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REGISTERED NUMBER: 02617009 (England and Wales)














Flocklynn Limited

Group Strategic Report, Directors' Report and

Audited

Consolidated Financial Statements

for the Year Ended 31 December 2023






Flocklynn Limited (Registered number: 02617009)

Contents of the Consolidated Financial Statements
for the Year Ended 31 December 2023










Page

Company information 1

Group strategic report 2

Directors' report 3

Report of the independent auditors 5

Consolidated statement of comprehensive income 9

Consolidated statement of financial position 10

Company statement of financial position 11

Consolidated statement of changes in equity 12

Company statement of changes in equity 13

Consolidated statement of cash flows 14

Notes to the consolidated statement of cash flows 15

Notes to the consolidated financial statements 16


Flocklynn Limited

Company Information
for the Year Ended 31 December 2023







Directors: M A Smith
S J Smith





Secretary: M A Smith





Registered office: James Hall
Parsons Green
St. Ives
Cambs
PE27 4AA





Registered number: 02617009 (England and Wales)





Auditors: Moore Thompson
Monica House
St Augustines Road
Wisbech
Cambridgeshire
PE13 3AD

Flocklynn Limited (Registered number: 02617009)

Group Strategic Report
for the Year Ended 31 December 2023


We aim to present a balanced and comprehensive review of the development and performance of our business during the year and its position at the year end. Our review is consistent with the size and non-complex nature of our business and is written in the context of the risks and uncertainties we face.

Review of business
The company has not traded during the year and has continued to be a holding company. The principal activities of the subsidiary undertakings included in the consolidated accounts during the year were as follows:-

Lexitron Limited - property acquisition, construction, and leasing.

Lexitron Limited

All ongoing developments were completed during the year.

The portfolio remains well occupied on longer term leases.

Key performance indicators
Group profits decreased from £2,228,675 to £214,843. This includes a loss on revaluation of Investment Properties of £544,077 (2021: £933,659) and a combined profit on the disposal of subsidiaries and property of £Nil (2022: £1,950,000).

On behalf of the board:





M A Smith - Director


19 September 2024

Flocklynn Limited (Registered number: 02617009)

Directors' Report
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.

Dividends
During the year dividends were paid amounting to £500,000 (2022 - £500,000)

Directors
The directors shown below have held office during the whole of the period from 1 January 2023 to the date of this report.

M A Smith
S J Smith

Disclosure in the strategic report
The directors as in accordance with section 414C(11) of the Companies Act 2006(Strategic Report and Directors' Report) Regulations 2013 has prepared the group's strategic report as required by schedule 7 of the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008 as per page 1.

Statement of directors' responsibilities
The directors are responsible for preparing the Group strategic report, the Directors' report and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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.

Flocklynn Limited (Registered number: 02617009)

Directors' Report
for the Year Ended 31 December 2023


Auditors
The auditors, Moore Thompson, will be proposed for re-appointment at the forthcoming Annual General Meeting.

On behalf of the board:





M A Smith - Director


19 September 2024

Report of the Independent Auditors to the Members of
Flocklynn Limited


Opinion
We have audited the financial statements of Flocklynn Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023 which comprise the Consolidated statement of comprehensive income, Consolidated statement of financial position, Company statement of financial position, Consolidated statement of changes in equity, Company statement of changes in equity, Consolidated statement of cash flows and Notes to the consolidated statement of cash flows, 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 directors are responsible for the other information. The other information comprises the information in the Group strategic report and the Directors' report, 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 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.

Report of the Independent Auditors to the Members of
Flocklynn Limited


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 Directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Group strategic report and the Directors' report have been prepared in accordance with applicable legal requirements.

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 Directors' report.

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
Flocklynn 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.

