Company registration number 05663226 (England and Wales)
LONDON STONE PAVING LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
LONDON STONE PAVING LIMITED
COMPANY INFORMATION
Directors
Mr D S Walley
Mr M Catrinoi-Cornea
Mr S J Walley
Mr C R K Durnford
Mr G D Walley
Mrs D Catrinoi-Cornea
Company number
05663226
Registered office
Berkshire Garden Centre
Sutton Lane
Langley
Berkshire
United Kingdom
SL3 8AH
Auditor
BK Plus Audit Limited
2-6 Adventure Place
Hanley
Stoke on Trent
Staffordshire
England
ST1 3AF
Bankers
HSBC Bank Plc
HR Service Delivery
Level 2 Block B Westside
London Road Apsley
Hemel Hempstead
Herts
HP3 9TD
LONDON STONE PAVING LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 8
Group statement of comprehensive income
9
Group and company balance sheets
10 - 11
Group statement of changes in equity
12
Company statement of changes in equity
13
Group statement of cash flows
14
Company statement of cash flows
15
Notes to the financial statements
16 - 36
LONDON STONE PAVING LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

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

Review of the business

 

Our Vision: to be the UK’s go to destination when searching for quality materials and products to create and enhance beautiful gardens. Online or instore, our mission is simple; offer the best products at the lowest possible prices and to always put our customers first.

 

London Stone is a supplier of premium quality Landscape Construction Materials and Outdoor Living Products.

 

Delivering Maximum Customer Value is at the heart of everything we do.

The business performed well in 2023. Profit before Tax increased by 11.2% despite revenue declining. This is due to gross margins improving as expected.

 

            2023        2022

Sales             £35.1m        £38.5m

Gross Profit         £13.5m        £12.5m

Profit Before Tax    £3.3         £2.9m

 

Sales held up well during the first quarter, however high interest rates and persistent inflation continued to reduce household disposable income which inevitably reduced demand in the market.

 

Prices have been reduced on some product lines with others held wherever possible, we believe this will help the business to maintain market share and see the business well placed to take advantage when the market returns to growth, which we anticipate following reductions in interest rates expected in the second half of 2024.

 

The business is continuing to expand the showroom network and business development team in order to support growth as well as improving our ecommerce platform. All business processes and activities are under review to minimise waste and improve efficiency enabling prices to be kept as low as possible to support our customers in this period of uncertainty. We are also looking to grow through acquisition should suitable opportunities arise.

 

LONDON STONE PAVING LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
Principal risks and uncertainties

Environmental

The principal risk to the business is economic uncertainty created by the global Coronavirus pandemic and other macro-economic concerns which continue to play out. This also coincides with increases in taxation in the UK and a low growth outlook.

 

Economic Uncertainty

Demand in our sector is very difficult to predict, particularly from 2022 onwards. In the event of any fall in demand in our industry we are well placed to ride it out as we continue to increase our customer base, geographical reach, and continue to improve customer value.

 

Currency Risk

London Stone use forward contracts and other financial instruments to hedge our exposure to currency fluctuations.

 

Industry Related

Repeated imitation of our product and service initiatives by our close competitors and increased competition from low cost online operators.

 

Close Competitors

Our genuine desire to deliver maximum value to our customers sets us apart from our competitors, although increased revenues and profits are part of our objectives, they are achieved indirectly via our unrelenting focus on customer value.

 

Online Competitors

We believe our bricks and mortar stores and reputation in the industry makes it difficult for online only operators to compete with our customer offer. It is not our intention to offer goods at the same prices as the lower cost operators. We are not prepared to sell low quality products with poor customer service, as we don’t consider this to represent overall customer value.

 

Opportunities

We will continue to grow our branch network throughout 2024 and beyond. Our product range has been rationalised and will continue to be amended as needed. We will further improve our e-commerce site to support growth but believe the combination of instore/telephone and e-commerce sales is the most effective way to service our customers.

On behalf of the board

Mr D S Walley
Director
15 August 2024
LONDON STONE PAVING LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -

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

Principal activities

The principal activity of the company continued to be that of specialist supplier of natural stone paving and bespoke stone products.

Results and dividends

The results for the year are set out on page 9.

Ordinary dividends were paid amounting to £1,970,135. The directors do not recommend payment of a further dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Mr D S Walley
Mr M Catrinoi-Cornea
Mr S J Walley
Mr C R K Durnford
Mr G D Walley
Mrs D Catrinoi-Cornea
Auditor

The auditor, BK Plus Audit Limited, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

On behalf of the board
Mr D S Walley
Director
15 August 2024
LONDON STONE PAVING LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -

The directors are responsible 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 company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

LONDON STONE PAVING LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF LONDON STONE PAVING LIMITED
- 5 -
Opinion

We have audited the financial statements of London Stone Paving Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023 which comprise the group statement of comprehensive income, the group balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows, the company statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

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's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and parent company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

LONDON STONE PAVING LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF LONDON STONE PAVING LIMITED
- 6 -
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 their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the parent company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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

The auditor’s assessment of the susceptibility of the entity’s financial statements to material misstatement, including how fraud might occur.

