| REGISTERED NUMBER: 10341206 (England and Wales) |
| GROUP STRATEGIC REPORT, |
| REPORT OF THE DIRECTORS AND |
| CONSOLIDATED FINANCIAL STATEMENTS |
| FOR THE YEAR ENDED 31 OCTOBER 2024 |
| FOR |
| LGS HOLDINGS LIMITED |
| REGISTERED NUMBER: 10341206 (England and Wales) |
| GROUP STRATEGIC REPORT, |
| REPORT OF THE DIRECTORS AND |
| CONSOLIDATED FINANCIAL STATEMENTS |
| FOR THE YEAR ENDED 31 OCTOBER 2024 |
| FOR |
| LGS HOLDINGS LIMITED |
| LGS HOLDINGS LIMITED (REGISTERED NUMBER: 10341206) |
| CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
| FOR THE YEAR ENDED 31 OCTOBER 2024 |
| Page |
| Company Information | 1 |
| Group Strategic Report | 2 |
| Report of the Directors | 3 |
| Report of the Independent Auditors | 4 |
| Consolidated Statement of Comprehensive Income | 7 |
| Consolidated Balance Sheet | 8 |
| Company Balance Sheet | 9 |
| Consolidated Statement of Changes in Equity | 10 |
| Company Statement of Changes in Equity | 11 |
| Consolidated Cash Flow Statement | 12 |
| Notes to the Consolidated Cash Flow Statement | 13 |
| Notes to the Consolidated Financial Statements | 14 |
| LGS HOLDINGS LIMITED |
| COMPANY INFORMATION |
| FOR THE YEAR ENDED 31 OCTOBER 2024 |
| DIRECTORS: |
| REGISTERED OFFICE: |
| REGISTERED NUMBER: |
| AUDITORS: |
| Statutory Auditors and Chartered Accountants |
| Rutland House |
| 90-92 Baxter Avenue |
| Southend on Sea |
| Essex |
| SS2 6HZ |
| LGS HOLDINGS LIMITED (REGISTERED NUMBER: 10341206) |
| GROUP STRATEGIC REPORT |
| FOR THE YEAR ENDED 31 OCTOBER 2024 |
| The directors present their strategic report of the company and the group for the year ended 31 October 2024. |
| REVIEW OF BUSINESS AND FUTURE DEVELOPMENTS |
| The directors are proud of the improvements made within the business, both financially and operationally during a challenging economic period. |
| The business continues to benefit from employee ownership, where we have experienced increased engagement from all co-owners. This has been demonstrated through being awarded as a 'Great Place to Work' top 100 construction business. We feel that these higher levels of engagement have hugely contributed to achieving improved customer service as well as manufacturing the highest output of our core product to date. |
| Our safety culture remains exceptional, and we have been replicating this focus on the health of our co-owners. The business now has multiple mental health first aiders spread across all our sites to ensure that all employees have the necessary support to remain healthy. |
| During the year we invested in our fleet of vehicles to continue enhancing our customer service levels. This was accompanied with obtaining the FORS Gold accreditation, which has given us further recognition for the service levels that we have come to expect of ourselves. |
| The infrastructure we have created places the business in a fantastic position to flourish for the coming years. |
| KEY PERFORMANCE INDICATORS |
| The directors use the following key performance indicators to monitor the performance of the business: |
| 2024 | 2023 |
| Turnover | 34,840,095 | 39,997,347 |
| Profit before tax | 302,305 | 1,542,461 |
| Gross profit margin | 12.21% | 14.30% |
| PRINCIPAL RISKS AND UNCERTAINTIES |
| The group is subject to the normal commercial risks that arise in the ordinary course of business. These risks are reviewed by the directors as part of their ongoing corporate governance procedures. |
| The group continues to have access to a level of bad debt protection that the directors consider to be adequate. |
| The directors are satisfied with the internal controls and processes in place that control the level of uninsured bad debt. The directors acknowledge that there is always an element of risk involved when accepting orders on a credit basis and, no matter how many controls and checks are in place, the risk of bad debts cannot be entirely eliminated. |
| ON BEHALF OF THE BOARD: |
| LGS HOLDINGS LIMITED (REGISTERED NUMBER: 10341206) |
| REPORT OF THE DIRECTORS |
| FOR THE YEAR ENDED 31 OCTOBER 2024 |
| The directors present their report with the financial statements of the company and the group for the year ended 31 October 2024. |
| DIVIDENDS |
| The directors recommend that no final dividends be paid. |
| DIRECTORS |
