of the company for the year has been derived from its principal activity wholly undertaken in the United Kingdom.
4
Operating profit
2023
2022
Operating profit for the year is stated after charging/(crediting):
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
8,541
7,649
Depreciation of owned tangible fixed assets
273,142
154,078
Loss/(profit) on disposal of tangible assets
847
(1,280)
Operating lease charges
148,316
112,815
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
66
61
Their aggregate remuneration comprised:
2023
2022
£
£
Wages and salaries
2,262,885
2,126,707
Social security costs
227,865
223,177
Pension costs
278,359
380,154
2,769,109
2,730,038
6
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
557,658
514,747
Company pension contributions to defined contribution schemes
252,557
248,330
810,216
763,077
LYON & TURNBULL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
6
Directors' remuneration
(Continued)
- 15 -
Remuneration disclosed above include the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
104,700
99,700
Company pension contributions to defined contribution schemes
62,768
62,268
The company's key management personnel are considered to be the directors only.
7
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
39,480
50
2023
2022
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
39,480
50
8
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
32,543
19,255
Other finance costs:
Interest on finance leases and hire purchase contracts
3,296
-
35,839
19,255
9
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
436,332
Deferred tax
Origination and reversal of timing differences
170,893
44,519
Total tax charge
170,893
480,851
From 1 April 2023 the rate of corporation tax for profits over £250,000 increased from 19% to 25%. This gives a standard rate of corporation tax at the year end of 21%.
LYON & TURNBULL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
9
Taxation
(Continued)
- 16 -
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
608,404
2,429,803
Expected tax charge based on the standard rate of corporation tax in the UK of 21.00% (2022: 19.00%)
127,765
461,663
Tax effect of expenses that are not deductible in determining taxable profit
5,159
4,010
Fixed asset differences
10,630
4,494
Remeasurement of deferred tax for changes in tax rate
27,339
10,684
Taxation charge for the year
170,893
480,851
10
Dividends
2023
2022
£
£
Final paid
750,000
11
Intangible fixed assets
Other intangible assets
£
Cost
At 1 August 2022 and 31 July 2023
78,000
Amortisation and impairment
At 1 August 2022 and 31 July 2023
78,000
Carrying amount
At 31 July 2023
At 31 July 2022
LYON & TURNBULL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
- 17 -
12
Tangible fixed assets
Land and buildings freehold
Fixtures, fittings & equipment
Computer equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 August 2022
3,269,565
481,479
207,744
9,750
3,968,538
Additions
97,149
503,575
143,507
744,231
Disposals
(62,513)
(15,711)
(78,224)
At 31 July 2023
3,366,714
922,541
335,540
9,750
4,634,545
Depreciation and impairment
At 1 August 2022
539,645
362,336
137,305
9,750
1,049,036
Depreciation charged in the year
97,737
102,864
72,541
273,142
Eliminated in respect of disposals
(61,770)
(15,606)
(77,376)
At 31 July 2023
637,382
403,430
194,240
9,750
1,244,802
Carrying amount
At 31 July 2023
2,729,332
519,111
141,300
3,389,743
At 31 July 2022
2,729,920
119,143
70,439
2,919,502
13
Fixed asset investments
2023
2022
Notes
£
£
Investments in subsidiaries
14
100
100
LYON & TURNBULL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
- 18 -
14
Subsidiaries
Details of the company's subsidiaries at 31 July 2023 are as follows:
Name of undertaking
Address
Class of
% Held
shares held
Direct
Lyon and Turnbull Hong Kong Limited
1
Ordinary
100.00
Registered office addresses (all UK unless otherwise indicated):
1
Suite 1106-8, 11/F, Tai Yau Building, No. 181 Johnston Road, Wanchai, Hong Kong
LYON & TURNBULL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
- 19 -
15
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
101,724
517,814
Other debtors
7,873
7,597
Prepayments and accrued income
100,999
108,310
210,596
633,721
16
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Bank loans
18
216,637
213,138
Trade creditors
405,753
1,769,702
Corporation tax
436,332
Other taxation and social security
280,777
305,695
Other creditors
164,676
134,074
Accruals and deferred income
544,376
962,233
1,612,219
3,821,174
17
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Bank loans and overdrafts
18
294,718
507,366
The Bank of Scotland plc hold a standard security over the following properties:
33 Broughton Place, Edinburgh
10 Old Broughton, Edinburgh
In addition The Bank of Scotland plc hold a floating charge over the entire assets of the company.
18
Loans and overdrafts
2023
2022
£
£
Bank loans
511,355
720,504
Payable within one year
216,637
213,138
Payable after one year
294,718
507,366
LYON & TURNBULL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
18
Loans and overdrafts
(Continued)
- 20 -
During 2020 the company received £500,000 in relation to the Coronavirus Business Interruption Loan Scheme. This is being repaid in 60 monthly instalments, at a fixed interest rate of 1.9% plus Bank of England Base Rate. Subsequent to the year end, the company has fixed the interest rate at 5.06%.
During 2017 the company received a term loan of £750,000 from Bank of Scotland. This is being repaid over 81 months at a fixed interest rate of 3.05%.
19
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
147,486
48,930
Short term timing differences
(2,500)
(80,029)
Revaluations
147,683
147,683
Other timing differences
(5,192)
-
287,477
116,584
2023
Movements in the year:
£
Liability at 1 August 2022
116,584
Charge to profit or loss
170,893
Liability at 31 July 2023
287,477
20
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
278,359
380,154
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.
21
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
500,000
500,000
500,000
500,000
LYON & TURNBULL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
- 21 -
22
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2023
2022
£
£
Within one year
133,253
144,253
Between two and five years
206,747
335,992
340,000
480,245
23
Related party transactions
Transactions with related parties
During the year the company entered into the following transactions with related parties:
Purchases
2023
2022
£
£
Entities with control, joint control or significant influence over the company
2,751
9,207
24
Cash (absorbed by)/generated from operations
2023
2022
£
£
Profit for the year after tax
437,511
1,948,952
Adjustments for:
Taxation charged
170,893
480,851
Finance costs
35,839
19,255
Investment income
(39,480)
(50)
Loss/(gain) on disposal of intangible assets
847
(1,280)
Depreciation and impairment of tangible fixed assets
273,142
154,078
Movements in working capital:
Decrease in stocks
1,120
Decrease/(increase) in debtors
423,125
(484,357)
(Decrease)/increase in creditors
(1,776,122)
436,820
Cash (absorbed by)/generated from operations
(474,245)
2,555,389
LYON & TURNBULL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
- 22 -
25
Analysis of changes in net funds
1 August 2022
Cash flows
31 July 2023
£
£
£
Cash at bank and in hand
6,542,566
(2,610,315)
3,932,251
Borrowings excluding overdrafts
(720,504)
209,149
(511,355)
5,822,062
(2,401,166)
3,420,896
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