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Registration number: 02850281

LUMESCA Group Limited

Annual Report and Consolidated Financial Statements

for the Year Ended 31 December 2023

 

LUMESCA Group Limited

Contents

Company Information

1

Strategic Report

2 to 3

Directors' Report

4

Statement of Directors' Responsibilities

5

Independent Auditor's Report

6 to 8

Consolidated Profit and Loss Account

9

Consolidated Statement of Comprehensive Income

10

Consolidated Balance Sheet

11

Balance Sheet

12

Consolidated Statement of Changes in Equity

13

Statement of Changes in Equity

14

Consolidated Statement of Cash Flows

15

Statement of Cash Flows

16

Notes to the Financial Statements

17 to 33

 

LUMESCA Group Limited

Company Information

Directors

S M Prais

G I Clements

M Ruder

Company secretary

G I Clements

Registered office

Spectrum Point
164 Clapgate Lane
Birmingham
B32 3DE

Auditors

Bissell & Brown Midlands Ltd
Chartered Certified Accountants and Statutory Auditors
Charter House
56 High Street
Sutton Coldfield
West Midlands
B72 1UJ

 

LUMESCA Group Limited

Strategic Report for the Year Ended 31 December 2023

The directors present their strategic report for the year ended 31 December 2023.

Principal activity

The principal activity of the group is the distribution and development of products, software and services to the digital imaging and graphics markets including the photographic, video, design and printing industries.

Fair review of the business

The results of the company for the year ended 31 December 2023 are as disclosed in the attached financial statements.

The global market witnessed various challenges during this period, with economic uncertainties and fluctuations impacting industries across sectors. Despite these external pressures, our company exhibited resilience and adaptability. LUMESCA's proactive approach to managing risks, prudent financial planning, and innovative product offerings enabled us to navigate the economic headwinds successfully. We are confident in our ability to sustainably address evolving market dynamics, leverage growth opportunities, and continue delivering value to our stakeholders in the year ahead.

This period has been marked by significant challenges and unanticipated market conditions that have adversely impacted our trading performance, resulting in substantial losses. The global economic landscape has continued to present difficulties, with persistent uncertainties and disruptions affecting industries worldwide, including ours. However, these setbacks have not deterred our commitment to delivering long-term value to our stakeholders.

A review of the business resulted in restructuring some departments and deploying cost-saving measures, including some headcount reduction. Our goal is to return to profitability and secure sustainable growth by building on the strengths of our business, leveraging our market knowledge, and adapting to the evolving economic environment.

Principal risks and uncertainties

The principal risks and uncertainties facing the company are set out below. The directors feel that the company has a good mix of business activities, and is well-balanced to handle the risks and uncertainties that it may face.

In the fast-evolving digital landscape, technological changes present both opportunities and challenges for LUMESCA Group Limited. Rapid advancements in technology can disrupt our existing business models, necessitating constant innovation to stay competitive. Failure to anticipate and embrace emerging technologies could lead to loss of market share and decreased operational efficiency. As a proactive measure, we prioritize investments in research and development, promoting a culture of continuous learning and adapting our products and services to align with evolving customer expectations. We remain vigilant about monitoring industry trends and maintaining strategic partnerships to leverage technological innovations and ensure sustainable growth.

LUMESCA Group Limited recognises the inherent risk associated with significant debtor balances, despite having debtor insurance in place for credit protection. Economic uncertainties and market fluctuations can impact customers' ability to meet payment obligations, leading to potential credit exposure. To address this, we diligently monitor credit risks, maintain sound credit policies, and collaborate with insurers to align our coverage with risk tolerance. Our risk management strategy emphasizes proactive communication with customers, robust provisions for bad debts, and prudent financial management to protect stakeholders' interests.

LUMESCA Group Limited operates in a global market, and as such, we are exposed to currency movements that may impact our financial performance and results. Fluctuations in foreign exchange rates can influence our revenues, costs, and profitability, potentially affecting the overall financial health of the company. To mitigate this risk, we employ comprehensive currency risk management strategies, including hedging and monitoring mechanisms. However, unpredictable and significant currency fluctuations remain an inherent risk that demands continuous monitoring and adaptability to safeguard our financial position and optimize shareholder value.

 

LUMESCA Group Limited

Strategic Report for the Year Ended 31 December 2023 (continued)

At LUMESCA Group Limited, we recognise the critical importance of safeguarding sensitive data and protecting our stakeholders' privacy. As we leverage technology to streamline operations and deliver exceptional customer experiences, the risk of data breaches and cyber-attacks becomes increasingly pronounced. We have implemented robust data security measures, including firewalls, encryption, and access controls, to fortify our systems against unauthorized access and data breaches. Additionally, our teams undergo regular cybersecurity training to enhance awareness and response capabilities. Despite our vigilance, the evolving threat landscape demands ongoing diligence and investment in advanced cybersecurity solutions to ensure the confidentiality, integrity, and availability of our data assets.

