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REGISTERED NUMBER: 02057541 (England and Wales)















FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024

FOR

L.C.M. SYSTEMS LIMITED

L.C.M. SYSTEMS LIMITED (REGISTERED NUMBER: 02057541)

CONTENTS OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024










Page

Company Information 1

Balance Sheet 2

Notes to the Financial Statements 3 to 9


L.C.M. SYSTEMS LIMITED

COMPANY INFORMATION
FOR THE YEAR ENDED 31 DECEMBER 2024







DIRECTORS: Mrs C A Caris
Mrs S L Cowan
J L Williams





SECRETARY: J W Fairfield





REGISTERED OFFICE: Unit 15
Newport Business Park
Barry Way
Newport
Isle of Wight
PO30 5GY





REGISTERED NUMBER: 02057541 (England and Wales)





AUDITORS: Bright Brown Limited
Chartered Accountants
Statutory Auditor
Exchange House
St. Cross Lane
Newport
Isle of Wight
PO30 5BZ

L.C.M. SYSTEMS LIMITED (REGISTERED NUMBER: 02057541)

BALANCE SHEET
31 DECEMBER 2024

2024 2023
Notes £    £    £   
FIXED ASSETS
Intangible assets 4 29,001 23,277
Tangible assets 5 633,247 567,574
662,248 590,851

CURRENT ASSETS
Stocks 377,178 412,645
Debtors 6 1,488,958 891,326
Cash at bank 25,605 496,336
1,891,741 1,800,307
CREDITORS
Amounts falling due within one year 7 712,717 955,693
NET CURRENT ASSETS 1,179,024 844,614
TOTAL ASSETS LESS CURRENT LIABILITIES 1,841,272 1,435,465

CREDITORS
Amounts falling due after more than one
year

8

(234,929

)

(32,978

)

PROVISIONS FOR LIABILITIES (73,423 ) (76,700 )
NET ASSETS 1,532,920 1,325,787

CAPITAL AND RESERVES
Called up share capital 10,000 10,000
Share premium 23,002 23,002
Retained earnings 1,499,918 1,292,785
1,532,920 1,325,787

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

In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 21 May 2025 and were signed on its behalf by:




J L Williams - Director


L.C.M. SYSTEMS LIMITED (REGISTERED NUMBER: 02057541)

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


1. STATUTORY INFORMATION

L.C.M. Systems Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

These financial statements cover the 12 month period ended 31 December 2024 and are not comparable to the previous period which was for the 13 month period ended 31 December 2023. The reason for the change in the accounting period was to align the financial year with the ultimate parent company, Interface Inc.

Related party exemption
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Turnover
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Sale of goods
The sale of goods is recognised when the following conditions are satisfied:
- the company has transferred the significant risks and rewards of ownership to the buyer;
- the company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
- the amount of turnover can be measured reliably;
- it is probable that the company will receive the consideration due under the transaction; and
- the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Goodwill
Goodwill, being the amount paid in connection with the acquisition of a business in 2004, is being amortised evenly over its estimated useful life of ten years.

Intangible assets
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Development costs are being amortised evenly over their estimated useful life of ten years.

L.C.M. SYSTEMS LIMITED (REGISTERED NUMBER: 02057541)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2024


2. ACCOUNTING POLICIES - continued

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off the cost less estimated residual value of each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.
Land and buildings - 15% on reducing balance and 4% on reducing balance
Plant and machinery etc - 33% on reducing balance and 15% on reducing balance

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

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

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

Stocks
Stocks and work in progress are valued at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell.

Cost is calculated using the first-in, first-out method and includes all purchase, transport, and handling costs in bringing stocks to their present location and condition.

At each reporting date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

L.C.M. SYSTEMS LIMITED (REGISTERED NUMBER: 02057541)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2024


2. ACCOUNTING POLICIES - continued

Foreign currencies
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Hire purchase and leasing commitments
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

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

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. Amounts not paid are shown in accruals as a liability in the balance sheet. The assets of the plan are held separately from the company in independently administered funds.

Going concern
The financial statements have been prepared on a going concern basis.

The directors have made an assessment in preparing these financial statements as to whether the company is a going concern and have concluded that there are no material uncertainties that may cast doubt on the company's ability to continue as a going concern.

3. EMPLOYEES AND DIRECTORS

The average number of employees during the year was 29 (2023 - 25 ) .

