LOVIE GROUP LIMITED
No. SC620749
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
LOVIE GROUP LIMITED
COMPANY INFORMATION
Directors
Mrs D Lovie
M W Lovie
M C Lovie
W W Lovie
Secretary
Mrs D Lovie
Company number
SC620749
Registered office
Cowbog
New Pitsligo
Fraserburgh
Aberdeenshire
AB43 6PR
Business address
Cowbog
New Pitsligo
Fraserburgh
Aberdeenshire
AB43 6PR
Auditor
Hall Morrice LLP
6 & 7 Queens Terrace
Aberdeen
AB10 1XL
Bankers
Bank of Scotland PLC
Seaforth Street
Fraserburgh
AB43 9BB
LOVIE GROUP LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 6
Group statement of comprehensive income
7
Group balance sheet
8
Company balance sheet
9
Group statement of changes in equity
10
Company statement of changes in equity
11
Group statement of cash flows
12
Notes to the financial statements
13 - 31
LOVIE GROUP 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

Lovie Group Limited is the parent company for Lovie Limited, Lovie (New Pitsligo) Limited, Limited, Lovie Concrete Products Limited and Chell (Memsie), a dormant company. One of the subsidiaries, Lovie Limited, is also a member of Lovie Quarry & Concrete Products LLP, which is involved in the manufacture of concrete products.

 

The economic environment in the year under review has remained challenging with all sectors of the industry under significant competitive pressure. Despite this, the group has achieved sales of £11,164,263 (2023 - £9,755,251) and operating profit of £880,213 (2023 - an operating loss of £196,765), which includes a large amortisation charge not related to the operation of the group. The directors consider the trading profits to be satisfactory.

 

The directors remain confident the group will maintain satisfactory levels of performance as market conditions improve. The group has a strong balance sheet at the period end with no external debt.

Principal risks and uncertainties

The management of the business and the execution of the company's strategy are subject to a number of risks. The key business risks and uncertainties affecting the company are considered to relate to competition from both local and national companies, employee retention and cost of materials.

 

The company is consistently reviewing its strategic options for the short to medium term in order to mitigate these risks.

Development and performance

The directors anticipate the business environment will remain competitive. They believe that the company is in a good financial position and that the risks that have been identified are being well managed. With careful focus on appropriate diversification and development of new products, as well as reviewing the state of the market and the activities of competitors, the directors are confident in the company's ability to maintain and build on this strategy and financial position.

Key performance indicators

Given the straightforward nature of the business, the company's directors are of the opinion that analysis using KPI's is not necessary for an understanding of the development, performance or position of the business with turnover and profitability the measures used to monitor business performance.

On behalf of the board

W W Lovie
Director
19 March 2025
LOVIE GROUP LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 2 -

The directors present their report and audited financial statements for the year ended 31 March 2024.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Mrs D Lovie
M W Lovie
M C Lovie
W W Lovie
Results and dividends

The results for the year are set out on page 7.

Ordinary dividends were paid amounting to £180,000 (2023 - £360,000). The directors do not recommend payment of a final dividend.

Auditor

The auditor, Hall Morrice LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Statement of directors' responsibilities

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 group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

 

 

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

LOVIE GROUP LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 3 -
Statement of disclosure to auditor

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

On behalf of the board
W W Lovie
Director
19 March 2025
LOVIE GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF LOVIE GROUP LIMITED
- 4 -
Opinion

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

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and parent company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the Strategic report and Directors' report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the Strategic report and Directors' 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:

LOVIE GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF LOVIE GROUP LIMITED
- 5 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the Strategic report or the Directors' report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

 

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, as set out in the Directors' report, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the parent company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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 as detailed below.

In identifying and assessing the risk of material misstatement due to non-compliance with laws and regulations we have:

 

LOVIE GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF LOVIE GROUP LIMITED
- 6 -

In identifying and assessing the risk of material misstatement due to irregularities, including fraud and how it may occur, and the potential for management bias and the override of controls we have:

 

 

We did not identify any matters relating to non-compliance with laws and regulations, or relating to fraud.

