REGISTERED NUMBER: 07884900 (England and Wales) |
L M PRODUCTS (HOLDINGS) LIMITED |
GROUP STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 |
REGISTERED NUMBER: 07884900 (England and Wales) |
L M PRODUCTS (HOLDINGS) LIMITED |
GROUP STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 |
L M PRODUCTS (HOLDINGS) LIMITED (REGISTERED NUMBER: 07884900) |
CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MARCH 2024 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 3 |
Report of the Independent Auditors | 5 |
Consolidated Income Statement | 9 |
Consolidated Other Comprehensive Income | 10 |
Consolidated Balance Sheet | 11 |
Company Balance Sheet | 12 |
Consolidated Statement of Changes in Equity | 13 |
Company Statement of Changes in Equity | 14 |
Consolidated Cash Flow Statement | 15 |
Notes to the Consolidated Cash Flow Statement | 16 |
Notes to the Consolidated Financial Statements | 17 |
L M PRODUCTS (HOLDINGS) LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 31 MARCH 2024 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Certified Accountants |
Statutory Auditors |
Marston House |
5 Elmdon Lane |
Marston Green |
Solihull |
West Midlands |
B37 7DL |
L M PRODUCTS (HOLDINGS) LIMITED (REGISTERED NUMBER: 07884900) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 31 MARCH 2024 |
The directors present their strategic report of the company and the group for the year ended 31 March 2024. |
REVIEW OF BUSINESS |
Overall, the directors are please with the performance of the business during the financial year ending March 2024. |
As anticipated the trading year was a challenging one as a direct result of the global economic uncertainty which affected all sectors throughout the UK. |
Construction particularly felt the full force of this with not only the slow down of house building to a near standstill due to interest rates but also the cancellation / delays of major infrastructure projects. |
This reflected in the company turnover being reduced by circa 30% as overall demand in the sector reduced to very low levels. |
The company also experienced cost increases with new lease agreements on buildings, energy costs and wages. |
Fortunately, due to the long-standing reputation of the business to provide quality service, a broad customer base and experience within the team to adjust to the ever-challenging market conditions, we managed to navigate our way through the year, ending another year in a profitable position. |
The measures introduced in the previous year relating to credit control proved to be successful limiting bad debt to a minimum. This was particularly pleasing to see in a year where the construction industry saw considerable losses. |
Supply chain is in a good place with more options now in place that will enable us to achieve a competitive edge. |
The liquidity of the business is still strong even with a reduced level of incoming revenue and the continued prudence in our decision making can only strengthen the business going forward. |
ON BEHALF OF THE BOARD: |
L M PRODUCTS (HOLDINGS) LIMITED (REGISTERED NUMBER: 07884900) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 MARCH 2024 |
The directors present their report with the financial statements of the company and the group for the year ended 31 March 2024. |
PRINCIPAL ACTIVITY |
The principal activity of the group in the year under review was that of the manufacture and supply of metal and plastic components primarily for the construction industry. |
DIVIDENDS |
An interim dividend of £3756.09756 per share was paid on the Ordinary A £1 shares on 31 March 2024. No dividends were paid on the Ordinary £1 shares. |
The total distribution of dividends for the year ended 31 March 2024 will be £ 313,000 . |
FUTURE DEVELOPMENTS |
The directors anticipate the business environment will remain competitive. They believe the financial position and the risks that have been identified are being well managed. Investment in attaining new accreditations inline with construction industry requirements has been identified as one area that will assist with growth. We also intend to introduce new technology to the business that fully utilised will bring efficiencies to the day to day operations. The directors are confident in the companies ability to maintain and build on this position, albeit with cautious growth expectations. |
