Company registration number 11485940 (England and Wales)
LIFT ME OFF LTD
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
PAGES FOR FILING WITH REGISTRAR
LIFT ME OFF LTD
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 10
LIFT ME OFF LTD
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 1 -
2023
2022
as restated
Notes
£
£
£
£
Fixed assets
Tangible assets
3
34,565
15,830
Current assets
Debtors
4
46,848
79,381
Cash at bank and in hand
66,758
2,487
113,606
81,868
Creditors: amounts falling due within one year
5
(679,903)
(403,845)
Net current liabilities
(566,297)
(321,977)
Total assets less current liabilities
(531,732)
(306,147)
Provisions for liabilities
6
(233,584)
(173,105)
Net liabilities
(765,316)
(479,252)
Capital and reserves
Called up share capital
7
1
1
Profit and loss reserves
(765,317)
(479,253)
Total equity
(765,316)
(479,252)
The notes on pages 2 to 10 form part of these financial statements.
The director of the company has elected not to include a copy of the profit and loss account within the financial statements.true
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved and signed by the director and authorised for issue on 20 August 2024
M Poucet
Director
Company registration number 11485940 (England and Wales)
LIFT ME OFF LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
1
Accounting policies
Company information
Lift Me Off Ltd is a private company limited by shares incorporated in England and Wales. The registered office is 71-75 Shelton Street, Covent Garden, London, WC2H 9JQ.
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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
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 £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Going concern
The company has made a loss in the year and is in a net current liability £566,297 at the reporting date. The directors have received assurances from the parent company that it will provide sufficient resources as needed to allow the company to meet its liabilities as they fall due for at least 12 months from the signing of the financial statements. The directors therefore continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover relates income from the rendering of services, R&D development, and production of prototypes. It is recognised at the fair value of the consideration received or receivable for services provided in the normal course of business, and is shown net of VAT and other sales related taxes.
Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by reference to milestones outlined in the relevant customer contract, and by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total budgeted costs at the fee proposal stage. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.
The company's R&D development and production of prototypes income streams are considered by management to fall within the scope of construction contracts under FRS 102. Revenue and expenditure on such contracts is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by reference to milestones outlined in the relevant customer contract, and by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total budgeted costs at the fee proposal stage.
1.4
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:
Fixtures and fittings
4 years straight line
Computers
4 years straight line
LIFT ME OFF LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 3 -
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.
1.5
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible 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). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
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 (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) 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 (or cash-generating unit) 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 (or cash-generating unit) 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.
1.6
Cash and cash equivalents
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.
1.7
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
LIFT ME OFF LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 4 -
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, bank loans, loans from fellow group companies that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future 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.
1.8
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.
1.9
Provisions
Provisions relate to onerous contracts, in which the unavoidable costs of meeting the obligations under the contract exceed the economic benefits expected to be received under it and a reliable estimate can be made of the amount of the obligation. The unavoidable costs under a contract reflect the lowest net cost of exiting from the contract, which is the lower of the cost of fulfilling it and any compensation or penalties arising from failure to fulfil it. The amount recognised as a provision is the best estimate of the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation.
1.10
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.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.11
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.12
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 leases asset are consumed.
LIFT ME OFF LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 5 -
1.13
Government grants
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Total
5
8
3
Tangible fixed assets
Plant and machinery etc
£
Cost
At 1 January 2023
25,343
Additions
27,575
At 31 December 2023
52,918
Depreciation and impairment
At 1 January 2023
9,513
Depreciation charged in the year
8,840
At 31 December 2023
18,353
Carrying amount
At 31 December 2023
34,565
At 31 December 2022
15,830
LIFT ME OFF LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 6 -
4
Debtors
2023
2022
as restated
Amounts falling due within one year:
£
£
Corporation tax recoverable
31,352
Other debtors
23,670
24,851
23,670
56,203
2023
2022
Amounts falling due after more than one year:
£
£
Rent deposit
23,178
23,178
Total debtors
46,848
79,381
5
Creditors: amounts falling due within one year
2023
2022
as restated
£
£
Trade creditors
66,175
28,483
Amounts owed to group undertakings
575,286
279,069
Taxation and social security
13,619
8,583
Other creditors
24,823
87,710
679,903
403,845
Amounts owed to group undertakings are unsecured, interest free and repayable on demand. After the reporting date, certain terms were amended as disclosed in note 11.
6
Provisions for liabilities
2023
2022
£
£
Onerous contracts provision
233,584
173,105
7
Called up share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
1
1
1
1
The ordinary share carries full rights to receive notice of, attend and vote at general meetings. The share carried one vote and full rights to dividends and capital distributions, including on winding up.
