Company registration number 00762464 (England and Wales)
L. REYNOLDS (BUILDING SYSTEMS) LIMITED
ANNUAL REPORT AND
FINANCIAL STATEMENTS
FOR THE YEAR ENDED
31 MAY 2024
L. REYNOLDS (BUILDING SYSTEMS) LIMITED
COMPANY INFORMATION
Directors
J M Reynolds
L Reynolds
Company number
00762464
Registered office
9 Quorn Business Quarter
Loughborough Road
Mountsorrel
Loughborough
Leicestershire
LE12 7XF
Auditor
Newby Castleman LLP
West Walk Building
110 Regent Road
Leicester
LE1 7LT
Business address
9 Quorn Business Quarter
Loughborough Road
Mountsorrel
Loughborough
Leicestershire
LE12 7XF
L. REYNOLDS (BUILDING SYSTEMS) LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2
Independent auditor's report
3 - 5
Statement of income and retained earnings
6
Balance sheet
7
Statement of cash flows
8
Notes to the financial statements
9 - 18
L. REYNOLDS (BUILDING SYSTEMS) LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MAY 2024
- 1 -

The directors present the strategic report for the year ended 31 May 2024.

Fair Review of the Business

The company's principal activities continue to be that of drylining and other specialist building finishes.

 

We aim to present a balanced and comprehensive review of the development and performance of our business during the year and its position at the year end. Our review is consistent with the size and nature of our business and is written in the context of the risks and uncertainties we face.

 

As for many businesses of our size, the business environment in which we operate continues to be challenging. In light of the challenging business environment, economic factors and competitive nature of the industry, we consider the company’s results for the year and its financial position at the year end to be satisfactory and believe that the company is well placed to react quickly to any changes in trading conditions and to take advantage of any business opportunities that may arise.

Principal Risks and Uncertainties

The principal risks and uncertainties faced by the company continue to be the uncertainty over contracts that are won year on year. The continued success of the company depends on our ability to continue to maintain a good reputation which in turn will ensure the company wins more contracts; consequently this will ensure the company continues to maintain a strong financial position.

 

The company responds to this risk by continually improving operational effectiveness. Changes are implemented where deemed appropriate.

Key Performance Indicators

We consider that our key financial performance indicators are those that communicate the financial performance and strength of the company as a whole, being turnover and gross profit margin.

 

During the year turnover has decreased to £14,429,864 (2023: £19,446,420); and the gross profit margin has increased to 24.3% (2023: 24.2%). This has resulted in an decrease in profit before taxation to £2,033,796 (2023: £3,266,453). After taxation and dividends, reserves have decreased by £782,113.

On behalf of the board

J M Reynolds
Director
25 July 2024
L. REYNOLDS (BUILDING SYSTEMS) LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MAY 2024
- 2 -

The directors present their report and financial statements for the year ended 31 May 2024.

Results and dividends

The results for the year are set out on page 6.

Ordinary dividends were paid amounting to £2,300,000. The directors do not recommend payment of a final dividend.

Directors

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

J M Reynolds
L Reynolds
Statement of directors' responsibilities

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Statement of disclosure to auditor

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

On behalf of the board
J M Reynolds
Director
25 July 2024
L. REYNOLDS (BUILDING SYSTEMS) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF L. REYNOLDS (BUILDING SYSTEMS) LIMITED
- 3 -
Opinion

We have audited the financial statements of L. Reynolds (Building Systems) Limited (the 'company') for the year ended 31 May 2024 which comprise the Statement of Income and Retained Earnings, the Balance Sheet, the Statement of Cash Flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

 

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

 

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

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

L. REYNOLDS (BUILDING SYSTEMS) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF L. REYNOLDS (BUILDING SYSTEMS) LIMITED
- 4 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors' Report.

 

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

Responsibilities of directors

As explained more fully in the Directors' Responsibilities Statement set out on page 2, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

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

We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion. However, responsibility for the prevention and detection of fraud ultimately rests with both those charged with governance and management of the company.

