REGISTERED NUMBER: |
LINECROSS LIMITED |
STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 JANUARY 2025 |
REGISTERED NUMBER: |
LINECROSS LIMITED |
STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 JANUARY 2025 |
LINECROSS LIMITED (REGISTERED NUMBER: 02523619) |
CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 JANUARY 2025 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 6 |
Report of the Independent Auditors | 8 |
Income Statement | 11 |
Other Comprehensive Income | 12 |
Statement of Financial Position | 13 |
Statement of Changes in Equity | 14 |
Notes to the Financial Statements | 15 |
LINECROSS LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 31 JANUARY 2025 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
14 All Saints Street |
Stamford |
Lincolnshire |
PE9 2PA |
LINECROSS LIMITED (REGISTERED NUMBER: 02523619) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 31 JANUARY 2025 |
The directors present their strategic report for the year ended 31 January 2025. |
The directors aim to present a balanced and comprehensive review of the development and performance of the company during the year and its position at the year end. The review is consistent with the non-complex nature and size of the company and the risks and uncertainties faced. |
REVIEW OF BUSINESS |
The headline results for the year and the three proceeding years are as follows: |
Year to | Year to | Year to | Year to |
31 Jan'25 | 31 Jan'24 | 31 Jan'23 | 31 Jan'22 |
£ | £ | £ | £ |
Revenue | 34,137 | 36,667 | 34,611 | 28,776 |
EBITDA | 3,794 | 4,102 | 3,803 | 2,870 |
Operating profit | 2,544 | 2,792 | 2,620 | 1,792 |
Profit for the year after tax | 1,620 | 1,596 | 1,979 | 1,280 |
The stagnant macro-economic environment resulted in subdued underlying volumes from many of the company's customers during the year. In particular, the UK caravan and motorhome manufacturers made significant adjustments to volumes to realign to a prolonged period of weaker consumer demand. This impact to revenue was partially mitigated by two new long term automotive packages of work which began during the year. The net effect was for revenue from the supply of components to fall by just 3.7% from the prior year. Revenue from engineering services and tooling fell 30% in the year as a result of a delay in a customer commencing a new large program for which the company has been nominated. This work has now commenced and therefore this revenue will recover in the coming year. |
The company's continued investment in new machinery and technology delivered improvements in labour and energy efficiencies which resulted in the gross profit for the year increasing to 15.2% (2024: 14.6%). |
The company invested a further £1.6m in additional machinery and equipment during the year. This brings the total for the last three years to £6.8m and consequently the company has modern, efficient facilities with headroom for additional volumes across a wide range of polymer and polyurethane composite processes. |
The company generated a net cash inflow from operating activities of £3.6m, which despite the capital additions of £1.6m enabled the company to reduce its debt by £1.3m. With shareholders' funds amounting to £13.9m gearing amounted to just 33% at the year end. The company continues to maintain significant financial headroom in order to both protect the company and its creditors from an unforeseen challenge, but also to have the resource to be able to react quickly should an appropriate opportunity arise. |
KEY PERFORMANCE INDICATORS |
The directors monitor the performance of the company through the use of a suite of key performance indicators (KPIs) which are aligned to the strategy of the company. These KPIs encompass all business disciplines and include such items as sales growth, product and process innovation, EBITDA, productivity and margins, cash generation and energy, health and safety and environmental performance. The directors are pleased with the performance achieved in the KPIs during the year. |
FUTURE DEVELOPMENTS |
The company has secured two substantial new prestige automotive nominations which will commence production supply in late 2026 and early 2027 and will provide regular production revenue to the company beyond 2030. Ahead of this there is a significant associated value of engineering and tooling work to complete over the next eighteen months. |
As a consequence of the current low growth in the UK and global economies underlying demand is expected to remain subdued for at least the next six months. The company will continue to maintain a diligent control on costs, productivity and technology improvements and therefore the directors are confident the outlook for the coming year and beyond remains positive. |
LINECROSS LIMITED (REGISTERED NUMBER: 02523619) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 31 JANUARY 2025 |
