Company Registration No. 05794338 (England and Wales)
LANDEX LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
LANDEX LIMITED
COMPANY INFORMATION
Directors
T G Davies
D J Davies
T J Burrows
J Smith
Secretary
J Smith
Company number
05794338
Registered office
19 Holywells Road
Ipswich
Suffolk
IP3 0DL
Auditor
Sumer Auditco Limited
Fitzroy House
Crown Street
Ipswich
Suffolk
IP1 3LG
LANDEX LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2
Directors' responsibilities statement
3
Independent auditor's report
5 - 7
Profit and loss account
8
Balance sheet
9
Statement of changes in equity
10
Notes to the financial statements
11 - 20
LANDEX LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 1 -
The directors present the strategic report for the year ended 30 September 2024.
Review of the business
During the financial year the business activities of the company continued with policies and objectives consistent with the previous year.
The operating profit for the year before interest and tax was £305,416 (2023: £2,246,444). The profit for the year, after taxation amounted to £222,432 (2023: £1,724,624).
Principal risks and uncertainties
Price Risk
Prices of items purchased are regularly reviewed and any potential risks are mitigated as soon as foreseen.
Credit risk
Investments of cash surpluses are only made through banks and companies whose credit rating is considered to be satisfactory by the directors.
All customers who wish to trade on credit terms are subject to credit verification procedures. Trade debtors are reviewed on a regular basis and provision is made for doubtful debts when necessary.
Liquidity risk and cash flow
The company manages its cash and borrowing requirements in order to maximise interest income and minimise interest expense, whilst ensuring that the company has sufficient liquid resources to meet the operating needs of the business.
Financial instruments
The directors regularly review and manage the financial risk management objectives and policies associated with the company’s activities. The company’s principal financial instruments include instruments to manage currency risks that arise from the company’s operations. In accordance with the company’s treasury policy, financial instruments are not entered into for speculative purposes.
The directors continue to manage these risks and are proactive in maintaining and ensuring the continued success of the company.
Future development and performance
Management continues to seek new sites for development, carefully selecting the areas that are right for the company.
Key performance indicators
The directors consider that profit before tax and profit per site provide them with relevant information from which to review the company’s performance.
J Smith
Director
11 April 2025
LANDEX LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 2 -
The directors present their annual report and financial statements for the year ended 30 September 2024.
Principal activities
The principal activity of the company continued to be that of construction of domestic buildings.
Results and dividends
The results for the year are set out on page 8.
No ordinary dividends were paid. The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
T G Davies
D J Davies
T J Burrows
J Smith
Future developments
These are disclosed in the strategic report.
Auditor
Sumer Auditco Limited were appointed as auditor to the group and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.
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 company’s auditor 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 company’s auditor is aware of that information.
On behalf of the board
J Smith
Director
11 April 2025
LANDEX LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 3 -
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
LANDEX LIMITED
ACCOUNTANTS' REPORT TO THE BOARD OF DIRECTORS ON THE PREPARATION OF THE UNAUDITED STATUTORY FINANCIAL STATEMENTS OF LANDEX LIMITED FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 4 -
In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of Landex Limited for the year ended 30 September 2024 which comprise the profit and loss account, the balance sheet, the statement of changes in equity and the related notes from the company’s accounting records and from information and explanations you have given us.
As a practising member firm of the Institute of Chartered Accountants in England and Wales (ICAEW), we are subject to its ethical and other professional requirements which are detailed at https://www.icaew.com/regulation.
This report is made solely to the board of directors of Landex Limited, as a body, in accordance with the terms of our engagement letter dated .......................... Our work has been undertaken solely to prepare for your approval the financial statements of Landex Limited and state those matters that we have agreed to state to the board of directors of Landex Limited, as a body, in this report in accordance with ICAEW Technical Release 07/16 AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Landex Limited and its board of directors as a body, for our work or for this report.
It is your duty to ensure that Landex Limited has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets, liabilities, financial position and profit of Landex Limited. You consider that Landex Limited is exempt from the statutory audit requirement for the year.
We have not been instructed to carry out an audit or a review of the financial statements of Landex Limited. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory financial statements.
