REGISTERED NUMBER: 00206159 (England and Wales) |
Group Strategic Report, |
Report of the Directors and |
Consolidated Financial Statements |
for the Year Ended 31 July 2024 |
for |
LECK GROUP LIMITED |
REGISTERED NUMBER: 00206159 (England and Wales) |
Group Strategic Report, |
Report of the Directors and |
Consolidated Financial Statements |
for the Year Ended 31 July 2024 |
for |
LECK GROUP LIMITED |
LECK GROUP LIMITED (REGISTERED NUMBER: 00206159) |
Contents of the Consolidated Financial Statements |
for the Year Ended 31 July 2024 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 3 |
Report of the Independent Auditors | 5 |
Consolidated Statement of Comprehensive Income | 8 |
Consolidated Balance Sheet | 9 |
Company Balance Sheet | 10 |
Consolidated Statement of Changes in Equity | 11 |
Company Statement of Changes in Equity | 12 |
Consolidated Cash Flow Statement | 13 |
Notes to the Consolidated Cash Flow Statement | 14 |
Notes to the Consolidated Financial Statements | 15 |
LECK GROUP LIMITED |
Company Information |
for the Year Ended 31 July 2024 |
Directors: |
Secretary: |
Registered office: |
Registered number: |
Auditors: |
Northern Assurance Buildings |
9-21 Princess Street |
Manchester |
M2 4DN |
Bankers: | National Westminister Bank plc |
PO Box No 305 |
Spring Gardens |
Manchester |
M60 2DB |
LECK GROUP LIMITED (REGISTERED NUMBER: 00206159) |
Group Strategic Report |
for the Year Ended 31 July 2024 |
The directors present their strategic report of the company and the group for the year ended 31 July 2024. |
The principal activity of Leck Group Limited is the holding company for its subsidiary companies. The principal activities of the subsidiary companies continued to be that of building contractors, property developers and investment in property. |
Review of business |
The company's turnover has increased by 13.04% from the previous year which is due to an uptake of new projects and an increase in trade with existing contractors. The gross profit margin has also decreased from 20.13% to 15.34% due to higher start up costs in relation to the new projects. Admin expenses have decreased by 6.48%, primarily due to a reduction to the payroll expenses and management charges in response to a reduction gross profit margin. |
The Directors are satisfied with figures achieved during the period. |
Principal risks and uncertainties |
Due to the nature of the industry safety, health and environmental issues are ever changing. Accordingly the health and safety of our employees and third parties is our priority. Financial and commercial risks are a continual issue for the industry. Competitive pricing is keener than ever making it difficult to pass on cost increases in material and labour. The board continually review these risks and have policies in place to manage them. |
Key performance indicators |
The company's key financial and other performance indicators during the year were as follows: |
Category | Unit | 2024 | 2023 |
Sales | £ | 15,996,452 | 14,151,586 |
Gross profit | £ | 2,454,986 | 2,848,275 |
Gross margin | % | 15.34 | 20.13 |
On behalf of the board: |
LECK GROUP LIMITED (REGISTERED NUMBER: 00206159) |
Report of the Directors |
for the Year Ended 31 July 2024 |
The directors present their report with the financial statements of the company and the group for the year ended 31 July 2024. |
Principal activities |
Leck Group Limited is the holding company for its subsidiary companies. The principal activities of the subsidiary companies continued to be that of building contractors, property developers and investment in property. |
Dividends |
A dividend of £211,889 has been paid during the year. |
Future developments |
As for many businesses of our size, the environment in which the group and company operates continues to be challenging. The industry is subject to constraint on spending partly brought about by the uncertainty in the British economy and partly by other factors. With these risks and uncertainties in mind the directors are aware that any plans for future development of the group and company may be subject to unforeseen future events outside of their control. Nevertheless, the directors consider that the group is well placed to sustain the current level of activity in the foreseeable future. |
Directors |
The directors shown below have held office during the whole of the period from 1 August 2023 to the date of this report. |
Financial instruments |
The business' principal financial instruments comprise bank balances, trade debtors and trade creditors. The main purpose of these instruments is to finance the business' operations. |
