REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS FOR THE PERIOD 1 SEPTEMBER 2023 TO 30 JUNE 2024 |
FOR |
LYNX UK LIMITED |
REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS FOR THE PERIOD 1 SEPTEMBER 2023 TO 30 JUNE 2024 |
FOR |
LYNX UK LIMITED |
LYNX UK LIMITED (REGISTERED NUMBER: 05065985) |
CONTENTS OF THE FINANCIAL STATEMENTS |
for the period 1 September 2023 to 30 June 2024 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 4 |
Report of the Independent Auditors | 6 |
Statement of Comprehensive Income | 9 |
Balance Sheet | 10 |
Statement of Changes in Equity | 11 |
Cash Flow Statement | 12 |
Notes to the Cash Flow Statement | 13 |
Notes to the Financial Statements | 14 |
LYNX UK LIMITED |
COMPANY INFORMATION |
for the period 1 September 2023 to 30 June 2024 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
SENIOR STATUTORY AUDITOR: |
AUDITORS: |
Avebury House |
St Peter Street |
Winchester |
Hampshire |
SO23 8BN |
BANKERS: |
Mayfair House |
Basingstoke |
Hampshire |
RG21 7JU |
LYNX UK LIMITED (REGISTERED NUMBER: 05065985) |
STRATEGIC REPORT |
for the period 1 September 2023 to 30 June 2024 |
The directors present their strategic report for the period 1 September 2023 to 30 June 2024. |
BUSINESS OVERVIEW |
Lynx (UK) Limited ("Lynx") is a leading telecommunications network asset management company dedicated to prolonging the life of our customers' existing networks and sustainably retiring those networks once they reach end of life. Our commitment to quality and extensive industry experience has enabled us to build a strong foundation in the market. |
During this period of reporting the business was acquired on 22nd December 2023 by the TXO Group, headed by TXO Delta Bidco Limited. The TXO Group itself was the subject of a management buyout in June 2023 supported by TowerBrook Capital Partners ("Towerbrook"). As part of the integration process the company's year end was changed to 30th June to align with the wider TXO Group. |
STRATEGY AND OBJECTIVES |
i) Strategic Focus |
Our strategy continues to be centred on telecommunications network engineering for the sustainable retirement of end of life networks, including the migration of data traffic, powering down and removal of equipment and associated facility dilapidation works, whilst driving a circular economy led solution via the provision of repair, SPMS, recycling and product resale services. |
ii) Financial Objectives |
Financially, we strive for sustainable growth, cost efficiency, and prudent financial management. Our key financial measures are revenue and operating profit performance. |
FINANCIAL PERFORMANCE |
As shown in the profit and loss account, the company's revenue for the 10 month period ended 30 June 2024 was £8.1m compared to £11m in the 12 month period ended 31 August 2023. |
The company's other key performance indicator of its operations is operating profit, which was £1.4m for the 10 month period ended 30 June 2024 (£1.6m for the 12 month period ended 31 August 2023). Operating profit has increased as a percentage of revenue, from 14% in the 12month period ended 31 August 2023 to 17% in the 10month period ended 30 June 2024. |
At 30 June 2024 the company had net assets of £2.1m (31st August 2023: £1.1m). |
PRINCIPAL RISKS AND UNCERTAINTIES |
The company operates in a competitive market which is a continuing risk to the group and could result in losing sales to its key competitors. The company manages this risk by focusing on quality of service and technical expertise. The company's activities expose it to a number of financial risks including credit risk and liquidity risk. |
Credit Risk |
The company's principal financial assets are cash, and trade and other receivables. The company's credit risk is primarily attributed to its trade receivables. The amounts presented in the balance sheet are net of allowances for doubtful receivables. |
Although the company has a concentration of credit risk into a modest number of customers, these are all long standing, blue chip customers with excellent credit ratings and therefore credit risk is deemed as low. |
Liquidity risk |
In order to maintain liquidity to ensure that sufficient funds are available for ongoing operations and future developments, the company maintains a sensible cash balance to meet both it's short and longer term funding needs. |
SUSTAINABILITY AND CORPORATE SOCIAL RESPONSIBILITY (CSR) |
At Lynx (UK) Limited, we are committed to sustainability and CSR. Post acquisition details of the wider TXO Group's approach to this are given in the consolidated accounts of TXO Delta Midco Limited for the period ended 30 June 2024. |
LYNX UK LIMITED (REGISTERED NUMBER: 05065985) |
STRATEGIC REPORT |
for the period 1 September 2023 to 30 June 2024 |
