REGISTERED NUMBER: 13636144 (England and Wales) |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTOR AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
FOR |
BARNES LINCOLN INVESTMENTS LIMITED |
REGISTERED NUMBER: 13636144 (England and Wales) |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTOR AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
FOR |
BARNES LINCOLN INVESTMENTS LIMITED |
BARNES LINCOLN INVESTMENTS LIMITED (REGISTERED NUMBER: 13636144) |
CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
for the year ended 31 December 2023 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Director | 3 |
Report of the Independent Auditors | 4 |
Consolidated Income Statement | 7 |
Consolidated Other Comprehensive Income | 8 |
Consolidated Balance Sheet | 9 |
Company Balance Sheet | 10 |
Consolidated Statement of Changes in Equity | 11 |
Company Statement of Changes in Equity | 12 |
Consolidated Cash Flow Statement | 13 |
Notes to the Consolidated Cash Flow Statement | 14 |
Notes to the Consolidated Financial Statements | 15 |
BARNES LINCOLN INVESTMENTS LIMITED |
COMPANY INFORMATION |
for the year ended 31 December 2023 |
DIRECTOR: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Accountants and Statutory Auditors |
Seven Stars House |
1 Wheler Road |
Coventry |
CV3 4LB |
BARNES LINCOLN INVESTMENTS LIMITED (REGISTERED NUMBER: 13636144) |
GROUP STRATEGIC REPORT |
for the year ended 31 December 2023 |
The director presents his strategic report of the company and the group for the year ended 31 December 2023. |
REVIEW OF BUSINESS |
The group was formed in October 2021 after the company acquired two subsidiary undertakings from Fox Lima Holdings Limited, as part of a wider group reorganisation. |
The year to 31 December 2023 therefore represents the group's first 12 month period of trading and as such the results are not entirely comparable with the previous, longer, accounting period to 31 December 2022. |
The year under review has remained challenging, although 2023 was less volatile than the period to 31 December 2022. Accordingly, some pressures on turnover and operating expenditure began to ease in 2023, and listed investment values also saw some recovery. |
Nonetheless, the director remains vigilant of the continued challenges in 2024 and beyond and will seek to drive both further growth and to ensure that costs are adequately controlled. |
Overall, the director is satisfied with group's trading performance. Furthermore, the director is confident that with continued support from both its subsidiary undertakings, as well as its own adequate financial headroom, the company and group can continue to trade as a going concern and as such, the financial statements have been prepared on this basis. |
PRINCIPAL RISKS AND UNCERTAINTIES |
Given the straightforward nature of the business, the director is of the opinion that analysis using key performance indicators is not necessary for an understanding of the performance or position of the company and group. The director is mindful of the potential risks and uncertainties associated with running the company and group. The major risk relates to competition and the director is constantly seeking efficiencies to ensure the company and group continue to be competitive. |
FUTURE DEVELOPMENTS |
The director acknowledges the challenges that the group faces in 2024 not least in maintaining service levels and meeting customer demand, in what remains an uncertain business environment owing to wider economic and political factors. |
Whilst the full impact of these risks cannot be predicted with any certainty, the director believes the group will be able to continue to trade profitably throughout 2024 and beyond. Attention in the short to medium term remains on managing working capital and raw material stock in particular so that lead times can be honoured to keep pace with customer demand for finished goods. |
Cash flow remains healthy, with the director of the opinion that the group can continue to operate within its current and future financial parameters and so continue to meet its debts as they fall due. |
The group's longer term strategy for beyond 2024 is to maintain its market share and profitability and ultimately, to continue to grow. The director has continued to put measures in place to try and expand the markets in which the company operates. |