 

Because of the inherent limitations of an audit, there is an unavoidable risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. The risk of not detecting a material misstatement due to fraud is inherently more difficult than detecting those that result from error as fraud may involve intentional concealment, forgery, collusion, omission or misrepresentation. In addition, the further removed any non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: http://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the group’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 group’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 group and the group’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Derek Mair, FCCA
Senior Statutory Auditor
For and on behalf of Hall Morrice LLP
Statutory Auditor
Aberdeen
19 March 2025
LOVIE GROUP LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2024
- 7 -
2024
2023
Notes
£
£
Turnover
3
11,164,263
9,755,251
Cost of sales
(7,566,079)
(6,981,049)
Gross profit
3,598,184
2,774,202
Administrative expenses
(2,774,424)
(3,121,385)
Other operating income
56,453
150,418
Operating profit/(loss)
4
880,213
(196,765)
Interest receivable and similar income
7
8,657
1,068
Interest payable and similar expenses
8
1,093,157
(439,317)
Profit/(loss) before taxation
1,982,027
(635,014)
Tax on profit/(loss)
9
(262,873)
24,415
Profit/(loss) for the financial year
25
1,719,154
(610,599)
Profit/(loss) for the financial year is attributable to:
- Owners of the parent company
1,037,655
(1,141,868)
- Non-controlling interests
681,499
531,269
1,719,154
(610,599)

The group statement of comprehensive income has been prepared on the basis that all operations are continuing operations.

LOVIE GROUP LIMITED
GROUP BALANCE SHEET
AS AT
31 MARCH 2024
31 March 2024
- 8 -
2024
2023
Notes
£
£
£
£
Fixed assets
Goodwill
11
8,985,375
10,482,938
Other intangible assets
11
20,916
-
0
Total intangible assets
9,006,291
10,482,938
Tangible assets
12
10,929,999
8,746,495
19,936,290
19,229,433
Current assets
Stocks
16
1,327,433
1,468,189
Debtors
17
3,496,295
3,366,715
Cash at bank and in hand
1,768,493
1,652,623
6,592,221
6,487,527
Creditors: amounts falling due within one year
18
(1,494,064)
(1,484,546)
Net current assets
5,098,157
5,002,981
Total assets less current liabilities
25,034,447
24,232,414
Creditors: amounts falling due after more than one year
19
(831,200)
-
Provisions for liabilities
Provisions
21
824,260
1,934,154
Deferred tax liability
22
930,184
828,611
(1,754,444)
(2,762,765)
Net assets
22,448,803
21,469,649
Capital and reserves
Called up share capital
24
150,000
150,000
Other reserves
25
14,345,000
14,345,000
Profit and loss reserves
25
7,675,351
6,817,696
Equity attributable to owners of the parent company
22,170,351
21,312,696
Non-controlling interests
278,452
156,953
22,448,803
21,469,649
The financial statements were approved by the board of directors and authorised for issue on 19 March 2025 and are signed on its behalf by:
19 March 2025
W W Lovie
Director
LOVIE GROUP LIMITED
COMPANY BALANCE SHEET
AS AT 31 MARCH 2024
31 March 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Investments
13
24,763,000
24,763,000
Current assets
-
-
Creditors: amounts falling due within one year
18
(15,000)
(15,000)
Net current liabilities
(15,000)
(15,000)
Net assets
24,748,000
24,748,000
Capital and reserves
Called up share capital
24
150,000
150,000
Other reserves
25
14,345,000
14,345,000
Profit and loss reserves
25
10,253,000
10,253,000
Total equity
24,748,000
24,748,000

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £180,000 (2023 - £360,000)

