REGISTERED NUMBER: 07450465 (England and Wales) |
LYNTON LASERS GROUP LTD |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
REGISTERED NUMBER: 07450465 (England and Wales) |
LYNTON LASERS GROUP LTD |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
LYNTON LASERS GROUP LTD (REGISTERED NUMBER: 07450465) |
CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 4 |
Report of the Independent Auditors | 6 |
Consolidated Income Statement | 10 |
Consolidated Other Comprehensive Income | 11 |
Consolidated Balance Sheet | 12 |
Company Balance Sheet | 13 |
Consolidated Statement of Changes in Equity | 14 |
Company Statement of Changes in Equity | 15 |
Consolidated Cash Flow Statement | 16 |
Notes to the Consolidated Financial Statements | 17 |
LYNTON LASERS GROUP LTD |
COMPANY INFORMATION |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Accountants and |
Statutory Auditors |
Clarke Nicklin House |
Brooks Drive |
Cheadle Royal Business Park |
Cheadle |
Cheshire |
SK8 3TD |
LYNTON LASERS GROUP LTD (REGISTERED NUMBER: 07450465) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
The directors present their strategic report of the company and the group for the year ended 31 December 2023. |
REVIEW OF BUSINESS |
Lynton Lasers Group Limited has continued to grow despite the challenging market conditions affected by high inflation and associated increased interest rates. The company has maintained the gains made in the post-pandemic period and was successful with continued revenue growth during the period, particularly in the second half of the year, resulting in turnover up from the previous 12 months at £12,009,707 for 2023, which represents a 3% increase. |
During this same period, Lynton Lasers Group has embarked on a program of investment to improve both business infrastructure and product development. During the year, Lynton Lasers Group has invested further in R&D, recruiting new talent to further develop globally competitive products and prepare for the forthcoming regulatory changes following the introduction of the Medical Device Regulation MDR. |
Lynton Lasers Group's core market, medical/aesthetics, remains resilient despite some challenges presented by high inflation and foreign currency volatility. Lynton Lasers Group continues to offer exceptionally high levels of support for its extensive and growing customer base. Further work is planned to offer an increasing selection of support services (such as the recently developed Lynton Business School) which will add additional value to customers whilst driving growth in income via service support. |
Foreign currency exchange rates remained volatile, but strong relationships with our suppliers and a significant stockholding enabled us to ensure minimal disruption in both availability and pricing of our machines.Lynton Lasers Group also benefits from a natural hedge in foreign exchange with both expenditure but also income in Euros and Dollars. |
Lynton Lasers Group has recognized the need to invest in more robust and efficient business systems. Given the recent growth, the company is assessing options for the implementation of an ERP system which will improve various areas of the business including demand planning and general business efficiency. Using external consultancy, Lynton Lasers Group has undergone a thorough review of its existing processes and systems and an extensive assessment of ERP solutions has just concluded. Whilst this represents further investment, the efficiency gains and robust infrastructure delivered with the new ERP system will allow the company to drive more profitable growth for the future without the corresponding need for an increasing workforce which has reached 75 at the end of 2023. |
At the year-end net assets rose to £3.5m, up from £3.1m in 2022, with net current assets also increasing, leaving the business with a very strong balance sheet. |
LYNTON LASERS GROUP LTD (REGISTERED NUMBER: 07450465) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
PRINCIPAL RISKS AND UNCERTAINTIES |
The directors consider the full range of risks affecting the company on a regular basis, and where appropriate take action to address such risks. The principal risks and uncertainties facing the company are detailed below: |
Market Risk |
The company operates in a competitive market place, however the strength of the company brands and a focus on developing long-term relationships with its customers is deemed to cover this risk. |
Credit Risk |
