REGISTERED NUMBER: 13869957 (England and Wales) |
LEW GROUP HOLDINGS LIMITED |
GROUP STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 AUGUST 2024 |
REGISTERED NUMBER: 13869957 (England and Wales) |
LEW GROUP HOLDINGS LIMITED |
GROUP STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 AUGUST 2024 |
LEW GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 13869957) |
CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 AUGUST 2024 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 6 |
Report of the Independent Auditors | 7 |
Consolidated Income Statement | 11 |
Consolidated Other Comprehensive Income | 12 |
Consolidated Balance Sheet | 13 |
Company Balance Sheet | 14 |
Consolidated Statement of Changes in Equity | 15 |
Company Statement of Changes in Equity | 16 |
Consolidated Cash Flow Statement | 17 |
Notes to the Consolidated Cash Flow Statement | 18 |
Notes to the Consolidated Financial Statements | 19 |
LEW GROUP HOLDINGS LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 31 AUGUST 2024 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Accountant & Statutory Auditor |
Chancery House |
30 St Johns Road |
Woking |
Surrey |
GU21 7SA |
LEW GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 13869957) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 31 AUGUST 2024 |
The directors present their strategic report of the company and the group for the year ended 31 August 2024. |
REVIEW OF BUSINESS |
The following analysis is based upon the current year trade for the subsidiary companies. |
Lincs. Electrical Wholesalers Limited and J J H Commercial Properties Limited were acquired by LEW Group Holdings Limited on the 1/12/2022, and thus only 9 months of trade are represented within the comparatives recorded in the consolidated Income Statement. |
The directors are satisfied with the results for the year given the continued economic challenges that have been placed on the group. |
FINANCIAL KEY PERFORMANCE INDICATORS |
The directors consider the following to be the financial key performance indicators for the group: |
2024 | 2023 |
Year on year sales growth in Lincs. | 8.2% | 7.5% |
Gross profit margin in Lincs. | 29.3% | 28.3% |
Revenue grew year on year by 8.2% in Lincs. Electrical Wholesalers Limited, as trading remained broadly in line with expectations. Gross margin increased slightly and remained acceptable given the continued pricing pressures faced. |
CREDITOR PAYMENT POLICY AND PRACTICE |
It is the group's policy that payments to suppliers are made in accordance with those terms and conditions agreed between the group and its suppliers, provided that all trading terms and conditions have been complied with. At the year end, creditor days total 67 (2023: 63). |
DEVELOPMENT AND PERFORMANCE |
Whilst trading conditions remain challenging given the prolonged difficult economic environment the group remains committed to opening additional trading branches in the future. The directors remain optimistic regarding future trading performance. |
During the prior year, Lincs. Electrical Wholesalers Limited acquired two independent single branch wholesalers. Both sites were subsequently rebranded in line with all other existing sites. |
Other key developments have been discussed below. |
LEW Academy: Cultivating Talent and Elevating Employee Experience |
In alignment with our commitment to fostering an exceptional employee experience, we are proud to introduce the LEW Academy - a transformative initiative dedicated to in-house training and development. The LEW Academy serves as a cornerstone for nurturing growth, enhancing skills, and creating meaningful career pathways for all members of the LEW team. |
The Academy is designed to deliver a comprehensive suite of learning and development opportunities, including: |
- Apprenticeship Annual Recruitment Programme: Attracting and nurturing the next generation of talent, providing robust training and mentorship to build solid foundations for successful careers. |
- Emerging Talent Programme: Empowering high-potential individuals with targeted support to accelerate their development and prepare them for future leadership roles. |
- General Learning and Development Programmes: Offering accessible upskilling opportunities for employees at all levels, ensuring continuous growth and alignment with evolving industry demands. |
By investing in the professional growth of our people, the LEW Academy reinforces our belief that the success of our organization is built on the passion, innovation, and expertise of our team. Together, we aim to create a workplace where everyone is inspired to reach their full potential and contribute to our shared success. |
LEW GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 13869957) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 31 AUGUST 2024 |
New Head Office: A New Era of Growth and Innovation |
August 2024 marked the successful completion of a transformative three-year project to relocate and modernize our Head Office. Staying true to our roots in the historic market town of Gainsborough, this move ensures the continued employment of our dedicated colleagues while positioning the group for future growth and innovation. |
Our purpose-built, two-story facility offers a total workspace of 13,000 sq. ft., thoughtfully designed to meet the evolving needs of our business. Key features include: |
- Collaborative Workspaces: Enabling seamless teamwork and fostering innovation across departments. |
- Well-Being Areas: Dedicated spaces to promote the health, comfort, and productivity of our employees. |
- Scalable Capacity: Designed with a 20% expansion capability to accommodate future workforce growth. |
This milestone reflects our commitment to providing a dynamic, supportive environment that drives both employee satisfaction and operational excellence. |
New Gainsborough Branch: Strengthening Local Presence |
Building on our strategic vision, we are pleased to announce plans to relocate the Gainsborough branch to our new Head Office site. Approved by West Lindsey District Council, the project will include the construction of a 5,000 sq. ft. unit, enabling us to enhance operational efficiencies and consolidate our presence in the area. |
Key project milestones: |
- Construction Start: March 2025. |
- Operational Launch: September 2025. |
This investment underlines our dedication to supporting local communities, streamlining operations, and providing a foundation for continued success in the years to come. |
LEW Lighting Solutions: Illuminating the Future |
