REGISTERED NUMBER: 05563831 (England and Wales) |
Group Strategic Report, Report of the Directors and |
Consolidated Financial Statements for the Year Ended 31 December 2023 |
for |
Lebus Upholstery Limited |
REGISTERED NUMBER: 05563831 (England and Wales) |
Group Strategic Report, Report of the Directors and |
Consolidated Financial Statements for the Year Ended 31 December 2023 |
for |
Lebus Upholstery Limited |
Lebus Upholstery Limited (Registered number: 05563831) |
Contents of the Consolidated Financial Statements |
for the Year Ended 31 December 2023 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 3 |
Report of the Independent Auditors | 5 |
Consolidated Income Statement | 9 |
Consolidated Other Comprehensive Income | 10 |
Consolidated Balance Sheet | 11 |
Company Balance Sheet | 12 |
Consolidated Statement of Changes in Equity | 13 |
Company Statement of Changes in Equity | 14 |
Consolidated Cash Flow Statement | 15 |
Notes to the Consolidated Cash Flow Statement | 16 |
Notes to the Consolidated Financial Statements | 18 |
Lebus Upholstery Limited |
Company Information |
for the Year Ended 31 December 2023 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
117 - 119 Cleethorpe Road |
Grimsby |
North East Lincs |
DN31 3ET |
Lebus Upholstery Limited (Registered number: 05563831) |
Group Strategic Report |
for the Year Ended 31 December 2023 |
Principal Risks and Uncertainties |
The Directors consider the principal risks to the business relate to the general economic environment and impact on consumer confidence. We rely on the actions of our customers to drive sales to the end consumer and position our customer and product offer accordingly. |
Whilst BoE interest rates remain high, we believe we can continue to service debt interest. Our objective is to reduce debt. |
Exchange rate risk is managed in the medium term by arranging suitable foreign exchange contracts, at appropriate rates to preserve or improve realised sales net values and margins. |
Key Performance Indicators |
£ | 2023 | 2022 | % change |
Turnover | 47,463 | 45,855 | +3.5 |
Margin | 14,670 | 12,125 | +21.0 |
Margin % | 30.9 | 26.4 |
Pre Tax Profit | 2,032 | 805 | +152.4 |
A strong orderbook, a stabilisation of supplier prices and improved efficiencies meant an increase in turnover to £47.5m (2022 : £45.9m), with margin percentage increasing to 30.9% (2022 : 26.4%). |
Employees |
The Gender pay information is up to date on the company's website and continues to show a negative pay gap, males to females. This is primarily as males are employed in more senior positions. The company recruits on ability irrespective of gender. |
Employee Engagement |
Communication with employees principally takes place via regular briefings of key information and these are tailored by local management to suit departmental issues. The employees are also represented by Employee Owned Trust Committee. Employees also share in the performance of the business via a profit related bonus scheme. |
Disabled Employees |
Disabled persons, whether registered or not, are considered for employment, training, career development and promotion on the basis of their individual aptitude and abilities. Furthermore, where an employee becomes disabled whilst in our employment, every effort is made to ensure continuing employment. |
Environment |
Whilst the Company does not have a formal Environmental Policy, the management team do focus on the impact of operations. Packaging materials are segregated and recycled where possible. The company also benefits from Solar energy generation. All mains grid electricity is supplied from renewable sources. |
Waste timber is used for factory heating and is regulated with and complaint to, the local authority regulations. |
ON BEHALF OF THE BOARD: |
Lebus Upholstery Limited (Registered number: 05563831) |
Report of the Directors |
for the Year Ended 31 December 2023 |
The directors present their report with the financial statements of the company and the group for the year ended 31 December 2023. |
PRINCIPAL ACTIVITY |
The principal activity of the group in the year under review was that of the manufacture of upholstered furniture for distribution to retail outlets in the UK and Ireland. |
DIVIDENDS |
No dividends will be distributed for the year ended 31 December 2023. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 January 2023 to the date of this report. |
