REGISTERED NUMBER: SC330623 (Scotland) |
Group Strategic Report, Report of the Directors and |
Consolidated Financial Statements for the Year Ended 31 December 2023 |
for |
Lomond Holdings Limited |
REGISTERED NUMBER: SC330623 (Scotland) |
Group Strategic Report, Report of the Directors and |
Consolidated Financial Statements for the Year Ended 31 December 2023 |
for |
Lomond Holdings Limited |
Lomond Holdings Limited (Registered number: SC330623) |
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 | 4 |
Report of the Independent Auditors | 6 |
Consolidated Statement of Comprehensive Income |
10 |
Consolidated Balance Sheet | 11 |
Company Balance Sheet | 12 |
Consolidated Statement of Changes in Equity | 13 |
Company Statement of Changes in Equity | 14 |
Consolidated Cash Flow Statement | 15 |
Notes to the Consolidated Cash Flow Statement | 16 |
Notes to the Consolidated Financial Statements | 18 |
Lomond Holdings Limited |
Company Information |
for the Year Ended 31 December 2023 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
T/A Accountants Plus |
Statutory Auditor |
Unit 1 Cadzow Park |
82 Muir Street |
Hamilton |
ML3 6BJ |
Lomond Holdings Limited (Registered number: SC330623) |
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 |
2023 has again been a difficult year in the construction industry. As the economy continued it's Covid recovery the war in Ukraine was starting to take effect on energy prices.The disastrous mini budget then exacerbated the situation raising the cost of borrowing to levels unseen in many years.Turnover declined by by 10% which nullified the growth of 2022. Housebuilding ground to a halt as interest rates prevented people from either moving house or coming into the market as a first time buyer. |
Despite the restraints above the company continued to invest in its fleet as plant which was refinanced during covid and as a result was much older than the company would normally countenance had to be offloaded to renew the fleet.This has had multiple effects :- |
a) Hire Purchase repayments and interest were much higher than on the older machines financed before the economy meltdown.This effected both cash flow and profits. |
b) Repair costs started to reduce (29% of turnover compared to 32% in 2022) |
c) The company was able to increase hire rates as new machinery was more attractive. |
d) As a result margins went up from 19% to 23.5% |
The company has invested £5.7m in new plant in the year but has reduced its fleet by a net £3.2m. |
Inflation continued to rage in 2023 but is now under control and this had an effect on all costs.and margins.The company has as mentioned raised contract hire rates to compensate in part for these increases. We see 2024 as a year of consolidation to allow inflation and interest rates to subside and relative stability come back to the economy. |
Overheads rose by £297k mainly as a result of suffering £253K losses on the aforementioned asset replacement exercise. As a result of holding on to plant longer than anticipated during the Covid period and the fact that the assets had to be replaced during a period in which the price of second hand plant fell sharply with the down turn in the construction sector assets did not hold their price and significant losses were incurred. Fortunately the new finance agreements have a residual buyback clause from JCB and the assets are written down to coincide with the value which is guaranteed on disposal. |
The company has higher funding charges as it uses its bank facility to a greater extent as costs and funding payments increase.The facility is strong and has significant headroom to allow the business to take advantage of the expected recovery over the next few years. |
The company made a modest Profit before tax of £198k was achieved which is down on 2022 (£510k).The group pre tax profit is £59k due to goodwill amortisation. In 2024 there has been a strategic review of the asset base and plant utility.The company monitors plant utilisation on a daily basis through it's KPIs and costs are controlled by micro management.Utilisation has started to grow in 2024 and is currently at it's highest rate in several months.The fleet is slimmer but more efficient which means that as utilisation is expanded so are profits. |