In 2025, we will launch LEW Lighting Solutions, a new department dedicated to helping our existing and new customers achieve innovative, energy-efficient, and visually appealing lighting designs for their projects. |
Under the leadership of an industry veteran with extensive experience, LEW Lighting Solutions has assembled a talented team poised to bring this concept to market. The department's mission is to deliver: |
- Aesthetically Pleasing Designs: Creating visually impactful lighting solutions tailored to each customer's unique needs. |
- Energy Efficiency: Prioritising sustainable, cost-effective lighting options for modern projects. |
- Enhanced Functionality: Ensuring that designs not only look great but also meet the highest standards of practicality and performance. |
This new offering will add significant value to our branch network by expanding our portfolio and further enhancing the award-winning customer experience that sets LEW apart. By integrating cutting-edge lighting solutions with exceptional service, LEW Lighting Solutions represents a key step in our strategic growth plans for the future. |
PRINCIPAL RISKS AND UNCERTAINTIES |
The directors consider the following to be the principal risks and uncertainties that could affect the group: |
- Significant external events that reduce demand for products, including the current cost of living crisis; |
- Disruption in the product supply chain and product price increases; |
- Aggressive product pricing by competitors; |
- Recruitment. |
The reputation of the group has grown over many years of trading and the company consider themselves to be in a strong financial and market position to deal with the risks outlined above. |
LEW GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 13869957) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 31 AUGUST 2024 |
SECTION 172(1) STATEMENT |
The directors are aware of their duties under s.172 of the Companies Act 2006 to act in the way which they consider, in good faith, would be most likely to promote the success of the group for the benefit of its shareholders. The directors consider it crucial that the group maintains a reputation for high standards of business conduct. The directors are responsible for setting, monitoring and upholding cultures, values, standards, ethics, brand and reputation of the group. Management drives the embedding of the desired culture throughout the organisation. |
ENVIRONMENT AND SUSTAINABILITY |
The group continues to improve their sustainable approach to business, maintaining their drive to positively impact the environment. |
Our Grimsby and Doncaster sites continue to benefit from having Solar Panels installed. |
We now have 12 EVs and 19 PHEVs on our company vehicle fleet, and these continue to be charged on site via our electric chargers. More EVs are being considered as our existing vehicles come to the end of their current lease agreements. |
As part of our commitment to sustainability, the Board recently approved the installation of an 81kW Solar PV system at our new Head Office. This state-of-the-art system will provide a renewable and sustainable source of electricity, working in tandem with the mains supply to reduce our carbon footprint and enhance energy efficiency. |
In addition our strategic waste recycling approach has prevented 11 tonnes of waste going to landfill and 6.6 tonnes of CO2 from being generated, by continuing to use an environmentally conscious shredding company. We continue to recycle both paper and cardboard as a business and all of our LED lamps are recycled is a safe and controlled manner through our waste providers. |
During 2024 we partnered with a new strategic provider to manage waste recycling across our entire business. This collaboration offers advanced insights and data-driven solutions, enabling us to prevent unnecessary waste from ending up in landfills. As a result of this initiative, over 97% of our waste is now successfully recycled, underscoring our dedication to environmental responsibility and operational sustainability. |
EMPLOYEE INVOLVEMENT AND EQUAL OPPORTUNITY |
All team members undergo a continuous training programme, relevant to their role, to ensure the safety of all customers, suppliers and employees. The group is committed to non-discriminatory recruitment procedures and practices and all job offers are based on merit taking into account aptitude and capability to carry out the roles as defined in the job specification. |
DISABLED EMPLOYEES |
The group gives full consideration to applications for employment from disabled persons where the candidate's particular aptitudes and abilities are consistent with adequately meeting the requirements of the job. Opportunities are available to disabled employees for training, career development and promotion. |
Where existing employees become disabled, it is the group's policy to provide continuing employment wherever practicable in the same or an alternative position and to provide appropriate training to achieve this aim. |
ENERGY AND CARBON REPORT |
Commitment |
We are committed to reducing the emissions by employee and by turnover and are actively taking steps to do this including installing solar panels, introducing hybrid/fully electric vehicles and managing energy consumption through control measures. During the year, a working group within the business was set up, which is dedicated to finding ways to help reduce our environmental impact. We also made a commitment to achieve a minimum 5% reduction in the measured market-based Scope 1 and 2 carbon footprint emissions year on year. |
LEW GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 13869957) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 31 AUGUST 2024 |
Methodology |
The methodology adopted to calculate our energy consumption and emissions is the GHG Protocol Corporate Accounting and Reporting Standard, Planet Mark Certification Scheme. The scope of our reporting covers our 19 sites across England which include our administrative headquarters and the branches. |
The annual quantity of emissions arising from different sources are as follows. These are the results reported by the main trading subsidiary Lincs. Electrical Wholesalers Limited. |
2024 | 2023 |
Energy consumption | kWh | kWh |
Electricity purchased | 532,846 | 576,668 |
Natural Gas | 24,638 | 4,054 |
Combustion of fuel for transport purposes | 1,683,247 | 1 ,551,720 |
Business travel | 257,467 | 170,146 |
2024 | 2023 |
Tonnes of CO2e | Tonnes of CO2e |
Emissions of CO2 |
