Company registration number 08619451 (England and Wales)
LANE7 LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024
LANE7 LTD
COMPANY INFORMATION
Director
T Wilks
Secretary
D Bence
Company number
08619451
Registered office
70 Victoria Road
Darlington
Co Durham
United Kingdom
DL1 5JG
Auditor
Azets Audit Services
Bede House
Belmont Business Park
DURHAM
United Kingdom
DH1 1TW
LANE7 LTD
CONTENTS
Page
Strategic report
1 - 2
Director's report
3
Director's responsibilities statement
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 - 35
LANE7 LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 31 OCTOBER 2024
- 1 -
The director presents the strategic report for the year ended 31 October 2024.
Summary
We strive to make every one of our sites a compelling and fun experience for all our repeat and new customers alike, where our experience and competitive offering, combined with an innovative approach to product design & content sets us apart from our competitors by:
Ensuring the latest innovation in gaming products
Providing our customers with the very best experience
Providing the consistency of best value entertainment
With a proven track record since we launched our very first site in 2013, we continue to successfully launch new and exciting entertainment venues including bowling, gaming, food & beverage.
Fair Review of the Business
This financial year has been about consolidation and building the foundations for the next phase of growth. We have expanded our executive team, further strengthened our senior management team, developed our strategy around the new site expansion pipeline and continued to improve our commercial operations to drive organic growth.
Principal Risks and Uncertainties
The director continues to have an optimistic view for the future based on a healthy pipeline for opening new sites across the UK and further afield across Western Europe.
Utility costs are forward hedged in order to provide cost certainty across one of the more significant cost lines.
A programme for Risk Assessment is carried out on at least an annual basis.
Development and Performance
We believe in strong customer engagement, working closely with our various teams to continuously develop and improve the overall customer experience from the point of booking onwards.
As part of this process, significant investment was made into the IT infrastructure including the upgrading of the website, booking systems and EPOS environment.
We continue to invest in the training of our staff alongside adding additional resources in strategic positions within the business. This coupled with the support of our loyal supply chain and strong balance sheet ensures we are best placed to deliver the level of planned business expansion.
Our people are our greatest asset. We are committed to and have a proactive approach in developing, supporting and training our staff, enabling them to fulfil their potential within a safe and stable working environment and we are continuously looking at ways to improve our staff engagement and retention levels.
LANE7 LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 2 -
Key Performance Indicators
Turnover, EBITDAR and balance sheet net assets are our chosen key performance indicators.
2024 2023
£'000 £'000
Turnover 29,141 22,333
EBITDAR 12,996 10,062
EBITDAR % of turnover 45% 45%
Net assets 14,670 11,821
EBITDAR is calculated as operating profit with depreciation, amortisation, rent, management charges to related parties and pre-opening P&L costs as determined by management being added back.
D Bence
Secretary
30 June 2025
LANE7 LTD
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 OCTOBER 2024
- 3 -
The director presents his annual report and financial statements for the year ended 31 October 2024.
Results and dividends
The results for the year are set out on page 8.
No ordinary dividends were paid. The director does not recommend payment of a further dividend.
Director
The director who held office during the year and up to the date of signature of the financial statements was as follows:
T Wilks
Financial instruments
The group manages its cash and borrowing requirements in order to maximise interest income and minimise interest expense, whilst ensuring the group has sufficient liquid resources to meet the operating needs of the business.
Future developments
Three sites launched post year end to date in Milton Keynes and 2 sites in Dublin (Ireland) with a further two sites are targeted for openings in the next financial year ending 31st October 2025 in Newcastle. In June 2025, a group reorganisation was completed bringing in Level X and Gutterball businesses within a consolidated Lane7 Group under the new topco, Lane7 Holdings Ltd. In addition, a larger debt facility was completed with Barclays Bank in June 2025 giving the group further access to funding should it be required to continue to support further expansion opportunities.
Auditor
Azets Audit Services were appointed as auditor to the group and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.
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.
