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Registered number: 00487853










L.C.P. Engineering Co. Limited










Annual report and financial statements

For the year ended 31 October 2024

 
L.C.P. Engineering Co. Limited
 

Company Information


Directors
M H Fraser Moat 
A B Elliott 




Company secretary
A B Elliott



Registered number
00487853



Registered office
37 St Margaret's Street

Canterbury

Kent

CT1 2TU




Independent auditor
Just Audit Limited
Chartered Accountants & Statutory Auditors

Strelley Hall

Main Street

Strelley

Nottingham

NG8 6PE




Accountants
Kreston Reeves LLP
2nd Floor, Maritime Place

Quayside

Chatham Maritime

Chatham

Kent

ME4 4QZ




Bankers
Natwest Bank
21 New Dover Road

Canterbury

Kent

CT1 3UY





 
L.C.P. Engineering Co. Limited
 

Contents



Page
Strategic report
 
1 - 2
Directors' report
 
3 - 4
Independent auditor's report
 
5 - 7
Statement of comprehensive income
 
8
Balance sheet
 
9
Statement of changes in equity
 
10
Statement of cash flows
 
11
Analysis of net debt/funds
 
12
Notes to the financial statements
 
13 - 26


 
L.C.P. Engineering Co. Limited
 

Strategic report
For the year ended 31 October 2024

Introduction
 
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.

Business review
 
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.
 

Principal risks and uncertainties
 
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

 
L.C.P. Engineering Co. Limited
 

Strategic report (continued)
For the year ended 31 October 2024


Financial key performance indicators
 
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.






A B Elliott
Director
Date: 24 July 2025

Page 2

 
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.

Directors' responsibilities statement

The directors are responsible for preparing the Strategic report, the Directors' report and the financial statements in accordance with applicable law and regulations.
 
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 of the profit or loss of the Company for that period.

 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 2006They 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.

Results

The profit for the year, after taxation, amounted to £128,058 (2023 - £137,787).

Directors

The directors who served during the year were:

Mrs I A Moat 
M H Fraser Moat 
A B Elliott 

Mrs I A Moat died on 17 November 2024.

Future developments

The company will continue to consider new opportunities for the branch network and its assets as they arise.

Page 3

 
L.C.P. Engineering Co. Limited
 

 
Directors' report (continued)
For the year ended 31 October 2024

Disclosure of information to auditor

Each of the persons who are directors at the time when this Directors' report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company's auditor is unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditor is aware of that information.

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.
 





A B Elliott
Director
Date: 24 July 2025

Page 4

 
L.C.P. Engineering Co. Limited
 

 
Independent auditor's report to the members of L.C.P. Engineering Co. Limited
 

Opinion


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 policiesThe 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 Company's affairs as at 31 October 2024 and of its 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 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.


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 Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.


Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.


Other information


The other information comprises the information included in the 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' reportOur 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.


Page 5

 
L.C.P. Engineering Co. Limited
 

 
Independent auditor's report to the members of L.C.P. Engineering Co. Limited (continued)


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 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.


Matters on which we are required to report by exception
 

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.


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, or returns adequate for our audit have not been received from branches not visited by us; or
the 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 Directors' responsibilities statement set out on page 3, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.


In preparing the financial statements, the directors are responsible for assessing the 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 Company or to cease operations, or have no realistic alternative but to do so.


Page 6

 
L.C.P. Engineering Co. Limited
 

 
Independent auditor's report to the members of L.C.P. Engineering Co. Limited (continued)


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.


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.


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 2006Our 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.





Rachel Davis BA FCA (Senior statutory auditor)
for and on behalf of
Just Audit Limited
Chartered Accountants &
Statutory Auditors
Strelley Hall
Main Street
Strelley
Nottingham
NG8 6PE

24 July 2025
Page 7

 
L.C.P. Engineering Co. Limited
 

Statement of comprehensive income
For the year ended 31 October 2024

2024
2023
Note
£
£

  

Turnover
 4 
8,477,492
8,336,114

Cost of sales
  
(6,244,076)
(6,078,264)

Gross profit
  
2,233,416
2,257,850

Administrative expenses
  
(2,144,010)
(2,151,447)

Other operating income
 6 
77,012
76,942

Operating profit
  
166,418
183,345

Interest receivable and similar income
 10 
13,584
5,631

Interest payable and similar expenses
 11 
(3,179)
-

Profit before tax
  
176,823
188,976

Tax on profit
 12 
(48,765)
(51,189)

Profit for the financial year
  
128,058
137,787

There was no other comprehensive income for 2024 (2023:£NIL).