Which laws and regulations the auditor identified as being of significance in the context of the entity.

LONDON STONE PAVING LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF LONDON STONE PAVING LIMITED
- 7 -
Identifying and assessing potential risks related to irregularities

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following:

 

In common with all audits under ISAs (UK), we are required to perform specific procedures to respond to the risk of management override.

 

We also obtained an understanding to the legal and regulatory framework that the Group operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the Financial Statements. The key laws and regulations we considered in this context included in the UK Companies Act, pensions legislation, tax legislation and health and safety regulations.

 

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the Financial Statements but compliance with which may be fundamental to the Group’s ability to operate or to avoid a material penalty.

Audit response to risks identified

As a result of performing the above, we did not identify any key audit matters related to the potential risk of fraud or non-compliance with laws and regulations.

 

In addition to the above, our procedures to respond to risks identified included the following:

 

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members including internal specialists and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

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

LONDON STONE PAVING LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF LONDON STONE PAVING LIMITED
- 8 -
Keith Salt FCCA (Senior Statutory Auditor)
For and on behalf of BK Plus Audit Limited
6 September 2024
Chartered Certified Accountants
Statutory Auditor
2-6 Adventure Place
Hanley
Stoke on Trent
Staffordshire
England
ST1 3AF
LONDON STONE PAVING LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
2023
2022
Notes
£
£
Turnover
3
35,157,058
38,523,217
Cost of sales
(21,706,238)
(25,966,784)
Gross profit
13,450,820
12,556,433
Distribution costs
(2,660,260)
(2,756,674)
Administrative expenses
(7,351,251)
(6,397,356)
Other operating income
70,842
78,509
Operating profit
4
3,510,151
3,480,912
Interest receivable and similar income
7
94,337
2,033
Interest payable and similar expenses
8
(267,610)
(169,739)
Amounts written off investments
9
(15,380)
(403,002)
Profit before taxation
3,321,498
2,910,204
Tax on profit
10
(684,213)
(773,287)
Profit for the financial year
24
2,637,285
2,136,917
Profit for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.
LONDON STONE PAVING LIMITED
GROUP AND COMPANY BALANCE SHEETS
AS AT
31 DECEMBER 2023
31 December 2023
31 December 2023
- 10 -
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Fixed assets
Goodwill
13
-
0
218,754
234,201
263,476
Other intangible assets
13
853,520
485,732
853,520
485,732
Total intangible assets
853,520
704,486
1,087,721
749,208
Tangible assets
14
3,711,692
3,277,359
3,711,692
3,277,359
4,565,212
3,981,845
4,799,413
4,026,567
Current assets
Stocks
15
4,610,085
7,146,683
4,610,085
7,146,683
Debtors
16
1,618,789
1,416,914
1,612,789
1,410,415
Cash at bank and in hand
3,468,624
3,461,412
3,468,624
3,461,412
9,697,498
12,025,009
9,691,498
12,018,510
Creditors: amounts falling due within one year
17
(5,310,317)
(7,320,281)
(5,309,817)
(7,319,781)
Net current assets
4,387,181
4,704,728
4,381,681
4,698,729
Total assets less current liabilities
8,952,393
8,686,573
9,181,094
8,725,296
Creditors: amounts falling due after more than one year
18
(1,217,931)
(1,508,689)
(1,217,931)
(1,508,689)
Provisions for liabilities
Deferred tax liability
21
(464,666)
(356,485)
(464,666)
(356,485)
Net assets
7,269,796
6,821,399
7,498,497
6,860,122
Capital and reserves
Called up share capital
23
75
75
75
75
Capital redemption reserve
24
25
25
25
25
Profit and loss reserves
24
7,269,696
6,821,299
7,498,397
6,860,022
Total equity
7,269,796
6,821,399
7,498,497
6,860,122

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £2,608,510 (2022 - £2,187,708 profit).