By order of the board
D Bence
Secretary
30 June 2025
LANE7 LTD
DIRECTOR'S RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 OCTOBER 2024
- 4 -
The director is responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.
Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is 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 director is required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the group and company will continue in business.
The director is 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. He is 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.
LANE7 LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF LANE7 LTD
- 5 -
Opinion
We have audited the financial statements of Lane7 Ltd (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 October 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:
give a true and fair view of the state of the group's and the parent company's 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.
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 director's 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 director with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The director is responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the director's report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the director's report have been prepared in accordance with applicable legal requirements.
LANE7 LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF LANE7 LTD
- 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 director's report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept 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 director
As explained more fully in the director's responsibilities statement, the director is 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 director determines 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 director is 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 director either intends to liquidate the parent company or to cease operations, or has 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.
LANE7 LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF LANE7 LTD
- 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:
Enquiry of management and those charged with governance around actual and potential litigation and claims as well as actual, suspected and alleged fraud;
Reviewing minutes of meetings of those charged with governance;
Assessing the extent of compliance with the laws and regulations considered to have a direct material effect on the financial statements or the operations of the entity through enquiry and inspection;
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;
Performing audit work over the risk of management bias and override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for indicators of potential bias.
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.
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.
Joanne Regan FCA (Senior Statutory Auditor)
For and on behalf of Azets Audit Services
8 July 2025
Chartered Accountants
Statutory Auditor
Bede House
Belmont Business Park
DURHAM
United Kingdom
DH1 1TW
LANE7 LTD
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 OCTOBER 2024
- 8 -
2024
2023
as restated
Notes
£
£
Turnover
3
29,141,408
22,333,331
Cost of sales
(11,717,596)
(8,420,109)
Gross profit
17,423,812
13,913,222
Administrative expenses
(14,222,581)
(10,211,828)
Other operating income
1,834,089
1,732,791
Operating profit
4
5,035,320
5,434,185
Interest receivable and similar income
7
123,988
43,711
Interest payable and similar expenses
8
(400,832)
(208,600)
Amounts written off investments
9
-
(100)
Profit before taxation
4,758,476
5,269,196
Tax on profit
10
(1,909,485)
(1,036,453)
Profit for the financial year
22
2,848,991
4,232,743
Profit for the financial year is all attributable to the owners of the parent company.
LANE7 LTD
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 OCTOBER 2024
- 9 -
2024
2023
as restated
£
£
Profit for the year
2,848,991
4,232,743
Other comprehensive income
-
-
Total comprehensive income for the year
2,848,991
4,232,743
Total comprehensive income for the year is all attributable to the owners of the parent company.
LANE7 LTD
GROUP BALANCE SHEET
AS AT
31 OCTOBER 2024
31 October 2024
- 10 -
2024
2023
as restated
Notes
£
£
£
£
Fixed assets
Intangible assets
11
177,186
13,684
Tangible assets
12
22,608,364
11,056,501
22,785,550
11,070,185
Current assets
Stocks
15
334,129
219,330
Debtors
16
15,496,155
11,062,165
Cash at bank and in hand
3,901,759
2,689,026
19,732,043
13,970,521
Creditors: amounts falling due within one year
17
(15,515,465)
