Lockwood Holdings Limited
Annual report and Financial Statements
For the year ended 31 January 2024
Lockwood Holdings Limited
Company information
Director
Mr R I Lockwood
Company number
09169225
Registered office
Ripley Road
Sawmills
Ambergate
Derbyshire
DE56 2JR
Auditor
DJH Audit Limited
The Glades
Festival Way
Festival Park
Stoke on Trent
Staffordshire
ST1 5SQ
Lockwood Holdings Limited
Contents
Page
Strategic report
1 - 4
Director's report
5 - 6
Independent auditor's report
7 - 10
Income statement
11
Group statement of comprehensive income
12
Group statement of financial position
13 - 14
Company statement of financial position
15
Group statement of changes in equity
16
Company statement of changes in equity
17
Group statement of cash flows
18
Notes to the financial statements
19 - 39
Lockwood Holdings Limited
Strategic report
For the year ended 31 January 2024
- 1 -

The director presents the strategic report for the year ended 31 January 2024.

Review of the business

We aim to present a balanced and comprehensive review of the development and performance of our business during the year and its position at the year end. Our review is consistent with the size and non-complex nature of our business and is written in the context of the risks and uncertainties we face.

 

We consider that our key performance indicators are those that communicate the financial performance and strength of the Group as a whole, these being turnover, gross and operating profit margin.

 

Lockwood Holdings Limited is a non-trading holding company of 6 subsidiaries as listed below. Our report below covers the group results as a whole.

 

Principal activities of the subsidiary undertakings:-

 

Lockwoods Limited – Production and distribution of mushy peas and contract packaging.

Lockwood Group Limited – Holding company.

Lockwood Haulage Limited – Haulage and warehousing.

Lockwood Properties Limited – Other income.

Lockwood Freight Services Limited - Dormant.

Beanacre Enterprises Limited - Haulage

 

As for many businesses of our size, the business environment in which we operate continues to be challenging. The market for our services is highly competitive and margins continue to be tight.

The directors are aware of the current economic climate and of the inherent risks of this. They feel that due to the group's strong place in the market, the group will adapt strongly to the market conditions aided by the strong group reserves.

 

Although the war in Ukraine and subsequent increases in energy and fuel have affected costs, the group has continued to trade strongly.

 

With these risks and uncertainties in mind, we are aware that any plans for the future development of the business may be subject to unforeseen events outside of our control.

Lockwood Holdings Limited
Strategic report (continued)
For the year ended 31 January 2024
- 2 -
Principal risks and uncertainties

Key risks and uncertainties for the group include:

 

Fuel Costs

The upcoming budget and potential increase in fuel duty costs may impact operations; however, we will mitigate such risks by ensuring efficient route planning and high levels of maintenance of the fleet to ensure we are optimizing the fleet to its maximum.

 

Employee Shortages

The company consistently attracts employees due to its strong reputation and a diverse range of job opportunities. Subcontractors are used as needed to manage workflow.

 

Credit Risk

The company seeks to reduce financial risks from customers not meeting their obligations by implementing credit control processes and setting appropriate credit limits for all clients.

 

Inflation Risk

The company consistently reviews pricing strategies and operational efficiencies during the period to mitigate the impact of inflation wherever possible.

 

Interest Rate Risk

The company funds its operations through a combination of retained earnings and external borrowings, which are subject to floating rates. Although the rise in interest rates during and after the year-end will affect the business, the company's finances are carefully managed to account for these.

Development and performance

We will be looking over the financial year to increase our gross and net profit margins.

We will do this by continuing to invest in our fleet and warehousing capacity alongside further reduction in the use of subcontractors.

In the coming year, we do not know how the government guidelines will affect our trading performance. The upcoming budget and potential increased in fuel duty costs may impact, however we will mitigate such risks by ensuring efficient route planning and high level of maintenance of the fleet to ensure we are optimising the fleet to its maximum.

Key performance indicators

Key performance indicators for the last 4 years are set out below:

 

2024      2023      2022      2021         

Sales turnover        £28.1m £27.2m         £25.3m        £42.1m            

Gross Profit        £8.1m     £7.2m        £7.3m        £11.6m        

Operating Profit     £1.4m     £1.6m         £2.0m        £4.8m                

 

 

The directors report that group turnover for the year has increased to £28.1m (2023 - £27.2m).

 

The increased turnover is mainly due to the acquisition of Beanacre Enterprises Limited during the year.

 

The gross profit margin for the year increased to 28.8% (2023 - 26.7%) with the operating profit margin decreasing to 4.9% (2023 - 5.9%).

