REGISTERED NUMBER: 00280349 |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31ST JANUARY 2024 |
FOR |
LOWE HOLDINGS LIMITED |
REGISTERED NUMBER: 00280349 |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31ST JANUARY 2024 |
FOR |
LOWE HOLDINGS LIMITED |
LOWE HOLDINGS LIMITED (REGISTERED NUMBER: 00280349) |
CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31ST JANUARY 2024 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 3 |
Report of the Independent Auditors | 4 |
Consolidated Statement of Comprehensive Income | 7 |
Consolidated Balance Sheet | 8 |
Company Balance Sheet | 9 |
Consolidated Statement of Changes in Equity | 10 |
Company Statement of Changes in Equity | 11 |
Consolidated Cash Flow Statement | 12 |
Notes to the Consolidated Cash Flow Statement | 13 |
Notes to the Consolidated Financial Statements | 15 |
LOWE HOLDINGS LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 31ST JANUARY 2024 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Statutory Auditors |
25 St Thomas Street |
Winchester |
Hampshire |
SO23 9HJ |
LOWE HOLDINGS LIMITED (REGISTERED NUMBER: 00280349) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 31ST JANUARY 2024 |
The directors present their strategic report of the company and the group for the year ended 31st January 2024. |
REVIEW OF BUSINESS |
The principal activities of the group continue to be that of an electrical and mechanical contractor. We offer a growing portfolio of electrical and mechanical solutions. Electrical services include lighting, power, TV, network and fire alarm systems. Mechanical and plumbing services encompass heating, ventilation and air conditioning systems, as well as water and gas systems. to provide a seamless service to our clients. |
After celebrating our centenary in 2023, Lowe & Oliver continues to have offices in Oxford, Southampton and Cheltenham, providing over 100 electrical and mechanical engineers. Lowe & Oliver are well placed to promote and deliver excellent building services in London, the Home Counties and the South of England, ranging from high-end, historic and listed residences to commercial, industrial, healthcare and local authority sites. Our client base is long standing and varied, and we place great importance on maintaining and developing these relationships with high service levels, whilst continuing to attract new clients and grow our recurring revenue. |
The core focus of the group remains, and the group is investing in the training and understanding of new technologies which include the pivotal area of sustainability products. We have already introduced solar, photovoltaic, grey water/rain harvesting and air/ground source heat pumps into our everyday work. Clients are more informed than ever, and we must ensure that we, as a group, are in tune with their wishes and needs in this ever demanding, growing and diverse market. Going forward renewables are very much becoming part of our day-to-day business and the Board's strategy in this area has been a key part of the group's growth in recent years. |
The group returned to profitability in 2023/24, with the company forecasting further profits in 2024/25. |
RESULTS |
The group made a pre-tax profit of £271,097 (2023 : Pre tax loss £112,702) for the year on a turnover of £24,652,902 (2023 : £24,370,420). |
At 31 January 2024 the group had net assets of £2,958,804 (2023 : £2,686,158). |
PRINCIPAL RISKS AND UNCERTAINTIES |
The principal risks and uncertainties facing the group relate to the general uncertainty as to the level of economic activity going forward, the ability of the construction industry generally to raise funds for new projects and more specifically for the group to ensure that they minimise any risks from potential bad debt. |
KEY PERFORMANCE INDICATORS |
In the opinion of the directors the key performance indicators of the group are turnover, operating profit, EBITDA and return on investment. These are monitored throughout the year by the Board of Directors.. |
ON BEHALF OF THE BOARD: |
LOWE HOLDINGS LIMITED (REGISTERED NUMBER: 00280349) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31ST JANUARY 2024 |
