| REGISTERED NUMBER: |
| Strategic Report, Report of the Directors and |
| Financial Statements for the Period 1 January 2022 to 31 March 2023 |
| for |
| Lux Group Holdings Ltd |
| REGISTERED NUMBER: |
| Strategic Report, Report of the Directors and |
| Financial Statements for the Period 1 January 2022 to 31 March 2023 |
| for |
| Lux Group Holdings Ltd |
| Lux Group Holdings Ltd (Registered number: 11707773) |
| Contents of the Financial Statements |
| for the Period 1 January 2022 to 31 March 2023 |
| Page |
| Company Information | 1 |
| Strategic Report | 2 |
| Report of the Directors | 5 |
| Report of the Independent Auditors | 7 |
| Income Statement | 11 |
| Other Comprehensive Income | 12 |
| Balance Sheet | 13 |
| Statement of Changes in Equity | 14 |
| Cash Flow Statement | 15 |
| Notes to the Cash Flow Statement | 16 |
| Notes to the Financial Statements | 18 |
| Lux Group Holdings Ltd |
| Company Information |
| for the Period 1 January 2022 to 31 March 2023 |
| DIRECTORS: |
| REGISTERED OFFICE: |
| REGISTERED NUMBER: |
| AUDITORS: |
| Statutory Auditors |
| TOR |
| Saint-Cloud Way |
| Maidenhead |
| Berkshire |
| SL6 8BN |
| Lux Group Holdings Ltd (Registered number: 11707773) |
| Strategic Report |
| for the Period 1 January 2022 to 31 March 2023 |
| The directors present their strategic report for the period 1 January 2022 to 31 March 2023. |
| REVIEW OF BUSINESS |
| ln December 2018, the Company acquired the trade and assets of the businesses trading as Smallbone of Devizes, Mark Wilkinson Furniture and Brookmans (all luxury furniture manufacturers) from an administrator. In July 2019, it also acquired the trade and assets of McCarron & Co, another luxury furniture manufacturer, from its administrator. The acquired furniture brands, in particular Smallbone, are long established and recognised internationally. The directors and shareholders embarked on a rejuvenation of the Brands to promote growth of the Company's sales and brand Equity worldwide and, thereby, enhance the value of the brand names and trademarks acquired. To this end the shareholders have invested heavily to: |
| - Preserve brand value, |
| In late 2018 the directors and shareholders chose to honour customer legacy contracts on which deposits of £9.7 million (Including VAT) had been paid to the legacy entity prior to the administrator's appointment ("Prior deposit contract"). Some of these contracts were dated 2015-2017 and with the onset of inflation during covid these contracts yielded significant negative margins. The contracts have since been fulfilled which has resulted in large net losses showing in the Company's account to date. In addition, to the Brand Value preservation efforts, redundancy costs are shown in the accounts and resulted in a negative Gross Profit. As I sign off this report, all of these burdens have been satisfied. |
| - Drive efficiencies,· and |
| By 31 March 2023, the Company had invested over £1.3 million in plant, equipment and systems to improve productivity capacity and incurred some £1.2 million in redundancy costs to 'right size' the business operations. The Covid-19 pandemic had a massive negative impact on demand for the company's products, more especially because of the international nature of the Company's business, so the efficiencies are only being felt as the world recovers from the pandemic mindset. In addition, Covid-19 led to serious supply chain issues and rapid material cost inflation. |
| - Position the business to maximise future growth. |
| In addition to increasing the production capacity, the directors have invested significant sums on establishing a 'luxury pavilion' in London's prime retail and residential location (197-205 Brompton Road, Knightsbridge, London SW3 1LB) to showcase the Company's products including luxury products by concession partners. The pavilion was partially opened in 2021 but, due to several ingress events and a massive flooding on the 4th of February 2021 significant damage was done to the fit out, delaying the opening and resulting in significant costs. Continued and persistent flooding at the property continually caused damage and prevented quiet enjoyment. The company finally vacated the property as rates and rent and repair bills were never ending without the Landlord making the necessary repairs. As these were insured events there is a possibility for settlement with insurers which are in the late stages. The unsatisfactory position of the Landlord and insurers is the subject of pre-litigation discussions between the Company and the landlord (referred to in note 30 to the accounts), which the directors believe will lead to very substantial compensation for reimbursement of remedial expenses, loss of trade and profits. In the meantime, the trading impact of not having a fully fitted, fully operative showroom has curtailed the Company's growth ambitions since 2021. The directors are hopeful that the dispute will be settled shortly and have created a studio showroom next to the Company's head office at 100 Brompton Road. |
| Lux Group Holdings Ltd (Registered number: 11707773) |
| Strategic Report |
| for the Period 1 January 2022 to 31 March 2023 |
| PRINCIPAL RISKS AND UNCERTAINTIES |
| The directors consider that the principal risks and uncertainties faced by the Company are in the following categories: |
| Economic risk |
| The risk of increased interest rates and/or inflation having an adverse impact on our markets. |
| Competitor risk |
| The directors of the Company manage competition through close attention to customer service levels. Competitors would have to make substantial investment in marketing and brand building. The Brand is internationally recognized as SMALLBONE and Smallbone of Devizes. Along with this Brand are Mark Wilkinson Furniture, Brookman's, McCarron as other brands held by Lux. |
| Financial risk |
| Apart from some assets that are directly funded by leases and bank finance, the Company has been fully funded by its shareholders and the charges over its assets are held by organisations tied to the shareholders. As of 31.3.23 the share capital was in the order of £13,689,243 and an additional funding in the amount of £23,381,088. The lack of reliance on external finance is an existing strength and allows for future opportunities to raise external funds as the business grows in top line revenue and bottom-line profitability. |
| Brexit |
| The Company trades on an international basis but with relatively small exposure at present to European markets, both in sales and purchases. Therefore, whilst the business faces some risk from the uncertainties that Brexit has bought, the directors have plans to negate the potential risks. |
| COVID-19 outbreak |