PRINCIPAL RISKS AND UNCERTAINTIES |
The main risks arising from the company's activities are liquidity risk, credit risk, currency risk, interest rate risk and competitor risk. The board reviews and agrees policies for managing each of these risks and they are summarised below. |
Liquidity risk |
The company seeks to manage financial risk by ensuring sufficient liquidity is available to meet foreseeable needs and to invest cash assets safely and profitably. Short term flexibility is achieved by overdraft and loan facilities. |
Credit risk |
The company seeks to manage its credit risk by dealing with established customers or otherwise checking the credit-worthiness of new customers, establishing clear contractual relationships with those customers and by identifying and addressing any credit issues arising in a timely manner. |
Currency risk |
The company is exposed to transaction foreign exchange risk. The directors seek, whenever possible, to use Sterling as the currency denomination when transacting with foreign suppliers. If considered necessary, transaction exposures including those associated with forecast transactions are hedged when known, principally using forward currency contracts. Whilst the aim is to achieve an economic hedge the company does not adopt an accounting policy of hedge accounting for these financial statements. |
Interest rate risk |
The company finances its operations through a combination of bank borrowings and finance leases. The company's exposure to interest rate fluctuations on its borrowings is managed by the use of both fixed and variable rate facilities. |
Competitor risk |
Competitive pressure is a continuing risk for the company. The company manages this risk by being agile and responsive to customer demands, maintaining strong relationships with customers and the supply chain and continually developing its products and processes through innovation and investment. |
LINECROSS LIMITED (REGISTERED NUMBER: 02523619) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 31 JANUARY 2025 |
SECTION 172(1) STATEMENT |
The directors are bound by their duties under the Companies Act 2006 (the "Act") and understand each duty is in the interest of the overall success of the business. This statement sets out how the directors have regard to the matters set out in Section 172 of the Act whilst undertaking their roles, including but not limited to: |
(a) the likely consequences of any decision in the long term; |
(b) the interests of the company's employees; |
(c) the need to foster the company's business relationships with customers, suppliers, and others; |
(d) the impact of the company's operations on the community and the environment; |
(e) the desirability of the company maintaining a reputation for high standards of business conduct; and |
(f) need to act fairly as between members of the company. |
The directors manage the company for the benefit of all stakeholders. In making decisions, the directors take into account their potential short and long-term implications. The objectives include the long-term sustainable growth and success of the business which will see the preservation and growth of assets whilst building long term relationships with the company's wider stakeholders. The directors maintain strong relationships with key financing partners thereby ensuring both short term working capital and longer term investment and growth requirements are fully funded. |
The directors aim to maintain the strong reputation of the company and to ensure that decisions are made with the highest standard of business conduct in mind. Integrity is a key element of business behaviour throughout the company and the board of directors recognise that acting ethically and with integrity protects the reputation of the , company, shareholders and stakeholders. The company is committed to maintaining the highest standard of ethics and compliance with all relevant laws and regulations. |
The directors work to understand customer requirements and to develop the products and solutions our customers demand through innovation, investment and outstanding customer service. |
The directors are committed to strong mutually beneficial relationships with the company's suppliers. The company seeks to work with suppliers who demonstrate high regard for the impact of their operations on communities and the environment. |
The directors are committed to providing manufacturing practices that aim to minimise waste and achieve the company's carbon objectives. The directors are committed to providing a working environment that promotes our company employees' wellbeing and enables them to perform at their highest ability. The company invests in training, coaching and skills acquisition and aims to be transparent in its approach to pay and benefits. The health and safety of all staff, visitors and contractors is of paramount importance and therefore the directors maintain a comprehensive range of plans, procedures and controls to ensure the highest standards of health and safety are maintained at all times. |
