Company Registration No. 08437790 (England and Wales)
LGL ENERGY LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
LGL ENERGY LIMITED
COMPANY INFORMATION
Directors
A B Lawrence
S C Lawrence
Company number
08437790
Registered office
Meadow Barn
Drury Square
Beeston
Norfolk
PE32 2NA
Auditor
TC Group
Brightfield Business Hub
Bakewell Road
Orton Southgate
Peterborough
Cambridgeshire
PE2 6XU
LGL ENERGY LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 8
Group profit and loss account
9
Group statement of comprehensive income
10
Group balance sheet
11 - 12
Company balance sheet
13
Group statement of changes in equity
14
Company statement of changes in equity
15
Group statement of cash flows
16
Company statement of cash flows
17
Notes to the financial statements
18 - 39
LGL ENERGY LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MAY 2024
- 1 -

The directors present the strategic report for the year ended 31 May 2024.

 

Principal activity

The principal activity of the group is that of garage forecourt sales.

Fair review of the business
Before I report on the Company, I would like to express my deepest thanks to all of the directors, management and staff of our enterprise. They all continue to do a tremendous job, and their dedication, enthusiasm and loyalty have been humbling and are integral to our success.

I would also like to thank our customers and business partners for the relationships which in many cases span many years. These are crucial to our success, and we value them very highly.

Most years trading conditions are challenging but I believe it is fair to say that although these persevere, yet we have thrived with these trials.

I am pleased to report that during the year ended May 2024, Lawrences Garages (London) Ltd experienced some mixed trading, especially in the fuel category, but ensured a net profit increase of over 80% from last year's figure.
Each site made a positive profit contribution and played its part in our development and with strategic developments; Lawrences ensured an excellent return for its shareholders.

Harleston Service Station continues to exceed expectations with robust returns generating a strong contribution.

Sheringham Service Station continues to experience shop competition from local sources, but we are still delighted with the positive effect it has had our returns.
A new jet wash has been developed, and we are content with the project.

Sholing Service Station's new store continues to evolve with new cutting-edge technology and is a quality retail experience. The net profit has increased slightly compared with last year, its yield continues to be exemplary.

Beccles, our sole stand-alone convenience store continues to increase sales and provided a small profit for the company

Our tenants continue to contribute fully, with a small increase this year.

Clearly, there are risks and uncertainties in any business but our profit in a difficult environment was still robust, especially as we have experienced continued difficult times especially in fuel sales. However, the efforts of all have been extremely beneficial.

We anticipate continuing the direct operation of the remainder of the sites.
We believe that this will be a very difficult year as conditions continue to be prejudicial to trade, but we believe that we are in good shape for the taxing times ahead. We hope that a number of strategic investments in the existing estate and purchases will provide further returns for the company.
LGL ENERGY LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 2 -
The Group's key financial and other performance indicators during the year were as follows:
Unit
2024
2022
Turnover
£
27,123,340
28,269,852
Gross profit margin
%
9
9
Profit before tax
£
2,365,237
1,805,672

The groups' principal financial instruments comprise bank balances, bank overdrafts, trade debtors, trade creditors, loans to the business and finance lease agreements. The main purpose of these instruments is to finance the groups' operations.

 

In respect of bank balances, the liquidity risk is managed by maintaining a balance between the continuity of funding and flexibility through the use of overdrafts at floating rates of interest. All of the groups' cash balances are held in such a way that achieves a competitive rate of interest.

 

Trade debtors are managed in respect of credit and cash flow risk by policies concerning the credit offered to customers and the regular monitoring of amounts outstanding for both time and credit limits. The amounts presented in the balance sheet are net of allowances for doubtful debtors.

 

Trade creditors' liquidity risk is managed by ensuring sufficient funds are available to meet amounts due.

 

Loans comprise loans from the directors and from financial institutions. The interest rate on loans from financial institutions is variable, but the monthly repayments are fixed. The group manages the liquidity risk by ensuring that there are sufficient funds to meet the payments.

 

On behalf of the board

A B Lawrence
Director
19 February 2025
LGL ENERGY LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MAY 2024
- 3 -

The directors present their annual report and financial statements for the year ended 31 May 2024.

