LAKER VENT ENGINEERING LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 MARCH 2024
Company Registration No. 02001095 (England and Wales)
LAKER VENT ENGINEERING LIMITED
COMPANY INFORMATION
Directors
P Ventre
M Ventre
R G Ventre (non-executive)
J Ashe
T Ventre
Secretary
J Ashe
Company number
02001095
Registered office
Laker House
North Road
Ellesmere Port
CH65 1BA
Auditor
DSG Audit
Castle Chambers
43 Castle Street
Liverpool
L2 9TL
Bankers
Barclays Bank plc
1st Floor
3 Hardman Street
Manchester
M3 3HF
Solicitors
O'Connors LLP
The Plaza
100 Old Hall Street
Liverpool
L3 9QJ
LAKER VENT ENGINEERING LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Directors' responsibilities statement
5
Independent auditor's report
6 - 8
Statement of comprehensive income
9
Balance sheet
10
Statement of changes in equity
11
Notes to the financial statements
12 - 25
LAKER VENT ENGINEERING LIMITED
STRATEGIC REPORT
FOR THE PERIOD ENDED 30 MARCH 2024
- 1 -
The directors present the strategic report for the period ended 30 March 2024.
Business review
The business of the company is project and maintenance work for the power, pharmaceutical and process industries. During this period, we have focused our business in-line with the second year of our strategic business plan 2022-27. This has allowed us to focus on our specific strategies which are both measurable and achievable, which has helped achieve the main point of our plan. We continue to work with key customers while also developing new routes to market.
Principal risks and uncertainties
The Directors consider the principal risks and uncertainties faced by the company are in the following categories.
Abrupt changes in domestic and or foreign government policies, laws treaties (including those impacting trade), regulations or leadership.
Other social, political, and economic instability.
Staff and trade retention in the coming years.
Skill shortages throughout the whole of the construction industry are impacting delivery.
Raw material and energy prices are increasing dramatically, due to the current economic situation caused by the ongoing challenges of world events.
Climate change risks continue to grow year on year. We need to ensure we do our best as a business in managing our waste and emissions.
Internal Controls
The directors are responsible for the company’s systems of internal controls and for reviewing its effectiveness. Our internal control system is designed to manage, rather than eliminate the risks of failure to achieve our business objectives and can only provide reasonable and not absolute assurance against misstatement or loss. Our Risk Register is assessed monthly.
The directors prepare regular cash flow forecast to review liquidity requirements for the next twelve months and beyond. The plan/forecast is updated on a regular basis.
Going concern statement
The directors believe that it is well placed to manage its financing and other business risks satisfactorily and have a reasonable expectation that the company will have adequate resources to continue in operation for at least twelve months from the signing date of these financial statements. They therefore consider it appropriate to adopt the going concern basis of accounting in preparing the financial statements.
The company’s operating profits have increased by 28.5% in the period, this has placed us in a strong position to move forward into the next financial year.
Our forecasts for the next 12 months show a solid trading position moving forward with a good order book and strong cash position.
LAKER VENT ENGINEERING LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 30 MARCH 2024
- 2 -
Financial key performance indicators
Period ended
Period ended
30 March
1 April
2024
2023
£000's
£000's
Turnover
21,508
17,342
Operating profit
1,598
1,245
Profit after tax
1,153
992
Shareholder funds
3,152
2,681
The Company’s operating profits have increased by 28.5% from the previous period, so with a good order book, strong cash position and established client base the company expects to continue to trade profitably during the next financial period. We will continue to invest in our workforce and key technologies, which we see as paramount to our business and key to successful growth, efficiency, and client satisfaction.
This report was approved by the board and signed on its behalf.
M Ventre
Director
17 September 2024
LAKER VENT ENGINEERING LIMITED
DIRECTORS' REPORT
FOR THE PERIOD ENDED 30 MARCH 2024
- 3 -
The directors present their annual report and financial statements for the period ended 30 March 2024.
Principal activities
The principal activity during the period continued to be that of project and maintenance work for the power, pharmaceutical and process industries.
Results and dividends
The profit for the period, after taxation, amounted to £1,153,000 (2023: £992,000).
Ordinary dividends were paid amounting to £313,460 (2023: £130,041).
