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Leviathan Newco 2 Limited

Annual Report and Consolidated Financial Statements
Year Ended 30 April 2024

Registration number: 14240763

 

Leviathan Newco 2 Limited

Contents

Company Information

1

Directors' Report

2

Statement of Directors' Responsibilities

3

Independent Auditor's Report

4 to 7

Consolidated Profit and Loss Account

8

Consolidated Balance Sheet

9 to 10

Balance Sheet

11

Consolidated Statement of Changes in Equity

12

Statement of Changes in Equity

13

Notes to the Financial Statements

14 to 26

 

Leviathan Newco 2 Limited

Company Information

Directors

G T M Karlsson

D S Sneddon

A J Warren

Company secretary

D S Sneddon

Registered office

28 Speed House
Barbican
London
EC2Y 8AT

Auditors

PKF Francis Clark
Statutory Auditor
Ground Floor
90 Victoria Street
Bristol
BS1 6DP

 

Leviathan Newco 2 Limited

Directors' Report

Year Ended 30 April 2024

The directors present their report and the for the year ended 30 April 2024.

Principal activity

The principal activity of the group is that of a holding company. The principal activity of the group is the provision of precision engineering services.

Directors of the group

The directors who held office during the year were as follows:

G T M Karlsson

D S Sneddon - Company secretary and director

A J Warren

Results and dividends
The loss for the period, after taxation, amounted to £254,137. There were no dividends declared in the period.

Going concern

The directors consider the prospects of the Group to be strong for the next 12 months with a growing order book and strengthening relationships with key customers. Improvement actions and synergies within the Leviathan Engineering Group further underpin this confidence.

There were breaches in the loan covenants during the year, this allowed the loan provider to monitor results closely, and since the year end a new refinancing agreement has been entered into with the loan provider. Hence highlighting the support the Group still has from the funder.

Consequently, the directors are confident that the Group will have sufficient funds to continue to meet its liabilities as they fall due for at least 12 months from the date of approval of the financial statements and therefore have prepared the financial statements on a going concern basis.

Disclosure of information to the auditor

Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditor is unaware.

Small companies provision statement
This report has 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.

Approved and authorised by the Board on 24 January 2025 and signed on its behalf by:
 

.........................................
D S Sneddon
Company secretary and director

 

Leviathan Newco 2 Limited

Statement of Directors' Responsibilities

The directors acknowledge their responsibilities 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 the company 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 apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

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 group's and the company's transactions and disclose with reasonable accuracy at any time the financial position of the group and the 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 the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

 

Leviathan Newco 2 Limited

Independent Auditor's Report to the Members of Leviathan Newco 2 Limited

Opinion

We have audited the financial statements of Leviathan Newco 2 Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 April 2024, which comprise the Consolidated Profit and Loss Account, Consolidated Statement of Income and Retained Earnings, Consolidated Balance Sheet, Balance Sheet, Consolidated Statement of Changes in Equity, Statement of Changes in Equity, and 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 the parent company's affairs as at 30 April 2024 and of the group's loss 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 auditor 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 director's 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 and parent company's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were 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 included in the annual report, other than the financial statements and our auditor’s report 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.

 

Leviathan Newco 2 Limited

Independent Auditor's Report to the Members of Leviathan Newco 2 Limited

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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

Opinion on other matter 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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

the Directors' Report has been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Directors' Report.

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

adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or

the parent company financial statements are not in agreement with the accounting records and returns; or

certain disclosures of directors' remuneration specified by law are not made; or

we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page 3, 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 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.

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.

 

Leviathan Newco 2 Limited

Independent Auditor's Report to the Members of Leviathan Newco 2 Limited

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

As part of our audit planning we obtained an understanding of the legal and regulatory framework that is applicable to the group. We gained an understanding of the industry in which the group operates as part of this assessment to identify the key laws and regulations affecting the company. As part of this, we reviewed the group's website for indication of any regulations and certification in place and discussed these with the relevant individuals responsible for compliance. The key regulations we identified were employment law, health and safety regulations, tax legislation, Environment Act 2021, and anti-bribery. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the UK Generally Accepted Accounting Practice and the Companies Act 2006.

