Company registration number 05748278 (England and Wales)
LONGDAN LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
LONGDAN LIMITED
COMPANY INFORMATION
Directors
L Huynh
V Huynh
Secretary
K T Do
Company number
05748278
Registered office
4 Estate Way
Leyton
London
E10 7JN
Auditor
UHY Hacker Young
Quadrant House
4 Thomas More Square
London
E1W 1YW
LONGDAN LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 8
Profit and loss account
9
Statement of comprehensive income
10
Balance sheet
11 - 12
Statement of changes in equity
13
Statement of cash flows
14
Notes to the financial statements
15 - 30
LONGDAN LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 APRIL 2024
- 1 -

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

Review of the business

The company has continued to expand in 2023/24, opening two new stores in Staines and Maidstone, which have contributed to a 20.1% increase in revenue. Our expanded product offering from Far East Asia has been well-received by customers, driving higher sales and improving our market position.

 

Our Longdan Plus Loyalty Program has grown significantly over the last year. New benefits, such as exclusive discounts and personalized offers, which have strengthened customer loyalty and provided valuable insights into purchasing behaviour.

 

Strategic partnerships with new suppliers have given us a larger more diverse range of products for our customers.

 

Despite challenges such as inflationary pressures and global supply chain disruptions, we have successfully managed costs and maintained profitability.

Principal risks and uncertainties

The business landscape in the UK continues to be very challenging. Although energy prices have come down slightly, they remain at a high level, putting pressure on operational costs. Freight costs have not come down and continue to be affected by adverse global events, such as geopolitical tensions and supply chain disruptions. These factors have contributed to increased costs across the supply chain.

 

There have also new entrants to the market. While this indicates that the market is expanding and presents growth opportunities, it also signals that there will be more competition in the future.

 

Despite these challenges, we are well-positioned to navigate the evolving landscape. Increased turnover and improved gross profit margin, provides a solid foundation for growth. Additionally, our strategic investments in supply chain and store expansion have strengthened our position in the market.

 

Liquidity risk 

The company aims to mitigate financial risks by managing liquidity to cover anticipated operational requirements and by investing its cash assets safely and profitably.

 

Credit Risk 

The primary credit risk is associated with trade debtors. To assess customer performance, the company employs a combination of credit checks, defined credit limits, and analysis of payment history. The company conducts periodic reviews of credit limits and monitors debt aging through reports.

 

Employment risk 

In this challenging labour market, we will look to invest in our training and recruitment processes to support our expansion strategy and provide a competitive long-term working environment for staff.

LONGDAN LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 2 -
Key performance indicators

Revenue increased from £16.8 million in 2023 to £20.2 million in 2024, representing a 20.1% increase. Gross profit also increased from approximately £6.8 million in 2023 to approximately £8.6 million in 2024, representing an increase of 26.5% compared to 2023. The gross profit margin also increased from 40.6% to 42.8%. Profit before tax increased from £213k in 2023 to £307k in 2024.

On behalf of the board

V Huynh
Director
30 January 2025
LONGDAN LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 APRIL 2024
- 3 -

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

Principal activities

The principal activity of the company continued to be that of wholesaling and retailing of food and other non-food products.

Results and dividends

The results for the year are set out on page 9.

No ordinary dividends were paid during the year. The directors do not recommend payment of a final dividend.

Directors

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

L Huynh
V Huynh
Auditor

The auditor, UHY Hacker Young, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Statement of directors' responsibilities

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of 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 company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

LONGDAN LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 4 -
Statement of disclosure to auditor

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

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

On behalf of the board
V Huynh
Director
30 January 2025
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF LONGDAN LIMITED
- 5 -
Opinion

We have audited the financial statements of Longdan Limited (the 'company') for the year ended 30 April 2024 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the 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.

INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF LONGDAN LIMITED (CONTINUED)
- 6 -

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

 

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

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the 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 company or to cease operations, or have no realistic alternative but to do so.

INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF LONGDAN LIMITED (CONTINUED)
- 7 -
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.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. 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.

Based on our understanding of the Company and the industry in which it operates, we identified that the principal risks of non-compliance with laws and regulations related to the acts by the Company, which were contrary to applicable laws and regulations including fraud, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006. We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls).

Audit procedures performed included: review of the financial statement disclosures to underlying supporting documentation, enquiries of management and testing of journals and evaluating whether there was evidence of bias by the Directors that represented a risk of material misstatement due to fraud.

There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, 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 by, for example, forgery or intentional misrepresentations, or through collusion.

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

Use of our report

This report is made solely to the company's member 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 member those matters we are required to state to the member 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 member, for our audit work, for this report, or for the opinions we have formed.

INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF LONGDAN LIMITED (CONTINUED)
- 8 -
Vinodkumar Vadgama
Senior Statutory Auditor
For and on behalf of UHY Hacker Young
31 January 2025
Chartered Accountants
Statutory Auditor
LONGDAN LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 30 APRIL 2024
- 9 -
2024
2023
Notes
£
£
Turnover
3
20,214,772
16,831,405
Cost of sales
(11,569,836)
(9,997,232)
Gross profit
8,644,936
6,834,173
Administrative expenses
(7,891,122)
(6,421,892)
Operating profit
4
753,814
412,281
Interest payable and similar expenses
8
(446,801)
(199,304)
Profit before taxation
307,013
212,977
Tax on profit
9
(155,021)
48,356
Profit for the financial year
151,992
261,333

The profit and loss account has been prepared on the basis that all operations are continuing operations.

LONGDAN LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 APRIL 2024
- 10 -
2024
2023
£
£
Profit for the year
151,992
261,333
Other comprehensive income
-
-
Total comprehensive income for the year
151,992
261,333
LONGDAN LIMITED
BALANCE SHEET
AS AT
30 APRIL 2024
30 April 2024
- 11 -
2024
2023
Notes
£
£
£
£
Fixed assets
Intangible assets
10
8,433
9,199
Tangible assets
11
2,983,103
2,441,918
2,991,536
2,451,117
Current assets
Stocks
13
7,567,987
5,852,059
Debtors
14
3,579,828
2,970,207
Cash at bank and in hand
732,318
429,576
11,880,133
9,251,842
Creditors: amounts falling due within one year
15
(10,410,415)
(7,680,684)
Net current assets
1,469,718
1,571,158
Total assets less current liabilities
4,461,254
4,022,275
Creditors: amounts falling due after more than one year
16
(1,999,236)
(1,817,375)
Provisions for liabilities
Deferred tax liability
19
453,527
348,401
(453,527)
(348,401)
Net assets
2,008,491
1,856,499
Capital and reserves
Called up share capital
21
1
1
Profit and loss reserves
2,008,490
1,856,498
Total equity
2,008,491
1,856,499
LONGDAN LIMITED
BALANCE SHEET (CONTINUED)
AS AT
30 APRIL 2024
30 April 2024
- 12 -

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements were approved by the board of directors and authorised for issue on 30 January 2025 and are signed on its behalf by:
V  Huynh
Director
Company registration number 05748278 (England and Wales)
LONGDAN LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 APRIL 2024
- 13 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 May 2022
1
1,595,165
1,595,166
Year ended 30 April 2023:
Profit and total comprehensive income
-
261,333
261,333
Balance at 30 April 2023
1
1,856,498
1,856,499
Year ended 30 April 2024:
Profit and total comprehensive income
-
151,992
151,992
Balance at 30 April 2024
1
2,008,490
2,008,491
LONGDAN LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 APRIL 2024
- 14 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
26
311,349
(426,807)
Interest paid
(446,801)
(199,304)
Income taxes paid
(76,086)
-
Net cash outflow from operating activities
(211,538)
(626,111)
Investing activities
Purchase of tangible fixed assets
(486,419)
(211,200)
Proceeds from disposal of tangible fixed assets
198
-
Net cash used in investing activities
(486,221)
(211,200)
Financing activities
Repayment of directors loan
-
0
(171,200)
Proceeds from borrowings
-
0
933,269
Repayment of borrowings
(29,000)
-
0
Proceeds from new bank loans
1,315,889
327,395
Payment of finance leases obligations
(286,388)
(381,307)
Net cash generated from financing activities
1,000,501
708,157
Net increase/(decrease) in cash and cash equivalents
302,742
(129,154)
Cash and cash equivalents at beginning of year
429,576
558,730
Cash and cash equivalents at end of year
732,318
429,576
LONGDAN LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
- 15 -
1
Accounting policies
Company information

