Company registration number 10998765 (England and Wales)
LYNX EQUITY (U.K.) LIMITED AND ITS SUBSIDIARY UNDERTAKINGS
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024
LYNX EQUITY (U.K.) LIMITED AND ITS SUBSIDIARY UNDERTAKINGS
COMPANY INFORMATION
Directors
B Nathan
J Lipfeld
Company number
10998765
Registered office
c/o TMF Group
13th Floor
One Angel Court
London
United Kingdom
EC2R 7HJ
Auditor
Azets Audit Services
West point
Lynch Wood
Peterborough
Cambridgeshire
United Kingdom
PE2 6FZ
Bankers
Santander
Bridle Road
Bootle
Merseyside
United Kingdom
L30 4GB
LYNX EQUITY (U.K.) LIMITED AND ITS SUBSIDIARY UNDERTAKINGS
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Profit and loss account
8
Group statement of comprehensive income
9
Group balance sheet
10
Company balance sheet
11
Group statement of changes in equity
12
Company statement of changes in equity
13
Group statement of cash flows
14
Company statement of cash flows
15
Notes to the financial statements
16 - 33
LYNX EQUITY (U.K.) LIMITED AND ITS SUBSIDIARY UNDERTAKINGS
STRATEGIC REPORT
FOR THE YEAR ENDED 31 JULY 2024
- 1 -

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

Review of the business

We are satisfied with the performance of all companies. We remain focused on each company achieving its EBITDA targets. The group saw an increase in EBITDAM during the year to £3,470,645 (2023 - £3,295,520). In cases where risks have been identified throughout the year, clear strategies have been identified to mitigate these risks, and strong progress was demonstrated by year end.

Promoting the success of the company

The Directors of Lynx Equity (U.K.) Limited consider that they have acted in good faith, and in a manner they consider is the most likely to promote the success of the Company for the benefit of its members as a whole as defined by s172(1)(a-f) of the Companies Act 2006, in the decisions taken during the year ended 31 July 2024. In particular;

 

(a) Likely consequences of any decision in the long-term

Our business model and strategy are designed to ensure sustainable long-term growth while delivering strong results in the current financial period. We focus on decisions that balance short-term performance with long-term value creation.

 

(b) The interests of the company’s employees

Our employees are central to the successful execution of our strategy. We are committed to maintaining safe and compliant working conditions, regularly reviewing practices to ensure the well-being of our workforce.

 

(c) The need to foster the company’s business relationships with suppliers, customers, and others

Engaging with stakeholders is a key aspect of our approach, fostering strong relationships and partnerships that support our business success. We focus on innovation and developing resources to enhance customer satisfaction and retention, supporting the growth of both our business and those of our customers.

 

(d) The impact of the company’s operations on the community and the environment

We are dedicated to making a positive contribution to our local communities and minimizing our environmental impact. We aim to act responsibly and contribute to long-term environmental sustainability.

 

(e) The desirability of the company maintaining a reputation for high standards of business conduct

The board is committed to upholding high standards of business conduct, corporate governance, and ethical integrity. We strive to maintain transparency and fairness in all of our operations to ensure trust with our stakeholders and support our reputation for responsible business practices.

 

(f) The need to act fairly as between members of the company

The board is committed to ensuring fairness among all members of the company. Decisions are made with consideration to the interests of all shareholders, ensuring equal treatment and transparency in all matters affecting the company’s governance and operations.

On behalf of the board

J Lipfeld
Director
13 January 2025
LYNX EQUITY (U.K.) LIMITED AND ITS SUBSIDIARY UNDERTAKINGS
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 JULY 2024
- 2 -

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

Principal activities

The principal activity of the company and group continued to be that of investing in small and medium sized companies.

Results and dividends

The results for the year are set out on page 8.

No ordinary dividends were paid. 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:

B Nathan
J Lipfeld
Disabled persons

We are an equal opportunity employer that recognizes the value of a diverse workforce and we are committed to fostering an inclusive, open environment, where all employees feel valued and respected. As part of this commitment, we will provide reasonable accommodations when required, so that our workplace remains accessible and that our employees feel supported.

