Company registration number 04756823 (England and Wales)
LENDLOCK GROUP LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023
LENDLOCK GROUP LIMITED
COMPANY INFORMATION
Directors
Mr MJ Duffell
Mrs VA Duffell
Mr AM Duffell
Mr MS Duffell
Mrs VA Moody
Mr D Taylor
Mr MJ Gwinnett
Mr DM Duffell
Secretary
Mr MJ Duffell
Company number
04756823
Registered office
Guilden Sutton Lane
Guilden Sutton
Chester
Cheshire
United Kingdom
CH3 7EX
Auditor
Sedulo Audit Limited
Statutory Auditor
5th Floor
Walker House
Liverpool
Merseyside
United Kingdom
L2 3YL
Bankers
Santander UK PLC
Bridle Road
Bootle
Merseyside
L30 4GB
LENDLOCK GROUP LIMITED
CONTENTS
Page
Strategic report
1 - 4
Directors' report
5 - 8
Directors' responsibilities statement
9
Independent auditor's report
10 - 12
Profit and loss account
13
Group statement of comprehensive income
14
Group balance sheet
15
Company balance sheet
16
Group statement of changes in equity
17
Company statement of changes in equity
18
Group statement of cash flows
19
Company statement of cash flows
20
LENDLOCK GROUP LIMITED
CONTENTS
Notes to the financial statements
21 - 42
LENDLOCK GROUP LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 JULY 2023
- 1 -

The Directors present the strategic report for Lendlock Group Limited (“the Group”) the year ended 31 July 2023.

 

The principal activities of the Group are that of a market leader in the manufacture of injection moulded closures and anodised packaging for cosmetics and toiletries premium brands together with own label production. The Group operate from UK locations in Burnley, Poole and Chester.

Review of the business

The results for the year and the financial position of the Group and the Company are shown in the annexed financial statements.

 

Turnover for the Group was £44.8M compared with £39.5M in the previous year. As a whole, the Group has performed well albeit with the cost pressures and supply chain issues they have been faced with.

 

The Directors monitor gross profit margins from principal activities as a key performance indicator. Gross profit margin decreased by 0.8% to 31.8% during the year. The Directors continue to review how the Group can improve efficiencies and streamline processes to maintain or increase gross profit margins.

Principal risks and uncertainties

The Group’s operational risks include health and safety, power failures and environmental. Documented procedures are in place to minimise these risks.

 

Following the lockdown in March 2020 it is expected that all impacts of Covid-19 have now been recognised in the financial statements to the year ended 31 July 2023. The Russian Ukraine war has though impacted the supply chain which is leading to increased prices, and these are being managed by review and implementation of efficiencies in every area of the group operations, but there has been a need to increase prices as necessary across the group.

 

The Group uses financial instruments to manage interest rate risk. It is exposed to the usual credit risk and cash flow risk associated with selling on credit and manages this through robust credit control procedures.

 

Buying and selling in different countries has allowed the Group to manage its exchange risk through hedging.

 

Cash and net borrowings

 

The net cash position of the Group at 31 July 2023 was £16.7M compared to £14.5M in the previous year. This is a direct result of retained profits from operations less investment in the growth and infrastructure of the Group as indicated in the Group cash flow.

 

Research and development

The Group continues to draw on their research team’s expertise, to solve clients' strategic problems by developing innovative products and reviewing their in house technologies.

LENDLOCK GROUP LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
- 2 -
Section 172(1) Statement

In discharging their duty to promote the interests of the Company under section 172 Companies Act 2006, the Directors of the Company have regard to several factors and stakeholder interests. These are described below. As a holding company, the Directors do not consider the factors listed in section 172(1)(f) (need to act fairly between the members of the company) are relevant to the proper discharge of their duty under section 172.

 

The Directors, in line with their duties under s 172 of the Companies Act 2006, act individually and collectively in the way they consider, in good faith, would be most likely to promote the success of the Company for the benefit of its member, and in doing so have regard, amongst other matters, to the:

 

Likely consequences of any decision in the long-term Interests of the company's employees

• Need to foster the company's business relationships with suppliers, customers and other stakeholders

• Impact of the company's operations on the community and the environment

• Desirability of the company maintaining a reputation for high standards of business conduct

 

The Directors' regard to these matters is embedded in their decision-making process, through the Company's business strategy, culture, governance framework, management information flows and stakeholder engagement processes.

 

The Company's business strategy is focused on achieving success for the Company in the long-term. In setting this strategy, the Board takes into account the impact of relevant factors and stakeholder interests on the Company's performance. The Board also identifies principal risks facing the business and sets risk management objectives.

 

The Board promotes a culture of upholding the highest standards of business conduct and regulatory conduct. The Board ensures these core values are communicated to the Company's employees and embedded in the Company's policies and procedures, employee induction and training programmes and its risk control and oversight framework.

 

The Board recognizes that building strong and lasting relationships with our stakeholders will help us to deliver our strategy in line with our long-term values and operate a sustainable business.

 

The Directors are supported in the discharge of their duties by:

 

Director training to further their understanding of their duties and obligations under applicable law and regulation.

