Company registration number SC152921 (Scotland)
LOCHAY GROUP LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
LOCHAY GROUP LIMITED
COMPANY INFORMATION
Directors
A E W Thomson
C I MacLean
W G R Thomson
Secretary
C I MacLean
Company number
SC152921
Registered office
28 Stafford Street
Edinburgh
EH3 7BD
Auditor
Thomson Cooper
22 Stafford Street
Edinburgh
EH3 7BD
Bankers
The Royal Bank of Scotland
36 St Andrew Square
Edinburgh
EH2 2AD
Solicitors
Davidson Chalmers Stewart LLP
Davidson Chalmers Stewart
12 Hope Street
Edinburgh
EH2 4DB
LOCHAY GROUP LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Profit and loss account
8
Group statement of comprehensive income
9
Group balance sheet
10 - 11
Company balance sheet
12
Group statement of changes in equity
13
Company statement of changes in equity
14
Group statement of cash flows
15
Company statement of cash flows
16
Notes to the financial statements
17 - 33
LOCHAY GROUP LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 1 -

The directors present the strategic report for the year ended 30 September 2024.

Review of the business

In terms of residential development, the demand for housing remained strong during the year under review although seeing these sales through to completions was challenging. Sales of opening market houses especially were impacted by buyer chains due to current market conditions. Delays in the planning systems resulted in subsequent delays in being able to get our projects started, again having an impact particularly on our affordable housing program.

There were 22 open market sales of new homes (2023: 43) and 7 affordable homes sold during the year (2023: 18). Average house prices for open market sales increased to £362,500 during the year (2023: £320,000).

The commercial property development arm continued to trade successfully during the year – disposing of and acquiring new properties as opportunities arose and market conditions permit.

 

The Board takes the opportunity to thank the whole Lochay team along with our sub-contractors, professional advisors, and suppliers in delivering quality housing to time and budget.

 

Key Performance Indicators

 

 

2024

2023

Turnover

£14.043k

£17.421k

Group operating profit

£1,709k

£2,021k

Residential units sold

22

43

Affordable units sold

7

18

Private average house price

£363k

£320k

 

Principal risks and uncertainties

 

Land

An ongoing land purchasing programme remains key to the company’s short and long term objectives. The company is continually identifying potential opportunities within its geographical target of central Scotland to deliver future homes.

 

Sales

As mentioned above, sales performance was challenging during the financial year however the level of demand has seen an upturn post year end. Customer affordability remains a risk to the business particularly during the uncertain economic times. Sales performance is monitored closely to address any issues which arise.

 

Availability and price of materials and labour

The severe material shortages post Covid have now eased, replaced by material and labour cost increases and National Insurance tax rises.

 

Interest rates

The recent reduction in interest rates are encouraging to a market that has become more accustomed to higher rates.

 

Planning

The planning application bureaucracy continues to delay projects from starting and making amendments during development to respond to changing market conditions and customer requirements. In order to ensure these delays are minimised, the company is in regular contact with local authorities.

LOCHAY GROUP LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 2 -

Future developments

The group continues to look for new land opportunities for residential development, mindful of the fact that it can take several years from initial negotiations to bringing a site to development stage. Our short term position is secure without having our financial resources tied up in multiple dormant sites awaiting development. Our efforts are currently focused on the longer term to ensure continuity.

 

A successful commercial development was sold in early 2024 increasing cash availability for new transactions. Subsequent to the year end, offers have been submitted for additional development opportunities and future deals are constantly being explored.

 

Financial instruments

The Group’s operations involve the use of a limited range of financial instruments. These primarily include cash and cash equivalents, trade and other receivables and payables, and bank borrowings. The Group does not trade in financial instruments and does not enter into complex financial arrangements or derivatives.

 

The Board is responsible for setting and monitoring the Group’s risk management framework, including oversight of financial risks. The Group’s financial risk management policies are conservative in nature and focus on ensuring stability, liquidity, and the prudent use of financial resources. Liquidity risk is managed by maintaining sufficient cash reserves and access to committed bank facilities, and cash flow forecasts are reviewed regularly to ensure that the Group can meet its liabilities as they fall due.