LINECROSS LIMITED (REGISTERED NUMBER: 02523619) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 31 JANUARY 2025 |
CARBON AND ENERGY REPORT |
The company is aware its activities associated with the development, manufacture, distribution and use of its products can have a direct or indirect influence on the environment, in particular carbon emissions contributing to global warming. Decarbonisation is therefore a priority for the company. |
The company has developed a Carbon Management Plan which sets a roadmap for progress over the coming years. This plan was developed following a full carbon footprint calculation using 2022 data as the baseline. The company has set a target to reduce net emissions (excluding materials) to zero tCO2e by 2030. |
As required by the Streamlined Energy and Carbon Reporting legislation, the table below summarises the carbon and energy consumed by the company during the financial year: |
Energy | GHG | Energy | GHG |
Consumption | Emissions | Consumption | Emissions |
(MWh) | (tCO2e) | (MWh) | (tCO2e) |
Source of energy | 2025 | 2025 | 2024 | 2024 |
Combustion of natural gas | 323 | 59 | 283 | 52 |
Combustion of gas oil | 737 | 191 | 587 | 152 |
Combustion of LPG | 119 | 30 | 167 | 38 |
Combustion of fuel in vehicles | 32 | 61 | 223 | 54 |
Refrigerant emissions | - | 13 | - | - |
Scope 1 Total | 1,211 | 354 | 1,260 | 296 |
Purchased electricity | 3,854 | 798 | 4,489 | 930 |
Scope 2 Total | 3,854 | 798 | 4,489 | 930 |
Grand Total | 5,065 | 1,152 | 5,749 | 1,226 |
Intensity ratio (per production kg consumed) |
2.32 (kWh/kg) | 0.53 (kgCO2e/kg) | 2.31 (kWh/kg) | 0.49 (kgCO2e/kg) |
The calculation methodology is based upon templates provided by the British Plastics Federation and all conversion factors and fuel properties have been taken from the UK Government Greenhouse Gas Conversion Factors for Company Reporting database. |
The company achieved reductions of 11.9% in energy consumption and 6% in greenhouse gas emissions compared to the prior year. The fall in production kgs consumed resulted in the intensity ratios remaining broadly unchanged which is considered acceptable as energy efficiencies ordinarily decline as production volumes fall. The company's investment in electrical voltage optimisation equipment and the continued electrification of its vehicle and forklift truck fleet have contributed to the progress. |
ON BEHALF OF THE BOARD: |
LINECROSS LIMITED (REGISTERED NUMBER: 02523619) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 JANUARY 2025 |
The directors present their report with the financial statements of the company for the year ended 31 January 2025. |
PRINCIPAL ACTIVITIES |
The principal activities of the company in the year under review were those of the manufacture of technical plastic thermoformings, injection mouldings and polyurethane components together with associated tooling and engineering services. |
DIVIDENDS |
Interim dividends of 64 pence and 47.5 pence per share were declared and paid on 19 April 2024 and 24 January 2025 respectively. |
The total distribution of dividends for the year ended 31 January 2025 will be £836,250. The directors recommend that no final dividend be paid. |
RESEARCH AND DEVELOPMENT |
It is the board's intention that the company shall remain in the forefront of innovation in its products and markets through a continuing programme of research and development in collaboration with its strategic customers and suppliers. |
FUTURE DEVELOPMENTS |
Information on future developments is presented within the Strategic Report and information on events since the year end is presented within the notes to the financial statements. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 February 2024 to the date of this report. |
EMPLOYEE CONSULTATION |
It is the policy of the company to keep its employees fully informed on all matters relevant to them through regular information and consultation meetings. By doing so, employees' views are considered in decisions that are likely to affect their interests and employees' participation in the company's performance is encouraged. |
DISABLED EMPLOYEES |
Full and fair consideration is always given to applications for employment by disabled persons. In the event of a member of staff becoming disabled, every effort is made to ensure their employment with the company continues and appropriate adjustments and training are provided where necessary. It is the policy of the company that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees. |
ENGAGEMENT WITH SUPPLIERS, CUSTOMERS AND OTHERS |
