Company Registration No. 05233881 (England and Wales)
LAWRENCE BAKER LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
LAWRENCE BAKER LIMITED
COMPANY INFORMATION
Directors
Mr P J Dixon
Mrs A Dixon
Mr L C Hollick
Mr W L J Lester
Mr A Foster
Mr W J B Bibby
(Appointed 16 December 2024)
Secretary
Mr P J Dixon
Company number
05233881
Registered office
4 Elm Place
Old Witney Road
Eynsham
Witney
Oxfordshire
OX29 4BD
Auditor
Shaw Gibbs (Audit) Limited
264 Banbury Road
Oxford
OX2 7DY
LAWRENCE BAKER LIMITED
CONTENTS
Page
Strategic report
1 - 4
Directors' report
5 - 7
Independent auditor's report
8 - 10
Statement of comprehensive income
11
Balance sheet
12
Statement of changes in equity
13
Statement of cash flows
14
Notes to the financial statements
15 - 26
LAWRENCE BAKER LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 1 -
The directors present the strategic report for the year ended 31 March 2024.
Fair review of the business
We are currently operating as a main contractor within the construction industry, building care related new build structures for private companies. It is our intention to remain in this sector – it is our strength.
The previous 12 months have been a challenging time in the construction industry with stubborn inflation and difficulties in obtaining labour and materials. We have seen a number of our competitors cease trading. This has resulted in projects taking longer time to deliver and procurement at a higher cost than tendered. This has reduced margin but has been successfully absorbed.
Turnover has increased significantly and our overheads as a percentage has dropped to 2.3%. The future workload for the next 2 years is strong, and the margins and profitability are at reasonable levels that are in keeping with the current market trends. We expect to see a similar turnover for the next two years, with margins starting to increase next year, and returning to previous levels the following year.
The intention for next year is to continue from our strong base and enhance our already excellent reputation within the sector. The need for early placement of material and sub-contract orders is essential in the current marketplace.
It is the directors’ intention to retain the majority of profits within the company for the foreseeable future to strengthen the balance sheet and assist with cashflow during the future growth of the company and uncertainty of Ukrainian war and the ongoing inflationary effects it has created with supply and demand.
Principal risks and uncertainties
In the next financial year, our biggest potential risk is the current uncertainty in the financial markets. This can have an effect on projects coming to market or being held back. We believe inflation is still a threat and likely to have a negative effect on the sector.
Our strong reputation within the sector, is seeing a good level of tender enquiries for the foreseeable future. The current uncertainty in the market is not having an influence on confidence but LB must be mindful this could quickly change.
Key performance indicators
Below are key point indicators for the last 3 years to show the company’s position:
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Overheads as % of turnover | | | |
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LAWRENCE BAKER LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 2 -
Other information and explanations
Environmental, Social, & Governance Policy
At Lawrence Baker, we understand the importance of acting responsibly as a company and recognising environmental, social and governance (ESG) concerns that impact global sustainability. We acknowledge the importance of identifying and considering ESG concerns and ensure we continually create lasting value for our employees, clients, and society. Our ESG policy highlights our commitment to global sustainability, the environment and society. In writing our ESG policy, we considered our own internal policies, such as our Health & Safety Policy, our Acceptable Workplace Policy, and our Mission Statement. We will review and update this policy on a regular basis to ensure we maintain a responsible approach towards environmental, social, and corporate governance concerns.
The Environment
Lawrence Baker recognises the importance of protecting nature and acknowledges that climate change is a serious issue threatening the environment and the global economy. Successful action against climate change will require cooperation from governments, businesses, and individuals around the world. We believe that we must have a fundamental respect for all resources required to execute a project, such as the team members, the materials in use, and the net impact of our work on the surrounding environment; this is also reflected in our Mission Statement. We are committed to reducing the impact of our activities and decisions on the environment and where possible, we encourage environmentally friendly systems of working. Some of the more specific steps we are taking in our fight against climate change are:
Energy Conservation: We actively ensure we are environmentally responsible with our water and energy consumption. As a company, we encourage employees to switch off lights, heating and appliances that are not in use. We are open to work-from-home for office staff to reduce the number of cars on the road. As contractors, we typically find ourselves being invited to quote something which a design team has already specified, and nothing can replace the value of good design input. However, we do offer suggestions as we are constantly evaluating costs and alternative methods of construction as part of our daily business.