In respect of bank balances, the liquidity risk is managed by maintaining a balance between the continuity of funding and flexibility through the use of overdrafts at floating rates of interest. All of the business' cash balances are held in such a way that achieves a competitive rate of interest. |
Trade debtors are managed in respect of credit and cash flow risk by policies concerning the credit offered to customers and the regular monitoring of amounts outstanding for both time and credit limits. The amounts presented in the balance sheet are net of allowances for doubtful debtors. |
Trade creditors' liquidity risk is managed by ensuring sufficient funds are available to meet amounts due. |
Retirement of directors |
In accordance with the Articles of Association DR Barker retires by rotation, and being eligible, offers himself for re-election. |
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; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
LECK GROUP LIMITED (REGISTERED NUMBER: 00206159) |
Report of the Directors |
for the Year Ended 31 July 2024 |
Statement of directors' responsibilities - continued |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
Statement as to disclosure of information to auditors |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
On behalf of the board: |
Report of the Independent Auditors to the Members of |
Leck Group Limited |
Opinion |
We have audited the financial statements of Leck Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 July 2024 which comprise the Consolidated Statement of 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 July 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 other information comprises the information included in the report of the directors, other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the report of the directors. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. |
We have nothing to report in this regard. |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of 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 |
Leck Group 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 pages three and four, 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. |
Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below: |
- Identifying and assessing the design and effectiveness of controls that management have in place to prevent and detect fraud; |
- Understanding how those charged with governance considered and addressed the potential for override of controls or other inappropriate influence over the financial reporting process. |
- Discussions with management including consideration of known or suspected instances of non-compliance with laws and regulation and fraud; |
- Reading key correspondence with external legal advisors; |
- Identifying and testing journal entries, in particular any journal entries posted with unusual account combinations and unusual words; and |
- Challenging assumptions and judgements made by management in their significant accounting estimates, in particular those relating to the valuation of amounts recoverable on contract, contract accruals and investment properties. |
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. |
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 |
Leck Group 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 |
Northern Assurance Buildings |
9-21 Princess Street |
Manchester |
M2 4DN |
LECK GROUP LIMITED (REGISTERED NUMBER: 00206159) |
Consolidated |
Statement of Comprehensive |
Income |
for the Year Ended 31 July 2024 |
2024 | 2023 |
Notes | £ | £ |
Turnover | 4 | 15,996,452 | 14,151,586 |
Cost of sales | (13,541,466 | ) | (11,303,311 | ) |
Gross profit | 2,454,986 | 2,848,275 |
Administrative expenses | (2,497,266 | ) | (2,670,213 | ) |
(42,280 | ) | 178,062 |
Other operating income | 651,031 | 548,461 |
Operating profit | 6 | 608,751 | 726,523 |
Income from fixed asset investments | 2,583 | 3,511 |
Interest receivable and similar income | 167,626 | 15,471 |
Profit before taxation | 778,960 | 745,505 |
Tax on profit | 7 | (143,618 | ) | (14,917 | ) |
Profit for the financial year |
Other comprehensive income |
Share buy-back | - | (95,779 | ) |
Income tax relating to other comprehensive income |
- |
- |
Other comprehensive income for the year, net of income tax |
- |
(95,779 |
) |
Total comprehensive income for the year | 635,342 | 634,809 |
Profit attributable to: |
Owners of the parent | 635,342 | 730,588 |
Total comprehensive income attributable to: |
Owners of the parent | 635,342 | 634,809 |
LECK GROUP LIMITED (REGISTERED NUMBER: 00206159) |
Consolidated Balance Sheet |
31 July 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