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

The extent to which the audit was considered capable of detecting irregularities including fraud

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

- the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;

- we identified the laws and regulations applicable to the company through discussions with directors and other management;

- we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, such as the Companies Act 2006, taxation legislation, data protection, anti-bribery, employment, environmental and health and safety legislation;

- we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and

- identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

- making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud;

- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations;

To address the risk of fraud through management bias and override of controls, we:

- performed analytical procedures to identify any unusual or unexpected relationships;

- tested journal entries to identify unusual transactions;

- assessed whether judgements and assumptions made in determining the accounting estimates set out in the accounts were indicative of potential bias;

- investigated the rationale behind significant or unusual transactions; and

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

- agreeing financial statement disclosures to underlying supporting documentation;

- reading the minutes of meetings of those charged with governance;

- enquiring of management as to actual and potential litigation and claims;

Report of the Independent Auditors to the Members of
Flocklynn Limited


- reviewing correspondence with HMRC, relevant regulators and the company's legal advisors;

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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.

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.




Christopher Wright F.C.A., C.T.A (Senior Statutory Auditor)
for and on behalf of Moore Thompson
Monica House
St Augustines Road
Wisbech
Cambridgeshire
PE13 3AD

19 September 2024

Flocklynn Limited (Registered number: 02617009)

Consolidated Statement of Comprehensive Income
for the Year Ended 31 December 2023

2023 2022
Notes £    £    £    £   

Turnover 1,272,807 11,445,884

Cost of sales - 7,518,798
Gross profit 1,272,807 3,927,086

Distribution costs - 437,762
Administrative expenses 596,809 2,596,023
596,809 3,033,785
Operating profit 5 675,998 893,301

Profit/loss on sale of
investments 7 - 1,950,000
675,998 2,843,301

Interest receivable and similar income 8 135,863 27,437
811,861 2,870,738
Gain/loss on revaluation of investment
property

(544,077

)

(933,659

)
267,784 1,937,079

Interest payable and similar expenses 9 3,130 106,263
Profit before taxation 264,654 1,830,816

Tax on profit 10 49,811 (397,859 )
Profit for the financial year 214,843 2,228,675

Other comprehensive income - -
Total comprehensive income for the
year

214,843

2,228,675

Profit attributable to:
Owners of the parent 214,843 2,228,675

Total comprehensive income attributable to:
Owners of the parent 214,843 2,243,298
Non-controlling interests - (14,623 )
214,843 2,228,675

Flocklynn Limited (Registered number: 02617009)

Consolidated Statement of Financial Position
31 December 2023

2023 2022
Notes £    £    £    £   
Fixed assets
Tangible assets 13 13,736,333 13,642,402
Investments 14 - -
13,736,333 13,642,402

Current assets
Debtors 15 2,478,594 3,582,702
Cash at bank 5,051,278 4,671,679
7,529,872 8,254,381
Creditors
Amounts falling due within one year 16 765,982 1,114,926
Net current assets 6,763,890 7,139,455
Total assets less current liabilities 20,500,223 20,781,857

Creditors
Amounts falling due after more than one
year

17

(256,298

)

(256,298

)

Provisions for liabilities 19 (800,219 ) (796,696 )
Net assets 19,443,706 19,728,863

Capital and reserves
Called up share capital 20 314,595 314,595
Non-distributable reserve 21 (3,134,740 ) (2,729,005 )
Retained earnings 21 22,263,851 22,143,273
Shareholders' funds 19,443,706 19,728,863

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:





M A Smith - Director


Flocklynn Limited (Registered number: 02617009)

Company Statement of Financial Position
31 December 2023

2023 2022
Notes £    £    £    £   
Fixed assets
Tangible assets 13 - -
Investments 14 250,000 250,000
250,000 250,000

Current assets
Debtors 15 6,215,072 6,229,256
Net current assets 6,215,072 6,229,256
Total assets less current liabilities 6,465,072 6,479,256

Creditors
Amounts falling due after more than one
year

17

225,000

225,000
Net assets 6,240,072 6,254,256

Capital and reserves
Called up share capital 20 314,595 314,595
Retained earnings 21 5,925,477 5,939,661
Shareholders' funds 6,240,072 6,254,256