The company's credit risk is primarily attributed to its trade debtors. The company continues to expand its customer base and has no significant concentration of credit risk. The company has a good record of minimising bad debts and takes the necessary steps to ensure the risk is minimised. The credit risk on liquid funds is limited because the counterparties are banks with high credit ratings assigned by credit rating agencies. |
Liquidity Risk |
The company manages its debt finance in such a way to ensure that it has sufficient funds available for ongoing operations and future developments. |
Foreign Exchange Risk |
Foreign exchange rates remain volatile. Management continue to review the volume of contracts entered into that are derived in foreign currencies. The current position of not hedging this risk is regularly considered, and should the directors consider the need, appropriate hedging strategies will be entered into. |
ON BEHALF OF THE BOARD: |
11 September 2024 |
LYNTON LASERS GROUP LTD (REGISTERED NUMBER: 07450465) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
The directors present their report with the financial statements of the company and the group for the year ended 31 December 2023. |
PRINCIPAL ACTIVITY |
The principal activity of the group in the year under review was that of the development, production and rental of medical laser equipment with emphasis on the field of dermatology and cosmetic applications. |
DIVIDENDS |
The total distribution of dividends in the period ended 31 December 2023 was £500,281 (2022: £892,044). |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 January 2023 to the date of this report. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Group Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
LYNTON LASERS GROUP LTD (REGISTERED NUMBER: 07450465) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
AUDITORS |
The auditors, Clarke Nicklin LLP, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
LYNTON LASERS GROUP LTD |
Opinion |
We have audited the financial statements of Lynton Lasers Group Ltd (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
In our opinion the financial statements: |
- | give a true and fair view of the state of the group's and of the parent company affairs as at 31 December 2023 and of the group's profit for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
Conclusions relating to going concern |
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
LYNTON LASERS GROUP LTD |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the parent company financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page four, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
In preparing the financial statements, the directors are responsible for assessing the group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
LYNTON LASERS GROUP LTD |
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: |
Procedures to identify risks: |
- | enquiring of management concerning the company's procedures relating to: identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of noncompliance; detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud; |
- | discussing among the engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud. As part of this discussion, we identified potential for fraud in the following areas: timing of recognition of sales and purchases and their related stock movements, posting of unusual journals; and |
- | obtaining an understanding of the legal and regulatory frameworks that the company operates in, focusing on those laws and regulations that had a direct effect on the financial statements or that had a fundamental effect on the operations of the company. The key laws and regulations we considered in this context included UK Companies Act, employment law, health and safety, pensions legislation and tax legislation. |
The procedures to respond to risks identified included: |
- | reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with relevant laws and regulations discussed above; |
- | enquiring of management, concerning actual and potential litigation and claims; |
- | performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud; |
- | reviewing correspondence with HMRC; |
- | testing the timing and matching of income and expense transactions relating to stock movements either side of the year end; and |
- | in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business. |