Section 172(1) statement

The directors of the company have paid due regard to their responsibilities under Section 172(1) of the Companies Act 2006 in so much as producing budgets and forecasts which consider any long term consequences of any decision and the potential impact on the community and environment.

Employees are consulted regularly to ensure the impact of any decisions made are considered thus promoting fairness between the members of the company.

All business relationships are closely monitored by the directors and as such the company maintains a reputation for high standards of business conduct.

Approved by the Board on 12 September 2024 and signed on its behalf by:

.........................................
S M Prais
Director

.........................................
G I Clements
Company secretary and director

 
     
 

LUMESCA Group Limited

Directors' Report for the Year Ended 31 December 2023

The directors present their report and the for the year ended 31 December 2023.

Directors of the group

The directors who held office during the year were as follows:

S M Prais

G I Clements - Company secretary and director

M Ruder

Employment of disabled persons

Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of a member of staff becoming disabled, every effort is made to ensure that their employment with the company continues and that appropriate training is arranged. It is the policy of the company that the training, career development and promotion of disabled persons should, as far as possible, be identical with that of other employees.

Employee involvement

The company values the involvement of its employees and has continued its previous practice of keeping them informed on matters affecting them as employees, and of the various factors affecting the performance of the company. This is achieved through formal and informal meetings and through the posting of company notices. Employee representatives are consulted regularly on a wide range of matters affecting their current and future interests.

Going concern

The financial statements have been prepared on the going concern basis. In adopting the going concern basis for preparing the financial statements, the Directors have prepared cash flow forecasts for a period of 14 months from the date of approval of these financial statements, which indicate, that taking account of reasonably possible downsides, the company will have sufficient funds to meet its liabilities as they fall due for that period.

Disclosure of information to the auditor

Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditor is unaware.

Reappointment of auditors

The auditors Bissell & Brown Midlands Ltd are deemed to be reappointed under section 487(2) of the Companies Act 2006.

Approved by the Board on 12 September 2024 and signed on its behalf by:

.........................................
S M Prais
Director

.........................................
G I Clements
Company secretary and director

 
     
 

LUMESCA Group Limited

Statement of Directors' Responsibilities

The directors acknowledge their responsibilities for preparing the Annual 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). 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 group and the company 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 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; and

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 group's and the company's transactions and disclose with reasonable accuracy at any time the financial position of the group and the company 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 group and the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

 

LUMESCA Group Limited

Independent Auditor's Report to the Members of LUMESCA Group Limited

Opinion

We have audited the financial statements of LUMESCA Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023, which comprise the Consolidated Profit and Loss Account, Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Balance Sheet, Consolidated Statement of Changes in Equity, Statement of Changes in Equity, Consolidated Statement of Cash Flows, Statement of Cash Flows, and 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 the parent company's affairs as at 31 December 2023 and of the group's loss 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 auditor 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 director's 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 ability to continue as a going concern for a period of at least twelve months from when the original financial statements were 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 included in the annual report, other than the financial statements and our auditor’s report 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

Opinion on other matter 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 Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements.

 

LUMESCA Group Limited

Independent Auditor's Report to the Members of LUMESCA Group Limited (continued)

Matters on which we are required to report by exception

In the light of our 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 and 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 5], 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 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.

Capability of the audit in detecting irregularities, including fraud

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

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:

 

Based on our understanding of the Company and its industry, we identified that the principal risks of non-compliance with laws and regulations related to breaches of UK and European regulatory principles, and we considered the extent to which non-compliance might have a material effect on the financial statements of the Company.

 

We also considered those laws and regulations that have a direct impact on the financial statements of the Company, such as the Companies Act 2006 and UK tax legislation and equivalent local laws and regulations applicable to in-scope components.

 

We have also evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements including the risk of override of controls and determined that the principal risks are related to management bias in accounting estimates and judgemental areas of the financial statements.

 

Audit procedures performed by the engagement team included:

discussions with the Board of Directors and management, regarding consideration of known or suspected instances of non-compliance with laws and regulation and fraud

evaluation and testing of the operating effectiveness of management's controls designed to prevent and detect irregularities;

reviewing relevant meeting minutes including those of the Board of Directors;

identifying and testing journal entries based on risk criteria;

 

LUMESCA Group Limited

Independent Auditor's Report to the Members of LUMESCA Group Limited (continued)

 

We designed our audit procedures to incorporate unpredictability around the nature, timing or extent of our testing; and testing transactions entered into outside of the normal course of the Company's business specifically in respect of acquisitions and disposals.

As part of an audit in accordance with ISAs (UK), we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control;

Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control;

Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

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 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 members as a body, for our audit work, for this report, or for the opinions we have formed.