 

The Group’s operations and financing are conducted almost entirely in sterling, and it has no material transactions denominated in foreign currencies. As such, the Group is not exposed to foreign exchange risk and does not use any currency hedging instruments.

 

Research and development

The group is continuing to explore alternatives to gas heating in light of the ban in new build homes in Scotland from April 2025. We currently fit solar panels to our housing as standard and are exploring other options such as air and ground source heat pumps to move to lower carbon alternatives.

On behalf of the board

W G R Thomson
Director
16 June 2025
LOCHAY GROUP LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 3 -

The directors present their annual report and financial statements for the year ended 30 September 2024.

Principal activities

The principal activity of the company and group continued to be that of property development, housebuilding, property trading and related consultancy services.

Results and dividends

The results for the year are set out on page 8.

Ordinary dividends were paid amounting to £300,033. The directors do not recommend payment of a further dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

A E W Thomson
C I MacLean
W G R Thomson
Auditor

In accordance with the company's articles, a resolution proposing that Thomson Cooper be reappointed as auditor of the group will be put at a General Meeting.

Statement of directors' responsibilities

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 group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

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 auditor of the company 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 auditor of the company is aware of that information.

LOCHAY GROUP LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 4 -
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
W G R Thomson
Director
16 June 2025
LOCHAY GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF LOCHAY GROUP LIMITED
- 5 -
Opinion

We have audited the financial statements of Lochay Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 September 2024 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows, the company 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:

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 group and parent 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 group's and parent 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 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:

LOCHAY GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF LOCHAY GROUP LIMITED
- 6 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and their 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:

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 parent 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 parent 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.

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; existence and timing of recognition of income, posting of unusual journals and manipulating the Group's key performance indicators to meet targets. We discussed these risks with management, designed audit procedures to test the timing and existence of revenue, tested a sample of journals to confirm they were appropriate, read minutes of Board meetings and reviewed areas of judgement for indicators of management bias to address these risks.

We reviewed areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our sector experience through discussion with the officers and other management (as figured by auditing standards) Whilst the company is subject to many laws and regulations, we did not identify any others where the consequence of non-compliance alone could have a material effect on amounts or disclosures in the financial statements,

We reviewed the laws and regulations in areas that directly affect the financial statements including financial and taxation legislation and considered the extent of compliance with those laws and regulations as part of our procedures on the related financial statement items.

With the exception of any known or possible non-compliance with relevant and significant laws and regulations, and as required by the auditing standards, our work in respect of these was limited to enquiry of the officers and management of the company.

We communicated identified law and regulations throughout our team and remained alter to any indications of non-compliance throughout the audit.

LOCHAY GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF LOCHAY GROUP LIMITED
- 7 -

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

 

These inherent limitations are particularly significant in the case of misstatement resulting from fraud as this may involve sophisticated schemes designed to avoid detection, including deliberate failure to records transactions, collusion or the provision of intentional misrepresentations,

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.

Use of our report

This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in 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.