Employee involvement

The group's policy is to consult (when applicable) and directly discuss with employees, matters likely to affect employees' interests such as the financial and economic factors affecting the company’s performance. Further, we are committed to providing relevant information through unions (if applicable), staff councils, bulletins, and at company meetings.

There is no employee share scheme at present, but if this changes, employees will be notified.

Auditor

In accordance with the company's articles, a resolution proposing that be reappointed as auditor of the group will be put at a General Meeting.

Energy and carbon report

As the company has not consumed more than 40,000 kWh of energy in this reporting period, it qualifies as a low energy user under these regulations and is not required to report on its emissions, energy consumption or energy efficiency activities.

 

The group has considered the energy use and carbon reporting of all subsidiaries included in the consolidation. In line with the environmental reporting guidelines, the group has taken advantage of the option to exclude the energy and carbon information of UK subsidiaries where the subsidiary would not be obliged to report such data on its own, due to the size of the subsidiary entity. Additionally, the overseas subsidiaries do not have any UK energy use, and therefore, no energy or carbon disclosure is required for them.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

LYNX EQUITY (U.K.) LIMITED AND ITS SUBSIDIARY UNDERTAKINGS
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 3 -
On behalf of the board
J Lipfeld
Director
13 January 2025
LYNX EQUITY (U.K.) LIMITED AND ITS SUBSIDIARY UNDERTAKINGS
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 JULY 2024
- 4 -

The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

LYNX EQUITY (U.K.) LIMITED AND ITS SUBSIDIARY UNDERTAKINGS
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF LYNX EQUITY (U.K.) LIMITED AND ITS SUBSIDIARY UNDERTAKINGS
- 5 -
Opinion

We have audited the financial statements of Lynx Equity (U.K.) Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 July 2024 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows, the company statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including 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:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent 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.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

LYNX EQUITY (U.K.) LIMITED AND ITS SUBSIDIARY UNDERTAKINGS
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF LYNX EQUITY (U.K.) LIMITED AND ITS SUBSIDIARY UNDERTAKINGS
- 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:

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.

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.

LYNX EQUITY (U.K.) LIMITED AND ITS SUBSIDIARY UNDERTAKINGS
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF LYNX EQUITY (U.K.) LIMITED AND ITS SUBSIDIARY UNDERTAKINGS
- 7 -

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.

 

We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework.  Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.  This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.

 

In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:

 

 

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation.  This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance.  The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Use of our report

This report is made solely to the management of the parent company. Our audit work has been undertaken so that we might state to the management of the parent company 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 management of the parent company, for our audit work, for this report, or for the opinions we have formed.

