Company registration number SC607571 (Scotland)
LINEAR UK GROUP LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
LINEAR UK GROUP LIMITED
COMPANY INFORMATION
Directors
Mr S Holmes
Mr G D Holmes
Mr S Paterson
Company number
SC607571
Registered office
7 Maxim Office Park
Parklands Avenue
Eurocentral
Motherwell
ML1 4WQ
Auditor
Azets Audit Services
Titanium 1
Kings Inch Place
Renfrew
United Kingdom
PA4 8WF
LINEAR UK 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
Company balance sheet
11
Group statement of changes in equity
12
Company statement of changes in equity
13
Group statement of cash flows
14
Notes to the financial statements
15 - 33
LINEAR UK 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.

Fair review of the business

The Group results for the year show a pre-tax profit of £1.14m (2023 £1.14m) on turnover of £62.9m (2023 £62.5m). The Group has a net balance sheet value of £4.67m at 30 September 2024 (2023 £4.82m).

Principal risks and uncertainties

The Group is exposed to a variety of business risks including competition; the Scottish and UK economy; liquidity risk and supply chain.

 

Economic Risk

The Group is exposed to local and national market conditions. The directors closely follow economic indicators and consider the impact of economic movements when assessing new contract opportunities.

 

Liquidity Risk

The Group manages its liquidity through a mixture of cash reserves and bank loans. The objective is to ensure a mix of funding offering flexibility and cost effectiveness to manage the needs of the company.

 

Supply Chain

The Group has a strong working relationship with its suppliers and sub contractors and we believe these place the company in a strong position to continue trading profitably.

Risks and uncertainties - Global pandemic

The main risks and uncertainities affecting the group come from its participation in the construction and fit out industry and include:

 

- The general economic conditions impacting the construction and fit out sectors.

- The increase in the regulatory environment.

- Supply chain availability and cost - materials and subcontractors.

- Skilled labour shortages.

- The competitive nature of our industry.

- Energy and fule increases.

 

Management meet regularly to consider the principal risks and uncertainities and believe that our group structure and experienced and skilled workforce leave us in a strong position to meet these challenges.

 

Despite the uncertainty within the market, we are clear about our strategy; we will continue to grow and serve as an essential tier 1 contractor to the UK construction industry. We have and will continue to win work with an order book in excess of our expectations. We have proven during this period to be an agile, resilient and highly liquid business who is in a strong position to continue to grow even in these recessionary times.

Future outlook

The strength of our close and transparent customer and supplier relationships, alongside the continued support of our shareholders, puts the Group in a strong position to continue to grow and move forward once the current disruption has ended.

Key Performance Indicators

The Group regularly monitors key performance indicators including turnover, gross profit, gross margin per contract and EBITDA.

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

On behalf of the board

Mr S Paterson
Director
24 June 2025
LINEAR UK 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 group continued to be that of joinery contractors, shop fitters and design and construction solutions.

Results and dividends

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

Ordinary dividends were paid amounting to £929,161. 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:

Mr S Holmes
Mr G D Holmes
Mr S Paterson
Auditor

The auditor, Azets Audit Services, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

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.

Strategic report

The truegroup has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the group's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of financial risk management and exposure to risks and uncertainties.

LINEAR UK GROUP LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 4 -
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.

On behalf of the board
Mr S Paterson
Director
24 June 2025
LINEAR UK GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF LINEAR UK GROUP LIMITED
- 5 -
Opinion

We have audited the financial statements of Linear UK 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 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:

LINEAR UK GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF LINEAR UK 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.

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.

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

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.

 

We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework.  Based on this understanding, we 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.  This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.

 

In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:

 

 

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation.  This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance.  The risk 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.

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.