To date in 2024 the company has continued to update the fleet and has invested £2.9m in new machinery during the first 5 months of 2024.The fleet has been trimmed for under used plant and further buying decisions require to be made late in quarter 4 of 2024.These decisions will be driven by the costs of replacement and the condition of plant where the contract agreement has expired.Having a more modern fleet makes the business more competitive and justifies rate increases. |
Lomond Holdings Limited (Registered number: SC330623) |
Group Strategic Report |
for the Year Ended 31 December 2023 |
The first 5 months of 2024 has been slow and the company is consolidating its position.Results are modest which is not where most companies want to be but strategies are in place to raise revenues and signs are that the recovery of the construction industry has begun and this should kick in during the latter part of 2024. |
The Directors are encouraged by the activity in the market and the response to the fleet modernisation.Inflationary pressures will continue to ease in 2024 and it is anticipated that borrowing costs will reduce in the Autumn. |
The up to date Key Performance Indicator reports mean that results are monitored weekly and corrective action taken quickly. |
PRINCIPAL RISKS AND UNCERTAINTIES |
The key risks and uncertainties are as follows :- |
Continuous price increases mean profits on contracts are under pressure and will require scrutiny on a regular basis |
The costs of new plant need to be matched by savings on repairs and running costs and added value charge out rates.Current experience is favourable but there is still an element of uncertainty which needs to be monitored over asset lives |
Liquidity risks are reasonably low due to the exemplary cash collection techniques and the comfort of having an almost 100% bad debt cover allied to a circa £1.5m Invoice Discounting facility which is still well below it's allowable drawdown levels. |
The company remains ISO 45001 accredited and strives continually to increase standards which reflects in the lack of any major health incidents in the past 12 months. |
ON BEHALF OF THE BOARD: |
15 August 2024 |
Lomond Holdings Limited (Registered number: SC330623) |
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 the hire of operated and self drive plant to customers |
DIVIDENDS |
The total distribution of dividends for the year ended 31 December 2023 will be £ 704,513 . |
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 donations made in the financial period were to registered charities. |
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. |
Lomond Holdings Limited (Registered number: SC330623) |
Report of the Directors |
for the Year Ended 31 December 2023 |
AUDITORS |
The auditors, Accountants Plus (Hamilton) Ltd, 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 |
Lomond Holdings Limited |
Opinion |
We have audited the financial statements of Lomond Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023 which comprise the Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated 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 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. |
Report of the Independent Auditors to the Members of |
Lomond Holdings Limited |
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. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page four, 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. |
Report of the Independent Auditors to the Members of |
Lomond Holdings Limited |
Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
The objectives of our audit are to identify and assess the risks of material misstatement of the financial statements due to fraud or error; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud or error; and to respond appropriately to those risks. |