ON BEHALF OF THE BOARD: |
BARNES LINCOLN INVESTMENTS LIMITED (REGISTERED NUMBER: 13636144) |
REPORT OF THE DIRECTOR |
for the year ended 31 December 2023 |
The director presents his report with the financial statements of the company and the group for the year ended 31 December 2023. |
PRINCIPAL ACTIVITY |
The principal activity of the group in the year under review was that of the manufacture of plastic house and garden ware. |
DIVIDENDS |
No dividends will be distributed for the year ended 31 December 2023. |
DIRECTOR |
P Lanni was the sole director during the period under review. |
DISCLOSURE IN THE STRATEGIC REPORT |
The group's review of business, principal risks and uncertainties and future developments are disclosed within the strategic report. |
STATEMENT OF DIRECTOR'S RESPONSIBILITIES |
The director is responsible for preparing the Group Strategic Report, the Report of the Director and the financial statements in accordance with applicable law and regulations. |
Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is 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 director is 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 director is 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 him to ensure that the financial statements comply with the Companies Act 2006. He is 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 director is 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 he 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. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
BARNES LINCOLN INVESTMENTS LIMITED |
Opinion |
We have audited the financial statements of Barnes Lincoln Investments Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, 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 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 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 director with respect to going concern are described in the relevant sections of this report. |
Other information |
The director is responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Director, 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. |
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 Report of the Director for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Group Strategic Report and the Report of the Director have been prepared in accordance with applicable legal requirements. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
BARNES LINCOLN INVESTMENTS LIMITED |
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 Report of the Director. |
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 director's remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of director |
As explained more fully in the Statement of Director's Responsibilities set out on page three, the director is 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 director determines 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 director is 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 director either intends to liquidate the group or the parent company or to cease operations, or has no realistic alternative but to do so. |
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 audit process includes an assessment of the group's and entity's risk environment, through enquiry of and discussion with management, including an assessment of any key laws and regulations with which the group and company must comply in the ordinary course of its business. |
Additionally, the overall risks of irregular transactions occurring are assessed following our observations and confirmation of the design and implementation of management's controls. Whilst we are mindful of these risks, our audit focus is geared towards the risk of material misstatement in the financial statements as a whole. |
As such, our procedures cannot guarantee that all transactions have been fully compliant with all relevant laws and regulations, including those regulations relating to fraud, as our procedures are not designed to detect all instances of non-compliance. By definition, the risk of our detection of non-compliance is greater where compliance with a law or regulation is removed from the events and transactions reflected in the financial statements. The risk is also greater regarding irregularities due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. |