Details of how the directors have had regard to the need to foster the company's relationships with suppliers, customers and others with whom it has a business relationship can be found in the S172(1) Statement within the Strategic Report. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the 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 of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
LINECROSS LIMITED (REGISTERED NUMBER: 02523619) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 JANUARY 2025 |
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 company'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 company's auditors are aware of that information. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
LINECROSS LIMITED |
Opinion |
We have audited the financial statements of Linecross Limited (the 'company') for the year ended 31 January 2025 which comprise the Income Statement, Other Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
In our opinion the financial statements: |
- | give a true and fair view of the state of the company's affairs as at 31 January 2025 and of its profit for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
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 company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
Conclusions relating to going concern |
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether 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 the audit: |
- | the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the 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, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
LINECROSS LIMITED |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page six, 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 necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so. |
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. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
We have identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial experience, knowledge of the sector, a review of regulatory and legal correspondence and through discussions with directors and other management obtained as part of the work required by auditing standards. We have also discussed with the directors and other management the policies and procedures relating to compliance with laws and regulations. We communicated laws and regulations throughout the team and remained alert to any indications of non-compliance throughout the audit. The potential impact of different laws and regulations varies considerably. |
Firstly, the company is subject to laws and regulations that directly impact the financial statements (for example financial reporting legislation) and we have assessed the extent of compliance with such laws as part of our financial statements audit. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including risk of override of controls) and determined that the principal risks were related to management bias in accounting estimates as well as the risk of inappropriate journal entries to increase reported profitability. Audit procedures performed by the engagement team included the identification and testing of unusual material journal entries and challenging management on key estimates, assumptions and judgements made in the preparation of the financial statements. We carried out substantive tests on accounting estimates, including reviewing the methods and data used by management to make those estimates, reperforming the calculation and reviewing the outcome of current year estimates since the financial reporting date. |
Secondly, the company is subject to other laws and regulations where the consequence for non-compliance could have a material effect on the amounts or disclosures in the financial statements. We identified the following areas as those most likely to have such an effect: Health and safety regulations, employment law and environmental regulations. Our work included a review of any regulatory reporting within the year for any evidence of non-compliance and reading any minutes of management meetings, in addition to an assessment of the company's legal expenses and possible contingencies. Through these procedures, if we became aware of any non-compliance, we considered the impact on the procedures performed on the related financial statement items. |
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. The further removed non-compliance with laws and regulations 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. As with any audit, there is a greater risk of non-detection of irregularities as these may involve collusion, international omissions of the override of internal controls. 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. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
LINECROSS LIMITED |
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 |
14 All Saints Street |