To this end, we find that most owners and design teams are very receptive to hearing, from a contractor’s perspective, about options which may be available to them, and which could have short and/or long-term benefits to their investment and the environment. In fact, we invite trades on a regular basis to propose alternate products which reduce initial cost, construction scheduling, maintenance cost and/or energy consumption.
Recycling: We support the concept of a paperless office, encouraging employees (and suppliers) to go digital and promoting recycling when this is not possible. We are using an online construction management software program to permit on-line access to construction documents for all our trades. We have even written a clause into all our standard subcontractor Scopes of Work which states, “wherever practical, drawings are to be submitted electronically through email, in a PDF format”. In the field this translates into aggressive management of demolition and waste material. We regularly send nearly 100% of all steel stud, drywall, copper, and electrical cabling to recycling.
LAWRENCE BAKER LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 3 -
Social Issues
Lawrence Baker hopes that by considering social issues and ethics in our decisions we will have a positive impact on society, employees, and external stakeholders. We feel strongly about ensuring we maintain an inclusive and diverse workforce as well as taking necessary steps to protect human rights and help those in the local community. Detailed below are a few examples of how Lawrence Baker promotes and acts upon concerns facing society:
Human Rights: We will always promote and respect human rights ensuring that, directly or indirectly, we avoid the use of human trafficking, forced labour and child labour.
Health and Safety: We acknowledge that employees have the right to a safe and healthy workplace. We will always protect the health and safety of employees and others affected by our actions through monitoring and mitigating risks. We strive for continuous improvement of our management systems, consistent with recognised standards and industry best practice. We continually seek to promote a safe working environment and encourage employees to consult on health and safety issues. We take health and safety seriously and that includes psychological and social well‐being. To that end, Lawrence Baker has appointed a mental health ‘champion’. We feel this is an invaluable tool given that the frequency of mental health issues is increasing within the construction industry.
Discrimination and Diversity: We will always be non-discriminatory and ensure diversity and equality in our employment procedures. Discrimination has no place in Lawrence Baker and so we continually promote a diverse workplace culture ensuring all employees are treated fairly and equally regardless of religion, race, sexual orientation, nationality, and disability. We have adopted an Acceptable Workplace Policy which commits us to requiring and maintaining a workplace that is free from hazing, harassment, bullying and discrimination. This Policy is posted at every worksite and is part of our onboarding process for new employees, as well as part of safety talks for sub-contractors and visitors entering our worksites.
Charity and the local and international community: We strive to be active and positive community members, here and elsewhere. This is why each Christmas, in lieu of random gifts to clients, Lawrence Baker makes a significant contribution to those less fortunate through various organisations. We encourage all staff to participate in donations and fundraising events that will help to benefit the local and wider community.
Corporate Governance
Governance considerations are vital for effectively managing a business and at Lawrence Baker, we believe it is the primary responsibility of the Management Team to conduct Company affairs efficiently to generate long term benefits for employees and other stakeholders. These are key decision makers who ensure our company is being guided with ethical practices, equal opportunity, diversity, and inclusion, and sustain a safety and quality‐driven culture. Some aspects of corporate governance we continually monitor and act upon are:
At Lawrence Baker, we are proud to incorporate ESG concerns into our business activities and practices and are committed to constant improvement. By regularly reviewing this policy and taking new and necessary actions on ESG concerns, we hope to continue to make a positive impact on the environment and society while maintaining a responsible and sustainable business.
LAWRENCE BAKER LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 4 -
Mr P J Dixon
Director
13 March 2025
LAWRENCE BAKER LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 5 -
The directors present their annual report and financial statements for the year ended 31 March 2024.
Results and dividends
The results for the year are set out on page 11.
No ordinary dividends were paid. The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr P J Dixon
Mrs A Dixon
Mr L C Hollick
Mr W L J Lester
Mr A Foster
Mr W J B Bibby
(Appointed 16 December 2024)
Auditor
The auditor, Shaw Gibbs (Audit) Limited, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
Energy and carbon report
The company has consumed more than 40,000 kWh in this reporting period and therefore the emissions, energy consumption and energy efficient activities are reported below.