Company's profit for the financial year 485,816 6,477,782

The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

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:





M A Smith - Director


Flocklynn Limited (Registered number: 02617009)

Consolidated Statement of Changes in Equity
for the Year Ended 31 December 2023

Called up
share Retained Other
capital earnings reserves
£    £    £   
Balance at 1 January 2022 314,595 15,408,394 17,442

Changes in equity
Total comprehensive income - 7,217,437 -
Dividends - (500,000 ) -
Increase in share capital - 17,442 (17,442 )
Balance at 31 December 2022 314,595 22,143,273 -

Changes in equity
Total comprehensive income - 620,578 -
Dividends - (500,000 ) -
Balance at 31 December 2023 314,595 22,263,851 -
Non-distributable Non-controlling Total
reserve Total interests equity
£    £    £    £   
Balance at 1 January 2022 2,259,757 18,000,188 14,623 18,014,811

Changes in equity
Total comprehensive income (4,988,762 ) 2,228,675 (14,623 ) 2,214,052
Dividends - (500,000 ) - (500,000 )
Balance at 31 December 2022 (2,729,005 ) 19,728,863 - 19,728,863

Changes in equity
Total comprehensive income (405,735 ) 214,843 - 214,843
Dividends - (500,000 ) - (500,000 )
Balance at 31 December 2023 (3,134,740 ) 19,443,706 - 19,443,706

Flocklynn Limited (Registered number: 02617009)

Company Statement of Changes in Equity
for the Year Ended 31 December 2023

Called up
share Retained Total
capital earnings equity
£    £    £   
Balance at 1 January 2022 314,595 (38,121 ) 276,474

Changes in equity
Dividends - (500,000 ) (500,000 )
Total comprehensive income - 6,477,782 6,477,782
Balance at 31 December 2022 314,595 5,939,661 6,254,256

Changes in equity
Dividends - (500,000 ) (500,000 )
Total comprehensive income - 485,816 485,816
Balance at 31 December 2023 314,595 5,925,477 6,240,072

Flocklynn Limited (Registered number: 02617009)

Consolidated Statement of Cash Flows
for the Year Ended 31 December 2023

2023 2022
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 2,048,618 1,719,733
Finance costs paid (3,130 ) (106,263 )
Tax paid (463,744 ) (69,955 )
Net cash from operating activities 1,581,744 1,543,515

Cash flows from investing activities
Purchase of tangible fixed assets (638,008 ) (802,292 )
Sale of tangible fixed assets - 8,381,035
Settlement of minority profits - (28,300 )
Interest received 135,863 27,437
Net cash from investing activities (502,145 ) 7,577,880

Cash flows from financing activities
Loan repayments in year - (7,096,500 )
Capital repayments in year - (142,864 )
Amount introduced by directors - 200,054
Amount withdrawn by directors (200,000 ) -
Equity dividends paid (500,000 ) -
Net cash from financing activities (700,000 ) (7,039,310 )

Increase in cash and cash equivalents 379,599 2,082,085
Cash and cash equivalents at
beginning of year

2

4,671,679

2,589,594

Cash and cash equivalents at end of
year

2

5,051,278

4,671,679

Flocklynn Limited (Registered number: 02617009)

Notes to the Consolidated Statement of Cash Flows
for the Year Ended 31 December 2023


1. Reconciliation of profit before taxation to cash generated from operations
2023 2022
£    £   
Profit before taxation 264,654 1,830,816
Depreciation charges - 110,333
Profit on disposal of fixed assets - (16,500 )
Loss on revaluation of fixed assets 544,077 933,659
Finance costs 3,130 106,263
Finance income (135,863 ) (27,437 )
675,998 2,937,134
Decrease in stocks - 1,703,101
Decrease/(increase) in trade and other debtors 1,245,520 (108,060 )
Increase/(decrease) in trade and other creditors 127,100 (2,812,442 )
Cash generated from operations 2,048,618 1,719,733

