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REGISTERED NUMBER: 08203435 (England and Wales)










STRATEGIC REPORT, REPORT OF THE DIRECTOR AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED 28 FEBRUARY 2024

FOR

LF SOLUTIONS LIMITED

LF SOLUTIONS LIMITED (REGISTERED NUMBER: 08203435)






CONTENTS OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2024




Page

Company Information 1

Strategic Report 2

Report of the Director 3

Report of the Independent Auditors 5

Income Statement 9

Other Comprehensive Income 10

Statement of Financial Position 11

Statement of Changes in Equity 12

Statement of Cash Flows 13

Notes to the Statement of Cash Flows 14

Notes to the Financial Statements 15


LF SOLUTIONS LIMITED

COMPANY INFORMATION
FOR THE YEAR ENDED 28 FEBRUARY 2024







DIRECTOR: Mr F Kane





REGISTERED OFFICE: 6 Water End Barns
New Water End
Eversholt
Bedfordshire
MK17 9EA





REGISTERED NUMBER: 08203435 (England and Wales)





AUDITORS: AGK Partners
Chartered Accountants & Statutory Auditors
1 Kings Avenue
London
N21 3NA

LF SOLUTIONS LIMITED (REGISTERED NUMBER: 08203435)

STRATEGIC REPORT
FOR THE YEAR ENDED 28 FEBRUARY 2024

The director presents his strategic report for the year ended 28 February 2024.

REVIEW OF BUSINESS
The principle activities of the company are construction management and providing specialist civil engineering services.

The turnover for the year decreased by approximately 12.8% to £20,317,437 (2023: £23,299,749), mainly due to general economic conditions affecting the industry.

The gross profit has decreased to £1,879,735 from £2,044,103. The decrease in gross margin is in line with expectations.

The profit before tax for the year is £218,227 (2023: £270,151).

PRINCIPAL RISKS AND UNCERTAINTIES
The Directors systematically and actively assess and manage risk across all areas of the business. Risks are considered by the Directors as an intrinsic part of strategy setting and consideration of new opportunities.

The main risks are market/competition risk, financial risk and regulatory risk, as described below:
(i) Market/Competition Risk
A recession or significant slow-down in the UK economic recovery, leading to flat or negative valuation movements and/or stagflation pursuant to an external factor.

(ii) Financial Risk
The inability to obtain sufficient finance to fund the Company's growth strategy and operations arising from external
factors/events (including, but not limited to the Covid-19 pandemic) which impacts the ability to fund the delivery of the strategy and maintain a strong capital structure.

(iii) Regulatory Risk
Failure to meet current regulatory obligations and adapt to ongoing requirements. The Company's ability to anticipateand prepare for the future, understanding complexities of a changing regulatory landscape in which the Company operates in.

KEY PERFORMANCE INDICATORS
The Director consider the following as key performance indicators:

20242023

£ £
Turnover20,317,43723,299,749
Cost of sales18,437,70221,255,646
Gross Profit1,879,7352,044,103
Gross Margin9.25%8.77%
Profit before tax218,227270,151
Net Assets2,218,1552,101,944

FUTURE DEVELOPMENTS
The Directors have built a strong brand and reputation by providing first class service in repairs, maintenance and
construction projects. This is achieved by aligning ourselves closely with our clients, ensuring we have a full understanding of their requirements. Our strategy is to continue to specialise in our principle activities, maintain our brand reputation whilst managing the risk areas across our business.

ON BEHALF OF THE BOARD:





Mr F Kane - Director


17 February 2025

LF SOLUTIONS LIMITED (REGISTERED NUMBER: 08203435)

REPORT OF THE DIRECTOR
FOR THE YEAR ENDED 28 FEBRUARY 2024

The director presents his report with the financial statements of the company for the year ended 28 February 2024.

PRINCIPAL ACTIVITY
The principal activity of the company in the year under review was that of construction management and providing specialist civil engineering services.

DIVIDENDS
An interim dividend of £89,896 per share on the Ordinary £1 shares was paid on 6 April 2023. The director recommends that no final dividend be paid on these shares.