| The directors shown below have held office during the whole of the period from 1 November 2023 to the date of this report. |
| STATEMENT OF DIRECTORS' RESPONSIBILITIES |
| The directors are responsible for preparing the Group Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
| Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to: |
| - | select suitable accounting policies and then apply them consistently; |
| - | make judgements and accounting estimates that are reasonable and prudent; |
| - | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
| The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
| STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
| So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
| ON BEHALF OF THE BOARD: |
| REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
| LGS HOLDINGS LIMITED |
| Opinion |
| We have audited the financial statements of LGS Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 October 2024 which comprise the Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
| In our opinion the financial statements: |
| - | give a true and fair view of the state of the group's and of the parent company affairs as at 31 October 2024 and of the group's profit for the year then ended; |
| - | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
| - | have been prepared in accordance with the requirements of the Companies Act 2006. |
| 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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group 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 the 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 directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
| 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. |
| In connection with our audit of the financial statements, 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 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 the audit: |
| - | the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
| - | the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
| REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
| LGS HOLDINGS LIMITED |
| 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 its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors. |
| We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
| - | adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
| - | the parent company financial statements are not in agreement with the accounting records and returns; or |
| - | certain disclosures of directors' remuneration specified by law are not made; or |
| - | we have not received all the information and explanations we require for our audit. |
| Responsibilities of directors |
| As explained more fully in the Statement of Directors' Responsibilities set out on page three, 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 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 group's and 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 group or the parent company or to cease operations, or have no realistic alternative but to do so. |
| Auditors' 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 a Report of the Auditors 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. |
| Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. In order to address the risks of misstatements in respect of irregularities, including fraud, we have: |
| - | obtained an understanding of the key laws and regulations applicable to the group, including the Companies Act 2006, and applicable taxation legislation; |
| - | assessed the group's own internal controls and systems for the prevention and detection of irregularities and particularly the control environment within which they operate; |
| - | determined a materiality level and audit approach sufficient to identify most irregularities, including fraud, that may occur; |
| - | considered our own involvement in the preparation of the group's statutory financial statements and taxation returns; |
| - | conducted audit verification work, on a sample basis, on the key audit areas and risks we have identified; and |
| - | reflected on the outcome of our work, and the likelihood that conclusions drawn may be indicative of other areas of potential irregularity. |
