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REGISTERED NUMBER: 10050390 (England and Wales)















LSC GROUP LIMITED

GROUP STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 29 FEBRUARY 2024






LSC GROUP LIMITED (REGISTERED NUMBER: 10050390)

CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 29 FEBRUARY 2024










Page

Company Information 1

Group Strategic Report 2

Report of the Directors 4

Report of the Independent Auditors 6

Consolidated Statement of Comprehensive Income 9

Consolidated Statement of Financial Position 10

Company Statement of Financial Position 11

Consolidated Statement of Changes in Equity 12

Company Statement of Changes in Equity 13

Consolidated Statement of Cash Flows 14

Notes to the Consolidated Statement of Cash Flows 15

Notes to the Consolidated Financial Statements 16


LSC GROUP LIMITED

COMPANY INFORMATION
FOR THE YEAR ENDED 29 FEBRUARY 2024







DIRECTORS: S Morley
R L Morley
A Morley-Doidge





REGISTERED OFFICE: 1-7 Fallbarn Road
Rawtenstall
Rossendale
BB4 7NT





REGISTERED NUMBER: 10050390 (England and Wales)





AUDITORS: DJH Audit Limited
Accountants
Statutory Auditors
The Exchange
5 Bank Street
Bury
BL9 0DN

LSC GROUP LIMITED (REGISTERED NUMBER: 10050390)

GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 29 FEBRUARY 2024


The directors present their strategic report of the company and the group for the year ended 29 February 2024.

REVIEW OF BUSINESS
The results for the period and financial position of the group are shown in the annexed financial statements.

The directors are satisfied with the results achieved in the year. These have been achieved despite the continuing difficulties facing the retail and footwear industry. As in the prior year, the majority of sales are generated from the group's key brands.

The group's gross profit margin fluctuates year on year due to a number of factors including:

- Exchange rate variation impacting the purchase price of goods.

- The sales mix of product type sold

- The ratio of wholesale and cash and carry

Going forward, the directors believe that it will be very difficult to sustain the current years results but they will aim to do so by improving the product range and building on strong relationships with customers.

PRINCIPAL RISKS AND UNCERTAINTIES
The main ongoing risks facing the group are falling demand, foreign currency exposure and bad debts.

The shoe industry is highly competitive and a general downturn in consumer spending has seen increased pressure from customers in relation to prices. The current downturn in consumer spending will continue to put sales under pressure over the next twelve months. Demand may be further impacted by unseasonal weather patterns.

Falling demand - the directors aim to mitigate this risk by sourcing new customers and also continually offering new product designs.

Rising cost of raw materials and manufacturing cost - price increases will be passed on to customers where possible to help mitigate against this risk.

Fluctuations in shipping costs - as some customers move to freight on board (FOB) it will help to mitigate against this risk.

Bad debt risk - As retail outlets continue to suffer, the risk of bad debts is expected to increase in the coming year. The directors operate a strong credit control function, impose strict credit limits and continually monitor balances owed.

KEY PERFORMANCE INDICATORS
The key performance indicators used by the directors are:-

i) Monthly sales data - which is compared to results in the prior period.

ii) Monthly sales ledger - which is analysed by age of balance.

iii) Profit margins on a product by product basis.


LSC GROUP LIMITED (REGISTERED NUMBER: 10050390)

GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 29 FEBRUARY 2024

FUTURE DEVELOPMENTS
Trading since the year end has continued to be challenging, in light of the cost of living crisis.

ON BEHALF OF THE BOARD:





S Morley - Director


18 October 2024

LSC GROUP LIMITED (REGISTERED NUMBER: 10050390)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 29 FEBRUARY 2024


The directors present their report with the financial statements of the company and the group for the year ended 29 February 2024.

PRINCIPAL ACTIVITY
The principal activity of the company in the period under review was that of a holding company.

The principal activity of the group in the period under review was that of the design, import and sale of footwear.

DIVIDENDS
There will be no distribution of dividends for the year ended 29 February 2024.