Longdan Limited is a private company limited by shares incorporated in England and Wales. The registered office is 4 Estate Way, Leyton, London, E10 7JN.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

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

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2
Going concern

At the time of approving the financial statements, the directors have truecarefully considered the trading outlook for the coming year and expected cashflows and have a reasonable expectation that the company has access to adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Turnover
Turnover represents amounts receivable for goods and services net of VAT.
1.4
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

 

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Patents and licences
20 years
1.5
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

LONGDAN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 16 -

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Land and buildings Leasehold
Over the length of the lease - 10 years and 15 years
Plant and machinery
15% on reducing balance
Fixtures, fittings & equipment
15% on reducing balance
Computer equipment
25% on reducing balance
Motor vehicles
25% on reducing balance

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

1.6
Impairment of fixed assets

At each reporting period end 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). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

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

 

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

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

1.7
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

LONGDAN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 17 -

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

1.8
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.9
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ to all of its financial instruments.

 

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

Other financial assets

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

Impairment of financial assets

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

 

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

 

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

LONGDAN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 18 -
Derecognition of financial assets

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

Classification of financial liabilities

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

Basic financial liabilities

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

 

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

 

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

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.10
Equity instruments

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

1.11
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

LONGDAN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 19 -
Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.12
Employee benefits

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

 

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

1.13
Retirement benefits

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

1.14
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

1.15
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

LONGDAN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 20 -
2
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 amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Tangible fixed assets

Tangible fixed assets are depreciated over their useful lives taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In re-assessing asset lives, factors such as technological innovation, product life cycles and maintenance programmes are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projected disposal values.

3
Turnover

An analysis of the company's turnover is as follows:

2024
2023
£
£
Turnover analysed by class of business
Sales of goods
20,125,891
16,773,322
Sundry income
88,881
58,083
20,214,772
16,831,405
2024
2023
£
£
Turnover analysed by geographical market
UK
20,214,772
16,831,405
LONGDAN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 21 -
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange (gains)/losses
(85,547)
7,318
Depreciation of owned tangible fixed assets
449,080
367,084
(Profit)/loss on disposal of tangible fixed assets
-
10,823
Amortisation of intangible assets
766
767
Operating lease charges
1,826,017
1,581,140
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
21,376
31,250
6
Employees

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

2024
2023
Number
Number
Management
3
3
Administration
9
8
Sales, retail & warehouse
148
102
Total
160
113

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
2,689,707
1,866,197
Social security costs
199,877
128,506
Pension costs
60,124
38,332
2,949,708
2,033,035
LONGDAN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 22 -
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
35,000
35,000
8
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
388,123
165,858
Other interest on financial liabilities
2,626
603
390,749
166,461
Other finance costs:
Interest on finance leases and hire purchase contracts
56,052
32,843
446,801
199,304
9
Taxation
2024
2023
£
£
Current tax
Adjustments in respect of prior periods
73,869
(77,906)
Group tax relief
(23,975)
(36,933)
Total current tax
49,894
(114,839)
Deferred tax
Origination and reversal of timing differences
105,127
66,483
Total tax charge/(credit)
155,021
(48,356)
LONGDAN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
9
Taxation
(Continued)
- 23 -