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. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
BARNES LINCOLN INVESTMENTS LIMITED |
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 |
Chartered Accountants and Statutory Auditors |
Seven Stars House |
1 Wheler Road |
Coventry |
CV3 4LB |
BARNES LINCOLN INVESTMENTS LIMITED (REGISTERED NUMBER: 13636144) |
CONSOLIDATED |
INCOME STATEMENT |
for the year ended 31 December 2023 |
Year ended | Period |
31.12.23 | 22.9.21 to 31.12.22 |
Notes | £ | £ | £ | £ |
TURNOVER | 3 | 18,621,624 | 20,389,076 |
Cost of sales | 14,204,590 | 16,038,066 |
GROSS PROFIT | 4,417,034 | 4,351,010 |
Administrative expenses | 3,716,487 | 4,525,722 |
700,547 | (174,712 | ) |
Other operating income | 358 | 971 |
OPERATING PROFIT/(LOSS) | 5 | 700,905 | (173,741 | ) |
Income from interest in associated undertakings |
526,356 |
23,000,360 |
Interest receivable and similar income | 42,614 | 22,816 |
568,970 | 23,023,176 |
1,269,875 | 22,849,435 |
Amounts written off investments | 6 | - | 118,873 |
Gain/loss on revaluation of investments | (458,702 | ) | 290,821 |
(458,702 | ) | 409,694 |
PROFIT BEFORE TAXATION | 1,728,577 | 22,439,741 |
Tax on profit | 7 | 289,924 | 130,487 |
PROFIT FOR THE FINANCIAL YEAR |
Profit attributable to: |
Owners of the parent | 1,438,653 | 22,309,254 |
BARNES LINCOLN INVESTMENTS LIMITED (REGISTERED NUMBER: 13636144) |
CONSOLIDATED |
OTHER COMPREHENSIVE INCOME |
for the year ended 31 December 2023 |
Period |
22.9.21 |
Year ended | to |
31.12.23 | 31.12.22 |
Notes | £ | £ |
PROFIT FOR THE YEAR | 1,438,653 | 22,309,254 |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
1,438,653 |
22,309,254 |
Total comprehensive income attributable to: |
Owners of the parent | 1,438,653 | 22,309,254 |
BARNES LINCOLN INVESTMENTS LIMITED (REGISTERED NUMBER: 13636144) |
CONSOLIDATED BALANCE SHEET |
31 December 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 9 | 3,476,253 | 3,924,802 |
Tangible assets | 10 | 2,061,344 | 2,001,288 |
Investments | 11 |
Interest in associate | 526,356 | - |
6,063,953 | 5,926,090 |
CURRENT ASSETS |
Stocks | 12 | 4,498,382 | 5,781,528 |
Debtors | 13 | 9,983,924 | 10,143,952 |
Investments | 14 | 3,139,787 | 2,222,243 |
Cash at bank and in hand | 1,917,444 | 246,513 |
19,539,537 | 18,394,236 |
CREDITORS |
Amounts falling due within one year | 15 | 1,627,396 | 1,841,069 |
NET CURRENT ASSETS | 17,912,141 | 16,553,167 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
23,976,094 |
22,479,257 |
PROVISIONS FOR LIABILITIES | 16 | 209,318 | 151,134 |
NET ASSETS | 23,766,776 | 22,328,123 |
CAPITAL AND RESERVES |
Called up share capital | 17 | 18,869 | 18,869 |
Retained earnings | 18 | 23,747,907 | 22,309,254 |
SHAREHOLDERS' FUNDS | 23,766,776 | 22,328,123 |
The financial statements were approved by the director and authorised for issue on 21 August 2024 and were signed by: |
P Lanni - Director |
BARNES LINCOLN INVESTMENTS LIMITED (REGISTERED NUMBER: 13636144) |
COMPANY BALANCE SHEET |
31 December 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 9 |
Tangible assets | 10 |
Investments | 11 |
CURRENT ASSETS |
Debtors | 13 |
Investments | 14 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 15 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CAPITAL AND RESERVES |
Called up share capital | 17 |
Retained earnings | 18 |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | 430,843 | 2,617,643 |
The financial statements were approved by the director and authorised for issue on |
BARNES LINCOLN INVESTMENTS LIMITED (REGISTERED NUMBER: 13636144) |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
for the year ended 31 December 2023 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Changes in equity |
Issue of share capital | 18,869 | - | 18,869 |
Total comprehensive income | - | 22,309,254 | 22,309,254 |
Balance at 31 December 2022 | 18,869 | 22,309,254 | 22,328,123 |
Changes in equity |
Total comprehensive income | - | 1,438,653 | 1,438,653 |
Balance at 31 December 2023 | 18,869 | 23,747,907 | 23,766,776 |
BARNES LINCOLN INVESTMENTS LIMITED (REGISTERED NUMBER: 13636144) |
COMPANY STATEMENT OF CHANGES IN EQUITY |
for the year ended 31 December 2023 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Changes in equity |
Issue of share capital | - |
Total comprehensive income | - |
Balance at 31 December 2022 |
Changes in equity |
Total comprehensive income | - |