Other changes in directors holding office are as follows: |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Group Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. Refer to the Group Strategic Report for disclosures relating to employees engagement and environmental responsibilities. |
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to: |
- select suitable accounting policies and then apply them consistently; |
- make judgements and accounting estimates that are reasonable and prudent; |
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
Lebus Upholstery Limited (Registered number: 05563831) |
Report of the Directors |
for the Year Ended 31 December 2023 |
AUDITORS |
The auditors, Haines Watts, Chartered Accountants, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
Report of the Independent Auditors to the Members of |
Lebus Upholstery Limited |
Opinion |
We have audited the financial statements of Lebus Upholstery Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
In our opinion the financial statements: |
- | give a true and fair view of the state of the group's and of the parent company affairs as at 31 December 2023 and of the group's profit for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
Conclusions relating to going concern |
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
Other information |
The director is responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the 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 the audit: |
- | the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
Report of the Independent Auditors to the Members of |
Lebus Upholstery Limited |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the parent company financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page three, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
In preparing the financial statements, the directors are responsible for assessing the group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so. |
Report of the Independent Auditors to the Members of |
Lebus Upholstery Limited |
Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
Through discussion with management and those charged with governance we gained an understanding of the legal and regulatory framework applicable to the entity and the industry in which it operates, and considered the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud. During the engagement team briefing we communicated the identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit. |
We focused on laws and regulations that could give rise to a material misstatement in the financial statements, including, but not limited to, UK GAAP (FRS102), the Companies Act 2006 and tax legislations. We assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items. |
We evaluated management's incentives and opportunities for fraudulent manipulations of the financial statements (including risk of override of controls) and determined that the principal risks were related to management bias in accounting estimates. |
Audit procedures undertaken in response to the potential risk relating to irregularities (which include fraud and non-compliance with laws and regulations) comprised of: |
- enquiries of management and those charged with governance as to whether the entity complies with such laws and regulations; |
- enquiries with the same concerning any actual or potential litigation claims; |
- reviewed risk of management override; |
- review of journal entries posted with unusual account combinations or posted by senior management; |
- reviewing accounting estimates for bias; |
- performance of analytical review to identify unexpected movements in account balances which may be indicative of fraud; |
- agreeing financial statement disclosures to underlying supporting documentation. |
The likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, |
the effectiveness of the entity's controls, 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 for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
Report of the Independent Auditors to the Members of |
Lebus Upholstery Limited |
Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
for and on behalf of |
117 - 119 Cleethorpe Road |
Grimsby |
North East Lincs |
DN31 3ET |
Lebus Upholstery Limited (Registered number: 05563831) |
Consolidated Income Statement |
for the Year Ended 31 December 2023 |
31.12.23 | 31.12.22 |
Notes | £ | £ | £ | £ |
