| REGISTERED NUMBER: |
| Strategic Report, Report of the Directors and |
| Financial Statements |
| for the Year Ended 31 August 2024 |
| for |
| Linco Care Limited |
| REGISTERED NUMBER: |
| Strategic Report, Report of the Directors and |
| Financial Statements |
| for the Year Ended 31 August 2024 |
| for |
| Linco Care Limited |
| Linco Care Limited (Registered number: 01420923) |
| Contents of the Financial Statements |
| for the Year Ended 31 August 2024 |
| Page |
| Company Information | 1 |
| Strategic Report | 2 |
| Report of the Directors | 4 |
| Report of the Independent Auditors | 6 |
| Income Statement | 10 |
| Other Comprehensive Income | 11 |
| Balance Sheet | 12 |
| Statement of Changes in Equity | 13 |
| Cash Flow Statement | 14 |
| Notes to the Cash Flow Statement | 15 |
| Notes to the Financial Statements | 16 |
| Linco Care Limited |
| Company Information |
| for the Year Ended 31 August 2024 |
| DIRECTORS: |
| SECRETARY: |
| REGISTERED OFFICE: |
| REGISTERED NUMBER: |
| AUDITORS: |
| Statutory Auditors |
| Chartered Accountants |
| Reedham House |
| 31 King Street West |
| Manchester |
| M3 2PJ |
| Linco Care Limited (Registered number: 01420923) |
| Strategic Report |
| for the Year Ended 31 August 2024 |
| The directors present their strategic report for the year ended 31 August 2024. |
| Linco Care Limited is a specialist manufacturer and distributor of cosmetic products with all major operations located at one site in Manchester, UK. We operate a flexible manufacturing system and bespoke formulation development in contract manufacturing. Our brands include Calypso, Silkia, Dimples, Cabana Sun and others. We distribute across the UK and in over 60 countries worldwide, with customer types ranging from large grocery chains and department stores to local distributors. |
| Our core values are Quality, Ethics, and Innovation and our strategy is to create value for the masses, seek new opportunities and always adopt fair trade. |
| Linco Care Limited has continued its work on the implementation of quality assurance systems, succeeding in numerous audits, namely GMP ISO22716 (Good Manufacturing Practices), BRCGS (British Retail Consortium Global Sourcing), SMETA (Sedex Members Ethical Trade Audit) and others. |
| The company has a strong and stable workforce, steadily increasing in size, and many employees have over 10, or even over 20, years of service. The business prides itself in recruiting and developing local people and is committed to continuously improving their working environment. The Directors are most grateful for the continued support and dedication of all personnel, which has always been pivotal to the success of the business and hope it will continue for many years to come. |
| Financial review |
| Company sales are at their highest, bringing newer challenges to Linco Care Limited in terms of supply chain management for raw materials, components and production efficiencies. |
| The Calypso brand has again grown at its fastest pace, thanks to exhibition success and an increase in advertising, both at a retail and online level. |
| More innovative sun and skincare products have eased the introduction into niche markets globally, including the Far East. This was predominantly due to several heatwaves worldwide. |
| The Directors are satisfied with the performance of the company during the last 12 months and with the financial position at August 2024. They remain focussed on investing in and continually improving the business. The financial stability of Linco Care Limited looks secure in the short and medium term. |
| Risk management |
| The Directors continue to monitor all risks to the business: |
| - Debtors control via ongoing reviews of customer credit limits and proforma payments from international customers |
| - Exposure to Foreign Exchange Market - Forex exposure is limited through currency accounts with balances maintained at appropriate levels. Exchange rates are monitored and transfers between currency accounts are processed according to trends. |
| - Health and Safety - all reasonable steps have been taken to mitigate key risks and suitable monitoring is in place throughout. |
| Research and development |
| R&D is still classed as a pivotal department and process within Linco Care Ltd. With expenditure increasing year on year, we strive to innovate and to evolve the product range each year. |
| Looking forward |
| Linco Care aims to increase productivity by 30% through a machinery expansion plan due to complete before the end of 2025. The Directors ensure continued close relationships with customers and suppliers in order to navigate potential threats and risks to the business. |
