Company registration number 08845581 (England and Wales)
LEONARI LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024
Richard Anthony
Chartered Accountants and Registered Auditors
LEONARI LIMITED
COMPANY INFORMATION
Directors
Mr S Londos
Mr J E Cunningham
Company number
08845581
Registered office
3rd Floor, New Hibernia House
Winchester Walk
London
SE1 9AG
Auditor
Richard Anthony
Ground Floor Cooper House
316 Regents Park Road
London
United Kingdom
N3 2JX
LEONARI LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 9
Profit and loss account
10
Balance sheet
11
Statement of changes in equity
12
Statement of cash flows
13
Notes to the financial statements
14 - 22
LEONARI LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 JANUARY 2024
- 1 -

The directors present the strategic report for the year ended 31 January 2024.

Review of the business

Leonari is a Mechanical & Electrical building services contractor operating in London and the South East, specializing in design and installation across commercial, residential, retail, and educational sectors.

Key Highlights:

Principal risks and uncertainties

We acknowledge several principal risks within our business:

LEONARI LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 2 -

Results and Performance Including Key Performance Indicators

Financial Overview:

    Year    Turnover    Cash at Bank    Net Current Assets    Net Assets

    2024    £22.2m        £5.2m        £2.12m            £2.13m

    2023    £17.6m        £3.1m        £2.42m            £1.85m

Key performance indicators

 

This strategic report outlines our robust position in the market and our commitment to sustainable growth while proactively managing risks and enhancing our operational capabilities. We look forward to continuing this trajectory in the coming year.

Other information and explanations

There are no matters to report other than the information stated above.

On behalf of the board

Mr S Londos
Director
30 October 2024
LEONARI LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 JANUARY 2024
- 3 -

The directors present their annual report and financial statements for the year ended 31 January 2024.

Principal activities

The principal activity of the company continued to be that of specialised construction activities.

Directors

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

Mr S Londos
Mr J E Cunningham
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 company’s auditor 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 company’s auditor is aware of that information.

Medium-sized companies exemption

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

On behalf of the board
Mr S Londos
Director
30 October 2024
LEONARI LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 JANUARY 2024
- 4 -

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

 

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

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

LEONARI LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF LEONARI LIMITED
- 5 -
Opinion

We have audited the financial statements of Leonari Limited (the 'company') for the year ended 31 January 2024 which comprise the profit and loss account, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

 

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

 

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

Other information

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

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

LEONARI LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF LEONARI LIMITED (CONTINUED)
- 6 -
Matters on which we are required to report by exception

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

 

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the 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 company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

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

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

The company is subject to laws and regulations that directly affect the financial statements including financial reporting legislation. We determined that the following laws and regulations were most significant:

 

We assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.

 

We understood how the company is complying with those legal and regulatory frameworks by making inquiries of management and those responsible for legal and compliance procedures.

 

The engagement partner assessed whether the engagement team collectively had the appropriate competence and capabilities to identify or recognise non-compliance with these laws and regulations. The assessment did not identify any issues in this area.

 

With the exception of any known or possible non-compliance and as required by auditing standards, our work in respect of these was limited to the enquiry of the Directors.

LEONARI LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF LEONARI LIMITED (CONTINUED)
- 7 -

We assessed the susceptibility of the company's financial statements to material misstatement, including how fraud might occur. Audit procedures performed by the engagement team included:

 

As a result of the above procedures, we considered the opportunities and incentives that may exist within the company for fraud and identified the greatest potential existed within the recording and recognition of revenue and inter company transactions and balances.

 

Our procedures in these respects were focused on the origination of revenue and directed towards ensuring the accuracy and completeness of the same by undertaking testing on a sample basis of the revenue items to ensure that it has been received and recorded accordingly. Additionally, we also focused on the existence of inter company transactions and balances and directed audit testing towards the accuracy and completeness of the same. We consider that the work we undertook in this regard was considered capable of detecting irregularities and fraud within the revenue cycle and inter company cycle.

 

Due to 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 regulations. 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. Therefore, if a breach of operational regulations is not disclosed to us or evident from relevant correspondence, an audit will not detect that breach. The risk is also greater regarding irregularities occurring to fraud other than error, as fraud involves intentional concealment, forgery, collusion, omission, or misrepresentation.

We assessed the susceptibility of the entity's financial statements to material misstatement, including how fraud might occur. Audit procedures performed by the engagement team included:

 

LEONARI LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF LEONARI LIMITED (CONTINUED)
- 8 -

As a result of the above procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential existed within the recording and recognition of revenue

 

Based on our understanding of the company and industry, we identified the principal risk to the audit as follows:

 

- Management override of control;

 

- Revenue recognition and the related estimation;

 

- Identification and disclosure of related party transactions;

 

- Estimation and recognition of project costs

 

We focussed on those areas that could give rise to a material misstatement in the company financial statements. Our procedures included but were not limited to:

 

- Enquiry of management and those charged with governance around actual and potential litigation and claims, including instances of non-compliance with laws and regulations and fraud;

 

- Reviewing minutes of meetings with those charged with governance where available;

 

- Reviewing legal expenditure in the year to identify instances of non-compliance with laws and regulations and fraud;

 

- Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;

 

- Performing audit work over the risk of management of controls, including testing of journal entries and other adjustments for appropriateness.