The financial statements were approved by the board of directors and authorised for issue on 19 March 2025 and are signed on its behalf by:
19 March 2025
W W Lovie
Director
Company Registration No. SC620749
LOVIE GROUP LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
- 10 -
Share capital
Other reserves
Profit and loss reserves
Total controlling interest
Non-controlling interest
Total
Notes
£
£
£
£
£
£
Balance at 1 April 2022
150,000
14,345,000
8,319,564
22,814,564
20,684
22,835,248
Year ended 31 March 2023:
Loss and total comprehensive income for the year
-
-
(1,141,868)
(1,141,868)
531,269
(610,599)
Dividends
10
-
-
(360,000)
(360,000)
-
(360,000)
Distributions to non-controlling interests
-
-
-
-
(395,000)
(395,000)
Balance at 31 March 2023
150,000
14,345,000
6,817,696
21,312,696
156,953
21,469,649
Year ended 31 March 2024:
Profit and total comprehensive income for the year
-
-
1,037,655
1,037,655
681,499
1,719,154
Dividends
10
-
-
(180,000)
(180,000)
-
(180,000)
Distributions to non-controlling interests
-
-
-
-
(560,000)
(560,000)
Balance at 31 March 2024
150,000
14,345,000
7,675,351
22,170,351
278,452
22,448,803
LOVIE GROUP LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
- 11 -
Share capital
Other reserves
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 April 2022
150,000
14,345,000
10,253,000
24,748,000
Year ended 31 March 2023:
Profit and total comprehensive income for the year
-
-
360,000
360,000
Dividends
10
-
-
(360,000)
(360,000)
Balance at 31 March 2023
150,000
14,345,000
10,253,000
24,748,000
Year ended 31 March 2024:
Profit and total comprehensive income for the year
-
-
180,000
180,000
Dividends
10
-
-
(180,000)
(180,000)
Balance at 31 March 2024
150,000
14,345,000
10,253,000
24,748,000
LOVIE GROUP LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2024
- 12 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
29
2,494,303
2,203,576
Interest paid
-
(439,317)
Income taxes paid
(284,075)
(97,949)
Net cash inflow from operating activities
2,210,228
1,666,310
Investing activities
Purchase of intangible assets
(20,916)
-
Purchase of tangible fixed assets
(2,422,197)
(594,532)
Proceeds on disposal of tangible fixed assets
58,001
120,925
Interest received
8,657
1,068
Net cash used in investing activities
(2,376,455)
(472,539)
Financing activities
Proceeds from borrowings
1,068,000
-
Repayment of borrowings
(45,903)
-
Payment of finance leases obligations
-
(278)
Dividends paid to equity shareholders
(180,000)
(360,000)
Distributions paid to non-controlling interests
(560,000)
(395,000)
Net cash generated from financing activities
282,097
(755,278)
Net increase in cash and cash equivalents
115,870
438,493
Cash and cash equivalents at beginning of year
1,652,623
1,214,130
Cash and cash equivalents at end of year
1,768,493
1,652,623
LOVIE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
- 13 -
1
Accounting policies
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 company is a qualifying entity for the purposes of FRS 102, being the parent of a group that prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:

 

1.2
Basis of consolidation

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

 

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

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

 

All financial statements are made up to 31 March 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

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

LOVIE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies (continued)
- 14 -

Lovie Quarry & Concrete Products LLP is treated as a subsidiary because Lovie Group Limited has the power to exercise dominant influence and control over it.

1.3
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for at least twelve months from the date of signing the financial statements. Thus, the directors have continued to adopt the going concern basis of accounting in preparing the financial statements.

1.4
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

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

Revenue from contracts for the provision of services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.

Interest income is recognised when it is probable that the economic benefits will flow to the company and the amount of revenue can be measured reliably. Interest income is accrued on a time basis, by reference to the principal outstanding and the effective interest rate applicable.

1.5
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.

