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2023-08-31 xbrli:shares iso4217:GBP xbrli:pure
Company registration number: 00463800







ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED
31 AUGUST 2024


LENHAM STORAGE COMPANY LIMITED






































img41dd.png                        

 


LENHAM STORAGE COMPANY LIMITED
 


 
COMPANY INFORMATION


Directors
R.F. Tolhurst 
K.N. Abrehart 
A.M. Burgess 
A.C. Fulcher 
D.J. Abrehart 
S. L. Phibbs 
I. Rose 




Company secretary
A.M. Burgess



Registered number
00463800



Registered office
Ashcombe House
5 The Crescent

Leatherhead

Surrey

KT22 8DY




Independent auditor
Menzies LLP
Chartered Accountants & Statutory Auditor

Ashcombe House

5 The Crescent

Leatherhead

Surrey

KT22 8DY




Bankers
Barclays Bank plc
1 Churchill Place

London

E14 5HP





 


LENHAM STORAGE COMPANY LIMITED
 



CONTENTS



Page
Strategic Report
1 - 4
Directors' Report
5 - 8
Independent Auditor's Report
9 - 12
Statement of Comprehensive Income
13
Statement of Financial Position
14
Statement of Changes in Equity
15
Statement of Cash Flows
16 - 17
Analysis of Net Debt
18
Notes to the Financial Statements
19 - 37


 


LENHAM STORAGE COMPANY LIMITED
 


 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 AUGUST 2024

Introduction
 
Lenham Storage Company Limited hereby present the Strategic Report covering the results for the financial year ending 31 August 2024.

Principal activities and business review
 
The principal activities of the company during the year were those of warehousing and haulage services with a business model centred on storing and delivering largely food and grocery products. 
The company has enjoyed a successful year’s trading and the results for the year and the financial position of the company are as shown in the annexed statements.
This trading year has seen stability evidenced with staff retention and recruitment efforts yielding positive results. Heavy investment again has been made in wages, something the company always believes is important but especially so during the current financial climate.  
Training, staff development and internal progression has always been important to the business. The driver and warehouse training teams have grown over the trading year, both achieving a record number of pass results. The business continues to support and encourage apprenticeships.  
The company were proud during the year to achieve BRCGS AA+ accreditation following an unannounced multi day audit for our sites at Aylesford and Sittingbourne at Lenham. 
The company enjoys a large number of long-term partnerships with clients, many spanning more than a decade, some multiple. Several clients during the year formally renewed long term contracts and the business welcomed a number of new clients during the year.
Reinvestment back into our sites has always been key to the business, this included a fully racked, new build warehouse at our Sittingbourne site during the trading year. Heavy investment also took place in the areas of building maintenance on the Lenham site. We are also looking to purchase additional warehouse capacity in the Sittingboune area to supplement our existing capacity at our main facility, Drywall and Education House units. The company will pursue any further opportunities in the Sittingbourne area should a suitable unit become available.
The company again addressed the issue of recruitment and retaining staff by raising pay rates in the year. This trend will continue in 2024 as a result of the living wage increase from £11.02 to £11.44 and our intention is to ensure that the existing pay rate parity throughout the company is maintained. As a business, our continued priority is to recruit experienced class 1 and 2 drivers where we can. 
The company has taken delivery of two fully electric Volvo FM 490Kw 4 x 2 tractor Globetrotter vehicles with a range on one charge of 200 miles on a single charge. The three diesel generators at the Lenham site are now fully operational and will provide electrical backup for most of the onsite warehousing and offices in case of prolonged electrical outage.
The business welcomed a new team to undertake full colour label printing with investment in machines and a purpose-built facility on site to compliment the growing Contract Packing operation. 
A large part of the growing fleet was replaced during the trading year with investment in both new technology and more environmentally friendly vehicles and equipment. Several projects were underway during the trading year and continue for renewable energy investment as well as both gas and electric powered vehicles. 
The company is in a strong position and well placed for the year ahead. 

Page 1

 


LENHAM STORAGE COMPANY LIMITED
 



STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024

Principal risks and uncertainties
 
The Company holds or issues financial instruments in order to achieve three main objectives, being:
(a) to finance its operations;
(b) to manage its exposure to interest and currency risks arising from its operations and from its sources of finance; and
(c) for trading purposes.
In addition, various financial instruments (e.g. trade debtors, trade creditors, accruals and prepayments) arise directly from the Company's operations.
Transactions in financial instruments result in the Company assuming or transferring to another party one or more of the financial risks described below.

Interest rate risk
The Company finances its operations through a combination of retained earnings and hire purchase contracts. Exposure to interest rate fluctuations is controlled by entering into fixed rate agreements.

Credit risk
The Company's principal financial assets are trade debtors. In order to manage credit risk on these debtors the directors set limits for customers based on a combination of payment history and third party credit references. Credit limits are reviewed on a regular basis in conjunction with debt ageing and collection history.

Liquidity risk
The directors monitor the cash levels of the Company to ensure that there are always cash funds available to meet the day to day working capital requirements of the Company. Short term flexibility is achieved through the Company's banking arrangements.

Non financial risks
The Company's operations involve a large amount of haulage and transport and so there is a risk of delays, accidents and non-compliance with road traffic regulations.

Key performance indicators
 
The Board utilise a number of key performance indicators to monitor and manage the business, foremost amongst these are the measurement of turnover, margins and cash flows. These measures indicate the levels of operation achieved, its profitability and the efficiency with which those profits have been turned into cash.
The company also benefited from increases in some key rates negotiated throughout the year but more significantly benefited from reducing our cost base in certain key areas. Revenues increased by 7.1% in the year (2023: 1.6%) and gross profits increased by £1,277,313, an increase over 2023 of 14.1%. Profit for the year before tax but after interest is £1.48m (2023: £1.32m) with a net margin reported of 2.1% (2023: 2.0%) The company continues to apply cost savings initiatives where possible and negotiate enhanced rates as and when they fall due. 