We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members, and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit. |
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 regulation that are not closely related to events and transactions reflected in the financial statements. The risk of not detecting a material misstatement due to fraud is higher than the risk of not detection one resulting from an error, as fraud may involve deliberate concealment, by for example, forgery or intentional misrepresentation, 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. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
LYNTON LASERS GROUP LTD |
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 |
Chartered Accountants and |
Statutory Auditors |
Clarke Nicklin House |
Brooks Drive |
Cheadle Royal Business Park |
Cheadle |
Cheshire |
SK8 3TD |
LYNTON LASERS GROUP LTD (REGISTERED NUMBER: 07450465) |
CONSOLIDATED INCOME STATEMENT |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
2023 | 2022 |
Notes | £ | £ |
TURNOVER | 3 | 12,009,707 | 11,684,587 |
Cost of sales | 5,007,764 | 4,747,609 |
GROSS PROFIT | 7,001,943 | 6,936,978 |
Administrative expenses | 6,020,253 | 5,485,503 |
OPERATING PROFIT | 5 | 981,690 | 1,451,475 |
Interest payable and similar expenses | 6 | - | 5,876 |
PROFIT BEFORE TAXATION | 981,690 | 1,445,599 |
Tax on profit | 7 | 104,748 | 141,535 |
PROFIT FOR THE FINANCIAL YEAR |
Profit attributable to: |
Owners of the parent | 876,942 | 1,304,064 |
LYNTON LASERS GROUP LTD (REGISTERED NUMBER: 07450465) |
CONSOLIDATED OTHER COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
2023 | 2022 |
Notes | £ | £ |
PROFIT FOR THE YEAR | 876,942 | 1,304,064 |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
876,942 |
1,304,064 |
Total comprehensive income attributable to: |
Owners of the parent | 876,942 | 1,304,064 |
LYNTON LASERS GROUP LTD (REGISTERED NUMBER: 07450465) |
CONSOLIDATED BALANCE SHEET |
31 DECEMBER 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 10 | 4,552 | 9,083 |
Tangible assets | 11 | 1,926,813 | 1,727,122 |
Investments | 12 | - | - |
1,931,365 | 1,736,205 |
CURRENT ASSETS |
Stocks | 13 | 1,424,200 | 1,231,775 |
Debtors | 14 | 842,096 | 916,063 |
Cash at bank and in hand | 1,834,485 | 2,073,755 |
4,100,781 | 4,221,593 |
CREDITORS |
Amounts falling due within one year | 15 | 2,433,841 | 2,754,444 |
NET CURRENT ASSETS | 1,666,940 | 1,467,149 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
3,598,305 |
3,203,354 |
CREDITORS |
Amounts falling due after more than one year |
16 |
(39,208 |
) |
(28,078 |
) |
PROVISIONS FOR LIABILITIES | 19 | (100,317 | ) | (93,157 | ) |
NET ASSETS | 3,458,780 | 3,082,119 |
CAPITAL AND RESERVES |
Called up share capital | 20 | 55,861 | 55,861 |
Capital redemption reserve | 21 | 646 | 646 |
Retained earnings | 21 | 3,402,273 | 3,025,612 |
SHAREHOLDERS' FUNDS | 3,458,780 | 3,082,119 |
The financial statements were approved by the Board of Directors and authorised for issue on 11 September 2024 and were signed on its behalf by: |
J A Exley PhD - Director |
LYNTON LASERS GROUP LTD (REGISTERED NUMBER: 07450465) |
COMPANY BALANCE SHEET |
31 DECEMBER 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 10 |
Tangible assets | 11 |
Investments | 12 |
CURRENT ASSETS |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 15 |
NET CURRENT LIABILITIES | ( |
) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CAPITAL AND RESERVES |
Called up share capital | 20 |
Capital redemption reserve |
Retained earnings |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | 500,041 | 891,799 |
The financial statements were approved by the Board of Directors and authorised for issue on |
LYNTON LASERS GROUP LTD (REGISTERED NUMBER: 07450465) |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
Called up | Capital |
share | Retained | redemption | Total |
capital | earnings | reserve | equity |
£ | £ | £ | £ |
Balance at 1 January 2022 | 55,861 | 2,613,592 | 646 | 2,670,099 |
Changes in equity |
Dividends | - | (892,044 | ) | - | (892,044 | ) |
Total comprehensive income | - | 1,304,064 | - | 1,304,064 |
Balance at 31 December 2022 | 55,861 | 3,025,612 | 646 | 3,082,119 |
Changes in equity |
Dividends | - | (500,281 | ) | - | (500,281 | ) |
Total comprehensive income | - | 876,942 | - | 876,942 |
Balance at 31 December 2023 | 55,861 | 3,402,273 | 646 | 3,458,780 |
LYNTON LASERS GROUP LTD (REGISTERED NUMBER: 07450465) |
COMPANY STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
