IRIS Accounts Production v24.2.0.383 06365584 Board of Directors 1.11.22 31.12.23 31.12.23 true false true true false false true false Ordinary 1.00000 iso4217:GBPiso4217:USDiso4217:EURxbrli:sharesxbrli:pureutr:tonnesutr:kWh063655842022-10-31063655842023-12-31063655842022-11-012023-12-31063655842021-10-31063655842021-11-012022-10-31063655842022-10-3106365584ns15:EnglandWales2022-11-012023-12-3106365584ns14:PoundSterling2022-11-012023-12-3106365584ns10:Director12022-11-012023-12-3106365584ns10:PrivateLimitedCompanyLtd2022-11-012023-12-3106365584ns10:FRS1022022-11-012023-12-3106365584ns10:Audited2022-11-012023-12-3106365584ns10:LargeMedium-sizedCompaniesRegimeForDirectorsReport2022-11-012023-12-3106365584ns10:LargeMedium-sizedCompaniesRegimeForAccounts2022-11-012023-12-3106365584ns10:FullAccounts2022-11-012023-12-3106365584ns10:OrdinaryShareClass12022-11-012023-12-3106365584ns10:Director22022-11-012023-12-3106365584ns10:Director32022-11-012023-12-3106365584ns10:Director42022-11-012023-12-3106365584ns10:Director52022-11-012023-12-3106365584ns10:CompanySecretary12022-11-012023-12-3106365584ns10:RegisteredOffice2022-11-012023-12-3106365584ns10:Director62022-11-012023-12-3106365584ns10:Director72022-11-012023-12-3106365584ns5:CurrentFinancialInstruments2023-12-3106365584ns5:CurrentFinancialInstruments2022-10-3106365584ns5:ShareCapital2023-12-3106365584ns5:ShareCapital2022-10-3106365584ns5:RetainedEarningsAccumulatedLosses2023-12-3106365584ns5:RetainedEarningsAccumulatedLosses2022-10-3106365584ns5:ShareCapital2021-10-3106365584ns5:RetainedEarningsAccumulatedLosses2021-10-3106365584ns5:RetainedEarningsAccumulatedLosses2021-11-012022-10-3106365584ns5:RetainedEarningsAccumulatedLosses2022-11-012023-12-310636558442022-11-012023-12-310636558442021-11-012022-10-310636558412022-11-012023-12-3106365584ns5:PlantMachinery2022-11-012023-12-3106365584ns5:FurnitureFittings2022-11-012023-12-3106365584ns5:MotorVehicles2022-11-012023-12-3106365584ns5:ComputerEquipment2022-11-012023-12-3106365584ns10:HighestPaidDirector2022-11-012023-12-3106365584ns10:HighestPaidDirector2021-11-012022-10-3106365584ns5:PlantEquipmentOtherAssetsUnderOperatingLeases2022-11-012023-12-3106365584ns5:PlantEquipmentOtherAssetsUnderOperatingLeases2021-11-012022-10-3106365584ns5:OwnedAssets2022-11-012023-12-3106365584ns5:OwnedAssets2021-11-012022-10-3106365584ns10:OrdinaryShareClass12021-11-012022-10-3106365584ns5:PlantMachinery2022-10-3106365584ns5:FurnitureFittings2022-10-3106365584ns5:MotorVehicles2022-10-3106365584ns5:ComputerEquipment2022-10-3106365584ns5:PlantMachinery2023-12-3106365584ns5:FurnitureFittings2023-12-3106365584ns5:MotorVehicles2023-12-3106365584ns5:ComputerEquipment2023-12-3106365584ns5:PlantMachinery2022-10-3106365584ns5:FurnitureFittings2022-10-3106365584ns5:MotorVehicles2022-10-3106365584ns5:ComputerEquipment2022-10-3106365584ns5:CurrentFinancialInstrumentsns5:WithinOneYear2023-12-3106365584ns5:CurrentFinancialInstrumentsns5:WithinOneYear2022-10-3106365584ns5:WithinOneYear2023-12-3106365584ns5:WithinOneYear2022-10-3106365584ns5:BetweenOneFiveYears2023-12-3106365584ns5:BetweenOneFiveYears2022-10-3106365584ns5:AllPeriods2023-12-3106365584ns5:AllPeriods2022-10-3106365584ns5:AcceleratedTaxDepreciationDeferredTax2023-12-3106365584ns5:AcceleratedTaxDepreciationDeferredTax2022-10-3106365584ns5:DeferredTaxation2022-10-3106365584ns5:DeferredTaxation2023-12-3106365584ns10:OrdinaryShareClass12023-12-3106365584ns5:RetainedEarningsAccumulatedLosses2022-10-31
REGISTERED NUMBER: 06365584 (England and Wales)