| We therefore consider our audit approach has been sufficient to detect material irregularities, including fraud. |
| A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
| REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
| LGS HOLDINGS LIMITED |
| 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 a Report of the Auditors 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. |
| for and on behalf of |
| Statutory Auditors and Chartered Accountants |
| Rutland House |
| 90-92 Baxter Avenue |
| Southend on Sea |
| Essex |
| SS2 6HZ |
| LGS HOLDINGS LIMITED (REGISTERED NUMBER: 10341206) |
| CONSOLIDATED |
| STATEMENT OF COMPREHENSIVE |
| INCOME |
| FOR THE YEAR ENDED 31 OCTOBER 2024 |
| 2024 | 2023 |
| Notes | £ | £ |
| TURNOVER | 34,840,095 | 39,997,347 |
| Cost of sales | 30,586,280 | 34,275,994 |
| GROSS PROFIT | 4,253,815 | 5,721,353 |
| Administrative expenses | 3,886,599 | 4,152,203 |
| 367,216 | 1,569,150 |
| Other operating income | 1,015 | 4,785 |
| OPERATING PROFIT | 4 | 368,231 | 1,573,935 |
| Interest receivable and similar income | 6 | 390 |
| 368,237 | 1,574,325 |
| Interest payable and similar expenses | 6 | 65,932 | 31,864 |
| PROFIT BEFORE TAXATION | 302,305 | 1,542,461 |
| Tax on profit | 7 | 163,624 | 544,206 |
| PROFIT FOR THE FINANCIAL YEAR |
| OTHER COMPREHENSIVE INCOME |
| Employee ownership trust contribution | (111,000 | ) | (4,638,510 | ) |
| Income tax relating to other comprehensive income |
- |
- |
| OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX |
(111,000 |
) |
(4,638,510 |
) |
| TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
27,681 |
(3,640,255 |
) |
| Profit attributable to: |
| Owners of the parent | 138,681 | 998,255 |
| Total comprehensive income attributable to: |
| Owners of the parent | 27,681 | (3,640,255 | ) |
| LGS HOLDINGS LIMITED (REGISTERED NUMBER: 10341206) |
| CONSOLIDATED BALANCE SHEET |
| 31 OCTOBER 2024 |
| 2024 | 2023 |
| Notes | £ | £ | £ | £ |
| FIXED ASSETS |
| Intangible assets | 9 | 463,887 | 696,522 |
| Tangible assets | 10 | 4,405,095 | 2,873,088 |
| Investments | 11 | - | - |
| 4,868,982 | 3,569,610 |
| CURRENT ASSETS |
| Stocks | 12 | 4,665,751 | 4,992,251 |
| Debtors | 13 | 5,645,474 | 4,908,479 |
| Cash at bank and in hand | 2,173,407 | 2,950,590 |
| 12,484,632 | 12,851,320 |
| CREDITORS |
| Amounts falling due within one year | 14 | 9,297,048 | 10,020,806 |
| NET CURRENT ASSETS | 3,187,584 | 2,830,514 |
| TOTAL ASSETS LESS CURRENT LIABILITIES |
8,056,566 |
6,400,124 |
| CREDITORS |
| Amounts falling due after more than one year |
15 |
(1,345,893 |
) |
(127,709 |
) |
| PROVISIONS FOR LIABILITIES | 18 | (1,046,364 | ) | (635,787 | ) |
| NET ASSETS | 5,664,309 | 5,636,628 |
| CAPITAL AND RESERVES |
| Called up share capital | 19 | 2,000,100 | 2,000,100 |
| Retained earnings | 20 | 3,664,209 | 3,636,528 |
| SHAREHOLDERS' FUNDS | 5,664,309 | 5,636,628 |
| The financial statements were approved by the Board of Directors and authorised for issue on 11 July 2025 and were signed on its behalf by: |
| K R Childs - Director |
| LGS HOLDINGS LIMITED (REGISTERED NUMBER: 10341206) |
| COMPANY BALANCE SHEET |
| 31 OCTOBER 2024 |
| 2024 | 2023 |
| Notes | £ | £ | £ | £ |
| FIXED ASSETS |
| Intangible assets | 9 |
| Tangible assets | 10 |
| Investments | 11 |
| CURRENT ASSETS |
| Debtors | 13 |
| NET CURRENT ASSETS |
| TOTAL ASSETS LESS CURRENT LIABILITIES |
| CAPITAL AND RESERVES |
| Called up share capital | 19 |
| Retained earnings |
| SHAREHOLDERS' FUNDS |
| Company's profit for the financial year | 111,000 | 4,638,510 |
| The financial statements were approved by the Board of Directors and authorised for issue on |
| LGS HOLDINGS LIMITED (REGISTERED NUMBER: 10341206) |
| CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
| FOR THE YEAR ENDED 31 OCTOBER 2024 |
| Called up |
| share | Retained | Total |
| capital | earnings | equity |
| £ | £ | £ |
| Balance at 1 November 2022 | 2,000,100 | 7,276,783 | 9,276,883 |
| Changes in equity |
| Profit for the year | - | 998,255 | 998,255 |
| Employee ownership trust contribution |
- |
(4,638,510 |
) |
(4,638,510 |
) |
| Total comprehensive income | - | (3,640,255 | ) | (3,640,255 | ) |
| Balance at 31 October 2023 | 2,000,100 | 3,636,528 | 5,636,628 |
| Changes in equity |
| Profit for the year | - | 138,681 | 138,681 |