| Going concern |
| The financial position of the company, its cash flow and future liquidity position have been evaluated by the directors, together with the Company's objectives for growth, and the process for managing its capital and its financial risk management objectives including any overdraft requirement. |
| Linco Care Limited (Registered number: 01420923) |
| Strategic Report |
| for the Year Ended 31 August 2024 |
| The company has strong financial resources, together with the strength of its management team, manufacturing base and sales team. Therefore, the Directors believe that the company is well placed to manage its business risks successfully despite the current uncertain economic outlook. The Director's assessment cover the period to 31st May 2026. |
| The Directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus, they continue to adopt the going concern basis of accounting preparing the annual financial statements. |
| ON BEHALF OF THE BOARD: |
| Linco Care Limited (Registered number: 01420923) |
| Report of the Directors |
| for the Year Ended 31 August 2024 |
| The directors present their report with the financial statements of the company for the year ended 31 August 2024. |
| DIVIDENDS |
| The total distribution of dividends for the year ended 31 August 2024 will be £ |
| DIRECTORS |
| The directors shown below have held office during the whole of the period from 1 September 2023 to the date of this report. |
| STATEMENT OF DIRECTORS' RESPONSIBILITIES |
| The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
| Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to: |
| - | select suitable accounting policies and then apply them consistently; |
| - | make judgements and accounting estimates that are reasonable and prudent; |
| - | 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. |
| GOING CONCERN |
| The financial position of the company, its cash flow and future liquidity position have been evaluated by the directors, together with the Company's objectives for growth, and the process for managing its capital and its financial risk management objectives including any overdraft requirement. |
| The company has strong financial resources, together with the strength of its management team, manufacturing base and sales team. Therefore, the Directors believe that the company is well placed to manage its business risks successfully despite the current uncertain economic outlook. The Director's assessment cover the period to 31st May 2026. |
| The Directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus, they continue to adopt the going concern basis of accounting preparing the annual financial statements. |
| STRATEGIC REPORT |
| In accordance with Section 414C (11) of the Companies Act 2006 (Strategic Report and Directors Report) Regulations 2013 the company has chosen to set out in the Company's Strategic Report information required by schedule 7 of the large and medium - sized Companies and Groups (Accounts and Reports) Regulations 2008. |
| Linco Care Limited (Registered number: 01420923) |
| Report of the Directors |
| for the Year Ended 31 August 2024 |
| STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
| So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
| ON BEHALF OF THE BOARD: |
| Report of the Independent Auditors to the Members of |
| Linco Care Limited |
| Opinion |
| We have audited the financial statements of Linco Care Limited (the 'company') for the year ended 31 August 2024 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
| In our opinion the financial statements: |
| - | give a true and fair view of the state of the company's affairs as at 31 August 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. |
| Basis for opinion |
| We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
| Conclusions relating to going concern |
| In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
| Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
| Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
| Other information |
| The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
| Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
| In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
| Opinions on other matters prescribed by the Companies Act 2006 |
| In our opinion, based on the work undertaken in the course of the audit: |
| - | the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
| - | the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
| Report of the Independent Auditors to the Members of |
| Linco Care Limited |
| Matters on which we are required to report by exception |
