Company registration number 10182066 (England and Wales)
LOSCOE INVESTMENTS LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
LOSCOE INVESTMENTS LTD
COMPANY INFORMATION
Directors
M R Carry
C Rennison
M G Roberts
Company number
10182066
Registered office
Loscoe Close
Normanton Industrial Estate
Normanton
WF6 1TW
Auditor
Hart Shaw LLP
Europa Link
Sheffield Business Park
Sheffield
S9 1XU
LOSCOE INVESTMENTS LTD
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Group statement of comprehensive income
8
Group balance sheet
9
Company balance sheet
10
Group statement of changes in equity
11
Company statement of changes in equity
12
Group statement of cash flows
13
Notes to the financial statements
14 - 29
LOSCOE INVESTMENTS LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 1 -
The directors present the strategic report and financial statements for the year ended 30 September 2024.
Fair review of the business
Loscoe Investments Ltd acts as the ultimate holding company of Acorn Web Offset Ltd, Aberdeen Investments Ltd & Investment in Media Ltd.
The group recorded a revenue of £25,478,987 during the year (2023: £26,257,625) resulting in a profit before tax of £1,196,029 for the period. The group’s net worth decreased by £527,635 during the year to £1,565,739.
Despite the small drop in turnover, customer activity continued to increase with reduced input costs being passed back to the customer, wherever possible, resulting in a slightly lower turnover figure. Paper supply problems have eased and whilst prices remain high customers did benefit from reduced paper prices. Acorn Web Offset Ltd prides itself upon strong supplier relationships, which continued through the year to help drive efficiencies for its customers.
Margins continue to be affected as customers were approached with the promise of lower pricing. Acorn Web Offset's reputation for exceptional customer service combined with negotiation and working together to change the product specification to a more efficient format meant that nearly all clients were retained. The small number of customers who moved away did so at pricing levels that Acorn Web Offset were not prepared to compete with, or the format of the products did not best suit our equipment.
No bad debts were incurred during the year.
Capital investments of £438,538 were made during the year. These were made to further support the company’s ongoing strategic direction, specifically improving automation and improving energy efficiencies to allow the company to manage rising manpower costs and reduce its energy usage. Further investments aligned to this strategy are planned for 2024/25.
Looking ahead
As of 31 October 2023, Loscoe Investments Ltd completed a Share Buyback for all the shares held by N R Alexander, therefore as at this date, N R Alexander resigned as a director of Loscoe Investments Ltd and all subsidiary companies.
The remaining shareholders will continue the business, supported by relevant investment where appropriate, generally from resources within or managed by the companies themselves.
Acorn Web Offset Limited will continue its strategy of specialisation.
Principal risks and uncertainties
The performance of the company is dependent on the UK economy, energy wholesale prices have been falling throughout 2023/24 however they remain high compared to pre-pandemic levels. High inflation, interest rates & wage increases have offset any reductions in supplier prices which would have been expected, with only minor reductions achieved throughout the year.
The company has hedged its risks in terms of credit insurance and with its energy where practicably possible. This has provided some stability to production costs for customers during a very volatile period of trading. The hedging of future gas and electricity contracts remains under review.
The company is continually investing to help manage future increases. Whilst these investments will help, it’s unlikely that this will fully protect the company and its customers should energy, inflation and interest rates remain at high levels. The company is also exposed to movement in the price of its key raw materials and consumables such as paper, ink, and plates. However, where possible, contracts are placed with its suppliers to reduce the risk. Where price increases to our customers are necessary, these are passed on in a transparent and fair manner.
Cash and working capital are reviewed by the whole management team on a weekly basis combined with regular reviews of business performance against budget and remedial action undertaken in the event of variance.
LOSCOE INVESTMENTS LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 2 -
Research and development
Responsibility for research and development is managed by Acorn Web Offset.
Ethical and environmental matters
Loscoe Investments Limited places a strong emphasis on environmental responsibility and expects all its investments to operate in an ethically and environmentally responsible manner.
