Company registration number 00741075 (England and Wales)
LALTEX & CO.LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 29 FEBRUARY 2024
LALTEX & CO.LIMITED
COMPANY INFORMATION
Directors
S R Mulchand
R J Mulchand
Secretary
C Price
Company number
00741075
Registered office
Laltex House
Leigh Commerce Park
Leigh
Lancashire
WN7 3XH
Auditor
Royce Peeling Green Limited
The Copper Room
Deva City Office Park
Trinity Way
Manchester
M3 7BG
Bankers
HSBC Bank Plc
2nd Floor
Landmark
St Peter's Square
1 Oxford Street
Manchester
M1 4PB
Barclays Bank PLC
First Floor
3 Hardman Street
Manchester
M3 3AX
LALTEX & CO.LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 6
Profit and loss account
7
Group statement of comprehensive income
8
Group balance sheet
9
Company balance sheet
10
Group statement of changes in equity
11
Company statement of changes in equity
12
Group statement of cash flows
13
Notes to the financial statements
14 - 30
LALTEX & CO.LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 1 -

The directors present the strategic report for the year ended 29 February 2024.

Business review and key performance indicators

 

The directors are satisfied with the operating results for the year given the competitive environment in which it operates.

 

The Group has continued to focus on developing its relationships with both clients and suppliers, alongside introducing new products which have contributed to the results summarised below.

 

The Group’s trading revenue increased to £51.1m (2023: £47.1m).

 

The figures referred to above are considered to be the key financial measure upon which the business is monitored and controlled by the directors.

 

The reported results for the year include fair value gains and losses in respect of listed investments and forward exchange contracts, the effects of which are shown below the operating profit on the face of the profit and loss account.

 

In preparing the financial statements, strategic report and directors’ report, the board have fully considered points a – f as set out in s172 of the Companies Act 2006.

Principal risks and uncertainties

 

Financial Risk Management

The main risks arising are currency exchange risk and credit risk. The directors have reviewed and agreed policies for managing each of these risks.

 

Currency Exchange Risk

The group seeks to manage currency exchange risk through a mixture of hedging instruments and regular reviews by the directors.

 

Credit Risk

The group’s financial assets include amounts due from its customers. The credit risk associated with outstanding customer balances is managed by our experienced team members and mitigated by using credit insurance where applicable.

Year end position

The group’s overall position at year-end reflects the financial strength of the business, which is considered by the directors to be well positioned for the future.

 

The directors would like to acknowledge and give thanks for the incredible hard work and dedication of it’s loyal team members during this financial period.

By order of the board

R J Mulchand
Director
18 November 2024
LALTEX & CO.LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 2 -

The directors present their annual report and financial statements for the year ended 29 February 2024.

Principal activities

The principal activity of the company and group continued to be that of selling of goods.

Results and dividends

The results for the year are set out on page 7.

Ordinary dividends were paid amounting to £1,204,500 (2023: £1,080,540). The directors do not recommend payment of a further dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

S R Mulchand
R J Mulchand
Streamlined energy and carbon reporting

Greenhouse gas emissions, energy consumption and energy efficiency

The Group’s greenhouse gas emissions and energy consumption for March 2023 to February 2024 is summarised as shown below:

 

                    29 February 2024        28 February 2023

                    Metric tonnes (tCO2e)        Metric tonnes (tCO2e)

Source of emissions

Electricity                 71.8             89.8

Gas                     57.5                 48.9

Propane                     0.3                 1.0

Fleet fuel                 72.9             52.8

Others                     14.5                 15.8

 

 

29 February 2024         28 February 2023

Utility              Scope

Electricity (kWh)              2     526,172.7         464,459.2

Gaseous fuels (kWh)         1     314,086.0             267,909.0

Other fuels (litres) 1     29,025.8         20,639.7

Waste (tonnes)             3     101.2             110.0    

Water (cubic metres)         3     3,205.2             3,258.5

 

Measured carbon footprint     217.0 tCO2e     208.3 tCO2e

Intensity ratio (Measured CO2 per employee) 1.0 tCO2e         1.1 tCO2e

 

The intensity ratio has been calculated using the average number of employees across the Group during the year.