 

Processes which ensure the provision of timely management information and escalation through reporting lines to the Board from the Company's business areas, its risk and control functions, support teams and committees of the Board.

 

Agenda planning for Board and Committee meetings to provide sufficient time for the consideration and discussion of key matters.

LENDLOCK GROUP LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
- 3 -
Stakeholders

The Board understands the importance of engagement with all of its stakeholders and gives appropriate weighting to the outcome of its decisions for the relevant stakeholder in weighing up how best to promote the success of the Company.

 

The Board regularly discusses issues concerning employees, customers, suppliers, community and environment, regulators and its shareholder, which it considers in its discussions and in its decision-making process. In addition to this, the Board seeks to understand the interests and views of the Company's stakeholders by engaging with them directly when required. The following page summarises the key stakeholders and how we engage with each:

 

Stakeholder Engagement

 

Employees

Our employees contribute to a positive working culture and safe working environment. Employees are key to the success of our business. In addition to aiming to be a responsible employer in our approach to pay and benefits, we continue to engage with our team to ascertain which training and development opportunities should be made available to improve our team's productivity and our individual employees' potential within the business.

 

We continually invest in employee development and wellbeing to create and encourage an inclusive culture within the organisation. Our employee appraisal programme encourages employee feedback and facilities the

opportunity for both employees and managers to set performance goals on an annual basis.

 

Our culture invites different perspectives, new ideas and opportunities for growth. We work hard to ensure employees feel welcome and are valued and recognized for their hard work. All employees receive regular updates on the performance of the company ranging from regular published updates.

 

Customers

Customers are at the centre of our business. Our business development team allied with our customer service teams build lasting relationships with current and potential customers to understand their objectives and requirements. We are in regular contact with customers in order to meet their defined service and reporting requirements. This includes attending monthly and quarterly update calls, face to face meetings (quarterly/bi-annually/annually) depending on customer preferences.

 

We take a consultative approach with customers focused on building long-term relationships and solving their supply-chain challenges.

 

Suppliers

We work with a wide range of suppliers both in the UK and the European Union. We remain committed to being fair and transparent in our dealings with all our suppliers.

 

The Company has procedures requiring due diligence of suppliers as to their internal governance, including for example, their anti-bribery and corruption practices, data protection policies and modem slavery matters.

 

The Company has systems and processes in place to ensure suppliers goods and services are provided in line with terms and conditions which are acceptable to the company, in addition to ensuring suppliers are paid in a timely manner.

LENDLOCK GROUP LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
- 4 -
Community and Environment

The Board's approach to social responsibility, Diversity & the community is of high importance. Corporate social responsibility principles are part of our culture and decision-making process. We take a consultative approach focused on building long-term relationships and solving business problems.

 

Diversity and Inclusion is a key pillar for our Company. Our HR resource is responsible for Diversity & Inclusion and aims to connect with affiliates and networks, updating the Board regularly.

 

The Board continues to commit and broaden the company's work and associations with local charitable organisations.

 

Shareholders

The Board also seeks to behave in a responsible manner towards our shareholders. The Board communicates information relevant to its shareholder on a regular basis to cover such items as financial performance, forecasting, annual budgeting, etc.

On behalf of the board

Mr MJ Duffell
Director
30 July 2024
LENDLOCK GROUP LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 JULY 2023
- 5 -

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

Branches

The Group has a branch in France. This branch has closed post year-end.

Results and dividends

The results for the year are set out on page 13.

No ordinary dividends were paid during the year.

Directors

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

Mr MJ Duffell
Mrs VA Duffell
Mr AM Duffell
Mr MS Duffell
Mrs VA Moody
Mr D Taylor
Mr MJ Gwinnett
Mr DM Duffell
Qualifying third party indemnity provisions

The company has made qualifying third party indemnity provisions for the benefit of its directors during the year. These provisions remain in force at the reporting date.

Financial instruments

The group manages its cash and borrowing requirements in order to maximise interest income and minimise interest expense, whilst ensuring the group has sufficient liquid resources to meet the operating needs of the business.

The group is exposed to fair value interest rate risk on its fixed rate borrowings and cash flow interest rate risk on floating rate deposits, bank overdrafts and loans. The group uses interest rate derivatives to manage the mix of fixed and variable rate debt so as to reduce its exposure to changes in interest rates.

The group’s principal foreign currency exposures arise from trading with overseas companies. Group policy permits but does not demand that these exposures may be hedged in order to fix the cost in sterling. This hedging activity involves the use of foreign exchange forward contracts.

Investments of cash surpluses, borrowings and derivative instruments are made through banks and companies which must fulfil credit rating criteria approved by the Board.

 

All customers who wish to trade on credit terms are subject to credit verification procedures. Trade debtors are monitored on an ongoing basis and provision is made for doubtful debts where necessary.

Research and development

Research and development plays a key role in supporting Lendlock Group's activities. Details of such activities are given in the Strategic report.

LENDLOCK GROUP LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
- 6 -
Disabled persons

People with disabilities have equal opportunities when applying for vacancies. In addition to complying with legislative requirements, procedures are in place to ensure that disabled employees are fairly treated and that their training and career development needs are carefully managed. The policies are considered to operate effectively. The Group supports employees who become disabled during the course of their employment, by offering re-training or re-deployment, to provide an opportunity for them to remain with the Group whenever possible.

