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Registered number:
For the year ended
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L.C.P. Engineering Co. Limited
Company Information
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L.C.P. Engineering Co. Limited
Contents
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L.C.P. Engineering Co. Limited
Strategic report
For the year ended 31 October 2024
The company trades in commercial vehicle and motor vehicle components through a branch network based mainly in the South East of England. This activity is expected to continue unchanged for the foreseeable future.
The Board are pleased to report good trading results in 2024, which saw turnover increase by 2% - the fourth year in a row where the company has delivered growth in turnover.
Despite the continuing pressure on increased costs and the effects of recent government increases in tax and national insurance, the Board are focused on ensuring the company’s internal procurement processes result in giving the best value for money in relation to bought in services. This has enabled the company to manage the continued pressure on margins on products sold. There has also been significant investment in the fabric of the company’s branch network during 2024. The Board consider that the company has performed well in a very competitive and uncertain economic landscape. The company’s balance sheet remains strong with sufficient working capital and cash resources to finance trading requirements for the foreseeable future. This will hold the company in good stead given the political and economic headwinds that will need to be faced in 2025.
Business risk
The business environment in which we operate continues to be challenging. We take the necessary steps to ensure that business risks are addressed on a timely basis. We are aware that any plans for future development of the business may be subject to unforeseen future events outside of our control. The Directors are mindful of the risks of increasing inflation and regularly monitor both buying and selling prices so appropriate and timely action can be taken to mitigate the risks. The Directors are taking the necessary steps to ensure continued supply of parts where EU-based businesses currently form part of the supply chain. Financial instruments The company's principal financial instruments comprise bank balances, trade creditors, bank loans and trade debtors. The main purpose of these instruments is to raise funds to finance the company's operations. The company's approach to managing risks applicable to the financial instruments concerned is shown below. In respect of bank balances, the liquidity risk is managed by maintaining a balance in current and deposit accounts. Trade debtors are managed in respect of credit and cash flow risk by policies concerning the credit offered to customers and the regular monitoring of amounts outstanding for both time and credit limits. Trade creditors' liquidity risk is managed by ensuring sufficient funds are available to meet amounts due. Similarly accrued expenses are recorded and accounted for on a regular basis to ensure that funds are available to settle these at future dates. A bank loan was taken out in the year to finance the purchase of new trading premises to replace an existing branch. The loan is secured against two other freehold premises.
Page 1
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L.C.P. Engineering Co. Limited
Strategic report (continued)
For the year ended 31 October 2024
The key performance indicators are as follows:-
2024 2023 2022 £'000 £'000 £'000 Turnover 8,477 8,336 7,143 Gross profit 2,233 2,258 1,889 Year end stock 1,137 1,149 1,090
The company uses these indicators to monitor profitability and to ensure that it has sufficient stock by product line across the branches to enable it to deliver a prompt and efficient service to its customers.
This report was approved by the board and signed on its behalf.
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L.C.P. Engineering Co. Limited
Directors' report
For the year ended 31 October 2024
The directors present their report and the financial statements for the year ended 31 October 2024.
The directors are responsible for preparing the Strategic report, the Directors' report and the financial statements in accordance with applicable law and regulations.
In preparing these financial statements, the directors are required to:
∙select suitable accounting policies for the Company's financial statements and then apply them consistently;
∙make judgments 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 transactions and disclose with reasonable accuracy at any time the financial position of the Company and to 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 hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The profit for the year, after taxation, amounted to £128,058 (2023 - £137,787).
The directors who served during the year were:
Mrs I A Moat died on 17 November 2024.
The company will continue to consider new opportunities for the branch network and its assets as they arise.
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L.C.P. Engineering Co. Limited
Directors' report (continued)
For the year ended 31 October 2024
Strategic report
The company has chosen in accordance with the Companies Act 2006, section 414C(11) to set out in the company's Strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) regulations 2008, Sch 7 to be contained in the Directors' report.
This report was approved by the board and signed on its behalf.
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L.C.P. Engineering Co. Limited
Independent auditor's report to the members of L.C.P. Engineering Co. Limited
We have audited the financial statements of L.C.P. Engineering Co. Limited (the 'Company') for the year ended 31 October 2024, which comprise the Statement of comprehensive income, the Balance sheet, the Statement of cash flows, the Statement of changes in equity and the related notes, 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).
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 Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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.
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 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.
The other information comprises the information included in the Strategic report and the Directors' report other than the financial statements and our Auditor's report thereon. The directors are responsible for the other information contained within the Strategic report and the Directors' 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.
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L.C.P. Engineering Co. Limited
Independent auditor's report to the members of L.C.P. Engineering Co. Limited (continued)
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Strategic report and the Directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the Strategic report and the Directors' report have been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic report or the Directors' report.
