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Company Registration No.
FOR THE YEAR ENDED 31 DECEMBER 2024
Riordan O'Sullivan & Co
Chartered Certified Accountants and Statutory Auditors
40 Chamberlayne Road
London
NW10 3JE
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COMPANY INFORMATION
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CONTENTS
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GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
The directors present their strategic report together with the consolidated financial statements of the group for the year ended 31st December 2024.
Lucas UK Group Limited is the parent to a holding company S Lucas Group Limited and its two trading subsidiaries, namely:
1. Lucas Finishing Specialists Limited - an established specialist spray and painting contractor with a track-record spanning seven decades operating within the top end of the UK Construction Industry mainly working for high-profile tier 1 contractors and blue-chip clients on landmark projects, primarily in the London market and which currently includes Elephant & Castle, One Leadenhall, Museum of London and Olympia. 2. Lucas Fit Out Limited - a specialist fit out division carrying out high profile fit out projects for tier 1 contractors and blue-chip clients including Bloomberg, Battersea Power Station and McClaren F1. In 2024, the directors made a deliberate decision to move away from high risk, low margin fit out projects (Lucas Fit Out Limited) and focus on its core painting and finishing service (Lucas Finishing Specialists Limited). We continue to carry out projects for a broad spectrum of clients and contractors in sectors including commercial, residential, health, science, technology, retail, leisure and infrastructure.
The profit and loss account of the group for the year is set out on page 10. The results were in line with the expectations of the directors.
The directors are pleased to report that the group achieved profit of £957,000 from turnover of £15,830,000 despite continuing challenging economic conditions and global turbulence.
All projects were completed and handed over in line with agreed contracts and to programme and we commend the skills and experience of our management team and highly motivated workforce that continued their focus on the quality delivery of our core activities that gave us a successful year. Our thanks also go to the strong relationships we maintain with our supply chain who continue to give us a good service and products in recognition of decades of fair and prompt payment terms. We continued our investment in our people, in health and safety, training and technology and were proud to surpass 4.5 million work hours RIDDOR free, attaining a number of key project safety awards from our clients. We thank our clients for the opportunity to work for them.
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GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
Our goal is to continue building a sustainable business that stands out in the painting and finishing sector of our market.
Our current contracts are progressing to programme, we have a satisfactory order book from well-established customers and we have a significant pipeline of potential opportunities. We continue to invest in our people and resources. We live in uncertain times where profit margins remain challenging. There is reduced demand in our sector mainly caused by delayed starts to large construction projects which are awaiting the resolution of the Building Safety Act regulations. But when resolved we forecast increased demand for our services. Furthermore, we have the continuing uncertainty caused by the geo-political climate and the new tariff implications all combining to keep investment confidence low, so caution remains the order of the day. Our group had its origin in the 1960’s and we remain confident that our dedicated and experienced team and our reputation in our sector will continue the delivery of a consistent, timely and quality service to our valued customers and will generate profit and positive cashflow going forward. The board remain committed to manage the business to remain efficient, profitable and competitive so as to match the market it operates in and to deliver a quality service and to be a key strategic partner of its customers, suppliers and stakeholders.
There are a number of uncertainties which could have an impact on the group’s performance and could cause results to differ substantially from historical profits and current projections. The directors are responsible for identifying, managing and mitigating risks. So, we have an experienced team and modern management systems and procedures in place to help avoid or mitigate risks to the group.
Our policy remains to carry out an in-depth analysis of every tender before submission and to have an experienced team to deliver the contracts we win. The group’s credit risks are mainly attributable to the trade debtors and amounts recoverable on contracts. Our policy remains to have a good mix of long-standing blue-chip customers and we operate a modern and efficient financial management reporting system that monitors our customers and our debtors book on a day to day basis. The group does not have a concentration of credit risk with exposure spread over a number of blue-chip customers. Therefore, the directors are confident that they can meet their obligations as they fall due. Our longstanding monthly Cost Value Reporting system and review meetings cover the operational, commercial and financial performance of every project and highlights in a timely manner any variances or cost-over-runs that need addressing.
We had our origin in the 1960’s. We strive to retain the family ‘hands-on’ culture with all our directors actively involved with our employees, clients and projects. We adopt a modern approach based on traditional values, with a proud record of contracts completed on time, to the highest standards and with safe working practices. We work hard to maintain our reputation for consistency, quality, expertise and reliability and to be the contractor of choice. We strive to continue the long-term relationships we have with our customers by focusing on our core activities and our long-standing team and in house resources.