 

Due to 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 regulations. 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. Therefore, if a breach of operational regulations is not disclosed to us or evident from relevant correspondence, an audit will not detect that breach. The risk is also greater regarding irregularities occurring to fraud other than error, as fraud involves intentional concealment, forgery, collusion, omission, or misrepresentation.

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.

LEONARI LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF LEONARI LIMITED (CONTINUED)
- 9 -
Michael Barnett BA FCA
Senior Statutory Auditor
For and on behalf of Richard Anthony
30 October 2024
Chartered Accountants
Statutory Auditor
Ground Floor Cooper House
316 Regents Park Road
London
United Kingdom
N3 2JX
LEONARI LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 JANUARY 2024
- 10 -
2024
2023
Notes
£
£
Turnover
22,246,874
17,068,779
Cost of sales
(16,822,822)
(12,829,545)
Gross profit
5,424,052
4,239,234
Administrative expenses
(1,551,745)
(1,308,945)
Other operating income
-
0
6,460
Operating profit
3,872,307
2,936,749
Interest receivable and similar income
25,994
2,341
Interest payable and similar expenses
(32,810)
(37,224)
Profit before taxation
3,865,491
2,901,866
Tax on profit
4
(934,676)
(373,298)
Profit for the financial year
2,930,815
2,528,568

The profit and loss account has been prepared on the basis that all operations are continuing operations.

LEONARI LIMITED
BALANCE SHEET
AS AT
31 JANUARY 2024
31 January 2024
- 11 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
5
9,011
2,839
Current assets
Debtors
6
4,995,294
5,718,265
Cash at bank and in hand
5,201,507
3,123,496
10,196,801
8,841,761
Creditors: amounts falling due within one year
7
(8,074,683)
(6,421,559)
Net current assets
2,122,118
2,420,202
Total assets less current liabilities
2,131,129
2,423,041
Creditors: amounts falling due after more than one year
8
-
0
(572,727)
Net assets
2,131,129
1,850,314
Capital and reserves
Called up share capital
10
100
100
Profit and loss reserves
2,131,029
1,850,214
Total equity
2,131,129
1,850,314

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

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 S Londos
Director
Company registration number 08845581 (England and Wales)
LEONARI LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JANUARY 2024
- 12 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 February 2022
100
1,550,000
1,550,100
Year ended 31 January 2023:
Profit and total comprehensive income
-
2,528,568
2,528,568
Dividends
-
(2,228,354)
(2,228,354)
Balance at 31 January 2023
100
1,850,214
1,850,314
Year ended 31 January 2024:
Profit and total comprehensive income
-
2,930,815
2,930,815
Dividends
-
(2,650,000)
(2,650,000)
Balance at 31 January 2024
100
2,131,029
2,131,129
LEONARI LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 JANUARY 2024
- 13 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
15
6,026,019
2,601,553
Interest paid
(32,810)
(37,224)
Income taxes paid
(510,993)
(214,501)
Net cash inflow from operating activities
5,482,216
2,349,828
Investing activities
Purchase of tangible fixed assets
(7,472)
(3,223)
Interest received
25,994
2,341
Net cash generated from/(used in) investing activities
18,522
(882)
Financing activities
Repayment of bank loans
(772,727)
(181,819)
Dividends paid
(2,650,000)
(2,228,354)
Net cash used in financing activities
(3,422,727)
(2,410,173)
Net increase/(decrease) in cash and cash equivalents
2,078,011
(61,227)
Cash and cash equivalents at beginning of year
3,123,496
3,184,723
Cash and cash equivalents at end of year
5,201,507
3,123,496
LEONARI LIMITED
STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 14 -
1
Judgements and key sources of estimation uncertainty

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

 

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

2
Accounting policies
Company information

Leonari Limited is a private company limited by shares incorporated in England and Wales. The registered office is 3rd Floor, New Hibernia House, Winchester Walk, London, SE1 9AG.

2.1
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.

2.2
Turnover

Revenue arises from the performance of construction contracts. Where the outcome of a construction contract can be estimated reliably and it is probable that the contract will be profitable, revenue and costs are recognised by reference to the stage of completion of the contract activity at the balance sheet date. Stage of completion is assessed by reference to the proportion of the contract costs incurred for the work performed to date relative to the estimated total costs, except where this would not be representative of the stage of completion. The attributable profit is recognised in profit and loss as the difference between the reported turnover and related costs for that contract.

 

When it is considered probable that total contract costs will exceed total contract revenue, the expected loss is recognised as an expense immediately.

 

Variations and claims are included in revenue where it is considered probable that the amount, which can be measured reliably, will be recovered from the customer.

 

When the outcome of a construction contract cannot be estimated reliably, contract revenue is recognised to the extent of contract costs incurred where it is considered likely those costs will be recoverable.

 

Contract costs are recognised as expenses in the period in which they are incurred.

