REGISTERED NUMBER: |
Strategic Report, |
Report of the Directors and |
Financial Statements |
For The Year Ended |
31 December 2023 |
for |
LESTER CLADDING LIMITED |
REGISTERED NUMBER: |
Strategic Report, |
Report of the Directors and |
Financial Statements |
For The Year Ended |
31 December 2023 |
for |
LESTER CLADDING LIMITED |
LESTER CLADDING LIMITED (REGISTERED NUMBER: 01873478) |
Contents of the Financial Statements |
For The Year Ended 31 December 2023 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 4 |
Statement of Directors' Responsibilities | 6 |
Report of the Independent Auditors | 7 |
Profit and Loss Account | 11 |
Other Comprehensive Income | 12 |
Balance Sheet | 13 |
Statement of Changes in Equity | 14 |
Notes to the Financial Statements | 15 |
LESTER CLADDING LIMITED |
Company Information |
For The Year Ended 31 December 2023 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
SENIOR STATUTORY AUDITOR: |
AUDITORS: |
Chartered Certified Accountants and |
Statutory Auditors |
8 Eastway |
Sale |
Cheshire |
M33 4DX |
LESTER CLADDING LIMITED (REGISTERED NUMBER: 01873478) |
Strategic Report |
For The Year Ended 31 December 2023 |
The directors present their strategic report for the year ended 31 December 2022. |
REVIEW OF BUSINESS |
The directors are satisfied with the company's performance during the year. |
The company continues to specialise in roofing, cladding and envelope solutions for the construction industry. During 2023, business performance was affected by a number of external issues which placed downward pressure on margins achieved. Significantly increased material costs has contributed to a reduction in gross margins, although the company expects a lesser impact on gross profit margins in the forthcoming financial year as inflation continues to fall. |
Strong proactive management performance ensured the impacts of the above were reduced as far as possible through strong relationships with our suppliers, staff and contractors. |
Turnover saw an increase of 80% from 2022 which is encouraging and the directors expect turnover continue to increase in the forthcoming financial year. |
Administrative expenses have seen an increase of 60% which has been largely driven by an increase in depreciation charges due to the continued investment in fixed assets as the company strives to improve efficiencies. Additional staff members have also been recruited in the year to meet demand which as contributed to an increase in payroll costs. |
The increase in revenue has given rise to an increase in operating profit which has increased to £3.2m as opposed to £1.6m in the prior year. |
The directors are confident the balance sheet position will continue to show improvements during the 2024 financial year. Highlights of the results for 2023 show net current assets increasing from £4.5m in 2022 to £5.4m in 2023. The company's overall net assets amount to £9.9m as opposed to £8.7m in 2022. |
PRINCIPAL RISKS AND UNCERTAINTIES |
Other than general economic risks, the principal risks faced by the company remain those relating to a highly competitive tendering market, inflation in the supply chain costs, staff retention and changes in regulations and government planning. The company enters into long-term contracts in the normal course of business which introduces further commercial, inflation, customer and supply chain risks to the business which can impact on revenue and profit recognised on each contract. Significant levels of our current activity continue to relate to the building and construction sector which continue to be impacted by fierce competition and rising material prices. The directors actively manage this risk by working with selected clients in the private sector. |
The continuing conflict between Russia and Ukraine has disrupted worldwide supply chains and has resulted in significant increases in both inflation and interest rates to the UK economy. The future trends in both inflation and interest rates remains uncertain and has generated volatility in both our customer base and supply chain. |
The directors continue to monitor the potential impact of the above issues on our customers. |
KEY PERFORMANCE INDICATORS |
The directors have monitored the progress of the company with reference to certain financial key performance indicators: |
Revenue | £26m (2022: £14m) |
Gross profit | £5.2m (2022: £3.0m) |
Operating profit | £3.2m (2022: £1.6m) |
Profit before tax | £3.3m (2022: £1.6m) |
Net current assets | £5.4m (2022: £4.5m) |
Net assets | £9.9m (2022: £8.7m) |
Free cash flow | £5.7m (2022: £2.9m) |
Key performance indicators (KPIs) include revenue, gross profit and operating profit. These KPIs are selected as 'key' on the basis that the company is driven by gross margins on construction contracts and the directors strive to keep margins as high as possible in order to preserve profit. Operating profit is also a KPI on the grounds that it is an indicator of business performance, whereas profit before tax may include exceptional items. |