2. Cash and cash equivalents

The amounts disclosed on the Statement of cash flows in respect of cash and cash equivalents are in respect of these Statement of financial position amounts:

Year ended 31 December 2023
31.12.23 1.1.23
£    £   
Cash and cash equivalents 5,051,278 4,671,679
Year ended 31 December 2022
31.12.22 1.1.22
£    £   
Cash and cash equivalents 4,671,679 2,589,594


3. Analysis of changes in net funds

At 1.1.23 Cash flow At 31.12.23
£    £    £   
Net cash
Cash at bank and in hand 4,671,679 379,599 5,051,278
4,671,679 379,599 5,051,278
Debt
Debts falling due after 1 year (256,298 ) - (256,298 )
(256,298 ) - (256,298 )
Total 4,415,381 379,599 4,794,980

Flocklynn Limited (Registered number: 02617009)

Notes to the Consolidated Financial Statements
for the Year Ended 31 December 2023


1. Statutory information

Flocklynn Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the General Information page.

The presentation currency of the financial statements is the Pound Sterling (£).


2. Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006.

3. Accounting policies

Basis of preparing the financial statements
The financial statements have been prepared under the historical cost convention.

Consolidation
The group financial statements consolidate the financial statements of the company and all subsidiaries.

As a consolidated profit and loss account is published, a separate profit and loss account for the parent company is omitted from the group financial statements by virtue of section 408 of the Companies Act 2006.

Non-controlling interests
Minority interests in the net assets of consolidated subsidiaries are identified separately from the Group’s equity. Minority interests consist of the amount of those interests at the date of the original business combination and the minority’s share of changes in equity since the date of the combination.

The proportions of profit or loss and changes in equity allocated to the owners of the parent and to the minority interests are determined on the basis of existing ownership interests and do not reflect the possible exercise or conversion of options or convertible instruments.

Judgements and key sources of estimation uncertainty
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period or in the period of the revision and future periods if the revision affects both current and future periods.

Revenue recognition
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Turnover is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of discounts and Value Added Tax.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have transferred to the buyer (usually on despatch of the goods); the amount of revenue can be measured reliably; it is probable that the associated economic benefits will flow to the entity; and the costs incurred or to be incurred in respect of the transactions can be measured reliably.

Flocklynn Limited (Registered number: 02617009)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2023


3. Accounting policies - continued

Amortisation
Amortisation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful life of that asset as follows:

Goodwill-Straight line 1 year

If there is an indication that there has been a significant change in amortisation rate, useful life or residual value of an intangible asset, the amortisation is revised prospectively to reflect the new estimates.

Intangible assets
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.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off the cost less estimated
residual value of each asset over its estimated useful life.

Land and buildings-over 5 - 25 years
Plant and machinery-over 2 - 10 years
Fixtures and fittings-over 1 - 10 years
Motor vehicles-over 2 - 5 years

Financial instruments
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 entity after deducting all of its financial liabilities.

Where the contractual obligations of financial instruments (including share capital) are equivalent to a similar debt instrument, those financial instruments are classed as financial liabilities. Financial liabilities are presented as such in the balance sheet. Finance costs and gains or losses relating to financial liabilities are included in the profit and loss account. Finance costs are calculated so as to produce a constant rate of return on the outstanding liability.

Where the contractual terms of share capital do not have any terms meeting the definition of a financial liability then this is classed as an equity instrument. Dividends and distributions relating to equity instruments are debited direct to equity.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Statement of Comprehensive Income, 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 statement of financial position date.


Flocklynn Limited (Registered number: 02617009)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2023


3. Accounting policies - continued
Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position 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.

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.

Operating leases
Lease payments are recognised as an expense over the lease term on a straight-line basis. The aggregate benefit of lease incentives is recognised as a reduction to expense over the lease term, on a straight-line basis.

