Company registration number 11679776 (England and Wales)
LAGAN DOTT NAMANVE LTD
DIRECTORS' REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
LAGAN DOTT NAMANVE LTD
COMPANY INFORMATION
Directors
Mr Venugopal Boinapally
Mr Declan Canavan
Mr Gerard Cawley
Mr Peter Lagan
Mr Maheswara Reddy Munnamgi
Mr Venkata Peddavandla
Company number
11679776
Registered office
Finance House
Beaumont Road
Banbury
England
OX16 1RH
Auditor
AAB Group Accountants Limited
Howard House
30 Northland Row
Dungannon
Co. Tyrone
Northern Ireland
BT71 6AP
Business address
Plot 30
Bukoto Cresent Road
Naguru
Kampala
Uganda
Bankers
Standard Chartered
1 Basinghall Avenue
London
United Kingdom
EC2V 5DD
Standard Chartered
2nd Floor Standard Charterd House
Plot 5 Speke Road
P.O. Box 7111
Kampala
Uganda
LAGAN DOTT NAMANVE LTD
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Statement of cash flows
11
Notes to the financial statements
12 - 19
LAGAN DOTT NAMANVE LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2024
- 1 -
The directors present the strategic report for the year ended 30 June 2024.
Review of the business
During the year ended 30 June 2024, the total turnover of the company decreased from Shs 114.8 billion to Shs 84.1 billion.
This was mainly attributable to reduced activity during the year. The loss before tax increased from Shs 8.4 billion to Shs 12.9 billion, reflecting the effects of the fixed nature of costs incurred compared to the decrease in turnover.
As at 30 June 2024, deficit in equity was Shs 36.8 billion compared to Shs 23.8 billion as at 30 June 2023 reflecting the effects of net loss for the year.
Principal risks and uncertainties
The overall business environment continues to be challenging and this has a resultant effect on the overall demand of the company's services. The strategic focus of the business continues to be to enhance growth of income whilst generating profit margins which remains dependent on overall market conditions and other factors.
In addition to the business risks noted above, the company's activities expose it to a number of financial risks including credit risk, cash flow and foreign currency risk and liquidity risk as set out below:
Credit risk
The company’s principal financial assets are bank balances and trade and other debtors. The company’s credit risk is primarily attributable to its trade debtors. The amounts presented in the balance sheet are net of allowances for doubtful debtors. An allowance for impairment is made where there is an identified loss event which, based on previous experience, is evidence of a reduction in the recoverability of the cash flows. The credit risk on cash and bank balances is limited because the counterparties are banks with high credit-ratings assigned by international credit-rating agencies. The company has no significant concentration of credit risk, with exposure spread over a number of counterparties.
Cash flow and foreign currency risk
The majority of the company’s sales are in Euro whereas operating expenses are in Uganda Shillings and other currencies. The company is exposed to currency risk. This risk is managed through appropriate operational offset of open receivable and payable foreign currency positions.
Liquidity risk
In order to maintain liquidity to ensure that sufficient funds are available for ongoing operations and future developments, the company monitors its need for cash on a regular basis and takes appropriate action through interbranch and banking financing arrangements.
Key performance indicators
The company's key performance indicators are as follows:
2024 2023
Shs'000 Shs'000
Turnover (Shs'000) 84,137,582 114,828,180
Gross profit (Shs'000) 3,894,066 6,492,049
Net current assets (Shs'000) 46,120,062 120,470,000
LAGAN DOTT NAMANVE LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 2 -
Mr Gerard Cawley
Director
19 June 2025
LAGAN DOTT NAMANVE LTD
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 JUNE 2024
- 3 -
The directors present their annual report and financial statements for the year ended 30 June 2024.
Principal activities
The principal activity of the company is that of construction of civil engineering projects.
Results and dividends
The results for the year are set out on page 8.
No ordinary dividends were paid. The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr Venugopal Boinapally
Mr Declan Canavan
Mr Gerard Cawley
Mr Peter Lagan
Mr Maheswara Reddy Munnamgi
Mr Venkata Peddavandla
Auditor
The auditor, AAB Group Accountants Limited, (formerly FPM Accountants Limited) is deemed to be reappointed under section 487(2) of the Companies Act 2006.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
Going concern
The company incurred a loss of Shs 12,929,616K (2023: Shs 8,411,441K) and has net liabilities of Shs 36,767,640K (2023: Shs 23,828,024K). As the contract continues to progress, a profit is expected to be generated. The company has the continued backing from related parties and the directors, by agreed shareholders support, and as a result the financial statements have been prepared on a going concern.
Branches outside the UK
The company has a branch in Uganda and the address is disclosed on the Company Information page.
Medium-sized companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
On behalf of the board
Mr Gerard Cawley
Director
19 June 2025
LAGAN DOTT NAMANVE LTD
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 JUNE 2024
- 4 -
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law, the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period.
In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent; and
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.