L.A.C. CONVEYOR SYSTEMS LIMITED

STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE PERIOD

1 NOVEMBER 2022 TO 31 DECEMBER 2023






L.A.C. CONVEYOR SYSTEMS LIMITED (REGISTERED NUMBER: 06365584)






CONTENTS OF THE FINANCIAL STATEMENTS
FOR THE PERIOD 1 NOVEMBER 2022 TO 31 DECEMBER 2023




Page

Company Information 1

Strategic Report 2

Report of the Directors 3

Report of the Independent Auditors 5

Income Statement 8

Other Comprehensive Income 9

Balance Sheet 10

Statement of Changes in Equity 11

Cash Flow Statement 12

Notes to the Cash Flow Statement 13

Notes to the Financial Statements 14


L.A.C. CONVEYOR SYSTEMS LIMITED

COMPANY INFORMATION
FOR THE PERIOD 1 NOVEMBER 2022 TO 31 DECEMBER 2023







DIRECTORS: C C Unwin
R Mackness
Mrs H E Pettit
J Wilton
J M Metcalfe





SECRETARY: C C Unwin





REGISTERED OFFICE: 6 Clinton Avenue
Nottingham
Nottinghamshire
NG5 1AW





REGISTERED NUMBER: 06365584 (England and Wales)





AUDITORS: Bevan Buckland LLP
Ground Floor Cardigan House
Castle Court
Swansea Enterprise Park
Swansea
SA7 9LA

L.A.C. CONVEYOR SYSTEMS LIMITED (REGISTERED NUMBER: 06365584)

STRATEGIC REPORT
FOR THE PERIOD 1 NOVEMBER 2022 TO 31 DECEMBER 2023

The directors present their strategic report for the period 1 November 2022 to 31 December 2023.

REVIEW OF BUSINESS
LAC has had another record breaking year with £38,393,552 sales resulting from the continued growth in the supply of intralogistics solutions, robotics and equipment into the logistics, manufacturing and food industries. The business has invested in a new leadership structure and continues to onboard talent from within the industry to unlock the planned next phase of growth.

The projects LAC are quoting and winning are increasing in value and size, in line with the strategy. The business processes are continuously improving to ensure risk is managed both commercially and technically.

Sales are being generated from a healthy balance of repeat business and new customers, which demonstrates that LAC are successfully implementing projects and also marketing within focus industries to drive new relationships. We have key accounts which we continue to nurture and our reputation is going from strength to strength. LAC carries forward a strong order book.

PRINCIPAL RISKS AND UNCERTAINTIES
The global supply chain challenges on lead time and availability of some components is starting to stabilise. LAC have mitigated risks by stocking some long lead items, where appropriate, and continually reviewing projects plans. As of yet, no major impacts have been seen.

LAC supply and purchase from the UK and mainland Europe, transacting in both EURO and GBP. Wherever possible we hedge against any fluctuations in exchange rate. LAC have good risk review strategies in place. Specific project risks are reviewed at both project level and board level. An appropriate authorisation matrix is in place to authorise purchases and all invoices are reviewed.

