56 false false false false true false false false false false false true false false false false false false 2023-08-01 Sage Accounts Production Advanced 2023 - FRS102_2023 183,695 126,870 318,918 82,737 401,655 xbrli:pure xbrli:shares iso4217:GBP 01300558 2023-08-01 2024-07-31 01300558 2024-07-31 01300558 2023-07-31 01300558 2022-08-01 2023-07-31 01300558 2023-07-31 01300558 2022-07-31 01300558 core:PlantMachinery 2023-08-01 2024-07-31 01300558 core:FurnitureFittings 2023-08-01 2024-07-31 01300558 core:MotorVehicles 2023-08-01 2024-07-31 01300558 bus:RegisteredOffice 2023-08-01 2024-07-31 01300558 bus:OrdinaryShareClass1 2023-08-01 2024-07-31 01300558 bus:OrdinaryShareClass2 2023-08-01 2024-07-31 01300558 bus:OrdinaryShareClass3 2023-08-01 2024-07-31 01300558 bus:LeadAgentIfApplicable 2023-08-01 2024-07-31 01300558 bus:Director1 2023-08-01 2024-07-31 01300558 bus:Director2 2023-08-01 2024-07-31 01300558 bus:Director3 2023-08-01 2024-07-31 01300558 bus:CompanySecretary1 2023-08-01 2024-07-31 01300558 core:WithinOneYear 2024-07-31 01300558 core:WithinOneYear 2023-07-31 01300558 core:LandBuildings 2023-07-31 01300558 core:PlantMachinery 2023-07-31 01300558 core:FurnitureFittings 2023-07-31 01300558 core:MotorVehicles 2023-07-31 01300558 core:LandBuildings 2024-07-31 01300558 core:PlantMachinery 2024-07-31 01300558 core:FurnitureFittings 2024-07-31 01300558 core:MotorVehicles 2024-07-31 01300558 core:DeferredTaxation 2023-08-01 2024-07-31 01300558 core:LandBuildings 2023-08-01 2024-07-31 01300558 core:RetainedEarningsAccumulatedLosses 2022-08-01 2023-07-31 01300558 core:RetainedEarningsAccumulatedLosses 2023-08-01 2024-07-31 01300558 core:AfterOneYear 2024-07-31 01300558 core:AfterOneYear 2023-07-31 01300558 core:ShareCapital 2024-07-31 01300558 core:ShareCapital 2023-07-31 01300558 core:SharePremium 2024-07-31 01300558 core:SharePremium 2023-07-31 01300558 core:RetainedEarningsAccumulatedLosses 2024-07-31 01300558 core:RetainedEarningsAccumulatedLosses 2023-07-31 01300558 core:ShareCapital 2022-07-31 01300558 core:SharePremium 2022-07-31 01300558 core:RetainedEarningsAccumulatedLosses 2022-07-31 01300558 core:BetweenOneFiveYears 2024-07-31 01300558 core:BetweenOneFiveYears 2023-07-31 01300558 core:AcceleratedTaxDepreciationDeferredTax 2024-07-31 01300558 core:AcceleratedTaxDepreciationDeferredTax 2023-07-31 01300558 core:LandBuildings 2023-07-31 01300558 core:PlantMachinery 2023-07-31 01300558 core:FurnitureFittings 2023-07-31 01300558 core:MotorVehicles 2023-07-31 01300558 core:LeasedAssetsHeldAsLessee core:PlantMachinery 2024-07-31 01300558 core:LeasedAssetsHeldAsLessee core:MotorVehicles 2024-07-31 01300558 core:LeasedAssetsHeldAsLessee 2024-07-31 01300558 core:LeasedAssetsHeldAsLessee core:PlantMachinery 2023-07-31 01300558 core:LeasedAssetsHeldAsLessee core:MotorVehicles 2023-07-31 01300558 core:LeasedAssetsHeldAsLessee 2023-07-31 01300558 core:DeferredTaxation 2023-07-31 01300558 core:DeferredTaxation 2024-07-31 01300558 bus:LeadAgentIfApplicable 2022-08-01 2023-07-31 01300558 bus:HighestPaidDirector 2023-08-01 2024-07-31 01300558 bus:HighestPaidDirector 2022-08-01 2023-07-31 01300558 bus:MediumEntities 2023-08-01 2024-07-31 01300558 bus:Audited 2023-08-01 2024-07-31 01300558 bus:Medium-sizedCompaniesRegimeForAccounts 2023-08-01 2024-07-31 01300558 bus:PrivateLimitedCompanyLtd 2023-08-01 2024-07-31 01300558 bus:FullAccounts 2023-08-01 2024-07-31 01300558 bus:OrdinaryShareClass1 2024-07-31 01300558 bus:OrdinaryShareClass1 2023-07-31 01300558 bus:OrdinaryShareClass2 2024-07-31 01300558 bus:OrdinaryShareClass2 2023-07-31 01300558 bus:OrdinaryShareClass3 2024-07-31 01300558 bus:OrdinaryShareClass3 2023-07-31 01300558 bus:AllOrdinaryShares 2024-07-31 01300558 bus:AllOrdinaryShares 2023-07-31 01300558 core:LandBuildings core:OwnedOrFreeholdAssets 2023-08-01 2024-07-31 01300558 core:CapitalReserve 2023-08-01 2024-07-31
COMPANY REGISTRATION NUMBER: 01300558
MARK LUCK LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED
31 July 2024
MARK LUCK LIMITED
FINANCIAL STATEMENTS
YEAR ENDED 31 JULY 2024
Contents
Pages
Officers and professional advisers
1
Strategic report
2
Directors' report
3 to 4
Independent auditor's report to the members
5 to 9
Statement of comprehensive income
10
Statement of financial position
11
Statement of changes in equity
12
Statement of cash flows
13
Notes to the financial statements
14 to 22
MARK LUCK LIMITED
OFFICERS AND PROFESSIONAL ADVISERS
The board of directors
Mr M Luck
Mrs E Carter
Mr G Archbutt
Company secretary
Mr M Luck
Registered office
Numeric House
98 Station Road
Sidcup
Kent
United Kingdom
DA15 7BY
Auditor
Opass Billings Wilson & Honey LLP
Chartered Certified Accountants & statutory auditor
Numeric House
98 Station Road
Sidcup
Kent
DA15 7BY
Bankers
Barclays Bank PLC
Bromley and Bexley Corporate Team
PO Box 160
Donegal House
73 Tweedy House
Bromley
Kent
BR1 1UE
Solicitors
Judge & Priestley
Justin House
6 West Street
Bromley
Kent
BR1 1JN
MARK LUCK LIMITED
STRATEGIC REPORT
YEAR ENDED 31 JULY 2024
Strategic Management The objective of the company is to increase market share in the waste services, plant & grab hire sectors. To achieve this objective the company's strategy is to perform operations to the highest standards.
Business Environment The sector the company operates in remains competitive due to the increasing costs of raw materials and subcontractors costs. The company has built a strong business relationship with its suppliers which allows the company to monitor costs and ensure quality. The company is committed to protecting the environment in all its business activities and the prevention of pollution and protection of the environment is fundamental to its business activities. They acknowledge and accept the legal requirements and have programs and procedures in place to assist compliance. These include training and testing of employees, exchanging information, participating in business sector groups and identifying new practices or methods to improve stated aims.
This report was approved by the board of directors on 14 March 2025 and signed on behalf of the board by
:
Mr M Luck
Director
MARK LUCK LIMITED
DIRECTORS' REPORT
YEAR ENDED 31 JULY 2024
The directors present their report and the financial statements of the company for the year ended 31 July 2024 .
Directors
The directors who served the company during the year were as follows:
Mr M Luck
Mrs E Carter
Mr G Archbutt
Dividends
The directors do not recommend the payment of a dividend.
Future developments
The company continues to look for ways to expand and grow.
Directors' responsibilities statement
The directors are responsible for preparing the strategic report, directors' 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 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 judgments and accounting estimates that are reasonable and prudent;
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Auditor
Each of the persons who is a director at the date of approval of this report confirms that:
- so far as they are aware, there is no relevant audit information of which the company's auditor is unaware; and - they have taken all steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information.
This report was approved by the board of directors on 14 March 2025 and signed on behalf of the board by:
Mr M Luck
Director
MARK LUCK LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF MARK LUCK LIMITED
YEAR ENDED 31 JULY 2024
Opinion
We have audited the financial statements of Mark Luck Limited (the 'company') for the year ended 31 July 2024 which comprise the statement of comprehensive income, statement of financial position, statement of changes in equity, statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 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 July 2024 and of its loss for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; - have been prepared in accordance with the requirements of the Companies Act 2006.