The notes on pages 13 to 26 form part of these financial statements.

Page 8

 
L.C.P. Engineering Co. Limited
Registered number: 00487853

Balance sheet
As at 31 October 2024

2024
2023
Note
£
£

Fixed assets
  

Tangible assets
 14 
3,422,220
2,516,893

Investments
 15 
100
100

Investment property
 16 
1,630,000
1,630,000

  
5,052,320
4,146,993

Current assets
  

Stocks
 17 
1,136,701
1,148,877

Debtors: amounts falling due within one year
 18 
1,723,711
1,605,084

Cash at bank and in hand
 19 
357,248
438,283

  
3,217,660
3,192,244

Creditors: amounts falling due within one year
 20 
(1,929,263)
(1,655,483)

Net current assets
  
 
 
1,288,397
 
 
1,536,761

Total assets less current liabilities
  
6,340,717
5,683,754

Creditors: amounts falling due after more than one year
 21 
(529,649)
-

Provisions for liabilities
  

Deferred tax
 23 
(281,622)
(282,366)

  
 
 
(281,622)
 
 
(282,366)

Net assets
  
5,529,446
5,401,388


Capital and reserves
  

Called up share capital 
 24 
4,513
4,513

Capital redemption reserve
 25 
487
487

Non-distributable fair value reserve
 25 
572,795
608,249

Profit and loss account
 25 
4,951,651
4,788,139

  
5,529,446
5,401,388


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




A B Elliott
Director

Date: 24 July 2025

The notes on pages 13 to 26 form part of these financial statements.

Page 9

 
L.C.P. Engineering Co. Limited
 

Statement of changes in equity
For the year ended 31 October 2024


Called up share capital
Capital redemption reserve
Non-distributable fair value reserve
Profit and loss account
Total equity

£
£
£
£
£


At 1 November 2022
4,513
487
608,249
4,650,352
5,263,601


Comprehensive income for the year

Profit for the year
-
-
-
137,787
137,787



At 1 November 2023
4,513
487
608,249
4,788,139
5,401,388


Comprehensive income for the year

Profit for the year
-
-
-
128,058
128,058

Transfer between reserves
-
-
(35,454)
35,454
-


At 31 October 2024
4,513
487
572,795
4,951,651
5,529,446


Further details of reserves are shown in note 25.

Page 10

 
L.C.P. Engineering Co. Limited
 

Statement of cash flows
For the year ended 31 October 2024

2024
2023
£
£

Cash flows from operating activities

Profit for the financial year
128,058
137,787

Adjustments for:

Depreciation of tangible assets
67,564
63,375

Loss on disposal of tangible assets
50
(3,124)

Interest paid
3,179
-

Interest received
(13,584)
(5,631)

Taxation charge
48,765
51,189

Decrease/(increase) in stocks
12,176
(58,548)

(Increase) in debtors
(118,627)
(202,311)

(Decrease)/increase in creditors
(56,199)
101,586

Corporation tax (paid)
(46,525)
(40,414)

Net cash generated from operating activities

24,857
43,909


Cash flows from investing activities

Purchase of tangible fixed assets
(973,891)
(68,299)

Sale of tangible fixed assets
950
16,331

Interest received
13,584
5,631

Net cash from investing activities

(959,357)
(46,337)

Cash flows from financing activities

New secured loans
700,000
-

Interest paid
(3,179)
-

Net cash used in financing activities
696,821
-

Net (decrease) in cash and cash equivalents
(237,679)
(2,428)

Cash and cash equivalents at beginning of year
438,283
440,711

Cash and cash equivalents at the end of year
200,604
438,283


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
357,248
438,283

Bank overdrafts
(156,644)
-

200,604
438,283


The notes on pages 13 to 26 form part of these financial statements.

Page 11

 
L.C.P. Engineering Co. Limited
 

Analysis of Net (Debt)/Funds
For the year ended 31 October 2024




At 1 November 2023
Cash flows
At 31 October 2024
£

£

£

Cash at bank and in hand

438,283

(81,035)

357,248

Bank overdrafts

-

(156,644)

(156,644)

Debt due after 1 year

-

(529,649)

(529,649)

Debt due within 1 year

-

(170,351)

(170,351)


438,283
(937,679)
(499,396)

The notes on pages 13 to 26 form part of these financial statements.

