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REGISTERED NUMBER: 07496579 (England and Wales)



STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JANUARY 2024

FOR

LASER MECHANICAL & ELECTRICAL LTD

LASER MECHANICAL & ELECTRICAL LTD (REGISTERED NUMBER: 07496579)






CONTENTS OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024




Page

Company Information 1

Strategic Report 2

Report of the Directors 4

Report of the Independent Auditors 6

Income Statement 9

Other Comprehensive Income 10

Balance Sheet 11

Statement of Changes in Equity 12

Cash Flow Statement 13

Notes to the Cash Flow Statement 14

Notes to the Financial Statements 15


LASER MECHANICAL & ELECTRICAL LTD

COMPANY INFORMATION
FOR THE YEAR ENDED 31 JANUARY 2024







DIRECTORS: S Baker
B A Harding
DL Riches
L Snelgrove
D Evans
M Holmes





SECRETARY: M Holmes





REGISTERED OFFICE: 7 James Whatman Court
Turkey Mill Business Park
Ashford Road
Maidstone
Kent
ME14 5SS





REGISTERED NUMBER: 07496579 (England and Wales)





AUDITORS: Xeinadin Audit Limited
Beckwith Barn
Warren Estate
Lordship Road
Writtle
Essex
CM1 3WT

LASER MECHANICAL & ELECTRICAL LTD (REGISTERED NUMBER: 07496579)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 JANUARY 2024

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

REVIEW OF BUSINESS
The principal activity of the business is Mechanical, Plumbing and Electrical Installation Engineers.

The directors are pleased to report on another profitable year for the company and that turnover for the 12 month period ended 31 January 2024 finished at our highest ever level of £23.72m, an increase of 5.5% from our previous year end of £22.47m.

The average gross profit margin reported in these financial statements is 8.0% compared to 7.9% achieved in the prior year ended 31 January 2023, which reflects the success we have had in combating the challenges of increased material prices. The company is constantly reviewing processes and procedures to overcome the challenges caused by current market conditions whilst continuing to invest in new markets. The directors are confident with their future plans for the business and expect results to continue to be positive.

The balance sheet continues to present a strong financial position in terms of both net assets and liquidity, with net assets of £1.35m. The company continues to have sufficient working capital to finance its operating activities.

PRINCIPAL RISKS AND UNCERTAINTIES
The business environment in which the company operates continues to be very challenging with competitive pricing across the industry continuing to put pressure on the company's gross profit margins.

The long-term impacts from both local and global issues since 2020 can still be seen within the housing sector and general market conditions remain fluid. Therefore, an element of uncertainty in respect of future trading conditions remains, however with our diverse client base and varied range of work, we remain confident of our future financial results.

Given the current economic challenges faced by businesses the directors consider the main risks the company faces are general economic and business risks. The current economic environment could see the risk of potential bad debts increasing and is something that the directors monitor closely and mitigate diligently, with steps taken to minimise exposure to these risks wherever possible.

The company, with a team of many years of experience and an excellent reputation for delivering a high-quality service aids in giving us a vital advantage over our competitors.

KEY PERFORMANCE INDICATORS
2024 2023
£ £
Turnover 23,720,123 22,475,275
Gross profit margin % 8.03% 7.92%
Profit before tax 102,380 103,925
Shareholders funds 1,350,553 1,379,699


LASER MECHANICAL & ELECTRICAL LTD (REGISTERED NUMBER: 07496579)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 JANUARY 2024

FUTURE DEVELOPMENTS
Uncertainties remain in respect of the current economic situation with inflation in the UK. However, the company has a sound financial platform and is well placed to deal with these challenges.

The company is actively looking to increasing its clients, portfolio and working area. Sustainability and the environment are seen to be key drivers of the economic recovery and the investment in new environmentally friendly technologies will present new opportunities for the company.

ON BEHALF OF THE BOARD:



B A Harding - Director


31 October 2024

LASER MECHANICAL & ELECTRICAL LTD (REGISTERED NUMBER: 07496579)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 JANUARY 2024

The directors present their report with the financial statements of the Company for the year ended 31 January 2024.

