Company registration number 02902954 (England and Wales)
LENDLOCK INTERNATIONAL LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023
PAGES FOR FILING WITH REGISTRAR
LENDLOCK INTERNATIONAL LIMITED
CONTENTS
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 11
LENDLOCK INTERNATIONAL LIMITED
BALANCE SHEET
- 1 -
2023
2022
as restated
Notes
£
£
£
£
Fixed assets
Tangible assets
6
2,187,046
2,813,495
Investment property
4
945,000
1,257,156
Investments
5
5,523,052
5,523,052
8,655,098
9,593,703
Current assets
Stocks
1,682,164
1,816,892
Debtors
7
21,646,117
12,696,865
Cash at bank and in hand
1,008,519
2,019,134
24,336,800
16,532,891
Creditors: amounts falling due within one year
8
(10,889,966)
(7,627,408)
Net current assets
13,446,834
8,905,483
Total assets less current liabilities
22,101,932
18,499,186
Provisions for liabilities
(337,193)
(638,279)
Net assets
21,764,739
17,860,907
Capital and reserves
Called up share capital
100
100
Revaluation reserve
9
858,112
1,458,773
Other reserves
565,720
565,721
Profit and loss reserves
20,340,807
15,836,313
Total equity
21,764,739
17,860,907
The notes on pages 3 to 11 form part of these financial statements.
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
LENDLOCK INTERNATIONAL LIMITED
BALANCE SHEET (CONTINUED)
- 2 -
The financial statements were approved by the board of directors and authorised for issue on 30 July 2024 and are signed on its behalf by:
Mr MJ Duffell
Director
Company registration number 02902954 (England and Wales)
LENDLOCK INTERNATIONAL LIMITED
BALANCE SHEET (CONTINUED)
AS AT 31 JULY 2023
31 July 2023
- 3 -
1
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.
2
Accounting policies
Company information
Lendlock International Limited is a private company limited by shares incorporated in England and Wales. The registered office is Guilden Sutton Lane, Guilden Sutton, Chester, Cheshire, England, CH3 7EX.
2.1
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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
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 company has taken advantage of the exemption under section 400 of the Companies Act 2006 not to prepare consolidated accounts. The financial statements present information about the company as an individual entity and not about its group.
Lendlock International Limited is a wholly owned subsidiary of Lendlock Group Limited and the results of Lendlock International Limited are included in the consolidated financial statements of Lendlock Group Limited which are available from Guilden Sutton Lane No 86, Chester, Cheshire, CH3 7EX, England.
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.
The company discloses transactions with related parties which are not wholly owned with the same group.
2.2
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.
2.3
Turnover
Turnover is the amount derived from ordinary activities, i.e. sale of goods, and is stated after trade discounts, other sales taxes and net of VAT. Revenue from the sale of goods is recognised when goods are delivered and legal title has passed.
LENDLOCK INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023
2
Accounting policies
(Continued)
- 4 -
2.4
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Freehold property
2% on cost
Improvements to property
2% on cost
Plant and equipment
20% on reducing balance
Fixtures and fittings
20% on reducing balance
Motor vehicles
25% on reducing balance
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.
2.5
Investment property
Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.
2.6
Fixed asset investments
Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
2.7
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
LENDLOCK INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
2
Accounting policies
(Continued)
- 5 -
2.8
Stocks
Stocks are split between two categories; raw materials and finished goods.
Raw materials and finished goods are valued at the lower of cost using the FIFO method and estimated selling price less costs to sell (net realisable value), after making due allowance for obsolete and slow moving items.
2.9
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
2.10
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
2.11
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
LENDLOCK INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
2
Accounting policies
(Continued)
- 6 -
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.
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.
2.12
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
2.13
Leases
Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.
2.14
Government grants
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.
2.15
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
LENDLOCK INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
- 7 -
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Total
26
23
4
Investment property
2023
£
Fair value
At 1 August 2022
1,257,156
Revaluations
(312,156)
At 31 July 2023
945,000
Land and buildings held as investment property were independently revalued to £945,000 in March 2024 by Grant Forbes, Chartered Surveyor, on an open market basis. The directors consider this reflected property and market conditions at 31 July 2023 and accordingly an adjustment has been made to record this valuation in the financial statements.
5
Fixed asset investments
2023
2022
£
£
Shares in group undertakings and participating interests
5,523,052
5,523,052
LENDLOCK INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
- 8 -
6
Tangible fixed assets
Freehold property
Improvements to property
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
£
Cost or valuation
At 1 August 2022
1,536,524
65,377
4,270,514
139,622
150,019
6,162,056
Additions
32,828
15,567
48,395
Disposals
(12,800)
(12,800)
Revaluation
(381,524)
(65,377)
(446,901)
At 31 July 2023
1,155,000
4,303,342
155,189
137,219
5,750,750
Depreciation and impairment
At 1 August 2022
9,481
3,129,468
102,029
107,583
3,348,561
Depreciation charged in the year
30,730
1,308
208,734
8,680
10,349
259,801
Eliminated in respect of disposals
(3,139)
(3,139)
Revaluation
(30,730)
(10,789)
(41,519)
At 31 July 2023
3,338,202
110,709
114,793
3,563,704
Carrying amount
At 31 July 2023
1,155,000
965,140
44,480
22,426
2,187,046
At 31 July 2022
1,536,524
55,896
1,141,046
37,593
42,436
2,813,495
Land and buildings held as freehold property were independently revalued to £1,155,000 in March 2024 by Grant Forbes, Chartered Surveyor, on an open market basis. The directors consider this reflected property and market conditions at 31 July 2023 and accordingly an adjustment has been made to record this valuation in the financial statements.