Called up | Capital |
share | Retained | redemption | Total |
capital | earnings | reserve | equity |
£ | £ | £ | £ |
Balance at 1 January 2022 |
Changes in equity |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - |
Balance at 31 December 2022 |
Changes in equity |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - |
Balance at 31 December 2023 |
LYNTON LASERS GROUP LTD (REGISTERED NUMBER: 07450465) |
CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
2023 | 2022 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 22 | 1,059,060 | 1,088,176 |
Interest paid | - | (2,245 | ) |
Interest element of hire purchase payments paid |
- |
(3,631 |
) |
Tax paid | (111,342 | ) | (48,529 | ) |
Net cash from operating activities | 947,718 | 1,033,771 |
Cash flows from investing activities |
Purchase of intangible fixed assets | (1,695 | ) | (1,229 | ) |
Purchase of tangible fixed assets | (1,083,903 | ) | (747,460 | ) |
Sale of tangible fixed assets | 441,714 | 637,450 |
Net cash from investing activities | (643,884 | ) | (111,239 | ) |
Cash flows from financing activities |
Loan repayments in year | - | (22,273 | ) |
Capital repayments in year | (42,823 | ) | (59,659 | ) |
Equity dividends paid | (500,281 | ) | (892,044 | ) |
Net cash from financing activities | (543,104 | ) | (973,976 | ) |
Decrease in cash and cash equivalents | (239,270 | ) | (51,444 | ) |
Cash and cash equivalents at beginning of year |
23 |
2,073,755 |
2,125,199 |
Cash and cash equivalents at end of year |
23 |
1,834,485 |
2,073,755 |
LYNTON LASERS GROUP LTD (REGISTERED NUMBER: 07450465) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
1. | STATUTORY INFORMATION |
Lynton Lasers Group Ltd is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
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 applicable legislation as set out in the Companies Act 2006 and Schedule 1 of the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008. These financial statements have been prepared under the historical costs convention. |
The financial statements are presented in Sterling (£). |
Going concern |
The directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The directors have reached this conclusion giving due consideration to the projected future performance of the company and any potential risk that might impact the company's ability to meet its required solvency levels. For this reason, they continue to adopt the going concern basis in preparing the financial statements. |
Basis of consolidation |
The consolidated income statement and balance sheet include the financial statements of the company and its subsidiary undertakings. The results of subsidiaries acquired or sold during the period are included in the consolidated income statement from, or up to, the date control passes. Intra-group transactions are eliminated fully on consolidation. |
On acquisition of a subsidiary, the subsidiary's assets and liabilities that exist at the date of acquisition are recorded at their fair values reflecting their condition at that date. All changes to those assets and liabilities, and the resulting gains and losses that arise after the group has gained control of the subsidiary are charged to the post acquisition income statement. |
Related party exemption |
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements. |
LYNTON LASERS GROUP LTD (REGISTERED NUMBER: 07450465) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
2. | ACCOUNTING POLICIES - continued |
Significant judgements and 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 revision only affects that period, or in the period of the revision and future periods if the revision affects both current and future periods. |
The following judgements have had the most significant effect on amounts recognised in the financial statements; |
Depreciation - The useful life of fixed assets can vary significantly. Estimates are based on historic experience and current expectations of useful life. The size of prior year gains and losses on disposal are also factored in to estimates. |
Bad debts - The directors regularly review debts and provide for those which are doubtful. |
Turnover |
Turnover represents net invoices sales of goods, excluding value added tax. Sales are recognised on the date of despatch to the customer. |
Intangible assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
Goodwill |
Negative goodwill, being the amount paid in connection with the acquisition of the subsidiaries in 2020 have now been fully amortised. |
