REGISTERED NUMBER: 14183391 (England and Wales) |
E G LEWIS GROUP INVESTMENT SERVICES LTD |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED |
31 JANUARY 2024 |
REGISTERED NUMBER: 14183391 (England and Wales) |
E G LEWIS GROUP INVESTMENT SERVICES LTD |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED |
31 JANUARY 2024 |
E G LEWIS GROUP INVESTMENT SERVICES LTD (REGISTERED NUMBER: 14183391) |
CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 JANUARY 2024 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 3 |
Report of the Independent Auditors | 4 |
Consolidated Income Statement | 7 |
Consolidated Other Comprehensive Income | 8 |
Consolidated Balance Sheet | 9 |
Company Balance Sheet | 10 |
Consolidated Statement of Changes in Equity | 11 |
Company Statement of Changes in Equity | 12 |
Consolidated Cash Flow Statement | 13 |
Notes to the Consolidated Cash Flow Statement | 14 |
Notes to the Consolidated Financial Statements | 15 |
E G LEWIS GROUP INVESTMENT SERVICES LTD |
COMPANY INFORMATION |
FOR THE YEAR ENDED 31 JANUARY 2024 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Ground Floor Cardigan House |
Castle Court |
Swansea Enterprise Park |
Swansea |
SA7 9LA |
E G LEWIS GROUP INVESTMENT SERVICES LTD (REGISTERED NUMBER: 14183391) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 31 JANUARY 2024 |
The directors present their strategic report of the company and the group for the year ended 31 January 2024. |
REVIEW OF BUSINESS |
During the financial year, E G Lewis Group Investments Ltd achieved revenue of £10.6 million, driven by strong demand across our core markets. A gross profit margin of 41% was achieved, reflecting efficiency improvements and cost-control measures implemented during the year. |
Looking forward, we see significant opportunities in supporting industries transitioning to sustainable practices, such as the hire of energy-efficient equipment and green energy solutions. Additionally, the continued growth in infrastructure projects and construction activity offers strong demand for our services. Our strategy will focus on further expanding our fleet, investing in assets, and exploring new sectors where equipment hire is increasingly essential. |
ON BEHALF OF THE BOARD: |
E G LEWIS GROUP INVESTMENT SERVICES LTD (REGISTERED NUMBER: 14183391) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 JANUARY 2024 |
The directors present their report with the financial statements of the company and the group for the year ended 31 January 2024. |
DIVIDENDS |
No interim dividend was paid during the year. The directors recommend a final dividend of £60 per share. |
The total distribution of dividends for the year ended 31 January 2024 will be £ 6,000 . |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 February 2023 to the date of this report. |
Other changes in directors holding office are as follows: |
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 or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
AUDITORS |
The auditors, Bevan Buckland LLP (Statutory Auditors), 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 |
E G LEWIS GROUP INVESTMENT SERVICES LTD |
Opinion |
We have audited the financial statements of E G Lewis Group Investment Services Ltd (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 January 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 January 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. |
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. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
E G LEWIS GROUP INVESTMENT SERVICES LTD |
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. |
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: |
Extent to which the audit was considered capable of detecting irregularities, including fraud |
We identify and assess the risks of material misstatement of the Financial Statements, whether due to fraud or error, and then, design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion. |
We discussed our audit independence complying with the Revised Ethical Standard 2019 with the engagement team members whilst planning the audit and continually monitored our independence throughout the process. |
Identifying and assessing potential risks related to irregularities. |
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following: |