 

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:

 

L. REYNOLDS (BUILDING SYSTEMS) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF L. REYNOLDS (BUILDING SYSTEMS) LIMITED
- 5 -
Audit response to risks of irregularities identified

Our procedures to respond to risks identified included the following:

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Christopher Castleman FCA (Senior Statutory Auditor)
For and on behalf of Newby Castleman LLP
26 July 2024
Chartered Accountants
Statutory Auditor
West Walk Building
110 Regent Road
Leicester
LE1 7LT
L. REYNOLDS (BUILDING SYSTEMS) LIMITED
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 MAY 2024
- 6 -
2024
2023
Notes
£
£
Turnover
3
14,429,864
19,446,420
Cost of sales
(10,924,148)
(14,748,746)
Gross profit
3,505,716
4,697,674
Distribution costs
(163,533)
(130,733)
Administrative expenses
(1,337,933)
(1,308,253)
Operating profit
4
2,004,250
3,258,688
Interest receivable and similar income
7
34,760
8,593
Interest payable and similar expenses
8
(5,214)
(828)
Profit before taxation
2,033,796
3,266,453
Taxation
9
(515,909)
(656,209)
Profit for the financial year
1,517,887
2,610,244
Retained earnings brought forward
3,392,332
2,782,088
Dividends
10
(2,300,000)
(2,000,000)
Retained earnings carried forward
2,610,219
3,392,332

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

L. REYNOLDS (BUILDING SYSTEMS) LIMITED
BALANCE SHEET
AS AT
31 MAY 2024
31 May 2024
- 7 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
11
364,354
334,119
Current assets
Stocks
12
6,250
6,250
Debtors
13
2,602,874
4,472,128
Cash at bank and in hand
1,397,332
1,007,392
4,006,456
5,485,770
Creditors: amounts falling due within one year
14
(1,740,798)
(2,414,579)
Net current assets
2,265,658
3,071,191
Total assets less current liabilities
2,630,012
3,405,310
Creditors: amounts falling due after more than one year
15
(1,865)
-
0
Provisions for liabilities
Deferred tax liability
17
14,928
9,978
(14,928)
(9,978)
Net assets
2,613,219
3,395,332
Capital and reserves
Called up share capital
19
3,000
3,000
Profit and loss reserves
20
2,610,219
3,392,332
Total equity
2,613,219
3,395,332

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements were approved by the board of directors and authorised for issue on 25 July 2024 and are signed on its behalf by:
J M Reynolds
Director
Company registration number 00762464 (England and Wales)
L. REYNOLDS (BUILDING SYSTEMS) LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MAY 2024
- 8 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
23
3,379,237
3,024,024
Interest paid
(5,214)
(828)
Income taxes paid
(641,223)
(221,017)
Net cash inflow from operating activities
2,732,800
2,802,179
Investing activities
Purchase of tangible fixed assets
(132,458)
(253,108)
Proceeds from disposal of tangible fixed assets
79,311
122,221
Interest received
34,760
8,593
Net cash used in investing activities
(18,387)
(122,294)
Financing activities
Payment of finance leases obligations
(24,473)
(14,852)
Dividends paid
(2,300,000)
(2,000,000)
Net cash used in financing activities
(2,324,473)
(2,014,852)
Net increase in cash and cash equivalents
389,940
665,033
Cash and cash equivalents at beginning of year
1,007,392
342,359
Cash and cash equivalents at end of year
1,397,332
1,007,392
L. REYNOLDS (BUILDING SYSTEMS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
- 9 -
1
Accounting policies
Company information

L. Reynolds (Building Systems) Limited is a private company limited by shares incorporated in England and Wales. The address of the registered office and the place of business is given in the company information page of these financial statements.

1.1
Basis of preparation

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

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

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

1.2
Going concern

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

1.3
Turnover

Turnover represents amounts receivable for drylining and other specialist building finishes services net of VAT and trade discounts.

Revenue from contracts for the provision of services is recognised by reference to the stage of completion of the contract activity at the end of the reporting period when the stage of completion, costs incurred and costs to complete can be estimated reliably.

1.4
Tangible fixed assets

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

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

Leasehold improvements
15% per annum of net book value.
Plant and machinery
15% per annum of net book value.
Fixtures, fittings & equipment
15% per annum of net book value.
Motor vehicles
25% per annum of net book value.
1.5
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset, or the asset's cash generating unit is estimated and compared to the carrying amount in order to determine the extent of the impairment loss (if any). Where the carrying amount exceeds its recoverable amount, an impairment loss is recognised in the profit and loss account unless the asset is carried at a revalued amount where the impairment loss is a revaluation decrease.