| Other comprehensive income | - | (111,000 | ) | (111,000 | ) |
| Total comprehensive income | - | 27,681 | 27,681 |
| Balance at 31 October 2024 | 2,000,100 | 3,664,209 | 5,664,309 |
| LGS HOLDINGS LIMITED (REGISTERED NUMBER: 10341206) |
| COMPANY STATEMENT OF CHANGES IN EQUITY |
| FOR THE YEAR ENDED 31 OCTOBER 2024 |
| Called up |
| share | Retained | Total |
| capital | earnings | equity |
| £ | £ | £ |
| Balance at 1 November 2022 |
| Changes in equity |
| Profit for the year | - | 4,638,510 | 4,638,510 |
| Employee ownership trust contribution |
- |
(4,638,510 |
) |
(4,638,510 |
) |
| Balance at 31 October 2023 |
| Changes in equity |
| Profit for the year | - | 111,000 | 111,000 |
| Other comprehensive income | - | (111,000 | ) | (111,000 | ) |
| Balance at 31 October 2024 |
| LGS HOLDINGS LIMITED (REGISTERED NUMBER: 10341206) |
| CONSOLIDATED CASH FLOW STATEMENT |
| FOR THE YEAR ENDED 31 OCTOBER 2024 |
| 2024 | 2023 |
| Notes | £ | £ |
| Cash flows from operating activities |
| Cash generated from operations | 1 | 460,468 | 3,298,881 |
| Interest paid | (65,932 | ) | (31,864 | ) |
| Tax paid | (206,754 | ) | (938,262 | ) |
| Net cash from operating activities | 187,782 | 2,328,755 |
| Cash flows from investing activities |
| Purchase of tangible fixed assets | (2,198,957 | ) | (521,585 | ) |
| Sale of tangible fixed assets | 83,025 | 14,214 |
| Interest received | 6 | 390 |
| Net cash from investing activities | (2,115,926 | ) | (506,981 | ) |
| Cash flows from financing activities |
| New hire purchase loans in year | 1,544,028 | 36,000 |
| Loan notes and hire purchase repayments | (282,067 | ) | (1,595,360 | ) |
| Amount introduced by directors | - | 138,017 |
| Amount withdrawn by directors | - | (149,664 | ) |
| Employee ownership trust contribution | (111,000 | ) | (4,638,510 | ) |
| Net cash from financing activities | 1,150,961 | (6,209,517 | ) |
| Decrease in cash and cash equivalents | (777,183 | ) | (4,387,743 | ) |
| Cash and cash equivalents at beginning of year |
2 |
2,950,590 |
7,338,333 |
| Cash and cash equivalents at end of year |
2 |
2,173,407 |
2,950,590 |
| LGS HOLDINGS LIMITED (REGISTERED NUMBER: 10341206) |
| NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT |
| FOR THE YEAR ENDED 31 OCTOBER 2024 |
| 1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
| 2024 | 2023 |
| £ | £ |
| Profit before taxation | 302,305 | 1,542,461 |
| Depreciation charges | 836,900 | 714,066 |
| Profit on disposal of fixed assets | (19,574 | ) | (14,001 | ) |
| Finance costs | 65,932 | 31,864 |
| Finance income | (6 | ) | (390 | ) |
| 1,185,557 | 2,274,000 |
| Decrease in stocks | 326,500 | 712,153 |
| (Increase)/decrease in trade and other debtors | (462,069 | ) | 4,081,010 |
| Decrease in trade and other creditors | (589,520 | ) | (3,768,282 | ) |
| Cash generated from operations | 460,468 | 3,298,881 |
| 2. | CASH AND CASH EQUIVALENTS |
| The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
| Year ended 31 October 2024 |
| 31/10/24 | 1/11/23 |
| £ | £ |
| Cash and cash equivalents | 2,173,407 | 2,950,590 |
| Year ended 31 October 2023 |
| 31/10/23 | 1/11/22 |
| £ | £ |
| Cash and cash equivalents | 2,950,590 | 7,338,333 |
| 3. | ANALYSIS OF CHANGES IN NET FUNDS/(DEBT) |
| At 1/11/23 | Cash flow | At 31/10/24 |
| £ | £ | £ |
| Net cash |
| Cash at bank and in hand | 2,950,590 | (777,183 | ) | 2,173,407 |
| 2,950,590 | (777,183 | ) | 2,173,407 |
| Debt |
| Finance leases | (507,378 | ) | (1,262,728 | ) | (1,770,106 | ) |
| (507,378 | ) | (1,262,728 | ) | (1,770,106 | ) |
| Total | 2,443,212 | (2,039,911 | ) | 403,301 |
| LGS HOLDINGS LIMITED (REGISTERED NUMBER: 10341206) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
| FOR THE YEAR ENDED 31 OCTOBER 2024 |
| 1. | STATUTORY INFORMATION |
| LGS Holdings Limited is a |
| 2. | ACCOUNTING POLICIES |
| Basis of preparing the financial statements |
| 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. |
| Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements. |
| Turnover |
