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Registered number: 14844061
Lyons & Annoot Holdings Limited
Annual report and financial statements
For the year ended 31 December 2024
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Lyons & Annoot Holdings Limited
Company Information
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28 Telegraph Hill Industrial Estate
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Chartered Accountants & Statutory Auditor
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Lyons & Annoot Holdings Limited
Contents
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Independent auditors' report
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Consolidated statement of comprehensive income
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Consolidated balance sheet
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Consolidated statement of changes in equity
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Company statement of changes in equity
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Consolidated statement of cash flows
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Notes to the financial statements
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Lyons & Annoot Holdings Limited
Group strategic report
For the year ended 31 December 2024
The directors present their strategic report of Lyons & Annoot Holdings Limited for the period ended 31st December 2024.
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
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Lyons & Annoot Holdings Limited
Group strategic report (continued)
For the year ended 31 December 2024
Principal risks and uncertainties
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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
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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 monitoring monthly movements, debtor days and cash flow monitoring.
This report was approved by the board and signed on its behalf.
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M Morelli
Director
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Page 2
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Lyons & Annoot Holdings 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
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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.
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 the Group and of the profit or loss of the Group for that period.
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 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 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 £1,586,863 (2023 -£2,126,990).
Dividends of £nil were paid by Lyons & Annoot Holdings Limited in the period.
The directors who served during the year were:
In respect of Lyons & Annoot Holdings Limited, it is the intention of the directors to continue operating on the same basis as the current, which is to focus attention on the trading company Lyons & Annoot Limited which is the only trading company currently in the group. This remains the situation for the foreseeable future.
Disclosure of information to auditors
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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 and the Group'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 and the Group's auditors are aware of that information.
Page 3
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Lyons & Annoot Holdings Limited
Directors' report (continued)
For the year ended 31 December 2024
Post balance sheet events
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There have been no significant events affecting the Group since the year end.
The auditors, Kreston Reeves LLP, 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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M Morelli
Director
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Page 4
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Lyons & Annoot Holdings Limited
Independent auditors' report to the members of Lyons & Annoot Holdings Limited
We have audited the financial statements of Lyons & Annoot Holdings 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).
In our opinion the financial statements:
∙give a true and fair view of the state of the Group's and of the parent Company's affairs as at 31 December 2024 and of the Group's 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.
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.
Conclusions relating to going concern
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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.
Page 5
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Lyons & Annoot Holdings Limited
Independent auditors' report to the members of Lyons & Annoot Holdings 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.
Opinion on other matters prescribed by the Companies Act 2006
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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.
Matters on which we are required to report by exception
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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.
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 by the parent Company, or returns adequate for our audit have not been received from branches not visited by us; or
∙the parent Company 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
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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 Group's and the parent 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 Group or the parent Company or to cease operations, or have no realistic alternative but to do so.
Page 6
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Lyons & Annoot Holdings Limited
Independent auditors' report to the members of Lyons & Annoot Holdings Limited (continued)
Auditors' responsibilities for the audit of the financial statements
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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 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
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Lyons & Annoot Holdings Limited
Independent auditors' report to the members of Lyons & Annoot Holdings 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.
∙Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the Group audit. We remain solely responsible for our audit opinion.
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.
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.
Mark Attwood (Senior statutory auditor)
for and on behalf of
Kreston Reeves LLP
Chartered Accountants
Statutory Auditor
Canterbury
25 September 2025
Page 8
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Lyons & Annoot Holdings Limited
Consolidated statement of comprehensive income
For the year ended 31 December 2024
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Interest receivable and similar income
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Interest payable and similar expenses
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Profit for the financial year
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Other comprehensive income for the year
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Total comprehensive income for the year
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Profit for the year attributable to:
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Owners of the parent company
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The notes on pages 15 to 28 form part of these financial statements.
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Page 9
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Lyons & Annoot Holdings Limited
Registered number: 14844061
Consolidated balance sheet
As at 31 December 2024
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Debtors: amounts falling due within one year
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Creditors: amounts falling due within one year
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Total assets less current liabilities
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Creditors: amounts falling due after more than one year
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Provisions for liabilities
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The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
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M Morelli
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The notes on pages 15 to 28 form part of these financial statements.