......................................
John James Taheny (Senior Statutory Auditor)
For and on behalf of Bissell & Brown Midlands Ltd, Statutory Auditor

Charter House
56 High Street
Sutton Coldfield
West Midlands
B72 1UJ

13 September 2024

 

LUMESCA Group Limited

Consolidated Profit and Loss Account for the Year Ended 31 December 2023

Note

2023
£

2022
£

Turnover

3

11,972,359

14,084,992

Cost of sales

 

(8,453,484)

(9,955,680)

Gross profit

 

3,518,875

4,129,312

Administrative expenses

 

4,165,793

4,179,292

Other operating income

4

-

(10,500)

Operating loss

5

(646,918)

(39,480)

Other interest receivable and similar income

6

(109)

(76)

Interest payable and similar expenses

7

29,234

74,226

   

(29,125)

(74,150)

Loss before tax

 

(676,043)

(113,630)

Tax on loss

11

215,556

84,442

Loss for the financial year

 

(460,487)

(29,188)

Profit/(loss) attributable to:

 

Owners of the company

 

(460,487)

(29,188)

 

LUMESCA Group Limited

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

2023
£

2022
£

Loss for the year

(460,487)

(29,188)

Surplus on property, plant and equipment revaluation

232,343

-

Total comprehensive income for the year

(228,144)

(29,188)

Total comprehensive income attributable to:

Owners of the company

(228,144)

(29,188)

 

LUMESCA Group Limited

(Registration number: 02850281)
Consolidated Balance Sheet as at 31 December 2023

Note

2023
£

2022
£

Fixed assets

 

Tangible assets

12

1,489,533

1,332,859

Current assets

 

Stocks

14

1,576,164

1,736,021

Debtors

15

1,064,267

1,586,339

Cash at bank and in hand

 

216,837

607,331

 

2,857,268

3,929,691

Creditors: Amounts falling due within one year

17

(2,785,463)

(2,943,031)

Net current assets

 

71,805

986,660

Total assets less current liabilities

 

1,561,338

2,319,519

Creditors: Amounts falling due after more than one year

17

(625,695)

(884,954)

Provisions for liabilities

19

190,006

11,028

Net assets

 

1,125,649

1,445,593

Capital and reserves

 

Called up share capital

22

8,000

8,000

Capital redemption reserve

32,000

32,000

Revaluation reserve

232,343

-

Merger reserve

315,455

315,455

Retained earnings

537,851

1,090,138

Equity attributable to owners of the company

 

1,125,649

1,445,593

Shareholders' funds

 

1,125,649

1,445,593

Approved and authorised by the Board on 12 September 2024 and signed on its behalf by:
 

.........................................
S M Prais
Director

.........................................
G I Clements
Company secretary and director

 
     
 

LUMESCA Group Limited

(Registration number: 02850281)
Balance Sheet as at 31 December 2023

Note

2023
£

2022
£

Fixed assets

 

Tangible assets

12

1,439,646

1,266,702

Investments

13

975,504

1,015,504

 

2,415,150

2,282,206

Current assets

 

Stocks

14

950,517

1,068,894

Debtors

15

708,377

1,167,451

Cash at bank and in hand

 

170,161

497,052

 

1,829,055

2,733,397

Creditors: Amounts falling due within one year

17

(2,612,964)

(2,820,044)

Net current liabilities

 

(783,909)

(86,647)

Total assets less current liabilities

 

1,631,241

2,195,559

Creditors: Amounts falling due after more than one year

17

(531,221)

(675,401)

Provisions for liabilities

19

190,006

11,028

Net assets

 

1,290,026

1,531,186

Capital and reserves

 

Called up share capital

22

8,000

8,000

Capital redemption reserve

32,000

32,000

Revaluation reserve

232,343

-

Retained earnings

1,017,683

1,491,186

Shareholders' funds

 

1,290,026

1,531,186

The company made a loss after tax for the financial year of £381,703 (2022 - profit of £162,210).

Approved and authorised by the Board on 12 September 2024 and signed on its behalf by:
 

.........................................
S M Prais
Director

.........................................
G I Clements
Company secretary and director

 
     
 

LUMESCA Group Limited

Consolidated Statement of Changes in Equity for the Year Ended 31 December 2023
Equity attributable to the parent company

Share capital
£

Capital redemption reserve
£

Merger reserve
£

Retained earnings
£

Total
£

Total equity
£

At 1 January 2022

8,000

32,000

-

1,221,326

1,261,326

1,261,326

Loss for the year

-

-

-

(29,188)

(29,188)

(29,188)

Dividends

-

-

-

(102,000)

(102,000)

(102,000)

Merger adjustment, increase in equity

-

-

315,455

-

315,455

315,455

At 31 December 2022

8,000

32,000

315,455

1,090,138

1,445,593

1,445,593


 

Share capital
£

Capital redemption reserve
£

Revaluation reserve
£

Merger reserve
£

Retained earnings
£

Total
£

Total equity
£

At 1 January 2023

8,000

32,000

-

315,455

1,090,138

1,445,593

1,445,593

Loss for the year

-

-

-

-

(460,487)

(460,487)

(460,487)

Other comprehensive income

-

-

232,343

-

-

232,343

232,343

Total comprehensive income

-

-

232,343

-

(460,487)

(228,144)

(228,144)

Dividends

-

-

-

-

(91,800)

(91,800)

(91,800)

At 31 December 2023

8,000

32,000

232,343

315,455

537,851

1,125,649

1,125,649

 