The directors present their report with the financial statements of the company and the group for the year ended 31st January 2024. |
DIVIDENDS |
No dividends will be distributed for the year ended 31st January 2024. |
EVENTS SINCE THE END OF THE YEAR |
Information relating to events since the end of the year is given in the notes to the financial statements. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1st February 2023 to the date of this report. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Group Strategic Report, the Report of the Directors 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 company and the group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
LOWE HOLDINGS LIMITED |
Opinion |
We have audited the financial statements of Lowe Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31st January 2024 which comprise the Consolidated Statement of 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 31st January 2024 and of the group's profit for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
Conclusions relating to going concern |
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, 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 Directors 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 Directors have been prepared in accordance with applicable legal requirements. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
LOWE HOLDINGS 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 Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the parent company financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page three, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
In preparing the financial statements, the directors are responsible for assessing the group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so. |
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: |
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. |
We obtained an understanding of the legal and regulatory framework applicable to the company via discussions with the directors and our previous knowledge of the company. This identified that the most significant laws and regulations relate to the form and content of the financial statements such as the UK Companies Act 2006 and Financial Reporting Standard 102. The company complies with these laws and regulations by using appropriately qualified professionals to prepare the financial statements. |
As part of our planning process we assessed susceptibility of the company's financial statements to material misstatements, including how fraud might occur by making an assessment of the key risks. The key risk identified in respect of Lowe Holdings Limited is management override. The directors are not aware of any actual, suspected or alleged cases of fraud. |
Based on this assessment we designed our audit procedures to address these key risk areas with an emphasis on testing those areas susceptible to management override including testing manual journals and making enquiries of management. |
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 |
LOWE HOLDINGS 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 |
Statutory Auditors |
25 St Thomas Street |
Winchester |
Hampshire |
SO23 9HJ |
LOWE HOLDINGS LIMITED (REGISTERED NUMBER: 00280349) |
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 31ST JANUARY 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
TURNOVER | 2 | 24,652,902 | 24,370,420 |
Cost of sales | 20,754,085 | 20,737,445 |
GROSS PROFIT | 3,898,817 | 3,632,975 |
Administrative expenses | 3,603,400 | 3,716,644 |
295,417 | (83,669 | ) |
Other operating income | 1,704 | 2,370 |
OPERATING PROFIT/(LOSS) | 4 | 297,121 | (81,299 | ) |
Income from fixed asset investments | 11,382 | - |
Interest receivable and similar income | 4,910 | 2,432 |
16,292 | 2,432 |
313,413 | (78,867 | ) |
Gain/loss on revaluation of assets | (4,908 | ) | 2,242 |
308,505 | (76,625 | ) |
Interest payable and similar expenses | 5 | 37,408 | 36,077 |
PROFIT/(LOSS) BEFORE TAXATION | 271,097 | (112,702 | ) |
Tax on profit/(loss) | 6 | (1,549 | ) | 426 |
PROFIT/(LOSS) FOR THE FINANCIAL YEAR |
( |
) |
LOWE HOLDINGS LIMITED (REGISTERED NUMBER: 00280349) |
CONSOLIDATED BALANCE SHEET |
31ST JANUARY 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 8 | 6,613 | 7,891 |
