REGISTERED NUMBER: |
LAVERY ROWE ADVERTISING LIMITED |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 |
REGISTERED NUMBER: |
LAVERY ROWE ADVERTISING LIMITED |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 |
LAVERY ROWE ADVERTISING LIMITED (REGISTERED NUMBER: 01481734) |
CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 4 |
Directors' Responsibilities Statement | 5 |
Report of the Independent Auditors | 6 |
Statement of Comprehensive Income | 8 |
Balance Sheet | 9 |
Statement of Changes in Equity | 10 |
Notes to the Financial Statements | 11 |
LAVERY ROWE ADVERTISING LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Statutory Auditor |
Atlas Chambers |
33 West Street |
Brighton |
East Sussex |
BN1 2RE |
BANKERS: |
216 Bishopsgate |
London |
EC2M 4QB |
LAVERY ROWE ADVERTISING LIMITED (REGISTERED NUMBER: 01481734) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
The directors present their strategic report for the year ended 31 December 2023. |
REVIEW OF BUSINESS |
The results for the year and the financial position at the year end were considered satisfactory by the directors who |
expect to maintain current levels of business. |
Analysis of development and performance & of other key performance indicators |
The company has performed well during the year under review. |
Turnover has decreased by £2.54 million (10.75%) this year to £21.08 million, and represents a good level of turnover |
for the company. Gross profit has decreased by £0.52 million (15.62%) to £2.83 million with margins decreasing by |
0.78% to 13.44%. |
Administrative expenses have decreased by £0.62 million (22.17%) to £2.16 million in the past year. The company |
continue to constantly review costs undertaken in order to achieve possible future savings. |
Net profit before tax of £0.7 million is higher than the £0.6 million achieved last year. |
The financial position of the company has suffered in the past year with a £0.5 million drop in the balance sheet |
value of the entity, mainly due to the dividend paid to Lavery Rowe Holdings. Net assets now stand at £2.3 million. |
The directors therefore believe that the company is on a sure footing to continue its strong performance in the |
current financial period. |
The company has declared dividends of £1 million (2022: £1.5 million) to its parent, Lavery Rowe Holdings Limited, |
during the year and the Directors anticipate continuing underlying growth and forecasted profits in line with recent |
years. |
LAVERY ROWE ADVERTISING LIMITED (REGISTERED NUMBER: 01481734) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
PRINCIPAL RISKS AND UNCERTAINTIES |
In common with all businesses, the company faces risks and uncertainties. The Directors adopt prudent policies to |
minimise risks and are actively involved in reducing the efforts of any adverse circumstances which might arise. |
Business and regulatory risk |
The company operates in a regulated and diverse business environment. The Directors therefore perform regular |
reviews of business and regulatory risks to ensure that these are addressed and minimised as far as possible. |
Liquidity risk |
Liquidity risk arises from the company's management of working capital. It is the risk that the company will |
encounter difficulty in meeting its financial obligations as they fall due. At the end of the financial year, the Board of |
Directors indicated that the company expected to have sufficient liquid resources to meet its obligations under all |
reasonably expected circumstances. |
The company's principal financial instruments comprise bank balances, trade creditors and trade debtors. The main |
purpose of these instruments is to provide funds for the company's operations and to finance these operations. The |
liquidity of the business is regularly reviewed by the Directors to ensure that sufficient resources are maintained to |
fund the company's transactions. |
Bank balances are managed by maintaining a balance between the continuity of funding and flexibility through the |
use of budgeting facilities. Trade debtors are managed in respect of credit and cash flow risks by policies |
concerning the credit offered to clients and the regular monitoring of amounts outstanding for both time and credit |
limits. Trade creditors liquidity risk is managed by ensuring sufficient funds are available to meet amounts due. |
Credit risk |
Credit risk is the risk of financial loss to the group if a customer or counterparty to a financial instrument fails to meet |
its contractual obligations. The company is mainly exposed to credit risk from credit sales and it is the company's |
policy to assess the credit risk of new customers and suppliers before entering contracts with them. Debtor |
balances are monitored on an ongoing basis and provision is made for doubtful debts where necessary. |
Operating risk |
The Directors will regularly review the operation of the business and have put management committees in place to |
ensure that operating systems and internal controls are adequate. Risks are identified, assessed and appropriate |
remedial action decided upon by the Directors and each committee as appropriate. The company maintains |
sufficient insurance to minimise the risk of loss or damage to its assets. |
ON BEHALF OF THE BOARD: |
LAVERY ROWE ADVERTISING LIMITED (REGISTERED NUMBER: 01481734) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
The directors present their report with the financial statements of the company for the year ended 31 December 2023. |
PRINCIPAL ACTIVITY |
The principal activity of the company continued to be that of an advertising agency. |
DIVIDENDS |
The directors do not recommend the payment of a final dividend. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 January 2023 to the date of this report. |