Scope 1 - direct emissions |
Gas Combustion | 4.5 | 0.7 |
Combustion of fuel for transport purposes - owned | 448.6 | 368.8 |
Scope 2 - indirect emissions |
Electricity purchased | 110.3 | 119.4 |
Combustion of fuel for transport purposes - owned | 6.9 | * |
Scope 3 - indirect emissions |
Transport and distribution losses | 9.3 | * |
Emissions from disposal and transportation of waste | 1.8 | * |
Emissions from water supply and water treatment | 0.4 | * |
Combustion of fuel for transport purposes - owned | 0.6 | * |
Business travel including employee-owned vehicles where company is responsible for purchasing the fuel or rental cars |
71.6 |
42 |
Procurement : Paper - primary content | 3.6 | * |
Total gross emissions | 657.6 | 530.9 |
Intensity ratio |
Per employee |
Per million pound of turnover | 3.5 | 3 |
11.9 | 10.2 |
* The 2023 figures do not include these * metrics - our data management processes were updated to include these figures in the 2024 report. |
Energy efficiency action taken |
We have been working on migrating our fleet of company cars, which used to be a fully diesel fleet, to a mixture of hybrid, plug-in hybrid and fully electric vehicles. The latest policy we worked on will increase the amount of fully EV vehicles so that by the end of 2026, 75% of the car fleet will be fully electric. The aim following this is to bring that number up to 100% of company cars being full EV by 2028. Furthermore, are looking at the potential for putting some electric vans on to our fleet, as some sites do a lot of small, local deliveries and an electric van could be the solution. |
ON BEHALF OF THE BOARD: |
LEW GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 13869957) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 AUGUST 2024 |
The directors present their report with the financial statements of the company and the group for the year ended 31 August 2024. |
PRINCIPAL ACTIVITY |
The principal activity of the group in the year under review was that of electrical equipment wholesalers. The principal activity of the company was that of holding the investment in its subsidiary undertakings. |
DIVIDENDS |
The total distribution of dividends for the year ended 31 August 2024 will be £293,400 (2023: £145,800). |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 September 2023 to the date of this report. |
FUTURE DEVELOPMENTS |
While trading conditions remain tough given the prolonged difficult economic environment, the group remains committed to opening additional trading branches in the future. The directors remain cautiously optimistic regarding future trading performance. |
DISCLOSURE IN THE STRATEGIC REPORT |
Information regarding business performance, risk and KPIs is reported in the Strategic Report. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
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; |
- | 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 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 ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
LEW GROUP HOLDINGS LIMITED |
Opinion |
We have audited the financial statements of LEW Group Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 August 2024 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, 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 group's and of the parent company affairs as at 31 August 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. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Group 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 Group 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 Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
LEW GROUP HOLDINGS LIMITED |
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 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 group's and 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 group or the parent company or to cease operations, or have no realistic alternative but to do so. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
LEW GROUP HOLDINGS 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. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
Objectives |
The objectives of our audit in respect of 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 to those assessed risks; and |
- To respond appropriately to instances of fraud or suspected fraud identified during the audit. |
However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the company and the group. |
Audit approach |
Our approach was as follows: |
- We obtained an understanding of the legal and regulatory requirements applicable to the Company and the group and considered that the most significant are the Consumer Rights Act, the Consumer Protection (Distance Selling) Regulations, the Companies Act 2006, FRS 102, and UK taxation legislation. |
- We obtained an understanding of how the Company and the group complies with these requirements by discussions with management and those charged with governance, as well a review of relevant correspondence and certifications. |
- We assessed the risk of material misstatement of the financial statements and how it might occur (including the risk of material misstatement due to fraud), by holding discussions with management and those charged with governance. |
- We used our knowledge of the Company and the group and the industry in which it operates to determine if management's explanations were consistent with our own conclusions. |
- Based on our understanding developed from the above, we designed specific appropriate audit procedures to identify instances of non-compliance with the key laws and regulations which may result in potential fraud. This included making enquiries of management and those charged with governance, investigating unusual or unexpected relationships or movements in figures disclosed in the accounts and remaining alert for any transactions that appeared to be outside the normal course of business. |
- Furthermore, as required by auditing standards, and taking into account our overall knowledge of the control environment, we have performed procedures to address the risks of management override of controls and the risk of fraudulent revenue recognition. Procedures such as a review of journal entries and assessing estimates for management bias have enabled us to conclude in this area. |
No instances of fraud, non-compliance or suspected non-compliance with laws and regulations were identified from the above procedures. |
As part of an audit in accordance with ISAs (UK) we exercise professional judgement and maintain professional scepticism throughout the audit. We also: |
- Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. |
- Obtain an understanding of internal control environment relevant to the audit, in order to design audit procedures that are appropriate in the circumstances, but not for the purposes of expressing an opinion on the effectiveness of the Company's and the group's internal control. |
- Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors. |
- Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's and the group's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may |
cause the Company and the group to cease to continue as a going concern. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
LEW GROUP HOLDINGS LIMITED |
- Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. |
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. |
Context of the ability of the audit to detect fraud or breaches of law or regulation |
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 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. |
In addition, as with any audit, there remains a risk of non-detection of fraud, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. Our audit procedures are designed to detect material misstatement. We are not responsible for preventing non-compliance or fraud 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 |
Chartered Accountant & Statutory Auditor |
Chancery House |
30 St Johns Road |
Woking |
Surrey |
GU21 7SA |
LEW GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 13869957) |
CONSOLIDATED |
INCOME STATEMENT |
FOR THE YEAR ENDED 31 AUGUST 2024 |
2024 | 2023 |
Notes | £ | £ |
TURNOVER | 55,229,706 | 36,761,087 |
Cost of sales | (39,014,164 | ) | (25,856,424 | ) |
GROSS PROFIT | 16,215,542 | 10,904,663 |
Distribution costs | (288,914 | ) | (200,761 | ) |
Administrative expenses | (13,348,456 | ) | (9,050,897 | ) |
2,578,172 | 1,653,005 |
Gain/loss on revaluation of investment property | - | 192,451 |
OPERATING PROFIT | 5 | 2,578,172 | 1,845,456 |
Interest receivable and similar income | 40,213 | 7,788 |
PROFIT BEFORE TAXATION | 2,618,385 | 1,853,244 |
Tax on profit | 6 | (815,931 | ) | (401,221 | ) |
PROFIT FOR THE FINANCIAL YEAR |
Profit attributable to: |
Owners of the parent | 1,802,454 | 1,452,023 |
LEW GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 13869957) |
CONSOLIDATED |
OTHER COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 31 AUGUST 2024 |
2024 | 2023 |
Notes | £ | £ |
PROFIT FOR THE YEAR | 1,802,454 | 1,452,023 |
OTHER COMPREHENSIVE INCOME |
Revaluation of property | - | 330,446 |
Deferred tax on revaluation | - | (30,500 | ) |
Negative goodwill to fair value reserve | - | 1,695,116 |
Income tax relating to components of other comprehensive income |
- |
- |
OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX |
- |
1,995,062 |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR | 1,802,454 | 3,447,085 |
Total comprehensive income attributable to: |
Owners of the parent | 1,802,454 | 3,447,085 |
LEW GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 13869957) |
CONSOLIDATED BALANCE SHEET |
31 AUGUST 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 9 | 1,215,612 | 1,246,738 |
Tangible assets | 10 | 4,742,867 | 3,140,236 |
Investments | 11 | - | - |
Investment property | 12 | 817,500 | 817,500 |
6,775,979 | 5,204,474 |
CURRENT ASSETS |
Stocks | 13 | 5,404,644 | 5,605,111 |
Debtors | 14 | 14,953,378 | 12,922,041 |
Cash at bank and in hand | 531,946 | 1,370,528 |
20,889,968 | 19,897,680 |
CREDITORS |
Amounts falling due within one year | 15 | 12,459,004 | 11,599,792 |
NET CURRENT ASSETS | 8,430,964 | 8,297,888 |
TOTAL ASSETS LESS CURRENT LIABILITIES | 15,206,943 | 13,502,362 |
PROVISIONS FOR LIABILITIES | 18 | 746,604 | 551,077 |
NET ASSETS | 14,460,339 | 12,951,285 |
CAPITAL AND RESERVES |
Called up share capital | 19 | 1,800 | 1,800 |
Share premium | 20 | 9,648,200 | 9,648,200 |
Revaluation reserve | 20 | 299,946 | 299,946 |
Fair value reserve | 20 | 1,695,116 | 1,695,116 |
Retained earnings | 20 | 2,815,277 | 1,306,223 |
SHAREHOLDERS' FUNDS | 14,460,339 | 12,951,285 |
The financial statements were approved by the Board of Directors and authorised for issue on 9 April 2025 and were signed on its behalf by: |
J P Ring - Director |
LEW GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 13869957) |
COMPANY BALANCE SHEET |
31 AUGUST 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 9 |
Tangible assets | 10 |
Investments | 11 |
Investment property | 12 |
CURRENT ASSETS |
Debtors | 14 |
Cash at bank |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CAPITAL AND RESERVES |
Called up share capital | 19 |
Share premium | 20 |
Retained earnings | 20 |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | 1,050,000 | 1,560,000 |
The financial statements were approved by the Board of Directors and authorised for issue on |
LEW GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 13869957) |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 AUGUST 2024 |
Called up |
share | Retained | Share |
capital | earnings | premium |
£ | £ | £ |
Balance at 1 September 2022 | 1 | - | - |
Changes in equity |
Issue of share capital | 1,799 | - | 9,648,200 |
Dividends | - | (145,800 | ) | - |
Total comprehensive income | - | 1,452,023 | - |
Balance at 31 August 2023 | 1,800 | 1,306,223 | 9,648,200 |
Changes in equity |
Dividends | - | (293,400 | ) | - |
Total comprehensive income | - | 1,802,454 | - |
Balance at 31 August 2024 | 1,800 | 2,815,277 | 9,648,200 |
Fair |
Revaluation | value | Total |
reserve | reserve | equity |
£ | £ | £ |
Balance at 1 September 2022 | - | - | 1 |
Changes in equity |
Issue of share capital | - | - | 9,649,999 |
Dividends | - | - | (145,800 | ) |
Total comprehensive income | 299,946 | 1,695,116 | 3,447,085 |
Balance at 31 August 2023 | 299,946 | 1,695,116 | 12,951,285 |
Changes in equity |
Dividends | - | - | (293,400 | ) |
Total comprehensive income | - | - | 1,802,454 |
Balance at 31 August 2024 | 299,946 | 1,695,116 | 14,460,339 |
LEW GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 13869957) |
COMPANY STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 AUGUST 2024 |
Called up |
share | Retained | Share | Total |
capital | earnings | premium | equity |
£ | £ | £ | £ |
Balance at 1 September 2022 |
Changes in equity |
Issue of share capital | - |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - | - |
Balance at 31 August 2023 |
Changes in equity |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - | - |
Balance at 31 August 2024 |
