REGISTERED NUMBER: 07395451 (England and Wales) |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
FOR |
LUCAS UK GROUP LIMITED |
REGISTERED NUMBER: 07395451 (England and Wales) |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
FOR |
LUCAS UK GROUP LIMITED |
LUCAS UK GROUP LIMITED (REGISTERED NUMBER: 07395451) |
CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 3 |
Report of the Independent Auditors | 4 |
Consolidated Profit And Loss Account | 7 |
Consolidated Statement of Financial Position | 8 |
Company Statement of Financial Position | 9 |
Consolidated Statement of Changes in Equity | 10 |
Company Statement of Changes in Equity | 11 |
Consolidated Statement of Cash Flows | 12 |
Notes to the Consolidated Statement of Cash Flows | 13 |
Notes to the Consolidated Financial Statements | 15 |
LUCAS UK GROUP LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Accountants and Registered Auditors |
5 Giffard Court |
Millbrook Close |
Northampton |
Northamptonshire |
NN5 5JF |
LUCAS UK GROUP LIMITED (REGISTERED NUMBER: 07395451) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
The directors present their strategic report of the company and the group for the year ended 31 December 2023. |
REVIEW OF BUSINESS |
Lucas UK Group Limited is the parent to a holding company and two trading companies. Lucas Finishing Specialists Limited is an established specialist spray and painting contractor with a track-record spanning seven decades operating within the top end of the UK Construction Industry mainly working for high profile blue chip clients on landmark projects which currently include Elephant & Castle, Museum of London, and Olympia. Lucas Fit Out Limited is a specialist fit out contractor carrying out high profile fit out projects for major blue chip clients currently including Paddington Square, 10 Whitechapel, and AZ. |
The market has remained very competitive in the period given the economic climate. The directors continued to take action to maintain and strengthen the group's order book going forward. This has included redefining existing forecasts, focussing on its core painting service, and increasing its number of clients in its target London market. |
The results for the group show a pre-tax profit of £1,222,111 (prior period £117,646) for the period from sales of £15,226,244 (prior period £15,690,841 ). |
CURRENT POST YEAR END CONDITIONS |
The Group has experienced a challenging trading period as a result of general market conditions and this has resulted in some major projects encountering delayed start dates. |
During the year, the company focussed on streamlining operating costs whilst driving its pipeline and order book with a focus on its core painting service and has been able to successfully navigate through tough market conditions, making it fitter and stronger for a soon to return rising market. |
PRINCIPAL RISKS AND UNCERTAINTIES |
Our built-in risk management approach of picking our clients, running tight credit control procedures and maintaining a streamlined operation continues to allow us to manage our cash well and build profits and reserves. This strategy continues to serve the Group successfully as evidenced by our results and is seen as a fit for purpose business model that is relevant to the risks and uncertainties that continue in our sector. |
FUTURE OUTLOOK |
Our goal is to continue building a sustainable business that stands out in the painting and finishing sector of our market. A key foundation to this success will be our ability to achieve Net Zero. Since 2018 the Group has achieved and openly published independently verified data that demonstrates Carbon Neutrality and is committed to and on track to achieve Net Zero by 2030. |
ON BEHALF OF THE BOARD: |
LUCAS UK GROUP LIMITED (REGISTERED NUMBER: 07395451) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
The directors present their report with the financial statements of the company and the group for the year ended 31 December 2023. |
PRINCIPAL ACTIVITY |
The principal activity of the group in the year under review was that of spray painting contractors, supply of surface coatings, fit out and redecoration specialists. |
DIVIDENDS |
