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Company Registration number: SC246380

L.I.P. Construction Limited

Annual Report and Unaudited
Financial Statements


for the Year Ended 30 April 2024

 

L.I.P. Construction Limited

Contents

Pages

Balance sheet

1 to 2

Notes to the financial statements

3 to 9

 

L.I.P. Construction Limited

Balance Sheet as at 30 April 2024

Note

2024
£

2023
£

Fixed assets

 

Tangible assets

4

815,555

758,945

Current assets

 

Stocks

5

980,912

930,541

Debtors

6

286,385

170,353

 

1,267,297

1,100,894

Creditors: Amounts falling due within one year

7

(901,912)

(561,147)

Net current assets

 

365,385

539,747

Total assets less current liabilities

 

1,180,940

1,298,692

Creditors: Amounts falling due after more than one year

7

(244,168)

(316,668)

Provisions for liabilities

(47,199)

(51,362)

Net assets

 

889,573

930,662

Capital and reserves

 

Called up share capital

100

100

Retained earnings

889,473

930,562

Shareholders' funds

 

889,573

930,662

 

L.I.P. Construction Limited

Balance Sheet as at 30 April 2024 (continued)

For the financial year ending 30 April 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.

Company registration number: SC246380

Approved and authorised by the Board on 9 December 2024 and signed on its behalf by:
 

.........................................
Mr S Lowther
Director

 

L.I.P. Construction Limited

Notes to the financial statements for the Year Ended 30 April 2024

1

GENERAL INFORMATION

The company is a private company limited by share capital, incorporated in Scotland.

The address of its registered office is:
Cherrybank
Waterbeck
Lockerbie
DG11 3JR

These financial statements were authorised for issue by the Board on 9 December 2024.

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 that as disclosed in the accounting policies certain items are shown at fair value.

The financial statements are prepared in sterling, which is the functional currency of the entity. Monetary amounts in these financial statements are rounded to the nearest £.

Judgements and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Actual results may differ from these estimates.

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.

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.

 

L.I.P. Construction Limited

Notes to the financial statements for the Year Ended 30 April 2024 (continued)

2

ACCOUNTING POLICIES (continued)

Tax

The tax expense for the period comprises current and deferred 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.
 

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 in respect of all timing differences between taxable profits and profits reported in the financial statements.

Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.

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 machinery

20% reducing balance

Motor vehicles

25% reducing balance

Office equipment

25% reducing balance

Leasehold property improvements

40 years straight line

 

L.I.P. Construction Limited

Notes to the financial statements for the Year Ended 30 April 2024 (continued)

2

ACCOUNTING POLICIES (continued)

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.

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.

 

L.I.P. Construction Limited

Notes to the financial statements for the Year Ended 30 April 2024 (continued)

2

ACCOUNTING POLICIES (continued)

Financial instruments

Classification
A financial asset or a financial liability is recognised only when the company becomes a party to the contractual provisions of the instrument.
 Recognition and measurement
Basic financial instruments are initially recognised at the transaction price.
 Impairment
Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately.

Any reversals of impairment are recognised in profit or loss immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.

3

STAFF NUMBERS

The average number of persons employed by the company (including directors) during the year, was 26 (2023 - 30).

 

L.I.P. Construction Limited

Notes to the financial statements for the Year Ended 30 April 2024 (continued)

4

TANGIBLE ASSETS

Leasehold property improvements
£

Motor vehicles
 £

Office equipment
£

Plant and machinery
£

Total
£

Cost or valuation

At 1 May 2023

500,622

207,338

28,696

312,753

1,049,409

Additions

-

118,399

4,261

91,192

213,852

Disposals

-

(137,010)

-

(4,095)

(141,105)

At 30 April 2024

500,622

188,727

32,957

399,850

1,122,156

Depreciation

At 1 May 2023

27,451

64,154

10,699

188,160

290,464

Charge for the year

8,860

31,774

4,266

29,450

74,350

Eliminated on disposal

-

(55,413)

-

(2,800)

(58,213)

At 30 April 2024

36,311

40,515

14,965

214,810

306,601

Carrying amount

At 30 April 2024

464,311

148,212

17,992

185,040

815,555

At 30 April 2023

473,171

143,184

17,997

124,593

758,945

 

L.I.P. Construction Limited

Notes to the financial statements for the Year Ended 30 April 2024 (continued)

5

STOCKS

2024
£

2023
£

Stock and work in progress

980,912

930,541

6

DEBTORS

Current

2024
£

2023
£

Trade debtors

285,000

168,762

Prepayments

583

789

Other debtors

802

802

 

286,385

170,353

7

CREDITORS

Creditors: amounts falling due within one year

Note

2024
£

2023
£

Due within one year

 

Loans and borrowings

8

317,758

258,428

Trade creditors

 

403,896

235,732

Taxation and social security

 

175,269

61,081

Accruals and deferred income

 

4,345

4,235

Other creditors

 

644

1,671

 

901,912

561,147


Creditors include bank loans and overdrafts £257,027 (2023 - £215,520) and net obligations under finance lease and hire purchase contracts which are secured of £60,731 (2023 - £42,908).

Creditors: amounts falling due after more than one year

Note

2024
£

2023
£

Due after one year

 

Loans and borrowings

8

244,168

316,668


Creditors include bank loans and overdrafts £102,324 (2023 - £203,811) and net obligations under finance lease and hire purchase contracts which are secured of £141,844 (2023 - £112,857).

 

L.I.P. Construction Limited

Notes to the financial statements for the Year Ended 30 April 2024 (continued)

8

LOANS AND BORROWINGS

Non-current loans and borrowings

2024
£

2023
£

Bank borrowings

102,324

203,811

Hire purchase contracts

141,844

112,857

244,168

316,668

Current loans and borrowings

2024
£

2023
£

Bank borrowings

126,685

134,108

Bank overdrafts

130,342

81,412

Hire purchase contracts

60,731

42,908

317,758

258,428