No interim dividend was paid on the B Ordinary £1 shares. The director recommends that no final dividend be paid on these shares.

The total distribution of dividends for the year ended 28 February 2024 will be £ 89,896 .

EVENTS SINCE THE END OF THE YEAR
Information relating to events since the end of the year is given in the notes to the financial statements.

DIRECTOR
Mr F Kane held office during the whole of the period from 1 March 2023 to the date of this report.

CHARITABLE DONATIONS AND EXPENDITURE
Donations to charities made during the period was £4,965.

STATEMENT OF DIRECTOR'S RESPONSIBILITIES
The director is responsible for preparing the Strategic Report, the Report of the Director and the financial statements in accordance with applicable law and regulations.

Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is 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 director is required to:

-select suitable accounting policies and then apply them consistently;
-make judgements and accounting estimates that are reasonable and prudent;
-prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The director is 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 him to ensure that the financial statements comply with the Companies Act 2006. He is 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.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the director is aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and he has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

LF SOLUTIONS LIMITED (REGISTERED NUMBER: 08203435)

REPORT OF THE DIRECTOR
FOR THE YEAR ENDED 28 FEBRUARY 2024


AUDITORS
The auditors, AGK Partners, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:




Mr F Kane - Director


17 February 2025

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
LF SOLUTIONS LIMITED

Opinion
We have audited the financial statements of LF Solutions Limited (the 'company') for the year ended 28 February 2024 which comprise the Income Statement, Other Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity, Statement of Cash Flows and Notes to the Statement of Cash Flows, 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 28 February 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 Auditors' 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 director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the 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 director with respect to going concern are described in the relevant sections of this report.

Other information
The director is responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Director, but does not include the financial statements and our Report of the Auditors 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 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 the audit:
- the information given in the Strategic Report and the Report of the Director for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Director have been prepared in accordance with applicable legal requirements.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
LF SOLUTIONS LIMITED


Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Director.

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 director's remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

Responsibilities of director
As explained more fully in the Statement of Director's Responsibilities set out on page three, the director is 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 director determines 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 director is 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 director either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
LF SOLUTIONS LIMITED


Auditors' 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 a Report of the Auditors 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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:
- the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognize 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 industry;
- we assessed the extent of compliance with the 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; and
- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

To address 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 the accounting estimates were indicative of potential bias; and
- investigated the rationale behind significant or unusual transactions.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
- agreeing financial statement disclosures to underlying supporting documentation;
- reading the minutes of meetings of those charged with governance;
- enquiring of management as to actual and potential litigation and claims; and
- reviewing correspondence with HMRC, relevant regulators, and the company's legal advisors.

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 for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
LF SOLUTIONS LIMITED


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 a Report of the Auditors 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.




Alekos Christofi (Senior Statutory Auditor)
for and on behalf of AGK Partners
Chartered Accountants & Statutory Auditors
1 Kings Avenue
London
N21 3NA

17 February 2025

LF SOLUTIONS LIMITED (REGISTERED NUMBER: 08203435)

INCOME STATEMENT
FOR THE YEAR ENDED 28 FEBRUARY 2024

2024 2023
Notes £    £   

REVENUE 4 20,317,437 23,299,749

Cost of sales 18,437,702 21,255,646
GROSS PROFIT 1,879,735 2,044,103

Administrative expenses 1,792,767 1,737,924
86,968 306,179

Other operating income 236,442 62,767
OPERATING PROFIT 6 323,410 368,946


Interest payable and similar expenses 7 105,183 98,795
PROFIT BEFORE TAXATION 218,227 270,151

Tax on profit 8 12,120 87,541
PROFIT FOR THE FINANCIAL YEAR 206,107 182,610

LF SOLUTIONS LIMITED (REGISTERED NUMBER: 08203435)

OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 28 FEBRUARY 2024

2024 2023
Notes £    £   

PROFIT FOR THE YEAR 206,107 182,610


OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME FOR THE
YEAR

206,107

182,610

LF SOLUTIONS LIMITED (REGISTERED NUMBER: 08203435)

STATEMENT OF FINANCIAL POSITION
28 FEBRUARY 2024

2024 2023
Notes £    £    £    £   
FIXED ASSETS
Property, plant and equipment 10 664,486 733,666

