REGISTERED NUMBER: |
STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 JANUARY 2024 |
FOR |
LASER MECHANICAL & ELECTRICAL LTD |
REGISTERED NUMBER: |
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: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
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: |
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. |
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: |
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. |
for and on behalf of |
Beckwith Barn |
Warren Estate |
Lordship Road |
Writtle |
Essex |
CM1 3WT |
LASER MECHANICAL & ELECTRICAL LTD (REGISTERED NUMBER: 07496579) |
INCOME STATEMENT |
FOR THE YEAR ENDED 31 JANUARY 2024 |
2024 | 2023 |
Notes | £ | £ |
TURNOVER | 4 |
Cost of sales |
GROSS PROFIT |
Administrative expenses |
83,934 | 99,330 |
Interest receivable and similar income |
102,835 | 103,925 |
Interest payable and similar expenses | 6 |
PROFIT BEFORE TAXATION | 7 |
Tax on profit | 9 |
PROFIT FOR THE FINANCIAL YEAR |
LASER MECHANICAL & ELECTRICAL LTD (REGISTERED NUMBER: 07496579) |
OTHER COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 31 JANUARY 2024 |
2024 | 2023 |
Notes | £ | £ |
PROFIT FOR THE YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
LASER MECHANICAL & ELECTRICAL LTD (REGISTERED NUMBER: 07496579) |
BALANCE SHEET |
31 JANUARY 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 10 |
Investments | 11 |
CURRENT ASSETS |
Debtors | 12 |
Cash at bank | 13 |
CREDITORS |
Amounts falling due within one year | 14 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
PROVISIONS FOR LIABILITIES | 16 |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 17 |
Capital redemption reserve | 18 |
Retained earnings | 18 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
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 | - |
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 | - |
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 | ( |
) |
Interest paid | ( |
) |
Tax paid | ( |
) | ( |
) |
Net cash from operating activities | ( |
) |
Cash flows from investing activities |
Purchase of tangible fixed assets | ( |
) |
Purchase of fixed asset investments | - | (49 | ) |
Interest received |
Net cash from investing activities | ( |
) |
Cash flows from financing activities |
Amount withdrawn by directors | (28,500 | ) | - |
Capital contributions to EOT | ( |
) | ( |
) |
Net cash from financing activities | ( |
) | ( |
) |
(Decrease)/increase in cash and cash equivalents | ( |
) |
Cash and cash equivalents at beginning of year |
2 |
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 |
Depreciation charges |
Finance costs | 455 | - |
Finance income | (18,901 | ) | (4,595 | ) |
89,092 | 106,108 |
Increase in trade and other debtors | ( |
) | ( |
) |
Increase in trade and other creditors |
Cash generated from operations | ( |
) |
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 | ( |
) | 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 |
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 |
3. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
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 |
Fixtures and fittings | - |
Motor vehicles | - |
Computer equipment | - |
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: |
2024 | 2023 |
£ | £ |
Contracts with customers | 23,720,123 | 22,475,275 |
5. | EMPLOYEES AND DIRECTORS |
2024 | 2023 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
The average number of employees during the year was as follows: |
2024 | 2023 |
Fortnightly | 37 | 36 |
Monthly | 38 | 35 |
2024 | 2023 |
£ | £ |
Directors' remuneration |
Directors' pension contributions to money purchase schemes |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes |
Information regarding the highest paid director is as follows: |
2024 | 2023 |
£ | £ |
Emoluments etc |
Pension contributions to money purchase schemes |
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2024 | 2023 |
£ | £ |
Other interest payable |
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 |
Other operating leases |
Depreciation - owned assets |
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 |
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 |
Prior year tax adjustment | 77 | - |
Total current tax |
Deferred tax: |
Origination and reversal of timing differences | ( |
) |
Tax on profit |
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 |
Profit multiplied by the standard rate of corporation tax in the UK of |
Effects of: |
Expenses not deductible for tax purposes |
Depreciation in excess of capital allowances | - |
Adjustments to tax charge in respect of previous periods |
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 |
DEPRECIATION |
At 1 February 2023 |
Charge for year |
At 31 January 2024 |
NET BOOK VALUE |
At 31 January 2024 |
At 31 January 2023 |
11. | FIXED ASSET INVESTMENTS |
Interest |
in |
associate |
£ |
COST |
At 1 February 2023 |
and 31 January 2024 |
NET BOOK VALUE |
At 31 January 2024 |
At 31 January 2023 |
The Company's investments at the Balance Sheet date in the share capital of companies include the following: |
Associated company |
Registered office: 20-22 Wenlock Road, London, N1 7GU |
Nature of business: |
% |
Class of shares: | holding |
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 |
Amounts owed by related parties | 4,788 | - |
Amounts recoverable on contracts |
Other debtors |
Directors' loan accounts | 28,500 | - |
VAT |
Prepayments and accrued income |
Amounts falling due after more than one year: |
Amounts recoverable on contracts |
Aggregate amounts |
13. | CASH AT BANK |
2024 | 2023 |
£ | £ |
Bank account | 75,913 | 151,988 |
Bank deposit account | 101 | 1,212,985 |
Bank reserve account | 528,547 | - |
14. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2024 | 2023 |
£ | £ |
Trade creditors |
Amounts payable on contracts | 2,088,313 | 1,398,052 |
Amounts owed to related parties | 50 | 67,598 |
Tax |
Social security and other taxes |
Other creditors |
Accrued expenses |
15. | LEASING AGREEMENTS |
Minimum lease payments under non-cancellable operating leases fall due as follows: |
2024 | 2023 |
£ | £ |
Within one year |
Between one and five years |
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 |
Provided during year | ( |
) |
Balance at 31 January 2024 |
17. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2024 | 2023 |
value: | £ | £ |
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 | - |
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). |
2024 | 2023 |
£ | £ |
Contributions payable by the Company for the year | 90,540 | 75,234 |
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 |
2024 | 2023 |
£ | £ |
Sales |
Purchases |
Amount owed from related party |
Amount owed to related party |