Jennifer Alexander (Senior Statutory Auditor)
For and on behalf of Azets Audit Services
24 June 2025
Chartered Accountants
Statutory Auditor
Titanium 1
Kings Inch Place
Renfrew
United Kingdom
PA4 8WF
LINEAR UK GROUP LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 8 -
2024
2023
Notes
£
£
Turnover
3
62,919,463
62,479,416
Cost of sales
(56,556,429)
(55,427,738)
Gross profit
6,363,034
7,051,678
Administrative expenses
(5,614,088)
(6,286,100)
Other operating income
496,580
438,093
Operating profit
5
1,245,526
1,203,671
Interest receivable and similar income
8
675
54,882
Interest payable and similar expenses
9
(112,955)
(114,296)
Profit before taxation
1,133,246
1,144,257
Tax on profit
10
(318,719)
(251,403)
Profit for the financial year
814,527
892,854
Profit/(loss) for the financial year is attributable to:
- Owners of the parent company
560,415
635,280
- Non-controlling interests
254,112
257,574
814,527
892,854
LINEAR UK GROUP LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 9 -
2024
2023
£
£
Profit for the year
814,527
892,854
Other comprehensive income
-
-
Total comprehensive income for the year
814,527
892,854
Total comprehensive income for the year is attributable to:
- Owners of the parent company
560,415
635,280
- Non-controlling interests
254,112
257,574
814,527
892,854
LINEAR UK GROUP LIMITED
GROUP BALANCE SHEET
AS AT
30 SEPTEMBER 2024
30 September 2024
- 10 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
12
164,082
262,229
Investment properties
14
630,790
630,790
Investments
13
40
40
794,912
893,059
Current assets
Debtors
16
23,839,322
20,984,162
Cash at bank and in hand
5,776,385
5,064,822
29,615,707
26,048,984
Creditors: amounts falling due within one year
17
(23,982,411)
(20,783,439)
Net current assets
5,633,296
5,265,545
Total assets less current liabilities
6,428,208
6,158,604
Creditors: amounts falling due after more than one year
18
(1,754,663)
(1,321,519)
Provisions for liabilities
Deferred tax liability
21
6,869
19,423
(6,869)
(19,423)
Net assets
4,666,676
4,817,662
Capital and reserves
Called up share capital
33
34
Capital redemption reserve
25
101
101
Profit and loss reserves
26
4,781,551
5,150,296
Equity attributable to owners of the parent company
4,781,685
5,150,431
Non-controlling interests
(115,009)
(332,769)
4,666,676
4,817,662
The financial statements were approved by the board of directors and authorised for issue on 24 June 2025 and are signed on its behalf by:
24 June 2025
Mr S Paterson
Director
LINEAR UK GROUP LIMITED
COMPANY BALANCE SHEET
AS AT 30 SEPTEMBER 2024
30 September 2024
- 11 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
12
157,681
238,254
Investments
13
408
408
158,089
238,662
Current assets
Debtors
16
2,404,041
5,620,984
Cash at bank and in hand
595,500
-
0
2,999,541
5,620,984
Creditors: amounts falling due within one year
17
(2,509,165)
(5,326,168)
Net current assets
490,376
294,816
Total assets less current liabilities
648,465
533,478
Provisions for liabilities
Deferred tax liability
21
7,008
18,870
(7,008)
(18,870)
Net assets
641,457
514,608
Capital and reserves
Called up share capital
24
33
34
Profit and loss reserves
26
641,424
514,574
Total equity
641,457
514,608