TURNOVER | 47,463,489 | 45,854,809 |
Cost of sales | 32,793,725 | 33,730,090 |
GROSS PROFIT | 14,669,764 | 12,124,719 |
Distribution costs | 2,642,666 | 2,146,969 |
Administrative expenses | 9,753,746 | 9,074,200 |
12,396,412 | 11,221,169 |
2,273,352 | 903,550 |
Other operating income | 133,029 | 138,010 |
OPERATING PROFIT | 4 | 2,406,381 | 1,041,560 |
Interest receivable and similar income | - | 472 |
2,406,381 | 1,042,032 |
Interest payable and similar expenses | 6 | 374,155 | 237,080 |
PROFIT BEFORE TAXATION | 2,032,226 | 804,952 |
Tax on profit | 7 | 279,755 | 125,893 |
PROFIT FOR THE FINANCIAL YEAR |
Profit attributable to: |
Owners of the parent | 1,752,471 | 679,059 |
Lebus Upholstery Limited (Registered number: 05563831) |
Consolidated Other Comprehensive Income |
for the Year Ended 31 December 2023 |
31.12.23 | 31.12.22 |
Notes | £ | £ |
PROFIT FOR THE YEAR | 1,752,471 | 679,059 |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
1,752,471 |
679,059 |
Total comprehensive income attributable to: |
Owners of the parent | 1,752,471 | 679,059 |
Lebus Upholstery Limited (Registered number: 05563831) |
Consolidated Balance Sheet |
31 December 2023 |
31.12.23 | 31.12.22 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 9 | 1 | (43,149 | ) |
Tangible assets | 10 | 7,192,404 | 7,123,507 |
Investments | 11 | - | - |
7,192,405 | 7,080,358 |
CURRENT ASSETS |
Stocks | 12 | 1,727,873 | 1,795,675 |
Debtors | 13 | 4,617,220 | 5,199,107 |
Cash at bank and in hand | 212,819 | 174,345 |
6,557,912 | 7,169,127 |
CREDITORS |
Amounts falling due within one year | 14 | 5,163,320 | 6,910,100 |
NET CURRENT ASSETS | 1,394,592 | 259,027 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
8,586,997 |
7,339,385 |
CREDITORS |
Amounts falling due after more than one year |
15 |
(2,531,250 |
) |
(3,017,707 |
) |
PROVISIONS FOR LIABILITIES | 19 | (606,306 | ) | (424,708 | ) |
NET ASSETS | 5,449,441 | 3,896,970 |
CAPITAL AND RESERVES |
Called up share capital | 20 | 40,000 | 40,000 |
Capital redemption reserve | 21 | 60,000 | 60,000 |
Retained earnings | 21 | 5,349,441 | 3,796,970 |
SHAREHOLDERS' FUNDS | 5,449,441 | 3,896,970 |
The financial statements were approved by the Board of Directors and authorised for issue on 19 September 2024 and were signed on its behalf by: |
N M Cawood - Director |
Lebus Upholstery Limited (Registered number: 05563831) |
Company Balance Sheet |
31 December 2023 |
31.12.23 | 31.12.22 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 9 |
Tangible assets | 10 |
Investments | 11 |
CURRENT ASSETS |
Stocks | 12 |
Debtors | 13 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 14 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
15 |
( |
) |
( |
) |
PROVISIONS FOR LIABILITIES | 19 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 20 |
Capital redemption reserve | 21 |
Retained earnings | 21 |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | 1,421,635 | 245,885 |
The financial statements were approved by the Board of Directors and authorised for issue on |
Lebus Upholstery Limited (Registered number: 05563831) |
Consolidated Statement of Changes in Equity |
for the Year Ended 31 December 2023 |
Called up | Capital |
share | Retained | redemption | Total |
capital | earnings | reserve | equity |
£ | £ | £ | £ |
Balance at 1 January 2022 | 40,000 | 3,117,911 | 60,000 | 3,217,911 |
Changes in equity |
Total comprehensive income | - | 679,059 | - | 679,059 |
Balance at 31 December 2022 | 40,000 | 3,796,970 | 60,000 | 3,896,970 |
Changes in equity |
Total comprehensive income | - | 1,752,471 | - | 1,752,471 |
Contribution to EOT | - | (200,000 | ) | - | (200,000 | ) |
Balance at 31 December 2023 | 40,000 | 5,349,441 | 60,000 | 5,449,441 |
Lebus Upholstery Limited (Registered number: 05563831) |
Company Statement of Changes in Equity |
for the Year Ended 31 December 2023 |
Called up | Capital |
share | Retained | redemption | Total |
capital | earnings | reserve | equity |
£ | £ | £ | £ |
Balance at 1 January 2022 |
Changes in equity |
Total comprehensive income | - |
Balance at 31 December 2022 |
Changes in equity |
Total comprehensive income | - |
Contribution to EOT | - | (200,000 | ) | - | (200,000 | ) |
Balance at 31 December 2023 |
Lebus Upholstery Limited (Registered number: 05563831) |
Consolidated Cash Flow Statement |
for the Year Ended 31 December 2023 |
31.12.23 | 31.12.22 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 3,407,111 | (973,851 | ) |