Tangible assets | 9 | 789,333 | 776,053 |
Investments | 10 | 1,511,014 | 1,008,044 |
2,306,960 | 1,791,988 |
CURRENT ASSETS |
Stocks | 11 | 137,196 | 137,196 |
Debtors | 12 | 5,543,930 | 5,520,563 |
Cash at bank | 2,030,429 | 861,265 |
7,711,555 | 6,519,024 |
CREDITORS |
Amounts falling due within one year | 13 | 6,652,221 | 5,038,888 |
NET CURRENT ASSETS | 1,059,334 | 1,480,136 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
3,366,294 |
3,272,124 |
CREDITORS |
Amounts falling due after more than one year |
14 |
(407,490 |
) |
(585,540 |
) |
PROVISIONS FOR LIABILITIES | 18 | - | (426 | ) |
NET ASSETS | 2,958,804 | 2,686,158 |
CAPITAL AND RESERVES |
Called up share capital | 19 | 30,544 | 30,544 |
Share premium | 495,000 | 495,000 |
Fair value reserve | (3,236 | ) | 1,816 |
Retained earnings | 2,436,496 | 2,158,798 |
SHAREHOLDERS' FUNDS | 2,958,804 | 2,686,158 |
The financial statements were approved by the Board of Directors and authorised for issue on 24th October 2024 and were signed on its behalf by: |
R J G Lowe - Director |
LOWE HOLDINGS LIMITED (REGISTERED NUMBER: 00280349) |
COMPANY BALANCE SHEET |
31ST JANUARY 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 8 |
Tangible assets | 9 |
Investments | 10 |
CURRENT ASSETS |
Stocks | 11 |
Debtors | 12 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 13 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
PROVISIONS FOR LIABILITIES | 18 |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 19 |
Share premium |
Fair value reserve | ( |
) |
Retained earnings |
SHAREHOLDERS' FUNDS |
Company's loss for the financial year | (26,330 | ) | (19,947 | ) |
The financial statements were approved by the Board of Directors and authorised for issue on |
LOWE HOLDINGS LIMITED (REGISTERED NUMBER: 00280349) |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31ST JANUARY 2024 |
Called up | Fair |
share | Retained | Share | value | Total |
capital | earnings | premium | reserve | equity |
£ | £ | £ | £ | £ |
Balance at 1st February 2022 | 25,544 | 2,273,742 | - | - | 2,299,286 |
Changes in equity |
Deficit for the year | - | (113,128 | ) | - | - | (113,128 | ) |
Other comprehensive income | - | (1,816 | ) | - | 1,816 | - |
Total comprehensive income | - | (114,944 | ) | - | 1,816 | (113,128 | ) |
Issue of share capital | 5,000 | - | 495,000 | - | 500,000 |
Balance at 31st January 2023 | 30,544 | 2,158,798 | 495,000 | 1,816 | 2,686,158 |
Changes in equity |
Profit for the year | - | 272,646 | - | - | 272,646 |
Other comprehensive income | - | 5,052 | - | (5,052 | ) | - |
Total comprehensive income | - | 277,698 | - | (5,052 | ) | 272,646 |
Balance at 31st January 2024 | 30,544 | 2,436,496 | 495,000 | (3,236 | ) | 2,958,804 |
LOWE HOLDINGS LIMITED (REGISTERED NUMBER: 00280349) |
COMPANY STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31ST JANUARY 2024 |
Called up | Fair |
share | Retained | Share | value | Total |
capital | earnings | premium | reserve | equity |
£ | £ | £ | £ | £ |
Balance at 1st February 2022 |
Changes in equity |
Deficit for the year | - | (19,947 | ) | - | - | (19,947 | ) |
Other comprehensive income | - | (1,816 | ) | - | - |
Total comprehensive income | - | ( |
) | - | ( |
) |
Issue of share capital | - | - |
Balance at 31st January 2023 |
Changes in equity |
Deficit for the year | - | (26,330 | ) | - | - | (26,330 | ) |
Other comprehensive income | - | 5,052 | - | ( |
) | - |
Total comprehensive income | - | ( |
) | - | ( |
) | ( |
) |
Balance at 31st January 2024 | ( |
) |
LOWE HOLDINGS LIMITED (REGISTERED NUMBER: 00280349) |
CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31ST JANUARY 2024 |
2024 | 2023 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 1,547,303 | 525,046 |
Interest paid | (18,182 | ) | (26,699 | ) |
Interest element of hire purchase payments paid |
(19,226 |
) |
(9,378 |
) |
Net cash from operating activities | 1,509,895 | 488,969 |
Cash flows from investing activities |
Purchase of tangible fixed assets | (37,652 | ) | (15,218 | ) |
Purchase of fixed asset investments | (1,261,592 | ) | (996,184 | ) |
Sale of tangible fixed assets | 17,375 | 4,476 |
Sale of fixed asset investments | 754,281 | - |
