Company registration number 05393425 (England and Wales)
Lyburn Supplies Limited
financial statements
For the year ended 31 December 2023
Lyburn Supplies Limited
Contents
Page
Balance sheet
1
Notes to the financial statements
2 - 9
Lyburn Supplies Limited
Balance sheet
As at 31 December 2023
31 December 2023
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Intangible assets
3
36,713
44,867
Tangible assets
4
472,254
254,692
508,967
299,559
Current assets
Stocks
801,081
961,245
Debtors
5
3,637,629
2,578,563
Cash at bank and in hand
168,254
163,343
4,606,964
3,703,151
Creditors: amounts falling due within one year
6
(4,055,185)
(3,072,906)
Net current assets
551,779
630,245
Total assets less current liabilities
1,060,746
929,804
Creditors: amounts falling due after more than one year
7
(286,631)
(192,884)
Provisions for liabilities
(91,500)
(56,630)
Net assets
682,615
680,290
Capital and reserves
Called up share capital
75
75
Capital redemption reserve
75
75
Profit and loss reserves
682,465
680,140
Total equity
682,615
680,290
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The director of the company has elected not to include a copy of the profit and loss account within the financial statements.true
The financial statements were approved and signed by the director and authorised for issue on 13 September 2024
Mr K J Willis
Director
Company registration number 05393425 (England and Wales)
Lyburn Supplies Limited
Notes to the financial statements
For the year ended 31 December 2023
- 2 -
1
Accounting policies
Company information
Lyburn Supplies Limited is a private company limited by shares incorporated in England and Wales. The registered office is The Glades, Festival Way, Festival Park, Stoke-on-Trent, Staffordshire, ST1 5SQ.
The business trades from Units 18-20 Parkhouse Industrial Estate, Rosevale Road, Newcastle under Lyme, Staffordshire, ST5 7EF.
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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
Related party exemption
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with other group entities where the relationship is one of being wholly owned.
1.2
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on despatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
1.3
Intangible fixed assets - goodwill
Goodwill, being the amount paid in connection with the acquisition of a business in 2006, is being amortised evenly over its estimated useful life of twenty years.
1.4
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.
Lyburn Supplies Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
1
Accounting policies
(Continued)
- 3 -
Amortisation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:
Software
15% reducing balance
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.
1.5
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:
Plant and equipment
15% on reducing balance
Fixtures and fittings
25% on cost and 25% on reducing balance
Computer equipment
25% on reducing balance and 15% on reducing balance
Motor vehicles
25% on reducing balance and 20% on cost
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.6
Impairment of fixed assets
At each reporting period end date, the company 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).
1.7
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.8
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
Lyburn Supplies Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
1
Accounting policies
(Continued)
- 4 -
1.9
Financial instruments
Basic financial assets and liabilities are initially measured at transaction price, unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of future cash flows discounted at a market rate of interest. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in profit or loss.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances and amounts due from fellow group undertakings, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans and loans from fellow group companies, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
1.10
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.11
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. 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 company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Lyburn Supplies Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
1
Accounting policies
(Continued)
- 5 -
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has 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.
1.12
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
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.
1.13
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.14
Share-based payments
Equity-settled share-based payments are measured at fair value at the date of grant by reference to the fair value of the equity instruments granted using the black scholes model. The fair value determined at the grant date is expensed on a straight-line basis over the vesting period, based on the estimate of shares that will eventually vest. A corresponding adjustment is made to equity.
1.15
Leases
Assets, obtained under hire purchase contracts and finance leases, are capitalised as tangible fixed assets. Assets acquired under finance leases are depreciated over the shorter of the lease term and their useful lives. Assets acquired under hire purchase contracts are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the company. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to the profit and loss account so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.
Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged to profit and loss account on a straight-line basis.
