Company registration number 04009774 (England and Wales)
LLORET HOLDINGS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
LLORET HOLDINGS LIMITED
COMPANY INFORMATION
Directors
S J Sjoblom
D A Lovelock
R G Smith
Secretary
C L Young
Company number
04009774
Registered office
Lloret House
20 Ullswater Crescent
Coulsdon
Surrey
CR5 2HR
Auditor
Beavis Morgan Audit Limited
82 St John Street
London
EC1M 4JN
LLORET HOLDINGS LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Group profit and loss account
8
Group statement of comprehensive income
9
Group balance sheet
10
Company balance sheet
11
Group statement of changes in equity
12
Company statement of changes in equity
13
Group statement of cash flows
14
Notes to the financial statements
15 - 32
LLORET HOLDINGS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

The directors present the strategic report for the year ended 31 December 2023.

Review of the business

The group started 2023 with a strong secured order book which contributed to the growth in turnover compared to 2022.

 

Profit for the year was impacted by the administration of a large mechanical and electrical contractor during the year, as shown in note 3 to the financial statements. Strong management and robust procedures ensured that the impact of this to the business was limited and the business was able to recover quickly.

 

In order to maintain and increase our market share, the directors recognise that there must be continued development of the business outside of the traditional scope. The directors have identified the growth of its Converged Network Systems and Master Systems Integrator role as a key area for development over the coming years. During 2023 we have built on our previous successes in this area and have continued to secure more projects within this market. This now equates to circa 30% of our ongoing business.

 

Our order book includes significant projects for blue chip technology businesses which has led to increased interest in our services from similar businesses and from the contractors delivering these projects. These projects also offer ongoing service and maintenance opportunities which has continued to grow during the year.

 

The group moves forward into 2024 with a healthy secured order book and continues to exceed its business plan objectives.

 

From February 2024 all trading activities of the group have been moved into Lloret Control Systems Limited. This is a strategic decision to consolidate all activities into one company to reduce the administrative burden of maintaining two separate companies and for clients to see one Lloret rather than separate businesses.

Principal risks and uncertainties

The group's business arena incorporates commercial and high end residential property markets, schools, data centres, and process systems and therefore changes in the activity levels within these markets are likely to affect the results. Growth can be achieved by increasing market share at the expense of other competitors or expanding into other new markets; energy cost control now features as such an activity. The directors believe that the existing market is fiercely competitive and price is a very sensitive factor. As competition increases with price under pressure the directors continue to monitor cost levels to ensure an adequate return is received.

 

Financial instruments

The group's principal financial instruments comprise bank balances, bank facilities, trade creditors, trade debtors, and finance lease agreements.

 

Liquidity risk is managed by maintaining a balance between the continuity of funding and flexibility through the use of bank overdraft facilities at floating rates of interest and unsecured credit facilities. The group manages the liquidity risk by ensuring there are sufficient funds to meet the payment of liabilities as they fall due.

 

Trade debtors are managed in respect of credit and cash flow risk by having a broad customer base and the regular monitoring of amounts outstanding for both time and credit limits.

On behalf of the board

D A Lovelock
Director
19 September 2024
LLORET HOLDINGS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -

The directors present their annual report and the consolidated financial statements of Lloret Holdings Limited (the "company") and its subsidiary undertakings (the "group") for the year ended 31 December 2023.

Principal activities

The principal activity of the group continues to be the design, supply and maintenance of electronic control systems for use within the construction industry. The principal activity of the company is that of a holding company.

Results, contributions and dividends

The results for the year are set out on page 8.

Contributions were paid amounting to £775,000 to the Employee Ownership Trust.

 

No ordinary dividends were paid. 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:

S J Sjoblom
D A Lovelock
R G Smith
Research and development

The group has conducted systematic, extensive and eligible R&D overcoming significant technological uncertainty to develop new and innovative technology solutions for the instrumentation and controls industry.

Post reporting date events

Details of events after the reporting period are provided in note 27 to the financial statements.

Auditor

In accordance with the company's articles, a resolution proposing that Beavis Morgan Audit Limited be reappointed as auditor of the company will be put at a General Meeting.

Matters covered in the strategic report

The truegroup has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the group's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of information on the group's financial risk management objectives and policies, exposure to financial risks and future developments.

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 auditor of the company 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 auditor of the company is aware of that information.

