Company Registration No. 01621560 (England and Wales)
LAWCRIS PANEL PRODUCTS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
LAWCRIS PANEL PRODUCTS LIMITED
COMPANY INFORMATION
Directors
Mr P I Hall
Mr S P Hall
Mr C J Hopton
Mr I Matthews
Mr M Rhodes
Secretary
Mr C J Hopton
Company number
01621560
Registered office
Knowsthorpe Gate
Cross Green Industrial Estate
Leeds
LS9 0NP
Auditor
Azets Audit Services Limited
12 King Street
Leeds
LS1 2HL
Bankers
Barclays Bank Plc
93/95 Main Street
Garforth
Leeds
LS25 1AF
LAWCRIS PANEL PRODUCTS LIMITED
CONTENTS
Page
Strategic report
1 - 4
Directors' report
5
Directors' responsibilities statement
6
Independent auditor's report
7 - 9
Statement of comprehensive income
10
Balance sheet
11
Statement of changes in equity
12
Statement of cash flows
13
Notes to the financial statements
14 - 26
LAWCRIS PANEL PRODUCTS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

The directors present the strategic report for the year ended 31 December 2023.

Review of the business

Lawcris Panel Products Ltd (Lawcris) remains a leading distributor of decorative panels, laminates, and worktops in the UK. Supplying many different sectors including Furniture Manufacturers, Shop Fitters, Caravan Manufacturers and Display & Exhibition Builders.

The company is a privately owned Limited Company operating out of two sites in Leeds, West Yorkshire. The company is owned and directly managed by the shareholders.

The directors are satisfied with the results for the year. Turnover has fallen as expected on the previous year as demand returns to pre-covid levels. Gross profit margins have also shrunk as anticipated and reflect the easing of pressures within the supply chain. Overheads continue to be carefully managed through variance analysis on a month-by-month basis. The company continues to be well-positioned within the industry for future growth.

The company's balance sheet remains robust with shareholder's funds amounting to £4,510,465 (2022 - £4,373,280).

Principal risks and uncertainties

The management of the business and the execution of the company's strategy are subject to various risks. Key business risks and uncertainties typically relate to competition and material costs. The industry and sectors in which the company operates are highly competitive and price sensitive. Many of the products sold are generic and available from other distributors, making stock availability and service crucial to maintaining market leadership.

The availability of raw materials in the supply chain always has the potential to disrupt supply. To mitigate this risk, we continue to build strong relationships with both new and existing partners.

As we move into 2024, we continue to operate in a period of economic uncertainty due to the ongoing situation in Ukraine. To protect the company's working capital during this time, we will maintain strict management of debtors and creditors. We recognise the strain this pressure can place on stakeholder relationships and will strive to maintain effective communication to address any concerns.

Foreign currency exchange rates remain a potential risk due to Brexit. We continue to monitor exchange rates closely to alleviate severe volatility in the future pricing of materials.

Key performance indicators

Total sales decreased 2.13% to £107.3M (2022 - £109.6M), with margins at 24.22% (2022 – 26.60%). Turnover is reviewed to ensure it falls in line with expectations and seasonal trends, with margins regularly reviewed. In addition, stock levels are monitored against turnover, and overheads are reviewed for any unexpected movements, with both measures being at anticipated levels for the year.

Stock levels did reduce to £5,209,852 (2022 - £6,360,253) during the financial period. The reduction in stock value represents the ability to hold less stock as confidence in the supply chain and the availability of products improves.

LAWCRIS PANEL PRODUCTS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
Other key performance indicators

Further progress is being made with the inclusion of non-financial key performance indicators in the management pack. This data has already improved attendance and transport efficiency. Additional non-financial areas are highlighted for future monitoring, with the expectation that they will lead to further efficiencies.

