Company Registration No. 03231785 (England and Wales)
LIFEPLUS EUROPE LIMITED
CONSOLIDATED ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
LIFEPLUS EUROPE LIMITED
COMPANY INFORMATION
Directors
R E Christian
R J Cesarski
W J Evans
B Nelson-Beer
(Appointed 31 October 2024)
C Page
(Appointed 31 October 2024)
Secretary
R J Christian
Company number
03231785
Registered office
Lifeplus House
Little End Road
Eaton Socon
St Neots
Cambs
PE19 8JH
Auditor
TC Audit Limited
Suite 501
The Nexus Building
Broadway
Letchworth Garden City
Herts
SG6 9BL
Bankers
Bank of America, N.A.
PO Box 407
5 Canada Square
London
E14 4AQ
LIFEPLUS EUROPE LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 5
Directors' responsibilities statement
6
Independent auditor's report
Group income statement
10
Group statement of comprehensive income
11
Group statement of financial position
12
Company statement of financial position
13
Group statement of changes in equity
14
Company statement of changes in equity
15
Group statement of cash flows
16
Company statement of cash flows
17
Notes to the financial statements
18 - 34
LIFEPLUS EUROPE LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 1 -
The directors present the strategic report for the year ended 31 December 2024.
Review of the business
The directors are pleased to report another profitable year. Turnover has increased and benefitted from the introduction of Lifeplus Next and on-line shops.
The group has been proactive in putting in place measures to ensure the business is sufficiently robust to cope with changes that are happening throughout the world.
The directors, in accordance with their duties in law, act in a way they consider, in good faith, would be most likely to promote the success of Lifeplus Europe Limited for the benefit of its members, whilst having regard to the group’s stakeholders:
The Netherlands warehouse is a fully operational Customs Warehouse and the continual scanning of shipping opportunities ensure customers in Europe continue to receive the high level of service they expect;
Supplies are sourced locally where possible, to support local economies and reduce the environmental impact; and
Hybrid working practices are in place, allowing flexibility and employees the freedom to decide how they work best.
The group's main KPI is operating profit. The price of products supplied by the parent company is reviewed at various points and moderated in line with market conditions. As a result, the net profit margin achieved by the group has decreased this year at 1.6% (2023: 3.2%). Profit before taxation of £3.5m (2023: £6.5m) has been reported for the year. Excluding the one-time cost related to business restructuring in 2024, the profit before taxation would have been £5.2m.
The group considers itself financially stable and well positioned to meet business challenges as they arise.
Principal risks and uncertainties
The management and control of risks for the group is embedded within basic operating procedures. These procedures comprise a range of measures including monthly reporting and continuous monitoring by senior management.
The directors are satisfied that the group’s exposure to risk from interest rates, liquidity, credit and foreign exchange are adequately managed and mitigated. The group uses financial instruments to mitigate their foreign exchange risk.
Section 172 Statement
Section 172 (1) of the Companies Act 2006 obliges the Directors to promote the success of the Company for the benefit of the Company’s members as a whole.
The section specifies that the Directors must act in good faith, when promoting the success of the Company and in doing so have regard (amongst other things) to:
the likely consequences of any decision in the long term,
the interests of the Company’s employees,
the need to foster the Company’s business relationship with suppliers, customers and others,
the impact of the Company’s operations on the community and environment,
the desirability of the Company maintaining a reputation for high standards of business conduct, and
the need to act fairly as between members of the Company.
The directors, in accordance with their duties in law, act in a way they consider, in good faith, would be most likely to promote the success of Lifeplus Europe Limited for the benefit of its members, whilst having regard to the company’s stakeholders.
LIFEPLUS EUROPE LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 2 -
R J Cesarski
Director
15 April 2025
LIFEPLUS EUROPE LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 3 -
The directors present their annual report and group financial statements for the year ended 31 December 2024.
Principal activities
The principal activity of the group continued to be that of the sale of nutritional health supplements.
Results and dividends
The results for the year are set out on page 10.
Dividends amounting to £4,500,000 was declared and paid in respect of the results of the year ended 31 December 2023.
In February 2025, a post year end interim dividend of £3,000,000 was declared and paid in respect of the results of the year ended 31 December 2024.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
R E Christian
R J Cesarski
F Newton III
(Resigned 31 October 2024)
M J Vincent
(Resigned 31 October 2024)
W J Evans
B Nelson-Beer
(Appointed 31 October 2024)
C Page
(Appointed 31 October 2024)
Financial instruments
Foreign currency risk
The company's sales and purchases are settled in different currencies. To mitigate the risk of exposure to the foreign exchange risk the group enters into forward contract arrangements. These have been included within these financial statements in accordance with FRS102.