 

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

1.6
Intangible fixed assets other than goodwill

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

 

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

LOVIE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies (continued)
- 15 -

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

BPS entitlements
3 years
1.7
Tangible fixed assets

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

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 land and buildings
50 years
Plant and equipment
2 - 20 years
Fixtures and fittings
5 years
Motor vehicles
2 - 10 years

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.

During the year, the Company reassessed its provision for landfill closure costs, leading to a downward revaluation of the provision. As a result, the carrying value of the related landfill asset was adjusted and the previously recognised depreciation was fully eliminated.

The provision for landfill closure costs was recalculated, reflecting updated estimates and assumptions. This revaluation resulted in a downward adjustment of the landfill assets carrying values. Consequently, the asset no longer required depreciation for the period until the revaluation was complete.

With the downward adjustment to the landfill asset, the new carrying value of the asset is now being depreciated over its updated useful life. The updated useful lives were reassessed based on the remaining operational life of the landfill sites and the updated closure estimates.

1.8
Fixed asset investments

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

 

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

 

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

 

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

LOVIE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies (continued)
- 16 -

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

 

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

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

1.9
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

 

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

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

 

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

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

1.10
Stocks

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

 

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

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.11
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

LOVIE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies (continued)
- 17 -
1.12
Financial instruments

The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

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

Other financial assets

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

Impairment of financial assets

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

 

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

 

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

Derecognition of financial assets

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

Classification of financial liabilities

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

LOVIE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies (continued)
- 18 -
Basic financial liabilities

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

 

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

 

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

Other financial liabilities

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

 

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

Derecognition of financial liabilities

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

1.13
Equity instruments

Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.

1.14
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

LOVIE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies (continued)
- 19 -
Deferred tax

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

 

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

1.15
Provisions

Provisions are recognised when the group has a legal or constructive present obligation as a result of a past event, it is probable that the group will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

 

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

1.16
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.

1.17
Retirement benefits

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

1.18
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 leased asset are consumed.

1.19
Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

 

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

LOVIE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies (continued)
- 20 -
1.20
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

2
Judgements and key sources of estimation uncertainty

In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Impairment of debtors

The company assesses the recoverable value of trade and other debtors and makes provisions for doubtful debts. In making this assessment, management consider various factors including the aging profile of debtors, historical experience and the financial standing of the customer.

Stock valuation

Stock is carried at the lower of cost and net realisable value. For manufactured concreate products and quarried goods, costs include assumptions and estimates made by management regarding the cost of extraction and production which is based on historical experience and cost data available.

LOVIE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
2
Judgements and key sources of estimation uncertainty (continued)
- 21 -
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.

Useful economic lives of tangible assets

The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. See note 12 for the carrying amount of each asset and note 1.7 for the useful economic lives for each class of asset.

Reinstatement provision

The company provides for the costs of reinstating quarrying sites where a legal or constructive obligation exists. The costs of reinstatement at the end of the site's useful life are estimated based on current prices and inflation assumptions. Internal costing is based on data from similar restoration projects within the company’s portfolio. While management believes these estimates are reasonable, they acknowledge the inherent uncertainty in predicting future restoration costs, especially with respect to the potential for unforeseen environmental challenges, labour shortages, or material cost fluctuations.

 

The exact timing of the quarry closure is uncertain, as it depends on the pace of resource extraction. Management has used the best estimate of the closure date based on projected extraction schedules, but changes in market conditions or unforeseen delays may affect this timing and the associated restoration costs.

 

Provisions are discounted to their present value at a rate that reflects current market assessments of the time value of money and the risks specific to the liability. A nominal discount rate has been applied to the provision, reflecting the time value of money and the anticipated timing of the restoration activities. The rate is based on market data and reflects the expected timing of closure and restoration work. The cost estimates, inflation rates, and discount rates require significant estimation but are based on management’s use of historic evidence available and market data.