 

Lockwood Holdings Limited
Strategic report (continued)
For the year ended 31 January 2024
- 3 -
Section 172(1) Statement

The directors are bound by their duties under Companies Act 2006 (the 'Act') and understand each duty

is in the interest of the overall success of the company. This statement sets out how the directors have

regard to the matters set out in Section 172 of the Act whilst understanding their roles, including but not

limited to the:

 

 

Further information regarding our engagement can be found on our website https://lockwoodgroup.co.uk.

Engagement with employees

As a family run business, the family values of the directors run through the organisation and we believe

that is key to long-term success, the people are valued, recognised and listened to, whether that is in the

office, garage, warehouse or on the road. Management teams have regular meetings and all employees

are kept up to date with any developments or requirements.

Engagement with suppliers, customers and others

The directors believe that the key to success and continuation of growth is by building long-term sustainable relationships with our suppliers, providing training, support and management to our employees which in turn will allow the high standard business activities to align with the service our customers expect.

 

The key suppliers are vehicle and equipment providers along with fuel suppliers, the directors have great long term relationships with all and this allows the business to be on the front foot of any new vehicle releases, have the capital expenditure planned in advance and allows the company to access fuel at great rates across the country. Other key relationships are with the bank and finance lenders, these relationships have been built up over many years and allow the company to attract the best products available.

 

The company continues to challenge working practices to improve environmental performance, cost reductions and look to develop more streamlined operations to minimise consumption and reduce waste. We are constantly in discussions with customers and suppliers to develop new ways of working to reduce our consumption and engage and develop technology to move forwards and improve our environmental performance.

 

Due to the nature of the business, we will continue to need diesel fuel for the foreseeable, we look to invest in new technology to reduce emissions.

We use state of the art telematics, enhanced management systems and a modern aerodynamic fleet with the latest vehicle technology to reduce our consumption.

 

The reputation of the group is paramount to the directors and the decisions made are of the highest standard.

 

Lockwood Holdings Limited
Strategic report (continued)
For the year ended 31 January 2024
- 4 -

On behalf of the board

Mr R I Lockwood
Director
31 October 2024
Lockwood Holdings Limited
Director's report
For the year ended 31 January 2024
- 5 -

The director presents his annual report and financial statements for the year ended 31 January 2024.

Principal activities

The principal activities of the group continued to be that of commercial maintenance services, haulage and distribution and the production of mushy peas.

 

The principal activity of the company continued to be that of a holding company.

Results and dividends

The results for the year are set out on page 11.

Ordinary dividends were paid amounting to £500,000. The director does not recommend payment of a further dividend.

Director

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

Mr R I Lockwood
Disabled persons

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

Employee involvement

The group's policy is to consult and discuss with employees, through unions, staff councils and at meetings, matters likely to affect employees' interests.

 

Information about matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the group's performance.

 

There is no employee share scheme at present, but the directors are considering the introduction of such a scheme as a means of further encouraging the involvement of employees in the company's performance.

Energy and carbon report

As Lockwood Holdings Limited is a large group, it is required to report on its emissions, energy consumption and energy efficiency by way of Streamlined Energy and Carbon Reporting in this Directors' report.

 

The group has consumed more than 40,000 kWh of energy in this reporting period, and it therefore does not qualify as a low energy user under these regulations.

 

However, no energy reporting information has been disclosed in these financial statements as the group has taken exemptions available in the Companies (Directors’ Report) and Limited Liability Partnerships (Energy and Carbon Report) Regulations 2018, Part 7A, Paragraph 20E which allows a group to exclude information for subsidiary companies that would not be required to report in their own right. All subsidiaries of Lockwood Holdings Limited are small or medium sized company's and so are not required to include energy reporting information in their own financial statements. On this basis, no information is required to be included in the group report.

Lockwood Holdings Limited
Director's report (continued)
For the year ended 31 January 2024
- 6 -
Statement of director's responsibilities

The director is responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the director is required to:

 

 

The director is 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. He is 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.

Strategic report

The truegroup has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the group's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report.

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.

On behalf of the board
Mr R I Lockwood
Director
31 October 2024
Lockwood Holdings Limited
Independent auditor's report
To the members of Lockwood Holdings Limited
- 7 -

Qualified Opinion

We have audited the financial statements of Lockwood Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 January 2024 which comprise the group income statement, the group statement of comprehensive income, the group statement of financial position, the company statement of financial position, the group statement of changes in equity, the company statement of changes in equity, the group 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, except for the effects of the matter described in the basis for qualified opinion section of our report, the financial statements:

Basis for qualified opinion

Included within the group financial statements are the results of a subsidiary acquired in the period Beanacre Enterprises Limited. We were not appointed as auditor of this company until after September 2023 when the company was acquired. Our work has been limited in the following key areas;

 

We have been unable to obtain sufficient accounting records to enable us to gather evidence to support the opening balance sheet position at acquisition.