FUTURE OUTLOOK AND GOING CONCERN |
The Board remains very positive and supportive that a business with sustainability and circular economy focused Network Engineering solutions in its' DNA will feature in the forefront of our customers' challenges and Board agendas. Ever increasing network demands, ageing networks and pressure on power consumption and footprint costs, all provide a very positive opportunity. |
As such the Board is pleased to state that its assessment is that the going concern basis remains appropriate. |
ON BEHALF OF THE BOARD: |
LYNX UK LIMITED (REGISTERED NUMBER: 05065985) |
REPORT OF THE DIRECTORS |
for the period 1 September 2023 to 30 June 2024 |
The directors present their report with the financial statements of the company for the period 1 September 2023 to 30 June 2024. |
DIVIDENDS |
No dividends will be distributed for the period ended 30 June 2024. |
DIRECTORS |
The directors who have held office during the period from 1 September 2023 to the date of this report are as follows: |
DONATIONS |
During the period the company made charitable donations of £30 (31.08.23 - £2,549). |
GOING CONCERN |
Positive trading performance continues, with the execution of a well-defined strategy in an established and growing market. Traditional Lynx services remain core to the business and with continued focus and expansion of service offering and capability as part of the larger TXO Group the ability to access new customers and widen the opportunity with existing customers the business is well placed for strong growth. |
As such the Board is pleased to state that its assessment is that the going concern basis remains appropriate. |
DISCLOSURE IN THE STRATEGIC REPORT |
In accordance with the Companies Act 2006, s414C(11), information in respect of business activities and risk are shown within the Strategic Report. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and 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 directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are 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 each director 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. |
LYNX UK LIMITED (REGISTERED NUMBER: 05065985) |
REPORT OF THE DIRECTORS |
for the period 1 September 2023 to 30 June 2024 |
AUDITORS |
The auditors, Rothmans Audit LLP, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
LYNX UK LIMITED |
Opinion |
We have audited the financial statements of Lynx UK Limited (the 'company') for the period ended 30 June 2024 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, 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, except for the possible effects on the corresponding figures of the matter described in the Basis for qualified opinion section of our report, the financial statements: |
- | give a true and fair view of the state of the company's affairs as at 30 June 2024 and of its profit for the period 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 qualified opinion |
The company was not audited in the period ended 31 August 2022 and thus we did not observe the counting of physical inventories at the end of that year. We were unable to satisfy ourselves by alternative means as to the inventory quantities of £326,708 as at 31 August 2022. Consequently we were unable to determine whether any adjustment to the balance sheet values and opening retained earnings at that date was necessary, or whether there was any consequential effect on the cost of sales for the year ended 31 August 2023. In addition, were any adjustment to the comparative cost of sales to be required, the strategic report would also need to be amended. Our audit opinion on the financial statements for the year ended 31 August 2023 was modified accordingly, and our opinion on the current period's financial statements is also modified because of the possible effect of this matter on the comparability of the current period's figures and the corresponding figures. |
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 qualified opinion. |
Conclusions relating to going concern |
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, 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 Directors 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 Directors have been prepared in accordance with applicable legal requirements. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
LYNX UK LIMITED |
Matters on which we are required to report by exception |
Except for the matter described in the basis for qualified opinion section of our report, 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 Directors. |
Arising solely from the limitation on the scope of our work relating to inventory, referred to above: |