LLORET HOLDINGS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
On behalf of the board
D A Lovelock
Director
19 September 2024
LLORET HOLDINGS LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -

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 group and company, and of the profit or loss of the group 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 group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

LLORET HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF LLORET HOLDINGS LIMITED
- 5 -
Opinion

We have audited the financial statements of Lloret Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023 which comprise the Group Profit And Loss Account, the Group Statement of Comprehensive Income, the Group Balance Sheet, the Company Balance Sheet, the Group Statement of Changes in Equity, the Company Statement of Changes in Equity, the Group Statement of Cash Flows 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 FRS 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 group and parent 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 group's and 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 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:

LLORET HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF LLORET HOLDINGS LIMITED
- 6 -
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 their 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, 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 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.

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.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

LLORET HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF LLORET HOLDINGS LIMITED
- 7 -
Extent to which the audit was considered capable of detecting irregularities, including fraud

Discussions with and enquiries of management and those charged with governance were held with a view to identifying those laws and regulations that could be expected to have a material impact on the financial statements. During the engagement team briefing, the outcomes of these discussions and enquiries were shared with the team, as well as consideration as to where and how fraud may occur in the group.

 

The following laws and regulations were identified as being of significance to the group:

 

 

 

Audit procedures undertaken in response to the potential risks relating to irregularities (which include fraud and non-compliance with laws and regulations) comprised of: inquiries of management and those charged with governance as to whether the group complies with such laws and regulations; enquiries with the same concerning any actual or potential litigation or claims; inspection of relevant legal correspondence; review of board minutes; testing the appropriateness of journal entries; and the performance of analytical review to identify unexpected movements in account balances which may be indicative of fraud.

 

No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity’s controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK).

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 parent 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 parent 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 parent company and the parent company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Richard Thacker (Senior Statutory Auditor)
For and on behalf of Beavis Morgan Audit Limited
19 September 2024
Chartered Accountants
Statutory Auditor
82 St John Street
London
EC1M 4JN
LLORET HOLDINGS LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
2023
2022
Notes
£
£
Turnover
4
16,556,753
14,666,813
Cost of sales
(11,981,985)
(10,557,954)
Gross profit
4,574,768
4,108,859
Administrative expenses
(3,264,913)
(3,202,612)
Other operating income
4
-
1,000
Operating profit before exceptional items and amortisation of goodwill
1,309,855
907,247
Exceptional item
3
(611,154)
-
0
Amortisation of goodwill
12
(325,817)
(325,817)
Operating profit after exceptional items and amortisation of goodwill
5
372,884
581,430
Interest receivable and similar income
4
6,122
343
Interest payable and similar expenses
9
(29,564)
(32,558)
Profit before taxation
349,442
549,215
Taxation
10
(35,014)
13,536
Profit for the financial year
314,428
562,751

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

LLORET HOLDINGS LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
2023
2022
£
£
Profit for the year
314,428
562,751
Other comprehensive income
-
-
Total comprehensive income for the year
314,428
562,751
Total comprehensive income for the year is all attributable to the owners of the parent company.
LLORET HOLDINGS LIMITED
GROUP BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Goodwill
12
1,954,902
2,280,719
Tangible assets
13
302,211
187,412
2,257,113
2,468,131
Current assets
Debtors
16
8,155,058
6,331,794
Cash at bank and in hand
554,919
1,095,057
8,709,977
7,426,851
Creditors: amounts falling due within one year
17
(6,299,736)
(4,720,793)
Net current assets
2,410,241
2,706,058
Total assets less current liabilities
4,667,354
5,174,189
Creditors: amounts falling due after more than one year
18
(118,223)
(192,500)
Provisions for liabilities
Deferred tax liability
21
30,265
2,251
(30,265)
(2,251)
Net assets
4,518,866
4,979,438
Capital and reserves
Called up share capital
23
21
21
Share premium account
5
5
Merger reserve
24
2,964,676
3,290,493
Profit and loss reserves
1,554,164
1,688,919
Total equity
4,518,866
4,979,438
The financial statements were approved by the board of directors and authorised for issue on 19 September 2024 and are signed on its behalf by:
19 September 2024
D A Lovelock
Director
LLORET HOLDINGS LIMITED
COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2023
31 December 2023
- 11 -
2023
2022
Notes
£
£
£
£
Fixed assets
Investments
14
54,100
54,100
Current assets
Debtors
16
60,005
215,931
Creditors: amounts falling due within one year
17
(19,074)
-
Net current assets
40,931
215,931
Net assets
95,031
270,031
Capital and reserves
Called up share capital
23
21
21
Share premium account
5
5
Profit and loss reserves
95,005
270,005
Total equity
95,031
270,031

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £600,000 (2022 - £nil).