 

At the date of approval of the financial statements, there were no other satisfactory audit procedures that we could adopt to satisfy ourselves that the above were free from material misstatement.

 

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 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 qualified opinion.

Conclusions relating to going concern

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

 

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

 

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

Lockwood Holdings Limited
Independent auditor's report (continued)
To the members of Lockwood Holdings Limited
- 8 -

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 director is 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

Except for the possible effects of the matters prescribed in the basis of qualification opinion section of our report, In our opinion, based on the work undertaken in the course of our audit:

 

Matters on which we are required to report by exception

In respect solely of the limitation on our work as described in the basis for qualified opinion paragraph;

 

 

Except for the matter described in the basis for qualified opinion section of our report, in the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report and the director's report.

 

Arising solely from the limitation on the scope of our work, referred to above:

 

 

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 director

As explained more fully in the director's responsibilities statement, the director is responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the director determines 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 director is 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 director either intends to liquidate the parent company or to cease operations, or has no realistic alternative but to do so.

Lockwood Holdings Limited
Independent auditor's report (continued)
To the members of Lockwood Holdings Limited
- 9 -
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.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.

 

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

 

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

 

 

We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

 

 

To address the risk of fraud through management bias and override of controls, we:

 

Lockwood Holdings Limited
Independent auditor's report (continued)
To the members of Lockwood Holdings Limited
- 10 -

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

 

 

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

 

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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.

Use of our report

This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Stacey Parr FCCA (Senior Statutory Auditor)
For and on behalf of DJH Audit Limited
31 October 2024
Accountants
Statutory Auditor
The Glades
Festival Way
Festival Park
Stoke on Trent
Staffordshire
ST1 5SQ
Lockwood Holdings Limited
Group income statement
For the year ended 31 January 2024
- 11 -
2024
2023
Notes
£
£
Turnover
3
28,137,313
27,246,093
Cost of sales
(20,009,786)
(20,017,781)
Gross profit
8,127,527
7,228,312
Administrative expenses
(7,264,655)
(6,274,129)
Other operating income
527,698
646,906
Operating profit
4
1,390,570
1,601,089
Interest receivable and similar income
8
12,841
-
0
Interest payable and similar expenses
9
(681,793)
(390,588)
Profit before taxation
721,618
1,210,501
Tax on profit
10
(316,676)
18,500
Profit for the financial year
404,942
1,229,001
Profit for the financial year is attributable to:
- Owners of the parent company
465,257
1,229,001
- Non-controlling interests
(60,315)
-
404,942
1,229,001
Lockwood Holdings Limited
Group statement of comprehensive income
For the year ended 31 January 2024
- 12 -
2024
2023
£
£
Profit for the year
404,942
1,229,001
Other comprehensive income
-
-
Total comprehensive income for the year
404,942
1,229,001
Total comprehensive income for the year is attributable to:
- Owners of the parent company
465,257
1,229,001
- Non-controlling interests
(60,315)
-
404,942
1,229,001
Lockwood Holdings Limited
Group statement of financial position
As at 31 January 2024
- 13 -
2024
2023
Notes
£
£
£
£
Fixed assets
Goodwill
12
43,952
-
0
Tangible assets
13
11,960,471
9,788,834
Investment property
14
8,313,218
7,015,487
Investments
15
49,520
-
0
20,367,161
16,804,321
Current assets
Stocks
17
415,600
371,813
Debtors
18
6,861,517
6,531,125
Cash at bank and in hand
5,343,861
6,058,124
12,620,978
12,961,062
Creditors: amounts falling due within one year
19
(12,655,404)
(11,547,774)
Net current (liabilities)/assets
(34,426)
1,413,288
Total assets less current liabilities
20,332,735
18,217,609
Creditors: amounts falling due after more than one year
20
(9,603,149)
(7,754,326)
Provisions for liabilities
Deferred tax liability
23
786,676
410,189
(786,676)
(410,189)
Net assets
9,942,910
10,053,094
Capital and reserves
Called up share capital
25
2,075,000
2,075,000
Capital redemption reserve
2,075,000
2,075,000
Profit and loss reserves
5,868,351
5,903,094
Equity attributable to owners of the parent company
10,018,351
10,053,094
Non-controlling interests
(75,441)
-
9,942,910
10,053,094
Lockwood Holdings Limited
Group statement of financial position (continued)
As at 31 January 2024
- 14 -
The financial statements were approved and signed by the director and authorised for issue on 31 October 2024
31 October 2024
Mr R I Lockwood
Director
Company registration number 09169225 (England and Wales)
Lockwood Holdings Limited
Company statement of financial position
As at 31 January 2024
31 January 2024
- 15 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
13
6,300
-
0
Investment property
14
8,313,218
7,015,487
Investments
15
5,909,379
5,909,379
14,228,897
12,924,866
Current assets
Debtors
18
623,323
-
0
Cash at bank and in hand
554,727
602,857
1,178,050
602,857
Creditors: amounts falling due within one year
19
(2,645,228)
(2,077,158)
Net current liabilities
(1,467,178)
(1,474,301)
Total assets less current liabilities
12,761,719
11,450,565
Creditors: amounts falling due after more than one year
20
(3,237,997)
(2,094,506)
Provisions for liabilities
Deferred tax liability
23
1,600
-
0
(1,600)
-
Net assets
9,522,122
9,356,059
Capital and reserves
Called up share capital
25
2,075,000
2,075,000
Capital redemption reserve
2,075,000
2,075,000
Profit and loss reserves
5,372,122
5,206,059
Total equity
9,522,122
9,356,059