Directors
The directors who held office during the period and up to the date of signature of the financial statements were as follows:
P Ventre
M Ventre
R G Ventre (non-executive)
J Ashe
T Ventre
C Ventre (Deceased)
(Resigned 6 August 2023)
Financial risk management objectives and policies
Treasury policies
The company finances its activities through bank borrowings. Other financial assets and liabilities, such as trade debtors and trade creditors, arise directly from the company's operating activities. The company does not enter into interest rate swaps and does not trade in financial instruments.
Liquidity risk
The company seeks to mitigate liquidity risk by managing cash generation from its operations and applying cash collection targets. The company's funding strategy is to maintain a balance between continuity of funding and flexibility through use of overdrafts, loans and finance leases.
Interest rate risk
The company's policy is to manage its cost of borrowing using variable rate debt. At 30 March 2024 100% (2023: 100%) of the company's borrowings were at variable rate.
Foreign currency risk
The company has no operations outside the United Kingdom and has no exposure to foreign currencies.
Credit risk
The risk of financial loss due to a counterparty's failure to honour its obligations arise principally in relation to transactions where the company provides goods and services.
Company policies are aimed at minimising such losses, and require that credit terms are only granted to customers who demonstrate an appropriate payment history and satisfy creditworthiness procedures. Individual exposures are monitored to ensure that the company's exposure to bad debts is minimised.
Price risk
The company does not seek to hedge any transactions and no trading in derivative financial instruments is undertaken.
LAKER VENT ENGINEERING LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE PERIOD ENDED 30 MARCH 2024
- 4 -
Post reporting date events
Note 24 provides detail on post reporting date events.
Future developments
Future developments are detailed in the Strategic Report on page 1.
Auditor
DSG resigned as auditor on 11 September 2024. DSG Audit were appointed on 11 September 2024 to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
On behalf of the board
M Ventre
Director
17 September 2024
LAKER VENT ENGINEERING LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE PERIOD ENDED 30 MARCH 2024
- 5 -
The directors are responsible for preparing the 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 applicable law and United Kingdom accounting standards (United Kingdom Generally Accepted Accounting Practice), 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 of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
select suitable accounting policies for the ompany's financial statements and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the ompany will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and to 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 hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
LAKER VENT ENGINEERING LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF LAKER VENT ENGINEERING LIMITED
- 6 -
Opinion
We have audited the financial statements of Laker Vent Engineering Limited (the 'company') for the period ended 30 March 2024 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity and notes to the financial statements, including 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 company's affairs as at 30 March 2024 and of its profit for the period 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.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the 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.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
LAKER VENT ENGINEERING LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF LAKER VENT ENGINEERING LIMITED (CONTINUED)
- 7 -
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the directors' report for the financial period for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of 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 directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the 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 company or to cease operations, or have no realistic alternative but to do so.
Auditor's 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 an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
LAKER VENT ENGINEERING LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF LAKER VENT ENGINEERING LIMITED (CONTINUED)
- 8 -
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
Discussions were held with, and enquiries made of, management and those charged with governance with a view to identifying those laws and regulations that could be expected to have a material impact on the financial statements. During the engagement team briefing, the outcomes of these discussions and enquiries were shared with the team, as well as consideration as to where and how fraud may occur in the entity.
The following laws and regulations were identified as being of significance to the entity:
Those laws and regulations considered to have a direct effect on the financial statements including UK financial reporting standards, company law, tax and pensions legislation, and distributable profits legislation.
Those laws and regulations for which non-compliance may be fundamental to the operating aspects of the business and therefore may have a material effect on the financial statements, which as a fabrication and installation business was limited to compliance with general health and safety regulations.
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 or claims; inspection of relevant legal correspondence; review of board minutes; testing the appropriateness of entries in the nominal ledger, including journal entries which may be indicative of fraud; and the performance of analytical review to identify unexpected movements in account balances which may be indicative of fraud.
No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity's controls and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK).
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
This report is made solely to the company's member 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 member those matters we are required to state to the member in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's member, for our audit work, for this report, or for the opinions we have formed.