| Whilst the Covid-19 pandemic was still a drag on trading performance and increased risk exposures during the 2021 trading year, the world has since gradually returned to pre-Covid trading levels across many sectors, including our industry. The directors believe that the Company will be better prepared for any new Covid-19 like pandemic and, hopefully, the governments of most of our main markets (the UK and USA) will have learnt lessons too, such that the disruption to normal business will be less than in the Covid-19 response. |
| KEY PERFORMANCE INDICATORS |
| The Company's key performance indicators are: |
| 31.3.23 | 31.12.21 |
| (as restated) |
| £ | £ |
| Turnover | 20,133,107 | 19,834,365 |
| EBITDA | (26,100,629 | ) | (10,505,883 | ) |
| Gross profit | (1,333,957 | ) | 3,152,652 |
| Gross profit percentage | -6.63% | 15.85% |
| Lux Group Holdings Ltd (Registered number: 11707773) |
| Strategic Report |
| for the Period 1 January 2022 to 31 March 2023 |
| OUTLOOK |
| As a result of right sizing the operations - reducing the overhead reducing the number of UK buildings within the group, overhead expenses relating to rates and energy have been reduced. The company has also dramatically improved its supply chain and have increased its international business with a large developer. International orders specifically in Manhattan for large developments batches allow for increased economies of scale. The projects for this developer in the que exceed £150 million for the periods 2026-2030. I am happy to report that a dramatic improvement in the Company's performance since April 2023 have taken place and look forward to concluding and filing our 2024 accounts shortly after filing these accounts. |
| Whist the UK economic prospects currently look challenging, I am optimistic that prospects in the Ultra High Net Worth arena are exempt from the UK metrics as the company caters to international clients who have significant homes in London and Manhattan as well as vacation homes and these clients deliver referral volumes and second and third home projects. The US market for luxury developments is growing at a record pace and we are confident that our Best of Class position in the development market will allow us to further capitalize on our near 50-year history as the "Best of Class" and Best British Brand in the bespoke kitchen and bath wardrobe furniture for the development community. |
| The nature of the projects that we undertake, due to the timing of our delivery often being dictated by our customers' renovation works, means that there can be a very substantial lag between taking an order and delivering it (we only account for a sale on delivery). This means that our, currently healthy, forward order book gives us good visibility on our sales profile for many months ahead. The company is now geared for increased velocity of manufacture at lower fixed costs which should translate into improved EBITDA. |
| ON BEHALF OF THE BOARD: |
| Lux Group Holdings Ltd (Registered number: 11707773) |
| Report of the Directors |
| for the Period 1 January 2022 to 31 March 2023 |
| The directors present their report with the financial statements of the company for the period 1 January 2022 to 31 March 2023. |
| PRINCIPAL ACTIVITY |
| The principal activity of the company in the period under review was that of design, manufacture and installation of bespoke fitted kitchens. |
| DIVIDENDS |
| No dividends will be distributed for the period ended 31 March 2023. |
| EVENTS SINCE THE END OF THE PERIOD |
| Information relating to events since the end of the period is given in the notes to the financial statements. |
| DIRECTORS |
| Other changes in directors holding office are as follows: |
| Mr I C O'Mahoney ceased to be a director on 20 October 2023. |
| GOING CONCERN |
| The financial statements have been prepared on a going concern basis which assumes that the Company will continue in operational existence for at least twelve months from the date of approval of the financial statements. |
| The Company had net liabilities of £36,106,091 for the financial period ended 31 March 2023 (2021: net liabilities £11,961,765. The Company remains dependent on the continuing support of its stakeholders and shareholders to meet payments as they fall due. |
| STATEMENT OF DIRECTORS' RESPONSIBILITIES |
| The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
| Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and 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 and then apply them consistently; |
| - | make judgements and accounting estimates that are reasonable and prudent; |
| - | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
| The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
| Lux Group Holdings Ltd (Registered number: 11707773) |
| Report of the Directors |
| for the Period 1 January 2022 to 31 March 2023 |
| STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
| So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
| ON BEHALF OF THE BOARD: |
| Report of the Independent Auditors to the Members of |
| Lux Group Holdings Ltd |
| Qualified Opinion |
| We have audited the financial statements of Lux Group Holdings Ltd (the 'company') for the period ended 31 March 2023 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
| In our opinion, except for the possible effects of the matters described in the basis for the qualified opinion section of our report, the financial statements: |
| - give a true and fair view of the state of the company's affairs as at 31 March 2023 and of its loss for the period 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 qualified opinion |
| During the financial period ended 31 March 2023 we were unable to verify the closing balance of stock due to not being able to attend the year end stock count and we were unable to verify this balance through any other means. As a result we were unable to perform substantive testing on this balance which amounted to £1,243,886. Consequently we were unable to determine whether any adjustment to this amount was necessary. |
| Conclusions relating to going concern |
| In forming our opinion on the financial statements, which is not modified, we have considered the adequacy of the disclosure made within the notes to the financial statements concerning the company's ability to continue as a going concern. |
| As at 31 March 2023, Lux Group Holdings Limited is managing cash to ensure the company can continue to trade. A letter of support has been issued from Mr R Shemesh (the "shareholder") to Lux Group Holdings Limited to provide financial support to the Company for at least 12 months from the date of signing the financial statements for the year ended 31 March 2023. |
| Should the company not receive financial support from it's shareholder, there is a possibility that the Company may not be able to continue as a going concern. The financial statements do not include the adjustments that should result if the company were unable to continue as a going concern. Our opinion is not modified in respect of this matter. |
