Paton & Lee Ltd 09570337 false 2023-08-01 2024-07-31 2024-07-31 The principal activity of the company is the provision of veterinary services. Digita Accounts Production Advanced 6.30.9574.0 true true 09570337 2023-08-01 2024-07-31 09570337 2024-07-31 09570337 core:AcceleratedTaxDepreciationDeferredTax 2024-07-31 09570337 core:OtherDeferredTax 2024-07-31 09570337 core:HirePurchaseContracts core:CurrentFinancialInstruments 2024-07-31 09570337 core:HirePurchaseContracts core:Non-currentFinancialInstruments 2024-07-31 09570337 core:CurrentFinancialInstruments 2024-07-31 09570337 core:CurrentFinancialInstruments core:WithinOneYear 2024-07-31 09570337 core:Non-currentFinancialInstruments core:AfterOneYear 2024-07-31 09570337 core:Goodwill 2024-07-31 09570337 core:ConstructionInProgressAssetsUnderConstruction 2024-07-31 09570337 core:FurnitureFittingsToolsEquipment 2024-07-31 09570337 core:LandBuildings 2024-07-31 09570337 core:MotorVehicles 2024-07-31 09570337 core:OtherPropertyPlantEquipment 2024-07-31 09570337 bus:SmallEntities 2023-08-01 2024-07-31 09570337 bus:AuditExemptWithAccountantsReport 2023-08-01 2024-07-31 09570337 bus:FilletedAccounts 2023-08-01 2024-07-31 09570337 bus:SmallCompaniesRegimeForAccounts 2023-08-01 2024-07-31 09570337 bus:RegisteredOffice 2023-08-01 2024-07-31 09570337 bus:Director1 2023-08-01 2024-07-31 09570337 bus:Director2 2023-08-01 2024-07-31 09570337 bus:Director3 2023-08-01 2024-07-31 09570337 bus:Director4 2023-08-01 2024-07-31 09570337 bus:Director5 2023-08-01 2024-07-31 09570337 bus:Director6 2023-08-01 2024-07-31 09570337 bus:Director7 2023-08-01 2024-07-31 09570337 bus:Director8 2023-08-01 2024-07-31 09570337 bus:PrivateLimitedCompanyLtd 2023-08-01 2024-07-31 09570337 core:Goodwill 2023-08-01 2024-07-31 09570337 core:ConstructionInProgressAssetsUnderConstruction 2023-08-01 2024-07-31 09570337 core:FurnitureFittings 2023-08-01 2024-07-31 09570337 core:FurnitureFittingsToolsEquipment 2023-08-01 2024-07-31 09570337 core:LandBuildings 2023-08-01 2024-07-31 09570337 core:MotorVehicles 2023-08-01 2024-07-31 09570337 core:OfficeEquipment 2023-08-01 2024-07-31 09570337 core:OtherPropertyPlantEquipment 2023-08-01 2024-07-31 09570337 core:PlantMachinery 2023-08-01 2024-07-31 09570337 core:Vehicles 2023-08-01 2024-07-31 09570337 5 2023-08-01 2024-07-31 09570337 countries:EnglandWales 2023-08-01 2024-07-31 09570337 2023-07-31 09570337 core:Goodwill 2023-07-31 09570337 core:ConstructionInProgressAssetsUnderConstruction 2023-07-31 09570337 core:FurnitureFittingsToolsEquipment 2023-07-31 09570337 core:LandBuildings 2023-07-31 09570337 core:MotorVehicles 2023-07-31 09570337 core:OtherPropertyPlantEquipment 2023-07-31 09570337 2022-08-01 2023-07-31 09570337 2023-07-31 09570337 core:AcceleratedTaxDepreciationDeferredTax 2023-07-31 09570337 core:OtherDeferredTax 2023-07-31 09570337 core:HirePurchaseContracts core:CurrentFinancialInstruments 2023-07-31 09570337 core:HirePurchaseContracts core:Non-currentFinancialInstruments 2023-07-31 09570337 core:CurrentFinancialInstruments 2023-07-31 09570337 core:CurrentFinancialInstruments core:WithinOneYear 2023-07-31 09570337 core:Non-currentFinancialInstruments core:AfterOneYear 2023-07-31 09570337 core:Goodwill 2023-07-31 09570337 core:ConstructionInProgressAssetsUnderConstruction 2023-07-31 09570337 core:FurnitureFittingsToolsEquipment 2023-07-31 09570337 core:LandBuildings 2023-07-31 09570337 core:MotorVehicles 2023-07-31 09570337 core:OtherPropertyPlantEquipment 2023-07-31 iso4217:GBP xbrli:pure