Tracey Richardson BSc (Hons) FCA (Senior Statutory Auditor)
For and on behalf of Azets Audit Services
22 January 2025
Chartered Accountants
Statutory Auditor
Westpoint
Lynch Wood
Peterborough
Cambridgeshire
United Kingdom
PE2 6FZ
LYNX EQUITY (U.K.) LIMITED AND ITS SUBSIDIARY UNDERTAKINGS
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 JULY 2024
- 8 -
2024
2023
Notes
£
£
Turnover
3
56,703,701
49,407,713
Cost of sales
(30,991,406)
(28,230,868)
Gross profit
25,712,295
21,176,845
Administrative expenses
(26,930,699)
(21,457,339)
Other operating income
229,842
276,913
Operating loss
4
(988,562)
(3,581)
Interest receivable and similar income
6
15,418
9,287
Interest payable and similar expenses
8
(2,651,313)
(2,867,520)
Amounts written off investments
-
(23,956)
Loss before taxation
(3,624,457)
(2,885,770)
Tax on loss
9
(391,109)
(133,649)
Loss for the financial year
(4,015,566)
(3,019,419)
Loss for the financial year is all attributable to the owners of the parent company.
LYNX EQUITY (U.K.) LIMITED AND ITS SUBSIDIARY UNDERTAKINGS
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 JULY 2024
- 9 -
2024
2023
£
£
Loss for the year
(4,015,566)
(3,019,419)
Other comprehensive income
Currency translation (loss)/gain taken to retained earnings
(134,222)
163,154
Total comprehensive income for the year
(4,149,788)
(2,856,265)
Total comprehensive income for the year is all attributable to the owners of the parent company.
LYNX EQUITY (U.K.) LIMITED AND ITS SUBSIDIARY UNDERTAKINGS
GROUP BALANCE SHEET
AS AT
31 JULY 2024
31 July 2024
- 10 -
2024
2023
Notes
£
£
£
£
Fixed assets
Goodwill
10
15,063,636
13,372,398
Other intangible assets
10
144,090
146,396
Total intangible assets
15,207,726
13,518,794
Tangible assets
11
2,813,173
1,637,857
18,020,899
15,156,651
Current assets
Stocks
14
5,471,461
3,071,521
Debtors
15
14,333,831
7,999,284
Cash at bank and in hand
4,495,236
3,755,995
24,300,528
14,826,800
Creditors: amounts falling due within one year
16
(30,764,590)
(17,086,266)
Net current liabilities
(6,464,062)
(2,259,466)
Total assets less current liabilities
11,556,837
12,897,185
Creditors: amounts falling due after more than one year
17
(22,233,580)
(19,538,943)
Provisions for liabilities
Deferred tax liability
19
422,116
307,313
(422,116)
(307,313)
Net liabilities
(11,098,859)
(6,949,071)
Capital and reserves
Called up share capital
21
5,140,646
5,140,646
Profit and loss reserves
(16,239,505)
(12,089,717)
Total equity
(11,098,859)
(6,949,071)
The financial statements were approved by the board of directors and authorised for issue on 13 January 2025 and are signed on its behalf by:
13 January 2025
J Lipfeld
Director
Company registration number 10998765 (England and Wales)
LYNX EQUITY (U.K.) LIMITED AND ITS SUBSIDIARY UNDERTAKINGS
COMPANY BALANCE SHEET
AS AT 31 JULY 2024
31 July 2024
- 11 -
2024
2023
Notes
£
£
£
£
Fixed assets
Investments
12
20,666,004
20,666,004
Current assets
Debtors
15
47,782
24,534
Cash at bank and in hand
265,125
259,698
312,907
284,232
Creditors: amounts falling due within one year
16
(9,915,080)
(9,315,296)
Net current liabilities
(9,602,173)
(9,031,064)
Total assets less current liabilities
11,063,831
11,634,940
Creditors: amounts falling due after more than one year
17
(15,150,000)
(15,227,608)
Net liabilities
(4,086,169)
(3,592,668)
Capital and reserves
Called up share capital
21
5,140,646
5,140,646
Profit and loss reserves
(9,226,815)
(8,733,314)
Total equity
(4,086,169)
(3,592,668)

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s loss for the year was £493,501 (2023 - £463,785 profit).