We discussed with management how the compliance with these laws and regulations is monitored and discussed policies and procedures in place. As part of our planning procedures, we assessed the risk of any non-compliance with laws and regulations on the group's ability to continue operating and the risk of material misstatement to the accounts. We also evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements.

Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Our procedures involved the following:

• Enquiries of management regarding their knowledge of any non-compliance with laws and regulations that could affect the financial statements;
• Review of the group's health and safety incident logs, for any instances of reportable breaches or non-compliance;
• Reviewed legal and professional costs to identify any possible non-compliance or legal costs in respect of non-compliance;
• Review of the group's minutes of Board meetings for any instances of reportable breaches or non-compliance.

We assessed the susceptibility of the financial statements to material misstatement through management override or fraud, including in relation to income and expenditure, and obtained an
understanding of the controls in place to mitigate the risk of fraud. We also discussed with management whether there had been any instances of known or alleged fraud, of which there were
none. Based upon our understanding we designed and conducted audit procedures including:

• Audited the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant
transactions outside the normal course of business.
• Reviewed estimates and judgements made in the accounts for any indication of bias and challenged assumptions used by management in making the estimates.
• Performed cut-off procedures of revenue both before the year end and after; and
• Investigated the rationale behind significant or unusual transactions.

 

Leviathan Newco 2 Limited

Independent Auditor's Report to the Members of Leviathan Newco 2 Limited

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements. This risk increases the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements as we are less likely to become aware of instances of non-compliance. The risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment, collusion, omission or misrepresentation.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: 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.

......................................
Robert Whitehead FCCA (Senior Statutory Auditor)
PKF Francis Clark, Statutory Auditor

Ground Floor
90 Victoria Street
Bristol
BS1 6DP

24 January 2025

 

Leviathan Newco 2 Limited

Consolidated Profit and Loss Account

Year Ended 30 April 2024

2024
£

(As restated)

2023
£

Turnover

1,953,560

835,245

Cost of sales

(1,323,231)

(666,811)

Gross profit

630,329

168,434

Distribution costs

(12,725)

(7,481)

Administrative expenses

(690,422)

(432,537)

Other operating income

-

5,906

Operating loss

(72,818)

(265,678)

Interest payable and similar expenses

(168,034)

(98,112)

Loss before tax

(240,852)

(363,790)

Tax on loss

(13,285)

1,491

Loss for the financial year

(254,137)

(362,299)

Loss attributable to:

Owners of the company

(254,137)

(362,299)

The group has no recognised gains or losses for the year other than the results above.

 

Leviathan Newco 2 Limited

Consolidated Balance Sheet

30 April 2024

Note

2024
£

(As restated)

2023
£

Fixed assets

 

Intangible assets

5

806,362

902,167

Tangible assets

6

327,824

364,148

 

1,134,186

1,266,315

Current assets

 

Stocks

229,568

339,667

Debtors

8

293,749

346,637

Cash at bank and in hand

 

50,898

92,791

 

574,215

779,095

Creditors: Amounts falling due within one year

9

(1,393,337)

(614,577)

Net current (liabilities)/assets

 

(819,122)

164,518

Total assets less current liabilities

 

315,064

1,430,833

Creditors: Amounts falling due after more than one year

9

(154,848)

(1,002,895)

Provisions for liabilities

(75,651)

(89,237)

Net assets

 

84,565

338,701

Capital and reserves

 

Called up share capital

12

14

14

Share premium reserve

199,986

199,986

Merger relief reserve

501,000

501,000

Profit and loss account

(616,435)

(362,299)

Equity attributable to owners of the company

 

84,565

338,701

Shareholders' funds

 

84,565

338,701

 

Leviathan Newco 2 Limited

Consolidated Balance Sheet

30 April 2024

These financial statements have been prepared and delivered in accordance with the provisions applicable to small companies regime within Part 15 of the Companies Act 2006.