DIRECTORS |
FINANCIAL INSTRUMENTS |
The group has a normal level of exposure to price, credit, liquidity and cash flow risks arising from trading activities which are largely conducted in sterling.The group does not enter into any formally designated hedging arrangements. |
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). 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; |
- | 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 ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
L M PRODUCTS (HOLDINGS) LIMITED (REGISTERED NUMBER: 07884900) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 MARCH 2024 |
AUDITORS |
The auditors, Sephton & Company LLP, 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 |
L M PRODUCTS (HOLDINGS) LIMITED |
Opinion |
We have audited the financial statements of L M Products (Holdings) Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2024 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated 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 group's and of the parent company affairs as at 31 March 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 |
L M PRODUCTS (HOLDINGS) 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 three, 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. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
L M PRODUCTS (HOLDINGS) LIMITED |
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: |
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: As part of designing our audit, we determined materiality and assessed the risks of material misstatement in the financial statements, including how fraud may occur by enquiring of management of its own consideration of fraud. In particular, we looked at where management made subjective judgements, for example in respect of significant accounting estimates that involved making assumptions and considering future events that are inherently uncertain. We also considered potential financial or other pressures, opportunity and motivations for fraud. As part of this discussion we identified the internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations and how management monitor these processes. Appropriate procedures included the review and testing of manual journals and key estimates and judgements made by management. |
We gained an understanding of the legal and regulatory framework applicable to the entity and the industry in which it operates, drawing on our broad sector experience, and considered the risk of acts by the entity that were contrary to these laws and regulations, including fraud. |
We focused on laws and regulations that could give rise to a material misstatement in the financial statements, including, but not limited to, health and safety and fire regulations. |
We made enquiries of management with regards to compliance with the above laws and regulations and corroborated any necessary evidence to relevant information, for example we obtained documentation that supports compliance with health & safety laws and regulations, such as the having ISO 45001:2018 certification in place. |
Our tests included agreeing the financial statements disclosures to underlying supporting documentation and enquiries with management. |
We also completed the following procedures: |
o Performed analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud; |
o In addressing the risk of fraud through management override of controls, we tested journal entries and other adjustments for inappropriate or unusual journals outside of our expectations, as well as for any significant transactions outside the normal course of business, taking into consideration the scope for management to manipulate financial results; |
o Assessed the appropriateness of key estimates and judgements made by management and challenged the assumptions used in accounting estimates. We considered the key estimates to be going concern, depreciation, bad debt provision and stock being held at the lower of cost and NRV. |
Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it. |
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. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
L M PRODUCTS (HOLDINGS) LIMITED |
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 |