Interest received | 4,910 | 2,432 |
Dividends received | 11,382 | - |
Net cash from investing activities | (511,296 | ) | (1,004,494 | ) |
Cash flows from financing activities |
Loan repayments in year | (180,000 | ) | (180,000 | ) |
Capital repayments in year | (149,435 | ) | (131,758 | ) |
Share issue | 500,000 | - |
Net cash from financing activities | 170,565 | (311,758 | ) |
Increase/(decrease) in cash and cash equivalents | 1,169,164 | (827,283 | ) |
Cash and cash equivalents at beginning of year |
2 |
861,265 |
1,688,548 |
Cash and cash equivalents at end of year | 2 | 2,030,429 | 861,265 |
LOWE HOLDINGS LIMITED (REGISTERED NUMBER: 00280349) |
NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31ST JANUARY 2024 |
1. | RECONCILIATION OF PROFIT/(LOSS) BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2024 | 2023 |
£ | £ |
Profit/(loss) before taxation | 271,097 | (112,702 | ) |
Depreciation charges | 182,826 | 163,959 |
Profit on disposal of fixed assets | (15,840 | ) | (1,181 | ) |
Loss/(gain) on revaluation of fixed assets | 4,908 | (2,242 | ) |
Finance costs | 37,408 | 36,077 |
Finance income | (16,292 | ) | (2,432 | ) |
464,107 | 81,479 |
Decrease in stocks | - | 178,355 |
Increase in trade and other debtors | (522,246 | ) | (370,977 | ) |
Increase in trade and other creditors | 1,605,442 | 636,189 |
Cash generated from operations | 1,547,303 | 525,046 |
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 31st January 2024 |
31.1.24 | 1.2.23 |
£ | £ |
Cash and cash equivalents | 2,030,429 | 861,265 |
Year ended 31st January 2023 |
31.1.23 | 1.2.22 |
£ | £ |
Cash and cash equivalents | 861,265 | 1,688,548 |
LOWE HOLDINGS LIMITED (REGISTERED NUMBER: 00280349) |
NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31ST JANUARY 2024 |
3. | ANALYSIS OF CHANGES IN NET (DEBT)/FUNDS |
Other |
non-cash |
At 1.2.23 | Cash flow | changes | At 31.1.24 |
£ | £ | £ | £ |
Net cash |
Cash at bank | 861,265 | 1,169,164 | 2,030,429 |
861,265 | 1,169,164 | 2,030,429 |
Debt |
Finance leases | (278,475 | ) | 149,435 | (159,276 | ) | (288,316 | ) |
Debts falling due |
within 1 year | (180,000 | ) | - | - | (180,000 | ) |
Debts falling due |
after 1 year | (420,000 | ) | 180,000 | - | (240,000 | ) |
(878,475 | ) | 329,435 | (159,276 | ) | (708,316 | ) |
Total | (17,210 | ) | 1,498,599 | (159,276 | ) | 1,322,113 |
LOWE HOLDINGS LIMITED (REGISTERED NUMBER: 00280349) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31ST JANUARY 2024 |
1. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Basis of consolidation |
The consolidated profit and loss account and balance sheet includes the financial statements of the company and its subsidiary undertakings made up to 31 January 2024. The results of the subsidiaries sold or acquired are included in the profit and loss account up to, or from the date control passes. Intra- group sales and profits are eliminated fully on consolidation. |
Turnover |
Turnover represents the amounts invoiced to customers and the value of work carried out during the year, including those amounts not yet invoiced in respect of long-term contracting activities exclusive of Value Added Tax and trade discounts. |
Goodwill |
Goodwill is the difference between amounts paid on the acquisition of a business and the fair value of the identifiable assets and liabilities. It is amortised to the profit and loss account over its estimated economic life which is considered to be 20 years. |
Intangible assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
Tangible fixed assets |
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended. |
Depreciation is provided on the following basis: |
Freehold property - 2% on cost |
Improvements to property - Straight line over 10 years |
Fixtures and fittings - Straight line over 3 to 7 years |
Motor vehicles - Straight line over 5 years |
Computer equipment - Straight line over 3 years |
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date. |
Stock and work in progress |
Work in progress is valued at the lower of cost and net realisable value. Cost includes all direct costs incurred in bringing the stocks to their present location and condition. |