LAGAN DOTT NAMANVE LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF LAGAN DOTT NAMANVE LTD
- 5 -
Opinion
We have audited the financial statements of Lagan Dott Namanve Ltd (the 'company') for the year ended 30 June 2024 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the company's affairs as at 30 June 2024 and of its loss for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
LAGAN DOTT NAMANVE LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF LAGAN DOTT NAMANVE LTD (CONTINUED)
- 6 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
Our procedures to respond to those risk identified included, but were not limited to:
Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion of the effectiveness of the company's internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.
Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our Auditors' report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our Auditors' report. However, future events or conditions may cause the company to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of business.
LAGAN DOTT NAMANVE LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF LAGAN DOTT NAMANVE LTD (CONTINUED)
- 7 -
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
The purpose of our audit work and to whom we owe our responsibilities
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.
Deborah Mullen (Senior Statutory Auditor)
For and on behalf of AAB Group Accountants Limited
Chartered Accountants
Statutory Auditor
Howard House
30 Northland Row
Dungannon
Co. Tyrone
Northern Ireland
BT71 6AP
19 June 2025
LAGAN DOTT NAMANVE LTD
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2024
- 8 -
2024
2023
Notes
Shs'000
Shs'000
Turnover
3
84,137,582
114,828,180
Cost of sales
(80,243,516)
(108,336,131)
Gross profit
3,894,066
6,492,049
Administrative expenses
(16,823,682)
(14,911,320)
Other operating income
7,830
Loss before taxation
(12,929,616)
(8,411,441)
Tax on loss
6
Loss for the financial year
(12,929,616)
(8,411,441)
The profit and loss account has been prepared on the basis that all operations are continuing operations.
LAGAN DOTT NAMANVE LTD
BALANCE SHEET
- 9 -
2024
2023
Notes
Shs'000
Shs'000
Shs'000
Shs'000
Current assets
Debtors falling due after more than one year
7
58,507,066
83,447,738
Debtors falling due within one year
7
87,645,068
128,958,798
Cash at bank and in hand
43,434,683
49,029,045
189,586,817
261,435,581
Creditors: amounts falling due within one year
8
(143,466,755)
(140,965,581)
Net current assets
46,120,062
120,470,000
Creditors: amounts falling due after more than one year
9
(82,887,702)
(144,308,024)
Net liabilities
(36,767,640)
(23,838,024)
Capital and reserves
Called up share capital
10
4,667
4,667
Profit and loss reserves
(36,772,307)
(23,842,691)
Total equity
(36,767,640)
(23,838,024)
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.
The financial statements were approved by the board of directors and authorised for issue on 19 June 2025 and are signed on its behalf by:
Mr Gerard Cawley
Director
Company registration number 11679776 (England and Wales)
LAGAN DOTT NAMANVE LTD
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2024
- 10 -
Share capital
Profit and loss reserves
Total
Shs'000
Shs'000
Shs'000
Balance at 1 July 2022
4,667
(15,431,250)
(15,426,583)
Year ended 30 June 2023:
Loss and total comprehensive income
-
(8,411,441)
(8,411,441)
Balance at 30 June 2023
4,667
(23,842,691)
(23,838,024)
Year ended 30 June 2024:
Loss and total comprehensive income
-
(12,929,616)
(12,929,616)
Balance at 30 June 2024
4,667
(36,772,307)
(36,767,640)
LAGAN DOTT NAMANVE LTD
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2024
- 11 -
2024
2023
Notes
Shs'000
Shs'000
Shs'000
Shs'000
Cash flows from operating activities
Cash (absorbed by)/generated from operations
14
(5,594,362)
37,213,435
Income taxes paid
(50,000)
Net (decrease)/increase in cash and cash equivalents
(5,594,362)
37,163,435
Cash and cash equivalents at beginning of year
49,029,045
11,865,610
Cash and cash equivalents at end of year
43,434,683
49,029,045
LAGAN DOTT NAMANVE LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
- 12 -
1
Accounting policies
Company information
Lagan Dott Namanve Ltd is a private company limited by shares incorporated in England and Wales. The registered office is Finance House, Beaumont Road, Banbury, England, OX16 1RH.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in Ugandan shillings which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest Shs'000.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
The company incurred a loss of Shs 12,929,616K (2023: Shs 8,411,441K) and has net liabilities of Shs 36,767,640K (2023: Shs 23,828,024K). As the contract continues to progress, a profit is expected to be generated. The company has the continued support from related parties and the directors, guaranteed by a shareholders agreement, and as a result the financial statements have been prepared on a going concern.
1.3
Turnover
Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that are recoverable.
1.4
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.5
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
LAGAN DOTT NAMANVE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 13 -
Basic financial assets
The Company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade debtors and creditors. These are measured at amortised cost and are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of comprehensive income.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
LAGAN DOTT NAMANVE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 14 -
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.6
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.7
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.8
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.
1.9
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
LAGAN DOTT NAMANVE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 15 -
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Critical judgements
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
Amounts recoverable on contracts
When the outcome of a construction project contract can be estimated reliably and it is probable that the contract will be profitable, contract revenue and accruals/costs are recognised over the period of the contract by reference to the stage of completion using the 'percentage-of-completion-method' to determine the appropriate amount to recognise in a given period. When it is probable that the total contract costs will exceed total contract revenue, the expected loss is recognised immediately.