Stamford |
Lincolnshire |
PE9 2PA |
LINECROSS LIMITED (REGISTERED NUMBER: 02523619) |
INCOME STATEMENT |
FOR THE YEAR ENDED 31 JANUARY 2025 |
2025 | 2024 |
Notes | £ | £ | £ | £ |
REVENUE | 3 |
Cost of sales |
GROSS PROFIT |
Distribution costs |
Administrative expenses |
2,659,942 | 2,553,036 |
OPERATING PROFIT | 5 |
Interest receivable and similar income | 6 |
2,555,834 | 2,792,431 |
Interest payable and similar expenses | 7 |
PROFIT BEFORE TAXATION |
Tax on profit | 8 |
PROFIT FOR THE FINANCIAL YEAR |
LINECROSS LIMITED (REGISTERED NUMBER: 02523619) |
OTHER COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 31 JANUARY 2025 |
2025 | 2024 |
Notes | £ | £ |
PROFIT FOR THE YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
LINECROSS LIMITED (REGISTERED NUMBER: 02523619) |
STATEMENT OF FINANCIAL POSITION |
31 JANUARY 2025 |
2025 | 2024 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Property, plant and equipment | 10 |
Investments | 11 |
CURRENT ASSETS |
Inventories | 12 |
Debtors | 13 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 14 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year | 15 | ( |
) | ( |
) |
PROVISIONS FOR LIABILITIES | 19 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 20 |
Revaluation reserve | 21 |
Retained earnings | 21 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
LINECROSS LIMITED (REGISTERED NUMBER: 02523619) |
STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 JANUARY 2025 |
Called up |
share | Retained | Revaluation | Total |
capital | earnings | reserve | equity |
£ | £ | £ | £ |
Balance at 1 February 2023 |
Changes in equity |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - |
Balance at 31 January 2024 |
Changes in equity |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - |
Balance at 31 January 2025 |
LINECROSS LIMITED (REGISTERED NUMBER: 02523619) |
NOTES TO THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 JANUARY 2025 |
1. | STATUTORY INFORMATION |
Linecross Limited is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated. |
Financial Reporting Standard 102 - reduced disclosure exemptions |
The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland": |
• | the requirements of Section 7 Statement of Cash Flows; |
• | the requirements of paragraphs 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c). |
The company is a subsidiary of Linecross Group Limited. Consolidated financial statements of Linecross Group Limited can be obtained from: |
Companies House |
Crown Way |
Cardiff |
CF14 3UZ |
Preparation of consolidated financial statements |
The financial statements contain information about Linecross Limited as an individual company and do not contain consolidated financial information as the parent of a group. The company is exempt under Section 400 of the Companies Act 2006 from the requirements to prepare consolidated financial statements as it and its subsidiary undertaking are included by full consolidation in the consolidated financial statements of its parent, Linecross Group Limited, Station Road, South Luffenham, Oakham, Rutland, LE15 8NG, United Kingdom. |
Critical accounting judgements and key sources of estimation uncertainty |
In the application of the company's accounting policies, management are required to make judgements, estimates and assumptions about the carrying value of assets and liabilities that are not readily apparent from other sources. The estimates and underlying 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. |
The items in the financial statements subject to judgements, estimates and assumptions include: |
i) Long term tooling projects |
The directors estimate the stage of completion of long term tooling projects included in work in progress based on their knowledge of previous similar projects and by comparison to the detailed tooling budgets prepared. |
ii) Overhead absorption rates |
The overhead absorption rate applied to work in progress and finished goods is based on the labour and allowable direct overhead costs for the last three months. The directors consider that three months is appropriate as this is approximately the length of time taken for stock items to be completed and sold. |
LINECROSS LIMITED (REGISTERED NUMBER: 02523619) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 JANUARY 2025 |
2. | ACCOUNTING POLICIES - continued |
Revenue |
Revenue arises from the sales of goods and services. It is stated at the fair value of the consideration receivable, net of value added tax, rebates and discounts. |
Revenue from the sale of goods is recognised when the significant risks and benefits of ownership of the product have transferred to the buyer, which may be upon shipment, completion of the product or the product being ready for delivery, based on specific contract terms. |
Tangible fixed assets |