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

S Morley
R L Morley
A Morley-Doidge

DISCLOSURE IN THE STRATEGIC REPORT
Identification of the information for which the company has chosen, in accordance with s414C(11) of the Companies Act, to set out in the company's strategic report which would otherwise be required by Schedule 7 of the 'Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008' to be contained in the directors' report.

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Group 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 the group and of the profit or loss of the group 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;
- state whether applicable accounting standards have been followed, subject to any material departures disclosed and
explained in the financial statements;
- 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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group 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 group's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the group's auditors are aware of that information.

LSC GROUP LIMITED (REGISTERED NUMBER: 10050390)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 29 FEBRUARY 2024


AUDITORS
DJH Audit Limited has indicated its willingness to be reappointed for another term and appropriate arrangements are being made for it to be deemed reappointed as auditor in the absence of an Annual General Meeting.

ON BEHALF OF THE BOARD:





S Morley - Director


18 October 2024

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
LSC GROUP LIMITED


Opinion
We have audited the financial statements of LSC Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 29 February 2024 which comprise the Consolidated Statement of Comprehensive Income, Consolidated Statement of Financial Position, Company Statement of Financial Position, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Statement of Cash Flows and Notes to the Consolidated Statement of Cash Flows, 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 group's and of the parent company affairs as at 29 February 2024 and of the group's 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 group 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 group's and the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the 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 Group 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 Group 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 Group 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
LSC GROUP LIMITED


Matters on which we are required to report by exception
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
- the parent company 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 group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or the parent 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:

As part of our planning process:
- We enquired of management the systems and controls the group has in place, the areas of the financial statements that are mostly susceptible to the risk of irregularities and fraud, and whether there was any known, suspected or alleged fraud.
- We obtained an understanding of the legal and regulatory frameworks applicable to the group. We determined that the following were most relevant: FRS 102, Companies Act 2006 and Health & Safety at Work 1974.
- We considered the incentives and opportunities that exist in the group, including the extent of management bias, which present a potential for irregularities and fraud to be perpetuated, and tailored our risk assessment accordingly.
- Using our knowledge of the group, together with the discussions held with the group at the planning stage, we formed a conclusion on the risk of misstatement due to irregularities including fraud and tailored our procedures according to this risk assessment.

The key procedures we undertook to detect irregularities including fraud during the course of the audit included:
- Identifying and testing journal entries, in particular those that were significant and unusual.
- Reviewing the financial statement disclosures and determining whether accounting policies have been appropriately applied.
- Reviewing and challenging the assumptions and judgements used by management in their significant accounting estimates, in particular in relation to bad debt, inventory provisions and impairment of investments.
- Assessing the extent of compliance, or lack of, with the relevant laws and regulations.
- Testing key revenue lines, for evidence of management bias.
- Testing all material consolidation adjustments.
- Documenting and verifying all significant related party balances and transactions.


REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
LSC GROUP LIMITED

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements even though we have properly planned and performed our audit in accordance with auditing standards. The primary responsibility for the prevention and detection of irregularities and fraud rests with the directors.

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.




Kate Hughes (Senior Statutory Auditor)
for and on behalf of DJH Audit Limited
Accountants
Statutory Auditors
The Exchange
5 Bank Street
Bury
BL9 0DN

18 October 2024

LSC GROUP LIMITED (REGISTERED NUMBER: 10050390)

CONSOLIDATED
STATEMENT OF COMPREHENSIVE
INCOME
FOR THE YEAR ENDED 29 FEBRUARY 2024

2024 2023
Notes £    £   

REVENUE 3 10,996,317 10,272,816

Cost of sales (8,279,940 ) (8,292,271 )
GROSS PROFIT 2,716,377 1,980,545

Administrative expenses (2,655,330 ) (2,420,513 )
61,047 (439,968 )

Other operating income 55,711 14,210
OPERATING PROFIT/(LOSS) 5 116,758 (425,758 )

Income from fixed asset investments 7,908 5,525
Interest receivable and similar income 1,222,325 253,575
1,346,991 (166,658 )