LESTER CLADDING LIMITED (REGISTERED NUMBER: 01873478) |
Strategic Report |
For The Year Ended 31 December 2023 |
FUTURE DEVELOPMENTS |
The company has devised a competitive pricing model for key materials and has mitigated exposure to logistical and product price increases by a formulaic pricing matrix. This will ensure the company maintains its margins on key products. A bespoke construction contract costing system is in place to ensure that profitability is maintained on construction contracts. |
Management are looking to further develop relations with its key customer base and take on new partners during the course of 2024 to strengthen business activity in the sector. |
ON BEHALF OF THE BOARD: |
LESTER CLADDING LIMITED (REGISTERED NUMBER: 01873478) |
Report of the Directors |
For The Year Ended 31 December 2023 |
The directors present their report with the financial statements of the company for the year ended 31 December 2023. |
DIVIDENDS |
Interim dividends per share were paid during the year as follows: |
Ordinary A £1 | - | £ |
Ordinary B £1 | - | £ |
Ordinary C £1 | - | £588.4035 |
Ordinary D £1 | - | £42500 |
Ordinary E £1 | - £47500 |
Ordinary F £1 | - £1866.6666 |
The total distribution of dividends for the year ended 31 December 2023 will be £ |
FUTURE DEVELOPMENTS |
Future developments are addressed in the strategic report. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 January 2023 to the date of this report. |
Other changes in directors holding office are as follows: |
FINANCIAL INSTRUMENTS |
The company uses financial instruments. These comprise trade and other debtors, trade and other creditors, directors' loans and bank balances. The existence of these financial instruments exposes the company to a number of financial risks, which are described in more detail below: |
Liquidity risk |
The company seeks to manage liquidity risk by ensuring sufficient liquidity is available to meet foreseeable needs and to invest cash safely and profitably. |
Interest rate risk |
The company finances its operations primarily through retained profits and bank accounts. The interest rate exposure of the financial assets and financial liabilities of the group as at 31 December 2023 is shown below. The table includes trade debtors, amounts recoverable on contracts and trade creditors which do not attract interest and therefore are subject to fair value interest rate risk: |
Fixed | Floating | Zero | Total |
£ | £ | £ | £ |
Financial assets |
Cash | - | 5,712 | - | 5,712 |
Trade debtors | - | - | 2,859 | 2,859 |
Other debtors | - | - | 200 | 200 |
Director's current account | - | - | 100 | 100 |
Fixed | Floating | Zero | Total |
£ | £ | £ | £ |
Financial liabilities |
Trade and other creditors | - | - | 3,329 | 3,329 |
Directors' current account | - | - | 110 | 110 |
Accruals | - | - | 41 | 41 |
Credit risk |
The company's principal financial assets are cash deposits, cash and trade debtors. The credit risk associated with cash is linked to the impact of long-term contracts with our customers where certain contract receipts are deferred for several months. The directors manage this risk through a detailed customer approval and acceptance process. |
LESTER CLADDING LIMITED (REGISTERED NUMBER: 01873478) |
Report of the Directors |
For The Year Ended 31 December 2023 |
DISCLOSURE IN THE STRATEGIC REPORT |
The company has chosen, in accordance with Companies Act 2006, s.414C(11) to set out in the strategic report information required by The Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch 7 to be contained in the directors' report. It has done this in respect of future developments. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
AUDITORS |
The auditors, Leavitt Walmsley Associates Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
LESTER CLADDING LIMITED (REGISTERED NUMBER: 01873478) |
Statement of Directors' Responsibilities |
For The Year Ended 31 December 2023 |
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
Report of the Independent Auditors to the Members of |
Lester Cladding Limited |
Opinion |
We have audited the financial statements of Lester Cladding Limited (the 'company') for the year ended 31 December 2023 which comprise the Profit and Loss Account, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
In our opinion the financial statements: |
- | give a true and fair view of the state of the company's affairs as at 31 December 2023 and of its profit for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
Conclusions relating to going concern |
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Strategic Report, the Report of the Directors and the Statement of Directors' Responsibilities, but does not include the financial statements and our Report of the Auditors thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether 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 the audit: |
- | the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