| Other information |
| The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
| Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
| In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
| Opinions on other matters prescribed by the Companies Act 2006 |
| In our opinion, based on the work undertaken in the course of the audit: |
| - | the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
| - | the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
| Report of the Independent Auditors to the Members of |
| Lux Group Holdings Ltd |
| 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 Report of the Directors. |
| We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
| - | adequate accounting records have not been kept, 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 Statement of Directors' Responsibilities set out on page five, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
| In preparing the financial statements, the directors are responsible for assessing the 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. |
| Report of the Independent Auditors to the Members of |
| Lux Group Holdings Ltd |
| Auditors' responsibilities for the audit of the financial statements |
| Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
| The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
| -The engagement partners ensured that the engagement team collectively had the appropriate competence, capabilities and skill to identify or recognise non-compliance with applicable laws and regulations; |
| -we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the sector; |
| -we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation and data protection, anti-bribery, employment, environmental and health and safety legislation; |
| -we assessed the extent of compliance with laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and |
| -identified laws and regulations were communicated within the audit team regularly and the team remained alert to instance of non-compliance throughout the audit. |
| We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by; |
| -making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; |
| -considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations; and |
| -understanding the design of the company's remuneration policies. |
| To address the risk of fraud through management bias and override of controls, we; |
| -performed analytical procedures to identify unusual or unexpected relationships; |
| -tested journal entries to identify unusual transactions; |
| -assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and |
| -investigated the rationale behind significant or unusual transactions. |
| Audit response to risks identified |
| In response to the risk of irregularities and non-compliance with laws and regulations; we designed procedures which included, but were not limited to; |
| -agreeing financial statement disclosures to underlying supporting documentation; |
| -enquiring of management as to actual and potential litigation and claims; and |
| -reviewing correspondence with HMRC, relevant regulators and company's legal advisors. |
| There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. |
| Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment of collusion. |
| A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
| Report of the Independent Auditors to the Members of |
| Lux Group Holdings Ltd |
| Use of our report |
| This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
| for and on behalf of |
| Statutory Auditors |
| TOR |
| Saint-Cloud Way |
| Maidenhead |
| Berkshire |
| SL6 8BN |
| Lux Group Holdings Ltd (Registered number: 11707773) |
| Income Statement |
| for the Period 1 January 2022 to 31 March 2023 |
| Period |
| 1.1.22 |
| to | Year Ended |
| 31.3.23 | 31.12.21 |
| as restated |
| Notes | £ | £ |
| TURNOVER | 3 |
| Cost of sales | ( |
) | ( |
) |
| GROSS (LOSS)/PROFIT | ( |
) |
| Administrative expenses | ( |
) | ( |
) |
| (23,408,001 | ) | (12,132,776 | ) |
| Other operating income | 4 |
| OPERATING LOSS | 6 | ( |
) | ( |
) |
| Interest receivable and similar income |
| (23,407,990 | ) | (11,823,416 | ) |
| Interest payable and similar expenses | 7 | ( |
) | ( |
) |
| LOSS BEFORE TAXATION | ( |
) | ( |
) |
| Tax on loss | 8 |
| LOSS FOR THE FINANCIAL PERIOD | ( |
) | ( |
) |
| Lux Group Holdings Ltd (Registered number: 11707773) |
| Other Comprehensive Income |
| for the Period 1 January 2022 to 31 March 2023 |
| Period |
| 1.1.22 |
| to | Year Ended |
| 31.3.23 | 31.12.21 |
| as restated |
| Notes | £ | £ |
| LOSS FOR THE PERIOD | ( |
) | ( |
) |
| OTHER COMPREHENSIVE INCOME | - | - |
| TOTAL COMPREHENSIVE INCOME FOR THE PERIOD | ( |
) | (11,879,072 | ) |
| Note |
| Prior year adjustment | 9 | ( |
) | ( |
) |
| TOTAL COMPREHENSIVE INCOME SINCE LAST ANNUAL REPORT |
(24,144,326 |
) |
(12,852,266 |
) |
| Lux Group Holdings Ltd (Registered number: 11707773) |
| Balance Sheet |
| 31 March 2023 |
| 31.3.23 | 31.12.21 |
| as restated |
| Notes | £ | £ |
| FIXED ASSETS |
| Intangible assets | 11 |
| Tangible assets | 12 |
| Investments | 13 |
| CURRENT ASSETS |
| Stocks | 14 |
| Debtors | 15 |
| Cash at bank and in hand |
| CREDITORS |
| Amounts falling due within one year | 16 | ( |
) | ( |
) |
| NET CURRENT LIABILITIES | ( |
) | ( |
) |
| TOTAL ASSETS LESS CURRENT LIABILITIES | ( |
) | ( |
) |
| CREDITORS |
| Amounts falling due after more than one year | 17 | ( |
) | ( |
) |
| PROVISIONS FOR LIABILITIES | 22 | ( |
) | ( |
) |
| NET LIABILITIES | ( |
) | ( |
) |
| CAPITAL AND RESERVES |
| Called up share capital | 23 |
| Retained earnings | 24 | ( |
) | (25,849,808 | ) |
| SHAREHOLDERS' FUNDS | ( |
) | ( |
) |
| The financial statements were approved by the Board of Directors and authorised for issue on |
| Lux Group Holdings Ltd (Registered number: 11707773) |
| Statement of Changes in Equity |
| for the Period 1 January 2022 to 31 March 2023 |
| Called up |
| share | Retained | Total |
| capital | earnings | equity |
| £ | £ | £ |
| Balance at 1 January 2021 | ( |
) |
| Prior year adjustment | - | ( |
) | ( |
) |
| As restated | ( |
) | ( |
) |
| Changes in equity |
| Total comprehensive income | - | ( |
) | ( |
) |
| Balance at 31 December 2021 | ( |
) | ( |
) |
| Prior year adjustment | - | ( |
) | ( |
) |
| As restated | ( |
) | ( |
) |
| Changes in equity |
| Total comprehensive income | - | ( |
) | ( |
) |
| Balance at 31 March 2023 | ( |
) | ( |
) |
| Lux Group Holdings Ltd (Registered number: 11707773) |
| Cash Flow Statement |
| for the Period 1 January 2022 to 31 March 2023 |
| Period |
| 1.1.22 |
| to | Year Ended |
| 31.3.23 | 31.12.21 |
| as restated |
| Notes | £ | £ |
| Cash flows from operating activities |
| Cash generated from operations | 1 |
| Interest paid | ( |
) |
| Interest element of hire purchase payments paid | ( |
) | ( |
) |
| Taxation refund |