Directors

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

A B Lawrence
S C Lawrence
Financial instruments

Details of financial instruments are provided in the strategic report.

Statement of disclosure to auditor

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

 

On behalf of the board
A B Lawrence
Director
19 February 2025
LGL ENERGY LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MAY 2024
- 4 -

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 group and company, and of the profit or loss of the group 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 group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

LGL ENERGY LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF LGL ENERGY LIMITED
- 5 -
Opinion

We have audited the financial statements of LGL Energy Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 May 2024 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows, the company 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 FRS 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 group's and parent 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.

LGL ENERGY LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF LGL ENERGY LIMITED
- 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 group and the parent 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:

 

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 parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

LGL ENERGY LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF LGL ENERGY LIMITED
- 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. 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.

Extent to which the audit was considered capable of detecting irregularities, including fraud

The objectives of our audit, in respect to fraud, are: to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses; and to respond appropriately to fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and its management.

 

Our approach was as follows:

 

LGL ENERGY LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF LGL ENERGY LIMITED
- 8 -
Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Where the risk was considered to be higher, we performed audit procedures to address each identified fraud risk. These procedures included: testing manual journals; reviewing the financial statement disclosures and testing to supporting documentation; performing analytical procedures; and enquiring of management, and were designed to provide reasonable assurance that the financial statements were free from fraud or error.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

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 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.

John Grant (Senior Statutory Auditor)
For and on behalf of TC Group
19 February 2025
Office: Peterborough
LGL ENERGY LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 MAY 2024
- 9 -
2024
2023
Notes
£
£
Turnover
3
27,123,340
28,269,852
Cost of sales
(24,590,791)
(25,691,796)
Gross profit
2,532,549
2,578,056
Administrative expenses
(966,084)
(1,059,818)
Other operating income
380,094
311,584
Operating profit
4
1,946,559
1,829,822
Interest receivable and similar income
8
29,000
7,787
Interest payable and similar expenses
9
(5,322)
(31,937)
Amounts written off investments
10
395,000
-
Profit before taxation
2,365,237
1,805,672
Tax on profit
11
(609,788)
(523,393)
Profit for the financial year
26
1,755,449
1,282,279
LGL ENERGY LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MAY 2024
- 10 -
2024
2023
£
£
Profit for the year
1,755,449
1,282,279
Other comprehensive income
Revaluation of tangible fixed assets
7,380,838
-
0
Tax relating to other comprehensive income
(1,845,210)
(165,295)
Other comprehensive income for the year
5,535,628
(165,295)
Total comprehensive income for the year
7,291,077
1,116,984
LGL ENERGY LIMITED
GROUP BALANCE SHEET
AS AT
31 MAY 2024
31 May 2024
- 11 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
13
15,218,841
7,871,897
Investment properties
14
4,305,000
3,910,000
19,523,841
11,781,897
Current assets
Stocks
17
597,981
548,173
Debtors
18
606,190
552,065
Cash at bank and in hand
3,517,932
2,115,935
4,722,103
3,216,173
Creditors: amounts falling due within one year
19
(1,925,044)
(1,638,456)
Net current assets
2,797,059
1,577,717
Total assets less current liabilities
22,320,900
13,359,614
Creditors: amounts falling due after more than one year
20
(177,885)
(197,116)
Provisions for liabilities
Deferred tax liability
23
3,491,729
1,531,354
(3,491,729)
(1,531,354)
Net assets
18,651,286
11,631,144
Capital and reserves
Called up share capital
24
17,000
17,000
Revaluation reserve
26
7,838,173
2,302,545
Other reserves
26
3,630,456
3,630,456
Profit and loss reserves
26
7,165,657
5,681,143
Total equity
18,651,286
11,631,144
LGL ENERGY LIMITED
GROUP BALANCE SHEET (CONTINUED)
AS AT
31 MAY 2024
31 May 2024
- 12 -
The financial statements were approved by the board of directors and authorised for issue on 19 February 2025 and are signed on its behalf by:
19 February 2025
A B Lawrence
Director
LGL ENERGY LIMITED
COMPANY BALANCE SHEET
AS AT 31 MAY 2024
31 May 2024
- 13 -
2024
2023
Notes
£
£
£
£
Fixed assets
Investments
15
8,500
8,500
Current assets
Debtors
18
70,001
-
0
Cash at bank and in hand
88,915
262,577
158,916
262,577
Creditors: amounts falling due within one year
19
(148,921)
(252,586)
Net current assets
9,995
9,991
Net assets
18,495
18,491
Capital and reserves
Called up share capital
24
17,000
17,000
Profit and loss reserves
26
1,495
1,491
Total equity
18,495
18,491