M G Roberts
Director
27 February 2025
LOSCOE INVESTMENTS LTD
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 3 -
The directors present their annual report and financial statements for the year ended 30 September 2024.
Principal activities
The principal activity of the group is that of producing high quality magazines, catalogues and brochures and an investment company.
Results and dividends
The results for the year are set out on page 8.
Ordinary dividends were paid amounting to £632,047. The directors do not recommend payment of a further dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
M R Carry
C Rennison
M G Roberts
N R Alexander
(Resigned 31 October 2023)
Future developments
These are the same as those experienced by Acorn Web Offset Limited.
Auditor
In accordance with the company’s articles, a resolution proposing that Hart Shaw LLP be reappointed as auditors of the company will be put at a General Meeting.
Statement of directors' responsibilities
The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the ;
prepare the on the going concern basis unless it is inappropriate to presume that the group and company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
LOSCOE INVESTMENTS LTD
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 4 -
Statement of disclosure to auditor
So far as the directors are aware, there is no relevant audit information of which the company's auditors are unaware. Additionally, the directors have taken all the necessary steps that they ought to have taken as directors to make themselves aware of all relevant audit information and to establish that the company's auditors are aware of that information.
On behalf of the board
M G Roberts
Director
27 February 2025
LOSCOE INVESTMENTS LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF LOSCOE INVESTMENTS LTD
- 5 -
Opinion
We have audited the financial statements of Loscoe Investments Ltd (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 September 2024 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including 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 group's and the parent company's affairs as at 30 September 2024 and of the group's 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.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and parent company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
LOSCOE INVESTMENTS LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF LOSCOE INVESTMENTS LTD
- 6 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.
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:
adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent company financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the parent company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Extent to which the audit was considered capable of detecting irregularities, including fraud and the audit response
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:
At the planning stage we identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial and sector experience and through discussion with the directors and other management, as required by auditing standards. The potential effect of any laws and regulation on the financial statements can vary considerably. There are laws and regulations that directly affect the financial statements (e.g. the Companies Act) as well as many other operational laws and regulations where the consequences of non-compliance could have a material effect on amounts or disclosures in the financial statements. Owing to the size, nature and complexity of the organisation and the applicable laws and regulations to which it must adhere, the risk of material misstatement was deemed to be moderate, therefore the procedures performed by the audit team were limited to:
Communicating identified laws and regulations at planning throughout the audit team to remain alert to any indications of non-compliance throughout the audit.
Enquiry of management and those charged with governance around actual and potential litigation and claims as well as non-compliance with laws and regulations.
Reviewing minutes of meetings of those charged with governance.
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.
Reviewing relevant certification, being for ISO 45001 and ISO 14001 to ensure the company is compliant with the latest laws and regulations.
LOSCOE INVESTMENTS LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF LOSCOE INVESTMENTS LTD
- 7 -
We have assessed the overall susceptibility of the financial statements to material misstatement due to fraud. Management override is the most likely way in which fraud might present itself and as such is inherently high risk on any audit. Management override, which may cause there to be a material misstatement within the financial statements, may present itself in a number of ways, for example:
Override of internal controls (e.g. segregation of duties)
Entering into transactions outside the normal course of business, especially with related parties
Fraudulent revenue recognition, including fictitious sales and sales being recorded in the wrong period.
In order to reduce the risk of material misstatement to an acceptable level, numerous audit procedures were performed including:
Enquiries of management as to whether they had any knowledge of any actual or suspected fraud
Review of material journal entries made throughout the year as well as those made to prepare the financial statements
Reviewing the underlying rationale behind transactions in order to assess whether they were outside the normal course of business
Increased revenue substantive testing across all material income streams.