- | we have not obtained all the information and explanations that we considered necessary for the purpose of our audit; and |
- | we were unable to determine whether adequate accounting records have been kept. |
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion: |
- | returns adequate for our audit have not been received from branches not visited by us; or |
- | the financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page four, 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 necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so. |
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. |
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below. |
The extent to which the audit was considered capable of detecting irregularities including fraud |
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 recognise non-compliance with applicable laws and regulations; |
- | We identified the laws and regulations applicable to the company through discussions with the directors, and from our knowledge and experience of the sector; |
- | We focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, employment and health and safety legislation; and |
- | We assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence. The 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. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
LYNX UK LIMITED |
We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be within the recognition of income and the override of controls by management. To address the risk of fraud in these areas, we: |
- | selected a sample of transactions from material income streams and compared expected income to that recorded within the financial statements. |
- | performed analytical procedures to identify any unusual or unexpected relationships; |
- | tested journal entries during the year and at the year-end to identify unusual transactions; |
- | assessed whether judgements and assumptions made in determining the accounting estimates set out in note 2 were indicative of potential bias; |
- | 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; |
- | enquiring of management as to actual and potential litigation and claims; and |
- | reviewing legal and professional expenditure incurred in the year. |
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. |
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. |
for and on behalf of |
Avebury House |
St Peter Street |
Winchester |
Hampshire |
SO23 8BN |
LYNX UK LIMITED (REGISTERED NUMBER: 05065985) |
STATEMENT OF COMPREHENSIVE |
INCOME |
for the period 1 September 2023 to 30 June 2024 |
Period |
1.9.23 |
to | Year Ended |
30.6.24 | 31.8.23 |
Notes | £ | £ |
TURNOVER | 3 |
Cost of sales |
GROSS PROFIT |
Administrative expenses |
OPERATING PROFIT | 5 |
Interest receivable and similar income |
1,434,979 | 1,578,776 |
Interest payable and similar expenses | 6 |
PROFIT BEFORE TAXATION |
Tax on profit | 7 |
PROFIT FOR THE FINANCIAL PERIOD |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD |
LYNX UK LIMITED (REGISTERED NUMBER: 05065985) |
BALANCE SHEET |
30 June 2024 |
30.6.24 | 31.8.23 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 9 |
CURRENT ASSETS |
Stocks | 10 |
Debtors | 11 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 12 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
13 |
( |
) |
( |
) |
PROVISIONS FOR LIABILITIES | 17 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 18 | 118 | 118 |
Share premium | 19 | 35,464 | 35,464 |
Capital redemption reserve | 19 | 1 | 1 |
Retained earnings | 19 | 2,099,736 | 1,027,846 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
LYNX UK LIMITED (REGISTERED NUMBER: 05065985) |
STATEMENT OF CHANGES IN EQUITY |
for the period 1 September 2023 to 30 June 2024 |
Called up | Capital |
share | Retained | Share | redemption | Total |
capital | earnings | premium | reserve | equity |
£ | £ | £ | £ | £ |
Balance at 1 September 2022 | 111 | 5,263,179 | - | - | 5,263,290 |
Changes in equity |
Increase in share capital | 8 | - | 35,464 | - | 35,472 |
Repurchase of own shares | (1 | ) | (18,962 | ) | - | 1 | (18,962 | ) |
Dividends | - | (274,670 | ) | - | - | (274,670 | ) |
Total comprehensive income | - | 1,504,051 | - | - | 1,504,051 |
Gift to EOT | - | (5,445,752 | ) | - | - | (5,445,752 | ) |
Balance at 31 August 2023 |
Changes in equity |
Total comprehensive income | - | 1,071,890 | - | - | 1,071,890 |
Balance at 30 June 2024 |
LYNX UK LIMITED (REGISTERED NUMBER: 05065985) |
CASH FLOW STATEMENT |
for the period 1 September 2023 to 30 June 2024 |
Period |
1.9.23 |
to | Year Ended |
30.6.24 | 31.8.23 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 |
Interest paid | ( |
) |
Interest element of hire purchase payments paid |
( |
) |
Tax paid | ( |
) | ( |
) |