The cost of work in progress includes an appropriate proportion of manufacturing overheads. Net realisable value is based on estimated selling price less further costs expected to be incurred to completion and disposal. |
LOWE HOLDINGS LIMITED (REGISTERED NUMBER: 00280349) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST JANUARY 2024 |
1. | ACCOUNTING POLICIES - continued |
Financial instruments |
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. |
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. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the 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. |
Hire purchase and leasing commitments |
Assets obtained under hire purchase and finance leases are capitalised and depreciated over the lease term or their useful lives. Obligations under finance leases are are included in creditors net of finance charge allocated to future periods. The finance element of the rental payment is charged to the profit and loss account so as to produce a constant periodic rate of charge on the net obligation outstanding in each period. |
Rental payments under operating leases are charged to the profit and loss account on a straight line basis over the period of the lease. |
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. |
Long term contracts |
Profit is recognised on long term contracts, if the final outcome can be assessed with reasonable certainty, by including in the profit and loss account turnover and related costs as contract activity progresses. Turnover is calculated as that proportion of total contract value which costs to date bear to total expected costs for that contract. Revenues derived from variations on contracts are recognised only when they have been accepted by the customer. Full provision is made for losses on all contracts in the year in which they are first foreseen. |
LOWE HOLDINGS LIMITED (REGISTERED NUMBER: 00280349) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST JANUARY 2024 |
1. | ACCOUNTING POLICIES - continued |
Investments |
Shares in subsidiaries are valued at cost less provision for permanent impairment. Listed investments held as fixed assets are included at fair value and gains and losses are recognised in the income statement. |
Judgements and estimation uncertainty |
The directors have made judgements in relation to whether there are any indicators of impairment of the company's tangible fixed assets. |
Estimation uncertainty relates to tangible fixed assets, turnover and amounts recoverable on contracts. |
2. | TURNOVER |
The total turnover of the group for the year has been derived from its principal activity wholly undertaken in the United Kingdom. |
3. | EMPLOYEES AND DIRECTORS |
2024 | 2023 |
£ | £ |
Wages and salaries | 5,578,339 | 5,469,113 |
Social security costs | 508,956 | 565,502 |
Other pension costs | 441,098 | 442,977 |
6,528,393 | 6,477,592 |
The average number of employees during the year was as follows: |
2024 | 2023 |
Production | 94 | 94 |
Administration | 34 | 41 |
2024 | 2023 |
£ | £ |
Directors' remuneration | 151,098 | 179,961 |
Directors' pension contributions to money purchase schemes | 11,711 | 10,946 |
4. | OPERATING PROFIT/(LOSS) |
The operating profit (2023 - operating loss) is stated after charging/(crediting): |
2024 | 2023 |
£ | £ |
Other operating leases | 75,053 | 74,247 |
Depreciation - owned assets | 181,546 | 162,681 |
Profit on disposal of fixed assets | (15,840 | ) | (1,181 | ) |
Goodwill amortisation | 1,278 | 1,278 |
Auditors' remuneration | 31,079 | 26,500 |
LOWE HOLDINGS LIMITED (REGISTERED NUMBER: 00280349) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST JANUARY 2024 |
5. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2024 | 2023 |
£ | £ |
Bank loan interest | 30 | 337 |
Loan | 18,152 | 26,362 |
Hire purchase | 19,226 | 9,378 |
37,408 | 36,077 |
6. | TAXATION |
Analysis of the tax (credit)/charge |
The tax (credit)/charge on the profit for the year was as follows: |
2024 | 2023 |
£ | £ |
Deferred tax | (1,549 | ) | 426 |
Tax on profit/(loss) | (1,549 | ) | 426 |
Reconciliation of total tax (credit)/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: |
2024 | 2023 |
£ | £ |
Profit/(loss) before tax | 271,097 | (112,702 | ) |