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected material misstatements in the financial statements, even though we have performed our audit in accordance with auditing standards. Furthermore, as with all audits, there is a higher risk of irregularities (especially those relating to fraud) being undetected, as these may involve the override of internal controls, collusion, intentional omissions and misrepresentations etc. We are not responsible for preventing non-compliance or fraud and therefore cannot be expected to detect all instances of such. Our audit was not designed to identify misstatements or other irregularities that would not be considered to be material to the financial statements. The further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
Adam Shield (Senior Statutory Auditor)
For and on behalf of Hart Shaw LLP
27 February 2025
Chartered Accountants
Statutory Auditor
Europa Link
Sheffield Business Park
Sheffield
S9 1XU
LOSCOE INVESTMENTS LTD
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 8 -
2024
2023
Notes
£
£
Turnover
3
25,478,987
26,257,625
Cost of sales
(18,428,614)
(19,835,219)
Gross profit
7,050,373
6,422,406
Administrative expenses
(5,749,044)
(4,855,979)
Other operating income
3
4,091
4,427
Operating profit
4
1,305,420
1,570,854
Interest receivable and similar income
8
595
2,112
Interest payable and similar expenses
9
(109,986)
(145,857)
Profit before taxation
1,196,029
1,427,109
Tax on profit
10
(328,971)
(327,964)
Profit for the financial year
867,058
1,099,145
Profit for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.
The profit and loss account has been prepared on the basis that all operations are continuing operations.
There is no other comprehensive income other than that passing through the profit and loss account.
LOSCOE INVESTMENTS LTD
GROUP BALANCE SHEET
AS AT 30 SEPTEMBER 2024
30 September 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Goodwill
12
132,499
208,213
Tangible assets
13
3,803,899
4,299,808
3,936,398
4,508,021
Current assets
Stocks
16
1,043,671
691,947
Debtors
17
3,161,949
3,210,222
Cash at bank and in hand
220,316
566,513
4,425,936
4,468,682
Creditors: amounts falling due within one year
18
(5,271,218)
(4,521,255)
Net current liabilities
(845,282)
(52,573)
Total assets less current liabilities
3,091,116
4,455,448
Creditors: amounts falling due after more than one year
19
(1,028,578)
(1,861,861)
Provisions for liabilities
Deferred tax liability
22
480,300
497,600
(480,300)
(497,600)
Government grants
23
(16,499)
(2,613)
Net assets
1,565,739
2,093,374
Capital and reserves
Called up share capital
25
80
100
Share premium account
1,076,828
1,076,828
Capital redemption reserve
20
Profit and loss reserves
488,811
1,016,446
Total equity
1,565,739
2,093,374
These financial statements have been prepared in accordance with the provisions relating to medium-sized groups.
The financial statements were approved by the board of directors and authorised for issue on 27 February 2025 and are signed on its behalf by:
27 February 2025
M G Roberts
Director
Company registration number 10182066 (England and Wales)
LOSCOE INVESTMENTS LTD
COMPANY BALANCE SHEET
AS AT 30 SEPTEMBER 2024
30 September 2024
- 10 -
2024
2023
Notes
£
£
£
£
Fixed assets
Investments
14
4,223,019
4,223,019
Current assets
Debtors
17
60,000
Cash at bank and in hand
18,678
18,622
18,678
78,622
Creditors: amounts falling due within one year
18
(3,157,414)
(2,824,713)
Net current liabilities
(3,138,736)
(2,746,091)
Net assets
1,084,283
1,476,928
Capital and reserves
Called up share capital
25
80
100
Share premium account
1,076,828
1,076,828
Capital redemption reserve
20
Profit and loss reserves
7,355
400,000
Total equity
1,084,283
1,476,928
As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £1,002,047 (2023 - £739,156).
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.