- | enquiring of management, including obtaining and reviewing supporting documentation, concerning the Company's policies and procedures relating to: |
- | identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance; |
- | detecting and responding to the risks of fraud and whether they have knowledge of any actual. suspected or alleged fraud; |
- | the internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations; |
- | discussing among the engagement team how and where fraud might occur in the Financial Statements and any potential indicators of fraud. As part of this discussion, we identified potential for fraud in the following areas; |
- | obtaining an understanding of the legal and regulatory frameworks that the Company operates in, focusing on those laws and regulations that had a direct effect on the Financial Statements or that had a fundamental effect on the operations of the Company, The key laws and regulations we considered in this context included the UK Companies Act and relevant tax legislation. |
Audit response to risks identified |
In addition to the above, our procedures to respond to risks identified included the following: |
- | reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with relevant laws and regulations; |
- | enquiring of management concerning actual and potential litigation and claims; performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud; |
- | reading minutes of meetings of those charged with governance and reviewing correspondence with HMRC; and |
- | in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; |
- | assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and |
- | evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business. |
We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit. |
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 |
E G LEWIS GROUP INVESTMENT SERVICES LTD |
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 |
Ground Floor Cardigan House |
Castle Court |
Swansea Enterprise Park |
Swansea |
SA7 9LA |
E G LEWIS GROUP INVESTMENT SERVICES LTD (REGISTERED NUMBER: 14183391) |
CONSOLIDATED |
INCOME STATEMENT |
FOR THE YEAR ENDED 31 JANUARY 2024 |
2024 | 2023 |
Notes | £ | £ |
TURNOVER | 3 | 10,748,475 | 6,593,234 |
Cost of sales | 6,445,240 | 3,866,446 |
GROSS PROFIT | 4,303,235 | 2,726,788 |
Administrative expenses | 1,364,670 | 4,108,162 |
2,938,565 | (1,381,374 | ) |
Other operating income | 20,421 | 6,607 |
OPERATING PROFIT/(LOSS) | 5 | 2,958,986 | (1,374,767 | ) |
Interest receivable and similar income | 26,769 | 505 |
2,985,755 | (1,374,262 | ) |
Interest payable and similar expenses | 6 | 85,461 | 26,320 |
PROFIT/(LOSS) BEFORE TAXATION | 2,900,294 | (1,400,582 | ) |
Tax on profit/(loss) | 7 | 993,462 | 372,686 |
PROFIT/(LOSS) FOR THE FINANCIAL YEAR | ( |
) |
Profit/(loss) attributable to: |
Owners of the parent | 1,906,832 | (1,773,268 | ) |
E G LEWIS GROUP INVESTMENT SERVICES LTD (REGISTERED NUMBER: 14183391) |
CONSOLIDATED |
OTHER COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 31 JANUARY 2024 |
2024 | 2023 |
Notes | £ | £ |
PROFIT/(LOSS) FOR THE YEAR | 1,906,832 | (1,773,268 | ) |
OTHER COMPREHENSIVE INCOME |
Increase in FV of Investment Property | 791,666 | - |
Income tax relating to other comprehensive income |
- |
- |
OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX |
791,666 |
- |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
2,698,498 |
(1,773,268 |
) |
Total comprehensive income attributable to: |
Owners of the parent | 2,698,498 | (1,773,268 | ) |
E G LEWIS GROUP INVESTMENT SERVICES LTD (REGISTERED NUMBER: 14183391) |
CONSOLIDATED BALANCE SHEET |
31 JANUARY 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 10 | 382,560 | 491,863 |
Tangible assets | 11 | 601,921 | 95,323 |
Investments | 12 | - | - |
Investment property | 13 | 3,505,000 | 2,713,334 |
4,489,481 | 3,300,520 |
CURRENT ASSETS |
Debtors | 14 | 950,585 | 1,047,950 |
Cash at bank | 1,722,456 | 1,508,769 |
2,673,041 | 2,556,719 |
CREDITORS |
Amounts falling due within one year | 15 | 2,698,549 | 3,808,863 |
NET CURRENT LIABILITIES | (25,508 | ) | (1,252,144 | ) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
4,463,973 |
2,048,376 |
CREDITORS |
Amounts falling due after more than one year |
16 |
(460,638 |
) |
(1,029,301 |
) |