Profit/(loss) multiplied by the standard rate of corporation tax in the UK of 25 % (2023 - 19 %) |
67,774 |
(21,413 |
) |
Effects of: |
Expenses not deductible for tax purposes | 9,706 | 16,662 |
Income not taxable for tax purposes | (2,725 | ) | - |
Capital allowances in excess of depreciation | (10,100 | ) | (9,808 | ) |
Utilisation of tax losses | (68,067 | ) | 14,559 |
Deferred tax | (1,549 | ) | 426 |
Chargeable gain | 543 | - |
Tax losses carried forward | 2,869 | - |
Total tax (credit)/charge | (1,549 | ) | 426 |
7. | INDIVIDUAL STATEMENT OF COMPREHENSIVE INCOME |
As permitted by Section 408 of the Companies Act 2006, the Statement of Comprehensive Income of the parent company is not presented as part of these financial statements. |
LOWE HOLDINGS LIMITED (REGISTERED NUMBER: 00280349) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST JANUARY 2024 |
8. | INTANGIBLE FIXED ASSETS |
Group |
Goodwill |
£ |
COST |
At 1st February 2023 |
and 31st January 2024 | 113,691 |
AMORTISATION |
At 1st February 2023 | 105,800 |
Amortisation for year | 1,278 |
At 31st January 2024 | 107,078 |
NET BOOK VALUE |
At 31st January 2024 | 6,613 |
At 31st January 2023 | 7,891 |
Goodwill of £88,138 arose on the acquisition of Stratford Holdings Limited and its subsidiaries (R F Webb Limited and R F Webb and Son Limited) on 9 February 2005. This has been fully impaired and an impairment loss of £74,917 has been recognised in the profit and loss account for 2009. |
Goodwill of £25,552 arose from the buy back of the shares held by the minority interest in 2010 and 2011. These amounts represent the difference between the valuation paid for them and the nominal value. These previous additions are being amortised to the profit and loss account over the estimated economic life which is considered to be 20 years. |
LOWE HOLDINGS LIMITED (REGISTERED NUMBER: 00280349) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST JANUARY 2024 |
9. | TANGIBLE FIXED ASSETS |
Group |
Improvements | Fixtures |
Freehold | to | and |
property | property | fittings |
£ | £ | £ |
COST |
At 1st February 2023 | 520,850 | 105,776 | 201,437 |
Additions | - | - | 19,481 |
Disposals | - | - | (6,088 | ) |
At 31st January 2024 | 520,850 | 105,776 | 214,830 |
DEPRECIATION |
At 1st February 2023 | 154,244 | 70,815 | 182,612 |
Charge for year | 10,417 | 5,579 | 13,658 |
Eliminated on disposal | - | - | (6,088 | ) |
At 31st January 2024 | 164,661 | 76,394 | 190,182 |
NET BOOK VALUE |
At 31st January 2024 | 356,189 | 29,382 | 24,648 |
At 31st January 2023 | 366,606 | 34,961 | 18,825 |
Motor | Computer |
vehicles | equipment | Totals |
£ | £ | £ |
COST |
At 1st February 2023 | 841,758 | 5,430 | 1,675,251 |
Additions | 176,822 | 625 | 196,928 |
Disposals | (139,536 | ) | (1,882 | ) | (147,506 | ) |
At 31st January 2024 | 879,044 | 4,173 | 1,724,673 |
DEPRECIATION |
At 1st February 2023 | 488,833 | 2,694 | 899,198 |
Charge for year | 150,599 | 1,293 | 181,546 |
Eliminated on disposal | (137,434 | ) | (1,882 | ) | (145,404 | ) |
At 31st January 2024 | 501,998 | 2,105 | 935,340 |
NET BOOK VALUE |
At 31st January 2024 | 377,046 | 2,068 | 789,333 |
At 31st January 2023 | 352,925 | 2,736 | 776,053 |
The net book value of tangible fixed assets includes an amount of £362,425 (2023 - £335,894) in respect of assets held under finance leases or hire purchase contracts. |
LOWE HOLDINGS LIMITED (REGISTERED NUMBER: 00280349) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST JANUARY 2024 |
9. | TANGIBLE FIXED ASSETS - continued |
Company |
Fixtures |
Freehold | and | Computer |
property | fittings | equipment | Totals |
£ | £ | £ | £ |
COST |
At 1st February 2023 |
Additions |
Disposals | ( |
) | ( |
) |
At 31st January 2024 |
DEPRECIATION |
At 1st February 2023 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) |
At 31st January 2024 |
NET BOOK VALUE |
At 31st January 2024 |
At 31st January 2023 |
10. | FIXED ASSET INVESTMENTS |
Group |
Listed | Unlisted |
investments | investments | Totals |
£ | £ | £ |
COST OR VALUATION |
At 1st February 2023 | 998,426 | 9,618 | 1,008,044 |
Additions | 1,261,592 | - | 1,261,592 |
Disposals | (753,714 | ) | - | (753,714 | ) |
Revaluations | (4,908 | ) | - | (4,908 | ) |