Credit risk
Investments of cash surpluses, borrowings and derivative instruments are made through banks and companies which must fulfil credit rating criteria approved by the Board.
No customers are traded with on credit terms.
Disabled persons
Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the group continues and that the appropriate training is arranged. It is the policy of the group that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.
Employee involvement
The group's policy is to consult and discuss with employees, staff councils and at meetings, matters likely to affect employees' interests.
Information of matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the group's performance.
LIFEPLUS EUROPE LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 4 -
Future developments
The company plans to focus on supporting existing markets in the coming year and also exploring new products to achieve further growth in 2025 and beyond.
Auditor
The auditor, TC Audit Limited, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
TC Audit Limited has signified its willingness to continue in office as auditor.
Energy and carbon report
Under the Companies (Directors' report) and Limited Liability Partnerships (Energy and Carbon Report) Regulations 2018, we are required to disclose our UK energy use and associated greenhouse gas (GHG) emissions. Specifically, we are required to report these GHG emissions relating to natural gas, electricity and transport fuel.
The Streamlined Energy and Carbon Reporting included in this report covers the year ended 31 December 2024 and relates entirely to the parent company .
2024
2023
Energy consumption
kWh
kWh
- Gas combustion
12,079
613,722
- Electricity purchased
432,732
589,063
- Fuel consumed for transport
10,056
16,151
454,867
1,218,936
2024
2023
Emissions of CO2 equivalent
Metric tonnes
Metric tonnes
Scope 1 - direct emissions
- Gas combustion
2.20
112.30
- Fuel consumed for owned transport
1.30
1.50
3.50
113.80
Scope 2 - indirect emissions
- Electricity purchased
90.00
122.40
Scope 3 - other indirect emissions
- Fuel consumed for transport not owned by the company
0.80
2.40
Total gross emissions
94.30
238.60
Intensity ratio
Tonnes CO2e per m2 of floor area
0.0086
0.0218
Quantification and reporting methodology
The company has followed the 2019 HM Government Environmental Reporting Guidelines. The company has also used the GHG Reporting Protocol – Corporate Standard and have used the 2020 UK Government’s Conversion Factors for Company Reporting
LIFEPLUS EUROPE LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 5 -
Intensity measurement
The chosen intensity measurement ratio is based on the internal area in square meters. This being tCO2/m2/year.
Transport emissions
The information surrounding transport is incomplete resulting in us being unable to report on the transport emissions.
Measures taken to improve energy efficiency
Operations have been streamlined by vacating Priory Point and Keppel House. This has seen a reduction in grey fleet mileage and company vehicles, traveling between these buildings. Other measures taken to improve energy efficiency include:
The closure of Priory Point has seen a big reduction in gas used by the company;
80% of the heating controls have been reprogrammed to ensure more efficient use;
All lighting in Lifeplus House and Apartments have been changed to LEDs which will lead to reduced electricity consumption; and
Hybrid working makes it possible for employees to work from home reducing daily commuting to and from work.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.
On behalf of the board
R J Cesarski
Director
15 April 2025
LIFEPLUS EUROPE LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 6 -
The directors are responsible for preparing the Annual Report and the group 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 group financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the group and company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
LIFEPLUS EUROPE LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF LIFEPLUS EUROPE LIMITED
- 7 -
Opinion
We have audited the financial statements of Lifeplus Europe Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2024 which comprise the group income statement, the group statement of comprehensive income, the group statement of financial position, the company statement of financial position, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows, the company statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including 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 the parent company's affairs as at 31 December 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.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
The information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
The strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
LIFEPLUS EUROPE LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF LIFEPLUS EUROPE LIMITED
- 8 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent company financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the parent company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
Irregularities including Fraud
Based on our understanding of the group and the industry in which it operates, we identified that the principal risks of non-compliance with laws and regulations related to the acts by the group, which were contrary to applicable laws and regulations including fraud, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006. We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to inflated revenue and profit.
Audit procedures performed included: review of the financial statement disclosures to underlying supporting documentation, review of correspondence with and reports to the regulators, enquiries of management, and testing of journals and evaluating whether there was evidence of bias by the Directors that represented a risk of material misstatement due to fraud.
