Company registration number 01275052 (England and Wales)
LEE INDUSTRIAL LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
PAGES FOR FILING WITH REGISTRAR
LEE INDUSTRIAL LIMITED
COMPANY INFORMATION
Director
Mr JJ Chance
Secretary
Mrs J Chance
(Appointed 04/01/2023)
Company number
01275052
Registered office
78 Suez Road
Enfield
Middlesex
EN3 7PS
Accountants
Moore Northern Home Counties Limited
East Wing
Goffs Oak House
Goffs Lane
Goffs Oak
Hertfordshire
EN7 5GE
LEE INDUSTRIAL LIMITED
CONTENTS
Page
Accountants' report
1
Balance sheet
2 - 3
Notes to the financial statements
5 - 11
LEE INDUSTRIAL LIMITED
ACCOUNTANTS' REPORT TO THE BOARD OF DIRECTORS ON THE PREPARATION OF THE UNAUDITED STATUTORY FINANCIAL STATEMENTS OF LEE INDUSTRIAL LIMITED FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -
In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of Lee Industrial Limited for the year ended 31 December 2023 which comprise, the balance sheet, the statement of changes in equity and the related notes from the company’s accounting records and from information and explanations you have given us.
As a practising member firm of the Institute of Chartered Accountants in England and Wales (ICAEW), we are subject to its ethical and other professional requirements which are detailed at https://www.icaew.com/regulation.
This report is made solely to the Board of Directors of Lee Industrial Limited, as a body, in accordance with the terms of our engagement. Our work has been undertaken solely to prepare for your approval the financial statements of Lee Industrial Limited and state those matters that we have agreed to state to the Board of Directors of Lee Industrial Limited, as a body, in this report in accordance with ICAEW Technical Release 07/16 AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Lee Industrial Limited and its board of directors as a body, for our work or for this report.
It is your duty to ensure that Lee Industrial Limited has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets, liabilities, financial position and loss of Lee Industrial Limited. You consider that Lee Industrial Limited is exempt from the statutory audit requirement for the year.
We have not been instructed to carry out an audit or a review of the financial statements of Lee Industrial Limited. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory financial statements.
Moore Northern Home Counties Limited
Chartered Accountants
East Wing
Goffs Oak House
Goffs Lane
Goffs Oak
Hertfordshire
EN7 5GE
18 September 2024
LEE INDUSTRIAL LIMITED
BALANCE SHEET
AS AT 31 DECEMBER 2023
31 December 2023
- 2 -
2023
2022
Notes
£
£
£
£
Fixed assets
Intangible assets
3
387,003
429,460
Tangible assets
4
6,530,292
5,025,668
6,917,295
5,455,128
Current assets
Stocks
1,924,326
2,148,219
Debtors
5
289,694
204,603
Investments
6
32,637
34,030
Cash at bank and in hand
4,825
500
2,251,482
2,387,352
Creditors: amounts falling due within one year
7
(783,889)
(934,354)
Net current assets
1,467,593
1,452,998
Total assets less current liabilities
8,384,888
6,908,126
Creditors: amounts falling due after more than one year
8
(333,063)
(383,526)
Provisions for liabilities
10
(1,183,546)
(952,226)
Net assets
6,868,279
5,572,374
Capital and reserves
Called up share capital
12
25,694
25,694
Share premium account
249,306
249,306
Revaluation reserve
13
5,152,275
3,651,153
Profit and loss reserves
1,441,004
1,646,221
Total equity
6,868,279
5,572,374
The director of the company has elected not to include a copy of the profit and loss account within the financial statements.true
For the financial year ended 31 December 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The director acknowledges her responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
The member has not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
LEE INDUSTRIAL LIMITED
BALANCE SHEET (CONTINUED)
AS AT 31 DECEMBER 2023
31 December 2023
- 3 -
The financial statements were approved by the board of directors and authorised for issue on 17 September 2024 and are signed on its behalf by:
Mr JJ Chance
Director
Company registration number 01275052 (England and Wales)
LEE INDUSTRIAL LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -
Share capital
Share premium account
Revaluation reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 January 2022
25,000
3,651,153
1,885,273
5,561,426
Year ended 31 December 2022:
Loss and total comprehensive income
-
-
-
(239,052)
(239,052)
Issue of share capital
12
694
249,306
-
-
250,000
Balance at 31 December 2022
25,694
249,306
3,651,153
1,646,221
5,572,374
Year ended 31 December 2023:
Loss and total comprehensive income
-
-
-
(205,218)
(205,218)
Revaluation in the year
-
-
1,501,122
-
1,501,122
Balance at 31 December 2023
25,694
249,306
5,152,275
1,441,004
6,868,279
LEE INDUSTRIAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 5 -
1
Accounting policies
Company information
Lee Industrial Limited is a private company limited by shares incorporated in England and Wales. The registered office is 78 Suez Road, Enfield, Middlesex, EN3 7PS.
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 £.
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.
1.3
Intangible fixed assets - goodwill
Goodwill,being the amount paid in connection with the acquisition of a business in 2022, is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.