| Net cash from operating activities |
| Cash flows from investing activities |
| Purchase of tangible fixed assets | ( |
) | ( |
) |
| Purchase of fixed asset investments | - | (1 | ) |
| Sale of tangible fixed assets |
| Government grants received |
| Interest received |
| Net cash from investing activities | ( |
) |
| Cash flows from financing activities |
| New loans in year |
| Loan repayments in year | ( |
) | ( |
) |
| Capital repayments in year | ( |
) | ( |
) |
| Amount introduced by directors | 1,495,737 | - |
| Net cash from financing activities | ( |
) |
| Increase/(decrease) in cash and cash equivalents | ( |
) |
| Cash and cash equivalents at beginning of period | 2 | 1,225,311 |
| Cash and cash equivalents at end of period | 2 | 1,245,461 | 1,012,950 |
| Lux Group Holdings Ltd (Registered number: 11707773) |
| Notes to the Cash Flow Statement |
| for the Period 1 January 2022 to 31 March 2023 |
| 1. | RECONCILIATION OF LOSS BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
| Period |
| 1.1.22 |
| to | Year Ended |
| 31.3.23 | 31.12.21 |
| as restated |
| £ | £ |
| Loss before taxation | ( |
) | ( |
) |
| Depreciation charges |
| Loss on disposal of fixed assets |
| Tax charge | - | 405,843 |
| Government grants | ( |
) |
| Finance costs | 537,536 | 461,499 |
| Finance income | (11 | ) | - |
| (17,471,468 | ) | (10,608,200 | ) |
| Decrease in stocks |
| Decrease in trade and other debtors |
| Increase in trade and other creditors |
| Cash generated from operations |
| 2. | CASH AND CASH EQUIVALENTS |
| The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
| Period ended 31 March 2023 |
| 31.3.23 | 1.1.22 |
| £ | £ |
| Cash and cash equivalents | 1,245,461 | 1,012,950 |
| Year ended 31 December 2021 |
| 31.12.21 | 1.1.21 |
| as restated |
| £ | £ |
| Cash and cash equivalents | 1,012,950 | 1,225,311 |
| Lux Group Holdings Ltd (Registered number: 11707773) |
| Notes to the Cash Flow Statement |
| for the Period 1 January 2022 to 31 March 2023 |
| 3. | ANALYSIS OF CHANGES IN NET DEBT |
| At 1.1.22 | Cash flow | At 31.3.23 |
| £ | £ | £ |
| Net cash |
| Cash at bank and in hand | 1,012,950 | 232,511 | 1,245,461 |
| 1,012,950 | 1,245,461 |
| Debt |
| Finance leases | (2,857,333 | ) | 1,939,364 | (917,969 | ) |
| Debts falling due within 1 year | (956,311 | ) | 588,443 | (367,868 | ) |
| Debts falling due after 1 year | (1,299,279 | ) | 1,237,403 | (61,876 | ) |
| (5,112,923 | ) | 3,765,210 | (1,347,713 | ) |
| Total | (4,099,973 | ) | 3,997,721 | (102,252 | ) |
| Lux Group Holdings Ltd (Registered number: 11707773) |
| Notes to the Financial Statements |
| for the Period 1 January 2022 to 31 March 2023 |
| 1. | STATUTORY INFORMATION |
| Lux Group Holdings Ltd is a |
| The presentation currency of the financial statements is the Pound Sterling (£). |
| 2. | ACCOUNTING POLICIES |
| Basis of preparing the financial statements |
| Preparation of consolidated financial statements |
| The financial statements contain information about Lux Group Holdings Ltd as an individual company and do not contain consolidated financial information as the parent of a group. The company is exempt under Section 400 of the Companies Act 2006 from the requirements to prepare consolidated financial statements as it and its subsidiary undertaking are included by full consolidation in the consolidated financial statements of its parent, Sapphire Cabinetry (UK) LLC, c/o Acuity Law Limited, 3 Assembly Square, Britannia Quay, Cardiff, CF10 4PL. |
| Related party exemption |
| The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
| Lux Group Holdings Ltd (Registered number: 11707773) |
| Notes to the Financial Statements - continued |
| for the Period 1 January 2022 to 31 March 2023 |
| 2. | ACCOUNTING POLICIES - continued |
| Significant judgements and estimates |
| Preparation of the financial statements requires management to make significant judgments and estimates. |
| Judgments and estimates are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Actual results may ultimately differ from these estimates. In the process of applying the Company's accounting policies, management has made the following judgment and estimate, which have the most significant effect on the amounts recognized in the financial statements: |
| Critical Management Judgments in Applying Accounting Policies |
| The following are significant management judgments in applying the accounting policies of the Company that have the most significant effect on the financial statements. |
| Going concern |
| The directors have assessed the Company's ability to continue as a going concern based on forecasts for the following twelve months and beyond and the continued support of the stakeholders and shareholders and are satisfied that it has the resources to continue its business for the foreseeable future. Furthermore, the directors are not aware of any material uncertainties that may cast significant doubt upon the Company's ability to continue as a going concern. Therefore, the financial statements continue to be prepared on the going concern basis. |
| Assessing whether an agreement is a finance or operating lease |
| Management assess at the inception of the lease whether an arrangement is a finance or operating lease based on who bears substantially all risk and benefits incidental to the ownership of the leased items. Based on the management's assessment, the risk and rewards of owning the items leased by the Company are retained by the lessor and therefore accounts for such lease as operating lease. Otherwise, the lease will be accounted for as finance lease. |
| Key Sources of Estimation Uncertainty |
| Information about estimates and assumptions that have the most significant effect on recognition and measurement of assets, liabilities, income and expenses is provided below. Actual results may be substantially different. |
| Estimating useful lives of intangible and tangible fixed assets |
| The Company estimates the useful lives of intangible fixed assets and tangible fixed assets based on the period over which the assets are expected to be available for use. The estimated useful lives are reviewed periodically and are updated if expectations differ from previous estimates due to physical wear and tear, technical or commercial obsolescence and legal or other limits on the use of the assets. In addition, estimation of the useful lives of tangible fixed assets is based on collective assessment of industry practice, internal technical evaluation and experience with similar assets. Actual results, however, may vary due to changes in estimates brought about by changes in factors mentioned above. |
| Estimating allowance for impairment losses on intangible and tangible assets |
| The Company assesses impairment on intangible and tangible assets whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The factors that the Company considers important which could trigger an impairment review include the following: |