PROVISIONS FOR LIABILITIES | 19 | (453,287 | ) | (161,330 | ) |
ACCRUALS AND DEFERRED INCOME | 20 | (7,438 | ) | (7,633 | ) |
NET ASSETS | 3,542,610 | 850,112 |
CAPITAL AND RESERVES |
Called up share capital | 21 | 100 | 100 |
Revaluation reserve | 22 | 1,752,631 | 960,965 |
Retained earnings | 22 | 1,789,879 | (110,953 | ) |
SHAREHOLDERS' FUNDS | 3,542,610 | 850,112 |
The financial statements were approved by the Board of Directors and authorised for issue on 29 October 2024 and were signed on its behalf by: |
T F Lewis - Director |
E G LEWIS GROUP INVESTMENT SERVICES LTD (REGISTERED NUMBER: 14183391) |
COMPANY BALANCE SHEET |
31 JANUARY 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 10 |
Tangible assets | 11 |
Investments | 12 |
Investment property | 13 |
CURRENT ASSETS |
Debtors | 14 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 15 |
NET CURRENT ASSETS/(LIABILITIES) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
16 |
NET ASSETS/(LIABILITIES) | ( |
) |
CAPITAL AND RESERVES |
Called up share capital | 21 |
Retained earnings | ( |
) |
SHAREHOLDERS' FUNDS | ( |
) |
Company's profit/(loss) for the financial year | 3,970,041 | (180 | ) |
The financial statements were approved by the Board of Directors and authorised for issue on |
E G LEWIS GROUP INVESTMENT SERVICES LTD (REGISTERED NUMBER: 14183391) |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 JANUARY 2024 |
Called up |
share | Retained | Revaluation | Total |
capital | earnings | reserve | equity |
£ | £ | £ | £ |
Balance at 1 February 2022 | 1,000 | 3,219,773 | 960,965 | 4,181,738 |
Changes in equity |
Issue of share capital | (900 | ) | - | - | (900 | ) |
Dividends | - | (1,557,458 | ) | - | (1,557,458 | ) |
Total comprehensive income | - | (1,773,268 | ) | - | (1,773,268 | ) |
Balance at 31 January 2023 | 100 | (110,953 | ) | 960,965 | 850,112 |
Changes in equity |
Dividends | - | (6,000 | ) | - | (6,000 | ) |
Total comprehensive income | - | 1,906,832 | 791,666 | 2,698,498 |
Balance at 31 January 2024 | 100 | 1,789,879 | 1,752,631 | 3,542,610 |
E G LEWIS GROUP INVESTMENT SERVICES LTD (REGISTERED NUMBER: 14183391) |
COMPANY STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 JANUARY 2024 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Changes in equity |
Issue of share capital | - |
Total comprehensive income | - | ( |
) | ( |
) |
Balance at 31 January 2023 | ( |
) | ( |
) |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 31 January 2024 |
E G LEWIS GROUP INVESTMENT SERVICES LTD (REGISTERED NUMBER: 14183391) |
CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 JANUARY 2024 |
2024 | 2023 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 2,019,105 | 405,911 |
Interest paid | (85,461 | ) | (26,320 | ) |
Tax paid | (372,686 | ) | (86,240 | ) |
Net cash from operating activities | 1,560,958 | 293,351 |
Cash flows from investing activities |
Purchase of intangible fixed assets | - | (546,515 | ) |
Purchase of tangible fixed assets | (767,375 | ) | (103,599 | ) |
Purchase of investment property | - | (464,000 | ) |
Sale of tangible fixed assets | 103,500 | - |
Interest received | 26,769 | 505 |
Net cash from investing activities | (637,106 | ) | (1,113,609 | ) |
Cash flows from financing activities |
New loans in year | - | 5,300,000 |
Loan repayments in year | (704,165 | ) | (1,748,936 | ) |
Amount introduced by directors | 30,000 | 269,500 |
Amount withdrawn by directors | (30,000 | ) | - |
Share issue | - | (900 | ) |
Acquisition of Subsidiary | - | (4,400,000 | ) |
Cash Acquired on Acquisition | - | 1,508,769 |
Equity dividends paid | (6,000 | ) | (1,557,458 | ) |
Net cash from financing activities | (710,165 | ) | (629,025 | ) |
Increase/(decrease) in cash and cash equivalents | 213,687 | (1,449,283 | ) |
Cash and cash equivalents at beginning of year |
2 |
1,508,769 |
2,958,052 |
Cash and cash equivalents at end of year | 2 | 1,722,456 | 1,508,769 |
E G LEWIS GROUP INVESTMENT SERVICES LTD (REGISTERED NUMBER: 14183391) |
NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 JANUARY 2024 |
1. | RECONCILIATION OF PROFIT/(LOSS) BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2024 | 2023 |
£ | £ |
Profit/(loss) before taxation | 2,900,294 | (1,400,582 | ) |
Depreciation charges | 167,163 | 24,147 |
Profit on disposal of fixed assets | (9,886 | ) | - |
Amortisation of Goodwill | 109,303 | 54,642 |