Tangible fixed assets |
Improvements to property | - |
Fixtures and fittings | - |
Plant and machinery | - |
Laser equipment | - |
Motor vehicles | - |
Office and computer equipment | - |
Stocks |
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, 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. |
LYNTON LASERS GROUP LTD (REGISTERED NUMBER: 07450465) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
2. | ACCOUNTING POLICIES - continued |
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. |
Research and development |
Expenditure on research and development is written off in the year in which it is incurred. |
Foreign currencies |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result. |
Hire purchase and leasing commitments |
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter. |
The interest element of these obligations is charged to the income statement over the relevant period. The capital element of the future payments is treated as a liability. |
Costs in respect of operating leases are charged on a straight line basis over the lease term. |
Pension costs and other post-retirement benefits |
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
LYNTON LASERS GROUP LTD (REGISTERED NUMBER: 07450465) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
2. | ACCOUNTING POLICIES - continued |
Financial assets |
Basic financial assets, including trade debtors, cash and bank balances and amounts owed by group undertakings, are initially recognised at transaction price, 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. |
Such assets are subsequently carried at amortised cost using the effective interest method. |
At the end of each reporting period, financial assets measured at amortised cost are assessed for objective evidence of impairment. 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 the income statement. |
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 the income statement. |
Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party, or (c) control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions. |
Financial Liabilities |
Basic financial liabilities, including trade creditors and amounts owed to group undertakings, 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 receipts discounted at a market rate of interest. |
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Trade creditors 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. |
Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires. |
3. | TURNOVER |
The turnover and profit before taxation are attributable to the one principal activity of the group. |
An analysis of turnover by class of business is given below: |
2023 | 2022 |
£ | £ |
Machine sales | 8,487,095 | 8,609,071 |
Rental and services | 3,522,612 | 3,075,516 |
12,009,707 | 11,684,587 |
LYNTON LASERS GROUP LTD (REGISTERED NUMBER: 07450465) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
3. | TURNOVER - continued |
An analysis of turnover by geographical market is given below: |
2023 | 2022 |
£ | £ |
United Kingdom | 11,297,200 | 10,910,634 |
Europe | 362,156 | 350,809 |
United States of America | 250,391 | 191,216 |
Rest of the World | 99,960 | 231,928 |
12,009,707 | 11,684,587 |
4. | EMPLOYEES AND DIRECTORS |
2023 | 2022 |
£ | £ |
Wages and salaries | 2,943,712 | 2,643,179 |
Social security costs | 340,491 | 323,057 |
Other pension costs | 139,974 | 125,667 |
3,424,177 | 3,091,903 |
The average number of employees during the year was as follows: |
2023 | 2022 |
Directors | 7 | 7 |
Commercial | 23 | 22 |
Operations | 34 | 32 |
Clinical | 10 | 8 |
The average number of employees by undertakings that were proportionately consolidated during the year was NIL (2022 - NIL). |
2023 | 2022 |
£ | £ |
Directors' remuneration | 246,315 | 262,885 |
Directors' pension contributions to money purchase schemes | - | 27,733 |
Information regarding the highest paid director is as follows: |
2023 | 2022 |
£ | £ |
Emoluments etc | 115,042 | 136,436 |
Pension contributions to money purchase schemes | - | 15,164 |
LYNTON LASERS GROUP LTD (REGISTERED NUMBER: 07450465) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
5. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
2023 | 2022 |
£ | £ |
Depreciation - owned assets | 564,163 | 511,573 |
Depreciation - assets on hire purchase contracts | 29,741 | 58,425 |
Profit on disposal of fixed assets | (78,337 | ) | - |
Patents and licences amortisation | 2,905 | 2,680 |
