| REGISTERED NUMBER: |
| Financial Statements |
| for the Year Ended 31 May 2024 |
| for |
| Lynefield Park Limited |
| REGISTERED NUMBER: |
| Financial Statements |
| for the Year Ended 31 May 2024 |
| for |
| Lynefield Park Limited |
| Lynefield Park Limited (Registered number: 13123691) |
| Contents of the Financial Statements |
| for the Year Ended 31 May 2024 |
| Page |
| Company Information | 1 |
| Balance Sheet | 2 |
| Notes to the Financial Statements | 3 |
| Lynefield Park Limited |
| Company Information |
| for the Year Ended 31 May 2024 |
| DIRECTORS: |
| REGISTERED OFFICE: |
| REGISTERED NUMBER: |
| AUDITORS: |
| Chartered Accountants and Statutory Auditors |
| Medway House |
| Fudan Way |
| Teesdale Business Park |
| Stockton on Tees |
| TS17 6EN |
| Lynefield Park Limited (Registered number: 13123691) |
| Balance Sheet |
| 31 May 2024 |
| 2024 | 2023 |
| as restated |
| Notes | £ | £ | £ | £ |
| FIXED ASSETS |
| Tangible assets | 4 |
| CURRENT ASSETS |
| Debtors | 5 |
| Cash at bank |
| CREDITORS |
| Amounts falling due within one year | 6 |
| NET CURRENT LIABILITIES | ( |
) | ( |
) |
| TOTAL ASSETS LESS CURRENT LIABILITIES |
( |
) |
( |
) |
| PROVISIONS FOR LIABILITIES |
| NET LIABILITIES | ( |
) | ( |
) |
| CAPITAL AND RESERVES |
| Called up share capital |
| Retained earnings | ( |
) | (325,307 | ) |
| ( |
) | ( |
) |
| The financial statements were approved by the Board of Directors and authorised for issue on |
| Lynefield Park Limited (Registered number: 13123691) |
| Notes to the Financial Statements |
| for the Year Ended 31 May 2024 |
| 1. | STATUTORY INFORMATION |
| Lynefield Park Limited is a |
| 2. | ACCOUNTING POLICIES |
| BASIS OF PREPARING THE FINANCIAL STATEMENTS |
| GOING CONCERN |
| Lynefield Park Limited exhibited a profit after tax of £37,131 during the year ended 31 May 2024 with net liabilities at that date being £(288,076). It is noted that net current liabilities at the balance sheet date were £(290,776). |
| Included within these net liability and net current liability figures are £(277,477) of amounts that Lynefield Park Limited owes to its immediate parent company, M.J. Hickey Plant Hire & Contracts Limited and £(138,511) of amounts that Lynefield Park Limited owes to R. Thornton & Co. Ltd, an entity that holds a participating interest in Lynefield Park Limited. |
| It is noted that Lynefield Park Limited (the Company) is a member of the M.J. Hickey Plant Hire & Contracts Limited group of companies (the Group) and - in the context of the net liability and net current liability positions detailed above - the Company receives financial support from other members of the Group when required. The Directors of the Company hence consider that the going concern position of the Company should be assessed in the context of the going concern position of the wider Group. |
| Future Developments |
| The Group is currently in negotiations with a third party regarding the potential sale of part of a property that is held by the parent company, M.J. Hickey Plant Hire & Contracts Limited. The Group has entered into an exclusivity agreement with the third party and is confident that exchange of conditional contracts should occur by the end of August 2025, at which point a non-refundable deposit of £1m becomes receivable by the Group. Completion of the transaction will occur once the relevant conditions have been satisfied, which it is expected will take at least twelve months following exchange of contracts. |
| The Group has also entered into initial discussions with HM Revenue and Customs [HMRC] regarding arranging a time to pay arrangement in respect of certain liabilities of M.J. Hickey Plant Hire & Contracts Limited, R. Thornton & Co. Ltd and Emmex Freight Services Ltd. The total value of the relevant liabilities is expected to be circa £1.2m. The Group is confident that an agreement will be reached with HMRC such that repayment of substantially all of the relevant liabilities will be linked to successful completion of the Group property transaction discussed above. |
| The Group has prepared budgets for the year ending 31 May 2026 along with associated cashflow forecasts allowing for expectations regarding the property transaction and HMRC matters discussed above as well as allowing for an uplift in Group performance levels and operational cash generation (as approximated by EBITDA) compared to recent and contemporary financial performance. |
| Lynefield Park Limited (Registered number: 13123691) |
| Notes to the Financial Statements - continued |
| for the Year Ended 31 May 2024 |
| Following on from the improvement in Group EBITDA performance noted since the balance sheet date the Company and Group are confident that the Group budgets and associated cashflow forecasts should be achievable allowing for expected activity levels and operational plans. |