LUMESCA Group Limited

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


 

Share capital
£

Capital redemption reserve
£

Retained earnings
£

Total
£

At 1 January 2022

8,000

32,000

1,430,976

1,470,976

Profit for the year

-

-

162,210

162,210

Dividends

-

-

(102,000)

(102,000)

At 31 December 2022

8,000

32,000

1,491,186

1,531,186


 

Share capital
£

Capital redemption reserve
£

Revaluation reserve
£

Retained earnings
£

Total
£

At 1 January 2023

8,000

32,000

-

1,491,186

1,531,186

Loss for the year

-

-

-

(381,703)

(381,703)

Other comprehensive income

-

-

232,343

-

232,343

Total comprehensive income

-

-

232,343

(381,703)

(149,360)

Dividends

-

-

-

(91,800)

(91,800)

At 31 December 2023

8,000

32,000

232,343

1,017,683

1,290,026


 

 

LUMESCA Group Limited

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

Note

2023
£

2022
£

Cash flows from operating activities

Loss for the year

 

(460,487)

(29,188)

Adjustments to cash flows from non-cash items

 

Depreciation and amortisation

5

99,244

98,578

Consolidation foreign exchange

 

47,597

8,010

Profit on disposal of tangible assets

-

(6,373)

Finance income

6

(109)

(76)

Finance costs

7

62,082

49,209

Income tax expense

11

(215,556)

(84,442)

 

(467,229)

35,718

Working capital adjustments

 

Decrease/(increase) in stocks

14

159,857

(165,743)

Decrease in trade debtors

15

522,072

211,872

(Decrease)/increase in trade creditors

17

(315,988)

339,739

Cash generated from operations

 

(101,288)

421,586

Income taxes paid

11

(11,368)

(27,564)

Net cash flow from operating activities

 

(112,656)

394,022

Cash flows from investing activities

 

Interest received

109

76

Acquisitions of tangible assets

(23,575)

(201,557)

Proceeds from sale of tangible assets

 

-

6,816

Net cash flows from investing activities

 

(23,466)

(194,665)

Cash flows from financing activities

 

Interest paid

7

(62,082)

(49,209)

Proceeds from bank borrowing draw downs

 

(186,217)

(330,959)

Repayment of other borrowing

 

60,000

150,000

Payments to finance lease creditors

 

(20,274)

23,299

Dividends paid

(91,800)

(102,000)

Net cash flows from financing activities

 

(300,373)

(308,869)

Net decrease in cash and cash equivalents

 

(436,495)

(109,512)

Cash and cash equivalents at 1 January

 

607,331

716,843

Cash and cash equivalents at 31 December

 

170,836

607,331

 

LUMESCA Group Limited

Statement of Cash Flows for the Year Ended 31 December 2023

Note

2023
£

2022
£

Cash flows from operating activities

(Loss)/profit for the year

 

(381,703)

162,210

Adjustments to cash flows from non-cash items

 

Depreciation and amortisation

5

75,960

70,955

Loss on disposal of tangible assets

-

443

Finance income

-

(85,800)

Finance costs

106,385

132,634

Income tax expense

11

(178,978)

(42,365)

 

(378,336)

238,077

Working capital adjustments

 

Decrease/(increase) in stocks

14

118,377

(470,853)

Decrease in trade debtors

15

459,074

175,754

(Decrease)/increase in trade creditors

17

(249,863)

588,456

Net cash flow from operating activities

 

(50,748)

531,434

Cash flows from investing activities

 

Interest received

-

85,800

Acquisitions of tangible assets

(16,561)

(195,201)

Net cash flows from investing activities

 

(16,561)

(109,401)

Cash flows from financing activities

 

Interest paid

(66,385)

(41,634)

Proceeds from bank borrowing draw downs

 

(155,646)

(317,087)

Repayment of bank borrowing

 

-

(200,000)

Repayment of other borrowing

 

60,000

150,000

Payments to finance lease creditors

 

(10,734)

(10,167)

Dividends paid

(91,800)

(102,000)

Net cash flows from financing activities

 

(264,565)

(520,888)

Net decrease in cash and cash equivalents

 

(331,874)

(98,855)

Cash and cash equivalents at 1 January

 

497,052

595,907

Cash and cash equivalents at 31 December

 

165,178

497,052

 

LUMESCA Group Limited

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

1

General information

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

The address of its registered office is:
Spectrum Point
164 Clapgate Lane
Birmingham
B32 3DE
United Kingdom

These financial statements were authorised for issue by the Board on 12 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 were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland and the Companies Act 2006'.

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.

The financial statements are presented in sterling which is the functional currency of the company and rounded to the nearest £.

Basis of consolidation

The consolidated financial statements consolidate the financial statements of the company and its subsidiary undertakings drawn up to 31 December 2023.

A subsidiary is an entity controlled by the company. Control is achieved where the company has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.

The results of subsidiaries acquired or disposed of during the year are included in the Profit and Loss Account from the effective date of acquisition or up to the effective date of disposal, as appropriate. Where necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by the group.