The total distribution of dividends for the year will be £85,000. |
EVENTS SINCE THE END OF THE YEAR |
Information relating to events since the end of the year is given in the notes to the financial statements. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 January 2023 to the date of this report. |
POLITICAL DONATIONS AND EXPENDITURE |
The company has not made a political donation in the year.. All donations paid are for charitable purposes. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Group 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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 the group and of the profit or loss of the group 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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
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 group's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
AUDITORS |
The auditors, Cube Partners Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
LUCAS UK GROUP LIMITED |
Opinion |
We have audited the financial statements of Lucas UK Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023 which comprise the Consolidated Profit And Loss Account, Consolidated Statement of Financial Position, Company Statement of Financial Position, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Statement of Cash Flows and Notes to the Consolidated Statement of Cash Flows, 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 group's and of the parent company affairs as at 31 December 2023 and of the group's 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 group 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 the 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 directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, 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 Group 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 Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
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 its environment obtained in the course of the audit, we have not identified material misstatements in the Group 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the parent company 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. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
LUCAS UK GROUP LIMITED |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page three, 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 group's and 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 group or the parent company or to cease operations, or have no realistic alternative but to do so. |
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: |
We considered the central laws and regulations to the entity and identified those of significance to the entity. The significant laws and regulations include health and safety. We undertook an enquiry of management and those charged with governance to evaluate those of significance and any instances of non-compliance. |
Through discussion, and where appropriate, written representation, we obtained an understanding of the entity’s policies and procedures on fraud risks, including knowledge of any actual, suspected or alleged fraud. |
Where necessary documentation scrutiny was used to determine the significance of any instances of non-compliance of central laws and regulations. |
We communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit. |
The risk of management override of controls and understatement of revenue were identified to have the greatest risk of material misstatement from irregularities, including fraud, on the financial statements. Our audit procedures to respond to these risks included enquiries of management about their own identification and assessment of the risks of regularities, sample testing on the posting of journals, reviewing of regulatory correspondence and professional fees, detailed substantive testing on the completeness of income, and reviewing accounting estimates for biases. |
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. |
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. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
LUCAS UK GROUP LIMITED |
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 Accountants and Registered Auditors |