Emissions and Energy Consumption

Energy consumption and greenhouse gas emissions for the year ended 31st December 2023

 

Annual Litres

Annual kWhs

CO2e

Electricity

 

1,151,317

244,459

Gas

 

22,053

4,039

FLT Fuel

317,231

 

493,957

Commercial Vehicle & Car Fuel

803,131

 

2,017,730

 

The Intensity Ratio is 39: 1 based on a total CO2e per £ of turnover.

 

Energy consumption and greenhouse gas emissions for the year ended 31st December 2022.

 

Annual Litres

Annual kWhs

CO2e

Electricity

 

1,173,932

249,261

Gas

 

23,575

4,318

FLT Fuel

295,564

 

460,220

Commercial Vehicle & Car Fuel

776,341

 

1,950,425

 

The Intensity Ratio is 41 : 1 based on a total CO2e per £ of turnover.

Methodology

Electricity and gas consumption data has been taken from the supplier invoices for the financial period. The total kWh has been multiplied by 0.21233 (Electricity) and 0.18316 (Gas) of CO2 to calculate the total CO2e emissions for the company.

Forklift truck fuel (Propane) purchases has also been taken from the supplier invoices for the financial period. The total number of litres has been multiplied by 1.55709 to calculate the total CO2e emissions for the company.

Transport fuel (Commercial Vehicle & Cars) usage has been taken from supplier invoices and multiplied by 2.51233 (Diesel) to calculate the total CO2e emissions for the company.

LAWCRIS PANEL PRODUCTS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
Additional information

The company does not actively use financial instruments as part of its risk management strategy. It faces the usual credit and cash flow risks associated with selling on credit, which are managed through credit control procedures.

The company acknowledges its environmental and community impact. Significant efforts have been made in recent years to reduce waste and increase recycling. The commercial vehicle fleet is regularly updated to incorporate the latest technology and the lowest emission vehicles.

Maintaining the business's reputation is crucial, as it fosters confidence among current and future stakeholders in its ability to perform. Core values such as reliability, loyalty, and trustworthiness ensure strong relationships.

Employees are valued as the company's most important asset, with continuous investment in their development being a priority. The company actively utilises funds from the Apprentice Levy Scheme for training.

Our commitment to ethical conduct and integrity is reflected in our anti-slavery and human trafficking policy, which enforces effective systems and controls to prevent these practices in our supply chains.

Performance management is being implemented across the company to address weaknesses and identify employee talent. Skill and knowledge gaps will be addressed with a focus on continuous improvement.

The directors are optimistic about the company's prospects and anticipate strong performance despite the challenges ahead for the year ending 31 December 2024.

Section 172

The directors are committed to promoting the company in a way that benefits all its members and stakeholders by operating transparently and in good faith.

A major strength on the business is its ability to adapt and make decisions quickly. The long-term goals and strategy of the business are always taken into consideration when making these decisions and the consequences leading from them.

The most valuable asset of the company is its employees. We continually strive to invest in the workforce through pay, benefits, training and personal development. The employees are the vehicle used to deliver the company’s long-term goals and objectives. Time and effort is spent to ensure all employees are happy, well-motivated and aligned with the core values of the business and its objectives.

Effective communication is key to ensuring stable relationships with its suppliers, customers and others. Significant effort is made to ensure the company is proactive in matching customer needs with the products and services offered by its suppliers. Huge investment is made each year in the supply chain on new innovative products/ranges and the company supports these lines through targeted marketing support to establish long terms returns on these new investments.

The company is committed to reducing its impact on the environment. We continue to reduce the number of cars on the fleet and those that are replaced have been with electric/hybrid vehicles. Careful consideration is made when acquiring additional and replacement equipment to ensure the most energy efficient options are purchased.

The company is aware of its position in the community and always looks to support local charities and sports clubs through donations and sponsorship.

The reputation of the business is paramount and it will always look to conduct itself with fairness, integrity and respect and concern for all its stakeholders.

LAWCRIS PANEL PRODUCTS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -


On behalf of the board

Mr C J Hopton
Director
8 July 2024
LAWCRIS PANEL PRODUCTS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 5 -

The directors present their annual report and financial statements for the year ended 31 December 2023.