CURRENT ASSETS
Inventories 11 201,070 420,870
Debtors 12 6,910,335 5,345,446
Cash at bank and in hand 49,968 182,294
7,161,373 5,948,610
CREDITORS
Amounts falling due within one year 13 4,943,656 3,810,278
NET CURRENT ASSETS 2,217,717 2,138,332
TOTAL ASSETS LESS CURRENT
LIABILITIES

2,882,203

2,871,998

CREDITORS
Amounts falling due after more than one year 14 (599,508 ) (688,852 )

PROVISIONS FOR LIABILITIES 18 (64,540 ) (81,202 )
NET ASSETS 2,218,155 2,101,944

CAPITAL AND RESERVES
Called up share capital 19 2 2
Retained earnings 20 2,218,153 2,101,942
SHAREHOLDERS' FUNDS 2,218,155 2,101,944

The financial statements were approved by the director and authorised for issue on 17 February 2025 and were signed by:





Mr F Kane - Director


LF SOLUTIONS LIMITED (REGISTERED NUMBER: 08203435)

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 28 FEBRUARY 2024

Called up
share Retained Total
capital earnings equity
£    £    £   
Balance at 1 March 2022 1 2,089,332 2,089,333

Changes in equity
Issue of share capital 1 - 1
Dividends - (170,000 ) (170,000 )
Total comprehensive income - 182,610 182,610
Balance at 28 February 2023 2 2,101,942 2,101,944

Changes in equity
Dividends - (89,896 ) (89,896 )
Total comprehensive income - 206,107 206,107
Balance at 28 February 2024 2 2,218,153 2,218,155

LF SOLUTIONS LIMITED (REGISTERED NUMBER: 08203435)

STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 28 FEBRUARY 2024

2024 2023
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 (451,224 ) 977,364
Interest paid (90,769 ) (93,071 )
Interest element of hire purchase payments
paid

(14,414

)

(5,724

)
Tax paid (1,184 ) (1 )
Net cash from operating activities (557,591 ) 878,568

Cash flows from investing activities
Purchase of tangible fixed assets (4,351 ) (103,946 )
Government grants - 5,474
Net cash from investing activities (4,351 ) (98,472 )

Cash flows from financing activities
New loans in year 586,663 -
Loan repayments in year - (490,746 )
Capital repayments in year (19,871 ) -
Amount withdrawn by directors (47,280 ) -
Share issue - 1
Equity dividends paid (89,896 ) (170,000 )
Net cash from financing activities 429,616 (660,745 )

(Decrease)/increase in cash and cash equivalents (132,326 ) 119,351
Cash and cash equivalents at beginning of
year

2

182,294

62,943

Cash and cash equivalents at end of year 2 49,968 182,294

LF SOLUTIONS LIMITED (REGISTERED NUMBER: 08203435)

NOTES TO THE STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 28 FEBRUARY 2024

1. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2024 2023
£    £   
Profit before taxation 218,227 270,151
Depreciation charges 73,531 73,338
Amount owed to/ by Group undertakings (190,490 ) (2,285,492 )
Amount recoverable on contract (1,569,574 ) -
Government grants - (5,473 )
Finance costs 105,183 98,795
(1,363,123 ) (1,848,681 )
Decrease in inventories 219,800 2,803,607
Decrease in trade and other debtors 55,115 1,235,972
Increase/(decrease) in trade and other creditors 636,984 (1,213,534 )
Cash generated from operations (451,224 ) 977,364

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts:

Year ended 28 February 2024
28.2.24 1.3.23
£    £   
Cash and cash equivalents 49,968 182,294
Year ended 28 February 2023
28.2.23 1.3.22
£    £   
Cash and cash equivalents 182,294 65,596
Bank overdrafts - (2,653 )
182,294 62,943


3. ANALYSIS OF CHANGES IN NET DEBT

At 1.3.23 Cash flow At 28.2.24
£    £    £   
Net cash
Cash at bank and in hand 182,294 (132,326 ) 49,968
182,294 (132,326 ) 49,968
Debt
Finance leases (46,153 ) 19,871 (26,282 )
Debts falling due within 1 year (352,965 ) (656,136 ) (1,009,101 )
Debts falling due after 1 year (660,772 ) 69,473 (591,299 )
(1,059,890 ) (566,792 ) (1,626,682 )
Total (877,596 ) (699,118 ) (1,576,714 )

LF SOLUTIONS LIMITED (REGISTERED NUMBER: 08203435)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2024

1. STATUTORY INFORMATION

LF Solutions Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).


