Registration number:
Lawrence Hunt & Co Limited
for the Year Ended 17 May 2024
Lawrence Hunt & Co Limited
Contents
Company Information |
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Strategic Report |
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Directors' Report |
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Statement of Directors' Responsibilities |
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Independent Auditor's Report |
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Profit and Loss Account and Statement of Retained Earnings |
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Balance Sheet |
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Statement of Cash Flows |
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Notes to the Financial Statements |
Lawrence Hunt & Co Limited
Company Information
Directors |
Mr K B Hunt Miss P Bailey Mrs A C Hunt Mr T Miller Mr J Hunt |
Registered office |
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Solicitors |
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Auditors |
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Lawrence Hunt & Co Limited
Strategic Report for the Year Ended 17 May 2024
The directors present their strategic report for the year ended 17 May 2024.
Principal activity
The principal activity of the company is the operation of stores retailing convenience food and drink products
Fair review of the business
Trading results
Pre-tax results for the 52 weeks year to 17 May 2024 were £1,371,009 (2023: £1,964,249 52 weeks), a decrease of £593,240 on the previous year.
Financial position
The company's balance sheet as detailed on page 13 shows the company financial position at the year end date with shareholders' funds amounting to £4,869,014 (2023: £6,468,602). Fixed assets stood at £4,438,701 at the balance sheet date (2023: £4,786,638). Net current assets of the company stand at £802,793 at the year end (2023: £2,010,947). Liquidity is strong and can be seen within the notes to these accounts.
Key performance indicators (KPI's)
The principal financial KPI's are like for like sales growth and operating profit. The company regularly monitors its key performance indicators to assess performance.
These include:
- Sales and like for like sales growth.
- Gross profit and gross profit percentage return on sales.
- Operating profit and operating profit percentage return on sales.
- Energy costs.
Section 172(1) statement
Section 172 of the Companies Act 2006 requires that the directors of the company act in a way that they consider, in good faith, would be most likely to promote the company for the benefits of its stakeholders as a whole, but also having regard to a range of factors including the following:-
Long term consequences
All decisions are made with the aim of remaining operational and competitive within a highly competitive marketplace and to maintain sustainable profitable growth to provide long term value to the company’s stakeholders.
Initiatives and decisions made to help achieve the company’s long-term strategy include driving cost efficiencies in all areas, improve customer experience and convenience food to go product range options and further capital investment plans in new stores and existing store refits, including energy saving measures such as LED lighting and refrigeration upgrades.
All capital investment decisions are made after considering the long-term viability and strategic direction of the company.
Lawrence Hunt & Co Limited
Strategic Report for the Year Ended 17 May 2024
The interests of employees
The directors are committed to the company being a responsible employer and aim to create a safe and supportive working environment for the workforce, who are a fundamental asset of the business. The health and safety of employees is put at the forefront of any decisions made. The company has continued to provide staff with the training, skills, tools and information required to achieve the best of their abilities.
The company encourages a positive, fair and diverse working environment for all employees.
Fostering stakeholder business relationships
The directors continue to balance the needs and requirements of all stakeholders, including customers and suppliers, and aim to act responsibly and fairly towards all stakeholders. Capital is allocated to all stakeholders to help meet their needs; for example, the continuing improvement and renovation of existing stores providing customers with improved facilities, including food to go initiatives, and making supplier payments on a timely basis in accordance with their agreed terms.
Impact on the community and the environment
When making decisions the directors look to recognise the effect this has on the local communities in which the stores operate and aim to ensure these stores are in convenient residential locations and stocked with quality produce. The company also continues to be involved in supporting various local community projects and sponsorships and local charitable causes.
The directors are committed to reducing the company’s environmental impact and contribution to climate change through increased energy management and awareness and changes to operational procedures. As part of their commitment to reducing their environmental impact, the company has introduced a number of energy saving measures, including the installation of LED lighting in the stores. A large proportion of the company’s energy usage is required for refrigeration and the company has installed energy efficiency doors for display cabinets to reduce energy waste. Additionally, the company has changed the design and installation of their systems, using less harmful refrigerants and smaller compressor. The company has also invested in air to water recovery systems in their heating systems to reduce energy usage further.