| Turnover represents net invoiced sales of goods, excluding value added tax. Turnover is recognised when the goods cease to be assets of the seller and become assets of the customer, which is when the seller transfers to the customer access to the significant benefits relating to the goods and exposure to the risks inherent in those benefits in accordance with FRS 102. These benefits are transferred once a sale has been agreed with the customer as the managerial control over the goods is relinquished and transferred to the buyer. |
| Goodwill |
| Goodwill represents the amount paid in connection with the acquisition of a business in 2016. |
| Initially the directors estimated the useful life of goodwill to be 5 years, but following new developments of both internal and external factors the directors have reviewed the estimate and revised the estimated useful life of goodwill to be 9 years from 1 November 2017. |
| This change has resulted in a revised amortisation charge per annum of £231,121 over the remaining useful life. |
| Tangible fixed assets |
| Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life. Depreciation commences in the month following acquisition and assets are originally carried at historical cost. |
| Short leasehold property | - in equal instalments over the lease period |
| Plant and machinery | - 25% on reducing balance |
| Fixtures and fittings | - 10% and 25% on reducing balance |
| Motor vehicles | - 20% on reducing balance |
| Fabrication plant and machinery | - 10% reducing balance |
| Stocks |
| Stocks and work in progress are valued at the lower of cost and net realiseable value, after making due allowance for obsolete and slow moving items. |
| LGS HOLDINGS LIMITED (REGISTERED NUMBER: 10341206) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 OCTOBER 2024 |
| 2. | ACCOUNTING POLICIES - continued |
| Taxation |
| Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Statement of Comprehensive Income, 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. |
| 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 group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
| Basis of consolidation |
| The group accounts consolidate the accounts of LGS Holdings Limited and all its subsidiary undertakings drawn to 31 October each year. No profit and loss account is presented for LGS Holdings Limited as permitted by section 408 of the Companies Act 2006. |
| Lemon Groundwork Solutions Limited and CP(WBL) Limited have been included in the group accounts using the acquisition method of accounting. |
| Operating leases |
| Payments made under operating leases (net of any incentives received from the lessor) are charged to profit or loss on a straight-line basis over the period of the lease |
| LGS HOLDINGS LIMITED (REGISTERED NUMBER: 10341206) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 OCTOBER 2024 |
| 3. | EMPLOYEES AND DIRECTORS |
| 2024 | 2023 |
| £ | £ |
| Wages and salaries | 4,263,376 | 4,492,538 |
| Social security costs | 456,796 | 496,108 |
| Other pension costs | 93,100 | 92,989 |
| 4,813,272 | 5,081,635 |
| The average number of employees during the year was as follows: |
| 2024 | 2023 |
| Production staff | 79 | 80 |
| Office and management | 23 | 23 |
| Included within wages and salaries are employee distributions totalling £40,000 (2023 - £45,000) paid on behalf of LGS Employee Ownership Trust. |
| 2024 | 2023 |
| £ | £ |
| Directors' remuneration | 602,393 | 516,622 |
| Directors' pension contributions to money purchase schemes | 3,874 | 5,804 |
| The number of directors to whom retirement benefits were accruing was as follows: |
| Money purchase schemes | 2 | 1 |
| Information regarding the highest paid director is as follows: |
| 2024 | 2023 |
| £ | £ |
| Emoluments etc | 198,850 | 198,007 |
| Pension contributions to money purchase schemes | - | 3,878 |
| 4. | OPERATING PROFIT |
| The operating profit is stated after charging/(crediting): |
| 2024 | 2023 |
| £ | £ |
| Hire of plant and machinery | 1,424 | 14,804 |
| Depreciation - owned assets | 266,576 | 248,482 |
| Depreciation - assets on hire purchase contracts | 337,690 | 223,038 |
| Profit on disposal of fixed assets | (19,574 | ) | (14,001 | ) |
| Goodwill amortisation | 231,121 | 231,121 |
| Computer software amortisation | 1,514 | 11,425 |
| Foreign exchange differences | 454 | 1,510 |
| Rent under operating leases | 541,800 | 559,650 |
| LGS HOLDINGS LIMITED (REGISTERED NUMBER: 10341206) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 OCTOBER 2024 |