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 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.
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. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the strategic report and the 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.
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 directors' remuneration specified by law are not made; or - we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the 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: We identify and assess the key risk areas of material misstatement and then design and perform audit procedures in relation to those risks. Materiality has been calculated based on gross assets and has been assessed at the level of £75,000. The key risk areas were considered to be - Threat of management override of controls - Completeness and accuracy of related party transactions - Completeness and recognition of income The appropriate audit approach was considered and the following audit work applied to these areas: - Our audit work to test management override involved reviewing journals throughout the year to confirm reasonableness as well as various discussions with management during the audit. - Our audit work in respect of related party transactions involved ensuring the intercompany balances and transactions agreed at the year end as well as reviewing various expenditure codes to ensure there has been no mispostings. - Our audit work in respect of income included agreeing a sample of tickets through to the sales invoices raised, confirming these had been correctly allocated to the sales and nominal ledgers as well as reviewing tickets raised around the year end to confirm that all income had been recorded in the correct period. We performed substantive testing to identify any large fluctuations or significant and unexpected losses which may indicate risk of material misstatements due to fraud. We reviewed the financial statement disclosures and assessed compliance with the following relevant laws and regulations: - Companies Act 2006 - Data Protection Act 2018. - Health and Safety Legislations - Goods Vehicles (Licensing of Operators) Act 1995 - Carriage of Dangerous Goods and Use of Transportable Pressure Equipment Regulations 2007 - Control of Pollution (Oil Storage) Regulations 2001 - EU Exhaust Emissions Regulations - Motor Vehicles (Wearing Of Seat Belts) Regulations 2006 - Road Traffic Act 1988 - Transport Act 2000 - Vehicle Excise and Registration Act 1994 Irregularities which result from fraud are inherently more difficult to detect than irregularities which result from error, however there have never been any instances of fraud encountered with the company and there are controls in place through the segregation of duties and regular reviews of management accounts which reduce the risk of fraud through management override. All audit team members were made aware of the relevant laws & regulations applicable to the company together with potential fraud risks and remained alert to any indications of fraud non compliance with the laws & regulations throughout the audit. As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also: - 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. 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. - Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control. - Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors. - Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the company to cease to continue as a going concern. - Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. Use of our report
This report is made solely to the company's members, as a body, in accordance with chapter 3 of part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in 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.
Philip Benson Woodman FCCA
(Senior Statutory Auditor)
For and on behalf of
Opass Billings Wilson & Honey LLP
Chartered Certified Accountants & statutory auditor
Numeric House
98 Station Road
Sidcup
Kent
DA15 7BY
14 March 2025
MARK LUCK LIMITED
STATEMENT OF COMPREHENSIVE INCOME
YEAR ENDED 31 JULY 2024
2024
2023
Note
£
£
Turnover
4
11,291,752
11,276,144
Cost of sales
( 9,265,358)
( 9,337,134)
-------------
-------------
Gross profit
2,026,394
1,939,010
Administrative expenses
( 2,109,003)
( 1,766,641)
------------
------------
Operating (loss)/profit
5
( 82,609)
172,369
Interest receivable
9
4,366
1,754
Interest payable
10
( 22,715)
( 22,370)
------------
------------
(Loss)/profit before taxation
( 100,958)
151,753
Taxation on ordinary activities
11
( 82,737)
( 24,883)
---------
---------
(Loss)/profit for the financial year and total comprehensive income
( 183,695)
126,870
---------
---------
All the activities of the company are from continuing operations.
MARK LUCK LIMITED
STATEMENT OF FINANCIAL POSITION
31 July 2024
2024
2023
Note
£
£
£
Fixed assets
Tangible assets
12
2,558,305
2,690,221
Current assets
Stocks
13
21,578
4,774
Debtors
14
2,474,382
2,712,282
Cash at bank and in hand
564,919
592,061
------------
------------
3,060,879
3,309,117
Creditors: amounts falling due within one year
15
3,030,077
3,242,314
------------
------------
Net current assets
30,802
66,803
------------
------------
Total assets less current liabilities
2,589,107
2,757,024
Creditors: amounts falling due after more than one year
16
258,417
325,376
Provisions
Taxation including deferred tax
18
401,655
318,918
------------
------------
Net assets
1,929,035
2,112,730
------------
------------
Capital and reserves
Called up share capital
21
33,333
33,333
Share premium account
22
1,667
1,667
Profit and loss account
22
1,894,035
2,077,730
------------
------------
Shareholders funds
1,929,035
2,112,730
------------
------------
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the medium companies regime.