(8,262,875)
Net current assets
4,216,578
5,707,646
Total assets less current liabilities
27,002,128
16,777,831
Creditors: amounts falling due after more than one year
18
(10,583,884)
(4,025,858)
Provisions for liabilities
Deferred tax liability
20
1,748,289
931,109
(1,748,289)
(931,109)
Net assets
14,669,955
11,820,864
Capital and reserves
Called up share capital
21
200
100
Profit and loss reserves
22
14,669,755
11,820,764
Total equity
14,669,955
11,820,864
The financial statements were approved and signed by the director and authorised for issue on 4 July 2025
04 July 2025
T Wilks
Director
Company registration number 08619451 (England and Wales)
LANE7 LTD
COMPANY BALANCE SHEET
AS AT 31 OCTOBER 2024
31 October 2024
- 11 -
2024
2023
Notes
£
£
£
£
Fixed assets
Intangible assets
11
72,486
13,308
Tangible assets
12
405,304
134,846
Investments
13
22,040
21,950
499,830
170,104
Current assets
Debtors
16
26,708,605
10,111,124
Cash at bank and in hand
2,550,446
2,683,326
29,259,051
12,794,450
Creditors: amounts falling due within one year
17
(14,831,494)
(5,046,210)
Net current assets
14,427,557
7,748,240
Total assets less current liabilities
14,927,387
7,918,344
Creditors: amounts falling due after more than one year
18
(6,315,788)
(1,895,730)
Provisions for liabilities
Deferred tax liability
20
52,458
30,238
(52,458)
(30,238)
Net assets
8,559,141
5,992,376
Capital and reserves
Called up share capital
21
200
100
Profit and loss reserves
22
8,558,941
5,992,276
Total equity
8,559,141
5,992,376
The financial statements were approved and signed by the director and authorised for issue on 4 July 2025
04 July 2025
T Wilks
Director
Company registration number 08619451 (England and Wales)
LANE7 LTD
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 OCTOBER 2024
- 12 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
As restated for the period ended 31 October 2023:
Balance at 1 November 2022
100
7,588,021
7,588,121
Year ended 31 October 2023:
Profit and total comprehensive income
-
4,232,743
4,232,743
Balance at 31 October 2023
100
11,820,764
11,820,864
Year ended 31 October 2024:
Profit and total comprehensive income
-
2,848,991
2,848,991
Issue of share capital
21
100
-
100
Balance at 31 October 2024
200
14,669,755
14,669,955
LANE7 LTD
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 OCTOBER 2024
- 13 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
As restated for the period ended 31 October 2023:
Balance at 1 November 2022
100
3,550,791
3,550,891
Year ended 31 October 2023:
Profit and total comprehensive income for the year
-
2,441,485
2,441,485
Balance at 31 October 2023
100
5,992,276
5,992,376
Year ended 31 October 2024:
Profit and total comprehensive income
-
2,566,665
2,566,665
Issue of share capital
21
100
-
100
Balance at 31 October 2024
200
8,558,941
8,559,141
LANE7 LTD
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 OCTOBER 2024
- 14 -
2024
2023
as restated
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
28
12,216,906
6,475,823
Interest paid
(400,832)
(208,600)
Income taxes paid
(1,227,447)
(1,198,425)
Net cash inflow from operating activities
10,588,627
5,068,798
Investing activities
Purchase of intangible assets
(176,127)
(7,768)
Purchase of tangible fixed assets
(13,378,980)
(6,045,264)
Proceeds from disposal of tangible fixed assets
-
14,054
Interest received
123,988
43,711
Net cash used in investing activities
(13,431,119)
(5,995,267)
Financing activities
Proceeds from issue of shares
100
-
Proceeds from new bank loans
6,275,000
-
Repayment of bank loans
(2,219,875)
(475,068)
Net cash generated from/(used in) financing activities
4,055,225
(475,068)
Net increase/(decrease) in cash and cash equivalents
1,212,733
(1,401,537)
Cash and cash equivalents at beginning of year
2,689,026
4,090,563
Cash and cash equivalents at end of year
3,901,759
2,689,026
LANE7 LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024
- 15 -
1
Accounting policies
Company information
Lane7 Ltd (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is 70 Victoria Road, Darlington, Co Durham, United Kingdom, DL1 5JG.
The group consists of Lane7 Ltd and all of its subsidiaries.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
Lane7 Limited, as an individual entity, meets the definition of a qualifying entity per FRS 102 and has taken advantage of the exemption available in paragraph 1.12 of FRS 102 from presenting a company-only statements of cash flows. These consolidated financial statements include a consolidated statement of cash flows which include the cash flows of Lane7 Limited.
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 £2,677,547 (2023: £2,441,485).