| In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors. |
| We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
| - | adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or |
| - | the financial statements are not in agreement with the accounting records and returns; or |
| - | certain disclosures of directors' remuneration specified by law are not made; or |
| - | we have not received all the information and explanations we require for our audit. |
| Responsibilities of directors |
| As explained more fully in the Statement of Directors' Responsibilities set out on page four, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
| In preparing the financial statements, the directors are responsible for assessing the 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. |
| Report of the Independent Auditors to the Members of |
| Linco Care Limited |
| Auditors' responsibilities for the audit of the financial statements |
| Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
| The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
| We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion. |
| Identifying and assessing potential risks to irregularities |
| In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following: |
| Audit response to risks identified |
| - | the nature of the industry and sector, control environment and business performance; |
| - | results of enquiries of management about their own identification and assessment of the risks of irregularities; |
| - | any matters we identified having obtained and reviewed the Company's documentation of their policies and procedures relating to: |
| - | identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of noncompliance; |
| - | detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud; |
| - | the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations; |
| - | the matters discussed among the audit engagement team and involving other internal specialists including tax regarding how and where fraud might occur in the financial statements and any potential indicators of fraud. |
| As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risks of management override. |
| We also obtained an understanding of the legal and regulatory frameworks that the Company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the UK Companies Act and local tax legislation. |
| As a result of performing the above, we did not identify any key audit matters related to the potential risk of fraud. |
| Our procedures to respond to risks identified included the following: |
| - | reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements; |
| - | enquiring of management concerning actual and potential litigation and claims; |
| - | performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud; |
| - | obtained an understanding of provisions and held discussions with management to understand the basis of recognition or non-recognition of tax provisions; and |
| - | in addressing the risks of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members, and remained alert to any indications of fraud or noncompliance with laws and regulations throughout the audit. |
| A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
| Report of the Independent Auditors to the Members of |
| Linco Care Limited |
| Use of our report |
| This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
| for and on behalf of |
| Statutory Auditors |
| Chartered Accountants |
| Reedham House |
| 31 King Street West |
| Manchester |
| M3 2PJ |
| Linco Care Limited (Registered number: 01420923) |
| Income Statement |
| for the Year Ended 31 August 2024 |
| 2024 | 2023 |
| Notes | £ | £ | £ |
| TURNOVER | 3 |
| Cost of sales |
| GROSS PROFIT |
| Distribution costs |
| Administrative expenses |
| 3,233,435 | 3,142,027 |
| OPERATING PROFIT | 5 |
| Interest receivable and similar income |
| 1,460,450 | 2,244,701 |
| Interest payable and similar expenses | 6 |
| PROFIT BEFORE TAXATION |
| Tax on profit | 7 |
| PROFIT FOR THE FINANCIAL YEAR |
| Linco Care Limited (Registered number: 01420923) |
| Other Comprehensive Income |
| for the Year Ended 31 August 2024 |
| 2024 | 2023 |
| Notes | £ | £ |
| PROFIT FOR THE YEAR |
| OTHER COMPREHENSIVE INCOME | - | - |
| TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
| Linco Care Limited (Registered number: 01420923) |
| Balance Sheet |
| 31 August 2024 |
| 2024 | 2023 |
| Notes | £ | £ | £ |
| FIXED ASSETS |
| Tangible assets | 9 |
| CURRENT ASSETS |
| Stocks | 10 |
| Debtors | 11 |
| Cash at bank |
| CREDITORS |
| Amounts falling due within one year | 12 |
| NET CURRENT ASSETS |
| TOTAL ASSETS LESS CURRENT LIABILITIES |