PRINCIPAL ACTIVITY
The principal activity of the Company in the year under review was that of provision of mechanical and electrical services.

DIVIDENDS
No dividends will be distributed for the year ended 31 January 2024.

DIRECTORS
The directors shown below have held office during the whole of the period from 1 February 2023 to the date of this report.

S Baker
B A Harding
DL Riches
L Snelgrove
D Evans
M Holmes

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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:

-select suitable accounting policies and then apply them consistently;
-make judgements and accounting estimates that are reasonable and prudent;
-prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's 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.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the Company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

LASER MECHANICAL & ELECTRICAL LTD (REGISTERED NUMBER: 07496579)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 JANUARY 2024


AUDITORS
The auditors, Xeinadin Audit Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





B A Harding - Director


31 October 2024

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
LASER MECHANICAL & ELECTRICAL LTD

Opinion
We have audited the financial statements of Laser Mechanical & Electrical Ltd (the 'Company') for the year ended 31 January 2024 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:
-give a true and fair view of the state of the Company's affairs as at 31 January 2024 and of its profit for the year then ended;
-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the 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 directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
LASER MECHANICAL & ELECTRICAL LTD


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 or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page four, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the 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.

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

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

The objectives of our audit, in respect to irregularities, including fraud, are: to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses; to respond appropriately to fraud or suspected fraud identified during the audit, to obtain audit evidence regarding compliance with provisions of applicable laws and regulations, and to respond appropriately to any non-compliance identified. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and management.

In identifying and assessing risks of material misstatement in respect of irregularities including fraud and non-compliance with laws and regulations our approach was to consider the following:

- the nature of the industry or sector, control environment and business performance;

- the results of enquiries of management about their own identification and assessment of the risks of irregularities;

- matters discussed among the audit engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
LASER MECHANICAL & ELECTRICAL LTD

We also obtained an understanding of the legal and regulatory frameworks that the company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included UK Companies Act, employment law, tax legislation and health and safety.

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

We assessed the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud to be in the area of recognition of income. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.

Our procedures to respond to risks identified included the following:
- reviewing the financial statement disclosures and testing to supporting documentation;
- enquiring of management concerning actual and potential litigation and claims;
- reviewing material legal costs in the period;
- performing analytical procedures to identify unusual or unexpected relationships;
- reviewing correspondence with HMRC;
- testing the appropriateness of judgements made in making accounting estimates, journal entries and other adjustments made by management for indications of potential bias; and
- evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.
- completed focused testing on a sample of amounts recoverable on contracts to assess if the performance is inline with management's forecasts. Including a separate assessment for loss making contracts.

The likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity's controls, and the nature, timing and extent of the audit procedures performed. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK).

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

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




Simon Medcalf FCA (Senior Statutory Auditor)
for and on behalf of Xeinadin Audit Limited
Beckwith Barn
Warren Estate
Lordship Road
Writtle
Essex
CM1 3WT

1 November 2024

LASER MECHANICAL & ELECTRICAL LTD (REGISTERED NUMBER: 07496579)

INCOME STATEMENT
FOR THE YEAR ENDED 31 JANUARY 2024

2024 2023
Notes £    £   

TURNOVER 4 23,720,123 22,475,275

Cost of sales 21,816,118 20,695,709
GROSS PROFIT 1,904,005 1,779,566

Administrative expenses 1,820,071 1,680,236
83,934 99,330

Interest receivable and similar income 18,901 4,595
102,835 103,925

Interest payable and similar expenses 6 455 -
PROFIT BEFORE TAXATION 7 102,380 103,925

Tax on profit 9 31,526 34,582
PROFIT FOR THE FINANCIAL YEAR 70,854 69,343

LASER MECHANICAL & ELECTRICAL LTD (REGISTERED NUMBER: 07496579)

OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 JANUARY 2024

2024 2023
Notes £    £   

PROFIT FOR THE YEAR 70,854 69,343


OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME FOR
THE YEAR

70,854

69,343

LASER MECHANICAL & ELECTRICAL LTD (REGISTERED NUMBER: 07496579)