LONDON STONE PAVING LIMITED
GROUP AND COMPANY BALANCE SHEETS (CONTINUED)
AS AT
31 DECEMBER 2023
31 December 2023
- 11 -
The financial statements were approved by the board of directors and authorised for issue on 15 August 2024 and are signed on its behalf by:
15 August 2024
Mr D S Walley
Director
Company Registration No. 05663226
LONDON STONE PAVING LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 12 -
Share capital
Revaluation reserve
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 January 2022
75
12,343
25
5,884,382
5,896,825
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
-
-
2,136,917
2,136,917
Dividends
11
-
-
-
(1,200,000)
(1,200,000)
Other movements
-
(12,343)
-
-
(12,343)
Balance at 31 December 2022
75
-
0
25
6,821,299
6,821,399
Year ended 31 December 2023:
Profit and total comprehensive income for the year
-
-
-
2,637,285
2,637,285
Dividends
11
-
-
-
(1,970,135)
(1,970,135)
Balance at 31 December 2023
75
-
0
25
7,269,696
7,269,796
LONDON STONE PAVING LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 13 -
Share capital
Revaluation reserve
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 January 2022
75
12,343
25
5,872,314
5,884,757
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
-
-
2,187,708
2,187,708
Dividends
11
-
-
-
(1,200,000)
(1,200,000)
Other movements
-
(12,343)
-
-
(12,343)
Balance at 31 December 2022
75
-
0
25
6,860,022
6,860,122
Year ended 31 December 2023:
Profit and total comprehensive income for the year
-
-
-
2,608,510
2,608,510
Dividends
11
-
-
-
(1,970,135)
(1,970,135)
Balance at 31 December 2023
75
-
0
25
7,498,397
7,498,497
LONDON STONE PAVING LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 14 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
26
6,109,067
3,067,281
Interest paid
(267,610)
(169,739)
Income taxes paid
(473,725)
(705,989)
Net cash inflow from operating activities
5,367,732
2,191,553
Investing activities
Purchase of intangible assets
(286,299)
(88,764)
Purchase of tangible fixed assets
(1,174,769)
(1,080,791)
Proceeds from disposal of tangible fixed assets
-
60,000
Interest received
94,337
2,033
Other income received from investments
(15,380)
-
0
Net cash used in investing activities
(1,382,111)
(1,107,522)
Financing activities
Repayment of bank loans
(1,595,981)
96,907
Payment of finance leases obligations
(425,107)
(310,902)
Dividends paid to equity shareholders
(1,970,135)
(1,200,000)
Net cash used in financing activities
(3,991,223)
(1,413,995)
Net decrease in cash and cash equivalents
(5,602)
(329,964)
Cash and cash equivalents at beginning of year
3,461,412
4,039,010
Effect of foreign exchange rates
-
0
(247,634)
Cash and cash equivalents at end of year
3,455,810
3,461,412
Relating to:
Cash at bank and in hand
3,468,624
3,461,412
Bank overdrafts included in creditors payable within one year
(12,814)
-
LONDON STONE PAVING LIMITED
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 15 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
27
6,109,067
2,943,464
Interest paid
(267,610)
(169,739)
Income taxes paid
(473,725)
(705,989)
Net cash inflow from operating activities
5,367,732
2,067,736
Investing activities
Purchase of intangible assets
(286,299)
(88,764)
Purchase of tangible fixed assets
(1,174,769)
(1,080,791)
Proceeds from disposal of tangible fixed assets
-
0
60,000
Interest received
94,337
2,033
Other income received from investments
(15,380)
-
0
Net cash used in investing activities
(1,382,111)
(1,107,522)
Financing activities
Repayment of bank loans
(1,595,981)
96,907
Payment of finance leases obligations
(425,107)
(310,902)
Dividends paid to equity shareholders
(1,970,135)
(1,200,000)
Net cash used in financing activities
(3,991,223)
(1,413,995)
Net decrease in cash and cash equivalents
(5,602)
(453,781)
Cash and cash equivalents at beginning of year
3,461,412
4,039,010
Effect of foreign exchange rates
-
0
(123,817)
Cash and cash equivalents at end of year
3,455,810
3,461,412
Relating to:
Cash at bank and in hand
3,468,624
3,461,412
Bank overdrafts included in creditors payable within one year
(12,814)
-
LONDON STONE PAVING LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 16 -
1
Accounting policies
Company information

London Stone Paving Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is .

 

The group consists of London Stone Paving Limited and all of its subsidiaries.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, [modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.

1.2
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company London Stone Paving Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 31 December 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

LONDON STONE PAVING LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 17 -

Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.

Investments in joint ventures and associates are carried in the group balance sheet at cost plus post-acquisition changes in the group’s share of the net assets of the entity, less any impairment in value. The carrying values of investments in joint ventures and associates include acquired goodwill.

 

If the group’s share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the group does not recognise further losses unless it has incurred obligations to do so or has made payments on behalf of the joint venture or associate.

 

Unrealised gains arising from transactions with joint ventures and associates are eliminated to the extent of the group’s interest in the entity.

1.4
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.5
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

1.6
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is five years.

 

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

1.7
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

 

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

LONDON STONE PAVING LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 18 -

Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Software
20% straight line basis
Cryptocurrency
fair value under the revaluation model
1.8
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Leasehold land and buildings
10 to 20 years on a straight line basis
Leasehold improvements
10% and 20% straight line basis
Plant and equipment
20% straight line basis
Fixtures and fittings
20% straight line basis
Computers
33% straight line basis
Motor vehicles
25% straight line basis

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.

1.9
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

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

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

 

Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.

 

Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.

 

In the parent company financial statements, investments in associates are accounted for at cost less impairment.

LONDON STONE PAVING LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 19 -

Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

1.10
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.11
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.12
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

LONDON STONE PAVING LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 20 -
1.13
Financial instruments

The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, 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.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.

LONDON STONE PAVING LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 21 -
Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.14
Equity instruments

Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.