Interest payable and similar expenses 6 (1,400 ) 1,704,874
PROFIT BEFORE TAXATION 1,345,591 1,538,216

Tax on profit 7 (810,250 ) (363,762 )
PROFIT FOR THE FINANCIAL YEAR 535,341 1,174,454

OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

535,341

1,174,454

Profit attributable to:
Owners of the parent 535,341 1,174,454

Total comprehensive income attributable to:
Owners of the parent 535,341 1,174,454

LSC GROUP LIMITED (REGISTERED NUMBER: 10050390)

CONSOLIDATED STATEMENT OF FINANCIAL POSITION
29 FEBRUARY 2024

2024 2023
Notes £    £   
FIXED ASSETS
Intangible assets 9 6,054,368 8,072,492
Property, plant and equipment 10 151,553 68,350
Investments 11 3,027,919 1,590,186
9,233,840 9,731,028

CURRENT ASSETS
Inventories 12 330,467 893,239
Debtors 13 2,821,885 2,042,108
Cash at bank and in hand 24,879,620 16,382,635
28,031,972 19,317,982
CREDITORS
Amounts falling due within one year 14 (18,075,221 ) (10,393,760 )
NET CURRENT ASSETS 9,956,751 8,924,222
TOTAL ASSETS LESS CURRENT
LIABILITIES

19,190,591

18,655,250

CAPITAL AND RESERVES
Called up share capital 16 13,725,491 13,725,491
Retained earnings 5,465,100 4,929,759
SHAREHOLDERS' FUNDS 19,190,591 18,655,250

The financial statements were approved by the Board of Directors and authorised for issue on 18 October 2024 and were signed on its behalf by:





S Morley - Director


LSC GROUP LIMITED (REGISTERED NUMBER: 10050390)

COMPANY STATEMENT OF FINANCIAL POSITION
29 FEBRUARY 2024

2024 2023
Notes £    £   
FIXED ASSETS
Intangible assets 9 - -
Property, plant and equipment 10 - -
Investments 11 20,656,142 20,656,142
20,656,142 20,656,142

CURRENT ASSETS
Cash in hand 1 1

CREDITORS
Amounts falling due within one year 14 (979,446 ) (979,446 )
NET CURRENT LIABILITIES (979,445 ) (979,445 )
TOTAL ASSETS LESS CURRENT
LIABILITIES

19,676,697

19,676,697

CAPITAL AND RESERVES
Called up share capital 16 13,725,491 13,725,491
Retained earnings 5,951,206 5,951,206
SHAREHOLDERS' FUNDS 19,676,697 19,676,697

Company's profit for the financial year - 1,707,938

The financial statements were approved by the Board of Directors and authorised for issue on 18 October 2024 and were signed on its behalf by:





S Morley - Director


LSC GROUP LIMITED (REGISTERED NUMBER: 10050390)

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 29 FEBRUARY 2024

Called up
share Retained Total
capital earnings equity
£    £    £   
Balance at 1 March 2022 13,725,491 3,755,305 17,480,796

Changes in equity
Total comprehensive income - 1,174,454 1,174,454
Balance at 28 February 2023 13,725,491 4,929,759 18,655,250

Changes in equity
Total comprehensive income - 535,341 535,341
Balance at 29 February 2024 13,725,491 5,465,100 19,190,591

LSC GROUP LIMITED (REGISTERED NUMBER: 10050390)

COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 29 FEBRUARY 2024

Called up
share Retained Total
capital earnings equity
£    £    £   
Balance at 1 March 2022 13,725,491 4,243,268 17,968,759

Changes in equity
Total comprehensive income - 1,707,938 1,707,938
Balance at 28 February 2023 13,725,491 5,951,206 19,676,697

Changes in equity
Balance at 29 February 2024 13,725,491 5,951,206 19,676,697

LSC GROUP LIMITED (REGISTERED NUMBER: 10050390)

CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 29 FEBRUARY 2024

2024 2023
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 1,908,382 3,036,650
Interest paid (1,400 ) (3,064 )
Tax paid (809,000 ) (332,172 )
Net cash from operating activities 1,097,982 2,701,414

Cash flows from investing activities
Purchase of property,plant and equipment (111,211 ) -
Purchase of fixed asset investments (1,488,750 ) (992,500 )
Sale of property,plant and equipment - 13,150
Sale of fixed asset investments 136,925 -
Interest received 854,154 76,835
Dividends received 7,908 5,525
Net cash from investing activities (600,974 ) (896,990 )

Cash flows from financing activities
Amount introduced by directors 433,728 2,044,653
Amount withdrawn by directors (308,623 ) (13,989 )
Amounts received from related parties 7,874,872 7,128,905
Net cash from financing activities 7,999,977 9,159,569

Increase in cash and cash equivalents 8,496,985 10,963,993
Cash and cash equivalents at beginning of
year

2

16,382,635

5,418,642

Cash and cash equivalents at end of year 2 24,879,620 16,382,635

LSC GROUP LIMITED (REGISTERED NUMBER: 10050390)

NOTES TO THE CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 29 FEBRUARY 2024


1. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM
OPERATIONS
2024 2023
£    £   
Profit before taxation 1,345,591 1,538,216
Depreciation charges 2,046,132 2,029,978
Profit on disposal of fixed assets (36,925 ) (5,353 )
Fair value adjustment (48,983 ) 29,979
Finance costs 1,400 (1,704,874 )
Finance income (1,230,233 ) (259,100 )
2,076,982 1,628,846
Decrease in inventories 562,772 719,295
(Increase)/decrease in trade and other debtors (411,606 ) 660,667
(Decrease)/increase in trade and other creditors (319,766 ) 27,842
Cash generated from operations 1,908,382 3,036,650

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts:

Year ended 29 February 2024
29.2.24 1.3.23
£    £   
Cash and cash equivalents 24,879,620 16,382,635
Year ended 28 February 2023
28.2.23 1.3.22
£    £   
Cash and cash equivalents 16,382,635 5,418,642


3. ANALYSIS OF CHANGES IN NET FUNDS

At 1.3.23 Cash flow At 29.2.24
£    £    £   
Net cash
Cash at bank and in hand 16,382,635 8,496,985 24,879,620
16,382,635 8,496,985 24,879,620
Debt
Debts falling due within 1 year (979,446 ) - (979,446 )
(979,446 ) - (979,446 )
Total 15,403,189 8,496,985 23,900,174

LSC GROUP LIMITED (REGISTERED NUMBER: 10050390)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 29 FEBRUARY 2024


1. STATUTORY INFORMATION

LSC Group Limited is a private company, limited by shares, registered in England and Wales. The company's registered number is 10050390. The registered office is 1-7 Fallbarn Road, Rawtenstall, Rossendale, Lancashire, BB4 7NT.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
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. The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

Going Concern
The directors have considered the business risks and financial position of the group. The statement of financial position of the group shows shareholders funds of £19.2 million (2023: £18.7 million) and the company has net assets of £19.7 million (2023: £19.7 million)The trading subsidiary continues to generate profits and cash balances.

The trading subsidiary had net assets of £14.1 million (2023: £11.6 million) and a cash balance of £24.9 million (2023: £16.4 million) at the year end and so is well placed to meet all it's cash requirements for the next 12 months. The trading subsidiary has traded profitably post-year end.

The directors believe that the company can manage the risk it faces at these challenging times and therefore continue to adopt the going concern basis of accounting in preparing these financial statements.

Basis of consolidation
The financial statements consolidate LSC Group and all of its subsidiary undertakings.

Subsidiary undertakings are included in the group accounts using the acquisition method.

Critical accounting estimates and judgements
In the application of the company's accounting policies, the directors are required to make estimates and judgement. The estimates are based on historical experience and other relevant factors. Actual results may differ from these estimates.

The estimates are continually evaluated. Revisions to accounting estimates are recognised in the period in which the estimate is revised.