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 £666,062 (2023 - £2,501,935 profit).

The financial statements were approved and signed by the director and authorised for issue on 31 October 2024
31 October 2024
Mr R I Lockwood
Director
Company registration number 09169225 (England and Wales)
Lockwood Holdings Limited
Group statement of changes in equity
For the year ended 31 January 2024
- 16 -
Share capital
Capital redemption reserve
Profit and loss reserves
Total controlling interest
Non-controlling interest
Total
Notes
£
£
£
£
£
£
Balance at 1 February 2022
2,075,000
2,075,000
5,274,093
9,424,093
-
9,424,093
Year ended 31 January 2023:
Profit and total comprehensive income
-
-
1,229,001
1,229,001
-
1,229,001
Dividends
11
-
-
(600,000)
(600,000)
-
(600,000)
Balance at 31 January 2023
2,075,000
2,075,000
5,903,094
10,053,094
-
0
10,053,094
Year ended 31 January 2024:
Profit and total comprehensive income
-
-
465,257
465,257
(60,315)
404,942
Dividends
11
-
-
(500,000)
(500,000)
-
(500,000)
Acquisition of subsidiary
-
-
-
-
(15,126)
(15,126)
Balance at 31 January 2024
2,075,000
2,075,000
5,868,351
10,018,351
(75,441)
9,942,910
Lockwood Holdings Limited
Company statement of changes in equity
For the year ended 31 January 2024
- 17 -
Share capital
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 February 2022
2,075,000
2,075,000
3,304,124
7,454,124
Year ended 31 January 2023:
Profit and total comprehensive income for the year
-
-
2,501,935
2,501,935
Dividends
11
-
-
(600,000)
(600,000)
Balance at 31 January 2023
2,075,000
2,075,000
5,206,059
9,356,059
Year ended 31 January 2024:
Profit and total comprehensive income
-
-
666,063
666,063
Dividends
11
-
-
(500,000)
(500,000)
Balance at 31 January 2024
2,075,000
2,075,000
5,372,122
9,522,122
Lockwood Holdings Limited
Group statement of cash flows
For the year ended 31 January 2024
- 18 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
29
3,636,635
2,313,550
Interest paid
(681,793)
(390,588)
Income taxes paid
(412,196)
(334,385)
Net cash inflow from operating activities
2,542,646
1,588,577
Investing activities
Purchase of business
40,295
-
Purchase of tangible fixed assets
(732,918)
(438,685)
Proceeds from disposal of tangible fixed assets
260,715
7,701,013
Purchase of investment property
(1,297,731)
(7,015,487)
Purchase of investments
(49,520)
-
Repayment of loans
(10,927)
11,078
Interest received
12,841
-
0
Net cash (used in)/generated from investing activities
(1,777,245)
257,919
Financing activities
Repayment of borrowings
(57,360)
(18,841)
Proceeds from new bank loans
1,200,000
2,160,000
Repayment of bank loans
(80,964)
(1,373,740)
Payment of finance leases obligations
(2,078,895)
(1,818,660)
Dividends paid to equity shareholders
(500,000)
(600,000)
Net cash used in financing activities
(1,517,219)
(1,651,241)
Net (decrease)/increase in cash and cash equivalents
(751,818)
195,255
Cash and cash equivalents at beginning of year
2,344,809
2,149,554
Cash and cash equivalents at end of year
1,592,991
2,344,809
Relating to:
Cash at bank and in hand
5,343,861
6,058,124
Bank overdrafts included in creditors payable within one year
(3,750,870)
(3,713,315)
Lockwood Holdings Limited
Notes to the group financial statements
For the year ended 31 January 2024
- 19 -
1
Accounting policies
Company information

Lockwood Holdings Limited (“the company”) is a private company, limited by shares, domiciled and incorporated in England and Wales. The registered office is Ripley Road, Sawmills, Ambergate, Derby, Derbyshire, DE56 2JR.