2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Revenue
Revenue is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Revenue is recognised at the point the company has transferred to the buyer the significant risks and rewards, the amount of the revenue can be measured reliably and it is probable the economic benefits associated with the transactions will flow to the company.

When the outcome of a construction contract can be estimated reliably, contract revenue and contract costs are recognised as revenue and expenses respectively by reference to the stage of completion of the contract activity at the balance sheet date. When the outcome of a construction contract cannot be estimated reliably, contract revenue is recognised to the extent of contract costs incurred that are likely to be recoverable. When it is probable that total contract costs will exceed total contract revenue, the expected loss is recognised as an expense immediately.

Contract revenue comprises the initial amount of revenue agreed in the contract and variations in the contract work and claims that can be measured reliably. A variation or a claim is recognised as contract revenue when it is probable that the customer will approve the variation or negotiations have reached an advanced stage such that it is probable that the customer will accept the claim.

The stage of completion is measured by reference to the ratio of contract costs incurred to date to the estimated total costs for the contract. Costs incurred during the financial year in connection with future activity on a contract are excluded from the costs incurred to date when determining the stage of completion of a contract. Such costs are shown as construction contract work-in-progress on the balance sheet unless it is not probable that such contract costs are recoverable from the customers, in which case, such costs are recognised as an expense immediately.

At the balance sheet date, the cumulative costs incurred plus recognised profit (less recognised loss) on each contract is compared against the progress billings. Where the cumulative costs incurred plus the recognised profits (less recognised losses) exceed progress billings, the balance is presented as due from customers on construction contracts within "amounts recoverable on contract". Where progress billings exceed the cumulative costs incurred plus recognised profits (less recognised losses), the balance is presented as due to customers on construction contracts within "Payments on account".

Property, plant and equipment
Property, plant and equipment are stated at cost less accumulated depreciation and accumulated impairment losses. Such cost includes costs directly attributable to making the assets capable of operating as intended.

The carrying value of tangible assets are reviewed for impairment when events or changes in circumstances indicate the carrying value may not be recoverable.

Depreciation has been provided at the following rates in order to write off the assets over their estimated useful lives.

Short leasehold - No depreciation.
Plant and machinery - 20% on reducing balance.
Fixtures and fittings - 20% on reducing balance.
Computer equipment- 20% on cost.

The company has a policy not to depreciate in the year of acquisition but to fully depreciate in the year of disposal.

LF SOLUTIONS LIMITED (REGISTERED NUMBER: 08203435)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 28 FEBRUARY 2024

2. ACCOUNTING POLICIES - continued

Inventories
Inventories are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first in first out method. The carrying amount of inventory sold is recognised as an expense in the period in which the related revenue is recognised.

Work in progress (WIP) is recorded at the lower of cost or net realizable value. Cost includes all direct materials, and direct labor that have been incurred in relation to the completion of the project or goods. The costs associated with WIP are capitalized as part of inventory until the goods are completed or the project reaches a stage where revenue can be recognized.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date.

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

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

Hire purchase and leasing commitments
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Cash and cash equivalents
Cash and cash equivalents in the statement of financial position comprise cash at banks and in hand, short term deposits with an original maturity date of one month. Cash equivalents are defined as short-term, highly liquid investments that are readily convertible to known amounts of cash and that are subject to an insignificant risk of changes in value.

LF SOLUTIONS LIMITED (REGISTERED NUMBER: 08203435)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 28 FEBRUARY 2024

2. ACCOUNTING POLICIES - continued

Basic financial assets
Basic financial assets, which including trade and other debtors, cash and bank balances and amounts / loans owed by related parties, 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 rate method. Financial assets classified as receivable within one year are not amortised.