Maintaining a reputation for high standard of business conduct
Since the business was founded in 1946 the business has continued to be managed by the Hunt family and is governed based on core family values. Throughout this time the directors have been focused on trust and integrity and ensuring these values and culture spreads throughout the company. Internal and external policies are reviewed regularly by the directors, with an aim of operating in a responsible manner and maintaining a good reputation by building on best practice and adhering to statutory improvements.
Act fairly between members of the company
As a family company, the shareholders of the company are family members, and the directors' decisions are aligned with the long-term interests of the family. The company’s board of directors include family members and also non-family directors who also bring financial and operational representation. Together the company’s board of directors' wealth of experience ensures decision making is equitable, sound and aligned to the shareholders as a whole for the long term.
Lawrence Hunt & Co Limited
Strategic Report for the Year Ended 17 May 2024
Principal risks and uncertainties
The company's trade is subject to the business conditions, general economic risks and regulatory requirements of the U.K. and the company ensures it mitigates these risks by quality assurance procedures. The company's principle risks and uncertainties which could impact the business are set out below.
Business conditions and general economic risks
As a grocery convenience store retailer, the business is exposed to the general conditions of the UK economy, in particular those related to any downturn in the spending power of consumers in the North West of England. These risks are continually monitored and considered by the company; local store-based customer service focus and improved convenience store experience and product selection enable mitigation of these risks.
Funding & liquidity
Funding requirements are managed for both the short and long term cash flow needs of the business, ensuring the company has sufficient available funds for trade operations and planned store refurbishments and changes and new store investment.
Regulatory compliance risk
The company is subject to regulatory compliance risks which can arise from a failure to fully comply with the applicable laws, regulations and codes of practice the trade, e.g., licensing, health & safety, and fire regulations. It is the company’s policy to ensure that the company and all employees operate within safe and legal guidelines and these guidelines are regularly reviewed and monitored.
IT systems
The company's retail store operations are dependent on the day-to-day efficient and uninterrupted operation of its IT systems. The Company recognises that IT infrastructure systems are subject to operational business risks of damage or interruption from power loss, telecommunications failure, sabotage, vandalism or similar misconduct. The Company, with its IT infrastructure provider, has put in place contingency and recovery plans in order to mitigate the impact of such failures.
Approved by the
.........................................
Miss P Bailey
Director
Lawrence Hunt & Co Limited
Directors' Report for the Year Ended 17 May 2024
The directors present their report and the financial statements for the year ended 17 May 2024.
Directors of the company
The directors who held office during the year were as follows:
Dividends
All dividends voted for the year ended 17th May 2024 have been paid and are provided for within these accounts. Dividends paid are as set out in note 24 to the financial statements.
Going concern
The company’s business activities, together with factors likely to affect its future development, performance and position are set out in the Strategic Report on pages 2 to 4. The financial position of the company, its cash flows, liquidity position and borrowing facilities are presented on the balance sheet on page 13.
As part of the going concern assessment the directors have considered the forecast financial performance, cash balances and cash flow forecast.
The directors consider that the company has adequate resources to remain in operation for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the financial statements.
Financial instruments
Objectives and policies
The company's financial instruments consist mainly of cash and bank balances and current asset investments.
The directors manage the company's exposure to financial risk by seeking advice from its external financial advisors.
Price risk, credit risk, liquidity risk and cash flow risk
Funding and liquidity
The company finances its operations from retained profits, working capital management and cash generated from operations. The objective is to ensure continuity of funding and cash levels are sufficient to meet ongoing needs of the business and that there is flexibility to deal with unforeseen events. The policy is to smooth the cash management of the business and to arrange funding ahead of requirements, should it be needed.
Interest risk management
The objective is to limit the company's exposure to interest rate fluctuations. The company maintains a policy of interest rate management.
Derivatives
The company has no financial instruments that fall to be classified as derivatives.
Lawrence Hunt & Co Limited
Directors' Report for the Year Ended 17 May 2024
Engagement with suppliers, customers and other relationships
As part of the Section 172 statement, the company has referred to this matter and further detail can be found in the strategic report.