LALTEX & CO.LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 3 -
Streamlined energy and carbon reporting (continued)

The Group carbon footprint for electricity usage is reported in two ways, one is using the location-based method of calculating Scope 2 electricity emissions and the other uses a market-based method. A location-based method reflects the average emissions intensity of grids on which energy consumption occurs (using mostly grid-average emission factor data). A market-based method reflects emissions from electricity that an entity has purposefully chosen (or their lack of choice). In the current and prior year, there is no difference in the measurement of electricity usage when based on a location method and when based on the market method.

 

The Group measured location-based carbon footprint for year ending February 2024 was 217.0 tCO2e, an increase of 4.1% from the year ending February 2023. Scope 1 emissions (natural gas, propane, fleet travel) account for 60.2%, location-based scope 2 emissions (electricity, fleet travel) account for 33.1% and scope 3 emissions (transmission and distribution losses, paper, waste, water, fleet travel) account for 6.7%.

 

For the next financial year, the target is to reduce the overall carbon footprint by 5%. The directors remain committed to plans to reduce baseline emissions on a continuing basis that will meet Net Zero targets by 2050.

 

Statement of directors' responsibilities

The directors are responsible for preparing the Annual Report 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 group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

By order of the board
C Price
Secretary
18 November 2024
LALTEX & CO.LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF LALTEX & CO.LIMITED
- 4 -
Opinion

We have audited the financial statements of Laltex & Co.Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 29 February 2024 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including 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:

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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and 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 other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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. 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 course of 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 our audit:

LALTEX & CO.LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF LALTEX & CO.LIMITED
- 5 -
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 their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, 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 is 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 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 parent company or to cease operations, or have no realistic alternative but to do so.

Auditor's 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 an auditor's report 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.

We evaluated the directors’ and management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks were related to posting manual journal entries to manipulate financial performance, management bias through judgements and assumptions in significant accounting estimates and significant one-off or unusual transactions.

Our audit procedures were designed to respond to those identified risks, including non-compliance with laws and regulations (irregularities) and fraud that are material to the financial statements. Our audit procedures included but were not limited to:

LALTEX & CO.LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF LALTEX & CO.LIMITED
- 6 -

Our audit procedures in relation to fraud included but were not limited to:

There are inherent limitations in the audit procedures described above and the primary responsibility for the prevention and detection of irregularities including fraud rests with management. As with any audit, there remained a risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal controls.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

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 an auditor's report 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.