Computer software amortisation | 3,321 | 3,830 |
Auditors' remuneration | 17,600 | 15,200 |
Lease payments recognised as an expense | 123,719 | 142,147 |
Bad debt provision | 54,789 | 56,926 |
Exchange (gains)/losses | (75,524 | ) | (60,396 | ) |
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2023 | 2022 |
£ | £ |
Loan interest | - | 2,245 |
Hire purchase | - | 3,631 |
- | 5,876 |
7. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2023 | 2022 |
£ | £ |
Current tax: |
UK corporation tax | 97,588 | 111,342 |
Under/(over)provision in prior year | - | 769 |
Total current tax | 97,588 | 112,111 |
Deferred tax | 7,160 | 29,424 |
Tax on profit | 104,748 | 141,535 |
LYNTON LASERS GROUP LTD (REGISTERED NUMBER: 07450465) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
7. | TAXATION - continued |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
2023 | 2022 |
£ | £ |
Profit before tax | 981,690 | 1,445,599 |
Profit multiplied by the standard rate of corporation tax in the UK of 23.429 % (2022 - 19 %) |
230,000 |
274,664 |
Effects of: |
Expenses not deductible for tax purposes | 7,591 | 4,090 |
Capital allowances in excess of depreciation | (17,904 | ) | (65,189 | ) |
Adjustments to tax charge in respect of previous periods | - | 769 |
Patent box adjustment | (9,028 | ) | (13,250 | ) |
Research and Development | (105,911 | ) | (77,821 | ) |
Remeasurement of deferred tax due to change in UK tax rate | - | 18,272 |
Total tax charge | 104,748 | 141,535 |
8. | INDIVIDUAL INCOME STATEMENT |
As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
9. | DIVIDENDS |
2023 | 2022 |
£ | £ |
Ordinary shares of £1 each |
Interim | 500,281 | 892,044 |
LYNTON LASERS GROUP LTD (REGISTERED NUMBER: 07450465) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
10. | INTANGIBLE FIXED ASSETS |
Group |
Patents |
Negative | and | Computer |
goodwill | licences | software | Totals |
£ | £ | £ | £ |
COST |
At 1 January 2023 | (687,857 | ) | 35,823 | 22,046 | (629,988 | ) |
Additions | - | 1,695 | - | 1,695 |
At 31 December 2023 | (687,857 | ) | 37,518 | 22,046 | (628,293 | ) |
AMORTISATION |
At 1 January 2023 | (687,857 | ) | 31,881 | 16,905 | (639,071 | ) |
Amortisation for year | - | 2,905 | 3,321 | 6,226 |
At 31 December 2023 | (687,857 | ) | 34,786 | 20,226 | (632,845 | ) |
NET BOOK VALUE |
At 31 December 2023 | - | 2,732 | 1,820 | 4,552 |
At 31 December 2022 | - | 3,942 | 5,141 | 9,083 |
11. | TANGIBLE FIXED ASSETS |
Group |
Improvements | Fixtures |
to | and | Plant and |
property | fittings | machinery |
£ | £ | £ |
COST |
At 1 January 2023 | 386,125 | 123,327 | 314,195 |
Additions | - | 2,348 | 6,839 |
Disposals | - | - | - |
At 31 December 2023 | 386,125 | 125,675 | 321,034 |
DEPRECIATION |
At 1 January 2023 | 209,225 | 81,863 | 257,467 |
Charge for year | 34,587 | 13,790 | 22,525 |
Eliminated on disposal | - | - | - |
At 31 December 2023 | 243,812 | 95,653 | 279,992 |
NET BOOK VALUE |
At 31 December 2023 | 142,313 | 30,022 | 41,042 |
At 31 December 2022 | 176,900 | 41,464 | 56,728 |
LYNTON LASERS GROUP LTD (REGISTERED NUMBER: 07450465) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
11. | TANGIBLE FIXED ASSETS - continued |
Group |
Office |
and |
Laser | Motor | computer |
equipment | vehicles | equipment | Totals |
£ | £ | £ | £ |
COST |
At 1 January 2023 | 3,166,483 | 307,632 | 257,554 | 4,555,316 |
Additions | 1,010,263 | 108,819 | 28,703 | 1,156,972 |
Disposals | (590,832 | ) | (63,145 | ) | - | (653,977 | ) |
At 31 December 2023 | 3,585,914 | 353,306 | 286,257 | 5,058,311 |
DEPRECIATION |
At 1 January 2023 | 1,826,709 | 233,243 | 219,687 | 2,828,194 |
Charge for year | 458,177 | 46,489 | 18,336 | 593,904 |
Eliminated on disposal | (227,455 | ) | (63,145 | ) | - | (290,600 | ) |
At 31 December 2023 | 2,057,431 | 216,587 | 238,023 | 3,131,498 |
NET BOOK VALUE |
At 31 December 2023 | 1,528,483 | 136,719 | 48,234 | 1,926,813 |
At 31 December 2022 | 1,339,774 | 74,389 | 37,867 | 1,727,122 |
The gross amount of assets held for use in operating leases is £2,619,451 (2022: £2,283,455) and the |
related accumulated depreciation charges are £1,476,180 (2022: £1,340,454). |
Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
Motor |
vehicles |
£ |
COST |
At 1 January 2023 | 82,779 |
Additions | 73,069 |
At 31 December 2023 | 155,848 |
DEPRECIATION |
At 1 January 2023 | 23,637 |
Charge for year | 29,741 |
At 31 December 2023 | 53,378 |
NET BOOK VALUE |
At 31 December 2023 | 102,470 |
At 31 December 2022 | 59,142 |