FINANCIAL INSTRUMENTS |
Treasury operations and financial instruments |
Details of the financial risk management objectives and policies of the company, as well as the company's exposure |
to price, credit, liquidity and cash flow risks are provided in the strategic report to these financial statements. |
Future developments |
The company continues to focus on its growth areas by investing in new producers and new client relationships to |
grow revenues. The company continues to monitor and manage costs whilst supporting the infrastructure of the |
ongoing activities of the business. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
AUDITORS |
The auditors, Galloways Accounting, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
LAVERY ROWE ADVERTISING LIMITED (REGISTERED NUMBER: 01481734) |
DIRECTORS' RESPONSIBILITIES STATEMENT |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
LAVERY ROWE ADVERTISING LIMITED |
Opinion |
We have audited the financial statements of Lavery Rowe Advertising Limited (the 'company') for the year ended 31 December 2023 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
In our opinion the financial statements: |
- | give a true and fair view of the state of the company's affairs as at 31 December 2023 and of its profit for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the 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 directors are responsible for the other information. The other information comprises the information in the Strategic Report, the Report of the Directors and the Directors' Responsibilities Statement, but does not include the financial statements and our Report of the Auditors thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
LAVERY ROWE ADVERTISING LIMITED |
Responsibilities of directors |
As explained more fully in the Directors' Responsibilities Statement set out on page five, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so. |
Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
Based on our understanding of the company and industry, we considered the risk of non-compliance with laws |
and regulations, and we considered the extent to which non-compliance might have a material effect on the financial |
statements. We also considered those laws and regulations that have a direct impact on the financial statements such |
as the Companies Act 2006. We evaluated management’s incentives and opportunities for fraudulent manipulation of |
the financial statements (including the risk of override of controls). |
Audit procedures performed included: |
- Enquiring of management whether there were instances of non-compliance with laws and regulation or fraud; |
- Review of legal expenses for evidence of fees relating to non-compliance; |
- Challenging assumptions and judgements made by management in determining significant accounting estimates |
- Reviewing journal entries, non-sales bank receipts and non-purchase bank payments for unusual accounting |
entries; |
- To the extent that information was available to us: Substantive procedures to test that services contracted by |
clients were recognised as revenue in the financial statements in the correct period; and |
- Substantive procedures to test that accrued expenses were valid and complete. |
There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances |
of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the |
financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not |
detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional |
misrepresentations, or through collusion. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
for and on behalf of |
Statutory Auditor |
Atlas Chambers |
33 West Street |
Brighton |
East Sussex |
BN1 2RE |
LAVERY ROWE ADVERTISING LIMITED (REGISTERED NUMBER: 01481734) |
STATEMENT OF COMPREHENSIVE |
INCOME |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
31.12.23 | 31.12.22 |
Notes | £ | £ |
TURNOVER | 4 |
Cost of sales |
GROSS PROFIT |
Administrative expenses |
671,414 | 580,235 |
Other operating income |
OPERATING PROFIT | 7 |
Interest receivable and similar income | 8 |
PROFIT BEFORE TAXATION |
Tax on profit | 9 |
PROFIT FOR THE FINANCIAL YEAR |
LAVERY ROWE ADVERTISING LIMITED (REGISTERED NUMBER: 01481734) |
BALANCE SHEET |
31 DECEMBER 2023 |
31.12.23 | 31.12.22 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 12 |
Investment property | 13 |
CURRENT ASSETS |
Debtors | 14 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 15 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CAPITAL AND RESERVES |
Called up share capital | 18 |
Revaluation reserve | 19 |
Retained earnings | 19 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
LAVERY ROWE ADVERTISING LIMITED (REGISTERED NUMBER: 01481734) |
STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
Called up |
share | Retained | Revaluation | Total |
capital | earnings | reserve | equity |
£ | £ | £ | £ |
Balance at 1 January 2022 |
Changes in equity |
Total comprehensive income | - |
Dividends | - | ( |
) | - | ( |
) |
Balance at 31 December 2022 |
Changes in equity |
Total comprehensive income | - |
Dividends | - | ( |
) | - | ( |
) |
Release of revaluation reserve | - | 54,261 | (54,261 | ) | - |
Balance at 31 December 2023 |
LAVERY ROWE ADVERTISING LIMITED (REGISTERED NUMBER: 01481734) |
NOTES TO THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
1. | STATUTORY INFORMATION |
Lavery Rowe Advertising Limited is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
The principal activity of the company continued to be that of an advertising agency. |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
The financial statements have been prepared under the historical cost convention, modified to include the |