Page 12

 
L.C.P. Engineering Co. Limited
 

 
Notes to the financial statements
For the year ended 31 October 2024

1.


General information

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

 
2.1

Basis of preparation of financial statements

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:

 
2.2

Going concern

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.

 
2.3

Revenue

Turnover is recognised to the extent that it is probable that the economic benefits will flow to the Company and the turnover can be reliably measured. Turnover is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before turnover is recognised:

Sale of goods

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

Page 13

 
L.C.P. Engineering Co. Limited
 

 
Notes to the financial statements
For the year ended 31 October 2024

2.Accounting policies (continued)

 
2.4

Intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

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.

 
2.5

Tangible fixed assets

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

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:

Freehold property
-
2% straight line
Long term leasehold property
-
2% straight line
Short term leasehold property
-
rates based on unexpired terms of lease
Plant, machinery and equipment
-
10% straight line
Motor vehicles
-
20% straight line
Computer & programming costs
-
33.33% straight line

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.

 
2.6

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

 
2.7

Investment property

Investment property is carried at fair value determined annually by the Directors and derived from the current market rents and investment property yields for comparable real estate, adjusted if necessary for any difference in the nature, location or condition of the specific asset.  Changes in fair value are recognised in profit or loss.

Page 14

 
L.C.P. Engineering Co. Limited
 

 
Notes to the financial statements
For the year ended 31 October 2024

2.Accounting policies (continued)

 
2.8

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a weighted average basis.

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

 
2.9

Debtors

Short-term debtors are measured at transaction price, less any impairment.

 
2.10

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Statement of cash flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Company's cash management.

 
2.11

Creditors

Creditors are measured at the transaction price.

 
2.12

Holiday pay accrual

A liability is recognised to the extent of any unused holiday pay entitlement which is accrued at the balance sheet date and carried forward to future periods. This is measured at the undiscounted salary cost of the future holiday entitlement so accrued at the balance sheet date.

 
2.13

Operating leases: the Company as lessor

Rental income from operating leases is credited to profit or loss on a straight-line basis over the lease term.

Amounts paid and payable as an incentive to sign an operating lease are recognised as a reduction to income over the lease term on a straight-line basis, unless another systematic basis is representative of the time pattern over which the lessor's benefit from the leased asset is diminished.

 
2.14

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance sheet. The assets of the plan are held separately from the Company in independently administered funds.

 
2.15

Financial instruments

The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS
Page 15

 
L.C.P. Engineering Co. Limited
 

 
Notes to the financial statements
For the year ended 31 October 2024

2.Accounting policies (continued)


2.15
Financial instruments (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.



 
2.16

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax is provided on fair value gains in respect of investment properties at the rate expected to apply when the property is sold.  Deferred tax balances are not recognised in respect of permanent differences.  Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.


Page 16

 
L.C.P. Engineering Co. Limited
 

 
Notes to the financial statements
For the year ended 31 October 2024

3.


Judgments in applying accounting policies and key sources of estimation uncertainty

The preparation of the financial statements required the Directors to make judgments, estimates and assumptions that can affect the amounts reported for assets and liabilities, and the results for the year.  The nature of estimation is such that actual outcomes could differ significantly from those estimates.
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.


4.


Turnover

An analysis of turnover by class of business is as follows:


2024
2023
£
£

Sale of goods
8,477,492
8,336,114


All turnover arose within the United Kingdom.


5.


Operating lease commitments receivable

At 31 October 2024 the company had future minimum lease receipts due under non-cancellable operating leases as follows:


2024
2023
£
£



Not later than 1 year
46,804
54,763

Later than 1 year and not later than 5 years
92,142
5,773

After 5 years
25,201
-

164,147
60,536

Page 17

 
L.C.P. Engineering Co. Limited
 

 
Notes to the financial statements
For the year ended 31 October 2024

6.


Other operating income

2024
2023
£
£

Net rents receivable
86,754
96,696

Rent expenses
(46,957)
(19,878)

Sundry income
37,215
124

77,012
76,942



7.


Auditor's remuneration

During the year, the Company obtained the following services from the Company's auditor:


2024
2023
£
£

Fees payable to the Company's auditor for the audit of the Company's financial statements
16,200
17,000


8.