Balance at 31 December 2023 |
BARNES LINCOLN INVESTMENTS LIMITED (REGISTERED NUMBER: 13636144) |
CONSOLIDATED CASH FLOW STATEMENT |
for the year ended 31 December 2023 |
Period |
22.9.21 |
Year ended | to |
31.12.23 | 31.12.22 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 3,232,143 | 743,901 |
Tax paid | (396,465 | ) | (476,253 | ) |
Net cash from operating activities | 2,835,678 | 267,648 |
Cash flows from investing activities |
Purchase of tangible fixed assets | (777,367 | ) | (216,807 | ) |
Sale of tangible fixed assets | 77,324 | 52,950 |
Sale of fixed asset investments | 2,195,380 | 584,788 |
Overdrafts acquired from subsidiaries | - | (272,598 | ) |
Purchase of current asset investments | (2,702,698 | ) | (3,192,565 | ) |
Interest received | 42,614 | 22,816 |
Dividends received | - | 3,000,280 |
Net cash from investing activities | (1,164,747 | ) | (21,136 | ) |
Cash flows from financing activities |
Share issue | - | 1 |
Net cash from financing activities | - | 1 |
Increase in cash and cash equivalents | 1,670,931 | 246,513 |
Cash and cash equivalents at beginning of year |
2 |
246,513 |
- |
Cash and cash equivalents at end of year | 2 | 1,917,444 | 246,513 |
BARNES LINCOLN INVESTMENTS LIMITED (REGISTERED NUMBER: 13636144) |
NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT |
for the year ended 31 December 2023 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
Period |
22.9.21 |
Year ended | to |
31.12.23 | 31.12.22 |
£ | £ |
Profit before taxation | 1,728,577 | 22,439,741 |
Depreciation charges | 1,137,235 | 1,662,984 |
(Profit)/loss on disposal of fixed assets | (223 | ) | 39,454 |
(Gain)/loss on revaluation of fixed assets | (458,702 | ) | 290,821 |
Impairment of investment in associate | - | 18,868 |
Finance income | (568,970 | ) | (23,023,176 | ) |
1,837,917 | 1,428,692 |
Decrease/(increase) in stocks | 1,283,146 | (2,230,599 | ) |
Decrease in trade and other debtors | 238,771 | 2,406,472 |
Decrease in trade and other creditors | (127,691 | ) | (860,664 | ) |
Cash generated from operations | 3,232,143 | 743,901 |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 31 December 2023 |
31.12.23 | 1.1.23 |
£ | £ |
Cash and cash equivalents | 1,917,444 | 246,513 |
Period ended 31 December 2022 |
31.12.22 | 22.9.21 |
£ | £ |
Cash and cash equivalents | 246,513 | - |
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 | 246,513 | 1,670,931 | 1,917,444 |
246,513 | 1,670,931 | 1,917,444 |
Liquid resources |
Current asset investments | 2,222,243 | 917,544 | 3,139,787 |
2,222,243 | 917,544 | 3,139,787 |
Total | 2,468,756 | 2,588,475 | 5,057,231 |
BARNES LINCOLN INVESTMENTS LIMITED (REGISTERED NUMBER: 13636144) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
for the year ended 31 December 2023 |
1. | STATUTORY INFORMATION |
Barnes Lincoln Investments Limited is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
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. The financial statements have been prepared under the historical cost convention, as modified by the revaluation of certain assets. |
The accounts have been prepared in accordance with applicable accounting standards. The principal accounting policies adopted in the preparation of the financial statements are set out below. |
Basis of consolidation |
The consolidated financial statements incorporate those of Barnes Lincoln Investments Limited and all of its subsidiary undertakings, together with the group's share of the results of associates. All financial statements are made up to 31 December 2023. |
Related party exemption |
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements. |
Critical accounting judgements and key sources of estimation uncertainty |
The company and group make estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below. |
Accounting estimates: |
i) Inventory provisioning |
The group commits to significant stock holdings of a wide range of consumable goods which it manufactures internally. Demand for such items can vary and there is a risk that items may be held for a significant time and for which a future sale is not guaranteed. When calculating the inventory provision, management consider both the historic movement of individual lines and the wider market appetite for the stock lines, as this may necessitate a mode of sale or resale value that was not originally intended. |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable net of VAT and trade discounts. The policies adopted for the recognition of turnover are as follows:- |