Principal activities
The principal activity of the company continued to be that of suppliers of wood-based sheet materials.
Results and dividends

The results for the year are set out on page 10.

An interim ordinary dividend was paid amounting to £6,250,000 (2022 - £10,000,000). The directors do not recommend payment of a final dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

 

Mr P I Hall
Mr S P Hall
Mr C J Hopton
Mr I Matthews
Mr M Rhodes
Auditor

The auditor, Azets Audit Services Limited, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

Business relationships with suppliers, customers and other

For details on the company's business relationships with suppliers, customers and other key stakeholders, see narrative on the Strategic Report.

Long term effect of principal business decisions

For details on the long term effects of principal business decisions made by the company, see narrative on the Strategic Report.

On behalf of the board
Mr C J Hopton
Director
8 July 2024
LAWCRIS PANEL PRODUCTS LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 6 -

The directors are responsible for preparing the annual report 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:

 

 

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.

LAWCRIS PANEL PRODUCTS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF LAWCRIS PANEL PRODUCTS LIMITED
- 7 -
Opinion

We have audited the financial statements of Lawcris Panel Products Limited (the 'company') for the year ended 31 December 2023 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including 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:

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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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. 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 course of 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 our audit:

LAWCRIS PANEL PRODUCTS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF LAWCRIS PANEL PRODUCTS LIMITED
- 8 -
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 directors' report.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, 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 is 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.

Auditor's 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 an auditor's report 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.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

LAWCRIS PANEL PRODUCTS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF LAWCRIS PANEL PRODUCTS LIMITED
- 9 -

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.

 

We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework.  Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.  This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.

 

In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:

 

 

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation.  This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance.  The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

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 an auditor's report 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.

Daisy Marsden
Senior Statutory Auditor
For and on behalf of Azets Audit Services Limited
9 July 2024
Chartered Accountants
Statutory Auditor
12 King Street
Leeds
LS1 2HL
LAWCRIS PANEL PRODUCTS LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
2023
2022
Notes
£
£
Turnover
3
107,268,787
109,605,495
Cost of sales
(81,287,098)
(80,452,583)
Gross profit
25,981,689
29,152,912
Administrative expenses
(17,616,312)
(16,724,488)
Operating profit
4
8,365,377
12,428,424
Interest receivable and similar income
67,802
59,991
Interest payable and similar expenses
8
(2,128)
(4,478)
Profit before taxation
8,431,051
12,483,937
Tax on profit
9
(2,043,966)
(2,435,817)
Profit for the financial year
6,387,085
10,048,120

The profit and loss account has been prepared on the basis that all operations are continuing operations.