Alan Mitchell (Senior Statutory Auditor)
For and on behalf of Thomson Cooper
Edinburgh
19 June 2025
LOCHAY GROUP LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 8 -
2024
2023
Notes
£
£
Turnover
3
14,043,440
17,420,542
Cost of sales
(11,837,481)
(14,854,542)
Gross profit
2,205,959
2,566,000
Administrative expenses
(539,071)
(590,229)
Other operating income
41,667
45,000
Operating profit
4
1,708,555
2,020,771
Share of profits of associates
92,574
115,261
Interest receivable and similar income
7
126,091
50,903
Interest payable and similar expenses
8
(205,534)
(236,258)
Gain/(loss) on disposal of investments
32,000
(17,320)
Fair value gains and losses on investment properties
12
-
0
279,962
Profit before taxation
1,753,686
2,213,319
Tax on profit
9
(381,103)
(497,722)
Profit for the financial year
1,372,583
1,715,597
Profit for the financial year is attributable to:
- Owners of the parent company
1,310,165
1,611,520
- Non-controlling interests
62,418
104,077
1,372,583
1,715,597
LOCHAY GROUP LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 9 -
2024
2023
£
£
Profit for the year
1,372,583
1,715,597
Other comprehensive income
-
-
Cash flow hedges gain arising in the year
-
0
-
0
Total comprehensive income for the year
1,372,583
1,715,597
Total comprehensive income for the year is attributable to:
- Owners of the parent company
1,310,165
1,611,520
- Non-controlling interests
62,418
104,077
1,372,583
1,715,597
LOCHAY GROUP LIMITED
GROUP BALANCE SHEET
AS AT
30 SEPTEMBER 2024
30 September 2024
- 10 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
11
342,161
325,691
Investment property
12
2,950,000
2,950,000
Investments
13
680,548
648,917
3,972,709
3,924,608
Current assets
Stocks
16
16,016,851
11,168,156
Debtors
17
1,025,835
717,691
Cash at bank and in hand
156,685
4,468,768
17,199,371
16,354,615
Creditors: amounts falling due within one year
18
(4,169,777)
(2,642,792)
Net current assets
13,029,594
13,711,823
Total assets less current liabilities
17,002,303
17,636,431
Creditors: amounts falling due after more than one year
19
(484,473)
(2,097,092)
Provisions for liabilities
Deferred tax liability
22
310,548
308,060
(310,548)
(308,060)
Net assets
16,207,282
15,231,279
Capital and reserves
Called up share capital
24
10,000
10,000
Revaluation reserve
1,367,007
1,367,007
Profit and loss reserves
12,875,040
11,961,455
Equity attributable to owners of the parent company
14,252,047
13,338,462
Profit for the year
62,418
104,077
Net assets
592,817
488,740
Preference share capital
1,300,000
1,300,000
Total equity
16,207,282
15,231,279
LOCHAY GROUP LIMITED
GROUP BALANCE SHEET (CONTINUED)
AS AT
30 SEPTEMBER 2024
30 September 2024
- 11 -

These financial statements have been prepared in accordance with the provisions relating to medium-sized groups.

The financial statements were approved by the board of directors and authorised for issue on 16 June 2025 and are signed on its behalf by:
16 June 2025
W G R Thomson
Director
Company registration number SC152921 (Scotland)
LOCHAY GROUP LIMITED
COMPANY BALANCE SHEET
AS AT 30 SEPTEMBER 2024
30 September 2024
- 12 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
11
3,995
9,182
Investments
13
241
241
4,236
9,423
Current assets
Stocks
16
233
233
Debtors
17
1,285,437
140,763
Cash at bank and in hand
79,923
1,317,162
1,365,593
1,458,158
Creditors: amounts falling due within one year
18
(124,260)
(77,258)
Net current assets
1,241,333
1,380,900
Total assets less current liabilities
1,245,569
1,390,323
Provisions for liabilities
Deferred tax liability
22
998
2,150
(998)
(2,150)
Net assets
1,244,571
1,388,173
Capital and reserves
Called up share capital
24
10,000
10,000
Profit and loss reserves
1,234,571
1,378,173
Total equity
1,244,571
1,388,173

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £156,431 (2023 - £661,660 profit).