Page 2

 


LENHAM STORAGE COMPANY LIMITED
 



STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024

Directors' statement of compliance with duty to promote the success of the Company
 
The directors of Lenham Storage, as those of all UK companies, must act in accordance with a set of general duties. These duties are detailed in section 172 of the UK Companies Act 2006 which is summarised below.
A director of a company must act in the way he/she considers in good faith would be most likely to promote the success of the company for the benefit of its members as a whole, and in doing so have regard amongst other matters to;

1.The likely consequence of any decision in the long term.
2.The interests of the Company’s employees.
3.The need to foster the Company’s business relationships with suppliers, customers and any others.
4.The impact of the Company’s operations on the community and the environment.
5.The desirability of the Company maintaining a reputation for high standards of business conduct, and
6.The need to act fairly between members of the Company.

Each director of Lenham Storage is aware of their obligations on the 6 points above and can seek professional advice from independent advisors known to the Company if required. Lenham Storage has a skilled workforce, so the directors will delegate day to day decisions making to employees in the Company. At all times the board considers how the decisions they make support the Company’s vision and its values and how they promote the success of the Company. The board continues to look for opportunities to expand its operations and its desire to have a Midlands hub remains its ultimate aspirational goal. The directors make strategic decisions based on the short term and long term objectives whether this involves supply chain matters or long term vision in the procuring of warehouse space both owned or rented. As such we continue to look for opportunities, especially in the Sittingbourne area, to support our exisiting operations there.

Directors uses its regular meetings, both formal and informally, as a way to address and meet its obligations under S172 on the Companies Act 2006 and the stakeholders of the company are discussed. The board of the company comprises the Chairman, The Managing Director, Finance Director, Transport and Warehousing Directors, IT Director, Commercial Director and Director of Risk Management. The board considers the size and composition is appropriate to its function. In the directors opinion, employees, suppliers and customers represent the stakeholders of the business and the means of their engagement are detailed below.

Employees – We rely on our employees to ensure we deliver a high quality service to our customers be it handling a pallet of stock professionally into the warehouse, administering its arrival and subsequent delivery to the end user and ensuring billing is accurate and timely. We adapt to each clients needs and each client is treated in a bespoke way. On going training is a key part of the company's approach. As an example, we have a longstanding relationship with a forklift training provider who provides forklift training for new warehouse operatives but also ongoing training to our current staff. We also employ a Driver Trainer to assess all our drivers competencies and will intervene where necessary if shortcomings in driving standards are revealed. We also employ a further Driver Trainer whose role is to teach learner both current employees and those applying directly from outside to drive 18T vehicles and guide them through their Class 2 driving test and those with existing Class 2 licenses through the Class 1 test. This has proved successful. It has added additional drivers to its existing driver pool without having to recruit from outside. The Company is committed to attracting the best people, in the appropriate area, retaining and incentivising them to deliver the companies objectives. Pay rates are continually reviewed to ensure that pay does not fall below accepted industry averages and where it can, pay rates are agreed above these averages.

Customers – Our employees and managers are constantly interacting with our customers to fulfill their requirements. We focus on customer service and this enables the Company to act as an extension of each of our customers operation. Regular contact is maintained via visits to the site, telephone calls and more recently zoom/team video conferencing calls.

Suppliers – We fully understand the role our suppliers play in the delivery of our services. And as such we ensure that our suppliers are paid within their agreed terms. We also ensure there is an open dialogue between our company and suppliers regarding our ongoing deeds and requirements. The Company ensures suppliers are paid on time within agreed payment terms.

The Company maintains excellent relations with both the local borough and parish councils. During the Covid crisis the Company donated funds to the parish council that was used to provide food deliveries for the elderly and those to unable to shop due to ill health. Noise pollution is a constant issue as the site sits within a large housing area. To alleviate the problem, the Company installed an acoustic fence which runs the length of the site to reduce the noise pollution while at the same time planted spreading plants to hide the length of the fence.

Page 3

 


LENHAM STORAGE COMPANY LIMITED
 



STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024

The Company operates a zero tolerance approach to modern slavery and human trafficking and the Company will act at all times ethically and with integrity in its business dealings.


This report was approved by the board and signed on its behalf.



................................................
A.M. Burgess
Director

Date: 18 March 2025



Page 4

 


LENHAM STORAGE COMPANY LIMITED
 


 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 AUGUST 2024

The directors present their report and the financial statements for the year ended 31 August 2024.

Directors' responsibilities statement

The directors are responsible for preparing the Strategic Report, the Directors' 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 for the Company's financial statements 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;

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 to enable them to ensure that the financial statements comply with the Companies Act 2006They 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.

Results and dividends

The profit for the year, after taxation, amounted to £1,105,232 (2023: £992,082).
The directors have recommended a dividend of  £Nil (2023 - £Nil).

Directors

The directors who served during the year were:

R.F. Tolhurst 
K.N. Abrehart 
A.M. Burgess 
A.C. Fulcher 
D.J. Abrehart 
S. L. Phibbs 
I. Rose 

Future developments

The Company continues to respond to the challenges of the current market by reducing costs where it can, and amending its operational overhead to reflect market conditions.
Disabled employees
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 their employment by the Company continues. It is company policy that the training, career development and promotion of disabled persons should, as far as possible, be identical with that of the other employees. 

Page 5

 


LENHAM STORAGE COMPANY LIMITED
 


 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024

Financial instruments

Financial instruments are referred to in the strategic report.

Engagement with employees

The Company places considerable value in the involvement of its employees and continues to keep them informed on matters affecting them as employees and on significant factors affecting the performance of the Lenham "Group". This is achieved through formal and informal meetings and employee representatives are consulted regularly on a wide range of issues affecting the employees' current and future interests.