LAWCRIS PANEL PRODUCTS LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 11 -
2023
2022
Notes
£
£
£
£
Fixed assets
Intangible assets
11
45,431
30,799
Tangible assets
12
6,322,553
3,466,068
6,367,984
3,496,867
Current assets
Stocks
13
5,209,852
6,360,253
Debtors
14
16,916,492
17,427,754
Cash at bank and in hand
1,604,270
7,090,963
23,730,614
30,878,970
Creditors: amounts falling due within one year
15
(24,377,581)
(29,621,457)
Net current (liabilities)/assets
(646,967)
1,257,513
Total assets less current liabilities
5,721,017
4,754,380
Provisions for liabilities
Deferred tax liability
16
1,210,552
381,000
(1,210,552)
(381,000)
Net assets
4,510,465
4,373,380
Capital and reserves
Called up share capital
18
100
100
Profit and loss reserves
4,510,365
4,373,280
Total equity
4,510,465
4,373,380
The financial statements were approved by the board of directors and authorised for issue on 8 July 2024 and are signed on its behalf by:
Mr S P Hall
Mr C J Hopton
Director
Director
Company Registration No. 01621560
LAWCRIS PANEL PRODUCTS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 12 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 January 2022
100
4,325,160
4,325,260
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
10,048,120
10,048,120
Dividends
10
-
(10,000,000)
(10,000,000)
Balance at 31 December 2022
100
4,373,280
4,373,380
Year ended 31 December 2023:
Profit and total comprehensive income for the year
-
6,387,085
6,387,085
Dividends
10
-
(6,250,000)
(6,250,000)
Balance at 31 December 2023
100
4,510,365
4,510,465
LAWCRIS PANEL PRODUCTS LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 13 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
24
6,070,150
15,978,214
Interest paid
(2,128)
(4,478)
Income taxes paid
(1,633,817)
(2,988,049)
Net cash inflow from operating activities
4,434,205
12,985,687
Investing activities
Purchase of intangible assets
(38,627)
(36,634)
Purchase of tangible fixed assets
(4,269,848)
(474,594)
Proceeds on disposal of tangible fixed assets
569,775
48,024
Interest received
67,802
59,991
Net cash used in investing activities
(3,670,898)
(403,213)
Financing activities
Dividends paid
(6,250,000)
(10,000,000)
Net cash used in financing activities
(6,250,000)
(10,000,000)
Net (decrease)/increase in cash and cash equivalents
(5,486,693)
2,582,474
Cash and cash equivalents at beginning of year
7,090,963
4,508,489
Cash and cash equivalents at end of year
1,604,270
7,090,963
LAWCRIS PANEL PRODUCTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 14 -
1
Accounting policies
Company information

Lawcris Panel Products Limited is a private company limited by shares incorporated in England and Wales. The registered office is Knowsthorpe Gate, Cross Green Industrial Estate, Leeds, LS9 0NP.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £1.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2
Going concern

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for wood based sheet materials in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

1.4
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Software
33% straight line
1.5
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Leasehold property
2-3% straight line
Plant and machinery
20% reducing balance
Fixtures, fittings and equipment
20% reducing balance
Motor vehicles
25% reducing balance
LAWCRIS PANEL PRODUCTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 15 -

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

1.6
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.7
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell, with cost comprising direct materials.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.8
Cash at bank and in hand

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.9
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.

LAWCRIS PANEL PRODUCTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 16 -
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.

 

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.

LAWCRIS PANEL PRODUCTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 17 -
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 through 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.

1.10
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.11
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.12
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

LAWCRIS PANEL PRODUCTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 18 -
1.13
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.14
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

1.15
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

2
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 carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

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

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Depreciation

The depreciation policy has been set according to managements' experience of the useful lives of a typical asset in each category, something which is reviewed annually. It is not considered practical to use a per unit basis to allocate depreciation without undue cost and therefore amounts are charged annually. The depreciation charged during the year was £854,617 (2022 - £624,543), which the directors feel is a fair reflection of the benefits derived from the consumption of the tangible fixed assets in use during the period.

Bad debt provision

Outstanding trade debtor balances are reviewed on a line by line basis by management to identify possible amounts where a provision is required. Management closely manage the collection of trade debtors and therefore are able to identify balances where there is uncertainty about its recoverability, and determine what provision is required (if any).

LAWCRIS PANEL PRODUCTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 19 -
3
Turnover and other revenue

An analysis of the company's turnover is as follows:

2023
2022
£
£
Turnover analysed by class of business
Sale of goods
108,557,589
110,926,418
Rebates and discounts
(1,288,802)
(1,320,923)
107,268,787
109,605,495
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
107,263,350
109,587,295
Rest of Europe
488
6,412
Rest of the World
4,949
11,788
107,268,787
109,605,495
2023
2022
£
£
Other revenue
Interest income
67,802
59,991
4
Operating profit
2023
2022
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange (gains)/losses
(9,950)
26,722
Depreciation of owned tangible fixed assets
854,617
624,543
(Profit)/loss on disposal of tangible fixed assets
(11,029)
3,709
Amortisation of intangible assets
23,995
15,579
Operating lease charges
893,075
893,075
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
15,340
14,340
For other services
All other non-audit services
5,670
5,305
LAWCRIS PANEL PRODUCTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 20 -
6
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2023
2022
Number
Number
Selling and distribution
219
213
Production
24
24
Total
243
237