Employees

Staff costs, including directors' remuneration, were as follows:


2024
2023
£
£

Wages and salaries
1,746,665
1,627,408

Social security costs
164,613
148,350

Cost of defined contribution scheme
48,175
46,368

1,959,453
1,822,126


The average monthly number of employees, including the directors, during the year was as follows:


        2024
        2023
            No.
            No.







Directors
3
3



Office and management
15
16



Storekeepers
21
18



Workshop staff
1
1



Delivery staff
26
26



Sales
2
2

68
66

Page 18

 
L.C.P. Engineering Co. Limited
 

 
Notes to the financial statements
For the year ended 31 October 2024

9.


Directors' remuneration

2024
2023
£
£

Directors' emoluments
134,232
128,875

Company contributions to defined contribution pension schemes
2,596
2,596

136,828
131,471


During the year retirement benefits were accruing to 2 directors (2023 - 2) in respect of defined contribution pension schemes.


10.


Interest receivable

2024
2023
£
£


Other interest receivable
13,584
5,631


11.


Interest payable and similar expenses

2024
2023
£
£


Bank interest payable
3,179
-


12.


Taxation


2024
2023
£
£

Corporation tax


Current tax on profits for the year
49,509
46,525

Deferred tax


Origination and reversal of timing differences
(744)
4,664


48,765
51,189
Page 19

 
L.C.P. Engineering Co. Limited
 

 
Notes to the financial statements
For the year ended 31 October 2024
 
12.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is higher than (2023 - higher than) the standard rate of corporation tax in the UK of 25% (2023 - 22.5%). The differences are explained below:

2024
2023
£
£


Profit on ordinary activities before tax
176,823
188,976


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 22.5%)
44,206
42,520

Effects of:


Expenses not deductible for tax purposes
73
1,423

Capital allowances for year in excess of depreciation
7,162
2,906

Short-term timing difference leading to an increase (decrease) in taxation
(744)
4,664

Other timing differences leading to an increase (decrease) in taxation
(1,197)
-

Marginal relief
(735)
(324)

Total tax charge for the year
48,765
51,189


13.


Intangible assets




Goodwill

£



Cost


At 1 November 2023
40,000



At 31 October 2024

40,000



Amortisation


At 1 November 2023
40,000



At 31 October 2024

40,000



Net book value



At 31 October 2024
-



At 31 October 2023
-



Page 20
 


 
L.C.P. Engineering Co. Limited


 

 
Notes to the financial statements
For the year ended 31 October 2024


14.


Tangible fixed assets






Freehold property
Long-term Leasehold Property
Short-term Leasehold Property
Plant, machinery and computer equipment
Motor vehicles
Total

£
£
£
£
£
£



Cost


At 1 November 2023
2,472,746
-
252,914
596,855
234,617
3,557,132


Additions
-
935,169
-
2,058
36,664
973,891


Disposals
-
-
-
-
(18,889)
(18,889)



At 31 October 2024

2,472,746
935,169
252,914
598,913
252,392
4,512,134



Depreciation


At 1 November 2023
284,973
-
74,455
571,092
109,719
1,040,239


Charge for the year
18,216
-
7,452
6,012
35,884
67,564


Disposals
-
-
-
-
(17,889)
(17,889)



At 31 October 2024

303,189
-
81,907
577,104
127,714
1,089,914



Net book value



At 31 October 2024
2,169,557
935,169
171,007
21,809
124,678
3,422,220



At 31 October 2023
2,187,773
-
178,459
25,763
124,898
2,516,893

Page 21
 
L.C.P. Engineering Co. Limited
 

 
Notes to the financial statements
For the year ended 31 October 2024

           14.Tangible fixed assets (continued)




The net book value of land and buildings may be further analysed as follows:


2024
2023
£
£

Freehold
2,169,557
2,187,773

Long leasehold
935,169
-

Short leasehold
171,007
178,459

3,275,733
2,366,232


Included in land and buildings is freehold and long leasehold land of £929,839 (2023 - £779,839).


15.


Fixed asset investments





Investments in subsidiary companies

£



Cost


At 1 November 2023
100



At 31 October 2024
100





Subsidiary undertaking


The following was a subsidiary undertaking of the Company:

Name

Class of shares

Holding

L.C.P. Automotive Components Limited
Ordinary £1
100%

The aggregate of the share capital and reserves as at 31 October 2024 and the profit or loss for the year ended on that date for the subsidiary undertaking were as follows:

Name
Aggregate of share capital and reserves
£
Profit/(Loss)
£

L.C.P. Automotive Components Limited

100
-

The company remained dormant throughout the period.