The key factors impacting the detection of irregularities are the inherent difficulty in detecting irregularities, the effectiveness of the company's controls and the nature, timing and extent of the audit procedures performed. |
We note that it can be harder to detect irregularities arising due to fraud as they may involve deliberate concealment or collusion. We focused on laws and regulations that could give rise to a material misstatement in the financial statements Including, but not limited to, the Companies Act 2006 and significant regulations relating to the sector in which the company operates. |
Our procedures in relation to fraud and irregularities included but were not limited to: |
-Inquiries of management whether they have knowledge of any actual, suspected or alleged fraud. |
- Gaining an understanding of the legal and regulatory framework through discussion with management and identifying how the entity ensures compliance through a review of systems. Assessing the collective ability of the audit team to identify or recognize non-compliance with laws and regulations. |
-Gaining an understanding of the internal controls established to mitigate risk related to fraud. |
- Making an assessment of the susceptibility of the company's financial statements to material misstatement. |
- Carrying out a review of accounting systems and procedure and making an assessment on the effectiveness of its control environment. |
-Identifying the principal risks where fraud could take place eg posting manual journal entries to manipulate financial performance, management bias through judgements and assumptions in significant accounting estimates and significant one-off or unusual transaction. Discussion of these matters by the audit team. |
Report of the Independent Auditors to the Members of |
Lomond Holdings Limited |
-Addressing the risk of fraud through management override of controls by performing journal entry testing. |
- Review of board minutes and relevant correspondence with regulators and legal advisors. |
- Agreement of the financial statement disclosures to underlying supporting documentation |
The primary responsibility for the prevention and detection of irregularities including fraud rests with both those charged with governance and management. |
Owing to the inherent limitations of an audit, there is an unavoidable risk that material misstatements in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISAs (UK) |
In particular, the more removed from the financial transactions, the less likely it is that we would become aware of non-compliance with laws and regulations. |
As a result of our procedures, we did not identify any key audit matters relating to irregularities. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
for and on behalf of |
T/A Accountants Plus |
Statutory Auditor |
Unit 1 Cadzow Park |
82 Muir Street |
Hamilton |
ML3 6BJ |
Lomond Holdings Limited (Registered number: SC330623) |
Consolidated Statement of Comprehensive Income |
for the Year Ended 31 December 2023 |
31.12.23 | 31.12.22 |
Notes | £ | £ |
TURNOVER | 10,191,144 | 11,409,747 |
Cost of sales | 7,801,161 | 9,232,576 |
GROSS PROFIT | 2,389,983 | 2,177,171 |
Administrative expenses | 1,601,479 | 1,250,612 |
788,504 | 926,559 |
Other operating income | 10,220 | 23,999 |
OPERATING PROFIT | 4 | 798,724 | 950,558 |
Interest receivable and similar income |
- |
31 |
798,724 | 950,589 |
Interest payable and similar expenses |
5 |
739,129 |
579,437 |
PROFIT BEFORE TAXATION | 59,595 | 371,152 |
Tax on profit | 6 | 35,539 | (361,473 | ) |
PROFIT FOR THE FINANCIAL YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
24,056 |
732,625 |
Profit attributable to: |
Owners of the parent | 24,056 | 732,625 |
Total comprehensive income attributable to: |
Owners of the parent | 24,056 | 732,625 |
Lomond Holdings Limited (Registered number: SC330623) |
Consolidated Balance Sheet |
31 December 2023 |
31.12.23 | 31.12.22 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 9 | 514,696 | 653,530 |
Tangible assets | 10 | 20,108,700 | 20,082,244 |
Investments | 11 | - | - |
20,623,396 | 20,735,774 |
CURRENT ASSETS |
Stocks | 12 | 210,265 | 218,115 |