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the board of directors and authorised for issue on 16 June 2025 and are signed on its behalf by:
16 June 2025
W G R Thomson
Director
Company registration number SC152921 (Scotland)
LOCHAY GROUP LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 13 -
Share capital
Revaluation reserve
Profit and loss reserves
Total controlling interest
Non-controlling interest
Total
Notes
£
£
£
£
£
£
Balance at 1 October 2022
10,000
1,277,971
10,448,924
11,736,895
488,740
12,225,635
Year ended 30 September 2023:
Profit and total comprehensive income
-
-
1,611,520
1,611,520
104,077
1,715,597
Bonus issue of shares
24
-
-
-
0
-
1,300,000
1,300,000
Dividends
10
-
-
(9,953)
(9,953)
-
(9,953)
Transfers
-
89,036
(89,036)
-
-
-
Balance at 30 September 2023
10,000
1,367,007
11,961,455
13,338,462
1,892,817
15,231,279
Year ended 30 September 2024:
Profit and total comprehensive income
-
-
1,310,165
1,310,165
62,418
1,372,583
Dividends
10
-
-
(396,580)
(396,580)
-
(396,580)
Balance at 30 September 2024
10,000
1,367,007
12,875,040
14,252,047
1,955,235
16,207,282
LOCHAY GROUP LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 14 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 October 2022
10,000
716,513
726,513
Year ended 30 September 2023:
Profit and total comprehensive income for the year
-
661,660
661,660
Balance at 30 September 2023
10,000
1,378,173
1,388,173
Year ended 30 September 2024:
Profit and total comprehensive income
-
156,431
156,431
Dividends
10
-
(300,033)
(300,033)
Balance at 30 September 2024
10,000
1,234,571
1,244,571
LOCHAY GROUP LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 15 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash (absorbed by)/generated from operations
26
(3,345,535)
341,343
Interest paid
(162,861)
(180,248)
Income taxes paid
(307,524)
(520,283)
Net cash outflow from operating activities
(3,815,920)
(359,188)
Investing activities
Purchase of tangible fixed assets
(80,000)
(135,683)
Proceeds from disposal of tangible fixed assets
42,000
70,012
Proceeds from disposal of investments
-
618,777
Repayment of loans
-
333,333
Interest received
25,093
16,205
Other income received from investments
94,875
20,833
Net cash generated from investing activities
81,968
923,477
Financing activities
Proceeds from issue of shares
-
1,300,000
Repayment of other loans
-
0
(1,650,000)
Proceeds from borrowings
-
2,418,000
Repayment of bank loans
(100,394)
(1,552,834)
Payment of finance leases obligations
(81,157)
(60,056)
Dividends paid to equity shareholders
(391,033)
(333,333)
Dividends paid to non-controlling interests
(5,547)
(5,964)
Net cash (used in)/generated from financing activities
(578,131)
115,813
Net (decrease)/increase in cash and cash equivalents
(4,312,083)
680,102
Cash and cash equivalents at beginning of year
4,468,768
3,788,666
Cash and cash equivalents at end of year
156,685
4,468,768
LOCHAY GROUP LIMITED
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 16 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash (absorbed by)/generated from operations
27
(1,059,749)
279,863
Income taxes paid
(23,747)
(12,086)
Net cash (outflow)/inflow from operating activities
(1,083,496)
267,777
Investing activities
Interest received
17,373
3,664
Other income received from investments
128,917
639,610
Net cash generated from investing activities
146,290
643,274
Financing activities
Dividends paid to equity shareholders
(300,033)
-
Net cash used in financing activities
(300,033)
-
Net (decrease)/increase in cash and cash equivalents
(1,237,239)
911,051
Cash and cash equivalents at beginning of year
1,317,162
406,111
Cash and cash equivalents at end of year
79,923
1,317,162
LOCHAY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 17 -
1
Accounting policies
Company information

Lochay Group Limited (“the company”) is a private limited company domiciled and incorporated in Scotland. The registered office is .

 

The group consists of Lochay Group Limited and all of its subsidiaries.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of certain financial assets and liabilities and investments measured at fair value. The principal accounting policies adopted are set out below.

1.2
Basis of consolidation

The company is the parent of a medium group has prepared consolidated financial statements. The group financial statements consolidate the financial statements of the company and its subsidiary undertakings. The company has taken exemption from presenting its unconsolidated profit and loss accounts under section 408 of the Companies Act 2006.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.

Investments in joint ventures and associates are carried in the group balance sheet at cost plus post-acquisition changes in the group’s share of the net assets of the entity, less any impairment in value. The carrying values of investments in joint ventures and associates include acquired goodwill.

 

If the group’s share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the group does not recognise further losses unless it has incurred obligations to do so or has made payments on behalf of the joint venture or associate.