Sale of goods |
Turnover from the sale of goods is recognised when significant risks and rewards of ownership of the goods have transferred to the buyer, the amount of turnover can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the company and the costs incurred or to be incurred in respect of the transaction can be measured reliably. This is usually on despatch of goods. |
Goodwill |
BARNES LINCOLN INVESTMENTS LIMITED (REGISTERED NUMBER: 13636144) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 December 2023 |
2. | ACCOUNTING POLICIES - continued |
Tangible fixed assets |
Tangible fixed assets are stated at cost less accumulated depreciation. Cost includes costs directly attributable to making the asset capable of operating as intended. |
Depreciation is provided on all tangible fixed assets, other than freehold land and buildings, at rates calculated to write each asset down to its estimated residual value evenly over its expected useful life, as follows: |
Plant and machinery | over 4 to 10 years or estimate of useful hours |
Equipment, fixtures and fittings | over 3 to 5 years |
Motor vehicles | over 4 years |
Investments in subsidiaries |
Investments in subsidiary undertakings are stated at cost, less impairment. |
Investments in associates |
Investments in associated undertakings are stated at cost, less impairment. |
Stocks |
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. Cost includes all costs of purchase and other costs incurred in bringing stock to its present location and condition. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, 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 balance sheet date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet 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. |
Foreign currencies |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result. |
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. |
BARNES LINCOLN INVESTMENTS LIMITED (REGISTERED NUMBER: 13636144) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 December 2023 |
2. | ACCOUNTING POLICIES - continued |
Financial instruments |
Loans and borrowings are initially recognised at the transaction price including transaction costs. Subsequently, they are measured at amortised cost using the effective interest rate method, less impairment. |
Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the income statement. |
Current asset investments |
Current asset investments, representing listed investments, are shown at market value. Any aggregate surplus or deficit arising from changes in fair value is recognised in the income statement. |
3. | TURNOVER |
The turnover and profit before taxation are attributable to the one principal activity of the group. |
An analysis of turnover by geographical market is given below: |
Period |
22.9.21 |
Year ended | to |
31.12.23 | 31.12.22 |
£ | £ |
United Kingdom | 16,353,697 | 18,638,220 |
Europe | 2,005,544 | 1,495,290 |
Rest of world | 262,383 | 255,566 |
18,621,624 | 20,389,076 |
All turnover is derived from the sale of goods. |
4. | EMPLOYEES AND DIRECTORS |
Period |
22.9.21 |
Year ended | to |
31.12.23 | 31.12.22 |
£ | £ |
Wages and salaries | 3,814,706 | 4,619,776 |
Social security costs | 324,252 | 389,193 |
Other pension costs | 68,515 | 80,661 |
4,207,473 | 5,089,630 |
The average number of employees during the year was as follows: |
Period |
22.9.21 |
Year ended | to |
31.12.23 | 31.12.22 |
Distribution | 21 | 22 |
Production | 44 | 48 |
Administration | 31 | 35 |
BARNES LINCOLN INVESTMENTS LIMITED (REGISTERED NUMBER: 13636144) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 December 2023 |
4. | EMPLOYEES AND DIRECTORS - continued |
Period |
22.9.21 |
Year ended | to |
31.12.23 | 31.12.22 |
£ | £ |
Director's remuneration | - | - |
5. | OPERATING PROFIT/(LOSS) |
The operating profit (2022 - operating loss) is stated after charging/(crediting): |
Period |
22.9.21 |
Year ended | to |
31.12.23 | 31.12.22 |
£ | £ |
Depreciation - owned assets | 688,686 | 1,102,298 |
(Profit)/loss on disposal of fixed assets | (223 | ) | 39,454 |
Goodwill amortisation | 448,549 | 560,686 |
Auditors' remuneration | 19,870 | 23,635 |
Reversal of impairment loss in associated undertaking | (18,868 | ) | - |