Interest paid | (363,768 | ) | (223,895 | ) |
Interest element of hire purchase payments paid |
(10,387 |
) |
(13,185 |
) |
Tax paid | (51,491 | ) | 208,530 |
Net cash from operating activities | 2,981,465 | (1,002,401 | ) |
Cash flows from investing activities |
Purchase of tangible fixed assets | (500,496 | ) | (625,027 | ) |
Sale of tangible fixed assets | - | 16,827 |
Interest received | - | 472 |
Net cash from investing activities | (500,496 | ) | (607,728 | ) |
Cash flows from financing activities |
Loan repayments in year | (375,000 | ) | (388,000 | ) |
Capital repayments in year | (185,271 | ) | (222,989 | ) |
Amount introduced by directors | - | 174 |
Net cash from financing activities | (560,271 | ) | (610,815 | ) |
Increase/(decrease) in cash and cash equivalents | 1,920,698 | (2,220,944 | ) |
Cash and cash equivalents at beginning of year |
2 |
(2,102,636 |
) |
118,308 |
Cash and cash equivalents at end of year | 2 | (181,938 | ) | (2,102,636 | ) |
Lebus Upholstery Limited (Registered number: 05563831) |
Notes to the Consolidated Cash Flow Statement |
for the Year Ended 31 December 2023 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
31.12.23 | 31.12.22 |
£ | £ |
Profit before taxation | 2,032,226 | 804,952 |
Depreciation charges | 387,786 | 368,446 |
Finance costs | 374,155 | 237,080 |
Finance income | - | (472 | ) |
2,794,167 | 1,410,006 |
Decrease/(increase) in stocks | 67,802 | (286,134 | ) |
Decrease/(increase) in trade and other debtors | 382,550 | (107,411 | ) |
Increase/(decrease) in trade and other creditors | 162,592 | (1,990,312 | ) |
Cash generated from operations | 3,407,111 | (973,851 | ) |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 31 December 2023 |
31.12.23 | 1.1.23 |
£ | £ |
Cash and cash equivalents | 212,819 | 174,345 |
Bank overdrafts | (394,757 | ) | (2,276,981 | ) |
(181,938 | ) | (2,102,636 | ) |
Year ended 31 December 2022 |
31.12.22 | 1.1.22 |
£ | £ |
Cash and cash equivalents | 174,345 | 911,413 |
Bank overdrafts | (2,276,981 | ) | (793,105 | ) |
(2,102,636 | ) | 118,308 |
Lebus Upholstery Limited (Registered number: 05563831) |
Notes to the Consolidated Cash Flow Statement |
for the Year Ended 31 December 2023 |
3. | ANALYSIS OF CHANGES IN NET DEBT |
At 1.1.23 | Cash flow | At 31.12.23 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 174,345 | 38,474 | 212,819 |
Bank overdrafts | (2,276,981 | ) | 1,882,224 | (394,757 | ) |
(2,102,636 | ) | 1,920,698 | (181,938 | ) |
Debt |
Finance leases | (296,729 | ) | 185,271 | (111,458 | ) |
Debts falling due within 1 year | (375,000 | ) | - | (375,000 | ) |
Debts falling due after 1 year | (2,906,250 | ) | 375,000 | (2,531,250 | ) |
(3,577,979 | ) | 560,271 | (3,017,708 | ) |
Total | (5,680,615 | ) | 2,480,969 | (3,199,646 | ) |
Lebus Upholstery Limited (Registered number: 05563831) |
Notes to the Consolidated Financial Statements |
for the Year Ended 31 December 2023 |
1. | STATUTORY INFORMATION |
Lebus Upholstery Limited is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Basis of consolidation |
The consolidated financial statements present the results of the company and its own subsidiaries ("the group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full. |
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the balance sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated Income Statement from the date on which control is obtained. They are deconsolidated from the date control ceases. |
Significant judgements and estimates |
In applying the company's accounting policies set out below management is required to make certain estimates and judgements concerning the future. These judgements are regularly reviewed and updated as necessary. The estimates and judgements that have most significant effect on the amounts included in these financial statements are as follows: |
- Useful lives of plant and equipment |
Depreciation is provided so as to write down the assets to their residual values over their estimated useful lives as set out in the company's accounting policy. The selection of these estimated useful lives requires the exercise of management judgement. Useful lives are regularly reviewed and should management's assessment of useful lives shorten then depreciation charges in the financial statements would increase and carrying amounts of property, plant and equipment would reduce accordingly. |
- Trade debtors |