The financial statements were approved by the board of directors and authorised for issue on 27 February 2025 and are signed on its behalf by:
27 February 2025
M G Roberts
Director
Company registration number 10182066 (England and Wales)
LOSCOE INVESTMENTS LTD
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 11 -
Share capital
Share premium account
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 October 2022
100
1,076,828
256,457
1,333,385
Year ended 30 September 2023:
Profit and total comprehensive income
-
-
-
1,099,145
1,099,145
Dividends
11
-
-
-
(339,156)
(339,156)
Balance at 30 September 2023
100
1,076,828
1,016,446
2,093,374
Year ended 30 September 2024:
Profit and total comprehensive income
-
-
-
867,058
867,058
Dividends
11
-
-
-
(632,048)
(632,048)
Purchase of own shares
25
(20)
-
20
(762,645)
(762,645)
Balance at 30 September 2024
80
1,076,828
20
488,811
1,565,739
LOSCOE INVESTMENTS LTD
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 12 -
Share capital
Share premium account
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 October 2022
100
1,076,828
1,076,928
Year ended 30 September 2023:
Profit and total comprehensive income for the year
-
-
-
739,156
739,156
Dividends
11
-
-
-
(339,156)
(339,156)
Balance at 30 September 2023
100
1,076,828
400,000
1,476,928
Year ended 30 September 2024:
Profit and total comprehensive income
-
-
-
1,002,047
1,002,047
Dividends
11
-
-
-
(632,047)
(632,047)
Redemption of shares
25
(20)
-
20
(762,645)
(762,645)
Balance at 30 September 2024
80
1,076,828
20
7,355
1,084,283
LOSCOE INVESTMENTS LTD
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 13 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
29
2,587,535
2,179,579
Interest paid
(109,986)
(145,857)
Income taxes (paid)/refunded
(467,957)
12,059
Net cash inflow from operating activities
2,009,592
2,045,781
Investing activities
Purchase of tangible fixed assets
(438,538)
(545,461)
Proceeds from disposal of tangible fixed assets
9,223
3,000
Interest received
595
2,112
Net cash used in investing activities
(428,720)
(540,349)
Financing activities
Purchase of own shares
(762,645)
Repayment of bank loans
(200,000)
(200,000)
Payment of finance leases obligations
(664,474)
(549,446)
Dividends paid to equity shareholders
(480,048)
(339,156)
Net cash used in financing activities
(2,107,167)
(1,088,602)
Net (decrease)/increase in cash and cash equivalents
(526,295)
416,830
Cash and cash equivalents at beginning of year
566,513
149,683
Cash and cash equivalents at end of year
40,218
566,513
Relating to:
Cash at bank and in hand
220,316
566,513
Bank overdrafts included in creditors payable within one year
(180,098)
-
LOSCOE INVESTMENTS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 14 -
1
Accounting policies
Company information
Loscoe Investments Ltd (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Loscoe Close, Normanton Industrial Estate, Normanton, WF6 1TW.
The group consists of Loscoe Investments Ltd and all of its subsidiaries.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:
Section 7 ‘Statement of Cash Flows’ – Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues’ – Carrying amounts, interest income/expense and net gains/losses for each category of financial instrument; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 26 ‘Share based Payment’ – Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;
Section 33 ‘Related Party Disclosures’ – Compensation for key management personnel.
1.2
Business combinations
In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.
LOSCOE INVESTMENTS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 15 -
1.3
Basis of consolidation
The consolidated financial statements incorporate those of Loscoe Investments Ltd and all of its subsidiaries (i.e entities that the group controls through its power to govern the financial and operating policies so as to obtain economic benefits). Subsidiaries acquired during the year are consolidated using the purchase method. Their results are incorporated from the date that control passes.
All financial statements are made up to 30 September 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
1.4
Going concern
At the time of approving the financial statements, the directors have a reasonable expectation that the group and company have adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.5
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on despatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
1.6
Intangible fixed assets - goodwill
Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.
For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.
1.7
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
LOSCOE INVESTMENTS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 16 -
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Short leasehold land and buildings
Life of lease
Plant and equipment
3-10 years straight line
Fixtures and fittings
3-10 years straight line
Computer equipment
3-10 years straight line
Motor vehicles
5 years straight line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.
1.8
Fixed asset investments
In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
1.9
Impairment of fixed assets
At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
1.10
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.11
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.12
Financial instruments
The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
LOSCOE INVESTMENTS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 17 -
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, 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 receipts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.
LOSCOE INVESTMENTS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 18 -
1.13
Equity instruments
Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.
1.14
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.
1.15
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.16
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.17
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.