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £270,939 (2023 - £332,140 profit).

The financial statements were approved by the board of directors and authorised for issue on 19 February 2025 and are signed on its behalf by:
19 February 2025
A B Lawrence
Director
Company Registration No. 08437790
LGL ENERGY LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MAY 2024
- 14 -
Share capital
Revaluation reserve
Other reserves
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 June 2022
17,000
2,467,840
3,630,456
4,731,004
10,846,300
Year ended 31 May 2023:
Profit for the year
-
-
-
1,282,279
1,282,279
Other comprehensive income:
Tax relating to other comprehensive income
-
(165,295)
-
-
0
(165,295)
Total comprehensive income for the year
-
(165,295)
-
1,282,279
1,116,984
Dividends
12
-
-
-
(332,140)
(332,140)
Balance at 31 May 2023
17,000
2,302,545
3,630,456
5,681,143
11,631,144
Year ended 31 May 2024:
Profit for the year
-
-
-
1,755,449
1,755,449
Other comprehensive income:
Revaluation of tangible fixed assets
-
7,380,838
-
-
7,380,838
Tax relating to other comprehensive income
-
(1,845,210)
-
-
0
(1,845,210)
Total comprehensive income for the year
-
5,535,628
-
1,755,449
7,291,077
Dividends
12
-
-
-
(270,935)
(270,935)
Balance at 31 May 2024
17,000
7,838,173
3,630,456
7,165,657
18,651,286
LGL ENERGY LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MAY 2024
- 15 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 June 2022
17,000
1,491
18,491
Year ended 31 May 2023:
Profit and total comprehensive income for the year
-
332,140
332,140
Dividends
12
-
(332,140)
(332,140)
Balance at 31 May 2023
17,000
1,491
18,491
Year ended 31 May 2024:
Profit and total comprehensive income for the year
-
270,939
270,939
Dividends
12
-
(270,935)
(270,935)
Balance at 31 May 2024
17,000
1,495
18,495
LGL ENERGY LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MAY 2024
- 16 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
30
2,269,683
1,780,595
Interest paid
(5,322)
(31,937)
Income taxes paid
(345,617)
(132,970)
Net cash inflow from operating activities
1,918,744
1,615,688
Investing activities
Purchase of tangible fixed assets
(252,550)
(293,959)
Proceeds on disposal of tangible fixed assets
-
8,300
Interest received
29,000
7,787
Net cash used in investing activities
(223,550)
(277,872)
Financing activities
Repayment of bank loans
(19,231)
(663,406)
Payment of finance leases obligations
(3,031)
(24,019)
Dividends paid to equity shareholders
(270,935)
(332,140)
Net cash used in financing activities
(293,197)
(1,019,565)
Net increase in cash and cash equivalents
1,401,997
318,251
Cash and cash equivalents at beginning of year
2,115,935
1,797,684
Cash and cash equivalents at end of year
3,517,932
2,115,935
LGL ENERGY LIMITED
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MAY 2024
- 17 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash (absorbed by)/generated from operations
31
(173,662)
247,513
Investing activities
Dividends received
270,935
332,140
Net cash generated from investing activities
270,935
332,140
Financing activities
Dividends paid to equity shareholders
(270,935)
(332,140)
Net cash used in financing activities
(270,935)
(332,140)
Net (decrease)/increase in cash and cash equivalents
(173,662)
247,513
Cash and cash equivalents at beginning of year
262,577
15,064
Cash and cash equivalents at end of year
88,915
262,577
LGL ENERGY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
- 18 -
1
Accounting policies
Company information

LGL Energy Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Meadow Barn, Drury Square, Beeston, Norfolk, PE32 2NA.