| PROVISIONS FOR LIABILITIES | 15 |
| NET ASSETS |
| CAPITAL AND RESERVES |
| Called up share capital | 16 |
| Retained earnings | 17 |
| SHAREHOLDERS' FUNDS |
| The financial statements were approved by the Board of Directors and authorised for issue on |
| Linco Care Limited (Registered number: 01420923) |
| Statement of Changes in Equity |
| for the Year Ended 31 August 2024 |
| Called up |
| share | Retained | Total |
| capital | earnings | equity |
| £ | £ | £ |
| Balance at 1 September 2022 |
| Changes in equity |
| Dividends | - | ( |
) | ( |
) |
| Total comprehensive income | - |
| Balance at 31 August 2023 |
| Changes in equity |
| Dividends | - | ( |
) | ( |
) |
| Total comprehensive income | - |
| Balance at 31 August 2024 |
| Linco Care Limited (Registered number: 01420923) |
| Cash Flow Statement |
| for the Year Ended 31 August 2024 |
| 2024 | 2023 |
| Notes | £ | £ |
| Cash flows from operating activities |
| Cash generated from operations | 1 | ( |
) |
| Interest paid | ( |
) |
| Tax paid | ( |
) |
| Net cash from operating activities | ( |
) |
| Cash flows from investing activities |
| Purchase of tangible fixed assets | ( |
) | ( |
) |
| Sale of tangible fixed assets |
| Interest received |
| Net cash from investing activities | ( |
) | ( |
) |
| Cash flows from financing activities |
| Amount withdrawn by directors | 14,799 | - |
| Equity dividends paid | ( |
) | ( |
) |
| Net cash from financing activities | ( |
) | ( |
) |
| Decrease in cash and cash equivalents | ( |
) | ( |
) |
| Cash and cash equivalents at beginning of year |
2 |
1,222,067 |
2,734,906 |
| Cash and cash equivalents at end of year | 2 | 1,213,562 |
| Linco Care Limited (Registered number: 01420923) |
| Notes to the Cash Flow Statement |
| for the Year Ended 31 August 2024 |
| 1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
| 2024 | 2023 |
| £ | £ |
| Profit before taxation |
| Depreciation charges |
| Profit on disposal of fixed assets | ( |
) | ( |
) |
| Finance costs | 13,231 | - |
| Finance income | (1,002 | ) | (2,223 | ) |
| 1,545,447 | 2,331,859 |
| Increase in stocks | ( |
) | ( |
) |
| Increase in trade and other debtors | ( |
) | ( |
) |
| Increase/(decrease) in trade and other creditors | ( |
) |
| Cash generated from operations | ( |
) |
| 2. | CASH AND CASH EQUIVALENTS |
| The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
| Year ended 31 August 2024 |
| 31.8.24 | 1.9.23 |
| £ | £ |
| Cash and cash equivalents | 1,213,562 | 1,222,865 |
| Bank overdrafts | ( |
) |
| 1,213,562 | 1,222,067 |
| Year ended 31 August 2023 |
| 31.8.23 | 1.9.22 |
| £ | £ |
| Cash and cash equivalents | 1,222,865 | 2,734,906 |
| Bank overdrafts | ( |
) |
| 1,222,067 | 2,734,906 |
| 3. | ANALYSIS OF CHANGES IN NET FUNDS |
| At 1.9.23 | Cash flow | At 31.8.24 |
| £ | £ | £ |
| Net cash |
| Cash at bank | 1,222,865 | (9,303 | ) | 1,213,562 |
| Bank overdrafts | (798 | ) | 798 | - |
| 1,222,067 | ( |
) | 1,213,562 |
| Total | 1,222,067 | (8,505 | ) | 1,213,562 |
| Linco Care Limited (Registered number: 01420923) |
| Notes to the Financial Statements |
| for the Year Ended 31 August 2024 |
| 1. | STATUTORY INFORMATION |
| Linco Care Limited is a |
| 2. | ACCOUNTING POLICIES |
| Basis of preparing the financial statements |
| Turnover |
| The turnover shown in the profit and loss account represents amounts receivable for goods dispatched during the year, exclusive of Value Added Tax. |
| 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 goods or once the customer has accepted responsibility for 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 the respect of the transaction can be measured reliably. |
| Tangible fixed assets |
| Tangible fixes assets are initially 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: |
| Buildings leasehold | 2% - 25% per annum straight line |
| Plant and machinery | 15% per annum straight line |
| Fixtures, fittings and computer equipment | 15% - 25% per annum straight line |
| Motor vehicles | 25% per annum straight line |
| Assets under construction | No depreciation will be charged until the asset is in use |
| 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. |
| 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 the 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 and loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease. |
| Linco Care Limited (Registered number: 01420923) |
| Notes to the Financial Statements - continued |
| for the Year Ended 31 August 2024 |
| 2. | ACCOUNTING POLICIES - continued |
| Stocks |
| Stocks are stated on a 'first in first out' basis at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises of 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. |