Page 10
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Lyons & Annoot Holdings Limited
Registered number: 14844061
Company balance sheet
As at 31 December 2024
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Debtors: amounts falling due within one year
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Creditors: amounts falling due within one year
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Total assets less current liabilities
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Creditors: amounts falling due after more than one year
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Net assets excluding pension asset
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Profit and loss account brought forward
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Profit and loss account carried forward
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The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
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M Morelli
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The notes on pages 15 to 28 form part of these financial statements.
Page 11
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Lyons & Annoot Holdings Limited
Consolidated statement of changes in equity
For the year ended 31 December 2024
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Comprehensive income for the year
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Total comprehensive income for the year
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Comprehensive income for the year
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Total comprehensive income for the year
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The notes on pages 15 to 28 form part of these financial statements.
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Page 12
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Lyons & Annoot Holdings Limited
Company statement of changes in equity
For the year ended 31 December 2024
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Comprehensive income for the year
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Total comprehensive income for the year
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Comprehensive income for the year
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Total comprehensive income for the year
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The notes on pages 15 to 28 form part of these financial statements.
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Page 13
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Lyons & Annoot Holdings Limited
Consolidated statement of cash flows
For the year ended 31 December 2024
Cash flows from operating activities
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Profit for the financial year
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Amortisation of intangible assets
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Depreciation of tangible assets
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Loss on disposal of tangible assets
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Corporation tax (paid)/received
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Net cash generated from operating activities
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Cash flows from investing activities
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Purchase of intangible fixed assets
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Purchase of tangible fixed assets
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Sale of tangible fixed assets
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Purchase of fixed asset investments
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Net cash from investing activities
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Cash flows from financing activities
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Net cash used in financing activities
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Net increase in cash and cash equivalents
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Cash and cash equivalents at beginning of year
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Cash and cash equivalents at the end of year
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Cash and cash equivalents at the end of year comprise:
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Page 14
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Lyons & Annoot Holdings Limited
Notes to the financial statements
For the year ended 31 December 2024
Lyons & Annoot Holdings Limited is a private company limited by shares and is incorporated in England
with the registration number 14844061.
The company's registered office is 28 Telegraph Hill Industrial Estate, Laundry Road, Minster, Ramsgate,
Kent CT12 4HY.
2.Accounting policies
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Basis of preparation of financial statements
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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 Group management to exercise judgment in applying the Group's accounting policies (see note 3).
The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of comprehensive income in these financial statements.
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:
The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Balance sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated statement of comprehensive income from the date on which control is obtained. They are deconsolidated from the date control ceases.
Page 15
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Lyons & Annoot Holdings Limited
Notes to the financial statements
For the year ended 31 December 2024
2.Accounting policies (continued)
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group 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 Group has transferred the significant risks and rewards of ownership to the buyer;
∙the Group 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 Group 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 Group 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.
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Operating leases: the Group as lessee
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Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.
Interest income is recognised in profit or loss using the effective interest method.
Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.
Page 16
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Lyons & Annoot Holdings Limited
Notes to the financial statements
For the year ended 31 December 2024
2.Accounting policies (continued)
Defined contribution pension plan
The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group 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 Group in independently administered funds.
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Current and deferred taxation
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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 and the Group operate and generate 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;
∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met; and
∙Where they relate to timing differences in respect of interests in subsidiaries, associates, branches and joint ventures and the Group can control the reversal of the timing differences and such reversal is not considered probable in the foreseeable future.
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.
Goodwill
Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of the Group's share of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight-line basis to the Consolidated statement of comprehensive income over its useful economic life.
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.
Page 17
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Lyons & Annoot Holdings Limited
Notes to the financial statements
For the year ended 31 December 2024
2.Accounting policies (continued)
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:
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.
Investments in subsidiaries are measured at cost less accumulated impairment.
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.
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Cash and cash equivalents
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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.
In the Consolidated statement of cash flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Group's cash management.
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.
Page 18
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Lyons & Annoot Holdings Limited
Notes to the financial statements
For the year ended 31 December 2024
2.Accounting policies (continued)
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Provisions for liabilities
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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.
Deferred tax liabilities are also presented within provisions but are measured in accordance with the accounting policy on taxation.
Increases in provisions are generally charged as an expense to profit or loss.
The Group 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 Group's Balance sheet when the Group 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 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 Group's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments.