BALANCE SHEET
31 JANUARY 2024

2024 2023
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 10 17,743 22,901
Investments 11 49 49
17,792 22,950

CURRENT ASSETS
Debtors 12 5,350,340 4,076,369
Cash at bank 13 604,561 1,364,973
5,954,901 5,441,342
CREDITORS
Amounts falling due within one year 14 4,617,704 4,078,868
NET CURRENT ASSETS 1,337,197 1,362,474
TOTAL ASSETS LESS CURRENT
LIABILITIES

1,354,989

1,385,424

PROVISIONS FOR LIABILITIES 16 4,436 5,725
NET ASSETS 1,350,553 1,379,699

CAPITAL AND RESERVES
Called up share capital 17 100 100
Capital redemption reserve 18 249,900 249,900
Retained earnings 18 1,100,553 1,129,699
SHAREHOLDERS' FUNDS 1,350,553 1,379,699

The financial statements were approved by the Board of Directors and authorised for issue on 31 October 2024 and were signed on its behalf by:





B A Harding - Director


LASER MECHANICAL & ELECTRICAL LTD (REGISTERED NUMBER: 07496579)

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JANUARY 2024

Called up Capital
share Retained redemption Total
capital earnings reserve equity
£    £    £    £   
Balance at 1 February 2022 100 1,160,356 249,900 1,410,356

Changes in equity
Profit for the year - 69,343 - 69,343
Total comprehensive income - 69,343 - 69,343
Capital contribution to EOT - (100,000 ) - (100,000 )
Balance at 31 January 2023 100 1,129,699 249,900 1,379,699

Changes in equity
Profit for the year - 70,854 - 70,854
Total comprehensive income - 70,854 - 70,854
Capital contribution to EOT - (100,000 ) - (100,000 )
Balance at 31 January 2024 100 1,100,553 249,900 1,350,553

LASER MECHANICAL & ELECTRICAL LTD (REGISTERED NUMBER: 07496579)

CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 JANUARY 2024

2024 2023
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 (616,683 ) 242,128
Interest paid (455 ) -
Tax paid (33,675 ) (78,358 )
Net cash from operating activities (650,813 ) 163,770

Cash flows from investing activities
Purchase of tangible fixed assets - (4,728 )
Purchase of fixed asset investments - (49 )
Interest received 18,901 4,595
Net cash from investing activities 18,901 (182 )

Cash flows from financing activities
Amount withdrawn by directors (28,500 ) -
Capital contributions to EOT (100,000 ) (100,000 )
Net cash from financing activities (128,500 ) (100,000 )

(Decrease)/increase in cash and cash equivalents (760,412 ) 63,588
Cash and cash equivalents at
beginning of year

2

1,364,973

1,301,385

Cash and cash equivalents at end of
year

2

604,561

1,364,973

LASER MECHANICAL & ELECTRICAL LTD (REGISTERED NUMBER: 07496579)

NOTES TO THE CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 JANUARY 2024

1. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS
2024 2023
£    £   
Profit before taxation 102,380 103,925
Depreciation charges 5,158 6,778
Finance costs 455 -
Finance income (18,901 ) (4,595 )
89,092 106,108
Increase in trade and other debtors (1,245,472 ) (1,363,251 )
Increase in trade and other creditors 539,697 1,499,271
Cash generated from operations (616,683 ) 242,128

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 January 2024
31/1/24 1/2/23
£    £   
Cash and cash equivalents 604,561 1,364,973
Year ended 31 January 2023
31/1/23 1/2/22
£    £   
Cash and cash equivalents 1,364,973 1,301,385


3. ANALYSIS OF CHANGES IN NET FUNDS

At 1/2/23 Cash flow At 31/1/24
£    £    £   
Net cash
Cash at bank 1,364,973 (760,412 ) 604,561
1,364,973 (760,412 ) 604,561
Total 1,364,973 (760,412 ) 604,561

LASER MECHANICAL & ELECTRICAL LTD (REGISTERED NUMBER: 07496579)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024

1. STATUTORY INFORMATION

Laser Mechanical & Electrical Ltd is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The functional and presentation currency of the financial statements is the Pound Sterling (£).