Approved and authorised by the Board on 24 January 2025 and signed on its behalf by:
 

.........................................
D S Sneddon
Company secretary and director

Company Registration Number: 14240763

 

Leviathan Newco 2 Limited

Balance Sheet

30 April 2024

Note

2024
£

2023
£

Fixed assets

 

Investments

7

1,760,317

1,760,317

Current assets

 

Debtors

8

35,335

157,842

Cash at bank and in hand

 

470

50,078

 

35,805

207,920

Creditors: Amounts falling due within one year

9

(1,273,262)

(404,806)

Net current liabilities

 

(1,237,457)

(196,886)

Total assets less current liabilities

 

522,860

1,563,431

Creditors: Amounts falling due after more than one year

9

(100,000)

(967,388)

Net assets

 

422,860

596,043

Capital and reserves

 

Called up share capital

12

14

14

Share premium reserve

199,986

199,986

Merger relief reserve

501,000

501,000

Profit and loss account

(278,140)

(104,957)

Shareholders' funds

 

422,860

596,043

The company has taken the exemption in section 408 of the Companies Act 2006 and has not presented its individual profit and loss account. The company made a loss after tax for the financial year of £173,183 (2023 - loss of £104,957).

Approved and authorised by the Board on 24 January 2025 and signed on its behalf by:
 

.........................................
D S Sneddon
Company secretary and director

Company Registration Number: 14240763

 

Leviathan Newco 2 Limited

Consolidated Statement of Changes in Equity

Year Ended 30 April 2024

Share capital
£

Share premium
£

Merger relief reserve
£

Profit and loss account
£

Total
£

At 1 May 2023

14

199,986

501,000

(362,298)

338,702

Loss for the year

-

-

-

(254,137)

(254,137)

At 30 April 2024

14

199,986

501,000

(616,435)

84,565

Share capital
£

Share premium
£

Merger relief reserve
£

Profit and loss account
£

Total
£

Loss for the year

-

-

-

(362,299)

(362,299)

New share capital subscribed

14

199,986

-

-

200,000

Merger adjustment, increase in equity

-

-

501,000

-

501,000

At 30 April 2023 (As restated)

14

199,986

501,000

(362,299)

338,701

 

Leviathan Newco 2 Limited

Statement of Changes in Equity

Year Ended 30 April 2024

Share capital
£

Share premium
£

Merger relief reserve
£

Profit and loss account
£

Total
£

At 1 May 2023

14

199,986

501,000

(104,957)

596,043

Loss for the year

-

-

-

(173,183)

(173,183)

At 30 April 2024

14

199,986

501,000

(278,140)

422,860

Share capital
£

Share premium
£

Merger reserve
£

Profit and loss account
£

Total
£

Loss for the year

-

-

-

(104,957)

(104,957)

New share capital subscribed

14

199,986

-

-

200,000

Issue of equity shares

-

-

501,000

-

501,000

At 30 April 2023

14

199,986

501,000

(104,957)

596,043

 

Leviathan Newco 2 Limited

Notes to the Financial Statements

Year Ended 30 April 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:
28 Speed House
Barbican
London
EC2Y 8AT

These financial statements were authorised for issue by the Board on 24 January 2025.

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 were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and Companies Act 2006. The disclosure requirements of Section 1A have been applied other than where additional disclosure is required to show a true and fair view.

Basis of preparation

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

Basis of consolidation

The consolidated financial statements consolidate the financial statements of the company and its subsidiary undertakings drawn up to 30 April 2024.

As a consolidated profit and loss account is published, a separate profit and loss account for the parent company is omitted from the group financial statements by virtue of section 408 of the Companies Act 2006.