6. | AMOUNTS WRITTEN OFF INVESTMENTS |
Period |
22.9.21 |
Year ended | to |
31.12.23 | 31.12.22 |
£ | £ |
Amounts written off |
investments | - | 118,873 |
Amounts written off in the prior period included an impairment of the group's investment in its associated undertaking, Fox Lima Holdings Limited and provisions of £100,005 in respect of amounts for which the group has an obligation. |
7. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
Period |
22.9.21 |
Year ended | to |
31.12.23 | 31.12.22 |
£ | £ |
Current tax: |
UK corporation tax | 231,740 | 236,018 |
Deferred tax | 58,184 | (105,531 | ) |
Tax on profit | 289,924 | 130,487 |
UK corporation tax has been charged at 25 % (2022 - 19 %). |
BARNES LINCOLN INVESTMENTS LIMITED (REGISTERED NUMBER: 13636144) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 December 2023 |
7. | TAXATION - continued |
Reconciliation of total tax charge 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: |
Period |
22.9.21 |
Year ended | to |
31.12.23 | 31.12.22 |
£ | £ |
Profit before tax | 1,728,577 | 22,439,741 |
Profit multiplied by the standard rate of corporation tax in the UK of 25 % (2022 - 19 %) |
432,144 |
4,263,551 |
Effects of: |
Expenses not deductible for tax purposes | 4,448 | 22,775 |
Income not taxable for tax purposes | (261,210 | ) | (4,379,516 | ) |
Depreciation in excess of capital allowances | 123,613 | 151,567 |
Other tax adjustments | (9,071 | ) | 72,110 |
Total tax charge | 289,924 | 130,487 |
From April 2023 the UK corporation tax rate increased from 19% to 25% and is set to remain at 25% for the foreseeable future. |
8. | INDIVIDUAL INCOME STATEMENT |
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. |
9. | INTANGIBLE FIXED ASSETS |
Group |
Goodwill |
£ |
COST |
At 1 January 2023 |
and 31 December 2023 | 4,485,488 |
AMORTISATION |
At 1 January 2023 | 560,686 |
Amortisation for year | 448,549 |
At 31 December 2023 | 1,009,235 |
NET BOOK VALUE |
At 31 December 2023 | 3,476,253 |
At 31 December 2022 | 3,924,802 |
BARNES LINCOLN INVESTMENTS LIMITED (REGISTERED NUMBER: 13636144) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 December 2023 |
10. | TANGIBLE FIXED ASSETS |
Group |
Plant & | Fixtures | Motor |
machinery | & fittings | vehicles | Totals |
£ | £ | £ | £ |
COST |
At 1 January 2023 | 2,214,655 | 112,665 | 772,988 | 3,100,308 |
Additions | 487,753 | 84,468 | 205,146 | 777,367 |
Disposals | (16,946 | ) | - | (46,949 | ) | (63,895 | ) |
At 31 December 2023 | 2,685,462 | 197,133 | 931,185 | 3,813,780 |
DEPRECIATION |
At 1 January 2023 | 762,106 | 57,041 | 279,873 | 1,099,020 |
Charge for year | 390,033 | 39,056 | 259,597 | 688,686 |
Eliminated on disposal | - | - | (35,270 | ) | (35,270 | ) |
At 31 December 2023 | 1,152,139 | 96,097 | 504,200 | 1,752,436 |
NET BOOK VALUE |
At 31 December 2023 | 1,533,323 | 101,036 | 426,985 | 2,061,344 |
At 31 December 2022 | 1,452,549 | 55,624 | 493,115 | 2,001,288 |
11. | FIXED ASSET INVESTMENTS |
Group |
Interest |
in |
associate |
£ |
COST |
Share of profit/(loss) | 507,488 |
Reversal of impairments | 18,868 |
At 31 December 2023 | 526,356 |
NET BOOK VALUE |
At 31 December 2023 | 526,356 |
Company |
Shares in | Interest |
group | in |
undertakings | associate | Totals |
£ | £ | £ |
COST |
At 1 January 2023 |
and 31 December 2023 | 119,073 |
NET BOOK VALUE |
At 31 December 2023 | 119,073 |
At 31 December 2022 | 119,073 |
BARNES LINCOLN INVESTMENTS LIMITED (REGISTERED NUMBER: 13636144) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 December 2023 |
11. | FIXED ASSET INVESTMENTS - continued |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiaries |
Registered office: Burnsall Road, Coventry, CV5 6BT, UK |
Nature of business: |
% |
Class of shares: | holding |
Registered office: Burnsall Road, Coventry, CV5 6BT, UK |
Nature of business: |
% |
Class of shares: | holding |
Associated company |
Registered office: Burnsall Road, Coventry, CV5 6BT, UK |
Nature of business: |
% |
Class of shares: | holding |
The company owns 100% of B ordinary shares and 37.74% of total issued ordinary shares. |
12. | STOCKS |
Group |
2023 | 2022 |
£ | £ |
Raw materials | 962,865 | 1,532,645 |
Finished goods | 3,535,517 | 4,248,883 |
4,498,382 | 5,781,528 |
An impairment loss of £83,641 (2022 - £82,690) was recognised in cost of sales against stock during the year. |