There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
LIFEPLUS EUROPE LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF LIFEPLUS EUROPE LIMITED
- 9 -
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 an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
Peter Woodhall FCA (Senior Statutory Auditor)
For and on behalf of TC Audit Limited, Statutory Auditor
30 April 2025
Suite 501
The Nexus Building
Broadway
Letchworth Garden City
Herts
SG6 9BL
LIFEPLUS EUROPE LIMITED
GROUP INCOME STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 10 -
2024
2023
Notes
£
£
Revenue
4
167,117,837
152,946,391
Cost of sales
(59,142,630)
(48,488,679)
Gross profit
107,975,207
104,457,712
Distribution costs
(94,208,003)
(88,121,798)
Administrative expenses
(8,577,138)
(9,804,485)
Other operating income
52
-
Exceptional costs
3
(1,676,656)
Operating profit
5
3,513,462
6,531,429
Investment income
9
8,909
132
Profit before taxation
3,522,371
6,531,561
Tax on profit
10
(777,060)
(1,641,798)
Profit for the financial year
2,745,311
4,889,763
Profit for the financial year is all attributable to the owners of the parent company.
The income statement has been prepared on the basis that all operations are continuing operations.
LIFEPLUS EUROPE LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
- 11 -
2024
2023
£
£
Profit for the year
2,745,311
4,889,763
Other comprehensive income
Currency translation differences
(1,062)
276
Cash flow hedge movement
22
873,905
(1,647,080)
Deferred tax relating to unrealised losses on hedging
22
(218,476)
383,383
Other comprehensive income for the year
654,367
(1,263,421)
Total comprehensive income for the year
3,399,678
3,626,342
Total comprehensive income for the year is all attributable to the owners of the parent company.
LIFEPLUS EUROPE LIMITED
GROUP STATEMENT OF FINANCIAL POSITION
AS AT
31 DECEMBER 2024
31 December 2024
31 December 2024
- 12 -
2024
2023
Notes
£
£
£
£
Fixed assets
Property, plant and equipment
12
1,475,389
1,701,248
Current assets
Inventories
16
19,659,904
15,914,007
Trade and other receivables
17
6,241,640
9,690,337
Cash at bank and in hand
3,918,633
4,929,620
29,820,177
30,533,964
Current liabilities
18
(12,008,928)
(12,016,439)
Net current assets
17,811,249
18,517,525
Total assets less current liabilities
19,286,638
20,218,773
Provisions for liabilities
20
(371,205)
(203,018)
Net assets
18,915,433
20,015,755
Equity
Called up share capital
21
1,000
1,000
Foreign currency reserve on consolidation
22,600
22,600
Hedging reserve
22
382,899
(272,530)
Retained earnings
18,508,934
20,264,685
Total equity
18,915,433
20,015,755
The financial statements were approved by the board of directors and authorised for issue on 15 April 2025 and are signed on its behalf by:
15 April 2025
R E Christian
R J Cesarski
Director
Director
LIFEPLUS EUROPE LIMITED
COMPANY STATEMENT OF FINANCIAL POSITION
AS AT
31 DECEMBER 2024
31 December 2024
31 December 2024
- 13 -
2024
2023
Notes
£
£
£
£
Fixed assets
Property, plant and equipment
12
1,475,389
1,701,248
Investments
13
8,439
8,439
1,483,828
1,709,687
Current assets
Inventories
16
19,659,904
15,914,007
Trade and other receivables
17
6,184,880
9,688,991
Cash at bank and in hand
3,841,526
4,835,917
29,686,310
30,438,915
Current liabilities
18
(11,911,113)
(11,932,138)
Net current assets
17,775,197
18,506,777
Total assets less current liabilities
19,259,025
20,216,464
Provisions for liabilities
20
(371,205)
(203,018)
Net assets
18,887,820
20,013,446
Equity
Called up share capital
21
1,000
1,000
Hedging reserve
22
382,899
(272,530)
Retained earnings
18,503,921
20,284,976
Total equity
18,887,820
20,013,446
As permitted by s408 Companies Act 2006, the company has not presented its own income statement and related notes. The company’s profit for the year was £2,722,322 (2023: 4,888,680 profit).