These financial statements were approved by the board of directors and authorised for issue on 14 March 2025 , and are signed on behalf of the board by:
Mr M Luck
Director
Company registration number: 01300558
MARK LUCK LIMITED
STATEMENT OF CHANGES IN EQUITY
YEAR ENDED 31 JULY 2024
Called up share capital
Share premium account
Profit and loss account
Total
£
£
£
£
At 1 August 2022
33,333
1,667
1,950,860
1,985,860
Profit for the year
126,870
126,870
--------
-------
------------
------------
Total comprehensive income for the year
126,870
126,870
At 31 July 2023
33,333
1,667
2,077,730
2,112,730
Loss for the year
( 183,695)
( 183,695)
--------
-------
------------
------------
Total comprehensive income for the year
( 183,695)
( 183,695)
--------
-------
------------
------------
At 31 July 2024
33,333
1,667
1,894,035
1,929,035
--------
-------
------------
------------
MARK LUCK LIMITED
STATEMENT OF CASH FLOWS
YEAR ENDED 31 JULY 2024
2024
2023
£
£
Cash flows from operating activities
(Loss)/profit for the financial year
( 183,695)
126,870
Adjustments for:
Depreciation of tangible assets
369,971
285,991
Interest receivable
( 4,366)
( 1,754)
Interest payable
22,715
22,370
Loss/(gains) on disposal of tangible assets
14,855
( 8,405)
Taxation on ordinary activities
82,737
24,883
Accrued expenses
24,055
Changes in:
Stocks
( 16,804)
1,281
Trade and other debtors
237,900
26,599
Trade and other creditors
( 187,865)
317,903
---------
---------
Cash generated from operations
335,448
819,793
Interest paid
( 22,715)
( 22,370)
Interest received
4,366
1,754
---------
---------
Net cash from operating activities
317,099
799,177
---------
---------
Cash flows from investing activities
Purchase of tangible assets
( 310,910)
( 370,000)
Proceeds from sale of tangible assets
58,000
12,000
---------
---------
Net cash used in investing activities
( 252,910)
( 358,000)
---------
---------
Cash flows from financing activities
Proceeds from borrowings
( 51,139)
Payments of finance lease liabilities
( 91,331)
( 139,059)
---------
---------
Net cash used in financing activities
( 91,331)
( 190,198)
---------
---------
Net (decrease)/increase in cash and cash equivalents
( 27,142)
250,979
Cash and cash equivalents at beginning of year
592,061
341,082
---------
---------
Cash and cash equivalents at end of year
564,919
592,061
---------
---------
MARK LUCK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
YEAR ENDED 31 JULY 2024
1. General information
The company is a private company limited by shares, registered in England and Wales. The address of the registered office is Numeric House, 98 Station Road, Sidcup, Kent, DA15 7BY, United Kingdom.
2. Statement of compliance
These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.
3. Accounting policies
Basis of preparation
The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through the income statement. The financial statements are prepared in sterling, which is the functional currency of the entity.
Debtors
Debtors are initially recorded at fair value and are assessed for impairment at each reporting date. If any impairments exist the debtors are remeasured to the present value of the expected future cash inflows.
Creditors
Creditors are initially recorded at fair value and are then remeasured to the present value of the expected future cash outflows.
Judgements and key sources of estimation uncertainty
There are no significant estimates or assumptions made that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.
Revenue recognition
Turnover is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of discounts and Value Added Tax. Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have transferred to the buyer (usually on despatch of the goods); the amount of revenue can be measured reliably; it is probable that the associated economic benefits will flow to the entity; and the costs incurred or to be incurred in respect of the transactions can be measured reliably. Revenue from the rendering of services is measured by reference to the stage of completion of the service transaction at the end of the reporting period provided that the outcome can be reliably estimated. When the outcome cannot be reliably estimated, revenue is recognised only to the extent that it is probable the expenses recognised will be recovered.
Income tax
Provision is made for deferred taxation using the liability method to take account of timing differences between the incidence of income and expenditure for taxation and accounting purposes except to the extent that the directors consider that a liability is unlikely to crystallise.
Tangible assets
Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in equity, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss.