Jonathan Hayward (Senior Statutory Auditor)
For and on behalf of Royce Peeling Green Limited
2 December 2024
Chartered Accountants
Statutory Auditor
The Copper Room
Deva City Office Park
Trinity Way
Manchester
M3 7BG
LALTEX & CO.LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 7 -
2024
2023
Notes
£
£
Turnover
3
51,117,668
47,077,400
Cost of sales
(30,326,034)
(26,596,005)
Gross profit
20,791,634
20,481,395
Distribution costs
(2,300,206)
(3,140,494)
Administrative expenses
(12,247,657)
(9,538,940)
Operating profit
4
6,243,771
7,801,961
Interest receivable and similar income
417,135
81,487
Interest payable and similar expenses
(359,563)
(198,534)
Gains/(Losses) on investments at fair value
44,015
(174,097)
Income from fixed asset investments
106,191
92,362
(Losses)/Gains on current asset investments
(31,176)
23,181
Gains/(Losses) on foreign exchange derivatives
34,806
(45,363)
Profit before taxation
6,455,179
7,580,997
Tax on profit
8
(1,602,201)
(1,425,568)
Profit for the financial year
4,852,978
6,155,429
Profit for the financial year is all attributable to the owners of the parent company.
LALTEX & CO.LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 8 -
2024
2023
£
£
Profit for the year
4,852,978
6,155,429
Other comprehensive income
-
-
Total comprehensive income for the year
4,852,978
6,155,429
Total comprehensive income for the year is all attributable to the owners of the parent company.
LALTEX & CO.LIMITED
GROUP BALANCE SHEET
AS AT
29 FEBRUARY 2024
29 February 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Goodwill
10
2,000,289
2,348,166
Tangible assets
11
7,752,685
7,601,513
Investment property
12
2,024,307
-
0
11,777,281
9,949,679
Current assets
Stocks
16
13,691,694
16,546,904
Debtors
17
9,977,321
6,827,801
Investments
18
3,021,077
2,831,714
Cash at bank and in hand
15,016,424
10,734,534
41,706,516
36,940,953
Creditors: amounts falling due within one year
19
(17,224,864)
(14,280,266)
Net current assets
24,481,652
22,660,687
Net assets
36,258,933
32,610,366
Capital and reserves
Called up share capital
22
600,000
600,000
Capital redemption reserve
150,000
150,000
Profit and loss reserves
35,508,933
31,860,366
Total equity
36,258,933
32,610,366
The financial statements were approved by the board of directors and authorised for issue on 18 November 2024 and are signed on its behalf by:
18 November 2024
R J Mulchand
Director
Company registration number 00741075 (England and Wales)
LALTEX & CO.LIMITED
COMPANY BALANCE SHEET
AS AT 29 FEBRUARY 2024
29 February 2024
- 10 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
11
6,958,002
6,413,830
Investment property
12
2,024,307
-
0
Investments
13
4,828,250
4,828,250
13,810,559
11,242,080
Current assets
Debtors
17
7,179,308
8,671,796
Investments
18
3,021,077
2,831,714
Cash at bank and in hand
2,180,019
133,785
12,380,404
11,637,295
Creditors: amounts falling due within one year
19
(7,100,271)
(3,493,736)
Net current assets
5,280,133
8,143,559
Net assets
19,090,692
19,385,639
Capital and reserves
Called up share capital
22
600,000
600,000
Capital redemption reserve
150,000
150,000
Profit and loss reserves
18,340,692
18,635,639
Total equity
19,090,692
19,385,639

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £909,553 (2023 - £2,525,544 profit).

The financial statements were approved by the board of directors and authorised for issue on 18 November 2024 and are signed on its behalf by:
18 November 2024
R J Mulchand
Director
Company registration number 00741075 (England and Wales)
LALTEX & CO.LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 11 -
Share capital
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 March 2022
600,000
150,000
26,785,566
27,535,566
Year ended 28 February 2023:
Profit and total comprehensive income
-
-
6,155,429
6,155,429
Dividends
9
-
-
(1,080,540)
(1,080,540)
Balance at 28 February 2023
600,000
150,000
31,860,455
32,610,455
Year ended 29 February 2024:
Profit and total comprehensive income
-
-
4,852,978
4,852,978
Dividends
9
-
-
(1,204,500)
(1,204,500)
Balance at 29 February 2024
600,000
150,000
35,508,933
36,258,933
LALTEX & CO.LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 12 -
Share capital
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 March 2022
600,000
150,000
17,190,635
17,940,635
Year ended 28 February 2023:
Profit and total comprehensive income for the year
-
-
2,525,544
2,525,544
Dividends
9
-
-
(1,080,540)
(1,080,540)
Balance at 28 February 2023
600,000
150,000
18,635,639
19,385,639
Year ended 29 February 2024:
Profit and total comprehensive income
-
-
909,553
909,553
Dividends
9
-
-
(1,204,500)
(1,204,500)
Balance at 29 February 2024
600,000
150,000
18,340,692
19,090,692
LALTEX & CO.LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 13 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
26
11,870,719
5,122,095
Income taxes paid
(1,650,096)
(494,501)
Net cash inflow from operating activities
10,220,623
4,627,594
Investing activities
Proceeds from foreign exchange derivatives
34,806
(45,363)
Purchase of tangible fixed assets
(1,135,351)
(1,156,958)
Proceeds from disposal of tangible fixed assets
371,357
29,197
Purchase of investment property
(2,024,307)
-
Management of liquid resources
(145,348)
(109,007)
Interest received
417,135
81,487
Dividends received
106,191
92,362
(Loss)/Gain on disposal of current asset investments
(31,176)
23,181
Net cash used in investing activities
(2,406,693)
(1,085,101)
Financing activities
Proceeds from issue of preference shares
1,005,768
-
Repayment of borrowings
(3,097,705)
(2,057,918)
Interest paid
(359,563)
(198,524)
Dividends paid to equity shareholders
(1,080,540)
(880,246)
Net cash used in financing activities
(3,532,040)
(3,136,688)
Net increase in cash and cash equivalents
4,281,890
405,805
Cash and cash equivalents at beginning of year
10,734,534
10,328,729
Cash and cash equivalents at end of year
15,016,424
10,734,534
LALTEX & CO.LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 14 -
1
Accounting policies
Company information