5 Giffard Court |
Millbrook Close |
Northampton |
Northamptonshire |
NN5 5JF |
LUCAS UK GROUP LIMITED (REGISTERED NUMBER: 07395451) |
CONSOLIDATED PROFIT AND LOSS ACCOUNT |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
2023 | 2022 |
Notes | £ | £ |
TURNOVER | 3 | 15,226,244 | 15,690,841 |
Cost of sales | 11,533,649 | 11,829,601 |
GROSS PROFIT | 3,692,595 | 3,861,240 |
Administrative expenses | 2,919,630 | 3,200,772 |
772,965 | 660,468 |
Other operating income | 4 | 1,053,211 | 38,000 |
1,826,176 | 698,468 |
Loss on disposal of assets | 6 | 270,943 | - |
1,555,233 | 698,468 |
Interest receivable and similar income | 14,076 | 8,165 |
1,569,309 | 706,633 |
Interest payable and similar expenses | 7 | 347,198 | 588,987 |
PROFIT BEFORE TAXATION | 8 | 1,222,111 | 117,646 |
Tax on profit | 9 | 139,644 | 79,561 |
PROFIT FOR THE FINANCIAL YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
1,082,467 |
38,085 |
Profit attributable to: |
Owners of the parent | 1,082,467 | 38,085 |
Total comprehensive income attributable to: |
Owners of the parent | 1,082,467 | 38,085 |
LUCAS UK GROUP LIMITED (REGISTERED NUMBER: 07395451) |
CONSOLIDATED STATEMENT OF FINANCIAL POSITION |
31 DECEMBER 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 12 | 940,643 | 1,081,189 |
Tangible assets | 13 | 303,753 | 590,524 |
Investments | 14 | - | - |
1,244,396 | 1,671,713 |
CURRENT ASSETS |
Stocks | 15 | 182,043 | 221,054 |
Debtors | 16 | 3,606,244 | 3,478,933 |
Cash at bank | 350,656 | 712,031 |
4,138,943 | 4,412,018 |
CREDITORS |
Amounts falling due within one year | 17 | 2,151,339 | 2,314,638 |
NET CURRENT ASSETS | 1,987,604 | 2,097,380 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
3,232,000 |
3,769,093 |
CREDITORS |
Amounts falling due after more than one year | 18 | (2,059,535 | ) | (3,576,428 | ) |
PROVISIONS FOR LIABILITIES | 22 | (62,097 | ) | (79,764 | ) |
NET ASSETS | 1,110,368 | 112,901 |
CAPITAL AND RESERVES |
Called up share capital | 23 | 534,501 | 534,501 |
Share premium | 24 | 1,775 | 1,775 |
Capital redemption reserve | 24 | 628,263 | 628,263 |
Retained earnings | 24 | (54,171 | ) | (1,051,638 | ) |
SHAREHOLDERS' FUNDS | 1,110,368 | 112,901 |
The financial statements were approved by the Board of Directors and authorised for issue on 6 August 2024 and were signed on its behalf by: |
Mr D A Lucas - Director |
LUCAS UK GROUP LIMITED (REGISTERED NUMBER: 07395451) |
COMPANY STATEMENT OF FINANCIAL POSITION |
31 DECEMBER 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 12 |
Tangible assets | 13 |
Investments | 14 |
CURRENT ASSETS |
Debtors | 16 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 17 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year | 18 |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 23 |
Share premium | 24 |
Capital redemption reserve | 24 |
Retained earnings | 24 |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | 1,085,000 | 662,500 |
The financial statements were approved by the Board of Directors and authorised for issue on |
LUCAS UK GROUP LIMITED (REGISTERED NUMBER: 07395451) |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
Called up | Capital |
share | Retained | Share | redemption | Total |
capital | earnings | premium | reserve | equity |
£ | £ | £ | £ | £ |
Balance at 1 January 2022 | 1,009,501 | (427,221 | ) | 1,775 | 153,263 | 737,318 |
Changes in equity |
Reduction in share capital | (475,000 | ) | (522,500 | ) | - | 475,000 | (522,500 | ) |
Dividends | - | (140,000 | ) | - | - | (140,000 | ) |
Total comprehensive income | - | 38,083 | - | - | 38,083 |
Balance at 31 December 2022 | 534,501 | (1,051,638 | ) | 1,775 | 628,263 | 112,901 |
Changes in equity |
Dividends | - | (85,000 | ) | - | - | (85,000 | ) |
Total comprehensive income | - | 1,082,467 | - | - | 1,082,467 |
Balance at 31 December 2023 | 534,501 | (54,171 | ) | 1,775 | 628,263 | 1,110,368 |
LUCAS UK GROUP LIMITED (REGISTERED NUMBER: 07395451) |
COMPANY STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
Called up | Capital |
share | Retained | Share | redemption | Total |
capital | earnings | premium | reserve | equity |
£ | £ | £ | £ | £ |
Balance at 1 January 2022 |
Changes in equity |