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the board of directors and authorised for issue on 13 January 2025 and are signed on its behalf by:
13 January 2025
J Lipfeld
Director
Company registration number 10998765 (England and Wales)
LYNX EQUITY (U.K.) LIMITED AND ITS SUBSIDIARY UNDERTAKINGS
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JULY 2024
- 12 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 August 2022
5,140,646
(9,233,452)
(4,092,806)
Year ended 31 July 2023:
Loss for the year
-
(3,019,419)
(3,019,419)
Other comprehensive income:
Currency translation differences
-
163,154
163,154
Total comprehensive income
-
(2,856,265)
(2,856,265)
Balance at 31 July 2023
5,140,646
(12,089,717)
(6,949,071)
Year ended 31 July 2024:
Loss for the year
-
(4,015,566)
(4,015,566)
Other comprehensive income:
Currency translation differences
-
(134,222)
(134,222)
Total comprehensive income
-
(4,149,788)
(4,149,788)
Balance at 31 July 2024
5,140,646
(16,239,505)
(11,098,859)
LYNX EQUITY (U.K.) LIMITED AND ITS SUBSIDIARY UNDERTAKINGS
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JULY 2024
- 13 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 August 2022
5,140,646
(9,197,099)
(4,056,453)
Year ended 31 July 2023:
Profit and total comprehensive income for the year
-
463,785
463,785
Balance at 31 July 2023
5,140,646
(8,733,314)
(3,592,668)
Year ended 31 July 2024:
Profit and total comprehensive income
-
(493,501)
(493,501)
Balance at 31 July 2024
5,140,646
(9,226,815)
(4,086,169)
LYNX EQUITY (U.K.) LIMITED AND ITS SUBSIDIARY UNDERTAKINGS
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 JULY 2024
- 14 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
23
10,643,052
18,759,937
Interest paid
(2,754,351)
(2,899,219)
Income taxes (paid)/refunded
(302,677)
207,666
Net cash inflow from operating activities
7,586,024
16,068,384
Investing activities
Purchase of subsidiaries
(8,010,956)
(13,116,543)
Purchase of tangible fixed assets
(1,560,541)
(423,365)
Proceeds on disposal of tangible fixed assets
7,035
53,510
Purchase of intangibles
(63,988)
(50,668)
Receipts arising from loans made
-
(7,236)
Interest received
148,477
42,739
Net cash used in investing activities
(9,479,973)
(13,501,563)
Financing activities
Increase in borrowings
2,672,976
(932,146)
Payment of finance leases obligations
(24,066)
(25,132)
Net cash generated from/(used in) financing activities
2,648,910
(957,278)
Net increase in cash and cash equivalents
754,961
1,609,543
Cash and cash equivalents at beginning of year
3,740,275
2,130,732
Cash and cash equivalents at end of year
4,495,236
3,740,275
Relating to:
Cash at bank and in hand
4,495,236
3,755,995
Bank overdrafts included in creditors payable within one year
-
(15,720)
LYNX EQUITY (U.K.) LIMITED AND ITS SUBSIDIARY UNDERTAKINGS
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 JULY 2024
- 15 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
24
52,864
8,063,632
Interest paid
(2,047,437)
(2,070,937)
Net cash (outflow)/inflow from operating activities
(1,994,573)
5,992,695
Investing activities
Purchase of subsidiaries
-
(9,000,000)
Dividends received
2,000,000
3,000,000
Net cash generated from/(used in) investing activities
2,000,000
(6,000,000)
Net increase/(decrease) in cash and cash equivalents
5,427
(7,305)
Cash and cash equivalents at beginning of year
259,698
267,003
Cash and cash equivalents at end of year
265,125
259,698
LYNX EQUITY (U.K.) LIMITED AND ITS SUBSIDIARY UNDERTAKINGS
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024
- 16 -
1
Accounting policies
Company information

Lynx Equity (U.K.) Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is c/o TMF Group, One Angel Court, London, United Kingdom, EC2R 7HJ.

 

The group consists of Lynx Equity (U.K.) Limited and all of its subsidiaries.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2
Business combinations

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

 

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

1.3
Basis of consolidation

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

 

All financial statements are made up to 31 July 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.

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

LYNX EQUITY (U.K.) LIMITED AND ITS SUBSIDIARY UNDERTAKINGS
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
1
Accounting policies
(Continued)
- 17 -

Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.

Investments in joint ventures and associates are carried in the group balance sheet at cost plus post-acquisition changes in the group’s share of the net assets of the entity, less any impairment in value. The carrying values of investments in joint ventures and associates include acquired goodwill.

 

If the group’s share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the group does not recognise further losses unless it has incurred obligations to do so or has made payments on behalf of the joint venture or associate.

 

Unrealised gains arising from transactions with joint ventures and associates are eliminated to the extent of the group’s interest in the entity.

1.4
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

 

The company is dependent on the continued support of the company's ultimate parent undertaking. The directors believe that finance will be available if required and that it is therefore appropriate to prepare the accounts on a going concern basis.

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.

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

1.6
Research and development expenditure

Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.

1.7
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.