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
Freehold property
-
50 years straight line
Plant and machinery
-
25% reducing balance
Fixtures and fittings
-
15% reducing balance
Motor vehicles
-
25% reducing balance
Impairment of fixed assets
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets. For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the company are assigned to those units.
Stocks
Stocks are measured on a FIFO basis.
Finance leases and hire purchase contracts
Assets held under finance leases and hire purchase contracts are recognised in the statement of financial position as assets and liabilities at the lower of the fair value of the assets and the present value of the minimum lease payments, which is determined at the inception of the lease term. Any initial direct costs of the lease are added to the amount recognised as an asset. Lease payments are apportioned between the finance charges and reduction of the outstanding lease liability using the effective interest method. Finance charges are allocated to each period so as to produce a constant rate of interest on the remaining balance of the liability.
Provisions
Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in the income statement unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in the income statement in the period it arises.
Financial instruments
Financial instruments are classified and accounted for, according to the substance of the contractual arrangement, as either financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Defined contribution plans
Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund. When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as a finance cost in the statement of comprehensive income in the period in which it arises.
4. Turnover
Turnover arises from:
2024
2023
£
£
Rendering of services
11,291,752
11,276,144
-------------
-------------
The whole of the turnover is attributable to the principal activity of the company wholly undertaken in the United Kingdom.
5. Operating (loss)/profit
Operating profit or loss is stated after charging/crediting:
2024
2023
£
£
Depreciation of tangible assets
369,971
285,991
Loss/(gains) on disposal of tangible assets
14,855
( 8,405)
Impairment of trade debtors
130,576
64,646
---------
---------
Operating profit or loss is the profit or loss from business operations before deduction of interest and taxes.
6. Auditor's remuneration
2024
2023
£
£
Fees payable for the audit of the financial statements
9,000
9,000
-------
-------
Fees payable to the company's auditor and its associates for other services:
Other non-audit services
1,171
1,120
-------
-------
7. Particulars of employees
The average number of persons employed by the company during the year, including the directors, amounted to:
2024
2023
No.
No.
Production staff
37
39
Administrative staff
16
17
Management staff
3
3
----
----
56
59
----
----
The aggregate payroll costs incurred during the year, relating to the above, were:
2024
2023
£
£
Wages and salaries
2,379,687
2,394,219
Social security costs
254,896
274,485
Other pension costs
64,242
64,453
------------
------------
2,698,825
2,733,157
------------
------------
8. Directors' remuneration
The directors' aggregate remuneration in respect of qualifying services was:
2024
2023
£
£
Remuneration
231,214
219,892
Company contributions to defined contribution pension plans
5,956
6,676
---------
---------
237,170
226,568
---------
---------
Remuneration of the highest paid director in respect of qualifying services:
2024
2023
£
£
Aggregate remuneration
111,470
85,800
---------
--------
9. Interest receivable
2024
2023
£
£
Interest on cash and cash equivalents
4,366
1,754
-------
-------
10. Interest payable
2024
2023
£
£
Interest on obligations under finance leases and hire purchase contracts
( 22,715)
( 22,370)
--------
--------
11. Taxation on ordinary activities
Major components of tax expense
2024
2023
£
£
Deferred tax:
Origination and reversal of timing differences
82,737
24,883
--------
--------
Taxation on ordinary activities
82,737
24,883
--------
--------
Reconciliation of tax expense
The tax assessed on the (loss)/profit on ordinary activities for the year is higher than (2023: lower than) the standard rate of corporation tax in the UK of 19 % (2023: 19 %).