1.2
Business combinations
In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.
Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.
LANE7 LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
1
Accounting policies
(Continued)
- 16 -
1.3
Basis of consolidation
The consolidated group financial statements consist of the financial statements of the parent company Lane7 Ltd together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.
All financial statements are made up to 31 October 2024 except for Mitras F240 GmbH which are made up to 31 December 2024. Adjustments are made within the consoldiated accounts to reflect the reults and balance sheet position as at 31 December 2024.
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.
Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.
1.4
Going concern
At the time of approving the financial statements, the director has a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements.
1.5
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
1.6
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Amortisation 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:
Software
20% straight line basis
1.7
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Leasehold land and buildings
15 years straight line basis
Leasehold improvements
Lease term
Plant and equipment
20% straight line basis
Fixtures and fittings
20% straight line basis
Computers
20% straight line basis
Motor vehicles
25% straight line basis
LANE7 LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
1
Accounting policies
(Continued)
- 17 -
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.
1.8
Fixed asset investments
Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.
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.
1.9
Impairment of fixed assets
At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible 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.
1.10
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell.
Cost is calculated on goods for resale as the purchase price on the cost of the stock.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.11
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.12
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.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
LANE7 LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
1
Accounting policies
(Continued)
- 18 -
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.
Forward energy contracts
During the previous financial period, the Group committed to a new energy contract to enable it to lock in prices for gas and electricity used in its operational activities. This is achieved by committing to a certain volume of consumption in future months, creating a contractual commitment and securing a certain price. The Group takes delivery of the energy and so the Director believes it meets the requirements of the own use scope exemption in FRS 102 Section 12. As such, these contracts are not held on the balance sheet at fair value but rather treated as executory contracts and energy purchases are accounted for in the period in which the gas and electricity is consumed, at the contracted price.
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.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
LANE7 LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
1
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.
1.13
Equity instruments
Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.
1.14
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.
1.15
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.
LANE7 LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 20 -
2
Judgements and key sources of estimation uncertainty
In the application of the group’s accounting policies, the director is required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Critical judgements
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
Assessing indicators of impairment
In assessing whether there have been any indicators of impairment in assets, the director has considered both external and internal sources of information such as market conditions and experience of recoverability, There have been no indicators of impairment identified during the current financial year.
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.
Determining useful economic lives of fixed assets
The company depreciates tangible fixed assets over their estimated useful lives. The estimation of useful lives is based on historic performance as well as expectations about future use and therefore requires estimates and assumptions to be applied by management.
The carrying amount of tangible fixed assets at the reporting date was £21,076,637 (2023: £11,056,501).
3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Bowling and games bar
29,141,408
22,333,331
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
28,957,574
22,333,331
Europe
183,834
-
29,141,408
22,333,331
LANE7 LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
3
Turnover and other revenue
(Continued)
- 21 -
2024
2023
£
£
Other revenue
Interest income
123,988
43,711
Management fees receivable from connected companies
1,236,839
1,057,749
Other income
597,250
675,042
4
Operating profit
2024
2023
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange gains
(130)
-
Depreciation of owned tangible fixed assets
1,827,117
1,122,936
Profit on disposal of tangible fixed assets
-
(2,594)
Amortisation of intangible assets
12,625
10,516
Operating lease charges
3,085,169
1,695,493
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
18,500
18,750
Audit of the financial statements of the company's subsidiaries
89,500
74,500
108,000
93,250
For other services
Audit-related assurance services
-
9,000
Taxation compliance services
9,250
11,500
All other non-audit services
15,750
7,250
25,000
27,750
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
Management
6
-
6
-
LANE7 LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
6
Employees
(Continued)
- 22 -
Staff are resourced through a separate and dedicated HR company, Lane7 HR Ltd. Staff costs recharged below relate to the amounts charged by Lane7 HR Ltd to the Group companies for the cost of employing the relevant staff in year.