Reduction in share capital | (475,000 | ) | (522,500 | ) | - | 475,000 | (522,500 | ) |
Dividends | - | ( |
) | - | - | ( |
) |
Total comprehensive income | - | - |
Balance at 31 December 2022 |
Changes in equity |
Dividends | - | ( |
) | - | - | ( |
) |
Total comprehensive income | - | - |
Balance at 31 December 2023 |
LUCAS UK GROUP LIMITED (REGISTERED NUMBER: 07395451) |
CONSOLIDATED STATEMENT OF CASH FLOWS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
2023 | 2022 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 925,994 | 144,845 |
Interest paid | (327,848 | ) | (869,397 | ) |
Interest element of hire purchase payments paid | (19,349 | ) | (6,590 | ) |
Tax paid | (43,846 | ) | - |
Taxation refund | - | 200,875 |
Net cash from operating activities | 534,951 | (530,267 | ) |
Cash flows from investing activities |
Purchase of tangible fixed assets | (6,000 | ) | (79,670 | ) |
Sale of tangible fixed assets | 23,482 | 10,650 |
Interest received | 14,076 | 8,165 |
Net cash from investing activities | 31,558 | (60,855 | ) |
Cash flows from financing activities |
Loan repayments in year | (600,000 | ) | (491,450 | ) |
Hire purchase repayments | (67,614 | ) | (59,011 | ) |
Amount introduced by directors | 33,884 | 732,500 |
Amount withdrawn by directors | (384,891 | ) | (342,203 | ) |
Capital redemption | - | (522,500 | ) |
Equity dividends paid | (85,000 | ) | (140,000 | ) |
Net cash from financing activities | (1,103,621 | ) | (822,664 | ) |
Decrease in cash and cash equivalents | (537,112 | ) | (1,413,786 | ) |
Cash and cash equivalents at beginning of year | 2 | 516,203 | 1,929,989 |
Cash and cash equivalents at end of year | 2 | (20,909 | ) | 516,203 |
LUCAS UK GROUP LIMITED (REGISTERED NUMBER: 07395451) |
NOTES TO THE CONSOLIDATED STATEMENT OF CASH FLOWS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2023 | 2022 |
£ | £ |
Profit before taxation | 1,222,111 | 117,644 |
Depreciation charges | 281,453 | 238,154 |
Loss/(profit) on disposal of fixed assets | 5,778 | (8,804 | ) |
Exceptional income | (1,000,000 | ) | - |
Exceptional loss | 270,943 | - |
Finance costs | 347,198 | 588,987 |
Finance income | (14,076 | ) | (8,165 | ) |
1,113,407 | 927,816 |
Decrease in stocks | 39,011 | 33,172 |
Decrease/(increase) in trade and other debtors | 223,696 | (322,341 | ) |
Decrease in trade and other creditors | (450,120 | ) | (493,802 | ) |
Cash generated from operations | 925,994 | 144,845 |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts: |
Year ended 31 December 2023 |
31.12.23 | 1.1.23 |
£ | £ |
Cash and cash equivalents | 350,656 | 712,031 |
Bank overdrafts | (371,565 | ) | (195,828 | ) |
(20,909 | ) | 516,203 |
Year ended 31 December 2022 |
31.12.22 | 1.1.22 |
£ | £ |
Cash and cash equivalents | 712,031 | 1,929,989 |
Bank overdrafts | (195,828 | ) | - |
516,203 | 1,929,989 |
LUCAS UK GROUP LIMITED (REGISTERED NUMBER: 07395451) |
NOTES TO THE CONSOLIDATED STATEMENT OF CASH FLOWS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
3. | ANALYSIS OF CHANGES IN NET DEBT |
Other |
non-cash |
At 1.1.23 | Cash flow | changes | At 31.12.23 |
£ | £ | £ | £ |
Net cash |
Cash at bank | 712,031 | (361,375 | ) | 350,656 |
Bank overdrafts | (195,828 | ) | (175,737 | ) | (371,565 | ) |
516,203 | (537,112 | ) | (20,909 | ) |
Debt |
Finance leases | (148,369 | ) | 67,614 | (148,340 | ) | (229,095 | ) |
Debts falling due |
within 1 year | (400,000 | ) | - | - | (400,000 | ) |
Debts falling due |
after 1 year | (3,466,667 | ) | 600,000 | 1,000,000 | (1,866,667 | ) |
(4,015,036 | ) | 667,614 | 851,660 | (2,495,762 | ) |
Total | (3,498,833 | ) | 130,502 | 851,660 | (2,516,671 | ) |
4. | MAJOR NON-CASH TRANSACTIONS |
The major non-cash transaction of £1,000,000 relating to debts falling due after more than 1 year is detailed within Note 6 to the financial statements. |
LUCAS UK GROUP LIMITED (REGISTERED NUMBER: 07395451) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
1. | STATUTORY INFORMATION |
Lucas UK Group Limited is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
The directors have undertaken significant measures to ensure the continued solvency of the group including debt renegotiation with the company financiers (Note 6). As a result of these measures and the continued support of the directors, the financial statements of the parent and the group have been prepared on a going concern basis. |
