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Registered number: 01991166










Lyons & Annoot Limited










Annual report and financial statements

For the year ended 31 December 2024

 
Lyons & Annoot Limited
 

Company Information


Directors
M Morelli 
D R P Mills 
M J Lyons 
S Grierson 




Registered number
01991166



Registered office
28 Telegraph Hill Industrial Estate
Laundry Road

Minster

Kent

CT12 4HY




Independent auditors
Kreston Reeves LLP
Chartered Accountants & Statutory Auditor

37 St Margaret's Street

Canterbury

Kent

CT1 2TU





 
Lyons & Annoot Limited
 

Contents



Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditors' report
5 - 8
Statement of income and retained earnings
9
Balance sheet
10
Notes to the financial statements
11 - 21

 
Lyons & Annoot Limited
 

Strategic report
For the year ended 31 December 2024

Introduction
 
The directors' present their strategic report of Lyons & Annoot Limited for the year ended 31 December 2024.

Business review
 
Overall the company has performed well for the 2024 financial year. As ever this is testament to our workforce and the consistent and continuously diligent approach across the board, something that is deeply rooted in our corporate culture through all levels.
There is much to be grateful for as our teams and our people have worked hard to produce excellent work. There has been a strong focus on preparing for the future by investing in people and infrastructure. Professional development is encouraged and supported. This has been ongoing across all fields, developing further competencies and upskilling through additional qualifications and training schemes.
We have extended our multiple award winning ‘Mentor Me’ apprenticeship scheme from Bricklayers, to other roles within our head office. The latter resulted in an additional 4 apprentices who embark on their three year training programme, supported by their in- house mentors and our chosen training provider. It is encouraging to learn since the financial year end, that Lyons & Annoot Limited have been listed in the Top 50 SME Apprenticeship Employers in the Country for the third year in a row, securing 12th place this time and the highest placed construction firm.
At the prestigious Brick Awards ceremony, Lyons & Annoot Limited were awarded the ‘Supreme Award 2024’ for their Norton Folgate project as well as the ‘Urban Regeneration Award 2024’. Being confidently at the absolute forefront of reduced carbon, having been the first UK Construction based SME to register with the Science Based Targets Initiative as well as being among the first 5 Construction firms in the UK to register to the scheme back in 2021, it was fitting to partner with Hybrick to also collect the ‘Innovation Award 2024’.
 
The company financial performance saw an increase in turnover and profit, in turn allowing inward investment.
2024 has been another successful year in the company’s history and we would like to take the opportunity to thank all of our teams, supply chain partners and clients for their support.
The company continues to pursue developments in many areas of its Environmental, Social and Governance goals. Of note during the 2024 year, are the partnerships that have been formed with members of the supply chain that share a similar philosophy toward reducing carbon in the industry. The relationships we have enjoyed for decades with our preferred Supply chain partners, have been galvanised through these synergies as together we have partnered to offer our clients the lowest carbon offerings available in this sector, projecting the greatest carbon savings available on a project by project basis, using our experience, our supply chain partners and our carbon calculators, through a relentless approach on every single tender return.
We remain a continuous member of FIRAS since 2018 and have maintained possession of the Achilles for Building Confidence accreditation which we have carried since the inception of the scheme in 2007 incorporating Safety Schemes in Procurement and the Common Assessment Standard.
We continue to operate with our Fieldview business management tools incorporating photographic capture for our Quality Management systems as well as recording our safety management system requirements through our bespoke forms. We have upgraded our accounts packages, our IT subscriptions, increased the software available to the company for tendering and measurement as we continue to adapt, invest and prepare for the future.  
Page 1