Environmental report
Emissions and energy consumption
2024 |
2023 |
2022 |
2021 |
||||
Energy (kWh) |
|||||||
Natural gas |
- |
- |
10,011 |
10,956 |
|||
Electricity (scope 2) |
|
|
3,427,060 |
3,305,945 |
|||
Transport (scope 1, scope 2, scope 3) |
|
|
65,350 |
152,880 |
|||
Total energy (kWh) |
2,916,664 |
3,056,892 |
3,502,421 |
3,469,781 |
|||
Emissions (tCO2e) |
|||||||
Natural gas |
- |
- |
1.83 |
2.01 |
|||
Electricity (scope 2) |
|
|
662.72 |
701.95 |
|||
Transport (scope 1, scope 2, scope 3) |
|
|
16.3 |
35.98 |
|||
Total SECR emissions |
|
|
680.85 |
739.93 |
|||
Intensity Metric |
|||||||
tCO2e / Sales Floor Area (m2) |
|
|
0.1300 |
0.1413 |
Lawrence Hunt & Co Ltd are committed to reducing their environmental impact and contribution to climate change through increased energy management and awareness and changes to operational procedures. The company are continuing the phased replacement of self-cleaning AC cassettes in some stores. These improve the efficiency of the units by permanently cleaning the filters and improving airflow.
Lawrence Hunt & Co Ltd have plans to install solar panels at one of the stores in the summer of 2024, followed by another store in 2025.
Environmental report data records and methodology
Carbon Emission Factors used in calculations are the 'Government conversion factors for company reporting of greenhouse gas emissions'.
Annual factors for 2024 published on 30/10/2024 have been used in the calculations of carbon emissions for this report.
In line with the scope of the SECR report, the data from the sources listed above were categorised into Scope 1, Scope 2 and Scope 3 emissions.
Lawrence Hunt & Co Limited
Directors' Report for the Year Ended 17 May 2024
Employment of disabled persons
The company has a policy for giving full and fair consideration to applications for employment made by disabled persons, having regard to their particular aptitudes and abilities; for continuing the employment of and for arranging appropriate training for employees of the company who have become disabled persons during the period when they were employed by the company; for the training, career development and promotion of disabled persons employed by the company.
Future developments
The directors intend to continue providing friendly, local convenience stores with the objective to develop and grow the business. The directors will continue to consider any viable new stores and the development of existing stores in the coming financial year.
Engagement with employees
An established communication system, through area managers, store managers and assistant managers, ensures that employees are regularly consulted on matters likely to affect their interests, and are informed of the performance of the company. The involvement of the employees is actively encouraged at all times.
Further detail can be found within our Section 172 statement which can be found in the strategic report.
Disclosure of information to the auditors
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 auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.
Approved by the
.........................................
Miss P Bailey
Director
Lawrence Hunt & Co 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 company and of the profit or loss of the company 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 United Kingdom 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 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 and in accordance with FRS 102 The Financial Reporting Standard. 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.
Lawrence Hunt & Co Limited
Independent Auditor's Report to the Members of Lawrence Hunt & Co Limited
Opinion
We have audited the financial statements of Lawrence Hunt & Co Limited (the 'company') for the year ended 17 May 2024, which comprise the Profit and Loss Account and Statement of Retained Earnings, Balance Sheet, Statement of Cash Flows, 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 company's affairs as at 17 May 2024 and of its profit for the year then ended; |
• | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
• | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor 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 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.
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.
Lawrence Hunt & Co Limited
Independent Auditor's Report to the Members of Lawrence Hunt & Co Limited
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 Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
• |
the Strategic Report and Directors' Report have 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 Strategic Report and 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, or returns adequate for our audit have not been received from branches not visited by us; or |
• | the 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 8, 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.
