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Registration number: 07540782

Land Recovery Rail Limited

Financial Statements

for the Year Ended 30 November 2023

 

Land Recovery Rail Limited

Contents

Balance Sheet

1

Notes to the Financial Statements

2 to 8

 

Land Recovery Rail Limited

(Registration number: 07540782)
Balance Sheet as at 30 November 2023

Note

2023
£

2022
£

Fixed assets

 

Tangible assets

4

2,364,078

2,681,785

Current assets

 

Stocks

5

144,000

-

Debtors

6

4,237,041

2,151,056

Cash at bank and in hand

 

90,031

22,360

 

4,471,072

2,173,416

Creditors: Amounts falling due within one year

7

(1,539,445)

(705,178)

Net current assets

 

2,931,627

1,468,238

Total assets less current liabilities

 

5,295,705

4,150,023

Creditors: Amounts falling due after more than one year

7

(454,626)

(1,021,349)

Provisions for liabilities

(591,020)

(309,304)

Net assets

 

4,250,059

2,819,370

Capital and reserves

 

Called up share capital

100

100

Retained earnings

4,249,959

2,819,270

Shareholders' funds

 

4,250,059

2,819,370

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 and directors report.

Approved and authorised by the Board on 7 May 2024 and signed on its behalf by:
 

.........................................
Mr D Beecroft
Director

 

Land Recovery Rail Limited

Notes to the Financial Statements for the Year Ended 30 November 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:
128 Crewe Road
Haslington
Crewe
Cheshire
CW1 5RQ
England

These financial statements were authorised for issue by the Board on 7 May 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.

These financial statements are prepared in Sterling, which is the functional currency of the company. All monetary amounts are rounded to the nearest £.

Audit report

The Independent Auditor's Report was unqualified. The name of the Senior Statutory Auditor who signed the audit report on 16 May 2024 was Mr Ian William Biddington, who signed for and on behalf of Alextra Audit Limited.

Judgements

In the application of the company's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where revision affects only that period, or in the period of revision and future periods where the revision affects both current and future periods.

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 sales/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.

 

Land Recovery Rail Limited

Notes to the Financial Statements for the Year Ended 30 November 2023

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, 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 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, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Plant and machinery

20% on reducing balance

Motor vehicles

25% on reducing balance

Furniture, fittings and equipment

15% straight line

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 and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories 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 profit or loss.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

 

Land Recovery Rail Limited

Notes to the Financial Statements for the Year Ended 30 November 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.

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.

Financial instruments

Classification
The company has elected to apply the provisions of Section 11 'Basic Financial Instruments' and Section 12 'Other Financial Instruments Issues' of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument.

Financial assets are classified into specified categories. The classification depends on the nature and purpose of the financial assets and is determined at the time of recognition.

Basic Financial Assets
Basic financial assets which include trade and other receivables and cash and bank balances, are initially measured at transaction price including transaction costs 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.

Classification of Financial Liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities, including trade and other payables, 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 receipts discounted at a market rate of interest.

Trade payables and obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts 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 payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

 

3

Staff numbers

The average number of persons employed by the company (including directors) during the year, was 9 (2022 - 7).

 

Land Recovery Rail Limited

Notes to the Financial Statements for the Year Ended 30 November 2023

4

Tangible assets

Furniture, fittings and equipment
 £

Motor vehicles
 £

Other tangible assets
£

Total
£

Cost or valuation

At 1 December 2022

1,074

52,475

3,845,267

3,898,816

Additions

-

-

648,690

648,690

Disposals

-

(52,475)

(373,690)

(426,165)

At 30 November 2023

1,074

-

4,120,267

4,121,341

Depreciation

At 1 December 2022

215

16,399

1,200,417

1,217,031

Charge for the year

161

-

556,470

556,631

Eliminated on disposal

-

(16,399)

-

(16,399)

At 30 November 2023

376

-

1,756,887

1,757,263

Carrying amount

At 30 November 2023

698

-

2,363,380

2,364,078

At 30 November 2022

859

36,076

2,644,850

2,681,785

Assets held under finance leases and hire purchase contracts

The net carrying amount of tangible assets includes the amounts in respect of assets held under finance leases and hire purchase contracts of £1,444,285 (2022: £1,805,357).

5

Stocks

2023
£

2022
£

Work in progress

144,000

-

6

Debtors

Current

Note

2023
£

2022
£

Trade debtors

 

675,795

-

Owed by related parties

9

3,550,789

2,140,434

Prepayments

 

7,973

3,842

Other debtors

 

2,484

6,780

   

4,237,041

2,151,056

 

Land Recovery Rail Limited

Notes to the Financial Statements for the Year Ended 30 November 2023

7

Creditors

Creditors: amounts falling due within one year

2023
£

2022
£

Due within one year

 

Loans and borrowings

554,965

543,208

Trade creditors

 

88,266

46,027

Owed to related parties

9

-

20,000

Taxation and social security

 

495,621

93,486

Other creditors

 

400,593

2,457

 

1,539,445

705,178

2023
£

2022
£

Current loans and borrowings

HP and finance lease liabilities

554,965

543,208

Creditors: amounts falling due after more than one year

2023
£

2022
£

Due after one year

 

Loans and borrowings

454,626

1,021,349

2023
£

2022
£

Non-current loans and borrowings

HP and finance lease liabilities

454,626

1,021,349

Hire purchase contracts are secured against the assets to which they relate, the carrying value of these assets have been detailed within the note to tangible assets.

8

Financial commitments, guarantees and contingencies

The company is party to certain loan facilities with a related party, Land Recovery Limited, that are secured on the assets of the company (Land Recovery Rail Limited). This charge contains a fixed and floating charge which covers all the property or undertaking of the company.

 

Land Recovery Rail Limited

Notes to the Financial Statements for the Year Ended 30 November 2023

9

Related party transactions

Income and receivables from related parties (Gross)

2023

Other related parties
£

Sale of goods

39,096,829

Settlement of liabilities

(39,096,829)

-

2022

Other related parties
£

Sale of goods

17,444,790

Settlement of liabilities

(17,444,790)

-

Expenditure with and payables to related parties (Gross)

2023

Other related parties
£

Purchase of goods

35,181,776

Settlement of liabilities

(35,181,776)

-

2022

Other related parties
£

Purchase of goods

15,700,310

Settlement of liabilities

(15,700,310)

-

 

Land Recovery Rail Limited

Notes to the Financial Statements for the Year Ended 30 November 2023

Loans to related parties

2023

Other related parties
£

Total
£

At start of period

2,140,434

2,140,434

Advanced

44,693,836

44,693,836

Repaid

(43,283,481)

(43,283,481)

At end of period

3,550,789

3,550,789

2022

Other related parties
£

Total
£

At start of period

2,077,955

2,077,955

Advanced

2,088,055

2,088,055

Repaid

(2,025,576)

(2,025,576)

At end of period

2,140,434

2,140,434

Loans from related parties

2023

Other related parties
£

Total
£

At start of period

20,000

20,000

Repaid

(20,000)

(20,000)

At end of period

-

-

2022

Other related parties
£

Total
£

Advanced

20,000

20,000

At end of period

20,000

20,000