LYNX EQUITY (U.K.) LIMITED AND ITS SUBSIDIARY UNDERTAKINGS
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
1
Accounting policies
(Continued)
- 18 -
1.8
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

 

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

Amortisation 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:

Development costs
5 years straight line
Other intangibles
5 years straight line
1.9
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Leasehold land and buildings
20-50 years straight line
Leasehold improvements
20% straight line
Plant and equipment
10% - 50% straight line
Fixtures and fittings
15% straight line
Computers
15% - 33% straight line
Motor vehicles
25% reducing balance

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.

1.10
Fixed asset investments

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

 

In the parent company reports, 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.

LYNX EQUITY (U.K.) LIMITED AND ITS SUBSIDIARY UNDERTAKINGS
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
1
Accounting policies
(Continued)
- 19 -

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

 

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

 

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

 

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

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

1.11
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.

 

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

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.12
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

LYNX EQUITY (U.K.) LIMITED AND ITS SUBSIDIARY UNDERTAKINGS
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
1
Accounting policies
(Continued)
- 20 -

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.

1.13
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.

1.14
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.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

LYNX EQUITY (U.K.) LIMITED AND ITS SUBSIDIARY UNDERTAKINGS
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
1
Accounting policies
(Continued)
- 21 -
Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Other financial liabilities

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

 

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

Derecognition of financial liabilities

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

1.15
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.

1.16
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.

LYNX EQUITY (U.K.) LIMITED AND ITS SUBSIDIARY UNDERTAKINGS
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
1
Accounting policies
(Continued)
- 22 -
Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.17
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.

1.18
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.19
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.

1.20
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.

The directors are of the view that the cost of converting comparatives from IFRS to FRS102 is not warranted. It is the opinion of the directors that the financial statements give a true and fair view of the group's financial position, financial performance and cashflows without the inclusion of the comparative figures.

LYNX EQUITY (U.K.) LIMITED AND ITS SUBSIDIARY UNDERTAKINGS
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 23 -
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.

3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Label Express Limited
3,773,643
4,080,937
Signalhome Limited
897,646
895,800
Day 2 Interiors Limited
16,455,722
21,537,153
Sundby Trapper A/S
1,326,080
1,399,048
Partnerservice Hver Gang ApS
11,032,582
9,485,603
Arkas A/S
3,869,883
4,045,959
JD Stal ApS
4,414,831
-
Obel-P Automation A/S
5,492,258
6,010,661
Majland Stauder ApS
2,643,169
1,952,552
Dan Egtved
6,797,887
-
56,703,701
49,407,713
2024
2023
£
£
Turnover analysed by geographical market
UK
20,695,557
25,205,887
Non UK
36,008,144
24,201,826
56,703,701
49,407,713
2024
2023
£
£
Other revenue
Interest income
15,418
9,287
LYNX EQUITY (U.K.) LIMITED AND ITS SUBSIDIARY UNDERTAKINGS
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 24 -
4
Operating loss
2024
2023
£
£
Operating loss for the year is stated after charging/(crediting):
Exchange losses
924
23,584
Depreciation of owned tangible fixed assets
384,141
313,482
Profit on disposal of tangible fixed assets
-
(10,755)
Amortisation of intangible assets
2,715,430
2,484,420
Operating lease charges
1,151,032
1,027,229
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
17,000
17,000
Audit of the financial statements of the company's subsidiaries
23,500
18,230
40,500
35,230
6
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
15,418
9,287
2024
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
15,418
9,287
7
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
353
260
-
0
-
0
LYNX EQUITY (U.K.) LIMITED AND ITS SUBSIDIARY UNDERTAKINGS
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
7
Employees
(Continued)
- 25 -

Their aggregate remuneration comprised:

Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
18,537,704
14,655,171
-
0
-
0
Social security costs
202,996
236,193
-
-
Pension costs
258,490
224,735
-
0
-
0
18,999,190
15,116,099
-
0
-
0
8
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
135,517
91,942
Other interest on financial liabilities
2,514,425
2,773,803
2,649,942
2,865,745
Other finance costs:
Interest on finance leases and hire purchase contracts
1,371
1,775
Total finance costs
2,651,313
2,867,520
9
Taxation
2024
2023
£
£
Current tax
Foreign current tax on profits for the current period
268,257
132,903
Deferred tax
Origination and reversal of timing differences
122,852
746
Total tax charge
391,109
133,649
LYNX EQUITY (U.K.) LIMITED AND ITS SUBSIDIARY UNDERTAKINGS
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
9
Taxation
(Continued)
- 26 -