Statement of carbon emissions in compliance with streamlined Energy and Carbon Reporting (SECR)

Covering energy use and associated greenhouse gas emissions relating to gas, electricity and transport, intensity ratios and information relating to energy efficiency actions.
Current reporting year (Sept 23 – Aug 24)                                                       ‘000 kWh tonnes CO2e
Scope 1 (direct emissions)
  
Total emissions generated through business travel/transport    30,865              7,424
Total emissions generated through other fuels (gas oil & propane)  3,739   844

Scope 2 (indirect emissions)
Total emissions generated through combustion of gas    1,083   199
Total emissions generated through use of purchased electricity   3,883   905

Total gross emissions        39,570  9,373

Intensity ratio (total gross emissions/sq ft of whse space)    13 kgCO2e per sq ft
Intensity ratio (transport gross emissions/mile)     1 kgCO2e per mile

Previous reporting year (Sep 22 - Aug 23)     '000kWh   tonnes C02e

Scope 1 (direct emissions)

Total emissions generated through business travel/transport   31,333   7,537
Total emissions generated through other fuels (gas oil & propane)  3,952    898

Scope 2 (indirect emissions)
Total emissions generated through combustion of gas    1,114    205
Total emissions generated through use of purchased electricity   3,790    884

Total gross emissions        40,189   9,524

Intensity ratio (total gross emissions/sq ft of whse space)    13 kgCO2e per sq ft
Intensity ratio (transport gross emissions/mile)     1 kgCO2e per mile

Page 6

 


LENHAM STORAGE COMPANY LIMITED
 


 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024

Methodology used within the calculations
The Company has used data from monthly/quarterly invoices. All calculations have been applied from the “Conversion_Factors_2023_-_Condensed_set__for_most_users” spreadsheet found on the gov.uk (Greenhouse reporting) website. 

Carbon emission efficiency actions
New measures implemented this year;

Shed 14 replacing all ageing lighting in shed with LED sensor lights to include all emergency lighting with self-testing LED units;
Pallet pool remove existing old external light fitting & fit new Thorlux lighting to pallet pool and tractor parking area;
Garage replace all existing light in garage office for LED light fittings;
MOT bay Change the existing lights that are on the wall in the MOT bay to LED (Maxine's old offices);
Shed 16 offices replace fluorescent lights for LED (Maxine's old offices);
Sittingbourne SB1 & SB2 replace panel lights with LED panels in the toilets and through reception;
Shed 18 E-shop Refurbishment install 600x1200mm LED panels to new suspended ceiling to include several emergency packs where required;
Aylesford lower shed remove existing halogen light fittings. Install 8 rows f 11 lights per row including tracks, & emergency lighting; and
Lenham Site 2 x Volvo FM fully electric 44 tonne trucks.

The following carbon emission efficiency measures are under consideration for implementation during 2024
The 6.01% decrease of CO2e generated through other fuels is the result of refrigerant used by an aging air cooling system which the Company is currently replacing.

Disclosure of information to auditor

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company's auditor is unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditor is aware of that information.

Post balance sheet events

There have been no significant events affecting the Company since the year end.

Auditor

Under section 487(2) of the Companies Act 2006Menzies LLP will be deemed to have been reappointed as auditor 28 days after these financial statements were sent to members or 28 days after the latest date prescribed for filing the accounts with the registrar, whichever is earlier.

Page 7

 


LENHAM STORAGE COMPANY LIMITED
 


 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024

This report was approved by the board and signed on its behalf.
 



................................................
A.M. Burgess
Director

Date: 18 March 2025

Ashcombe House
5 The Crescent
Leatherhead
Surrey
KT22 8DY

Page 8

 


LENHAM STORAGE COMPANY LIMITED
 

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INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF LENHAM STORAGE COMPANY LIMITED

Opinion


We have audited the financial statements of Lenham Storage Company Limited (the 'Company') for the year ended 31 August 2024, which comprise the Statement of Comprehensive Income, the Statement of Financial Position, the Statement of Cash Flows, the Statement of Changes in Equity and the related notes, including a summary of significant accounting policiesThe 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 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 United Kingdom, including the Financial Reporting Council'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 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 ReportOur 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.


Page 9

 


LENHAM STORAGE COMPANY LIMITED


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INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF LENHAM STORAGE COMPANY LIMITED (CONTINUED)

Opinion 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.


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 5, 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.


Page 10

 


LENHAM STORAGE COMPANY LIMITED


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INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF LENHAM STORAGE COMPANY LIMITED (CONTINUED)

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:

The Company is subject to laws and regulations that directly affect the financial statements including financial reporting legislation. We determined that the following laws and regulations were most significant, including:
 
The Company is subject to laws and regulations that directly affect the financial statements including financial reporting legislation. We determined that the following laws and regulations were most significant, including:

The Companies Act 2006;
Financial Reporting Standard 102;
UK employment legislation;
UK health and safety legislation;
General Data Protection Regulations;
DVSA; and
MOT testing requirements.

We assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.

We understood how the Company is complying with those legal and regulatory frameworks by, making enquiries to management, those responsible for legal and compliance procedures and the company secretary.

The engagement partner assessed whether the engagement team collectively had the appropriate competence and capabilities to identify or recognize non-compliance with laws and regulations. The assessment did not identify any issues in this area.

We assessed the susceptibility of the Company financial statements to material misstatement, including how fraud might occur. Audit procedures performed by the engagement team included:

Identifying and assessing the design effectiveness of controls management has in place to prevent and detect fraud;
Understanding how those charged with governance considered and addressed the potential for override of controls or other inappropriate influence over the financial reporting process;
Challenging assumptions and judgements made by management in its significant accounting estimates; and
Identifying and testing journal entries, in particular any journal entries posted with unusual account combinations.

As a result of the above procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas:

The application of inappropriate judgements or estimation to manipulate the Company's financial position;
Posting of unusual journals and complex transactions;
The use of management override of controls to manipulate results, or to cause the Company to enter into transactions not in its best interests.
 