| 5. | AUDITORS' REMUNERATION |
| 2024 | 2023 |
| £ | £ |
| Fees payable to the company's auditors for the audit of the company's financial statements |
21,675 |
21,600 |
| Auditors' remuneration for non audit work | 3,825 | 4,363 |
| 6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
| 2024 | 2023 |
| £ | £ |
| Hire purchase interest | 51,523 | 31,864 |
| Other interest | 14,409 | - |
| 65,932 | 31,864 |
| 7. | TAXATION |
| Analysis of the tax charge |
| The tax charge on the profit for the year was as follows: |
| 2024 | 2023 |
| £ | £ |
| Current tax: |
| UK corporation tax | (246,953 | ) | 372,099 |
| Deferred tax | 410,577 | 172,107 |
| Tax on profit | 163,624 | 544,206 |
| Reconciliation of total tax charge included in profit and loss |
| The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
| 2024 | 2023 |
| £ | £ |
| Profit before tax | 302,305 | 1,542,461 |
| Profit multiplied by the standard rate of corporation tax in the UK of 25 % (2023 - 22.518 %) |
75,576 |
347,331 |
| Effects of: |
| Expenses not deductible for tax purposes | 2,856 | 54,557 |
| Income not taxable for tax purposes | (4,894 | ) | - |
| Capital allowances in excess of depreciation | - | (4,992 | ) |
| Depreciation in excess of capital allowances | 62,864 | - |
| Movement in tax rate | 27,222 | 147,310 |
| Total tax charge | 163,624 | 544,206 |
| Tax effects relating to effects of other comprehensive income |
| 2024 |
| Gross | Tax | Net |
| £ | £ | £ |
| Employee ownership trust contribution | (111,000 | ) | - | (111,000 | ) |
| LGS HOLDINGS LIMITED (REGISTERED NUMBER: 10341206) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 OCTOBER 2024 |
| 7. | TAXATION - continued |
| 2023 |
| Gross | Tax | Net |
| £ | £ | £ |
| Employee ownership trust contribution | (4,638,510 | ) | - | (4,638,510 | ) |
| 8. | INDIVIDUAL STATEMENT OF COMPREHENSIVE INCOME |
| As permitted by Section 408 of the Companies Act 2006, the Statement of Comprehensive Income of the parent company is not presented as part of these financial statements. |
| 9. | INTANGIBLE FIXED ASSETS |
| Group |
| Computer |
| Goodwill | software | Totals |
| £ | £ | £ |
| COST |
| At 1 November 2023 |
| and 31 October 2024 | 2,701,893 | 295,966 | 2,997,859 |
| AMORTISATION |
| At 1 November 2023 | 2,008,530 | 292,807 | 2,301,337 |
| Amortisation for year | 231,121 | 1,514 | 232,635 |
| At 31 October 2024 | 2,239,651 | 294,321 | 2,533,972 |
| NET BOOK VALUE |
| At 31 October 2024 | 462,242 | 1,645 | 463,887 |
| At 31 October 2023 | 693,363 | 3,159 | 696,522 |
| LGS HOLDINGS LIMITED (REGISTERED NUMBER: 10341206) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 OCTOBER 2024 |
| 10. | TANGIBLE FIXED ASSETS |
| Group |
| Fixtures |
| Short | Plant and | and |
| leasehold | machinery | fittings |
| £ | £ | £ |
| COST |
| At 1 November 2023 | 811,425 | 606,087 | 444,661 |
| Additions | 3,748 | 4,262 | 80,873 |
| Disposals | - | (5,000 | ) | - |
| At 31 October 2024 | 815,173 | 605,349 | 525,534 |
| DEPRECIATION |
| At 1 November 2023 | 427,092 | 368,313 | 119,512 |
| Charge for year | 38,593 | 60,018 | 70,664 |
| Eliminated on disposal | - | (3,813 | ) | - |
| At 31 October 2024 | 465,685 | 424,518 | 190,176 |
| NET BOOK VALUE |
| At 31 October 2024 | 349,488 | 180,831 | 335,358 |
| At 31 October 2023 | 384,333 | 237,774 | 325,149 |
| Fabrication |
| Motor | plant and |
| vehicles | machinery | Totals |
| £ | £ | £ |
| COST |
| At 1 November 2023 | 1,487,497 | 2,751,799 | 6,101,469 |
| Additions | 1,873,648 | 236,426 | 2,198,957 |
| Disposals | (240,228 | ) | - | (245,228 | ) |
| At 31 October 2024 | 3,120,917 | 2,988,225 | 8,055,198 |
| DEPRECIATION |
| At 1 November 2023 | 795,290 | 1,518,174 | 3,228,381 |
| Charge for year | 300,357 | 134,634 | 604,266 |
| Eliminated on disposal | (178,731 | ) | - | (182,544 | ) |
| At 31 October 2024 | 916,916 | 1,652,808 | 3,650,103 |
| NET BOOK VALUE |
| At 31 October 2024 | 2,204,001 | 1,335,417 | 4,405,095 |
| At 31 October 2023 | 692,207 | 1,233,625 | 2,873,088 |
| LGS HOLDINGS LIMITED (REGISTERED NUMBER: 10341206) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 OCTOBER 2024 |
| 10. | TANGIBLE FIXED ASSETS - continued |
| Group |
| Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
| Fixtures | Fabrication |
| Plant and | and | Motor | plant and |