Neil Kelly BA FCA
Senior Statutory Auditor
For and on behalf of DSG Audit
17 September 2024
Chartered Accountants
Statutory Auditor
Castle Chambers
43 Castle Street
Liverpool
L2 9TL
LAKER VENT ENGINEERING LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 30 MARCH 2024
- 9 -
Period
Period
ended
ended
30 March
1 April
2024
2023
Notes
£'000
£ '000
Turnover
3
21,508
17,342
Raw materials and consumables
(2,523)
(2,881)
Staff costs
6
(11,994)
(9,996)
Depreciation
4
(143)
(129)
Other operating expenses
(5,250)
(3,091)
Operating profit
4
1,598
1,245
Interest receivable and similar income
8
33
Interest payable and similar expenses
9
(16)
(16)
Profit before taxation
1,615
1,229
Tax on profit
10
(462)
(237)
Profit for the financial period
1,153
992
Other comprehensive income
Revaluation of tangible fixed assets
831
Total comprehensive income for the period
1,984
992
There was no other comprehensive income for 2024 (2023: £nil).
LAKER VENT ENGINEERING LIMITED
BALANCE SHEET
AS AT 30 MARCH 2024
30 March 2024
- 10 -
2024
2023
Notes
£'000
£'000
£ '000
£ '000
Fixed assets
Tangible assets
12
348
704
Current assets
Stocks
13
53
47
Debtors
14
5,252
2,895
Cash at bank and in hand
2,307
1,940
7,612
4,882
Creditors: amounts falling due within one year
15
(4,755)
(2,845)
Net current assets
2,857
2,037
Total assets less current liabilities
3,205
2,741
Creditors: amounts falling due after more than one year
16
(28)
Provisions for liabilities
Deferred tax liability
18
53
32
(53)
(32)
Net assets
3,152
2,681
Capital and reserves
Called up share capital
19
5
5
Revaluation reserve
21
280
Profit and loss reserves
21
3,147
2,396
Total equity
3,152
2,681
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:
M Ventre
Director
Company Registration No. 02001095
LAKER VENT ENGINEERING LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 30 MARCH 2024
- 11 -
Share capital
Revaluation reserve
Profit and loss reserves
Total
Notes
£'000
£'000
£'000
£'000
Balance at 27 March 2022
5
286
1,528
1,819
Period ended 1 April 2023:
Profit and total comprehensive income
-
-
992
992
Dividends
11
-
-
(130)
(130)
Transfers
-
(6)
6
-
Balance at 1 April 2023
5
280
2,396
2,681
Period ended 30 March 2024:
Profit
-
-
1,153
1,153
Other comprehensive income:
Revaluation of tangible fixed assets
-
831
-
831
Total comprehensive income
-
831
1,153
1,984
Dividends
11
-
-
(313)
(313)
Distributions to parent company
11
-
-
(1,200)
(1,200)
Transfers
-
(1,111)
1,111
-
Balance at 30 March 2024
5
3,147
3,152
LAKER VENT ENGINEERING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 MARCH 2024
- 12 -
1
Accounting policies
Company information
Laker Vent Engineering Limited is a private company limited by shares incorporated in England and Wales. The registered office is Laker House, North Road, Ellesmere Port, CH65 1BA.
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.
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 £'000.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues’: Interest income/expense and net gains/losses for each category of financial instrument; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 26 ‘Share based Payment’: Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
The financial statements of the company are consolidated into the financial statements of LV Engineering Limited for the period ended 30 March 2024. These consolidated financial statements may be obtained from the Registrar of Companies, Crown Way, Cardiff, CF14 3UZ.
1.2
Going concern
The accounts have been prepared on a going concern basis, which assumes the company will have sufficient funds to continue to pay its debts as and when they fall due and thus continue to trade for a period of not less than 12 months from the date of signing these financial statements. In making their assessment the directors have reviewed and considered the expected performance across the company’s key contracts using their understanding of expected revenue and costings. They have also taken into consideration the timing of when key debts fall due and the impact these have upon expected cash flows.true
Having due consideration of the above, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future and so the accounts are prepared on a going concern basis.
1.3
Reporting period
The annual financial statements are compiled for the period to 30 March 2024 being the closest Saturday to the 31 March 2024 accounting reference date.
LAKER VENT ENGINEERING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 MARCH 2024
1
Accounting policies
(Continued)
- 13 -
1.4
Turnover
Turnover is taken into account progressively and in accordance with UK applicable accounting standards relating to long term contracts.
