Company registration number SC221382 (Scotland)
LECHKIN FENCING SERVICES LTD
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED
31 MARCH 2024
31 March 2024
PAGES FOR FILING WITH REGISTRAR
LECHKIN FENCING SERVICES LTD
CONTENTS
Page
Statement of financial position
1 - 2
Notes to the financial statements
3 - 7
LECHKIN FENCING SERVICES LTD
STATEMENT OF FINANCIAL POSITION
AS AT
31 MARCH 2024
31 March 2024
- 1 -
2024
2023
Notes
£
£
£
£
Non-current assets
Intangible assets
4
22,000
Property, plant and equipment
5
587,495
420,156
Investments
6
33,492
620,987
442,156
Current assets
Inventories
161,032
65,300
Trade and other receivables
7
889,257
840,907
Cash and cash equivalents
390,565
367,182
1,440,854
1,273,389
Current liabilities
8
(450,769)
(383,443)
Net current assets
990,085
889,946
Total assets less current liabilities
1,611,072
1,332,102
Non-current liabilities
9
(78,333)
(49,610)
Provisions for liabilities
(46,454)
(42,539)
Net assets
1,486,285
1,239,953
Equity
Called up share capital
10
2
2
Retained earnings
1,486,283
1,239,951
Total equity
1,486,285
1,239,953
The directors of the company have elected not to include a copy of the income statement within the financial statements.true
For the financial year ended 31 March 2024 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
LECHKIN FENCING SERVICES LTD
STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT
31 MARCH 2024
31 March 2024
- 2 -
The financial statements were approved by the board of directors and authorised for issue on 30 September 2024 and are signed on its behalf by:
Mr G N Harrower
Mrs M H Harrower
Director
Director
Company Registration No. SC221382
LECHKIN FENCING SERVICES LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
- 3 -
1
Accounting policies
Company information
Lechkin Fencing Services Ltd is a private company limited by shares incorporated in Scotland. The registered office is Lechkin Cottage, Comrie, Crieff, Perthshire, United Kingdom, PH6 2LX.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, [modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.
1.2
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Revenue
Revenue is recognised at the fair value of the consideration received or receivable for goods and services provided from the supply and erection of industrial fencing, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
1.4
Intangible fixed assets - goodwill
Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is ten years.
1.5
Property, plant and equipment
Property, plant and equipment are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Freehold land and buildings
10% on cost
Plant and equipment
25% on reducing balance
Computers
25% on reducing balance
Motor vehicles
25% 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 credited or charged to profit or loss.
LECHKIN FENCING SERVICES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 4 -
At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
1.6
Inventories
Inventories are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition.
1.7
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.8
Leases
Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
LECHKIN FENCING SERVICES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 5 -
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Total
12
12
4
Intangible fixed assets
Goodwill
£
Cost
At 1 April 2023 and 31 March 2024
220,000
Amortisation and impairment
At 1 April 2023
198,000
Amortisation charged for the year
22,000
At 31 March 2024
220,000
Carrying amount
At 31 March 2024
At 31 March 2023
22,000
5
Property, plant and equipment
Freehold land and buildings
Plant and equipment
Computers
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 April 2023
264,000
173,000
10,638
183,291
630,929
Additions
151,679
7,160
3,628
71,349
233,816
Disposals
(15,813)
(35,644)
(51,457)
At 31 March 2024
415,679
164,347
14,266
218,996
813,288
Depreciation and impairment
At 1 April 2023
12,600
84,437
7,434
106,302
210,773
Depreciation charged in the year
1,400
22,808
1,322
29,432
54,962
Eliminated in respect of disposals
(14,754)
(25,188)
(39,942)
At 31 March 2024
14,000
92,491
8,756
110,546
225,793
Carrying amount
At 31 March 2024
401,679
71,856
5,510
108,450
587,495
At 31 March 2023
251,400
88,563
3,204
76,989
420,156
LECHKIN FENCING SERVICES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 6 -
6
Fixed asset investments
2024
2023
£
£
Other investments other than loans
33,492
Movements in non-current investments
Investments
£
Cost or valuation
At 1 April 2023
-
Additions
33,492
At 31 March 2024
33,492
Carrying amount
At 31 March 2024
33,492
At 31 March 2023
-
7
Trade and other receivables
2024
2023
Amounts falling due within one year:
£
£
Trade receivables
799,465
738,377
Other receivables
89,792
102,530
889,257
840,907
8
Current liabilities
2024
2023
£
£
Bank loans
20,000
14,236
Trade payables
251,759
297,011
Corporation tax
147,143
34,005
Other taxation and social security
15,327
22,811
Other payables
16,540
15,380
450,769
383,443
LECHKIN FENCING SERVICES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 7 -
9
Non-current liabilities
2024
2023
Notes
£
£
Bank loans and overdrafts
78,333
49,610
10
Called up share capital
2024
2023
£
£
Ordinary share capital
Issued and fully paid
2 Ordinary shares of £1 each
2
2
11
Directors' transactions
Dividends totalling £144,700 (2023 - £132,000) were paid in the year in respect of shares held by the company's directors.
Loans have been granted by the company to its directors as follows:
Description
% Rate
Opening balance
Amounts advanced
Amounts repaid
Closing balance
£
£
£
£
Mr G N Harrower -
2.50
13,142
17,282
(13,142)
17,282
Mrs M H Harrower -
2.50
7,471
5,698
(7,471)
5,698
20,613
22,980
(20,613)
22,980