2024
Energy consumption
kWh
Aggregate of energy consumption in the year
- Electricity purchased
140,853
- Fuel consumed for transport
1,134,146
1,274,999
2024
Emissions of CO2 equivalent
metric tonnes
Scope 1 - direct emissions
- Gas combustion
-
- Fuel consumed for owned transport
142.00
142.00
Scope 2 - indirect emissions
- Electricity purchased
18.00
Scope 3 - other indirect emissions
- Fuel consumed for transport not owned by the company
-
Total gross emissions
160.00
Intensity ratio
Tonnes CO2e per employee
2.62
LAWRENCE BAKER LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 6 -
Quantification and reporting methodology
1. All the Elm Place offices’ electrical invoices were analysed for the unit usage and starting figures taken at the beginning of April 2023 and closing figures taken at the end of March 2024. We understand that one electrical unit is equal to 1kWh. Note that the company doesn’t have gas at any of the offices.
2. The twelve Allstar Fuel Card invoices paid within the April 2023 – March 2024 financial year were added together to come to a total litre used figure for the company’s fleet vehicles. This was then multiplied by 10 to get to a kWh figure.
Intensity measurement
The chosen intensity measurement ratio is total gross emissions in metric tonnes CO2e per employee, the recommended ratio for the sector.
Measures taken to improve energy efficiency
These measures have been shared in our Strategic report.
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 company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Strategic report
The company has chosen in accordance with Companies Act 2006, s414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (accounts and Reports) Regulations 2008, Sch.7 to be contained in the directors' report. It has done so in respect of the directors' business review, principal risks and uncertainties facing the company, and environmental, social & governance policy.
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 company’s auditor 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 company’s auditor is aware of that information.
LAWRENCE BAKER LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 7 -
On behalf of the board
Mr P J Dixon
Director
13 March 2025
LAWRENCE BAKER LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF LAWRENCE BAKER LIMITED
- 8 -
Opinion
We have audited the financial statements of Lawrence Baker Limited (the 'company') for the year ended 31 March 2024 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the 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 company's affairs as at 31 March 2024 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
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 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.
LAWRENCE BAKER LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF LAWRENCE BAKER LIMITED (CONTINUED)
- 9 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the 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, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of 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 company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
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.
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 of the audit, we gain an understanding of the laws and regulations which apply to the company and how the directors seek to comply with those laws and regulations. This helps us to plan appropriate risk assessments.
During the audit, we focus on relevant risk areas and review the compliance with the laws and regulations by making relevant enquiries from the directors and undertaking corroboration, for example by reviewing board reports and other documentation.
We assess the risk of material misstatement in the financial statements including as a result of fraud and undertake procedures which include but are not limited to:
Reviewing the controls set in place by the directors;
Making enquiries of the directors as to whether they consider fraud or other irregularity may have taken place, or where such opportunity might exist;
Challenging the directors' assumptions with regard to accounting estimates such as the stage of completion of the contracts; and
Identifying and testing journal entries, particularly those which appear to be unusual by size or nature.
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 is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
LAWRENCE BAKER LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF LAWRENCE BAKER LIMITED (CONTINUED)
- 10 -
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.
Malik Nayyer Salim
Senior Statutory Auditor
For and on behalf of Shaw Gibbs (Audit) Limited
14 March 2025
Chartered Certified Accountants
Statutory Auditor
264 Banbury Road
Oxford
OX2 7DY
LAWRENCE BAKER LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2024
- 11 -
2024
2023
Notes
£
£
Turnover
3
105,370,215
69,494,045
Cost of sales
(101,907,948)
(64,507,116)
Gross profit
3,462,267
4,986,929
Distribution costs
(201,969)
(139,016)
Administrative expenses
(2,211,314)
(1,946,071)
Other operating income
12,000
2,213
Operating profit
4
1,060,984
2,904,055
Interest receivable and similar income
8
216
61
Profit before taxation
1,061,200
2,904,116
Tax on profit
9
(328,951)
(477,497)
Profit for the financial year
732,249
2,426,619
Total comprehensive income for the year
732,249
2,426,619
The statement of comprehensive income has been prepared on the basis that all operations are continuing operations.
There are no recognised gains and losses other than those passing through the statement of comprehensive income.