Lease income is recognised in profit or loss on a straight line basis over the lease term. The aggregate cost of lease incentives are recognised as a reduction to income over the lease term on a straight-line basis. Costs, including depreciation, incurred in earning the lease income are recognised as an expense. Any initial direct costs incurred in negotiating and arranging the operating lease are added to the carrying amount of the lease and recognised as an expense over the lease term on the same basis as the lease income.

Investment property
Investment property is initially recorded at cost, which includes purchase price and any directly attributable expenditure.

Investment property is revalued to its fair value at each reporting date and any changes in fair value are recognised in the profit and loss.

If a reliable measure of fair value is no longer available without undue cost or effort for an item of investment property, it shall be transferred to tangible assets and treated as such until it is expected that fair value will be reliably measurable on an on-going basis.

4. Employees and directors
2023 2022
£    £   
Wages and salaries 181,223 2,397,974
Social security costs 20,285 244,712
Other pension costs - 73,077
201,508 2,715,763

The average number of employees during the year was as follows:
2023 2022

Production staff - 43
Administrative staff 2 28
2 71

Flocklynn Limited (Registered number: 02617009)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2023


4. Employees and directors - continued

2023 2022
£    £   
Directors' remuneration 164,529 494,125
Directors' pension contributions to money purchase schemes - 8,334

The number of directors to whom retirement benefits were accruing was as follows:

Defined benefit schemes - 2

5. Operating profit/(loss)

The operating profit (2022 - operating loss) is stated after charging/(crediting):

2023 2022
£    £   
Depreciation - owned assets - 110,333
Profit on disposal of fixed assets - (16,500 )

6. Auditors' remuneration
2023 2022
£    £   
Fees payable to the company's auditors for the audit of the
company's financial statements

3,750

10,760

7. Exceptional items
2023 2022
£    £   
Profit/loss on sale of
investments - 1,950,000

8. Interest receivable and similar income
2023 2022
£    £   
Interest receivable 135,863 27,437

9. Interest payable and similar expenses
2023 2022
£    £   
Interest on bank loans and
overdrafts - 103,133
Dividends paid on shares 3,130 3,130
3,130 106,263

Flocklynn Limited (Registered number: 02617009)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2023


10. Taxation

Analysis of the tax charge/(credit)
The tax charge/(credit) on the profit for the year was as follows:
2023 2022
£    £   
Current tax:
UK corporation tax 187,701 412,651

Deferred tax:
Origination and reversal of
timing differences (137,890 ) (810,510 )
Tax on profit 49,811 (397,859 )

Reconciliation of total tax charge/(credit) 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:

2023 2022
£    £   
Profit before tax 264,654 1,830,816
Profit multiplied by the standard rate of corporation tax in the UK of
25 % (2022 - 19 %)

66,164

347,855

Effects of:
Expenses not deductible for tax purposes 783 4,353
Capital allowances in excess of depreciation (3,450 ) (128,902 )
Deferred tax movement (137,981 ) (802,665 )
Profit from subsidiary - (352,166 )
Capital gains - 356,271
Deferred tax movement on investment property revaluations 136,019 177,395
Change in UK tax rate (11,724 ) -
Total tax charge/(credit) 49,811 (397,859 )

11. Individual statement of comprehensive income

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.


12. Dividends
2023 2022
£    £   
Ordinary shares of £1 each
Final 500,000 500,000

Flocklynn Limited (Registered number: 02617009)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2023


13. Tangible fixed assets

Group
Investment Freehold Motor
property property vehicles Totals
£    £    £    £   
Cost
At 1 January 2023 13,642,402 - 49,288 13,691,690
Additions 603,978 34,030 - 638,008
Reclassification/transfer (544,077 ) - - (544,077 )
At 31 December 2023 13,702,303 34,030 49,288 13,785,621
Depreciation
At 1 January 2023
and 31 December 2023 - - 49,288 49,288
Net book value
At 31 December 2023 13,702,303 34,030 - 13,736,333
At 31 December 2022 13,642,402 - - 13,642,402

Revaluations were carried out in 2021 by Eddisons, 150 High Street, Huntingdon, Cambridgeshire, PE29 3YH on various properties owned by the company. Eddisons are RICS registered valuers and the open market valuations were carried out at various points in 2021.