| 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. |
| Taxation |
| The tax expense represents the sum of the current tax expense and deferred tax expense. Current tax assets are recognised when tax paid exceeds the tax payable. |
| Current and deferred tax is charged or credited to profit or loss, except when it relates to items charged or credited to other comprehensive income or equity, when the tax follows the transaction or event it relates to and is also charged or credited to other comprehensive income, or equity. |
| Current tax assets and current tax liabilities and deferred tax assets and deferred tax liabilities are offset, if and only if, there is a legally enforceable right to set off the amounts and the entity intends either to settle on the net basis or to realise the asset and settle the liability simultaneously. |
| Current tax is based on taxable profit for the .year. Current tax assets and liabilities are measured using tax rates that have been enacted or substantively enacted by the reporting date. |
| Deferred tax |
| Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
| Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
| Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
| Research and development |
| Expenditure on research and development is written off in the year in which it is incurred. |
| Foreign exchange |
| Transactions in currencies other than the functional currency (foreign currencies) are initially recorded at the exchange rate prevailing on the date of the transaction. |
| Monetary assets and liabilities denominated in foreign currencies are translated at the rate of exchange ruling at the reporting date. Non-monetary assets and liabilities denominated in foreign currencies are translated at the rate ruling at the date of the transaction or, if the asset or liability is measured at fair value, the rate when that fair value was determined. |
| All translation differences are taken to profit or loss, except to the extent that they relate to gains or losses on non-monetary items recognised in other comprehensive income, when the related translation gain or loss is also recognised in other comprehensive income. |
| Pension costs and other post-retirement benefits |
| The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. |
| Linco Care Limited (Registered number: 01420923) |
| Notes to the Financial Statements - continued |
| for the Year Ended 31 August 2024 |
| 2. | ACCOUNTING POLICIES - continued |
| The company operates two defined contribution pension schemes and contributions payable for the year are charged to the profit and loss account. Any amounts outstanding at the balance sheet date are included in other creditors. |
| 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 leases asset are consumed. |
| 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 revision and future periods where the revision affects both current and future periods. |
| Standard stock costings incorporate judgements about expected raw material prices. |
| Going concern |
| The financial position of the company, its cash flow and future liquidity position have been evaluated by the directors, together with the Company's objectives for growth, and the process for managing its capital and its financial risk management objectives including any overdraft requirement. |
| The company has strong financial resources, together with the strength of its management team, manufacturing base and sales team. Therefore, the Directors believe that the company is well placed to manage its business risks successfully despite the current uncertain economic outlook. The Director's assessment cover the period to 31st May 2026. |
| The Directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus, they continue to adopt the going concern basis of accounting preparing the annual financial statements. |
| 3. | TURNOVER |
| The turnover and profit before taxation are attributable to the one principal activity of the company. |
| An analysis of turnover by geographical market is given below: |
| 2024 | 2023 |
| £ | £ |
| United Kingdom |
| Europe |
| Asia |
| America | 5,775 | 15,828 |
| Australia and New Zealand | 123,455 | 58,744 |
| Africa | 64,736 | 45,603 |
| Caribbean | 43,964 | 29,643 |
| Linco Care Limited (Registered number: 01420923) |
| Notes to the Financial Statements - continued |
| for the Year Ended 31 August 2024 |
| 4. | EMPLOYEES AND DIRECTORS |
| 2024 | 2023 |
| £ | £ |
| Wages and salaries |
| Social security costs |
| Other pension costs |
| The average number of employees during the year was as follows: |