Goodwill

The group establishes a reliable estimate of the useful life of goodwill arising on business combinations. This estimate is based on a variety of factors such as the expected use of the acquired business, the expected usual life of the cash generating units to which the goodwill is attributed, any legal, regulatory or contractual provisions that can limit useful life and assumptions that market participants would consider in respect of similar businesses. See note 11 for the carrying amount of the goodwill and note 1.5 for its useful economic life.

3
Turnover and other revenue

The turnover is attributable to the sales of concrete products and from the sale of energy generated from biomass plants operated by the group.

 

All turnover arose within the United Kingdom.

 

LOVIE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 22 -
4
Operating profit/(loss)
2024
2023
£
£
Operating profit/(loss) for the year is stated after charging/(crediting):
Government grants
(36,683)
(39,137)
Fees payable to the company's auditor for the audit of the group's financial statements
33,250
30,000
Depreciation of owned tangible fixed assets
300,910
785,893
Profit on disposal of tangible fixed assets
(120,218)
(117,984)
Amortisation of intangible assets
1,497,563
1,497,563
Operating lease charges
85,750
85,750
5
Employees

The average monthly number of persons (including directors) employed by the group and company during the year was:

Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
Directors
4
4
4
4
Administrative
14
12
-
-
Operations
52
51
-
-
Total
70
67
4
4

Their aggregate remuneration comprised:

Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
2,230,966
2,085,584
-
0
-
0
Social security costs
230,452
218,156
-
-
Pension costs
155,035
142,709
-
0
-
0
2,616,453
2,446,449
-
0
-
0
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
43,200
41,950
Company pension contributions to defined contribution schemes
20,000
20,000
63,200
61,950
LOVIE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
6
Directors' remuneration (continued)
- 23 -

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2023 - 2).

7
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
3,440
648
Other interest income
5,217
420
Total income
8,657
1,068
8
Interest payable and similar expenses
2024
2023
£
£
Other finance costs:
Interest on finance leases and hire purchase contracts
-
33
Other interest
(1,093,157)
439,284
Total finance costs
(1,093,157)
439,317

During the period, the company’s restoration provision has been revalued due to updated estimates of future costs. As a result, the provision has decreased, with the adjustment recognised as a credit to finance costs in the profit and loss account.

The revaluation reflects changes in estimated future cash flows and the discount rate applied. The provision is presented under provisions for liabilities in the balance sheet and will continue to be reviewed periodically.

9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
161,300
173,898
Adjustments in respect of prior periods
-
0
(539)
Total current tax
161,300
173,359
Deferred tax
Origination and reversal of timing differences
101,573
(197,774)
Total tax charge/(credit)
262,873
(24,415)

Changes to the UK corporation tax rates were substantively enacted as part of Finance Bill 2023 (on 10 January 2023). These changes included an increase in the main rate to 25% from April 2023. Deferred taxes at the balance sheet date, in relation to UK companies, are measured using tax rates enacted as at the balance sheet date (25%).

LOVIE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
9
Taxation (continued)
- 24 -