KEY PERFORMANCE INDICATORS
The execution of the business is measured by key performance indicators. These are currently focussed on financial KPls, although the business is now capturing data to measure operating performance and efficiency.

Sales: £38,402,273

Gross Profit: £10,190,397 (2022: £7,288,382)
Gross Profit Margin % - 26.5% (2022: 26.3%)

Improved cash reserves of £11,307,943 have resulted in adequate net current assets of £9,484,838, this is an improvement of 8.2% on last year.

Environment, Quality and Health and Safety

The company takes very seriously its environmental, quality and Health and Safety commitments. The Head of Business Support drives and promotes these topics in collaboration with the directors. We have a robust quality process and NCR (Non Conformance Report) system in place which is reviewed weekly and reported to the board of directors.

FUTURE ACTIVITIES
The business will continue to focus on core sales activities within it's targeted industry sectors. The food industry is expected to remain steady and possibly decline as changing skillsets in the business and challenging markets exist. This will be heavily mitigated by expected growth across all other sectors and key accounts.

LAC will continue growing and developing it's people and are implementing a culture and values team. The business plans to implement additional KPls as it drives for higher productivity, efficiency, quality and timeliness. Data capture is in place to start this process.

ON BEHALF OF THE BOARD:





C C Unwin - Director


17 July 2024

L.A.C. CONVEYOR SYSTEMS LIMITED (REGISTERED NUMBER: 06365584)

REPORT OF THE DIRECTORS
FOR THE PERIOD 1 NOVEMBER 2022 TO 31 DECEMBER 2023

The directors present their report with the financial statements of the company for the period 1 November 2022 to 31 December 2023.

PRINCIPAL ACTIVITY
The principal activity of the company in the year under review was that of manufacturer, system integrator and specialist in bespoke conveyors and automation solutions.

DIVIDENDS
No interim dividend was paid during the period. The directors recommend a final dividend of 3451178 per share.

The total distribution of dividends for the period ended 31 December 2023 will be £ 3,451,178 .

DIRECTORS
The directors shown below have held office during the whole of the period from 1 November 2022 to the date of this report.

C C Unwin
R Mackness
Mrs H E Pettit
J Wilton
J M Metcalfe

Other changes in directors holding office are as follows:

G P Bale - resigned 1 May 2023
M Hilton - resigned 1 May 2023

STATEMENT OF DIRECTORS' RESPONSIBILITIES
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.

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 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 company's auditors are aware of that information.

L.A.C. CONVEYOR SYSTEMS LIMITED (REGISTERED NUMBER: 06365584)

REPORT OF THE DIRECTORS
FOR THE PERIOD 1 NOVEMBER 2022 TO 31 DECEMBER 2023


AUDITORS
The auditors, Bevan Buckland LLP, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





C C Unwin - Director


17 July 2024

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
L.A.C. CONVEYOR SYSTEMS LIMITED

Opinion
We have audited the financial statements of L.a.c. Conveyor Systems Limited (the 'company') for the period ended 31 December 2023 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, 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 period 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 matters
The financial statements of the company for the period ended 31 October 2022 were audited by another auditor who expressed an unmodified opinion on those statements on the 10 July 2023.

Other information
The directors are responsible for the other information. The other information comprises the information in the 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 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
L.A.C. CONVEYOR SYSTEMS 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 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 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.

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:

- enquiring of management, including obtaining and reviewing support documentation, concerning the company's policies and procedures relating to:
- identifying, evaluating, and complying with laws and regulations and whether they were aware of any instances of non-compliance;
- detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud;
- internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations;
- discussing among the engagement team how and where fraud might occur in the Financial Statements and any potential indicators of fraud.
- obtaining an understanding of the legal and regulatory frameworks that the company operates in, focusing on those laws and regulations that had a direct effect on the Financial Statements or that had a fundamental effect on the operations of the company, The key laws and regulations we considered in this context included the UK Companies Act and relevant tax legislation.

