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Registration number: 06114993

Lee Brothers Limited

Unaudited Filleted Financial Statements

for the Period from 1 August 2022 to 31 October 2023

 

Lee Brothers Limited

Contents

Company Information

1

Balance Sheet

2 to 3

Notes to the Unaudited Financial Statements

4 to 12

 

Lee Brothers Limited

Company Information

Directors

C. P. Lee

D. R. Groves

Registered office

Unit 3 Terracotta Court
Hathernware Industrial Estate
Rempstone Road
Normanton on Soar
LE12 5ES

Accountants

Robert Whowell & Partners LLP
Chartered Accountants
Westwood House
78 Loughborough Road
Quorn
Loughborough
Leicestershire
LE12 8DX

 

Lee Brothers Limited

(Registration number: 06114993)
Balance Sheet as at 31 October 2023

Note

31 October
2023
£

31 July
2022
£

Fixed assets

 

Intangible assets

4

34,875

46,500

Tangible assets

5

271,453

296,747

Investment property

6

1,729,457

700,000

 

2,035,785

1,043,247

Current assets

 

Stocks

7

25,000

24,750

Debtors

8

2,446,434

2,357,823

Cash at bank and in hand

 

447,785

160,326

 

2,919,219

2,542,899

Creditors: Amounts falling due within one year

9

(1,113,956)

(508,804)

Net current assets

 

1,805,263

2,034,095

Total assets less current liabilities

 

3,841,048

3,077,342

Creditors: Amounts falling due after more than one year

9

(551,954)

(50,561)

Provisions for liabilities

(83,535)

(104,138)

Net assets

 

3,205,559

2,922,643

Capital and reserves

 

Called up share capital

10

1

1

Other reserves

89,852

89,852

Retained earnings

3,115,706

2,832,790

Shareholders' funds

 

3,205,559

2,922,643

 

Lee Brothers Limited

(Registration number: 06114993)
Balance Sheet as at 31 October 2023

For the financial period ending 31 October 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

The members have not required the company to obtain an audit of its accounts for the period in question in accordance with section 476; and

The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime. As permitted by section 444 (5A) of the Companies Act 2006, the directors have not delivered to the registrar a copy of the Profit and Loss Account.

Approved and authorised by the Board on 24 July 2024 and signed on its behalf by:
 

.........................................
C. P. Lee
Director

 

Lee Brothers Limited

Notes to the Unaudited Financial Statements for the Period from 1 August 2022 to 31 October 2023

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
Unit 3 Terracotta Court
Hathernware Industrial Estate
Rempstone Road
Normanton on Soar
LE12 5ES

These financial statements were authorised for issue by the Board on 24 July 2024.

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

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

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A smaller entities - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006 (as applicable to companies subject to the small companies' regime).

Basis of preparation

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

Going concern

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

Revenue recognition

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

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

 

Lee Brothers Limited

Notes to the Unaudited Financial Statements for the Period from 1 August 2022 to 31 October 2023

Tax

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

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

Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.

Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

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

Depreciation

Depreciation is charged so as to write off the cost of assets over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Furniture, fittings and equipment

25% reducing balance

Motor vehicles

25% reducing balance

Plant and machinery

25% reducing balance

Investment property

Investment property is carried at fair value, derived from the current market prices for comparable real estate determined annually. The valuers use observable market prices, adjusted if necessary for any difference in the nature, location or condition of the specific asset. Changes in fair value are recognised in the profit and loss account.

Goodwill

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

 

Lee Brothers Limited

Notes to the Unaudited Financial Statements for the Period from 1 August 2022 to 31 October 2023

Amortisation

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

Asset class

Amortisation method and rate

Goodwill

5% on cost

Cash and cash equivalents

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

Trade debtors

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

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the debtors.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.

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

Trade creditors

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

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

 

Lee Brothers Limited

Notes to the Unaudited Financial Statements for the Period from 1 August 2022 to 31 October 2023

Share capital

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

Dividends

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

Defined contribution pension obligation

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

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

3

Staff numbers

The average number of persons employed by the company (including directors) during the period, was 28 (2022 - 16).