L. REYNOLDS (BUILDING SYSTEMS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
1
Accounting policies
(Continued)
- 10 -
1.6
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition. Provision is made for damaged, obsolete and slow-moving stock where appropriate.

1.7
Financial instruments

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

Debtors and creditors with no stated interest rate and receivable or payable within one year are measured at transaction price. Any losses arising from impairment are recognised in the profit and loss account.

1.8
Taxation

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

Current tax

The tax currently payable is based on taxable profit for the year. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

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

 

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

1.9
Employee benefits

When employees have rendered service to the company, short-term employee benefits to which the employees are entitled are recognised at the undiscounted amount expected to be paid in exchange for that service.

 

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

1.10
Retirement benefits

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

L. REYNOLDS (BUILDING SYSTEMS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
1
Accounting policies
(Continued)
- 11 -
1.11
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to the profit and loss account so as to produce a constant periodic rate of interest on the remaining balance of the liability.

2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised 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.

Stage of completion and construction contracts

As explained in note 1.3, where contracts can be estimated reliably, contract revenues and costs are recognised for each contract on a stage of completion basis. The application of this accounting policy requires both the total costs of a contract and the stage of completion of contracts to be assessed.

 

Surveys of work performed are carried out by qualified surveyors . An inherent degree of judgement will exist in determining the stage of completion on a contract at any given time.

The directors do not consider there to be any other key sources of estimation uncertainty that have a significant effect on the amounts recognised in the financial statements.

3
Turnover and other revenue

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

2024
2023
£
£
Turnover analysed by class of business
Contract Income
14,429,864
19,446,420
2024
2023
£
£
Other significant revenue
Interest income
34,760
8,593
L. REYNOLDS (BUILDING SYSTEMS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 12 -
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
17,365
16,538
Depreciation of owned tangible fixed assets
77,980
44,326
Depreciation of tangible fixed assets held under finance leases
8,331
9,685
Profit on disposal of tangible fixed assets
(18,399)
(19,241)
5
Employees

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

2024
2023
Number
Number
Site employees
11
11
Administrative employees
12
11
Total
23
22

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
1,287,168
1,240,506
Social security costs
155,468
154,497
Pension costs
35,141
69,856
1,477,777
1,464,859
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
152,964
188,840
Company pension contributions to defined contribution schemes
419
38,918
153,383
227,758

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2023 - 2).

L. REYNOLDS (BUILDING SYSTEMS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 13 -
7
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
34,760
6,337
Other interest income
-
0
2,256
Total income
34,760
8,593
2024
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
34,760
6,337
8
Interest payable and similar expenses
2024
2023
£
£
Other finance costs:
Interest on finance leases and hire purchase contracts
27
828
Other interest
5,187
-
0
5,214
828
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
510,959
642,888
Deferred tax
Origination and reversal of timing differences
4,950
13,321
Total tax charge
515,909
656,209

From 1 April 2023, the UK corporation tax rate increased from 19% to 25%. The prior year rate is pro-rated accordingly.

L. REYNOLDS (BUILDING SYSTEMS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
9
Taxation
(Continued)
- 14 -

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

2024
2023
£
£
Profit before taxation
2,033,796
3,266,453
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 20.00%)
508,449
653,291
Tax effect of expenses that are not deductible in determining taxable profit
7,098
4,904
Effect of change in corporation tax rate
-
0
2,663
Depreciation on assets not qualifying for tax allowances
362
(4,738)
Other differences
-
0
89
Taxation charge for the year
515,909
656,209
10
Dividends
2024
2023
£
£
Interim paid
2,300,000
2,000,000
11
Tangible fixed assets
Leasehold improvements
Plant and machinery
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 June 2023
16,084
43,899
125,649
377,469
563,101
Additions
-
0
-
0
3,377
174,081
177,458
Disposals
-
0
-
0
-
0
(137,399)
(137,399)
At 31 May 2024
16,084
43,899
129,026
414,151
603,160
Depreciation and impairment
At 1 June 2023
4,469
41,176
80,311
103,026
228,982
Depreciation charged in the year
1,669
408
7,107
77,127
86,311
Eliminated in respect of disposals
-
0
-
0
-
0
(76,487)
(76,487)
At 31 May 2024
6,138
41,584
87,418
103,666
238,806
Carrying amount
At 31 May 2024
9,946
2,315
41,608
310,485
364,354
At 31 May 2023
11,615
2,723
45,338
274,443
334,119
L. REYNOLDS (BUILDING SYSTEMS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
11
Tangible fixed assets
(Continued)
- 15 -