 

The group consists of LGL Energy Limited and all of its subsidiaries.

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, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

1.2
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company LGL Energy Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 31 May 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

LGL ENERGY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
1
Accounting policies
(Continued)
- 19 -

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

1.4
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group has 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.

1.5
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

1.6
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.

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:

Freehold land
Not depreciated
Freehold buildings
2% straight line basis
Leasehold land
Not depreciated
Leasehold buildings
Straight line basis over 13 years
Plant and equipment
5% - 33% straight line basis
Motor vehicles
20% straight line basis

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 recognised in the profit and loss account.

1.7
Investment properties

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.

 

LGL ENERGY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
1
Accounting policies
(Continued)
- 20 -
1.8
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

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

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

 

Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.

 

Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.

 

In the parent company financial statements, investments in associates are accounted for at cost less impairment.

Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

1.9
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible 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.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

LGL ENERGY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
1
Accounting policies
(Continued)
- 21 -

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.

1.10
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.

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.

1.11
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.12
Financial instruments

The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and 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.

LGL ENERGY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
1
Accounting policies
(Continued)
- 22 -
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.

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 group 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 group after deducting all of its liabilities.

LGL ENERGY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
1
Accounting policies
(Continued)
- 23 -
Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, 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.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.13
Equity instruments

Equity instruments issued by the group 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 group.

1.14
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 group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

LGL ENERGY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
1
Accounting policies
(Continued)
- 24 -
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 if, and only if, there is 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.

1.15
Leases

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

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

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 leased asset are consumed.

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

1.16

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

LGL ENERGY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 25 -
2
Judgements and key sources of estimation uncertainty

In the application of the group’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.

 

Investment properties are valued at open market value. This is based on the opinion of the director at the year end but based on formal valuations prepared by an independent qualified valuer previously.

3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Sale of goods
27,123,340
28,269,852
2024
2023
£
£
Other significant revenue
Interest income
29,000
7,787
Rent receivable
309,877
273,751
Other operating income
70,213
37,833
4
Operating profit
2024
2023
£
£
Operating profit for the year is stated after charging:
Depreciation of owned tangible fixed assets
286,444
240,685
(Profit)/loss on disposal of tangible fixed assets
-
1,550
Operating lease charges
13,067
65,143
LGL ENERGY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 26 -
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
Audit of these financial statements
18,780
18,810
6
Employees

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

Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
Site managers
8
13
-
-
Head office
3
4
-
-
Forecourt cashiers
52
48
-
-
Directors
4
3
-
-
Total
67
68
-
0
-
0

Their aggregate remuneration comprised:

Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
1,189,090
1,187,888
-
0
-
0
Social security costs
91,226
85,930
-
-
Pension costs
162,715
113,375
-
0
-
0
1,443,031
1,387,193
-
0
-
0
LGL ENERGY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 27 -
7
Directors' remuneration

The directors' remuneration for the year was as follows:

2024
2023
£
£
Remuneration
8,000
28,261
Contributions paid to money purchase schemes
70,000
40,000
78,000
68,261
8
Interest receivable and similar income
2024
2023
£
£
Interest income
Other interest income
29,000
7,787
9
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
5,322
30,662
Other finance costs:
Interest on finance leases and hire purchase contracts
-
1,275
Total finance costs
5,322
31,937
10
Amounts written off investments
2024
2023
£
£
Changes in the fair value of investment properties
395,000
-
11
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
494,623
345,685
LGL ENERGY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
11
Taxation
2024
2023
£
£
(Continued)
- 28 -
Deferred tax
Origination and reversal of timing differences
115,165
177,708
Total tax charge
609,788
523,393

The actual charge 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
2,365,237
1,805,672
Expected tax charge based on the standard rate of corporation tax in the UK of 25% (2023: 19.00%)
591,309
343,078
Tax effect of expenses that are not deductible in determining taxable profit
1,157
11,119
Effect of change in corporation tax rate
-
152,834
Permanent capital allowances in excess of depreciation
907
-
0
Depreciation on assets not qualifying for tax allowances
16,415
-
0
Other permanent differences
-
0
16,362
Taxation charge
609,788
523,393