The financial statements were approved by the board of directors and authorised for issue on 15 April 2025 and are signed on its behalf by:
15 April 2025
R E Christian
R J Cesarski
Director
Director
Company Registration No. 03231785
LIFEPLUS EUROPE LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
- 14 -
Share capital
Hedging reserve
Foreign currency reserve on consolidation
Retained earnings
Total
Notes
£
£
£
£
£
Balance at 1 January 2023
1,000
991,167
22,604
17,874,646
18,889,417
Year ended 31 December 2023:
Profit for the year
-
-
-
4,889,763
4,889,763
Other comprehensive income:
Currency translation differences
-
-
-
276
276
Cash flow hedges losses
-
(1,647,080)
-
-
(1,647,080)
Tax relating to other comprehensive income
-
383,383
-
383,383
Total comprehensive income for the year
-
(1,263,697)
-
4,890,039
3,626,342
Dividends
11
-
-
-
(2,500,000)
(2,500,000)
Other movements
-
-
(4)
-
(4)
Balance at 31 December 2023
1,000
(272,530)
22,600
20,264,685
20,015,755
Year ended 31 December 2024:
Profit for the year
-
-
-
2,745,311
2,745,311
Other comprehensive income:
Currency translation differences on overseas subsidiaries
-
-
-
(1,062)
(1,062)
Cash flow hedges gains
-
873,905
-
-
873,905
Tax relating to other comprehensive income
-
(218,476)
-
(218,476)
Total comprehensive income for the year
-
655,429
-
2,744,249
3,399,678
Dividends
11
-
-
-
(4,500,000)
(4,500,000)
Balance at 31 December 2024
1,000
382,899
22,600
18,508,934
18,915,433
LIFEPLUS EUROPE LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
- 15 -
Share capital
Hedging reserve
Retained earnings
Total
Notes
£
£
£
£
Balance at 1 January 2023
1,000
991,167
17,900,664
18,892,831
Year ended 31 December 2023:
Profit for the year
-
-
4,884,312
4,884,312
Other comprehensive income:
Cash flow hedges losses
-
(1,647,080)
-
(1,647,080)
Tax relating to other comprehensive income
-
383,383
383,383
Total comprehensive income for the year
-
(1,263,697)
4,884,312
3,620,615
Dividends
11
-
-
(2,500,000)
(2,500,000)
Balance at 31 December 2023
1,000
(272,530)
20,284,976
20,013,446
Year ended 31 December 2024:
Profit for the year
-
-
2,718,945
2,718,945
Other comprehensive income:
Cash flow hedges gains
-
873,905
-
873,905
Tax relating to other comprehensive income
-
(218,476)
(218,476)
Total comprehensive income for the year
-
655,429
2,718,945
3,374,374
Dividends
11
-
-
(4,500,000)
(4,500,000)
Balance at 31 December 2024
1,000
382,899
18,503,921
18,887,820
LIFEPLUS EUROPE LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 16 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
27
5,565,579
3,156,890
Income taxes paid
(1,710,620)
(765,565)
Net cash inflow from operating activities
3,854,959
2,391,325
Investing activities
Purchase of property, plant and equipment
(402,910)
(267,612)
Proceeds on disposal of property, plant and equipment
29,118
1,874
Interest received
8,909
132
Net cash used in investing activities
(364,883)
(265,606)
Financing activities
Dividends paid to equity shareholders
(4,500,000)
(2,500,000)
Net cash used in financing activities
(4,500,000)
(2,500,000)
Net decrease in cash and cash equivalents
(1,009,924)
(374,281)
Cash and cash equivalents at beginning of year
4,929,620
5,303,629
Effect of foreign exchange rates
(1,063)
272
Cash and cash equivalents at end of year
3,918,633
4,929,620
LIFEPLUS EUROPE LIMITED
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 17 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
28
5,566,949
3,170,836
Income taxes paid
(1,696,100)
(750,766)
Net cash inflow from operating activities
3,870,849
2,420,070
Investing activities
Purchase of property, plant and equipment
(402,910)
(267,612)
Proceeds on disposal of property, plant and equipment
29,118
1,874
Interest received
8,553
132
Net cash used in investing activities
(365,239)
(265,606)
Financing activities
Dividends paid to equity shareholders
(4,500,000)
(2,500,000)
Net cash used in financing activities
(4,500,000)
(2,500,000)
Net decrease in cash and cash equivalents
(994,390)
(345,536)
Cash and cash equivalents at beginning of year
4,835,917
5,181,453
Cash and cash equivalents at end of year
3,841,526
4,835,917
LIFEPLUS EUROPE LIMITED
COMPANY STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 18 -
1
Judgements and key sources of estimation uncertainty
In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Diamond cruise accrual
This is an accrual based on the estimated costs of the company's "Diamond Event" for the diamond delegates. This is an event which takes place every year for which costs are accrued. The accrual in itself is a highly estimated figure and is calculated based on what Eurark LLC estimates the total costs of the future event to be. The estimation lies in predicting what the future cost of the event will be for each delegate as well predicting the number of delegates expected to be in attendance.