Chartered Certified Accountants |
Statutory Auditors |
Marston House |
5 Elmdon Lane |
Marston Green |
Solihull |
West Midlands |
B37 7DL |
L M PRODUCTS (HOLDINGS) LIMITED (REGISTERED NUMBER: 07884900) |
CONSOLIDATED |
INCOME STATEMENT |
FOR THE YEAR ENDED 31 MARCH 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
TURNOVER | 12,179,049 | 18,596,822 |
Cost of sales | 9,729,801 | 14,060,817 |
GROSS PROFIT | 2,449,248 | 4,536,005 |
Distribution costs | 526,115 | 651,235 |
Administrative expenses | 1,623,490 | 1,598,328 |
2,149,605 | 2,249,563 |
OPERATING PROFIT | 4 | 299,643 | 2,286,442 |
Interest receivable and similar income | 34,428 | 956 |
PROFIT BEFORE TAXATION | 334,071 | 2,287,398 |
Tax on profit | 5 | 131,365 | 429,955 |
PROFIT FOR THE FINANCIAL YEAR |
Profit attributable to: |
Owners of the parent | 197,999 | 1,842,142 |
Non-controlling interests | 4,707 | 15,301 |
202,706 | 1,857,443 |
L M PRODUCTS (HOLDINGS) LIMITED (REGISTERED NUMBER: 07884900) |
CONSOLIDATED |
OTHER COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 31 MARCH 2024 |
2024 | 2023 |
Notes | £ | £ |
PROFIT FOR THE YEAR | 202,706 | 1,857,443 |
OTHER COMPREHENSIVE INCOME |
Purchase of own shares | - | (179,982 | ) |
Equity attributable to the parent | - | 57,442 |
Income tax relating to components of other comprehensive income |
- |
- |
OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX |
- |
(122,540 |
) |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
202,706 |
1,734,903 |
Total comprehensive income attributable to: |
Owners of the parent | 197,999 | 1,719,602 |
Non-controlling interests | 4,707 | 15,301 |
202,706 | 1,734,903 |
L M PRODUCTS (HOLDINGS) LIMITED (REGISTERED NUMBER: 07884900) |
CONSOLIDATED BALANCE SHEET |
31 MARCH 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 8 | - | - |
Tangible assets | 9 | 704,119 | 821,395 |
Investments | 10 | - | - |
704,119 | 821,395 |
CURRENT ASSETS |
Stocks | 11 | 2,012,680 | 3,118,776 |
Debtors | 12 | 2,576,206 | 3,886,605 |
Cash at bank and in hand | 3,598,136 | 1,374,519 |
8,187,022 | 8,379,900 |
CREDITORS |
Amounts falling due within one year | 13 | 2,169,296 | 2,384,137 |
NET CURRENT ASSETS | 6,017,726 | 5,995,763 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
6,721,845 |
6,817,158 |
PROVISIONS FOR LIABILITIES | 16 | 166,250 | 151,269 |
NET ASSETS | 6,555,595 | 6,665,889 |
CAPITAL AND RESERVES |
Called up share capital | 17 | 82 | 82 |
Capital redemption reserve | 18 | 18 | 18 |
Retained earnings | 18 | 6,180,604 | 6,295,605 |
SHAREHOLDERS' FUNDS | 6,180,704 | 6,295,705 |
NON-CONTROLLING INTERESTS | 374,891 | 370,184 |
TOTAL EQUITY | 6,555,595 | 6,665,889 |
The financial statements were approved by the Board of Directors and authorised for issue on 4 November 2024 and were signed on its behalf by: |
S Worth - Director |
L M PRODUCTS (HOLDINGS) LIMITED (REGISTERED NUMBER: 07884900) |
COMPANY BALANCE SHEET |
31 MARCH 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 8 |
Tangible assets | 9 |
Investments | 10 |
CURRENT ASSETS |
Debtors | 12 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 13 |
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 |
Company's profit for the financial year | 103,557 | 1,508,915 |
The financial statements were approved by the Board of Directors and authorised for issue on |
L M PRODUCTS (HOLDINGS) LIMITED (REGISTERED NUMBER: 07884900) |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 MARCH 2024 |
Called up | Capital |
share | Retained | redemption |
capital | earnings | reserve |
£ | £ | £ |
Balance at 1 April 2022 | 100 | 5,110,021 | - |
Changes in equity |
Issue of share capital | (18 | ) | - | - |
Dividends | - | (534,000 | ) | - |
Total comprehensive income | - | 1,719,584 | 18 |
82 | 6,295,605 | 18 |
Acquisition of non-controlling interest |
- |
- |
- |
Balance at 31 March 2023 | 82 | 6,295,605 | 18 |
Changes in equity |
Dividends | - | (313,000 | ) | - |
Total comprehensive income | - | 197,999 | - |
Balance at 31 March 2024 | 82 | 6,180,604 | 18 |
Non-controlling | Total |
Total | interests | equity |
£ | £ | £ |
Balance at 1 April 2022 | 5,110,121 | 532,325 | 5,642,446 |
Changes in equity |
Issue of share capital | (18 | ) | - | (18 | ) |
Dividends | (534,000 | ) | - | (534,000 | ) |
Total comprehensive income | 1,719,602 | 15,301 | 1,734,903 |