Lyburn Supplies Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
1
Accounting policies
(Continued)
- 6 -
1.16
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
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Total
20
19
3
Intangible fixed assets
Goodwill
Software
Total
£
£
£
Cost
At 1 January 2023
190,000
2,387
192,387
Additions
1,950
1,950
At 31 December 2023
190,000
4,337
194,337
Amortisation and impairment
At 1 January 2023
147,250
270
147,520
Amortisation charged for the year
9,504
600
10,104
At 31 December 2023
156,754
870
157,624
Carrying amount
At 31 December 2023
33,246
3,467
36,713
At 31 December 2022
42,750
2,117
44,867
Lyburn Supplies Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
- 7 -
4
Tangible fixed assets
Plant and equipment
Fixtures and fittings
Computer equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 January 2023
32,200
64,359
16,129
435,428
548,116
Additions
1,855
307,668
309,523
Disposals
(16,500)
(59,949)
(61,000)
(137,449)
At 31 December 2023
15,700
6,265
16,129
682,096
720,190
Depreciation and impairment
At 1 January 2023
23,391
55,862
11,187
202,984
293,424
Depreciation charged in the year
921
1,366
1,235
73,876
77,398
Eliminated in respect of disposals
(13,832)
(55,856)
(53,198)
(122,886)
At 31 December 2023
10,480
1,372
12,422
223,662
247,936
Carrying amount
At 31 December 2023
5,220
4,893
3,707
458,434
472,254
At 31 December 2022
8,809
8,497
4,942
232,444
254,692
5
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
2,771,589
2,404,124
Amounts owed by group undertakings
540,478
Other debtors
325,562
174,439
3,637,629
2,578,563
6
Creditors: amounts falling due within one year
2023
2022
£
£
Bank loans
62,881
62,750
Trade creditors
2,325,732
2,326,812
Amounts owed to group undertakings
120,162
964
Taxation and social security
222,034
303,640
Other creditors
1,324,376
378,740
4,055,185
3,072,906
Lyburn Supplies Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
- 8 -
7
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Bank loans and overdrafts
72,720
135,729
Obligations under finance leases
213,911
57,155
286,631
192,884
8
Security
The loans are secured by way of an all assets debenture containing fixed and floating charges and also a negative pledge.
Amounts due under hire purchase contracts of £275,127 (2022 - £72,269) are secured against the assets which they relate to.
The invoice finance facility is secured by way of full title guarantee, and as continuing security for the payment of the debt.
9
Share-based payment transactions
Liabilities and expenses
The parent company of Lyburn Supplies Limited operates a share based compensation plan. The fair value of employee services received in exchange for the grant of options is recognised as an expense in the financial statements of Lyburn Supplies Limited rather than the parent company, where the scheme is in place, due to employees holding share options being employees of Lyburn Supplies Limited and not the parent company.
The total to be expensed over the vesting period is determined by reference to the fair value of options granted. Non market vesting conditions are included in the assumptions about the number of options that are expected to become exercisable. The proceeds received net of any attributable transaction costs are credited to share capital (nominal value) and share premium in the parent company when the options are exercised.
10
Audit report information
As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:
The auditor's report was unqualified.
Senior Statutory Auditor:
Stacey Parr FCCA
Statutory Auditor:
DJH Audit Limited
Date of audit report:
16 September 2024
11
Financial commitments, guarantees and contingent liabilities
The company has given unlimited guarantees, secured on the company's assets, as security for the borrowings of fellow group undertakings. The amount guaranteed at the year end was £6,056,881.
Lyburn Supplies Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
- 9 -
12
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2023
2022
£
£
29,797
40,071
13
Events after the reporting date
During February 2024, the company signed a deed of assignment of leasehold property and took on the related financial commitment. The commitment relates to the property in which the company operates from. The residual lease commitment from the date of signing is less than five years.
14
Parent company
The parent company of Lyburn Supplies Limited KJ Willis Group Limited is a private company limited by shares incorporated in England and Wales. The registered office is The Glades, Festival Way, Festival Park, Stoke-on-Trent, Staffordshire, ST1 5SQ.