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Registered number:
FOR THE YEAR ENDED 31 DECEMBER 2024
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LINDSTROM LIMITED
COMPANY INFORMATION
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LINDSTROM LIMITED
CONTENTS
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LINDSTROM LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
The Directors present their Strategic Report of Lindström Limited (the "Company") for the year ended 31 December 2024.
Principal activity Lindström Limited principal activity is the provision of textile rental service, offering workwear, industrial wipers and absorbent mats. The Company is part of Lindström Group Oy, one of the leading textile service companies, headquartered in Helsinki and operating in 24 countries across Europe and Asia. At the core of our business is our commitment to care for the people and our planet, based on the sustainable, circular-economy business model. Our conceptualised operations ensure that we offer the same reliable and sustainable textile rental services to all our customers, while meeting the specific hygiene and safety requirements of different industries. By 2025, our quest is to become a forerunner enabling our customers to become more sustainable with easy-to-use textile services, offered with passion and a human touch.
Greater success in selling our services to new customers has led to an increased revenue and an enlarged pipeline of revenue for the coming year. Furthermore, in November we acquired the industrial workwear contracts and associated textiles from Micronclean Ltd.
Although business activity is normal.
The Company uses financial instruments such as a cash pool, debtors and creditors in order to raise finance. These instruments expose the Company to financial risks which are detailed below: i) Price risk Wherever possible we look to pass on any increases in costs, when an increase can be seen, consideration to bulk buying at favourable prices is considered. ii) Credit risk The principal credit risk for the Company arises from its trade debtors. To ensure this risk is managed effectively the company set limits for customers based on a combination of payment history and third-party credit reference. Credit limits are reviewed by the company on a regular basis in conjunction with debt aging and collection history. iii) Liquidity risk The Company seeks to manage financial risk by ensuring sufficient liquidity is available to meet its foreseeable needs. iv) Foreign exchange risk The Company's risk to foreign exchange fluctuations arises from various purchases. Where appropriate the Company will enter into foreign exchange currency contracts to mitigate this risk or bulk buy when rates are favourable.
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LINDSTROM LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
The Directors monitor the Company’s progress against strategic objectives and the financial performance of the Company’s operations on a regular basis. We consider that our key financial performance indicators are those that demonstrate the financial strength of the Company, these being organic growth in turnover and operating profit:
By 2030, our vision is to become a forerunner in enabling our customers to become more sustainable with easy-to-use textile services, offered with passion and a human touch. We seek to deepen our understanding of the industries we serve. A strong focus on our customers’ industries also enables us to share our extensive industry knowledge of global and local markets with our customers. Our customers will become more sustainable as we work towards carbon-neutral textile services and recycle 100% of our textile waste. The ease of use relies on us digitalising our services for improved transparency, optimised textile volumes, and self-service for our customers.
This report was approved by the board and signed on its behalf.
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LINDSTROM LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
The directors present their report and the financial statements for the year ended 31 December 2024.
The directors are responsible for preparing the Strategic report, the Directors' report and the financial statements in accordance with applicable law and regulations.
In preparing these financial statements, the directors are required to:
∙select suitable accounting policies for the Company's financial statements and then apply them consistently;
∙make judgments and accounting estimates that are reasonable and prudent;
∙state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The profit for the year, after taxation, amounted to £224,655 (2023 - £557,895).
No dividends have been declared in the year.
The directors who served during the year were:
Details covering principal risks and uncertainties (including financial instruments), future developments and financial key performance indicators (KPIs) are included in the Strategic report.
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LINDSTROM LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
The auditor, MHA, previously traded through the legal entity MacIntyre Hudson LLP. In response to regulatory changes, MacIntyre Hudson LLP ceased to hold an audit registration with the engagement transitioning to MHA Audit Services LLP.
MHA will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board and signed on its behalf.
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LINDSTROM LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF LINDSTROM LIMITED
We have audited the financial statements of Lindstrom Limited (the 'Company') for the year ended 31 December 2024, which comprise the Statement of comprehensive income, the Balance sheet, the Statement of changes in equity and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
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LINDSTROM LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF LINDSTROM LIMITED (CONTINUED)
The other information comprises the information included in the Annual Report other than the financial statements and our Auditor's report thereon. The directors are responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Strategic report and the Directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the Strategic report and the Directors' report have been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic report or the Directors' report.
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LINDSTROM LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF LINDSTROM LIMITED (CONTINUED)
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The specific procedures for this engagement and the extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
·Enquiry of management and those charged with governance around actual and potential litigation and claims;
· Enquiry of entity staff in tax and compliance functions to identify any instance of non-compliance with laws and regulations; · Performing audit work over the risk of management override of controls, including testing of journal entries and other adjustment for appropriateness and reviewing accounting estimates for bias. · Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
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.
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LINDSTROM LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF LINDSTROM LIMITED (CONTINUED)
This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an Auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.
Peterborough, United Kingdom Date: MHA is the trading name of MHA Audit Services LLP, a limited liability partnership in England and Wales (registered number OC455542)
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LINDSTROM LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
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LINDSTROM LIMITED
REGISTERED NUMBER: 04191274
BALANCE SHEET
AS AT 31 DECEMBER 2024
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 12 to 31 form part of these financial statements.
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LINDSTROM LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
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LINDSTROM LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Lindstrom Limited ("the Company") is a private limited company limited by shares, incorporated in England and Wales under the Companies Act.
The registered number and address of the registered office are given in the Company information. The functional and presentational currency of the Group and Company is pounds sterling (£) and rounded to the nearest whole pound.
2.Accounting policies
The financial statements have been prepared under the historical cost convention unless otherwise specified 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 preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).