If freehold property were stated on an historical cost basis rather than a fair value basis, the total amounts included would have been as follows:
2023
2022
£
£
Cost
146,393
146,393
Accumulated depreciation
(87,453)
(84,525)
Carrying value
58,940
61,868
LENDLOCK INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
- 9 -
7
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
675,999
1,034,281
Amounts owed by group undertakings
117,047
1,642,027
Other debtors
752,338
1,040,706
Prepayments and accrued income
348,654
48,102
1,894,038
3,765,116
2023
2022
Amounts falling due after more than one year:
£
£
Other debtors
19,752,079
8,931,749
Total debtors
21,646,117
12,696,865
8
Creditors: amounts falling due within one year
2023
2022
£
£
Bank loans
15,001
Trade creditors
566,721
538,561
Amounts owed to group undertakings
2,040,013
1,151,692
Corporation tax
469,704
154,892
Other taxation and social security
263,977
331,201
Other creditors
7,399,504
5,303,080
Accruals and deferred income
150,047
132,981
10,889,966
7,627,408
9
Revaluation reserve
2023
2022
£
£
At the beginning of the year
1,458,773
131,873
Revaluation surplus arising in the year
(717,538)
1,351,274
Deferred tax on revaluation of tangible assets
109,355
(380,558)
Other movements
7,522
356,184
At the end of the year
858,112
1,458,773
LENDLOCK INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
- 10 -
10
Related party disclosures
The following are wholly owned subsidiaries of the company:
Specialist Anodising Company Limited
Scott Closures International Limited
The company is itself a wholly owned subsidiary of Lendlock Group Limited and has taken advantage of the exemption allowed by Financial Reporting Standard 102, "Related Party Transactions" (FRS 102 1A), not to disclose any transactions with entities that are included in the consolidated financial statements of the ultimate parent undertaking.
The ultimate controlling entity is Lendlock Group Limited.
The following are also members of the Lendlock Group Limited:
Nekem Limited
F-L Plastics Limited
GTL Plastics Limited
The results of the Company are consolidated within Lendlock Group Limited and the consolidated financial statements of this group are available from the following address:
Guilden Sutton Lane
Chester
United Kingdom
CH3 7EX
At 31 July 2023 the company owed the directors £7,391,152 (2022 - £1,904,718).
No interest has been charged to the company in respect of this loan which are repayable on demand and classified as creditors due within one year.
11
Audit report information
As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:
The auditor's report was unqualified.
Senior Statutory Auditor:
Mr Peter Alcock
Statutory Auditor:
Sedulo Audit Limited
Date of audit report:
30 July 2024
12
Auditors remuneration
As the ultimate parent company is required, on a group wide basis, to provide an analysis of remuneration receivable by the company's auditors under the Companies (Disclosure of Auditor Remuneration and Liability Limitation Agreements) Regulations 2008, this information has not been disclosed in the company's accounts.
LENDLOCK INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
- 11 -
13
Related party loans
The company has advanced loans to various entities under the control of the Mr M Duffell, Mrs V Duffell, and their family for the purpose property and construction related activity as detailed below.
The loans bear interest at 3% per annum. The loans are personally guaranteed by Mr M Duffell and Mrs V Duffell.
This amount is made up from an opening balance of £6,356,626 at 01/08/2022, prior year adjustments of additional amounts advanced of £3,391,257resulting in a restated opening balance of £8,921,749. Repayments during the year were £3,548,414, and additional loans advanced of £12,088,406. This resulted in amounts owed by related parties at the end of the year of £19,752,079.
In respect of the prior year adjustment a corresponding credit was made to directors loans. The prior year comparatives have been restated accordingly.
Not included in the above balances is Interest accrued at 01/08/2022 of £487,750 and interest charged during the year of £231,955. Nil interest was paid during the year. At 31/7/2023 interest accrued was £719,705.
14
Prior period adjustment
Certain loans advanced to and repaid by related parties were incorrectly accounted for in prior years as directors loan transactions. The loans advanced to related parties where generally for periods of 12 to 36 months. Loans to related parties carried interest at the rate of 3% pa. This correction has been made by restating the indebtedness due from these related parties. A corresponding adjustments has been made to directors loan included in other creditors.
Reconciliation of changes in equity
The prior period adjustments do not give rise to any effect upon equity.
Reconciliation of changes in profit for the previous financial period
2022
£
Total adjustments
-
Profit as previously reported
6,298,277
Profit as adjusted
6,298,277
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