Sumer Auditco Limited
2 May 2025
Chartered Accountants
Fitzroy House
Crown Street
Ipswich
Suffolk
IP1 3LG
LANDEX LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF LANDEX LIMITED
- 5 -
Opinion
We have audited the financial statements of Landex Limited (the ‘company’) for the year ended 30 September 2024 which comprise the Profit and loss account, Statement of comprehensive income, Balance sheet, Statement of changes in Equity and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion, the financial statements:
give a true and fair view of the state of the company’s affairs as at 30 September 2024 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
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 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 entity'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 the 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.
LANDEX LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF LANDEX LIMITED
- 6 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the 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, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors’ remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors’ responsibilities statement set out on page 3 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 company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
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.
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.
We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial and sector experience, through discussion with the directors (as required by auditing standards), inspection of the company's regulatory and legal correspondence and discussed with the directors the policies and procedures regarding compliance with laws and regulations. We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit. The potential effect of these laws and regulations on the financial statements varies considerably.
Firstly, the company is subject to laws and regulations that directly affect the financial statements including financial reporting legislation and taxation legislation and we assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.
Secondly, the company is subject to many other laws and regulations where the consequences of non-compliance could have a material effect on amounts or disclosure in the financial statements, for instance through the imposition of fines or litigation. We identified the following areas as those most likely to have such an effect: building regualtions, health and safety, employment law and GDPR compliance. Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the directors and other management and inspection of regulatory and legal correspondence, if any.
LANDEX LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF LANDEX LIMITED
- 7 -
Audit procedures undertaken in response to the potential risks relating to irregularities (which include fraud and non-compliance with laws and regulations) comprised of: enquiries of management and those charged with governance as to whether the company complies with such regulations; enquiries of management and those charged with governance concerning any actual or potential litigation or claims, inspection of any relevant legal documentation, testing the appropriateness of journal entries and the performance of analytical review to identify any unexpected movements in account balances which may be indicative of fraud.
No instances of material non-compliance were identified.
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. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK).
A further description of our responsibilities is located on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s 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 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.
Luke Morris (Senior Statutory Auditor)
For and on behalf of Sumer Auditco Limited
2 May 2025
Statutory Auditor
Fitzroy House
Crown Street
Ipswich
Suffolk
IP1 3LG
LANDEX LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 8 -
2024
2023
Notes
£
£
Turnover
3
5,723,567
13,260,476
Cost of sales
(4,710,581)
(10,334,049)
Gross profit
1,012,986
2,926,427
Administrative expenses
(1,399,621)
(1,406,689)
Other operating income
173,396
174,660
Operating (loss)/profit
4
(213,239)
1,694,398
Interest receivable and similar income
7
857,884
966,230
Interest payable and similar expenses
8
(339,228)
(414,184)
Profit before taxation
305,417
2,246,444
Tax on profit
9
(83,703)
(521,820)
Profit for the financial year
221,714
1,724,624
There are no recognised gains and losses for 2024 and 2023 other than those passing through the profit and loss account.
There was no other comprehensive income for 2024 (2023:£NIL)
The notes on 10 to 20 form part of these financial statements.
LANDEX LIMITED
BALANCE SHEET
AS AT 30 SEPTEMBER 2024
30 September 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
10
2,406,172
2,293,875
Current assets
Stocks
11
21,682,469
16,276,199
Debtors
12
3,720,510
7,839,979
Cash at bank and in hand
8,548,615
9,139,164
33,951,594
33,255,342
Creditors: amounts falling due within one year
13
(14,772,359)
(14,219,717)
Net current assets
19,179,235
19,035,625
Total assets less current liabilities
21,585,407
21,329,500
Provisions for liabilities
Deferred tax liability
14
386,235
352,042
(386,235)
(352,042)
Net assets
21,199,172
20,977,458
Capital and reserves
Called up share capital
16
5,500,000
5,500,000
Profit and loss reserves
15,699,172
15,477,458
Total equity
21,199,172
20,977,458
The notes on 10 to 20 form part of these financial statements.
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.