The purchase method of accounting is used to account for business combinations that result in the acquisition of subsidiaries by the group. The cost of a business combination is measured as the fair value of the assets given, equity instruments issued and liabilities incurred or assumed at the date of exchange, plus costs directly attributable to the business combination. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. Any excess of the cost of the business combination over the acquirer’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities recognised is recorded as goodwill.

 

LUMESCA Group Limited

Notes to the Financial Statements for the Year Ended 31 December 2023 (continued)

2

Accounting policies (continued)

Inter-company transactions, balances and unrealised gains on transactions between the company and its subsidiaries, which are related parties, are eliminated in full.

Intra-group losses are also eliminated but may indicate an impairment that requires recognition in the consolidated financial statements.

Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the group. Non-controlling interests in the net assets of consolidated subsidiaries are identified separately from the group’s equity therein. Non-controlling interests consist of the amount of those interests at the date of the original business combination and the non-controlling shareholder’s share of changes in equity since the date of the combination.

Going concern

The financial statements have been prepared on the going concern basis. In adopting the going concern basis for preparing the financial statements, the Directors have prepared cash flow forecasts for a period of 14 months from the date of approval of these financial statements, which indicate, that taking account of reasonably possible downsides, the company will have sufficient funds to meet its liabilities as they fall due for that period.

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 group’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts and after eliminating sales within the group.

The group 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 group's activities.

Foreign currency transactions and balances

Transactions in foreign currencies are translated to the Company’s functional currency at the foreign exchange rate ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are retranslated to the functional currency at the foreign exchange rate ruling at that date. Non-monetary assets and liabilities that are measured in terms of historical cost in a foreign currency are translated using the exchange rate at the date of the transaction. Foreign exchange differences arising on translation are recognised in the profit and loss account.

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 current income 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 group operates and generates taxable income.

Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the consolidated financial statements.

Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used.

 

LUMESCA Group Limited

Notes to the Financial Statements for the Year Ended 31 December 2023 (continued)

2

Accounting policies (continued)

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 improvements

Straight line over the life of the lease

Computer & fixtures

25% to 33% straight line basis

Freehold buildings

Market value

Integral freehold improvements

25 years straight line basis

Business combinations

Business combinations are accounted for using the purchase method. The consideration for each acquisition is measured at the aggregate of the fair values at acquisition date of assets given, liabilities incurred or assumed, and equity instruments issued by the group in exchange for control of the acquired, plus any costs directly attributable to the business combination. When a business combination agreement provides for an adjustment to the cost of the combination contingent on future events, the group includes the estimated amount of that adjustment in the cost of the combination at the acquisition date if the adjustment is probable and can be measured reliably.

Investments

Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.


Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable.

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 group will not be able to collect all amounts due according to the original terms of the receivables.

 

LUMESCA Group Limited

Notes to the Financial Statements for the Year Ended 31 December 2023 (continued)

2

Accounting policies (continued)

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 and work in progress 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.

Rental equipment is shown within closing stock and is stated at the lower of cost and net realisable value.

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 group 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 group 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 group’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

 

LUMESCA Group Limited

Notes to the Financial Statements for the Year Ended 31 December 2023 (continued)

2

Accounting policies (continued)

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the group 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.

Financial instruments

Classification
Trade debtors
Trade debtors which are receivable within one year and which do not constitute a financing transaction are initially measured at the transaction price. Trade debtors are subsequently measured at amortised cost, being the transaction price less any amounts settled and any impairment losses.

Where the arrangement with a trade debtor constitutes a financing transaction, the debtor is initially and subsequently measured at the present value of future payments discounted at a market rate of interest for a similar debt instrument.

A provision for impairment of trade debtors is established when there is objective evidence that the amounts due will not be collected according to the original terms of the contract. Impairment losses are recognised in profit or loss for the excess of the carrying value of the trade debtor over the present value of the future cash flows discounted using the original effective interest rate. Subsequent reversals of an impairment loss that objectively relate to an event occurring after the impairment loss was recognised, are recognised immediately in profit or loss.

 Recognition and measurement
Financial instruments are classified as liabilities and equity instruments 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 Company after deducting all of its liabilities.

Trade creditors
Trade creditors payable within one year that do not constitute a financing transaction are initially measured at the transaction price and subsequently measured at amortised cost, being the transaction price less any amounts settled.

Where the arrangement with a trade creditor constitutes a financing transaction, the creditor is initially and subsequently measured at the present value of future payments discounted at a market rate of interest for a similar instrument.

Borrowings
Borrowings are initially recognised at the transaction price, including transaction costs, and subsequently measured at amortised cost using the effective interest method. Interest expense is recognised on the basis of the effective interest method and is included in interest payable and other similar charges.

Commitments to receive a loan are measured at cost less impairment.

 Impairment
A financial asset is derecognised only when the contractual rights to cash flows expire or are settled, or substantially all the risks and rewards of ownership are transferred to another party, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party. A financial liability (or part thereof) is derecognised when the obligation specified in the contract is discharged, cancelled or expires.