Page 11

 


LENHAM STORAGE COMPANY LIMITED


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INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF LENHAM STORAGE COMPANY LIMITED (CONTINUED)


Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.


A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditor's Report.


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 2006Our 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.





Andrew Hookway FCA (Senior Statutory Auditor)
for and on behalf of
Menzies LLP
Chartered Accountants & Statutory Auditor
Ashcombe House
5 The Crescent
Leatherhead
Surrey
KT22 8DY

18 March 2025
Page 12

 


LENHAM STORAGE COMPANY LIMITED
 


 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 AUGUST 2024

2024
2023
Note
£
£

  

Turnover
 4 
53,625,859
50,075,438

Cost of sales
  
(43,303,801)
(41,030,693)

Gross profit
  
10,322,058
9,044,745

Administrative expenses
  
(8,547,457)
(7,540,182)

Other operating income
 5 
189,798
179,041

Operating profit
 6 
1,964,399
1,683,604

Interest receivable and similar income
 10 
39,916
25,202

Interest payable and similar expenses
 11 
(535,618)
(391,248)

Other finance income
  
10,000
4,000

Profit before tax
  
1,478,697
1,321,558

Tax on profit
 13 
(373,465)
(329,476)

Profit for the financial year
  
1,105,232
992,082

Other comprehensive income for the year
  

Unrealised surplus on revaluation of tangible fixed assets
  
-
(912,107)

Actuarial gains on defined benefit pension scheme
  
3,000
107,000

Movement of deferred taxation relating to pension deficit
  
(27,500)
(26,750)

Movement of deferred taxation relating to revaluations
  
-
102,108

Other comprehensive income for the year
  
(24,500)
(729,749)

Total comprehensive income for the year
  
1,080,732
262,333

The notes on pages 19 to 37 form part of these financial statements.

Page 13

 


LENHAM STORAGE COMPANY LIMITED
REGISTERED NUMBER:00463800



STATEMENT OF FINANCIAL POSITION
AS AT 31 AUGUST 2024

2024
2023
Note
£
£

Fixed assets
  

Tangible assets
 14 
36,943,328
30,985,888

  
36,943,328
30,985,888

Current assets
  

Stocks
  
312,869
304,014

Debtors
 15 
13,794,913
11,123,454

Cash at bank and in hand
  
571,373
826,999

  
14,679,155
12,254,467

Creditors: amounts falling due within one year
 16 
(17,016,975)
(12,314,557)

Net current liabilities
  
 
 
(2,337,820)
 
 
(60,090)

Total assets less current liabilities
  
34,605,508
30,925,798

Creditors: amounts falling due after more than one year
 17 
(5,175,129)
(2,787,540)

Provisions for liabilities
  

Deferred tax
 21 
(888,732)
(664,343)

  
 
 
(888,732)
 
 
(664,343)

Pension asset
 25 
204,000
191,000

Net assets
  
28,745,647
27,664,915


Capital and reserves
  

Called up share capital 
 22 
2,002
2,002

Revaluation reserve
 23 
15,101,820
15,101,820

Profit and loss account
 23 
13,641,825
12,561,093

  
28,745,647
27,664,915


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 



................................................
K.N. Abrehart
................................................
A.M. Burgess
Director
Director


Date: 18 March 2025
Date:18 March 2025

The notes on pages 19 to 37 form part of these financial statements.
Page 14

 


LENHAM STORAGE COMPANY LIMITED
 



STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 AUGUST 2024


Called up share capital
Revaluation reserve
Profit and loss account
Total equity

£
£
£
£


At 1 September 2022
2,002
15,911,819
11,488,761
27,402,582


Comprehensive income for the year

Profit for the year

-
-
992,082
992,082

Actuarial gains on pension scheme
-
-
107,000
107,000

Deficit on revaluation of freehold property
-
(912,107)
-
(912,107)

Deferred taxation on actuarial gain on pension scheme
-
-
(26,750)
(26,750)

Deferred tax on revaluation of freehold property
-
102,108
-
102,108


Other comprehensive income for the year
-
(809,999)
80,250
(729,749)


Total comprehensive income for the year
-
(809,999)
1,072,332
262,333



At 1 September 2023
2,002
15,101,820
12,561,093
27,664,915


Comprehensive income for the year

Profit for the year

-
-
1,105,232
1,105,232

Actuarial gains on pension scheme
-
-
3,000
3,000

Deferred taxation on actuarial gain on pension scheme
-
-
(27,500)
(27,500)


Other comprehensive income for the year
-
-
(24,500)
(24,500)


Total comprehensive income for the year
-
-
1,080,732
1,080,732


At 31 August 2024
2,002
15,101,820
13,641,825
28,745,647


Page 15

 


LENHAM STORAGE COMPANY LIMITED
 



STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 AUGUST 2024

2024
2023
£
£

Cash flows from operating activities

Profit for the financial year
1,105,232
992,082

Adjustments for:

Depreciation of tangible assets
650,850
824,317

Impairments of fixed assets
-
146,327

Profit on disposal of tangible assets
(17,252)
(51,459)

Interest paid
535,618
391,248

Interest received
(59,213)
(25,202)

Taxation charge
373,465
255,034

(Increase)/decrease in stocks
(8,855)
45,467

(Increase)/decrease in debtors
(1,702,971)
1,336,433

(Increase)/decrease in amounts owed by groups
(919,942)
645,689

Increase/(decrease) in creditors
2,809,585
(2,102,730)

Increase/(decrease) in amounts owed to groups
1,650,432
(603,660)

Increase/(decrease) in provisions
-
(8,892)

Net fair value (gains)/losses recognised in P&L
(10,000)
80,250

Corporation tax paid
(225,122)
(399,762)

Net cash generated from operating activities

4,181,827
1,525,142


Cash flows from investing activities

Purchase of tangible fixed assets
(6,619,371)
(2,752,932)

Proceeds from sale of tangible fixed assets
28,333
85,583

Net cash from investing activities

(6,591,038)
(2,667,349)

Cash flows from financing activities

New secured loans
3,200,000
900,000

Repayment of loans
(498,492)
(468,168)

Repayment of/new finance leases
(71,518)
273,318

Interest paid
(535,618)
(391,248)

Interest received
59,213
25,202

Net cash used in financing activities

2,153,585
339,104
Page 16

 


LENHAM STORAGE COMPANY LIMITED
 



STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024


2024
2023

£
£



Net (decrease) in cash and cash equivalents

(255,626)

(803,103)

Cash and cash equivalents at beginning of year
826,999
1,630,102

Cash and cash equivalents at the end of year
571,373
826,999


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
571,373
826,999

571,373
826,999


The notes on pages 19 to 37 form part of these financial statements.