L.C.M. SYSTEMS LIMITED (REGISTERED NUMBER: 02057541)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2024


4. INTANGIBLE FIXED ASSETS
Other
intangible
Goodwill assets Totals
£    £    £   
COST
At 1 January 2024 3,500 39,342 42,842
Additions - 9,683 9,683
At 31 December 2024 3,500 49,025 52,525
AMORTISATION
At 1 January 2024 3,500 16,065 19,565
Charge for year - 3,959 3,959
At 31 December 2024 3,500 20,024 23,524
NET BOOK VALUE
At 31 December 2024 - 29,001 29,001
At 31 December 2023 - 23,277 23,277

5. TANGIBLE FIXED ASSETS
Plant and
Land and machinery
buildings etc Totals
£    £    £   
COST
At 1 January 2024 810,610 543,753 1,354,363
Additions 75,448 51,650 127,098
Disposals (8,402 ) (62,795 ) (71,197 )
At 31 December 2024 877,656 532,608 1,410,264
DEPRECIATION
At 1 January 2024 399,116 387,673 786,789
Charge for year 21,050 33,040 54,090
Eliminated on disposal (6,797 ) (57,065 ) (63,862 )
At 31 December 2024 413,369 363,648 777,017
NET BOOK VALUE
At 31 December 2024 464,287 168,960 633,247
At 31 December 2023 411,494 156,080 567,574

L.C.M. SYSTEMS LIMITED (REGISTERED NUMBER: 02057541)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2024


5. TANGIBLE FIXED ASSETS - continued

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:

Land and
buildings
£   
COST
Additions 72,590
At 31 December 2024 72,590
DEPRECIATION
Charge for year 3,630
At 31 December 2024 3,630
NET BOOK VALUE
At 31 December 2024 68,960

6. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Trade debtors 439,988 302,869
Amounts owed by group undertakings 954,154 464,110
Other debtors 94,816 124,347
1,488,958 891,326

7. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Bank loans and overdrafts 42,297 242,881
Hire purchase contracts (see note 9) 29,153 19,455
Trade creditors 363,911 314,319
Taxation and social security 91,551 150,896
Other creditors 185,805 228,142
712,717 955,693

8. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
2024 2023
£    £   
Bank loans 163,767 -
Hire purchase contracts (see note 9) 71,162 32,978
234,929 32,978

L.C.M. SYSTEMS LIMITED (REGISTERED NUMBER: 02057541)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2024


9. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase contracts
2024 2023
£    £   
Net obligations repayable:
Within one year 29,153 19,455
Between one and five years 71,162 32,978
100,315 52,433

Non-cancellable operating leases
2024 2023
£    £   
Within one year 41,584 40,080
Between one and five years 90,720 90,050
In more than five years 99,023 -
231,327 130,130

10. SECURED DEBTS

The following secured debts are included within creditors:

2024 2023
£    £   
Bank loans 206,064 242,881

The bank loan is secured by a fixed and floating charge over all of the company's assets.

Interest is charged at the rate of 2.89% above Bank of England base rate per annum. Total interest charge in the year on the loan was £18,266 (2023 - £10,146)

The loan is due for repayment by June 2029. At 31 December 2023 the company had breached loan covenants set out in the loan agreement and so the full loan balance was shown as payable within one year as this was potentially repayable on demand by the bank. This position was subsequently resolved with the bank and so for the 2024 year the amounts are shown as repayable within and after more than one year in line with the loan agreement.

L.C.M. SYSTEMS LIMITED (REGISTERED NUMBER: 02057541)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2024


11. DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Report of the Auditors was qualified on the following basis:

Basis for qualified opinion
No auditor was appointed at 30 November 2022 and so no observation of the counting of physical inventories was able to be carried out at that date. The previous auditors were unable to satisfy themselves by alternative means of the inventory value of £573,283 shown in the accounts at that date and so were unable to determine whether any adjustment to this amount was potentially necessary, and therefore whether there was also any consequential effect on the cost of sales for the period ended 31 December 2023. Our opinion on the current periods financial statements is therefore modified because of the possible effects of this matter on the comparability of the current periods figures to the corresponding figures.

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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our qualified opinion.

Gavin Kelly ACA FCCA (Senior Statutory Auditor)
for and on behalf of Bright Brown Limited

12. ULTIMATE CONTROLLING PARTY

The immediate parent undertaking is LCM (Holdings) Limited, a company registered in England and Wales.

On 7 June 2023, 100% of the share capital of LCM (Holdings) Limited was acquired by Interface Inc, a company registered in the United States of America. From this date, the ultimate parent undertaking is Interface Inc.

The directors do not consider there to be an ultimate controlling party.