| - significant underperformance relative to expected historical or projected future operating results; |
| - significant changes in the manner of use of the acquired assets or the strategy for overall business; and |
| - significant negative industry or economic trends. |
| In determining the present value of estimated future cash flows expected to be generated from the continued use of the assets, the Company is required to make estimates and assumptions that can materially affect the financial statements. |
| These assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss would be recognised whenever evidence exists that the carrying value is not recoverable. For purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows. |
| An impairment loss is recognised and charged to profit or loss if the discounted expected future cash flows are less than the carrying amount. Fair value is estimated by discounting the expected future cash flows using a discount factor that reflects the risk-free rate of interest for a term consistent with the period of expected cash flows. |
| Lux Group Holdings Ltd (Registered number: 11707773) |
| Notes to the Financial Statements - continued |
| for the Period 1 January 2022 to 31 March 2023 |
| 2. | ACCOUNTING POLICIES - continued |
| Construction contract revenue recognition |
| Recognised amounts of construction contract revenues and related work in progress reflect management's best estimate of each contract's outcome and stage of completion. This includes the assessment of the profitability of on-going construction contracts and the order backlog. For more complex contracts in particular costs to complete and contract profitability are subject to estimation uncertainty. |
| Determining net realisable value of stocks |
| Management estimates the net realisable values of stocks, taking into account the most reliable evidence available at each reporting date. The future realisation of these stocks may be affected by market-driven changes that may reduce future selling prices. |
| Allowances for impairment of debtors |
| The Company estimates the allowance for doubtful trade and intercompany debtors based assessment of specific accounts where the Company has objective evidence comprising default in payment terms or significant financial difficulty that certain customers are unable to meet their financial obligations. In these cases, judgement used was based on the best available facts and circumstances including but not limited to, the length of the relationship. |
| Turnover |
| Costs of long term contracts include all direct costs and attributable profits. Provision is made in full for any foreseeable losses. |
| Long term contracts are assessed on a contract by contract basis and reflected in the Income Statement by recording turnover and related costs as contract activity progresses. No profit is recognised until the outcome of a long term contract can be assessed with reasonable certainty. Work in progress represents costs incurred net of amounts transferred to cost of sales, less foreseeable losses and applicable payments on account not matched with turnover. |
| Goodwill |
| Intangible assets |
| Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
| 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. Intangible assets are not subject to amortisation in the year of acquisition. |
| Lux Group Holdings Ltd (Registered number: 11707773) |
| Notes to the Financial Statements - continued |
| for the Period 1 January 2022 to 31 March 2023 |
| 2. | ACCOUNTING POLICIES - continued |
| Tangible fixed assets |
| Long leasehold | - |
| Factory, plant & equipment | - |
| Showroom displays | - |
| Computer equipment | - |
| 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. |
| 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. |
| Government grants |
| Grants are accounted under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to profit or loss at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income. |
| Grants of a revenue nature are recognised in the Statement of comprehensive income in the same period as the related expenditure. |
| Investments in subsidiaries |
| Investments in subsidiaries are measured at cost less accumulated impairment. |
| Investments in unlisted Company shares, whose market value can be reliably determined, are remeasured to market value at each balance sheet date. Gains and losses on remeasurement are recognised in the Statement of comprehensive income for the period. Where market value cannot be reliably determined, such investments are stated at historic cost less impairment. |
| Investments in listed company shares are remeasured to market value at each Statement of financial position date. Gains and losses on remeasurement are recognised in profit or loss for the period. |
| 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 first in, first out basis. Work in progress represents the costs incurred on kitchen projects that are still under production or installation as of the reporting date. WIP includes direct materials, direct labor and an allocation of overheads related to each project. WIP is measured at the lower of cost and net realisable value in accordance with FRS102 Section 13 - Inventories. |
| At each reporting date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised in profit or loss. |
| Lux Group Holdings Ltd (Registered number: 11707773) |
| Notes to the Financial Statements - continued |
| for the Period 1 January 2022 to 31 March 2023 |
| 2. | ACCOUNTING POLICIES - continued |
| Financial instruments |
| Financial assets and financial liabilities are recognised when the company becomes a party to the contractual provisions of the instrument. 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 company after deducting all of its liabilities. |
| (i) Financial assets and liabilities |
| All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Financial assets and liabilities are only offset in the statement of financial position when, and only when there exists a legally enforceable right to set off the recognised amounts and the company intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously. |
| Debt instruments which meet the following conditions are subsequently measured at amortised cost using the effective interest method: |
| (a) The contractual return to the holder is (i) a fixed amount; (ii) a positive fixed rate or a positive variable rate; or (iii) a combination of a positive or a negative fixed rate and a positive variable rate. |
| (b) The contract may provide for repayments of the principal or the return to the holder (but not both) to be linked to a single relevant observable index of general price inflation of the currency in which the debt instrument is denominated, provided such links are not leveraged. |