Debtors | 13 | 2,237,094 | 2,766,661 |
Cash at bank | 7,191 | 48,245 |
2,454,550 | 3,033,021 |
CREDITORS |
Amounts falling due within one year | 14 | 11,600,146 | 4,981,667 |
NET CURRENT LIABILITIES | (9,145,596 | ) | (1,948,646 | ) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
11,477,800 |
18,787,128 |
CREDITORS |
Amounts falling due after more than one year |
15 |
(9,219,824 |
) |
(15,884,234 |
) |
PROVISIONS FOR LIABILITIES | 19 | (640,152 | ) | (604,613 | ) |
NET ASSETS | 1,617,824 | 2,298,281 |
CAPITAL AND RESERVES |
Called up share capital | 20 | 1,000,950 | 1,000,950 |
Capital redemption reserve | 21 | 150 | 150 |
Retained earnings | 21 | 616,724 | 1,297,181 |
SHAREHOLDERS' FUNDS | 1,617,824 | 2,298,281 |
The financial statements were approved by the Board of Directors and authorised for issue on 15 August 2024 and were signed on its behalf by: |
Mr R A Easton - Director |
Lomond Holdings Limited (Registered number: SC330623) |
Company Balance Sheet |
31 December 2023 |
31.12.23 | 31.12.22 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 9 |
Tangible assets | 10 |
Investments | 11 |
CURRENT ASSETS |
Debtors | 13 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 14 |
NET CURRENT LIABILITIES | ( |
) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CAPITAL AND RESERVES |
Called up share capital | 20 |
Capital redemption reserve | 21 |
Retained earnings | 21 |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year |
704,845 |
244,242 |
The financial statements were approved by the Board of Directors and authorised for issue on |
Lomond Holdings Limited (Registered number: SC330623) |
Consolidated Statement of Changes in Equity |
for the Year Ended 31 December 2023 |
Called up | Capital |
share | Retained | redemption | Total |
capital | earnings | reserve | equity |
£ | £ | £ | £ |
Balance at 1 January 2022 | 1,000,950 | 809,044 | 150 | 1,810,144 |
Changes in equity |
Dividends | - | (244,488 | ) | - | (244,488 | ) |
Total comprehensive income | - | 732,625 | - | 732,625 |
Balance at 31 December 2022 | 1,000,950 | 1,297,181 | 150 | 2,298,281 |
Changes in equity |
Dividends | - | (704,513 | ) | - | (704,513 | ) |
Total comprehensive income | - | 24,056 | - | 24,056 |
Balance at 31 December 2023 | 1,000,950 | 616,724 | 150 | 1,617,824 |
Lomond Holdings Limited (Registered number: SC330623) |
Company Statement of Changes in Equity |
for the Year Ended 31 December 2023 |
Called up | Capital |
share | Retained | redemption | Total |
capital | earnings | reserve | equity |
£ | £ | £ | £ |
Balance at 1 January 2022 |
Changes in equity |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - |
Balance at 31 December 2022 |
Changes in equity |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - |
Balance at 31 December 2023 |
Lomond Holdings Limited (Registered number: SC330623) |
Consolidated Cash Flow Statement |
for the Year Ended 31 December 2023 |
31.12.23 | 31.12.22 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 3,734,050 | 3,320,800 |
Interest paid | (33,152 | ) | (16,510 | ) |
Interest element of hire purchase payments paid |
(705,977 |
) |
(562,927 |
) |
Tax paid | - | (14,439 | ) |
Net cash from operating activities | 2,994,921 | 2,726,924 |
Cash flows from investing activities |
Purchase of tangible fixed assets | (5,796,695 | ) | (8,214,388 | ) |
Sale of tangible fixed assets | 3,010,785 | 2,462,835 |
Interest received | - | 31 |
Net cash from investing activities | (2,785,910 | ) | (5,751,522 | ) |
Cash flows from financing activities |
Loan repayments in year | (268,592 | ) | - |
Capital repayments in year | (198,529 | ) | 2,571,016 |
Amount introduced by directors | 707,298 | 219,155 |
Amount withdrawn by directors | (319,714 | ) | (660,982 | ) |
Equity dividends paid | (704,513 | ) | (244,488 | ) |
Net cash from financing activities | (784,050 | ) | 1,884,701 |
Decrease in cash and cash equivalents | (575,039 | ) | (1,139,897 | ) |
Cash and cash equivalents at beginning of year |
2 |
(272,472 |
) |
867,425 |
Cash and cash equivalents at end of year |
2 |
(847,511 |
) |
(272,472 |
) |