Page 22

 
L.C.P. Engineering Co. Limited
 

 
Notes to the financial statements
For the year ended 31 October 2024

16.


Investment property


Freehold investment property

£



Valuation


At 1 November 2023
1,630,000



At 31 October 2024
1,630,000


Comprising


Cost
963,141

Annual fair value adjustment surplus/(deficit):


2022
80,000

2021
60,000

Prior years
526,859

At 31 October 2024
1,630,000



The valuations were made at each year end by the directors on a fair value basis based on market comparisons.  There has not been a valuation carried out by an independent valuer who holds a recognised and relevant qualification.

2024
2023
£
£

Non-distributable fair value reserve


At 1 November 2023
608,249
608,249

Deferred tax
(35,454)
-

At 31 October 2024
572,795
608,249



If the Investment properties had been accounted for under the historic cost accounting rules, the properties would have been measured as follows:

2024
2023
£
£


Historic cost
963,141
963,141

Accumulated depreciation and impairments
-
-

963,141
963,141

Page 23

 
L.C.P. Engineering Co. Limited
 

 
Notes to the financial statements
For the year ended 31 October 2024

17.


Stocks

2024
2023
£
£

Finished goods and goods for resale
1,136,701
1,148,877



18.


Debtors

2024
2023
£
£


Trade debtors
1,440,722
1,395,114

Other debtors
57,716
-

Prepayments and accrued income
225,273
209,970

1,723,711
1,605,084



19.


Cash and cash equivalents

2024
2023
£
£

Cash at bank and in hand
357,248
438,283

Less: bank overdrafts
(156,644)
-

200,604
438,283



20.


Creditors: Amounts falling due within one year

2024
2023
£
£

Bank overdrafts
156,644
-

Bank loans
170,351
-

Trade creditors
1,423,480
1,382,809

Amounts owed to group undertakings
100
100

Corporation tax
49,509
46,525

Other taxation and social security
42,660
147,679

Other creditors
21,094
33,361

Accruals and deferred income
65,425
45,009

1,929,263
1,655,483


Page 24

 
L.C.P. Engineering Co. Limited
 

 
Notes to the financial statements
For the year ended 31 October 2024

21.


Creditors: Amounts falling due after more than one year

2024
2023
£
£

Bank loans
529,649
-


The following liabilities were secured:

2024
2023
£
£



Bank loans
700,000
-

Details of security provided:

The bank loans are secured on two freehold properties owned by the company.  The loan is payable over 15 years at a variable interest rate of 3% per annum over base rate.  Monthly repayments are due on £550,000 of the balance.


22.


Loans


Analysis of the maturity of loans is given below:


2024
2023
£
£

Amounts falling due within one year

Bank loans
170,351
-

Amounts falling due 1-2 years

Bank loans
21,967
-

Amounts falling due 2-5 years

Bank loans
76,930
-

Amounts falling due after more than 5 years

Bank loans
430,752
-

700,000
-


Page 25

 
L.C.P. Engineering Co. Limited
 

 
Notes to the financial statements
For the year ended 31 October 2024

23.


Deferred taxation




2024
2023


£

£






At beginning of year
(282,366)
(277,702)


Credited/(charged) to profit or loss
744
(4,664)



At end of year
(281,622)
(282,366)

The provision for deferred taxation is made up as follows:

2024
2023
£
£


Accelerated capital allowances
(31,943)
(32,687)

Rolled over capital gains
(155,615)
(155,615)

Investment property fair value adjustment
(94,064)
(94,064)

(281,622)
(282,366)


24.


Share capital

2024
2023
£
£
Allotted, called up and fully paid



4,513 (2023 - 4,513) Ordinary shares of £1.00 each
4,513
4,513



25.


Reserves

Capital redemption reserve

This reserve records the nominal value of shares repurchased by the company.

Profit & loss account

This reserve comprises all current and prior period retained profits and losses after deducting any distributions made to the company’s shareholders and any transfers to other reserves.

Non-distributable fair value reserve
This reserve records the surplus on fair value adjustment of investment properties less deferred tax on the valuation.  This reserve is a non-distributable profit and loss reserve.  A net gain or loss recognised in a year, as adjusted for deferred tax, will be transferred to this reserve from the profit and loss account reserve.


Page 26