REGISTERED NUMBER: 14978495 (England and Wales) |
Group Strategic Report, Report of the Directors and |
Audited Consolidated Financial Statements for the Year Ended 30 September 2024 |
for |
LPK Group Limited |
REGISTERED NUMBER: 14978495 (England and Wales) |
Group Strategic Report, Report of the Directors and |
Audited Consolidated Financial Statements for the Year Ended 30 September 2024 |
for |
LPK Group Limited |
LPK Group Limited (Registered number: 14978495) |
Contents of the Consolidated Financial Statements |
for the Year Ended 30 September 2024 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 4 |
Report of the Independent Auditors | 6 |
Consolidated Statement of Income and Retained Earnings |
10 |
Consolidated Balance Sheet | 11 |
Company Balance Sheet | 12 |
Consolidated Cash Flow Statement | 13 |
Notes to the Consolidated Cash Flow Statement | 14 |
Notes to the Consolidated Financial Statements | 15 |
LPK Group Limited |
Company Information |
for the Year Ended 30 September 2024 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
SENIOR STATUTORY AUDITOR: | John Grant FCCA |
INDEPENDENT AUDITORS: |
Brightfield Business Hub |
Bakewell Rd |
Orton Southgate |
Peterborough |
PE2 6XU |
LPK Group Limited (Registered number: 14978495) |
Group Strategic Report |
for the Year Ended 30 September 2024 |
The directors present their strategic report of the company and the group for the year ended 30 September 2024. |
The directors present their strategic report for the year ended 30 September 2024. |
REVIEW OF BUSINESS |
The Group was formed on 1st October 2023 by an amalgamation of our main trading business PRS Office Furniture Limited, the company which owns our freehold trading premises MSP 003 Limited and our company which holds our other freehold property investments, LARR Residential Properties Limited. |
PRS Office Furniture Limited enjoyed a very successful trading year, exceeding its budgets in terms of turnover. The group's team of staff met, and in most cases exceeded, their KPIs. |
We work with Positive Plant and Ecovadis and are aiming within 2025 to become a top 15% company in terms of sustainability. We have invested in solar panels and electric vehicles and our target is to be carbon net zero by 2045. |
Our further efforts have led us to initiate our 'Keep It Going' scheme whereby serviceable pre-used furniture is offered to registered local charities rather than being sent to landfill. |
We are on track to achieve ISO 14001 status for our Environmental Management Systems in 2025 |
The business continues to maintain a healthy balance across all of its activities, with a wide range of opportunities in the coming year. |
PRINCIPAL RISKS AND UNCERTAINTIES |
The main risks facing the business are liquidity risk, credit risk, currency risk, cash flow risk. The directors have reviewed and agreed policies for managing each of these risks. |
The group seeks to manage liquidity risk by ensuring that sufficient funding is available to meet future requirements. This is done using forecasting methods. |
The group trades only with recognised, creditworthy third parties. In addition, receivable balances are monitored on an ongoing basis with the result that the company's exposure to bad debts is not significant. |
The group makes an element of its sales and purchases in foreign currencies. The directors monitor on an ongoing basis the currency risk arising to the company and ensures that the risk remains at an acceptable level. Where possible, costs and incomes are matched in that foreign currency to minimise exchange risk with bank accounts held in the major overseas currencies. |
LPK Group Limited (Registered number: 14978495) |
Group Strategic Report |
for the Year Ended 30 September 2024 |
FINANCIAL KEY PERFORMANCE INDICATORS |
The key financial performance indicators of the group include gross profit, and turnover. |
The group's turnover for the financial year was £13,275,462. |
The group's gross profit margin was 25%. |
ON BEHALF OF THE BOARD: |
13 March 2025 |
LPK Group Limited (Registered number: 14978495) |
Report of the Directors |
for the Year Ended 30 September 2024 |
The directors present their report with the financial statements of the company and the group for the year ended 30 September 2024. |
COMMENCEMENT OF TRADING |
The group was formed on 1st October 2023 by the acquisition of its subsidiaries in a share for share exchange. |
DIVIDENDS |
No dividends will be distributed for the year ended 30 September 2024. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 October 2023 to the date of this report. |
POLITICAL DONATIONS AND EXPENDITURE |
The group has made charitable donations during the year. No political donations were made. |
DIRECTORS' RESPONSIBILITIES STATEMENT |
The directors are responsible for preparing the Group Strategic Report, the Report of the Directors 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 group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | 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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