Employee involvement

The Group is committed to employee involvement throughout the business. The Group is intent on motivating and keeping staff informed on matters that concern them in the context of their employment and involving them through local consultative procedures.

 

Employees are kept well informed on matters of interest and the financial and economic factors affecting the Group's performance through management channels and meetings.

Post reporting date events

The Group's branch in France has closed post year-end. This has had no material impact on the consolidated financial statements.

 

A subsidiary company, Specialist Anodising Company Limited, completed the purchased of Integrated Aluminium Components Limited on 22nd December 2023.

Future developments

The Group aims to grow organically and through acquisitions where suitable opportunities arise.

Auditor

Sedulo Audit Limited are deemed to be reappointed in accordance with an elective resolution made under section 386 of the Companies Act 1985 which continues in force under the Companies Act 2006.

Energy and carbon report

The Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2018 require the disclosure of annual UK energy consumption and greenhouse gas emissions from SECR regulated sources. These figures are for the financial year end July 2023.

LENDLOCK GROUP LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
- 7 -
Energy consumption
kWh
kWh
Aggregate of energy consumption in the year
- Gas combustion
2,861,762
- Electricity purchased
6,735,993
9,597,755
Emissions of CO2 equivalent
Metric tonnes
Metric tonnes
Scope 1 - direct emissions
- Gas combustion
523.50
- Fuel consumed for owned transport
-
523.50
Scope 2 - indirect emissions
- Electricity purchased
1,394.85
Scope 3 - other indirect emissions
- Fuel consumed for transport not owned by the company
-
Total gross emissions
1,918.35
Intensity ratio
Tonnes CO2e / £m turnover
42.06
Quantification and reporting methodology

The group has followed the 2019 HM Government Environmental Reporting Guidelines. The group has also used the GHG Reporting Protocol – Corporate Standard and have used the 2020 UK Government’s Conversion Factors for Company Reporting

Intensity measurement

The chosen intensity measurement ratio is total gross emissions in metric tonnes CO2e per £m of turnover, the recommended ratio for the sector.

Measures taken to improve energy efficiency

We are committed to year-on-year improvements in our operational energy efficiency. Measures prioritised for implementation in 2023/24 within Lendlock Group include completing the ESOS phase 3 energy efficiency surveys during the 2023/24 reporting period,

Emissions information not included above is fuel consumed for own transport (direct emissions), and fuel consumed for transport not owned by the company (other indirect emissions), as this information was deemed to not be significant to the report, the Group will look to quantify these figures in subsequent reporting periods.

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 auditor of the company 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 auditor of the company is aware of that information.

LENDLOCK GROUP LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
- 8 -
On behalf of the board
Mr MJ Duffell
Director
30 July 2024
LENDLOCK GROUP LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 JULY 2023
- 9 -

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

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

LENDLOCK GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF LENDLOCK GROUP LIMITED
- 10 -
Opinion

We have audited the financial statements of Lendlock Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 July 2023 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows, the company statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent 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 group's and parent company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

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

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

LENDLOCK GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF LENDLOCK GROUP LIMITED
- 11 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

 

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

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the parent 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 parent 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 considered capable of detecting irregularities, including fraud

Based on our understanding of the company and industry, we identified that there are no particular principle risks of non-compliance with laws and regulations.  We also considered those laws and regulations that have a direct impact on the financial statements such as the Companies Act 2006.  We evaluated management incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principle risks were related to posting inappropriate journal entries to increase profits, through management bias in accounting for significant creditors and expenses.

There are inherent limitations in the audit procedures described above.  We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected to events and transactions reflected in the financial statements.  Also, 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 or intentional misrepresentations, or through collusion.

Audit procedures performed included:

LENDLOCK GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF LENDLOCK GROUP LIMITED
- 12 -