The financial statements were approved by the board of directors and authorised for issue on 19 September 2024 and are signed on its behalf by:
19 September 2024
D A Lovelock
Director
Company registration number 04009774 (England and Wales)
LLORET HOLDINGS LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 12 -
Share capital
Share premium account
Merger reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 January 2022
21
5
3,616,310
1,475,351
5,091,687
Year ended 31 December 2022:
Profit and total comprehensive income
-
-
-
562,751
562,751
Contributions to EOT
11
-
-
-
(675,000)
(675,000)
Transfer of amortisation of goodwill
-
-
(325,817)
325,817
-
Balance at 31 December 2022
21
5
3,290,493
1,688,919
4,979,438
Year ended 31 December 2023:
Profit and total comprehensive income
-
-
-
314,428
314,428
Contributions to EOT
11
-
-
-
(775,000)
(775,000)
Transfer of amortisation of goodwill
-
-
(325,817)
325,817
-
Balance at 31 December 2023
21
5
2,964,676
1,554,164
4,518,866
LLORET HOLDINGS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 13 -
Share capital
Share premium account
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 January 2022
21
5
945,005
945,031
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
-
-
-
0
Contributions to EOT
11
-
-
(675,000)
(675,000)
Balance at 31 December 2022
21
5
270,005
270,031
Year ended 31 December 2023:
Profit and total comprehensive income for the year
-
-
600,000
600,000
Contributions to EOT
11
-
-
(775,000)
(775,000)
Balance at 31 December 2023
21
5
95,005
95,031
LLORET HOLDINGS LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 14 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
30
360,382
744,667
Interest paid
(29,564)
(32,558)
Income taxes refunded
145,000
215,935
Net cash inflow from operating activities
475,818
928,044
Investing activities
Purchase of tangible fixed assets
(10,548)
(25,595)
Proceeds from disposal of tangible fixed assets
38,040
44,250
Interest received
6,122
343
Net cash generated from investing activities
33,614
18,998
Financing activities
Repayment of bank loans
(210,000)
(210,000)
Payment of finance leases obligations
(64,570)
(30,211)
Contributions paid to Employee Ownership Trust
(775,000)
(675,000)
Net cash used in financing activities
(1,049,570)
(915,211)
Net (decrease)/increase in cash and cash equivalents
(540,138)
31,831
Cash and cash equivalents at beginning of year
1,095,057
1,063,226
Cash and cash equivalents at end of year
554,919
1,095,057
LLORET HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 15 -
1
Accounting policies
Company information

Lloret Holdings Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Lloret House, 20 Ullswater Crescent, Coulsdon, Surrey, CR5 2HR.

 

The group consists of Lloret Holdings Limited and all of its subsidiaries.

1.1
Accounting convention

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

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

The financial statements have been prepared on the historical cost convention. The principal accounting policies adopted are set out below.

The 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 for parent company information presented within the consolidated financial statements:

 

1.2
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Lloret Holdings Limited together with all entities controlled by the parent company (its subsidiaries).

 

All financial statements are made up to 31 December 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

1.3
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group 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.

1.4
Research and development expenditure

Research and development expenditure is recognised in profit or loss in the year in which it is incurred.

LLORET HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 16 -
1.5
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is nine years.

 

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

1.6
Tangible fixed assets

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

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

Leasehold improvements
Straight line over the term of the lease
Plant and machinery
15% straight line
Fixtures, fittings & equipment
25% straight line
Motor vehicles
25% straight line

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 recognised in the profit and loss account.

1.7
Fixed asset investments

In the parent company financial statements, investments in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

Where the Companies Act 2006 conditions for merger relief are met, cost is the nominal value of shares issued. On consolidation, differences between the fair value and nominal value of equity consideration are taken to the merger reserve.

1.8
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the group estimates the recoverable amount of the cash-generating unit to which the asset belongs.

LLORET HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 17 -

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.9
Long term contracts and revenue recognition

Revenue comprises amounts receivable under customer contracts, net of value added tax.