Net cash from operating activities |
Cash flows from investing activities |
Purchase of tangible fixed assets | ( |
) | ( |
) |
Sale of tangible fixed assets |
Interest received |
Net cash from investing activities | ( |
) | ( |
) |
Cash flows from financing activities |
Capital repayments in year | ( |
) | ( |
) |
Amount introduced by directors | 11,866 | - |
Amount withdrawn by directors | - | (16,916 | ) |
Share issue |
Share buyback | ( |
) |
Amount advanced to shareholders | ( |
) |
Cash distributed to EOT | ( |
) |
Loan to intercompany | ( |
) |
Equity dividends paid | ( |
) | ( |
) |
Net cash from financing activities | ( |
) | ( |
) |
Decrease in cash and cash equivalents | ( |
) | ( |
) |
Cash and cash equivalents at beginning of period |
2 |
3,619,168 |
Cash and cash equivalents at end of period |
2 |
898,770 |
1,584,230 |
LYNX UK LIMITED (REGISTERED NUMBER: 05065985) |
NOTES TO THE CASH FLOW STATEMENT |
for the period 1 September 2023 to 30 June 2024 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
Period |
1.9.23 |
to | Year Ended |
30.6.24 | 31.8.23 |
£ | £ |
Profit before taxation |
Depreciation charges |
Loss on disposal of fixed assets |
Finance costs | 5,165 | 1,777 |
Finance income | (74,691 | ) | (10,442 | ) |
1,440,465 | 1,654,468 |
Decrease in stocks |
Decrease/(increase) in trade and other debtors | ( |
) |
(Decrease)/increase in trade and other creditors | ( |
) |
Cash generated from operations |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Period ended 30 June 2024 |
30.6.24 | 1.9.23 |
£ | £ |
Cash and cash equivalents | 898,770 | 1,584,230 |
Year ended 31 August 2023 |
31.8.23 | 1.9.22 |
£ | £ |
Cash and cash equivalents | 1,584,230 | 3,619,168 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1.9.23 | Cash flow | At 30.6.24 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 1,584,230 | (685,460 | ) | 898,770 |
1,584,230 | ( |
) | 898,770 |
Debt |
Finance leases | (67,165 | ) | 24,861 | (42,304 | ) |
Debts falling due within 1 year | (7,471 | ) | - | (7,471 | ) |
Debts falling due after 1 year | (13,024 | ) | 6,225 | (6,799 | ) |
(87,660 | ) | 31,086 | (56,574 | ) |
Total | 1,496,570 | (654,374 | ) | 842,196 |
LYNX UK LIMITED (REGISTERED NUMBER: 05065985) |
NOTES TO THE FINANCIAL STATEMENTS |
for the period 1 September 2023 to 30 June 2024 |
1. | STATUTORY INFORMATION |
Lynx UK Limited is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
The company shortened its year-end from 31 August 2024 to 30 June 2024 in order to align with Group Reporting. These financial statements have therefore been prepared for the 10 month period from 1 September 2023 to 30 June 2024 and the comparatives, which are for the 12 month period from 1 September 2022 to 31 August 2023, are not entirely comparable. |
Parent company |
Lynx UK Ltd is a wholly owned subsidiary of TXO Delta Bidco Ltd whose registered office is Unit 3, Severn Cross Distribution Park, Newhouse Farm Industrial Estate, Chepstow, Monmouthshire, Wales, NP16 6UP. The ultimate parent company is TXO Delta Topco Limited whose registered office is Aztec Group House, Ifc 6, The Esplanade, St. Helier, Je4 0qh, Jersey. |
Significant judgements and estimates |
In the application of the company's accounting policies, the directors are required to make judgments, 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 accounting policies requiring the most judgment within the financial statements are those relating to the valuation of stock impairment. |
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 revision and future periods where the revision affects both the current and future periods. |
Revenue recognition |
Revenue is measured at the fair value of the consideration received or receivable for the removal, restoration and re-sale of telecommunication equipment. |
Revenue is recognised on the sale of goods when equipment is dispatched, at which time the significant risks and rewards associated with the sale have transferred to the customer. |
Turnover is recognised on completion of project and contract work after works are signed off and agreed by the customer at which time the significant risks and rewards associated with the work have transferred to the customer. |
Profit is recognised on long term contracts when the final outcome can be assessed with reasonable certainty by including turnover and related costs within the profit and loss account dependant on the stage of completion of the contract at the balance sheet date. |
Tangible fixed assets |
Plant and machinery | - |
Motor vehicles | - |
The asset's residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date. |
LYNX UK LIMITED (REGISTERED NUMBER: 05065985) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the period 1 September 2023 to 30 June 2024 |
