Company registration number 01531565 (England and Wales)
Lockwood Group Limited
financial statements
For the year ended 31 January 2024
Lockwood Group Limited
Contents
Page
Statement of financial position
1
Notes to the financial statements
2 - 9
Lockwood Group Limited
Statement of financial position
As at 31 January 2024
31 January 2024
- 1 -
2024
2023
as restated
Notes
£
£
£
£
Fixed assets
Tangible assets
4
5,692,298
5,866,311
Investments
5
190
100
5,692,488
5,866,411
Current assets
Debtors
6
2,566,885
2,170,962
Cash at bank and in hand
569,054
1,085,679
3,135,939
3,256,641
Creditors: amounts falling due within one year
7
(5,455,459)
(5,487,878)
Net current liabilities
(2,319,520)
(2,231,237)
Total assets less current liabilities
3,372,968
3,635,174
Creditors: amounts falling due after more than one year
8
(3,358,417)
(3,532,047)
Provisions for liabilities
16,024
Net assets
30,575
103,127
Capital and reserves
Called up share capital
200
200
Profit and loss reserves
30,375
102,927
Total equity
30,575
103,127
The directors of the company have elected not to include a copy of the income statement within the financial statements.true
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 30 October 2024 and are signed on its behalf by:
Mr R I Lockwood
Mr M D Ash
Director
Director
Company registration number 01531565 (England and Wales)
Lockwood Group Limited
Notes to the financial statements
For the year ended 31 January 2024
- 2 -
1
Accounting policies
Company information
Lockwood Group Limited is a private company limited by shares incorporated in England and Wales. The registered office is Ripley Road, Sawmills, Ambergate, Derby, DE56 2JR.
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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
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. The principal accounting policies adopted are set out below.
Lockwood Group Limited is a wholly owned subsidiary of Lockwood Holdings Limited and the results of Lockwood Group Limited are included in the consolidated financial statements of Lockwood Holdings Limited which are available from Companies House.
Related party exemption
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned companies within the group.
1.2
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for 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.
Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.
Revenue from rentals of property, plant and machinery are recognised when 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.
1.3
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.
Lockwood Group Limited
Notes to the financial statements (continued)
For the year ended 31 January 2024
1
Accounting policies
(Continued)
- 3 -
Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:
Freehold land and buildings
2% and 10% on cost per annum
Plant and equipment
25% reducing balance
Fixtures and fittings
25% and 33% reducing balance
Motor vehicles
20% and 25% on cost per annum
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 credited or charged to profit or loss.
1.4
Fixed asset investments
Interests in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
1.5
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible 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).
1.6
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.7
Financial instruments
The company 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 company's statement of financial position when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with 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, cash and bank balances and amounts due from fellow group companies, 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.
Lockwood Group Limited
Notes to the financial statements (continued)
For the year ended 31 January 2024
1
Accounting policies
(Continued)
- 4 -
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 company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans and overdrafts and loans from fellow group companies, 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.
1.8
Equity instruments
Equity instruments issued by the company 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 company.
1.9
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 income statement 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 company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
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.
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 income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity.
Lockwood Group Limited
Notes to the financial statements (continued)
For the year ended 31 January 2024
1
Accounting policies
(Continued)
- 5 -
1.10
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.
1.11
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.12
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 statement of financial position 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.
Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.