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.

Basic financial liabilities
Basic financial liabilities, including trade and other creditors and amounts / loans owed to related parties 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.

Basic 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. Trade creditors 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.

Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharge, cancelled or expires.

Share capital
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new ordinary shares or options are shown in equity as a deduction, net of tax, from the proceeds.

3. CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

In the application of the company's accounting policies, the director is 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 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 period.

4. REVENUE

The revenue and profit before taxation are attributable to the one principal activity of the company.

An analysis of revenue by class of business is given below:

2024 2023
£    £   
Construction services 20,317,437 23,299,749
20,317,437 23,299,749

LF SOLUTIONS LIMITED (REGISTERED NUMBER: 08203435)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 28 FEBRUARY 2024

4. REVENUE - continued

An analysis of revenue by geographical market is given below:

2024 2023
£    £   
United Kingdom 20,317,437 23,299,749
20,317,437 23,299,749

5. EMPLOYEES AND DIRECTORS
2024 2023
£    £   
Wages and salaries 747,259 842,509
Social security costs 85,276 112,498
Other pension costs 8,897 11,041
841,432 966,048

The average number of employees during the year was as follows:
2024 2023

Administrative 4 4
Sales 1 2
Commercial 4 4
Site Operations 2 2
Management 4 4
15 16

2024 2023
£    £   
Director's remuneration 95,255 95,255

6. OPERATING PROFIT

The operating profit is stated after charging:

2024 2023
£    £   
Hire of plant and machinery 8,676 9,281
Other operating leases 64,730 39,744
Depreciation - owned assets 62,687 73,338
Depreciation - assets on hire purchase contracts 10,844 -
Auditors' remuneration 10,000 10,000

7. INTEREST PAYABLE AND SIMILAR EXPENSES
2024 2023
£    £   
Bank interest payable 90,769 75,825
Interest on other loans - 17,246
Hire purchase 10,621 2,180
Other interest payable 3,793 3,544
105,183 98,795

LF SOLUTIONS LIMITED (REGISTERED NUMBER: 08203435)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 28 FEBRUARY 2024

8. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
2024 2023
£    £   
Current tax:
UK corporation tax 28,782 62,868

Deferred tax (16,662 ) 24,673
Tax on profit 12,120 87,541

Reconciliation of total tax charge included in profit and loss
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:

2024 2023
£    £   
Profit before tax 218,227 270,151
Profit multiplied by the standard rate of corporation tax in the UK of 25%
(2023 - 19%)

54,557

51,329

Effects of:
Expenses not deductible for tax purposes 10,882 16,335
Capital allowances in excess of depreciation - (4,796 )
Depreciation in excess of capital allowances 16,652 -
Deferred tax (16,662 ) 24,673
Group Relief (53,309 ) -
Total tax charge 12,120 87,541

9. DIVIDENDS
2024 2023
£    £   
Ordinary share of £1
Interim 89,896 170,000

LF SOLUTIONS LIMITED (REGISTERED NUMBER: 08203435)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 28 FEBRUARY 2024

10. PROPERTY, PLANT AND EQUIPMENT
Fixtures
Short Plant and and Computer
leasehold machinery fittings equipment Totals
£    £    £    £    £   
COST
At 1 March 2023 394,743 643,891 195,150 72,589 1,306,373
Additions - - - 4,351 4,351
At 28 February 2024 394,743 643,891 195,150 76,940 1,310,724
DEPRECIATION
At 1 March 2023 - 441,626 81,258 49,823 572,707
Charge for year - 40,453 22,778 10,300 73,531
At 28 February 2024 - 482,079 104,036 60,123 646,238
NET BOOK VALUE
At 28 February 2024 394,743 161,812 91,114 16,817 664,486
At 28 February 2023 394,743 202,265 113,892 22,766 733,666

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:
Plant and
machinery
£   
COST
At 1 March 2023
and 28 February 2024 54,218
DEPRECIATION
Charge for year 10,844
At 28 February 2024 10,844
NET BOOK VALUE
At 28 February 2024 43,374
At 28 February 2023 54,218