Fixed assets |
Tangible assets | 10 | 449,726 | 454,781 |
Investments | 11 | 58,569 | 47,153 |
Investment property | 12 | 5,695,713 | 4,901,800 |
6,204,008 | 5,403,734 |
Current assets |
Stocks | 13 | 22,502 | 981,412 |
Debtors | 14 | 3,789,195 | 2,108,749 |
Investments | 15 | 6,709 | 6,709 |
Cash at bank and in hand | 5,844,489 | 5,629,709 |
9,662,895 | 8,726,579 |
Creditors |
Amounts falling due within one year | 16 | 4,435,649 | 3,110,700 |
Net current assets | 5,227,246 | 5,615,879 |
Total assets less current liabilities | 11,431,254 | 11,019,613 |
Creditors |
Amounts falling due after more than one year |
17 |
(90,830 |
) |
(116,857 |
) |
Provisions for liabilities | 18 | (379,404 | ) | (365,189 | ) |
Net assets | 10,961,020 | 10,537,567 |
Capital and reserves |
Called up share capital | 19 | 52,491 | 52,491 |
Other reserves | 20 | 64,646 | 64,646 |
Fair value reserve | 20 | 2,416,793 | 2,221,376 |
Retained earnings | 20 | 8,427,090 | 8,199,054 |
Shareholders' funds | 10,961,020 | 10,537,567 |
The financial statements were approved by the Board of Directors and authorised for issue on 31 March 2025 and were signed on its behalf by: |
D R Barker - Director |
LECK GROUP LIMITED (REGISTERED NUMBER: 00206159) |
Company Balance Sheet |
31 July 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
Fixed assets |
Tangible assets | 10 |
Investments | 11 |
Investment property | 12 |
Current assets |
Debtors | 14 |
Cash at bank |
Creditors |
Amounts falling due within one year | 16 |
Net current assets |
Total assets less current liabilities |
Provisions for liabilities | 18 |
Net assets |
Capital and reserves |
Called up share capital | 19 |
Other reserves | 20 |
Fair value reserve | 20 |
Retained earnings | 20 |
Shareholders' funds |
Company's profit for the financial year | 385,840 | 705,931 |
The financial statements were approved by the Board of Directors and authorised for issue on |
LECK GROUP LIMITED (REGISTERED NUMBER: 00206159) |
Consolidated Statement of Changes in Equity |
for the Year Ended 31 July 2024 |
Called up | Fair |
share | Retained | Other | value | Total |
capital | earnings | reserves | reserve | equity |
£ | £ | £ | £ | £ |
Balance at 1 August 2022 | 52,972 | 7,944,184 | 64,165 | 2,053,807 | 10,115,128 |
Changes in equity |
Reduction in share capital | (481 | ) | - | - | - | (481 | ) |
Dividends | - | (211,889 | ) | - | - | (211,889 | ) |
Total comprehensive income | - | 466,759 | 481 | 167,569 | 634,809 |
Balance at 31 July 2023 | 52,491 | 8,199,054 | 64,646 | 2,221,376 | 10,537,567 |
Changes in equity |
Dividends | - | (211,889 | ) | - | - | (211,889 | ) |
Total comprehensive income | - | 439,925 | - | 195,417 | 635,342 |
Balance at 31 July 2024 | 52,491 | 8,427,090 | 64,646 | 2,416,793 | 10,961,020 |
LECK GROUP LIMITED (REGISTERED NUMBER: 00206159) |
Company Statement of Changes in Equity |
for the Year Ended 31 July 2024 |
Called up | Fair |
share | Retained | Other | value | Total |
capital | earnings | reserves | reserve | equity |
£ | £ | £ | £ | £ |
Balance at 1 August 2022 |
Changes in equity |
Reduction in share capital | (481 | ) | - | - | - | (481 | ) |
Dividends | - | ( |
) | - | - | ( |
) |
Total comprehensive income | - |
Balance at 31 July 2023 |
Changes in equity |
Dividends | - | ( |
) | - | - | ( |
) |
Total comprehensive income | - |
Balance at 31 July 2024 |
LECK GROUP LIMITED (REGISTERED NUMBER: 00206159) |
Consolidated Cash Flow Statement |
for the Year Ended 31 July 2024 |
2024 | 2023 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 434,150 | 2,027,963 |
Tax paid | (42,285 | ) | (371,283 | ) |
Net cash from operating activities | 391,865 | 1,656,680 |
Cash flows from investing activities |
Purchase of tangible fixed assets | (134,434 | ) | (224,077 | ) |
Purchase of fixed asset investments | (2,094 | ) | (1,692 | ) |
Purchase of investment property | - | (135,000 | ) |
Sale of tangible fixed assets | 852 | 12,525 |
Interest received | 167,626 | 15,471 |
Dividends received | 2,583 | 3,511 |
Net cash from investing activities | 34,533 | (329,262 | ) |
Cash flows from financing activities |
Amount introduced by directors | 271 | (2,400 | ) |
Share buyback | - | (96,260 | ) |
Equity dividends paid | (211,889 | ) | (211,889 | ) |
Net cash from financing activities | (211,618 | ) | (310,549 | ) |
Increase in cash and cash equivalents | 214,780 | 1,016,869 |
Cash and cash equivalents at beginning of year |
2 |
5,629,709 |
4,612,840 |
Cash and cash equivalents at end of year | 2 | 5,844,489 | 5,629,709 |
LECK GROUP LIMITED (REGISTERED NUMBER: 00206159) |
Notes to the Consolidated Cash Flow Statement |
for the Year Ended 31 July 2024 |