In addition to the amount charged to the profit and loss account, the following amounts relating to tax have been recognised directly in other comprehensive income:

2024
2023
£
£
Deferred tax arising on:
Revaluation of property
1,845,210
165,295
LGL ENERGY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 29 -
12
Dividends
2024
2023
Recognised as distributions to equity holders:
£
£
Final paid
270,935
332,140
13
Tangible fixed assets
Group
Freehold land
Freehold buildings
Leasehold buildings
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 June 2023
6,824,938
250,000
1,934,998
175,827
9,185,763
Additions
-
0
-
0
252,550
-
0
252,550
Disposals
-
0
-
0
(12,970)
-
0
(12,970)
Revaluation
7,380,838
-
0
-
0
-
0
7,380,838
At 31 May 2024
14,205,776
250,000
2,174,578
175,827
16,806,181
Depreciation and impairment
At 1 June 2023
226,207
35,266
1,004,757
47,636
1,313,866
Depreciation charged in the year
51,852
19,236
181,792
33,564
286,444
Eliminated in respect of disposals
-
0
-
0
(12,970)
-
0
(12,970)
At 31 May 2024
278,059
54,502
1,173,579
81,200
1,587,340
Carrying amount
At 31 May 2024
13,927,717
195,498
1,000,999
94,627
15,218,841
At 31 May 2023
6,598,731
214,734
930,241
128,191
7,871,897
The company had no tangible fixed assets at 31 May 2024 or 31 May 2023.
LGL ENERGY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
13
Tangible fixed assets
(Continued)
- 30 -

Freehold land and buildings

The gross book value of freehold land and buildings includes £3,152,259 (2023 - £3,152,259) of depreciable assets.

 

Leased assets

Included within the net book value of tangible is £nil (2023 - £21,536) in respect of assets held under finance leases and similar hire purchase contracts. Depreciation for the year on these assets was £6,624 (2023 - £6,624).

 

Revaluations

The freehold land & buildings class of fixed assets was revalued on 15 May 2024 by Avison Young who is external to the company. The basis of this valuation was on an existing use basis. This class of asset has a current value of £13,927,717 (2023 - £6,598,731) and a carrying historical cost of £3,606,502 (2023 - £3,606,502). Historical cost includes the cost of assets that are yet to be revalued. The depreciation that would have been charged on historical cost to date is £312,236 (2023 - £279,956).

 

Security pledged

The total net book value of the company's tangible fixed assets was pledged as security over the company's loans and borrowings at the end of the current and prior year.                                

14
Investment property
Group
Company
2024
2024
£
£
Fair value
At 1 June 2023 and 31 May 2024
3,910,000
-
Net gains or losses through fair value adjustments
395,000
-
At 31 May 2024
4,305,000
-

On 15 May 2024, a professional valuation was carried out on all investment properties by Avison Young and the combined valuation of these properties were £4,305,000. The directors is of the opinion that the difference between the value of properties at the 31 May 2024 is immaterially different to the valuations carried out on 15 May 2024 by the professional valuer. This class of assets has a current value of £4,305,000 (2023 - £3,910,000) and a carrying amount at historical cost of £2,920,673 (2023 - £2,920,673). The depreciation on this historical cost to date would be £636,195 (2023 - £627,806).

15
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
16
-
0
-
0
8,500
8,500
LGL ENERGY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
15
Fixed asset investments
(Continued)
- 31 -
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 June 2023 and 31 May 2024
8,500
Carrying amount
At 31 May 2024
8,500
At 31 May 2023
8,500
16
Subsidiaries

Details of the company's subsidiaries at 31 May 2024 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Lawrences Garages (London) Limited
England & Wales
Ordinary
100.00

Lawrences Garages (London) Limited

The principal activity of Lawrences Garages (London) Limited is that of garage forecourt sales.

17
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Goods for resale
597,981
548,173
-
0
-
0

Group

The total value of the group's stock was pledged as security over the group's loans and borrowings at the end of the current and prior year.