The following principal accounting policies have been applied:
The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
∙the requirements of Section 7 Statement of Cash Flows;
∙the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
∙the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
∙the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A;
∙the requirements of Section 33 Related Party Disclosures paragraph 33.7.
This information is included in the consolidated financial statements of Lindstrom Oy as at 31 December 2024 and these financial statements may be obtained from the Trade Register kept by the National Board of Patents and Registration, Arkadiankatu, 6A, Helsinki, Finland.
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LINDSTROM LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
The financial statements have been prepared on a going concern basis. The Directors have considered all relevant information, including the annual budget, forecast future cash flows, availability of Group support and the impact of subsequent events in making their assessment.
Although all considerations have an impact on the assessment, the Directors consider that the continuance of Group support bears the most significance. This is due to Lindstrom Limited relying on its parent company for financial support, in the form of an operating bank account and operational support. The directors have received a signed confirmation from Lindstrom Oy that they will continue to support the company for at least the period of twelve months from the date of approval of the financial statements. On the basis that the directors have received this signed commitment to ongoing support, and having given due regard to the financial resources available to the parent company to provide such support, the directors consider that the going concern basis of preparation is appropriate.
The Company provides an industrial laundry service that includes regular collection and delivery, along with the subsequent rental of workwear and wipers. Revenue is recognised over time, as customers simultaneously receive the benefits of the goods and services provided.
Revenue is recognised on a straight-line basis over the contract period, provided all of the following conditions are met: - The Company has fulfilled its defined performance obligations as outlined in the contract; - The goods are made available for use by the customer; - The amount of consideration is measurable. Revenue is recorded exclusive of VAT.
Functional and presentation currency
Transactions and balances
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LINDSTROM LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
Royalty revenue is recognised on an accruals basis in accordance with the substance of the relevant agreement, provided that it is probable that the economic benefits will flow to the Company and the amount of revenue can be measured reliably. Royalties determined on a time basis are recognised on a straight-line basis over the period of the agreement. Royalty arrangements that are based on production, sales and other measures are recognised by reference to the underlying arrangement. This is included in other operating income.
Items purchased for rental are expensed directly to the Statement of Comprehensive income. The goods are purchased with an intent to rent to the customer for a period of time and have minimal individual value.
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 other creditors as a liability in the Balance sheet. The assets of the plan are held separately from the Company in independently administered funds.
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LINDSTROM LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
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LINDSTROM LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
Goodwill
Other intangible assets
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.
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.
The estimated useful lives range as follows:
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.
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LINDSTROM LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
The Company holds assets under construction which are not depreciated until brought into use.
Rentals paid under operating leases are charged to 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.
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LINDSTROM LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 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.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include trade and other receivables, cash and bank balances, are initially measured at their transaction price including 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.
Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.
Impairment of financial assets
Financial assets are assessed for indicators of impairment at each reporting date.
Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.
If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.
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LINDSTROM LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
Financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instruments any contract that evidences a residual interest in the assets of the Company after the deduction of all its liabilities.
Basic financial liabilities, which include trade and other payables, bank loans and other loans are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future receipts 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.
Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.
The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, bank overdrafts, amounts owed to and by group undertakings.
Derecognition of financial instruments
Derecognition of financial assets
Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Company transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Company will continue to recognise the value of the portion of the risks and rewards retained.
Derecognition of financial liabilities
Financial liabilities are derecognised when the Company's contractual obligations expire or are discharged or cancelled.
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LINDSTROM LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Estimates and judgments 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. a) Critical judgments in applying accounting policies i) Treatment of workwear and wipers The Company has evaluated the accounting treatment of workwear and wipers used in the rental business and determined that these items are expensed directly to the statement of comprehensive income rather than capitalised. This judgement is based on the following considerations: • The provision of workwear under rental arrangements is considered ancillary to the principal service offering—namely, the professional laundry and delivery service—rather than constituting a standalone revenue-generating activity. • The workwear is typically of low individual value and subject to frequent replacement due to wear, hygiene considerations, and customer-specific branding requirements, which collectively limit its useful life and recoverability. Accordingly, the cost of workwear and wipers is recognised as an cost of sale in the period incurred.. b) Key accounting estimates and assumptions The Company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have the most significant potential impact upon the carrying values of assets and liabilities within the next financial year are as follows: i) Useful economic lives of tangible fixed assets The useful economic lives used by the Company in respect of tangible fixed assets are set out in the accounting policies. These estimates are the best estimate based on past experience and expected performance and are regularly reviewed to ensure they remain appropriate. The net book value of tangible fixed assets as at 31 December 2024 was £7,948,613 (2023: £8,982,362) after a depreciation charge in the period of £1,324,003 (2023: £1,371,525).
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LINDSTROM LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
3.Judgments in applying accounting policies (continued)
The useful economic life used by the Company in respect of Goodwill is set out in the accounting policies. This estimation is the best estimate based on past experience and expected performance and are regularly reviewed to ensure they remain appropriate. The net book value of Goodwill as at 31 December 2024 was £3,845,976 (2023: £39,440) after a amortisation charge in the period of £134,598 (2023: £87,467). iii) Goodwill Impairment The Company tests goodwill for impairment annually, or more frequently if events or changes in circumstances indicate that the carrying value may not be recoverable. The impairment assessment requires significant management judgement and estimation. iv) Dilapidation provision A provision is recognised for the present value of likely dilapidation costs arising at the end of lease terms, for restoring leased premises back to its original condition. Management determine this provision by reference to historic experience, management experts and other indicators. At 31 December 2024, a provision of £410,180 (2023: £276,521) is recognised in the financial statements.
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LINDSTROM LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Page 22
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LINDSTROM LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Page 23
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LINDSTROM LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Page 24
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LINDSTROM LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
12.Taxation (continued)
Page 25
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LINDSTROM LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Page 26
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