Report of the Independent Auditors to the Members of |
Lester Cladding Limited |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page six, 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 necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so. |
Report of the Independent Auditors to the Members of |
Lester Cladding Limited |
Auditors' 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 a Report of the Auditors 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. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
In relation to fraud, the objectives of our audit are to identify and assess the risk of material misstatement of the financial statements due to fraud, to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud through designing and implementing appropriate responses and to respond appropriately to fraud or suspected fraud identified during the audit. |
However, it is the primarily responsibility of management, with the oversight of those charged with governance, to ensure that the entity's operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud. |
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, the audit engagement team: |
- obtained an understanding of the nature of the industry and sector, including the legal and regulatory frameworks that the company operates in and how the company is complying with the legal and regulatory frameworks; |
- inquired of management, and those charged with governance, concerning their own identification and assessment of the risks of irregularities, including any known actual, suspected or alleged instances of fraud; and |
- discussed matters concerning non-compliance with laws and regulations and how fraud may occur including an assessment of how, and where, the financial statements may be susceptible to fraud. |
Significant laws and regulations having a direct impact on the financial statements |
As a result of these procedures, we consider the most significant laws and regulations that have a direct impact on the financial statements are: |
- FRS 102; |
- Companies Act 2006; and |
- Tax legislation. |
We performed audit procedures to detect any non-compliance which may have a material impact on the financial statements. These included reviewing financial statement disclosures, inspecting correspondence with local tax authorities and evaluating advice from external tax advisers. |
Significant laws and regulations having an indirect impact on the financial statements |
The most significant laws and regulations that have an indirect impact on the financial statements are those in relation to health and safety. We performed audit procedures to inquire of management and those charged with governance as to whether the company is in compliance with these laws and regulations and reviewed noticed published by the Health and Safety Executive. We also made inquiries with those charged with governance to identify any live and material claims or disputes with subcontractors or clients. |
Other risks relating to irregularities, including fraud |
The audit engagement team identified the risk of management override of controls, revenue recognition and estimates made in the valuation of amounts recoverable of contracts as the areas where the financial statements were most susceptible to material misstatement due to fraud. Audit procedures performed included, but were not limited to: |
- Testing manual journal entries and other adjustments and evaluating the business rationale in relation to significant, unusual transactions and transactions entered into outside the normal course of business and assessing whether the judgements made in making those accounting estimates are indicative of potential bias. |
- Testing a sample of revenue transactions recognised either side of the balance sheet date to determine whether revenue was recorded in the correct period. |
Report of the Independent Auditors to the Members of |
Lester Cladding Limited |
- Challenging judgements and estimates applied in the valuation of amounts recoverable on contracts by discussing contract performance, reviewing post-year-end performance of projects and comparing the outturn of projects with the estimates made in preparing the prior year's financial statements. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
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 a Report of the Auditors 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. |
for and on behalf of |
Chartered Certified Accountants and |
Statutory Auditors |
8 Eastway |
Sale |
Cheshire |
M33 4DX |
LESTER CLADDING LIMITED (REGISTERED NUMBER: 01873478) |
Profit and Loss Account |
For The Year Ended 31 December 2023 |
31.12.23 | 31.12.22 |
Notes | £ | £ | £ | £ |
TURNOVER | 3 |
Cost of sales |
GROSS PROFIT |
Administrative expenses |
3,123,477 | 1,657,001 |
Other operating income |
Gain/loss on revaluation of investments | - | (66,965 | ) |
OPERATING PROFIT | 5 |
Income from fixed asset investments |