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

Use of our report

This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Mr Peter Alcock (Senior Statutory Auditor)
For and on behalf of Sedulo Audit Limited
30 July 2024
Chartered Accountants
Statutory Auditor
Statutory Auditor
5th Floor
Walker House
Liverpool
Merseyside
United Kingdom
L2 3YL
LENDLOCK GROUP LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 JULY 2023
- 13 -
2023
2022
Notes
£
£
Turnover
3
44,782,150
39,521,803
Cost of sales
(30,527,059)
(26,625,623)
Gross profit
14,255,091
12,896,180
Administrative expenses
(9,607,728)
(6,908,471)
Other operating income
946,400
702,433
Exceptional item
4
(110,065)
-
0
Operating profit
5
5,483,698
6,690,142
Interest receivable and similar income
699,636
166,219
Interest payable and similar expenses
9
(35,189)
(5,639)
Amounts written off investments
10
-
(191,191)
Profit before taxation
6,148,145
6,659,531
Tax on profit
11
(478,372)
(1,236,474)
Profit for the financial year
30
5,669,773
5,423,057
Profit for the financial year is all attributable to the owners of the parent company.
LENDLOCK GROUP LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 JULY 2023
- 14 -
2023
2022
£
£
Profit for the year
5,669,773
5,423,057
Other comprehensive income
Revaluation of tangible fixed assets
(1,168,347)
8,331,782
Tax relating to other comprehensive income
(1,006,458)
(886,353)
Other comprehensive income for the year
(2,174,805)
7,445,429
Total comprehensive income for the year
3,494,968
12,868,486
Total comprehensive income for the year is all attributable to the owners of the parent company.
LENDLOCK GROUP LIMITED
GROUP BALANCE SHEET
AS AT
31 JULY 2023
31 July 2023
- 15 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
15
15,534,586
16,811,708
Investment property
16
945,000
1,257,156
16,479,586
18,068,864
Current assets
Stocks
19
9,398,885
9,482,207
Debtors
20
29,218,998
18,711,070
Cash at bank and in hand
15,155,486
17,531,880
53,773,369
45,725,157
Creditors: amounts falling due within one year
21
(14,341,240)
(12,046,584)
Net current assets
39,432,129
33,678,573
Total assets less current liabilities
55,911,715
51,747,437
Creditors: amounts falling due after more than one year
22
(561,792)
(625,792)
Provisions for liabilities
Deferred tax liability
24
2,502,946
1,769,636
(2,502,946)
(1,769,636)
Net assets
52,846,977
49,352,009
Capital and reserves
Called up share capital
26
100
100
Revaluation reserve
27
5,630,248
8,045,728
Other reserves
1,441,770
1,441,770
Profit and loss reserves
30
45,774,859
39,864,411
Total equity
52,846,977
49,352,009
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:
30 July 2024
Mr MJ Duffell
Director
Company registration number 04756823 (England and Wales)
LENDLOCK GROUP LIMITED
COMPANY BALANCE SHEET
AS AT 31 JULY 2023
31 July 2023
- 16 -
2023
2022
Notes
£
£
£
£
Fixed assets
Investments
17
3,665,001
3,665,001
Current assets
Debtors
20
83,582
36,173
Cash at bank and in hand
153,551
159,453
237,133
195,626
Creditors: amounts falling due within one year
21
(238,264)
(199,221)
Net current liabilities
(1,131)
(3,595)
Net assets
3,663,870
3,661,406
Capital and reserves
Called up share capital
26
100
100
Profit and loss reserves
30
3,663,770
3,661,306
Total equity
3,663,870
3,661,406

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £2,465 (2022 - £446 loss).

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

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:
30 July 2024
Mr MJ Duffell
Director
Company registration number 04756823 (England and Wales)
LENDLOCK GROUP LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JULY 2023
- 17 -
Share capital
Revaluation reserve
Merger reserve
Other reserves
Profit and loss reserves
Total
£
£
£
£
£
£
Balance at 1 August 2021
100
249,348
-
450,149
34,428,599
35,128,196
Year ended 31 July 2022:
Profit for the year
-
-
-
-
5,423,057
5,423,057
Other comprehensive income:
Revaluation of tangible fixed assets
-
8,331,782
-
-
-
8,331,782
Tax relating to other comprehensive income
-
(886,353)
-
-
-
0
(886,353)
Total comprehensive income
-
7,445,429
-
-
5,423,057
12,868,486
Transfers
-
-
876,049
-
-
876,049
Other movements
-
350,951
-
115,572
12,755
479,278
Balance at 31 July 2022
100
8,045,728
876,049
565,721
39,864,411
49,352,009
Year ended 31 July 2023:
Profit for the year
-
-
-
-
5,669,773
5,669,773
Other comprehensive income:
Revaluation of tangible fixed assets
-
(1,168,347)
-
-
-
(1,168,347)
Tax relating to other comprehensive income
-
(1,006,458)
-
-
-
0
(1,006,458)
Total comprehensive income
-
(2,174,805)
-
-
5,669,773
3,494,968
Other movements
-
(240,675)
-
-
240,675
-
Balance at 31 July 2023
100
5,630,248
876,049
565,721
45,774,859
52,846,977
LENDLOCK GROUP LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JULY 2023
- 18 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 August 2021
100
3,661,751
3,661,851
Year ended 31 July 2022:
Loss and total comprehensive income for the year
-
(445)
(445)
Balance at 31 July 2022
100
3,661,306
3,661,406
Year ended 31 July 2023:
Profit and total comprehensive income
-
2,464
2,464
Balance at 31 July 2023
100
3,663,770
3,663,870
LENDLOCK GROUP LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 JULY 2023
- 19 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash (absorbed by)/generated from operations
36
(854,874)
1,903,796
Interest paid
(35,189)
(5,639)
Income taxes paid
(1,041,036)
(854,509)
Net cash (outflow)/inflow from operating activities
(1,931,099)
1,043,648
Investing activities
Purchase of tangible fixed assets
(447,886)
(559,859)
Proceeds from disposal of tangible fixed assets
31,912
14,570
Repayment of loans
-
(191,191)
Interest received
(406,556)
(166,211)
Other income received from investments
553,096
166,215
Net cash used in investing activities
(269,434)
(736,476)
Financing activities
Net cash from acquisition of subsidiary
-
876,050
Repayment of bank loans
(184,004)
(223,999)
Net cash (used in)/generated from financing activities
(184,004)
652,051
Net (decrease)/increase in cash and cash equivalents
(2,384,537)
959,223
Cash and cash equivalents at beginning of year
17,531,880
16,572,657
Cash and cash equivalents at end of year
15,147,343
17,531,880
Relating to:
Cash at bank and in hand
15,155,486
17,531,880
Bank overdrafts included in creditors payable within one year
(8,143)
-
LENDLOCK GROUP LIMITED
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 JULY 2023
- 20 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash (absorbed by)/generated from operations
37
(5,902)
21,254
Net (decrease)/increase in cash and cash equivalents
(5,902)
21,254
Cash and cash equivalents at beginning of year
159,453
138,199
Cash and cash equivalents at end of year
153,551
159,453
LENDLOCK GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023
- 21 -
1
Accounting policies
Company information