The financial statements were approved by the board of directors and authorised for issue on 11 April 2025 and are signed on its behalf by:
T G Davies
J Smith
Director
Director
Company registration number 05794338 (England and Wales)
LANDEX LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 10 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 October 2022
5,500,000
13,752,834
19,252,834
Year ended 30 September 2023:
Profit and total comprehensive income
-
1,724,624
1,724,624
Balance at 30 September 2023
5,500,000
15,477,458
20,977,458
Year ended 30 September 2024:
Profit and total comprehensive income
-
221,714
221,714
Balance at 30 September 2024
5,500,000
15,699,172
21,199,172
The notes on 10 to 20 form part of these financial statements.
LANDEX LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 11 -
1
Accounting policies
Company information
Landex Limited is a private company limited by shares incorporated in England and Wales. The registered office is 19 Holywells Road, Ipswich, Suffolk, IP3 0DL.
Landex Limited is a wholly owned subsidiary of Landex Holdings Limited.
1.1
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.
Financial reporting standard 102 – reduced disclosure exemptions
The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland:
• the requirements of Section 7 Statement of Cash Flows;
• the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
• the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11,48(a)(iv), 11.48(b) and 11.48(c);
• the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A;
• the requirements of Section 33 Related Party Disclosures paragraph 33.7.
This information is included in the consolidated financial statements of Landex Holdings Limited as at 30 September 2023 and these financial statements may be obtained from Companies House, Crown Way, Cardiff, CF14 3UZ.
1.2
Going concern
These financial statements are prepared on the going concern basis. The directors have a reasonable expectation that the group will continue in operational existence for the foreseeable future. The directors are not aware of any material uncertainties which may cause doubt on the group's ability to continue as a going concern.true
1.3
Turnover
Turnover represents the value of house sales and other invoiced work excluding discounts, value added tax and other sales taxes. A house sale is recognised when the build is complete and contracts have been exchanged.
1.4
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
LANDEX LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 12 -
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Freehold land and buildings
2% straight line on buildings / 10 years straight line
Fixtures and fittings
25% reducing balance / 20% straight line
Computers
33.3% straight line
Motor vehicles
25% reducing balance / 25% straight line
Other fixed assets
25% reducing balance / 12.5% reducing balance / 5% straight line / 20% straight line
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 credited or charged to profit or loss.
1.5
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible 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.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.6
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks 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.
LANDEX LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 13 -
1.7
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.8
Financial instruments
The company 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 company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with 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 debtors 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.
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 company 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 company after deducting all of its liabilities.
LANDEX LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 14 -
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future 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 creditors 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 creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.9
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account 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 company’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 profit and loss account, 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 when the company has 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.
1.10
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 fixed 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.
LANDEX LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 15 -
1.11
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Critical judgements
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
Recognition of profit on sale of properties and joint ventures
Costs and profit on property sales and joint ventures is recognised as plots are sold, based on the total expected outcome of the site. This estimation is updated as the economic outlook changes, including the prices of the houses and the costs of materials and wages.
3
Turnover and other revenue
The whole of the turnover is attributable to the company's principal activity being the construction of domestic buildings.
All turnover arose within the United Kingdom.
2024
2023
£
£
Other revenue
Interest income
413,819
193,034
Commissions received
161,948
157,140
Income from participating interests - joint ventures
444,065
773,196
4
Operating (loss)/profit
2024
2023
Operating (loss)/profit for the year is stated after charging/(crediting):
£
£
Depreciation of owned tangible fixed assets
357,815
306,587
Profit on disposal of tangible fixed assets
(56,931)
(60,828)
LANDEX LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 16 -
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
8,500
8,000
For other services
All other non-audit services
6,300
6,000
6
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
37
39
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
1,529,440
1,577,309
Social security costs
167,213
174,400
Pension costs
145,284
43,551
1,841,937
1,795,260
7
Interest receivable and similar income
2024
2023
£
£
Interest income
Other interest income
413,819
193,034
Income from fixed asset investments
Income from participating interests - joint ventures
444,065
773,196
Total income
857,884
966,230
8
Interest payable and similar expenses
2024
2023
£
£
Interest on bank overdrafts and loans
255
5,237
Other interest
338,973
408,947
339,228
414,184
LANDEX LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 17 -
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
49,510
420,496
Deferred tax
Origination and reversal of timing differences
34,193
90,841
Adjustment in respect of prior periods
-
(1,866)
Effect of changes in tax rates
-
12,349
Total deferred tax
34,193
101,324
Total tax charge
83,703
521,820
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
305,417
2,246,444
Tax on profit at Standard UK rate of 25% (2023: 22.01%)
76,354
494,402
Expenses not deductible
7,347
30,143
Income not taxable
-
(13,623)
Gains / Rollover relief etc
-
413
Adjstment from previous periods
-
(1,866)
Tax rate changes
1
12,349
Roundings
1
2
Taxation credit for the year
83,703
521,820
Factors that may affect future tax charges
There were no factors that may affect future tax changes.