Interest receivable and similar income |
131,221 | 25,159 |
PROFIT BEFORE TAXATION |
Tax on profit | 7 | ( |
) |
PROFIT FOR THE FINANCIAL YEAR |
LESTER CLADDING LIMITED (REGISTERED NUMBER: 01873478) |
Other Comprehensive Income |
For The Year Ended 31 December 2023 |
31.12.23 | 31.12.22 |
Notes | £ | £ |
PROFIT FOR THE YEAR |
OTHER COMPREHENSIVE INCOME |
Transfer to retained earnings | ( |
) |
Transfer non-distributable reserve |
Income tax relating to components of other comprehensive income |
OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
LESTER CLADDING LIMITED (REGISTERED NUMBER: 01873478) |
Balance Sheet |
31 December 2023 |
31.12.23 | 31.12.22 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 9 |
CURRENT ASSETS |
Debtors | 10 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 11 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
PROVISIONS FOR LIABILITIES | 12 |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 13 |
Revaluation reserve |
Retained earnings |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
LESTER CLADDING LIMITED (REGISTERED NUMBER: 01873478) |
Statement of Changes in Equity |
For The Year Ended 31 December 2023 |
Called up | Non |
share | Retained | Revaluation | distributable | Total |
capital | earnings | reserve | reserves | equity |
£ | £ | £ | £ | £ |
Balance at 1 January 2022 |
Changes in equity |
Dividends | - | ( |
) | - | - | ( |
) |
Total comprehensive income | - | 2,172,920 | ( |
) | 1,700,420 |
Balance at 31 December 2022 |
Changes in equity |
Dividends | - | ( |
) | - | - | ( |
) |
Total comprehensive income | - |
Balance at 31 December 2023 |
LESTER CLADDING LIMITED (REGISTERED NUMBER: 01873478) |
Notes to the Financial Statements |
For The Year Ended 31 December 2023 |
1. | STATUTORY INFORMATION |
Lester Cladding Limited is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
These financial statements have been prepared in accordance with the provisions of FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention. |
Going concern |
The directors have considered the working capital requirements of the business for a period of at least 12 months from the date of approval of the financial statements and consider these to be adequate to enable the company to meet its day-to-day obligations. |
After reviews of forecasts, cash resources and consideration of other support available from associated entities, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future, being a period of at least 12 months from the date of approval of these financial statements. |
Accordingly, the directors continue to adopt the going concern basis in the preparation of these financial statements. |
Financial Reporting Standard 102 - reduced disclosure exemptions |
The company has taken advantage of the following disclosure exemption in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland": |
• | the requirements of Section 7 Statement of Cash Flows. |
Critical accounting judgements and key sources of estimation uncertainty |
In the application of the company's accounting policies, management is required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. |
Critical accounting judgements include the following: |
Revenue recognition |
The company enters into long-term contracts in the normal course of business. The nature of such contracts introduces judgement and uncertainty into the recognition of revenue and profit for the business. |
LESTER CLADDING LIMITED (REGISTERED NUMBER: 01873478) |
Notes to the Financial Statements - continued |
For The Year Ended 31 December 2023 |
2. | ACCOUNTING POLICIES - continued |
Turnover |
Turnover is recognised to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured. Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, VAT and other sales taxes. |
Turnover on long-term construction contracts is recognised in accordance with the stage of completion of contractual obligations to the customer. The stage of completion of the contract at the balance sheet date is assessed by reference to the value of work done. |
When the outcome of a contract can be assessed reliably, contract turnover and associated costs are recognised as turnover and costs respectively by reference to the stage of completion of the contract activity at the balance sheet date. Full provision is made for losses on all contracts in the year in which the loss is first foreseen. |
Where the outcome of a contract cannot be estimated reliably, contract turnover is recognised only to the extent of contract costs incurred that it is probable will be recoverable, and contract costs are recognised in the period in which they are incurred. |
Tangible fixed assets |
Freehold property | - |
Improvements to property | - |
Plant and machinery | - |
Motor vehicles | - |
Fixtures & computers | - |
Tangible fixed assets are stated at cost less accumulated depreciation and accumulated impairment losses. Cost includes costs which are directly attributable in bringing the asset to its location and condition so that it is capable of operating in the manner intended by management. |