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GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
The Board of Directors is required to consider the group's ability to continue as a going concern over a period of at least 12 months from the date of approval of the financial statements. The directors are confident that the group can continue to trade successfully and to provide an excellent and reliable service to our customers for the foreseeable future because we have a satisfactory order book from well-established customers and we have good liquidity and funding arrangements in place if needed.
Thus we continue to adopt the going concern basis in preparing the financial statements.
Our people are our greatest asset. The on-going success of the group is attributable to the experience of our team of highly skilled and dedicated company directors ably supported by a well-developed organisational structure including contracts managers, project/site managers, site supervisors/foremen and a skilled workforce, underpinned by a strong commercial team and head office support function.
The directors believe that the long-term interests of the group, its employees and its customers are best served by acting in a corporate social manner. Therefore, the group ensures that high standards are maintained in everything that we do. Our people and health and safety are at the heart of everything we do and our directors and health and safety professionals continue to monitor best health and safety working practices and developments. During the year the group and its employees supported many worthy causes and charities and in conjunction with our clients we continue to offer employment to local tradespeople and support staff in our areas of operation and we continue to invest in upskilling and training. We proudly maintain our independently verified certifications including ISO 9001, ISO 14001 & ISO 45001 and also hold the highest levels of accreditation with Achilles, Considerate Constructors, FORS, Building Confidence SSIP and Carbon Neutral Plus. These are a reflection of our diligent standards and high regard for safety, quality and sustainability.
We are proud of our experienced team and our long history, so we look forward with confidence to continue the success of Lucas UK Group into the future.
This report was approved by the Board of Directors on 24 June 2025 and signed on its behalf.
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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 Group Strategic Report, the Directors' Report and the consolidated 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 Group's financial statements 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 Group 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 the Group 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 the Group 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 £708,572 (2023: £1,082,467).
The total distribution of dividends for the year ended 31 December 2024 will be £526,547 (2023: £85,000).
The directors who served during the year were:
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DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
There were no events since the year end which materially affected the group or company.
Riordan O'Sullivan & Co., Chartered Certified Accountants and Statutory Auditors were appointed during the year and have expressed their wish to continue in office and are deemed to be reappointed.
This report was approved by the Board of Directors on
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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF LUCAS UK GROUP LIMITED
We have audited the financial statements of Lucas UK Group Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 December 2024, which comprise the Consolidated Statement of Comprehensive Income, the Consolidated Balance Sheet, the Company Balance Sheet, the Consolidated Statement of Cash Flows, the Consolidated Statement of Changes in Equity, the Company 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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Group 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 Group's or the parent 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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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF LUCAS UK GROUP LIMITED (CONTINUED)
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 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 Group 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 Group 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 Group and the parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Directors' Report.
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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF LUCAS UK GROUP 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 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 Group financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
We obtained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates, through discussions with directors and senior management and from our commercial knowledge and experience of the construction industry. We focused on specific laws and regulations which we considered may have a material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation, data protection, anti-bribery, employment, environmental and health and safety legislation. We assessed the extent of compliance with these laws and regulations through discussions and enquiry with directors and senior management. We assessed the susceptibility of the company’s financial statements to material misstatement, including how fraud might occur. We considered the financial controls in place to mitigate risks of fraud and error, including the risk of management bias or override. We tested the appropriateness of journal entries that appeared unusual as to nature or amount. Our audit procedures were designed to respond to the risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment or collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations are from financial transactions, the less likely we are to become aware of it.
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 Auditors' 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 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.
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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF LUCAS UK GROUP LIMITED (CONTINUED)
for and on behalf of
Chartered Certified Accountants and Statutory Auditors
40 Chamberlayne Road
NW10 3JE
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CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
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CONSOLIDATED BALANCE SHEET
AS AT 31 DECEMBER 2024
The financial statements were approved and authorised for issue by the Board of Directors and were signed on its behalf on 24 June 2025.
The notes on pages 18 to 34 form part of these financial statements.
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COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2024
The financial statements were approved and authorised for issue by the Board of Directors and were signed on its behalf on
The notes on pages 18 to 34 form part of these financial statements.
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