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

2024
2023
£
£
Profit before taxation
307,013
212,977
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.49%)
76,753
41,509
Tax effect of expenses that are not deductible in determining taxable profit
142
-
0
Adjustments in respect of prior years
73,869
(77,906)
Group relief
(23,975)
(36,933)
Depreciation on assets not qualifying for tax allowances
14,423
24,974
Deferred tax adjustments in respect of prior years
(6,583)
-
0
Other differences
20,392
-
0
Taxation charge/(credit) for the year
155,021
(48,356)
10
Intangible fixed assets
Patents and licences
£
Cost
At 1 May 2023 and 30 April 2024
15,332
Amortisation and impairment
At 1 May 2023
6,133
Amortisation charged for the year
766
At 30 April 2024
6,899
Carrying amount
At 30 April 2024
8,433
At 30 April 2023
9,199
LONGDAN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 24 -
11
Tangible fixed assets
Land and buildings Leasehold
Plant and machinery
Fixtures, fittings & equipment
Computer equipment
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 May 2023
375,916
1,754,495
1,118,354
281,012
241,516
3,771,293
Additions
91,207
590,290
235,283
53,683
20,000
990,463
Disposals
-
0
-
0
-
0
(200)
-
0
(200)
At 30 April 2024
467,123
2,344,785
1,353,637
334,495
261,516
4,761,556
Depreciation and impairment
At 1 May 2023
139,610
504,378
467,484
150,634
67,269
1,329,375
Depreciation charged in the year
42,617
224,618
101,378
36,443
44,024
449,080
Eliminated in respect of disposals
-
0
-
0
-
0
(2)
-
0
(2)
At 30 April 2024
182,227
728,996
568,862
187,075
111,293
1,778,453
Carrying amount
At 30 April 2024
284,896
1,615,789
784,775
147,420
150,223
2,983,103
At 30 April 2023
236,306
1,250,117
650,870
130,378
174,247
2,441,918

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

2024
2023
£
£
Plant and machinery
1,090,403
741,731
Fixtures, fittings & equipment
189,159
297,771
Motor vehicles
149,253
28,817
1,428,815
1,068,319
LONGDAN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 25 -
12
Financial instruments
2024
2023
£
£
Carrying amount of financial assets
Debt instruments measured at amortised cost
2,376,004
2,033,884
Instruments measured at fair value through profit or loss
-
422,432
Carrying amount of financial liabilities
Measured at amortised cost
12,303,547
9,420,426
13
Stocks
2024
2023
£
£
Finished goods and goods for resale
7,567,987
5,852,059
14
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
556,971
376,092
Corporation tax recoverable
14,191
-
0
Amounts owed by group undertakings
30,000
499
Other debtors
1,790,898
1,661,480
Prepayments and accrued income
1,187,768
932,136
3,579,828
2,970,207
LONGDAN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 26 -
15
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans
17
4,962,357
3,712,030
Obligations under finance leases
18
394,341
292,984
Other borrowings
17
333,000
362,000
Trade creditors
2,428,397
1,673,811
Amounts owed to group undertakings
602,891
335,012
Corporation tax
-
0
12,000
Other taxation and social security
106,104
65,633
Other creditors
398,581
453,179
Accruals and deferred income
1,184,744
774,035
10,410,415
7,680,684

The bank loans are secured by a fixed and floating charge over the assets of the company.

16
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Bank loans and overdrafts
17
1,100,794
1,035,232
Obligations under finance leases
18
898,442
782,143
1,999,236
1,817,375
17
Loans and overdrafts
2024
2023
£
£
Bank loans
6,063,151
4,747,262
Other loans
333,000
362,000
6,396,151
5,109,262
Payable within one year
5,295,357
4,074,030
Payable after one year
1,100,794
1,035,232

One of the loans is repayable in July 2024 and attracts interest of 6.9%.