Assets under construction are recognised at cost and are not depreciated until they are brought into use by the entity. |
Residual values used in the calculation of depreciable amount are the expected amounts which would currently be obtained from disposal of assets, after deducting the estimated costs of disposal, if the assets were already of the age and in the condition expected at the end of their useful lives. |
Profits and losses on the disposal of fixed assets are included in the calculation of profit for the period. |
The directors assess the company's tangible assets for evidence of impairment at each reporting date. Where there are indicators of impairment, the directors calculate recoverable amount of the asset(s) and compare this with the carrying amount. If recoverable amount is lower than carrying amount, the asset is written down to recoverable amount by way of an impairment loss which is recognised in profit or loss for the period. Impairment losses are reversed when there is evidence that the reasons giving rise to the original impairment have ceased to apply. Impairment losses are reversed through profit and loss but only to the extent that the reversal does not increase the carrying amount of the asset to the amount which would have been stated, net of depreciation, had no impairment loss been recognised. |
LESTER CLADDING LIMITED (REGISTERED NUMBER: 01873478) |
Notes to the Financial Statements - continued |
For The Year Ended 31 December 2023 |
2. | ACCOUNTING POLICIES - continued |
Financial instruments |
The company has elected to apply (where applicable) 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 when the company becomes party to the contractual provisions of the instrument. |
Financial assets 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 trade and other debtors, amounts recoverable on contracts and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently measured at amortised cost using the effective interest rate, unless the arrangement constitutes a financing transaction, where the financial asset is measured at the present value of the future receipts discounted at a market rate of interest. |
Amounts recoverable on contracts |
Long-term contract balances included in amounts recoverable on contracts are stated at cost plus attributable profit, after provision has been made for any foreseeable losses and the deduction of applicable payments on account. |
Impairment of financial assets |
Financial assets, other than those held at fair value through profit or loss, are assessed for indicators of impairment at each balance sheet date. |
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset's original effective interest rate. The impairment loss is recognised in profit or loss. |
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss. |
Derecognition of financial assets |
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to a third party that is able to sell the asset in its entirety to an unrelated party. |
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 its liabilities. |
Basic financial liabilities |
Basic financial liabilities, including trade and other creditors and accruals are initially recognised at transaction price unless the arrangement constitutes a financing arrangement, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. |
Debt instruments are subsequently measured at amortised cost using the effective interest method. |
Derecognition of financial liabilities |
Financial liabilities are derecognised when, and only when, the company's contractual obligations are discharged, cancelled or they expire. |
Equity instruments |
LESTER CLADDING LIMITED (REGISTERED NUMBER: 01873478) |
Notes to the Financial Statements - continued |
For The Year Ended 31 December 2023 |
2. | ACCOUNTING POLICIES - continued |
Equity instruments issued by the company are recorded at the fair value of the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Profit and Loss Account, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. Deferred tax is calculated using timing difference plus approach. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. |
Employee benefits |
Short-term employee benefits are measured at the undiscounted amount expected to be paid in exchange for the employee's services to the company. Where employees have accrued short-term benefits which the entity has not paid by the balance sheet date, an accrual is recognised within creditors: amounts falling due within one year with an associated expense in profit or loss. |
Government grants |
Government grants are recognised when the entity expects to receive the grant and will comply with the grants conditions and are accounted for using the accrual model. |
Grants which become repayable are recognised as a liability in the balance sheet. |
Provisions for liabilities |