 

Unrealised gains arising from transactions with joint ventures and associates are eliminated to the extent of the group’s interest in the entity.

1.3
Going concern

The financial statements have been prepared on a going concern basis. The directors have assessed the group and the company's ability to continue as a going concern. At the time of approving the financial statements, the directors have a reasonable expectation that the group and the company have adequate resources to continue in operational existence for a period of not less than twelve months. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.4
Turnover

The turnover shown in the consolidated profit and loss account represents amounts receivable during the year, exclusive of Value Added Tax, where there is a right to consideration from property development, trading and investment activities.

LOCHAY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 18 -
1.5
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Plant and equipment
25% Straight Line
Fixtures and fittings
25% Straight Line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.

1.6
Investment property

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.

1.7
Fixed asset investments

Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversal of impairment losses are recognised immediately in the profit and loss.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

1.8
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment.

1.9
Work in progress

Work in progress is valued on the basis of direct costs plus attributable overheads including financing costs. Provision is made for any foreseeable losses where appropriate. No element of profit is included in the valuation of work in progress.

1.10
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.

LOCHAY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 19 -
1.11
Financial instruments

A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument.

 

Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

 

Debt instruments are subsequently measured at amortised cost.

 

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 entity after deducting all of its financial liabilities.

 

Where the contractual obligations of financial instruments (including share capital) are equivalent to a similar debt instrument, those financial instruments are classed as financial liabilities. Financial liabilities are presented as such in the balance sheet. Finance costs and gains or losses relating to financial liabilities are included in the profit and loss account. Finance costs are calculated so as to produce a constant rate of return on the outstanding liability.

 

Where the contractual terms of share capital do not have any terms meeting the definition of a financial liability then this is classified as an equity instrument. Dividends and distributions relating to equity instruments are debited direct to equity.

1.12
Equity instruments

Equity instruments issued by the group 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 group.

1.13
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

LOCHAY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 20 -
1.14
Provisions

Provisions are recognised when the group has a legal or constructive present obligation as a result of a past event, it is probable that the group will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

 

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

1.15
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.

1.16
Retirement benefits

The company makes contributions to defined contribution pension schemes on behalf of certain employees. Payments are charged to the profit and loss in the period to which they relate.

1.17
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

2
Judgements and key sources of estimation uncertainty

In the application of the group’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.

LOCHAY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
2
Judgements and key sources of estimation uncertainty
(Continued)
- 21 -
Key sources of estimation uncertainty

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The group and company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results, The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Useful economic lives of tangible assets

The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of assets. The useful economic lives and residual lives are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. See the fixed asset note for the carrying value of tangible assets.

Work in progress

At the end of each reporting period the company assess the level of work in progress for impairment, If an item of work in progress is impaired, a charge is recognised in the profit and loss account.

Impairment of debtors

The company makes an estimate of the recoverable value of trade and other debtors. When assessing the impairment of trade and other debtors, management considers factors including the current credit rating of the debtor, the ageing profile of debtors and historical experience. See the debtors note for the carrying value of debtors.

3
Turnover
2024
2023
£
£
Turnover analysed by class of business
Property sales
13,417,762
17,002,692
Property rental income
616,128
401,817
Management fees
9,550
16,033
14,043,440
17,420,542
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
14,043,440
17,420,542
LOCHAY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 22 -
4
Operating profit
2024
2023
£
£
Operating profit for the year is stated after charging/(crediting):
Fees payable to the group's auditor
33,062
29,000
Depreciation of owned tangible fixed assets
12,760
18,472
Depreciation of tangible fixed assets held under finance leases
118,478
84,311
Profit on disposal of tangible fixed assets
(24,688)
(29,002)
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
5,000
6,000
Audit of the financial statements of the company's subsidiaries
15,500
12,000
20,500
18,000
For other services
Taxation compliance services
5,250
5,000
All other non-audit services
7,312
6,000
12,562
11,000
6
Employees

The average monthly number of persons (including directors) employed by the group and company during the year was:

Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
18
18
3
5

Their aggregate remuneration comprised:

Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
587,882
365,919
145,731
146,395
Social security costs
16,555
31,977
16,555
19,553
Pension costs
5,002
7,567
5,002
7,567
609,439
405,463
167,288
173,515
LOCHAY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 23 -
7
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
25,093
16,205
Interest receivable from group companies
180
3,348
Total interest revenue
25,273
19,553
Income from fixed asset investments
Income from participating interests - associates
100,818
31,350
Total income
126,091
50,903
2024
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
25,273
19,553
8
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
172,078
168,981
Other interest on financial liabilities
24,500
60,973
196,578
229,954
Other finance costs:
Interest on finance leases and hire purchase contracts
8,956
6,304
Total finance costs
205,534
236,258
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
461,176
410,879
Adjustments in respect of prior periods
(82,561)
56,664
Total current tax
378,615
467,543
Deferred tax
Origination and reversal of timing differences
2,488
30,179
Total tax charge
381,103
497,722
LOCHAY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
9
Taxation
(Continued)
- 24 -

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2024
2023
£
£
Profit before taxation
1,753,686
2,213,319
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 22.01%)
438,422
487,152
Tax effect of expenses that are not deductible in determining taxable profit
1,878
7,549
Gains not taxable
-
0
(66,025)
Change in unrecognised deferred tax assets
-
0
4,728
Adjustments in respect of prior years
(82,514)
20,351
Permanent capital allowances in excess of depreciation
-
0
(2,562)
Other non-reversing timing differences
-
0
13,651
Under/(over) provided in prior years
76
-
0
Deferred tax adjustments in respect of prior years
98
-
0
Other adjustments
-
0
960
Income not taxable for tax purposes
-
0
4,405
Deferred tax rate changes
-
0
2,144
Share of LLP results
23,143
25,369
Taxation charge
381,103
497,722
10
Dividends
2024
2023
Recognised as distributions to equity holders:
£
£
Final paid
300,033
-
LOCHAY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 25 -
11
Tangible fixed assets
Group
Plant and equipment
Fixtures and fittings
Total
£
£
£
Cost
At 1 October 2023
485,390
49,122
534,512
Additions
165,020
-
0
165,020
Disposals
(69,250)
-
0
(69,250)
At 30 September 2024
581,160
49,122
630,282
Depreciation and impairment
At 1 October 2023
168,881
39,940
208,821
Depreciation charged in the year
126,051
5,187
131,238
Eliminated in respect of disposals
(51,938)
-
0
(51,938)
At 30 September 2024
242,994
45,127
288,121
Carrying amount
At 30 September 2024
338,166
3,995
342,161
At 30 September 2023
316,509
9,182
325,691
Company
Fixtures and fittings
£
Cost
At 1 October 2023 and 30 September 2024
49,122
Depreciation and impairment
At 1 October 2023
39,940
Depreciation charged in the year
5,187
At 30 September 2024
45,127
Carrying amount
At 30 September 2024
3,995
At 30 September 2023
9,182
12
Investment property
Group
Company
2024
2024
£
£
Fair value
At 1 October 2023 and 30 September 2024
2,950,000
-
LOCHAY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
12
Investment property
(Continued)
- 26 -

Revaluation of fixed assets

The investment properties were valued by Colliers International, property consultants, as at 30 November 2022 in accordance with the RICS Appraisal and Valuation Manual.

 

The directors have reviewed the carrying value of the investment properties at the year end and are satisfied that the value of these properties reflect the value in use at the year end. The historical cost of the properties is £2,578,709 (2023: £2,578,709).

Hire purchase agreements

Included within the carrying amount of £3,292,161 is £323,158 (2023: £293,929) relating to assets held under hire purchase agreements. The depreciation charged to the financial statements in the year in respect of such assets amounted to £118,478 (2023: £84,311).

