Lorenco Products Limited 04918642 false 2023-08-01 2024-07-31 2024-07-31 The principal activity of the company is that of the supply of door furniture and the manufacture and supply of electrical sound equipment. Digita Accounts Production Advanced 6.30.9574.0 true true 04918642 2023-08-01 2024-07-31 04918642 2024-07-31 04918642 core:RetainedEarningsAccumulatedLosses 2024-07-31 04918642 core:ShareCapital 2024-07-31 04918642 core:CurrentFinancialInstruments 2024-07-31 04918642 core:CurrentFinancialInstruments core:WithinOneYear 2024-07-31 04918642 core:Non-currentFinancialInstruments 2024-07-31 04918642 core:Non-currentFinancialInstruments core:AfterOneYear 2024-07-31 04918642 core:Goodwill 2024-07-31 04918642 core:LandBuildings core:OwnedOrFreeholdAssets 2024-07-31 04918642 core:MotorVehicles 2024-07-31 04918642 core:OfficeEquipment 2024-07-31 04918642 core:PlantMachinery 2024-07-31 04918642 bus:SmallEntities 2023-08-01 2024-07-31 04918642 bus:AuditExemptWithAccountantsReport 2023-08-01 2024-07-31 04918642 bus:FilletedAccounts 2023-08-01 2024-07-31 04918642 bus:SmallCompaniesRegimeForAccounts 2023-08-01 2024-07-31 04918642 bus:RegisteredOffice 2023-08-01 2024-07-31 04918642 bus:Director1 2023-08-01 2024-07-31 04918642 bus:PrivateLimitedCompanyLtd 2023-08-01 2024-07-31 04918642 core:DevelopmentCostsCapitalisedDevelopmentExpenditure 2023-08-01 2024-07-31 04918642 core:Goodwill 2023-08-01 2024-07-31 04918642 core:LandBuildings 2023-08-01 2024-07-31 04918642 core:LandBuildings core:OwnedOrFreeholdAssets 2023-08-01 2024-07-31 04918642 core:MotorVehicles 2023-08-01 2024-07-31 04918642 core:OfficeEquipment 2023-08-01 2024-07-31 04918642 core:PlantMachinery 2023-08-01 2024-07-31 04918642 countries:AllCountries 2023-08-01 2024-07-31 04918642 2023-07-31 04918642 core:Goodwill 2023-07-31 04918642 core:LandBuildings core:OwnedOrFreeholdAssets 2023-07-31 04918642 core:MotorVehicles 2023-07-31 04918642 core:OfficeEquipment 2023-07-31 04918642 core:PlantMachinery 2023-07-31 04918642 2022-08-01 2023-07-31 04918642 2023-07-31 04918642 core:RetainedEarningsAccumulatedLosses 2023-07-31 04918642 core:ShareCapital 2023-07-31 04918642 core:CurrentFinancialInstruments 2023-07-31 04918642 core:CurrentFinancialInstruments core:WithinOneYear 2023-07-31 04918642 core:Non-currentFinancialInstruments 2023-07-31 04918642 core:Non-currentFinancialInstruments core:AfterOneYear 2023-07-31 04918642 core:LandBuildings core:OwnedOrFreeholdAssets 2023-07-31 04918642 core:MotorVehicles 2023-07-31 04918642 core:OfficeEquipment 2023-07-31 04918642 core:PlantMachinery 2023-07-31 iso4217:GBP xbrli:pure

Registration number: 04918642

Lorenco Products Limited

Unaudited Filleted Financial Statements

for the Year Ended 31 July 2024

 

Lorenco Products Limited

(Registration number: 04918642)
Balance Sheet as at 31 July 2024

Note

31 July
2024
£

31 July
2023
£

Fixed assets

 

Tangible assets

5

79,588

96,605

Current assets

 

Stocks

6

97,755

131,359

Debtors

7

205,497

108,224

Cash at bank and in hand

 

68,340

107,651

 

371,592

347,234

Creditors: Amounts falling due within one year

8

(282,472)

(246,550)

Net current assets

 

89,120

100,684

Total assets less current liabilities

 

168,708

197,289

Creditors: Amounts falling due after more than one year

8

-

(750)

Provisions for liabilities

(14,979)

(18,686)

Net assets

 

153,729

177,853

Capital and reserves

 

Called up share capital

100

100

Retained earnings

153,629

177,753

Shareholders' funds

 

153,729

177,853

For the financial year ending 31 July 2024 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476; and

The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime. As permitted by section 444 (5A) of the Companies Act 2006, the directors have not delivered to the registrar a copy of the Profit and Loss Account.