The company reviews the recoverability of trade debtors and makes allowances for doubtful debts where considered appropriate. If there is evidence of impairment the carrying amount of the debtor is reduced to its recoverable amount., The impairment loss is recognised immediately in the income statement. |
- Stock obsolescence |
At each reporting date, stocks are assessed for obsolescence. If stock is considered to be obsolete, the carrying amount is reduced through applying provisions as considered necessary to correctly reflect the stock that is considered recoverable. Movements in stock provisions are recognised immediately in the income statement. |
Lebus Upholstery Limited (Registered number: 05563831) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
2. | ACCOUNTING POLICIES - continued |
Turnover |
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised: |
Sales of goods |
Revenue from the sale of goods is recognised when all of the following conditions are satisfied: |
- the Group has transferred the significant risks and rewards of ownership to the buyer; |
- the Group retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold; |
- the amount of revenue can be measured reliably; |
- it is probable that the Group will receive the consideration due under the transaction; |
- the costs incurred or to be incurred in respect of the transaction an be measured reliably. |
Goodwill |
Tangible fixed assets |
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. |
Depreciation in assets is charged so as to allocate the cost of assets less their residual value over the estimated useful lives, using the straight line method. |
Depreciation is provided on the following basis: |
Long leasehold | - | 10% on cost and 5% on cost |
Plant and machinery | - | 10% on cost and 20% on cost |
Fixtures and fittings | - | 10% on cost and 20% on cost |
Motor vehicles | - | 25% on cost |
Computer equipment | - | 20% on cost |
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant charge since the last reporting date. |
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the income statement. |
Stocks |
Stocks and work in progress are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
Cost is calculated using the first-in, first-out method and includes all purchase, transport, and handling costs in bringing stocks to their present location and condition. |
Lebus Upholstery Limited (Registered number: 05563831) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
2. | ACCOUNTING POLICIES - continued |
Financial instruments |
The group only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties and loans to related parties. |
Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond the normal business terms or financed at a rate of interest that is not market rate or in the case of an out-right short-term loan not at market rate, the financial asset or liability is measured, initially, at the present value of the future cash flow discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost. |
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 of impairment is found, an impairment loss is recognised in the income statement. |
For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract. |
For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the company would receive for the asset if it were to be sold at the balance sheet date. |
Financial assets and liabilities are offset and the net amount reported in the balance sheet when there is an 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. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Lebus Upholstery Limited (Registered number: 05563831) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
2. | ACCOUNTING POLICIES - continued |
Foreign currencies |
Functional and presentation currency |
The Group's functional and presentation currency is GBP. |
Transactions and balances |
Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions. |
At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined. |
Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the income statement. |
Hire purchase and leasing commitments |
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter. |
The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability. |
Pension costs and other post-retirement benefits |
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
Debtors |
Short term debtors are measured at transaction price, less any impairment. |