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
9,553,328
9,331,024
Social security costs
1,011,293
1,037,462
Pension costs
402,797
387,910
10,967,418
10,756,396
7
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
1,262,393
1,053,839
Company pension contributions to defined contribution schemes
25,975
24,360
1,288,368
1,078,199
Remuneration disclosed above include the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
332,091
337,929
8
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
574
306
Other finance costs:
Other interest
1,554
4,172
2,128
4,478
LAWCRIS PANEL PRODUCTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 21 -
9
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
1,214,414
2,333,817
Deferred tax
Deferred tax charge / (credit) current year
829,552
10,571
Changes in tax rates
-
0
91,429
Total deferred tax
829,552
102,000
Total tax charge
2,043,966
2,435,817

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2023
2022
£
£
Profit before taxation
8,431,051
12,483,937
Expected tax charge based on the standard rate of corporation tax in the UK of 23.52% (2022: 19.00%)
1,983,029
2,371,948
Tax effect of expenses that are not deductible in determining taxable profit
8,510
36
Tax effect of income not taxable in determining taxable profit
-
0
2,534
Effect of change in corporation tax rate
-
0
91,429
Depreciation on assets not qualifying for tax allowances
-
0
2,800
Other non-reversing timing differences
-
0
(32,930)
Deferred tax adjustments in respect of prior years
2,255
-
0
Fixed asset differences
1,214
-
0
Remeasurement of deferred tax for changes in tax rates
48,958
-
0
Tax expense for the year
2,043,966
2,435,817

The UK corporation tax rate was 19% until March and increased to 25% in April. The average UK corporation tax rate throughout the year was 23.52%.

 

A change to the future UK corporation tax rate was announced, indicating that the rate will increase to 25% from April 2023. Deferred tax balances at the reporting date are therefore measured at 25%.

10
Dividends
2023
2022
£
£
Interim paid
6,250,000
10,000,000
LAWCRIS PANEL PRODUCTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
10
Dividends
(Continued)
- 22 -

Of the above dividend, £3,750,000 was paid to the holders of A Ordinary shares and £2,500,000 was paid to the holders of B Ordinary shares.

11
Intangible fixed assets
Software
£
Cost
At 1 January 2023
181,221
Additions
38,627
At 31 December 2023
219,848
Amortisation and impairment
At 1 January 2023
150,422
Amortisation charged for the year
23,995
At 31 December 2023
174,417
Carrying amount
At 31 December 2023
45,431
At 31 December 2022
30,799
12
Tangible fixed assets
Leasehold property
Plant and machinery
Fixtures, fittings and equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 January 2023
1,548,844
2,441,655
907,326
3,150,605
8,048,430
Additions
369,261
1,070,341
8,495
2,821,751
4,269,848
Disposals
-
0
(597,252)
-
0
(1,677,116)
(2,274,368)
At 31 December 2023
1,918,105
2,914,744
915,821
4,295,240
10,043,910
Depreciation and impairment
At 1 January 2023
257,729
1,751,415
628,393
1,944,825
4,582,362
Depreciation charged in the year
46,900
180,770
56,927
570,020
854,617
Eliminated in respect of disposals
-
0
(389,108)
-
0
(1,326,514)
(1,715,622)
At 31 December 2023
304,629
1,543,077
685,320
1,188,331
3,721,357
Carrying amount
At 31 December 2023
1,613,476
1,371,667
230,501
3,106,909
6,322,553
At 31 December 2022
1,291,115
690,240
278,933
1,205,780
3,466,068
LAWCRIS PANEL PRODUCTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 23 -
13
Stocks
2023
2022
£
£
Finished goods and goods for resale
5,209,852
6,360,253
14
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
14,139,735
14,819,904
Other debtors
20,934
25,504
Prepayments and accrued income
2,755,823
2,582,346
16,916,492
17,427,754
15
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
12,093,582
10,677,735
Corporation tax
714,414
1,133,817
Other taxation and social security
1,415,154
1,585,048
Other creditors
8,857,711
14,901,382
Accruals and deferred income
1,296,720
1,323,475
24,377,581
29,621,457

