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COMPANY REGISTRATION NUMBER: 02734034
Lawrence Fine Art Auctioneers Limited
Filleted Financial Statements
31 December 2023
Lawrence Fine Art Auctioneers Limited
Statement of Financial Position
31 December 2023
2023
2022
Note
£
£
Fixed assets
Tangible assets
5
385,690
432,695
Current assets
Stocks
645
Debtors
6
522,125
665,032
Cash at bank and in hand
185,961
363,355
---------
------------
708,086
1,029,032
Creditors: amounts falling due within one year
7
377,277
463,913
---------
------------
Net current assets
330,809
565,119
---------
---------
Total assets less current liabilities
716,499
997,814
Provisions
13,421
---------
---------
Net assets
716,499
984,393
---------
---------
Capital and reserves
Called up share capital
8
189,750
189,750
Capital redemption reserve
155,250
155,250
Profit and loss account
371,499
639,393
---------
---------
Shareholders funds
716,499
984,393
---------
---------
In accordance with section 444 of the Companies Act 2006, the statement of income and retained earnings has not been delivered.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
Lawrence Fine Art Auctioneers Limited
Statement of Financial Position (continued)
31 December 2023
These financial statements were approved by the board of directors and authorised for issue on 3 September 2024 , and are signed on behalf of the board by:
Mr R A Kay
Director
Company registration number: 02734034
Lawrence Fine Art Auctioneers Limited
Notes to the Financial Statements
Year ended 31 December 2023
1. General information
The company is a private company limited by shares, registered in England and Wales. The address of the registered office is 6 The Linen Yard, South Street, Crewkerne, Somerset, TA18 8AB.The principal place of business is 7 The Linen Yard, South Street, Crewkerne, Somerset,TA18 8AB.
2. Statement of compliance
These financial statements have been prepared in compliance with Section 1A of FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.
3. Accounting policies
Basis of preparation
The financial statements have been prepared on the historical cost basis.
Going concern
The directors have reviewed the company's current trading position and believe it has sufficient resources and is well placed to manage its business risks successfully despite the current economic outlook and general uncertainty in the auctioneer sales and retail sector. After making enquiries, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Accordingly, the directors continue to adopt the going concern basis in preparing the accounts.
Disclosure exemptions
The entity satisfies the criteria of being a qualifying entity as defined in FRS 102. Its financial statements are consolidated into the financial statements of Auctionet Network Sweden AS which can be obtained from Auction Network. As such, advantage has been taken of the following disclosure exemptions available under paragraph 1.12 of FRS 102: (a) No cash flow statement has been presented for the company.
Revenue recognition
Turnover is the total amount, excluding value added tax, receivable by the company in respect of commissions and fees charged in relation to auctions. Turnover is recognised at point of sale.
Taxation
The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.
Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.
Foreign currencies
Foreign currency transactions are initially recorded in the functional currency, by applying the spot exchange rate as at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the exchange rate ruling at the reporting date, with any gains or losses being taken to the profit and loss account.
Operating leases
Lease payments are recognised as an expense over the lease term on a straight-line basis. The aggregate benefit of lease incentives is recognised as a reduction to expense over the lease term, on a straight-line basis.
Tangible assets
Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses.
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
Long leasehold land and buildings
-
Over the period of the lease (99 years)
Fixtures, fittings and equipment
-
20% straight line
Motor vehicles
-
25% straight line
Computer equipment
-
25% straight line
Impairment of fixed assets
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs.The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets.
Stocks
Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition.
Leases
Assets held under finance leases are recognised in the statement of financial position as assets and liabilities at the lower of the fair value of the assets and the present value of the minimum lease payments, which is determined at the inception of the lease term. Any initial direct costs of the lease are added to the amount recognised as an asset. Lease payments are apportioned between the finance charges and reduction of the outstanding lease liability using the effective interest method. Finance charges are allocated to each period so as to produce a constant rate of interest on the remaining balance of the liability. Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases.Payments made under operating leases are charged to profit and loss on straight-line basis over the period of the lease. Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.
Provisions
Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.
Financial instruments
A financial asset or a financial liability is recognised only when the company becomes a party to the contractual provisions of the instrument. Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Debt instruments are subsequently measured at amortised cost. Where investments in non-convertible preference shares and non-puttable ordinary shares or preference shares are publicly traded or their fair value can otherwise be measured reliably, the investment is subsequently measured at fair value with changes in fair value recognised in profit or loss. All other such investments are subsequently measured at cost less impairment. Other financial instruments, including derivatives, are initially recognised at fair value, unless payment for an asset is deferred beyond normal business terms or financed at a rate of interest that is not a market rate, in which case the asset is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Other financial instruments are subsequently measured at fair value, with any changes recognised in profit or loss, with the exception of hedging instruments in a designated hedging relationship.
Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately. For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets are either assessed individually or grouped on the basis of similar credit risk characteristics. Any reversals of impairment are recognised in profit or loss immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.