Page 19
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Lyons & Annoot Holdings Limited
Notes to the financial statements
For the year ended 31 December 2024
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Judgments in applying accounting policies and key sources of estimation uncertainty
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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 group 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
14.
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An analysis of turnover by class of business is as follows:
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All turnover arose within the United Kingdom.
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The operating profit is stated after charging:
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Depreciation of tangible fixed assets
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Other operating lease rentals
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Defined contribution pension cost
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Page 20
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Lyons & Annoot Holdings Limited
Notes to the financial statements
For the year ended 31 December 2024
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During the year, the Group obtained the following services from the Company's auditors:
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Fees payable to the Company's auditors for the audit of the consolidated and parent Company's financial statements
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Staff costs, including directors' remuneration, were as follows:
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Cost of defined contribution scheme
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The average monthly number of employees, including the directors, during the year was as follows:
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The Company has no employees other than the directors, who did not receive any remuneration (2023 -£NIL)
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The Company has no employees other than the directors, who did not receive any remuneration NIL.
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Other interest receivable
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Page 21
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Lyons & Annoot Holdings Limited
Notes to the financial statements
For the year ended 31 December 2024
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Interest payable and similar expenses
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Other loan interest payable
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Current tax on profits for the year
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Origination and reversal of timing differences
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Factors affecting tax charge for the year
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The tax assessed for the year is the same as (2023 -higher than) the standard rate of corporation tax in the UK of 25% (2023 -25%). The differences are explained below:
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Profit on ordinary activities before tax
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Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 -25%)
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Expenses not deductible for tax purposes
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Capital allowances for year in excess of depreciation
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Short-term timing difference leading to an increase (decrease) in taxation
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Other timing differences leading to an increase (decrease) in taxation
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Total tax charge for the year
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Page 22
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Lyons & Annoot Holdings Limited
Notes to the financial statements
For the year ended 31 December 2024
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Charge for the year on owned assets
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Page 23
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Lyons & Annoot Holdings Limited
Notes to the financial statements
For the year ended 31 December 2024
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Charge for the year on owned assets
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Page 24
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Lyons & Annoot Holdings Limited
Notes to the financial statements
For the year ended 31 December 2024
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Investments in subsidiary companies
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The following was a subsidiary undertaking of the Company:
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28 Telegraph Hill,Industrial Estate, Laundry Road, Minster, Ramsgate,Kent CT12 4HY.
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Amounts owed by group undertakings
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Prepayments and accrued income
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Amounts recoverable on long-term contracts
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Cash and cash equivalents
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Page 25
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Lyons & Annoot Holdings Limited
Notes to the financial statements
For the year ended 31 December 2024
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Creditors: Amounts falling due within one year
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Amounts owed to group undertakings
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Other taxation and social security
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Accruals and deferred income
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Creditors: Amounts falling due after more than one year
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There are no amounts included within other creditors flling due after more than one year that are repayable more than five years after the balance sheet date.
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Charged to profit or loss
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Arising on business combinations
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Accelerated capital allowances
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Page 26
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Lyons & Annoot Holdings Limited
Notes to the financial statements
For the year ended 31 December 2024
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Charged to profit or loss
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Allotted, called up and fully paid
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99 (2023 -99) Ordinary shares of £1.00 each
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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.
The group 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).
Page 27
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Lyons & Annoot Holdings Limited
Notes to the financial statements
For the year ended 31 December 2024
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Commitments under operating leases
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At 31 December 2024 the Group and the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:
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Later than 1 year and not later than 5 years
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Related party transactions
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During the period the group entered into transactions, in the ordinary course of business, with related parties. The company is exempt from disclosing related party transactions with other companies wholly owned within the group.
The key management personnel of the group is comprised only of the directors of Lyons & Annoot Holdings Limited and Lyons & Annoot Limited. The total compensation payable in respect of these individuals is £322,608 (2023 - £229,420).
At 31 December 2024, the group owed £5,400,000 to related parties (2023: £6,900,000).
During the year, a company vehicle was purchased by a director for £600. The balance of £600 is outstanding to the grouip at the year end.
During the year, the group made payments totallying £81,303 through payroll to related parties, other than those identified as key management personnel.
During the year, the purchased goods on behalf of related parties amounting to £94,673. Of this amount, £93,109 was recharged back to the relevant related parties.
At 31 December 2024, the group was owed £54,694 by related parties.
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Page 28
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