Profit on long-term contracts is taken as the work is carried out if the final outcome can be assessed with reasonable certainty. The profit included is calculated on a prudent basis to reflect the proportion of the work carried out at the period end date, by recording turnover and related costs as contract activity progresses. Turnover is calculated as that proportion of total contract value which costs incurred to date bear to total expected costs for that contract. Revenues derived from variations on contracts are recognised only when they have been accepted by the customer. Full provision is made for losses on all contracts in the period in which they are first foreseen. In accordance with FRS 102, the balance of payments on account in excess of amounts matched with turnover and offset against long term balances, is classified as payments on account and separately disclosed within creditors.
Turnover in respect of daywork represents the invoiced value of work done during the period stated net of value added tax.
1.5
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
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.
The company adds to the carrying amount of an item of fixed assets the cost of replacing part of such an item when that cost is incurred, if the replacement part if expected to provide incremental future benefits to the company. The carrying amount of the replaced part is derecognised. Repairs and maintenance are charged to profit or loss during the period in which they are incurred.
Land is not depreciated. Depreciation on other assets is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight line method.
Depreciation is provided on the following basis:
Freehold land and property
5% straight line
Plant & machinery
25% straight line
Fixtures & fittings
25% straight line
Motor vehicles
25% straight line
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 change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised within 'other operating expenses' in the Income Statement.
1.6
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 includes all direct costs and an appropriate proportion of fixed and variable overheads.
Work in progress is stated at cost of direct materials and labour plus attributable overheads based on the anticipated normal level of activity, less provision for any known or anticipated losses.
LAKER VENT ENGINEERING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 MARCH 2024
1
Accounting policies
(Continued)
- 14 -
1.7
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. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.
1.8
Financial instruments
The company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable and loans to and from related parties.
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Income Statement.
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.
1.9
Operating leases: Lessee
Rentals paid under operating leases are charged to the Income Statement on a straight line basis over the period of the lease.
1.10
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.11
Current and deferred taxation
The tax expense represents the sum of the tax currently payable and deferred tax. Tax is recognised in the Income Statement, except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity is also recognised in other comprehensive income or directly in equity respectively.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.
Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the Balance Sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.
Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.
LAKER VENT ENGINEERING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 MARCH 2024
1
Accounting policies
(Continued)
- 15 -
1.12
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.13
Pensions
The company operates a defined contribution and auto-enrolment pension scheme, and the pension charge represents the amounts payable by the company in respect of the period.
1.14
Leasing and hire purchase
Assets obtained under hire purchase contracts and finance leases are capitalised as tangible fixed assets. Assets acquired by finance lease are depreciated over the shorter of the lease term and their useful lives. Assets acquired by hire purchase are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the company. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to the Income Statement so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.
1.15
Finance costs
Finance costs are charged to the Income Statement over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.
1.16
Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.
1.17
Short term creditors are measured at transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.
1.18
Interest income is recognised in the Income Statement using the effective interest method.
LAKER VENT ENGINEERING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 MARCH 2024
- 16 -
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Critical judgements
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
Assessing indicators of impairment
In assessing whether there have been any indicators of impaired assets, the directors have considered both external and internal sources of information such as market conditions, counterparty credit rating, and experience of recovery.
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
Determining WIP valuations
WIP is valued at direct cost and uplifted to cover associated production overheads and this is based on normal activity levels within the business. Profit is only recognised within WIP when the contract is significantly completed, this ensures minimum risk of overstatement of asset values. Similarly any potential losses on a contract are recognised as soon as the directors are aware of this.
Recoverability of receivables
The company establishes a provision for receivables that are estimated not to be recoverable. When assessing recoverability the directors consider factors such as the ageing of receivables, past experience of recoverability, and the credit profile of individual or groups of customers.
Determining residual values and useful economic lives of tangible fixed assets
The company depreciates tangible assets over their estimated useful lives. The estimation of the useful lives of assets is based on historic performance as well as expectations about the future use and therefore requires estimates and assumptions to be applied by management. The actual lives of these assets can vary depending on a variety of factors, including technical innovation, product life cycles and maintenance programmes.
Judgement is applied by management when determining the residual values for tangible fixed assets. When determining the residual value, management aim to assess the amount that the company would currently obtain for the disposal of the asset if it were already of the condition expected at the end of its useful economic life. Where possible this is done with reference to external market prices.