Plant and equipment assets are held at cost less accumulated depreciation and impairment. |
Depreciation is provided at varying rates between 33% and 6.67% on cost for plant, machinery and equipment and varying rates between 33% and 20% for vehicles in order to write off each asset over its estimated useful life. |
The company has adopted a policy of revaluing freehold property. The revalued amounts equate to the fair value at the date of the revaluation, less any depreciation or impairment losses subsequently accumulated. Revaluations are carried out regularly so the carrying amounts do not materially differ from using the fair value at the statement of financial position date. Any revaluation increase or decrease on freehold property is recognised through other comprehensive income in the revaluation reserve. |
The directors are of the opinion that the residual value of the freehold property is such that depreciation would not be material. |
Investments in subsidiaries |
Investments in subsidiary undertakings are recognised at cost. |
Inventories and work in progress |
Stocks and work in progress are stated at the lower of cost and fair value less costs to complete and sell after making due allowance for slow moving and obsolete items. |
Cost is calculated using the first-in, first-out method and includes all purchase, transport, and handling costs in bringing stocks to their present location and condition. |
Work in progress is valued on the basis of direct cost plus attributable overheads based on normal level of activity. |
The directors have considered the accounting of certain items of work in progress relating to long term contracts. These items have been classified as amounts recoverable on contracts within debtors. This adjustment has no impact on profit. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the 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 statement of financial position date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position 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. |
Research and development |
Expenditure on research and development is written off in the year in which it is incurred. |
LINECROSS LIMITED (REGISTERED NUMBER: 02523619) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 JANUARY 2025 |
2. | ACCOUNTING POLICIES - continued |
Foreign currencies |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the statement of financial position date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result. |
Hire purchase and leasing commitments |
Assets obtained under hire purchase contracts or finance leases are capitalised in the Statement of Financial Position. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leased are depreciated over their estimated useful lives or the lease term, whichever is the shorter. |
The interest element of these obligations is charged to the Income Statement over the relevant period. The capital element of the future payments is treated as a liability. |
Pension costs and other post-retirement benefits |
The group contributes to employees' personal pension plans, which are money purchase schemes. Contributions are charged to the Income Statement as incurred. |
Financial instruments |
The company has adopted the Sections 11 and 12 of FRS 102 in respect of financial instruments. |
Basic financial assets, including trade and other debtors and cash and bank balances are initially recognised at transaction price, 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. |
At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. 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. |
Basic financial liabilities, including trade and other 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 receipts discounted at a market rate of interest. |
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. Accounts 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. |
Amounts recoverable on contracts |
Profit on contracting activities is taken as work progresses. The profit included is calculated on a reasonable basis to reflect the value of work carried out by the year end and is stated at the lower of the margin earned to date and that forecast at completion, taking account of agreed claims. |
Provision is made for any foreseeable losses where appropriate. |
The amount by which recorded revenue is in excess of payments on account is disclosed as amounts recoverable on contracts. |
LINECROSS LIMITED (REGISTERED NUMBER: 02523619) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 JANUARY 2025 |
3. | REVENUE |
The revenue and profit before taxation are attributable to the principal activities of the company. |
An analysis of revenue by geographical market is given below: |
2025 | 2024 |
£ | £ |
United Kingdom |
Europe |
Rest of the world | 653,650 | 592,213 |
4. | EMPLOYEES AND DIRECTORS |
2025 | 2024 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