The actual charge for the year can be reconciled to the expected credit for the year based on the profit or loss and the standard rate of tax as follows:

2024
2023
£
£
Loss before taxation
(3,624,457)
(2,885,770)
Expected tax credit based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
(906,114)
(548,296)
Tax effect of expenses that are not deductible in determining taxable profit
27,033
16,551
Losses carried forward
656,052
166,980
Effect of overseas tax rates
71,548
47,206
Effect of capital allowances
(247,574)
(7,159)
Deferred tax movement
127,214
746
Goodwill ammortisation
662,950
457,621
Taxation charge
391,109
133,649
10
Intangible fixed assets
Group
Goodwill
Development costs
Other intangibles
Total
£
£
£
£
Cost
At 1 August 2023
24,360,021
289,002
5,086
24,654,109
Additions
4,343,030
63,988
-
0
4,407,018
Exchange adjustments
(3,911)
(5,305)
-
0
(9,216)
At 31 July 2024
28,699,140
347,685
5,086
29,051,911
Amortisation and impairment
At 1 August 2023
10,987,623
144,257
3,435
11,135,315
Amortisation charged for the year
2,651,792
61,987
1,651
2,715,430
Exchange adjustments
(3,911)
(2,649)
-
0
(6,560)
At 31 July 2024
13,635,504
203,595
5,086
13,844,185
Carrying amount
At 31 July 2024
15,063,636
144,090
-
0
15,207,726
At 31 July 2023
13,372,398
144,745
1,651
13,518,794
The company had no intangible fixed assets at 31 July 2024 or 31 July 2023.
LYNX EQUITY (U.K.) LIMITED AND ITS SUBSIDIARY UNDERTAKINGS
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 27 -
11
Tangible fixed assets
Group
Leasehold land and buildings
Leasehold improvements
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
£
£
Cost
At 1 August 2023
1,510,778
3,375
2,990,947
24,386
466,803
240,964
5,237,253
Additions
407,598
7,769
836,595
71,594
92,079
-
0
1,415,635
Business combinations
-
0
-
0
184,114
-
0
-
0
-
0
184,114
Disposals
(4,652)
(3,375)
(407,821)
(19,548)
(18,255)
-
0
(453,651)
Exchange adjustments
(26,246)
-
0
(64,084)
-
0
(3,424)
-
0
(93,754)
At 31 July 2024
1,887,478
7,769
3,539,751
76,432
537,203
240,964
6,289,597
Depreciation and impairment
At 1 August 2023
670,346
3,375
2,383,328
24,195
350,881
175,345
3,607,470
Depreciation charged in the year
78,439
259
257,905
2,456
31,125
13,957
384,141
Eliminated in respect of disposals
(1,535)
(3,375)
(401,843)
(19,548)
(18,255)
-
0
(444,556)
Exchange adjustments
(10,819)
-
0
(58,191)
-
0
(1,621)
-
0
(70,631)
At 31 July 2024
736,431
259
2,181,199
7,103
362,130
189,302
3,476,424
Carrying amount
At 31 July 2024
1,151,047
7,510
1,358,552
69,329
175,073
51,662
2,813,173
At 31 July 2023
840,432
-
0
615,693
191
115,922
65,619
1,637,857
LYNX EQUITY (U.K.) LIMITED AND ITS SUBSIDIARY UNDERTAKINGS
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 28 -
12
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
13
-
0
-
0
20,666,004
20,666,004
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 August 2023 and 31 July 2024
20,666,004
Carrying amount
At 31 July 2024
20,666,004
At 31 July 2023
20,666,004
13
Subsidiaries