13
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
14
-
0
-
0
190
190
Investments in associates
15
680,548
648,917
51
51
680,548
648,917
241
241
Movements in fixed asset investments
Group
Shares in associates
£
Cost or valuation
At 1 October 2023
648,917
Additions
31,631
At 30 September 2024
680,548
Carrying amount
At 30 September 2024
680,548
At 30 September 2023
648,917
LOCHAY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
13
Fixed asset investments
(Continued)
- 27 -
Movements in fixed asset investments
Company
Shares in subsidiaries and associates
£
Cost or valuation
At 1 October 2023 and 30 September 2024
241
Carrying amount
At 30 September 2024
241
At 30 September 2023
241
14
Subsidiaries

Details of the company's subsidiaries at 30 September 2024 are as follows:

Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
Lochay Properties Ltd
Scotland
Property development
Ordinary Shares
100.00
Lochay Homes Ltd
Scotland
House building
Ordinary Shares
90.00
15
Associates

Details of associates at 30 September 2024 are as follows:

Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
Loch Esk Limited
Scotland
Property development
Ordinary Shares
50
39 Hanover Limited
Scotland
Property development
Ordinary Shares
50
16
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Work in progress
16,016,851
11,168,156
233
233
LOCHAY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 28 -
17
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
394,603
176,559
104,331
5,812
Amounts owed by group undertakings
-
-
993,069
123,069
Other debtors
596,637
517,436
179,751
3,181
Prepayments and accrued income
34,595
23,696
8,286
8,701
1,025,835
717,691
1,285,437
140,763
18
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans
20
1,625,679
108,248
-
0
-
0
Obligations under finance leases
21
73,649
74,992
-
0
-
0
Trade creditors
1,095,685
1,057,272
2,242
4,447
Corporation tax payable
106,414
109,048
55,248
23,220
Other taxation and social security
112,501
77,638
45,457
17,885
Other creditors
265,728
413,292
2,428
2,220
Accruals and deferred income
890,121
802,302
18,885
29,486
4,169,777
2,642,792
124,260
77,258

The bank loans are repayable in September 2025. Interest is charged at 2.5% over base rate.

 

The CIBLS loan (Coronavirus Business Interruption Loan) is repayable by May 2026. Interest is charged at 1.3%.

 

Bank loans and overdrafts are secured by a standard security over the group's investment properties and a floating charge over the group's assets.

 

The bank loans and other loans are secured by the group.

19
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts
20
7,771
1,625,596
-
0
-
0
Obligations under finance leases
21
126,702
121,496
-
0
-
0
Other borrowings
20
350,000
350,000
-
0
-
0
484,473
2,097,092
-
-

Bank loans are secured by a standard security over the group's investment properties and a floating charge over the group's assets.

LOCHAY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 29 -
20
Loans and overdrafts
Group
Company
2024
2023
2024
2023
£
£
£
£
Bank loans
1,633,450
1,733,844
-
0
-
0
Other loans
350,000
350,000
-
0
-
0
1,983,450
2,083,844
-
-
Payable within one year
1,625,679
108,248
-
0
-
0
Payable after one year
357,771
1,975,596
-
0
-
0

The other loans are secured by a charge granted by Lochay Homes Limited.

Other loans include a loan from a director of £350,000 (2023 - £350,000) which are repayable on demand, with interest payable at a rate of 7% per annum.

21
Finance lease obligations
Group
Company
2024
2023
2024
2023
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
73,649
74,992
-
0
-
0
In two to five years
126,702
121,496
-
0
-
0
200,351
196,488
-
-

Finance lease payments represent rentals payable by the company or group for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 3 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

22
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

Liabilities
Liabilities
2024
2023
Group
£
£
Accelerated capital allowances
310,548
308,060
LOCHAY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
22
Deferred taxation
(Continued)
- 30 -
Liabilities
Liabilities
2024
2023
Company
£
£
Accelerated capital allowances
998
2,150
Group
Company
2024
2024
Movements in the year:
£
£
Liability at 1 October 2023
308,060
2,150
Charge/(credit) to profit or loss
2,488
(1,152)
Liability at 30 September 2024
310,548
998

The group has an unrecognised deferred tax asset at 30 September 2024 of £27,973 (2023: £27,973). This has arisen from tax losses carried forward of £111,893 which can only be offset in future years against certain tax profits within the companies themselves and £24,275 of connected party capital losses.