Auditor 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. 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:
• |
the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations; |
• |
we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the retail sector; |
• |
we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation, data protection, employment, environmental and health and safety legislation; |
Lawrence Hunt & Co Limited
Independent Auditor's Report to the Members of Lawrence Hunt & Co Limited
• |
we assessed the extent of compliance with laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and |
• |
identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit. |
We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur by: |
|
• |
making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; |
• |
considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations; and |
• |
reviewing the board minutes to identify any evidence of non-compliance with laws and regulations, ongoing litigation or enquiries. |
To assess the risk of fraud through management bias and override of controls, we: |
|
• |
performed analytical procedures to identify any unusual or unexpected relationships; |
• |
tested journal entries to identify unusual transactions; |
• |
assessed whether judgements and assumptions made in determining accounting estimates were indicative of potential bias; and |
• |
investigated the rationale behind significant or unusual transactions. |
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. |
|
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion. |
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.
......................................
For and on behalf of
15 Olympic Court Boardmans Way
Whitehills Business Park
FY4 5GU
Lawrence Hunt & Co Limited
Profit and Loss Account and Statement of Retained Earnings for the Year Ended 17 May 2024
Note |
2024 |
2023 |
|
Turnover |
|
|
|
Cost of sales |
( |
( |
|
Gross profit |
|
|
|
Administrative expenses |
( |
( |
|
Other operating income |
|
|
|
Operating profit |
|
|
|
Gain on financial assets at fair value through profit and loss |
|
|
|
Other interest receivable and similar income |
|
|
|
Interest payable and similar charges |
( |
( |
|
30,640 |
15,777 |
||
Profit before tax |
|
|
|
Taxation |
( |
( |
|
Profit for the financial year |
|
|
|
Retained earnings brought forward |
6,341,404 |
5,767,463 |
|
Dividends paid |
( |
( |
|
Retained earnings carried forward |
4,741,816 |
6,341,404 |
The company has no recognised gains or losses for the year other than the results above.
Lawrence Hunt & Co Limited
(Registration number: 01185833)
Balance Sheet as at 17 May 2024
Note |
2024 |
2023 |
|
Fixed Assets |
|||
Intangible assets |
|
|
|
Tangible Assets |
|
|
|
Investments |
|
|
|
|
|
||
Current assets |
|||
Stocks |
|
|
|
Debtors |
|
|
|
Investments |
|
|
|
Cash at bank and in hand |
|
|
|
|
|
||
Creditors: Amounts falling due within one year |
( |
( |
|
Net current assets |
|
|
|
Total assets less current liabilities |
|
|
|
Provisions for liabilities |
( |
( |
|
Net assets |
|
|
|
Capital and Reserves |
|||
Called up share capital |
|
|
|
Share premium reserve |
|
|
|
Retained Earnings |
|
|
|
Shareholders' funds |
|
|
Approved and authorised by the
.........................................
Mr K B Hunt
Director
Lawrence Hunt & Co Limited
Statement of Cash Flows for the Year Ended 17 May 2024
Note |
2024 |
2023 |
|
Cash flows from operating activities |
|||
Profit for the year |
|
|
|
Adjustments to cash flows from non-cash items |
|||
Depreciation and amortisation |
|
|
|
Profit on disposal of tangible assets |
( |
( |
|
Profit from disposals of investments |
( |
( |
|
(Profit) / loss on revaluation of investments |
( |
( |
|
Finance income |
( |
( |
|
Finance costs |
|
|
|
Income tax expense |
|
|
|
|
|
||
Working capital adjustments |
|||
Decrease/(increase) in stocks |
|
( |
|
Decrease/(increase) in trade debtors |
|
( |
|
(Decrease)/increase in trade creditors |
( |
|
|
Cash generated from operations |
|
|
|
Income taxes paid |
( |
( |
|
Net cash flow from operating activities |
|
|
|
Cash flows from investing activities |
|||
Interest received |
|
|
|
Acquisitions of tangible assets |
( |
( |
|
Proceeds from sale of tangible assets |
|
|
|
Proceeds from sale of intangible assets |
- |
|
|
Other investments |
|
|
|
Net cash flows from investing activities |
|
( |
|
Cash flows from financing activities |
|||
Interest paid |
( |
( |
|
Dividends |
( |
( |
|
Net cash flows from financing activities |
( |
( |
|
Net (decrease)/increase in cash and cash equivalents |
( |
|
|
Cash and cash equivalents at 18 May |
|
|
|
Cash and cash equivalents at 17 May |
2,317,534 |
2,426,595 |
Lawrence Hunt & Co Limited
Notes to the Financial Statements for the Year Ended 17 May 2024
General information |
The company is a private company limited by share capital, incorporated in England. The company's registration number is 01185833.