2024
2023
£
£
(Loss)/profit on ordinary activities before taxation
( 100,958)
151,753
---------
---------
(Loss)/profit on ordinary activities by rate of tax
( 19,182)
28,833
Effect of expenses not deductible for tax purposes
2,585
811
Effect of capital allowances and depreciation
( 1,472)
( 51,013)
Effect of different UK tax rates on some earnings
4,170
Utilisation of tax losses
18,069
17,199
Effect of deferred tax charge
82,737
24,883
---------
---------
Tax on (loss)/profit
82,737
24,883
---------
---------
12. Tangible assets
Land and buildings
Plant and machinery
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 August 2023
82,098
254,778
132,025
5,617,402
6,086,303
Additions
310,910
310,910
Disposals
( 283,790)
( 283,790)
--------
---------
---------
------------
------------
At 31 July 2024
82,098
254,778
132,025
5,644,522
6,113,423
--------
---------
---------
------------
------------
Depreciation
At 1 August 2023
19,646
167,537
106,566
3,102,333
3,396,082
Charge for the year
821
21,812
3,819
343,519
369,971
Disposals
( 210,935)
( 210,935)
--------
---------
---------
------------
------------
At 31 July 2024
20,467
189,349
110,385
3,234,917
3,555,118
--------
---------
---------
------------
------------
Carrying amount
At 31 July 2024
61,631
65,429
21,640
2,409,605
2,558,305
--------
---------
---------
------------
------------
At 31 July 2023
62,452
87,241
25,459
2,515,069
2,690,221
--------
---------
---------
------------
------------
Finance leases and hire purchase contracts
Included within the carrying value of tangible assets are the following amounts relating to assets held under finance leases or hire purchase agreements:
Plant and machinery
Motor vehicles
Total
£
£
£
At 31 July 2024
53,437
946,173
999,610
--------
---------
---------
At 31 July 2023
71,250
939,259
1,010,509
--------
---------
------------
13. Stocks
2024
2023
£
£
Finished goods
21,578
4,774
--------
-------
14. Debtors
2024
2023
£
£
Trade debtors
1,595,569
1,878,699
Amounts owed by group undertakings
598,118
589,686
Prepayments and accrued income
279,673
240,154
Directors loan account
1,254
Other debtors
1,022
2,489
------------
------------
2,474,382
2,712,282
------------
------------
Included within trade debtors are factored balances amounting to £1,595,569 (2023: £1,878,699).
15. Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
1,400,250
1,303,855
Accruals and deferred income
9,000
9,000
Social security and other taxes
213,893
199,867
Obligations under finance leases and hire purchase contracts
346,807
371,179
Other creditors
1,060,127
1,358,413
------------
------------
3,030,077
3,242,314
------------
------------
Included in other creditors is a balance of £1,060,127 (2023 : £1,358,053) relating to Barclays Invoice Financing this is secured by the book debts of the company.
16. Creditors: amounts falling due after more than one year
2024
2023
£
£
Obligations under finance leases and hire purchase contracts
258,417
325,376
---------
---------
17. Finance leases and hire purchase contracts
The total future minimum lease payments under finance leases and hire purchase contracts are as follows:
2024
2023
£
£
Not later than 1 year
346,807
371,179
Later than 1 year and not later than 5 years
258,417
325,376
---------
---------
605,224
696,555
---------
---------
18. Provisions
Deferred tax (note 19)
£
At 1 August 2023
318,918
Additions
82,737
---------
At 31 July 2024
401,655
---------
19. Deferred tax
The deferred tax included in the statement of financial position is as follows:
2024
2023
£
£
Included in provisions (note 18)
401,655
318,918
---------
---------
The deferred tax account consists of the tax effect of timing differences in respect of:
2024
2023
£
£
Accelerated capital allowances
401,655
318,918
---------
---------
20. Employee benefits
Defined contribution plans
The amount recognised in profit or loss as an expense in relation to defined contribution plans was £ 58,286 (2023: £ 57,777 ).
21. Called up share capital
Issued, called up and fully paid
2024
2023
No.
£
No.
£
Ordinary 'A' shares of £ 1 each
30,000
30,000
30,000
30,000
Ordinary 'B' shares of £ 1 each
2,500
2,500
2,500
2,500
Ordinary 'C' shares of £ 1 each
833
833
833
833
--------
--------
--------
--------
33,333
33,333
33,333
33,333
--------
--------
--------
--------
22. Reserves
Share premium account - This reserve records the amount above the nominal value received for shares sold, less transaction costs. Profit and loss account - This reserve records retained earnings and accumulated losses.
23. Ultimate parent company
The ultimate parent company is Mark Luck (Holdings) Limited.
24. Analysis of changes in net debt
At 1 Aug 2023
Cash flows
At 31 Jul 2024
£
£
£
Cash at bank and in hand
592,061
(27,142)
564,919
Debt due within one year
(371,179)
24,372
(346,807)
Debt due after one year
(325,376)
66,959
(258,417)
---------
--------
---------
( 104,494)
64,189
( 40,305)
---------
--------
---------
MARK LUCK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (continued)
YEAR ENDED 31 JULY 2024
25. Directors' advances, credits and guarantees
At the beginning of the year, the Director owed £1,254 to the company. This was repaid in full during the year. At the reporting date, no amounts were owed by the Director.