Page 17

 


LENHAM STORAGE COMPANY LIMITED
 



ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 AUGUST 2024





At 1 September 2023
Cash flows
New finance leases
At 31 August 2024
£

£

£

£

Cash at bank and in hand

826,999

(255,626)

-

571,373

Debt due after 1 year

(3,137,195)

(2,791,701)

-

(5,928,896)

Debt due within 1 year

(840,132)

(99,378)

-

(939,510)

Finance leases

(758,076)

-

71,518

(686,558)


(3,908,404)
(3,146,705)
71,518
(6,983,591)

The notes on pages 19 to 37 form part of these financial statements.

Page 18

 


LENHAM STORAGE COMPANY LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024

1.


General information

Lenham Storage Company Limited is a private company limited by shares incorporated in England and Wales.
The Company's registered number and registered office is disclosed on the company information page. The principal place of business is Ham Lane, Maidstone, Kent, ME17 2LH.
The financial statements are presented in sterling which is the functional currency of the Company and rounded to
the nearest £.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

 
2.2

Revenue

Revenue is recognised from the haulage, storage and handling facilities provided to retail customers. Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Rendering of services

Revenue derived from haulage, storage and handling facilities to retail customers is recognised in the period in which the services are provided when all of the following conditions are satisfied:
the amount of revenue can be measured reliably;
it is probable that the Company will receive the consideration due under the contract;
the stage of completion of the contract at the end of the reporting period can be measured reliably; and
the costs incurred and the costs to complete the contract can be measured reliably.

Rental income is derived from the Company's property portfolio. Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration receivable, excluding discounts, rebates, value added tax and other sales taxes.
Page 19

 


LENHAM STORAGE COMPANY LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024

2.Accounting policies (continued)

 
2.3

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line and reducing balance method. 

Depreciation is provided on the following basis:

Plant and machinery
-
40% straight line
Motor vehicles
-
40% reducing balance
Fixtures and fittings
-
25% straight line
Computer equipment
-
50% straight line
Trailers
-
20 - 40% reducing balance

Individual freehold and leasehold properties are carried at current year value at fair value at the date of the revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. Revaluations are undertaken with sufficient regularity to ensure the carrying amount does not differ materially from that which would be determined using fair value at the reporting date.
Fair values are determined from market based evidence normally undertaken by professionally qualified valuers.

Revaluation gains and losses are recognised in other comprehensive income unless losses exceed the previously recognised gains or reflect a clear consumption of economic benefits, in which case the excess losses are recognised in profit or loss.

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

 
2.4

Impairment of fixed assets and goodwill

Assets that are subject to depreciation or amortisation are assessed at each reporting date to determine whether there is any indication that the assets are impaired. Where there is any indication that an asset may be impaired, the carrying value of the asset (or cash-generating unit to which the asset has been allocated) is tested for impairment. An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset's (or CGU's) fair value less costs to sell and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (CGUs). Non-financial assets that have been previously impaired are reviewed at each reporting date to assess whether there is any indication that the impairment losses recognised in prior periods may no longer exist or may have decreased.

 
2.5

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

 
2.6

Financial instruments

The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.

Page 20

 


LENHAM STORAGE COMPANY LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024

2.Accounting policies (continued)

 
2.7

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.8

Operating lease agreements

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

The Company has taken advantage of the optional exemption available on transition to FRS 102 which allows lease incentives on leases entered into before the date of transition to the standard 01 September 2022 to continue to be charged over the period to the first market rent review rather than the term of the lease.

 
2.9

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for several employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of Financial Position. The assets of the plan are held separately from the Company in independently administered funds.

Defined benefit pension plan

The Company operates a defined benefit plan for certain employees. A defined benefit plan defines the pension benefit that the employee will receive on retirement, usually dependent upon several factors including but not limited to age, length of service and remuneration. A defined benefit plan is a pension plan that is not a defined contribution plan.

The liability recognised in the Statement of Financial Position in respect of the defined benefit plan is the present value of the defined benefit obligation at the end of the reporting date less the fair value of plan assets at the reporting date (if any) out of which the obligations are to be settled.

The defined benefit obligation is calculated using the projected unit credit method. Annually the company engages independent actuaries to calculate the obligation. The present value is determined by discounting the estimated future payments using market yields on high quality corporate bonds that are denominated in sterling and that have terms approximating to the estimated period of the future payments ('discount rate').

The fair value of plan assets is measured in accordance with the FRS102 fair value hierarchy and in accordance with the Company's policy for similarly held assets. This includes the use of appropriate valuation techniques.

Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are charged or credited to other comprehensive income. These amounts together with the return on plan assets, less amounts included in net interest, are disclosed as 'Remeasurement of net defined benefit liability'.

Page 21

 


LENHAM STORAGE COMPANY LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024

2.Accounting policies (continued)


2.9
Pensions (continued)

The cost of the defined benefit plan, recognised in profit or loss as employee costs, except where included in the cost of an asset, comprises:

a) the increase in net pension benefit liability arising from employee service during the period; and

b) the cost of plan introductions, benefit changes, curtailments and settlements.