 

Lee Brothers Limited

Notes to the Unaudited Financial Statements for the Period from 1 August 2022 to 31 October 2023

4

Intangible assets

Goodwill
 £

Total
£

Cost or valuation

At 1 August 2022

186,000

186,000

At 31 October 2023

186,000

186,000

Amortisation

At 1 August 2022

139,500

139,500

Amortisation charge

11,625

11,625

At 31 October 2023

151,125

151,125

Carrying amount

At 31 October 2023

34,875

34,875

At 31 July 2022

46,500

46,500

 

Lee Brothers Limited

Notes to the Unaudited Financial Statements for the Period from 1 August 2022 to 31 October 2023

5

Tangible assets

Furniture, fittings and equipment
 £

Motor vehicles
 £

Plant and machinery
£

Total
£

Cost or valuation

At 1 August 2022

40,069

489,106

362,482

891,657

Additions

6,827

81,704

2,924

91,455

Disposals

-

(107,501)

-

(107,501)

At 31 October 2023

46,896

463,309

365,406

875,611

Depreciation

At 1 August 2022

29,755

265,571

299,584

594,910

Charge for the period

4,812

82,915

19,163

106,890

Eliminated on disposal

-

(97,642)

-

(97,642)

At 31 October 2023

34,567

250,844

318,747

604,158

Carrying amount

At 31 October 2023

12,329

212,465

46,659

271,453

At 31 July 2022

10,314

223,535

62,898

296,747

6

Investment properties

31 October
2023
£

At 1 August 2022

700,000

Additions

1,029,457

At 31 October 2023

1,729,457

The directors are of the opinion that the value of the properties have not changed and therefore have not been revalued at the year end.

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

 

Lee Brothers Limited

Notes to the Unaudited Financial Statements for the Period from 1 August 2022 to 31 October 2023

7

Stocks

31 October
2023
£

31 July
2022
£

Stocks

25,000

24,750

8

Debtors

Current

31 October
2023
£

31 July
2022
£

Trade debtors

675,449

551,485

Amounts owed by related parties

1,623,220

1,708,487

Other debtors

147,765

97,851

 

2,446,434

2,357,823

9

Creditors

Creditors: amounts falling due within one year

Note

31 October
2023
£

31 July
2022
£

Due within one year

 

Loans and borrowings

11

144,391

21,847

Trade creditors

 

713,061

321,920

Taxation and social security

 

122,344

15,106

Accruals and deferred income

 

2,600

1,900

Other creditors

 

131,560

148,031

 

1,113,956

508,804


Creditors include net obligations under other loans and hire purchase contracts which are secured of £144,391 (2022 - £21,847).

 

Lee Brothers Limited

Notes to the Unaudited Financial Statements for the Period from 1 August 2022 to 31 October 2023

Creditors: amounts falling due after more than one year

Note

31 October
2023
£

31 July
2022
£

Due after one year

 

Loans and borrowings

11

551,954

50,561


Creditors include net obligations under other loans and hire purchase contracts which are secured of £551,954 (2022 - £50,561).

10

Share capital

Allotted, called up and fully paid shares

31 October
2023

31 July
2022

No.

£

No.

£

Ordinary shares of £1 each

1

1

1

1

       

11

Loans and borrowings

Non-current loans and borrowings

31 October
2023
£

31 July
2022
£

Hire purchase contracts

39,464

50,561

Other borrowings

512,490

-

551,954

50,561

Current loans and borrowings

31 October
2023
£

31 July
2022
£

Hire purchase contracts

33,291

21,847

Other borrowings

111,100

-

144,391

21,847

 

Lee Brothers Limited

Notes to the Unaudited Financial Statements for the Period from 1 August 2022 to 31 October 2023

12

Related party transactions

Summary of transactions with other related parties

During the period a director has received dividends amounting to £4,770 (2022: £10,940)

During the period rent amounting to £52,500 was paid to a company under common control, Lee Brothers Properties Limited (2022: £63,269).