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

Name of undertaking
Address
Class of
% Held
shares held
Direct
Lynx Equity (U.K.) Limited
England & Wales
Ordinary
100.00
Label Express Limited
England & Wales
Ordinary
100.00
Signalhome Limited
England & Wales
Ordinary
100.00
Day 2 Interiors Limited
England & Wales
Ordinary
100.00
Sundby Trapper A/S
Denmark
Ordinary
100.00
Partnerservice Hver Gang ApS
Denmark
Ordinary
100.00
Lynx Equity Scandinavia ApS
Denmark
Ordinary
100.00
Arkas A/S
Denmark
Ordinary
100.00
Majland Stauder ApS
Denmark
Ordinary
100.00
Obel-P Automation A/S
Denmark
Ordinary
100.00
JD Stal ApS
Denmark
Orindary
100.00
Dan Egtved ApS
Denmark
Ordinary
100.00
LYNX EQUITY (U.K.) LIMITED AND ITS SUBSIDIARY UNDERTAKINGS
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
13
Subsidiaries
(Continued)
- 29 -

Registered office addresses (all UK unless otherwise indicated):

1
C/O Tmf Group 8th Floor, 20 Farringdon Street, London, United Kingdom, EC4A 4AB
2
8 Bath Road, Beddington Lane, Croydon, United Kingdom, CR0 4TT
3
Cambridge House, End of Walcot Road, Enfield, United Kingdom, EN4 7NF
4
2 Woodbridge Street, London, United Kingdom, EC1R 0DG
5
Smedevej, Sundby, 7950 Erslev, Denmark
6
Amager Strandvej 390 1, 2770 Kastrup, Denmark
7
Frederiksgade 19 3, 1265 Kobenhavn, Denmark
8
Raskvej 56, 8763 Rask Molle, Denmark
9
Simmelbrovej 38, Osterby, 7260 Sonder Omme, Denmark
10
Cypresvej 16-18, 7400 Herning, Denmark
11
Refshalevej 169 A, 1463 Copenhagen, Denmark
12
Hejlskovberg 1, Vejle, Denmark
14
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Raw materials and consumables
4,063,995
1,717,422
-
-
Work in progress
1,032,264
1,042,238
-
-
Finished goods and goods for resale
375,202
311,861
-
0
-
0
5,471,461
3,071,521
-
-
15
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
9,051,632
5,286,738
-
0
-
0
Tax recoverable
1,049,907
704,017
-
0
-
0
Other debtors
213,488
235,943
-
0
-
0
Prepayments and accrued income
4,018,804
1,772,586
47,782
24,534
14,333,831
7,999,284
47,782
24,534
LYNX EQUITY (U.K.) LIMITED AND ITS SUBSIDIARY UNDERTAKINGS
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 30 -
16
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Debenture loans
18
136,363
136,364
-
0
-
0
Bank loans and overdrafts
18
1,987,488
604,287
-
0
-
0
Obligations under finance leases
1,438
47,288
-
0
-
0
Other borrowings
18
80,538
86,828
-
0
-
0
Payments received on account
5,189,222
1,465,615
-
0
-
0
Trade creditors
4,259,671
4,125,710
10,176
-
0
Amounts owed to group undertakings (UK)
1,517,151
994,952
9,715,762
9,125,590
Amounts owed to group undertakings (Scandinavia)
12,444,456
4,912,006
-
0
-
0
Tax payable
1,087,404
767,885
-
0
-
0
Other taxation and social security
598,369
569,669
2,154
698
Other creditors
2,176,480
2,323,613
-
0
-
0
Accruals and deferred income
1,286,010
1,052,049
186,988
189,008
30,764,590
17,086,266
9,915,080
9,315,296
17
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Debenture loans
18
113,637
250,000
-
0
-
0
Bank loans and overdrafts
18
1,589,392
337,068
-
0
-
0
Obligations under finance leases
19,676
21,482
-
0
-
0
Other borrowings
18
15,693,191
15,150,000
15,150,000
15,150,000
Other creditors
4,817,684
3,780,393
-
0
77,608
22,233,580
19,538,943
15,150,000
15,227,608
LYNX EQUITY (U.K.) LIMITED AND ITS SUBSIDIARY UNDERTAKINGS
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 31 -
18
Loans and overdrafts
Group
Company
2024
2023
2024
2023
£
£
£
£
Debenture loans
250,000
386,364
-
0
-
0
Bank loans
3,576,880
925,635
-
0
-
0
Bank overdrafts
-
0
15,720
-
0
-
0
Other loans
15,773,729
15,236,828
15,150,000
15,150,000
19,600,609
16,564,547
15,150,000
15,150,000
Payable within one year
2,204,389
827,479
-
0
-
0
Payable after one year
17,396,220
15,737,068
15,150,000
15,150,000
19
Deferred taxation