Cash and cash equivalents |
Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. |
Creditors |
Short term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured at transaction price unless they are not charged at a commercial rate of interest, in which case they are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method. |
Lebus Upholstery Limited (Registered number: 05563831) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
3. | EMPLOYEES AND DIRECTORS |
31.12.23 | 31.12.22 |
£ | £ |
Wages and salaries | 14,856,885 | 14,708,932 |
Other pension costs | 284,352 | 323,896 |
15,141,237 | 15,032,828 |
The average number of employees during the year was as follows: |
31.12.23 | 31.12.22 |
Manufacturing | 372 | 403 |
Admin | 73 | 75 |
Directors | 3 | 3 |
447 | 481 |
31.12.23 | 31.12.22 |
£ | £ |
Directors' remuneration | 490,179 | 573,763 |
Directors' pension contributions to money purchase schemes | 20,000 | 29,167 |
Information regarding the highest paid director is as follows: |
31.12.23 | 31.12.22 |
£ | £ |
Emoluments etc | 204,465 | 173,415 |
Pension contributions to money purchase schemes | 10,000 | 9,167 |
4. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
31.12.23 | 31.12.22 |
£ | £ |
Depreciation - owned assets | 345,465 | 325,462 |
Depreciation - assets on hire purchase contracts | 86,134 | 86,133 |
Goodwill amortisation | (43,150 | ) | (43,150 | ) |
Auditors' remuneration | 20,020 | 19,808 |
Foreign exchange differences | (46,999 | ) | (84,061 | ) |
5. | EXCEPTIONAL ITEMS |
31.12.23 | 31.12.22 |
£ | £ |
Exceptional items | - | (16,826 | ) |
Exceptional items in the prior year of £16,826 relates to costs relating to the decision to abandon the implementation of an ERP system. |
Lebus Upholstery Limited (Registered number: 05563831) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
31.12.23 | 31.12.22 |
£ | £ |
Factoring interest | 134,444 | 80,389 |
Mortgage interest | 228,708 | 119,767 |
Loan | 616 | 23,739 |
Hire purchase | 10,387 | 13,185 |
374,155 | 237,080 |
7. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
31.12.23 | 31.12.22 |
£ | £ |
Current tax: |
UK corporation tax | 98,157 | 81,628 |
Deferred tax | 181,598 | 44,265 |
Tax on profit | 279,755 | 125,893 |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
31.12.23 | 31.12.22 |
£ | £ |
Profit before tax | 2,032,226 | 804,952 |
Profit multiplied by the standard rate of corporation tax in the UK of 23.500 % (2022 - 19 %) |
477,573 |
152,941 |
Effects of: |
Expenses not deductible for tax purposes | 7,571 | (4,107 | ) |
Capital allowances in excess of depreciation | (14,275 | ) | - |
Depreciation in excess of capital allowances | - | 1,059 |
Utilisation of tax losses | (5,326 | ) | (7,985 | ) |
enhanced deduction |
Amortisation on goodwill arising on consolidation | (10,140 | ) | (8,198 | ) |
Trading losses carried forward | - | (7,817 | ) |
Prior year R&D under/over provisions | (175,648 | ) | - |
Total tax charge | 279,755 | 125,893 |
8. | INDIVIDUAL INCOME STATEMENT |
As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
Lebus Upholstery Limited (Registered number: 05563831) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
9. | INTANGIBLE FIXED ASSETS |
Group |
Goodwill |
£ |
COST |
At 1 January 2023 |
and 31 December 2023 | (215,749 | ) |
AMORTISATION |
At 1 January 2023 | (172,600 | ) |
Amortisation for year | (43,150 | ) |
At 31 December 2023 | (215,750 | ) |
NET BOOK VALUE |
At 31 December 2023 | 1 |
At 31 December 2022 | (43,149 | ) |
10. | TANGIBLE FIXED ASSETS |
Group |
Fixtures |
Long | Plant and | and |
leasehold | machinery | fittings |
£ | £ | £ |
COST |
At 1 January 2023 | 4,581,371 | 3,410,566 | 1,846,250 |
Additions | - | 220,449 | 45,249 |
At 31 December 2023 | 4,581,371 | 3,631,015 | 1,891,499 |
DEPRECIATION |
At 1 January 2023 | 38,460 | 1,995,576 | 861,335 |
Charge for year | 5,259 | 255,834 | 159,794 |
At 31 December 2023 | 43,719 | 2,251,410 | 1,021,129 |
NET BOOK VALUE |
At 31 December 2023 | 4,537,652 | 1,379,605 | 870,370 |
At 31 December 2022 | 4,542,911 | 1,414,990 | 984,915 |
Lebus Upholstery Limited (Registered number: 05563831) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
10. | TANGIBLE FIXED ASSETS - continued |
Group |
Motor | Computer |
vehicles | equipment | Totals |
£ | £ | £ |
COST |
At 1 January 2023 | 41,823 | 270,111 | 10,150,121 |
Additions | - | 234,798 | 500,496 |
At 31 December 2023 | 41,823 | 504,909 | 10,650,617 |
