The directors present the strategic report for the year ended 31 December 2023.
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.
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
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.
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.
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
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.
Details of events after the reporting period are provided in note 27 to the financial statements.
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.
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).
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:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
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:
adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent company financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
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.
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.
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:
Those laws and regulations considered to have a direct effect on the financial statements include UK financial reporting standards, company law, tax and pensions legislation.
Those laws and regulations for which non-compliance may be fundamental to the operating aspects of the business and therefore may have a material effect on the financial statements include environmental regulations and health and safety legislation.
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.
The group profit and loss account has been prepared on the basis that all operations are continuing operations.
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).
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.
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:
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: The disclosure requirements of paragraphs 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b), 11.48(c), 12.26, 12.27, 12.29(a), 12.29(b), and 12.29A;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
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.
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.
Research and development expenditure is recognised in profit or loss in the year in which it is incurred.
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.
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.
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.
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.
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.
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.
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.
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.
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, 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.
Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.
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.
The tax expense represents the sum of the tax currently payable and deferred 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 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.
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.
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.
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.
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.
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.
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.
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
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.
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.
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.
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.
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.
During the year a customer entered administration. The expense above relates to a provision against trade debtors outstanding at year end from this customer.
An analysis of the group's turnover, all of which comprises contract revenue, is as follows:
All turnover is generated in the United Kingdom.
The average monthly number of persons (including directors) employed by the group during the year was:
Their aggregate remuneration comprised:
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2022 - 3).
The charge for the year can be reconciled to the statement of income as follows:
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.
Goodwill relates entirely to the purchase of the subsidiary, Lloret Maintenance Limited. The remaining amortisation period is 6 years.
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:
Details of the company's subsidiaries at 31 December 2023 are as follows:
Accruals and deferred income includes £3,674,886 (2022: £2,640,596) arising from the accounting for long term contracts.
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.
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.
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%).
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.
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.
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.
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.
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:
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 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.