1.15
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

LONDON STONE PAVING LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 22 -
Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.16
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.17
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.18
Leases

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

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

1.19
Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

 

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

LONDON STONE PAVING LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 23 -
1.20
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

2
Judgements and key sources of estimation uncertainty

In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

3
Turnover and other revenue
2023
2022
£
£
Other revenue
Interest income
94,337
2,033
Grants received
70,842
64,193
4
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange gains
(169,138)
(405,773)
Exchange differences apart from those arising on financial instruments measured at fair value through profit or loss
(85,249)
(123,817)
Government grants
(70,842)
(64,193)
Depreciation of owned tangible fixed assets
495,134
421,828
Depreciation of tangible fixed assets held under finance leases
245,304
166,822
Profit on disposal of tangible fixed assets
-
(6,167)
Amortisation of intangible assets
68,630
128,026
Impairment of intangible assets
-
0
178,793
Reversal of past impairment of intangible assets
(150,119)
-
0
Operating lease charges
1,540,009
1,338,053
LONDON STONE PAVING LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 24 -
5
Employees

The average monthly number of persons (including directors) employed by the group and company during the year was:

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
Production
52
55
49
52
Distribution
40
39
40
39
Administration
32
29
32
29
Total
124
123
121
120

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
5,162,801
4,871,314
5,162,801
4,871,314
Social security costs
568,692
522,935
568,692
522,935
Pension costs
196,973
168,202
196,973
168,202
5,928,466
5,562,451
5,928,466
5,562,451
6
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
197,839
217,274
Company pension contributions to defined contribution schemes
10,126
8,637
207,965
225,911
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
n/a
95,969

As total directors' remuneration was less than £200,000 in the current year, no disclosure is provided for that year.

LONDON STONE PAVING LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 25 -
7
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
85,750
1,387
Other interest income
8,587
646
Total income
94,337
2,033
2023
2022
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
85,750
1,387
8
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
82,733
43,808
Interest on invoice finance arrangements
123,669
83,140
Other interest on financial liabilities
4,000
-
210,402
126,948
Other finance costs:
Interest on finance leases and hire purchase contracts
36,971
33,592
Other interest
20,237
9,199
Total finance costs
267,610
169,739
9
Amounts written off investments
2023
2022
£
£
Fair value gains/(losses) on financial instruments
Exchange loss on financial assets held at fair value through profit or loss
(15,380)
-
0
Other gains/(losses)
Other gains and losses
-
(403,002)
(15,380)
(403,002)
10
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
784,454
485,375
Adjustments in respect of prior periods
(208,422)
142,524
Total current tax
576,032
627,899
LONDON STONE PAVING LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
10
Taxation
2023
2022
£
£
(Continued)
- 26 -
Deferred tax
Origination and reversal of timing differences
108,181
145,388
Total tax charge
684,213
773,287

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2023
2022
£
£
Profit before taxation
3,321,498
2,910,204
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2022: 19.00%)
830,375
552,939
Tax effect of expenses that are not deductible in determining taxable profit
190,298
165,004
Unutilised tax losses carried forward
125
-
0
Effect of change in corporation tax rate
(48,967)
-
Adjustments in respect of financial assets
(187,377)
(309,120)
Other non-reversing timing differences
-
0
76,571
Under/(over) provided in prior years
(208,422)
142,505
Deferred tax adjustments in respect of prior years
108,181
145,388
Taxation charge
684,213
773,287
11
Dividends
2023
2022
2023
2022
Recognised as distributions to equity holders:
Per share
Per share
Total
Total
£
£
£
£
Ordinary A Shares
Interim paid
260.00
160.00
650,000
400,000
Ordinary B Shares
Interim paid
264.03
160.00
660,068
400,000
Ordinary C Shares
Interim paid
264.03
160.00
660,067
400,000
Total dividends
Interim dividends paid
1,970,135
1,200,000
LONDON STONE PAVING LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 27 -
12
Impairments

Impairment tests have been carried out where appropriate and the following impairment losses have been recognised in profit or loss:

2023
2022
Notes
£
£
In respect of:
Intangible assets
13
-
178,793
Investments in associates
-
403,002
Recognised in:
Administrative expenses
-
178,793
Amounts written off investments
-
403,002

The impairment losses in respect of financial assets are recognised in other gains and losses in the profit and loss account.

Reversals of previous impairment losses have been recognised in profit or loss as follows:

2023
2022
Notes
£
£
In respect of:
Intangible assets
13
150,119
-
Recognised in:
Administrative expenses
150,119
-
13
Intangible fixed assets
Group
Software
Cryptocurrency
Total
£
£
£
Cost
At 1 January 2023
695,718
300,000
995,718
Additions - internally developed
286,299
-
0
286,299
At 31 December 2023
982,017
300,000
1,282,017
Amortisation and impairment
At 1 January 2023
331,193
178,793
509,986
Amortisation charged for the year
68,630
-
0
68,630
Reversal of past impairment loss
-
0
(150,119)
(150,119)
At 31 December 2023
399,823
28,674
428,497
LONDON STONE PAVING LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
13
Intangible fixed assets
(Continued)
- 28 -
Carrying amount
At 31 December 2023
582,194
271,326
853,520
At 31 December 2022
364,525
121,207
704,486
Company
Goodwill
Software
Cryptocurrency
Total
£
£
£
£
Cost
At 1 January 2023
292,751
695,718
300,000
1,288,469
Additions - internally developed
-
0
286,299
-
0
286,299
At 31 December 2023
292,751
982,017
300,000
1,574,768
Amortisation and impairment
At 1 January 2023
29,275
331,193
178,793
539,261
Amortisation charged for the year
29,275
68,630
-
0
97,905
Reversal of past impairment loss
-
0
-
0
(150,119)
(150,119)
At 31 December 2023
58,550
399,823
28,674
487,047
Carrying amount
At 31 December 2023
234,201
582,194
271,326
1,087,721
At 31 December 2022
263,476
364,525
121,207
749,208
LONDON STONE PAVING LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 29 -
14
Tangible fixed assets
Group
Leasehold land and buildings
Leasehold improvements
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
£
£
Cost
At 1 January 2023
156,013
2,617,125
1,320,263
197,256
147,664
1,845,376
6,283,697
Additions
23,355
884,535
191,438
63,180
12,261
-
0
1,174,769
At 31 December 2023
179,368
3,501,660
1,511,701
260,436
159,925
1,845,376
7,458,466
Depreciation and impairment
At 1 January 2023
15,331
1,103,578
958,826
170,318
119,256
639,027
3,006,336
Depreciation charged in the year
9,526
283,902
131,095
20,657
18,972
276,286
740,438
At 31 December 2023
24,857
1,387,480
1,089,921
190,975
138,228
915,313
3,746,774
Carrying amount
At 31 December 2023
154,511
2,114,180
421,780
69,461
21,697
930,063
3,711,692
At 31 December 2022
140,681
1,513,547
361,437
26,938
28,408
1,206,348
3,277,359
LONDON STONE PAVING LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
14
Tangible fixed assets
(Continued)
- 30 -
Company
Leasehold land and buildings
Leasehold improvements
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
£
£
Cost
At 1 January 2023
156,013
2,617,125
1,320,263
197,256
147,664
1,845,376
6,283,697
Additions
23,355
884,535
191,438
63,180
12,261
-
0
1,174,769
At 31 December 2023
179,368
3,501,660
1,511,701
260,436
159,925
1,845,376
7,458,466
Depreciation and impairment
At 1 January 2023
15,331
1,103,578
958,826
170,318
119,256
639,027
3,006,336
Depreciation charged in the year
9,526
283,902
131,095
20,657
18,972
276,286
740,438
At 31 December 2023
24,857
1,387,480
1,089,921
190,975
138,228
915,313
3,746,774
Carrying amount
At 31 December 2023
154,511
2,114,180
421,780
69,461
21,697
930,063
3,711,692
At 31 December 2022
140,681
1,513,547
361,437
26,938
28,408
1,206,348
3,277,359
LONDON STONE PAVING LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
14
Tangible fixed assets
(Continued)
- 31 -

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

Group
Company
2023
2022
2023
2022
£
£
£
£
Plant and equipment
96,805
136,804
96,805
136,804
Motor vehicles
690,958
901,005
690,958
901,005
787,763
1,037,809
787,763
1,037,809
15
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Raw materials and consumables
4,610,085
7,146,683
4,610,085
7,146,683
16
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
870,366
969,512
870,366
969,513
Corporation tax recoverable
196,772
-
0
196,772
-
0
Amounts owed by group undertakings
6,000
6,500
-
-
Other debtors
74,170
77,422
74,170
77,422
Prepayments and accrued income
471,481
363,480
471,481
363,480
1,618,789
1,416,914
1,612,789
1,410,415
17
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
19
2,079,769
3,749,890
2,079,769
3,749,890
Obligations under finance leases
20
520,454
567,849
520,454
567,849
Other borrowings
19
50,000
50,000
50,000
50,000
Trade creditors
860,785
1,378,531
860,785
1,378,531
Corporation tax payable
784,454
485,375
784,454
485,375
Other taxation and social security
538,899
722,624
538,899
722,624
Other creditors
397,454
234,339
397,454
234,339
Accruals and deferred income
78,502
131,673
78,002
131,173
5,310,317
7,320,281
5,309,817
7,319,781
LONDON STONE PAVING LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 32 -
18
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
19
812,513
725,559
812,513
725,559
Obligations under finance leases
20
405,418
783,130
405,418
783,130
1,217,931
1,508,689
1,217,931
1,508,689
19
Loans and overdrafts
Group
Company
2023
2022
2023
2022
£
£
£
£
Bank loans
2,879,468
4,475,449
2,879,468
4,475,449
Bank overdrafts
12,814
-
0
12,814
-
0
Other loans
50,000
50,000
50,000
50,000
2,942,282
4,525,449
2,942,282
4,525,449
Payable within one year
2,129,769
3,799,890
2,129,769
3,799,890
Payable after one year
812,513
725,559
812,513
725,559

The bank loans and overdrafts are secured by a fixed and floating charge over the company's assets.