| 2024 | 2023 |
| Production staff | 64 | 55 |
| Distribution staff | 5 | 6 |
| Administrative staff | 12 | 11 |
| 2024 | 2023 |
| £ | £ |
| Directors' remuneration |
| Directors' pension contributions to money purchase schemes |
| Information regarding the highest paid director is as follows: |
| 2024 | 2023 |
| £ | £ |
| Emoluments etc |
| Pension contributions to money purchase schemes |
| 5. | OPERATING PROFIT |
| The operating profit is stated after charging/(crediting): |
| 2024 | 2023 |
| £ | £ |
| Depreciation - owned assets |
| Profit on disposal of fixed assets | ( |
) | ( |
) |
| Auditors' remuneration |
| Foreign exchange differences |
| Operating lease charges |
| Research and development costs |
| 6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
| 2024 | 2023 |
| £ | £ |
| Other interest |
| Linco Care Limited (Registered number: 01420923) |
| Notes to the Financial Statements - continued |
| for the Year Ended 31 August 2024 |
| 7. | TAXATION |
| Analysis of the tax charge |
| The tax charge on the profit for the year was as follows: |
| 2024 | 2023 |
| £ | £ |
| Current tax: |
| UK corporation tax |
| Adjustments in respect of |
| prior periods | 28,046 | (162,416 | ) |
| Total current tax |
| Deferred tax: |
| Deferred tax | ( |
) |
| Adjustments in respect of prior periods | - | 255 |
| Total deferred tax | ( |
) |
| Tax on profit |
| Reconciliation of total tax charge included in profit and loss |
| The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
| 2024 | 2023 |
| £ | £ |
| Profit before tax |
| Profit multiplied by the standard rate of corporation tax in the UK of (2023 - |
| Effects of: |
| Expenses not deductible for tax purposes |
| Capital allowances in excess of depreciation | ( |
) | ( |
) |
| Adjustments to tax charge in respect of previous periods | ( |
) |
| Adjustments in respect of prior years - deferred tax | - | 255 |
| Remeasurement of deferred tax for changes in tax rates | - | 27,461 |
| Total tax charge | 298,324 | 333,341 |
| Linco Care Limited (Registered number: 01420923) |
| Notes to the Financial Statements - continued |
| for the Year Ended 31 August 2024 |
| 8. | DIVIDENDS |
| 2024 | 2023 |
| £ | £ |
| A shares of £1 each |
| Interim |
| B shares of £1 each |
| Interim |
| C shares of £1 each |
| Interim |
| D shares of £1 each |
| Interim |
| E shares of £1 each |
| Interim |
| F shares of £1 each |
| Interim | 80,000 | 120,000 |
| G shares of £1 each |
| Interim | 80,000 | 120,000 |
| H shares of £1 each |
| Interim | 70,000 | 45,000 |
| 9. | TANGIBLE FIXED ASSETS |
| Assets |
| Buildings | under | Plant and |
| leasehold | construction | machinery |
| £ | £ | £ |
| COST |
| At 1 September 2023 |
| Additions |
| Disposals |
| At 31 August 2024 |
| DEPRECIATION |
| At 1 September 2023 |
| Charge for year |
| Eliminated on disposal |
| At 31 August 2024 |
| NET BOOK VALUE |
| At 31 August 2024 |
| At 31 August 2023 |
| Linco Care Limited (Registered number: 01420923) |
| Notes to the Financial Statements - continued |
| for the Year Ended 31 August 2024 |
| 9. | TANGIBLE FIXED ASSETS - continued |
| Fixtures, |
| fittings |
| and |
| computer | Motor |
| equipment | vehicles | Totals |
| £ | £ | £ |
| COST |
| At 1 September 2023 |
| Additions |
| Disposals | ( |
) | ( |
) |
| At 31 August 2024 |
| DEPRECIATION |
| At 1 September 2023 |
| Charge for year |
| Eliminated on disposal | ( |
) | ( |
) |
| At 31 August 2024 |
| NET BOOK VALUE |
| At 31 August 2024 |
| At 31 August 2023 |
| 10. | STOCKS |
| 2024 | 2023 |
| £ | £ |
| Raw materials and consumables |
| Finished goods and goods for |
| resale |
| Stock provision of £1,578,641 (2023: 1,834,694) was made based on slow movement and obsolete stock. |
| 11. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
| 2024 | 2023 |
| £ | £ |
| Trade debtors |
| Other debtors |
| Amounts due from related party | - |
| Prepayments |
| Linco Care Limited (Registered number: 01420923) |
| Notes to the Financial Statements - continued |
| for the Year Ended 31 August 2024 |
| 12. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
| 2024 | 2023 |
| £ | £ |
| Bank loans and overdrafts (see note 13) |
| Trade creditors |
| Tax |
| Social security and other taxes |
| Other creditors | ( |
) |
| Directors' current accounts | - |
| Accrued expenses |
| 13. | LOANS |
| An analysis of the maturity of loans is given below: |
| 2024 | 2023 |
| £ | £ |
| Amounts falling due within one year or on demand: |
| Bank overdrafts |
| 14. | LEASING AGREEMENTS |
| Minimum lease payments under non-cancellable operating leases fall due as follows: |
| 2024 | 2023 |
| £ | £ |
| Within one year |