The address of its registered office is:
These financial statements were authorised for issue by the
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'.
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 presented in Sterling (£).
Exemption from preparing group accounts
Going concern
The financial statements have been prepared on the going concern basis. The directors assessment of going concern is included in the Directors' Report on page 5 of the financial statements.
Lawrence Hunt & Co Limited
Notes to the Financial Statements for the Year Ended 17 May 2024
Critical accounting judgements and 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 is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
The key sources of judgements, estimates and assumptions about the carrying values of assets and liabilities that have a significant effect on the amounts recognised in the financial statements are detailed in the accounting policies below and relate to:
- Stocks
- Useful economic life of tangible fixed assets
- Useful economic life of intangible fixed assets
Revenue recognition
Turnover is recognised at the fair value of the consideration received or receivable for retail convenience store sales exclusive of value added tax in the ordinary course of the Company's activities.
The Company recognises turnover at the retail point of sale when the risks and rewards of owning the goods has passed to the customer, the amount of revenue can be measured reliably, it is probable that the associated economic benefits will flow to the entity and the costs incurred or to be incurred in respect of the transactions can be measured reliably.
Other operating income
Other operating income is represented by ancillary commissions and rental income received or receivable supplementary to the convenience retail store operations; commissions receivable, rental income, government grants receivable and miscellaneous sundry income.
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 income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.
Deferred 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.
Lawrence Hunt & Co Limited
Notes to the Financial Statements for the Year Ended 17 May 2024
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 less estimated residual value, other than land and properties under construction over their estimated useful lives, as follows:
Asset class |
Depreciation method and rate |
Freehold Property |
Straight line over the estimated useful economic life after residual value |
Leasehold Property |
Over the unexpired term of the lease |
Fixtures and fittings |
20% reducing balance basis |
Motor vehicles |
25% reducing balance basis |
Technological equipment |
33 1/3% straight line basis |
Goodwill
Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the Company’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each reporting period date.
Goodwill is capitalised and amortised over 10 years on a straight line basis in line with the directors' view of their useful economic life.
Intangible assets
Intangible assets are measured at cost, less any subsequent accumulated amortisation and subsequent accumulated impairment losses.
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 basis |
Franchises |
Over the life of the franchise agreement. |
Investments
Fixed asset investments in subsidiaries are accounted for at cost less impairment.
Current asset investments are accounted for at fair value.
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
Lawrence Hunt & Co Limited
Notes to the Financial Statements for the Year Ended 17 May 2024
Stocks
Retail stock is valued at purchase cost (net of VAT). Full provision is made for obsolete or slow moving stocks.
In previous years, and prior to the full implementation of the continuous stock system and related controls, retail stock was valued at selling price (net of VAT) less an estimated gross margin which, in the opinion of the directors, gave a valuation approximating to actual cost, and is considered to be lower than net realisable value.
Trade creditors
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.
Provisions
Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that the Company will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation.
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.
Share capital
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.
Dividends
Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the Company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
The company operates two defined contribution pension schemes. The assets of the scheme are held separately from those of the company. The annual contributions to the defined contribution plans are recognised as employee benefit expense when they are due and are charged to the Profit and Loss account. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
Lawrence Hunt & Co Limited
Notes to the Financial Statements for the Year Ended 17 May 2024
Financial instruments
Basic financial instruments, including fixed asset investments, cash and bank balances, debtors, creditors and loans, are initially recognised at transaction price, 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. Such assets are subsequently carried at amortised cost using the effective interest method. At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. Any impairment losses or reversals of any previous impairment losses are recognised in the profit and loss.
Other financial instruments, including current asset investments, 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 recognsed in profit and loss.
Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party or (c) control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions.
Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires.
Turnover |
The analysis of the company's revenue for the year from continuing operations is as follows:
2024 |
2023 |
|
UK Sale of goods |
|
|
Other operating income |
The analysis of the company's other operating income for the year is as follows:
2024 |
2023 |
|
Miscellaneous other operating income |
|
|
Lawrence Hunt & Co Limited
Notes to the Financial Statements for the Year Ended 17 May 2024
Operating profit |
Arrived at after charging/(crediting)
2024 |
2023 |
|
Depreciation expense |
|
|
Amortisation expense |
|
|
Operating lease expense - property |
|
|
Operating lease expense - other |
108,405 |
99,761 |
Profit on disposal of property, plant and equipment |
( |
( |
Auditor's remuneration - The audit of the company's annual accounts |
23,000 |
22,000 |
Auditor's remuneration - Tax services |
4,500 |
4,500 |
Auditor's remuneration - advice services |
20,500 |
16,500 |
Other interest receivable and similar income |
2024 |
2023 |
|
Other finance income |
|
|
Interest payable and similar expenses |
2024 |
2023 |
|
Interest on bank overdrafts and borrowings |
|
- |
Other interest payable on loans under 1 year |
|
|
|
|
Staff costs |
The aggregate payroll costs (including directors' remuneration) were as follows:
2024 |
2023 |
|
Wages and salaries |
|
|
Social security costs |
|
|
Pension costs, defined contribution scheme |
|
|
Other employee expense |
|
|
|
|
Lawrence Hunt & Co Limited
Notes to the Financial Statements for the Year Ended 17 May 2024
The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:
2024 |
2023 |
|
Administration and support |
|
|
Distribution |
|
|
Other departments |
|
|
|
|
Directors' remuneration |
The directors' remuneration for the year was as follows:
2024 |
2023 |
|
Remuneration |
|
|
Contributions paid to money purchase schemes |
|
|
418,378 |
440,615 |
During the year the number of directors who were receiving benefits and share incentives was as follows:
2024 |
2023 |
|
Accruing benefits under money purchase pension scheme |
|
|
In respect of the highest paid director:
2024 |
2023 |
|
Remuneration |
|
|
Company contributions to money purchase pension schemes |
|
|
Auditors' remuneration |
2024 |
2023 |
|
Audit of the financial statements |
|
|
Other fees to auditors |
||
Taxation compliance services |
|
|
All other non-audit services |
|
|
|
|
Included within pension contributions are fees paid to the auditor of £1,250 (2023: £1,500) which relate to the audit fees of The Lawrence Hunt Pension Scheme.
Lawrence Hunt & Co Limited
Notes to the Financial Statements for the Year Ended 17 May 2024
Taxation |
Tax charged/(credited) in the profit and loss account
2024 |
2023 |
|
Current taxation |
||
UK corporation tax |
|
|
Deferred taxation |
||
Arising from origination and reversal of timing differences |
|
|
Tax expense in the income statement |
|
|
The tax on profit before tax for the year is the same as the standard rate of corporation tax in the UK (2023 - the same as the standard rate of corporation tax in the UK) of
The differences are reconciled below:
2024 |
2023 |
|
Profit before tax |
|
|
Corporation tax at standard rate |
|
|
Tax decrease from effect of capital allowances and depreciation |
( |
( |
Tax increase from other short-term timing differences |
|
|
Effect of expense not deductible in determining taxable profit (tax loss) |
(75,865) |
(75,530) |
Other tax effects for reconciliation between accounting profit and tax expense (income) |
28,237 |
33,301 |
Total tax charge |
|
|
Deferred tax
Deferred tax assets and liabilities
2024 |
Asset |
Liability |
Difference between accumulated depreciation and amortisation and capital allowances |
- |
|
- |
|
2023 |
Asset |
Liability |
Difference between accumulated depreciation and amortisation and capital allowances |
- |
|
- |
|
Lawrence Hunt & Co Limited
Notes to the Financial Statements for the Year Ended 17 May 2024
Intangible assets |
Goodwill |
Franchise |
Total |
|
Cost or valuation |
|||
At 18 May 2023 |
|
|
|
At 17 May 2024 |
|
|
|
Amortisation |
|||
At 18 May 2023 |
|
|
|
Amortisation charge |
|
|
|
At 17 May 2024 |
|
|
|
Carrying amount |
|||
At 17 May 2024 |
|
|
|
At 17 May 2023 |
|
|
|
Amortisation of intangible fixed assets is included in administrative expenses.