 

20
Finance lease obligations
Group
Company
2023
2022
2023
2022
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
547,360
608,132
547,360
608,132
In two to five years
423,172
826,193
423,172
826,193
970,532
1,434,325
970,532
1,434,325
Less: future finance charges
(44,660)
(83,346)
(44,660)
(83,346)
925,872
1,350,979
925,872
1,350,979

Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 2 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

 

LONDON STONE PAVING LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 33 -
21
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

Liabilities
Liabilities
2023
2022
Group
£
£
Accelerated capital allowances
464,666
356,485
Liabilities
Liabilities
2023
2022
Company
£
£
Accelerated capital allowances
464,666
356,485
Group
Company
2023
2023
Movements in the year:
£
£
Liability at 1 January 2023
356,485
356,485
Charge to profit or loss
108,181
108,181
Liability at 31 December 2023
464,666
464,666
22
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
196,973
168,202

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

LONDON STONE PAVING LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 34 -
23
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary A Shares of 1p each
2,500
2,500
75
25
Ordinary B Shares of 1p each
2,500
2,500
-
25
Ordinary C Shares of 1p each
2,500
2,500
-
25
7,500
7,500
75
75

 

24
Reserves
Profit and loss reserves

Retained earnings include all current and prior period profit and losses. All are considered distributable.