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 £946,958 (2023 - £971,940 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 24 June 2025 and are signed on its behalf by:
24 June 2025
Mr S Paterson
Director
Company registration number SC607571 (Scotland)
LINEAR UK GROUP LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 12 -
Share capital
Capital redemption reserve
Profit and loss reserves
Total controlling interest
Non-controlling interest
Total
Notes
£
£
£
£
£
£
Balance at 1 October 2022
34
101
5,162,405
5,162,540
(481,005)
4,681,535
Year ended 30 September 2023:
Profit and total comprehensive income for the year
-
-
635,280
635,280
257,574
892,854
Dividends
11
-
-
(647,388)
(647,388)
(109,339)
(756,727)
Balance at 30 September 2023
34
101
5,150,297
5,150,432
(332,770)
4,817,662
Year ended 30 September 2024:
Profit and total comprehensive income for the year
-
-
560,415
560,415
254,112
814,527
Dividends
11
-
-
(929,161)
(929,161)
(36,351)
(965,512)
Other movements
(1)
-
-
(1)
-
(1)
Balance at 30 September 2024
33
101
4,781,551
4,781,685
(115,009)
4,666,676
LINEAR UK GROUP LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 13 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 October 2022
34
190,022
190,056
Year ended 30 September 2023:
Profit and total comprehensive income for the year
-
971,940
971,940
Dividends
11
-
(647,388)
(647,388)
Balance at 30 September 2023
34
514,574
514,608
Year ended 30 September 2024:
Profit and total comprehensive income
-
946,958
946,958
Dividends
11
-
(820,108)
(820,108)
Other movements
(1)
-
(1)
Balance at 30 September 2024
33
641,424
641,457
LINEAR UK GROUP LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 14 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
31
4,375,835
(1,826,094)
Interest paid
(112,955)
(114,296)
Income taxes paid
(360,233)
(370,521)
Net cash inflow/(outflow) from operating activities
3,902,647
(2,310,911)
Investing activities
Purchase of tangible fixed assets
-
(6,628)
Proceeds on disposal of tangible fixed assets
25,000
(24,193)
Proceeds on disposal of investment property
-
86,000
Proceeds on disposal of subsidiaries
180
(180)
Receipts from associates
(181)
200
Amounts paid/(drawn) from director loans
68,028
(75,872)
Interest received
675
54,882
Net cash generated from investing activities
93,702
34,209
Financing activities
Repayment of borrowings
(420,000)
(420,000)
Repayment of bank loans
(14,037)
(199,923)
Payment of finance leases obligations
(21,167)
(21,166)
Dividends paid to equity shareholders
(929,161)
(647,388)
Dividends paid to non-controlling interests
(36,351)
(109,339)
Net cash used in financing activities
(1,420,716)
(1,397,816)
Net increase/(decrease) in cash and cash equivalents
2,575,633
(3,674,518)
Cash and cash equivalents at beginning of year
(650,370)
3,024,148
Cash and cash equivalents at end of year
1,925,263
(650,370)
Relating to:
Cash at bank and in hand
5,776,385
5,064,822
Bank overdrafts included in creditors payable within one year
(3,851,122)
(5,715,192)
LINEAR UK GROUP LIMITED
GROUP STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 15 -
1
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.

Key sources of estimation uncertainty

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.

Accounting for long term construction contracts

The Group estimates the outcome of its construction contracts. This is normally measured by the proportion of the period construction has been in progress compared to the estimated total contract duration, except where this would not be representative of the stage of completion.

 

Estimated total contract costs are based on management's detailed budgets and projections. Where management judge that the outcome of a construction contract cannot be estimated reliably, contract revenue is recognised to the extend of contract costs incurred where it is probably they will be recovered.

 

2
Accounting policies
Company information

Linear UK Group Limited (“the company”) is a private limited company domiciled and incorporated in Scotland. The registered office is 7 Maxim Office Park, Parklands Avenue, Eurocentral, Motherwell, ML1 4WQ.

 

The group consists of Linear UK Group Limited and all of its subsidiaries.

2.1
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 freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

LINEAR UK GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
2
Accounting policies
(Continued)
- 16 -
2.2
Basis of consolidation

In the parent company financial statements, Linear Living Limited, Linear Living Scotland Ltd and indirectly Linear Living Scotland Gourock Ltd were deconsolidated in the financial year as a results of a control change. These acquisitions had previously been accounted for under the merger method. Our prior year financial statements have been updated to reflect this position.

 

The consolidated group financial statements consist of the financial statements of the parent company Linear UK Group Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associate.

 

All financial statements are made up to 30 September 2024, with the exception of Linear Projects Manchester Limited whose year ended is 30 April 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

2.3
Going concern

The directors are required to prepare the statutory financial statements on the going concern basis unless it is inappropriate to presume that the Group will continue in business. In satisfaction of this responsibility the directors have considered the Group's ability to meet its liabilities as they fall due.

 

The Group meets its day to day working capital requirements through existing bank facilities. Management information tools including budgets and cash flow forecasts are used to monitor and manage current and future liquidity.

 

The current and future financial position of the Group, its cash flows and liquidity position have been reviewed by the directors. The directors have prepared detailed financial projections for a period extending to at least 12 months from the date of approval of these financial statements. The directors are confident that the existing funding facilities will provide sufficient headroom to meet forecast cash requirements having considered any additional requirements that would be contingent on a an extended downturn in activity over the same period.