11. INVENTORIES
2024 2023
£    £   
Stocks and WIP 201,070 420,870

12. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Trade debtors 1,515,849 1,638,413
Amounts owed by group undertakings 375,377 372,227
Amounts recoverable on contract 3,855,066 2,285,492
Other debtors 658,539 438,140
Directors' current accounts 47,280 -
VAT 292,933 438,577
Prepayments 165,291 172,597
6,910,335 5,345,446

LF SOLUTIONS LIMITED (REGISTERED NUMBER: 08203435)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 28 FEBRUARY 2024

13. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Bank loans and overdrafts (see note 15) 1,009,101 322,165
Other loans (see note 15) - 30,800
Hire purchase contracts (see note 16) 18,073 18,073
Trade creditors 2,914,883 2,350,477
Amounts owed to group undertakings 312,742 500,082
Tax 187,238 159,640
Social security and other taxes 374 58,685
Other creditors 366,855 370,356
Accrued expenses 134,390 -
4,943,656 3,810,278

14. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
2024 2023
£    £   
Bank loans (see note 15) 591,299 660,772
Hire purchase contracts (see note 16) 8,209 28,080
599,508 688,852

15. LOANS

An analysis of the maturity of loans is given below:

2024 2023
£    £   
Amounts falling due within one year or on demand:
Bank loans 1,009,101 322,165
Other loans - 30,800
1,009,101 352,965

Amounts falling due between one and two years:
Bank loans - 1-2 years 533,302 75,772

Amounts falling due between two and five years:
Bank loans - 2-5 years 57,997 585,000

16. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase contracts
2024 2023
£    £   
Net obligations repayable:
Within one year 18,073 18,073
Between one and five years 8,209 28,080
26,282 46,153

LF SOLUTIONS LIMITED (REGISTERED NUMBER: 08203435)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 28 FEBRUARY 2024

16. LEASING AGREEMENTS - continued

Non-cancellable operating leases
2024 2023
£    £   
Within one year 47,772 47,772
Between one and five years 163,221 163,221
210,993 210,993

The operating lease relates to a property.

17. SECURED DEBTS

The following secured debts are included within creditors:

2024 2023
£    £   
Bank loans 1,600,400 982,937

There is a Debenture in place dated 11 May 2021 secured by way of a negative pledge, fixed and floating charge over all the property or undertaking of the Company.

18. PROVISIONS FOR LIABILITIES
2024 2023
£    £   
Deferred tax
Accelerated capital allowances 81,202 81,202
Deferred tax (16,662 ) -
64,540 81,202

Deferred
tax
£   
Balance at 1 March 2023 81,202
Provided during year (16,662 )
Balance at 28 February 2024 64,540

19. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2024 2023
value: £    £   
1 Ordinary £1 1 1
1 B Ordinary £1 1 1
2 2

LF SOLUTIONS LIMITED (REGISTERED NUMBER: 08203435)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 28 FEBRUARY 2024

20. RESERVES
Retained
earnings
£   

At 1 March 2023 2,101,942
Profit for the year 206,107
Dividends (89,896 )
At 28 February 2024 2,218,153

21. ULTIMATE PARENT COMPANY

AOI Holdings Limited is regarded by the directors as being the company's ultimate parent company.

The largest and smallest group in which the results of the company are consolidated is that headed by AOI Holdings Limited, which is incorporated in United Kingdom. The consolidated financial statements of this company are available to the public and may be obtained from the company's registered office at No. 6 Water End Barns New Water End, Eversholt, Bedfordshire, MK17 9EA.

22. RELATED PARTY DISCLOSURES

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Included in debtors, due within one year, is an amount totalling £47,280 (2023: £ Nil) due from the director of the company.

Included in creditors, due within one year, is an amount of £145,816 (2023: £145,629) owed to a company connected by common shareholder.

These loans are provided interest free and repayable on demand.

During the year, purchases totalling an amount of £1,802,079 were transacted with a company connected by common shareholder.

During the year, £213,100 (2023: £57,294) was charged as management fees to companies connected by common shareholder.

23. POST BALANCE SHEET EVENTS

There were no post balance sheet events.