Lendlock Group Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Guilden Sutton Lane, Guilden Sutton, Chester, Cheshire, England, CH3 7EX.

 

The group consists of Lendlock Group Limited and all of its subsidiaries. Subsidiaries are listed in note 18.

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
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Lendlock Group Limited together with all entities controlled by the parent company (its subsidiaries).

 

All financial statements are made up to 31 July 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.

Investments in joint ventures and associates are carried in the group balance sheet at cost plus post-acquisition changes in the group’s share of the net assets of the entity, less any impairment in value. The carrying values of investments in joint ventures and associates include acquired goodwill.

 

If the group’s share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the group does not recognise further losses unless it has incurred obligations to do so or has made payments on behalf of the joint venture or associate.

 

Unrealised gains arising from transactions with joint ventures and associates are eliminated to the extent of the group’s interest in the entity.

1.3
Going concern

At 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.

LENDLOCK GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
1
Accounting policies
(Continued)
- 22 -
1.4
Turnover

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

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

1.5
Research and development expenditure

Research and development expenditure is written off against profits in the year in which it is incurred.

1.6
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 5 years.

 

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

1.7
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 land and buildings
2% on cost
Leasehold land and buildings
2% on cost
Leasehold improvements
2% on cost
Plant and equipment
20% on reducing balance
Fixtures and fittings
20% on reducing balance
Computers
33% on cost
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 recognised in the profit and loss account.

LENDLOCK GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
1
Accounting policies
(Continued)
- 23 -
1.8
Investment properties

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

 

Property rented to a group entity is accounted for as tangible fixed assets.

1.9
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

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

1.10
Financial instruments

The group 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 group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and 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 group after deducting all of its liabilities.

LENDLOCK GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
1
Accounting policies
(Continued)
- 24 -
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.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

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

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 group’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 if, and only if, there is 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.

LENDLOCK GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
1
Accounting policies
(Continued)
- 25 -
1.12
Employee benefits

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

 

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

 

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

1.13
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 leased asset are consumed.

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.

1.15
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.

1.16
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.

2
Judgements and key sources of estimation uncertainty

In the application of the group’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.

 

 

 

 

 

 

LENDLOCK GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
- 26 -
3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
22,042,889
21,124,925
Europe
22,493,334
18,309,357
United States of America
64,398
12,287
Asia
181,529
71,895
Africa
-
3,339
44,782,150
39,521,803
2023
2022
£
£
Other revenue
Interest income
146,540
4
Grants received
-
20,927
4
Exceptional item
2023
2022
£
£
Expenditure
Redundancy costs - staff
110,065
-
5
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange differences apart from those arising on financial instruments measured at fair value through profit or loss
(36,285)
(384,916)
Government grants
-
(20,927)
Depreciation of owned tangible fixed assets
855,230
714,772
Profit on disposal of tangible fixed assets
(18,330)
(5,585)
Plant lease charges
7,188
7,822
6
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
20,000
14,500
Audit of the financial statements of the company's subsidiaries
86,500
76,500
106,500
91,000
LENDLOCK GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
6
Auditor's remuneration
(Continued)
- 27 -
For other services
Taxation compliance services
14,900
9,450
Other taxation services
750
750
All other non-audit services
256,615
164,576
272,265
174,776
7
Employees

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

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
Production
324
298
-
-
Sales and administration
105
99
-
-
Directors
8
8
8
8
Total
437
405
8
8

Their aggregate remuneration comprised:

Group
2023
2022
£
£
Wages and salaries
12,692,937
10,712,544
Social security costs
1,101,487
911,822
Pension costs
894,584
263,204
14,689,008
11,887,570
8
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
740,637
659,561
Company pension contributions to defined contribution schemes
16,184
12,295
756,821
671,856
LENDLOCK GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
8
Directors' remuneration
(Continued)
- 28 -
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
145,000
151,425
Company pension contributions to defined contribution schemes
1,257
3,600
9
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
35,189
34,466
Other interest on financial liabilities
-
(28,827)
35,189
5,639
10
Amounts written off investments
2023
2022
£
£
Amounts written back to/(written off) current loans
-
(191,191)
11
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
867,147
1,161,838
Adjustments in respect of prior periods
(98,742)
(93,694)
Total current tax
768,405
1,068,144
Deferred tax
Origination and reversal of timing differences
(290,033)
168,330
Total tax charge
478,372
1,236,474
LENDLOCK GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
11
Taxation
(Continued)
- 29 -