LEW GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 13869957) |
CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 AUGUST 2024 |
2024 | 2023 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 2,185,856 | 95,492 |
Tax paid | (522,567 | ) | (301,044 | ) |
Net cash from operating activities | 1,663,289 | (205,552 | ) |
Cash flows from investing activities |
Purchase of intangible fixed assets | (103,324 | ) | (492,298 | ) |
Purchase of tangible fixed assets | (2,178,360 | ) | (556,964 | ) |
Purchase of fixed asset investments | - | (437,095 | ) |
Sale of tangible fixed assets | 33,000 | 22,583 |
Cash acquired on consolidation | - | 3,177,865 |
Interest received | 40,213 | 7,788 |
Net cash from investing activities | (2,208,471 | ) | 1,721,879 |
Cash flows from financing activities |
Equity dividends paid | (293,400 | ) | (145,800 | ) |
Net cash from financing activities | (293,400 | ) | (145,800 | ) |
(Decrease)/increase in cash and cash equivalents | (838,582 | ) | 1,370,527 |
Cash and cash equivalents at beginning of year | 2 | 1,370,528 | 1 |
Cash and cash equivalents at end of year | 2 | 531,946 | 1,370,528 |
LEW GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 13869957) |
NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 AUGUST 2024 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2024 | 2023 |
£ | £ |
Profit before taxation | 2,618,385 | 1,853,244 |
Depreciation charges | 693,801 | 396,435 |
Profit on disposal of fixed assets | (16,622 | ) | (22,583 | ) |
Gain on revaluation of fixed assets | - | (192,451 | ) |
Finance income | (40,213 | ) | (7,788 | ) |
3,255,351 | 2,026,857 |
Decrease in stocks | 200,467 | 916,364 |
(Increase)/decrease in trade and other debtors | (2,031,337 | ) | 39,376 |
Increase/(decrease) in trade and other creditors | 761,375 | (2,887,105 | ) |
Cash generated from operations | 2,185,856 | 95,492 |
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 31 August 2024 |
31.8.24 | 1.9.23 |
£ | £ |
Cash and cash equivalents | 531,946 | 1,370,528 |
Year ended 31 August 2023 |
31.8.23 | 1.9.22 |
£ | £ |
Cash and cash equivalents | 1,370,528 | 1 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1.9.23 | Cash flow | At 31.8.24 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 1,370,528 | (838,582 | ) | 531,946 |
1,370,528 | (838,582 | ) | 531,946 |
Total | 1,370,528 | (838,582 | ) | 531,946 |
LEW GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 13869957) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 AUGUST 2024 |
1. | STATUTORY INFORMATION |
LEW Group Holdings Limited is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | STATEMENT OF COMPLIANCE |
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. |
3. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
The group financial statements consolidate the financial statements of LEW Group Holdings Limited and all its subsidiary undertakings drawn up to 31 August each year. |
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated. |
The preparation of financial statements requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Group accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements are disclosed in a separate accounting policy within these financial statements. |
Going concern |
After considering the group's budgets and expected trading activity for the coming 12 to 24 months, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. The group therefore continues to adopt the going concern basis in preparing its financial statements. |
Basis of consolidation |
The consolidated financial statements incorporate the financial statements of the Company and its subsidiaries as if they formed a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full. |
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Statement of Financial Position, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. |
The results of acquired operations are included in the Consolidated Statement of Income and Expense and in Retained Earnings from the date on which control is obtained. They are deconsolidated from the date control ceases. |
For acquisitions where the cost of the acquisition is in excess of the fair value of the assets and liabilities acquired, the balance is shown as goodwill. |
For acquisitions where the fair value of assets and liabilities acquired is in excess of the cost of the acquisition, the balance has been shown within the Fair Value Reserve on the Balance Sheet, rather than as negative goodwill, in order to show a true and fair view. This is because these transactions relate to a group restructure, rather than external acquisitions from third parties. |
Related party exemption |
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements. |
LEW GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 13869957) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 AUGUST 2024 |
3. | ACCOUNTING POLICIES - continued |
Critical accounting judgements and key sources of estimation uncertainty |
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for the assets and liabilities as at the balance sheet date and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates. |
The estimates and assumptions made by management in the course of preparing the financial statements are set out below: |
Accrued rebate income and impact on stock |
In line with general industry practice, at times the group receives rebates from some suppliers in relation to purchases made. At any one time there is stock held on which rebates have or are due to be received, which would reduce the actual unit cost of this stock below the initial amount invoiced. To reflect the impact of these rebates on the stock value, and properly record stock at the lower of cost and net realisable value, an adjustment has been made to lower the value of stock reported. The directors have estimated the impact of the purchase rebates on stock by looking at ratios of rebates, purchases and stock. |
Depreciation and amortisation |
The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. |
Useful life of goodwill |
Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of the Group's share of its identifiable assets and liabilities of the acquiree at the date of acquisition. Goodwill is amortised on a straight line basis to the Income Statement over its useful economic life. A 10 year amortisation period for goodwill has been chosen as the directors are of the opinion that this period most accurately reflects the goodwill life, based on the expected future cash flows. |
Turnover |