2
Accounting policies
Company information
Lifeplus Europe Limited ("the Company") is a Limited Company domiciled and incorporated in England and Wales. The registered office is Lifeplus House, Little End Road, Eaton Socon, St Neots, Cambs, PE19 8JH.
2.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
2.2
Basis of consolidation
In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. As the subsidiary was purchased by the parent on incorporation there is no excess cost over the fair value of the identifiable assets, liabilities and contingent liabilities, therefore no goodwill is recognised.
LIFEPLUS EUROPE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2
Accounting policies
(Continued)
- 19 -
The consolidated financial statements incorporate those of Lifeplus Europe Limited and all of its subsidiaries (ie entities that the group controls through its power to govern the financial and operating policies so as to obtain economic benefits). Subsidiaries acquired during the year are consolidated using the purchase method. Their results are incorporated from the date that control passes.
All financial statements are made up to 31 December 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
2.3
Going concern
At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
2.4
Revenue
Turnover represents amounts receivable for goods and services net of VAT, trade discounts and sales returns. Sales are recognised at the point when goods are dispatched to customers.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
2.5
Property, plant and equipment
Property, plant and equipment are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:
Leasehold buildings
Over the lease term and 25% straight line
Plant and machinery
10% - 33% straight line
Fixtures, fittings & equipment
10% - 33% straight line
Motor vehicles
16.33% - 33% reducing balance
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the income statement.
It is the policy of the company not to provide depreciation on land & some of the buildings, this is a departure from the Companies Act 2006. The property is maintained to a high standard and the director considers that the life of the property is so long and that the residual value is so great that depreciation is not considered material.
2.6
Non-current investments
Interests in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
LIFEPLUS EUROPE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
2
Accounting policies
(Continued)
- 20 -
A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
2.7
Impairment of non-current assets
At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
2.8
Inventories
Inventories are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is defined as purchase invoice cost and any landed costs. Cost is determined on the first-in, first-out (FIFO) method.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of inventories over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
2.9
Cash and cash equivalents
Cash and cash equivalents include cash in hand and deposits held at call with banks.
2.10
Financial instruments
The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the group's statement of financial position when the group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include trade and other receivables and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
LIFEPLUS EUROPE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
2
Accounting policies
(Continued)
- 21 -
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Trade receivables , loans and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as 'loans and receivables'. Loans and receivables are measured at amortised cost using the effective interest method, less any impairment.
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.
Basic financial liabilities, including trade and other payables, bank loans 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 payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
LIFEPLUS EUROPE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
2
Accounting policies
(Continued)
- 22 -
Other financial liabilities
Derivatives, including forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.
2.11
Equity instruments
Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.
2.12
Derivatives
The company enters into foreign exchange forward contracts in order to manage its exposure to foreign exchange risk.
Hedge accounting
The Company designates certain hedging instruments, including derivatives, embedded derivatives and non-derivatives, as either fair value hedges or cash flow hedges.
At the inception of the hedge relationship, the company documents the relationship between the hedging instrument and the hedged item along with risk management objectives and strategy for undertaking various hedge transactions. At the inception of the hedge and on an ongoing basis, the company documents whether the hedging instrument is highly effective in offsetting changes in fair values or cash flows of the hedged item.
Cash flow hedges
The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow hedges is recognised in other comprehensive income.
The gain or loss relating to the ineffective portion is recognised immediately in profit or loss, and is included in the 'other gains and losses' line in this item.
Amounts previously recognised in other comprehensive income and accumulated in equity are reclassified to profit or loss in the periods when the hedged item is recognised in the profit or loss in the same line as of the income statement as the recognised hedged item. However when the forecast transaction that is hedged results in the recognition of a non-financial asset or liability, the gains and losses previously accumulated in equity are transferred from equity and included in the initial measurement of the cost of the asset or liability concerned.
2.13
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
LIFEPLUS EUROPE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
2
Accounting policies
(Continued)
- 23 -
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
2.14
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or non-current assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
2.15
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
2.16
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.