Registration number: 09570337

Prepared for the registrar

Paton & Lee Ltd

Annual Report and Unaudited Financial Statements

for the Year Ended 31 July 2024

 

Paton & Lee Ltd

Contents

Company Information

1

Balance Sheet

2 to 3

Notes to the Financial Statements

4 to 11

 

Paton & Lee Ltd

Company Information

Directors

J C Lee

A N Lock

B J Portus

C Lee

D Lock

G Portus

S Harrington

L M Harrington

Registered office

Paton & Lee
Hoo Hall Oak Road
Rivenhall
Witham
Essex
CM8 3HG

Accountants

Hazlewoods LLP
Staverton Court
Staverton
Cheltenham
GL51 0UX

 

Paton & Lee Ltd

(Registration number: 09570337)
Balance Sheet as at 31 July 2024

Note

2024
£

2023
£

Fixed assets

 

Intangible assets

4

18,850

20,590

Tangible assets

5

404,921

375,041

 

423,771

395,631

Current assets

 

Stocks

65,528

38,059

Debtors

6

313,850

293,417

Cash at bank and in hand

 

69,439

76,700

 

448,817

408,176

Creditors: Amounts falling due within one year

7

(761,981)

(640,150)

Net current liabilities

 

(313,164)

(231,974)

Total assets less current liabilities

 

110,607

163,657

Creditors: Amounts falling due after more than one year

7

(11,389)

(16,970)

Deferred tax liabilities

9

(57,813)

(58,616)

Net assets

 

41,405

88,071

Capital and reserves

 

Called up share capital

150

150

Retained earnings

41,255

87,921

Shareholders' funds

 

41,405

88,071

For the financial year ending 31 July 2024 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476; and

The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime. As permitted by section 444 (5A) of the Companies Act 2006, the directors have not delivered to the registrar a copy of the Profit and Loss Account.

 

Paton & Lee Ltd

(Registration number: 09570337)
Balance Sheet as at 31 July 2024

Approved and authorised by the Board on 12 December 2024 and signed on its behalf by:
 


J C Lee
Director


A N Lock
Director


B J Portus
Director


S Harrington
Director

 

Paton & Lee Ltd

Notes to the Financial Statements for the Year Ended 31 July 2024

 

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
Paton & Lee
Hoo Hall Oak Road
Rivenhall
Witham
Essex
CM8 3HG

 

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A smaller entities - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006 (as applicable to companies subject to the small companies' regime).

Basis of preparation

These financial statements have been prepared using the historical cost convention except for, where disclosed in these accounting policies, certain items that are shown at fair value.

The presentational currency of the financial statements is Pounds Sterling, being the functional currency of the primary economic environment in which the company operates. Monetary amounts in these financial statements are rounded to the nearest Pound.

Going concern

After reviewing the company's current forecasts and projections, together with the facilities available to the company, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The company therefore continues to adopt the going concern basis in preparing its financial statements.

Critical accounting judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amounts 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
 

Judgements

No significant judgements have been made by management in preparing these financial statements.

 

Paton & Lee Ltd

Notes to the Financial Statements for the Year Ended 31 July 2024

Key sources of estimation uncertainty

No key sources of estimation uncertainty have been identified by management in preparing these financial statements other than those detailed in these accounting policies.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts and after eliminating sales within the company.

The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in the profit and loss account, except that a charge attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Deferred income tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements and on unused tax losses or tax credits in the company. Deferred income tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.

Tangible assets

Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Leasehold land and buildings

Over the length of the lease

Plant and Machinery

15% of written down value

Fixtures and Fittings

10% of written down value

Motor Vehicles

25% of written down value

Office Equipment

33.33% of cost

Intangible assets

Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the company’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each reporting period date.

 

Paton & Lee Ltd

Notes to the Financial Statements for the Year Ended 31 July 2024

Amortisation

Amortisation is provided on intangible fixed assets so as to write off the cost, less any estimated residual value, over their useful life as follows:

Asset class

Amortisation method and rate

Goodwill

Over 20 years

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. All trade debtors are repayable within one year and hence are included at the undiscounted cost of cash expected to be received. 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 debtors.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and all are repayable within one year and hence are included at the undiscounted amount of cash expected to be paid.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.

Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the balance sheet as a finance lease obligation.