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L.C.P. Engineering Co. Limited
Independent auditor's report to the members of L.C.P. Engineering Co. Limited (continued)
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.
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. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
We gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates and considered the risk of acts by the company that were contrary to applicable laws and regulations, including fraud. We designed audit procedures to respond to the risk, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion. We focused on laws and regulations which could give rise to a material misstatement in the financial statements, including, but not limited to, the Companies Act 2006 and UK tax legislation. Our tests included agreeing the financial statement disclosures to underlying supporting documentation and enquiries with management. There are inherent limitations in the audit procedures described above and, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. We did not identify any key audit matters relating to irregularities, including fraud. As in all our audits, we also addressed the risk of management override of internal controls, including testing journals and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to 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 Auditor's report.
This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an Auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.
for and on behalf of
Chartered Accountants &
Statutory Auditors
Strelley Hall
Main Street
Strelley
NG8 6PE
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L.C.P. Engineering Co. Limited
Statement of comprehensive income
For the year ended 31 October 2024
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L.C.P. Engineering Co. Limited
Registered number: 00487853
Balance sheet
As at
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 13 to 26 form part of these financial statements.
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L.C.P. Engineering Co. Limited
Statement of changes in equity
For the year ended 31 October 2024
Page 10
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L.C.P. Engineering Co. Limited
Statement of cash flows
For the year ended 31 October 2024
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L.C.P. Engineering Co. Limited
Analysis of Net (Debt)/Funds
For the year ended 31 October 2024
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L.C.P. Engineering Co. Limited
Notes to the financial statements
For the year ended 31 October 2024
L.C.P. Engineering Co. Limited is a private limited company limited by shares, incorporated in England & Wales. The registered office is at 37 St Margaret's Street, Canterbury, Kent, CT1 2TU. The principal place of business is 545 Canterbury Street, Gillingham, Kent, ME7 5LF and eight other branches. The company trades in commercial vehicle and motor vehicle components through a branch network based mainly in the South East of England.
L.C.P. Engineering Co. Limited is the parent undertaking of a medium sized group but is exempt from the requirement to prepare consolidated accounts as the subsidiary company is dormant.
2.Accounting policies
The financial statements have been prepared under the historical cost convention as modified by the valuation of investment properties at fair value within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The company's functional and presentation currency is pounds sterling. The financial statements are presented to the nearest £1.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).
The following principal accounting policies have been applied:
The financial statements have been prepared on a going concern basis. The Directors have reviewed this and consider it to be appropriate at the present time.
The Directors are mindful of the risks of inflation and regularly monitor both buying and selling prices so appropriate and timely action can be taken to mitigate the risks.
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L.C.P. Engineering Co. Limited
Notes to the financial statements
For the year ended 31 October 2024
2.Accounting policies (continued)
All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.
At each reporting date the Company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.
Land is not depreciated. Depreciation on other assets is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
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L.C.P. Engineering Co. Limited
Notes to the financial statements
For the year ended 31 October 2024
2.Accounting policies (continued)
The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS
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L.C.P. Engineering Co. Limited
Notes to the financial statements
For the year ended 31 October 2024
2.Accounting policies (continued)
102 to all of its financial instruments.
Financial instruments are recognised in the Company's Balance sheet when the Company becomes party to the contractual provisions of the instrument.
Basic financial assets
Basic financial assets, which include trade and other debtors, cash and bank balances, are initially recognised at their transaction price (adjusted for transaction costs) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.
Basic financial liabilities
Financial liabilities are classified according to the substance of the contractual arrangements entered into.
Basic financial liabilities, which include trade and other creditors, bank loans and other loans are initially recognised at their transaction price (adjusting for transaction costs). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial.
Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.
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L.C.P. Engineering Co. Limited
Notes to the financial statements
For the year ended 31 October 2024
The following are the company's key sources of estimation uncertainty: Freehold property and other fixed assets The company owns various freehold properties from which it trades. On acquisition, the company estimated the proportion of the cost relating to the purchase of land, which is not depreciated, and the useful economic life of the building and its residual value for the purposes of calculating annual depreciation. The property is regularly reviewed for impairment and any other changes required to the estimates. The company also estimates appropriate depreciation rates and residual values for other fixed assets. Investment property The company has also acquired investment property which is let to third parties. The estimated current market value is assessed by the Directors and reported in the financial statements depending on local market conditions. Stock The company assesses whether stock is current or obsolescent on the basis of whether there has been a sale in a defined period of time. This may be varied depending on the stock line and on other factors external to the business.
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L.C.P. Engineering Co. Limited
Notes to the financial statements
For the year ended 31 October 2024
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L.C.P. Engineering Co. Limited
Notes to the financial statements
For the year ended 31 October 2024
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L.C.P. Engineering Co. Limited
Notes to the financial statements
For the year ended 31 October 2024
12.Taxation (continued)
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