 

Leviathan Newco 2 Limited

Notes to the Financial Statements

Year Ended 30 April 2024

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

The results of subsidiaries acquired or disposed of during the year are included in the Profit and Loss Account from the effective date of acquisition or up to the effective date of disposal, as appropriate. Where necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by the group.

The purchase method of accounting is used to account for business combinations that result in the acquisition of subsidiaries by the group. The cost of a business combination is measured as the fair value of the assets given, equity instruments issued and liabilities incurred or assumed at the date of exchange, plus costs directly attributable to the business combination. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. Any excess of the cost of the business combination over the acquirer’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities recognised is recorded as goodwill.

Inter-company transactions, balances and unrealised gains on transactions between the company and its subsidiaries, which are related parties, are eliminated in full.

Intra-group losses are also eliminated but may indicate an impairment that requires recognition in the consolidated financial statements.

Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the group. Non-controlling interests in the net assets of consolidated subsidiaries are identified separately from the group’s equity therein. Non-controlling interests consist of the amount of those interests at the date of the original business combination and the non-controlling shareholder’s share of changes in equity since the date of the combination.

Going concern

The directors consider the prospects of the Group to be strong for the next 12 months with a growing order book and strengthening relationships with key customers. Improvement actions and synergies within the Leviathan Engineering Group further underpin this confidence.


There were breaches in the loan covenants during the year, this allowed the loan provider to monitor results closely, and since the year end a new refinancing agreement has been entered into with the loan provider. Hence highlighting the support the Group still has from the funder.

Consequently, the directors are confident that the Group will have sufficient funds to continue to meet its liabilities as they fall due for at least 12 months from the date of approval of the financial statements and therefore have prepared the financial statements on a going concern basis.

 

Leviathan Newco 2 Limited

Notes to the Financial Statements

Year Ended 30 April 2024

Prior period errors

A credit note was recognised twice in the prior year in error. This error was included in the subsidiary of which is consolidated in these accounts.

 

Current period disclosed in these financial statements
£

Prior period disclosed in the prior year signed financial statements
£

Prior period disclosed in these financial statements
£

Sales

1,956,455

727,105

835,245

Profit and loss account

(453,667)

(470,439)

(362,299)

Debtors

323,515

238,497

346,637

    

Key sources of estimation uncertainty

In the application of the company's accounting policies management is required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying 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 where the revision affects only that period, or in the period of the revision and future periods where the revision reflects both current and future periods.

Determining whether there are indicators of impairment of the group's tangible assets. Tangible fixed assets are depreciated over their useful life taking into account residual values, where appropriate. Factors taken into consideration in reaching such a decision include the economic viability and expected future financial performance of the asset. The carrying amount is £327,824 (2023: £364,148).

Determining whether stock is held at the correct value by ensuring it is stated at the lower of cost or net realisable value, the estimate being the selling price less costs to complete and sell. Stock is assessed for impairment and potential provision is estimated. Management undertake regular stocktakes and review the ageing and selling profile of the stock. The carrying value is £229,568 (2023: £339,667).

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services to external customers in the ordinary course of the company’s activities.Turnover is shown net of value added tax, returns, rebates and discounts and after eliminating sales within the company. Turnover is recognised when the goods or services have been delivered to the customer.

Tax

Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

 

Leviathan Newco 2 Limited

Notes to the Financial Statements

Year Ended 30 April 2024

The current corporation 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 tax is recognised on all timing differences at the balance sheet date unless indicated below. Timing differences are differences between taxable profits and the results as stated in the profit and loss account and other comprehensive income. Deferred 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 balance sheet 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

Plant and equipment

25% reducing balance and 10% straight line

Motor vehicles

25% reducing balance

Office equipment

25% reducing balance

Business combinations

Business combinations are accounted for using the purchase method. The consideration for each acquisition is measured at the aggregate of the fair values at acquisition date of assets given, liabilities incurred or assumed, and equity instruments issued by the group in exchange for control of the acquired, plus any costs directly attributable to the business combination. When a business combination agreement provides for an adjustment to the cost of the combination contingent on future events, the group includes the estimated amount of that adjustment in the cost of the combination at the acquisition date if the adjustment is probable and can be measured reliably.