1. | Reconciliation of profit before taxation to cash generated from operations |
2024 | 2023 |
£ | £ |
Profit before taxation | 778,960 | 745,505 |
Depreciation charges | 139,273 | 134,442 |
Profit on disposal of fixed assets | (635 | ) | (7,766 | ) |
Fair value adjustment | (217,217 | ) | (188,469 | ) |
Finance income | (170,209 | ) | (18,982 | ) |
530,172 | 664,730 |
Decrease in stocks | 372,892 | 633,167 |
(Increase)/decrease in trade and other debtors | (1,767,835 | ) | 2,876,529 |
Increase/(decrease) in trade and other creditors | 1,298,921 | (2,146,463 | ) |
Cash generated from operations | 434,150 | 2,027,963 |
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 July 2024 |
31/7/24 | 1/8/23 |
£ | £ |
Cash and cash equivalents | 5,844,489 | 5,629,709 |
Year ended 31 July 2023 |
31/7/23 | 1/8/22 |
£ | £ |
Cash and cash equivalents | 5,629,709 | 4,612,840 |
3. | Analysis of changes in net funds |
At 1/8/23 | Cash flow | At 31/7/24 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 5,629,709 | 214,780 | 5,844,489 |
5,629,709 | 214,780 | 5,844,489 |
Liquid resources |
Current asset investments | 6,709 | - | 6,709 |
6,709 | - | 6,709 |
Total | 5,636,418 | 214,780 | 5,851,198 |
LECK GROUP LIMITED (REGISTERED NUMBER: 00206159) |
Notes to the Consolidated Financial Statements |
for the Year Ended 31 July 2024 |
1. | Statutory information |
Leck Group Limited is a |
2. | Statement of compliance |
The Group and individual financial statements of Leck Group Limited have been prepared in compliance with United Kingdom Accounting Standards, including Financial Reporting Standard 102, ‘‘The Financial Reporting Standard applicable in the United Kingdom and the Republic of Ireland’’ (‘‘FRS 102’’) and the Companies Act 2006. |
3. | Accounting policies |
Basis of preparing the financial statements |
Basis of consolidation |
The group financial statements consolidate the financial statements of the company and its subsidiary undertakings drawn up to 31 July 2024. |
Subsidiary undertakings are included using the acquisitions method of accounting. Under this method the group profit and loss account and statement of cashflows include the results and cashflows of subsidiaries from the date of acquisition and to the date of sale outside the group in the case of disposals of subsidiaries. The purchase consideration has been allocated to the assets and liabilities on the basis of fair value at the date of acquisition. |
Significant judgements and estimates |
Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. |
There are not considered to be any critical judgements in applying the company's accounting policies. |
The company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amounts of assets or liabilities within the next financial year are addressed below. |
(i) Provisions |
Provision is made for work which has been undertaken by sub-contractors during the year but not invoiced at the year end. This provision requires management's best estimate of these costs. |
(ii) Investment property |
Investment property is shown at fair value. Any aggregate surplus or deficit arising from changes in market value is charged or credited to the profit and loss account and then transferred to a non-distributable reserve, net of any deferred tax. The fair value of the investment property is calculated from reviewing market data available and looking at yields of similar properties and adjusting accordingly to reflect the condition of the properties. |
Although this accounting policy is in accordance with FRS 102 it is a departure from the general requirement of the Companies Act 2006 for all tangible assets to be depreciated. In the opinion of the directors compliance with the standard is necessary for the financial statements to give a true and fair view. |
LECK GROUP LIMITED (REGISTERED NUMBER: 00206159) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 July 2024 |
3. | Accounting policies - continued |
Turnover |
Turnover comprises completed sales and the value of contracting work performed which includes attributable profit in respect of long term contracts. |
Profit is recognised on long-term contracts if the final outcome can be assessed with reasonable certainty, by including in the profit and loss account turnover and related cost as contract activity progresses. Turnover is calculated as that proportion of total contract value which costs to date bear to total expected costs for that contract. |
Tangible fixed assets |
Freehold property | - |
Plant and machinery | - |
Motor vehicles | - |
Freehold land and buildings are stated at deemed cost for assets held at the date of transition to FRS102 less accumulated depreciation and accumulated impairment losses. |