Financial Reporting Standard 102 - reduced disclosure exemptions |
The group has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland": |
• | the requirement of paragraph 3.17(d); |
• | the requirement of paragraph 33.7. |
This company meets the definition of a qualifying entity per FRS102 and has taken advantage of the exemption available in paragraph 1.12 of FRS102 from presenting a statement of cash flows of the parent company. The statement of cash flows of the consolidated entity has been prepared and included in these financial statements. |
Basis of consolidation |
The consolidated financial statements include the financial statements of the Company and its subsidiary undertakings up to 31 December 2023. The acquisition method of accounting has been adopted. Under this method, the results of subsidiary undertakings acquired in the year are included in the consolidated profit and loss account from the date of acquisition. |
Turnover |
Turnover represents works performed by the group (excluding value added tax) in respect of goods and services provided in the ordinary course of business. Turnover is recognised once recoverability is deemed reasonably certain. It includes sales and all invoiced completed contracts together with the value of work certified on contracts in progress where profit can be ascertained. Retentions, claims and damages are credited to turnover when released by the customer. |
Intangible fixed assets |
Goodwill, being the amount paid in connection with the acquisition of a business in 2010, is being amortised |
evenly over its estimated useful life of twenty years. |
Purchased patents and trade marks are amortised over their estimated useful economic life of ten years. |
Computer software development costs are amortised over their estimated useful economic life of ten years. |
Tangible fixed assets |
Improvements to property | - |
Plant and machinery | - |
Fixtures and fittings | - |
Motor vehicles | - |
Stocks |
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
LUCAS UK GROUP LIMITED (REGISTERED NUMBER: 07395451) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
2. | ACCOUNTING POLICIES - continued |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Profit And Loss Account, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
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 statement of financial position date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date. |
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. |
Research and development |
Expenditure on research and development is written off in the year in which it is incurred. |
Hire purchase and leasing commitments |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
Pension costs and other post-retirement benefits |
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
Long term contracts |
The amount of profit attributable to the stage of completion of a long term contract is recognised when the outcome of the contract can be foreseen with reasonable certainty. Turnover for such contracts is stated at the cost appropriate to their stage of completion plus attributable profits, less amounts recognised in previous years. Provision is made for any losses as soon as they are foreseen. |
Exceptional items |
Exceptional items identified by the company are included within operating profit in the year of recognition. Such amounts are disclosed within the notes to the financial statements. |
3. | TURNOVER |
The turnover and profit before taxation are attributable to the one principal activity of the group. |
All turnover is carried out wholly within the United Kingdom, and for the single class of business as indicated on the report of the director, for the current and preceding periods. |
4. | OTHER OPERATING INCOME |
2023 | 2022 |
£ | £ |
Rents received | 53,211 | 38,000 |
Exceptional items | 1,000,000 | - |
1,053,211 | 38,000 |
LUCAS UK GROUP LIMITED (REGISTERED NUMBER: 07395451) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
5. | EMPLOYEES AND DIRECTORS |
2023 | 2022 |
£ | £ |