1.4
Intangible fixed assets other than goodwill
The directors have reviewed their estimates in relation to the depreciation of their Enterprise Resource Planning Software. In the directors' opinion this investment will drive profitability over the next decade and beyond, although to be conservative they have taken the view that the economic life of these costs are deemed to be 7 years.
Trademarks are initially measured at cost. After initial recognition trademarks are measured at cost less any accumulated amortisation and any accumulated impairment loss.This is being amortised over its useful life of 10 years.
1.5
Tangible fixed assets
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Plant and equipment
25% on cost and 33% and 20% on cost
Included in tangible fixed assets is a freehold property valued at £6,500,000 (2022: £5,000,000). The directors have chosen to value the freehold property under the revaluation model. The freehold property has not been depreciated on the grounds that it would be immaterial because the estimated residual value is not materially different from its carrying amount.
1.6
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
LEE INDUSTRIAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 6 -
1.7
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Basic financial assets
Basic financial assets, which include 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 classified as receivable within one year are not amortised.
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company 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.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, 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.
1.8
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.
1.9
Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the 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
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.
LEE INDUSTRIAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 7 -
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.
1.10
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.11
Current asset investments are stated at their fair value.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Total
33
35
LEE INDUSTRIAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
3
Intangible fixed assets
Goodwill
Other
Total
£
£
£
Cost
At 1 January 2023
104,150
1,628,133
1,732,283
Additions
3,244
56,684
59,928
At 31 December 2023
107,394
1,684,817
1,792,211
Amortisation and impairment
At 1 January 2023
10,415
1,292,408
1,302,823
Amortisation charged for the year
11,064
91,321
102,385
At 31 December 2023
21,479
1,383,729
1,405,208
Carrying amount
At 31 December 2023
85,915
301,088
387,003
At 31 December 2022
93,735
335,725
429,460
4
Tangible fixed assets
Freehold land and buildings
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
£
Cost or valuation
At 1 January 2023
5,000,000
85,121
213,850
149,571
13,945
5,462,487
Additions
14,927
2,303
17,230
Disposals
(1,122)
(1,122)
Revaluation
1,501,122
1,501,122
At 31 December 2023
6,500,000
100,048
213,850
151,874
13,945
6,979,717
Depreciation and impairment
At 1 January 2023
74,547
213,850
134,477
13,945
436,819
Depreciation charged in the year
7,113
5,493
12,606
At 31 December 2023
81,660
213,850
139,970
13,945
449,425
Carrying amount
At 31 December 2023
6,500,000
18,388
11,904
6,530,292
At 31 December 2022
5,000,000
10,574
15,094
5,025,668
The fair value of the property as at 31 December 2023 has been determined by the Director by reference to the market value of similar properties in the area.
LEE INDUSTRIAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
5
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
31,023
7,745
Corporation tax recoverable
40,692
Other debtors
217,979
196,858
289,694
204,603
6
Current asset investments
2023
2022
£
£
Other investments
32,637
34,030
Investments with a fair value of £32,093 (2022: £33,095) are listed on a recognised stock exchange.
7
Creditors: amounts falling due within one year
2023
2022
£
£
Bank loans and overdrafts
52,971
114,621
Trade creditors
414,402
403,556
Corporation tax
1,745
Other taxation and social security
69,644
101,218
Other creditors
246,872
313,214
783,889
934,354
8
Creditors: amounts falling due after more than one year
2023
2022
£
£
Bank loans and overdrafts
333,063
383,526
Creditors which fall due after five years are as follows:
2023
2022
£
£
Payable by instalments
(101,364)
(154,193)
LEE INDUSTRIAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
9
Secured Debts
The bank loan with a balance of £358,534 at the year end is secured by a charge over the property 78 Suez Road, Brimsdown, Enfield.
A guarantee and debenture dated 15 January 2016 was created by the company for securing all monies due or to become due from the company to Barclays Bank Plc.
A guarantee and debenture dated 11 December 2018 was created by the company for securing all monies due or to become due from the company to Barclays Bank Plc.
A personal guarantee limited to £100,000 was provided by the directors for the loan.
10
Provisions for liabilities
2023
2022
£
£
Deferred tax liabilities
11
1,183,546
952,226
11
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2023
2022
Balances:
£
£
Accelerated capital allowances
76,336
(1,437)
Tax losses
-
(1,417)
Revaluations
1,107,210
955,080
1,183,546
952,226
2023
Movements in the year:
£
Liability at 1 January 2023
952,226
Charge to profit or loss
231,320
Liability at 31 December 2023
1,183,546
12
Called up share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
25,694
25,694
25,694
25,694
LEE INDUSTRIAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
12
Called up share capital
(Continued)
- 11 -
13
Revaluation reserve
2023
2022
£
£
At the beginning of the year
3,651,153
3,651,153
Other movements
1,501,122
-
At the end of the year
5,152,275
3,651,153
14
Related party transactions
The following loans from/(to) directors subsisted during the years ended 31 December 2023 and 31 December 2022:
| | | | | | |
| | | | |
| | | |
Balance outstanding at start of year | | | |
Balance outstanding at end of year | | | |
Maximum balance outstanding during year | | | |
| | | |
Balance outstanding at start of year | | | |
Balance outstanding at end of year | | | |
Maximum balance outstanding during year | | | |
These loans are interest free loans, which are repayable on demand.
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