 
Lyons & Annoot Limited
 

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

Principal risks and uncertainties
 
Although there were many positives to 2024, these must be somewhat tempered by the realities of running a day to day business. Overheads in general have been soaring through inflationary pressures and continue to increase each year on an item-by-item basis.
Safety is always at the top of the agenda, sadly we had one reportable accident for the year, an over 3 day injury. Although we have previously enjoyed many years of continuous reportable free accidents, it remains that one item that we wish we could eradicate for good. We continue to strive to achieve zero reportables and with the increase in site activity it is once again testament to the workforce and management teams that they have managed to consistently keep accidents to a minimum, once again representing a positive attitude to safety across the company.
Whilst we have been able to make a huge impact in respect of reduced carbon offerings to our clients, saving monumental amounts of CO2’s through products used in construction, we recorded our first increase in company CO2 usage since 2018, after consistently dropping year on year peaking at a 44% reduction in emissions from 2018 with the target being 50% by 2030. Following an increase in construction activity, we have identified the drivers for this and made some changes to our internal systems to get back on track for 2025 and are looking into initiatives to make further reductions with renewed resolve.
Political risks continue with a new Government and their subsequent hardening of tax burdens applying pressures on employment, the company and its workers alike. There was a notable decrease in tender enquiries for 2024 and price competition in the sector has been fierce sounding warning signals for 2025 and beyond as we brace ourselves for tougher trading conditions while we remain diligent of our contractual liabilities and risks. To help counter these, we are working hard to forge closer relationships with our clients, to proactively engage with them through mutual strategies we can employ to identify the uncertainties and help de-risk projects through genuine collaboration at the early stages.
  
In order to mitigate against all of these ongoing risks, the Directors are focused on continuously investing in the future through recruitment, training, upskilling, and providing suitable systems and resources where possible while working actively with our supply chain partners and clients to collectively provide better outcomes.  

Financial key performance indicators
 
The company employs various financial key performance indicators, from movements in net current assets and shareholders’ funds at an annual level, to overall quarterly management accounts as well as monthly monitoring movements month on month, debtor days and cash flow monitoring.


This report was approved by the board and signed on its behalf.



M Morelli
Director
Date: 19 September 2025
Page 2

 
Lyons & Annoot 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.

Directors' responsibilities statement

The directors are responsible for preparing the Strategic report, the Directors' report and the financial statements in accordance with applicable law and regulations.
 
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period.

 In preparing these financial statements, the directors are required to:


select suitable accounting policies for the Company's financial statements and then apply them consistently;

make judgments and accounting estimates that are reasonable and prudent;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and to enable them to ensure that the financial statements comply with the Companies Act 2006They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Directors

The directors who served during the year were:

M Morelli 
D R P Mills 
M J Lyons 
S Grierson 

Disclosure of information to auditors

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

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.
Page 3

 
Lyons & Annoot Limited
 

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


Auditors

The auditorsKreston Reeves LLPwill 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.
 





M Morelli
Director
Date: 19 September 2025

Page 4

 
Lyons & Annoot Limited
 

 
Independent auditors' report to the members of Lyons & Annoot Limited
 

Opinion


We have audited the financial statements of Lyons & Annoot Limited (the 'Company') for the year ended 31 December 2024, which comprise the Statement of income and retained earnings, the Balance sheet and the related notes, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In our opinion the financial statements:


give a true and fair view of the state of the Company's affairs as at 31 December 2024 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


Basis for opinion


We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.


Conclusions relating to going concern


In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.


Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.


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


Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' report thereon. The directors are responsible for the other information contained within the Annual ReportOur opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.


We have nothing to report in this regard.


Page 5

 
Lyons & Annoot Limited
 

 
Independent auditors' report to the members of Lyons & Annoot Limited (continued)


Opinion on other matters prescribed by the Companies Act 2006
 

In our opinion, based on the work undertaken in the course of the audit:


the information given in the Strategic report and the Directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic report and the Directors' report have been prepared in accordance with applicable legal requirements.


Matters on which we are required to report by exception
 

In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic report or the Directors' report.


We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:


adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


Responsibilities of directors
 

As explained more fully in the Directors' responsibilities statement set out on page 3, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.


In preparing the financial statements, the directors are responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.


Page 6

 
Lyons & Annoot Limited
 

 
Independent auditors' report to the members of Lyons & Annoot Limited (continued)


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 an Auditors' report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.


Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Capability of the audit in detecting irregularities, including fraud
Based on our understanding of the company and industry, and through discussions with the directors and other management (as required by auditing standards), we identified that the principal risks of non-compliance with laws and regulations related to health and safety, anti-bribery and employment law. We considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006, taxation and pension legislation.We communicated the identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit. 
We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to unidentified related party transactions and lack of disclosure, posting inappropriate journal entries to increase revenue or reduce expenditure, management bias in accounting estimates and judgemental areas of the financial statements such as the impairment provision for retention's and margin recognition for long-term contract. Audit procedures performed by the engagement team included:
 
Discussions with management and assessment of known or suspected instances of non-compliance with laws and regulations (including health and safety) and fraud; and
Assessment of identified fraud risk factors; and
Confirmation of related parties with management, and review of transactions throughout the period to identify any previously undisclosed transactions with related parties outside the normal course of business; and
Review of significant and unusual transactions and evaluation of the underlying financial rationale supporting the transactions; and
Identifying and testing journal entries, in particular any manual entries made at the year end for financial statement preparation; and
Reviewing the income recognised for amounts recoverable on long term contract to ensure no evidence of management bias; and
Performing analytical procedures with automated data analytics tools to identify any unusual or unexpected relationships, including related party transactions, that may indicate risks of material misstatement due to fraud; and
Reviewing managements' provision for impairment of the retention balance to there ensure is no evidence of management bias.


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.





Page 7

 
Lyons & Annoot Limited
 

 
Independent auditors' report to the members of Lyons & Annoot Limited (continued)


As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also:


Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion of the effectiveness of the Company's internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.
Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our Auditors' report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our Auditors' report. However, future events or conditions may cause the Company to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.


We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.


Use of our report
 

This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an Auditors' 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.





Mark Attwood (Senior statutory auditor)
for and on behalf of
Kreston Reeves LLP
Chartered Accountants
Statutory Auditor
Canterbury

25 September 2025
Page 8

 
Lyons & Annoot Limited
 

Statement of income and retained earnings
For the year ended 31 December 2024

2024
2023
£
£

  

Turnover
 4 
14,086,095
12,555,273

Cost of sales
  
(9,657,472)
(8,654,375)

Gross profit
  
4,428,623
3,900,898

Administrative expenses
  
(3,747,988)
(1,295,568)

Operating profit
 5 
680,635
2,605,330

Interest receivable and similar income
  
39,151
26,756

Profit before tax
  
719,786
2,632,086

Tax on profit
 9 
(179,946)
(619,624)

Profit after tax
  
539,840
2,012,462

  

  

Retained earnings at the beginning of the year
  
2,002,549
3,539,587

  
2,002,549
3,539,587

Profit for the year
  
539,840
2,012,462

Dividends declared and paid
  
(450,000)
(3,549,500)

Retained earnings at the end of the year
  
2,092,389
2,002,549

There were no recognised gains and losses for 2024 or 2023 other than those included in the statement of income and retained earnings.

The notes on pages 11 to 21 form part of these financial statements.

Page 9

 
Lyons & Annoot Limited
Registered number: 01991166

Balance sheet
As at 31 December 2024

2024
2023
Note
£
£

Fixed assets
  

Tangible assets
 11 
101,565
135,659

  
101,565
135,659

Current assets
  

Debtors: amounts falling due within one year
 12 
2,818,094
3,558,177

Bank and cash balances
  
1,818,718
1,419,733

  
4,636,812
4,977,910

Creditors: amounts falling due within one year
 14 
(2,474,819)
(3,082,297)

Net current assets
  
 
 
2,161,993
 
 
1,895,613

Total assets less current liabilities
  
2,263,558
2,031,272

Provisions for liabilities
  

Deferred tax
 15 
(20,869)
(28,423)

Other provisions
 16 
(150,000)
-

Net assets
  
2,092,689
2,002,849


Capital and reserves
  

Called up share capital 
 17 
300
300

Profit and loss account
 18 
2,092,389
2,002,549

  
2,092,689
2,002,849


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




M Morelli
Director
Date: 19 September 2025

The notes on pages 11 to 21 form part of these financial statements.

Page 10

 
Lyons & Annoot Limited
 

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

1.


General information

Lyons and Annoot Limited is a private company limited by shares an is incorporated in England with the registration number 01991166.
The company's registered office is 28 Telegraph Hill Industrial Estate, Laundry Road, Minster, Ramsgate, Kent CT12 4HY.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

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 company's functional and presentational currency is Pounds Sterling. 
The company's financial statements are presented to the nearest Pound. 