6,295,705 | 547,626 | 6,843,331 |
Acquisition of non-controlling interest |
- |
(177,442 |
) |
(177,442 |
) |
Balance at 31 March 2023 | 6,295,705 | 370,184 | 6,665,889 |
Changes in equity |
Dividends | (313,000 | ) | - | (313,000 | ) |
Total comprehensive income | 197,999 | 4,707 | 202,706 |
Balance at 31 March 2024 | 6,180,704 | 374,891 | 6,555,595 |
L M PRODUCTS (HOLDINGS) LIMITED (REGISTERED NUMBER: 07884900) |
COMPANY STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 MARCH 2024 |
Called up | Capital |
share | Retained | redemption | Total |
capital | earnings | reserve | equity |
£ | £ | £ | £ |
Balance at 1 April 2022 |
Changes in equity |
Issue of share capital | ( |
) | - | - | ( |
) |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - |
Balance at 31 March 2023 |
Changes in equity |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - |
Balance at 31 March 2024 |
L M PRODUCTS (HOLDINGS) LIMITED (REGISTERED NUMBER: 07884900) |
CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 MARCH 2024 |
2024 | 2023 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 2,704,861 | 2,553,211 |
Tax paid | (177,218 | ) | (838,191 | ) |
Net cash from operating activities | 2,527,643 | 1,715,020 |
Cash flows from investing activities |
Purchase of tangible fixed assets | (21,336 | ) | (211,158 | ) |
Purchase of fixed asset investments | - | (120,000 | ) |
Interest received | 34,428 | 956 |
Net cash from investing activities | 13,092 | (330,202 | ) |
Cash flows from financing activities |
Amount introduced by directors | 313,001 | 534,001 |
Amount withdrawn by directors | (317,119 | ) | (581,976 | ) |
Share issue | - | (18 | ) |
Share buyback | - | (179,982 | ) |
Equity dividends paid | (313,000 | ) | (534,000 | ) |
Net cash from financing activities | (317,118 | ) | (761,975 | ) |
Increase in cash and cash equivalents | 2,223,617 | 622,843 |
Cash and cash equivalents at beginning of year |
2 |
1,374,519 |
751,676 |
Cash and cash equivalents at end of year | 2 | 3,598,136 | 1,374,519 |
L M PRODUCTS (HOLDINGS) LIMITED (REGISTERED NUMBER: 07884900) |
NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 MARCH 2024 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2024 | 2023 |
£ | £ |
Profit before taxation | 334,071 | 2,287,398 |
Depreciation charges | 138,612 | 155,482 |
Finance income | (34,428 | ) | (956 | ) |
438,255 | 2,441,924 |
Decrease in stocks | 1,106,096 | 698,269 |
Decrease in trade and other debtors | 1,310,399 | 581,517 |
Decrease in trade and other creditors | (149,889 | ) | (1,168,499 | ) |
Cash generated from operations | 2,704,861 | 2,553,211 |
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 March 2024 |
31/3/24 | 1/4/23 |
£ | £ |
Cash and cash equivalents | 3,598,136 | 1,374,519 |
Year ended 31 March 2023 |
31/3/23 | 1/4/22 |
£ | £ |
Cash and cash equivalents | 1,374,519 | 751,676 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1/4/23 | Cash flow | At 31/3/24 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 1,374,519 | 2,223,617 | 3,598,136 |
1,374,519 | 2,223,617 | 3,598,136 |
Total | 1,374,519 | 2,223,617 | 3,598,136 |
L M PRODUCTS (HOLDINGS) LIMITED (REGISTERED NUMBER: 07884900) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MARCH 2024 |
1. | STATUTORY INFORMATION |
L M Products (Holdings) Limited is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Basis of consolidation |
The consolidated financial statements incorporate the financial statements of the Company and entities controlled by the Group (its subsidiaries). Control is achieved where the Group has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities |
Where a subsidiary has different accounting policies to the group, adjustments are made to those subsidiary financial statements to apply the group’s accounting policies when preparing the consolidated financial statements. |
Significant judgements and estimates |
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. |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
Goodwill |
Intangible assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
Tangible fixed assets |
Improvements to property | - |
Plant and machinery | - |
Fixtures and fittings | - |
Motor vehicles | - |
Computer equipment | - |