Stocks |
Stocks of raw materials and land for resale are valued at the lower of cost and net realisable value. |
Developments included in stock are valued at the lower of direct cost and net realisable value and after deducting progress payments received. |
Net realisable value is based on estimated selling price, less further costs expected to be incurred to completion and disposal. Provision is made for obsolete, slow moving or defective items where appropriate. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Hire purchase and leasing commitments |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter. |
The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability. |
LECK GROUP LIMITED (REGISTERED NUMBER: 00206159) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 July 2024 |
3. | Accounting policies - continued |
Pension costs and other post-retirement benefits |
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
Investments |
Investments are stated at fair value, with the exception of subsidiary companies which are stated at cost less provisions. |
Long term contracts |
Amounts recoverable on long term contracts, which are included in debtors, are stated at the net sales value of the work done after provision for contingencies and anticipated future losses on contracts, less amounts received as progress payments on account. Excess progress payments are included in creditors as payments on account. |
Financial instruments |
The group has chosen to adopt Sections 11 and 12 of FRS 102 in respect of financial instruments. |
(i) Financial assets |
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. |
Such assets are subsequently carried at amortised cost using the effective interest method. |
There are no assets which are initially measured at fair value. |
(ii) Financial liabilities |
Basic financial liabilities, including trade and other creditors and loans from fellow group companies 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. |
Other income |
Other income comprises rents receivable, net of VAT and fair value adjustments of investments. Rent receivable is recognised equally over the lease term. |
Provisions |
Provisions are recognised when there is a present obligation as a result of a past event, where the settlement through an outflow of resources is probable and the amount can be estimated reliably. |
4. | Turnover |
The turnover and profit before taxation are attributable to the principal activities of the group. |
An analysis of turnover by class of business is given below: |
2024 | 2023 |
£ | £ |
Construction services | 15,316,412 | 11,404,343 |
Sale of development properties | 680,040 | 2,747,243 |
15,996,452 | 14,151,586 |
LECK GROUP LIMITED (REGISTERED NUMBER: 00206159) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 July 2024 |
5. | Employees and directors |
2024 | 2023 |
£ | £ |
Wages and salaries | 3,366,929 | 3,157,932 |
Social security costs | 378,169 | 357,807 |
Other pension costs | 155,171 | 268,643 |
3,900,269 | 3,784,382 |
The average number of employees during the year was as follows: |
2024 | 2023 |
Office and management | 24 | 26 |
Construction | 53 | 53 |
2024 | 2023 |
£ | £ |
Directors' remuneration | 205,350 | 135,226 |
Directors' pension contributions to money purchase schemes | 56,000 | 46,000 |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes | 1 | 1 |
Information regarding the highest paid director for the year ended 31 July 2024 is as follows: |
2024 |
£ |
Emoluments etc | 117,033 |
6. | Operating profit |
The operating profit is stated after charging/(crediting): |
2024 | 2023 |
£ | £ |
Purchases - Plant hire | 403,673 | 500,005 |
Depreciation - owned assets | 139,272 | 134,442 |
Profit on disposal of fixed assets | (635 | ) | (7,766 | ) |
Auditors' remuneration | 30,790 | 34,757 |
Other non- audit services | 1,500 | 1,500 |
Income from other investments (listed) | (2,094 | ) | (1,693 | ) |
Rent receivable | (371,141 | ) | (351,108 | ) |
Fair value adjustment | (217,217 | ) | (188,468 | ) |
The audit fee related to the audit of the individual company is £7,000 (2023: 6750). |
LECK GROUP LIMITED (REGISTERED NUMBER: 00206159) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 July 2024 |
7. | 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 | 129,403 | 70,209 |
(Over)/under provision PY | - | (97,278 | ) |
Total current tax | 129,403 | (27,069 | ) |
Deferred tax | 14,215 | 41,986 |
Tax on profit | 143,618 | 14,917 |
UK corporation tax has been charged at 25 % (2023 - 21.01 %). |
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: |