Lease payments are apportioned between finance costs in the profit and loss account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

 

Paton & Lee Ltd

Notes to the Financial Statements for the Year Ended 31 July 2024

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Dividends

Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

Financial instruments


Classification
Financial instruments are classified and accounted for according to the substance of the contractual arrangement, as financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. Where shares are issued, any component that creates a financial liability of the company is presented as a liability on the balance sheet. The corresponding dividends relating to the liability component are charged as interest expenses in the profit and loss account.

 Recognition and measurement
All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

 Impairment
Assets, other than those measured at fair value, are assessed for indicators of impairment at each balance sheet date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss as described below.

A non financial asset is impaired where there is objective evidence that, as a result of one or more events that occurred after initial recognition, the estimated recoverable value of the asset has been reduced. The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use.

 

3

Staff numbers

The average number of persons employed by the company (including directors) during the year, was as follows:

 

Paton & Lee Ltd

Notes to the Financial Statements for the Year Ended 31 July 2024

 

4

Intangible assets

Goodwill
 £

Total
£

Cost

At 1 August 2023

34,800

34,800

At 31 July 2024

34,800

34,800

Amortisation

At 1 August 2023

14,210

14,210

Amortisation charge

1,740

1,740

At 31 July 2024

15,950

15,950

Carrying amount

At 31 July 2024

18,850

18,850

At 31 July 2023

20,590

20,590

 

Paton & Lee Ltd

Notes to the Financial Statements for the Year Ended 31 July 2024

 

5

Tangible assets

Leasehold land and buildings
£

Plant and machinery
 £

Fixtures and fittings
 £

Motor vehicles
 £

Office equipment
 £

Total
£

Cost

At 1 August 2023

182,702

384,375

42,832

55,337

26,722

691,968

Additions

46,553

30,656

412

-

12,710

90,331

Disposals

(2,280)

-

-

-

-

(2,280)

At 31 July 2024

226,975

415,031

43,244

55,337

39,432

780,019

Depreciation

At 1 August 2023

52,861

196,019

21,078

24,442

22,527

316,927

Charge for the year

12,955

30,301

2,216

7,723

4,976

58,171

At 31 July 2024

65,816

226,320

23,294

32,165

27,503

375,098

Carrying amount

At 31 July 2024

161,159

188,711

19,950

23,172

11,929

404,921

At 31 July 2023

129,841

188,356

21,754

30,895

4,195

375,041

 

Paton & Lee Ltd

Notes to the Financial Statements for the Year Ended 31 July 2024

 

6

Debtors

2024
£

2023
£

Trade debtors

230,546

234,140

Prepayments

58,080

44,240

Other debtors

25,224

15,037

313,850

293,417

 

7

Creditors

Note

2024
£

2023
£

Due within one year

 

Loans and borrowings

8

374,156

307,588

Trade creditors

 

127,433

112,575

Taxation and social security

 

224,542

187,065

Accruals and deferred income

 

27,301

23,225

Other creditors

 

8,549

9,697

 

761,981

640,150

 

8

Loans and borrowings

Current loans and borrowings

2024
£

2023
£

Hire purchase contracts

17,180

17,250

Other borrowings

356,976

290,338

374,156

307,588

Non-current loans and borrowings

2024
£

2023
£

Hire purchase contracts

11,389

16,970

 

Paton & Lee Ltd

Notes to the Financial Statements for the Year Ended 31 July 2024

 

9

Deferred tax

Deferred tax assets and liabilities

2024

Liability
£

Difference between accumulated depreciation and amortisation and capital allowances

58,179

Short term timing differences

(366)

57,813

2023

Liability
£

Difference between accumulated depreciation and amortisation and capital allowances

58,870

Short term timing differences

(254)

58,616

 

10

Share capital

Allotted, called up and fully paid shares

 

2024

2023

 

No.

£

No.

£

Ordinary A shares of £1 each

35

35

35

35

Ordinary B shares of £1 each

35

35

35

35

Ordinary C shares of £1 each

35

35

35

35

Ordinary D shares of £1 each

45

45

45

45

 

150

150

150

150

The different classes of share referred to above carry separate rights to dividends but, in all other significant respects, rank pari passu.

 

11

Related party transactions

At the period end the directors were owed the following amounts from the company: A N Lock: £88,818 (2023 - £67,199), B J Portus: £84,785 (2023 - £65,744), J C Lee: £74,786 (2023 - £53,706) and S Harrington: £108,587 (2023 - £103,689). These amounts are shown in loans and borrowings. There are no repayment terms.