 

The group consists of Lockwood Holdings 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 investment properties at fair value. The principal accounting policies adopted are set out below.

The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:

 

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.

Lockwood Holdings Limited
Notes to the group financial statements (continued)
For the year ended 31 January 2024
1
Accounting policies
(Continued)
- 20 -
1.2
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Lockwood Holdings 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 of the subsidiaries and the parent company are made up to 31 January 2024. 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.

1.3
Going concern

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

1.4
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.

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.

Revenue from contracts for the provision of 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 are recoverable.

Revenue from rentals of property, plant and machinery are recognised when the amount of revenue can be measure 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.

Lockwood Holdings Limited
Notes to the group financial statements (continued)
For the year ended 31 January 2024
1
Accounting policies
(Continued)
- 21 -
1.5
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 10 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.

1.6
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:

Freehold land and buildings
5 - 50 years straight line of cost
Leasehold land and buildings
10% straight line of cost
Leasehold improvements
10% - 20% straight line of cost
Plant and equipment
10% - 33% straight line of cost / reducing balance
Fixtures and fittings
10% - 33% straight line of cost / reducing balance
Motor vehicles
20% - 33% straight line of cost
Lorries and trailers
20% - 25% straight line of cost

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 income statement.

1.7
Investment property

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.

1.8
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 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.

Lockwood Holdings Limited
Notes to the group financial statements (continued)
For the year ended 31 January 2024
1
Accounting policies
(Continued)
- 22 -
1.9
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.

1.10
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.

1.11
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.

1.12
Financial instruments

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

 

Financial instruments are recognised in the group's statement of financial position 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, amounts due from fellow group companies 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.

Lockwood Holdings Limited
Notes to the group financial statements (continued)
For the year ended 31 January 2024
1
Accounting policies
(Continued)
- 23 -
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.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans 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.

Other financial liabilities

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.

Lockwood Holdings Limited
Notes to the group financial statements (continued)
For the year ended 31 January 2024
1
Accounting policies
(Continued)
- 24 -
1.13
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.

1.14
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 group’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.

 

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 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. 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.

1.15
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.

1.16
Retirement benefits

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

1.17
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.

Lockwood Holdings Limited
Notes to the group financial statements (continued)
For the year ended 31 January 2024
1
Accounting policies
(Continued)
- 25 -

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.

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.

1.18
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 director is 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.

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Depreciation rates and useful economic lives of tangible fixed assets

Management review the useful economic lives of the depreciable assets at each reporting date as to allocate the cost of the assets, less their residual values, over their estimated useful lives. Uncertainties in these estimates relate to the actual life of the tangible fixed assets.

Investment Property Valuation

At the year end the directors have assessed the fair value of the investment properties held. They believe their estimate is a fair reflection of current market conditions and the values are fairly stated, however given the current fluctuations in the market an element of estimation is required.

3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Haulage and warehousing
26,766,958
24,875,404
Manufacture of mushy peas
1,370,355
2,370,689
28,137,313
27,246,093
Lockwood Holdings Limited
Notes to the group financial statements (continued)
For the year ended 31 January 2024
3
Turnover and other revenue
(Continued)
- 26 -
2024
2023
£
£
Other revenue
Interest income
12,841
-
4
Operating profit
2024
2023
£
£
Operating profit for the year is stated after charging/(crediting):
Depreciation of owned tangible fixed assets
321,931
1,235,903
Depreciation of tangible fixed assets held under finance leases
2,018,062
1,023,610
Profit on disposal of tangible fixed assets
(166,961)
(246,753)
Amortisation of intangible assets
1,516
-
Operating lease charges
2,024,254
1,689,025
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
9,250
5,500
Audit of the financial statements of the company's subsidiaries
56,750
30,100
66,000
35,600
For other services
All other non-audit services
5,212
19,047
6
Employees

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

Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
Direct wages
338
258
-
-
Administration and management wages
40
38
-
-
Total
378
296
-
0
-
0
Lockwood Holdings Limited
Notes to the group financial statements (continued)
For the year ended 31 January 2024
6
Employees
(Continued)
- 27 -

Their aggregate remuneration comprised:

Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
10,263,493
9,980,124
205,765
-
0
Social security costs
1,282,389
1,018,092
27,141
-
Pension costs
358,905
225,718
-
0
-
0
11,904,787
11,223,934
232,906
-
0
7
Director's remuneration
2024
2023
£
£
Remuneration for qualifying services
205,765
-
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
205,765
200,000
8
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
12,750
-
0
Other interest income
91
-
Total income
12,841
-
0
9
Interest payable and similar expenses
2024
2023
£
£
Interest on bank overdrafts and loans
401,702
183,946
Interest on finance leases and hire purchase contracts
277,036
206,642
Other interest
3,055
-
Total finance costs
681,793
390,588
Lockwood Holdings Limited
Notes to the group financial statements (continued)
For the year ended 31 January 2024
- 28 -
10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
99,417
29,440
Deferred tax
Origination and reversal of timing differences
217,259
(47,940)
Total tax charge/(credit)
316,676
(18,500)

The actual charge/(credit) 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:

2024
2023
£
£
Profit before taxation
721,618
1,210,501
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
180,405
229,995
Tax effect of expenses that are not deductible in determining taxable profit
57,230
11,645
Tax effect of income not taxable in determining taxable profit
(4,794)
-
0
Tax effect of utilisation of tax losses not previously recognised
-
0
(12)
Unutilised tax losses carried forward
191,080
-
0
Effect of change in corporation tax rate
(1,787)
(5,241)
Depreciation on assets not qualifying for tax allowances
12,827
45,651
Deferred tax adjustments in respect of prior years
(141,913)
-
0
Capital allowances
29,724
-
0
Enhanced capital allowances
(3,240)
(91,630)
Deferred taxation not provided for
-
16,879
Revenue items capitalised
(2,856)
-
Permanent difference
-
(225,787)
Taxation charge/(credit)
316,676
(18,500)
11
Dividends
2024
2023
Recognised as distributions to equity holders:
£
£
Interim paid
500,000
600,000
Lockwood Holdings Limited
Notes to the group financial statements (continued)
For the year ended 31 January 2024
- 29 -
12
Intangible fixed assets
Group
Goodwill
£
Cost
At 1 February 2023
-
0
Additions - business combinations
45,468
At 31 January 2024
45,468
Amortisation and impairment
At 1 February 2023
-
0
Amortisation charged for the year
1,516
At 31 January 2024
1,516
Carrying amount
At 31 January 2024
43,952
At 31 January 2023
-
0
The company had no intangible fixed assets at 31 January 2024 or 31 January 2023.
Lockwood Holdings Limited
Notes to the group financial statements (continued)
For the year ended 31 January 2024
- 30 -
13
Tangible fixed assets
Group
Freehold land and buildings
Leasehold land and buildings
Leasehold improvements
Plant and equipment
Fixtures and fittings
Motor vehicles
Lorries and trailers
Total
£
£
£
£
£
£
£
£
Cost
At 1 February 2023
5,827,393
-
0
783,157
6,585,488
739,451
1,499,402
11,506,750
26,941,641
Additions
-
0
94,150
31,823
142,755
22,358
1,102,352
1,464,354
2,857,792
Business combinations
(3,498)
26,679
-
0
79,144
-
0
1,645,267
-
0
1,747,592
Disposals
-
0
-
0
-
0
(70,369)
-
0
(221,096)
(119,391)
(410,856)
At 31 January 2024
5,823,895
120,829
814,980
6,737,018
761,809
4,025,925
12,851,713
31,136,169
Depreciation and impairment
At 1 February 2023
2,031,350
-
0
652,064
5,407,303
596,237
445,824
8,020,029
17,152,807
Depreciation charged in the year
121,900
5,689
55,217
384,595
84,471
494,026
1,194,095
2,339,993
Eliminated in respect of disposals
-
0
-
0
-
0
(53,953)
-
0
(148,609)
(114,540)
(317,102)
At 31 January 2024
2,153,250
5,689
707,281
5,737,945
680,708
791,241
9,099,584
19,175,698
Carrying amount
At 31 January 2024
3,670,645
115,140
107,699
999,073
81,101
3,234,684
3,752,129
11,960,471
At 31 January 2023
3,796,043
-
0
131,093
1,178,185
143,214
1,053,578
3,486,721
9,788,834
Lockwood Holdings Limited
Notes to the group financial statements (continued)
For the year ended 31 January 2024
- 31 -
Company
Fixtures and fittings
£
Cost
At 1 February 2023
-
0
Additions
6,300
At 31 January 2024
6,300
Depreciation and impairment
At 1 February 2023 and 31 January 2024
-
0
Carrying amount
At 31 January 2024
6,300

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
2024
2023
2024
2023
£
£
£
£
Plant and equipment
550,783
652,758
-
0
-
0
Motor vehicles
181,876
67,813
-
0
-
0
Lorries and trailers
2,774,598
1,441,837
-
0
-
0
3,507,257
2,162,408
-
-
14
Investment property
Group
Company
2024
2024
£
£
Fair value
At 1 February 2023
7,015,487
7,015,487
Additions through external acquisition
1,297,731
1,297,731
At 31 January 2024
8,313,218
8,313,218

The properties have been acquired at fair value and at the balance sheet date the directors are happy that the carrying value is equal to the fair value.