2
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
9,250
8,350
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Total
12
12
Lockwood Group Limited
Notes to the financial statements (continued)
For the year ended 31 January 2024
- 6 -
4
Tangible fixed assets
Freehold land and buildings
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 February 2023
5,994,928
574,176
255,328
699,994
7,524,426
Additions
6,640
156,782
163,422
Disposals
(32,000)
(32,000)
At 31 January 2024
5,994,928
574,176
261,968
824,776
7,655,848
Depreciation and impairment
At 1 February 2023
808,654
554,679
213,588
81,194
1,658,115
Depreciation charged in the year
125,398
8,876
22,588
161,499
318,361
Eliminated in respect of disposals
(12,926)
(12,926)
At 31 January 2024
934,052
563,555
236,176
229,767
1,963,550
Carrying amount
At 31 January 2024
5,060,876
10,621
25,792
595,009
5,692,298
At 31 January 2023
5,186,274
19,497
41,740
618,800
5,866,311
5
Fixed asset investments
2024
2023
£
£
Shares in group undertakings and participating interests
190
100
Movements in fixed asset investments
Shares in subsidiaries
£
Cost or valuation
At 1 February 2023
100
Additions
90
At 31 January 2024
190
Carrying amount
At 31 January 2024
190
At 31 January 2023
100
Lockwood Group Limited
Notes to the financial statements (continued)
For the year ended 31 January 2024
- 7 -
6
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
212
16,741
Amounts owed by group undertakings
2,417,344
2,063,471
Other debtors
149,329
74,726
2,566,885
2,154,938
2024
2023
Amounts falling due after more than one year:
£
£
Deferred tax asset
16,024
Total debtors
2,566,885
2,170,962
7
Creditors: amounts falling due within one year
2024
2023
£
£
Bank loans and overdrafts
3,831,947
3,793,278
Trade creditors
120,942
113,877
Amounts owed to group undertakings
272,808
436
Taxation and social security
132,604
188,043
Other creditors
1,097,158
1,392,244
5,455,459
5,487,878
The bank overdraft is secured by a charge over group assets.
The bank loans are secured by means of fixed and floating charges over the company's assets.
Included in other creditors are amounts due under finance leases of £106,843 (2023 - £109,477), these are secured against the assets which they relate to.
8
Creditors: amounts falling due after more than one year
2024
2023
£
£
Bank loans and overdrafts
2,998,183
3,063,412
Other creditors
360,234
468,635
3,358,417
3,532,047
Lockwood Group Limited
Notes to the financial statements (continued)
For the year ended 31 January 2024
8
Creditors: amounts falling due after more than one year
(Continued)
- 8 -
The bank loans are secured by means of fixed and floating charges over the company's assets.
Included in other creditors are amounts due under finance leases of £360,234 (2023 - £468,635), these are secured against the assets which they relate to.
Creditors which fall due after five years are as follows:
2024
2023
£
£
Payable by instalments
2,616,028
2,680,299
9
Audit report information
As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:
The auditor's report was unqualified.
Senior Statutory Auditor:
Stacey Parr FCCA
Statutory Auditor:
DJH Audit Limited
Date of audit report:
31 October 2024
10
Financial commitments, guarantees and contingent liabilities
An unlimited multilateral guarantee was given to National Westminster Bank Plc by the company and its fellow group companies, dated 21 October 2014 against the company and groups combined bank facilities.
11
Directors' transactions
The advance is unsecured, repayable on demand and interest is charged at HMRC's official rate of interest per annum, where the balance exceeds £10,000.
Description
% Rate
Opening balance
Amounts advanced
Interest charged
Amounts repaid
Closing balance
£
£
£
£
£
Directors loan account
2.25
17,536
510,872
91
(500,924)
27,575
17,536
510,872
91
(500,924)
27,575
The directors' loans above are repayable on demand.
Lockwood Group Limited
Notes to the financial statements (continued)
For the year ended 31 January 2024
- 9 -
12
Parent company
The ultimate parent company is Lockwood Holdings Limited, incorporated in England and Wales.
Their registered office address is Lockwood Group Ripley Road, Sawmills, Ambergate, Derbyshire, DE56 2JR.
The largest and smallest group in which the results of the company are consolidated is that headed by Lockwood Holdings Limited, incorporated in England and Wales. The consolidated accounts of this company are publicly available from Companies House. No other group accounts include the results of this company.
13
Prior period adjustment
Adjustments to equity
The prior period adjustments do not give rise to any effect upon equity.
Notes to adjustments
Property disposal correction
A prior period adjustment has been processed to correct the property disposal value by £351,815 and depreciation on disposal by £351,815. This adjustment has had no impact on the profit or closing reserves position of the company.
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