At 31st January 2024 | 1,501,396 | 9,618 | 1,511,014 |
NET BOOK VALUE |
At 31st January 2024 | 1,501,396 | 9,618 | 1,511,014 |
At 31st January 2023 | 998,426 | 9,618 | 1,008,044 |
LOWE HOLDINGS LIMITED (REGISTERED NUMBER: 00280349) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST JANUARY 2024 |
10. | FIXED ASSET INVESTMENTS - continued |
Group |
Cost or valuation at 31st January 2024 is represented by: |
Listed | Unlisted |
investments | investments | Totals |
£ | £ | £ |
Valuation in 2023 | 2,242 | - | 2,242 |
Valuation in 2024 | (4,908 | ) | - | (4,908 | ) |
Cost | 1,504,062 | 9,618 | 1,513,680 |
1,501,396 | 9,618 | 1,511,014 |
Company |
Shares in |
group | Listed | Unlisted |
undertakings | investments | investments | Totals |
£ | £ | £ | £ |
COST OR VALUATION |
At 1st February 2023 | 1,548,044 |
Additions | 1,261,592 |
Disposals | ( |
) | (753,714 | ) |
Revaluations | ( |
) | (4,908 | ) |
At 31st January 2024 | 2,051,014 |
NET BOOK VALUE |
At 31st January 2024 | 2,051,014 |
At 31st January 2023 | 1,548,044 |
Cost or valuation at 31st January 2024 is represented by: |
Shares in |
group | Listed | Unlisted |
undertakings | investments | investments | Totals |
£ | £ | £ | £ |
Valuation in 2023 | - | 2,242 | - | 2,242 |
Valuation in 2024 | - | (4,908 | ) | - | (4,908 | ) |
Cost | 540,000 | 1,504,062 | 9,618 | 2,053,680 |
540,000 | 1,501,396 | 9,618 | 2,051,014 |
LOWE HOLDINGS LIMITED (REGISTERED NUMBER: 00280349) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST JANUARY 2024 |
10. | 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: |
Subsidiary |
Registered office: UK |
Nature of business: |
% |
Class of shares: | holding |
2024 | 2023 |
£ | £ |
Aggregate capital and reserves |
Profit/(loss) for the year | ( |
) |
11. | STOCKS |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Work-in-progress | 137,196 | 137,196 |
12. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Trade debtors | 3,871,510 | 2,230,353 |
Amounts owed by participating interests | 501 | 51 | 70,906 | 37,623 |
Amounts recoverable on |
contracts | 1,381,167 | 2,328,434 |
Other debtors | 682 | 1,713 |
VAT | - | 228,809 |
Deferred tax asset | 1,123 | - | 1,123 | - |
Called up share capital not paid | - | 500,000 |
Prepayments | 288,947 | 231,203 |
5,543,930 | 5,520,563 |
Deferred tax asset |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Deferred tax | 1,123 | - | 1,123 | - |
LOWE HOLDINGS LIMITED (REGISTERED NUMBER: 00280349) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST JANUARY 2024 |
13. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Bank loans and overdrafts (see note 15) | 180,000 | 180,000 |
Hire purchase contracts (see note 16) | 120,826 | 112,935 |
Payments on account | 1,849,286 | 328,543 |
Trade creditors | 3,992,532 | 3,778,644 |
Amounts owed to group undertakings | - | - |
Amounts owed to participating interests | 22,407 | 220,211 | - | - |
Tax | 55 | 55 |
Social security and other taxes | 132,669 | 140,602 |
VAT | 9,113 | - | - | 207 |
Other creditors | 98,323 | 84,827 |
Accruals and deferred income | 247,010 | 193,071 |
6,652,221 | 5,038,888 |
14. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group |
2024 | 2023 |
£ | £ |
Bank loans (see note 15) | 240,000 | 420,000 |
Hire purchase contracts (see note 16) | 167,490 | 165,540 |
407,490 | 585,540 |
15. | LOANS |
An analysis of the maturity of loans is given below: |
Group |
2024 | 2023 |
£ | £ |
Amounts falling due within one year or on | demand: |
Bank loans | 180,000 | 180,000 |
Amounts falling due between one and two | years: |
Bank loans - 1-2 years | 180,000 | 180,000 |
Amounts falling due between two and five | years: |
Bank loans - 2-5 years | 60,000 | 240,000 |
The loan is repayable monthly over 5 years with interest charged at a fixed rate of 3.44%. |
LOWE HOLDINGS LIMITED (REGISTERED NUMBER: 00280349) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST JANUARY 2024 |
16. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Hire purchase contracts |
2024 | 2023 |
£ | £ |
Net obligations repayable: |
Within one year | 120,826 | 112,935 |
Between one and five years | 167,490 | 165,540 |
288,316 | 278,475 |
Group |
Non-cancellable operating | leases |
2024 | 2023 |
£ | £ |