The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and the fair value of plan assets. This cost is recognised in profit or loss as a 'finance expense'.

 
2.10

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
2.11

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

 
2.12

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
 
Increases in provisions are generally charged as an expense to profit or loss.

 
2.13

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.


Page 22

 


LENHAM STORAGE COMPANY LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024

3.


Judgements in applying accounting policies and key sources of estimation uncertainty

The main judgement area in the accounts is that involving the valuation of the defined benefit pension scheme, and in turn the valuation of the pension liability. 
A valuation of the scheme liability is carried out annually by the scheme actuary as at the end of the reporting period. This utilises information contained within the last triennial actuarial assessment for the scheme dated 31 January 2022 in conjunction with updated data for the current reporting period, and are accepted as providing suitably robust figures for financial reporting purposes. Of course there is an element of estimation uncertainty due to the valuation of the scheme liability as at 31 August 2024 being based on valuation data as at 31 January 2022. In undertaking this actuarial assessment, the methodology prescribed in IAS 540 have also been used.
An independent, qualified actuary is employed to annually value the assets and obligations of the pension scheme. The directors believe this sufficiently minimises the risk of the assets and obligations of the scheme being  misstated.
Another judgement area in the accounts is that involving the valuation of freehold properties. However, all properties are valued by independent RICS registered professionals. The experts are appropriately qualified and experienced therefore, the directors believe there is little risk the valuation of freehold property is materially misstated.


4.


Turnover

Turnover is derived from the principal activity of the rendering of services within the UK. Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.


An analysis of turnover by class of business is as follows:


2024
2023
£
£

Transport
30,837,974
29,764,205

Handling
13,181,404
12,029,011

Storage
6,638,608
6,142,478

Labelling
448,681
172,597

Repack
2,184,202
1,674,186

E shop
334,990
292,961

53,625,859
50,075,438


All turnover arose within the United Kingdom.


5.


Other operating income

2024
2023
£
£

Rental income
189,798
179,041

189,798
179,041


Page 23

 


LENHAM STORAGE COMPANY LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024

6.


Operating profit

The operating profit is stated after charging:

2024
2023
£
£

Depreciation of tangible assets
650,850
824,317

Other operating lease rentals
1,062,109
998,312


7.


Auditor's remuneration

During the year, the Company obtained the following services from the Company's auditor and its associates:


2024
2023
£
£

Fees payable to the Company's auditor and its associates for the audit of the Company's financial statements
44,750
42,450

Fees payable to the Company's auditor and its associates in respect of:

All non-audit services not included above
35,388
23,801

8.


Employees

Staff costs, including directors' remuneration, were as follows:


2024
2023
£
£

Wages and salaries
21,214,813
18,669,726

Social security costs
2,044,531
1,853,904

Cost of defined benefit scheme
528,226
470,944

Cost of defined contribution scheme
54,789
64,886

23,842,359
21,059,460


The average monthly number of employees, including the directors, during the year was as follows:


        2024
        2023
            No.
            No.







Office and management
60
63



Warehouse and transport
478
468

538
531

Page 24

 


LENHAM STORAGE COMPANY LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024

9.


Directors' remuneration

2024
2023
£
£

Directors' emoluments
1,293,835
1,610,968

Company contributions to defined contribution pension schemes
54,789
64,886

1,348,624
1,675,854


During the year retirement benefits were accruing tono directors (2023 -  NIL) in respect of defined contribution pension schemes.

The highest paid director received remuneration of £345,566 (2023 - £440,240).

The value of the Company's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £14,024 (2023 - £10,000).


10.


Interest receivable

2024
2023
£
£


Other interest receivable
39,916
25,202

39,916
25,202


11.


Interest payable and similar expenses

2024
2023
£
£


Bank interest payable
124,419
80,101

Other loan interest payable
342,182
266,508

Finance leases and hire purchase contracts
69,017
44,639

535,618
391,248


12.


Other finance costs

2024
2023
£
£

Net interest on net defined benefit liability
10,000
4,000

10,000
4,000

Page 25

 


LENHAM STORAGE COMPANY LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024

13.


Taxation


2024
2023
£
£

Corporation tax


Current tax on profits for the year
177,818
200,391

Adjustments in respect of previous periods
(1,242)
(916)


176,576
199,475


Total current tax
176,576
199,475

Deferred tax


Origination and reversal of timing differences
196,889
130,001

Total deferred tax
196,889
130,001


Tax on profit
373,465
329,476
Page 26

 


LENHAM STORAGE COMPANY LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024
 
13.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is higher than (2023 - higher than) the standard rate of corporation tax in the UK of 25% (2023 - 21.52%). The differences are explained below:

2024
2023
£
£


Profit on ordinary activities before tax
1,478,697
1,321,558


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 18% (2023 - 21.52%)
369,674
283,988

Effects of:


Capital allowances for year in excess of depreciation
(11,330)
17,053

Expenses not deductible for tax purposes
15,613
10,785

Chargeable gains/(losses)
-
14,233

Adjustments to tax charge in respect of previous periods
(1,242)
(916)

Adjustments to tax charge in respect of previous periods - deferred tax
-
517

Remeasurement of deferred tax for changes in tax rates
-
3,816

Deferred tax movement on defined benefit pension scheme
750
-

Total tax charge for the year
373,465
329,476


Factors that may affect future tax charges

There are no factors that may affect future tax charges.

Page 27

LENHAM STORAGE COMPANY LIMITED
  
 
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024



14.