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
6,148,145
6,659,531
Expected tax charge based on the standard rate of corporation tax in the UK of 21.00% (2022: 19.00%)
1,291,110
1,265,311
Tax effect of expenses that are not deductible in determining taxable profit
284,853
15,203
Tax effect of utilisation of tax losses not previously recognised
(93)
-
0
Unutilised tax losses carried forward
-
0
1,224
Adjustments in respect of prior years
(98,745)
(85,874)
Effect of change in corporation tax rate
(51)
1,456
Group relief
(713)
-
0
Permanent capital allowances in excess of depreciation
(129,165)
39,997
Research and development tax credit
(578,793)
(400)
Deferred tax
(290,031)
(443)
Taxation charge
478,372
1,236,474

In addition to the amount charged to the profit and loss account, the following amounts relating to tax have been recognised directly in other comprehensive income:

2023
2022
£
£
Deferred tax arising on:
Revaluation of property
1,006,458
886,353
12
Individual income statement

As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements.

13
Research and development

The aggregate amount of research and development expenditure recognised as an expense during the year within the Group is £2,390,561 (2022: £1,467,834).

LENDLOCK GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
- 30 -
14
Intangible fixed assets
Group
Goodwill
£
Cost
At 1 August 2022 and 31 July 2023
4,458,812
Amortisation and impairment
At 1 August 2022 and 31 July 2023
4,458,812
Carrying amount
At 31 July 2023
-
0
At 31 July 2022
-
0
The company had no intangible fixed assets at 31 July 2023 or 31 July 2022.
LENDLOCK GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
- 31 -
15
Tangible fixed assets
Group
Freehold land and buildings
Leasehold land and buildings
Leasehold improvements
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
£
£
£
Cost or valuation
At 1 August 2022
12,417,830
1,120,000
618,456
9,463,938
675,854
(368)
213,688
24,509,398
Additions
-
0
-
0
51,426
331,782
64,678
-
0
-
0
447,886
Disposals
-
0
-
0
-
0
(22,000)
(264)
-
0
(12,800)
(35,064)
Revaluation
(952,364)
(120,000)
(65,377)
-
0
-
0
-
0
-
0
(1,137,741)
Transfers
524,534
-
0
(581,516)
-
0
-
0
-
0
-
0
(56,982)
At 31 July 2023
11,990,000
1,000,000
22,989
9,773,720
740,268
(368)
200,888
23,727,497
Depreciation and impairment
At 1 August 2022
-
0
-
0
75,921
7,053,736
455,718
(368)
112,683
7,697,690
Depreciation charged in the year
248,356
22,400
13,809
496,779
48,839
-
0
25,047
855,230
Eliminated in respect of disposals
-
0
-
0
-
0
(18,283)
(56)
-
0
(3,139)
(21,478)
Revaluation
(248,356)
(22,400)
(10,789)
-
0
-
0
-
0
-
0
(281,545)
Transfers
-
0
-
0
(56,986)
-
0
-
0
-
0
-
0
(56,986)
At 31 July 2023
-
0
-
0
21,955
7,532,232
504,501
(368)
134,591
8,192,911
Carrying amount
At 31 July 2023
11,990,000
1,000,000
1,034
2,241,488
235,767
-
0
66,297
15,534,586
At 31 July 2022
12,417,830
1,120,000
542,535
2,410,202
220,136
-
0
101,005
16,811,708
The company had no tangible fixed assets at 31 July 2023 or 31 July 2022.
LENDLOCK GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
- 32 -

The carrying value of land and buildings comprises:

Group
Company
2023
2022
2023
2022
£
£
£
£
Freehold
11,990,000
12,417,830
-
0
-
0
Long leasehold
1,000,000
1,120,000
-
0
-
0
12,990,000
13,537,830
-
-

Freehold land and buildings have been pledged to secure borrowings of the company. The company is not allowed to pledge these assets as security for other borrowings or to sell them to another entity.

Long leasehold property with a carrying amount of £1,000,000 and Freehold property with a carrying amount of

£11,990,000 were independently revalued in the individual companies in March 2024 by Grant Forbes, Chartered Surveyor, on an market value 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.

The revaluation surplus is disclosed in note 27.

 

Properties are carried at valuation. If properties were measured using the cost model, the carrying amounts for the group would have been approximately £3,193,837 (2022 - £3,279,693), being cost £5,057,855 (2022 - £5,057,855) and depreciation £1,864,018 (2022 - £1,778,162).

16
Investment property
Group
Company
2023
2023
£
£
Fair value
At 1 August 2022 and 31 July 2023
1,257,156
-
Net gains or losses through fair value adjustments
(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.