LAKER VENT ENGINEERING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 MARCH 2024
- 17 -
3
Turnover and other revenue
Period ended
Period ended
30 March
1 April
2024
2023
£'000
£'000
Turnover analysed by class of business
Contracts
7,234
5,516
Daywork
14,274
11,826
21,508
17,342
Period ended
Period ended
30 March
1 April
2024
2023
£'000
£'000
Turnover analysed by geographical market
United Kingdom
21,508
17,342
Period ended
Period ended
30 March
1 April
2024
2023
£'000
£'000
Other revenue
Interest income
33
-
4
Operating profit
Period ended
Period ended
30 March
1 April
2024
2023
Operating profit for the period is stated after charging/(crediting):
£'000
£'000
Depreciation of owned tangible fixed assets
143
129
Loss/(profit) on disposal of tangible fixed assets
1
(7)
Operating lease charges
102
96
5
Auditor's remuneration
Period ended
Period ended
30 March
1 April
2024
2023
Fees payable to the company's auditor and associates:
£'000
£'000
For audit services
Audit of the financial statements of the company
15
15
LAKER VENT ENGINEERING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 MARCH 2024
- 18 -
6
Employees
The average monthly number of persons (including directors) employed by the company during the period was:
Period ended
Period ended
30 March
1 April
2024
2023
Number
Number
Installation staff
150
142
Office and management
31
31
Total
181
173
Their aggregate remuneration comprised:
Period ended
Period ended
30 March
1 April
2024
2023
£'000
£'000
Wages and salaries
10,476
8,627
Social security costs
1,087
877
Pension costs
431
492
11,994
9,996
7
Directors' remuneration
Period ended
Period ended
30 March
1 April
2024
2023
£'000
£'000
Remuneration for qualifying services
560
426
Company pension contributions to defined contribution schemes
224
318
784
809
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 5 (2023: 5).
LAKER VENT ENGINEERING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 MARCH 2024
7
Directors' remuneration
(Continued)
- 19 -
Remuneration disclosed above include the following amounts paid to the highest paid director:
Period ended
Period ended
30 March
1 April
2024
2023
£'000
£'000
Remuneration for qualifying services
127
145
Company pension contributions to defined contribution schemes
10
4
8
Interest receivable and similar income
Period ended
Period ended
30 March
1 April
2024
2023
£'000
£'000
Interest on bank deposits
33
33
Investment income includes the following:
Interest on financial assets not measured at fair value through profit or loss
33
9
Interest payable and similar expenses
Period ended
Period ended
30 March
1 April
2024
2023
£'000
£'000
Bank interest payable
16
16
10
Taxation
Period ended
Period ended
30 March
1 April
2024
2023
£'000
£'000
Current tax
UK corporation tax on profits for the current period
443
241
Adjustments in respect of prior periods
(2)
Total current tax
441
241
LAKER VENT ENGINEERING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 MARCH 2024
10
Taxation
Period ended
Period ended
30 March
1 April
(Continued)
- 20 -
2024
2023
£'000
£'000
Deferred tax
Origination and reversal of timing differences
21
(4)
Total tax charge
462
237
The actual charge for the period can be reconciled to the expected charge for the period based on the profit or loss and the standard rate of tax as follows:
Period ended
Period ended
30 March
1 April
2024
2023
£'000
£'000
Profit before taxation
1,615
1,229
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
404
234
Tax effect of expenses that are not taxable/deductible in determining taxable profit
58
(2)
Other differences leading to an increase in the tax charge
5
Taxation charge for the period
462
237
11
Dividends and distributions
Period ended
Period ended
30 March
1 April
2024
2023
£'000
£'000
Dividends
Dividends paid
313
130
Distributions to parent company
Arising on transfer of freehold property (note 12)
1,200
By way of written resolution on 20 April 2023 the company made a distribution in specie comprising the freehold land and property with a value of £1,200,000.
LAKER VENT ENGINEERING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 MARCH 2024
- 21 -
12
Tangible fixed assets
Freehold land and property
Plant & machinery
Fixtures & fittings
Motor vehicles
Total
£'000
£'000
£'000
£'000
£'000
Cost or valuation
At 2 April 2023
492
748
305
176
1,721
Additions
130
27
157
Disposals
(34)
(33)
(12)
(79)
Revaluation
708
708
Transfers intra-group (note 11)
(1,200)
(1,200)
At 30 March 2024
844
299
164
1,307
Depreciation and impairment
At 2 April 2023
123
630
203
61
1,017
Depreciation charged in the period
64
38
41
143
Eliminated in respect of disposals
(33)
(33)
(12)
(78)
Revaluation
(123)
(123)
At 30 March 2024
661
208
90
959
Carrying amount
At 30 March 2024
183
91
74
348
At 1 April 2023
369
118
102
115
704
Included within freehold property is freehold land of £Nil (2023: £200,000) which is not depreciated.