 

As such, the directors consider that it is appropriate to prepare the financial statements on the going concern basis.

2.4
Turnover

Turnover represents the value of work done during the year ascertained by reference to contract measurement, excluding value added tax.

 

On the balance sheet a contract represents an asset where the gross value of work done exceeds payments to accounts on that contact. These are disclosed within debtors and amounts recoverable on contract.

 

Retentions and payments on account receivable are included in amounts recoverable on contracts.

 

Payments on account received in excess of the value of work done are included in creditors.

2.5
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.

LINEAR UK GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
2
Accounting policies
(Continued)
- 17 -

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:

Leasehold land and buildings
In accordance with the property
Leasehold improvements
In accordance with the property
Fixtures and fittings
20% on reducing balance
Computers
Straight line over three years
Motor vehicles
20% on reducing balance

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.

2.6
Investment properties

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.

2.7
Fixed asset investments

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

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.

2.8
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

2.9
Construction contracts

Where the outcome of a construction contract can be estimated reliably, revenue and costs are recognised by reference to the margin and stage of completion of the contract activity at the reporting end date. Variations in contract work, claims and incentive payments are included to the extent that the amount can be measured reliably and its receipt is considered probable.

 

When it is probable that total contract costs will exceed total contract turnover, the expected loss is recognised as an expense immediately.

 

Where the outcome of a construction contract cannot be estimated reliably, contract revenue is recognised to the extent of contract costs incurred where it is probable that they will be recoverable. Contract costs are recognised as expenses in the period in which they are incurred. When costs incurred in securing a contract are recognised as an expense in the period in which they are incurred, they are not included in contract costs if the contract is obtained in a subsequent period.

LINEAR UK GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
2
Accounting policies
(Continued)
- 18 -
2.10
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.

2.11
Financial instruments

The group 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 group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and 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.

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 group 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 group after deducting all of its liabilities.

LINEAR UK GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
2
Accounting policies
(Continued)
- 19 -
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 group's contractual obligations expire or are discharged or cancelled.

2.12
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.

2.13
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.

LINEAR UK GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
2
Accounting policies
(Continued)
- 20 -
2.14
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.

2.15
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

2.16
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.

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 leased asset are consumed.

2.17
Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

 

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

2.18
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.

3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Contracts
62,919,463
62,479,416
LINEAR UK GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
3
Turnover and other revenue
(Continued)
- 21 -
2024
2023
£
£
Turnover analysed by geographical market
UK
62,919,463
62,479,416
2024
2023
£
£
Other revenue
Interest income
675
54,882
Grants received
3,875
18,189
4
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
13,200
12,000
Audit of the financial statements of the company's subsidiaries
80,540
77,200
93,740
89,200
For other services
Taxation compliance services
10,768
9,970
5
Operating profit
2024
2023
£
£
Operating profit for the year is stated after charging/(crediting):
Government grants
(3,875)
(18,189)
Depreciation of owned tangible fixed assets
72,523
104,895
Depreciation of tangible fixed assets held under finance leases
25,624
25,624
(Profit)/loss on disposal of tangible fixed assets
(25,000)
112,800
Operating lease charges
229,016
235,686
LINEAR UK GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 22 -
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
Administration
87
86
-
-
Management
67
76
30
36
Total
154
162
30
36

Their aggregate remuneration comprised:

Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
7,831,228
8,578,451
1,146,358
1,209,353
Social security costs
326,998
384,924
116,978
119,910
Pension costs
54,144
63,006
22,428
21,821
8,212,370
9,026,381
1,285,764
1,351,084
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
36,660
41,340
Company pension contributions to defined contribution schemes
309
593
36,969
41,933
8
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
675
3,174
Interest receivable from associated companies
-
0
51,708
Total income
675
54,882
2024
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
675
54,882
LINEAR UK GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 23 -
9
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
98,275
98,958
Other interest on financial liabilities
14,080
14,738
112,355
113,696
Other finance costs:
Interest on finance leases and hire purchase contracts
600
600
Total finance costs
112,955
114,296
10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
338,445
393,782
Adjustments in respect of prior periods
(5,028)
(94,044)
Total current tax
333,417
299,738
Deferred tax
Origination and reversal of timing differences
(14,698)
(48,335)
Total tax charge
318,719
251,403