Turnover represents net invoiced sales of goods, net of discounts and excluding value added tax. Turnover is recognised on the raising of the invoice, which takes place when the goods are either delivered or collected. |
Turnover also includes revenue earned from the rental of properties. Rents invoiced in advance which relate to future periods are deferred and rent invoiced in arrears related to past periods |
are accrued. |
Purchases and sales rebates |
Purchase rebates from suppliers are credited to the profit and loss account (against purchases) and sales rebates to customers are charged to the profit and loss account (against sales) on an accruals basis. |
Goodwill |
Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer's interest in the fair value of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight-line basis to the Statement of comprehensive income over its useful economic life. |
Goodwill is recognised in relation to two separate business acquisitions in the year ended 31 August 2023. The useful life of both elements of goodwill is expected to be 10 years. |
Intangible assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
LEW GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 13869957) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 AUGUST 2024 |
3. | ACCOUNTING POLICIES - continued |
Tangible fixed assets |
Tangible fixed assets other than freehold property are stated at costs less accumulated depreciation and accumulated impairment losses. |
Depreciation is provided at the following annual rates in order to write off the cost less estimated residual value of each asset over its estimated useful life. |
Freehold property - see below |
Plant and machinery - 25% on cost |
Fixtures and fittings - 50% on cost, 25% on cost, 33% on cost, 10% on cost and 25% on reducing balance |
Motor vehicles - 25% on cost |
In accordance with FRS 102, freehold properties are included in the financial statements at their open market values. The most recent valuation was provided by an external expert in the period ended 31 August 2023, and this is considered to be an approximation of their Fair Value. When the value of a property is revalued above cost the aggregate surplus or deficit on revaluation is transferred to the revaluation reserve.When the value of a property is revalued below cost, and this is considered to be a permanent diminution in value, the difference is charged to the profit and loss account. |
Freehold property is depreciated at 2% straight line annually. |
Assets under construction are not depreciated until the assets are brought into productive use. |
Impairment of Assets |
At each reporting date tangible fixed assets, intangible fixed assets and investments are reviewed to determine whether there is any indication that those assets have suffered an impairment loss. If there is an indication of possible impairment, the recoverable amount of any affected asset is estimated and compared with its carrying amount. If the estimated recoverable amount is lower, the carrying amount is reduced to its estimated recoverable amount, and an impairment loss if recognised immediately, either reducing any previous uplift in the revaluation reserve, or directly in profit or loss. |
If an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but not in excess of the amount that would have been determined had no impairment loss been recognised for the assets in prior years. A reversal of an impairment loss is recognised immediately in profit or loss to the extent that it was previously recognised there. |
Debtors |
Short term debtors are measured at transaction price, less any impairment. |
Creditors |
Short term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transactions costs, and are measured subsequently at amortised costs using the effective interest method. |
Investment property |
Investment property comprises property held for rental and rented to entities outside of the group. |
Investment property is shown at its most recent valuation, which approximates to Fair Value. Any aggregate surplus or deficit arising from changes in market value is recognised in profit and loss and accumulated in a non-distributable reserve in accordance with FRS 102. |
Stocks |
Stocks are valued at the lower of cost and net realisable value, after making due allowances for obsolete and slow moving items as well as subsequent reductions to cost in relation to rebates. |
Whilst stock is sold on a First In First Out basis, the cost of stock is derived using an average purchase price where applicable. |
At each reporting date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss. |
LEW GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 13869957) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 AUGUST 2024 |
3. | ACCOUNTING POLICIES - continued |
Taxation |
Current tax is recognised for the amount of income tax payable in respect of the taxable profit for the current or past reporting periods using the tax rates and laws that have been enacted or substantively enacted by the reporting date. |
Deferred tax is recognised in respect of all timing differences at the reporting date, except as otherwise indicated. |
Deferred tax assets are only recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. If and when all conditions for retaining tax allowances for the cost of a fixed asset have been met, the deferred tax is reversed. |
Deferred tax is calculated using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference. |
The tax expense (income) is presented either in profit or loss, other comprehensive income or equity depending on the transaction that resulted in the tax expense (income). |
Hire purchase and leasing commitments |
At inception the group assesses agreements that transfer the right to use assets. The assessment considers whether the arrangement is a finance lease or an operating lease based on the substances of the arrangement. |
Finance leases |
Leases of assets that transfer substantially all the risks and rewards of ownership to the group are classified as finance leases. |
Assets held under finance leases are recognized initially at the fair value of the leased asset (or, if lower, the present value of minimum lease payments) at the inception of the lease. The corresponding liability to the lessor is included in the statement of financial position as a finance lease obligation. Lease payments are apportioned between finance charges and reduction of the lease obligation using the effective interest method so as to achieve a constant rate of interest on the remaining balance of the liability. Finance charges are deducted in measuring profit or loss. |