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

2024
2023
£
£
Motor vehicles
58,319
29,056
12
Stocks
2024
2023
£
£
Raw materials and consumables
6,250
6,250
13
Debtors
2024
2023
Amounts falling due within one year
£
£
Trade debtors
781,431
975,931
Gross amounts due from contract customers
1,505,216
2,618,520
Amounts due from group undertakings
35,122
535,122
Other debtors
196,943
305,126
Prepayments and accrued income
84,162
37,429
2,602,874
4,472,128
14
Creditors: amounts falling due within one year
2024
2023
£
£
Obligations under finance leases
16
22,375
3,713
Trade creditors
996,207
1,544,107
Corporation tax
315,960
446,224
Other taxation and social security
92,227
93,540
Other creditors
129,785
138,884
Accruals and deferred income
184,244
188,111
1,740,798
2,414,579

Creditors due within one year amounting to £22,375 (2023: £3,713) are secured against the assets to which they relate.

L. REYNOLDS (BUILDING SYSTEMS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 16 -
15
Creditors: amounts falling due after more than one year
2024
2023
£
£
Obligations under finance leases
16
1,865
-
0

Creditors due after one year amounting to £1,865 (2023: £nil) are secured against the assets to which they relate.

16
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
22,375
3,713
In two to five years
1,865
-
0
24,240
3,713

Finance lease payments represent rentals payable by the company for certain motor vehicles. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 2-3 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

17
Deferred taxation

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

Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
14,928
9,978
2024
Movements in the year:
£
Liability at 1 June 2023
9,978
Charge to profit or loss
4,950
Liability at 31 May 2024
14,928
L. REYNOLDS (BUILDING SYSTEMS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 17 -
18
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
35,141
69,856

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

19
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
3,000
3,000
3,000
3,000

The company has one class of ordinary shares. There are no restrictions on the distribution of dividends and the repayment of capital.

20
Profit and loss reserves

The profit and loss reserve comprises retained profits and losses for the current and prior periods.

21
Related party transactions
Remuneration of key management personnel

The remuneration of key management personnel is as follows.

2024
2023
£
£
Aggregate compensation
489,868
591,192
Transactions with related parties

During the year, remuneration was paid to close family members of the directors amounting to £47,450 (2023 - £36,548).

 

At the year end a balance of £2,172 (2023 - £2,172) was owed from a company in which a director has a controlling interest.

 

During the year, rental charges of £10,500 (2023 - £8,500) were paid to a director and £40,000 (2023 - £40,000) were paid to a company in which a director has a controlling interest.

 

During the year sales invoices of £nil (2023 - £162,000) were raised to a director.

 

The company has taken advantage of the exemption offered by FRS 102 from the requirement to disclose transactions with wholly owned group companies on the grounds that consolidated financial statements are prepared by the ultimate parent company.

L. REYNOLDS (BUILDING SYSTEMS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 18 -
22
Ultimate controlling party

The company is a wholly owned subsidiary of L Reynolds Holdings Limited, a company registered in England and Wales.

 

The registered office of L Reynolds Holdings Limited is the same as the company's registered office address given in the company information page of these financial statements.

 

Copies of the ultimate parent company's consolidated financial statements can be obtained from Companies House, Cardiff.

23
Cash generated from operations
2024
2023
£
£
Profit for the year after tax
1,517,887
2,610,244
Adjustments for:
Taxation charged
515,909
656,209
Finance costs
5,214
828
Investment income
(34,760)
(8,593)
Gain on disposal of tangible fixed assets
(18,399)
(19,241)
Depreciation and impairment of tangible fixed assets
86,311
54,011
Movements in working capital:
Decrease/(increase) in debtors
1,869,254
(383,402)
(Decrease)/increase in creditors
(562,179)
113,968
Cash generated from operations
3,379,237
3,024,024
24
Analysis of changes in net funds
1 June 2023
Cash flows
New finance leases
31 May 2024
£
£
£
£
Cash at bank and in hand
1,007,392
389,940
-
1,397,332
Obligations under finance leases
(3,713)
24,473
(45,000)
(24,240)
1,003,679
414,413
(45,000)
1,373,092
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