LYNTON LASERS GROUP LTD (REGISTERED NUMBER: 07450465) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
12. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
undertaking |
£ |
COST |
At 1 January 2023 |
and 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiaries |
Registered office: |
Nature of business: |
% |
Class of shares: | holding |
Registered office: |
Nature of business: |
% |
Class of shares: | holding |
Registered office: |
Nature of business: |
% |
Class of shares: | holding |
LYNTON LASERS GROUP LTD (REGISTERED NUMBER: 07450465) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
13. | STOCKS |
Group |
2023 | 2022 |
£ | £ |
Raw materials | 1,353,178 | 1,149,291 |
Finished goods | 71,022 | 82,484 |
1,424,200 | 1,231,775 |
14. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group |
2023 | 2022 |
£ | £ |
Trade debtors | 598,916 | 718,704 |
Other debtors | 89,347 | 85,361 |
Prepayments and accrued income | 153,833 | 111,998 |
842,096 | 916,063 |
Trade debtors are stated after provisions for impairment of £61,877 (2022: £123,019). |
15. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Hire purchase contracts (see note 17) | 37,517 | 18,401 |
Trade creditors | 548,362 | 435,797 |
Amounts owed to group undertakings | - | - |
Corporation tax | 97,588 | 111,342 |
Social security and other taxes | 110,433 | 101,540 |
VAT | 325,593 | 416,678 | - | - |
Other creditors | 356,265 | 374,258 |
Directors' current accounts | 644 | 644 | - | - |
Accruals and deferred income | 957,439 | 1,295,784 |
2,433,841 | 2,754,444 |
Pension contributions unpaid at the year end were £18,403 (2022: £16,616). |
16. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group |
2023 | 2022 |
£ | £ |
Hire purchase contracts (see note 17) | 39,208 | 28,078 |
LYNTON LASERS GROUP LTD (REGISTERED NUMBER: 07450465) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
17. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Hire purchase contracts |
2023 | 2022 |
£ | £ |
Net obligations repayable: |
Within one year | 37,517 | 18,401 |
Between one and five years | 39,208 | 28,078 |
76,725 | 46,479 |
Group |
Non-cancellable | operating leases |
2023 | 2022 |
£ | £ |
Within one year | 98,496 | 58,299 |
Between one and five years | 108,073 | 149,342 |
206,569 | 207,641 |
18. | SECURED DEBTS |
The following secured debts are included within creditors: |
Group |
2023 | 2022 |
£ | £ |
Hire purchase contracts | 76,725 | 46,479 |
19. | PROVISIONS FOR LIABILITIES |
Group |
2023 | 2022 |
£ | £ |
Deferred tax | 100,317 | 93,157 |
Group |
Deferred |
tax |
£ |
Balance at 1 January 2023 | 93,157 |
Charge to Income Statement during year | 7,160 |
Balance at 31 December 2023 | 100,317 |
LYNTON LASERS GROUP LTD (REGISTERED NUMBER: 07450465) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
20. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
Ordinary | £1 | 55,861 | 55,861 |
21. | RESERVES |
Group |
Capital |
Retained | redemption |
earnings | reserve | Totals |
£ | £ | £ |
At 1 January 2023 | 3,025,612 | 646 | 3,026,258 |
Profit for the year | 876,942 | 876,942 |
Dividends | (500,281 | ) | (500,281 | ) |
At 31 December 2023 | 3,402,273 | 646 | 3,402,919 |
22. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2023 | 2022 |
£ | £ |
Profit before taxation | 981,690 | 1,445,599 |
Depreciation charges | 600,130 | 575,597 |
Profit on disposal of fixed assets | (78,337 | ) | - |
Finance costs | - | 5,876 |
1,503,483 | 2,027,072 |
Increase in stocks | (192,425 | ) | (1,001,699 | ) |
Decrease/(increase) in trade and other debtors | 73,967 | (78,790 | ) |
(Decrease)/increase in trade and other creditors | (325,965 | ) | 141,593 |
Cash generated from operations | 1,059,060 | 1,088,176 |
LYNTON LASERS GROUP LTD (REGISTERED NUMBER: 07450465) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
23. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 31 December 2023 |
31.12.23 | 1.1.23 |
£ | £ |
Cash and cash equivalents | 1,834,485 | 2,073,755 |
Year ended 31 December 2022 |
31.12.22 | 1.1.22 |
£ | £ |
Cash and cash equivalents | 2,073,755 | 2,125,199 |
24. | ANALYSIS OF CHANGES IN NET FUNDS |
Other |
non-cash |
At 1.1.23 | Cash flow | changes | At 31.12.23 |
£ | £ | £ | £ |
Net cash |
Cash at bank |
and in hand | 2,073,755 | (239,270 | ) | 1,834,485 |
2,073,755 | (239,270 | ) | 1,834,485 |
Debt |
Finance leases | (46,479 | ) | 42,823 | - | (76,725 | ) |
(46,479 | ) | 42,823 | - | (76,725 | ) |
Total | 2,027,276 | (196,447 | ) | - | 1,757,760 |