Land and buildings are carried at valuation. If land and buildings were measured using the cost model, the carrying amounts would have been approximately:
2024
2023
£'000
£'000
Cost
-
287
Accumulated depreciation
-
(229)
Carrying value
-
58
13
Stocks
2024
2023
£'000
£'000
Work in progress
53
47
LAKER VENT ENGINEERING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 MARCH 2024
- 22 -
14
Debtors
2024
2023
Amounts falling due within one year:
£'000
£'000
Trade debtors
4,982
2,542
Amounts owed by group undertakings
178
178
Directors loan accounts
3
Prepayments and accrued income
89
175
5,252
2,895
Amounts owed by group undertakings are unsecured, interest free, and repayable on demand.
15
Creditors: amounts falling due within one year
2024
2023
Notes
£'000
£'000
Bank loans
17
83
Payments received on account
1,973
400
Trade creditors
879
1,011
Corporation tax
276
241
Other taxation and social security
883
411
Directors loan accounts
1
2
Other creditors
293
349
Accruals and deferred income
450
348
4,755
2,845
16
Creditors: amounts falling due after more than one year
2024
2023
Notes
£'000
£'000
Bank loans
17
28
17
Loans and overdrafts
2024
2023
£'000
£'000
Bank loans
111
Payable within one year
-
83
Payable after one year
-
28
LAKER VENT ENGINEERING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 MARCH 2024
17
Loans and overdrafts
(Continued)
- 23 -
Bank facilities are secured by way of a legal charge over the freehold property at Laker House, North Road, Ellesmere Port, a debenture on the bank's standard form dated 13 December 1990, and a cross guarantee between group companies Laker Vent Engineering Limited, LV Engineering Limited, and LV Parent Company Limited, and Next Property Holding Company Limited which is under common control.
The bank loan was provided by Barclays Bank Plc under the Coronavirus Business Interruption Loan Scheme and was repaid in full during the year.
18
Deferred taxation
The following are the major net deferred tax liabilities and assets recognised by the company:
Liabilities
Liabilities
2024
2023
Balances:
£'000
£'000
Accelerated capital allowances
77
75
Retirement benefit obligations
(24)
(43)
53
32
2024
Movements in the period:
£'000
Liability at 2 April 2023
32
Charge to profit or loss
21
Liability at 30 March 2024
53
The net deferred tax liabilities set out above are not expected to reverse within the next 12 months.
19
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£'000
£'000
Issued and fully paid
Ordinary shares of £1 each
5,100
5,100
5
5
Ordinary 'B' shares of £1 each
10
10
-
-
The Ordinary 'B' shares have no voting rights.
20
Pension contributions
The company operates defined contribution and auto-enrolment pension schemes. Contributions are charged to the income statement as they become payable in accordance with the rules of the schemes. The pension cost charge represents contributions payable by the company and amounted to £431,000 (2023: £492,000). Contributions of £114,000 (2023: £201,000) were outstanding at the year-end date which are included within creditors due within one year.
LAKER VENT ENGINEERING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 MARCH 2024
- 24 -
21
Revaluation reserve
Revaluation reserve
The revaluation reserve represents the revaluation gain on freehold property less annual transfers to the profit and loss reserve for the additional depreciation charged on the deemed cost (previously fair value) in comparison to the historical cost depreciation charge and less amounts realised on transfer of the freehold land and property in the period.
Profit & loss account
This reserve represents cumulative profits and losses.
22
Financial commitments, guarantees and contingent liabilities
The company has indemnified its bankers in respect of a bonds, guarantees, and indemnities facility to the value of £150,000.
23
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2024
2023
£'000
£'000
Within one year
110
122
Between two and five years
56
110
166
232
24
Related party transactions
Included in directors' loan accounts are amounts due from/(to) the following directors:
T Ventre
2024: £3,000
2023: £nil
P Ventre
2024: (£1,050)
2023: (£2,000)
No interest is charged on these loans.
The maximum overdrawn balances for T Ventre and P Ventre during the period were £8,000 and £nil respectively.
The company has taken advantage of the exemption in FRS102 section 33 not to disclose transactions with other wholly owned members of the group.