Wages and salaries | 1,876,984 | 1,969,588 |
Social security costs | 215,110 | 232,684 |
Other pension costs | 52,103 | 52,188 |
2,144,197 | 2,254,460 |
The average number of employees during the year was as follows: |
2023 | 2022 |
Office management | 14 | 16 |
Operation management | 15 | 18 |
2023 | 2022 |
£ | £ |
Directors' remuneration | 11,702 | 9,035 |
6. | EXCEPTIONAL ITEMS |
Lease commitments of the company subsidiaries have been identified as onerous lease agreements. Fixed assets associated with these onerous lease agreements have been adjusted in the financial statements for the year ended 31 December 2023 as follows:- |
2023 | 2022 |
£ | £ |
Loss on disposal of leasehold property improvements | 197,236 | Nil |
Loss on disposal of other fixed asset | 2,693 | Nil |
Additional depreciation of leasehold property improvements | 71,014 | Nil |
Total exceptional loss | 270,943 | Nil |
Exceptional income |
Following discussions with the groups bankers and financiers a corporate rescue relief package has been agreed in order to maintain the continued solvency of the group. An element of Other loans amounting to £1,000,000 have been discharged as no longer payable. Other operating income includes the write off of this element of the Other loan and this is considered to be exceptional income in the year ended 31 December 2023. |
7. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2023 | 2022 |
£ | £ |
Bank interest | 89,886 | 81,048 |
Loan interest | 237,963 | 501,349 |
Hire purchase | 19,349 | 6,590 |
347,198 | 588,987 |
LUCAS UK GROUP LIMITED (REGISTERED NUMBER: 07395451) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
8. | PROFIT BEFORE TAXATION |
The profit is stated after charging/(crediting): |
2023 | 2022 |
£ | £ |
Hire of plant and machinery | 64,003 | 72,902 |
Other operating leases | 240,765 | 264,837 |
Depreciation - owned assets | 211,921 | 94,938 |
Loss/(profit) on disposal of fixed assets | 5,778 | (8,804 | ) |
Goodwill amortisation | 133,635 | 133,635 |
Patents and licences amortisation | 2,261 | 4,931 |
Computer software amortisation | 4,650 | 4,650 |
Auditors' remuneration | 2,250 | 2,000 |
9. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2023 | 2022 |
£ | £ |
Current tax: |
UK corporation tax | 157,311 | 43,845 |
Deferred tax | (17,667 | ) | 35,716 |
Tax on profit | 139,644 | 79,561 |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
2023 | 2022 |
£ | £ |
Profit before tax | 1,222,111 | 117,644 |
Profit multiplied by the standard rate of corporation tax in the UK of 23.520 % (2022 - 19 %) |
287,441 |
22,352 |
Effects of: |
Expenses not deductible for tax purposes | 8,857 | 10,316 |
Depreciation in excess of capital allowances | 76,625 | 20,788 |
Utilisation of tax losses | - | (7,233 | ) |
Movement on provisions allowable when paid | (202 | ) | (51 | ) |
Other adjustments | 2,129 | (2,326 | ) |
Deferred taxation & other adjustments | - | 35,715 |
development credit |
Exceptional loan write off | (235,206 | ) | - |
Total tax charge | 139,644 | 79,561 |
10. | INDIVIDUAL PROFIT AND LOSS ACCOUNT |
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. |
LUCAS UK GROUP LIMITED (REGISTERED NUMBER: 07395451) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
11. | DIVIDENDS |
2023 | 2022 |
£ | £ |
Ordinary shares of £1 each | 85,000 | 140,000 |
Interim |
85,000 | 140,000 |
12. | INTANGIBLE FIXED ASSETS |
Group |
Patents |
and | Computer |
Goodwill | licences | software | Totals |
£ | £ | £ | £ |
COST |
At 1 January 2023 |
and 31 December 2023 | 2,672,691 | 49,080 | 46,500 | 2,768,271 |
AMORTISATION |
At 1 January 2023 | 1,619,299 | 39,133 | 28,650 | 1,687,082 |
Amortisation for year | 133,635 | 2,261 | 4,650 | 140,546 |
At 31 December 2023 | 1,752,934 | 41,394 | 33,300 | 1,827,628 |
NET BOOK VALUE |
At 31 December 2023 | 919,757 | 7,686 | 13,200 | 940,643 |
At 31 December 2022 | 1,053,392 | 9,947 | 17,850 | 1,081,189 |
13. | TANGIBLE FIXED ASSETS |
Group |
Improvements | Fixtures |
to | Plant and | and | Motor |
property | machinery | fittings | vehicles | Totals |
£ | £ | £ | £ | £ |
COST |
At 1 January 2023 | 452,862 | 358,870 | 772,013 | 182,770 | 1,766,515 |
Additions | - | - | - | 154,340 | 154,340 |