25
Operating lease commitments
Lessee

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Group
Company
2023
2022
2023
2022
£
£
£
£
Within one year
1,721,761
1,614,810
1,721,761
1,614,810
Between two and five years
5,782,552
2,781,930
5,782,552
2,781,930
7,504,313
4,396,740
7,504,313
4,396,740
LONDON STONE PAVING LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 35 -
26
Cash generated from group operations
2023
2022
£
£
Profit for the year after tax
2,637,286
2,136,917
Adjustments for:
Taxation charged
684,213
773,287
Finance costs
267,610
169,739
Investment income
(94,337)
(2,033)
Gain on disposal of tangible fixed assets
-
(6,167)
Amortisation and impairment of intangible assets
(81,489)
306,819
Depreciation and impairment of tangible fixed assets
740,438
588,650
Foreign exchange gains on cash equivalents
-
247,634
Other gains and losses
15,380
403,002
Movements in working capital:
Decrease/(increase) in stocks
2,536,596
(1,240,598)
(Increase)/decrease in debtors
(5,103)
66,099
Decrease in creditors
(591,527)
(376,068)
Cash generated from operations
6,109,067
3,067,281
27
Cash generated from operations - company
2023
2022
£
£
Profit for the year after tax
2,608,510
2,187,708
Adjustments for:
Taxation charged
684,213
773,268
Finance costs
267,610
169,739
Investment income
(94,337)
(2,033)
Gain on disposal of tangible fixed assets
-
(6,167)
Amortisation and impairment of intangible assets
(52,214)
256,548
Depreciation and impairment of tangible fixed assets
740,438
588,650
Foreign exchange gains on cash equivalents
-
123,817
Other gains and losses
15,380
403,002
Movements in working capital:
Decrease/(increase) in stocks
2,536,596
(1,240,598)
(Increase)/decrease in debtors
(5,602)
63,598
Decrease in creditors
(591,527)
(374,068)
Cash generated from operations
6,109,067
2,943,464
LONDON STONE PAVING LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 36 -
28
Analysis of changes in net debt - group
2023
£
Opening net funds/(debt)
Cash and cash equivalents
3,461,412
Loans
(4,525,449)
Obligations under finance leases
(1,350,979)
(2,415,016)
Changes in net debt arising from:
Cash flows of the entity
2,015,486
Closing net funds/(debt) as analysed below
(399,530)
Closing net funds/(debt)
Cash and cash equivalents
3,455,810
Loans
(2,929,468)
Obligations under finance leases
(925,872)
(399,530)
29
Analysis of changes in net debt - company
2023
£
Opening net funds/(debt)
Cash and cash equivalents
3,461,412
Loans
(4,525,449)
Obligations under finance leases
(1,350,979)
(2,415,016)
Changes in net debt arising from:
Cash flows of the entity
2,015,486
Closing net funds/(debt) as analysed below
(399,530)
Closing net funds/(debt)
Cash and cash equivalents
3,455,810
Loans
(2,929,468)
Obligations under finance leases
(925,872)
(399,530)
2023-12-312023-01-01falseCCH SoftwareCCH Accounts Production 2024.100Mr D S WalleyMr M Catrinoi-CorneaMr S J WalleyMr C R K DurnfordMr G D WalleyMrs D Catrinoi-Corneafalsefalse05663226bus:Consolidated2023-01-012023-12-31056632262023-01-012023-12-3105663226bus:Director12023-01-012023-12-3105663226bus:Director22023-01-012023-12-3105663226bus:Director32023-01-012023-12-3105663226bus:Director42023-01-012023-12-3105663226bus:Director52023-01-012023-12-3105663226bus:Director62023-01-012023-12-3105663226bus:RegisteredOffice2023-01-012023-12-3105663226bus:Agent12023-01-012023-12-31056632262023-12-3105663226bus:Consolidated2022-01-012022-12-31056632262022-01-012022-12-3105663226bus:Consolidated2023-12-3105663226core:Goodwillbus:Consolidated2023-12-3105663226core:Goodwillbus:Consolidated2022-12-3105663226core:Goodwill2023-12-3105663226core:Goodwill2022-12-3105663226core:ComputerSoftwarebus:Consolidated2023-12-3105663226core:Non-standardIntangibleAssetClass1ComponentIntangibleAssetsOtherThanGoodwillbus:Consolidated2023-12-3105663226core:ComputerSoftwarebus:Consolidated2022-12-3105663226core:Non-standardIntangibleAssetClass1ComponentIntangibleAssetsOtherThanGoodwillbus:Consolidated2022-12-3105663226bus:Consolidated2022-12-3105663226core:ComputerSoftware2023-12-3105663226core:Non-standardIntangibleAssetClass1ComponentIntangibleAssetsOtherThanGoodwill2023-12-3105663226core:ComputerSoftware2022-12-3105663226core:Non-standardIntangibleAssetClass1ComponentIntangibleAssetsOtherThanGoodwill2022-12-31056632262022-12-3105663226core:LandBuildingscore:LeasedAssetsHeldAsLesseebus:Consolidated2023-12-3105663226core:LeaseholdImprovementsbus:Consolidated2023-12-3105663226core:PlantMachinerybus:Consolidated2023-12-3105663226core:FurnitureFittingsbus:Consolidated2023-12-3105663226core:ComputerEquipmentbus:Consolidated2023-12-3105663226core:MotorVehiclesbus:Consolidated2023-12-3105663226core:LandBuildingscore:LeasedAssetsHeldAsLesseebus:Consolidated2022-12-3105663226core:LeaseholdImprovementsbus:Consolidated2022-12-3105663226core:PlantMachinerybus:Consolidated2022-12-3105663226core:FurnitureFittingsbus:Consolidated2022-12-3105663226core:ComputerEquipmentbus:Consolidated2022-12-3105663226core:MotorVehiclesbus:Consolidated2022-12-3105663226core:LandBuildingscore:LeasedAssetsHeldAsLessee2023-12-3105663226core:LeaseholdImprovements2023-12-3105663226core:PlantMachinery2023-12-3105663226core:FurnitureFittings2023-12-3105663226core:ComputerEquipment2023-12-3105663226core:MotorVehicles2023-12-3105663226core:LandBuildingscore:LeasedAssetsHeldAsLessee2022-12-3105663226core:LeaseholdImprovements2022-12-3105663226core:PlantMachinery2022-12-3105663226core:FurnitureFittings2022-12-3105663226core:ComputerEquipment2022-12-3105663226core:MotorVehicles2022-12-3105663226core:ShareCapitalbus:Consolidated2023-12-3105663226core:ShareCapitalbus:Consolidated2022-12-3105663226core:ShareCapital2023-12-3105663226core:ShareCapital2022-12-3105663226core:CapitalRedemptionReservebus:Consolidated2023-12-3105663226core:CapitalRedemptionReservebus:Consolidated2022-12-3105663226core:CapitalRedemptionReserve2023-12-3105663226core:CapitalRedemptionReserve2022-12-3105663226core:RetainedEarningsAccumulatedLosses2023-12-3105663226core:ShareCapitalbus:Consolidated2021-12-3105663226core:SharePremiumbus:Consolidated2021-12-3105663226core:CapitalRedemptionReservebus:Consolidated2021-12-3105663226core:RetainedEarningsAccumulatedLossesbus:Consolidated2021-12-3105663226core:RevaluationReservebus:Consolidated2022-12-3105663226core:RetainedEarningsAccumulatedLossesbus:Consolidated2022-12-3105663226core:RevaluationReservebus:Consolidated2023-12-3105663226core:RetainedEarningsAccumulatedLossesbus:Consolidated2023-12-3105663226core:ShareCapital2021-12-3105663226core:RevaluationReserve2021-12-3105663226core:CapitalRedemptionReserve2021-12-3105663226core:RetainedEarningsAccumulatedLosses2021-12-3105663226core:RevaluationReserve2022-12-3105663226core:RetainedEarningsAccumulatedLosses2022-12-3105663226core:RevaluationReserve2023-12-3105663226bus:Consolidated12023-01-012023-12-3105663226bus:Consolidated12022-01-012022-12-3105663226bus:Consolidated2021-12-31056632262021-12-3105663226core:Goodwill2023-01-012023-12-3105663226core:IntangibleAssetsOtherThanGoodwill2023-01-012023-12-3105663226core:ComputerSoftware2023-01-012023-12-3105663226core:Non-standardIntangibleAssetClass1ComponentIntangibleAssetsOtherThanGoodwill2023-01-012023-12-3105663226core:LandBuildingscore:LongLeaseholdAssets2023-01-012023-12-3105663226core:LeaseholdImprovements2023-01-012023-12-3105663226core:PlantMachinery2023-01-012023-12-3105663226core:FurnitureFittings2023-01-012023-12-3105663226core:ComputerEquipment2023-01-012023-12-3105663226core:MotorVehicles2023-01-012023-12-3105663226core:UKTaxbus:Consolidated2023-01-012023-12-3105663226core:UKTaxbus:Consolidated2022-01-012022-12-3105663226bus:Consolidated22023-01-012023-12-3105663226bus:Consolidated22022-01-012022-12-3105663226core:ComputerSoftwarebus:Consolidated2022-12-3105663226core:Non-standardIntangibleAssetClass1ComponentIntangibleAssetsOtherThanGoodwillbus:Consolidated2022-12-3105663226bus:Consolidated2022-12-3105663226core:Goodwill2022-12-3105663226core:ComputerSoftware2022-12-3105663226core:Non-standardIntangibleAssetClass1ComponentIntangibleAssetsOtherThanGoodwill2022-12-31056632262022-12-3105663226core:ComputerSoftwarecore:InternallyGeneratedIntangibleAssetsbus:Consolidated2023-01-012023-12-3105663226core:Non-standardIntangibleAssetClass1ComponentIntangibleAssetsOtherThanGoodwillcore:InternallyGeneratedIntangibleAssetsbus:Consolidated2023-01-012023-12-3105663226core:InternallyGeneratedIntangibleAssetsbus:Consolidated2023-01-012023-12-3105663226core:Goodwillcore:InternallyGeneratedIntangibleAssets2023-01-012023-12-3105663226core:ComputerSoftwarecore:InternallyGeneratedIntangibleAssets2023-01-012023-12-3105663226core:Non-standardIntangibleAssetClass1ComponentIntangibleAssetsOtherThanGoodwillcore:InternallyGeneratedIntangibleAssets2023-01-012023-12-3105663226core:InternallyGeneratedIntangibleAssets2023-01-012023-12-3105663226core:ComputerSoftwarebus:Consolidated2023-01-012023-12-3105663226core:Non-standardIntangibleAssetClass1ComponentIntangibleAssetsOtherThanGoodwillbus:Consolidated2023-01-012023-12-3105663226core:LandBuildingscore:LeasedAssetsHeldAsLesseebus:Consolidated2022-12-3105663226core:LeaseholdImprovementsbus:Consolidated2022-12-3105663226core:PlantMachinerybus:Consolidated2022-12-3105663226core:FurnitureFittingsbus:Consolidated2022-12-3105663226core:ComputerEquipmentbus:Consolidated2022-12-3105663226core:MotorVehiclesbus:Consolidated2022-12-3105663226core:LandBuildingscore:LeasedAssetsHeldAsLessee2022-12-3105663226core:LeaseholdImprovements2022-12-3105663226core:PlantMachinery2022-12-3105663226core:FurnitureFittings2022-12-3105663226core:ComputerEquipment2022-12-3105663226core:MotorVehicles2022-12-3105663226core:LandBuildingscore:LeasedAssetsHeldAsLesseebus:Consolidated2023-01-012023-12-3105663226core:LeaseholdImprovementsbus:Consolidated2023-01-012023-12-3105663226core:PlantMachinerybus:Consolidated2023-01-012023-12-3105663226core:FurnitureFittingsbus:Consolidated2023-01-012023-12-3105663226core:ComputerEquipmentbus:Consolidated2023-01-012023-12-3105663226core:MotorVehiclesbus:Consolidated2023-01-012023-12-3105663226core:LandBuildingscore:LeasedAssetsHeldAsLessee2023-01-012023-12-3105663226core:CurrentFinancialInstruments2023-12-3105663226core:CurrentFinancialInstruments2022-12-3105663226core:CurrentFinancialInstrumentsbus:Consolidated2023-12-3105663226core:CurrentFinancialInstrumentsbus:Consolidated2022-12-3105663226core:WithinOneYearbus:Consolidated2023-12-3105663226core:WithinOneYearbus:Consolidated2022-12-3105663226core:CurrentFinancialInstrumentscore:WithinOneYear2023-12-3105663226core:CurrentFinancialInstrumentscore:WithinOneYear2022-12-3105663226core:Non-currentFinancialInstrumentscore:AfterOneYearbus:Consolidated2023-12-3105663226core:Non-currentFinancialInstrumentscore:AfterOneYearbus:Consolidated2022-12-3105663226core:Non-currentFinancialInstrumentscore:AfterOneYear2023-12-3105663226core:Non-currentFinancialInstrumentscore:AfterOneYear2022-12-3105663226core:Non-currentFinancialInstrumentsbus:Consolidated2023-12-3105663226core:Non-currentFinancialInstrumentsbus:Consolidated2022-12-3105663226core:Non-currentFinancialInstruments2023-12-3105663226core:Non-currentFinancialInstruments2022-12-3105663226core:CurrentFinancialInstrumentscore:WithinOneYearbus:Consolidated2023-12-3105663226core:CurrentFinancialInstrumentscore:WithinOneYearbus:Consolidated2022-12-3105663226core:WithinOneYear2023-12-3105663226core:WithinOneYear2022-12-3105663226core:BetweenTwoFiveYearsbus:Consolidated2023-12-3105663226core:BetweenTwoFiveYearsbus:Consolidated2022-12-3105663226core:BetweenTwoFiveYears2023-12-3105663226core:BetweenTwoFiveYears2022-12-3105663226bus:PrivateLimitedCompanyLtd2023-01-012023-12-3105663226bus:FRS1022023-01-012023-12-3105663226bus:Audited2023-01-012023-12-3105663226bus:ConsolidatedGroupCompanyAccounts2023-01-012023-12-3105663226bus:FullAccounts2023-01-012023-12-31xbrli:purexbrli:sharesiso4217:GBP