 

LUMESCA Group Limited

Notes to the Financial Statements for the Year Ended 31 December 2023 (continued)

3

Turnover

The analysis of the group's Turnover for the year from continuing operations is as follows:

2023
£

2022
£

Sale of goods

11,757,257

13,691,035

Rendering of services

161,465

330,198

Rental product income

53,637

63,759

11,972,359

14,084,992

The analysis of the group's Turnover for the year by market is as follows:

2023
£

2022
£

UK

5,335,112

6,742,858

Europe

5,522,156

6,051,536

Rest of world

1,115,091

1,290,598

11,972,359

14,084,992

4

Other operating income

The analysis of the group's other operating income for the year is as follows:

2023
£

2022
£

Miscellaneous other operating income

-

10,500

5

Operating loss

Arrived at after charging/(crediting)

2023
£

2022
£

Depreciation expense

99,244

98,578

Profit on disposal of property, plant and equipment

-

(6,373)

6

Other interest receivable and similar income

2023
£

2022
£

Interest income on bank deposits

109

76

 

LUMESCA Group Limited

Notes to the Financial Statements for the Year Ended 31 December 2023 (continued)

7

Interest payable and similar expenses

2023
£

2022
£

Interest on bank overdrafts and borrowings

60,240

46,851

Interest on obligations under finance leases and hire purchase contracts

1,842

2,358

Foreign exchange (losses)/gains

(32,848)

25,017

29,234

74,226

8

Staff costs

The aggregate payroll costs (including directors' remuneration) were as follows:

2023
£

2022
£

Wages and salaries

2,143,359

2,369,179

Social security costs

283,969

293,237

Pension costs, defined contribution scheme

129,309

125,100

Other employee expense

13,084

31,668

2,569,721

2,819,184

The average number of persons employed by the group (including directors) during the year, analysed by category was as follows:

2023
No.

2022
No.

Administration and support

26

34

Sales, marketing and distribution

33

35

59

69

9

Directors' remuneration

The directors' remuneration for the year was as follows:

2023
£

2022
£

Remuneration

172,555

159,753

Contributions paid to money purchase schemes

10,000

13,900

182,555

173,653

10

Auditors' remuneration

2023
£

2022
£

Audit of these financial statements

36,392

19,915


 

 

LUMESCA Group Limited

Notes to the Financial Statements for the Year Ended 31 December 2023 (continued)

11

Taxation

Tax charged/(credited) in the consolidated profit and loss account

2023
£

2022
£

Current taxation

UK corporation tax

11,019

13,738

UK corporation tax adjustment to prior periods

-

(2)

11,019

13,736

Deferred taxation

Arising from origination and reversal of timing differences

(226,575)

(98,178)

Tax receipt in the income statement

(215,556)

(84,442)

The tax on profit before tax for the year is the same as the standard rate of corporation tax in the UK (2022 - the same as the standard rate of corporation tax in the UK) of 25% (2022 - 25%).

The differences are reconciled below:

2023
£

2022
£

Loss before tax

(676,043)

(113,630)

Corporation tax at standard rate

(169,011)

(28,408)

Increase/(decrease) in UK and foreign current tax from adjustment for prior periods

910

(2)

Tax increase/(decrease) from effect of capital allowances and depreciation

59

(9,205)

Effect of expense not deductible in determining taxable profit (tax loss)

10,000

22,750

Tax increase from effect of unrelieved tax losses carried forward

-

9,376

Effect of foreign tax rates

2,102

6,366

Tax decrease from effect of dividends from UK companies

-

(21,450)

Decrease from effect of tax incentives

(48,618)

(63,869)

Tax decrease from other tax effects

(10,998)

-

Total tax credit

(215,556)

(84,442)

Deferred tax

Group

Deferred tax assets and liabilities

2023

Asset
£

Liability
£

Accelerated depreciation

-

44,177

Tax losses

234,182

-

234,182

44,177

 

LUMESCA Group Limited

Notes to the Financial Statements for the Year Ended 31 December 2023 (continued)

11

Taxation (continued)

2022

Asset
£

Liability
£

Accelerated depreciation

-

54,065

Tax losses

65,092

-

65,092

54,065

 

LUMESCA Group Limited

Notes to the Financial Statements for the Year Ended 31 December 2023 (continued)

11

Taxation (continued)

Company

Deferred tax assets and liabilities

2023

Asset
£

Liability
£

Accelerated capital allowances

-

44,177

Tax losses

234,182

-

234,182

44,177

2022

Asset
£

Liability
£

Accelerated capital allowances

-

54,065

Tax losses

65,092

-

65,092

54,065

12

Tangible assets

Group

Land and buildings
£

Furniture, fittings and equipment
 £

Plant and machinery
£

Total
£

Cost or valuation

At 1 January 2023

1,219,970

860

545,010

1,765,840

Revaluations

224,084

-

-

224,084

Additions

-

1,225

22,350

23,575

At 31 December 2023

1,444,054

2,085

567,360

2,013,499

Depreciation

At 1 January 2023

163,126

351

269,504

432,981

Charge for the year

26,245

387

72,612

99,244

Revaluation

(8,259)

-

-

(8,259)

At 31 December 2023

181,112

738

342,116

523,966

Carrying amount

At 31 December 2023

1,262,942

1,347

225,244

1,489,533

At 31 December 2022

1,056,844

509

275,506

1,332,859

Included within the net book value of land and buildings above is £1,260,206 (2022 - £1,037,585) in respect of freehold land and buildings and £2,736 (2022 - £19,259) in respect of short leasehold land and buildings.
 