2.17
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
2.18
Exceptional items are those of significant size and of a non-recurring nature that require disclosure in order that the underlying business performance can be identified. The exceptional costs in these financial statements included redundancy costs and costs of exiting the Priory Point lease.
LIFEPLUS EUROPE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 24 -
3
Exceptional costs
2024
2023
£
£
Exceptional costs
1,676,656
-
Exceptional costs reported within these financial statements total £1,676,656 (2023: £nil). Additional information on these costs can be found in Note 1 within these financial statements.
4
Revenue
An analysis of the group's revenue is as follows:
2024
2023
£
£
Revenue analysed by class of business
Sale of nutritional health supplements
167,117,837
152,946,391
2024
2023
£
£
Other revenue
Interest income
8,909
132
2024
2023
£
£
Revenue analysed by geographical market
Europe
166,481,001
152,213,449
Worldwide
101,898
103,902
UK
534,938
629,040
167,117,837
152,946,391
5
Operating profit
2024
2023
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange losses
53,810
232,009
Depreciation of property, plant and equipment
556,725
561,540
Loss/(profit) on disposal of property, plant and equipment
42,926
(1,512)
Operating lease charges
657,038
1,213,897
LIFEPLUS EUROPE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 25 -
6
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
60,500
59,000
For other services
All other non-audit services
5,000
4,500
7
Employees
The average monthly number of persons (including directors) employed by the group and company during the year was:
Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
Admin
74
68
74
68
Sales and Marketing
178
196
178
196
Distribution
22
31
22
31
274
295
274
295
Their aggregate remuneration comprised:
Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
10,079,997
10,344,809
10,079,997
10,344,809
Social security costs
1,022,182
993,494
1,022,182
993,494
Pension costs
477,916
493,809
477,916
493,809
11,580,095
11,832,112
11,580,095
11,832,112
All employees are employed through the parent company. There are no employees within the subsidiary company.
8
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
197,499
138,107
Company pension contributions to defined contribution schemes
13,400
12,000
210,899
150,107
LIFEPLUS EUROPE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 26 -
9
Investment income
2024
2023
£
£
Interest income
Interest on bank deposits
356
Other interest income
8,553
132
Total income
8,909
132
10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
940,558
1,644,974
Adjustments in respect of prior periods
(123,875)
Total UK current tax
816,683
1,644,974
Foreign current tax on profits for the current period
10,665
20,557
Total current tax
827,348
1,665,531
Deferred tax
Origination and reversal of timing differences
(50,288)
(23,733)
Total tax charge
777,060
1,641,798
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2024
2023
£
£
Profit before taxation
3,522,371
6,531,561
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 23.52%)
880,593
1,536,223
Tax effect of expenses that are not deductible in determining taxable profit
3,960
68,330
Effect of overseas tax rates
1,407
14,440
Amount of deferred tax expense relating to capital allowances
14,975
22,805
Allocation of tax credits in relation to prior year
(123,875)
Taxation charge
777,060
1,641,798
LIFEPLUS EUROPE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
10
Taxation
(Continued)
- 27 -
In addition to the amount charged to the income statement, the following amounts relating to tax have been recognised directly in other comprehensive income:
2024
2023
£
£
Deferred tax arising on:
Revaluation of financial instruments treated as cash flow hedges
218,476
(383,383)
There is no tax charged on the cash flow hedges accounted for through other comprehensive income. We have applied the Disregard Regulations under Regulation 6A to apply the computational rules in regulations 7, 8, and 9, and as such any gains and losses are taxed in the year that they are realised.
11
Dividends
2024
2023
Recognised as distributions to equity holders:
£
£
Interim paid
4,500,000
2,500,000
12
Property, plant and equipment
Group and company
Leasehold buildings
Plant and machinery
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 January 2024
3,571,154
1,190,182
1,566,381
17,525
6,345,242
Additions
71,627
8,143
323,140
402,910
Disposals
(1,213,158)
(412,612)
(34,647)
(17,525)
(1,677,942)
At 31 December 2024
2,429,623
785,713
1,854,874
5,070,210
Depreciation and impairment
At 1 January 2024
2,416,213
825,815
1,384,441
17,525
4,643,994
Depreciation charged in the year
283,815
127,577
145,333
556,725
Eliminated in respect of disposals
(1,179,134)
(381,593)
(27,646)
(17,525)
(1,605,898)
At 31 December 2024
1,520,894
571,799
1,502,128
3,594,821
Carrying amount
At 31 December 2024
908,729
213,914
352,746
1,475,389
At 31 December 2023
1,154,941
364,367
181,940
1,701,248
All tangible fixed assets are held and owned by the parent company. The subsidiary company does not own any tangible fixed assets.