Laltex & Co.Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Laltex House, Leigh Commerce Park, Leigh, Lancashire, WN7 3XH.

 

The group consists of Laltex & Co.Limited and all of its subsidiaries.

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.

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
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Laltex & Co.Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 29 February 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

LALTEX & CO.LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
1
Accounting policies
(Continued)
- 15 -
1.4
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group 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.

1.5
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, 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.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

1.6
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business 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 10 years.

 

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

1.7
Tangible fixed assets

Tangible fixed assets 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
2% Straight Line
Leasehold land and buildings
2% Straight Line
Plant and equipment
25% Straight Line
Fixtures and fittings
15% Straight Line
Motor vehicles
25% 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 profit and loss account.

1.8
Investment property

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.

LALTEX & CO.LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
1
Accounting policies
(Continued)
- 16 -
1.9
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

1.10
Impairment of fixed assets

At each reporting period end date, the group 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.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.11
Stocks

Stocks 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 stocks to their present location and condition.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.12
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

LALTEX & CO.LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
1
Accounting policies
(Continued)
- 17 -
1.13
Financial instruments

The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.

LALTEX & CO.LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
1
Accounting policies
(Continued)
- 18 -
Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.14
Equity instruments

Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.

1.15
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 profit and loss account 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 group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

LALTEX & CO.LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
1
Accounting policies
(Continued)
- 19 -
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 profit and loss account, 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 if, and only if, there is 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.

1.16
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.17
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

2
Judgements and key sources of estimation uncertainty

In the application of the group’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.

3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Sale of goods
51,117,668
47,077,400
LALTEX & CO.LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
3
Turnover and other revenue
(Continued)
- 20 -
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
47,953,081
44,952,681
Rest of Europe
3,076,729
2,065,019
Rest of World
87,858
59,700
51,117,668
47,077,400
2024
2023
£
£
Other revenue
Interest income
417,135
81,487
4
Operating profit
2024
2023
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange (gains)/losses
(223,321)
684,071
Depreciation of owned tangible fixed assets
697,027
599,775
Profit on disposal of tangible fixed assets
(84,205)
(8,664)
Amortisation of intangible assets
347,877
347,877
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
17,500
18,500
Audit of the financial statements of the company's subsidiaries
14,000
5,260
31,500
23,760
For other services
Audit-related assurance services
4,000
8,240
LALTEX & CO.LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 21 -
6
Employees

The average monthly number of persons (including directors) employed by the group and company during the year was:

Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
Management
63
66
40
38
Distribution and administration
159
128
44
43
Total
222
194
84
81

Their aggregate remuneration comprised:

Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
6,526,200
4,651,040
435,643
(15,205)
Social security costs
663,935
462,255
67,588
(3,299)
Pension costs
379,578
138,407
237,092
43,929
7,569,713
5,251,702
740,323
25,425
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
334,616
84,420
8
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
1,696,162
1,352,406
Adjustments in respect of prior periods
(75,698)
(132,830)
Total current tax
1,620,464
1,219,576
Deferred tax
Origination and reversal of timing differences
(18,263)
205,992
Total tax charge
1,602,201
1,425,568

Of the charge to current tax in relation to discontinued operations, £0 relates to tax on profits and £0 arose on disposal.