Amounts in these financial statements are rounded to the nearest Pound Sterling (£).

The financial statements contain information about Laser Mechanical & Electrical Limited as an individual company.

2. STATEMENT OF COMPLIANCE

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006.

3. ACCOUNTING POLICIES

Basis of preparing the financial statements
The financial statements have been prepared under the historical cost convention.

Significant judgements and estimates
In applying the company's accounting policies, the directors are required to make judgements. estimates and assumptions in determining the carrying value of assets and liabilities. The directors' judgements, estimates and assumptions are based on the best and most reliable evidence available at the time when the decisions are made and are based on historical experience and other factors that are considered applicable. Due to the inherent sensitivity involved in making judgements, estimates and assumptions, the actual results and outcomes may differ.

The estimates and underlying assumptions are reviewed on an ongoing basis. Any revisions to accounting estimates are recognised prospectively. The principal areas where judgement was exercised are as follows:

Amounts recoverable on contracts
The company regularly review the ongoing performance of each contract and recognise income by reference to the stage completion of each contract.

The cost management system in place captures all contract costs including those that are committed.
The company regularly review the ongoing performance of each contract and recognise income by reference to the stage completion of each contract.

The cost management system in place captures all contract costs including those that are committed. Certified applications plus any additional uncertified work performed up to the balance sheet date are reviewed against the corresponding costs that have been incurred. The estimated stage of completion of each contract and the forecasted profit margins are then reviewed against the actuals by the directors and management team.

Based on this review adjustments are then reflected to recognise income in line with the expected contract performance.

Included in debtors, shown as amounts recoverable on contracts, is £2,993,702 (2023: £2,698,932) in respect of amounts not yet invoiced by the company.

Included in creditors, shown as amounts payable on contracts, is £2,088,313 (2023: £1,398,052) in respect of amounts not yet incurred by the company.

LASER MECHANICAL & ELECTRICAL LTD (REGISTERED NUMBER: 07496579)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 JANUARY 2024

3. ACCOUNTING POLICIES - continued
Summary of significant accounting policies
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Turnover
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Turnover represents the fair value of services provided under contracts with customers to the extent that there is right to consideration, and includes monies held on retention. It is measured at the fair value of the consideration due. Where a service is incomplete at the year end, turnover represents the value of the service provided to that date based on an appropriate proportion of the total expected consideration at completion.

The value of incomplete services is included as amounts recoverable on contracts in the balance sheet.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Fixtures and fittings - 20% on reducing balance
Motor vehicles - 20% on reducing balance
Computer equipment - 33% on reducing balance

Tangible fixed assets are initially measured at cost and subsequently measured at cost net of depreciation and any impairment losses. Depreciation of a tangible fixed assets begins when it is in the location and condition necessary available for the use intended.

Tangible fixed asset depreciation is included in administrative expenses in the statement of comprehensive income.

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the Income Statement.

Investments in associates
Investments in associate undertakings are recognised at cost.

Financial instruments
The company enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable, loans from banks and other third parties, loans to related parties and investments in non-puttable ordinary shares.

Debt instruments such as loans, accounts receivable and payable are initially measured at present value and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade payables or receivables, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to paid or received.


LASER MECHANICAL & ELECTRICAL LTD (REGISTERED NUMBER: 07496579)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 JANUARY 2024

3. ACCOUNTING POLICIES - continued
Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Research and development
Expenditure on research and development is written off in the year in which it is incurred.


Hire purchase and leasing commitments
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Borrowing costs
All borrowing costs are recognised in profit or loss in the period in which they are incurred.

Impairment of non-financial assets
At each reporting date non-financial assets not carried at fair value, like plant, property and equipment, are reviewed to determine whether there is an indication that an asset may be impaired. If there is an indication of possible impairment, the recoverable amount of any asset or group of related assets, which is the higher of value in use and the fair value less cost to sell, is estimated and compared with its carrying amount. If the recoverable amount is lower, the carrying amount of the asset is reduced to its recoverable amount and an impairment loss is recognised immediately in profit or loss.