Provisions are made where an event has taken place that gives the company a legal or constructive obligation and it is probable that settlement of a transfer of economic will be required and a reliable estimate can be made of the amount of the obligation. |
Provisions are measured at the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties. |
Increases in provisions are charged as an expense in profit or loss. |
LESTER CLADDING LIMITED (REGISTERED NUMBER: 01873478) |
Notes to the Financial Statements - continued |
For The Year Ended 31 December 2023 |
3. | TURNOVER |
The turnover and profit before taxation are attributable to the one principal activity of the company. |
An analysis of turnover by class of business is given below: |
31.12.23 | 31.12.22 |
£ | £ |
All turnover arose within the United Kingdom. |
4. | EMPLOYEES AND DIRECTORS |
31.12.23 | 31.12.22 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
The average number of employees during the year was as follows: |
31.12.23 | 31.12.22 |
Management | 3 | 3 |
Administrative | 17 | 12 |
Direct | 25 | 21 |
31.12.23 | 31.12.22 |
£ | £ |
Directors' remuneration |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes |
5. | OPERATING PROFIT |
The operating profit is stated after charging: |
31.12.23 | 31.12.22 |
£ | £ |
Hire of plant and machinery |
Depreciation - owned assets |
Loss on disposal of fixed assets |
Motor expenses |
LESTER CLADDING LIMITED (REGISTERED NUMBER: 01873478) |
Notes to the Financial Statements - continued |
For The Year Ended 31 December 2023 |
6. | AUDITORS' REMUNERATION |
31.12.23 | 31.12.22 |
£ | £ |
Fees payable to the company's auditors for the audit of the company's financial statements |
10,600 |
10,000 |
7. | TAXATION |
Analysis of the tax charge/(credit) |
The tax charge/(credit) on the profit for the year was as follows: |
31.12.23 | 31.12.22 |
£ | £ |
Current tax: |
UK corporation tax |
Deferred tax | ( |
) |
Tax on profit | ( |
) |
UK corporation tax was charged at 19%) in 2022. |
Reconciliation of total tax charge/(credit) included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
31.12.23 | 31.12.22 |
£ | £ |
Profit before tax |
Profit multiplied by the standard rate of corporation tax in the UK of (2022 - |
Effects of: |
Expenses not deductible for tax purposes |
Income not taxable for tax purposes | ( |
) |
Capital allowances in excess of depreciation | ( |
) | ( |
) |
Adjustments to tax charge in respect of previous periods | ( |
) |
Balancing charge | 16,304 | 3,318 |
(Unwinding)/origination of timing differences re deferred tax | 105,547 | (116,611 | ) |
Tax effect of other interest | - | 383 |
Effect of a change in tax rate | (44,476 | ) | - |
Total tax charge/(credit) | 830,893 | (58,864 | ) |
Tax effects relating to effects of other comprehensive income |
There were no tax effects for the year ended 31 December 2023. |
31.12.22 |
Gross | Tax | Net |
£ | £ | £ |
Transfer to retained earnings | ( |
) | - | (472,500 | ) |
Transfer non-distributable reserve | - | 472,500 |
- | - | - |
In the Budget on 3 March 2021, the UK government announced an increased in the main UK corporation tax rate from 19% to 25% with effect from 1 April 2023. This change in rate was substantively enacted on 24 May 2021. The deferred tax assets and liabilities reflect the rate that is expected to apply on crystallisation. |
LESTER CLADDING LIMITED (REGISTERED NUMBER: 01873478) |
Notes to the Financial Statements - continued |
For The Year Ended 31 December 2023 |
8. | DIVIDENDS |
31.12.23 | 31.12.22 |
£ | £ |
Ordinary shares of £1 each |
Interim |
Ordinary A shares of £1 each |
Interim |
Ordinary B shares of £1 each |
Interim |
Ordinary C shares of £1 each |
Interim |
Ordinary D share of £1 |
Interim |
Ordinary E share of £1 |
Interim | 119,930 | 40,000 |
Ordinary F shares of £1 each |
Interim | 75,500 | 20,000 |
Ordinary G shares of £1 each |
Interim | 77,167 | 29,584 |
9. | TANGIBLE FIXED ASSETS |
Assets | Improvements |
Freehold | uder | to |
property | construction | property |
£ | £ | £ |
COST OR VALUATION |
At 1 January 2023 |
Additions |
Disposals |
At 31 December 2023 |
DEPRECIATION |
At 1 January 2023 |
Charge for year |
Eliminated on disposal |
At 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
LESTER CLADDING LIMITED (REGISTERED NUMBER: 01873478) |
Notes to the Financial Statements - continued |
For The Year Ended 31 December 2023 |
9. | TANGIBLE FIXED ASSETS - continued |
Plant and | Motor | Fixtures |
machinery | vehicles | & computers | Totals |
£ | £ | £ | £ |
COST OR VALUATION |
At 1 January 2023 |
Additions |
Disposals | ( |
) | ( |
) | ( |
) |
At 31 December 2023 |
DEPRECIATION |
At 1 January 2023 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) | ( |
) |
At 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
Included in cost or valuation of land and buildings is freehold land of £ 56,523 (2022 - £ 56,523 ) which is not depreciated. |
Cost or valuation at 31 December 2023 is represented by: |
Assets | Improvements |
Freehold | uder | to |