2024 | 2023 |
£ | £ |
Profit before tax | 778,960 | 745,505 |
Profit multiplied by the standard rate of corporation tax in the UK of 25 % (2023 - 21.010 %) |
194,740 |
156,631 |
Effects of: |
Expenses not deductible for tax purposes | 1,471 | 14,796 |
Income not taxable for tax purposes | (24,572 | ) | (39,188 | ) |
Capital allowances in excess of depreciation | - | (21,525 | ) |
Depreciation in excess of capital allowances | 9,896 | - |
(Profit)/loss on disposal of fixed asset | (159 | ) | (1,632 | ) |
Deferred tax | 14,215 | 41,986 |
Fair value adjustment | (51,973 | ) | (38,873 | ) |
Research and development credit | - | (97,278 | ) |
Total tax charge | 143,618 | 14,917 |
Tax effects relating to effects of other comprehensive income |
There were no tax effects for the year ended 31 July 2024. |
2023 |
Gross | Tax | Net |
£ | £ | £ |
Share buy-back | (95,779 | ) | - | (95,779 | ) |
8. | Individual statement of comprehensive income |
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. |
LECK GROUP LIMITED (REGISTERED NUMBER: 00206159) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 July 2024 |
9. | Dividends |
2024 | 2023 |
£ | £ |
Ordinary shares of £0.05 each |
Interim | 211,889 | 211,889 |
10. | Tangible fixed assets |
Group |
Freehold | Plant and | Motor |
property | machinery | vehicles | Totals |
£ | £ | £ | £ |
Cost or valuation |
At 1 August 2023 | 90,071 | 474,350 | 481,108 | 1,045,529 |
Additions | - | 32,665 | 101,769 | 134,434 |
Disposals | - | - | (6,750 | ) | (6,750 | ) |
At 31 July 2024 | 90,071 | 507,015 | 576,127 | 1,173,213 |
Depreciation |
At 1 August 2023 | 55,009 | 237,796 | 297,943 | 590,748 |
Charge for year | 1,710 | 54,611 | 82,951 | 139,272 |
Eliminated on disposal | - | - | (6,533 | ) | (6,533 | ) |
At 31 July 2024 | 56,719 | 292,407 | 374,361 | 723,487 |
Net book value |
At 31 July 2024 | 33,352 | 214,608 | 201,766 | 449,726 |
At 31 July 2023 | 35,062 | 236,554 | 183,165 | 454,781 |
Cost or valuation at 31 July 2024 is represented by: |
Freehold | Plant and | Motor |
property | machinery | vehicles | Totals |
£ | £ | £ | £ |
Valuation in 1976 | 16,405 | - | - | 16,405 |
Cost | 73,666 | 507,015 | 576,127 | 1,156,808 |
90,071 | 507,015 | 576,127 | 1,173,213 |
If freehold properties had not been revalued they would have been included at the following historical cost: |
2024 | 2023 |
£ | £ |
Cost | 73,666 | 73,666 |
Aggregate depreciation | 34,937 | 34,937 |
Certain freehold properties were valued on an open market basis on 31 July 1976 by professional valuers . |
The group applied the transitional arrangements of Section 35 of FRS 102 and used a previous valuation as the deemed cost for certain freehold properties. The properties are being depreciated from valuation date. |
LECK GROUP LIMITED (REGISTERED NUMBER: 00206159) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 July 2024 |
11. | Fixed asset investments |
Group |
Listed | Unlisted |
investments | investments | Totals |
£ | £ | £ |
Cost or valuation |
At 1 August 2023 | 45,924 | 3,293 | 49,217 |
Additions | 2,094 | - | 2,094 |
Fair value adjustment | 9,322 | - | 9,322 |
At 31 July 2024 | 57,340 | 3,293 | 60,633 |
Provisions |
At 1 August 2023 |
and 31 July 2024 | - | 2,064 | 2,064 |
Net book value |
At 31 July 2024 | 57,340 | 1,229 | 58,569 |
At 31 July 2023 | 45,924 | 1,229 | 47,153 |
Cost or valuation at 31 July 2024 is represented by: |
Listed | Unlisted |
investments | investments | Totals |
£ | £ | £ |
Valuation in 2024 | 32,441 | - | 32,441 |
Cost | 24,899 | 3,293 | 28,192 |
57,340 | 3,293 | 60,633 |
Listed investments are financial assets measured at fair value through profit and loss. The fair value was determined by reference to the share prices as at 31 July 2024. Unlisted investments are included at cost less impairment as this is not materially different from the fair value. |
Company |
Shares in |
group | Listed | Unlisted |
undertakings | investments | investments | Totals |
£ | £ | £ | £ |
Cost or valuation |
At 1 August 2023 | 332,796 |
Additions | 2,094 |
Fair value adjustment | 9,322 |
At 31 July 2024 | 344,212 |
Provisions |
At 1 August 2023 |
and 31 July 2024 | 117,380 | - | 2,064 | 119,444 |
Net book value |
At 31 July 2024 | 224,768 |
At 31 July 2023 | 213,352 |
LECK GROUP LIMITED (REGISTERED NUMBER: 00206159) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 July 2024 |
11. | Fixed asset investments - continued |
Company |
Cost or valuation at 31 July 2024 is represented by: |
Shares in |
group | Listed | Unlisted |
undertakings | investments | investments | Totals |
£ | £ | £ | £ |
Valuation in 2024 | - | 32,441 | - | 32,441 |
Cost | 284,808 | 24,899 | 2,064 | 311,771 |