| (c) The contract may provide for a determinable variation of the return to the holder during the life of the instrument, provided that (i) the new rate satisfies condition (a) and the variation is not contingent on future events other than (1) a change of a contractual variable rate; (2) to protect the holder against credit deterioration of the issuer; (3) changes in levies applied by a central bank or arising from changes in relevant taxation or law; or (ii) the new rate is a market rate of interest and satisfies condition (a). |
| (d) There is no contractual provision that could, by its terms, result in the holder losing the principal amount or any interest attributable to the current period or prior periods. |
| (e) Contractual provisions that permit the issuer to prepay a debt instrument or permit the holder to put it back to the issuer before maturity are not contingent on future events, other than to protect the holder against the credit deterioration of the issuer or a change in control of the issuer, or to protect the holder or issuer against changes in levies applied by a central bank or arising from changes in relevant taxation or law. |
| (f) Contractual provisions may permit the extension of the term of the debt instrument, provided that the return to the holder and any other contractual provisions applicable during the extended term satisfy the conditions of paragraphs (a) to (c). |
| Debt instruments that are classified as payable or receivable within one year on initial recognition and which meet the above conditions are measured at the undiscounted amount of the cash or other consideration expected to be paid or received, net of impairment. With the exception of some hedging instruments, other debt instruments not meeting these conditions are measured at fair value through profit or loss. Commitments to make and receive loans which meet the conditions mentioned above are measured at cost (which may be nil) less impairment. |
| Financial assets are derecognised when and only when (a) the contractual rights to the cash flows from the financial asset expire or are settled, (b) the company transfers to another party substantially all of the risks and rewards of ownership of the financial asset, or (c) the company, despite having retained some, but not all, significant risks and rewards of ownership, has transferred control of the asset to another party. Financial liabilities are derecognised only when the obligation specified in the contract is discharged, cancelled or expires. |
| Taxation |
| Taxation for the period comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
| Current or deferred taxation assets and liabilities are not discounted. |
| Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
| Lux Group Holdings Ltd (Registered number: 11707773) |
| Notes to the Financial Statements - continued |
| for the Period 1 January 2022 to 31 March 2023 |
| 2. | ACCOUNTING POLICIES - continued |
| Deferred tax |
| Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the Statement of financial position 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 balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date. |
| Foreign currencies |
| Foreign currency transactions are translated into the functional currency using the spot exchange the dates of the rates at transactions. |
| At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined. |
| Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss. |
| Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Statement of comprehensive income within 'interest payable and expenses'. All other foreign exchange gains and losses are presented in Statement of comprehensive income within 'administration expenses'. |
| Pension costs and other post-retirement benefits |
| 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 Statement of financial position. The assets of the plan are held separately from the Company in independently administered funds. |
| Going concern |
| The financial statements have been prepared on a going concern basis which assumes that the Company will continue in operational existence for at least twelve months from the date of approval of the financial statements. |
| The Company had net liabilities of £36,106,091 for the financial period ended 31 March 2023 (2021: net liabilities £11,961,765. The Company remains dependent on te continuing support of its stakeholders and shareholders to meet payments as they fall due. |
| Exceptional items |
| Exceptional items are transactions that fall within the ordinary activities of the Company but are presented separately due to their size or incidence. |
| Lux Group Holdings Ltd (Registered number: 11707773) |
| Notes to the Financial Statements - continued |
| for the Period 1 January 2022 to 31 March 2023 |
| 2. | ACCOUNTING POLICIES - continued |
| Hire purchase and leasing commitments |
| Operating leases: |
| Rentals paid under operating leases are charged to the profit or loss on a straight line basis over the lease term. |
| Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset. |
| Finance leases: |
| Assets obtained under hire purchase contracts and finance leases are capitalised as tangible fixed assets. Assets acquired by finance leases are depreciated over the shorter of the lease term and their useful lives. Assets acquired by hire purchase are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the company. Obligations under such agreements are included in creditors net of te finance charge allocated to future periods. the finance element of the rental payment is charged to profit or loss so as to produce a constant periodic rate of charge on the net obligation outstanding in each period. |
| 3. | TURNOVER |
| The turnover and loss before taxation are attributable to the one principal activity of the company. |
| An analysis of turnover by geographical market is given below: |
| Period |
| 1.1.22 |
| to | Year Ended |
| 31.3.23 | 31.12.21 |
| as restated |
| £ | £ |
| United Kingdom |
| United States of America |
| Rest of World | 2,020,062 | - |
| Warranty provision | (67,521 | ) | (60,000 | ) |
| 4. | OTHER OPERATING INCOME |
| Period |
| 1.1.22 |
| to | Year Ended |
| 31.3.23 | 31.12.21 |
| as restated |
| £ | £ |
| Government grants |
| Lux Group Holdings Ltd (Registered number: 11707773) |
| Notes to the Financial Statements - continued |
| for the Period 1 January 2022 to 31 March 2023 |
| 5. | EMPLOYEES AND DIRECTORS |
| Period |
| 1.1.22 |
| to | Year Ended |
| 31.3.23 | 31.12.21 |
| as restated |
| £ | £ |
| Wages and salaries |
| Social security costs |
| Other pension costs |
| The average number of employees during the period was as follows: |
| Period |
| 1.1.22 |
| to | Year Ended |
| 31.3.23 | 31.12.21 |
| as restated |
| Sales | 37 | 22 |
| Manufacturing | 92 | 98 |
| Installation | 12 | 10 |
| Transport | 6 | 6 |
| Administration | 25 | 39 |