Finance costs | 85,461 | 26,320 |
Finance income | (26,769 | ) | (505 | ) |
3,225,566 | (1,295,978 | ) |
Decrease/(increase) in trade and other debtors | 169,365 | (1,035,154 | ) |
(Decrease)/increase in trade and other creditors | (1,375,826 | ) | 2,737,043 |
Cash generated from operations | 2,019,105 | 405,911 |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 31 January 2024 |
31.1.24 | 1.2.23 |
£ | £ |
Cash and cash equivalents | 1,722,456 | 1,508,769 |
Year ended 31 January 2023 |
31.1.23 | 1.2.22 |
£ | £ |
Cash and cash equivalents | 1,508,769 | 2,958,052 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1.2.23 | Cash flow | At 31.1.24 |
£ | £ | £ |
Net cash |
Cash at bank | 1,508,769 | (2,594,159 | ) | 1,722,456 |
1,508,769 | (2,594,159 | ) | 1,722,456 |
Debt |
Debts falling due |
within 1 year | (299,821 | ) | 173,984 | (125,837 | ) |
Debts falling due |
after 1 year | (1,029,301 | ) | 568,663 | (460,638 | ) |
(1,329,122 | ) | 742,647 | (586,475 | ) |
Total | 179,647 | (1,851,512 | ) | 1,135,981 |
E G LEWIS GROUP INVESTMENT SERVICES LTD (REGISTERED NUMBER: 14183391) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 JANUARY 2024 |
1. | STATUTORY INFORMATION |
E G Lewis Group Investment Services Ltd is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Related party exemption |
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements. |
Turnover |
Turnover from the sale of goods is recognised in the profit and loss account when significant risks and rewards of ownership have been transferred to the buyer. No turnover is recognised if there are significant uncertainties regarding recovery of the consideration due to associated costs, or there is the possibility of return of the goods. Turnover represents the sale of goods/revenue from contracts, excluding tax. |
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 | - |
Motor vehicles | - |
A fixed asset is derecognised upon disposal or when no future economic benefits are expected to arise from the continued use of the asset. The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to the income statement. |
Impairment of fixed assets |
At each reporting date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). |
Recoverable amount is the higher of fair value less costs to sell and value in use. |
If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss. |
Investment property |
Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in profit or loss. |
E G LEWIS GROUP INVESTMENT SERVICES LTD (REGISTERED NUMBER: 14183391) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 JANUARY 2024 |
2. | ACCOUNTING POLICIES - continued |
Financial instruments |
The company 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 company's statement of financial position when the company becomes party to the contractual provisions of the instrument. |
Financial assets and liabilities are offset, with 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 trade and other receivables 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. |
Basic financial liabilities |
Basic financial liabilities, including trade and other payables, bank loans, loans from fellow group companies are initially recognised at transaction price unless the measurement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. |
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. |
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. |
The company operates defined contribution pension schemes. Contributions payable to the company's pension schemes are charged to profit or loss in the period in which they relate. |
Employee Benefits |
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recongised as part of the cost of stock or fixed assets. |
The costs of any unused holiday entitlement is recognised in the period in which the employee's services are received. |
E G LEWIS GROUP INVESTMENT SERVICES LTD (REGISTERED NUMBER: 14183391) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 JANUARY 2024 |
2. | ACCOUNTING POLICIES - continued |
Trade debtors |
Trade debtors are amounts due from customers for services performed in the ordinary course of business. |
Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provisions for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables. |
Cash and cash equivalents |
Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account. |
Creditors |
Short term creditors are measured at the transaction price. Bank loans are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method. |
3. | TURNOVER |
The turnover and profit (2023 - loss) before taxation are attributable to the one principal activity of the group. |
An analysis of turnover by geographical market is given below: |
2024 | 2023 |
£ | £ |
United Kingdom | 10,748,475 | 6,593,234 |
10,748,475 | 6,593,234 |
4. | EMPLOYEES AND DIRECTORS |
2024 | 2023 |
£ | £ |
Wages and salaries | 5,430,243 | 3,891,975 |
Social security costs | 597,978 | 420,225 |
Other pension costs | 134,063 | 114,929 |
6,162,284 | 4,427,129 |
The average number of employees during the year was as follows: |
2024 | 2023 |
Admin |
The average number of employees by undertakings that were proportionately consolidated during the year was 119 (2023 - 77 ) . |
2024 | 2023 |
£ | £ |
Directors' remuneration | 149,570 | 65,736 |
5. | OPERATING PROFIT/(LOSS) |
The operating profit (2023 - operating loss) is stated after charging/(crediting): |
2024 | 2023 |
£ | £ |
Depreciation - owned assets | 167,163 | 24,137 |
Profit on disposal of fixed assets | (9,886 | ) | - |
Goodwill amortisation | 109,303 | 54,652 |
Auditors' remuneration | 24,000 | - |
E G LEWIS GROUP INVESTMENT SERVICES LTD (REGISTERED NUMBER: 14183391) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 JANUARY 2024 |
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2024 | 2023 |
£ | £ |
Bank loan interest | 61,616 | 26,320 |
Other Loan Interest | 23,845 | - |
85,461 | 26,320 |
7. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2024 | 2023 |
£ | £ |
Current tax: |
UK corporation tax | 701,505 | 372,686 |
Deferred tax | 291,957 | - |
Tax on profit/(loss) | 993,462 | 372,686 |
Tax effects relating to effects of other comprehensive income |
2024 |
Gross | Tax | Net |
£ | £ | £ |
Increase in FV of Investment Property | 791,666 | - | 791,666 |
8. | 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. |
9. | DIVIDENDS |
2024 | 2023 |
£ | £ |
Ordinary shares of £1 each |
Final | 6,000 | 162,458 |
Interim | - | 1,395,000 |
6,000 | 1,557,458 |
10. | INTANGIBLE FIXED ASSETS |
Group |
Goodwill |
£ |
COST |
At 1 February 2023 |
and 31 January 2024 | 546,515 |
AMORTISATION |
At 1 February 2023 | 54,652 |
Amortisation for year | 109,303 |
At 31 January 2024 | 163,955 |
NET BOOK VALUE |
At 31 January 2024 | 382,560 |
At 31 January 2023 | 491,863 |
E G LEWIS GROUP INVESTMENT SERVICES LTD (REGISTERED NUMBER: 14183391) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 JANUARY 2024 |
11. | TANGIBLE FIXED ASSETS |
Group |
Improvements |
to | Motor |
property | vehicles | Totals |
£ | £ | £ |
COST |
At 1 February 2023 | 19,785 | 103,599 | 123,384 |
Additions | - | 767,375 | 767,375 |
Disposals | - | (121,226 | ) | (121,226 | ) |
At 31 January 2024 | 19,785 | 749,748 | 769,533 |
DEPRECIATION |
At 1 February 2023 | 4,320 | 23,741 | 28,061 |
Charge for year | 395 | 166,768 | 167,163 |
Eliminated on disposal | - | (27,612 | ) | (27,612 | ) |
At 31 January 2024 | 4,715 | 162,897 | 167,612 |
NET BOOK VALUE |
At 31 January 2024 | 15,070 | 586,851 | 601,921 |
At 31 January 2023 | 15,465 | 79,858 | 95,323 |
12. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1 February 2023 |
and 31 January 2024 |
NET BOOK VALUE |
At 31 January 2024 |
At 31 January 2023 |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiaries |
E G Lewis Group Hire Services Ltd |
Registered office: Tank Farm Road, Llandarcy, Neath, West Glamorgan, SA10 6EN |
Nature of business: Hire of Plant & Machinery |
% |
Class of shares: | holding |
Ordinary | 100.00 |
2024 | 2023 |
£ | £ |
Aggregate capital and reserves | 236,755 | 100 |
Profit for the year | 236,655 | - |
E G LEWIS GROUP INVESTMENT SERVICES LTD (REGISTERED NUMBER: 14183391) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 JANUARY 2024 |
12. | FIXED ASSET INVESTMENTS - continued |
E G Lewis Developments |
Registered office: Tank Farm Road, Llandarcy, Neath, West Glamorgan, SA10 6EN |
Nature of business: Letting & Operating of own or leased real estate |
% |
Class of shares: | holding |
Ordinary | 100.00 |
2024 | 2023 |
£ | £ |
Aggregate capital and reserves | 2,831,521 | 4,019,648 |
Profit for the year | 2,020,207 | 1,395,368 |