In addition to the above, our procedures to respond to risks identified included the following:

- reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with relevant laws and regulations;
- enquiring of management concerning actual and potential litigation and claims; performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;
- reading minutes of meetings of those charged with governance and reviewing correspondence with HMRC;
- addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments;
- assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and
- evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

We also 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.

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
L.A.C. CONVEYOR SYSTEMS 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.




Alison Vickers (Senior Statutory Auditor)
for and on behalf of Bevan Buckland LLP
Ground Floor Cardigan House
Castle Court
Swansea Enterprise Park
Swansea
SA7 9LA

17 July 2024

L.A.C. CONVEYOR SYSTEMS LIMITED (REGISTERED NUMBER: 06365584)

INCOME STATEMENT
FOR THE PERIOD 1 NOVEMBER 2022 TO 31 DECEMBER 2023

Period Year Ended
1.11.22 to 31.12.23 31.10.22
Notes £    £    £    £   

TURNOVER 38,402,273 27,727,159

Cost of sales 28,211,876 20,438,777
GROSS PROFIT 10,190,397 7,288,382

Distribution costs 200,720 243,819
Administrative expenses 4,727,557 2,693,836
4,928,277 2,937,655
5,262,120 4,350,727

Other operating income 359,579 -
OPERATING PROFIT 4 5,621,699 4,350,727

Interest receivable and similar income 74,192 196
PROFIT BEFORE TAXATION 5,695,891 4,350,923

Tax on profit 5 1,388,403 (35,605 )
PROFIT FOR THE FINANCIAL PERIOD 4,307,488 4,386,528

L.A.C. CONVEYOR SYSTEMS LIMITED (REGISTERED NUMBER: 06365584)

OTHER COMPREHENSIVE INCOME
FOR THE PERIOD 1 NOVEMBER 2022 TO 31 DECEMBER 2023

Period
1.11.22
to Year Ended
31.12.23 31.10.22
Notes £    £   

PROFIT FOR THE PERIOD 4,307,488 4,386,528


OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME FOR
THE PERIOD

4,307,488

4,386,528

L.A.C. CONVEYOR SYSTEMS LIMITED (REGISTERED NUMBER: 06365584)

BALANCE SHEET
31 DECEMBER 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 7 145,661 51,490

CURRENT ASSETS
Debtors 8 7,574,687 11,788,002
Cash at bank and in hand 11,307,943 5,962,507
18,882,630 17,750,509
CREDITORS
Amounts falling due within one year 9 9,397,792 9,047,744
NET CURRENT ASSETS 9,484,838 8,702,765
TOTAL ASSETS LESS CURRENT
LIABILITIES

9,630,499

8,754,255

PROVISIONS FOR LIABILITIES 11 32,806 12,872
NET ASSETS 9,597,693 8,741,383

CAPITAL AND RESERVES
Called up share capital 12 100 100
Retained earnings 13 9,597,593 8,741,283
SHAREHOLDERS' FUNDS 9,597,693 8,741,383

The financial statements were approved by the Board of Directors and authorised for issue on 17 July 2024 and were signed on its behalf by:





C C Unwin - Director


L.A.C. CONVEYOR SYSTEMS LIMITED (REGISTERED NUMBER: 06365584)

STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD 1 NOVEMBER 2022 TO 31 DECEMBER 2023

Called up
share Retained Total
capital earnings equity
£    £    £   
Balance at 1 November 2021 100 6,354,755 6,354,855

Changes in equity
Dividends - (2,000,000 ) (2,000,000 )
Total comprehensive income - 4,386,528 4,386,528
Balance at 31 October 2022 100 8,741,283 8,741,383

Changes in equity
Dividends - (3,451,178 ) (3,451,178 )
Total comprehensive income - 4,307,488 4,307,488
Balance at 31 December 2023 100 9,597,593 9,597,693