LAWRENCE BAKER LIMITED
BALANCE SHEET
AS AT
31 MARCH 2024
31 March 2024
- 12 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
11
2,150,915
1,616,373
Current assets
Stocks
12
5,584,265
2,167,518
Debtors falling due after more than one year
13
1,250,000
Debtors falling due within one year
13
21,633,211
19,075,407
Cash at bank and in hand
767,137
1,004,691
29,234,613
22,247,616
Creditors: amounts falling due within one year
14
(18,203,119)
(11,535,773)
Net current assets
11,031,494
10,711,843
Total assets less current liabilities
13,182,409
12,328,216
Provisions for liabilities
Deferred tax liability
15
209,274
87,330
(209,274)
(87,330)
Net assets
12,973,135
12,240,886
Capital and reserves
Called up share capital
17
136
136
Profit and loss reserves
12,972,999
12,240,750
Total equity
12,973,135
12,240,886
The financial statements were approved by the board of directors and authorised for issue on 13 March 2025 and are signed on its behalf by:
Mr P J Dixon
Director
Company registration number 05233881 (England and Wales)
LAWRENCE BAKER LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
- 13 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 April 2022
136
10,664,131
10,664,267
Year ended 31 March 2023:
Profit and total comprehensive income
-
2,426,619
2,426,619
Dividends
10
-
(850,000)
(850,000)
Balance at 31 March 2023
136
12,240,750
12,240,886
Year ended 31 March 2024:
Profit and total comprehensive income
-
732,249
732,249
Balance at 31 March 2024
136
12,972,999
12,973,135
LAWRENCE BAKER LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2024
- 14 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
22
1,025,018
577,869
Income taxes paid
(488,483)
(600,000)
Net cash inflow/(outflow) from operating activities
536,535
(22,131)
Investing activities
Purchase of tangible fixed assets
(816,055)
(623,061)
Proceeds from disposal of tangible fixed assets
41,750
28,350
Interest received
216
61
Net cash used in investing activities
(774,089)
(594,650)
Financing activities
Dividends paid
(850,000)
Net cash used in financing activities
-
(850,000)
Net decrease in cash and cash equivalents
(237,554)
(1,466,781)
Cash and cash equivalents at beginning of year
1,004,691
2,471,472
Cash and cash equivalents at end of year
767,137
1,004,691
LAWRENCE BAKER LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
- 15 -
1
Accounting policies
Company information
Lawrence Baker Limited is a private company limited by shares incorporated in England and Wales. The registered office is 4 Elm Place, Old Witney Road, Eynsham, Witney, Oxfordshire, OX29 4BD.
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
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company 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.
1.3
Turnover
The turnover shown in the profit and loss account represents amounts invoiced during the year, exclusive of Value Added Tax.
In respect of long-term contracts and contracts for on-going services, turnover represents the value of work done in the year, including estimates of amounts not invoiced. Turnover in respect of long-term contracts and contracts for on-going services is recognised by reference to the stage of completion.
1.4
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:
Freehold property
2% straight line
Fixtures and fittings
15% reducing balance
IT equipment
25% straight line
Motor vehicles
25% reducing balance
Land is not depreciated.
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 credited or charged to profit or loss.
LAWRENCE BAKER LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 16 -
1.5
Construction contracts
Where the outcome of a construction contract can be estimated reliably, revenue and costs are recognised by reference to the stage of completion of the contract activity at the reporting end date. Variations in contract work, claims and incentive payments are included to the extent that the amount can be measured reliably and its receipt is considered probable.
When it is probable that total contract costs will exceed total contract turnover, the expected loss is recognised as an expense immediately.
Where the outcome of a construction contract cannot be estimated reliably, contract revenue is recognised to the extent of contract costs incurred where it is probable that they will be recoverable. Contract costs are recognised as expenses in the period in which they are incurred. When costs incurred in securing a contract are recognised as an expense in the period in which they are incurred, they are not included in contract costs if the contract is obtained in a subsequent period.
The “percentage of completion method” is used to determine the appropriate amount to recognise in a given period. The stage of completion is measured by the proportion of contract costs incurred for work performed to date compared to the estimated total contract costs. Costs incurred in the year in connection with future activity on a contract are excluded from contract costs in determining the stage of completion. These costs are presented as stocks, prepayments or other assets depending on their nature, and provided it is probable they will be recovered.
1.6
Cash at bank and in hand
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.
1.7
Financial instruments
The company 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 company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with 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.
LAWRENCE BAKER LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 17 -
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 company 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 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.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.8
Equity instruments
Equity instruments issued by the company 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 company.