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

2024
2023
£
£
Profit/(loss) before taxation
1,982,027
(635,014)
Expected tax charge/(credit) based on the standard rate of corporation tax in the UK of 25% (2023: 19%)
495,507
(120,653)
Tax effect of expenses that are not deductible in determining taxable profit
4,184
83,464
Tax effect of income not taxable in determining taxable profit
(33,846)
(9,782)
Effect of change in corporation tax rate
(692)
-
Permanent capital allowances in excess of depreciation
(253,709)
37,211
Amortisation on assets not qualifying for tax allowances
374,391
284,537
Under/(over) provided in prior years
-
0
(539)
Deferred tax (credit)/charge
101,573
(197,774)
Profit not subject to corporation tax
(151,149)
(100,879)
Taxable Income
405
-
0
Revaluation of provisions
(273,791)
-
0
Taxation charge/(credit)
262,873
(24,415)
10
Dividends
2024
2023
Recognised as distributions to equity holders:
£
£
Interim paid
180,000
360,000
LOVIE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 25 -
11
Intangible fixed assets
Group
Goodwill
BPS entitlements
Total
£
£
£
Cost
At 1 April 2023
14,975,627
-
0
14,975,627
Additions
-
0
20,916
20,916
At 31 March 2024
14,975,627
20,916
14,996,543
Amortisation and impairment
At 1 April 2023
4,492,689
-
0
4,492,689
Amortisation charged for the year
1,497,563
-
0
1,497,563
At 31 March 2024
5,990,252
-
0
5,990,252
Carrying amount
At 31 March 2024
8,985,375
20,916
9,006,291
At 31 March 2023
10,482,938
-
0
10,482,938
The company had no intangible fixed assets at 31 March 2024 or 31 March 2023.
12
Tangible fixed assets
Group
Freehold land and buildings
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 April 2023
5,310,681
3,040,677
8,515
1,525,389
9,885,262
Additions
1,312,700
495,062
2,887
611,548
2,422,197
Disposals
(14,729)
(224,091)
-
0
(111,915)
(350,735)
Transfers
(389,713)
434,083
-
0
(44,370)
-
0
At 31 March 2024
6,218,939
3,745,731
11,402
1,980,652
11,956,724
Depreciation and impairment
At 1 April 2023
(434,729)
1,214,868
713
357,915
1,138,767
Depreciation charged in the year
(531,493)
419,744
1,751
410,908
300,910
Eliminated in respect of disposals
-
0
(305,810)
-
0
(107,142)
(412,952)
Transfers
(500,404)
857,791
-
0
(357,387)
-
0
At 31 March 2024
(1,466,626)
2,186,593
2,464
304,294
1,026,725
Carrying amount
At 31 March 2024
7,685,565
1,559,138
8,938
1,676,358
10,929,999
At 31 March 2023
5,745,410
1,825,809
7,802
1,167,474
8,746,495
The company had no tangible fixed assets at 31 March 2024 or 31 March 2023.
LOVIE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
12
Tangible fixed assets (continued)
- 26 -

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

Group
Company
2024
2023
2024
2023
£
£
£
£
Motor vehicles
-
0
7,781
-
0
-
0
13
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
14
-
0
-
0
24,763,000
24,763,000
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Fair value
At 1 April 2023 and 31 March 2024
24,763,000
Carrying amount
At 31 March 2024
24,763,000
At 31 March 2023
24,763,000
14
Subsidiaries

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

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Indirect
Lovie Limited
Scotland
Ordinary
100.00
-
Lovie (New Pitsligo) Limited
Scotland
Ordinary
-
100.00
Chell (Memsie) Limited
Scotland
Ordinary
-
100.00
LOVIE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 27 -
15
Financial instruments
Group
Company
2024
2023
2024
2023
£
£
£
£
Carrying amount of financial assets
Debt instruments measured at amortised cost
3,364,911
3,289,188
-
-
Carrying amount of financial liabilities
Measured at amortised cost
1,987,415
997,934
15,000
15,000
16
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Raw materials and consumables
1,327,433
1,468,189
-
-
17
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
1,458,746
1,406,560
-
0
-
0
Other debtors
1,964,370
1,891,073
-
0
-
0
Prepayments and accrued income
73,179
69,082
-
0
-
0
3,496,295
3,366,715
-
-
18
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Other borrowings
20
190,897
-
0
-
0
-
0
Trade creditors
602,822
722,122
-
0
-
0
Corporation tax payable
51,098
173,873
-
0
-
0
Other taxation and social security
286,751
312,739
-
-
Accruals and deferred income
362,496
275,812
15,000
15,000
1,494,064
1,484,546
15,000
15,000
19
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Other borrowings
20
831,200
-
0
-
0
-
0
LOVIE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 28 -
20
Loans and overdrafts
Group
Company
2024
2023
2024
2023
£
£
£
£
Other loans
1,022,097
-
0
-
0
-
0
Payable within one year
190,897
-
0
-
0
-
0
Payable after one year
831,200
-
0
-
0
-
0

The Trustees of the Lovie Ltd (1995) Retirement and Death Benefit Scheme hold standard security over the properties and land at Belmuir, Methlick, Ellon.