LIFEPLUS EUROPE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 28 -
13
Fixed asset investments
Company
2024
2023
Notes
£
£
Investments in subsidiaries
14
8,439
8,439
8,439
8,439
The subsidiary company does not hold any fixed asset investments. At group level, no fixed asset investments are held.
14
Subsidiaries
Details of the company's subsidiaries at 31 December 2024 are as follows:
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Lifeplus Italia Srl
Italy
Ordinary
100.00
Lifeplus Limited
England
Ordinary
100.00
The investments in subsidiaries are all stated at cost, less any impairment
15
Financial instruments
Group
Company
2024
2023
2024
2023
£
£
£
£
Carrying amount of financial assets
Instruments measured at fair value through other comprehensive income
510,531
-
510,531
-
Carrying amount of financial liabilities
Measured at fair value through other comprehensive income
- Other financial liabilities
-
363,374
-
363,374
16
Inventories
Group
Company
2024
2023
2024
2023
£
£
£
£
Finished goods and goods for resale
19,659,904
15,914,007
19,659,904
15,914,007
All stock is held and owned by the parent company.
LIFEPLUS EUROPE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 29 -
17
Trade and other receivables
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade receivables
41,403
19,338
Amount due from parent undertaking
1,767,791
4,569,505
1,767,791
4,569,505
Amounts due from subsidiary undertakings
10,922
30,155
Derivative financial instruments
510,531
-
510,531
-
Other receivables
700,694
317,477
674,415
305,314
Prepayments and accrued income
3,221,221
4,784,017
3,221,221
4,784,017
6,241,640
9,690,337
6,184,880
9,688,991
18
Current liabilities
Group
Company
2024
2023
2024
2023
£
£
£
£
Trade payables
723,151
558,214
710,827
558,214
Amounts due to group undertakings
147,794
198,757
147,794
198,757
Corporation tax payable
123,178
1,006,449
140,558
1,019,974
Other taxation and social security
366,124
327,529
329,330
292,379
Derivative financial instruments
363,374
363,374
Other payables
164,333
101,394
164,329
101,394
Accruals and deferred income
10,484,348
9,460,722
10,418,275
9,398,046
12,008,928
12,016,439
11,911,113
11,932,138
19
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
477,916
493,809
A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.
LIFEPLUS EUROPE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 30 -
20
Deferred taxation
Liabilities
Liabilities
2024
2023
Group
£
£
Accelerated capital allowances
284,655
315,621
Other timing differences
(41,083)
(21,760)
Unrealised hedging gains
127,633
(90,843)
371,205
203,018
Liabilities
Liabilities
2024
2023
Company
£
£
Accelerated capital allowances
284,655
315,621
Other timing differences
(41,083)
(21,760)
Unrealised hedging gains
127,633
(90,843)
371,205
203,018
Group
Company
2024
2024
Movements in the year:
£
£
Liability at 1 January 2024
203,018
203,018
Credit to profit or loss
(50,289)
(50,289)
Charge to other comprehensive income
218,476
218,476
Liability at 31 December 2024
371,205
371,205
The above deferred tax liability and movement relates entirely to the parent company.
21
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
1,000
1,000
1,000
1,000
LIFEPLUS EUROPE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 31 -
22
Hedging reserve
The company pays for goods and receives money from its customers in different currencies. To mitigate the risk of fluctuations in the exchange rate movement and hence the company’s exposure to this risk, they enter into forward contracts with their bank. The contracts that are entered into are designated as cash flow hedging arrangements under FRS102.
The majority of the cash flow hedges relating to the previous year were all exercised within the year ended 31 December 2024. The movement in the hedging reserve has been recognised through other comprehensive income. The contracts open at the balance sheet date are expected to crystallise in the years ended 31 December 2025 and 31 December 2026.
The contracts that are held at 31 December 2024 have been valued at fair value by the company’s bank.
The contracts entered into are continuous on the basis that the cash flow is continuously affected by foreign exchange rate movements. Each year the company realises foreign exchange rate gains/losses as a result.
See Statement of Changes in Equity for full movements.
23
Financial commitments, guarantees and contingent liabilities
There is currently an open corporation tax enquiry raised by HMRC specifically in relation to the company’s accounts for the year ended 31 December 2014 and subsequent years. The open matter concerns the transfer pricing arrangements between the company and its parent, Eurark LLC.