23
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
5,002
7,567

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

24
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
10,000
10,000
10,000
10,000

The shares hold full voting rights, and give entitlement to appoint directors, receive dividends and participate in distributions on winding up. These shares are not redeemable.

 

Called up share capital - This reserve represents the nominal value of shares that have been issued.

 

Revaluation reserve - This reserve records the cumulative value of investment property revaluations and fair value movements on investment properties recognised in other comprehensive income.

 

Profit and loss account - This reserve records retained earnings and accumulated losses.

LOCHAY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 31 -
25
Related party transactions

There is no ultimate controlling party of the company.

 

Company

Amounts owed by associated undertakings with common directors/members at the year end totalled £123,069 (2023 - £123,069). Amounts owed by a fellow group company in which Lochay Group holds a majority shareholding totalled £850,000 (2023 - £nil). All amounts owed are interest free and repayable on demand.

The company recovered £250k (2023 - £250k) in respect of management fees due from a fellow group company in which Lochay Group holds a majority shareholding. £75k (2023 – nil) was included within other debtors at the year end.

During the year the company was charged office rent of £52k (£52k) by a director’s self-invested pension scheme.

Group

Amounts owed by associated undertakings with common directors/members at the year end totalled £123,069 (2023 - £123,069). Amounts owed by a fellow group company in which Lochay Group holds a majority shareholding totalled £850,000 (2023 - £nil). All amounts owed are interest free and repayable on demand.

The company recovered £250k (2023 - £250k) in respect of management fees due from a fellow group company in which Lochay Group holds a majority shareholding. £75k (2023 – nil) was included within other debtors at the year end.

At 30 September 2024 £350k (2023 - £350k) was payable by the group to a director. The loan is secured and attracts interest at 7% per annum. A further £83,324 (2023 - £87,562) was payable by the group to a director.

During the year, the group paid £35,500 (£nil) to FT Linden, a company with a common director for professional services.

 

LOCHAY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 32 -
26
Cash (absorbed by)/generated from group operations
2024
2023
£
£
Profit after taxation
1,314,429
1,611,520
Adjustments for:
Share of results of associates and joint ventures
(92,574)
(115,261)
Taxation charged
381,103
497,722
Finance costs
79,443
202,675
Minority interest
58,154
104,077
Gain on disposal of tangible fixed assets
(24,688)
(29,002)
Fair value gain on investment properties
-
0
(279,962)
Depreciation and impairment of tangible fixed assets
131,238
102,783
Movements in working capital:
Increase in stocks
(4,848,695)
(1,531,042)
Increase in debtors
(359,519)
(133,042)
Increase/(decrease) in creditors
15,574
(89,125)
Cash (absorbed by)/generated from operations
(3,345,535)
341,343
27
Cash (absorbed by)/generated from operations - company
2024
2023
£
£
Profit after taxation
156,431
661,660
Adjustments for:
Taxation charged
54,623
35,188
Investment income
(146,290)
(643,274)
Depreciation and impairment of tangible fixed assets
5,187
8,159
Movements in working capital:
(Increase)/decrease in debtors
(1,144,674)
633,709
Increase/(decrease) in creditors
14,974
(415,579)
Cash (absorbed by)/generated from operations
(1,059,749)
279,863
28
Analysis of changes in net funds/(debt) - group
1 October 2023
Cash flows
New finance leases
30 September 2024
£
£
£
£
Cash at bank and in hand
4,468,768
(4,312,083)
-
156,685
Borrowings excluding overdrafts
(2,083,844)
100,394
-
(1,983,450)
Obligations under finance leases
(196,488)
81,157
(85,020)
(200,351)
2,188,436
(4,130,532)
(85,020)
(2,027,116)
LOCHAY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 33 -
29
Analysis of changes in net funds - company
1 October 2023
Cash flows
30 September 2024
£
£
£
Cash at bank and in hand
1,317,162
(1,237,239)
79,923
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