 

Where the outcome of a customer contract can be estimated reliably, revenue and costs are recognised by reference to the stage of completion of the contract activity at the reporting end date. Variations in contract work, claims and incentive payments are included to the extent that the amount can be measured reliably and its receipt is considered probable.

 

When it is probable that total contract costs will exceed total contract turnover, the expected loss is recognised as an expense immediately.

 

Where the outcome of a contract cannot be estimated reliably, contract revenue is recognised to the extent of contract costs incurred where it is probable that they will be recoverable. Contract costs are recognised as expenses in the period in which they are incurred. When costs incurred in securing a contract are recognised as an expense in the period in which they are incurred, they are not included in contract costs if the contract is obtained in a subsequent period.

The “percentage of completion method” is used to determine the appropriate amount to recognise in a given period. The stage of completion is assessed on the basis of work performed. Costs incurred in the year in connection with future activity on a contract are excluded from contract costs in determining the stage of completion. These costs are presented as stocks, prepayments or other assets depending on their nature, and provided it is probable they will be recovered.

1.10
Cash and cash equivalents

Cash at bank and in hand are basic financial assets and include cash in hand, deposits held at call with banks.

1.11
Financial instruments

The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ of FRS 102 to all of its financial instruments.

 

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

 

Financial assets and liabilities are offset and 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.

LLORET HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 18 -
Basic financial assets

Basic financial assets, which include trade and other 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.

Impairment of financial assets

Financial assets 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 group 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.

Basic financial liabilities

Basic financial liabilities, including trade and other creditors, bank loans and finance lease liabilities 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.

 

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 group's contractual obligations expire or are discharged or cancelled.

1.12
Equity instruments

Equity instruments issued by the group entities are recorded at the proceeds received, net of transaction costs. Dividends and distributions payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the relevant entity.

1.13
Taxation

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

LLORET HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 19 -
Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’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 enacted or substantially enacted 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. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

Research and Development

Tax credits in relation to research and development expenditure are included within cost of sales. Tax credits are recognised when the value of relief can be estimated reliably.

1.14
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense.

 

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

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.15
Retirement benefits

The group operates a defined contribution pension scheme and the pension charge represents the amounts payable by the company to the fund in respect of the year.

1.16
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 asset's 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 statement of income so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

LLORET HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 20 -
1.17
Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

 

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

1.18
Foreign exchange

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.

2
Judgements and key sources of estimation uncertainty

In the application of the group’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.

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Impairment of goodwill

Goodwill relates to the acquisition of Lloret Maintenance Limited and is measured at cost less accumulated amortisation. The impairment of goodwill requires judgement which includes evaluating the recoverable amount of the cash-generating unit. The trade of Lloret Maintenance Limited has been merged into Lloret Control Systems Limited after the reporting period (see note 27).

 

This merger does not affect the cash-generating unit of Lloret Maintenance Limited to which the goodwill is allocated. The goodwill is judged to not be impaired on the basis of future cash generation of the cash generating unit, with the recoverable amount judged to be greater than the carrying amount.

LLORET HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
2
Judgements and key sources of estimation uncertainty
(Continued)
- 21 -
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.

Estimated useful lives of tangible and intangible assets

Estimation is required in determining the useful lives of such assets and their residual values. See notes 12 and {note.note26} for the carrying amounts of these assets.

Revenue recognition

Estimation is required in calculating the stage of completion of contracts, in order to determine the amount of revenue which can be recognised for the provision of professional services. Carrying amounts held in respect of long term contracts at the balance sheet date are £3,674,886 (2022: £2,640,596) of deferred income and accrued costs and £571,426 (2022: £198,802) of amounts recoverable on long term contracts.

Bad and doubtful debts

Provisions are made of those debts considered by the directors to be doubtful. The debts considered to be irrevocably bad are written off. See note 16 for the carrying amounts of trade debtors.

3
Exceptional item
2023
2022
£
£
Expenditure
Debts provided for as a result of customer administration
611,154
-

During the year a customer entered administration. The expense above relates to a provision against trade debtors outstanding at year end from this customer.

4
Turnover and other revenue

An analysis of the group's turnover, all of which comprises contract revenue, is as follows:

2023
2022
£
£
Turnover analysed by class of business
Design and supply
14,642,214
12,052,479
Maintenance
1,914,539
2,614,334
16,556,753
14,666,813
2023
2022
£
£
Other significant revenue
Interest income
6,122
343
Coronavirus job retention scheme grant
-
1,000

All turnover is generated in the United Kingdom.