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

Liabilities
Liabilities
2024
2023
Group
£
£
Accelerated capital allowances
422,116
307,313
The company has no deferred tax assets or liabilities.
Group
Company
2024
2024
Movements in the year:
£
£
Liability at 1 August 2023
307,313
-
Charge to profit or loss
114,803
-
Liability at 31 July 2024
422,116
-

The deferred tax liability set out above is expected to reverse within 12 months and relates to accelerated capital allowances that are expected to mature within the same period.

20
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
258,490
224,735
LYNX EQUITY (U.K.) LIMITED AND ITS SUBSIDIARY UNDERTAKINGS
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
20
Retirement benefit schemes
(Continued)
- 32 -

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.

21
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
5,140,646
5,140,646
5,140,646
5,140,646
22
Controlling party

The ultimate parent undertaking and controlling party is Lynx Equity Limited, which is incorporated in Canada and is the largest group preparing consolidated accounts.

 

The immediate parent undertaking is Lynx Equity International Inc, its registered office is 692 Queen Street East, Unit 205, Toronto, Canada, M4M 1G9. They are incorporated in Canada and are the smallest group preparing consolidated accounts.

23
Cash generated from group operations
2024
2023
£
£
Loss for the year after tax
(4,015,566)
(3,019,419)
Adjustments for:
Taxation charged
391,109
133,649
Finance costs
2,756,104
2,900,972
Investment income
(114,346)
(33,694)
Gain on disposal of tangible fixed assets
-
(19,800)
Amortisation and impairment of intangible assets
2,715,430
2,484,420
Depreciation and impairment of tangible fixed assets
384,141
313,482
Decrease in provisions
(41,533)
(14,420)
Movements in working capital:
(Increase)/decrease in stocks
(2,399,940)
333,170
(Increase)/decrease in debtors
(5,167,420)
11,461,483
Increase in creditors
16,135,073
4,220,094
Cash generated from operations
10,643,052
18,759,937
LYNX EQUITY (U.K.) LIMITED AND ITS SUBSIDIARY UNDERTAKINGS
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 33 -
24
Cash generated from operations - company
2024
2023
£
£
(Loss)/profit for the year after tax
(493,501)
463,785
Adjustments for:
Finance costs
2,049,190
2,072,690
Investment income
(2,000,000)
(3,000,000)
Other gains and losses
(1,753)
(1,753)
Movements in working capital:
(Increase)/decrease in debtors
(23,248)
10,618,372
Increase/(decrease) in creditors
522,176
(2,089,462)
Cash generated from operations
52,864
8,063,632
25
Analysis of changes in net debt - group
1 August 2023
Cash flows
31 July 2024
£
£
£
Cash at bank and in hand
3,755,995
739,241
4,495,236
Bank overdrafts
(15,720)
15,720
-
0
3,740,275
754,961
4,495,236
Borrowings excluding overdrafts
(16,548,827)
(3,051,782)
(19,600,609)
Obligations under finance leases
(68,770)
47,656
(21,114)
(12,877,322)
(2,249,165)
(15,126,487)
26
Analysis of changes in net debt - company
1 August 2023
Cash flows
31 July 2024
£
£
£
Cash at bank and in hand
259,698
5,427
265,125
Borrowings excluding overdrafts
(15,150,000)
-
(15,150,000)
(14,890,302)
5,427
(14,884,875)
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