284,808 | 57,340 | 2,064 | 344,212 |
Listed investments are financial assets measured at fair value through profit and loss. The fair value was determined by reference to the share prices as at 31 July 2024. Unlisted investments are included at cost less impairment as this is not materially different from the fair value. |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiaries |
Leck Construction Limited |
Registered office: Ironworks Road, Barrow In Furness, LA14 2PQ |
Nature of business: Building contractors and property developers |
% |
Class of shares: | holding |
Ordinary | 100.00 |
2024 | 2023 |
£ | £ |
Aggregate capital and reserves | 809,856 | 763,216 |
Profit for the year | 296,640 | 357,678 |
J A Payne Limited |
Registered office: 80 Deansgate Lane, Timperley, Altrincham, Cheshire, WA14 1SP |
Nature of business: Investment in property and property developers |
% |
Class of shares: | holding |
Ordinary | 100.00 |
2024 | 2023 |
£ | £ |
Aggregate capital and reserves | 2,469,386 | 2,266,524 |
Profit for the year | 352,862 | 266,979 |
Thirlcrest Limited |
Registered office: 80 Deansgate Lane, Timperley, Altrincham, Cheshire, WA14 1SP |
Nature of business: Dormant |
% |
Class of shares: | holding |
Ordinary | 100.00 |
2024 | 2023 |
£ | £ |
Aggregate capital and reserves | 8,250 | 8,250 |
LECK GROUP LIMITED (REGISTERED NUMBER: 00206159) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 July 2024 |
11. | Fixed asset investments - continued |
Handforce Limited |
Registered office: 80 Deansgate Lane, Timperley, Altrincham, Cheshire, WA14 1SP |
Nature of business: Dormant |
% |
Class of shares: | holding |
Ordinary | 100.00 |
2024 | 2023 |
£ | £ |
Aggregate capital and reserves | (38,337 | ) | (38,337 | ) |
John Westall Limited |
Registered office: 80 Deansgate Lane, Timperley, Altrincham, Cheshire, WA14 1SP |
Nature of business: Dormant |
% |
Class of shares: | holding |
Ordinary | 100.00 |
2024 | 2023 |
£ | £ |
Aggregate capital and reserves | 68,414 | 68,414 |
Chaddock Homes Limited |
Registered office: 80 Deansgate Lane, Timperley, Altrincham, Cheshire, WA14 1SP |
Nature of business: Dormant |
% |
Class of shares: | holding |
Ordinary | 100.00 |
2024 | 2023 |
£ | £ |
Aggregate capital and reserves | 100 | 100 |
12. | Investment property |
Group |
Total |
£ |
Fair value |
At 1 August 2023 | 4,901,800 |
Fair value adjustment | 207,895 |
Reclassification/transfer | 586,018 |
At 31 July 2024 | 5,695,713 |
Net book value |
At 31 July 2024 | 5,695,713 |
At 31 July 2023 | 4,901,800 |
The transfer was in regards to a development property, and the associated land, being transferred from stock. |
LECK GROUP LIMITED (REGISTERED NUMBER: 00206159) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 July 2024 |
12. | Investment property - continued |
Group |
Fair value at 31 July 2024 is represented by: |
£ |
Valuation in 2024 | 2,412,522 |
Cost | 3,283,191 |
5,695,713 |
If investment properties had not been revalued they would have been included at the following historical cost: |
2024 | 2023 |
£ | £ |
Cost | 3,283,191 | 2,697,173 |
Aggregate depreciation | (22,539 | ) | (22,539 | ) |
Investment properties were valued on an open market basis on 31 July 2024 by the directors . |
Investment properties consist of freehold property £4,929,800 (2023 - £4,194,800) and long leasehold property £765,913 (2023 - £707,000). |
13. | Stocks |
Group |
2024 | 2023 |
£ | £ |
Raw materials | 1,859 | 1,859 |
Developments | - | 816,237 |
Land | 20,643 | 163,316 |
22,502 | 981,412 |
14. | Debtors |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Amounts falling due within one year: |
Trade debtors | 16,469 | 42,702 |
Amounts owed by group undertakings | - | - |
Amounts recoverable on |
contracts | 2,657,600 | 1,782,732 |
Other debtors | 404,820 | 28,750 |
Directors' current accounts | 2,400 | 2,671 | 2,400 | 2,671 |
Tax | 20,954 | 108,072 |
VAT | - | - |
Prepayments and accrued income | 410,852 | 49,092 |
3,513,095 | 2,014,019 |
LECK GROUP LIMITED (REGISTERED NUMBER: 00206159) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 July 2024 |
14. | Debtors - continued |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Amounts falling due after more than one | year: |
Amounts owed by group undertakings | - | - |
Amounts recoverable on contract | 276,100 | 94,730 |
276,100 | 94,730 |
Aggregate amounts | 3,789,195 | 2,108,749 |
Trade debtors are stated after provisions for bad debts of £9,254 (2023 -£9,034). |
15. | Current asset investments |
Group |
2024 | 2023 |
£ | £ |
Other investments | 6,709 | 6,709 |
Investments consist of cash deposits with financial institutions. |