revaluation of freehold properties and to include investment properties. The principal accounting policies |
adopted are set out below. |
Financial Reporting Standard 102 - reduced disclosure exemptions |
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group.The company has therefore taken advantage of exemptions from the following disclosure requirements: |
· Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and |
disclosures; |
· Section 33 ‘Related Party Disclosures’: Compensation for key management personnel. |
The financial statements of the company are consolidated in the financial statements of Lavery Rowe |
Holdings Limited. These consolidated financial statements are available from its registered office, First Floor, |
Ridgeland House, 15 Carfax, Horsham, West Sussex, RH12 1DY. |
Going concern |
At 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. |
Turnover |
Turnover represents amounts receivable for goods and services net of VAT. Turnover is recognised at the |
time that the advertisement appears. |
Revenue from the placement of adverts is recognised when the significant risks and rewards of ownership of |
the advert have passed to the buyer (usually on the publication of the advert), 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. |
Revenue rebates are obtained and recognised based upon whether revenue thresholds are exceeded. These thresholds are based upon the level of insertions placed during the year. |
Tangible fixed assets |
Freehold property | - |
Short leasehold | - |
Fixtures and fittings | - |
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. |
LAVERY ROWE ADVERTISING LIMITED (REGISTERED NUMBER: 01481734) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
2. | ACCOUNTING POLICIES - continued |
Investment property |
Investment property, which is property held to earn rentals and/or for capital appreciation, is measured using |
the fair value model and stated at its fair value as the reporting end date. The surplus or deficit on revaluation is recognised in the profit and loss account. |
Financial instruments |
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 |
‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments. |
Financial instruments are recognised in the company's balance sheet when the company becomes party to |
the contractual provisions of the instrument. |
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when |
there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a |
net basis or to realise the asset and settle the liability simultaneously. |
Basic financial assets |
Basic financial assets, which include debtors and cash and bank balances, are initially measured at |
transaction price including transaction costs and are subsequently carried at amortised cost using the |
effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised. |
Other financial assets |
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or |
joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are |
subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that |
investments in equity instruments that are not publicly traded and whose fair values cannot be measured |
reliably are measured at cost less impairment. |
Impairment of financial assets |
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of |
impairment at each reporting end date. |
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. |
LAVERY ROWE ADVERTISING LIMITED (REGISTERED NUMBER: 01481734) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
2. | ACCOUNTING POLICIES - continued |
Basic financial liabilities |
Basic financial liabilities, including creditors, bank loans and loans from fellow group companies 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. |
Derecognition of financial liabilities |
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or |
cancelled. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Foreign currencies |
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. |
Hire purchase and leasing commitments |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. |
Employee benefits |
The costs of short-term employee benefits are recognised as a liability and an expense. |
The directors have concluded that no provision is required for unused holiday entitlement either at 1 January |
2023 or 31 December 2023 because If holiday is not taken by an employee it is lost. The holiday year end is |
co-terminus with the financial year end. |
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. |
LAVERY ROWE ADVERTISING LIMITED (REGISTERED NUMBER: 01481734) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
3. | CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY |
In the application of the company’s accounting policies, the directors are required to make judgements, |
estimates and assumptions about the 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 where the revision affects only that |
period, or in the period of the revision and future periods where the revision affects both current and future |
periods. |
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. |
Value of freehold property |
The key accounting estimate in preparing these financial statements relates to the carrying value of the |
freehold property which are stated at fair value. The company uses lease terms, market conditions and sales |
prices based upon known market transactions for similar properties as a basis for determining the directors' |
estimation of the fair value of the freehold property. However, the valuation of the company's freehold property is inherently subjective, as it is made on the basis of valuation assumptions which may in future not prove to be accurate. |
Value of investment property |
The key accounting estimate in preparing these financial statements relates to the carrying value of the |