The bank loans and overdrafts are secured by fixed and floating charges over the assets of the company.

16
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Liabilities
Liabilities
2023
2022
Balances:
£
£
Accelerated capital allowances
1,210,552
381,000
LAWCRIS PANEL PRODUCTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 24 -
17
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
402,797
387,910

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

18
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
A Ordinary shares of £1 each
80
80
80
80
B Ordinary shares of £1 each
20
20
20
20
100
100
100
100

Each share is entitled to one vote in any circumstances. A Ordinary shares are entitled to 60% distribution of dividends and B Ordinary shares are entitled to 40% distribution of dividends.

19
Operating lease commitments
Lessee

The company has operating leases for building premises and company cars.

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2023
2022
£
£
Within one year
759,709
774,487
Between two and five years
2,926,077
2,921,337
In over five years
305,890
1,027,083
3,991,676
4,722,907
20
Capital commitments

As at the year end, the following capital agreements were agreed upon but not yet paid:

2023
2022
£
£
Acquisition of tangible fixed assets
264,938
2,581,445
LAWCRIS PANEL PRODUCTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 25 -
21
Related party transactions
Transactions with related parties

During the year the company entered into the following transactions with related parties:

Rent paid
2023
2022
£
£
Entities with control, joint control or significant influence over the company
725,000
725,000
22
Ultimate controlling party

The ultimate controlling party is Mr C J Hopton, a director.

23
Directors' transactions

Dividends relating to Mr C J Hopton £3,750,000 (2022 - £6,000,000) and Mr S P Hall £2,500,000 (2022 - £4,000,000) are included within the below balances.

The directors listed below had directors' current accounts during the year, the movements on which are outlined in the table below.

 

Director's loans have no interest charge and no fixed date for repayment.

 

The below balances are included within Creditors: amounts falling due within one year; Other creditors.

Description
% Rate
Opening balance
Amounts advanced
Amounts repaid
Closing balance
£
£
£
£
Mr C J Hopton -
-
8,528,550
3,750,000
(7,350,511)
4,928,039
Mr S P Hall -
-
6,250,950
2,500,000
(4,894,874)
3,856,076
14,779,500
6,250,000
(12,245,385)
8,784,115

No guarantees have been given or received.