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
1,133,246
1,144,257
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 22.01%)
283,312
251,851
Tax effect of expenses that are not deductible in determining taxable profit
36,887
13,260
Tax effect of income not taxable in determining taxable profit
(6,250)
-
0
Adjustments in respect of prior years
(5,028)
(94,044)
Permanent capital allowances in excess of depreciation
8,240
3,614
Other permanent differences
1,734
81,370
Tax at marginal rate
(176)
-
0
Dividend income
-
(3)
Adjust closing deferred tax to average rate
-
0
(4,645)
Taxation charge
318,719
251,403
LINEAR UK GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 24 -
11
Dividends
2024
2023
Recognised as distributions to equity holders:
£
£
Interim paid
929,161
647,388
12
Tangible fixed assets
Group
Leasehold land and buildings
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 October 2023
312,458
229,788
3,833
76,872
622,951
Disposals
-
0
-
0
(3,833)
-
0
(3,833)
At 30 September 2024
312,458
229,788
-
0
76,872
619,118
Depreciation and impairment
At 1 October 2023
109,613
220,890
1,620
28,599
360,722
Depreciation charged in the year
62,496
7,815
2,213
25,623
98,147
Eliminated in respect of disposals
-
0
-
0
(3,833)
-
0
(3,833)
At 30 September 2024
172,109
228,705
-
0
54,222
455,036
Carrying amount
At 30 September 2024
140,349
1,083
-
0
22,650
164,082
At 30 September 2023
202,845
8,898
2,213
48,273
262,229
Company
Leasehold land and buildings
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
Cost
At 1 October 2023 and 30 September 2024
312,458
229,788
30,787
573,033
Depreciation and impairment
At 1 October 2023
109,613
220,890
4,276
334,779
Depreciation charged in the year
62,496
7,815
10,262
80,573
At 30 September 2024
172,109
228,705
14,538
415,352
Carrying amount
At 30 September 2024
140,349
1,083
16,249
157,681
At 30 September 2023
202,845
8,898
26,511
238,254
LINEAR UK GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 25 -
13
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
15
40
40
408
408
Movements in fixed asset investments
Group
Shares in subsidiaries
£
Cost or valuation
At 1 October 2023 and 30 September 2024
40
Carrying amount
At 30 September 2024
40
At 30 September 2023
40
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 October 2023 and 30 September 2024
408
Carrying amount
At 30 September 2024
408
At 30 September 2023
408
14
Investment property
Group
Company
2024
2024
£
£
Fair value
At 30 September 2023 and 30 September 2024
630,790
-

Investment property comprises of one dwelling. The fair value of the investment property brought forward has been arrived at on the basis of a valuation carried out by the Directors. The valuation was made by reference to market evidence of transaction prices for similar properties.

15
Subsidiaries

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

LINEAR UK GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
15
Subsidiaries
(Continued)
- 26 -
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Linear Projects Limited
(1)
Ordinary
100.00
Linear Design & Construct Limited
(1)
Ordinary
75.00
Linear Design & Construct (Manchester) Limited
(2)
Ordinary
75.00
Linear Building Compliance Limited
(1)
Ordinary
100.00
Linear Projects (Manchester) Limited
(1)
Ordinary
100.00
Linear Crail Limited
(1)
Ordinary
100.00
Linear Fire Safety Limited
(1)
Ordinary
68.00
GS3 Recruitment Limited
(1)
Ordinary
100.00