LLORET HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 22 -
5
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange losses
183
6,384
Research and development tax credits
(95,384)
(206,000)
Qualifying research and development expenditure
1,436,577
1,475,550
Government grants
-
(1,000)
Depreciation of owned tangible fixed assets
61,100
56,580
Depreciation of tangible fixed assets held under finance leases
50,052
71,966
Profit on disposal of tangible fixed assets
(26,954)
(44,250)
Amortisation of intangible assets
325,817
325,817
Operating lease charges
144,043
128,543
6
Employees

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

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
Directors
3
3
-
-
Administration
9
8
-
-
Design, production and project management
50
43
-
-
Maintenance
14
16
-
-
Total
76
70
-
0
-
0

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
4,286,879
3,969,458
-
0
-
0
Social security costs
500,432
482,902
-
-
Pension costs
186,382
166,481
-
0
-
0
4,973,693
4,618,841
-
0
-
0
7
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
35,000
33,000
LLORET HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 23 -
8
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
182,400
155,879
Company pension contributions to defined contribution schemes
7,029
44,770
189,429
200,649

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2022 - 3).

9
Interest payable and similar expenses
2023
2022
£
£
Interest on bank overdrafts and loans
19,453
21,241
Interest on finance leases and hire purchase contracts
10,108
11,131
Other interest
3
186
Total finance costs
29,564
32,558
10
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
7,000
-
0
Deferred tax
Origination and reversal of timing differences
44,102
(5,670)
Changes in tax rates
-
0
(1,944)
Adjustment in respect of prior periods
(16,088)
(5,922)
Total deferred tax
28,014
(13,536)
Total tax charge/(credit)
35,014
(13,536)
LLORET HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
10
Taxation
(Continued)
- 24 -

The charge for the year can be reconciled to the statement of income as follows:

2023
2022
£
£
Profit before taxation
349,442
549,215
Expected tax charge based on the standard rate of corporation tax in the UK of 23.52% (2022: 19.00%)
82,189
104,351
Tax effect of expenses that are not deductible in determining taxable profit
26,411
18,284
Depreciation on assets not qualifying for tax allowances
9,668
6,722
Amortisation on assets not qualifying for tax allowances
76,633
61,905
Research and development tax credit
(22,434)
(39,140)
Other permanent differences
1,347
142
Deferred tax adjustments in respect of prior years
(16,088)
(5,922)
Effect of difference in deferred tax rate
2,591
(3,304)
Additional deduction for R&D expenditure
(327,245)
(359,290)
Surrender of losses for R&D tax credit
201,942
202,716
Taxation charge/(credit)
35,014
(13,536)

In 2023 research and development tax credits of £95,384 (2022 - £206,000) have been offset against the gross research and development costs incurred within cost of sales.

11
Contributions
2023
2022
Recognised as distributions to equity holders:
£
£
Contributions paid to Lloret Group EOT
775,000
675,000
12
Intangible fixed assets
Group
Goodwill
£
Cost
At 1 January 2023 and 31 December 2023
2,932,353
Amortisation and impairment
At 1 January 2023
651,634
Amortisation charged for the year
325,817
At 31 December 2023
977,451
LLORET HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
12
Intangible fixed assets
(Continued)
- 25 -
Carrying amount
At 31 December 2023
1,954,902
At 31 December 2022
2,280,719
The company had no intangible fixed assets at 31 December 2023 or 31 December 2022.

Goodwill relates entirely to the purchase of the subsidiary, Lloret Maintenance Limited. The remaining amortisation period is 6 years.

13
Tangible fixed assets
Group
Leasehold improvements
Plant and machinery
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 January 2023
411,061
37,891
207,301
503,273
1,159,526
Additions
-
0
-
0
10,548
226,489
237,037
Disposals
-
0
-
0
-
0
(152,025)
(152,025)
At 31 December 2023
411,061
37,891
217,849
577,737
1,244,538
Depreciation and impairment
At 1 January 2023
280,916
27,942
193,195
470,061
972,114
Depreciation charged in the year
41,106
2,778
8,073
59,195
111,152
Eliminated in respect of disposals
-
0
-
0
-
0
(140,939)
(140,939)
At 31 December 2023
322,022
30,720
201,268
388,317
942,327
Carrying amount
At 31 December 2023
89,039
7,171
16,581
189,420
302,211
At 31 December 2022
130,145
9,949
14,106
33,212
187,412
The company had no tangible fixed assets at 31 December 2023 or 31 December 2022.