LOSCOE INVESTMENTS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 19 -
1.18
Government grants
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.
1.19
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
1.20
Certain prior year amounts have been reclassified for consistency with the current year presentation. These reclassifications had no effect on the reported results of operations. A presentational adjustment has been made within cost of sales to remove subcontract labour from wages and salaries. Wages and salaries reported in 2023 were £5,081,526.
2
Judgements and key sources of estimation uncertainty
In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
There are no estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities.
3
Turnover
An analysis of the group's turnover is as follows:
2024
2023
£
£
Turnover analysed by class of business
Sale of goods
25,478,987
26,257,625
The turnover is a single class of business wholly within the United Kingdom.
LOSCOE INVESTMENTS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 20 -
4
Operating profit
2024
2023
£
£
Operating profit for the year is stated after charging/(crediting):
Government grants
(4,091)
(4,427)
Depreciation of owned tangible fixed assets
328,737
297,373
Depreciation of tangible fixed assets held under finance leases
605,490
653,627
Profit on disposal of tangible fixed assets
(9,003)
(1,565)
Amortisation of intangible assets
75,714
75,714
Operating lease charges
392,429
302,000
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
4,200
4,000
Audit of the financial statements of the company's subsidiaries
15,000
14,500
19,200
18,500
6
Employees
The average monthly number of persons (including directors) employed by the group and company during the year was:
Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
Administration
19
20
3
4
Sales
5
5
-
-
Production
105
104
-
-
129
129
3
4
Their aggregate remuneration comprised:
Group
Restated
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
4,673,798
4,605,089
Social security costs
474,375
465,753
-
-
Pension costs
289,699
276,002
5,437,872
5,346,844
LOSCOE INVESTMENTS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 21 -
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
23,792
56,534
Company pension contributions to defined contribution schemes
65,614
65,593
89,406
122,127
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 3 (2023 - 4). It is considered that the directors are the key management personnel of the group.
8
Interest receivable and similar income
2024
2023
£
£
Interest income
Other interest income
595
2,112
9
Interest payable and similar expenses
2024
2023
£
£
Interest on bank overdrafts and loans
44,325
53,229
Interest on finance leases and hire purchase contracts
65,661
92,628
Total finance costs
109,986
145,857
10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
346,271
327,464
Deferred tax
Origination and reversal of timing differences
(17,300)
500
Total tax charge
328,971
327,964
LOSCOE INVESTMENTS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
10
Taxation
(Continued)
- 22 -
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2024
2023
£
£
Profit before taxation
1,196,029
1,427,109
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 22.01%)
299,007
314,107
Tax effect of expenses that are not deductible in determining taxable profit
8,734
4,773
Tax effect of income not taxable in determining taxable profit
(1,023)
(1,318)
Depreciation on assets not qualifying for tax allowances
3,324
3,496
Amortisation on assets not qualifying for tax allowances
18,929
16,664
Capital allowances in respect of superdeductions
(9,758)
Taxation charge
328,971
327,964
11
Dividends
2024
2023
Recognised as distributions to equity holders:
£
£
Interim paid
632,047
339,156
12
Intangible fixed assets
Group
Goodwill
£
Cost
At 1 October 2023 and 30 September 2024
757,139
Amortisation and impairment
At 1 October 2023
548,926
Amortisation charged for the year
75,714
At 30 September 2024
624,640
Carrying amount
At 30 September 2024
132,499
At 30 September 2023
208,213
The company had no intangible fixed assets at 30 September 2024 or 30 September 2023.