2. | ACCOUNTING POLICIES - continued |
Stocks |
The company holds a stock of parts that have been removed as part of the system removals that it undertakes. |
These stocks are not subject to physical obsolescence but some items are subject to technical obsolescence and these are valued at the lower of cost and net realisable value. |
Taxation |
Taxation for the period comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, 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 balance sheet date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet 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 period 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. |
Debtors |
Debtors do not carry any interest and are stated at their nominal value. Appropriate allowances for estimated irrecoverable amounts are recognised in the profit and loss account when there is objective evidence that the asset is impaired. |
Cash and cash equivalents |
These comprise cash at bank and other highly liquid deposits. |
Creditors |
Creditors are not interest bearing and are stated at their nominal value. |
LYNX UK LIMITED (REGISTERED NUMBER: 05065985) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the period 1 September 2023 to 30 June 2024 |
3. | TURNOVER |
The turnover and profit before taxation are attributable to the one principal activity of the company. |
An analysis of turnover by class of business is given below: |
Period |
1.9.23 |
to | Year Ended |
30.6.24 | 31.8.23 |
£ | £ |
4. | EMPLOYEES AND DIRECTORS |
Period |
1.9.23 |
to | Year Ended |
30.6.24 | 31.8.23 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
The average number of employees during the period was as follows: |
Period |
1.9.23 |
to | Year Ended |
30.6.24 | 31.8.23 |
Management | 4 | 5 |
Projects | 34 | 35 |
Test & Repair | 9 | 10 |
Sales | 11 | 6 |
Warehouse | 6 | 15 |
Admin | 13 | 15 |
Period |
1.9.23 |
to | Year Ended |
30.6.24 | 31.8.23 |
£ | £ |
Directors' remuneration |
Directors' pension contributions to money purchase schemes |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes |
Information regarding the highest paid director is as follows: |
Period |
1.9.23 |
to | Year Ended |
30.6.24 | 31.8.23 |
£ | £ |
Emoluments etc |
LYNX UK LIMITED (REGISTERED NUMBER: 05065985) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the period 1 September 2023 to 30 June 2024 |
4. | EMPLOYEES AND DIRECTORS - continued |
In the period ended 30 June 2024, £52,214 of costs have been accrued in relation to redundancy costs arising from the termination of employment of 1 employee. |
5. | OPERATING PROFIT |
The operating profit is stated after charging: |
Period |
1.9.23 |
to | Year Ended |
30.6.24 | 31.8.23 |
£ | £ |
Hire of plant and machinery |
Depreciation - owned assets |
Depreciation - assets on hire purchase contracts |
Loss on disposal of fixed assets |
Auditors' remuneration |
Rent |
Stock impairment |
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
Period |
1.9.23 |
to | Year Ended |
30.6.24 | 31.8.23 |
£ | £ |
Loan interest |
Hire purchase |
7. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the period was as follows: |
Period |
1.9.23 |
to | Year Ended |
30.6.24 | 31.8.23 |
£ | £ |
Current tax: |
UK corporation tax |
Previous year over provision | - | (58 | ) |
Total current tax |
Deferred tax | ( |
) |
Tax on profit |
UK corporation tax has been charged at 25% (2023 - 21.50%). |
LYNX UK LIMITED (REGISTERED NUMBER: 05065985) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the period 1 September 2023 to 30 June 2024 |
7. | TAXATION - continued |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the period is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
Period |
1.9.23 |
to | Year Ended |
30.6.24 | 31.8.23 |
£ | £ |
Profit before tax |
Profit multiplied by the standard rate of corporation tax in the UK of (2023 - |
Effects of: |
Expenses not deductible for tax purposes |
Adjustments to tax charge in respect of previous periods | ( |
) |
Movement of deferred tax provision | - | 5,377 |
Relief re EMI share option exercise. | - | (275,367 | ) |
Total tax charge | 357,924 | 72,948 |
8. | DIVIDENDS |
Period |
1.9.23 |
to | Year Ended |
30.6.24 | 31.8.23 |
£ | £ |
A Ordinary shares of £1 each |
Interim | - | 103,750 |
B Ordinary shares of £1 each |
Interim | - | 103,750 |
C Ordinary shares of £1 each |
Interim | - | 62,700 |
E Ordinary shares of £1 each |
Interim | - | 4,470 |
9. | TANGIBLE FIXED ASSETS |
Fixtures |
Short | Plant and | and | Motor |
leasehold | machinery | fittings | vehicles | Totals |
£ | £ | £ | £ | £ |
COST |
At 1 September 2023 |
Additions |
Disposals | ( |
) | ( |
) | ( |
) |
At 30 June 2024 |
DEPRECIATION |
At 1 September 2023 |
Charge for period |
