Lemmerbell Limited |
Notes to the Accounts |
for the year ended 31 May 2024 |
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1 |
Accounting policies |
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Basis of preparation |
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The accounts have been prepared under the historical cost convention and in accordance with FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland (as applied to small entities by section 1A of the standard). |
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Turnover |
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Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods and from the rendering of services. Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have transferred to the buyer. Turnover from the rendering of services is recognised by reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs. |
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Tangible fixed assets |
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Tangible fixed assets are measured at cost less accumulative depreciation and any accumulative impairment losses. Depreciation is provided on all tangible fixed assets, other than freehold land, at rates calculated to write off the cost, less estimated residual value, of each asset evenly over its expected useful life, as follows: |
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Investment properties ( at fair values) |
Nil |
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Plant and machinery |
25% straight line |
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Leasehold |
over the period of lease |
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Investments properties |
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In accordance with accounting standards, the company's properties are held for long term investment and have been valued at fair value by the directors in the balance sheet at their RICS open market fair values. The surplus or deficit on the revaluation of such properties is transferred to the profit and loss account. Depreciation is not provided in respect of freehold properties. |
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This policy represents a departure from statutory accounting principles, which require depreciation to be provided on all fixed assets. The directors consider that the policy is necessary in order that the financial statements may give a true and fair view, because current values and changes in current values are of prime importance rather than the calculation of systematic annual depreciation. Depreciation is one of many factors reflected in the valuation and the amount that might otherwise have been shown cannot be separately identified or quantified. Deferred tax is provided on any timing differences on potential gains arising on any movement in fair values of the investment properties. |
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Going concern |
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The company is dependent on the continued support of it's bankers and other creditors. The directors have assessed the future trading and cash flows of the business and are satisfied that the adoption of the going concern basis is appropriate. In the event that the bankers and other creditors withdraw support, alternative methods of finance would have to be sought. |
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Debtors |
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Short term debtors are measured at transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts. Loans and other financial assets are initially recognised at transaction price including any transaction costs and subsequently measured at amortised cost determined using the effective interest method, less any impairment losses for bad and doubtful debts. |
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Creditors |
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Short term creditors are measured at transaction price (which is usually the invoice price). Loans and other financial liabilities are initially recognised at transaction price net of any transaction costs and subsequently measured at amortised cost determined using the effective interest method. |
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Taxation |
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A current tax liability is recognised for the tax payable on the taxable profit of the current and past periods. It is measured at the amount expected to be paid or recovered using the tax rates and laws that have been enacted by the balance sheet date. A current tax asset is recognised in respect of a tax loss that can be carried back to recover tax paid in a previous period. |
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Deferred tax is recognised in respect of all timing differences between the recognition of income and expenses in the financial statements and their inclusion in tax assessments. 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. |
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Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used. Current and deferred tax assets and liabilities are not discounted. |
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Provisions |
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Provisions (i.e. liabilities of uncertain timing or amount) are recognised when there is an obligation at the reporting date as a result of a past event, it is probable that economic benefit will be transferred to settle the obligation and the amount of the obligation can be estimated reliably. |
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Leased assets |
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A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership. All other leases are classified as operating leases. The rights of use and obligations under finance leases are initially recognised as assets and liabilities at amounts equal to the fair value of the leased assets or, if lower, the present value of the minimum lease payments. Minimum lease payments are apportioned between the finance charge and the reduction in the outstanding liability using the effective interest rate method. The finance charge is allocated to each period during the lease so as to produce a constant periodic rate of interest on the remaining balance of the liability. Leased assets are depreciated in accordance with the company's policy for tangible fixed assets. If there is no reasonable certainty that ownership will be obtained at the end of the lease term, the asset is depreciated over the lower of the lease term and its useful life. Operating lease payments are recognised as an expense on a straight line basis over the lease term. |
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2 |
Employees |
2024 |
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2023 |
Number |
Number |
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Average number of persons employed by the company |
3 |
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3 |
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3 |
Tangible fixed assets |
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Investment properties |
£ |
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Cost or valuation |
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At 1 June 2023 |
2,960,000 |
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At 31 May 2024 |
2,960,000 |
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Depreciation |
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At 31 May 2024 |
- |
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Net book value |
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At 31 May 2024 |
2,960,000 |
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At 31 May 2023 |
2,960,000 |
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Investment properties |
2024 |
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2023 |
£ |
£ |
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Historical cost |
1,080,931 |
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1,080,931 |
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Cumulative depreciation based on historical cost |
- |
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- |
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1,080,931 |
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1,080,931 |
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Investment properties have not been depreciated and is stated at open fair value as valued independently on instructions from the directors as at 8 November 2022 and believe the value is unchanged as at 31 May 2024 The consideration of the current fair value has been reviewed in light of the current rental yield and market conditions. There are no restrictions on the ability to realise income and / or proceeds of disposal on investment properties. |
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4 |
Debtors |
2024 |
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2023 |
£ |
£ |