LOSCOE INVESTMENTS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 23 -
13
Tangible fixed assets
Group
Short leasehold land and buildings
Plant and equipment
Fixtures and fittings
Computer equipment
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 October 2023
406,682
13,221,155
195,910
390,726
140,897
14,355,370
Additions
12,340
359,522
22,489
27,425
16,762
438,538
Disposals
(312,336)
(8,797)
(20,066)
(341,199)
At 30 September 2024
419,022
13,268,341
209,602
398,085
157,659
14,452,709
Depreciation and impairment
At 1 October 2023
249,521
9,289,418
95,024
322,341
99,258
10,055,562
Depreciation charged in the year
33,268
822,857
27,333
35,578
15,191
934,227
Eliminated in respect of disposals
(312,336)
(8,797)
(19,846)
(340,979)
At 30 September 2024
282,789
9,799,939
113,560
338,073
114,449
10,648,810
Carrying amount
At 30 September 2024
136,233
3,468,402
96,042
60,012
43,210
3,803,899
At 30 September 2023
157,161
3,931,737
100,886
68,385
41,639
4,299,808
The company had no tangible fixed assets at 30 September 2024 or 30 September 2023.
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
Group
Company
2024
2023
2024
2023
£
£
£
£
Plant and equipment
2,729,461
3,334,951
Depreciation charge for the year in respect of leased assets
605,490
653,627
-
-
14
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
15
4,223,019
4,223,019
LOSCOE INVESTMENTS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
14
Fixed asset investments
(Continued)
- 24 -
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 October 2023 and 30 September 2024
4,223,019
Carrying amount
At 30 September 2024
4,223,019
At 30 September 2023
4,223,019
15
Subsidiaries
Details of the company's subsidiaries at 30 September 2024 are as follows:
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Indirect
Aberdeen Industry Investments Limited
United Kingdom
Ordinary
100.00
-
Acorn Web Offset Limited
United Kingdom
Ordinary
-
100.00
Investment in Media Limited
United Kingdom
Ordinary
15.00
85.00
16
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Raw materials and consumables
544,102
477,801
-
-
Work in progress
499,569
214,146
-
-
1,043,671
691,947
-
-
17
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
2,588,693
2,775,662
Amounts owed by group undertakings
-
-
-
60,000
Other debtors
272,683
282,287
Prepayments and accrued income
300,573
152,273
3,161,949
3,210,222
-
60,000
Trade debtors totalling £2,440,603 (2023 - £2,375,747) were subject to invoice discounting arrangements.
LOSCOE INVESTMENTS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 25 -
18
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts
20
380,098
200,000
Obligations under finance leases
21
634,819
666,010
Trade creditors
3,190,808
2,641,293
Amounts owed to group undertakings
2,962,919
2,782,218
Corporation tax payable
205,778
327,464
Other taxation and social security
121,713
116,690
-
-
Other creditors
222,780
79,016
194,495
42,495
Accruals and deferred income
515,222
490,782
5,271,218
4,521,255
3,157,414
2,824,713
The obligations under finance leases are secured as disclosed in note 26.
Company
The amounts owed to group undertakings are interest free, unsecured, and are repayable within 6 months of request.
19
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts
20
166,667
366,667
Obligations under finance leases
21
861,911
1,495,194
1,028,578
1,861,861
-
-
The obligations under finance leases are secured as disclosed in note 26.
20
Loans and overdrafts
Group
Company
2024
2023
2024
2023
£
£
£
£
Bank loans
366,667
566,667
Invoice discounting
180,098
546,765
566,667
-
-
Payable within one year
380,098
200,000
Payable after one year
166,667
366,667
LOSCOE INVESTMENTS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
20
Loans and overdrafts
(Continued)
- 26 -
The bank loan is paid in 72 monthly instalments, maturing June 2026. Interest is charged at a rate of 3.99% above the Bank of England Base Rate. The bank loan and invoice discounting facility are secured as disclosed in note 26.
21
Finance lease obligations
Group
Company
2024
2023
2024
2023
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
674,942
742,022
In two to five years
882,236
1,558,688
1,557,178
2,300,710
-
-
Less: future finance charges
(60,448)
(139,506)
1,496,730
2,161,204
Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 3 - 7 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
22
Deferred taxation
Deferred tax assets and liabilities are offset where the group or company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:
Liabilities
Liabilities
2024
2023
Group
£
£
Accelerated capital allowances
486,570
500,260
Short term timing differences
(6,270)
(2,660)
480,300
497,600
The company has no deferred tax assets or liabilities.