On an ongoing annual basis, the directors have updated the valuations by making reference to CBRE, commercial property and real estate UK property index.

Tangible assets held at valuation

If investment property had not been revalued it would have been included at a historical cost of
£17,009,413 (2022: £16,371,405).


14. Fixed asset investments

Company
Shares in
group
undertakings
£   
Cost
At 1 January 2023
and 31 December 2023 250,000
Net book value
At 31 December 2023 250,000
At 31 December 2022 250,000


Subsidiaries, associates and other investments

Lexitron Limited - hold 100% of the ordinary shares at £1 each.

Flocklynn Limited (Registered number: 02617009)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2023


15. Debtors: amounts falling due within one year

Group Company
2023 2022 2023 2022
£    £    £    £   
Trade debtors 683,189 301,875 - -
Other debtors 3,780 - - -
Amounts owed by group undertakings - - 6,215,072 4,506,849
Deferred proceeds - 1,722,407 - 1,722,407
Tax 1,667,418 1,526,006 - -
Prepayments and accrued income 124,207 32,414 - -
2,478,594 3,582,702 6,215,072 6,229,256

16. Creditors: amounts falling due within one year

Group
2023 2022
£    £   
Trade creditors 71,582 84,808
Tax 187,701 463,745
Social security and other taxes 7,322 6,548
VAT 78,233 74,562
Directors' current accounts - 200,000
Accruals and deferred income 421,144 285,263
765,982 1,114,926

17. Creditors: amounts falling due after more than one year

Group Company
2023 2022 2023 2022
£    £    £    £   
Preference shares (see note 18) 256,298 256,298 225,000 225,000

18. Loans

An analysis of the maturity of loans is given below:

Group Company
2023 2022 2023 2022
£    £    £    £   
Amounts falling due between one and two years:
Preference shares 256,298 256,298 225,000 225,000

Details of shares shown as liabilities are as follows:

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: £    £   
225,000 11% Non-Cumulative Preference £1 225,000 225,000
31,298 10% Cumulative Preference £1 31,298 31,298

Flocklynn Limited (Registered number: 02617009)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2023

256,298 256,298

19. Provisions for liabilities

Group
2023 2022
£    £   
Deferred tax
Other timing differences 800,219 796,696

Group
Deferred
tax
£   
Balance at 1 January 2023 796,696
Accelerated capital allowances 453
Other timing differences 3,070
Balance at 31 December 2023 800,219

20. Called up share capital

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: £    £   
314,595 Ordinary £1 314,595 314,595

21. Reserves

Group
Retained Non-distributable
earnings reserve Totals
£    £    £   

At 1 January 2023 22,143,273 (2,729,005 ) 19,414,268
Profit for the year 214,843 214,843
Dividends (500,000 ) (500,000 )
Transfer of non-distributable
losses 405,735 (405,735 ) -
At 31 December 2023 22,263,851 (3,134,740 ) 19,129,111

Company
Retained
earnings
£   

At 1 January 2023 5,939,661
Profit for the year 485,816
Dividends (500,000 )
At 31 December 2023 5,925,477

Flocklynn Limited (Registered number: 02617009)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2023


21. Reserves - continued

Non-distributable reserve - Where financial instruments and investment properties are revalued at fair value, a transfer is made to a non distributable reserve, instead of a transfer to retained earnings, to assist with the identification of profits available for distribution

Profit and loss account - The profit and loss account represents cumulative profits and losses net of dividends and other adjustments.

22. Related party disclosures

Group

2023 2022
£ £
Transactions with other related parties:-
Expenses paid 204,446 192,717
Income received 9,000 7,000

Company

The ultimate controlling parties of Flocklynn Limited are the DJ Smith Family Trusts.