| As regards activity levels the Group has recently converted circa £1m of prospective contract work into confirmed jobs with a further £0.5m of non-forecast work also having been obtained. |
| As regards operational plans these include continuing to review Group operations, at all levels, to further raise business efficiency going forward. This process will include: identifying and implementing additional cost savings where possible; the continued improvement of internal business processes; and a strengthened focus on job costing, margin management and customer service levels. |
| It is noted that the budgets and cashflow forecasts show that the Group may (if outcomes differ from those in the budgets and cashflow forecasts) require some additional funding during the year ending 31 May 2026 over and above the headroom anticipated on existing finance facilities (which it is expected will continue for the foreseeable future on unchanged terms). |
| Should additional funding be required the Group is considering a number of options including working capital management along with the possible cash realisation of equity on plant and machinery assets via refinancing transactions where appropriate and is confident that additional funding will be accessible as required. |
| Overall, noting the fact that the Company receives financial support from other members of the Group when required and noting the position and uncertainties that exist at present in connection with: |
| - the Group property transaction; |
| - the discussions with HMRC; and |
| - the Group budgets and cashflow forecasts through to 31 May 2026 (and associated possible |
| additional funding requirements) |
| then the Directors have concluded that these circumstances in aggregate represent a material uncertainty that may cast significant doubt upon the Company's ability to continue as a going concern and that, therefore, the Company may be unable to realise its assets and discharge its liabilities in the normal course of business. |
| As noted above the Group is confident that exchange of conditional contracts should occur by the end of August 2025 regarding the Group property transaction and furthermore the Group is confident that that an agreement will be reached with HMRC that links repayment of substantially all of the relevant liabilities to successful completion of the Group property transaction. |
| As also noted above the Company and Group are moreover confident that the Group budgets should be achievable allowing for expected activity levels and operational plans and the Group is also considering a number of options (including working capital management and possible refinancing of plant and machinery assets) to raise additional funding should this be required. |
| Subject to the uncertainties noted above the Directors hence have a reasonable expectation that the Company has adequate resources - to include financial support from other members of the Group when required - to continue in operational existence for the foreseeable future (this being a period of at least twelve months from the date of approval of these financial statements). As such the Company therefore continues to adopt the going concern basis in preparing these financial statements. |
| TURNOVER |
| Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
| TANGIBLE FIXED ASSETS |
| Plant and machinery etc | - |
| Lynefield Park Limited (Registered number: 13123691) |
| Notes to the Financial Statements - continued |
| for the Year Ended 31 May 2024 |
| 2. | ACCOUNTING POLICIES - continued |
| TAXATION |
| Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
| Current or deferred taxation assets and liabilities are not discounted. |
| Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
| DEFERRED TAX |
| Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
| Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
| Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
| HIRE PURCHASE AND LEASING COMMITMENTS |
| Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
| SHARE CAPITAL |
| Called up share capital is allotted, issued and fully paid. |
| 3. | EMPLOYEES AND DIRECTORS |
| The average number of employees during the year was |
| 4. | TANGIBLE FIXED ASSETS |
| Plant and |
| machinery |
| etc |
| £ |
| COST |
| Additions |
| At 31 May 2024 |
| DEPRECIATION |
| Charge for year |
| At 31 May 2024 |
| NET BOOK VALUE |
| At 31 May 2024 |
| Lynefield Park Limited (Registered number: 13123691) |
| Notes to the Financial Statements - continued |
| for the Year Ended 31 May 2024 |
| 5. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
| 2024 | 2023 |
| as restated |
| £ | £ |
| Trade debtors |
| Other debtors |
| 6. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
| 2024 | 2023 |
| as restated |
| £ | £ |