L M PRODUCTS (HOLDINGS) LIMITED (REGISTERED NUMBER: 07884900) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2024 |
2. | ACCOUNTING POLICIES - continued |
Stocks |
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
Financial instruments |
The Company only enters into basic financial instrument transactions that result in the recognition of financial |
assets and liabilities like trade and other accounts receivable and payable, cash and bank balances, loans to or from related parties and current asset investments. All such instruments are measured initially and subsequently at the transaction price. |
At the end of each reporting period debt financial assets are assessed for impairment, and their carrying value reduced if necessary. Any impairment is recognised in the profit and loss account. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated 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. |
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 group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
3. | EMPLOYEES AND DIRECTORS |
2024 | 2023 |
£ | £ |
Wages and salaries | 1,610,810 | 1,739,127 |
Social security costs | 146,266 | 170,425 |
Other pension costs | 98,061 | 72,351 |
1,855,137 | 1,981,903 |
L M PRODUCTS (HOLDINGS) LIMITED (REGISTERED NUMBER: 07884900) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2024 |
3. | EMPLOYEES AND DIRECTORS - continued |
The average number of employees during the year was as follows: |
2024 | 2023 |
Admin | 7 | 7 |
Sales | 7 | 7 |
Factory | 33 | 35 |
2024 | 2023 |
£ | £ |
Directors' remuneration | 355,657 | 353,588 |
Directors' pension contributions to money purchase schemes | 12,642 | 6,642 |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes | 3 | 3 |
Information regarding the highest paid director is as follows: |
2024 | 2023 |
£ | £ |
Emoluments etc | 146,313 | 145,636 |
Pension contributions to money purchase schemes | 10,000 | 4,000 |
4. | OPERATING PROFIT |
The operating profit is stated after charging: |
2024 | 2023 |
£ | £ |
Hire of plant and machinery | 15,317 | 14,899 |
Depreciation - owned assets | 138,612 | 155,482 |
Auditors' remuneration | 24,500 | 8,500 |
Foreign exchange differences | 1,067 | 2,619 |
5. | 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 | 116,384 | 419,497 |
Deferred tax | 14,981 | 10,458 |
Tax on profit | 131,365 | 429,955 |
L M PRODUCTS (HOLDINGS) LIMITED (REGISTERED NUMBER: 07884900) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2024 |
5. | 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 | 334,071 | 2,287,398 |
Profit multiplied by the standard rate of corporation tax in the UK of 25 % (2023 - 19 %) |
83,518 |
434,606 |
Effects of: |
Expenses not deductible for tax purposes | 78 | 324 |
Income not taxable for tax purposes | - | (4,975 | ) |
Adjustments to tax charge in respect of previous periods | 47,769 | - |
Total tax charge | 131,365 | 429,955 |
Tax effects relating to effects of other comprehensive income |
There were no tax effects for the year ended 31 March 2024. |
2023 |
Gross | Tax | Net |
£ | £ | £ |
Purchase of own shares | (179,982 | ) | - | (179,982 | ) |
Equity attributable to the parent | 57,442 | - | 57,442 |
(122,540 | ) | - | (122,540 | ) |
6. | INDIVIDUAL INCOME STATEMENT |
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. |
7. | DIVIDENDS |
2024 | 2023 |
£ | £ |
Ordinary shares of £1 each |
Interim | 5,000 | 534,000 |
Ordinary A shares of £1 each |
Interim | 308,000 | - |
313,000 | 534,000 |
L M PRODUCTS (HOLDINGS) LIMITED (REGISTERED NUMBER: 07884900) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2024 |
8. | INTANGIBLE FIXED ASSETS |
Group |
Goodwill |
£ |
COST |
At 1 April 2023 |
and 31 March 2024 | 89,699 |
AMORTISATION |
At 1 April 2023 |
and 31 March 2024 | 89,699 |
NET BOOK VALUE |
At 31 March 2024 | - |
At 31 March 2023 | - |
9. | TANGIBLE FIXED ASSETS |
Group |
Improvements | Fixtures |
to | Plant and | and |
property | machinery | fittings |
£ | £ | £ |
COST |
At 1 April 2023 | 69,973 | 1,726,067 | 20,451 |
Additions | 18,418 | - | 945 |
At 31 March 2024 | 88,391 | 1,726,067 | 21,396 |
DEPRECIATION |
At 1 April 2023 | 68,496 | 977,874 | 12,309 |
Charge for year | 1,274 | 112,202 | 1,274 |
At 31 March 2024 | 69,770 | 1,090,076 | 13,583 |
NET BOOK VALUE |
At 31 March 2024 | 18,621 | 635,991 | 7,813 |