 

LUMESCA Group Limited

Notes to the Financial Statements for the Year Ended 31 December 2023 (continued)

12

Tangible assets (continued)

Revaluation

The fair value of the group's Freehold property was revalued on 31 December 2023. An independent valuer was not involved.
The freehold property was revalued by Chivers Commercial.
Had this class of asset been measured on a historical cost basis, the carrying amount would have been £1,027,862 (2022 - £1,050,444).
 

Company

Land and buildings
£

Plant and machinery
£

Total
£

Cost or valuation

At 1 January 2023

1,161,127

431,501

1,592,628

Revaluations

224,084

-

224,084

Additions

-

16,561

16,561

At 31 December 2023

1,385,211

448,062

1,833,273

Depreciation

At 1 January 2023

110,683

215,243

325,926

Charge for the year

19,845

56,115

75,960

Revaluation

(8,259)

-

(8,259)

At 31 December 2023

122,269

271,358

393,627

Carrying amount

At 31 December 2023

1,262,942

176,704

1,439,646

At 31 December 2022

1,050,444

216,258

1,266,702

Included within the net book value of land and buildings above is £1,260,206 (2022 - £1,037,585) in respect of freehold land and buildings and £2,736 (2022 - £12,859) in respect of short leasehold land and buildings.
 

Revaluation

The fair value of the company's Freehold property was revalued on 31 December 2023. An independent valuer was not involved.
The freehold property was revalued by Chivers Commercial.
Had this class of asset been measured on a historical cost basis, the carrying amount would have been £1,027,862 (2022 - £1,050,444).
 

13

Investments

Company

2023
£

2022
£

Investments in subsidiaries

975,504

1,015,504

 

LUMESCA Group Limited

Notes to the Financial Statements for the Year Ended 31 December 2023 (continued)

13

Investments (continued)

Subsidiaries

£

Cost or valuation

At 1 January 2023

1,192,153

Provision

At 1 January 2023

176,649

Provision

40,000

At 31 December 2023

216,649

Carrying amount

At 31 December 2023

975,504

At 31 December 2022

1,015,504

Details of undertakings

Details of the investments (including principal place of business of unincorporated entities) in which the company holds 20% or more of the nominal value of any class of share capital are as follows:

Undertaking

Registered office

Holding

Proportion of voting rights and shares held

2023

2022

Subsidiary undertakings

LUMESCA GmbH

28 Gablonzer Strasse
Karlsruhe
D-76185

Germany

Ordinary

100%

100%

LUMESCA Group Limited

Spectrum Point
164 Clapgate Lane
Birmingham
B32 3DE

United Kingdom

Ordinary

100%

100%

Color Confidence Limited

Spectrum Point
164 Clapgate Lane
Birmingham
B32 3DE

United Kingdom

Ordinary

100%

100%

The Flash Centre Limited

Spectrum Point
164 Clapgate Lane
Birmingham
B32 3DE

United Kingdom

Ordinary and Preference

100%

100%

Keyphoto Limited

Spectrum Point
164 Clapgate Lane
Birmingham
B32 3DE

United Kingdom

Ordinary

100%

100%

 

LUMESCA Group Limited

Notes to the Financial Statements for the Year Ended 31 December 2023 (continued)

13

Investments (continued)

Subsidiary undertakings

LUMESCA GmbH

The principal activity of LUMESCA GmbH is the distribution of products to the graphic, design and printing industries.

LUMESCA Group Limited

The principal activity of LUMESCA Group Limited is the distribution and development of products, software and services to the digital imaging and graphics markets including the photographic, design and printing industries.

Color Confidence Limited

The principal activity of Color Confidence Limited is that of a non-trading entity.

The Flash Centre Limited

The principal activity of The Flash Centre Limited is the retail sale of photographic products and accessories.

Keyphoto Limited

The principal activity of Keyphoto Limited is the provision of photographic supplies.