Eliminated on disposal | ( |
) | ( |
) | ( |
) |
At 30 June 2024 |
NET BOOK VALUE |
At 30 June 2024 |
At 31 August 2023 |
LYNX UK LIMITED (REGISTERED NUMBER: 05065985) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the period 1 September 2023 to 30 June 2024 |
9. | TANGIBLE FIXED ASSETS - continued |
Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
Plant and | Motor |
machinery | vehicles | Totals |
£ | £ | £ |
COST |
At 1 September 2023 |
Disposals | ( |
) | ( |
) |
At 30 June 2024 |
DEPRECIATION |
At 1 September 2023 |
Charge for period |
Eliminated on disposal | ( |
) | ( |
) |
At 30 June 2024 |
NET BOOK VALUE |
At 30 June 2024 |
At 31 August 2023 |
10. | STOCKS |
30.6.24 | 31.8.23 |
£ | £ |
Stocks |
11. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
30.6.24 | 31.8.23 |
£ | £ |
Trade debtors |
Amounts owed by group undertakings |
Other debtors |
Directors' current accounts | - | 11,866 |
Accrued income |
Prepayments |
12. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
30.6.24 | 31.8.23 |
£ | £ |
Other loans (see note 14) |
Hire purchase contracts (see note 15) |
Trade creditors |
Tax |
Social security and other taxes |
VAT | 238,171 | 332,142 |
Other creditors |
Accrued expenses |
13. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
30.6.24 | 31.8.23 |
£ | £ |
Other loans (see note 14) |
Hire purchase contracts (see note 15) |
LYNX UK LIMITED (REGISTERED NUMBER: 05065985) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the period 1 September 2023 to 30 June 2024 |
14. | LOANS |
An analysis of the maturity of loans is given below: |
30.6.24 | 31.8.23 |
£ | £ |
Amounts falling due within one year or on demand: |
Other loans |
Amounts falling due between one and two years: |
Other loans - 1-2 years | 6,799 |
Amounts falling due between two and five years: |
Other loans - 2-5 years |
15. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Hire purchase contracts |
30.6.24 | 31.8.23 |
£ | £ |
Net obligations repayable: |
Within one year |
Between one and five years |
Non-cancellable operating | leases |
30.6.24 | 31.8.23 |
£ | £ |
Within one year |
Between one and five years |
16. | SECURED DEBTS |
The following secured debts are included within creditors: |
30.6.24 | 31.8.23 |
£ | £ |
Hire purchase contracts | 42,304 | 67,165 |
17. | PROVISIONS FOR LIABILITIES |
30.6.24 | 31.8.23 |
£ | £ |
Deferred tax | 19,339 | 36,469 |
Deferred |
tax |
£ |
Balance at 1 September 2023 |
Credit to Statement of Comprehensive Income during period | ( |
) |
Balance at 30 June 2024 |
LYNX UK LIMITED (REGISTERED NUMBER: 05065985) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the period 1 September 2023 to 30 June 2024 |
18. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 30.06.24 | 31.08.23 |
Value: | £ | £ |
11,839 | Ordinary | 1p | 118 | - |
7,701 | Ordinary A | 1p | - | 77 |
3,299 | Ordinary B | 1p | - | 33 |
839 | Ordinary C | 1p | - | 8 |
118 | 118 |
On 5 February 2024 the company redesignated its share capital as follows: |
7,701 Ordinary A Shares of £0.01 each were redesignated as 7,701 Ordinary Shares of £0.01 each |
3,299 Ordinary B Shares of £0.01 each were redesignated as 3,299 Ordinary Shares of £0.01 each |
839 Ordinary C Shares of £0.01 each were redesignated as 839 Ordinary Shares of £0.01 each |
All shares rank equally for voting purposes. On a show of hands each member has one vote per share held. Each share ranks equally for any dividend declared and each share ranks equally for any distribution made on a winding up. The shares are not redeemable. |
19. | RESERVES |
Capital |
Retained | Share | redemption |
earnings | premium | reserve | Totals |
£ | £ | £ | £ |
At 1 September 2023 | 1,027,846 | 35,464 | 1 | 1,063,311 |
Profit for the period | 1,071,890 | 1,071,890 |
At 30 June 2024 | 2,099,736 | 35,464 | 1 | 2,135,201 |
20. | 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. |
The following advances and credits subsisted during the periods ended 30 June 2024 and 31 August 2023: |
30.06.24 | 31.08.23 |
£ | £ |
DIRECTORS |
Balance outstanding at the start of the year | 11,866 | 1,463,842 |
Amounts advanced | - | 11,866 |
Amount repaid | (11,866 | ) | (1,463,842 | ) |
Balance outstanding at the end of the year | - | 11,866 |
SHAREHOLDERS |
Balance outstanding at the start of the year | 22,559 | 40,882 |
Amounts advanced | - | 22,559 |
Amount repaid | (22,559 | ) | (40,882 | ) |
Balance outstanding at the end of the year | - | 22,559 |
The above loans are subject to interest at commercial rates and are repayable on demand. |
Rent of £76,667 (2023: £92,000) was paid to LMK Properties Ltd, a company under common control with Lynx UK Ltd, during the year. |
Interest was charged on loans to other group undertakings of £73,943 by Lynx UK Ltd. |