(1) 7 Maxim Office Park, Parklands Avenue, Eurocentral, Motherwell, ML1 4WQ

(2) Bowdon House, 2 Scott Drive, Altrincham, Cheshire, WA15 8AB

16
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
5,581,692
4,458,429
-
-
0
Gross amounts owed by contract customers
8,616,037
10,056,439
-
0
-
0
Corporation tax recoverable
47,853
261,647
-
0
31,050
Amounts owed by group undertakings
-
-
213,972
5,076,801
Other debtors
769,614
1,769,054
318,929
417,772
Prepayments and accrued income
138,424
102,065
106,168
95,361
15,153,620
16,647,634
639,069
5,620,984
Deferred tax asset (note 21)
4,752
2,608
-
0
-
0
15,158,372
16,650,242
639,069
5,620,984
Amounts falling due after more than one year:
Gross amounts owed by contract customers
1,782,275
1,919,387
-
0
-
0
Amounts owed by group undertakings
-
-
455,790
-
Amount owed by related parties
6,898,675
2,414,533
1,309,182
-
0
8,680,950
4,333,920
1,764,972
-
Total debtors
23,839,322
20,984,162
2,404,041
5,620,984
LINEAR UK GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 27 -
17
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts
19
3,878,066
5,742,124
-
0
2,645,428
Obligations under finance leases
20
9,181
21,167
-
0
-
0
Other borrowings
19
420,000
420,000
-
0
-
0
Payments received on account
2,024,718
1,332,806
-
0
-
0
Trade creditors
5,211,925
3,908,799
156,920
109,069
Amounts owed to group undertakings
-
0
-
0
1,627,600
1,502,007
Corporation tax payable
211,947
452,557
78,267
273,776
Other taxation and social security
1,319,999
2,243,319
253,573
630,430
Deferred income
22
10,343
-
0
-
0
-
0
Other creditors
1,126,638
2,097,649
36,105
34,566
Accruals and deferred income
9,769,594
4,565,018
356,700
130,892
23,982,411
20,783,439
2,509,165
5,326,168
18
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts
19
326,433
340,482
-
0
-
0
Obligations under finance leases
20
-
0
9,181
-
0
-
0
Other borrowings
19
280,000
700,000
-
0
-
0
Other creditors
1,148,230
271,856
-
0
-
0
1,754,663
1,321,519
-
-
19
Loans and overdrafts
Group
Company
2024
2023
2024
2023
£
£
£
£
Bank loans
353,377
367,414
-
0
-
0
Bank overdrafts
3,851,122
5,715,192
-
0
2,645,428
Other loans
700,000
1,120,000
-
0
-
0
4,904,499
7,202,606
-
2,645,428
Payable within one year
4,298,066
6,162,124
-
0
2,645,428
Payable after one year
606,433
1,040,482
-
0
-
0

The Royal Bank of Scotland plc hold standard security including a bond and floating charge over the whole property and undertaking with respect to all sums due and that may become due.

LINEAR UK GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
19
Loans and overdrafts
(Continued)
- 28 -

The bank loans are repayable in monthly instalments with the final repayments due in March 2027 and February 2029. The interest rate on the loans is LIBOR + 1.8%.

 

The other loan relates to the Government backed Coronavirus Business Interruption Loan Scheme. The loan is over a 5 year term and is due to be repaid in May 2026.

20
Finance lease obligations
Group
Company
2024
2023
2024
2023
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
9,181
21,167
-
0
-
0
In two to five years
-
0
9,181
-
0
-
0
9,181
30,348
-
-

Finance lease payments represent rentals payable by the 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. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

21
Deferred taxation

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

Liabilities
Liabilities
Assets
Assets
2024
2023
2024
2023
Group
£
£
£
£
Accelerated capital allowances
6,869
19,423
5,054
2,608
Tax losses
-
-
(302)
-
6,869
19,423
4,752
2,608
Liabilities
Liabilities
Assets
Assets
2024
2023
2024
2023
Company
£
£
£
£
Accelerated capital allowances
7,008
18,870
-
-
LINEAR UK GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
21
Deferred taxation
(Continued)
- 29 -
Group
Company
2024
2024
Movements in the year:
£
£
Liability at 1 October 2023
16,815
18,870
Credit to profit or loss
(14,698)
(11,862)
Liability at 30 September 2024
2,117
7,008

The deferred tax liability set out above is expected to reverse within 12 months and relates to accelerated capital allowances that are expected to mature within the same period.

22
Deferred income
Group
Company
2024
2023
2024
2023
£
£
£
£
Other deferred income
10,343
-
-
-
23
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
54,144
63,006

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
''A - E' Ordinary Shares of 1p each
2,400
2,400
24
24
''C1 - J1' Ordinary Shares of 1p each
932
1,000
9
10
3,332
3,400
33
34

'A - E' Ordinary Shares have full rights in the company with respect to voting, dividends and distributions. The shares are redeemable.

