REGISTERED NUMBER: 12184635 (England and Wales)

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

FOR

LWM TRADED SERVICES LTD

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3

DIRECTORS:

Ms K A Dove

Cllr A C Farrell

S Fletcher

Ms A Felton

SECRETARY:

I K Gardner

REGISTERED OFFICE:

District Council House

Frog Lane

Lichfield

Staffordshire

WS13 6YY

REGISTERED NUMBER:

12184635 (England and Wales)

AUDITORS:

HB&O Ltd

Chartered Accountants and Statutory Auditor

Highdown House

11 Highdown Road

Leamington Spa

Warwickshire

CV31 1XT

FIXED ASSETS

Tangible assets

4

155,523

127,770

CURRENT ASSETS

Stocks

5

11,374

7,748

Debtors

6

395,027

368,495

Cash at bank

7

1,575,043

1,548,281

1,981,444

1,924,524

CREDITORS

Amounts falling due within one year

8

1,727,695

1,799,382

NET CURRENT ASSETS

253,749

125,142

TOTAL ASSETS LESS CURRENT LIABILITIES

409,272

252,912

CREDITORS

Amounts falling due after more than one year

9

9,227

11,074

NET ASSETS

400,045

241,838

CAPITAL AND RESERVES

Called up share capital

11

225,001

225,001

Retained earnings

175,044

16,837

SHAREHOLDERS' FUNDS

400,045

241,838

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 12 August 2025 and were signed on its behalf by:

S Fletcher - Director

1.	STATUTORY INFORMATION

LWM Traded Services Ltd is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

The accounts have been prepared in accordance with applicable accounting standards. The principal accounting policies adopted in the preparation of the financial statements are set out below and have remained unchanged from the previous year.

Going concern basis

The directors believe that the company is experiencing good levels of sales growth and profitability, and that it is well placed to manage its business risks successfully. Accordingly, they have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus they continue to adopt the going concern basis of accounting in preparing the financial statements.

Turnover

Turnover comprises the value of sales (net of value added tax and trade discounts) of goods and services provided in the normal course of business. Revenue is recognised in respect of service contracts when the company obtains the right to consideration.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off the cost less estimated residual value of each asset over its estimated useful life.

Plant & machinery

-

15% on reducing balance

Motor vehicles

-

25% on reducing balance

Computer equipment

-

15% on reducing balance

Tangible fixed assets, other than freehold land, are stated at cost or valuation less depreciation and any provision for impairment.

Government grants

Government grants received are credited to deferred income. Grants towards relevant expenditure are released to the income statement as the related expenditure is incurred.

Stocks

Stocks are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow moving items. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads.

Taxation

Taxation for the year 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.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Assets on finance lease and hire purchase

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Assets held under finance lease or hire purchase contracts i.e. those contracts where substantially all the risks and rewards of ownership have passed to the company, are included in the appropriate category of tangible fixed assets and depreciated over the shorter of the lease term and their estimated expected useful lives.

Future obligations under such contracts are included in creditors net of the finance charge allocated to future periods.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Operating lease rentals

Rentals payable under operating leases are charged against income on a straight line basis over the lease term.

Finance lease and hire purchase charges

The finance element of the rental payment is charged to the income statement on a straight line basis.

Debtors and creditors receivable / payable within one year

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account in the other administrative expenses.

Cash and cash equivalents

Cash at bank and in hand are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised costs using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts at a discounted at a market rate of interest. Financial assets are classified as receivable within one year are not amortised.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in the profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date. Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimate future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the assets original effective interest rate. The impairment loss is recognised in profit or loss. If there is a decrease in the impairment loss arising from an event accruing after impairment was recognized, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in the profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has been transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangement 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.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised. Debt instruments are subsequently carried at amortised costs using the effective interest method. Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Other financial liabilities Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge. Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designed as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instrument are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 184 (2024 - 158 ) .

4.	TANGIBLE FIXED ASSETS

Plant &

Motor

Computer

machinery

vehicles

equipment

Totals

£

£

£

£

COST

At 1 April 2024

33,727

14,295

93,495

141,517

Additions

10,514

-

39,113

49,627

At 31 March 2025

44,241

14,295

132,608

191,144

DEPRECIATION

At 1 April 2024

3,136

2,383

8,228

13,747

Charge for year

5,363

2,978

13,533

21,874

At 31 March 2025

8,499

5,361

21,761

35,621

NET BOOK VALUE

At 31 March 2025

35,742

8,934

110,847

155,523

At 31 March 2024

30,591

11,912

85,267

127,770

The net book value of Motor Vehicles includes £8,934 (2024: £ 11,912) in respect of assets leased under finance leases or hire purchase contracts.

5.

STOCKS

2025

2024

£

£

Stocks

11,374

7,748

6.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2025

2024

£

£

Trade debtors

198,075

294,195

Other debtors

1

1

Prepayments & Accrued income

196,951

74,299

395,027

368,495

7.	CASH AT BANK

2025

2024

£

£

Cash at bank

1,575,043

1,548,281

Included in cash at bank is an amount of £45,748 (2024: £nil) in respect of client funds held by the company on behalf of third parties.

8.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2025

2024

£

£

Hire purchase contracts

1,848

1,848

Trade creditors

356,359

431,940

Tax

4,579

-

Social security and other taxes

49,997

31,544

VAT

254,900

326,251

Other creditors

7,143

818

Pensions Payable

21,927

6,049

Client account

45,340

-

DFG Income in Advance

63,726

648,363

Accruals and deferred income

921,876

352,569

1,727,695

1,799,382

9.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2025

2024

£

£

Hire purchase contracts

9,227

11,074

10.	SECURED DEBTS

The following secured debts are included within creditors:

2025

2024

£

£

Hire purchase contracts

11,075

12,922

11.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2025

2024

value:

£

£

225,001

Ordinary shares

£1

225,001

225,001

12.	DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Report of the Auditors was unqualified.

Gregg Olner MPhil BA (Hons) FCA (Senior Statutory Auditor)

for and on behalf of HB&O Ltd

13.	PENSION COMMITMENTS

The Company operates a pension scheme in respect of certain employees. The pension charge relating to the pension scheme for the year was £201,775 (2024: £152,976). The amount due to the pension provider at the year end was £21,927 (2024: £6,048).

14.	RELATED PARTY DISCLOSURES

The Company is a wholly owned subsidiary of Lichfield District Council. During the year the Company made net sales of £6,253,382 (2024: £5,369,007) to Lichfield District Council and were charged £666,516 (2024: £670,652) net by them for provision of services. The net sales of £6,253,382 (2024: £5,369,007) includes DFG funding which is released into sales when relevant costs are incurred.

The balance on the DFG fund is disclosed in note 8 to the financial statements.

At the year end the amount due to the Company from Lichfield District Council was £198,407 (2024: £266,724) of which £122,062 (2024: £262,834) is included in trade debtors and £76,345 (2024: £3,890) in prepayments. The amount owed to Lichfield District Council by the Company was £362,852 (2024: £359,655) of which £84,802 (2024: £73,655) is included in trade creditors and £278,049 (2024: £286,000) in accruals. These amounts are included in note 6 and note 8 respectively.

Lichfield District Council holds a floating charge dated 7 August 2020 over all the property and undertaking of LWM Traded Services Ltd. Unless permitted in the Finance Documents, the Company shall not create or permit to subsist any security interest on any of the charged assets without the prior consent of the Council.