Aggregate remuneration comprised:
Group
Company
2024
2023
2024
2023
£
£
£
£
Staff costs recharged
8,383,665
5,754,868
2,015,924
1,907,952
Wages and salaries
59,802
-
59,802
-
Social security costs
7,625
-
7,625
-
Pension costs
826
826
8,441,918
5,754,868
2,084,177
1,907,952
7
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
112,022
43,549
Other interest income
11,966
162
Total income
123,988
43,711
8
Interest payable and similar expenses
2024
2023
£
£
Interest on bank overdrafts and loans
338,515
180,916
Other interest
62,317
27,684
Total finance costs
400,832
208,600
9
Amounts written off investments
2024
2023
£
£
Amounts written back to/(written off) investments held at fair value
-
(100)
LANE7 LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 23 -
10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
1,070,429
789,278
Adjustments in respect of prior periods
87,284
Total current tax
1,157,713
789,278
Deferred tax
Origination and reversal of timing differences
412,523
247,175
Adjustment in respect of prior periods
339,249
Total deferred tax
751,772
247,175
Total tax charge
1,909,485
1,036,453
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
4,758,476
5,269,196
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 25.00%)
1,189,619
1,317,299
Tax effect of expenses that are not deductible in determining taxable profit
1,866
10,570
Tax effect of income not taxable in determining taxable profit
(909)
(649)
Unutilised tax losses carried forward
327,689
40,420
Adjustments in respect of prior years
87,285
Effect of change in corporation tax rate
-
(87,045)
Depreciation on assets not qualifying for tax allowances
3,431
Amortisation on assets not qualifying for tax allowances
1,771
Deferred tax adjustments in respect of prior years
298,825
(244,142)
Tax at marginal rate
(92)
Taxation charge
1,909,485
1,036,453
LANE7 LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 24 -
11
Intangible fixed assets
Group
Software
£
Cost
At 1 November 2023
51,500
Additions
176,127
At 31 October 2024
227,627
Amortisation and impairment
At 1 November 2023
37,816
Amortisation charged for the year
12,625
At 31 October 2024
50,441
Carrying amount
At 31 October 2024
177,186
At 31 October 2023
13,684
Company
Software
£
Cost
At 1 November 2023
47,355
Additions
71,427
At 31 October 2024
118,782
Amortisation and impairment
At 1 November 2023
34,047
Amortisation charged for the year
12,249
At 31 October 2024
46,296
Carrying amount
At 31 October 2024
72,486
At 31 October 2023
13,308
LANE7 LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 25 -
12
Tangible fixed assets
Group
Leasehold land and buildings
Leasehold improvements
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
£
£
Cost
At 1 November 2023
6,357,017
2,769,463
5,516,372
871,681
76,485
59,072
15,650,090
Additions
5,416,836
2,932,922
4,308,939
525,802
194,481
13,378,980
Transfers
(63,492)
59,865
12,853
(9,226)
At 31 October 2024
11,773,853
5,638,893
9,885,176
1,410,336
261,740
59,072
29,029,070
Depreciation and impairment
At 1 November 2023
1,480,291
171,760
2,390,554
493,259
15,869
41,856
4,593,589
Depreciation charged in the year
443,282
227,831
966,273
165,701
19,516
4,514
1,827,117
At 31 October 2024
1,923,573
399,591
3,356,827
658,960
35,385
46,370
6,420,706
Carrying amount
At 31 October 2024
9,850,280
5,239,302
6,528,349
751,376
226,355
12,702
22,608,364
At 31 October 2023
4,876,726
2,597,703
3,125,818
378,422
60,616
17,216
11,056,501
LANE7 LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 26 -
Company
Leasehold improvements
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 November 2023
20,347
61,998
63,713
58,127
31,572
235,757
Additions
65,833
129,313
84,672
51,525
331,343
At 31 October 2024
86,180
191,311
148,385
109,652
31,572
567,100
Depreciation and impairment
At 1 November 2023
6,868
28,972
34,846
15,869
14,356
100,911
Depreciation charged in the year
4,684
16,688
19,996
15,003
4,514
60,885
At 31 October 2024
11,552
45,660
54,842
30,872
18,870
161,796
Carrying amount
At 31 October 2024