| Period |
| 1.1.22 |
| to | Year Ended |
| 31.3.23 | 31.12.21 |
| as restated |
| £ | £ |
| Directors' remuneration |
| 6. | OPERATING LOSS |
| The operating loss is stated after charging/(crediting): |
| Period |
| 1.1.22 |
| to | Year Ended |
| 31.3.23 | 31.12.21 |
| as restated |
| £ | £ |
| Depreciation - owned assets |
| Loss/(profit) on disposal of fixed assets | ( |
) |
| Goodwill amortisation |
| Trademarks amortisation |
| Auditors' remuneration |
| Foreign exchange differences |
| Lux Group Holdings Ltd (Registered number: 11707773) |
| Notes to the Financial Statements - continued |
| for the Period 1 January 2022 to 31 March 2023 |
| 7. | INTEREST PAYABLE AND SIMILAR EXPENSES |
| Period |
| 1.1.22 |
| to | Year Ended |
| 31.3.23 | 31.12.21 |
| as restated |
| £ | £ |
| Bank interest |
| Other interest |
| Hire purchase |
| 8. | TAXATION |
| Analysis of the tax credit |
| The tax credit on the loss for the period was as follows: |
| Period |
| 1.1.22 |
| to | Year Ended |
| 31.3.23 | 31.12.21 |
| as restated |
| £ | £ |
| Current tax: |
| UK corporation tax | ( |
) |
| Tax on loss | ( |
) |
| Reconciliation of total tax credit included in profit and loss |
| The tax assessed for the period is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
| Period |
| 1.1.22 |
| to | Year Ended |
| 31.3.23 | 31.12.21 |
| as restated |
| £ | £ |
| Loss before tax | ( |
) | ( |
) |
| Loss multiplied by the standard rate of corporation tax in the UK of |
( |
) | ( |
) |
| Effects of: |
| Expenses not deductible for tax purposes |
| Depreciation in excess of capital allowances |
| Unrelieved tax losses carried forward | 3,557,716 | 2,116,109 |
| Research and development tax credit | - | (405,843 | ) |
| Total tax credit | - | (405,843 | ) |
| A deferred tax asset of £9,322,630 (2021: £4,176,227) has not been recognised in the financial statements due to expected future losses. |
| Lux Group Holdings Ltd (Registered number: 11707773) |
| Notes to the Financial Statements - continued |
| for the Period 1 January 2022 to 31 March 2023 |
| 9. | PRIOR YEAR ADJUSTMENT |
| The accounts have been restated to show items originally disclosed, in year ended 31 December 2021, as Supplier Funding less than one year of £1,911,006 and more than one year of £819,533 as Hire Purchase contracts. There was no effect on the corporation tax charge. |
| A further restatement of £138,800 has been made in relation to an underpayment of VAT. This has increased the VAT liability and reduced retained earnings by £138,800. There is no effect on the corporation tax charge. |
| A further restatement of £60,000 has been made to recognise a warranty provision. This has increased the warranty provision and reduced retained earnings by £60,000. There is no effect on the corporation tax charge. |
| 10. | EXCEPTIONAL ITEMS |
| Exceptional items are made up of the following items: |
| Net exceptional costs of £291,540 have been incurred following the flood at the nearly completed showroom in South Kensington and other costs following the reorganisation of the company. |
| Overpayments of VAT of £979,385 were identified in the year following a VAT investigation. |
| Corrections to the HP and loan balances of £724,610 have been made. |
| Incorrectly recognised customer deposits of £116,719 have been adjusted. |
| These exceptional costs are disclosed separately to provide further understanding of the financial performance of the Company |
| 11. | INTANGIBLE FIXED ASSETS |
| Goodwill | Trademarks | Totals |
| £ | £ | £ |
| COST |
| At 1 January 2022 |
| and 31 March 2023 |
| AMORTISATION |
| At 1 January 2022 |
| Amortisation for period |
| At 31 March 2023 |
| NET BOOK VALUE |
| At 31 March 2023 |
| At 31 December 2021 |
| Lux Group Holdings Ltd (Registered number: 11707773) |
| Notes to the Financial Statements - continued |
| for the Period 1 January 2022 to 31 March 2023 |
| 12. | TANGIBLE FIXED ASSETS |
| Factory, |
| Long | plant & | Showroom | Computer |
| leasehold | equipment | displays | equipment | Totals |
| £ | £ | £ | £ | £ |
| COST |
| At 1 January 2022 |
| Additions |
| Disposals | ( |
) | ( |
) | ( |
) | ( |
) |
| At 31 March 2023 |
| DEPRECIATION |
| At 1 January 2022 |
| Charge for period |
| Eliminated on disposal | ( |
) | ( |
) | ( |
) |
| At 31 March 2023 |
| NET BOOK VALUE |
| At 31 March 2023 |
| At 31 December 2021 |
| Assets held under HP had a net book value of £152,059 as at 31 March 2023 (2021: £337,202). |
| 13. | FIXED ASSET INVESTMENTS |
| Shares in |
| group |
| undertaking |
| £ |
| COST |
| At 1 January 2022 |
| and 31 March 2023 |
| NET BOOK VALUE |
| At 31 March 2023 |
| At 31 December 2021 |
| The company's investments at the Balance Sheet date in the share capital of companies include the following: |
| Registered office: 197-205 Brompton Road, Knightsbridge, London, SW3 1LB, United Kingdom |
| Nature of business: |
| % |
| Class of shares: | holding |
| 31.3.23 | 31.12.21 |
| £ | £ |
| Aggregate capital and reserves |
| Lux Group Holdings Ltd (Registered number: 11707773) |
| Notes to the Financial Statements - continued |
| for the Period 1 January 2022 to 31 March 2023 |
| 13. | FIXED ASSET INVESTMENTS - continued |
| Registered office: The Hopton Workshop, Hopton Road, Devizes, United Kingdom, SN10 2EU |
| Nature of business: |
| % |
| Class of shares: | holding |
| 31.3.23 | 31.12.21 |
| £ | £ |
| Aggregate capital and reserves |
| 14. | STOCKS |
| 31.3.23 | 31.12.21 |
| as restated |
| £ | £ |
| Stocks |
| Raw materials |
| Work in progress on long term |
| contracts | 1,061,884 | 1,238,470 |
| The net replacement cost of stocks is not expected to be materially different from that shown above. |
| 15. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
| 31.3.23 | 31.12.21 |
| as restated |
| £ | £ |
| Trade debtors |
| Amounts owed by group undertakings |
| Other debtors |
| Tax |
| VAT |
| Prepayments |
| The debtors have been reviewed by the directors for indicators of impairment. An impairment allowance of £835,136 (2021: £570,132) was recognised against trade debtors. |
| Other debtors relate to a specific customer contract which is ongoing at year end. |
| Lux Group Holdings Ltd (Registered number: 11707773) |
| Notes to the Financial Statements - continued |
| for the Period 1 January 2022 to 31 March 2023 |
| 16. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
| 31.3.23 | 31.12.21 |
| as restated |
| £ | £ |
| Bank loans and overdrafts (see note 18) |
| Hire purchase contracts (see note 19) |
| Trade creditors |
| Amounts owed to group undertakings |
| Social security and other taxes |
| VAT | - | 1,387,859 |
| Directors' current accounts | 5,583,085 | 4,087,348 |
| Accruals and deferred income |
| The balance owing to the group undertakings is interest free, unsecured and repayable on demand. The group company will not seek repayments of amounts due to it from the Company in such a manner as to jeopardise the ability of the Company to continue to trade. |