17
Fixed asset investments
Group
Company
2023
2022
2023
2022
£
£
£
£
Unlisted investments
-
0
-
0
3,665,001
3,665,001
LENDLOCK GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
17
Fixed asset investments
(Continued)
- 33 -
Movements in fixed asset investments
Company
Investments
£
Cost or valuation
At 1 August 2022 and 31 July 2023
3,665,001
Carrying amount
At 31 July 2023
3,665,001
At 31 July 2022
3,665,001
18
Subsidiaries

Details of the company's subsidiaries at 31 July 2023 are as follows:

Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
Indirect
Lendlock International Limited
Guilden Sutton Lane, Guilden Sutton, Chester, CH3 7EX
Supply of plastic and metalised closures
Ordinary
100.00
-
Specialist Anodising Company Limited
As above
Manufacture plastic closures and components
Ordinary
-
100.00
Scott Closures International Limited
As above
Aluminium pressing and anodisers
Ordinary
-
100.00
Nekem Limited
As above
Supply of packaging solutions
Ordinary
100.00
-
F-L Plastics Limited
As above
Supply of plastic bottles
Ordinary
100.00
-
GTL Plastics Limited
As above
Manufacture and supply of plastic bottles, containers, caps and closures
Ordinary
100.00
-
The aggregate capital and reserves and the result for the year of the subsidiaries noted above was as follows:
Name of undertaking
Capital and Reserves
Profit/(Loss)
£
£
Lendlock International Limited
21,764,739
4,512,017
Specialist Anodising Company Limited
27,573,397
2,912,135
Scott Closures International Limited
4,461,307
355,740
Nekem Limited
2,628,367
556,435
F-L Plastics Limited
-
(2,349)
GTL Plastics Limited
1,967,098
333,330

All subsidiaries listed above are included within these consolidated financial statements.

 

F-L Plastics Ltd is exempt from audit by parent guarantee for the year ended 31st July 2023.

LENDLOCK GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
- 34 -
19
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Raw materials and consumables
5,374,196
4,338,809
-
-
Work in progress
194,385
550,339
-
-
Finished goods and goods for resale
3,830,304
4,593,059
-
0
-
0
9,398,885
9,482,207
-
-
20
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
7,561,375
8,367,575
-
0
-
0
Corporation tax recoverable
214,106
-
0
-
0
-
0
Amounts owed by group undertakings
-
-
32,071
32,841
Other debtors
1,006,650
1,104,220
51,511
3,332
Prepayments and accrued income
667,903
307,526
-
0
-
0
9,450,034
9,779,321
83,582
36,173
Deferred tax asset (note 24)
16,885
-
0
-
0
-
0
9,466,919
9,779,321
83,582
36,173
Amounts falling due after more than one year:
Amount owed by related parties
19,752,079
8,931,749
-
0
-
0
Total debtors
29,218,998
18,711,070
83,582
36,173
LENDLOCK GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
- 35 -
21
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
23
72,143
184,004
-
0
-
0
Trade creditors
2,583,123
3,070,591
130
-
0
Amounts owed to group undertakings
-
0
-
0
22,518
-
0
Corporation tax payable
655,270
713,801
473
-
0
Other taxation and social security
860,916
1,008,104
209,593
178,456
Other creditors
8,105,715
5,950,812
5,550
20,765
Accruals and deferred income
2,064,073
1,119,272
-
0
-
0
14,341,240
12,046,584
238,264
199,221
22
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
23
561,792
625,792
-
0
-
0
Amounts included above which fall due after five years are as follows:
Payable by instalments
305,792
369,762
-
-
23
Loans and overdrafts
Group
Company
2023
2022
2023
2022
£
£
£
£
Bank loans
625,792
809,796
-
0
-
0
Bank overdrafts
8,143
-
0
-
0
-
0
633,935
809,796
-
-
Payable within one year
72,143
184,004
-
0
-
0
Payable after one year
561,792
625,792
-
0
-
0

The bank loans and overdrafts are secured by way of:

 

1. First legal charge over the freehold and leasehold properties held by the Group

2. A mortgage debenture given by all companies in the Group

3. A cross guarantee structure between all companies in the Group

LENDLOCK GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
23
Loans and overdrafts
(Continued)
- 36 -

The bank loans, which had a capital balance outstanding of £625,792 at 31 July 2023 (2022: £809,796) are repayable evenly over 10 years to 2033.

 

Interest is charged on the loan at 1.1% above bank rate. These interest costs are expensed to the profit and loss account in the period to which they relate.

24
Deferred taxation

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

Liabilities
Liabilities
Assets
Assets
2023
2022
2023
2022
Group
£
£
£
£
Accelerated capital allowances
916,011
518,720
16,885
-
Fixed asset property revaluations
1,507,170
1,081,994
-
-
Investment property
-
58,022
-
-
Other timing differences
79,765
110,900
-
-
2,502,946
1,769,636
16,885
-
The company has no deferred tax assets or liabilities.
Group
Company
2023
2023
Movements in the year:
£
£
Liability at 1 August 2022
1,769,636
-
Credit to profit or loss
(290,033)
-
Charge to other comprehensive income
1,006,458
-
Liability at 31 July 2023
2,486,061
-
25
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
894,584
263,204

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

LENDLOCK GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
- 37 -
26
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
of 1p each
10,000
10,000
100
100

The company has one class of ordinary share which carry full voting rights.