The average number of employees during the year was as follows: |
2025 | 2024 |
Production staff | 234 | 247 |
Sales and administrative staff | 59 | 57 |
2025 | 2024 |
£ | £ |
Directors' remuneration |
Directors' pension contributions to money purchase schemes |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes |
Information regarding the highest paid director is as follows: |
2025 | 2024 |
£ | £ |
Emoluments etc |
Pension contributions to money purchase schemes |
LINECROSS LIMITED (REGISTERED NUMBER: 02523619) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 JANUARY 2025 |
5. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
2025 | 2024 |
£ | £ |
Depreciation - owned assets |
Depreciation - assets on hire purchase contracts |
Profit on disposal of fixed assets | ( |
) | ( |
) |
Auditors' remuneration |
Foreign exchange differences | ( |
) | ( |
) |
Operating lease rentals |
6. | INTEREST RECEIVABLE AND SIMILAR INCOME |
2025 | 2024 |
£ | £ |
Interest from taxation |
7. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2025 | 2024 |
£ | £ |
Hire purchase interest |
Bank and loan interest |
8. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2025 | 2024 |
£ | £ |
Current tax: |
UK corporation tax |
Adjustment for previous period | (6,753 | ) | 21,238 |
Total current tax |
Deferred tax |
Tax on profit |
LINECROSS LIMITED (REGISTERED NUMBER: 02523619) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 JANUARY 2025 |
8. | TAXATION - continued |
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: |
2025 | 2024 |
£ | £ |
Profit before tax |
Profit multiplied by the standard rate of corporation tax in the UK of |
Effects of: |
Expenses not deductible for tax purposes |
Income not taxable for tax purposes | ( |
) | ( |
) |
Capital allowances in excess of depreciation | ( |
) | ( |
) |
Adjustments to tax charge in respect of previous periods | ( |
) |
Research and development enhanced deduction | (15,823 | ) | (6,706 | ) |
Change in rate of deferred tax | - | 290,605 |
Interest received | (2,961 | ) | - |
Total tax charge | 503,890 | 760,869 |
9. | DIVIDENDS |
2025 | 2024 |
£ | £ |
Ordinary shares of £1 each |
Interim |
10. | PROPERTY, PLANT AND EQUIPMENT |
Vehicles |
Freehold | Plant and | and |
property | machinery | equipment | Totals |
£ | £ | £ | £ |
COST OR VALUATION |
At 1 February 2024 |
Additions |
Disposals | ( |
) | ( |
) | ( |
) |
At 31 January 2025 |
DEPRECIATION |
At 1 February 2024 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) | ( |
) |
At 31 January 2025 |
NET BOOK VALUE |
At 31 January 2025 |
At 31 January 2024 |
Included within the net book value is £3,586,167 (2024 - £3,939,151) relating to assets held under finance leases and hire purchase agreements. |
LINECROSS LIMITED (REGISTERED NUMBER: 02523619) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 JANUARY 2025 |
10. | PROPERTY, PLANT AND EQUIPMENT - continued |
Cost or valuation at 31 January 2025 is represented by: |
Vehicles |
Freehold | Plant and | and |
property | machinery | equipment | Totals |
£ | £ | £ | £ |
Valuation in 2023 | 650,044 | - | - | 650,044 |
Cost | 4,056,446 | 16,508,452 | 2,596,263 | 23,161,161 |
4,706,490 | 16,508,452 | 2,596,263 | 23,811,205 |
If freehold property had not been revalued it would have been included at the following historical cost: |
2025 | 2024 |
£ | £ |
Cost | 4,056,446 | 4,056,446 |
Aggregate depreciation | 770,835 | 689,121 |
Freehold property was valued on an open market basis on 19 January 2023 by BNP Paribas Real Estate . |
Having assessed local market data, the directors do not consider that the valuation of freehold property would have materially changed between 19 January 2023 and 31 January 2025. In accordance with the RICS valuation standards, the valuations were prepared having regard to the market based evidence for similar properties in the local area, subject to occupational leases where relevant. |
11. | FIXED ASSET INVESTMENTS |
Shares in |
group |
undertakings |
£ |
COST OR VALUATION |
At 1 February 2024 |
and 31 January 2025 |
NET BOOK VALUE |
At 31 January 2025 |
At 31 January 2024 |
Cost or valuation at 31 January 2025 is represented by: |
Shares in |
group |
undertakings |
£ |
Cost | 20,000 |
The company's investments at the Statement of Financial Position date in the share capital of companies include the following: |
Registered office: Station Road, South Luffenham, Oakham, Rutland, LE15 8NG |
Nature of business: |
% |
Class of shares: | holding |
LINECROSS LIMITED (REGISTERED NUMBER: 02523619) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 JANUARY 2025 |
12. | INVENTORIES |
2025 | 2024 |
£ | £ |
Raw materials |
Work-in-progress |
Finished goods |
Inventories are stated after provisions for impairment of £140,707 (2024 - £199,449). |