Group
Company
2024
2024
Movements in the year:
£
£
Liability at 1 October 2023
497,600
-
Credit to profit or loss
(17,300)
-
Liability at 30 September 2024
480,300
-
LOSCOE INVESTMENTS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 27 -
23
Government grants
Group
Company
2024
2023
2024
2023
£
£
£
£
Arising from government grants
16,499
2,613
-
-
Deferred income is included in the financial statements as follows:
Shown as deferred income on the face of the balance sheet
16,499
2,613
In 2014 a grant was awarded to Acorn Web Offset Limited towards the initial acquisition of plant and machinery and towards the creation of jobs and continued employment in these new jobs. The element of the grant relating to continued employment is being released over the period the group is committed to employing the individuals.
During the year, a grant was awarded for business sustainability support from West Yorkshire Combined Authority. The grant was used to purchase tangible fixed assets and the grant is being released over the useful life of these assets.
24
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
289,699
276,002
A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.
25
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Class A ordinary shares of 1p each
4,000
4,000
40
40
Class B ordinary shares of 1p each
3,500
3,500
35
35
Class C ordinary shares of 1p each
500
500
5
5
Class D ordinary shares of 1p each
-
2,000
-
20
8,000
10,000
80
100
Shares range from classes A to D, each share class confers the same rights including full voting, dividend and capital distribution rights.
On 31 October 2023 the company entered into a share buyback agreement for 2,000 ordinary D shares for consideration of £763,000. Following the buyback the shares in the company were cancelled.
LOSCOE INVESTMENTS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 28 -
26
Financial commitments, guarantees and contingent liabilities
The bank holds a debenture including fixed charge over all present freehold and leasehold property; first fixed charge over book and other debts, chattels, goodwill and uncalled capital, both present and future; and first floating charge over all assets and undertaking both present and future. The above debenture covers all group companies.
As a result, at 30 September 2024 the parent company, Loscoe Investments Ltd, has pledged the above as security over group borrowings which amounted to £1,824,359 (2023 - £2,098,376).
27
Operating lease commitments
Lessee
At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
Group
Company
2024
2023
2024
2023
£
£
£
£
Within one year
450,488
315,251
-
-
Between two and five years
1,522,948
925,788
-
-
In over five years
3,409,000
564,502
-
-
5,382,436
1,805,541
-
-
LOSCOE INVESTMENTS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 29 -
28
Related party transactions
The company has taken advantage of the exemption relating to the exclusion of reporting transactions with wholly owned subsidiaries.
Dividends totalling £632,047 (2023 - £339,156) were paid in the year in respect of shares held by the company's directors. Included in other creditors is £194,495 (2023 - £42,495) owed to the directors, these loans are unsecured, interest free and have no set repayment terms.
On 31 October 2023 the company entered into a share buyback agreement with one of the directors for consideration of £763,000.
29
Cash generated from operations - group
2024
2023
£
£
Profit for the year after tax
867,058
1,099,145
Adjustments for:
Taxation charged
328,971
327,964
Finance costs
109,986
145,857
Investment income
(595)
(2,112)
Gain on disposal of tangible fixed assets
(9,003)
(1,565)
Amortisation and impairment of intangible assets
75,714
75,714
Depreciation and impairment of tangible fixed assets
934,227
951,000
Increase/(decrease) in deferred income
13,886
(4,427)
Movements in working capital:
(Increase)/decrease in stocks
(351,724)
245,953
Decrease in debtors
48,273
137,071
Increase/(decrease) in creditors
570,742
(795,021)
Cash generated from operations
2,587,535
2,179,579
30
Analysis of changes in net debt - group
1 October 2023
Cash flows
30 September 2024
£
£
£
Cash at bank and in hand
566,513
(346,197)
220,316
Bank overdrafts
(180,098)
(180,098)
566,513
(526,295)
40,218
Borrowings excluding overdrafts
(566,667)
200,000
(366,667)
Obligations under finance leases
(2,161,204)
664,474
(1,496,730)
(2,161,358)
338,179
(1,823,179)
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