LALTEX & CO.LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
8
Taxation
(Continued)
- 22 -

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2024
2023
£
£
Profit before taxation
6,455,179
7,580,997
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
1,613,795
1,440,389
Tax effect of expenses that are not deductible in determining taxable profit
88,088
96,550
Tax effect of income not taxable in determining taxable profit
(47,220)
(17,549)
Adjustments in respect of prior years
(6,067)
(132,830)
Effect of change in corporation tax rate
(62,441)
49,438
Permanent capital allowances in excess of depreciation
(158,211)
(48,463)
Depreciation on assets not qualifying for tax allowances
174,257
38,033
Taxation charge
1,602,201
1,425,568
9
Dividends
2024
2023
Recognised as distributions to equity holders:
£
£
Final paid
1,204,500
1,080,540
10
Intangible fixed assets
Group
Goodwill
£
Cost
At 1 March 2023 and 29 February 2024
3,478,767
Amortisation and impairment
At 1 March 2023
1,130,601
Amortisation charged for the year
347,877
At 29 February 2024
1,478,478
Carrying amount
At 29 February 2024
2,000,289
At 28 February 2023
2,348,166
The company had no intangible fixed assets at 29 February 2024 or 28 February 2023.
LALTEX & CO.LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 23 -
11
Tangible fixed assets
Group
Freehold land and buildings
Leasehold land and buildings
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 March 2023
6,864,720
592,197
2,381,545
1,693,971
411,967
11,944,400
Additions
417,896
-
0
379,641
176,960
160,854
1,135,351
Disposals
-
0
-
0
(366,105)
-
0
(63,888)
(429,993)
At 29 February 2024
7,282,616
592,197
2,395,081
1,870,931
508,933
12,649,758
Depreciation and impairment
At 1 March 2023
1,406,052
71,264
1,198,069
1,499,160
168,342
4,342,887
Depreciation charged in the year
142,392
11,844
372,743
90,130
79,918
697,027
Eliminated in respect of disposals
-
0
-
0
(95,065)
-
0
(47,776)
(142,841)
At 29 February 2024
1,548,444
83,108
1,475,747
1,589,290
200,484
4,897,073
Carrying amount
At 29 February 2024
5,734,172
509,089
919,334
281,641
308,449
7,752,685
At 28 February 2023
5,458,668
520,933
1,183,476
194,811
243,625
7,601,513
LALTEX & CO.LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
11
Tangible fixed assets
(Continued)
- 24 -
Company
Freehold land and buildings
Leasehold land and buildings
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 March 2023
6,864,720
592,197
348,747
1,685,246
221,130
9,712,040
Additions
417,896
-
0
221,796
172,244
104,864
916,800
Disposals
-
0
-
0
(10,500)
-
0
(40,239)
(50,739)
At 29 February 2024
7,282,616
592,197
560,043
1,857,490
285,755
10,578,101
Depreciation and impairment
At 1 March 2023
1,406,052
71,264
218,663
1,496,988
105,243
3,298,210
Depreciation charged in the year
142,392
11,844
87,984
88,232
36,888
367,340
Eliminated in respect of disposals
-
0
-
0
(10,500)
-
0
(34,951)
(45,451)
At 29 February 2024
1,548,444
83,108
296,147
1,585,220
107,180
3,620,099
Carrying amount
At 29 February 2024
5,734,172
509,089
263,896
272,270
178,575
6,958,002
At 28 February 2023
5,458,668
520,933
130,084
188,258
115,887
6,413,830
12
Investment property
Group
Company
2024
2024
£
£
Fair value
At 1 March 2023
-
-
Additions through external acquisition
2,024,307
2,024,307
At 29 February 2024
2,024,307
2,024,307

The investment property relates to a building purchased during the year in Castleford, Yorkshire and it is leased out to a tenant in a lease arrangement. The property was purchased for £2,024,307 in the current year from an independent third party in an arms length transaction, and therefore no separate valuation was performed at year-end. In subsequent reporting periods, the value of the property will be measured at a fair value determined by an independent Chartered Surveyor, with movements recorded in profit or loss on the remeasurement date.