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

Making judgement based on historical experience on the level of provision required for impairment of inventory. Further information received after the statement of financial position date may impact on the level of provision required.

The directors use judgement to provide against bad debts using knowledge of customers and experience. The provisions are revisited after the statement of financial position date to ensure appropriate.

Estimating the economic life of the trademarks is considered key in calculating an appropriate amortisation charge.

The assessing of investment balances for impairment is considered key to the preparation of the financial statements.

LSC GROUP LIMITED (REGISTERED NUMBER: 10050390)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 29 FEBRUARY 2024


2. ACCOUNTING POLICIES - continued

Revenue
Revenue comprises the aggregate of the fair value of the sale of footwear, net of value-added tax. Revenue is recognised when the company has delivered goods to the customer, the customer has accepted the goods and collection of the related receivables is anticipated.

Goodwill
Goodwill, being the amount paid in connection with the acquisition of a business in 2016, is being amortised evenly over its estimated useful life of 10 years.

Trademarks
Trademarks are accounted for at cost. Trademarks are amortised over the following useful economic lives:

Groundwork - over 10 years
Cushion Walk - over 10 years

The directors also consider the need for impairment annually, if any such impairment is identified it is recognised in the income statement immediately.

Property, plant and equipment
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Improvements to property - 2% on cost
Plant and machinery - 20% on reducing balance
Fixtures and fittings - 20% on reducing balance
Motor vehicles - 25% on reducing balance
Computer equipment - 33% on 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 recognised in the statement of comprehensive income.

The residual values, estimated useful lives and depreciation method of property, plant and equipment are reviewed, and adjusted as appropriate, at each statement of financial position date. The effects of any revision are recognised in the income statement when the change arises.

Cash and cash equivalents
Cash and cash equivalents include cash in hand, deposits held at call with banks and other short term liquid investments with original maturities of three months or less.

Inventories
Inventories are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Inventories are stated at the lower of cost and estimated selling price less costs to complete and sell. Costs, which comprise purchase price, duty and shipping are based on the average cost for the period. Overheads are charged to income statement as incurred. Net realisable value is based on the estimated selling price less any estimated completion or selling costs.

When inventories are sold, the carrying amount of those inventories as an expense in the period in which the related revenue is recognised. The amount of any write-down of inventories to net realisable value and all losses of inventories are recognised as an expense in the period in which the write-down or loss occurs. The amount of any reversal of any write-down of inventories is recognised as a reduction in the amount of inventories recognised as an expense in the period in which the reversal occurs.

LSC GROUP LIMITED (REGISTERED NUMBER: 10050390)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 29 FEBRUARY 2024


2. ACCOUNTING POLICIES - continued

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 and loans to related parties.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, and impairment loss is recognised in the income statement.

Basic financial liabilities are initially measured at transaction price and subsequently measured at amortised cost.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Statement of Comprehensive Income, 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 statement of financial position date.

Deferred tax
Deferred tax is recognised in respect of all material timing differences that have originated but not reversed at the statement of financial position 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.

Foreign currencies
Monetary assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the statement of financial position date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

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

Investments in subsidiaries
Investments in subsidiary undertakings are recognised at cost less impairment.

Fixed asset investments
Listed investments are included at fair value, with changes in fair value being recognised in the income statement.

Income from fixed asset investments is received in the form of dividends and is credited to the income statement when received.

LSC GROUP LIMITED (REGISTERED NUMBER: 10050390)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 29 FEBRUARY 2024


2. ACCOUNTING POLICIES - continued

Dividends
Equity dividends are recognised when they become legally payable and are no longer at the discretion of the
group.

3. REVENUE

The revenue and profit before taxation are attributable to the one principal activity of the group.