The directors are of the opinion that there is no material difference between the purchased cost of stocks shown above and their replacement cost. |
13. | DEBTORS |
2025 | 2024 |
£ | £ |
Amounts falling due within one year: |
Trade debtors |
Corporation tax |
Prepayments and accrued income |
Amounts falling due after more than one year: |
Amounts owed by group undertakings |
Aggregate amounts |
Trade debtors are subject to invoice financing. Where applicable, funds advanced for invoice financing are recorded within creditors. |
14. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2025 | 2024 |
£ | £ |
Bank loans (see note 16) |
Invoice financing facility (see note 16) |
Hire purchase contracts (see note 17) |
Trade creditors |
Amounts owed to group undertakings |
Corporation tax |
Social security and other taxes |
Directors' loan accounts | 562,500 | 452,000 |
Accruals and deferred income |
15. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
2025 | 2024 |
£ | £ |
Bank loans (see note 16) |
Hire purchase contracts (see note 17) |
LINECROSS LIMITED (REGISTERED NUMBER: 02523619) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 JANUARY 2025 |
16. | LOANS |
An analysis of the maturity of loans is given below: |
2025 | 2024 |
£ | £ |
Amounts falling due within one year or on demand: |
Bank loans |
Invoice financing facility |
Amounts falling due between one and two years: |
Bank loans - 1-2 years |
Amounts falling due between two and five years: |
Bank loans - 2-5 years |
Bank loans are repayable in instalments. Interest is charged at 1.55% over the Bank of England base rate. |
17. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Hire purchase contracts |
2025 | 2024 |
£ | £ |
Net obligations repayable: |
Within one year |
Between one and five years |
Non-cancellable operating | leases |
2025 | 2024 |
£ | £ |
Within one year |
Between one and five years |
LINECROSS LIMITED (REGISTERED NUMBER: 02523619) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 JANUARY 2025 |
18. | SECURED DEBTS |
The following secured debts are included within creditors: |
2025 | 2024 |
£ | £ |
Bank loans |
Hire purchase contracts | 1,758,264 | 2,738,901 |
Invoice financing facility | 1,141,617 | 1,290,808 |
Bank loans are secured by a fixed and floating charge over the company's assets and a cross guarantee between Linecross Limited and its ultimate parent. |
Hire purchase contracts are secured against the assets to which they relate. |
The company utilises an invoice discounting facility which is secured over the debts to which it relates. |
19. | PROVISIONS FOR LIABILITIES |
2025 | 2024 |
£ | £ |
Deferred tax |
Accelerated capital allowances |
Deferred |
tax |
£ |
Balance at 1 February 2024 |
Charge to Income Statement during year |
Balance at 31 January 2025 |
The reversal of deferred taxation timing differences is not expected to be significant in the forthcoming period. |
20. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2025 | 2024 |
value: | £ | £ |
Ordinary | £1 | 750,000 | 750,000 |
21. | RESERVES |
Retained | Revaluation |
earnings | reserve | Totals |
£ | £ | £ |
At 1 February 2024 | 12,356,371 |
Profit for the year |
Dividends | ( |
) | ( |
) |
At 31 January 2025 | 13,140,114 |
Retained earnings |
The retained earnings reserve represents cumulative profits and losses net of dividends and other adjustments. |
Revaluation reserve |
The aggregate surplus on re-measurement of freehold property, net of associated deferred tax, is transferred to a separate non-distributable revaluation reserve in order to assist with the identification of profits available for distribution. |
LINECROSS LIMITED (REGISTERED NUMBER: 02523619) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 JANUARY 2025 |
22. | CONTINGENT LIABILITIES |
The company is party to a cross guarantee with it's fellow group company Linecross Group Limited, to secure the bank borrowings of the group. |
23. | CAPITAL COMMITMENTS |
2025 | 2024 |
£ | £ |
Contracted but not provided for in the |
financial statements |
24. | RELATED PARTY DISCLOSURES |
At the reporting date loans totalling £562,500 (2024 - £452,000) were owed by the company to the directors. These loans are unsecured and repayable on demand. Interest is charged daily at a rate of 2.5% above the Bank of England base rate. During the year interest totalling £39,961 (2024 - £nil) was charged. Interest was waived in the prior year. |
During the year, a director purchased fixed assets at market value from the company for £34,500 (2024 - £nil). |
During the year, a total of key management personnel compensation of £ |
25. | ULTIMATE CONTROLLING PARTY |
The immediate and ultimate parent undertaking is Linecross Group Limited, a company incorporated in England and Wales. Consolidated financial statements, which includes this company's results, are available to the public from Companies House. |
There is no ultimate controlling party. |