13. | INVESTMENT PROPERTY |
Group |
Total |
£ |
FAIR VALUE |
At 1 February 2023 | 2,713,334 |
Revaluations | 791,666 |
At 31 January 2024 | 3,505,000 |
NET BOOK VALUE |
At 31 January 2024 | 3,505,000 |
At 31 January 2023 | 2,713,334 |
Fair value at 31 January 2024 is represented by: |
£ |
Valuation in 2011 | 960,565 |
Valuation in 2024 | 791,666 |
Cost | 1,752,769 |
3,505,000 |
14. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Amounts owed by group undertakings | - | - |
Amounts owed by participating interests | 424,212 | 866,696 | - | - |
Amounts owed by joint ventures | 5,538 | - |
Amounts owed by associates | 485,499 | 171,000 |
Other debtors | 22,422 | 227 |
Called up share capital not paid | - | 100 |
Prepayments and accrued income | 12,914 | 9,927 |
950,585 | 1,047,950 |
E G LEWIS GROUP INVESTMENT SERVICES LTD (REGISTERED NUMBER: 14183391) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 JANUARY 2024 |
15. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Bank loans and overdrafts (see note 17) | 125,837 | 108,149 |
Other loans (see note 17) | - | 191,672 |
Trade creditors | 7,975 | - |
Amounts owed to group undertakings | - | - |
Amounts owed to participating interests | 460,380 | 1,965,923 | - | - |
Amounts owed to joint ventures | - | 198,800 | - | - |
Amounts owed to associates | 181,974 | - | - | - |
Tax | 701,505 | 372,686 |
Social security and other taxes | 142,132 | 132,192 |
VAT | 698,230 | 581,543 | - | - |
Other Creditors | 155,555 | 85,662 | ( |
) |
Directors' current accounts | 30,000 | 30,000 | 30,000 | 30,000 |
Accruals and deferred income | 6,000 | - |
Accrued expenses | 188,961 | 142,236 |
2,698,549 | 3,808,863 |
16. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Bank loans (see note 17) | 460,638 | 516,808 |
Other loans (see note 17) | - | 512,493 |
460,638 | 1,029,301 |
17. | LOANS |
An analysis of the maturity of loans is given below: |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Amounts falling due within one year or on | demand: |
Bank loans | 125,837 | 108,149 |
Other loans | - | 191,672 |
125,837 | 299,821 |
Amounts falling due between one and two | years: |
Other loans - 1-2 years | - | 191,672 | - |
Amounts falling due between two and five | years: |
Bank loans more than 1 year | 460,638 | 516,808 |
Other loans - 2-5 years | - | 320,821 |
460,638 | 837,629 |
E G LEWIS GROUP INVESTMENT SERVICES LTD (REGISTERED NUMBER: 14183391) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 JANUARY 2024 |
18. | SECURED DEBTS |
The following secured debts are included within creditors: |
Group |
2024 | 2023 |
£ | £ |
Bank loans | 586,475 | - |
The group's banker Lloyds Bank PLC holds the following security: - |
A Fixed charge, floating charge and negative pledge dated 11/08/22 over land and freehold properties. |
19. | PROVISIONS FOR LIABILITIES |
Group |
2024 | 2023 |
£ | £ |
Deferred tax | 453,287 | 161,330 |
Group |
Deferred |
tax |
£ |
Balance at 1 February 2023 | 161,330 |
Charge to Income Statement during year | 291,957 |
Balance at 31 January 2024 | 453,287 |
20. | ACCRUALS AND DEFERRED INCOME |
Group |
2024 | 2023 |
£ | £ |
Accruals and deferred income | 7,438 | 7,633 |
21. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2024 | 2023 |
value: | £ | £ |
Ordinary | £1 | 100 | 100 |
22. | RESERVES |
Group |
Retained | Revaluation |
earnings | reserve | Totals |
£ | £ | £ |
At 1 February 2023 | (110,953 | ) | 960,965 | 850,012 |
Profit for the year | 1,906,832 | 1,906,832 |
Dividends | (6,000 | ) | (6,000 | ) |
Revaluation of Fixed Assets | - | 791,666 | 791,666 |
At 31 January 2024 | 1,789,879 | 1,752,631 | 3,542,510 |
E G LEWIS GROUP INVESTMENT SERVICES LTD (REGISTERED NUMBER: 14183391) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 JANUARY 2024 |
23. | RELATED PARTY DISCLOSURES |
Entities with control, joint control or significant influence over the entity |
2024 | 2023 |
£ | £ |
Sales | 10,538,330 | 4,240,271 |
Purchases | 392,843 | 4,323 |
24. | ULTIMATE CONTROLLING PARTY |
The Directors consider that there is no ultimate controlling party, as no individual, entity, or group has control over the company as defined by Section 33 of FRS 102 (Related Party Disclosures). Control is defined as the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities, and no one party meets these criteria. |