| 17. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
| 31.3.23 | 31.12.21 |
| as restated |
| £ | £ |
| Bank loans (see note 18) |
| Hire purchase contracts (see note 19) |
| 18. | LOANS |
| An analysis of the maturity of loans is given below: |
| 31.3.23 | 31.12.21 |
| as restated |
| £ | £ |
| Amounts falling due within one year or on demand: |
| Bank loans |
| Amounts falling due between two and five years: |
| Bank loans - 2-5 years |
| Lux Group Holdings Ltd (Registered number: 11707773) |
| Notes to the Financial Statements - continued |
| for the Period 1 January 2022 to 31 March 2023 |
| 19. | LEASING AGREEMENTS |
| Minimum lease payments fall due as follows: |
| Hire purchase contracts |
| 31.3.23 | 31.12.21 |
| as restated |
| £ | £ |
| Net obligations repayable: |
| Within one year |
| Between one and five years |
| Non-cancellable operating | leases |
| 31.3.23 | 31.12.21 |
| as restated |
| £ | £ |
| Within one year |
| Between one and five years |
| In more than five years |
| 20. | SECURED DEBTS |
| The following secured debts are included within creditors: |
| 31.3.23 | 31.12.21 |
| as restated |
| £ | £ |
| Bank loans |
| Hire purchase contracts | 917,969 | 2,857,333 |
| The HP loans are secured on the assets that have been financed. |
| Lux Group Holdings Ltd (Registered number: 11707773) |
| Notes to the Financial Statements - continued |
| for the Period 1 January 2022 to 31 March 2023 |
| 21. | FINANCIAL INSTRUMENTS |
| 2024 | 2023 |
| £ | £ |
| FINANCIAL ASSETS |
| Financial assets measured at fair value through profit and loss | 1,245,461 | 1,012,950 |
| Financial assets that are debt instruments measured at amortised cost | 13,072,062 | 2,220,104 |
| 14,317,523 | 3,233,054 |
| FINANCIAL LIABILITIES |
| Financial liabilities measured at amortised cost | (49,139,297 | ) | (25,255,083 | ) |
| Financial assets measured at amortised cost comprise trade debtors, amounts owed by group undertakings, other debtors and accrued income. |
| Financial liabilities measured at amortised cost comprise bank and other loans (including finance leases), overdrafts, trade creditors, amounts owed to group undertakings, other creditors and accruals. |
| 22. | PROVISIONS FOR LIABILITIES |
| 31.3.23 | 31.12.21 |
| as restated |
| £ | £ |
| Other provisions |
| Warranty provision | 127,521 | 60,000 |
| Goods (other than appliances and any other items not manufactured by the company) are warrantied for 10 years from the date of delivery. |
| 23. | CALLED UP SHARE CAPITAL |
| Allotted, issued and fully paid: |
| Number: | Class: | Nominal | 31.3.23 | 31.12.21 |
| value: | as restated |
| £ | £ |
| Ordinary | £1 | 13,689,243 | 13,689,243 |
| There is a single class of equity shares. There are no restrictions on the distributions of dividends and the repayment of capital, subject to the availability of distributable reserves. All shares carry equal voting rights and rank for dividends to the extent to which the total amount on each share is paid up. |
| Lux Group Holdings Ltd (Registered number: 11707773) |
| Notes to the Financial Statements - continued |
| for the Period 1 January 2022 to 31 March 2023 |
| 24. | RESERVES |
| Retained |
| earnings |
| £ |
| At 1 January 2022 | ( |
) |
| Prior year adjustment | ( |
) |
| ( |
) |
| Deficit for the period | ( |
) |
| At 31 March 2023 | ( |
) |
| 25. | PENSION COMMITMENTS |
| The company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £531,757 (2021: £380,777). Contributions totalling £28,450 (2021: £111,055) were payable to the fund at the reporting date and are included in accruals. |
| 26. | RELATED PARTY DISCLOSURES |
| The company bought furniture products during the year from WJ White Furniture Limited, a company in which R Shemesh is a director and shareholder, to the value of £3,111,368 (2021: £1,719,362). At 31 March 2023 the balance outstanding to WJ White Furniture Limited from Lux Group Holdings Limited was £949,050 (2021: £nil). |
| Lux Group Holdings Limited at 31 March 2023 owed £23,381,088 (2021: £4,087,348) to investors. |
| No compensation was paid to key management personnel during the period. However during the year ended 31 December 2021 a total of key management personnel compensation of £ |
| These individuals are deemed key management personnel as a result of being senior decision makers within the organisation. |
| 27. | POST BALANCE SHEET EVENTS |
| The debtor balance of £12,443,036 owed by group undertakings was not tested for recoverability in the audit as it was assigned to Lux Group Holdings LLC after the year end and subsequently netted off against the creditor balance held with that company. |
| 28. | ULTIMATE CONTROLLING PARTY |
| The Company's immediate parent Company is Sapphire 700 Limited registered in the United Kingdom. The Company's ultimate parent Company is Sapphire Cabinetry (UK) LLC registered in the United States of America. The results are consolidated into the results of Sapphire Cabinetry (UK) LLC, the smallest and largest group company to prepare consolidated accounts. As of date of signing of these financial statements these consolidated accounts are not publicly available. These accounts present information about the company as an individual undertaking. |
| 29. | CONTINGENT LIABILITIES |
| At the reporting date, the company was subject to various legal claims. Based on legal advice, the directors do not consider it probable that these claims will result in a material liability. Accordingly no provision has been recognised. |
| The company is currently responding to multiple claims relating to alleged contractual disputes, service agreements and commercial matters. These claims are at various stages, with some subject to mediation while others not yet progressed to formal legal proceedings. The company strongly refutes the claims. Given the uncertainty of the outcomes and potential financial impact, no provisions have been made. |
| Lux Group Holdings Ltd (Registered number: 11707773) |
| Notes to the Financial Statements - continued |
| for the Period 1 January 2022 to 31 March 2023 |
| 30. | EVENTS OCCURED DURING THE PRIOR YEAR |
| On February 4th 2021 an accident by a tradesman working for the Landlord at South Kensington Estate caused a massive flooding into the nearly completed showroom. As a result tens of thousand of gallons poured in to the premises causing significant damages to the premises and contents. Lux Group Holdings Limited has to date not received any remuneration from SKE or any insurance company and has borne all costs of flood mitigation and restoration. The parties remain in the midst of negotiations to settle the claim and management expects a successful outcome. There is no guarantee that the claim will be settled successfully via the current mediation process and litigation might ensue. |