1.9
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 company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
LAWRENCE BAKER LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 18 -
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.
1.10
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.
1.11
Retirement benefits
The company operates a defined contribution scheme for the benefit of its employees. Contributions payable are charged to the profit and loss account in the year they are payable.
1.12
Leases
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 leases asset are consumed.
Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.
2
Judgements and key sources of estimation uncertainty
In the application of the company’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.
LAWRENCE BAKER LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
2
Judgements and key sources of estimation uncertainty
(Continued)
- 19 -
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
Revenue recognition on long term contracts
The company has a number of customer contracts that span two accounting periods.
Work in progress, which is included in stock, is stated at the net sales value of the work done after provision for contingencies and anticipated future losses on contracts, less amounts received as progress payments on account. Excess progress payments are included as payments on account which are included in deferred income.
Revenue on long term contracts is measured each quarter with reference to the stage of completion of the contract. The directors’ best estimates of contract outcomes and stage of completion are used. These include an assessment of the profitability of the contracts. The directors draw on the expertise of qualified personnel to undertake such estimates and to apply appropriate levels of scrutiny to ensure the required level of accuracy. Costs to complete and contract profitability are subject to estimation uncertainty.
3
Turnover and other revenue
An analysis of the company's turnover is as follows:
2024
2023
£
£
Turnover analysed by class of business
Specialist contracting for nursing home and associated care sector
105,370,215
69,494,045
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
105,370,215
69,494,045
2024
2023
£
£
Other revenue
Interest income
216
61
Rental income arising from investment properties
12,000
2,213
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Depreciation of owned tangible fixed assets
265,664
189,228
Profit on disposal of tangible fixed assets
(25,901)
(18,276)
Operating lease charges
136,073
84,856
LAWRENCE BAKER LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 20 -
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Projects
45
37
Administrative
16
14
Total
61
51
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
3,358,587
2,412,299
Social security costs
383,516
299,508
Pension costs
157,949
114,543
3,900,052
2,826,350
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
239,260
117,675
Company pension contributions to defined contribution schemes
12,021
6,788
251,281
124,463
The directors of the company are also its key management personnel and therefore, the balances disclosed above also relate to the key management personnel remuneration.
The number of directors for whom retirement benefits were accruing under defined contribution schemes amounted to 3 (2023: 3).
Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
97,108
44,778
Company pension contributions to defined contribution schemes
4,750
2,167
LAWRENCE BAKER LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 21 -
7
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
29,800
16,750
For other services
All other non-audit services
15,190
17,500
8
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
216
61
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
278,524
488,390
Adjustments in respect of prior periods
(71,517)
Total current tax
207,007
488,390
Deferred tax
Origination and reversal of timing differences
121,944
(10,893)
Total tax charge
328,951
477,497
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
1,061,200
2,904,116
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
265,300
551,782
Tax effect of expenses that are not deductible in determining taxable profit
16,812
12,371
Permanent capital allowances in excess of depreciation
118,356
(86,656)
Under/(over) provided in prior years
(71,517)
Taxation charge for the year
328,951
477,497
LAWRENCE BAKER LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 22 -
10
Dividends
2024
2023
£
£
Final paid
850,000
11
Tangible fixed assets
Freehold property
Fixtures and fittings
IT equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 April 2023
906,649
83,211
347,628
1,147,727
2,485,215
Additions
307,650
25,450
482,955
816,055
Disposals
(91,417)
(91,417)
At 31 March 2024
1,214,299
83,211
373,078
1,539,265
3,209,853
Depreciation and impairment
At 1 April 2023
138,417
60,441
254,401
415,583
868,842
Depreciation charged in the year
23,764
2,946
36,985
201,969
265,664
Eliminated in respect of disposals
(75,568)
(75,568)
At 31 March 2024
162,181
63,387
291,386
541,984
1,058,938
Carrying amount
At 31 March 2024
1,052,118
19,824
81,692
997,281
2,150,915
At 31 March 2023
768,232
22,770
93,227
732,144
1,616,373
12
Stocks
2024
2023
£
£
Work in progress
5,584,265
2,167,518
13
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
10,823,127
7,167,597
Corporation tax recoverable
162,714
Other debtors
10,609,401
11,812,966
Prepayments
37,969
94,844
21,633,211
19,075,407
LAWRENCE BAKER LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
13
Debtors
(Continued)
- 23 -
2024
2023
Amounts falling due after more than one year:
£
£
Other debtors
1,250,000
Total debtors
22,883,211
19,075,407
14
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
8,661,849
2,261,813
Corporation tax
118,762
Other taxation and social security
2,214,340
2,471,673
Other creditors
1,287,853
Accruals and deferred income
6,039,077
6,683,525
18,203,119
11,535,773
Payments received on account for client work included within accruals and deferred income are £3,204,116 (2023: £5,177,425).