LAWCRIS PANEL PRODUCTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 26 -
24
Cash generated from operations
2023
2022
£
£
Profit for the year after tax
6,387,085
10,048,120
Adjustments for:
Taxation charged
2,043,966
2,435,817
Finance costs
2,128
4,478
Investment income
(67,802)
(59,991)
(Gain)/loss on disposal of tangible fixed assets
(11,029)
3,709
Amortisation and impairment of intangible assets
23,995
15,579
Depreciation and impairment of tangible fixed assets
854,617
624,543
Movements in working capital:
Decrease/(increase) in stocks
1,150,401
(271,824)
Decrease/(increase) in debtors
511,262
(1,074,634)
(Decrease)/increase in creditors
(4,824,473)
4,252,417
Cash generated from operations
6,070,150
15,978,214
25
Analysis of changes in net funds
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
7,090,963
(5,486,693)
1,604,270
2023-12-312023-01-01falseCCH SoftwareCCH Accounts Production 2024.100Mr P I HallMr S P HallMr I MatthewsMr M RhodesMr M RhodesMr C J Hoptonfalsefalse016215602023-01-012023-12-3101621560bus:Director12023-01-012023-12-3101621560bus:Director22023-01-012023-12-3101621560bus:CompanySecretaryDirector12023-01-012023-12-3101621560bus:Director32023-01-012023-12-3101621560bus:Director42023-01-012023-12-3101621560bus:CompanySecretary12023-01-012023-12-3101621560bus:Director52023-01-012023-12-3101621560bus:RegisteredOffice2023-01-012023-12-3101621560bus:Agent12023-01-012023-12-31016215602023-12-31016215602022-01-012022-12-3101621560core:RetainedEarningsAccumulatedLosses2022-01-012022-12-3101621560core:RetainedEarningsAccumulatedLosses2023-01-012023-12-3101621560core:OtherResidualIntangibleAssets2023-12-3101621560core:OtherResidualIntangibleAssets2022-12-3101621560core:ComputerSoftware2023-12-3101621560core:ComputerSoftware2022-12-31016215602022-12-3101621560core:LandBuildingscore:LeasedAssetsHeldAsLessee2023-12-3101621560core:PlantMachinery2023-12-3101621560core:FurnitureFittings2023-12-3101621560core:MotorVehicles2023-12-3101621560core:LandBuildingscore:LeasedAssetsHeldAsLessee2022-12-3101621560core:PlantMachinery2022-12-3101621560core:FurnitureFittings2022-12-3101621560core:MotorVehicles2022-12-3101621560core:CurrentFinancialInstrumentscore:WithinOneYear2023-12-3101621560core:CurrentFinancialInstrumentscore:WithinOneYear2022-12-3101621560core:CurrentFinancialInstruments2023-12-3101621560core:CurrentFinancialInstruments2022-12-3101621560core:ShareCapital2023-12-3101621560core:ShareCapital2022-12-3101621560core:RetainedEarningsAccumulatedLosses2023-12-3101621560core:RetainedEarningsAccumulatedLosses2022-12-3101621560core:ShareCapital2021-12-3101621560core:RetainedEarningsAccumulatedLosses2021-12-3101621560core:ShareCapitalOrdinaryShares2023-12-3101621560core:ShareCapitalOrdinaryShares2022-12-31016215602022-12-31016215602021-12-3101621560core:IntangibleAssetsOtherThanGoodwill2023-01-012023-12-3101621560core:LandBuildingscore:LeasedAssetsHeldAsLessee2023-01-012023-12-3101621560core:PlantMachinery2023-01-012023-12-3101621560core:FurnitureFittings2023-01-012023-12-3101621560core:MotorVehicles2023-01-012023-12-310162156012023-01-012023-12-310162156012022-01-012022-12-3101621560core:UKTax2023-01-012023-12-3101621560core:UKTax2022-01-012022-12-310162156022023-01-012023-12-310162156022022-01-012022-12-310162156032023-01-012023-12-310162156032022-01-012022-12-3101621560core:ComputerSoftware2022-12-3101621560core:ComputerSoftwarecore:ExternallyAcquiredIntangibleAssets2023-01-012023-12-3101621560core:ComputerSoftware2023-01-012023-12-3101621560core:LandBuildingscore:LeasedAssetsHeldAsLessee2022-12-3101621560core:PlantMachinery2022-12-3101621560core:FurnitureFittings2022-12-3101621560core:MotorVehicles2022-12-3101621560core:WithinOneYear2023-12-3101621560core:WithinOneYear2022-12-3101621560core:BetweenTwoFiveYears2023-12-3101621560core:BetweenTwoFiveYears2022-12-3101621560core:MoreThanFiveYears2023-12-3101621560core:MoreThanFiveYears2022-12-3101621560bus:PrivateLimitedCompanyLtd2023-01-012023-12-3101621560bus:FRS1022023-01-012023-12-3101621560bus:Audited2023-01-012023-12-3101621560bus:FullAccounts2023-01-012023-12-31xbrli:purexbrli:sharesiso4217:GBP