3
Turnover
2024
2023
Shs'000
Shs'000
Turnover analysed by class of business
Rendering of civil engineering services
84,137,582
114,828,180
2024
2023
Shs'000
Shs'000
Turnover analysed by geographical market
Uganda
84,137,582
114,828,180
4
Operating loss
2024
2023
Operating loss for the year is stated after charging/(crediting):
Shs'000
Shs'000
Exchange gains
(1,140)
(38,009)
Fees payable to the company's auditor for the audit of the company's financial statements
38,157
35,673
Operating lease charges
458,390
249,339
LAGAN DOTT NAMANVE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 16 -
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Total
14
14
Their aggregate remuneration comprised:
2024
2023
Shs'000
Shs'000
Wages and salaries
2,546,757
2,199,200
Social security costs
121,991
62,412
2,668,748
2,261,612
6
Taxation
The actual charge for the year can be reconciled to the expected credit for the year based on the profit or loss and the standard rate of tax as follows:
2024
2023
Shs'000
Shs'000
Loss before taxation
(12,929,616)
(8,411,441)
Expected tax credit based on the standard rate of corporation tax in the UK of 25.00% (2023: 20.50%)
(3,232,404)
(1,724,345)
Tax effect of expenses that are not deductible in determining taxable profit
62,883
130,503
Unutilised tax losses carried forward
3,169,521
1,593,842
Taxation charge for the year
-
-
Deferred tax is not recognised in respect of tax losses of Shs 37.4 billion (2023: Shs 24.71 billion) as it can not be confirmed that they will be recovered against the reversal of deferred tax liabilities or future taxable profits.
LAGAN DOTT NAMANVE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 17 -
7
Debtors
2024
2023
Amounts falling due within one year:
Shs'000
Shs'000
Trade debtors
15,794,907
2,082
Gross amounts owed by contract customers
9,222,685
44,401,137
Corporation tax recoverable
1,184,550
1,184,550
Amounts owed by related parties
55,102,279
74,733,208
Other debtors
4,432,794
4,656,541
Prepayments and accrued income
1,907,853
3,981,280
87,645,068
128,958,798
2024
2023
Amounts falling due after more than one year:
Shs'000
Shs'000
Trade debtors
16,773,094
11,003,605
Deposits held
41,733,972
72,444,133
58,507,066
83,447,738
Total debtors
146,152,134
212,406,536
Amounts owed by related parties are unsecured, interest free and repayable on demand.
8
Creditors: amounts falling due within one year
2024
2023
Shs'000
Shs'000
Trade creditors
848,564
332,968
Amounts owed to related parties
75,479,476
78,305,346
Taxation and social security
140,281
138,918
Other creditors
65,768,874
61,205,906
Accruals and deferred income
1,229,560
982,443
143,466,755
140,965,581
Amounts owed to related parties are unsecured, interest free and repayable on demand.
9
Creditors: amounts falling due after more than one year
2024
2023
Shs'000
Shs'000
Other creditors
82,887,702
144,308,024
LAGAN DOTT NAMANVE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 18 -
10
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
Shs'000
Shs'000
Issued and fully paid
of Shs'000 each
100
100
4,667
4,667
11
Related party transactions
Transactions with related parties
During the year the company entered into the following transactions with related parties:
Purchases of services
Costs recharged
2024
2023
2024
2023
Shs'000
Shs'000
Shs'000
Shs'000
Dott Services Ltd
73,730,077
98,338,784
1,198,004
1,528,137
Lagan Group Limited
-
-
13,807,458
13,850,342
The following amounts were outstanding at the reporting end date:
2024
2023
Amounts due to related parties
Shs'000
Shs'000
Dott Services Ltd
57,971,655
69,455,241
Lagan Investments Ltd
676,193
680,083
Lagan Group Limited
16,831,628
8,170,022
The following amounts were outstanding at the reporting end date:
2024
2023
Amounts due from related parties
Shs'000
Shs'000
Dott Services Ltd
30,852,230
18,828,553
Dott Services Tanzania Limited
18,900,312
49,989,245
Lagan Group Limited
5,349,737
5,915,410
12
Ultimate controlling party
There is deemed to be no ultimate controlling party by virtue of a split in the shareholding.
13
Comparative information
Certain comparative information has been restated to reflect a fairer comparison with current year disclosure. These restatements have not had any effect on reported results for the year ended 30 June 2023 nor on total equity as at 30 June 2023.
LAGAN DOTT NAMANVE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 19 -
14
Cash (absorbed by)/generated from operations
2024
2023
Shs'000
Shs'000
Loss after taxation
(12,929,616)
(8,411,441)
Movements in working capital:
Decrease in debtors
66,254,402
41,435,640
(Decrease)/increase in creditors
(58,919,148)
4,189,236
Cash (absorbed by)/generated from operations
(5,594,362)
37,213,435
15
Analysis of changes in net funds
1 July 2023
Cash flows
30 June 2024
Shs'000
Shs'000
Shs'000
Cash at bank and in hand
49,029,045
(5,594,362)
43,434,683
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