Lomond Holdings Limited (Registered number: SC330623) |
Notes to the Consolidated Cash Flow Statement |
for the Year Ended 31 December 2023 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
31.12.23 | 31.12.22 |
£ | £ |
Profit before taxation | 59,595 | 371,152 |
Depreciation charges | 2,645,546 | 3,063,154 |
Loss/(profit) on disposal of fixed assets | 252,743 | (19,622 | ) |
Finance costs | 739,129 | 579,437 |
Finance income | - | (31 | ) |
3,697,013 | 3,994,090 |
Decrease/(increase) in stocks | 7,850 | (18,751 | ) |
Decrease/(increase) in trade and other debtors | 127,646 | (412,311 | ) |
Decrease in trade and other creditors | (98,459 | ) | (242,228 | ) |
Cash generated from operations | 3,734,050 | 3,320,800 |
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: |
Year ended 31 December 2023 |
31.12.23 | 1.1.23 |
£ | £ |
Cash and cash equivalents | 7,191 | 48,245 |
Bank overdrafts | (854,702 | ) | (320,717 | ) |
(847,511 | ) | (272,472 | ) |
Year ended 31 December 2022 |
31.12.22 | 1.1.22 |
£ | £ |
Cash and cash equivalents | 48,245 | 867,425 |
Bank overdrafts | (320,717 | ) | - |
(272,472 | ) | 867,425 |
Lomond Holdings Limited (Registered number: SC330623) |
Notes to the Consolidated Cash Flow Statement |
for the Year Ended 31 December 2023 |
3. | ANALYSIS OF CHANGES IN NET DEBT |
At 1.1.23 | Cash flow | At 31.12.23 |
£ | £ | £ |
Net cash |
Cash at bank | 48,245 | (41,054 | ) | 7,191 |
Bank overdrafts | (320,717 | ) | (533,985 | ) | (854,702 | ) |
(272,472 | ) | (575,039 | ) | (847,511 | ) |
Debt |
Finance leases | (19,359,903 | ) | 198,529 | (19,161,374 | ) |
Debts falling due within 1 year | (268,000 | ) | 18,362 | (249,638 | ) |
Debts falling due after 1 year | (250,232 | ) | 250,232 | - |
(19,878,135 | ) | 467,123 | (19,411,012 | ) |
Total | (20,150,607 | ) | (107,916 | ) | (20,258,523 | ) |
Lomond Holdings Limited (Registered number: SC330623) |
Notes to the Consolidated Financial Statements |
for the Year Ended 31 December 2023 |
1. | STATUTORY INFORMATION |
Lomond Holdings Limited is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Basis of consolidation |
The consolidated financial statements present the results of the company and its own subsidiaries ("the group") as if formed a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full. |
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the statement of financial position, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the consolidated statement of income and retained earnings from the date on which control is obtained. They are deconsolidated from the date control ceases. |
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. |
Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements. |
Lomond Holdings Limited (Registered number: SC330623) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
2. | ACCOUNTING POLICIES - continued |
Critical accounting judgements and key sources of estimation uncertainty |
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the reporting date and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from these estimates. The following judgements and estimates have had the most significant effect on amounts recognised in the financial statements. |
Property, plant and equipment |
The estimates and assumptions made to determine asset lives require judgements to be made as regards useful lives and residual values. The useful lives and residual values of the company's financial assets are determined by management at the time the asset is acquired and reviewed annually for appropriateness. The lives are based on historical experience with similar assets. Historically changes in useful lives have not resulted in material changes to the company's depreciation charge. |
Lease arrangements |
The company enters into hire purchase contracts and other lease arrangements for the use of plant and equipment. The classification of such leases as operating or finance leases requires the company to determine, based on evaluation of the terms and conditions of the arrangements, whether it retains or acquires the significant risks and rewards of ownership of these assets and accordingly whether the lease requires an asset and liability to be recognised in the statement of financial position. |