Tangible fixed assets






Freehold Land and buildings
Plant and machinery
Motor vehicles
Fixtures and fittings
Computer equipment
Other fixed assets

£
£
£
£
£
£



Cost or valuation


At 1 September 2023
30,263,027
8,409,817
1,121,075
286,811
1,441,568
1,925,228


Additions
5,042,466
753,193
87,022
-
448,242
288,448


Disposals
-
-
(80,549)
-
-
-



At 31 August 2024

35,305,493
9,163,010
1,127,548
286,811
1,889,810
2,213,676



Depreciation


At 1 September 2023
146,327
8,073,931
701,419
273,090
1,378,342
1,888,529


Charge for the year on owned assets
-
224,267
181,337
7,063
185,906
52,277


Disposals
-
-
(69,468)
-
-
-



At 31 August 2024

146,327
8,298,198
813,288
280,153
1,564,248
1,940,806



Net book value



At 31 August 2024
35,159,166
864,812
314,260
6,658
325,562
272,870



At 31 August 2023
30,116,700
335,886
419,656
13,721
63,226
36,699
Page 28
 


LENHAM STORAGE COMPANY LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024

           14.Tangible fixed assets (continued)


Total

£



Cost or valuation


At 1 September 2023
43,447,526


Additions
6,619,371


Disposals
(80,549)



At 31 August 2024

49,986,348



Depreciation


At 1 September 2023
12,461,638


Charge for the year on owned assets
650,850


Disposals
(69,468)



At 31 August 2024

13,043,020



Net book value



At 31 August 2024
36,943,328



At 31 August 2023
30,985,888




The net book value of land and buildings may be further analysed as follows:


2024
2023
£
£

Freehold land and buildings
35,159,166
30,116,700

35,159,166
30,116,700


There is a fixed charge over the freehold land and buildings in place as at the balance sheet date.
The directors do not believe that there has been a change in the valuation of the land or buildings from the previous revaluation on 31 August 2023 undertaken by external valuers, Lambert Smith Hampton in accordance with the RICS Red Book Global Standards, on an open market for existing use basis.

Page 29

 


LENHAM STORAGE COMPANY LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024

           14.Tangible fixed assets (continued)

If the land and buildings had not been included at valuation they would have been included under the historical cost convention as follows:

2024
2023
£
£



Cost
20,474,183
15,431,717

Accumulated depreciation
(1,295,499)
(1,183,128)

Net book value
19,178,684
14,248,589




15.


Debtors

2024
2023
£
£



Trade debtors
10,010,642
7,809,488

Amounts owed by entities under common control
1,376,129
456,187

Other debtors
225,385
176,839

Prepayments and accrued income
2,182,757
2,680,940

13,794,913
11,123,454



16.


Creditors: Amounts falling due within one year

2024
2023
£
£

Bank loans
1,811,633
1,598,731

Trade creditors
4,749,475
3,860,404

Amounts owed to entities under common control
3,956,764
2,306,332

Other taxation and social security
1,323,744
1,076,137

Obligations under finance lease and hire purchase contracts
378,631
349,132

Other creditors
3,711,080
1,765,486

Accruals and deferred income
1,085,648
1,358,335

17,016,975
12,314,557


Page 30

 


LENHAM STORAGE COMPANY LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024

17.


Creditors: Amounts falling due after more than one year

2024
2023
£
£

Bank loans
4,867,202
2,378,596

Net obligations under finance leases and hire purchase contracts
307,927
408,944

5,175,129
2,787,540


All bank loans, overdraft facilities, BACS facility and company credit cards are secured over the Company's land and buildings together with a cross guarantee with Lenham Storage (Southern) Limited, Lenham Garages Limited, Fitzmaurice Carriers Limited and Lenham Storage (Midlands) Limited.


18.


Loans


Analysis of the maturity of loans is given below:


2024
2023
£
£

Amounts falling due within one year

Bank loans
1,811,633
1,598,731


1,811,633
1,598,731

Amounts falling due greater than one year

Amounts falling due 2-5 years

Bank loans
2,433,930
1,988,464


2,433,930
1,988,464

Amounts falling due after more than 5 years

Bank loans
2,433,272
390,132

2,433,272
390,132

6,678,835
3,977,327


Page 31

 


LENHAM STORAGE COMPANY LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024

19.


Hire purchase and finance leases


Minimum lease payments under hire purchase fall due as follows:

2024
2023
£
£


Within one year
378,629
349,132

Between 1-5 years
307,927
408,944

686,556
758,076

The total expense recognised in the year in the financial statements for assets under hire purchase was £378,717 (2023: £165,211).


20.


Financial instruments

2024
2023
£
£

Financial assets


Financial assets measured at fair value through profit or loss
571,373
826,999

Financial assets that are debt instruments measured at amortised cost
11,609,223
8,442,514

12,180,596
9,269,513


Financial liabilities


Financial liabilities measured at amortised cost
(20,868,360)
(14,025,960)


Financial assets measured at amortised cost comprise of trade debtors and other debtors.


Financial liabilities measured at amortised cost comprise of trade creditors, other creditors, accruals, bank loans and obligations under finance leases and hire purchase contracts.


21.


Deferred taxation




2024


£






At beginning of year
(664,343)


Charged to profit or loss
(196,889)


Charged to other comprehensive income
(27,500)



At end of year
(888,732)

Page 32

 


LENHAM STORAGE COMPANY LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024
 
21.Deferred taxation (continued)

The provision for deferred taxation is made up as follows:

2024
2023
£
£


Fixed asset timing differences
124,816
347,880

Short term timing differences
11,494
12,069

Capital gains
(997,542)
(997,542)

Retirement benefit obligations
(27,500)
(26,750)

(888,732)
(664,343)


22.


Share capital

2024
2023
£
£
Allotted, called up and fully paid



2,002 (2023 - 2,002) Ordinary shares of £1.00 each
2,002
2,002

The ordinary shares are classified as equity shares and entitle the shareholder to full voting rights. One share
classifies as one vote and on a poll each member has one vote per share held. Ordinary shares rank equally for any dividends declared or distributions made on winding up. The shares are not redeemable.


23.


Reserves

Revaluation reserve

The revaluation reserve is the positive difference between an asset's fair market value and its original cost, less deferred tax.

Profit and loss account

This account records retained earnings and losses.


24.