The aggregate amount of research and development expenditure recognised as an expense during the period is £- (2023 - £-).
Lawrence Hunt & Co Limited
Notes to the Financial Statements for the Year Ended 17 May 2024
Tangible Assets |
Freehold property |
Leasehold property |
Fixtures and fittings |
Technical equipment |
Motor vehicles |
Total |
|
Cost or valuation |
||||||
At 18 May 2023 |
|
|
|
|
|
|
Additions |
|
|
|
|
|
|
Disposals |
( |
- |
( |
- |
( |
( |
At 17 May 2024 |
|
|
|
|
|
|
Depreciation |
||||||
At 18 May 2023 |
|
|
|
|
|
|
Charge for the year |
|
|
|
|
|
|
Eliminated on disposal |
( |
- |
( |
- |
( |
( |
At 17 May 2024 |
|
|
|
|
|
|
Carrying amount |
||||||
At 17 May 2024 |
|
|
|
|
|
|
At 17 May 2023 |
|
|
|
|
|
|
Lawrence Hunt & Co Limited
Notes to the Financial Statements for the Year Ended 17 May 2024
Revaluation
The historical cost of the Walmer Bridge retail unit assets in 1987 before revaluation by independent valuer was £55,748. These Walmer Bridge assets were revalued in 1987 to a market value of £79,500.
Investments in subsidiaries, joint ventures and associates |
2024 |
2023 |
|
Investments in subsidiaries |
|
|
Subsidiaries |
£ |
Cost or valuation |
|
At 18 May 2023 |
|
Provision |
|
Carrying amount |
|
At 17 May 2024 |
|
At 17 May 2023 |
|
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 |
||||
|
40B Liverpool Road
England |
|
|
|
Longton Properties Limited |
Stocks |
2024 |
2023 |
|
Finished goods and goods for resale |
|
|
Lawrence Hunt & Co Limited
Notes to the Financial Statements for the Year Ended 17 May 2024
Debtors |
2024 |
2023 |
|
Other debtors |
|
|
Prepayments |
|
|
|
|
Details of non-current trade and other debtors
£519 (2023 -£6,365) of other receivables is classified as non current.
Current asset investments |
2024 |
2023 |
|
Other investments |
|
|
Cash and cash equivalents |
2024 |
2023 |
|
Cash on hand |
|
|
Cash at bank |
|
|
Short-term deposits |
|
|
|
|
Lawrence Hunt & Co Limited
Notes to the Financial Statements for the Year Ended 17 May 2024
Creditors |
Note |
2024 |
2023 |
|
Due within one year |
|||
Trade creditors |
|
|
|
Amounts owed to group undertakings and undertakings in which the company has a participating interest |
|
|
|
Corporation tax |
289,248 |
311,604 |
|
PAYE and social security |
|
|
|
VAT |
412,630 |
360,027 |
|
Accrued expenses |
|
|
|
Pension contributions unpaid |
58,130 |
68,543 |
|
Directors current account |
939,671 |
176,601 |
|
Wages and salaries |
165,977 |
156,244 |
|
Other creditors |
36,789 |
53,646 |
|
|
|
Deferred tax and other provisions |
Deferred tax |
Total |
|
At 18 May 2023 |
|
|
Additional provisions |
|
|
At 17 May 2024 |
|
|
|
Pension and other schemes |
Defined contribution pension scheme
The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £
Contributions totalling £
Lawrence Hunt & Co Limited
Notes to the Financial Statements for the Year Ended 17 May 2024
Share capital |
Allotted, called up and fully paid shares
2024 |
2023 |
|||
No. |
£ |
No. |
£ |
|
|
|
48,362 |
|
48,362 |
|
|
24,000 |
|
24,000 |
|
|
8,000 |
|
8,000 |
|
|
10,000 |
|
10,000 |
|
|
3,258 |
|
3,258 |
|
|
10,000 |
|
10,000 |
|
|
|
|
Rights, preferences and restrictions
Ordinary shares have the following rights, preferences and restrictions: |
A Preferred Ordinary shares have the following rights, preferences and restrictions: |
B Preferred Ordinary shares have the following rights, preferences and restrictions: |
C Preferred Ordinary shares have the following rights, preferences and restrictions: |