Useful economic life of goodwill |
The group establishes a reliable estimate of the useful life of goodwill arising on business combinations. The estimate is based on a variety of factors such as the expected use of the acquired business and also theexpected useful life of cash generating units to which the goodwill is attributed. |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
Revenue represents the total amount receivable for the hire of plant and provision of goods and services to customers net of returns and VAT. Rental revenue is recognised on a straight-line basis over the period of the rental agreement. Revenue from rental equipment delivery and collection is recognised when delivery or collection has occurred and is reported as rental revenue. |
Goodwill |
Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of the group's share of identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight line basis to the consolidated statement of income and retained earnings over its useful economic life of 20 years of which 5 years remain. |
Lomond Holdings Limited (Registered number: SC330623) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
2. | ACCOUNTING POLICIES - continued |
Intangible assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
Tangible fixed assets |
Depreciation is provided on the following basis: |
Freehold property - Nil to 2% on cost |
Plant and machinery - 3 to 7 years straight line |
Fixtures and fittings - 25% reducing balance |
Computer equipment - 25% reducing balance |
Property improvements - 20%/33% on cost and 25% reducing balance |
Tangible fixed assets are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. |
The group adds to the carrying amount of an item of fixed assets the cost of replacing part of such an item when that cost is incurred, if the replacement part is expected to provide incremental future benefits to the group. The carrying amount of the replaced part is derecognised. Repairs and maintenance are charged to the consolidated statement of income and retained earnings during the period in which they are incurred. |
No depreciation is provided on one of the freehold properties as the directors consider that the residual value is such that any depreciation charge would be immaterial. |
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date. |
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the consolidated statement of income and retained earnings |
Stocks |
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
Lomond Holdings Limited (Registered number: SC330623) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
2. | ACCOUNTING POLICIES - continued |
Financial instruments |
Debtors |
Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment. |
Creditors |
Short term creditors are measured at transaction price, less any impairment. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method. |
Cash and bank balances |
Cash and bank balances are measured at the transaction price. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Statement of Comprehensive Income, 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. |
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 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. |
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. |
Lomond Holdings Limited (Registered number: SC330623) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
3. | EMPLOYEES AND DIRECTORS |
31.12.23 | 31.12.22 |
£ | £ |
Wages and salaries | 2,561,816 | 2,859,064 |
Social security costs | 240,330 | 280,789 |
Other pension costs | 50,749 | 57,422 |
2,852,895 | 3,197,275 |
The average number of employees during the year was as follows: |
31.12.23 | 31.12.22 |
Operators | 61 | 69 |
Management and administration | 14 | 14 |
31.12.23 | 31.12.22 |
£ | £ |
Directors' remuneration | 97,492 | 91,367 |
Directors' pension contributions to money purchase schemes | 1,321 | 1,321 |
4. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