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

Group
2023
2022
£
£
Motor vehicles
187,564
22,085
187,564
22,085
LLORET HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 26 -
14
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
15
-
0
-
0
54,100
54,100
Movements in fixed asset investments
Company
Shares
£
Cost or valuation
At 1 January 2023 and 31 December 2023
54,100
Carrying amount
At 31 December 2023
54,100
At 31 December 2022
54,100
15
Subsidiaries

Details of the company's subsidiaries at 31 December 2023 are as follows:

Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
Lloret Control Systems Limited
Lloret House, 20 Ullswater Crescent, Coulsdon, Surrey, England, CR5 2HR
Design and supply of electronic control systems
Ordinary
100.00
Lloret Maintenance Limited
Lloret House, 20 Ullswater Crescent, Coulsdon, Surrey, England, CR5 2HR
Maintenance of electronic control systems
Ordinary
100.00
16
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
7,139,337
5,580,213
-
0
-
0
Amounts recoverable under contracts
571,426
198,802
-
0
-
0
Corporation tax recoverable
149,384
206,000
-
0
-
0
Amounts due from Employee Ownership Trust
60,005
60,005
60,005
60,005
Amounts due from group undertakings
-
0
-
0
-
0
155,926
Amounts due from related parties
62,157
105,674
-
0
-
0
Other debtors
15,337
54,300
-
0
-
0
Prepayments
156,808
126,196
-
0
-
0
8,154,454
6,331,190
60,005
215,931
Deferred tax asset (note 21)
604
604
-
0
-
0
8,155,058
6,331,794
60,005
215,931
LLORET HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 27 -
17
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans
19
192,500
210,000
-
0
-
0
Obligations under finance leases
20
51,408
7,712
-
0
-
0
Trade creditors
2,114,912
1,436,653
-
0
-
0
Amounts owed to group undertakings
-
0
-
0
19,074
-
0
Corporation tax payable
189
189
-
0
-
0
Other taxation and social security
184,944
232,913
-
-
Other creditors
472,337
17,983
-
0
-
0
Accruals and deferred income
3,283,446
2,815,343
-
0
-
0
6,299,736
4,720,793
19,074
-
0

Accruals and deferred income includes £3,674,886 (2022: £2,640,596) arising from the accounting for long term contracts.

18
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans
19
-
0
192,500
-
0
-
0
Obligations under finance leases
20
118,223
-
0
-
0
-
0
118,223
192,500
-
-
19
Loans and overdrafts
Group
Company
2023
2022
2023
2022
£
£
£
£
Bank loans
192,500
402,500
-
0
-
0
Payable within one year
192,500
210,000
-
0
-
0
Payable after one year
-
0
192,500
-
0
-
0

The bank loan is a Coronavirus Business Interruption Loan that is 80% backed by the government. The amounts is repayable by monthly instalments and matures in full on 25 November 2024. It has an interest rate of base rate plus 2.34%.

 

The directors, S J Sjoblom and R G Smith, have given personal guarantees of £100,000 each in support of a bank overdraft facility. The bank overdraft facility, which was undrawn at 31 December 2023 and 31 December 2022, is secured by a debenture on the company's assets.

LLORET HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 28 -
20
Finance lease obligations
Group
Company
2023
2022
2023
2022
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
51,408
7,712
-
0
-
0
In two to five years
118,223
-
0
-
0
-
0
169,631
7,712
-
-

Finance lease payments represent rentals payable by the group 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 4 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

21
Deferred taxation

Deferred tax assets and liabilities are offset where the group or company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes. Deferred tax has been calculated using a rate of 25% (2022: 25%).

Liabilities
Liabilities
Assets
Assets
2023
2022
2023
2022
Group
£
£
£
£
Accelerated capital allowances
54,218
10,117
(5,521)
(5,521)
Tax losses
(23,953)
(7,866)
6,125
6,125
30,265
2,251
604
604
The company has no deferred tax assets or liabilities.
Group
2023
Movements in the year:
£
Liability at 1 January 2023
1,647
Charge to profit or loss
28,014
Liability at 31 December 2023
29,661

The deferred tax balances set out above are expected to reverse within 12 months and relates to accelerated capital allowances netted off with tax losses carried forward that are expected to be utilised in the same period.