Within one year | 50,753 | 30,826 |
Between one and five years | 75,698 | 23,784 |
126,451 | 54,610 |
17. | SECURED DEBTS |
The following secured debts are included within creditors: |
Group |
2024 | 2023 |
£ | £ |
Bank loans | 420,000 | 600,000 |
Hire purchase contracts | 288,316 | 278,475 |
708,316 | 878,475 |
Amounts due in respect of hire purchase are secured on the specific assets to which the agreements relate to. |
The Coronavirus Business Interruption Loan is secured by way of a debenture over all other assets. |
18. | PROVISIONS FOR LIABILITIES |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Deferred tax | - | 426 | - | 426 |
LOWE HOLDINGS LIMITED (REGISTERED NUMBER: 00280349) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST JANUARY 2024 |
18. | PROVISIONS FOR LIABILITIES - continued |
Group |
Deferred |
tax |
£ |
Balance at 1st February 2023 | 426 |
Provided during year | (1,227 | ) |
Unused amounts reversed during year | (322 | ) |
Balance at 31st January 2024 | (1,123 | ) |
Company |
Deferred |
tax |
£ |
Balance at 1st February 2023 |
Provided during year | ( |
) |
Unused amounts reversed during year | ( |
) |
Balance at 31st January 2024 | ( |
) |
19. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2024 | 2023 |
value: | £ | £ |
'A' Ordinary shares | £1 | 7,304 | 7,304 |
'B' Ordinary shares | £1 | 23,040 | 23,040 |
4.2% Cumulative Preference sha | £1 | 200 | 200 |
30,544 | 30,544 |
The 'A' Ordinary shares have the right to participate in all dividends and the right to receive notice, attend, speak and vote at all general meetings of the company. |
The 'B' Ordinary shares rank 'pari passu' with the 'A' Ordinary shares in all respects except that they hold no voting rights and hence no right to participate at any general meetings. |
The 4.2% Cumulative preference shares are entitled to 4.2% cumulative dividends only. In the event of a winding up, the holders of these shares are entitled to any arrears of the dividends and repayments of their share capital to the extent that the shares are paid up. Any surplus on a winding up will be distributed to the equity shareholders. The preference shareholders have waived their right to the accrued dividend due on the shares. |
LOWE HOLDINGS LIMITED (REGISTERED NUMBER: 00280349) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST JANUARY 2024 |
20. | RELATED PARTY DISCLOSURES |
The group charged a management fee of £44,067 (2023: £57,800) to a company related by virtue of common control. At 31 January 2024 an amount of £22,406 was owed to the related party (2023: £17,691) |
A company controlled by RJG Lowe owes £501 (2023: creditor £202,520) at 31 January 2024. |
Included within other creditors is an amount of £15,865 (2023: £2,590) due to the estate of PG Lowe. |
Key management personnel include all statutory directors who together have authority and responsibility for planning, directing and controlling the activities of the group. The total compensation paid to key management personnel amounted to £263,538 (2023: £228,632). |
Included in debtors in 2023 was an amount owed of £500,000 from the estate of PG Lowe for shares alloted in the year. This was paid during the year ended 31st January 2024. |
21. | POST BALANCE SHEET EVENTS |
In May, September and October 2024 the company undertook a total capital reduction of 11,802 Ordinary B shares. |
22. | PENSION AND OTHER POST- RETIREMENT BENEFIT COMMITMENTS |
The group operates a number of defined contribution pension schemes. The pension costs charge represents contributions payable by the group to the fund and amounted to £441,098 (2023: £442,977). Contributions totalling £26,070 (2023: £24,955) were payable to the fund at the balance sheet date and are included in creditors. |
23. | CONTROLLING PARTIES |
RJG Lowe is considered to be the ultimate controlling party by virtue of his shareholding in the company. |
24. | GENERAL INFORMATION |
Lowe Holdings Limited is a limited company incorporated in England. Its registered office address is disclosed on page 1. The principal activity is disclosed in the directors' report. The financial statements are presented in Sterling, which is also the functional currency of the Company. |