Assets held under finance leases are included in tangible fixed assets and depreciated over the shorter of the lease term and the estimated useful life of the asset. Assets are assessed for impairment at each reporting date. |
Operating leases |
Leases that do no transfer all the risks and rewards of ownership are classified as operating leases. Payments under operating leases are charged to the profit and loss account on a straight-line basis over the period of the lease. |
Pension costs and other post-retirement benefits |
Short- term employee benefits and contributions to defined contribution plans are recognised as an expense in the period in which they are incurred. |
Provisions for liabilities |
Provisions are recognised when the group has a present (legal or constructive) obligation as a result of a past event; it is probable that an outflow of resources will be required to settle the obligation; and the amount of the obligation can be estimated reliably. |
The amount recognised as a provision is the best estimate of the consideration required to settle the present recognised as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation. |
Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value using a pre-tax discount rate. The unwinding of the discount is recognised as a finance costs in profit or loss in the period it arises. |
The group recognises a provision for annual leave accrued by employees for services rendered in the current period, and which employees are entitled to carry forward and use within the next 12 months, measured at the salary costs payable for the period of absence. |
LEW GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 13869957) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 AUGUST 2024 |
4. | EMPLOYEES AND DIRECTORS |
2024 | 2023 |
£ | £ |
Wages and salaries | 7,611,123 | 5,061,901 |
Social security costs | 819,701 | 555,345 |
Other pension costs | 151,352 | 101,536 |
8,582,176 | 5,718,782 |
The average number of employees during the year was as follows: |
2024 | 2023 |
Selling and administration |
2024 | 2023 |
£ | £ |
Directors' remuneration - gross salary and benefits | 734,790 | 611,918 |
Pension contributions to money purchase schemes | 8,789 | 4,839 |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes | 3 | 3 |
Information regarding the highest paid director is as follows: |
2024 | 2023 |
£ | £ |
Gross salary | 412,726 | 349,567 |
Pension contributions to money purchase schemes | 4,636 | 2,085 |
The directors were the only key management personnel within the company in the current and prior periods. It is considered that where directors are appointed during a year, they only become key management at the point when they are appointed as directors. |
5. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
2024 | 2023 |
£ | £ |
Hire of plant and machinery | 242,453 | 162,964 |
Other operating leases | 573,449 | 315,429 |
Depreciation - owned assets | 559,351 | 356,150 |
Profit on disposal of fixed assets | (16,622 | ) | (22,583 | ) |
Goodwill amortisation | 72,000 | - |
Computer software amortisation | 62,450 | 40,285 |
Auditors' remuneration | 15,560 | 11,824 |
Preparation of accounts | 6,000 | 6,745 |
Taxation compliance services | 2,500 | 1,875 |
Other non- audit services | 6,485 | 5,223 |
LEW GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 13869957) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 AUGUST 2024 |
6. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2024 | 2023 |
£ | £ |
Current tax: |
UK corporation tax | 620,404 | 375,101 |
Deferred tax | 195,527 | 26,120 |
Tax on profit | 815,931 | 401,221 |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
2024 | 2023 |
£ | £ |
Profit before tax | 2,618,385 | 1,853,244 |
Profit multiplied by the standard rate of corporation tax in the UK of 25 % (2023 - 21.515 %) |
654,596 |
398,725 |
Effects of: |
Expenses not deductible for tax purposes | 75,735 | 82,679 |
Income not taxable for tax purposes | - | (41,406 | ) |
Capital allowances in excess of depreciation | (122,459 | ) | (70,372 | ) |
Deferred tax charge | 195,527 | 26,120 |
Consolidation adjustments | 12,532 | 5,475 |
Total tax charge | 815,931 | 401,221 |
Tax effects relating to effects of other comprehensive income |
There were no tax effects for the year ended 31 August 2024. |
2023 |
Gross | Tax | Net |
£ | £ | £ |
Revaluation of property | 330,446 | - | 330,446 |
Deferred tax on revaluation | (30,500 | ) | - | (30,500 | ) |
Negative goodwill to fair value reserve | 1,695,116 | - | 1,695,116 |
1,995,062 | - | 1,995,062 |
7. | 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. |
8. | DIVIDENDS |
Interim dividends of £293,400 have been distributed to the shareholders (2023: £145,800). |
LEW GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 13869957) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 AUGUST 2024 |
9. | INTANGIBLE FIXED ASSETS |
Group |
Computer |
Goodwill | software | Totals |
£ | £ | £ |
COST |
At 1 September 2023 | 726,792 | 560,231 | 1,287,023 |
Additions | - | 103,324 | 103,324 |
At 31 August 2024 | 726,792 | 663,555 | 1,390,347 |
AMORTISATION |
At 1 September 2023 | - | 40,285 | 40,285 |
Amortisation for year | 72,000 | 62,450 | 134,450 |
At 31 August 2024 | 72,000 | 102,735 | 174,735 |
NET BOOK VALUE |
At 31 August 2024 | 654,792 | 560,820 | 1,215,612 |
At 31 August 2023 | 726,792 | 519,946 | 1,246,738 |
10. | TANGIBLE FIXED ASSETS |
Group |
Assets |
Freehold | under | Plant and |
property | construction | machinery |
£ | £ | £ |
COST OR VALUATION |
At 1 September 2023 | 1,272,500 | - | 66,993 |
Additions | 873,319 | 679,496 | 31,365 |
Disposals | - | - | - |
At 31 August 2024 | 2,145,819 | 679,496 | 98,358 |
DEPRECIATION |
At 1 September 2023 | 25,450 | - | 17,173 |
Charge for year | 42,916 | - | 23,658 |
Eliminated on disposal | - | - | - |
At 31 August 2024 | 68,366 | - | 40,831 |
NET BOOK VALUE |
At 31 August 2024 | 2,077,453 | 679,496 | 57,527 |
At 31 August 2023 | 1,247,050 | - | 49,820 |
LEW GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 13869957) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 AUGUST 2024 |
10. | TANGIBLE FIXED ASSETS - continued |
Group |
Fixtures |
and | Motor |
fittings | vehicles | Totals |
£ | £ | £ |
COST OR VALUATION |
At 1 September 2023 | 1,620,122 | 536,771 | 3,496,386 |
Additions | 247,324 | 346,856 | 2,178,360 |
Disposals | (93 | ) | (65,519 | ) | (65,612 | ) |