Defined contribution plans
The company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further payments obligations. The contributions are recognised as an expense in the profit and loss account when they fall due. Amounts not paid are shown in accruals as a liability in the balance sheet. The assets of the plan are held separately from the company in independently administered funds.
4. Employee numbers
The average number of persons employed by the company during the year amounted to 33 (2022: 32 ).
5. Tangible assets
Long leasehold property
Fixtures and fittings
Motor vehicles
Equipment
Total
£
£
£
£
£
Cost
At 1 January 2023
366,671
234,058
123,740
111,013
835,482
Additions
5,656
5,656
Disposals
( 34,535)
( 34,535)
---------
---------
---------
---------
---------
At 31 December 2023
366,671
234,058
89,205
116,669
806,603
---------
---------
---------
---------
---------
Depreciation
At 1 January 2023
77,861
182,497
53,730
88,699
402,787
Charge for the year
8,537
12,417
20,124
8,117
49,195
Disposals
( 31,069)
( 31,069)
---------
---------
---------
---------
---------
At 31 December 2023
86,398
194,914
42,785
96,816
420,913
---------
---------
---------
---------
---------
Carrying amount
At 31 December 2023
280,273
39,144
46,420
19,853
385,690
---------
---------
---------
---------
---------
At 31 December 2022
288,810
51,561
70,010
22,314
432,695
---------
---------
---------
---------
---------
6. Debtors
2023
2022
£
£
Trade debtors
31,333
63,259
Amounts owed by group undertakings and undertakings in which the company has a participating interest
365,809
500,000
Other debtors
124,983
101,773
---------
---------
522,125
665,032
---------
---------
7. Creditors: amounts falling due within one year
2023
2022
£
£
Bank loans and overdrafts
3,781
Trade creditors
158,213
155,009
Corporation tax
44,486
Social security and other taxes
109,135
135,010
Other creditors
106,148
129,408
---------
---------
377,277
463,913
---------
---------
8. Called up share capital
Issued, called up and fully paid
2023
2022
No.
£
No.
£
Ordinary shares of £ 1 each
189,750
189,750
189,750
189,750
---------
---------
---------
---------
9. Operating leases
The total future minimum lease payments under non-cancellable operating leases are as follows:
2023
2022
£
£
Not later than 1 year
4,896
Later than 1 year and not later than 5 years
17,135
--------
----
22,031
--------
----
10. Other financial commitments
The total amount of financial commitments not included in the balance sheet is £2,806,667 (2022 £2,816,667). The financial commitments relate to lease commitments in respect of the business premises. The total commitment is due over the following periods: £10,000 (2022 £10,000) in one year, £40,000 (2022 £40,000) in two years to five years and £2,756,667 (2022 £2,766,667) in more than 5 years.
11.Summary audit opinion
The auditor's report for the year dated 3 September 2024 was unqualified . The statutory auditor was Simon Bachrach .
12. Directors' advances, credits and guarantees
During the year the directors entered into the following advances and credits with the company:
2023
Balance brought forward
Advances/ (credits) to the directors
Amounts repaid
Amounts waived
Balance outstanding
£
£
£
£
£
Mrs H I Carless
263
485
(748)
Mr C J Flower
2,000
( 2,000)
-------
----
-------
----
----
2,263
485
( 2,000)
(748)
-------
----
-------
----
----
2022
Balance brought forward
Advances/ (credits) to the directors
Amounts repaid
Amounts waived
Balance outstanding
£
£
£
£
£
Mrs H I Carless
263
263
Mr C J Flower
2,000
2,000
-------
----
----
----
-------
2,000
263
2,263
-------
----
----
----
-------
During the year Mrs H I Carless resigned as a director so Director advances reanalysed to Other Debtors. (a)the maximum amount overdrawn was the brought forward balance.
13. Related party transactions
During the accounting period, the company contracted services from the parent company, Auction Network Sweden AS under normal market conditions. The total amount paid to the parent company for these services totalled £616,384 (2022: £232,554). The balance outstanding to Auction Network Sweden AS at 31 December 2023 was £20,225 (2022: £17,685). During the year there was a loan outstanding to the parent company, Auction Network Sweden AS. The total amount due from Auction Network Sweden AS at 31 December 2023 was £351,750 (2022: £500,000). Interest was charged at the market rate of 6%, total interest charged for the period was £27,900 (2022: nil). During the accounting period, the company contracted services from a subsidiary of the parent company called Auctionet UK Limited under normal market conditions. The total amount paid to the subsidiary company for these services totalled £14,059 (2022: nil). The balance outstanding to Auctionet UK Limited at 31 December 2023 was £14,059 (2022: nil).
14. Controlling party
The name of the smallest and largest parent undertaking and the ultimate controlling party is Auction Network Sweden AS . Auction Network Sweden AS is incorporated in Sweden and prepares group financial statements to include Lawrence Fine Art Auctioneers Limited which are available to the public at Auction Network Sweden, Grev Turegatan 44, tr 2, 114 38, Stockholm .