LPK Group Limited (Registered number: 14978495) |
Report of the Directors |
for the Year Ended 30 September 2024 |
AUDITORS |
The auditors, TC Group , will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
Report of the Independent Auditors to the Members of |
LPK Group Limited |
Opinion |
We have audited the financial statements of LPK Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 September 2024 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows 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). |
The prior year financial statements have not been audited, therefore the corresponding figures are unaudited. |
In our opinion the financial statements: |
- | give a true and fair view of the state of the group's and of the parent company affairs as at 30 September 2024 and of the group's profit for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group 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 the 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. |
Report of the Independent Auditors to the Members of |
LPK Group Limited |
Other information |
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. |
We have nothing to report in this regard. |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of our audit: |
- 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 group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the parent company financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors |
As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so. |
Report of the Independent Auditors to the Members of |
LPK Group Limited |
Auditors' 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 a Report of the Auditors 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. |
Extent to which the audit was considered capable of detecting irregularities, including fraud |
The objectives of our audit, in respect to fraud, are: to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses; and to respond appropriately to fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and its management. |
Our approach was as follows: |
- We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial and sector experience, and through discussion with the directors and other management (as required by auditing standards), and discussed with the directors and other management the policies and procedures regarding compliance with laws and regulations; |
- We considered the legal and regulatory frameworks directly applicable to the financial statements reporting framework (FRS 102 and the Companies Act 2006) and the relevant tax compliance regulations in the UK; |
- We considered the nature of the industry, the control environment and business performance, including the key drivers for management's remuneration; |
- We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit; |
- We considered the procedures and controls that the company has established to address risks identified, or that otherwise prevent, deter and detect fraud; and how senior management monitors those programmes and controls. |
Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Where the risk was considered to be higher, we performed audit procedures to address each identified fraud risk. These procedures included: testing manual journals; reviewing the financial statement disclosures and testing to supporting documentation; performing analytical procedures; and enquiring of management, and were designed to provide reasonable assurance that the financial statements were free from fraud or error. |
Report of the Independent Auditors to the Members of |
LPK Group Limited |
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
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 a Report of the Auditors 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. |
for and on behalf of |
Brightfield Business Hub |
Bakewell Rd |
Orton Southgate |
Peterborough |
PE2 6XU |
LPK Group Limited (Registered number: 14978495) |
Consolidated Statement of Income and Retained Earnings |
for the Year Ended 30 September 2024 |
30.9.24 | 30.9.23 |
(Unaudited) |
Notes | £ | £ |
TURNOVER | 3 | 13,275,462 | 7,675,670 |
Cost of sales | 9,964,474 | 5,371,178 |
GROSS PROFIT | 3,310,988 | 2,304,492 |
Administrative expenses | 3,028,064 | 2,101,088 |
282,924 | 203,404 |
Other operating income | 37,326 | 31,909 |
OPERATING PROFIT | 5 | 320,250 | 235,313 |
Profit/loss - assets disposed | 6 | - | 2,287 |
320,250 | 233,026 |
Interest receivable and similar income | 6,476 | 3,972 |
326,726 | 236,998 |
Interest payable and similar expenses | 7 | - | 259 |
PROFIT BEFORE TAXATION | 326,726 | 236,739 |
Tax on profit | 8 | 73,557 | 67,646 |
PROFIT FOR THE FINANCIAL YEAR |
RETAINED EARNINGS FOR THE GROUP AT END OF YEAR |
253,169 |
169,093 |
Profit attributable to: |
Owners of the parent | 253,169 | 169,093 |