This loan is repayable quarterly over 5 years and interest is charged at 6.25% per annum.

21
Provisions for liabilities
Group
Company
2024
2023
2024
2023
£
£
£
£
Reinstatement provision
824,260
1,934,154
-
-
Deferred tax liabilities
22
930,184
828,611
-
0
-
0
1,754,444
2,762,765
-
0
-
0
22
Deferred taxation

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

Liabilities
Liabilities
2024
2023
Group
£
£
Accelerated capital allowances
959,893
902,173
Provisions
(29,709)
(73,562)
930,184
828,611
The company has no deferred tax assets or liabilities.
LOVIE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
22
Deferred taxation (continued)
- 29 -
Group
Company
2024
2024
Movements in the year:
£
£
Liability at 1 April 2023
828,611
-
Charge to profit or loss
101,573
-
Liability at 31 March 2024
930,184
-
23
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
155,035
142,709

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

24
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary A shares of £1 each
150,000
150,000
150,000
150,000
25
Reserves
Merger reserve

This reserve represents the difference between the value of shares issued by the company in exchange for the value of shares acquired in respect of the acquisition of subsidiaries accounted for under the pooling-of-interest method.

Profit and loss reserves

This reserve records the accumulated distributable profits made by the company net of distributions to shareholders.

LOVIE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 30 -
26
Operating lease commitments
Lessee

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Group
Company
2024
2023
2024
2023
£
£
£
£
Within one year
85,750
85,750
-
-
Between two and five years
343,156
343,392
-
-
In over five years
1,429,167
1,514,917
-
-
1,858,073
1,944,059
-
-

The total value of lease payments recognised as an expense during the year were £85,750 (2023 - £85,570).

27
Capital commitments

Amounts contracted for but not provided in the financial statements:

Group
Company
2024
2023
2024
2023
£
£
£
£
Acquisition of tangible fixed assets
267,860
-
-
-
28
Related party transactions

The following amounts were outstanding at the reporting end date:

Amounts due from related parties
2024
2023
£
£
Group
Other related parties
1,868,579
1,868,579
LOVIE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 31 -
29
Cash generated from group operations
2024
2023
£
£
Profit/(loss) for the year after tax
1,719,154
(610,599)
Adjustments for:
Taxation charged/(credited)
262,873
(24,415)
Finance costs
-
439,317
Investment income
(8,657)
(1,068)
Gain on disposal of tangible fixed assets
(120,218)
(117,984)
Amortisation and impairment of intangible assets
1,497,563
1,497,563
Depreciation and impairment of tangible fixed assets
300,910
785,893
(Decrease)/increase in provisions
(1,109,894)
439,284
Movements in working capital:
Decrease/(increase) in stocks
140,756
(180,903)
(Increase)/decrease in debtors
(129,580)
138,837
Decrease in creditors
(58,604)
(162,349)
Cash generated from operations
2,494,303
2,203,576
30
Analysis of changes in net funds - group
1 April 2023
Cash flows
31 March 2024
£
£
£
Cash at bank and in hand
1,652,623
115,870
1,768,493
Borrowings excluding overdrafts
-
(1,022,097)
(1,022,097)
1,652,623
(906,227)
746,396
31
Company information

Lovie Group Limited (“the company”) is a private limited company domiciled and incorporated in Scotland. The registered office is Cowbog, New Pitsligo, Fraserburgh, Aberdeenshire, AB43 6PR.

 

The group consists of Lovie Group Limited and all of its subsidiaries.

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