An analysis of revenue by geographical market is given below:

2024 2023
£    £   
United Kingdom 9,224,288 9,326,779
Europe 856,262 475,827
Rest of the world 915,767 470,210
10,996,317 10,272,816

4. EMPLOYEES AND DIRECTORS

2024 2023
£ £
Wages and salaries 181,028 175,823
Social security costs 9,700 12,669
Other pension costs 4,196 3,368
194,924 191,860

The average number of employees during the year as follows:

2024 2023
£ £
Admin 7 7
Warehouse 3 3
10 10

2024 2023
£    £   
Directors' remuneration 36,238 37,349

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

Money purchase schemes 3 2

LSC GROUP LIMITED (REGISTERED NUMBER: 10050390)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 29 FEBRUARY 2024


5. OPERATING PROFIT/(LOSS)

The operating profit (2023 - operating loss) is stated after charging/(crediting):

2024 2023
£    £   
Depreciation - owned assets 28,008 11,854
Profit on disposal of fixed assets - (5,353 )
Goodwill amortisation 2,018,124 2,018,124
Auditors' remuneration 8,500 8,500
Foreign exchange differences 8,717 (219,959 )
Revaluation of investments 42,186 29,979

6. INTEREST PAYABLE AND SIMILAR EXPENSES
2024 2023
£    £   
Interest on late payment of
corporation tax 1,400 3,064
Loan note interest - (1,707,938 )
1,400 (1,704,874 )

7. 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 820,848 363,762
Overprovision in prior year (10,598 ) -

Tax on profit 810,250 363,762

LSC GROUP LIMITED (REGISTERED NUMBER: 10050390)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 29 FEBRUARY 2024


7. TAXATION - continued

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 1,345,591 1,538,216
Profit multiplied by the standard rate of corporation tax in the UK of 25 %
(2023 - 19 %)

336,398

292,261

Effects of:
Expenses not deductible for tax purposes 2,264 119
Income not taxable for tax purposes (9,980 ) (325,558 )
Depreciation in excess of capital allowances 509,199 385,696
Chargeable gains - 646
Overprovision of tax (10,598 ) 10,598
Effect of change in tax rate (17,033 ) -
Total tax charge 810,250 363,762

8. INDIVIDUAL STATEMENT OF COMPREHENSIVE INCOME

As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements.


9. INTANGIBLE FIXED ASSETS

Group
Trademarks Goodwill Totals
£    £    £   
COST
At 1 March 2023
and 29 February 2024 1,121,655 23,742,631 24,864,286
AMORTISATION
At 1 March 2023 1,121,655 15,670,139 16,791,794
Amortisation for year - 2,018,124 2,018,124
At 29 February 2024 1,121,655 17,688,263 18,809,918
NET BOOK VALUE
At 29 February 2024 - 6,054,368 6,054,368
At 28 February 2023 - 8,072,492 8,072,492

LSC GROUP LIMITED (REGISTERED NUMBER: 10050390)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 29 FEBRUARY 2024


10. PROPERTY, PLANT AND EQUIPMENT

Group
Improvements Fixtures
to Plant and and
property machinery fittings
£    £    £   
COST
At 1 March 2023 45,758 1,864 12,626
Additions - 7,812 103,399
At 29 February 2024 45,758 9,676 116,025
DEPRECIATION
At 1 March 2023 8,478 1,401 9,051
Charge for year 1,256 587 19,240
At 29 February 2024 9,734 1,988 28,291
NET BOOK VALUE
At 29 February 2024 36,024 7,688 87,734
At 28 February 2023 37,280 463 3,575

Motor Computer
vehicles equipment Totals
£    £    £   
COST
At 1 March 2023 47,761 19,814 127,823
Additions - - 111,211
At 29 February 2024 47,761 19,814 239,034
DEPRECIATION
At 1 March 2023 22,167 18,376 59,473
Charge for year 6,397 528 28,008
At 29 February 2024 28,564 18,904 87,481
NET BOOK VALUE
At 29 February 2024 19,197 910 151,553
At 28 February 2023 25,594 1,438 68,350

