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 |
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: |
Secretary: |
Registered office: |
Registered number: |
Auditors: |
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: |
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. |
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: |
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. |
for and on behalf of |
Monica House |
St Augustines Road |
Wisbech |
Cambridgeshire |
PE13 3AD |
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 |
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 |
Current assets |
Debtors | 15 |
Net current assets |
Total assets less current liabilities |
Creditors |
Amounts falling due after more than one year |
17 |
Net assets |
Capital and reserves |
Called up share capital | 20 |
Retained earnings | 21 |
Shareholders' funds |
Company's profit for the financial year | 485,816 | 6,477,782 |
The financial statements were approved by the Board of Directors and authorised for issue on |
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 | ( |
) |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 31 December 2022 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 31 December 2023 |
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 |
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 |
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 |
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 |
Net book value |
At 31 December 2023 |
At 31 December 2022 |
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 | - | - |
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 |
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 |
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: | £ | £ |
11% Non-Cumulative Preference | £1 | 225,000 | 225,000 |
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: | £ | £ |
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 |
Profit for the year |
Dividends | ( |
) |
At 31 December 2023 |
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. |