Approved and authorised by the Board on 19 September 2024 and signed on its behalf by:
 

.........................................

S P Hitch

Director

 

Lorenco Products Limited

Notes to the Financial Statements for the Year Ended 31 July 2024

1

General information

The company is a private company limited by share capital, incorporated in England & Wales.

The address of its registered office is:
Unit D, Bull Street Indl Est
Silver End
Brierley Hill
West Midlands
DY5 3RA

These financial statements were authorised for issue by the Board on 19 September 2024.

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A smaller entities - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006 (as applicable to companies subject to the small companies' regime).

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

Going concern

The financial statements have been prepared on a going concern basis.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.

The company recognises revenue when: the amount of revenue can be reliably measured; it is probable that future economic benefits will flow to the entity; and specific criteria have been met for each of the company's activities.

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The corporation tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Deferred tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements and on unused tax losses or tax credits in the company. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.

 

Lorenco Products Limited

Notes to the Financial Statements for the Year Ended 31 July 2024

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Leasehold building improvements

10% pa on a straight line basis.

Plant & machinery

15% pa on a reducing balance basis.

Computer equipment

33% pa on a straight line basis.

Motor vehicles

25% pa on a reducing balance basis.

Goodwill

Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the company’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each reporting period date. Goodwill is amortised over its useful life, which shall not exceed ten years if a reliable estimate of the useful life cannot be made.

Amortisation

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:

Asset class

Amortisation method and rate

Development costs

20% pa on a straight line basis.

Goodwill

6.67% pa on a straight line basis.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.

The cost of finished goods comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.

 

Lorenco Products Limited

Notes to the Financial Statements for the Year Ended 31 July 2024

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Profit and Loss Account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.

Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the Balance Sheet as a finance lease obligation.

Lease payments are apportioned between finance costs in the Profit and Loss Account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Dividends

Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

 

Lorenco Products Limited

Notes to the Financial Statements for the Year Ended 31 July 2024

3

Staff numbers

The average number of persons employed by the company (including directors) during the year, was 3 (2023 - 3).

4

Intangible assets

Goodwill
 £

Total
£

Cost or valuation

At 1 August 2023

62,000

62,000

At 31 July 2024

62,000

62,000

Amortisation

At 1 August 2023

62,000

62,000

At 31 July 2024

62,000

62,000

Carrying amount

At 31 July 2024

-

-

 

Lorenco Products Limited

Notes to the Financial Statements for the Year Ended 31 July 2024

5

Tangible assets

Land and buildings
£

Plant and machinery
£

Office equipment
£

Motor vehicles
 £

Cost or valuation

At 1 August 2023

73,656

199,765

18,995

6,600

At 31 July 2024

73,656

199,765

18,995

6,600

Depreciation

At 1 August 2023

53,178

124,002

18,995

6,236

Charge for the year

5,561

11,365

-

91

At 31 July 2024

58,739

135,367

18,995

6,327

Carrying amount

At 31 July 2024

14,917

64,398

-

273

At 31 July 2023

20,478

75,763

-

364

Total
£

Cost or valuation

At 1 August 2023

299,016

At 31 July 2024

299,016

Depreciation

At 1 August 2023

202,411

Charge for the year

17,017

At 31 July 2024

219,428

Carrying amount

At 31 July 2024

79,588

At 31 July 2023

96,605

 

Lorenco Products Limited

Notes to the Financial Statements for the Year Ended 31 July 2024

6

Stocks

31 July
2024
£

31 July
2023
£

Other inventories

97,755

131,359

7

Debtors

Current

31 July
2024
£

31 July
2023
£

Trade debtors

202,467

105,037

Prepayments

3,030

3,187

 

205,497

108,224

8

Creditors

Creditors: amounts falling due within one year

Note

31 July
2024
£

31 July
2023
£

Due within one year

 

Loans and borrowings

9

750

3,000

Trade creditors

 

155,937

130,986

Taxation and social security

 

58,592

53,480

Accruals and deferred income

 

3,500

3,500

Other creditors

 

63,693

55,584

 

282,472

246,550

 

Lorenco Products Limited

Notes to the Financial Statements for the Year Ended 31 July 2024

9

Loans and borrowings

Non-current loans and borrowings

31 July
2024
£

31 July
2023
£

Bank borrowings

-

750

Current loans and borrowings

31 July
2024
£

31 July
2023
£

Bank borrowings

750

3,000