| Trade creditors |
| Amounts owed to group undertakings |
| Amounts owed to participating interests |
| Other creditors |
| Amounts owed to participating interests relate to creditors to entities that hold a participating interest in Lynefield Park Limited. |
| Lynefield Park Limited (Registered number: 13123691) |
| Notes to the Financial Statements - continued |
| for the Year Ended 31 May 2024 |
| 7. | DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006 |
| The Report of the Auditors was unqualified. |
| Michael Moran (Senior Statutory Auditor) |
| for and on behalf of Robson Laidler Accountants Limited t/a Tindle's |
| Chartered Accountants and Statutory Auditors |
| Material uncertainty related to going concern |
| We draw attention to note 2 in the financial statements, which - in the Going Concern section - indicates that the company exhibited a profit after tax of £37,131 during the year ended 31 May 2024 with net liabilities at that date being £(288,076). It is noted that net current liabilities at the balance sheet date were £(290,776). |
| It is also noted in note 2 that Lynefield Park Limited (the Company) is a member of the M.J. Hickey Plant Hire & Contracts Limited group of companies (the Group) and that the Company receives financial support from other members of the Group when required. The directors of the Company hence consider that the going concern position of the Company should be assessed in the context of the going concern position of the wider Group. |
| It is noted that the Future Developments subsection of the Going Concern narrative refers to a number of matters that the directors consider are relevant regarding the future of the Company including: |
| - | a potential Group property disposal transaction which has now entered exclusivity; |
| - | initial discussions having been entered into between the Group and HM Revenue and Customs regarding a time to pay arrangement for certain liabilities; |
| - | post year end performance, activity levels and operational plans; |
| - | the positions showing in the Group budgets and cashflow forecasts and - if outcomes differ from those in the budgets and cashflow forecasts - the fact that the Group may require some additional funding during the year ending 31 May 2026 over and above the headroom on existing finance facilities (which the directors expect will continue for the foreseeable future on unchanged terms); and |
| - | the fact that the directors are confident that additional funding will be accessible as required from a number of options that are under consideration. |
| As stated in note 2, these events or conditions, along with the other matters as set forth in note 2, indicate that a material uncertainty exists that may cast significant doubt on the Company's ability to continue as a going concern. |
| Our opinion is not modified in respect of this matter. |
| 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. |
| Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
| 8. | CONTINGENCIES |
| The property agents of the company are currently in the process of finalising the calculation of certain service charge fees that are due from certain customers. |
| Once this process is complete any surplus over the service charge fees already levied will be repayable to affected customers with any deficit against the service charge fees already levied being covered by additional charges to the affected customers. |
| The property agents have indicated that the service charge reconciliation process upto the end of 2024 is expected to be finalised before the end of 2025 however, at this stage, it is considered that it is not possible to reliably estimate the value of any deficit or surplus on service charge fees that may eventually crystallise. |
| Lynefield Park Limited (Registered number: 13123691) |
| Notes to the Financial Statements - continued |
| for the Year Ended 31 May 2024 |
| 9. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES |
| The following loans to directors subsisted during the years ended 31 May 2024 and 31 May 2023. No interest was charged and the balances were unsecured with no fixed repayment terms: |
| 2024 | 2023 |
| £ | £ |
| Balance outstanding at the start of the period | 2 | 2 |
| Advances in the year | - | - |
| Repayments in the year | - | - |
| Balance outstanding at the end of the period | 2 | 2 |
| 10. | RELATED PARTY DISCLOSURES |
| During the year the immediate parent company was M.J. Hickey Plant Hire & Contracts Limited. The parent of the smallest group of which Lynefield Park Limited is a member and for which consolidated financial statements are drawn up is M.J. Hickey Plant Hire & Contracts Limited, a company incorporated in England and Wales with a registered office at Linton Industrial Estate, Linton, Morpeth, Northumberland, NE61 5SD. |