LPK Group Limited (Registered number: 14978495) |
Consolidated Balance Sheet |
30 September 2024 |
30.9.24 | 30.9.23 |
(Unaudited) |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 10 | 2,266,534 | 2,291,351 |
Investments | 11 | - | - |
Investment property | 12 | 1,487,251 | 1,487,251 |
3,753,785 | 3,778,602 |
CURRENT ASSETS |
Stocks | 13 | 1,209,031 | 1,323,022 |
Debtors | 14 | 3,974,063 | 2,140,286 |
Cash at bank and in hand | 1,385,735 | 1,800,232 |
6,568,829 | 5,263,540 |
CREDITORS |
Amounts falling due within one year | 15 | 3,121,344 | 2,089,184 |
NET CURRENT ASSETS | 3,447,485 | 3,174,356 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
7,201,270 |
6,952,958 |
PROVISIONS FOR LIABILITIES | 17 | 349,458 | 354,319 |
NET ASSETS | 6,851,812 | 6,598,639 |
CAPITAL AND RESERVES |
Called up share capital | 18 | 106 | 102 |
Merger reserves | 19 | 6,598,537 | 6,401,169 |
Retained earnings | 19 | 253,169 | 197,368 |
SHAREHOLDERS' FUNDS | 6,851,812 | 6,598,639 |
The financial statements were approved by the Board of Directors and authorised for issue on 13 March 2025 and were signed on its behalf by: |
PJ Kemp - Director |
LPK Group Limited (Registered number: 14978495) |
Company Balance Sheet |
30 September 2024 |
30.9.24 | 30.9.23 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 10 |
Investments | 11 |
Investment property | 12 |
CURRENT ASSETS |
Debtors | 14 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CAPITAL AND RESERVES |
Called up share capital | 18 |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | - | - |
The financial statements were approved by the Board of Directors and authorised for issue on |
LPK Group Limited (Registered number: 14978495) |
Consolidated Cash Flow Statement |
for the Year Ended 30 September 2024 |
30.9.24 | 30.9.23 |
(Unaudited) |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | (328,569 | ) | 784,988 |
Interest paid | - | (259 | ) |
Tax paid | (24,296 | ) | (71,530 | ) |
Net cash from operating activities | (352,865 | ) | 713,199 |
Cash flows from investing activities |
Purchase of tangible fixed assets | (68,212 | ) | (279,888 | ) |
Purchase of investment property | - | (747,450 | ) |
Sale of tangible fixed assets | - | 2,286 |
Interest received | 6,474 | 3,972 |
Net cash from investing activities | (61,738 | ) | (1,021,080 | ) |
Cash flows from financing activities |
Share issue | 106 | - |
Net cash from financing activities | 106 | - |
Decrease in cash and cash equivalents | (414,497 | ) | (307,881 | ) |
Cash and cash equivalents at beginning of year |
2 |
1,800,232 |
2,108,113 |
Cash and cash equivalents at end of year |
2 |
1,385,735 |
1,800,232 |
LPK Group Limited (Registered number: 14978495) |
Notes to the Consolidated Cash Flow Statement |
for the Year Ended 30 September 2024 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
30.9.24 | 30.9.23 |
(Unaudited) |
£ | £ |
Profit before taxation | 326,726 | 236,739 |
Depreciation charges | 93,029 | 86,043 |
Finance costs | - | 259 |
Finance income | (6,476 | ) | (3,972 | ) |
413,279 | 319,069 |
Decrease/(increase) in stocks | 113,991 | (261,464 | ) |
(Increase)/decrease in trade and other debtors | (1,884,883 | ) | 1,130,908 |
Increase/(decrease) in trade and other creditors | 1,029,044 | (403,525 | ) |
Cash generated from operations | (328,569 | ) | 784,988 |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 30 September 2024 |
30.9.24 | 1.10.23 |
£ | £ |
Cash and cash equivalents | 1,385,735 | 1,800,232 |
Year ended 30 September 2023 |
30.9.23 | 1.10.22 |
(Unaudited) |
£ | £ |
Cash and cash equivalents | 1,800,232 | 2,108,113 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1.10.23 | Cash flow | At 30.9.24 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 1,800,232 | (414,497 | ) | 1,385,735 |
1,800,232 | (414,497 | ) | 1,385,735 |
Total | 1,800,232 | (414,497 | ) | 1,385,735 |
LPK Group Limited (Registered number: 14978495) |
Notes to the Consolidated Financial Statements |
for the Year Ended 30 September 2024 |
1. | STATUTORY INFORMATION |
LPK Group Limited is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below. |
The financial statements are presented in British pounds and amounts are rounded to the nearest whole currency unit. |
Business Combination |
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. |
LPK Group Limited (Registered number: 14978495) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 September 2024 |
2. | ACCOUNTING POLICIES - continued |
Basis of consolidation |
The consolidated group financial statements consist of the financial statements of the parent company LPK 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 30 September 2024. Where necessary, adjustments are made to the accounts 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. |
Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates. |