| machinery | fittings | vehicles | machinery | Totals |
| £ | £ | £ | £ | £ |
| COST |
| At 1 November 2023 | 64,774 | 12,875 | 773,033 | 1,477,500 | 2,328,182 |
| Additions | - | - | 1,824,498 | - | 1,824,498 |
| Disposals | - | - | (98,021 | ) | - | (98,021 | ) |
| Transfer to ownership | (64,774 | ) | (12,875 | ) | (407,551 | ) | (908,669 | ) | (1,393,869 | ) |
| At 31 October 2024 | - | - | 2,091,959 | 568,831 | 2,660,790 |
| DEPRECIATION |
| At 1 November 2023 | 37,333 | 4,353 | 330,882 | 604,056 | 976,624 |
| Charge for year | 6,860 | 852 | 243,624 | 86,354 | 337,690 |
| Eliminated on disposal | - | - | (47,834 | ) | - | (47,834 | ) |
| Transfer to ownership | (44,193 | ) | (5,205 | ) | (260,708 | ) | (502,622 | ) | (812,728 | ) |
| At 31 October 2024 | - | - | 265,964 | 187,788 | 453,752 |
| NET BOOK VALUE |
| At 31 October 2024 | - | - | 1,825,995 | 381,043 | 2,207,038 |
| At 31 October 2023 | 27,441 | 8,522 | 442,151 | 873,444 | 1,351,558 |
| 11. | FIXED ASSET INVESTMENTS |
| Company |
| Shares in |
| group |
| undertakings |
| £ |
| COST |
| At 1 November 2023 |
| and 31 October 2024 |
| NET BOOK VALUE |
| At 31 October 2024 |
| At 31 October 2023 |
| The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
| Subsidiaries |
| Registered office: Russell Gardens, Wickford, Essex, SS11 8BL |
| Nature of business: |
| % |
| Class of shares: | holding |
| LGS HOLDINGS LIMITED (REGISTERED NUMBER: 10341206) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 OCTOBER 2024 |
| 11. | FIXED ASSET INVESTMENTS - continued |
| Registered office: Russell Gardens, Wickford, Essex, SS11 8BL |
| Nature of business: |
| % |
| Class of shares: | holding |
| 12. | STOCKS |
| Group |
| 2024 | 2023 |
| £ | £ |
| Raw materials | 4,452,264 | 4,715,460 |
| Work-in-progress | 213,487 | 276,791 |
| 4,665,751 | 4,992,251 |
| 13. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
| Group | Company |
| 2024 | 2023 | 2024 | 2023 |
| £ | £ | £ | £ |
| Trade debtors | 5,150,573 | 4,717,711 |
| Amounts owed by group undertakings | - | - |
| Other debtors | 32,654 | 39,203 |
| Corporation tax | 306,953 | 32,028 |
| Prepayments | 155,294 | 119,537 |
| 5,645,474 | 4,908,479 |
| 14. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
| Group |
| 2024 | 2023 |
| £ | £ |
| Hire purchase contracts (see note 16) | 424,213 | 379,669 |
| Trade creditors | 7,927,261 | 8,098,942 |
| Corporation tax | - | 178,782 |
| Social security and other taxes | 474,243 | 429,294 |
| Other creditors | 34,013 | 59,638 |
| Accrued expenses | 437,318 | 874,481 |
| 9,297,048 | 10,020,806 |
| 15. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
| Group |
| 2024 | 2023 |
| £ | £ |
| Hire purchase contracts (see note 16) | 1,345,893 | 127,709 |
| LGS HOLDINGS LIMITED (REGISTERED NUMBER: 10341206) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 OCTOBER 2024 |
| 16. | LEASING AGREEMENTS |
| Minimum lease payments fall due as follows: |
| Group |
| Hire purchase contracts |
| 2024 | 2023 |
| £ | £ |
| Gross obligations repayable: |
| Within one year | 534,769 | 395,433 |
| Between one and five years | 1,525,399 | 130,912 |
| 2,060,168 | 526,345 |
| Finance charges repayable: |
| Within one year | 110,556 | 15,764 |
| Between one and five years | 179,506 | 3,203 |
| 290,062 | 18,967 |
| Net obligations repayable: |
| Within one year | 424,213 | 379,669 |
| Between one and five years | 1,345,893 | 127,709 |
| 1,770,106 | 507,378 |
| Group |
| Non-cancellable | operating leases |
| 2024 | 2023 |
| £ | £ |
| Within one year | 476,192 | 450,578 |
| Between one and five years | 65,890 | 32,088 |
| 542,082 | 482,666 |
| During the 2023 year, one of the group's leased properties was purchased by a new company. As a consequence of this, no formal lease is yet drawn up and there is therefore nothing included in respect of this property within the above commitments. |
| LGS HOLDINGS LIMITED (REGISTERED NUMBER: 10341206) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 OCTOBER 2024 |
| 17. | SECURED DEBTS |
| The following secured debts are included within creditors: |
| Group |
| 2024 | 2023 |
| £ | £ |
| Hire purchase contracts | 1,770,106 | 507,378 |
| Hire purchase contracts are secured against the assets to which they relate. |