Contingent liabilities

A contingent liability exists at the balance sheet date in respect to a fixed charge over the Company's freehold land and buildings detailed in Note 13 and an unlimited cross guarantee given to the other companies with majority common shareholders which comprise the Lenham ''Group''  in order to secure their banking facilities.
As the guarantee is solely for the purpose of securing banking facilities, no specific timing for any cash outflow can be reasonably estimated. The likelihood and timing of any financial impact are inherently uncertain and contingent on future events, which are currently not anticipated to result in any material cash outflows.

Page 33

 


LENHAM STORAGE COMPANY LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024

25.


Pension commitments

The Company operates a defined benefit pension scheme entitled Lenham Storage Group Retirement Benefits Scheme.

There are no other post-retirement benefits provided.
 



Reconciliation of present value of plan liabilities:


2024
2023
£
£

Reconciliation of present value of plan liabilities


At 1 September 2023
716,000
876,000

Interest cost
36,000
34,000

Actuarial (gains)/losses
34,000
(59,000)

Benefits paid
(73,000)
(135,000)

At the end of the year
713,000
716,000



Reconciliation of present value of plan assets:


2024
2023
£
£


At 1 September 2023
907,000
956,000

Interest income
46,000
38,000

Return on plan assets (excluding amounts included in net interest)
37,000
48,000

Benefits paid
(73,000)
(135,000)

At the end of the year
917,000
907,000


Composition of plan assets:


2024
2023
£
£


Equities
18,340
9,070

Property
9,170
9,070

Bonds
165,060
154,190

Cash
27,510
36,280

Insured pensioners
696,920
698,390

Total plan assets
917,000
907,000

The actual gain on plan assets was £83,000 (2023: £86,000).
Page 34

 


LENHAM STORAGE COMPANY LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024
 
25.Pension commitments (continued)

2024
2023
£
£


Fair value of plan assets
917,000
907,000

Present value of plan liabilities
(713,000)
(716,000)

Net pension scheme liability
204,000
191,000


The amounts recognised in profit or loss are as follows:

2024
2023
£
£


Interest on obligation
10,000
4,000

Total
10,000
4,000



The Company expects to contribute £Nil to its defined benefit pension scheme entitled Lenham Storage Group Retirement Benefits Scheme in 2025.

2024
2023
£
£

Analysis of actuarial loss recognised in Other Comprehensive Income


Return on assets, less interest included in profit & loss
37,000
48,000

Experience gains and losses arising on plan liabilities
(18,000)
(21,000)

Changes in assumptions underlying the present value of plan liabilities
(16,000)
80,000

3,000
107,000


Principal actuarial assumptions at the reporting date (expressed as weighted averages):

2024
2023
%
%
Discount rate


4.90

5.25
 
Future salary increases


2.80

3.00
 
Future pension increases


3.30

3.50
 
Inflation assumption


3.30

3.50
 
Mortality rates


Years

Years
 
- for a male aged 65 now


22.3

22.4
 
- at 65 for a male aged 45 now


23.9

23.9
 
- for a female aged 65 now


24.8

24.8
 
- at 65 for a female member aged 45 now


26.5

26.5
 


Page 35

 


LENHAM STORAGE COMPANY LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024
 
25.Pension commitments (continued)


Amounts for the current and previous four periods are as follows:


Defined benefit pension schemes

2024
2023
2022
2021
2020
£
£
£
£
£
Defined benefit obligation

(713,000)

(716,000)

(876,000)
 
(1,138,000)
 
(1,282,000)

Scheme assets

917,000

907,000

956,000
 
1,154,000
 
1,299,000

Surplus
204,000

191,000

80,000
 
16,000
 
17,000





26.


Commitments under operating leases

At 31 August 2024 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2024
2023
£
£


Not later than 1 year
4,652,057
4,823,357

Later than 1 year and not later than 5 years
10,332,833
8,621,942

Later than 5 years
454,642
346,485

15,439,532
13,791,784

Page 36

 


LENHAM STORAGE COMPANY LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024

27.


Related party transactions

During the year there were transactions with companies in which shareholders R. F. Tolhurst and D. J. Abrehart, have controlling interests. The companies involved are Lenham Storage (Southern) Limited, Lenham Garages Limited, Freightflow International Limited, Lee Davey Caravans Limited, Lenham Storage (Midlands) Limited and Fitzmaurice Carriers Limited.
Total sales in the year to Lenham Garages Limited amounted to £20,052 (2023: £23,049), sales to Lenham Storage (Southern) Company Limited amounted to £2,697,792 (2023: £3,373,559) and sales to Lee Davey Caravans Limited amounted to £32,502 (2023: £33,133). Total purchases in the year from Lenham Garages Limited and Lenham Storage (Southern) Limited amounted to £1,418,284 (2023: £1,417,708) and £3,472,134 (2023: £3,546,468) respectively. 
Included within amounts owed by related parties are the following balances due from these related companies:
Lenham Garages Limited £484,142 (2023: £199,858).

Lenham Storage (Southern) Limited £845,882 (2023: £201,555).

Lee Davey Caravans Limited £5,879 (2023: £5,825).

Lenham Storage (Midlands) Limited £15,180 (2023: £45,180).

Fitzmaurice Carriers Limited £25,046 (2023: £37,687).

Included within amounts owed to related parties are the following balances due to these related companies:

Lenham Storage (Southern) Limited £3,279,003 (2023: £1,801,005).

Lenham Garages Limited £385,257 (2023: £113,342).

Lee Davey Caravans Limited £114 (2023: £140,112).

Fitzmaurice Carriers Limited £292,391 (2023: £251,872).

All of the above transactions were undertaken on an arm's length basis.

At the year end, directors were owed £189,571 (2023: £147,864) by the Company to be repaid within one year. No interest was charged on these loans (2023: Nil).

There are no other key management personnel other than the directors.


28.


Controlling party

The directors are of the opinion that there is no one controlling party. 

 
Page 37