74,628
145,651
93,543
78,780
12,702
405,304
At 31 October 2023
13,479
33,026
28,867
42,258
17,216
134,846
13
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
14
22,040
21,950
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 November 2023
21,950
Additions
90
At 31 October 2024
22,040
Carrying amount
At 31 October 2024
22,040
At 31 October 2023
21,950
LANE7 LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 27 -
14
Subsidiaries
Details of the company's subsidiaries at 31 October 2024 are as follows:
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Pinpin Ltd
70 Victoria Road, Darlington, United Kingdom, DL1 5JG
Ordinary
100.00
Lane7 Birmingham Ltd
As above
Ordinary
100.00
Lane7 Aberdeen Ltd
As above
Ordinary
100.00
Liquorette Ltd
As above
Ordinary
100.00
Lane7 Sheffield Ltd
As above
Ordinary
100.00
Lane7 Liverpool Ltd
As above
Ordinary
100.00
Lane7 Bristol Ltd
As above
Ordinary
100.00
Lane7 Leicester Ltd
As above
Ordinary
100.00
Lane7 Arthur Ltd
As above
Ordinary
100.00
Kavana Ltd
As above
Ordinary
100.00
Mr Midnight Ltd
As above
Ordinary
100.00
Lane7 A Ltd
As above
Ordinary
100.00
Lane7 B Ltd
As above
Ordinary
100.00
Lane7 C Ltd
As above
Ordinary
100.00
Lane7 D Ltd
As above
Ordinary
100.00
Lane7 E Ltd
As above
Ordinary
100.00
Lane7 F Ltd
As above
Ordinary
100.00
Lane7 G Ltd
As above
Ordinary
100.00
Lane7 H Ltd
As above
Ordinary
100.00
Lane7 I Ltd
As above
Ordinary
100.00
Lane7 J Ltd
As above
Ordinary
100.00
Lane7 Bowling Ltd
The Black Church, St Mary's Place, Dublin 7, Ireland, D07 P4AX
Ordinary
100.00
Mitras F240 GmbH
Frankfurt am Main, Westendstrabe 28, 60325 Frankfurt am Main, Germany
Ordinary
100.00
Lane7 K Ltd
70 Victoria Road, Darlington, United Kingdom, DL1 5JG
Ordinary
100.00
Lane7 L Ltd
As above
Ordinary
100.00
Lane7 M Ltd
As above
Ordinary
100.00
Lane7 N Ltd
As above
Ordinary
100.00
Lane7 O Ltd
As above
Ordinary
100.00
Lane7 P Ltd
As above
Ordinary
100.00
Lane7 Q Ltd
As above
Ordinary
100.00
Lane7 Dublin (No. 2) Ltd
38 Upper Mount Street, Dublin 2, D02 PR89
Ordinary
100.00
15
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Finished goods and goods for resale
334,129
219,330
LANE7 LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 28 -
16
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
1,103,862
584,352
1,071,391
584,352
Corporation tax recoverable
451,494
Amounts owed by group undertakings
-
-
14,383,190
352,923
Other debtors
12,176,001
9,419,588
10,653,548
8,808,933
Prepayments and accrued income
1,699,390
1,058,225
600,476
364,916
15,430,747
11,062,165
26,708,605
10,111,124
Amounts falling due after more than one year:
Deferred tax asset (note 20)
65,408
Total debtors
15,496,155
11,062,165
26,708,605
10,111,124
17
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans
19
364,933
364,933
Trade creditors
3,420,320
2,824,575
2,859,503
2,793,361
Amounts owed to group undertakings
7,366,182
Corporation tax payable
1,096,958
715,198
938,309
31,570
Other taxation and social security
51,638
20,367
31,440
-
Other creditors
6,268,135
2,658,476
3,470,035
1,745,312
Accruals and deferred income
4,678,414
1,679,326
166,025
111,034
15,515,465
8,262,875
14,831,494
5,046,210
18
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts
19
6,315,788
1,895,730
6,315,788
1,895,730
Other creditors
4,268,096
2,130,128
10,583,884
4,025,858
6,315,788
1,895,730
LANE7 LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
18
Creditors: amounts falling due after more than one year
(Continued)
- 29 -
Amounts included above which fall due after five years are as follows:
Payable by instalments
-
699,299
-
699,299
19
Loans and overdrafts
Group
Company
2024
2023
2024
2023
£
£
£
£
Bank loans
6,315,788
2,260,663
6,315,788
2,260,663
Payable within one year
364,933
364,933
Payable after one year
6,315,788
1,895,730
6,315,788
1,895,730
The bank loan is secured by a legal charge and debenture over the assets of the company, together with a cross guarantee. Further details on the cross guarantee is provide in note 24 to the financial statements.