27
Revaluation reserve
Group
Company
2023
2022
2023
2022
£
£
£
£
At the beginning of the year
8,045,728
249,348
-
0
-
0
Revaluation arising in the year
(1,168,347)
8,331,782
-
0
-
0
Deferred tax on revaluation of tangible assets
(1,006,458)
(886,353)
-
-
Transfer to profit and loss
(240,675)
350,951
-
-
At the end of the year
5,630,248
8,045,728
-
0
-
28
Merger reserve
2023
2022
Group
£
£
At the beginning of the year
876,049
-
Additions
-
876,049
At the end of the year
876,049
876,049
2023
2022
Company
£
£
At the beginning and end of the year
-
-

The merger reserve arose on the share for share acquisition of GTL Plastics Ltd in 2022.

LENDLOCK GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
- 38 -
29
Other reserves
2023
2022
Group
£
£
At the beginning of the year
565,721
450,149
Other movements
-
115,572
At the end of the year
565,721
565,721
2023
2022
Company
£
£
At the beginning and end of the year
-
-

This reserve is used to record increases in the fair value of investment property. This reserve is non-distributable.

30
Profit and loss reserves
Group
Company
2023
2022
2023
2022
£
£
£
£
At the beginning of the year
39,864,411
34,428,599
3,661,306
3,661,751
Profit/(loss) for the year
5,669,773
5,423,057
2,464
(445)
Transfer from other reserves
240,675
12,755
-
-
At the end of the year
45,774,859
39,864,411
3,663,770
3,661,306
31
Operating lease commitments
Lessee

Lease payments recognised as an expense totalled £22,816 (2022: £23,251).

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Group
Company
2023
2022
2023
2022
£
£
£
£
Within one year
6,166
22,816
-
-
Between two and five years
-
5,903
-
-
6,166
28,719
-
-
LENDLOCK GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
- 39 -
32
Events after the reporting date

The Group's branch in France has closed post year-end. This has had no material impact on the consolidated financial statements.

 

Specialist Anodising Company Limited has acquired 100% of the share capital of Integrated Aluminium Components Ltd on 22nd December 2023.

33
Related party transactions
Remuneration of key management personnel

The remuneration of key management personnel is as follows.

2023
2022
£
£
Aggregate compensation
740,637
674,210
Transactions with related parties

During the year the group entered into the following transactions with related parties:

Sales
Sales
Purchases
Purchases
2023
2022
2023
2022
£
£
£
£
Group
Entities over which the group has control, joint control or significant influence
2,156,352
2,281,905
604,426
562,970

The following amounts were outstanding at the reporting end date:

Amounts due to related parties
2023
2022
£
£
Group
Entities over which the group has control, joint control or significant influence
88,590
147,717

Sales and purchases between related parties are made at normal market prices. Outstanding balances with entities are unsecured, interest free and cash settlement is expected within the ordinary course of the business.

At 31 July 2023 the group owed the directors £7,392,031 (2022 - £1,925,556).

 

No interest has been charged to the group in respect of these loans which are repayable on demand and classified as creditors due within one year.

LENDLOCK GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
33
Related party transactions
(Continued)
- 40 -

The following amounts were outstanding at the reporting end date:

Amounts due from related parties
2023
2022
Balance
Balance
£
£
Group
Entities over which the group has control, joint control or significant influence
1,196,844
6,385,950

Sales and purchases between related parties are made at normal market prices. Outstanding balances with entities are unsecured, interest free and cash settlement is expected within the ordinary course of the business.

34
Ultimate controlling party

Mr M J Duffell and Mrs V A Duffell are the ultimate controlling parties of the company.

35
Related party loans

Lendlock International Ltd 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 £3,391,257 resulting 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.

LENDLOCK GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
- 41 -
36
Cash (absorbed by)/generated from group operations
2023
2022
£
£
Profit for the year after tax
5,669,771
5,423,056
Adjustments for:
Taxation charged
478,372
1,236,474
Finance costs
35,189
5,639
Investment income
(699,636)
(166,219)
Gain on disposal of tangible fixed assets
(18,330)
(5,585)
Depreciation and impairment of tangible fixed assets
855,230
714,772
Amounts written off investment
-
191,191
Movements in working capital:
Decrease/(increase) in stocks
83,323
(2,902,398)
Increase in debtors
(9,723,841)
(5,452,867)
Increase in creditors
2,465,048
2,859,733
Cash (absorbed by)/generated from operations
(854,874)
1,903,796
37
Cash (absorbed by)/generated from operations - company
2023
2022
£
£
Profit/(loss) for the year after tax
2,464
(445)
Adjustments for:
Taxation charged
473
-
0
Movements in working capital:
Increase in debtors
(47,409)
(18,369)
Increase in creditors
38,570
40,068
Cash (absorbed by)/generated from operations
(5,902)
21,254
LENDLOCK GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
- 42 -
38
Analysis of changes in net funds - group
1 August 2022
Cash flows
31 July 2023
£
£
£
Cash at bank and in hand
17,531,880
(2,376,394)
15,155,486
Bank overdrafts
-
0
(8,143)
(8,143)
17,531,880
(2,384,537)
15,147,343
Borrowings excluding overdrafts
(809,796)
184,004
(625,792)
16,722,084
(2,200,533)
14,521,551
39
Analysis of changes in net funds - company
1 August 2022
Cash flows
31 July 2023
£
£
£
Cash at bank and in hand
159,453
(5,902)
153,551
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