LANDEX LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 18 -
10
Tangible fixed assets
Freehold land and buildings
Fixtures and fittings
Computers
Motor vehicles
Other fixed assets
Total
£
£
£
£
£
£
Cost
At 1 October 2023
987,106
35,699
59,123
1,038,716
1,134,802
3,255,446
Additions
44,479
10,596
188,084
271,123
514,282
Disposals
(153,230)
(10,000)
(163,230)
At 30 September 2024
1,031,585
35,699
69,719
1,073,570
1,395,925
3,606,498
Depreciation and impairment
At 1 October 2023
139,395
28,956
37,904
299,748
455,568
961,571
Depreciation charged in the year
20,628
1,180
15,252
167,705
153,050
357,815
Eliminated in respect of disposals
(109,985)
(9,075)
(119,060)
At 30 September 2024
160,023
30,136
53,156
357,468
599,543
1,200,326
Carrying amount
At 30 September 2024
871,562
5,563
16,563
716,102
796,382
2,406,172
At 30 September 2023
847,711
6,743
21,219
738,968
679,234
2,293,875
Include within Freehold land and buildings is freehold land with a historical cost of £70,783 (2023 - £70,783), which is not being depreciated.
11
Stocks
2024
2023
£
£
Work in progress
21,682,469
16,276,199
12
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
35,887
334,759
Corporation tax recoverable
116,407
Other debtors
2,611,077
6,423,616
Prepayments and accrued income
957,139
1,081,604
3,720,510
7,839,979
LANDEX LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 19 -
13
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
303,523
753,237
Corporation tax
192,560
Other taxation and social security
49,171
54,491
Other creditors
14,158,856
12,956,059
Accruals and deferred income
260,809
263,370
14,772,359
14,219,717
14
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
387,131
352,889
Other short term timing differences
(896)
(847)
386,235
352,042
2024
2023
Movements in the year:
£
£
Provision at start of period
352,042
250,718
Adjustment in respect of prior periods
-
(1,866)
Deferred tax charge to income statement for the period
34,193
103,190
Liability at 30 September 2024
386,235
352,042
15
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
145,284
43,551
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
The pension creditor payable (included within accruals) as at 30 September 2024 is £8,709 (2023: £8,280).
LANDEX LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 20 -
16
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary Shares of £1 each
3
3
3
3
Ordinary A Shares of £1 each
5,499,997
5,499,997
5,499,997
5,499,997
5,500,000
5,500,000
5,500,000
5,500,000
17
Related party transactions
The Company has taken advantage of the exemption available under FRS 102 from disclosing transactions with its wholly owned subsidiary.
The balance owed by Holywells Residential Lettings Limited (another company which has the same shareholders in common) at the year-end was £400,874 (2023: £177,245) and is included within other debtors.
The sales to Holywells Residential Lettings Limited during the year totalled £193,736 (2023: £92,019) and also purchases from Holywells Residential Lettings Limited during the year of £591,611 (2023: £846).
There are loans of £756,875 (2023: £375,000) to a related party under common ownership. These loans have a rate of interest of 7.5% - 8% and are to be paid back within 1 year.
The group employs two family members of one of the directors. The total gross wages cost in the year for these two employees totalled £104,689 (2023: £121,949).
18
Ultimate controlling party
The ultimate controlling party of the company is Mr T. G Davies by virtue of his shareholdings in the ultimate parent undertaking, Landex Holdings Limited.
Copies of the consolidated financial statements of Landex Holdings Limited are available from Companies House, Crown Way, Cardiff, CF14 3UZ.
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