Investments in joint ventures and associates are carried in the group balance sheet at cost plus post-acquisition changes in the group's share of the net assets of the entity, less any impairment in value. The carrying values of investments in joint ventures and associates include acquired goodwill. |
If the group's share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the group does not recognise further losses unless it has incurred obligations to do so or has made payments on behalf of the joint venture or associate. |
Unrealised gains arising from transactions with joint ventures and associates are eliminated to the extent of the group's interest in the entity. |
Going concern |
At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements. |
LPK Group Limited (Registered number: 14978495) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 September 2024 |
2. | ACCOUNTING POLICIES - continued |
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. |
Bad debt provision |
Trade debtors carry an inherent risk factor related to recoverability. The directors have provided for a bad debt provision over the year end trade debtors balance based on their knowledge of the customer, past experience and the most relevant reliable information to them. |
Stock provision |
Stocks carry an inherent risk factor relating to obsolescence, returns and warranties. Directors have provided for impairment over the year end stock balance based on historical data and/ or anticipated future effects based on the most relevant reliably information available to them. |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
Tangible fixed assets |
Freehold property | - |
Fixtures and fittings | - |
Motor vehicles | - |
An annual impairment review is carried out on the Group's freehold properties. Any diminution in value is recognised in profit & loss as a charge to depreciation. |
Investment property |
Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in profit or loss. |
Stocks |
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
LPK Group Limited (Registered number: 14978495) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 September 2024 |
2. | ACCOUNTING POLICIES - continued |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Hire purchase and leasing commitments |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
Pension costs and other post-retirement benefits |
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
3. | TURNOVER |
The turnover and profit before taxation are attributable to the one principal activity of the group. |
An analysis of turnover by geographical market is given below: |
30.9.24 | 30.9.23 |
(Unaudited) |
£ | £ |
United Kingdom | 12,373,338 | 7,079,164 |
Europe | 902,124 | 596,506 |
13,275,462 | 7,675,670 |
LPK Group Limited (Registered number: 14978495) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 September 2024 |
4. | EMPLOYEES AND DIRECTORS |
30.9.24 | 30.9.23 |
(Unaudited) |
£ | £ |
Wages and salaries | 1,837,163 | 1,418,345 |
Social security costs | 209,916 | 183,480 |
Other pension costs | 221,494 | 25,125 |
2,268,573 | 1,626,950 |
The average number of employees during the year was as follows: |
30.9.24 | 30.9.23 |
(Unaudited) |
Management | 11 | 10 |
Operations | 18 | 17 |
The highest paid director received £360,434 ( 2023: £179,654), including pension contributions. |
5. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
30.9.24 | 30.9.23 |
(Unaudited) |
£ | £ |
Other operating leases | 49,261 | 800 |
Depreciation - owned assets | 93,029 | 86,043 |
Auditors' remuneration | 17,500 | - |
Foreign exchange differences | 2,508 | (1,540 | ) |
6. | EXCEPTIONAL ITEMS |
30.9.24 | 30.9.23 |
(Unaudited) |
£ | £ |
Profit/loss - assets disposed | - | (2,287 | ) |
7. | INTEREST PAYABLE AND SIMILAR EXPENSES |
30.9.24 | 30.9.23 |
(Unaudited) |
£ | £ |
Interest payable | - | 259 |
LPK Group Limited (Registered number: 14978495) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 September 2024 |
8. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
30.9.24 | 30.9.23 |
(Unaudited) |
£ | £ |
Current tax: |
UK corporation tax | 73,557 | 67,646 |
Tax on profit | 73,557 | 67,646 |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
30.9.24 | 30.9.23 |
(Unaudited) |
£ | £ |
Profit before tax | 326,726 | 236,739 |
Profit multiplied by the standard rate of corporation tax in the UK of 25 % (2023 - 25 %) |
81,682 |
59,185 |
Effects of: |
Expenses not deductible for tax purposes | 7,726 | (1,410 | ) |
Capital allowances in excess of depreciation | (169 | ) | (5,811 | ) |
Utilisation of tax losses | (15,682 | ) | 15,682 |
Total tax charge | 73,557 | 67,646 |
9. | INDIVIDUAL INCOME STATEMENT |
As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
LPK Group Limited (Registered number: 14978495) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 September 2024 |
10. | TANGIBLE FIXED ASSETS |
Group |
Fixtures |
Freehold | and | Motor | Computer |
property | fittings | vehicles | equipment | Totals |
£ | £ | £ | £ | £ |
COST |
At 1 October 2023 | 1,958,500 | 309,573 | 124,522 | 91,747 | 2,484,342 |