L.A.C. CONVEYOR SYSTEMS LIMITED (REGISTERED NUMBER: 06365584)

CASH FLOW STATEMENT
FOR THE PERIOD 1 NOVEMBER 2022 TO 31 DECEMBER 2023

Period
1.11.22
to Year Ended
31.12.23 31.10.22
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 8,932,606 4,341,585
Tax paid (1,505,505 ) (793,287 )
Taxation refund 1,451,178 76,015
Net cash from operating activities 8,878,279 3,624,313

Cash flows from investing activities
Purchase of tangible fixed assets (155,857 ) (10,000 )
Interest received 74,192 196
Net cash from investing activities (81,665 ) (9,804 )

Cash flows from financing activities
Equity dividends paid (3,451,178 ) (2,000,000 )
Net cash from financing activities (3,451,178 ) (2,000,000 )

Increase in cash and cash equivalents 5,345,436 1,614,509
Cash and cash equivalents at beginning
of period

2

5,962,507

4,347,998

Cash and cash equivalents at end of
period

2

11,307,943

5,962,507

L.A.C. CONVEYOR SYSTEMS LIMITED (REGISTERED NUMBER: 06365584)

NOTES TO THE CASH FLOW STATEMENT
FOR THE PERIOD 1 NOVEMBER 2022 TO 31 DECEMBER 2023

1. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS
Period
1.11.22
to Year Ended
31.12.23 31.10.22
£    £   
Profit before taxation 5,695,891 4,350,923
Depreciation charges 61,686 27,552
Accrued Expenses - 3,679
Finance income (74,192 ) (196 )
5,683,385 4,381,958
Decrease/(increase) in trade and other debtors 2,762,137 (3,893,545 )
Increase in trade and other creditors 487,084 3,853,172
Cash generated from operations 8,932,606 4,341,585

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Period ended 31 December 2023
31.12.23 1.11.22
£    £   
Cash and cash equivalents 11,307,943 5,962,507
Year ended 31 October 2022
31.10.22 1.11.21
£    £   
Cash and cash equivalents 5,962,507 4,347,998


3. ANALYSIS OF CHANGES IN NET FUNDS

At 1.11.22 Cash flow At 31.12.23
£    £    £   
Net cash
Cash at bank and in hand 5,962,507 5,345,436 11,307,943
5,962,507 5,345,436 11,307,943
Total 5,962,507 5,345,436 11,307,943

L.A.C. CONVEYOR SYSTEMS LIMITED (REGISTERED NUMBER: 06365584)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD 1 NOVEMBER 2022 TO 31 DECEMBER 2023

1. STATUTORY INFORMATION

L.a.c. Conveyor Systems Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 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.

Related party exemption
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.

Critical accounting judgements and key sources of estimation uncertainty
In the application of the company's accounting policies, the directors are required to make judgements, estimates and assumptions about the amounts due to customers on contracts. The estimates and associated assumptions are based on historical experiences and other factors that are considered to be relevant. Actual results may differ from these estimates.

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

Long term contracts:
Where the company enters into long term contracts, revenue is recognised on the projected profit margin that is deemed to be achieved on the contract. Under the percentage of completion method, the company makes an estimate of the percentage to complete for a project and recognises the proportion of revenue and profit accordingly, this results in deferred and accrued income in the Balance Sheet. In forecasting the profitability of contracts, management makes best estimates based on live project information and the profit margin projection set when costing the project initially . Any expected losses on long term contracts are recognised immediately and are written off to the statement of comprehensive income.

Turnover
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Plant and Machinery - 20% reducing balance
Fixtures and fittings - 20% reducing balance
Motor vehicles - 25% reducing balance
Computer equipment - 33% on cost

Taxation
Taxation for the period comprises current and deferred tax. Tax is recognised in the Income Statement, 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 balance sheet date.