LAKER VENT ENGINEERING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 MARCH 2024
- 25 -
25
Ultimate controlling party
At 30 March 2024, the company is a wholly owned subsidiary of LV Engineering Limited. LV Engineering Limited is a company incorporated in England and Wales, company number 06993145. LV Engineering Limited is wholly owned by LV Parent Company Limited, company number 14700083,which is the ultimate parent undertaking.
The company is under the control of the Board of Directors by virtue of their majority shareholding in the parent company, LV Parent Company Limited.
The largest group into which the results of the company are consolidated is that headed by LV Parent Company Limited. The consolidated financial statements of this group are available to the public and may be obtained from the Registrar of Companies, Crown Way, Cardiff, CF14 3UZ.
2024-03-302023-04-02falseCCH SoftwareCCH Accounts Production 2024.200P VentreM VentreR G Ventre (non-executive)T VentreC Ventre (Deceased)C Ventre (Deceased)J Ashefalsefalse020010952023-04-022024-03-3002001095bus:Director12023-04-022024-03-3002001095bus:Director22023-04-022024-03-3002001095bus:Director32023-04-022024-03-3002001095bus:CompanySecretaryDirector12023-04-022024-03-3002001095bus:Director42023-04-022024-03-3002001095bus:CompanySecretary12023-04-022024-03-3002001095bus:Director52023-04-022024-03-3002001095bus:Director62023-04-022024-03-3002001095bus:RegisteredOffice2023-04-022024-03-30020010952024-03-30020010952022-03-272023-04-0102001095core:RetainedEarningsAccumulatedLosses2022-03-272023-04-0102001095core:RetainedEarningsAccumulatedLosses2023-04-022024-03-3002001095core:RevaluationReserve2023-04-022024-03-30020010952023-04-0102001095core:LandBuildingscore:OwnedOrFreeholdAssets2024-03-3002001095core:PlantMachinery2024-03-3002001095core:FurnitureFittings2024-03-3002001095core:MotorVehicles2024-03-3002001095core:LandBuildingscore:OwnedOrFreeholdAssets2023-04-0102001095core:PlantMachinery2023-04-0102001095core:FurnitureFittings2023-04-0102001095core:MotorVehicles2023-04-0102001095core:CurrentFinancialInstrumentscore:WithinOneYear2024-03-3002001095core:CurrentFinancialInstrumentscore:WithinOneYear2023-04-0102001095core:Non-currentFinancialInstrumentscore:AfterOneYear2024-03-3002001095core:Non-currentFinancialInstrumentscore:AfterOneYear2023-04-0102001095core:CurrentFinancialInstruments2024-03-3002001095core:CurrentFinancialInstruments2023-04-0102001095core:ShareCapital2024-03-3002001095core:ShareCapital2023-04-0102001095core:RevaluationReserve2024-03-3002001095core:RevaluationReserve2023-04-0102001095core:RetainedEarningsAccumulatedLosses2024-03-3002001095core:RetainedEarningsAccumulatedLosses2023-04-0102001095core:ShareCapital2022-03-2602001095core:RevaluationReserve2022-03-2602001095core:RetainedEarningsAccumulatedLosses2022-03-2602001095core:RevaluationReserve2022-03-272023-04-0102001095core:LandBuildingscore:OwnedOrFreeholdAssets2023-04-022024-03-3002001095core:PlantMachinery2023-04-022024-03-3002001095core:FurnitureFittings2023-04-022024-03-3002001095core:MotorVehicles2023-04-022024-03-3002001095core:UKTax2023-04-022024-03-3002001095core:UKTax2022-03-272023-04-010200109512023-04-022024-03-300200109512022-03-272023-04-0102001095core:LandBuildingscore:OwnedOrFreeholdAssets2023-04-0102001095core:PlantMachinery2023-04-0102001095core:FurnitureFittings2023-04-0102001095core:MotorVehicles2023-04-01020010952023-04-0102001095core:Non-currentFinancialInstruments2024-03-3002001095core:Non-currentFinancialInstruments2023-04-0102001095bus:PrivateLimitedCompanyLtd2023-04-022024-03-3002001095bus:FRS1022023-04-022024-03-3002001095bus:Audited2023-04-022024-03-3002001095bus:FullAccounts2023-04-022024-03-30xbrli:purexbrli:sharesiso4217:GBP