31.12.23 | 31.12.22 |
£ | £ |
Other operating leases | 20,886 | 23,704 |
Depreciation - owned assets | 2,506,711 | 2,924,318 |
Loss/(profit) on disposal of fixed assets | 252,743 | (19,622 | ) |
Goodwill amortisation | 138,834 | 138,836 |
Auditors' remuneration | 14,251 | 9,120 |
Auditors' remuneration for non audit work | 5,100 | 3,312 |
5. | INTEREST PAYABLE AND SIMILAR EXPENSES |
31.12.23 | 31.12.22 |
£ | £ |
Bank loan interest | 33,152 | 16,510 |
Hire purchase | 705,977 | 562,927 |
739,129 | 579,437 |
Lomond Holdings Limited (Registered number: SC330623) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
6. | TAXATION |
Analysis of the tax charge/(credit) |
The tax charge/(credit) on the profit for the year was as follows: |
31.12.23 | 31.12.22 |
£ | £ |
Deferred tax | 35,539 | (361,473 | ) |
Tax on profit | 35,539 | (361,473 | ) |
7. | INDIVIDUAL STATEMENT OF COMPREHENSIVE INCOME |
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. |
8. | DIVIDENDS |
31.12.23 | 31.12.22 |
£ | £ |
Ordinary shares of £1 each |
Final | 704,513 | 244,488 |
9. | INTANGIBLE FIXED ASSETS |
Group |
Goodwill |
£ |
COST |
At 1 January 2023 |
and 31 December 2023 | 2,776,710 |
AMORTISATION |
At 1 January 2023 | 2,123,180 |
Amortisation for year | 138,834 |
At 31 December 2023 | 2,262,014 |
NET BOOK VALUE |
At 31 December 2023 | 514,696 |
At 31 December 2022 | 653,530 |
Lomond Holdings Limited (Registered number: SC330623) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
10. | TANGIBLE FIXED ASSETS |
Group |
Improvements |
Freehold | to | Plant and |
property | property | machinery |
£ | £ | £ |
COST |
At 1 January 2023 | 1,361,873 | 34,870 | 26,877,997 |
Additions | 18,662 | - | 5,654,534 |
Disposals | - | - | (7,488,483 | ) |
At 31 December 2023 | 1,380,535 | 34,870 | 25,044,048 |
DEPRECIATION |
At 1 January 2023 | 255,998 | - | 8,044,485 |
Charge for year | 64,367 | - | 2,407,904 |
Eliminated on disposal | - | - | (4,224,955 | ) |
At 31 December 2023 | 320,365 | - | 6,227,434 |
NET BOOK VALUE |
At 31 December 2023 | 1,060,170 | 34,870 | 18,816,614 |
At 31 December 2022 | 1,105,875 | 34,870 | 18,833,512 |
Fixtures |
and | Motor | Computer |
fittings | vehicles | equipment | Totals |
£ | £ | £ | £ |
COST |
At 1 January 2023 | 63,069 | 97,473 | 103,852 | 28,539,134 |
Additions | 3,688 | 119,811 | - | 5,796,695 |
Disposals | - | - | - | (7,488,483 | ) |
At 31 December 2023 | 66,757 | 217,284 | 103,852 | 26,847,346 |
DEPRECIATION |
At 1 January 2023 | 48,233 | 15,222 | 92,952 | 8,456,890 |
Charge for year | 1,646 | 27,601 | 5,193 | 2,506,711 |
Eliminated on disposal | - | - | - | (4,224,955 | ) |
At 31 December 2023 | 49,879 | 42,823 | 98,145 | 6,738,646 |
NET BOOK VALUE |
At 31 December 2023 | 16,878 | 174,461 | 5,707 | 20,108,700 |
At 31 December 2022 | 14,836 | 82,251 | 10,900 | 20,082,244 |
Lomond Holdings Limited (Registered number: SC330623) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
11. | 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 Balance Sheet date in the share capital of companies include the following: |
Subsidiary |
Lomond Plant Ltd |
Registered office: in United Kingdom |
Nature of business: Hire of plant and equipment |
% |
Class of shares: | holding |
Ordinary | 100.00 |
12. | STOCKS |
Group |
31.12.23 | 31.12.22 |
£ | £ |
Stocks | 210,265 | 218,115 |
13. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
31.12.23 | 31.12.22 | 31.12.23 | 31.12.22 |
£ | £ | £ | £ |
Trade debtors | 1,696,631 | 1,972,227 |
Other debtors | 133,667 | 104,367 |
Directors' loan accounts | 44,396 | 446,314 | 1 | 170,300 |
VAT | 133,576 | - |
Prepayments and accrued income | 228,824 | 243,753 |
2,237,094 | 2,766,661 |
Lomond Holdings Limited (Registered number: SC330623) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
14. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
31.12.23 | 31.12.22 | 31.12.23 | 31.12.22 |
£ | £ | £ | £ |
Bank loans and overdrafts (see note 16) | 1,104,340 |
588,717 |
Hire purchase contracts (see note 17) | 9,941,550 |
3,725,901 |
Trade creditors | 326,665 | 371,328 |
Amounts owed to group undertakings | - | - |