If an impairment loss is subsequently reversed, the carrying amount of the asset or group of related assets is increased to the revised estimate of its recoverable amount, but not to exceed the amount that would have been determined had no impairment loss been recognised for the asset or group of related assets in prior periods. A reversal of an impairment loss is recognised immediately in profit or loss.

LASER MECHANICAL & ELECTRICAL LTD (REGISTERED NUMBER: 07496579)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 JANUARY 2024

4. TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the Company.

The turnover and profit are attributable to the one principal activity of the company.

An analysis of turnover by category is given below:

20242023
££
Contracts with customers23,720,12322,475,275

5. EMPLOYEES AND DIRECTORS
2024 2023
£    £   
Wages and salaries 3,133,888 2,785,874
Social security costs 329,179 315,694
Other pension costs 90,540 75,234
3,553,607 3,176,802

The average number of employees during the year was as follows:
2024 2023

Fortnightly 37 36
Monthly 38 35
75 71

2024 2023
£    £   
Directors' remuneration 490,163 558,028
Directors' pension contributions to money purchase schemes 42,604 32,604

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes 5 5

Information regarding the highest paid director is as follows:
2024 2023
£    £   
Emoluments etc 139,184 140,491
Pension contributions to money purchase schemes 37,320 1,320

6. INTEREST PAYABLE AND SIMILAR EXPENSES
2024 2023
£    £   
Other interest payable 455 -

LASER MECHANICAL & ELECTRICAL LTD (REGISTERED NUMBER: 07496579)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 JANUARY 2024

7. PROFIT BEFORE TAXATION

The profit is stated after charging:

2024 2023
£    £   
Vehicle hire 222,317 193,372
Other operating leases 53,081 62,096
Depreciation - owned assets 5,158 6,779

8. AUDITORS' REMUNERATION
2024 2023
£    £   
Fees payable to the Company's auditors for the audit of the
Company's financial statements

10,060

8,980
Other non- audit services 2,800 2,000

9. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
2024 2023
£    £   
Current tax:
UK corporation tax 32,738 33,598
Prior year tax adjustment 77 -
Total current tax 32,815 33,598

Deferred tax:
Origination and reversal of timing differences (1,289 ) 984
Tax on profit 31,526 34,582

UK corporation tax has been charged at 25% (2023 - 19%).

Reconciliation of total tax charge included in profit and loss
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

2024 2023
£    £   
Profit before tax 102,380 103,925
Profit multiplied by the standard rate of corporation tax in the UK of
25% (2023 - 19%)

25,595

19,746

Effects of:
Expenses not deductible for tax purposes 8,581 13,732
Depreciation in excess of capital allowances - 1,104
Adjustments to tax charge in respect of previous periods 77 -
Profits chargeable at the lower rate (1,376 ) -
Marginal relief (1,351 ) -
Total tax charge 31,526 34,582

LASER MECHANICAL & ELECTRICAL LTD (REGISTERED NUMBER: 07496579)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 JANUARY 2024

9. TAXATION - continued

The UK main rate of corporation tax rate increased to 25% from 1 April 2023.

10. TANGIBLE FIXED ASSETS
Fixtures
and Motor Computer
fittings vehicles equipment Totals
£    £    £    £   
COST
At 1 February 2023
and 31 January 2024 35,301 27,144 20,950 83,395
DEPRECIATION
At 1 February 2023 23,264 20,621 16,609 60,494
Charge for year 2,419 1,305 1,434 5,158
At 31 January 2024 25,683 21,926 18,043 65,652
NET BOOK VALUE
At 31 January 2024 9,618 5,218 2,907 17,743
At 31 January 2023 12,037 6,523 4,341 22,901

11. FIXED ASSET INVESTMENTS
Interest
in
associate
£   
COST
At 1 February 2023
and 31 January 2024 49
NET BOOK VALUE
At 31 January 2024 49
At 31 January 2023 49

The Company's investments at the Balance Sheet date in the share capital of companies include the following:

Associated company

Hesco (South East) Ltd
Registered office: 20-22 Wenlock Road, London, N1 7GU
Nature of business: Heating network
%
Class of shares: holding
Ordinary 49.00

LASER MECHANICAL & ELECTRICAL LTD (REGISTERED NUMBER: 07496579)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 JANUARY 2024

12. DEBTORS
2024 2023
£    £   
Amounts falling due within one year:
Trade debtors 1,848,690 970,868
Amounts owed by related parties 4,788 -
Amounts recoverable on contracts 1,559,506 1,694,072
Other debtors 13,662 13,662
Directors' loan accounts 28,500 -
VAT 167,292 169,955
Prepayments and accrued income 293,705 222,952
3,916,143 3,071,509

Amounts falling due after more than one year:
Amounts recoverable on contracts 1,434,197 1,004,860

Aggregate amounts 5,350,340 4,076,369

13. CASH AT BANK
2024 2023
£    £   
Bank account 75,913 151,988
Bank deposit account 101 1,212,985
Bank reserve account 528,547 -
604,561 1,364,973

14. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Trade creditors 1,945,379 2,035,692
Amounts payable on contracts 2,088,313 1,398,052
Amounts owed to related parties 50 67,598
Tax 32,738 33,598
Social security and other taxes 110,538 141,000
Other creditors 428,626 401,098
Accrued expenses 12,060 1,830
4,617,704 4,078,868

15. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:
2024 2023
£    £   
Within one year 160,303 131,919
Between one and five years 194,520 183,325
354,823 315,244

Lease payments expensed in administrative costs are £174,220 (2023: £153,544).

LASER MECHANICAL & ELECTRICAL LTD (REGISTERED NUMBER: 07496579)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 JANUARY 2024

16. PROVISIONS FOR LIABILITIES
2024 2023
£    £   
Deferred tax
Accelerated capital allowances 4,436 5,725

Deferred
tax
£   
Balance at 1 February 2023 5,725
Provided during year (1,289 )
Balance at 31 January 2024 4,436

17. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2024 2023
value: £    £   
10,000 Ordinary 1p 100 100

18. RESERVES
Capital
Retained redemption
earnings reserve Totals
£    £    £   

At 1 February 2023 1,129,699 249,900 1,379,599
Profit for the year 70,854 - 70,854
Capital contribution to EOT (100,000 ) - (100,000 )
At 31 January 2024 1,100,553 249,900 1,350,453

Called up share capital - Represents the nominal value of shares that have been issued.

Retained earnings - includes all current retained profits and losses.

19. PENSION COMMITMENTS

The company operates a defined contribution pension scheme. The assets of the scheme are held separate from those of the company in an independently administered fund. The pension cost charge represents contributions payable by the company to the fund. Contributions payable to the fund at the year end by the company and included in other creditors are £3,296 (2023: £4,319).

20242023
££

Contributions payable by the Company for the year90,54075,234

LASER MECHANICAL & ELECTRICAL LTD (REGISTERED NUMBER: 07496579)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 JANUARY 2024

20. CONTINGENT LIABILITIES

The company is party to a guarantee dated 27 September 2021 in respect of deferred payments (Including accrued interest payable) amounting to £13,177,916 (2023: £12,912,628) relating to the acquisition of shares in the company by an Employee Ownership Trust.This amount may be impacted by the date and timing of consideration payments made and accrued interest arising.

The obligations in respect of the above guarantee are secured by way of a debenture over all assets of the company dated 27 September 2021.

21. DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

Included within other debtors at the balance sheet is an amount of £28,500 (2031: £Nil) due from the director L Snelgrove to the company.

Interest has been charged at the beneficial rate applicable per HMRC.

22. RELATED PARTY DISCLOSURES

Entities with common directors
2024 2023
£    £   
Sales 791,183 858,696
Purchases 1,502,989 1,692,227
Amount owed from related party 4,788 -
Amount owed to related party 50 67,598

The amounts above concerns transactions with Laser Electrical Services Limited, a related company due to a common director that can apply significant influence.