Goodwill

Goodwill is amortised over its useful life, which shall not exceed ten years if a reliable estimate of the useful life cannot be made.

Amortisation

Amortisation is provided on intangible 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

10 years straight line

 

Leviathan Newco 2 Limited

Notes to the Financial Statements

Year Ended 30 April 2024

Investments

Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.


Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable.

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. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the group will not be able to collect all amounts due according to the original terms of the receivables.

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.

The cost of finished goods and work in progress 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, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.

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 group 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 subsequently measured at amortised cost using the effective interest method.

Provisions

Provisions are recognised when there is an obligation at the reporting date as a result of a past event. It is probable that economic benefit will be transferred to settle the obligation and the amount of the obligation can be estimated reliably.

 

Leviathan Newco 2 Limited

Notes to the Financial Statements

Year Ended 30 April 2024

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.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the group 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.

 

Leviathan Newco 2 Limited

Notes to the Financial Statements

Year Ended 30 April 2024

Financial instruments

Classification
The company holds the following financial instruments:

• Short term trade and other debtors and creditors;
• Bank loans; and
• Cash and bank balances.

All financial instruments are classified as basic.

 Recognition and measurement
The company has chosen to apply the recognition and measurement principles in FRS102.

Financial instruments are recognised when the company becomes party to the contractual provisions of the instrument and derecognised when in the case of assets, the contractual rights to cash flows from the assets expire or substantially all the risks and rewards of ownership are transferred to another party, or in the case of liabilities, when the company’s obligations are discharged, expire or are cancelled.

Except for bank loans, such instruments are initially measured at transaction price, including transaction costs, and are subsequently carried at the undiscounted amount of the cash or other consideration expected to be paid or received, after taking account of impairment adjustments.

Bank loans are initially measured at transaction price, including transaction costs, and are subsequently carried at amortised cost using the effective interest method.

 

3

Staff costs

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

2024
No.

2023
No.

Administration and support

16

15

16

15

 

Leviathan Newco 2 Limited

Notes to the Financial Statements

Year Ended 30 April 2024

4

Auditor's remuneration

2024
£

2023
£

Audit of these financial statements

5,000

4,400

Audit of the financial statements of subsidiaries of the company pursuant to legislation

19,500

14,300

24,500

18,700

Other fees to auditors

Audit-related assurance services

4,500

3,800

All other non-audit services

3,000

3,000

7,500

6,800


 

5

Intangible assets

Group

Goodwill
 £

Total
£

Cost or valuation

At 1 May 2023

958,053

958,053

At 30 April 2024

958,053

958,053

Amortisation

At 1 May 2023

55,886

55,886

Amortisation charge

95,805

95,805

At 30 April 2024

151,691

151,691

Carrying amount

At 30 April 2024

806,362

806,362

At 30 April 2023

902,167

902,167

 

Leviathan Newco 2 Limited

Notes to the Financial Statements

Year Ended 30 April 2024

6

Tangible assets

Group

Furniture, fittings and equipment
 £

Plant and machinery
£

Total
£

Cost or valuation

At 1 May 2023

50,644

1,288,632

1,339,276

Additions

-

36,243

36,243

Disposals

-

(6,500)

(6,500)

At 30 April 2024

50,644

1,318,375

1,369,019

Depreciation

At 1 May 2023

42,471

932,658

975,129

Charge for the year

1,683

70,883

72,566

Eliminated on disposal

-

(6,500)

(6,500)

At 30 April 2024

44,154

997,041

1,041,195

Carrying amount

At 30 April 2024

6,490

321,334

327,824

At 30 April 2023

8,174

355,974

364,148

7

Investments

Company

2024
£

2023
£

Investments in subsidiaries

1,760,317

1,760,317

Subsidiaries

£

Cost or valuation

At 1 May 2023

1,760,317

Provision

At 30 April 2024

-

Carrying amount

At 30 April 2024

1,760,317

At 30 April 2023

1,760,317

 