Disposals | (266,451 | ) | (161,845 | ) | (21,003 | ) | - | (449,299 | ) |
At 31 December 2023 | 186,411 | 197,025 | 751,010 | 337,110 | 1,471,556 |
DEPRECIATION |
At 1 January 2023 | 81,294 | 320,699 | 711,408 | 62,590 | 1,175,991 |
Charge for year | 116,300 | 3,901 | 14,873 | 76,847 | 211,921 |
Eliminated on disposal | (69,215 | ) | (137,911 | ) | (12,983 | ) | - | (220,109 | ) |
At 31 December 2023 | 128,379 | 186,689 | 713,298 | 139,437 | 1,167,803 |
NET BOOK VALUE |
At 31 December 2023 | 58,032 | 10,336 | 37,712 | 197,673 | 303,753 |
At 31 December 2022 | 371,568 | 38,171 | 60,605 | 120,180 | 590,524 |
LUCAS UK GROUP LIMITED (REGISTERED NUMBER: 07395451) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
14. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1 January 2023 |
and 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
The group or the company's investments at the Statement of Financial Position date in the share capital of companies include the following: |
Subsidiaries |
Registered office: 11 Invicta Business Park, Wrotham, UK |
Nature of business: |
% |
Class of shares: | holding |
2023 | 2022 |
£ | £ |
Aggregate capital and reserves |
Profit for the year |
Registered office: 11 Invicta Business Park, Wrotham, UK |
Nature of business: |
% |
Class of shares: | holding |
2023 | 2022 |
£ | £ |
Aggregate capital and reserves |
Profit for the year |
Registered office: 11 Invicta Business Park, Wrotham, UK |
Nature of business: |
% |
Class of shares: | holding |
2023 | 2022 |
£ | £ |
Aggregate capital and reserves |
(Loss)/profit for the year | ( |
) |
LUCAS UK GROUP LIMITED (REGISTERED NUMBER: 07395451) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
14. | FIXED ASSET INVESTMENTS - continued |
Registered office: 11 Invicta Business Park, Wrotham, UK |
Nature of business: |
% |
Class of shares: | holding |
2023 | 2022 |
£ | £ |
Aggregate capital and reserves |
Registered office: 11 Invicta Business Park, Wrotham, UK |
Nature of business: |
% |
Class of shares: | holding |
2023 | 2022 |
£ | £ |
Aggregate capital and reserves |
The results of all subsidiaries have been included in these consolidated accounts. |
15. | STOCKS |
Group |
2023 | 2022 |
£ | £ |
Consumables | 182,043 | 221,054 |
16. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Trade debtors | 670,311 | 1,137,617 |
Amounts owed by group undertakings | - | - |
Amounts recoverable on contract | 1,363,054 | 828,777 |
Other debtors | 967,080 | 1,261,346 |
Directors' current accounts | 456,460 | 105,453 | - | - |
Prepayments and accrued income | 149,339 | 145,740 |
3,606,244 | 3,478,933 |
LUCAS UK GROUP LIMITED (REGISTERED NUMBER: 07395451) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
17. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Bank loans and overdrafts (see note 19) | 771,565 | 595,828 |
Hire purchase contracts (see note 20) | 36,227 | 38,608 |
Trade creditors | 374,486 | 415,964 |
Amounts owed to group undertakings | - | - |
Tax | 157,311 | 43,845 |
Social security and other taxes | 284,977 | 347,094 |
VAT | 4,099 | 49,730 | - | - |
Other creditors | 22,940 | 18,167 |
Accruals and deferred income | 499,734 | 805,402 |
2,151,339 | 2,314,638 |
18. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Bank loans (see note 19) | 566,667 | 966,667 |
Other loans (see note 19) | 1,300,000 | 2,500,000 |
Hire purchase contracts (see note 20) | 192,868 | 109,761 |
2,059,535 | 3,576,428 |
19. | LOANS |
An analysis of the maturity of loans is given below: |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Amounts falling due within one year or on | demand: |
Bank overdrafts | 371,565 | 195,828 |
Bank loans | 400,000 | 400,000 |
771,565 | 595,828 |
Amounts falling due between one and two years: |
Bank loans - 1-2 years | 400,000 | 400,000 |
Amounts falling due between two and five years: |
Bank loans - 2-5 years | 166,667 | 566,667 |
Other loans | 1,300,000 | 2,500,000 | 1,300,000 | 2,500,000 |
1,466,667 | 3,066,667 |
During the year there was a substantial loan modification of the Other loans above. This substantial modification consisted of revisions to the remaining balance, repayment terms and interest. The original loan has been de-recognised, and the recognition in these financial statements is under the new re negotiated terms. Details of the loan amount discharged is included in Note 6 to the Financial Statements. |