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Trade debtors |
8,787 |
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29,329 |
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Directors loan account ( due on demand) |
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1,157,740 |
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1,132,048 |
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Tax recoverable (S455 tax) |
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309,866 |
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301,195 |
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Prepayments |
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20,842 |
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19,868 |
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Other debtors |
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1,092 |
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39,881 |
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1,498,327 |
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1,522,321 |
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5 |
Creditors: amounts falling due within one year |
2024 |
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2023 |
£ |
£ |
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Bank loans and overdrafts (secured) |
44,574 |
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44,574 |
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Corporation tax |
13,416 |
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25,281 |
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Other creditors |
55,235 |
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29,674 |
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113,225 |
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99,529 |
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6 |
Creditors: amounts falling due after one year |
2024 |
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2023 |
£ |
£ |
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Bank loans (secured) |
590,084 |
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634,657 |
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7 |
Loans |
2024 |
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2023 |
£ |
£ |
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Loans include: |
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Bank loans ( secured) |
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634,658 |
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679,232 |
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Secured Bank Loans |
634,658 |
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679,232 |
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All security is by legal charges (fixed and floating) on all assets including investment properties , all undertakings and personal guarantees by the directors. The Loans matured and was renewed on 14 September 2022 for a further 5 year term ending 14.09.2027 at a variable interest rate partial amortising facility with a Bank of England base rate 1.75% p.a. and margin of 3.49% p.a. |
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8 |
Deferred Tax |
2024 |
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2023 |
£ |
£ |
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At 1 June 2023 |
152,453 |
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21,725 |
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Charged to profit & loss -revaluation of investment properties |
- |
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130,728 |
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At 31 May 2024 |
152,453 |
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152,453 |
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9 |
Non distributable reserve |
2024 |
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2023 |
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(Fair value revaluation reserve on investment properties ) |
£ |
£ |
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At 1 June 2023 |
2,042,403 |
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1,487,187 |
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Transfer gain on revaluation of investment properties from profit & loss reserves |
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- |
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707,669 |
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Transfer deferred tax on revaluation of investment properties from profit & loss reserves |
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- |
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(152,453) |
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At 31 May 2024 |
2,042,403 |
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2,042,403 |
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10 |
Profit and loss account |
2024 |
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2023 |
£ |
£ |
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At 1 June 2023 |
1,554,563 |
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1,462,043 |
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Profit for the financial year |
27,756 |
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647,736 |
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Transfer gain on revaluation of investment properties to non distributable reserves |
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- |
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(707,669) |
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Transfer deferred tax on revaluation of investment properties to non distributable reserves |
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- |
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152,453 |
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At 31 May 2024 |
1,582,319 |
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1,554,563 |
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11 |
Loans to directors (DLA) |
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Description and conditions |
B/fwd |
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Advance paid |
Repaid |
C/fwd |
£ |
£ |
£ |
£ |
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Mrs S Lines |
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Loans to director |
1,132,048 |
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25,692 |
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1,157,740 |
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1,132,048 |
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25,692 |
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- |
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1,157,740 |
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DLA balance is c/fwd. in the name of S Lines following the passing of her late husband D H Lines in 2022. |
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12 |
Related party transactions |
2024 |
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2023 |
£ |
£ |
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Matthew Fraser Ltd |
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Holding company |
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Management charges |
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110,000 |
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110,000 |
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Funding advances to/from Holding Company waived |
8,476 |
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28,372 |
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Lines Family Partnership |
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N F Lines and S Lines are partners in the partnership |
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Insurance recharged |
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1,467 |
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- |
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Amount due from (to) the related party |
- |
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- |
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13 |
Controlling party |
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The company is controlled by Matthew Fraser Limited, which owns 78.79% of the ordinary share capital. Matthew Fraser Limited was controlled jointly by Late Mr D H Lines ( deceased 08.11.2022) and Mrs S Lines by virtue of their majority shareholding in Matthew Fraser Limited up until 08.11.2022 and since then by Mrs S Lines by virtue of her inheriting part of her late husband's shares giving her the majority share holding. |
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14 |
Other information |
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Lemmerbell Limited is a private company limited by shares and incorporated in England. Its registered office is: |
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7 Mulberry Close |
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Northampton |
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NN5 7AW |