Leviathan Newco 2 Limited

Notes to the Financial Statements

Year Ended 30 April 2024

Details of undertakings

Details of the investments (including principal place of business of unincorporated entities) in which the company holds 20% or more of the nominal value of any class of share capital are as follows:

Undertaking

Registered office

Holding

Proportion of voting rights and shares held

     

2024

2023

Subsidiary undertakings

UK Precision Limited

28 Speed House, Barbican, London, EC2Y 8AT

Ordinary Shares

100%

100%

The principal activity of UK Precision Limited is that of general mechanical engineers.

8

Debtors

   

Group

Company

Note

2024
£

(As restated)

2023
£

2024
£

2023
£

Trade debtors

 

230,286

262,784

-

113,341

Other debtors

 

25,807

3,030

900

-

Prepayments

 

37,656

53,952

34,435

44,501

Income tax asset

-

26,871

-

-

 

293,749

346,637

35,335

157,842

 

Leviathan Newco 2 Limited

Notes to the Financial Statements

Year Ended 30 April 2024

9

Creditors

   

Group

Company

Note

2024
£

2023
£

2024
£

2023
£

Due within one year

 

Loans and borrowings

10

988,702

236,650

967,388

203,812

Trade creditors

 

273,829

301,250

-

-

Amounts due to group undertakings

14

-

-

278,488

175,576

Social security and other taxes

 

61,450

24,085

-

-

Other creditors

 

15,842

15,000

14,725

15,000

Accrued expenses

 

53,514

37,592

12,661

10,418

 

1,393,337

614,577

1,273,262

404,806

Due after one year

 

Loans and borrowings

10

154,848

1,002,895

100,000

967,388

10

Loans and borrowings

 

Group

Company

2024
£

2023
£

2024
£

2023
£

Non-current loans and borrowings

Bank borrowings

19,167

29,176

-

-

Hire purchase contracts

35,681

6,331

-

-

Other borrowings

100,000

967,388

100,000

967,388

154,848

1,002,895

100,000

967,388

 

Group

Company

2024
£

2023
£

2024
£

2023
£

Current loans and borrowings

Bank borrowings

10,000

10,000

-

-

Hire purchase contracts

11,314

22,838

-

-

Other borrowings

967,388

203,812

967,388

203,812

988,702

236,650

967,388

203,812

 

Leviathan Newco 2 Limited

Notes to the Financial Statements

Year Ended 30 April 2024

11

Obligations under leases and hire purchase contracts

Group

Finance leases

The total of future minimum lease payments is as follows:

2024
£

2023
£

Not later than one year

11,314

6,331

Later than one year and not later than five years

35,680

22,838

46,994

29,169

12

Share capital

Allotted, called up and fully paid shares

 

30 April 2024

30 April 2023

 

No.

£

No.

£

A Ordinary of £0.01 each

1,000

10.00

1,000

10.00

B Ordinary of £0.01 each

429

4.29

429

4.29

 

1,429

14

1,429

14

13

Parent and ultimate parent undertaking

The ultimate controlling party is Leviathan Engineering Limited.

 

Leviathan Newco 2 Limited

Notes to the Financial Statements

Year Ended 30 April 2024

14

Related party transactions

The Company has taken advantage of the exemption available in Section 33.1A of FRS 102 not to disclose transactions with the ultimate controlling party or any wholly owned subsidiary undertakings of the group.

Company

Income and receivables from related parties

2024

Entities with joint control or significant influence
£

Sale of goods

37,552

Amounts receivable from related party

24,368

Expenditure with and payables to related parties

2024

Entities with joint control or significant influence
£

Purchase of goods

5,019

Loans from related parties

2024

Parent
£

Total
£

Advanced

100,000

100,000

Interest transactions

3,989

3,989

At end of period

103,989

103,989