D Preferred Ordinary shares have the following rights, preferences and restrictions: |
Lawrence Hunt & Co Limited
Notes to the Financial Statements for the Year Ended 17 May 2024
E Preferred Ordinary shares have the following rights, preferences and restrictions: |
Obligations under leases and hire purchase contracts |
Operating leases
The total of future minimum lease payments is as follows:
2024 |
2023 |
|
Not later than one year |
|
|
Later than one year and not later than five years |
|
|
Later than five years |
|
|
|
|
The amount of non-cancellable operating lease payments recognised as an expense during the year was £
Operating leases - lessor
The total of future minimum lease payments is as follows:
2024 |
2023 |
|
Not later than one year |
|
|
Later than one year and not later than five years |
|
|
Later than five years |
|
|
|
|
Total contingent rents recognised as income in the period are £Nil (2023 - £Nil).
The leases in place are on general commercial leasing terms with set rent review periods and no contingent rent.
Dividends |
2024 |
2023 |
|||
£ |
£ |
|||
Dividends paid |
2,637,852 |
1,013,947 |
||
Lawrence Hunt & Co Limited
Notes to the Financial Statements for the Year Ended 17 May 2024
Notes to the statement of cash flows |
Cash outflows from financing activities
2024 |
2023 |
|
Dividends paid |
2,637,852 |
1,013,947 |
Dividends - non-cash flow items |
(736,405) |
(73,769) |
Interest - non-cash flow items |
(26,665) |
- |
Cash outflows from financing activities |
1,874,782 |
940,178 |
The cash flow statement for the current year and comparative year have been adjusted to reflect non-cash payment outflow of dividends and interest paid at the year end date.
Lawrence Hunt & Co Limited
Notes to the Financial Statements for the Year Ended 17 May 2024
Analysis of changes in net debt
At 18 May 2023 |
Cash flows |
Other non-cash changes |
Changes in market value |
At 17 May 2024 |
|
Cash and cash equivalents |
|||||
Cash |
2,426,595 |
(109,061) |
- |
- |
2,317,534 |
Other assets |
|||||
Current asset investments |
706,410 |
- |
(5,102) |
7,562 |
708,870 |
|
( |
( |
7,562 |
|
|
|
Lawrence Hunt & Co Limited
Notes to the Financial Statements for the Year Ended 17 May 2024
Related party transactions |
Key management compensation, including directors remuneration
2024 |
2023 |
|
Salaries and other short term employee benefits |
|
|
Post-employment benefits |
|
|
|
|
Summary of transactions with entities / persons with joint control or significant interest
The retail unit at Longton is owned privately by close family members of a company director. One of the family members is also a shareholder of the company. The retail unit is rented to the company on a commercial basis and the company paid rent of £24,000 (2023: £24,000).
Summary of transactions with other related parties
|
|
Loans from related parties
2024 |
Subsidiary |
Total |
At start of period |
|
|
At end of period |
|
|
|
2023 |
Subsidiary |
Total |
At start of period |
|
|
At end of period |
|
|
|
Lawrence Hunt & Co Limited
Notes to the Financial Statements for the Year Ended 17 May 2024
Terms of loans from related parties
Financial instruments |
Categorisation of financial instruments
2024 |
2023 |
|
Financial assets measured at fair value through profit or loss |
|
|
Financial assets measured at fair value
Current asset investments
Fair value is determined by the investment provider as being the value of the investment at the year end date.
The fair value is £708,870 (2023 - £706,410) and the change in value included in profit or (loss) is £2,460 (2023 - £14,605).