16. | Creditors: amounts falling due within one year |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Payments on account | 14,118 | 5,564 |
Trade creditors | 2,115,912 | 1,387,300 |
Amounts owed to group undertakings | - | - |
Corporation tax | - | - |
Social security and other taxes | 106,229 | 107,099 |
VAT | 202,704 | 165,145 | - | - |
Other creditors | 683,844 | 639,621 |
Wages control | 9,450 | 9,941 | - | - |
Accruals and deferred income | 1,303,392 | 796,030 |
4,435,649 | 3,110,700 |
Included in trade creditors at year end are contract provisions of £820,944 (2023 - £340,506). |
17. | Creditors: amounts falling due after more than one year |
Group |
2024 | 2023 |
£ | £ |
Accruals and deferred income | 90,830 | 116,857 |
LECK GROUP LIMITED (REGISTERED NUMBER: 00206159) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 July 2024 |
18. | Provisions for liabilities |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Deferred tax |
Fair value adjustments | 282,500 | 262,200 | 5,500 | 3,200 |
Other timing differences | 59,144 | 65,229 | - | - |
341,644 | 327,429 | 5,500 | 3,200 |
Other provisions | 37,760 | 37,760 | - | - |
Aggregate amounts | 379,404 | 365,189 | 5,500 | 3,200 |
Group |
Deferred | Other |
tax | provisions |
£ | £ |
Balance at 1 August 2023 | 327,429 | 37,760 |
Provided during year | 14,215 | - |
Balance at 31 July 2024 | 341,644 | 37,760 |
Company |
Deferred |
tax |
£ |
Balance at 1 August 2023 |
Charge to Income Statement during year |
Balance at 31 July 2024 |
Other provisions represent the estimated cost of completing a road prior to adoption by the local authority. |
19. | Called up share capital |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2024 | 2023 |
value: | £ | £ |
Ordinary | £0.05 | 52,491 | 52,491 |
LECK GROUP LIMITED (REGISTERED NUMBER: 00206159) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 July 2024 |
20. | Reserves |
Group |
Fair |
Retained | Other | value |
earnings | reserves | reserve | Totals |
£ | £ | £ | £ |
At 1 August 2023 | 8,199,054 | 64,646 | 2,221,376 | 10,485,076 |
Profit for the year | 635,342 | - | - | 635,342 |
Dividends | (211,889 | ) | - | - | (211,889 | ) |
Fair value transfer | (217,217 | ) | - | 217,217 | - |
Deferred tax | 21,800 | - | (21,800 | ) | - |
At 31 July 2024 | 8,427,090 | 64,646 | 2,416,793 | 10,908,529 |
Company |
Fair |
Retained | Other | value |
earnings | reserves | reserve | Totals |
£ | £ | £ | £ |
At 1 August 2023 | 7,553,048 |
Profit for the year | - | - |
Dividends | ( |
) | - | - | ( |
) |
Fair value transfer | (9,322 | ) | - | 9,322 | - |
Deferred tax | 2,300 | - | (2,300 | ) | - |
At 31 July 2024 | 7,726,999 |
Group |
The other reserves relates to: |
Capital redemption reserve |
£ |
Balance at 1 August 2023 and 31 July 2024 | 62,508 |
Discount arising on acquisition of subsidiary |
£ |
Balance at 1 August 2023 and 31 July 2024 | 2,138 |
The cumulative amount of goodwill written off amounts to £81,103 (2023 - £81,103). |
Company |
The other reserves relates to: |
Capital redemption reserve |
£ |
Balance at 1 August 2023 and 31 July 2024 | 62,508 |
Acquisition reserve arising from allotment of shares under Section 131 Companies Act 1985 |
£ |
Balance at 1 August 2023 and 31 July 2024 | 4,000 |
LECK GROUP LIMITED (REGISTERED NUMBER: 00206159) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 July 2024 |
21. | Pension commitments |
The company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost charge represents contributions payable by the company to the fund and amount to £203,417 (2023: £268,643). |
Contributions totalling £93,671 (2023: £291,661) were payable to the fund at the balance sheet date. |
22. | Contingent liabilities |
The group has contingent liabilities in respect of contract bonds which at 31 July 2024 amounted to £136,392 (2023: £296,438). |
23. | Directors' advances, credits and guarantees |
The following advances and credits to directors subsisted during the years ended 31July 2024 and 31 July 2023: |
2024 | 2023 |
£ | £ |
Balance outstanding at the start of year | 2,671 | 271 |
Amounts advanced | - | 2,400 |
Amounts repaid | (271 | ) | - |
Balance outstanding at the end of the year | 2,400 | 2,671 |
The above loan is interest free and repayable on demand. |
During the year the directors received dividends of £209,578 (2023 - £209,578). |
24. | Related party disclosures |
Key Management Personnel are considered to be the directors of the company and their remuneration is disclosed in note 5. |
25. | Ultimate controlling party |
The company is controlled by V and C M Barker, both of whom are directors of the company, and who own 89% of the share capital. |