14

Stocks

 

Group

Company

2023
£

2022
£

2023
£

2022
£

Finished goods and goods for resale

1,576,164

1,736,021

950,517

1,068,894

15

Debtors

   

Group

Company

Current

Note

2023
£

2022
£

2023
£

2022
£

Trade debtors

 

743,900

1,277,786

633,591

1,053,363

Amounts owed by related parties

23

2

-

-

-

Other debtors

 

220,180

167,937

13,002

12,462

Prepayments

 

100,185

140,616

61,784

101,626

   

1,064,267

1,586,339

708,377

1,167,451

16

Cash and cash equivalents

 

LUMESCA Group Limited

Notes to the Financial Statements for the Year Ended 31 December 2023 (continued)

16

Cash and cash equivalents (continued)

 

Group

Company

2023
£

2022
£

2023
£

2022
£

Cash at bank

122,452

355,818

75,776

245,539

Short-term deposits

94,385

251,513

94,385

251,513

216,837

607,331

170,161

497,052

Bank overdrafts

(46,001)

-

(4,983)

-

Cash and cash equivalents in statement of cash flows

170,836

607,331

165,178

497,052

17

Creditors

   

Group

Company

Note

2023
£

2022
£

2023
£

2022
£

Due within one year

 

Loans and borrowings

18

532,448

373,679

380,969

338,186

Trade creditors

 

1,817,375

2,048,727

1,549,267

1,763,745

Amounts due to related parties

23

-

-

518,286

516,143

Social security and other taxes

 

286,259

307,555

70,873

88,181

Outstanding defined contribution pension costs

 

1,896

2,065

-

-

Other payables

 

15,545

30,659

7,387

15,532

Accruals

 

130,032

178,089

86,182

98,257

Corporation tax liability

11

1,908

2,257

-

-

 

2,785,463

2,943,031

2,612,964

2,820,044

Due after one year

 

Loans and borrowings

18

625,695

884,954

531,221

675,401

18

Loans and borrowings

Current loans and borrowings

 

Group

Company

2023
£

2022
£

2023
£

2022
£

Bank borrowings

236,846

204,063

155,646

177,451

Bank overdrafts

46,001

-

4,983

-

Hire purchase contracts

39,601

19,616

10,340

10,735

Other borrowings

210,000

150,000

210,000

150,000

532,448

373,679

380,969

338,186

 

LUMESCA Group Limited

Notes to the Financial Statements for the Year Ended 31 December 2023 (continued)

18

Loans and borrowings (continued)

Non-current loans and borrowings

 

Group

Company

2023
£

2022
£

2023
£

2022
£

Bank borrowings

625,695

844,695

531,221

665,062

Hire purchase contracts

-

40,259

-

10,339

625,695

884,954

531,221

675,401

Group

Lloyds Bank Plc holds fixed and floating charges over the undertaking and all property and assets present and future, including goodwill, book debts, uncalled capital, buildings, fixtures and fixed plant and machinery.

Lloyds Bank Plc holds a legal charge over the freehold property.

Bank borrowings

The fixed and floating charges are denominated in GBP with a nominal interest rate of base rate plus 2.37% to 2.62%. The carrying amount at year end is £Nil (2022 - £842,513).

19

Provisions for liabilities

Group

Deferred tax
£

Total
£

At 1 January 2023

(11,028)

(11,028)

Increase (decrease) in existing provisions

(178,978)

(178,978)

At 31 December 2023

(190,006)

(190,006)

Company

Deferred tax
£

Total
£

At 1 January 2023

(11,028)

(11,028)

Increase (decrease) in existing provisions

(178,978)

(178,978)

At 31 December 2023

(190,006)

(190,006)

20

Pension and other schemes

Defined contribution pension scheme

The group operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the group to the scheme and amounted to £129,309 (2022 - £125,100).

Contributions totalling £1,896 (2022 - £2,065) were payable to the scheme at the end of the year and are included in creditors.

 

LUMESCA Group Limited

Notes to the Financial Statements for the Year Ended 31 December 2023 (continued)

21

Obligations under leases and hire purchase contracts

Group

Operating leases

The total of future minimum lease payments is as follows:

2023
£

2022
£

Not later than one year

143,600

142,201

Later than one year and not later than five years

333,433

462,867

Later than five years

-

14,167

477,033

619,235

The amount of non-cancellable operating lease payments recognised as an expense during the year was £179,866 (2022 - £179,079).

Company

Operating leases

The total of future minimum lease payments is as follows:

2023
£

2022
£

Not later than one year

73,100

73,100

Later than one year and not later than five years

114,767

187,867

187,867

260,967

The amount of non-cancellable operating lease payments recognised as an expense during the year was £54,792 (2022 - £78,850).

22

Share capital

Allotted, called up and fully paid shares

2023

2022

No.

£

No.

£

Ordinary of £1 each

7,100

7,100

7,100

7,100

A Ordinary of £1 each

900

900

900

900

8,000

8,000

8,000

8,000

Rights, preferences and restrictions

Ordinary shares have the following rights, preferences and restrictions:
Holders of the ordinary share capital have a right to vote and receive dividends.

A Ordinary have the following rights, preferences and restrictions:
Rank pari passu in all respects with the ordinary shares

 

LUMESCA Group Limited

Notes to the Financial Statements for the Year Ended 31 December 2023 (continued)

23

Related party transactions

Company

Summary of transactions with other related parties

Lumesca Group Pension Scheme
 

Expenditure with and payables to related parties

2023

Other related parties
£

Leases

50,000

2022

Other related parties
£

Leases

50,000