15
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
209,274
87,330
2024
Movements in the year:
£
Liability at 1 April 2023
87,330
Charge to profit or loss
121,944
Liability at 31 March 2024
209,274
LAWRENCE BAKER LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 24 -
16
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
157,949
114,543
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
17
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
102
102
102
102
Ordinary B shares of £1 each
34
34
34
34
136
136
136
136
Ordinary B shares have full voting rights, right to participate in a distribution by way of dividend or capital, including on a winding up, and no rights of redemption.
Ordinary shares have full voting rights, full rights to dividends and to participate in distribution; full rights in respect of capital and to participate in a distribution.
18
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2024
2023
£
£
Within one year
137,303
79,514
Between two and five years
75,601
12,555
212,904
92,069
Lessor
At the reporting end date the company had contracted with tenants for the following minimum lease payments:
2024
2023
£
£
Within one year
12,000
Between two and five years
34,000
46,000
LAWRENCE BAKER LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 25 -
19
Directors' transactions
At the year end, the directors owed the company £1,118 in total (2023: £1,118). There is no fixed date for repayment. The loan is repayable on demand.
20
Related party transactions
Transactions with related parties
Included within Note 13, the following balances are owed to the company by the related parties. The directors of Lawrence Baker Limited, P J Dixon and L C Hollick, either have a directorship or shareholdings in these companies. These amounts are interest free and repayable on demand.
| | | | |
Amounts due from related parties | | | | |
| | | | |
| | | | |
| | | | |
Propco (Huntingdon) Limited | | | | |
Propco (Chichester) Limited | | | | |
Propco (Wichelstowe) Limited | | | | |
Propco (Leamington Spa) Limited | | | | |
Propco (Bishops Stortford) Limited | | | | |
Propco (St Neots) Limited | | | | |
| | | | |
Propco (Stratford Upon Avon) Limited | | | | |
Propco (Leamington Spa 2) Limited | | | | |
| | | | |
Propco (Chichester 2) Limited | | | | |
Landra Developments Limited | | | | |
There were no amounts owed by the company to the related parties.
In addition, included in the total payments received on account balance in note 14, a balance of £25,544 relates to the construction of the residential home of two of the directors, that was ongoing at the year end. The margin applied in this project is the average of the other standard projects of the company for the year ending 31 March 2024, and is deemed to be at arm's length.
21
Ultimate controlling party
At the comparative year end date, the company was directly controlled by P J Dixon who was the majority shareholder of the company.
On 21 February 2024, P Dixon and A Dixon transferred their stake in the company to Dixon Holdings (Lawrence Baker) Limited, a company registered in 264 Banbury Road, Oxford, Oxfordshire, England, OX2 7DY. Since then, Dixon Holdings (Lawrence Baker) Limited became the ultimate parent company of the company.
P Dixon is the majority shareholder of Dixon Holdings (Lawrence Baker) Limited. Hence, the ultimate controlling party of the company continues to be P Dixon throughout the current and previous year.
LAWRENCE BAKER LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 26 -
22
Cash generated from operations
2024
2023
£
£
Profit for the year after tax
732,249
2,426,619
Adjustments for:
Taxation charged
328,951
477,497
Investment income
(216)
(61)
Gain on disposal of tangible fixed assets
(25,901)
(18,276)
Depreciation and impairment of tangible fixed assets
265,664
189,228
Movements in working capital:
(Increase)/decrease in stocks
(3,416,747)
312,252
Increase in debtors
(3,645,090)
(7,835,873)
Increase in creditors
6,786,108
5,026,483
Cash generated from operations
1,025,018
577,869
23
Analysis of changes in net funds
1 April 2023
Cash flows
31 March 2024
£
£
£
Cash at bank and in hand
1,004,691
(237,554)
767,137
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