LGL ENERGY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 32 -
18
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
282,193
49,934
1
-
0
Amounts owed by group undertakings
-
-
70,000
-
Other debtors
204,278
387,404
-
0
-
0
Prepayments and accrued income
119,719
114,727
-
0
-
0
606,190
552,065
70,001
-
19
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans
21
19,231
19,231
-
0
-
0
Obligations under finance leases
22
-
0
3,031
-
0
-
0
Trade creditors
965,011
712,455
-
0
-
0
Corporation tax payable
494,691
345,685
-
0
-
0
Other taxation and social security
156,321
167,995
-
-
Other creditors
153,076
258,218
148,921
252,586
Accruals and deferred income
136,714
131,841
-
0
-
0
1,925,044
1,638,456
148,921
252,586
20
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts
21
177,885
197,116
-
0
-
0
LGL ENERGY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 33 -
21
Loans and overdrafts
Group
Company
2024
2023
2024
2023
£
£
£
£
Bank loans
197,116
216,347
-
0
-
0
Payable within one year
19,231
19,231
-
0
-
0
Payable after one year
177,885
197,116
-
0
-
0

Group

 

Bank borrowings at the year end are secured against land and buildings that are held by the company.

 

Bank loans have been secured on the following:

 

A fixed charge to Barclays Bank plc over Harleston Service Station, 52 London Road, Harlestone, Norfolk (created 09/11/98)

 

A fixed charge to Barclays Bank plc over Sheringham Service Station, Weybourne Road, Sheringham, Norfolk (created 19/11/98)

 

A fixed charge to Barclays Bank plc over Firs Service Station, 162 Cromer Road, Norwich, NR6 6XA (created 17/01/02)

 

A fixed charge to Barclays Bank plc over Averills Service Station, 3 Fakenham Road, Drayton, Norwich, NR8 6PI (created 27/03/08)

 

A fixed charge to Barclays Bank plc over BP Sholing Service Station, 420 Bursledon Road, Sholing, Southampton, SO19 8NG (created 09/02/16)

 

A deed of charge to Barclays Bank plc over all deposits in the company's Barclays business premium account 60067245 (created 13/04/93)

 

A debenture in favour of Barclays Bank plc with a fixed and floating charge over the undertakings and all property and assets present and future including goodwill, book debts, uncalled capital buildings, fixtures and fixed plant and machinery (created 21/06/91)

 

LGL ENERGY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 34 -
22
Finance lease obligations
The total of future minimum lease payments is as follows:
Group
Company
2024
2023
2024
2023
£
£
£
£
Not later than one year
-
3,031
-
0
-
0
Hire purchase and finance lease liabilities are secured against the assets to which they relate.
23
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

Liabilities
Liabilities
2024
2023
Group
£
£
Accelerated capital allowances
294,436
278,019
Revaluations
2,533,939
688,730
Investment property
663,354
564,605
3,491,729
1,531,354
The Company has no deferred tax assets or liabilities.
Group
Company
2024
2024
Movements in the year:
£
£
Liability at 1 June 2023
1,531,354
-
Charge to profit or loss
115,165
-
Charge to other comprehensive income
1,845,210
-
Liability at 31 May 2024
3,491,729
-
LGL ENERGY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 35 -
24
Share capital
Group and company
2024
2023
2024
2023
No
No
£
£
Alotted, called up and fully paid shares
Ordinary shares of £1 each
8,500
8,500
8,500
8,500
Non voting ordinary shares of £1 each
8,500
8,500
8,500
8,500
17,000
17,000
17,000
17,000
25
Pension and other schemes

Defined contribution pension scheme

The group operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the group to the scheme and amounted to £162,715 (2023 - £113,375)

LGL ENERGY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 36 -
26
Reserves

Group

Share capital

 

Represents the nominal value of shares issued by the company at the year end.

 

Revaluation reserve

 

Includes all cumulative surpluses on the revaluation of land and buildings.

 

Other reserves

 

Represents the net value of assets and liabilities in the subsidiary acquired when transferred on the merger basis less any permanent disposal of items included at the time of transfer.

 

Profit and loss account

 

Includes all current and prior period retained profits and losses at the balance sheet date as well as cumulative unrealised gains and losses of assets held for investment at fair value.