The other loan, which is secured, is repayable in February 2031 and attracts interest of 2.5% + Bank of England Base Rate.

LONGDAN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 27 -
18
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
394,341
292,984
In two to five years
898,442
782,143
1,292,783
1,075,127

Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. Each lease term varies. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

19
Deferred taxation

Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:

Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
614,434
496,195
Tax losses
(160,907)
(147,794)
453,527
348,401
2024
Movements in the year:
£
Liability at 1 May 2023
348,401
Charge to profit or loss
105,126
Liability at 30 April 2024
453,527
LONGDAN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 28 -
20
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
60,124
38,332

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

21
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
1
1
1
1
22
Financial commitments, guarantees and contingent liabilities

The company is party to a unlimited multilateral guarantee dated 28 March 2019 given to HSBC together with Longdan Capital Limited, Vien Dong Holdings Limited, Kim Son Limited and Aobaba Limited.

 

23
Operating lease commitments
Lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2024
2023
£
£
Within one year
1,439,066
1,144,066
Between two and five years
6,092,370
5,194,985
In over five years
12,138,676
8,737,627
19,670,112
15,076,678
LONGDAN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 29 -
24
Related party transactions
Transactions with related parties

During the year the company entered into the following transactions with related parties:

 

Other information

During the period, the company made purchases from Kim Son Limited of £2,029,250 (2023: £1,846,118) and sales to Kim Son Limited of £1,126,503 (2023: £2,115,026 ). During the year, Kim Son recharged insurance expenses of £108,987 (2023: £89,218) and business rates of £35,318 (2023: £52,881). At the year end, the amount due from Kim Son Limited was £1,658,072 (2023: £1,507,140).

 

During the period, the company made sales to Aobaba Limited of £27,658 (2023: £46). During the year Longdan recharged rent and rates of £121,784 (2023: £4,693) and recharged staff costs of £30,000 (2023: £Nil) to Aobaba. At the year end, the amount owed by Aobaba Limited was £30,000 (2023: £499).

 

During the period, the rent payable to Longdan Capital Limited, a fellow subsidiary, was £371,140 (2023: £286,140). At the year end, the amount due to Longdan Capital Limited was £602,891 (2023: £371,945 ).

 

L Huynh, the director, made an unsecured and interest-free loan to the company. The balance outstanding at the year end was £123,622 (2023: £215,122).

 

K T Do, the secretary, made an unsecured and interest-free loan to the company. The balance outstanding at the year end was £333,000 (2023: £362,000). K T Do is a director of Longdan Capital Limited and has an interest in the parent company.

 

L Huynh, the director of this company is also a director of Kim Son Limited.

25
Ultimate controlling party

The parent company is Vien Dong Holdings Limited, the ultimate controlling party is L Huynh.

LONGDAN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 30 -
26
Cash generated from/(absorbed by) operations
2024
2023
£
£
Profit for the year after tax
151,992
261,333
Adjustments for:
Taxation charged/(credited)
155,021
(48,356)
Finance costs
446,801
199,304
(Gain)/loss on disposal of tangible fixed assets
-
10,823
Amortisation and impairment of intangible assets
766
767
Depreciation and impairment of tangible fixed assets
449,080
367,084
Movements in working capital:
Increase in stocks
(1,715,928)
(611,834)
Increase in debtors
(595,430)
(1,291,785)
Increase in creditors
1,419,047
477,365
Cash generated from/(absorbed by) operations
311,349
(635,299)
27
Analysis of changes in net debt
1 May 2023
Cash flows
New finance leases
30 April 2024
£
£
£
£
Cash at bank and in hand
429,576
302,742
-
732,318
Borrowings excluding overdrafts
(5,109,262)
(1,286,889)
-
(6,396,151)
Obligations under finance leases
(1,075,127)
286,388
(504,044)
(1,292,783)
(5,754,813)
(697,759)
(504,044)
(6,956,616)
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