investment property which are stated at fair value. The company uses lease terms, market conditions and |
sales prices based upon known market transactions for similar properties as a basis for determining the |
directors' estimation of the fair value of the investment property. However, the valuation of the company's |
investment property is inherently subjective, as it is made on the basis of valuation assumptions which may in |
future not prove to be accurate. |
4. | TURNOVER |
The turnover and profit before taxation are attributable to the one principal activity of the company. |
An analysis of turnover by class of business is given below: |
31.12.23 | 31.12.22 |
£ | £ |
An analysis of turnover by geographical market is given below: |
31.12.23 | 31.12.22 |
£ | £ |
United Kingdom |
Europe |
United States of America |
LAVERY ROWE ADVERTISING LIMITED (REGISTERED NUMBER: 01481734) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
5. | EMPLOYEES AND DIRECTORS |
31.12.23 | 31.12.22 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
The average number of employees during the year was as follows: |
31.12.23 | 31.12.22 |
Sales and administration | 25 | 29 |
Artwork production | 3 | 3 |
6. | DIRECTORS' EMOLUMENTS |
31.12.23 | 31.12.22 |
£ | £ |
Directors' remuneration |
Directors' pension contributions to money purchase schemes |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes |
Information regarding the highest paid director is as follows: |
31.12.23 | 31.12.22 |
£ | £ |
Emoluments etc |
Pension contributions to money purchase schemes |
7. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
31.12.23 | 31.12.22 |
£ | £ |
Hire of plant and machinery |
Other operating leases |
Depreciation - owned assets |
Profit on disposal of fixed assets | ( |
) |
Auditors' remuneration |
Foreign exchange differences |
8. | INTEREST RECEIVABLE AND SIMILAR INCOME |
31.12.23 | 31.12.22 |
£ | £ |
Deposit account interest |
LAVERY ROWE ADVERTISING LIMITED (REGISTERED NUMBER: 01481734) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
9. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
31.12.23 | 31.12.22 |
£ | £ |
Current tax: |
UK corporation tax |
Prior periods tax | (1 | ) | 1,093 |
Tax on profit |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
31.12.23 | 31.12.22 |
£ | £ |
Profit before tax |
Profit multiplied by the standard rate of corporation tax in the UK of |
Effects of: |
Expenses not deductible for tax purposes |
Adjustments to tax charge in respect of previous periods | ( |
) |
Group relief | - | (3,600 | ) |
Deferred tax not recognised | 1,451 | (2,277 | ) |
Total tax charge | 170,011 | 124,608 |
10. | DIVIDENDS |
31.12.23 | 31.12.22 |
£ | £ |
Ordinary share capital shares of £1 each |
Interim |
11. | RETIREMENT BENEFIT SCHEMES |
Defined contribution schemes |
2023 | 2022 |
£ | £ |
Charge to profit or loss in respect of defined contribution schemes | 21,653 | 24,057 |
The company operates a defined contribution scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund. |
LAVERY ROWE ADVERTISING LIMITED (REGISTERED NUMBER: 01481734) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
12. | TANGIBLE FIXED ASSETS |
Fixtures |
Freehold | Short | and |
property | leasehold | fittings | Totals |
£ | £ | £ | £ |
COST |
At 1 January 2023 |
Additions |
Disposals | ( |
) | ( |
) |
At 31 December 2023 |
DEPRECIATION |
At 1 January 2023 |
Charge for year |
At 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
13. | INVESTMENT PROPERTY |
Total |
£ |
FAIR VALUE |
At 1 January 2023 |
Disposals | ( |
) |
At 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
14. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31.12.23 | 31.12.22 |
£ | £ |
Trade debtors |
Amounts owed by group undertakings |
Other debtors |
Directors' current accounts | 33,305 | 25,480 |
Prepayments |
LAVERY ROWE ADVERTISING LIMITED (REGISTERED NUMBER: 01481734) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
15. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31.12.23 | 31.12.22 |
£ | £ |
Bank loans and overdrafts (see note 16) |
Trade creditors |
Amounts owed to group undertakings |
Tax |
Social security and other taxes |
VAT | 32,775 | 23,514 |
Other creditors |
Pension creditor | 4,897 | 4,922 |
Accruals and deferred income |
16. | LOANS |
An analysis of the maturity of loans is given below: |
31.12.23 | 31.12.22 |
£ | £ |
Amounts falling due within one year or on demand: |
Bank overdrafts |
17. | LEASING AGREEMENTS |
Minimum lease payments under non-cancellable operating leases fall due as follows: |
31.12.23 | 31.12.22 |
£ | £ |
Within one year |
Between one and five years |
18. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 31.12.23 | 31.12.22 |
value: | £ | £ |
Ordinary share capital | £1 | 277,439 | 277,439 |
19. | RESERVES |
Retained earnings represent cumulative profit and loss net of distributions to owners. |
As at the balance sheet date the company had distributable reserves of £1,994,831 (2022: £2,304,931). |
20. | DIRECTORS' TRANSACTIONS |
Interest free loans have been granted by the company to its directors as follows: |
Description | % Rate | Opening Balance | Amounts advanced | Closing balance |
£ | £ | £ |
Directors loan account | - | 25,480 | 7,826 | 33,306 |
LAVERY ROWE ADVERTISING LIMITED (REGISTERED NUMBER: 01481734) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
21. | RELATED PARTY DISCLOSURES |
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
22. | ULTIMATE CONTROLLING PARTY |
The parent and immediate controlling party of the entity is Lavery Rowe Holdings Limited, a company |
incorporated in England and Wales. As at the balance sheet date there was no ultimate controlling party of |
Lavery Rowe Holdings Limited. Lavery Rowe Holdings Limited will prepare consolidated group accounts. |