LLORET HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 29 -
22
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to statement of income in respect of defined contribution schemes
186,382
166,481

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

23
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary Shares of 0.1p each
20,743
20,743
21
21
24
Merger reserve
2023
2022
Group
£
£
At the beginning of the year
3,290,493
3,616,310
Transfers
(325,817)
(325,817)
At the end of the year
2,964,676
3,290,493

The merger reserve was created on the acquisition of the non-controlling interest in Lloret Control Systems Limited and the acquisition of the entire share capital of Lloret Maintenance Limited. Amortisation on the goodwill created on acquisition is transferred from the profit and loss reserves to the merger reserve.

25
Financial commitments, guarantees and contingent liabilities

The company is party to a cross guarantee and debenture along with subsidiaries Lloret Maintenance Limited and Lloret Control Systems Limited over loan and overdraft facilities.

 

The amount guaranteed by the company under this agreement at 31 December 2023 was £192,500 (2022: £402,500) which is included as a liability in the group balance sheet and which is secured by fixed and floating charges over the assets of the company and its subsidiary companies as per a debenture dated 14 September 2015.

LLORET HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 30 -
26
Operating lease commitments
Lessee

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Group
Company
2023
2022
2023
2022
£
£
£
£
Within one year
145,607
126,588
-
-
Between two and five years
176,026
252,627
-
-
321,633
379,215
-
-
27
Events after the reporting date

Subsequent to the year end, the group has merged the operations of Lloret Control Systems Limited and Lloret Maintenance Limited. From February 2024, post the balance sheet date, there has been a systematic transfer of all ongoing and new projects from Lloret Maintenance Limited to Lloret Control Systems Limited. This is part of a strategic move intended to consolidate the project activities under Lloret Control Systems Limited.

 

This merger has enabled management to reduce the administrative burden of maintaining two separate entities and to present a unified brand identity as "Lloret" to stakeholders. This restructuring is material to operational and financial future, with its effects to be reflected in subsequent financial statements.

 

No adjustments are required to the group or parent financial statements as a consequence of the decision to merge operations.

LLORET HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 31 -
28
Related party transactions
Related party transactions and balances

Lloret Fire Solutions Limited

During the year the group charged management fees of £120,000 (2022: £120,000) to Lloret Fire Solutions Limited ("LFSL"), made sales of £152,984 (2022: £266,535) to LFSL and made purchases of £209,106 (2022: £125,381) from LFSL.

 

At the balance sheet date trade debtors included £46,494 (2022: £186,791) and amounts owed by related parties included £62,157 (2022: £105,674) owed by LFSL. Trade creditors included £12,000 (2022: £11,552) and other creditors included £19,935 (2022: £17,983) owed to LFSL.

 

LFSL is related by virtue of common directorship.

 

Lloret EOT Limited

At the balance sheet date debtors included £60,005 (2022: £60,005) owed by Lloret EOT Limited.

 

Lloret EOT Limited is related by virtue of being the trustee of Lloret Holdings Limited's controlling party.

29
Controlling party

The immediate controlling party is Lloret Group Employee Ownership Trust, of which its sole trustee is Lloret EOT Limited, a company limited by guarantee and registered in England and Wales.

 

There is no one ultimate controlling party.

30
Cash generated from group operations
2023
2022
£
£
Profit for the year after tax
314,428
562,751
Adjustments for:
Taxation charged/(credited)
35,014
(13,536)
Interest payable
29,564
32,558
R&D credited
(95,384)
(206,000)
Interest receivable
(6,122)
(343)
Profit on disposal of tangible fixed assets
(26,954)
(44,250)
Amortisation of intangible assets
325,817
325,817
Depreciation of tangible fixed assets
111,152
128,546
Movements in working capital:
Increase in debtors
(1,879,880)
(571,863)
Increase in creditors
1,552,747
530,987
Cash generated from operations
360,382
744,667
LLORET HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 32 -
31
Analysis of changes in net funds - group
1 January 2023
Cash flows
New finance leases
31 December 2023
£
£
£
£
Cash at bank and in hand
1,095,057
(540,138)
-
554,919
Borrowings excluding overdrafts
(402,500)
210,000
-
(192,500)
Obligations under finance leases
(7,712)
64,570
(226,489)
(169,631)
684,845
(265,568)
(226,489)
192,788
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