LALTEX & CO.LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 25 -
13
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
14
-
0
-
0
4,828,250
4,828,250
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 March 2023 and 29 February 2024
4,828,250
Carrying amount
At 29 February 2024
4,828,250
At 28 February 2023
4,828,250
14
Subsidiaries

Details of the company's subsidiaries at 29 February 2024 are as follows:

Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
KS Brands Limited
Laltex House Leigh Commerce Park Leigh Lancashire WN7 3XH
Import and distribution of a diversified range of consumer products
Ordinary
100.00
Lloytron Limited
As above
Import and distribution of a diversified range of consumer products
Ordinary
100.00
RJM International Limited
As above
Import and distribution of a diversified range of consumer products
Ordinary
100.00
The Printed Pen Company Limited
As above
Import and distribution of a diversified range of consumer products
Ordinary
100.00
Laltex Ireland Limited
As above
Import and distribution of a diversified range of consumer products into the Ireland market
Ordinary
100.00
LALTEX & CO.LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 26 -
15
Financial instruments
Group
Company
2024
2023
2024
2023
£
£
£
£
Carrying amount of financial assets
Instruments measured at fair value through profit or loss
3,021,077
2,831,714
3,021,077
2,831,714
Carrying amount of financial liabilities
Measured at fair value through profit or loss
- Other financial liabilities
19,208
54,013
3,812
42,653
16
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Finished goods and goods for resale
13,691,694
16,546,904
-
0
-
0
17
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
6,205,777
6,416,190
(5,811)
58,993
Corporation tax recoverable
17,976
-
0
-
0
83,031
Amounts owed by group undertakings
-
-
3,418,708
6,987,292
Other debtors
40,040
27,982
40,040
27,982
Prepayments and accrued income
3,531,147
219,511
3,399,732
1,114,323
9,794,940
6,663,683
6,852,669
8,271,621
Deferred tax asset (note 20)
182,381
164,118
326,639
400,175
9,977,321
6,827,801
7,179,308
8,671,796
18
Current asset investments
Group
Company
2024
2023
2024
2023
£
£
£
£
Listed investments, derivatives and cash
3,021,077
2,831,714
3,021,077
2,831,714
LALTEX & CO.LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 27 -
19
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Import loans
943,578
4,041,283
-
0
-
0
Preference shares
1,005,768
-
0
1,005,768
-
0
Trade creditors
3,434,587
3,846,057
423,722
140,445
Corporation tax payable
874,020
885,676
253,012
-
0
Other taxation and social security
1,154,628
1,110,353
53,898
48,441
Derivative financial instruments
19,208
54,013
3,812
42,653
Dividends payable
1,204,500
1,080,540
1,204,500
1,080,540
Other creditors
3,192,302
1,883,111
3,174,690
1,867,695
Accruals and deferred income
5,396,273
1,379,233
980,869
313,962
17,224,864
14,280,266
7,100,271
3,493,736
Import loans are secured by a general pledge over the underlying documents and an unlimited company guarantee given by Laltex & Co Limited.
Preference shares do not have a fixed repayment date, accrue interest at a fixed rate of 14% per annum on the issue price, and are repayable at any time at the discretion of the Company.
20
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

Assets
Assets
2024
2023
Group
£
£
Accelerated capital allowances
(637,326)
(627,608)
Tax losses
812,499
789,127
Short term timing differences
7,208
2,599
182,381
164,118
Assets
Assets
2024
2023
Company
£
£
Accelerated capital allowances
(480,813)
(390,140)
Tax losses
804,258
789,126
Short term timing differences
3,194
1,189
326,639
400,175
LALTEX & CO.LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
20
Deferred taxation
(Continued)
- 28 -
Group
Company
2024
2024
Movements in the year:
£
£
Asset at 1 March 2023
(164,118)
(400,175)
(Credit)/charge to profit or loss
(18,263)
73,536
Asset at 29 February 2024
(182,381)
(326,639)

The deferred tax asset in respect of losses carried forward relates to capital losses available for offset against future capital gains, the timing of which cannot be determined with reasonable certainty.