Lockwood Holdings Limited
Notes to the group financial statements (continued)
For the year ended 31 January 2024
- 32 -
15
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
16
-
0
-
0
5,909,379
5,909,379
Unlisted investments
49,520
-
0
-
0
-
0
49,520
-
0
5,909,379
5,909,379
Movements in fixed asset investments
Group
Investments
£
Cost or valuation
At 1 February 2023
-
Additions
49,520
At 31 January 2024
49,520
Carrying amount
At 31 January 2024
49,520
At 31 January 2023
-
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 February 2023 and 31 January 2024
5,909,379
Carrying amount
At 31 January 2024
5,909,379
At 31 January 2023
5,909,379
16
Subsidiaries

Details of the company's subsidiaries at 31 January 2024 are as follows:

Lockwood Holdings Limited
Notes to the group financial statements (continued)
For the year ended 31 January 2024
16
Subsidiaries
(Continued)
- 33 -
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Indirect
Lockwood Haulage Limited
England and Wales
Ordinary
100.00
-
Lockwood Group Limited
England and Wales
Ordinary
100.00
-
Lockwood Freight Services Limited
England and Wales
Ordinary
0
100.00
Lockwoods Limited
England and Wales
Ordinary
100.00
-
Lockwood Properties Limited
England and Wales
Ordinary
100.00
-
Beanacre Enterprises Limited
England and Wales
Oridnary
0
75.00

The registered office of all subsidiaries is Lockwood Group Ripley Road, Sawmills, Ambergate, Derby, Derbyshire, DE56 2JR

17
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Raw materials and consumables
262,473
202,703
-
-
Finished goods and goods for resale
153,127
169,110
-
0
-
0
415,600
371,813
-
-
18
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
5,451,520
5,226,946
1,209
-
0
Amounts owed by group undertakings
-
-
612,857
-
Other debtors
52,925
85,194
257
-
0
Prepayments and accrued income
1,343,672
1,181,012
9,000
-
0
6,848,117
6,493,152
623,323
-
Deferred tax asset (note 23)
13,400
10,680
-
0
-
0
6,861,517
6,503,832
623,323
-
Amounts falling due after more than one year:
Deferred tax asset (note 23)
-
0
27,293
-
0
-
0
Total debtors
6,861,517
6,531,125
623,323
-
Lockwood Holdings Limited
Notes to the group financial statements (continued)
For the year ended 31 January 2024
- 34 -
19
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts
21
3,926,301
3,847,972
66,102
54,694
Obligations under finance leases
22
2,341,645
1,814,872
-
0
-
0
Other borrowings
21
817,587
844,220
-
0
-
0
Trade creditors
2,008,005
1,994,159
134
-
0
Amounts owed to group undertakings
-
0
-
0
2,405,676
2,009,328
Corporation tax payable
99,417
26,434
34,258
2,336
Other taxation and social security
662,046
961,108
39,721
-
Other creditors
1,043,924
519,009
-
0
10,800
Accruals and deferred income
1,756,479
1,540,000
99,337
-
0
12,655,404
11,547,774
2,645,228
2,077,158

Amounts due under finance leases are secured against the assets which they relate to.

20
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts
21
6,236,180
5,157,918
3,237,997
2,094,506
Obligations under finance leases
22
3,366,969
2,596,408
-
0
-
0
9,603,149
7,754,326
3,237,997
2,094,506

Amounts due under finance leases are secured against the assets which they relate to.

Amounts included above which fall due after five years are as follows:
Payable by instalments
5,495,118
4,512,785
2,879,090
1,832,486
Lockwood Holdings Limited
Notes to the group financial statements (continued)
For the year ended 31 January 2024
- 35 -
21
Loans and overdrafts
Group
Company
2024
2023
2024
2023
£
£
£
£
Bank loans
6,411,611
5,292,575
3,304,099
2,149,200
Bank overdrafts
3,750,870
3,713,315
-
0
-
0
Other loans
817,587
844,220
-
0
-
0
10,980,068
9,850,110
3,304,099
2,149,200
Payable within one year
4,743,888
4,692,192
66,102
54,694
Payable after one year
6,236,180
5,157,918
3,237,997
2,094,506

The bank overdraft facilities and loans are secured by a scheduled mortgage debenture incorporating fixed and floating charges over the group companies assets.