LSC GROUP LIMITED (REGISTERED NUMBER: 10050390)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 29 FEBRUARY 2024


11. FIXED ASSET INVESTMENTS

Group
Listed
investments
£   
COST OR VALUATION
At 1 March 2023 1,590,186
Additions 1,497,866
Disposals (100,000 )
Revaluations 39,867
At 29 February 2024 3,027,919
NET BOOK VALUE
At 29 February 2024 3,027,919
At 28 February 2023 1,590,186

Cost or valuation at 29 February 2024 is represented by:

Listed
investments
£   
Valuation in 2024 39,867
Valuation in 2023 (31,236 )
Valuation in 2022 (10,176 )
Valuation in 2021 968
Valuation in 2020 (13,023 )
Valuation in 2019 (107,934 )
Valuation in 2018 2,425
Valuation in 2017 (55,121 )
Valuation in 2016 (90,076 )
Valuation in 2015 (66,015 )
Cost 3,358,240
3,027,919
Company
Shares in
group
undertakings
£   
COST
At 1 March 2023
and 29 February 2024 20,656,142
NET BOOK VALUE
At 29 February 2024 20,656,142
At 28 February 2023 20,656,142

LSC GROUP LIMITED (REGISTERED NUMBER: 10050390)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 29 FEBRUARY 2024


11. FIXED ASSET INVESTMENTS - continued

The group or the company's investments at the Statement of Financial Position date in the share capital of companies include the following:

Subsidiaries

LSC Holdings Limited
Registered office: 1-7 Fallbarn Road, Rawtenstall, Rossendale, BB4 7NT
Nature of business: Intermediary holding company
%
Class of shares: holding
Ordinary 100.00

Lyndhurst Shoe Company Limited
Registered office: 1-7 Fallbarn Road, Rawtenstall, Rossendale, BB4 7NT
Nature of business: Sale of footwear
%
Class of shares: holding
*Ordinary 100.00

* indirect shareholding


12. INVENTORIES

Group
2024 2023
£    £   
Finished goods 330,467 514,959
Goods in transit - 378,280
330,467 893,239

13. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group
2024 2023
£    £   
Trade debtors 2,062,385 1,712,209
Other debtors 65,931 70,444
VAT recoverable 25,248 -
S455 taxation debtor 134 134
Accrued income 581,770 176,740
Prepayments 86,417 82,581
2,821,885 2,042,108

LSC GROUP LIMITED (REGISTERED NUMBER: 10050390)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 29 FEBRUARY 2024


14. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group Company
2024 2023 2024 2023
£    £    £    £   
Other loans (see note 15) 979,446 979,446 979,446 979,446
Trade creditors 232,344 427,413 - -
Corporation tax 340,559 339,309 - -
Social security and other taxes 4,195 4,756 - -
Other creditors 28,042 128,847 - -
Amounts due to related parties 14,311,077 6,436,205 - -
Directors' loan accounts 2,134,095 2,008,990 - -
Accrued expenses 45,463 68,794 - -
18,075,221 10,393,760 979,446 979,446

15. LOANS

An analysis of the maturity of loans is given below:

Group Company
2024 2023 2024 2023
£    £    £    £   
Amounts falling due within one year or on demand:
Loan notes 979,446 979,446 979,446 979,446

The loan notes are unsecured, repayable on demand and during the year interest previously charged of £1,707,938 was waived.

16. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2024 2023
value: £    £   
13,725,491 Ordinary £1 13,725,491 13,725,491

17. RELATED PARTY DISCLOSURES

Rent amounting to £46,000 (2023: £46,000) was paid to a director for the occupation of the properties used by the company.

Included within creditors falling due within one year are amounts due from related parties of £14,311,077 (2023: £6,436,205). These loans are interest free, unsecured and repayable on demand.

All related party loans are due from or to companies which are under the control of the directors of Lyndhurst Shoe Company Limited.

There are no key management personnel other than the directors.

LSC GROUP LIMITED (REGISTERED NUMBER: 10050390)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 29 FEBRUARY 2024


18. ULTIMATE CONTROLLING PARTY

The ultimate controlling parties are A Morley-Doidge and R L Morley as joint majority shareholders.