BARNES LINCOLN INVESTMENTS LIMITED (REGISTERED NUMBER: 13636144) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 December 2023 |
13. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Trade debtors | 3,071,064 | 2,836,455 |
Amounts owed by group undertakings | - | - |
Other debtors | 6,537,975 | 7,037,085 |
Tax | 88,268 | 9,525 |
Prepayments and accrued income | 286,617 | 260,887 |
9,983,924 | 10,143,952 |
An impairment loss of £24,000 (2022 - £24,000) was recognised against trade debtors during the year. |
14. | CURRENT ASSET INVESTMENTS |
The market value of listed investments held at 31 December 2023 by the group and company was £3,139,787 (2022 - £2,222,243). |
15. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Trade creditors | 820,765 | 1,039,678 |
Amounts owed to group undertakings | - | - |
Tax | - | 85,982 |
Social security and other taxes | 115,179 | 102,924 |
VAT | 131,342 | 160,511 | - | - |
Other creditors | 128,153 | 124,630 |
Accruals and deferred income | 431,957 | 327,344 |
1,627,396 | 1,841,069 |
16. | PROVISIONS FOR LIABILITIES |
Group |
2023 | 2022 |
£ | £ |
Deferred tax |
Accelerated capital allowances | 209,318 | 151,134 |
Group |
Deferred |
tax |
£ |
Balance at 1 January 2023 | 151,134 |
Charge to Income Statement during year | 58,184 |
Balance at 31 December 2023 | 209,318 |
BARNES LINCOLN INVESTMENTS LIMITED (REGISTERED NUMBER: 13636144) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 December 2023 |
17. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
A Ordinary | £1 | 1 | 1 |
Ordinary | £1 | 18,868 | 18,868 |
18,869 | 18,869 |
The A ordinary share has full rights with respect to voting, the rights to distribution of dividends and the repayment of capital. |
All other ordinary shares rank pari passu with respect to the rights to distribution of dividends and the repayment of capital. The other ordinary shares are non-voting. |
18. | RESERVES |
Group |
Retained |
earnings |
£ |
At 1 January 2023 | 22,309,254 |
Profit for the year | 1,438,653 |
At 31 December 2023 | 23,747,907 |
Company |
Retained |
earnings |
£ |
At 1 January 2023 |
Profit for the year |
At 31 December 2023 |
Retained earnings includes all current and prior period retained profits and losses. |
19. | PENSION COMMITMENTS |
The group operates a defined contribution pension scheme with the assets of the scheme held separately from those of the group. The pension charge relating to the defined contribution pensions scheme for the year was £68,515 (2022 - £80,661). Outstanding contributions at the year end amounted to£15,686 (2022 - £14,307). |
20. | RELATED PARTY DISCLOSURES |
Fox Lima Holdings Limited - associated undertaking |
The group was charged rent of £900,000 for the year (2022 - £1,125,000 for the period). |
At the year end the group was owed £6,537,974 (2022 - £7,037,084), which is disclosed within Other debtors. |
Key management |
BARNES LINCOLN INVESTMENTS LIMITED (REGISTERED NUMBER: 13636144) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 December 2023 |
The director is considered to be key management, whose remuneration is included in the preceding notes to these financial statements. |
21. | ULTIMATE CONTROLLING PARTY |
The controlling party is P Lanni. |
22. | ACQUISITION OF SUBSIDIARY UNDERTAKINGS |
In the prior accounting period, on 8 October 2021, Barnes Lincoln Investments Limited acquired the entire issued share capital of Whitefuze Limited and Langstone Plastics Limited. The transaction was accounted for under the acquisition method of accounting. |
Barnes Lincoln Investments Limited paid the following consideration for the acquisition of the net assets of its trading subsidiaries, as follows: |
Book value |
Fair value adjustment |
Fair value |
£ | £ | £ |
Shares purchased and satisfied by way of dividend in specie |
- |
20,000,080 |
20,000,080 |
Cash for stamp duty paid | 100,005 | - | 100,005 |
Total | 100,005 | 20,000,080 | 20,100,085 |
The net assets of Whitefurze Limited and Langstone Plastics Limited on acquisition were adjusted to fair value as follows: |
Asset / Liability |
Book value |
Fair value adjustment |
Fair value |
£ | £ | £ |
Fixed and current assets | 19,112,790 | - | 19,112,790 |
Current liabilities and provisions | (3,498,193 | ) | - | (3,498,193 | ) |
Total | 15,614,597 | - | 15,614,597 |
The acquisition of Whitefurze Limited and Langstone Plastics Limited gave rise to goodwill of £4,485,488. |