 

 

22
Finance lease obligations
Group
Company
2024
2023
2024
2023
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
1,407,075
1,814,872
-
0
-
0
In two to five years
4,301,539
2,497,328
-
0
-
0
In over five years
-
0
99,080
-
0
-
0
5,708,614
4,411,280
-
-

Finance lease payments represent rentals payable by the company or group 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 3 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

Lockwood Holdings Limited
Notes to the group financial statements (continued)
For the year ended 31 January 2024
- 36 -
23
Deferred taxation

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

Liabilities
Liabilities
Assets
Assets
2024
2023
2024
2023
Group
£
£
£
£
Accelerated capital allowances
1,147,536
410,189
13,400
37,973
Tax losses
(361,114)
-
-
-
Retirement benefit obligations
254
-
-
-
786,676
410,189
13,400
37,973
Liabilities
Liabilities
Assets
Assets
2024
2023
2024
2023
Company
£
£
£
£
Accelerated capital allowances
1,600
-
-
-
Group
Company
2024
2024
Movements in the year:
£
£
Liability at 1 February 2023
372,216
-
Charge to profit or loss
401,060
1,600
Liability at 31 January 2024
773,276
1,600
24
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
358,905
225,718

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.

Lockwood Holdings Limited
Notes to the group financial statements (continued)
For the year ended 31 January 2024
- 37 -
25
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
2,075,000
2,075,000
2,075,000
2,075,000

The company has one class of ordinary share with rights to receive notice of, attend and participate in general meetings and vote on resolutions.

 

26
Acquisition of a business

On 21 September 2023 the group acquired 75% percent of the issued capital of Beanacre Enterprises Limted.

Book Value
Adjustments
Fair Value
Net assets acquired
£
£
£
Property, plant and equipment
1,656,316
-
1,656,316
Inventories
25,535
-
25,535
Trade and other receivables
1,566,620
-
1,566,620
Cash and cash equivalents
40,385
-
40,385
Borrowings
(30,737)
10
(30,727)
Obligations under finance leases
(1,160,079)
-
(1,160,079)
Trade and other payables
(1,467,802)
-
(1,467,802)
Tax liabilities
(494,990)
-
(494,990)
Deferred tax
(74,573)
-
(74,573)
Total identifiable net assets
60,675
10
60,685
Non-controlling interests
(15,126)
Goodwill
(45,469)
Total consideration
90
The consideration was satisfied by:
£
Cash
90
Contribution by the acquired business for the reporting period included in the group statement of comprehensive income since acquisition:
£
Turnover
2,588,566
Loss after tax
(241,263)
Lockwood Holdings Limited
Notes to the group financial statements (continued)
For the year ended 31 January 2024
- 38 -
27
Financial commitments, guarantees and contingent liabilities

Company

 

An unlimited multilateral guarantee was given to National Westminster Bank Plc by the company and its fellow group companies, dated 31 January 2023 against the company and group's combined bank facilities.

28
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
2024
2023
2024
2023
£
£
£
£
Within one year
683,271
831,574
-
-
Between two and five years
2,753,882
2,389,882
-
-
In over five years
3,338,009
3,783,980
-
-
6,775,162
7,005,436
-
-
29
Cash generated from group operations
2024
2023
£
£
Profit for the year after tax
404,942
1,229,001
Adjustments for:
Taxation charged/(credited)
316,676
(18,500)
Finance costs
681,793
390,588
Investment income
(12,841)
-
0
Gain on disposal of tangible fixed assets
(166,961)
(246,753)
Amortisation and impairment of intangible assets
1,516
-
Depreciation and impairment of tangible fixed assets
2,339,993
2,259,513
Movements in working capital:
Increase in stocks
(18,252)
(71,578)
Decrease/(increase) in debtors
1,222,582
(1,332,920)
(Decrease)/increase in creditors
(1,132,813)
104,199
Cash generated from operations
3,636,635
2,313,550
Lockwood Holdings Limited
Notes to the group financial statements (continued)
For the year ended 31 January 2024
- 39 -
30
Analysis of changes in net debt - group
1 February 2023
Cash flows
New finance leases
31 January 2024
£
£
£
£
Cash at bank and in hand
6,058,124
(714,263)
-
5,343,861
Bank overdrafts
(3,713,315)
(37,555)
-
(3,750,870)
2,344,809
(751,818)
-
1,592,991
Borrowings excluding overdrafts
(6,136,795)
(1,092,403)
-
(7,229,198)
Obligations under finance leases
(4,411,280)
918,816
(2,216,150)
(5,708,614)
(8,203,266)
(925,405)
(2,216,150)
(11,344,821)
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