The Directors are firmly of the view that the interactions between the company and its parent are undertaken on commercial terms and that those terms are properly supported by comprehensive market based studies undertaken on a regular basis in order to inform the decisions surrounding the pricing between the two companies. Despite the Directors' views, the outcome of the enquiry cannot be reasonably estimated at this juncture and it is likely that, in the event of HMRC finding that transfer pricing profits for corporation tax purposes should be imputed in respect of the years under review, then that assessment will be extended to cover subsequent years up to and including the balance sheet date.
No provision is made in respect of this matter.
24
Operating lease commitments
Lessee
Operating lease payments represent rentals payable by the company for certain properties and equipment.
At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
Group
Company
2024
2023
2024
2023
£
£
£
£
Within one year
698,231
1,027,237
698,231
1,027,237
Between two and five years
2,017,168
767,465
2,017,168
767,465
2,715,399
1,794,702
2,715,399
1,794,702
The subsidiary company does not have any operating lease commitments to disclose.
LIFEPLUS EUROPE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 32 -
25
Related party transactions
Remuneration of key management personnel
The remuneration of key management personnel, who include directors and non directors, is as follows.
2024
2023
£
£
Aggregate compensation
462,104
325,382
Under FRS102 section 33.6, key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the entity, directly or indirectly, including any director of the entity.
Transactions with related parties
Purchases
2024
2023
£
£
Eurark LLC
44,542,277
33,851,435
Lifeplus Netherlands B.V.
3,753,151
3,384,186
Services received and recharges
2024
2023
£
£
Eurark LLC
5,912,085
5,047,918
The following amounts were outstanding at the reporting end date:
Amounts due to related parties
2024
2023
£
£
Lifeplus Netherlands B.V.
145,434
182,153
Lifeplus Italia Srl has applied the exemption within FRS102 section 33.1A not to disclose transactions with Eurark LLC, on the basis that it is a wholly owned subsidiary.
The following amounts were outstanding at the reporting end date:
Amounts due from related parties
2024
2023
Balance
Balance
£
£
Eurark LLC
1,767,791
4,569,505
Lifeplus Italia Srl
10,922
30,155
LIFEPLUS EUROPE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
25
Related party transactions
(Continued)
- 33 -
The company has applied the exemption within FRS102 section 33.1A not to disclose transactions with Lifeplus Italia Srl, on the basis that it is a wholly owned subsidiary.
26
Controlling party
The ultimate controlling party of Lifeplus Europe Limited is Eurark LLC, a Limited Liability Company, incorporated in the United States of America, whose registered address is 50 Industrial Drive, Batesville, AR 72501, USA.
27
Cash generated from group operations
2024
2023
£
£
Profit after taxation
2,745,311
4,889,765
Adjustments for:
Taxation charged
777,060
1,641,798
Investment income
(8,909)
(132)
Loss/(gain) on disposal of property, plant and equipment
42,927
(1,512)
Depreciation and impairment of property, plant and equipment
556,725
561,540
Movements in working capital:
(Increase)/decrease in inventories
(3,745,897)
922,724
Decrease/(increase) in trade and other receivables
3,959,228
(4,316,644)
Increase/(decrease) in trade and other payables
1,239,134
(540,649)
Cash generated from operations
5,565,579
3,156,890
28
Cash generated from operations - company
2024
2023
£
£
Profit after taxation
2,718,945
4,884,314
Adjustments for:
Taxation charged
766,395
1,621,241
Investment income
(8,553)
(132)
Loss/(gain) on disposal of property, plant and equipment
42,927
(1,512)
Depreciation and impairment of property, plant and equipment
556,725
561,540
Movements in working capital:
(Increase)/decrease in inventories
(3,745,897)
922,724
Decrease/(increase) in trade and other receivables
4,014,642
(4,298,349)
Increase/(decrease) in trade and other payables
1,221,765
(518,990)
Cash generated from operations
5,566,949
3,170,836
LIFEPLUS EUROPE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 34 -
29
Analysis of changes in net funds - group
1 January 2024
Cash flows
31 December 2024
£
£
£
Cash at bank and in hand
4,929,620
(1,010,987)
3,918,633
30
Analysis of changes in net funds - company
1 January 2024
Cash flows
31 December 2024
£
£
£
Cash at bank and in hand
4,835,917
(994,391)
3,841,526
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