Additions | - | 68,212 | - | - | 68,212 |
At 30 September 2024 | 1,958,500 | 377,785 | 124,522 | 91,747 | 2,552,554 |
DEPRECIATION |
At 1 October 2023 | - | 149,922 | 32,137 | 10,932 | 192,991 |
Charge for year | - | 49,729 | 23,097 | 20,203 | 93,029 |
At 30 September 2024 | - | 199,651 | 55,234 | 31,135 | 286,020 |
NET BOOK VALUE |
At 30 September 2024 | 1,958,500 | 178,134 | 69,288 | 60,612 | 2,266,534 |
At 30 September 2023 | 1,958,500 | 159,651 | 92,385 | 80,815 | 2,291,351 |
11. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
undertakings |
£ |
COST |
Additions |
At 30 September 2024 |
NET BOOK VALUE |
At 30 September 2024 |
LPK Group Limited (Registered number: 14978495) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 September 2024 |
11. | FIXED ASSET INVESTMENTS - continued |
Subsidiaries |
Details of the company's subsidiaries at 30th September 2024 are as follows: |
PRS Office Furniture Limited |
Company registration number: 04026031 |
Registered Office: England & Wales |
Class of shares held: Ordinary |
Direct holding: 100% |
Indirect holding: 0% |
MSP 003 Limited |
Company registration number: 04202929 |
Registered Office: England & Wales |
Class of shares held: Ordinary |
Direct holding: 100% |
Indirect holding: 0% |
LARR Residential Property Limited |
Company registration number: 14977414 |
Registered Office: England & Wales |
Class of shares held: Ordinary |
Direct holding: 100% |
Indirect holding: 0% |
MSP 003 Limited and LARR Residential Property Limited are exempt from the requirements of an audit in accordance with section 479A of the Companies Act 2006. |
12. | INVESTMENT PROPERTY |
Group |
Total |
£ |
FAIR VALUE |
At 1 October 2023 |
and 30 September 2024 | 1,487,251 |
NET BOOK VALUE |
At 30 September 2024 | 1,487,251 |
At 30 September 2023 | 1,487,251 |
The directors consider the value of the investment properties to be at an open market value at the balance sheet date. |
LPK Group Limited (Registered number: 14978495) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 September 2024 |
13. | STOCKS |
Group |
30.9.24 | 30.9.23 |
(Unaudited |
£ | £ |
Finished goods | 1,209,031 | 1,323,022 |
14. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
30.9.24 | 30.9.23 | 30.9.24 | 30.9.23 |
(Unaudited) |
£ | £ | £ | £ |
Trade debtors | 3,758,038 | 1,781,081 |
Amounts owed by participating interests | 84,691 | 215,905 | - | - |
Other debtors | 20,957 | 32,608 |
Called up share capital not paid | 2 | - |
Prepayments and accrued income | 110,375 | 110,692 |
3,974,063 | 2,140,286 |
15. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group |
30.9.24 | 30.9.23 |
(Unaudited |
£ | £ |
Trade creditors | 1,923,870 | 1,069,700 |
Amounts owed to participating interests | 28,425 | 58,425 |
Tax | 78,417 | 24,295 |
Social security and other taxes | 40,761 | 27,466 |
VAT | 258,782 | 152,378 |
Other creditors | 67,414 | 88,144 |
Directors' current accounts | 94,936 | 36,174 |
Accruals and deferred income | 628,739 | 632,602 |
3,121,344 | 2,089,184 |
16. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
LPK Group Limited (Registered number: 14978495) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 September 2024 |
Group |
Non-cancellable | operating leases |
30.9.24 | 30.9.23 |
(Unaudited) |
£ | £ |
Within one year | 23,324 | - |
Between one and five years | 27,544 | - |
50,868 | - |
17. | PROVISIONS FOR LIABILITIES |
Group |
30.9.24 | 30.9.23 |
(Unaudited |
£ | £ |
Deferred tax | 349,458 | 354,319 |
Group |
Deferred |
tax |
£ |
Balance at 1 October 2023 | 354,319 |
Credit to Income Statement during year | (4,861 | ) |
Balance at 30 September 2024 | 349,458 |
18. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 30.9.24 | 30.9.23 |
value: | £ | £ |
ordinary | 1 | 106 | 102 |
During the period, the company issued 104 ordinary shares of £1 each. |
LPK Group Limited (Registered number: 14978495) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 September 2024 |
19. | RESERVES |
Group |
Retained | Merger |
earnings | reserves | Totals |
£ | £ | £ |
At 1 October 2023 | - | 6,598,537 | 6,598,537 |
Profit for the year | 253,169 | 253,169 |
At 30 September 2024 | 253,169 | 6,598,537 | 6,851,706 |
20. | PENSION COMMITMENTS |
The total amount charged to Profit & Loss account in respect of retirement benefit contributions was £221,494 (2023: £25,125) |
21. | RELATED PARTY DISCLOSURES |
During the year, a total of key management personnel compensation of £ 720,867 (2023 - £ 359,306 ) was paid. |
During the year, the group made sales of £368,387 to entities in which the directors have a participating interest. |
At the year end, debtors included £98,648 and creditors included £28,425 in respect of entities in which the directors have a participating interest. |
22. | ULTIMATE CONTROLLING PARTY |
The ultimate controlling parties are P. J. Kemp and L. C. Kemp, each of whom owns 50% of the issued share capital of LPK Group Limited. |