LIFT ME OFF LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 7 -
8
Audit report information
As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:
The auditor's report was qualified and the auditor reported as follows:
Qualified opinion on financial statements
We have audited the financial statements of Lift Me Off Ltd (the 'company') for the year ended 31 December 2023 which comprise , the balance sheet 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, except for the effects of the matter described in the Basis for qualified opinion section of our report, the financial statements:
give a true and fair view of the state of the company's affairs as at 31 December 2023 and of its loss 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 qualified opinion
In the year ended 31 December 2021, the company entered into certain contracts that fall within the scope of construction contracts under FRS 102, section 23. Due to the small size of the business, records supporting management's estimate of the percentage completion of contracts and cost to complete were not maintained for the period ended 31 December 2021. We were therefore unable to obtain sufficient appropriate audit evidence about the carrying value of the following opening balances at 1 January 2022:
Amounts recoverable on contracts of £42,869, recorded in 'Other debtors';
Net payments on account of £215,351, recorded in 'Other creditors'; and
Onerous contract provisions of £140,313, recorded in 'Provisions for liabilities'.
Further to this, we were unable to obtain sufficient appropriate audit evidence over the accuracy and cut-off of construction contract income and expenditure arising from the above in the year ended 31 December 2022.
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.
Senior Statutory Auditor:
Nicholas Nicolaou FCCA
Statutory Auditor:
Alliotts LLP
Date of audit report:
21 August 2024
9
Financial commitments, guarantees and contingent liabilities
The directors have not recognised any corporation tax recoverable in respect of research and development costs as the potential claim cannot be measured reliably at the date of approval of the financial statements.
LIFT ME OFF LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
10
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2023
2022
£
£
26,537
65,165
11
Events after the reporting date
In July 2024, the company entered into revised agreements with the parent company concerning the "Amounts owed to group undertakings" balance disclosed in "Creditors: amounts falling due within one year" (note 5).
Under the first revised agreement, the principal sum of EUR 150,782 will incur an interest charge of 3.65% per annum. Under the second revised agreement, the remaining balance will be treated as advances under a facility agreement with a total limit of EUR 1,000,000 and will incur an interest charge of 3.77% per annum. No other changes to the provisions of the original agreements have been made.
Both revised agreements are effective as of 1 January 2023, giving rise to a potential interest charge of EUR 19,822 as at 31 December 2023. No adjustment has been recognised in these financial statements for the year ended 31 December 2023 as the revised agreements were entered into after the reporting date and consequently do not reflect conditions that existed at that date.
LIFT ME OFF LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
12
Related party transactions
2023
2022
Amounts due to related parties
£
£
Entities with control, joint control or significant influence over the company
575,286
279,069
Key management personnel
1,777
1,777
Other information
The company has taken advantage of the exemption under FRS 102, para 33.1A, stating that details need not be given in respect of transactions entered into between two or more members of a group, provided that any subsidiary which is a party to the transaction is wholly-owned by such a member.
13
Parent company
The parent company of Lift Me Off Ltd is LMO S.À.R.L, a company incorporated in Luxembourg with registered office of 9, avenue des Hauts-Fourneaux, L-4362 Esch-sur-Alzette.
In the opinion of the Director, there is no single person with significant control over the company.
14
Prior period adjustment
Changes to the balance sheet
As previously reported
Adjustment
As restated at 31 Dec 2022
£
£
£
Current assets
Debtors due within one year
370,720
(291,339)
79,381
Creditors due within one year
Other creditors
(597,925)
202,663
(395,262)
Provisions for liabilities
Other provisions
(322,137)
149,032
(173,105)
Net assets
(539,608)
60,356
(479,252)
Capital and reserves
Profit and loss reserves
(539,609)
60,356
(479,253)
LIFT ME OFF LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
14
Prior period adjustment
(Continued)
- 10 -
Reconciliation of changes in equity
1 January
31 December
2022
2022
Notes
£
£
Adjustments to prior year
Adjustment to income recognition
(i)
-
(88,676)
Adjustment to onerous contracts provision
(ii)
-
149,032
Total adjustments
-
60,356
Equity as previously reported
(227,297)
(539,608)
Equity as adjusted
(227,297)
(479,252)
Analysis of the effect upon equity
Profit and loss reserves
-
60,356
Notes to reconciliation
(i) Adjustment to income recognition
In the year ended 31 December 2022, turnover did not include EUR 100,000 of income. The appropriate adjustments to turnover, administrative expenses (profit or loss on foreign exchange), trade debtors, amounts owed by contract customers and amounts due to contract customers are noted above.
(ii) Adjustment to onerous contracts provision
In the year ended 31 December 2022, the onerous contract provision was miscalculated leading to an overstatement as noted above. Appropriate adjustments to administrative expenses and the provision have been recognised.
(iii) Reclassification of long term contract accruals
In the year ended 31 December 2022, long term contracts adjustments to expenditure were included within accruals. This has been restated to net off the amounts within contract balances.
(iv) Reclassification of long term contract expenditure adjustments
In the year ended 31 December 2022, adjustments to expenditure to align with the stage of completion were recognised within cost of sales. This adjustment has been reclassified to administrative expenses to better reflect the nature of the expenditure, being primarily staff costs.
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