At 31 August 2024 | 1,867,353 | 818,108 | 5,609,134 |
DEPRECIATION |
At 1 September 2023 | 189,915 | 123,612 | 356,150 |
Charge for year | 300,281 | 192,496 | 559,351 |
Eliminated on disposal | (93 | ) | (49,141 | ) | (49,234 | ) |
At 31 August 2024 | 490,103 | 266,967 | 866,267 |
NET BOOK VALUE |
At 31 August 2024 | 1,377,250 | 551,141 | 4,742,867 |
At 31 August 2023 | 1,430,207 | 413,159 | 3,140,236 |
Cost or valuation at 31 August 2024 is represented by: |
Assets |
Freehold | under | Plant and |
property | construction | machinery |
£ | £ | £ |
Valuation in 2023 | 330,446 | - | - |
Cost | 1,815,373 | 679,496 | 98,358 |
2,145,819 | 679,496 | 98,358 |
Fixtures |
and | Motor |
fittings | vehicles | Totals |
£ | £ | £ |
Valuation in 2023 | - | - | 330,446 |
Cost | 1,867,353 | 818,108 | 5,278,688 |
1,867,353 | 818,108 | 5,609,134 |
During the previous year, the group's freehold and investment property interest was subject to an independent professional valuation (undertaken by Innes England, an independent firm of surveyors), which was derived on the basis of market value on an existing use basis. |
LEW GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 13869957) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 AUGUST 2024 |
11. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1 September 2023 |
and 31 August 2024 |
NET BOOK VALUE |
At 31 August 2024 |
At 31 August 2023 |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiaries |
Registered office: 2 Somerby Way, Somerby Park, Gainsborough, England, DN21 1QT |
Nature of business: |
% |
Class of shares: | holding |
Registered office: 2 Somerby Way, Somerby Park, Gainsborough, England, DN21 1QT |
Nature of business: |
% |
Class of shares: | holding |
Registered office: Unit 16, Primrose Street, Gainsborough, Lincolnshire, DN21 1HU |
Nature of business: |
% |
Class of shares: | holding |
The shares in Intellipower (Nottingham) Limited are held indirectly by the subsidiary Lincs. Electrical Wholesalers Limited. Intellipower (Nottingham) Limited was dissolved on 1 October 2024, following the transfer of trade and assets into Lincs. Electrical Wholesalers Limited. |
12. | INVESTMENT PROPERTY |
Group |
Total |
£ |
FAIR VALUE |
At 1 September 2023 |
and 31 August 2024 | 817,500 |
NET BOOK VALUE |
At 31 August 2024 | 817,500 |
At 31 August 2023 | 817,500 |
LEW GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 13869957) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 AUGUST 2024 |
12. | INVESTMENT PROPERTY - continued |
Group |
Fair value at 31 August 2024 is represented by: |
£ |
Valuation in 2023 | 192,451 |
Cost | 625,049 |
817,500 |
During the previous year, the group's freehold and investment property interest was subject to an independent professional valuation (undertaken by Innes England, an independent firm of surveyors), which was derived on the basis of market value on an existing use basis. |
13. | STOCKS |
Group |
2024 | 2023 |
£ | £ |
Stocks | 5,404,644 | 5,605,111 |
14. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Trade debtors | 11,062,756 | 9,713,339 |
Amounts owed by group undertakings | - | - |
Prepayments and accrued income | 3,890,622 | 3,208,702 |
14,953,378 | 12,922,041 |
Amounts owed by group undertakings are unsecured, interest free and repayable on demand. |
15. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group |
2024 | 2023 |
£ | £ |
Trade creditors | 9,382,324 | 7,916,497 |
Tax | 372,061 | 274,224 |
Social security and other taxes | 154,461 | 144,763 |
VAT | 492,587 | 503,722 |
Other creditors | - | 564,413 |
Accruals and deferred income | 2,057,571 | 2,196,173 |
12,459,004 | 11,599,792 |
16. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
LEW GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 13869957) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 AUGUST 2024 |
Group |
Non-cancellable operating | leases |
2024 | 2023 |
£ | £ |
Within one year | 567,542 | 620,557 |
Between one and five years | 1,106,308 | 1,415,558 |
In more than five years | 228,542 | 380,745 |
1,902,392 | 2,416,860 |
17. | INVOICE DISCOUNTING FACILITY |
There is an invoice discounting facility available to the group, self-capped at £3.6m, whereby they can draw down in advance of customers payments to fund working capital if required. No amounts were outstanding in relation to this facility at the year end. |
18. | PROVISIONS FOR LIABILITIES |
Group |
2024 | 2023 |
£ | £ |
Deferred tax | 746,604 | 551,077 |
Group |
Deferred |
tax |
£ |
Balance at 1 September 2023 | 551,077 |
Provided during year | 195,527 |
Balance at 31 August 2024 | 746,604 |
19. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2024 | 2023 |
value: | £ | £ |
A Ordinary | 1 | 900 | 900 |
B Ordinary | 1 | 630 | 630 |
C Ordinary | 1 | 270 | 270 |
1,800 | 1,800 |
Each class of shares has the same rights. Each shareholder is entitled to one vote in any circumstance, ranking pari passu to any other share class. Each shareholder is entitled to dividends however dividends may be issued to one share class at the exclusion of any other share class. |
LEW GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 13869957) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 AUGUST 2024 |
20. | RESERVES |
Group |
Fair |
Retained | Share | Revaluation | value |
earnings | premium | reserve | reserve | Totals |
£ | £ | £ | £ | £ |
At 1 September 2023 | 1,306,223 | 9,648,200 | 299,946 | 1,695,116 | 12,949,485 |
Profit for the year | 1,802,454 | - | - | - | 1,802,454 |
Dividends | (293,400 | ) | - | - | - | (293,400 | ) |
At 31 August 2024 | 2,815,277 | 9,648,200 | 299,946 | 1,695,116 | 14,458,539 |
Company |
Retained | Share |
earnings | premium | Totals |
£ | £ | £ |
At 1 September 2023 | 11,062,400 |
Profit for the year |
Dividends | ( |
) | ( |
) |
At 31 August 2024 | 11,819,000 |
21. | PENSION COMMITMENTS |
The group operates a defined contribution pension scheme. The pension charge for the year represents contributions paid by the group to the fund and amounted to £151,353 (2023: £101,536). |
At the year end, there is a liability in relation to pensions of £30,777. (2023: £28,674). |
22. | ULTIMATE CONTROLLING PARTY |
There is no ultimate controlling party of the group by virtue of the shareholdings. |
Post-year end a business restructure was carried out and Johnson Family Investment Holdings Ltd (16029438) became the parent of this group. This restructure took place on 21/10/2024 and was a share for share exchange. Following the restructure, there is still no one controlling party of this entity. |