2.3
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.

LEONARI LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024
2
Accounting policies
(Continued)
- 15 -

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:

Fixtures, fittings & equipment
25% Straight line
Computer equipment
25% Reducing balance

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.

2.4
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). 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.

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

 

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

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

2.5
Cash and cash equivalents

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

2.6
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 balance sheet 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.

LEONARI LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
2
Accounting policies
(Continued)
- 16 -
Basic financial assets

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

Other financial assets

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

Impairment of financial assets

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

 

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

 

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

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company 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 company after deducting all of its liabilities.

Basic financial liabilities

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

 

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

 

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

LEONARI LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
2
Accounting policies
(Continued)
- 17 -
Other financial liabilities

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

 

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

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

2.7
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.

2.8
Derivatives

Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to fair value at each reporting end date. The resulting gain or loss is recognised in profit or loss immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the nature of the hedge relationship.

 

A derivative with a positive fair value is recognised as a financial asset, whereas a derivative with a negative fair value is recognised as a financial liability.

2.9
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 profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

LEONARI LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
2
Accounting policies
(Continued)
- 18 -
Deferred tax

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

 

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

2.10
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.

2.11
Retirement benefits

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

2.12
Government grants

Government grants are recognised at the fair value of the asset received.

3
Employees

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

2024
2023
Number
Number
Total
17
15
4
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
934,676
556,139
Other tax reliefs
-
0
(182,841)
Total current tax
934,676
373,298
LEONARI LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
4
Taxation
(Continued)
- 19 -

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

2024
2023
£
£
Profit before taxation
3,865,491
2,901,866
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
966,373
551,355
Tax effect of expenses that are not deductible in determining taxable profit
7,895
5,397
Effect of change in corporation tax rate
(37,724)
-
0
Permanent capital allowances in excess of depreciation
(1,868)
(613)
Research and development tax credit
-
0
(182,841)
Taxation charge for the year
934,676
373,298
5
Tangible fixed assets
Plant and machinery etc
£
Cost
At 1 February 2023
11,429
Additions
7,472
At 31 January 2024
18,901
Depreciation and impairment
At 1 February 2023
8,590
Depreciation charged in the year
1,300
At 31 January 2024
9,890
Carrying amount
At 31 January 2024
9,011
At 31 January 2023
2,839
LEONARI LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 20 -
6
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
3,651,945
3,766,752
Amounts owed by group undertakings
154,068
100,000
Other debtors
1,189,281
1,851,513
4,995,294
5,718,265
7
Creditors: amounts falling due within one year
2024
2023
£
£
Bank loans
-
0
200,000
Trade creditors
2,868,572
2,198,196
Amounts owed to group undertakings
2,103,643
1,493,880
Corporation tax
695,462
271,779
Other taxation and social security
43,817
73,870
Other creditors
2,363,189
2,183,834
8,074,683
6,421,559
8
Creditors: amounts falling due after more than one year
2024
2023
£
£
Bank loans and overdrafts
-
0
572,727
9
Loans and overdrafts
2024
2023
£
£
Bank loans
-
0
772,727
Payable within one year
-
0
200,000
Payable after one year
-
0
572,727

The long-term loans are secured by fixed and floating charges over the assets of the company.

The CBILS loan carried an interest rate of 2.79% above LIBOR. The loan has repaid during the year.

LEONARI LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 21 -
10
Called up share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary A Shares of 1p each
8,750
8,750
88
88
Oridnary B Shares of 1p each
1,250
1,250
12
12
10,000
10,000
100
100
11
Operating lease commitments

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

2024
2023
£
£
347,430
-
0
12
Control

The company is ultimately controlled by Mr S Londos.

13
Related party transactions

As at the balance sheet date, an amount of £2,103,643    (2023: £1,464,008) was owed to Vigos Enterprises Limited, the parent company.

 

As at the balance sheet date, an amount of £2,868 (2023: £29,872 was owed to) was owed by Leonari 360 Limited, a company with common directors.

 

As at the balance sheet date, an amount of £151,200 (2023: £100,000) was owed by Bullion Investments Limited, a company with common directors.

 

14
Directors' transactions

As at the balance sheet date, the company owed an amount of £429,797 (2023: £95,268) to Mr J Cunningham.

LEONARI LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 22 -
15
Cash generated from operations
2024
2023
£
£
Profit for the year after tax
2,930,815
2,528,568
Adjustments for:
Taxation charged
934,676
373,298
Finance costs
32,810
37,224
Investment income
(25,994)
(2,341)
Depreciation and impairment of tangible fixed assets
1,300
946
Movements in working capital:
Decrease/(increase) in debtors
722,971
(2,903,643)
Increase in creditors
1,429,441
2,567,501
Cash generated from operations
6,026,019
2,601,553
16
Analysis of changes in net funds
1 February 2023
Cash flows
31 January 2024
£
£
£
Cash at bank and in hand
3,123,496
2,078,011
5,201,507
Borrowings excluding overdrafts
(772,727)
772,727
-
2,350,769
2,850,738
5,201,507
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