Social security and other taxes | 79,987 | 90,923 |
VAT | - | 42,233 | - | - |
Other creditors | 3,954 | - |
Directors' loan accounts | - | 14,334 | - | - |
Accruals and deferred income | 143,650 | 148,231 |
11,600,146 | 4,981,667 |
15. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group |
31.12.23 | 31.12.22 |
£ | £ |
Bank loans (see note 16) | - | 250,232 |
Hire purchase contracts (see note 17) | 9,219,824 |
15,634,002 |
9,219,824 | 15,884,234 |
16. | LOANS |
An analysis of the maturity of loans is given below: |
Group |
31.12.23 | 31.12.22 |
£ | £ |
Amounts falling due within one year | or on demand: |
Bank overdrafts | 854,702 | 320,717 |
Bank loans | 249,638 | 268,000 |
1,104,340 | 588,717 |
Amounts falling due between one | and two years: |
Bank loans - 1-2 years | - | 250,232 |
Lomond Holdings Limited (Registered number: SC330623) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
17. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Hire purchase | contracts |
31.12.23 | 31.12.22 |
£ | £ |
Net obligations repayable: |
Within one year | 9,941,550 | 3,725,901 |
Between one and five years | 9,219,824 | 15,634,002 |
19,161,374 | 19,359,903 |
The amount due < 1 year includes £6,666,909 in respect of balloon payments which will be settled by the agreed payment by the vendor on repurchase of the asset. |
18. | SECURED DEBTS |
The following secured debts are included within creditors: |
Group |
31.12.23 | 31.12.22 |
£ | £ |
Bank loans | 249,638 | 518,232 |
Hire purchase contracts | 19,161,374 | 19,359,903 |
19,411,012 | 19,878,135 |
The company has granted floating charges to the bank over the assets and undertakings of the company, a charge over the debtor book and a standard security over the premises at 15 Merchiston Industrial Estate, Bankside, Falkirk. There are also cross guarantees between Lomond Holdings Limited and Lomond Plant Limited. |
The hire purchase debt is secured over the plant and machinery for which it was provided. |
19. | PROVISIONS FOR LIABILITIES |
Group |
31.12.23 | 31.12.22 |
£ | £ |
Deferred tax | 640,152 | 604,613 |
Lomond Holdings Limited (Registered number: SC330623) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
19. | PROVISIONS FOR LIABILITIES - continued |
Group |
Deferred |
tax |
£ |
Balance at 1 January 2023 | 604,613 |
Provided during year | 35,539 |
Balance at 31 December 2023 | 640,152 |
20. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 31.12.23 | 31.12.22 |
value: | £ | £ |
Ordinary | £1 | 850 | 850 |
Ordinary B | £1 | 100 | 100 |
Ordinary C | £1 | 1,000,000 | 1,000,000 |
1,000,950 | 1,000,950 |
21. | RESERVES |
Group |
Capital |
Retained | redemption |
earnings | reserve | Totals |
£ | £ | £ |
At 1 January 2023 | 1,297,181 | 150 | 1,297,331 |
Profit for the year | 24,056 | 24,056 |
Dividends | (704,513 | ) | (704,513 | ) |
At 31 December 2023 | 616,724 | 150 | 616,874 |
Company |
Capital |
Retained | redemption |
earnings | reserve | Totals |
£ | £ | £ |
At 1 January 2023 | 381,964 |
Profit for the year |
Dividends | ( |
) | ( |
) |
At 31 December 2023 | 382,296 |
Lomond Holdings Limited (Registered number: SC330623) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
22. | CAPITAL COMMITMENTS |
31.12.23 | 31.12.22 |
£ | £ |
Contracted but not provided for in the |
financial statements | 2,888,479 | 975,479 |
23. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES |
The following advances and credits to directors subsisted during the years ended 31 December 2023 and 31 December 2022: |
31.12.23 | 31.12.22 |
£ | £ |
R A Easton and Mrs A S McGrillis |
Balance outstanding at start of year | 431,980 | - |
Amounts advanced | 319,713 | 431,980 |
Amounts repaid | (707,297 | ) | - |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year | 44,396 | 431,980 |
The group paid dividends to directors totalling £704,513 (2022 - £244,488). |
24. | RELATED PARTY DISCLOSURES |
During the year, a total of key management personnel compensation of £ 177,691 (2022 - £ 100,861 ) was paid. |
25. | ULTIMATE CONTROLLING PARTY |
The company was controlled throughout the year by the directors. |