L.A.C. CONVEYOR SYSTEMS LIMITED (REGISTERED NUMBER: 06365584)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE PERIOD 1 NOVEMBER 2022 TO 31 DECEMBER 2023

2. ACCOUNTING POLICIES - continued
Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet 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 period 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.

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 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.

L.A.C. CONVEYOR SYSTEMS LIMITED (REGISTERED NUMBER: 06365584)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE PERIOD 1 NOVEMBER 2022 TO 31 DECEMBER 2023

2. ACCOUNTING POLICIES - continued

Construction contracts
Where the outcome of construction contracts can be reliably estimated, contract revenue and contract costs are recognised by reference to the stage of completion of the contract activity as at the period end.

Where the outcome of construction contracts cannot be estimated reliably, revenue is recognised to the extent of contract costs incurred that it is probable will be recoverable, and contract costs are recognised as an expense in the period in which they are incurred.

The entity uses the percentage of completion method to determine the amounts to be recognised in the period. The stage of completion is measured by reference to the contract costs incurred up to the end of the reporting period as a percentage of total estimated costs for each contract. Costs incurred for work performed to date do not include costs relating to future activity, such as for materials or prepayments.

Initial stage payments and payments received for future work have been accounted for in amounts due to customers on construction contracts in current liabilities.

Provisions

Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial .position and the amount of the provision as an expense.

Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.

Financial Instruments

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 balance sheet when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities 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 debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.


L.A.C. CONVEYOR SYSTEMS LIMITED (REGISTERED NUMBER: 06365584)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE PERIOD 1 NOVEMBER 2022 TO 31 DECEMBER 2023

2. ACCOUNTING POLICIES - continued
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 another party that is able to sell the asset in its entirety to an unrelated third 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 of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Other financial liabilities

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

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

Derecognition of financial liabilities

Financial liabilities are derecognised when the company's contractual obligations expire or are discharged or cancelled

L.A.C. CONVEYOR SYSTEMS LIMITED (REGISTERED NUMBER: 06365584)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE PERIOD 1 NOVEMBER 2022 TO 31 DECEMBER 2023

3. EMPLOYEES AND DIRECTORS
Period
1.11.22
to Year Ended
31.12.23 31.10.22
£    £   
Wages and salaries 5,319,613 4,148,247
Social security costs 594,069 492,980
Other pension costs 192,958 190,825
6,106,640 4,832,052

The average number of employees during the period was as follows:
Period
1.11.22
to Year Ended
31.12.23 31.10.22

Production 70 65
Administrative 13 9
Management 8 7
91 81

Period
1.11.22
to Year Ended
31.12.23 31.10.22
£    £   
Directors' remuneration 1,054,598 957,718

The number of directors to whom retirement benefits were accruing was as follows:

Defined benefit schemes 6 6

Information regarding the highest paid director is as follows:
Period
1.11.22
to Year Ended
31.12.23 31.10.22
£    £   
Emoluments etc 312,887 369,367

4. OPERATING PROFIT

The operating profit is stated after charging/(crediting):

Period
1.11.22
to Year Ended
31.12.23 31.10.22
£    £   
Hire of plant and machinery 54,205 61,341
Other operating leases 297,323 252,197
Depreciation - owned assets 61,686 27,552
Foreign exchange differences (25,245 ) (4,278 )

L.A.C. CONVEYOR SYSTEMS LIMITED (REGISTERED NUMBER: 06365584)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE PERIOD 1 NOVEMBER 2022 TO 31 DECEMBER 2023

5. TAXATION

Analysis of the tax charge/(credit)
The tax charge/(credit) on the profit for the period was as follows:
Period
1.11.22
to Year Ended
31.12.23 31.10.22
£    £   
Current tax:
UK corporation tax 1,368,469 (35,519 )

Deferred tax 19,934 (86 )
Tax on profit 1,388,403 (35,605 )

Reconciliation of total tax charge/(credit) included in profit and loss
The tax assessed for the period is lower than the standard rate of corporation tax in the UK. The difference is explained below:

Period
1.11.22
to Year Ended
31.12.23 31.10.22
£    £   
Profit before tax 5,695,891 4,350,923
Profit multiplied by the standard rate of corporation tax in the UK of 25%
(2022 - 19%)

1,423,973

826,675

Effects of:
Expenses not deductible for tax purposes 19,721 3,932
Capital allowances in excess of depreciation (19,335 ) -
Depreciation in excess of capital allowances - 3,175
Adjustments to tax charge in respect of previous periods 311,545 (473,214 )
R&D Credit - (203,488 )
R&D Expenditure - 216,622
R&D Relief (271,011 ) (409,307 )
Adjustment for tax rate (96,424 ) -
Deferred Taxation 19,934 -
Total tax charge/(credit) 1,388,403 (35,605 )

6. DIVIDENDS
Period
1.11.22
to Year Ended
31.12.23 31.10.22
£    £   
Ordinary shares of £1 each
Final 3,451,178 2,000,000

L.A.C. CONVEYOR SYSTEMS LIMITED (REGISTERED NUMBER: 06365584)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE PERIOD 1 NOVEMBER 2022 TO 31 DECEMBER 2023

7. TANGIBLE FIXED ASSETS
Fixtures
Plant and and Motor Computer
Machinery fittings vehicles equipment Totals
£    £    £    £    £   
COST
At 1 November 2022 55,732 49,645 48,079 118,026 271,482
Additions - 24,575 95,113 36,169 155,857
At 31 December 2023 55,732 74,220 143,192 154,195 427,339
DEPRECIATION
At 1 November 2022 31,333 34,332 38,538 115,789 219,992
Charge for period 5,693 9,307 30,524 16,162 61,686
At 31 December 2023 37,026 43,639 69,062 131,951 281,678
NET BOOK VALUE
At 31 December 2023 18,706 30,581 74,130 22,244 145,661
At 31 October 2022 24,399 15,313 9,541 2,237 51,490

8. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Trade debtors 6,432,240 9,971,012
Other debtors 1,074,314 1,781,868
Prepayments 68,133 35,122
7,574,687 11,788,002

9. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Trade creditors 2,805,293 3,371,861
Tax 696,746 833,782
Social security and other taxes 133,539 131,223
VAT 213,275 804,336
Other creditors 3,022 4,681
Accruals and deferred income 5,316,439 3,706,156
Accrued expenses 229,478 195,705
9,397,792 9,047,744

10. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:
2023 2022
£    £   
Within one year 1,959 38,114
Between one and five years - 2,553
1,959 40,667

11. PROVISIONS FOR LIABILITIES
2023 2022
£    £   
Deferred tax
Accelerated capital allowances 32,806 12,872

L.A.C. CONVEYOR SYSTEMS LIMITED (REGISTERED NUMBER: 06365584)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE PERIOD 1 NOVEMBER 2022 TO 31 DECEMBER 2023

11. PROVISIONS FOR LIABILITIES - continued

Deferred
tax
£   
Balance at 1 November 2022 12,872
Accelerated Capital Allowances 19,934
Balance at 31 December 2023 32,806

12. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: £    £   
100 Ordinary £1 100 100

13. RESERVES
Retained
earnings
£   

At 1 November 2022 8,741,283
Profit for the period 4,307,488
Dividends (3,451,178 )
At 31 December 2023 9,597,593

14. ULTIMATE PARENT COMPANY

Vale Manufacturing Limited is regarded by the directors as being the company's ultimate parent company.

15. RELATED PARTY DISCLOSURES

During the year, the following transactions were undertaken under normal business terms with Holloway Control Systems Ltd, a company in which Mr C Unwin was a director at 31st December 2023:

2023 2022
Purchases 3,469,981 2,176,927
Sales 99,495 51,161

The following balances were outstanding:

2023 2022
Owed to Holloway 466,072 474,524
Owed to LAC 46,926 19,458