property | construction | property |
£ | £ | £ |
Valuation in 2017 | (7,803 | ) | - | - |
Valuation in 2021 | 171,000 | - | - |
Valuation in 2022 | 2,836,803 | - | - |
Cost | - | 25,860 | 212,165 |
3,000,000 | 25,860 | 212,165 |
Plant and | Motor | Fixtures |
machinery | vehicles | & computers | Totals |
£ | £ | £ | £ |
Valuation in 2017 | - | - | - | (7,803 | ) |
Valuation in 2021 | - | - | - | 171,000 |
Valuation in 2022 | - | - | - | 2,836,803 |
Cost | 2,360,994 | 909,292 | 192,339 | 3,700,650 |
2,360,994 | 909,292 | 192,339 | 6,700,650 |
LESTER CLADDING LIMITED (REGISTERED NUMBER: 01873478) |
Notes to the Financial Statements - continued |
For The Year Ended 31 December 2023 |
10. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31.12.23 | 31.12.22 |
£ | £ |
Trade debtors |
Amts recoverable on contracts | - | 165,391 |
Other debtors |
Directors' current accounts | 99,530 | 49,530 |
Tax |
VAT |
Prepayments |
Amounts owed by the director are unsecured, interest-free and are repayable on demand. Further information relating to directors' current accounts is shown in note 16. |
11. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31.12.23 | 31.12.22 |
£ | £ |
Trade creditors |
Tax |
Social security and other taxes |
Other creditors |
Directors' current accounts | 109,880 | - |
Accrued expenses |
12. | PROVISIONS FOR LIABILITIES |
31.12.23 | 31.12.22 |
£ | £ |
Deferred tax | 418,011 | 312,464 |
Deferred |
tax |
£ |
Balance at 1 January 2023 |
Provided during year |
Reversal of timing differences |
Balance at 31 December 2023 |
13. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 31.12.23 | 31.12.22 |
value: | £ | £ |
Ordinary | £1 | 198 | 198 |
Ordinary A | £1 | 35 | 35 |
Ordinary B | £1 | 25 | 25 |
Ordinary C | £1 | 20 | 20 |
Ordinary D | £1 | 1 | 1 |
1 | Ordinary E | £1 | 1 | 1 |
15 | Ordinary F | £1 | 15 | 15 |
5 | Ordinary G | £1 | 5 | 5 |
300 | 300 |
LESTER CLADDING LIMITED (REGISTERED NUMBER: 01873478) |
Notes to the Financial Statements - continued |
For The Year Ended 31 December 2023 |
14. | ULTIMATE PARENT COMPANY |
Lester Cladding Group Holdings Ltd is regarded by the directors as being the company's ultimate parent company. |
The smallest and largest group in which the company is consolidated is Lester Cladding Group Holdings Ltd. |
Copies of the parent company's consolidated financial statements are available from Companies House. |
15. | CONTINGENT LIABILITIES |
During the year an incident arose on site which is still in the early stages of investigation. The information required by FRS 102, Section 21 'Provisions and Contingencies' in respect of contingent liabilities, including any potential settlement, has not been disclosed on the grounds that it could be prejudicial to the outcome. |
The company carried out work on a contract during the year amounting to £887k for which settlement has been received. Subsequently, a contractor that was party to the transaction went into bankruptcy and the company may be called upon to make repayment in light of the circumstances surrounding the bankruptcy. At the balance sheet date, payment was only possible rather than probable. |
16. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES |
The following advances and credits to directors subsisted during the years ended 31 December 2023 and 31 December 2022: |
31.12.23 | 31.12.22 |
£ | £ |
Balance outstanding at start of year | ( |
) |
Amounts advanced |
Amounts repaid | ( |
) | ( |
) |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year | ( |
) |
Balance outstanding at start of year |
Amounts advanced |
Amounts repaid | ( |
) | ( |
) |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year |
Balance outstanding at start of year | ( |
) |
Amounts advanced |
Amounts repaid | ( |
) | ( |
) |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year |
Balance outstanding at start of year |
Amounts advanced |
Amounts repaid |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year |
LESTER CLADDING LIMITED (REGISTERED NUMBER: 01873478) |
Notes to the Financial Statements - continued |
For The Year Ended 31 December 2023 |
16. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES - continued |
Advances to directors are interest free and repayable on demand. No amounts were waived or written off (2022: no amounts). |
17. | RELATED PARTY DISCLOSURES |
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. |
31.12.23 | 31.12.22 |
£ | £ |
Sales |
Purchases |
Amount due from related parties |
Amount due to related party |
18. | FINANCIAL INSTRUMENTS |
Financial assets | 31.12.23 | 31.12.22 |
£ | £ |
Financial assets measured at amortised cost | 8,870,741 | 7,210,075 |
Financial liabilities |
Financial liabilities measured at amortised cost | 3,480,692 | 3,204,138 |
Financial assets measured at amortised cost include debtors, cash and the director's current account balance. |
Financial liabilities measured at amortised cost include creditors and accruals and the directors' current account balances. |