 

'C1 - J1' Ordinary Shares have full rights in the company with respect to voting and dividends. The shares are not redeemable. These shares rank below 'A - E' Ordinary Shares in the event of liquidation, reduction of capital or otherwise.

LINEAR UK GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 30 -
25
Capital redemption reserve
Group
Company
2024
2023
2024
2023
£
£
£
£
At the beginning and end of the year
101
101
-
0
-
0
26
Profit and loss reserves
Group
Company
2024
2023
2024
2023
£
£
£
£
At the beginning of the year
5,150,297
5,162,404
514,574
190,022
Profit for the year
560,415
635,280
946,958
971,940
Dividends
(929,161)
(647,388)
(820,108)
(647,388)
At the end of the year
4,781,551
5,150,296
641,424
514,574
27
Financial commitments, guarantees and contingent liabilities

Linear UK Group Limited has provided an intercompany guarantee to Royal Bank of Scotland for the borrowings of Linear Projects Limited, Linear Design and Construct Limited, Linear Design & Construct (Manchester) and Linear Building Compliance Limited.

28
Operating lease commitments
Lessee

Significant leasing arrangements relate to the lease of printers on fixed rental payments which are due to expire in 2026.

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Group
Company
2024
2023
2024
2023
£
£
£
£
Within one year
14,970
14,970
-
-
Between two and five years
9,023
24,034
-
-
23,993
39,004
-
-
29
Related party transactions
Remuneration of key management personnel

During the year £490,650 (2022: £440,155) was paid to key management personnel of the group.

LINEAR UK GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
29
Related party transactions
(Continued)
- 31 -
Transactions with related parties

During the year the group entered into the following transactions with related parties:

Sales
Sales
Purchases
Purchases
2024
2023
2024
2023
£
£
£
£
Company
Entities over which the company has control, joint control or significant influence
19,389
-
1,422,325
844,248

The following amounts were outstanding at the reporting end date:

Amounts due to related parties
2024
2023
£
£
Company
Entities over which the company has control, joint control or significant influence
52,320
40,000

The following amounts were outstanding at the reporting end date:

Amounts due from related parties
2024
2023
Balance
Balance
£
£
Group
Other related parties
6,898,675
3,145,674
Company
Entities over which the company has control, joint control or significant influence
63,783
135,957
Other related parties
1,320,552
3,145,674

Amounts due from and due to other related parties are from entities in which the parent company has an interest.

 

Other information

At 30 September 2024 the group was owed £30,000 (2023: £30,000) by family members of the directors.

LINEAR UK GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 32 -
30
Directors' transactions

Dividends totalling £590,703 (2023 - £419,238) were paid in the year in respect of shares held by the company's directors.

Advances or credits have been granted by the group to its directors as follows:

Description
% Rate
Opening balance
Amounts repaid
Closing balance
£
£
£
-
10,193
(10,193)
-
-
54,910
(54,910)
-
-
13,950
(13,950)
-
79,053
(79,053)
-
31
Cash generated from/(absorbed by) group operations
2024
2023
£
£
Profit for the year after tax
814,527
892,854
Adjustments for:
Taxation charged
318,719
251,403
Finance costs
112,955
114,296
Investment income
(675)
(54,882)
(Gain)/loss on disposal of tangible fixed assets
(25,000)
112,800
Depreciation and impairment of tangible fixed assets
98,147
130,078
Movements in working capital:
Decrease in stocks
-
114,764
Increase in debtors
(3,134,838)
(4,693,347)
Increase in creditors
6,181,657
1,305,940
Increase in deferred income
10,343
-
Cash generated from/(absorbed by) operations
4,375,835
(1,826,094)
LINEAR UK GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 33 -
32
Analysis of changes in net funds/(debt) - group
1 October 2023
Cash flows
30 September 2024
£
£
£
Cash at bank and in hand
5,064,822
711,563
5,776,385
Bank overdrafts
(5,715,192)
1,864,070
(3,851,122)
(650,370)
2,575,633
1,925,263
Borrowings excluding overdrafts
(1,487,414)
434,037
(1,053,377)
Obligations under finance leases
(30,348)
21,167
(9,181)
(2,168,132)
3,030,837
862,705
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