DEPRECIATION |
At 1 January 2023 | 30,603 | 100,640 | 3,026,614 |
Charge for year | 10,712 | - | 431,599 |
At 31 December 2023 | 41,315 | 100,640 | 3,458,213 |
NET BOOK VALUE |
At 31 December 2023 | 508 | 404,269 | 7,192,404 |
At 31 December 2022 | 11,220 | 169,471 | 7,123,507 |
Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
Fixtures |
Plant and | and | Motor |
machinery | fittings | vehicles | Totals |
£ | £ | £ | £ |
COST |
At 1 January 2023 |
and 31 December 2023 | 657,691 | 55,042 | 37,423 | 750,156 |
DEPRECIATION |
At 1 January 2023 | 117,162 | 36,696 | 28,067 | 181,925 |
Charge for year | 65,769 | 11,009 | 9,356 | 86,134 |
At 31 December 2023 | 182,931 | 47,705 | 37,423 | 268,059 |
NET BOOK VALUE |
At 31 December 2023 | 474,760 | 7,337 | - | 482,097 |
At 31 December 2022 | 540,529 | 18,346 | 9,356 | 568,231 |
Lebus Upholstery Limited (Registered number: 05563831) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
10. | TANGIBLE FIXED ASSETS - continued |
Company |
Fixtures |
Long | Plant and | and |
leasehold | machinery | fittings |
£ | £ | £ |
COST |
At 1 January 2023 |
Additions |
At 31 December 2023 |
DEPRECIATION |
At 1 January 2023 |
Charge for year |
At 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
Motor | Computer |
vehicles | equipment | Totals |
£ | £ | £ |
COST |
At 1 January 2023 |
Additions |
At 31 December 2023 |
DEPRECIATION |
At 1 January 2023 |
Charge for year |
At 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
Lebus Upholstery Limited (Registered number: 05563831) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
10. | TANGIBLE FIXED ASSETS - continued |
Company |
Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
Fixtures |
Plant and | and | Motor |
machinery | fittings | vehicles | Totals |
£ | £ | £ | £ |
COST |
At 1 January 2023 |
and 31 December 2023 |
DEPRECIATION |
At 1 January 2023 |
Charge for year |
At 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
11. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1 January 2023 |
and 31 December 2023 |
PROVISIONS |
At 1 January 2023 |
and 31 December 2023 | 571,754 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
Lebus Upholstery Limited (Registered number: 05563831) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
11. | FIXED ASSET INVESTMENTS - continued |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiaries |
Registered office: Ireland |
Nature of business: |
% |
Class of shares: | holding |
31.12.23 | 31.12.22 |
£ | £ |
Aggregate capital and reserves |
Profit for the year |
Registered office: Queensway Industrial Estate, Dunlop Way, Scunthorpe, N Lincolnshire, DN16 3RN |
Nature of business: |
% |
Class of shares: | holding |
£ | £ |
Aggregate capital and reserves |
Profit for the year |
12. | STOCKS |
Group | Company |
31.12.23 | 31.12.22 | 31.12.23 | 31.12.22 |
£ | £ | £ | £ |
Raw materials | 1,527,156 | 1,548,165 |
Work-in-progress | 82,749 | 117,190 |
Finished goods | 117,968 | 130,320 |
1,727,873 | 1,795,675 |
13. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
31.12.23 | 31.12.22 | 31.12.23 | 31.12.22 |
£ | £ | £ | £ |
Trade debtors | 4,102,716 | 4,633,254 |
Amounts owed by group undertakings | - | - |
Other debtors | 6,500 | 28,689 |
Prepayments and accrued income | 508,004 | 537,164 |
4,617,220 | 5,199,107 |
Lebus Upholstery Limited (Registered number: 05563831) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
14. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
31.12.23 | 31.12.22 | 31.12.23 | 31.12.22 |
£ | £ | £ | £ |
Bank loans and overdrafts (see note 16) | 769,757 | 2,651,981 |
Hire purchase contracts (see note 17) | 111,458 | 185,272 |
Trade creditors | 1,866,066 | 2,197,637 |
Corporation tax | 273,805 | 227,139 |
Social security and other taxes | 287,236 | 240,021 |
VAT | 1,026,194 | 754,977 | 912,968 | 553,386 |
Other creditors | 4,355 | - |
Accruals and deferred income | 824,449 | 653,073 |
5,163,320 | 6,910,100 |
15. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group | Company |
31.12.23 | 31.12.22 | 31.12.23 | 31.12.22 |
£ | £ | £ | £ |
Bank loans (see note 16) | 2,531,250 | 2,906,250 |
Hire purchase contracts (see note 17) | - | 111,457 |
2,531,250 | 3,017,707 |
16. | LOANS |
An analysis of the maturity of loans is given below: |
Group | Company |
31.12.23 | 31.12.22 | 31.12.23 | 31.12.22 |
£ | £ | £ | £ |
Amounts falling due within one year or on | demand: |