During the year, the Group consoldiated its debt into a Revolving Loan with a final repayment date of 24 November 2026. Interest is charged at 2.55% above the Bank of England Base Rate monthly in arrears.
20
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
1,748,519
931,109
-
-
Other short term timing differences
(230)
-
65,408
-
1,748,289
931,109
65,408
-
Liabilities
Liabilities
Assets
Assets
2024
2023
2024
2023
Company
£
£
£
£
Accelerated capital allowances
52,657
30,238
-
-
Other short term timing differences
(199)
-
-
-
52,458
30,238
-
-
LANE7 LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
20
Deferred taxation
(Continued)
- 30 -
Group
Company
2024
2024
Movements in the year:
£
£
Liability at 1 November 2023
931,109
30,238
Charge to profit or loss
751,772
22,220
Liability at 31 October 2024
1,682,881
52,458
The deferred tax asset set out above is expected to reverse when the locations to which they relate begin operations and relates to the utilisation of tax losses against future expected profits of the same period.
The deferred tax liability set out above is expected to reverse between 5 to 25 years and relates to accelerated capital allowances that are expected to mature within the same timeframe.
21
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
200
100
200
100
22
Profit and loss reserves
Group
Company
2024
2023
2024
2023
as restated
as restated
£
£
£
£
At the beginning of the year
11,695,479
7,588,021
5,992,276
3,550,791
Prior year adjustment
125,285
-
-
-
As restated
11,820,764
7,588,021
5,992,276
3,550,791
Profit for the year
2,848,991
4,232,743
2,566,665
2,441,485
At the end of the year
14,669,755
11,820,764
8,558,941
5,992,276
LANE7 LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 31 -
23
Operating lease commitments
Lessee
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
2,861,740
1,664,651
30,000
-
Between two and five years
14,056,467
7,446,103
97,562
-
In over five years
26,806,234
14,040,733
-
-
43,724,441
23,151,487
127,562
-
24
Financial commitments, guarantees and contingent liabilities
Guarantees exist in favour of Barclays Bank UK Plc between the parent holding company Lane7 Ltd and associated companies Mr Midnight Ltd, Lane7 Birmingham Ltd, Lane7 Bristol Ltd, Lane7 Sheffield Ltd, Lane7 Leicester Ltd, Kavana Ltd, Lane7 Arthur Ltd, Lane7 Aberdeen Ltd, PinPin Ltd, Liquorette Ltd, Lane7 Liverpool Ltd, Lane7 Durham Ltd and Crown Aquisitions Ltd.
No liability is expected to arise as a result of these guarantees.
25
Capital commitments
Amounts contracted for but not provided in the financial statements:
Group
Company
2024
2023
2024
2023
£
£
£
£
Acquisition of tangible fixed assets
10,892,804
1,022,596
-
-
26
Events after the reporting date
In June 2025, a group reorganisation was completed bringing in Level X and Gutterball businesses within a consolidated Lane7 Group under a new Topco, Lane7 Holdings Ltd.