The following principal accounting policies have been applied:

 
2.2

Financial Reporting Standard 102 - reduced disclosure exemptions

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 33 Related Party Disclosures paragraph 33.7.

This information is included in the consolidated financial statements of Lyons & Annoot Holdings Limited as at 31 December 2023 and these financial statements may be obtained from Companies House.

Page 11

 
Lyons & Annoot Limited
 

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

2.Accounting policies (continued)

 
2.3

Revenue

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

Sale of goods

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

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
the amount of revenue can be measured reliably;
it is probable that the Company will receive the consideration due under the contract;
the stage of completion of the contract at the end of the reporting period can be measured reliably; and
the costs incurred and the costs to complete the contract can be measured reliably.

Long-term contracts
Profits on long-term contracts is taken as the work is carried out if the final outcome can be assessed with reasonable certainty. The profit included is calculated on a prudent basis to reflect the proportion of the work carried out at the year end, by recording turnover and related costs as contract activity progresses. Turnover is calculated as that proportion of total contract value which costs incurred to date bear to total expected costs for that contract. Revenues derived from variations on contracts are recognised only when they have been accepted by the customer. Full provision is made for losses on all contracts in the year in which they are first foreseen.
Page 12

 
Lyons & Annoot Limited
 

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

2.Accounting policies (continued)

 
2.4

Tangible fixed assets

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

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, on a reducing balance basis.

Depreciation is provided on the following basis:

Plant and machinery
-
15%
Motor vehicles
-
25%
Fixtures and fittings
-
10%

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.5

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.6

Cash and cash equivalents

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

 
2.7

Financial instruments

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.
 
Page 13

 
Lyons & Annoot Limited
 

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

2.Accounting policies (continued)


2.7
Financial instruments (continued)


Basic financial assets

Basic financial assets, which include trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) 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 debtors due with the operating cycle fall into this category of financial instruments.

 
2.8

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
2.9

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

 
2.10

Operating leases: the Company as lessee

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

 
2.11

Pensions

Defined contribution pension plan

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

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

 
2.12

Interest income

Interest income is recognised in profit or loss using the effective interest method.

Page 14

 
Lyons & Annoot Limited
 

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

2.Accounting policies (continued)

 
2.13

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
 
Increases in provisions are generally charged as an expense to profit or loss.

 
2.14

Current and deferred taxation

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

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

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

Deferred tax 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 balance sheet date.


Page 15

 
Lyons & Annoot Limited
 

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

3.


Judgments in applying accounting policies and key sources of estimation uncertainty

The preparation of the financial statements requires the directors to make judgements, estimates and assumptions that can affect the amounts reported for assets and liabilities, and the results for the year.  The nature of estimation is such though that actual outcomes could differ significantly from those estimates.
The following judgements have had the most significant impact on amounts recognised in the financial statements:
Amounts recoverable on long term contracts
As a building contractor, the company has entered into a number of construction contracts in the year. When the outcome of a construction contract can be estimated reliably, the company has recognised contract revenue and contract costs associated with the construction contract as revenue and expenses respectively by reference to the stage of completion of the contract at the end of the reporting period (often referred to as the percentage of completion method).
Reliable estimation of the outcome requires reliable estimates of the stage of completion, future costs and collectible billings. The company determines the stage of completion of a construction contract using surveys of work performed.  The total amounts recoverable on long term contracts can be seen at note 12.


4.


Turnover

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


2024
2023
£
£

Construction services
14,086,095
12,555,273


All turnover arose within the United Kingdom.


5.


Operating profit

The operating profit is stated after charging:

2024
2023
£
£

Deprecation of tangible fixed assets
36,510
44,678

Operating lease rentals
39,002
27,955

Defined contribution pension cost
33,580
49,847

Page 16

 
Lyons & Annoot Limited
 

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

6.


Auditors' remuneration

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


2024
2023
£
£

Fees payable to the Company's auditors for the audit of the Company's financial statements
15,000
10,500


7.