Bank overdrafts | 394,757 | 2,276,981 |
Bank loans | 375,000 | 375,000 |
769,757 | 2,651,981 |
Amounts falling due between one and two | years: |
Bank loans - 1-2 years | 375,000 | 375,000 |
Amounts falling due between two and five | years: |
Bank loans - 2-5 years | 2,156,250 | 2,531,250 |
Lebus Upholstery Limited (Registered number: 05563831) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
17. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Hire purchase contracts |
31.12.23 | 31.12.22 |
£ | £ |
Net obligations repayable: |
Within one year | 111,458 | 185,272 |
Between one and five years | - | 111,457 |
111,458 | 296,729 |
Company |
Hire purchase contracts |
31.12.23 | 31.12.22 |
£ | £ |
Net obligations repayable: |
Within one year |
Between one and five years |
Group |
Non-cancellable operating | leases |
31.12.23 | 31.12.22 |
£ | £ |
Within one year | 63,007 | 82,256 |
Between one and five years | 87,148 | 150,155 |
150,155 | 232,411 |
Company |
Non-cancellable operating | leases |
31.12.23 | 31.12.22 |
£ | £ |
Within one year |
Between one and five years |
Lebus Upholstery Limited (Registered number: 05563831) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
18. | SECURED DEBTS |
The following secured debts are included within creditors: |
Group | Company |
31.12.23 | 31.12.22 | 31.12.23 | 31.12.22 |
£ | £ | £ | £ |
Bank overdraft | - | - |
Bank loans | 2,906,250 | 3,281,250 |
Hire purchase contracts | 111,458 | 296,729 | 111,458 | 296,729 |
3,017,708 | 3,577,979 |
Lloyds Bank Commercial Finance Limited holds security over the company in the form of a general debenture and on all assets and chattels debenture. |
Assets on hire purchase are secured against the assets to which they relate. |
19. | PROVISIONS FOR LIABILITIES |
Group | Company |
31.12.23 | 31.12.22 | 31.12.23 | 31.12.22 |
£ | £ | £ | £ |
Deferred tax | 606,306 | 424,708 | 606,306 | 424,708 |
Group |
Deferred |
tax |
£ |
Balance at 1 January 2023 | 424,708 |
Provided during year | 181,598 |
Balance at 31 December 2023 | 606,306 |
Company |
Deferred |
tax |
£ |
Balance at 1 January 2023 |
Provided during year |
Prior year adjustment |
Balance at 31 December 2023 |
20. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 31.12.23 | 31.12.22 |
value: | £ | £ |
Ordinary 'A' | £1 | 10,000 | 10,000 |
Ordinary 'B' | £1 | 30,000 | 30,000 |
40,000 | 40,000 |
Lebus Upholstery Limited (Registered number: 05563831) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
21. | RESERVES |
Group |
Capital |
Retained | redemption |
earnings | reserve | Totals |
£ | £ | £ |
At 1 January 2023 | 3,796,970 | 60,000 | 3,856,970 |
Profit for the year | 1,752,471 | 1,752,471 |
Contribution to EOT | (200,000 | ) | - | (200,000 | ) |
At 31 December 2023 | 5,349,441 | 60,000 | 5,409,441 |
Company |
Capital |
Retained | redemption |
earnings | reserve | Totals |
£ | £ | £ |
At 1 January 2023 | 3,441,446 |
Profit for the year |
Contribution to EOT | (200,000 | ) | - | (200,000 | ) |
At 31 December 2023 | 4,663,081 |
22. | PENSION COMMITMENTS |
The company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost charge represents contributions payable by the company to the fund and amounted to £304,352 (2022: £385,764). |
Included within the creditors under accruals and deferred income is a liability of pension contributions totalling £5,261 (2022: £62,024). |
Lebus Upholstery Limited (Registered number: 05563831) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
23. | RELATED PARTY DISCLOSURES |
During the year the company had the following related party transactions with companies which are under the control of one of the directors: |
31.12.23 | 31.12.22 |
£ | £ |
Directors buying services | 25,000 | 25,000 |
All loans from related parties are repayable on demand. |
The company has taken advantage of the exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
Gifts to the value of £Nil were paid during 2023 (2022: £Nil) to the Lebus Upholstery Limited Employee Ownership Trust of which the directors are potential beneficiaries. |
Key management personnel |
Management do not consider there to be any key management personnel other than the directors. See note 3 for the directors' remuneration for the year. |
24. | ULTIMATE CONTROLLING PARTY |
The Lebus Upholstery Limited Employee Ownership Trust has a majority shareholding in Lebus Upholstery Limited, but control of the Group remains with the board of directors. |