| Between one and five years |
| In more than five years |
| 15. | PROVISIONS FOR LIABILITIES |
| 2024 | 2023 |
| £ | £ |
| Deferred tax | 134,871 | 236,783 |
| Deferred |
| tax |
| £ |
| Balance at 1 September 2023 |
| Credit to Income Statement during year | ( |
) |
| Balance at 31 August 2024 |
| Linco Care Limited (Registered number: 01420923) |
| Notes to the Financial Statements - continued |
| for the Year Ended 31 August 2024 |
| 15. | PROVISIONS FOR LIABILITIES - continued |
| Analysis of deferred tax balance |
| 2024 | 2023 |
| £ | £ |
| Accelerated capital allowances | 134,871 | 240,954 |
| Short term timing differences | - | (4,171 | ) |
| 134,871 | 236,783 |
| 16. | CALLED UP SHARE CAPITAL |
| Allotted, issued and fully paid: |
| Number: | Class: | Nominal | 2024 | 2023 |
| value: | £ | £ |
| A | £1 | 200 | 200 |
| B | £1 | 25 | 25 |
| C | £1 | 200 | 200 |
| D | £1 | 75 | 75 |
| E | £1 | 100 | 100 |
| 150 | F | £1 | 150 | 150 |
| 150 | G | £1 | 150 | 150 |
| 100 | H | £1 | 100 | 100 |
| 1,000 | 1,000 |
| 17. | RESERVES |
| Retained |
| earnings |
| £ |
| At 1 September 2023 |
| Profit for the year |
| Dividends | ( |
) |
| At 31 August 2024 |
| 18. | CAPITAL COMMITMENTS |
| As at 31 August 2024, the company had committed costs of £133,430 in relation to construction costs. |
| Linco Care Limited (Registered number: 01420923) |
| Notes to the Financial Statements - continued |
| for the Year Ended 31 August 2024 |
| 19. | RELATED PARTY DISCLOSURES |
| During the year, the director Mr B Todd introduced £485,158 into the company and withdrew amounts totalling £485,250. As at 31 August 2024 the company owed Mr B Todd £224 (2023: £316) under informal interest free loans. |
| During the year, the director Mr J Todd introduced £120,000 into the company and withdrew amounts totalling £120,950. As at 31 August 2024 the company owed Mr J Todd £1,419 (2023: £2,369) under informal interest free loans. |
| During the year, the director Mr M Todd introduced £120,000 into the company and withdrew amounts totalling £120,000. As at 31 August 2024 the company owed Mr M Todd £2,787 (2023: £2,787) under informal interest free loans. |
| During the year, the director Mr F Sekaleshfar introduced £116,595 into the company and withdrew amounts totalling £102,500. As at 31 August 2024 the company owed Mr F Sekaleshfar £Nil (2023: £14,095). |
| During the year, the shareholder Mrs B Todd introduced £67,500 into the company and withdrew amounts totalling £67,500. As at 31 August 2024 the company owed Mrs B Todd £140 (2023: £140) under informal interest free loans. |
| During the year, the shareholder Mrs N Sekalesfar introduced £43,979 into the company and withdrew amounts totalling £33,750. As at 31 August 2024 the company owed £10,229 to Mrs N Sekaleshfar (2023: £Nil). |
| During the year, the shareholder Dr F Sekaleshfar introduced £45,000 into the company and withdrew amounts totalling £29,324. As at 31 August 2024 the company owed Dr F Sekaleshfar £Nil (2023: £15,676). |
| Mr B Todd has an interest in a company Linco lmpex Inc which owns 100% of the share capital of Dimples Limited. |
| During the year, there were sales to Dimples Limited by the company of £28,298 (2023: £38,085). Purchases were also made from Dimples Limited amounting to £1,510 (2023: £12,918). At the year end included in amounts due from related party was £157,027 (2023: £5,962) owed to the company. |
| Mr S Sekaleshfar has a 100% interest in a company QHorizons Limited. During the year sales of £109,836 (2023: £97,974) and purchases amounting to £73,580 (2023: £nil) were made to QHorizons Limited. At the year end trade debtors includes £32,731 (2023: £44,594) owed to the company. |
| The directors Mr B Todd, together with his wife and Mr F Sekaleshfar own the property that the company trades from. Rent amounting to £222,857 (2023: £163,792) was charged to the company by the directors during the financial year. At the year end the company owed Orly Property £222,857 (2023: £208,500). |
| During the year dividends of £117,900 (2023: £147,900), £37,500 (2023: £67,500), £6,250 (2023: £11,250), £70,000 (2023: £45,000), £18,750 (2023: £33,750), £80,000 (2023: £120,000), £80,000 (2023: £120,000) and £70,000 (2023: £45,000) were paid to the director Mr B Todd, former director Mrs B Todd,·and the directors Mr F Sekaleshfar, Mr S Sekaleshfar and former director Mrs N Sekaleshfar, the directors Mr M Todd and Mr J Todd, and shareholder Dr F Sekaleshfar respectively. |
| 20. | ULTIMATE CONTROLLING PARTY |
| The company is under control of Mr B Todd and other family members by virtue of their majority interest in the share capital of the company. |