At 31 March 2023 | 1,477 | 748,193 | 8,142 |
L M PRODUCTS (HOLDINGS) LIMITED (REGISTERED NUMBER: 07884900) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2024 |
9. | TANGIBLE FIXED ASSETS - continued |
Group |
Motor | Computer |
vehicles | equipment | Totals |
£ | £ | £ |
COST |
At 1 April 2023 | 103,068 | 88,440 | 2,007,999 |
Additions | - | 1,973 | 21,336 |
At 31 March 2024 | 103,068 | 90,413 | 2,029,335 |
DEPRECIATION |
At 1 April 2023 | 49,930 | 77,995 | 1,186,604 |
Charge for year | 13,284 | 10,578 | 138,612 |
At 31 March 2024 | 63,214 | 88,573 | 1,325,216 |
NET BOOK VALUE |
At 31 March 2024 | 39,854 | 1,840 | 704,119 |
At 31 March 2023 | 53,138 | 10,445 | 821,395 |
Company |
Plant and |
machinery |
£ |
COST |
At 1 April 2023 |
and 31 March 2024 |
DEPRECIATION |
At 1 April 2023 |
Charge for year |
At 31 March 2024 |
NET BOOK VALUE |
At 31 March 2024 |
At 31 March 2023 |
L M PRODUCTS (HOLDINGS) LIMITED (REGISTERED NUMBER: 07884900) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2024 |
10. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1 April 2023 |
and 31 March 2024 |
NET BOOK VALUE |
At 31 March 2024 |
At 31 March 2023 |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiary |
Registered office: Unit 10 Union Road, Oldbury, West Midlands, B69 3EX |
Nature of business: |
% |
Class of shares: | holding |
11. | STOCKS |
Group |
2024 | 2023 |
£ | £ |
Stocks | 2,012,680 | 3,118,776 |
12. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Trade debtors | 1,939,851 | 3,286,772 |
Bad debt provision | - | (3,000 | ) | - | - |
Amounts owed by group undertakings | - | - |
Other debtors | 306,580 | 4,330 |
Invoice finance debtor | 190,417 | 466,460 | - | - |
Prepayments and accrued income | 139,358 | 132,043 |
2,576,206 | 3,886,605 |
L M PRODUCTS (HOLDINGS) LIMITED (REGISTERED NUMBER: 07884900) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2024 |
13. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Trade creditors | 1,900,767 | 1,741,471 |
credit balances | 55,720 | 12,826 | - | - |
Corporation tax | (16,194 | ) | 44,640 |
PAYE & NIC control a/c | 34,836 | 36,035 |
VAT | 30,979 | 370,286 | 23,178 | 31,167 |
Other creditors | 6,008 | 5,793 |
Wages control account | 20 | - | 20 | - |
account | 34 | 257 | 34 | 257 |
Directors' current accounts | 98 | 4,216 | 98 | 4,216 |
Accrued expenses | 157,028 | 168,613 |
2,169,296 | 2,384,137 |
14. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Non-cancellable operating | leases |
2024 | 2023 |
£ | £ |
Within one year | - | 122,340 |
Between one and five years | - | 181,539 |
- | 303,879 |
15. | SECURED DEBTS |
Venture Finance Plc have an all assets debenture dated 17 February 2012 securing any monies due or becoming due from LM Products (Holdings) Limited. |
16. | PROVISIONS FOR LIABILITIES |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Deferred tax | 166,250 | 151,269 | 127,509 | 114,007 |
Group |
Deferred |
tax |
£ |
Balance at 1 April 2023 | 151,269 |
Provided during year | 14,981 |
Balance at 31 March 2024 | 166,250 |
L M PRODUCTS (HOLDINGS) LIMITED (REGISTERED NUMBER: 07884900) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2024 |
16. | PROVISIONS FOR LIABILITIES - continued |
Company |
Deferred |
tax |
£ |
Balance at 1 April 2023 |
Provided during year |
Balance at 31 March 2024 |
17. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2024 | 2023 |
value: | £ | £ |
Ordinary A | £1 | 82 | 82 |
18. | RESERVES |
Group |
Capital |
Retained | redemption |
earnings | reserve | Totals |
£ | £ | £ |
At 1 April 2023 | 6,295,605 | 18 | 6,295,623 |
Profit for the year | 197,999 | 197,999 |
Dividends | (313,000 | ) | (313,000 | ) |
At 31 March 2024 | 6,180,604 | 18 | 6,180,622 |
Company |
Capital |
Retained | redemption |
earnings | reserve | Totals |
£ | £ | £ |
At 1 April 2023 | 3,175,392 |
Profit for the year |
Dividends | ( |
) | ( |
) |
At 31 March 2024 | 2,970,949 |
19. | RELATED PARTY DISCLOSURES |
Entities with control, joint control or significant influence over the entity |
2024 | 2023 |
£ | £ |
Amount due from related party | 300,000 | - |
L M PRODUCTS (HOLDINGS) LIMITED (REGISTERED NUMBER: 07884900) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2024 |
The loan is unsecured and repayable on demand. |
Interest is not charged on the outstanding balance. |