LANE7 LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 32 -
27
Related party transactions
Transactions with related parties
During the year the group entered into the following transactions with related parties:
Sales
Sales
2024
2023
£
£
Group
Connected companies
1,236,839
1,145,329
Company
Connected companies
1,236,839
1,145,329
Staff cost recharges
Rent payable
2024
2023
2024
2023
£
£
£
£
Group
Connected companies
8,383,665
5,754,868
155,000
1,000,000
Company
Connected companies
2,015,924
1,907,952
30,000
1,000,000
The following amounts were outstanding at the reporting end date:
Amounts due to related parties
2024
2023
£
£
Group
Connected companies
3,911,733
2,118,754
Company
Connected companies
2,537,762
1,336,823
The following amounts were outstanding at the reporting end date:
Amounts due from related parties
2024
2023
Balance
Balance
£
£
Group
Connected companies
10,589,859
6,014,333
Company
Connected companies
10,202,169
5,960,341
LANE7 LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 33 -
28
Cash generated from group operations
2024
2023
£
£
Profit for the year after tax
2,848,991
4,232,743
Adjustments for:
Taxation charged
1,909,485
1,036,453
Finance costs
400,832
208,600
Investment income
(123,988)
(43,711)
Gain on disposal of tangible fixed assets
-
(2,595)
Amortisation and impairment of intangible assets
12,625
10,516
Depreciation and impairment of tangible fixed assets
1,827,117
1,122,936
Other gains and losses
-
100
Movements in working capital:
Increase in stocks
(114,799)
(53,607)
Increase in debtors
(3,917,088)
(2,422,580)
Increase in creditors
9,373,731
2,386,968
Cash generated from operations
12,216,906
6,475,823
29
Analysis of changes in net funds/(debt) - group
1 November 2023
Cash flows
31 October 2024
£
£
£
Cash at bank and in hand
2,689,026
1,212,733
3,901,759
Borrowings excluding overdrafts
(2,260,663)
(4,055,125)
(6,315,788)
428,363
(2,842,392)
(2,414,029)
LANE7 LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 34 -
30
Prior period adjustment
Reconciliation of changes in equity - group
1 November
31 October
2022
2023
£
£
Adjustments to prior year
Lease position update
15,162
125,285
Release of rent free period
4,927
-
Depreciation recharge
74,080
-
Revision of corporation tax charge
(282,439)
-
Recognition of lease creditor
(113,995)
-
Reclassification of revenue items from capital
(266,524)
-
Deferred tax charge
(3,310)
-
Total adjustments
(572,099)
125,285
Equity as previously reported
8,160,220
11,695,579
Equity as adjusted
7,588,121
11,820,864
Analysis of the effect upon equity
Profit and loss reserves
(572,099)
125,285
Reconciliation of changes in profit for the previous financial period
2023
£
Adjustments to prior year
Lease position update
125,285
Profit as previously reported
4,107,458
Profit as adjusted
4,232,743
Notes to reconciliation
Adjustment required in current year to FY23
Adjustments have been made to reflect the updated accounting treatment of one lease. Calculations in prior years were based on a draft lease. A final signed lease has been issued in the current year.
LANE7 LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
30
Prior period adjustment
(Continued)
- 35 -
Adjustments required in FY23 to prior periods
The group has carried out a historical Capital Allowances review covering the period from incorporation up to 31 October 2022. As a result of this review, items which were previously categorised as capital were identified as being revenue in nature. Subsequently, these items have been restated and reflected in the profit and loss account, rather than as fixed assets. The corporation tax returns were resubmitted based on the revisions, resulting in a reduction to the corporation tax charge previously stated.
An adjustment was made to other creditors to recognise a previously unrecognised operating lease incentive on a straight line basis over the lease term, in accordance with FRS 102.
Deferred tax movement on timing differences was not provided for in prior years. Deferred tax has been recognised and the 2022 comparatives restated.
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