| Debentures exist in favour of National Westminster Bank Plc and RBS Invoice Finance Limited by way of both fixed and floating charges in respect of all monies due or to become due. |
| The debentures are secured over the assets of the group. At the balance sheet date, no liability in respect of the above existed. |
| Invoice discounting debts (included within cash at bank and in hand) are secured on the trade debtors to which they relate. At the year end trade debtors totalling £5,131,018 (2023 - £4,717,328) were subject to discounting. |
| 18. | PROVISIONS FOR LIABILITIES |
| Group |
| 2024 | 2023 |
| £ | £ |
| Deferred tax | 1,046,364 | 635,787 |
| Group |
| Deferred |
| tax |
| £ |
| Balance at 1 November 2023 | 635,787 |
| Accelerated capital allowances | 410,499 |
| Pension creditor movement | 78 |
| Balance at 31 October 2024 | 1,046,364 |
| The deferred tax liability above reflects capital allowances in excess of depreciation and other expense timing differences. |
| 19. | CALLED UP SHARE CAPITAL |
| Allotted, issued and fully paid: |
| Number: | Class: | Nominal | 2024 | 2023 |
| value: | £ | £ |
| Share capital type A | £0.01 | 49 | 49 |
| Share capital type B | £0.01 | 51 | 51 |
| Preference shares | £1 | 2,000,000 | 2,000,000 |
| 2,000,100 | 2,000,100 |
| LGS HOLDINGS LIMITED (REGISTERED NUMBER: 10341206) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 OCTOBER 2024 |
| 19. | CALLED UP SHARE CAPITAL - continued |
| Rights, preferences and restrictions attached to each class of share are as follows: |
| A Ordinary and B Ordinary - The shares have attached to them full voting rights, are entitled to participate in a distribution by way of dividends and are non-redeemable. |
| Preference shares - The shares have no voting rights, are entitled to a fixed dividend at an annual rate of £0.0001 and are non-redeemable. |
| 20. | RESERVES |
| Group |
| Retained |
| earnings |
| £ |
| At 1 November 2023 | 3,636,528 |
| Profit for the year | 138,681 |
| Employee ownership trust contribution |
(111,000 |
) |
| At 31 October 2024 | 3,664,209 |
| During the year, £111,000 (2023 - £4,638,510) was gifted to the now 100% shareholder of the company, LGS Trustee Limited. |
| 21. | PENSION COMMITMENTS |
| The group operates a defined contribution pension scheme in respect of certain employees. During the year premiums paid by the group amounted to £93,100 (2023 - £92,989). At the balance sheet date there were amounts outstanding of £21,812 (2023 - £22,123). |
| 22. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES |
| The following advances and credits to directors subsisted during the years ended 31 October 2024 and 31 October 2023: |
| 2024 | 2023 |
| £ | £ |
| P R Hart |
| Balance outstanding at start of year | - | 109,511 |
| Amounts repaid | - | (109,511 | ) |
| Amounts written off | - | - |
| Amounts waived | - | - |
| Balance outstanding at end of year | - | - |
| P A Pannell |
| Balance outstanding at start of year | - | 28,507 |
| Amounts repaid | - | (28,507 | ) |
| Amounts written off | - | - |
| Amounts waived | - | - |
| Balance outstanding at end of year | - | - |
| No interest has been charged by the group on these loans in the current year. All loans brought forward from the 31 October 2022 were repaid in February 2023. |
| LGS HOLDINGS LIMITED (REGISTERED NUMBER: 10341206) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 OCTOBER 2024 |
| 23. | RELATED PARTY DISCLOSURES |
| At the balance sheet date the group was owed £18,109 by, and owed £8,904 to, other companies under the control of its key management personnel (2023 - £21,596 and £12,084 respectively). |
| During the year the group's total compensation to key management personnel (including directors) amounted to £683,139 (2023 - £587,346). At the balance sheet date the amount owed to key management personnel was £nil (2023 - £nil ). |
| No related party transactions with group companies have been disclosed in line with FRS 102 group disclosure exemptions. |
| 24. | ULTIMATE CONTROLLING PARTY |
| At the balance sheet date, LGS Trustee Limited is the ultimate controlling party by virtue of its 100% shareholding in the ultimate parent company LGS Holdings Limited. LGS Trustee Limited holds these shares on behalf of the group's employee ownership trust. |