Employees

2024
2023
£
£

Wages and salaries
2,608,164
1,268,320

Social security costs
102,694
(43,918)

Cost of defined contribution scheme
33,580
49,847

2,744,438
1,274,249


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


        2024
        2023
            No.
            No.







Construction Staff
16
18



Administration Staff
15
14

31
32


8.


Interest receivable

2024
2023
£
£


Other interest receivable
39,151
26,756

Page 17

 
Lyons & Annoot Limited
 

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

9.


Taxation


2024
2023
£
£

Corporation tax


Current tax on profits for the year
187,500
593,909


Total current tax
187,500
593,909

Deferred tax


Origination and reversal of timing differences
(7,554)
25,715

Total deferred tax
(7,554)
25,715


Tax on profit on ordinary activites
179,946
619,624

Factors affecting tax charge for the year

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

2024
2023
£
£


Profit on ordinary activities before tax
719,786
2,632,086


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 25%)
179,947
619,081

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
(584)
1,599

Capital allowances for year in excess of depreciation
8,137
(26,771)

Short-term timing difference leading to an increase (decrease) in taxation
(7,554)
25,715

Total tax charge for the year
179,946
619,624



There were no factors that may affect future tax charges.




10.


Dividends

2024
2023
£
£


Dividends paid
450,000
3,549,500

Page 18

 
Lyons & Annoot Limited
 

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

11.


Tangible fixed assets





Plant and machinery
Motor vehicles
Fixtures and fittings
Total

£
£
£
£



Cost or valuation


At 1 January 2024
47,442
277,982
46,619
372,043


Additions
3,476
-
-
3,476


Disposals
-
(44,327)
-
(44,327)



At 31 December 2024

50,918
233,655
46,619
331,192



Depreciation


At 1 January 2024
46,745
163,431
26,208
236,384


Charge for the year on owned assets
724
33,734
2,052
36,510


Disposals
-
(43,267)
-
(43,267)



At 31 December 2024

47,469
153,898
28,260
229,627



Net book value



At 31 December 2024
3,449
79,757
18,359
101,565



At 31 December 2023
697
114,551
20,411
135,659


12.


Debtors

2024
2023
£
£


Trade debtors
529,865
1,613,668

Amounts owed by group undertakings
1,110,000
-

Other debtors
99,144
43,093

Prepayments and accrued income
4,143
4,143

Amounts recoverable on long-term contracts
1,074,942
1,897,273

2,818,094
3,558,177



13.


Cash and cash equivalents

2024
2023
£
£

Cash at bank and in hand
1,818,718
1,419,733


Page 19

 
Lyons & Annoot Limited
 

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

14.


Creditors: Amounts falling due within one year

2024
2023
£
£

Trade creditors
490,898
844,878

Corporation tax
187,500
593,909

Other taxation and social security
41,947
41,981

Other creditors
4,069
4,069

Accruals and deferred income
1,750,405
1,597,460

2,474,819
3,082,297



15.


Deferred taxation




2024
2023


£

£






At beginning of year
(28,423)
(2,708)


Charged to profit or loss
7,554
(25,715)



At end of year
(20,869)
(28,423)

The provision for deferred taxation is made up as follows:

2024
2023
£
£


Accelerated capital allowances
(20,869)
(28,423)

(20,869)
(28,423)


16.


Provisions




Dilapidation provision

£





Charged to profit or loss
150,000



At 31 December 2024
150,000

Page 20

 
Lyons & Annoot Limited
 

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

17.


Share capital

2024
2023
£
£
Allotted, called up and fully paid



300 (2023 - 300) Ordinary shares of £1.00 each
300
300



18.


Reserves

Profit and loss account

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


19.


Pension commitments

The company operates a defined contributions 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 £33,580 (2023: £49,847).


20.


Commitments under operating leases

At 31 December 2024 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2024
2023
£
£


Not later than 1 year
31,205
22,600

Later than 1 year and not later than 5 years
5,650
28,250

36,855
50,850


21.


Controlling party

The company is a wholly owned subsidiary of Lyons & Annoot Holdings Limited, a company incorporated in England.
The directors consider there to be no ultimate controlling party.

Page 21