 

Company

Share capital

 

Represents the nominal value of shares issued by the company at the year end.

 

Profit and loss account

 

Includes all current and prior period retained profits and losses at the balance sheet date.

 

27
Operating lease commitments
The total of future minimum lease payments is as follows:
Group
Company
2024
2023
2024
2023
£
£
£
£
Not later than one year
-
1,278
-
-
-
1,278
-
-
The amount of non-cancellable operating lease payments recognised as an expense during the year was £12,849 (2023 - £65,143)
LGL ENERGY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
27
Operating lease commitments
(Continued)
- 37 -
Operating leases - lessor
The total of future minimum lease payments is as follows:
Group
Company
2024
2023
2024
2023
£
£
£
£
Not later than one year
305,000
265,000
-
-
Later than one year and not later than five years
915,000
1,060,000
-
-
1,220,000
1,325,000
-
-
Operating lease income relates to rent receivable on the Investment Properties. The leases have the option to use a break clause on 30/05/2028.
28
Related party transactions

Group

 

Summary of transactions with key management

The group paid rent to key management of £7,800 (2023 - £7,800) in the period. The group loaned £331,790 (2023 - £nil) to key management during the period. Interest of £nil (2023 - £472) was charged on these loans. Repayment of £8,778 (2023: £2,488) were made during the year. At the balance sheet date the amount due from key management was £36,778 (2023: £21,464) and the amount due to key management was £56,350 (2023 - £131,206).

 

During the year key management personnel received remuneration of £190,829 (2023 - £249,718).

 

During the year dividends were paid to key management personnel totalling £228,935 (2023 - £190,140).

 

Summary of transactions with entities with joint control or significant interest

During the period expenses amounting to £40,332 (2023 - £nil) were made by the group from Entities with Joint Control or Significant Influence. At the balance sheet date the amount due from Entities with Joint Control or Significant Influence was £157,839 (2023 - £153,670). Interest of £3,473 (2023 - £3,381) was charged on these loans.

 

During the year dividends were paid to Entities with Joint Control or Significant Influence totalling £42,000 (2023 - £142,000).

 

Company

 

Summary of transactions with key management

During the year dividends were paid to key management personnel totalling £228,935 (2023 - £190,140).

 

Summary of transactions with entities with joint control or significant interest

During the year dividends were paid to Entities with Joint Control or Significant Influence totalling £42,000 (2023 - £142,000).

LGL ENERGY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 38 -
29
Controlling party

The company is controlled by the directors.

30
Cash generated from group operations
2024
2023
£
£
Profit for the year after tax
1,755,449
1,282,279
Adjustments for:
Taxation charged
609,788
523,393
Finance costs
5,322
31,937
Investment income
(29,000)
(7,787)
(Gain)/loss on disposal of tangible fixed assets
-
1,550
Depreciation and impairment of tangible fixed assets
286,444
240,685
Other gains and losses
(395,000)
-
Movements in working capital:
Increase in stocks
(49,808)
(23,846)
Increase in debtors
(54,125)
(70,851)
Increase/(decrease) in creditors
140,613
(196,765)
Cash generated from operations
2,269,683
1,780,595
31
Cash (absorbed by)/generated from operations - company
2024
2023
£
£
Profit for the year after tax
270,939
332,140
Adjustments for:
Investment income
(270,935)
(332,140)
Movements in working capital:
(Increase)/decrease in debtors
(70,001)
58,820
(Decrease)/increase in creditors
(103,665)
188,693
Cash (absorbed by)/generated from operations
(173,662)
247,513
LGL ENERGY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 39 -
32
Analysis of changes in net funds - group
1 June 2023
Cash flows
31 May 2024
£
£
£
Cash at bank and in hand
2,115,935
1,401,997
3,517,932
Borrowings excluding overdrafts
(216,347)
19,231
(197,116)
Obligations under finance leases
(3,031)
3,031
-
1,896,557
1,424,259
3,320,816
33
Analysis of changes in net funds - company
1 June 2023
Cash flows
31 May 2024
£
£
£
Cash at bank and in hand
262,577
(173,662)
88,915
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