LUCAS UK GROUP LIMITED (REGISTERED NUMBER: 07395451) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
20. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Hire purchase contracts |
2023 | 2022 |
£ | £ |
Net obligations repayable: |
Within one year | 36,227 | 38,608 |
Between one and five years | 192,868 | 109,761 |
229,095 | 148,369 |
Group |
Non-cancellable operating | leases |
2023 | 2022 |
£ | £ |
Within one year | 74,880 | 92,880 |
Between one and five years | 243,360 | 299,520 |
In more than five years | - | 18,720 |
318,240 | 411,120 |
21. | SECURED DEBTS |
The following secured debts are included within creditors: |
Group |
2023 | 2022 |
£ | £ |
Bank overdrafts | 371,565 | 195,828 |
Bank loans | 966,667 | 1,366,667 |
1,338,232 | 1,562,495 |
The bank loan and overdraft facility is jointly and severally guaranteed by Lucas UK Group Limited and its subsidiary undertakings. There is an unlimited composite guarantee of each company to secure all liabilities of each other. |
The bank loan and overdraft facility is secured by floating and fixed charges over all assets of Lucas UK Group Limited and its subsidiary undertakings in favour of the bank. |
22. | PROVISIONS FOR LIABILITIES |
Group |
2023 | 2022 |
£ | £ |
Deferred tax | 62,097 | 79,764 |
Group |
Deferred |
tax |
£ |
Balance at 1 January 2023 | 79,764 |
Credit to Profit And Loss Account during year | (17,667 | ) |
Balance at 31 December 2023 | 62,097 |
LUCAS UK GROUP LIMITED (REGISTERED NUMBER: 07395451) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
23. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
Ordinary A | £1 | 7,307 | 7,307 |
Ordinary B | £1 | 331 | 331 |
Ordinary C | £1 | 79 | 79 |
Redeemable Preference | £1 | 526,547 | 526,547 |
79 | Ordinary D | £1 | 79 | 79 |
79 | Ordinary E | £1 | 79 | 79 |
79 | Ordinary G | £1 | 79 | 79 |
3,653 | Ordinary H | £1 | - | - |
534,501 | 534,501 |
All classes of Ordinary shares have full rights with regards to voting, dividends and winding up. |
Redeemable Preference shares have a right to repayment of the nominal capital paid up on winding up or repayment of capital. On a change of control, sale or admission the shares can be redeemed at a price of £1.10 per share. |
Redeemable Preference shares have no rights with regards to voting or dividends. |
24. | RESERVES |
Group |
Capital |
Retained | Share | redemption |
earnings | premium | reserve | Totals |
£ | £ | £ | £ |
At 1 January 2023 | (1,051,638 | ) | 1,775 | 628,263 | (421,600 | ) |
Profit for the year | 1,082,467 | 1,082,467 |
Dividends | (85,000 | ) | (85,000 | ) |
At 31 December 2023 | (54,171 | ) | 1,775 | 628,263 | 575,867 |
Company |
Capital |
Retained | Share | redemption |
earnings | premium | reserve | Totals |
£ | £ | £ | £ |
At 1 January 2023 | 630,038 |
Profit for the year |
Dividends | ( |
) | ( |
) |
At 31 December 2023 | 1,630,038 |
25. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES |
As at 31 December 2023, £456,460 was due to the group by the directors (2022 - £105,453). Amounts owed to and from the directors are unsecured and repayable on demand. Interest is charged at the beneficial loan interest rates.The total amount repaid during the year was £33,884 and the total advanced during the year was £384,891. |
26. | RELATED PARTY DISCLOSURES |
Further guarantee is given by the director to secure all liabilities of subsidiary companies, limited to £650,000, supported by a mortgage over a freehold property owned by the director. |
LUCAS UK GROUP LIMITED (REGISTERED NUMBER: 07395451) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
27. | POST BALANCE SHEET EVENTS |
Since the year end, the company's subsidiary, Lucas Finishing Specialists Ltd, negotiated and completed the re-assignment of the lease on a further unit to new tenants. This commenced and completed since the balance sheet date, and does not impact the figures in these Financial Statements. |
28. | ULTIMATE CONTROLLING PARTY |
The ultimate controlling party is Mr D Lucas by virtue of his majority shareholding of the company. |