21
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
379,578
138,407

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

22
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary A Shares of £1 each
224,067
224,067
224,067
224,067
Ordinary B Shares of £1 each
150,000
150,000
150,000
150,000
Ordinary C Shares of £1 each
125,721
125,721
125,721
125,721
Ordinary D Shares of £1 each
88,212
88,212
88,212
88,212
Ordinary E Shares of £1 each
6,000
6,000
6,000
6,000
Ordinary F Shares of £1 each
6,000
6,000
6,000
6,000
600,000
600,000
600,000
600,000
23
Financial commitments, guarantees and contingent liabilities

The company has given an unlimited cross-guarantee to the group's bankers in respect of the present and future indebtedness of Laltex & Co Limited, Lloytron Limited, KS Brands Limited, The Printed Pen Company Limited and R.J.M International Limited. Present liabilities secured under this cross-guarantee, including bank loans, overdrafts, import loans and bills of exchange are disclosed within the financial statements of each company. In respect of future indebtedness the group's bankers have, in aggregate, provided a letter of credit of £597,497 (2023: £211,732) to R.J.M International Limited and Lloytron Limited.

 

 

 

LALTEX & CO.LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 29 -
24
Events after the reporting date

On 15 October 2024, the Board of Directors declared a dividend 14% per fully paid preference share, at a total cost of £82,556. This dividend was fully paid on 18 October 2024 and will be reflected in the financial statements of the next reporting period.

25
Related party transactions
Transactions with related parties

During the year, the group purchased goods for resale from a related party for £9,205,692 (2023: £8,672,342). At the year end, the group owed £ 2,836,734 (2023:£3,472,057) to the related party.

 

The amounts outstanding at the balance sheet date represent normal trade bills and do not include any substantial long term indebtedness.

 

At the year end the group owed £1,062,562 (2023: £1,852,469) to the directors of the group, the balances are included within other creditors due within one year. Interest is charged on the balance at a commercial rate agreed by the Board of Directors.

 

During the year, the group made a donation of £250,250 (2023: £nil) to a charity in which both of the directors of the company are trustees.

26
Cash generated from group operations
2024
2023
£
£
Profit for the year after tax
4,852,978
6,155,429
Adjustments for:
Taxation charged
1,602,201
1,425,568
Finance costs
359,563
198,534
Investment income
(417,135)
(81,487)
Gain on disposal of tangible fixed assets
(84,205)
(8,664)
(Gain)/Loss on foreign exchange derivatives
(34,806)
45,363
Loss/(Profit) on current asset investments
31,176
(23,181)
Income from fixed asset investments
(106,191)
(92,362)
Amortisation and impairment of intangible assets
347,877
347,877
Depreciation and impairment of tangible fixed assets
697,027
599,775
Other gains and losses
(44,015)
174,097
Movements in working capital:
Decrease/(increase) in stocks
2,855,210
(3,006,090)
Increase in debtors
(3,041,806)
(101,889)
Increase/(decrease) in creditors
4,852,845
(510,875)
Cash generated from operations
11,870,719
5,122,095
LALTEX & CO.LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 30 -
27
Cash generated from operations - company
2024
2023
£
£
Profit for the year after tax
909,553
2,525,544
Adjustments for:
Taxation charged
326,548
50,733
Finance costs
359,563
198,534
Investment income
(25,400)
(2,503,310)
Gain on disposal of tangible fixed assets
(20,505)
(4,970)
(Gain)/Loss on foreign exchange derivatives
(38,842)
34,892
Loss/(Profit) on current asset investments
31,176
(23,865)
Income from fixed asset investments
(106,191)
(92,362)
Depreciation and impairment of tangible fixed assets
367,340
301,218
Other gains and losses
(44,015)
174,097
Movements in working capital:
Decrease in stocks
-
218,590
Decrease in debtors
1,335,921
2,227,846
Increase in creditors
2,262,636
62,411
Cash generated from operations
5,357,784
3,169,358
28
Analysis of changes in net funds - group
1 March 2023
Cash flows
29 February 2024
£
£
£
Cash at bank and in hand
10,734,623
4,281,801
15,016,424
Borrowings excluding overdrafts
(4,041,283)
2,091,937
(1,949,346)
6,693,340
6,373,738
13,067,078
29
Analysis of changes in net funds - company
1 March 2023
Cash flows
29 February 2024
£
£
£
Cash at bank and in hand
133,785
2,046,234
2,180,019
Borrowings excluding overdrafts
-
(1,005,768)
(1,005,768)
133,785
1,040,466
1,174,251
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