Company registration number: 00874230
COMPANY INFORMATION
CONTENTS
STRATEGIC REPORT
FOR THE YEAR ENDED 31 AUGUST 2025
The directors present their Strategic report for Lenham Storage (Southern) Limited (the 'Company') with the audited financial statements for the year ended 31 August 2025.
The principal activities of the company during the year were those of warehousing and haulage services with a business model centred on storing and delivering largely food and grocery products.
The Board utilise a number of key performance indicators to monitor and manage the business, foremost amongst these are the measurement of turnover, margins and cash flows. These measures indicate the levels of operation achieved, its profitability and the efficiency with which those profits have been turned into cash.
Turnover decreased by 2.76% (2024 = +24.0%) primarily as a result of a loss of a significant client part way during the year. Costs increased in 2025 again primarily as a result of the increase in the living wage from April which affected all pay rates and the increase in ers nic rate from 13.8% to 15% and significantly the adjustment to the ers nic threshold. Certain provisions included last year have again been carried over in 2025 particularly those in relation to groundwork. Gross profits for the year decreased by 9.67% (2024 = 4.30%) and the company is happy to report a profit before tax for the year of £540.0k (2024 = £962.8k).
The company has had a solid trading year, continuing to build on its strong foundations, the results for the year and the financial position of the company are as shown in the annexed statements.
The Company remains well funded and robust.
Our employees are intrinsic to the success and culture of our family business. As a responsible employer, heavy investment again has been made in wages, something the company always believes important but especially so during the current financial climate.
Employee development through training and internal progression has always been important to the business. The driver, warehouse and administration training teams have helped develop employees’ potential within the business, improve productivity and achieve superb test pass results. The business continues to support and encourage apprenticeships.
The company were proud during the year to maintain BRCGS AA+ accreditation following an unannounced multi day audit for our sites at Aylesford, Lenham and Sittingbourne.
Customer service and client partnership are central to the success of the business. We have continued to build on our highly valued, long-lasting relationships with our customers and several clients during the year formally renewed long term contracts.
Reinvestment back into our business and sites has always been important. This trading year saw heavy investment in site maintenance.
A significant number of the growing fleet was replaced during the trading year with investment in both new technology and more environmentally friendly vehicles and equipment.
The company is in a strong position and well placed for the year ahead.
The Board utilise a number of key performance indicators to monitor and manage the business, foremost amongst these are the measurement of turnover, margins and cash flows. These measures indicate the levels of operation achieved, its profitability and the efficiency with which those profits have been turned into cash.
Turnover decreased by 2.76% (2024 = +24.0%) primarily as a result of a loss of a significant client part way during the year. Costs increased in 2025 again primarily as a result of the increase in the living wage from April which affected all pay rates and the increase in ers nic rate from 13.8% to 15% and significantly the adjustment to the ers nic threshold. Certain provisions included last year have again been carried over in 2025 particularly those in relation to groundwork. Gross profits for the year decreased by 9.67% (2024 = 4.30%) and the company is happy to report a profit before tax for the year of £540.0k (2024 = £962.8k).
The company has had a solid trading year, continuing to build on its strong foundations, the results for the year and the financial position of the company are as shown in the annexed statements.
The Company remains well funded and robust.
Our employees are intrinsic to the success and culture of our family business. As a responsible employer, heavy investment again has been made in wages, something the company always believes important but especially so during the current financial climate.
Employee development through training and internal progression has always been important to the business. The driver, warehouse and administration training teams have helped develop employees’ potential within the business, improve productivity and achieve superb test pass results. The business continues to support and encourage apprenticeships.
The company were proud during the year to maintain BRCGS AA+ accreditation following an unannounced multi day audit for our sites at Aylesford, Lenham and Sittingbourne.
Customer service and client partnership are central to the success of the business. We have continued to build on our highly valued, long-lasting relationships with our customers and several clients during the year formally renewed long term contracts.
Reinvestment back into our business and sites has always been important. This trading year saw heavy investment in site maintenance.
A significant number of the growing fleet was replaced during the trading year with investment in both new technology and more environmentally friendly vehicles and equipment.
The company is in a strong position and well placed for the year ahead.
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STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2025
The company holds or issues financial instruments in order to achieve three main objectives, being:
(a) to finance its operations;
(a) to finance its operations;
In addition, various financial instruments (e.g. trade debtors, trade creditors, accruals and prepayments) arise directly from the company's operations.
Transactions in financial instruments result in the company assuming or transferring to another party one or more of the financial risks described below.
Interest rate risk
Transactions in financial instruments result in the company assuming or transferring to another party one or more of the financial risks described below.
Interest rate risk
The Company finances its operations through a combination of retained earnings and hire purchase contracts. Exposure to interest rate fluctuations is controlled by entering into fixed rate agreements.
Credit risk
The Company's principal financial assets are trade debtors. In order to manage credit risk on these debtors the directors set limits for customers based on a combination of payment history and third party credit references. Credit limits are reviewed on a regular basis in conjunction with debt ageing and collection history.
Liquidity risk
The directors monitor the cash levels of the company to ensure that there are always cash funds available to meet the day to day working capital requirements of the company. Short term flexibility is achieved through the company's banking arrangements.
The Company finances much of its investment in tangible fixed assets through hire purchase contracts.
The Board utilise a number of key performance indicators to monitor and manage the business, foremost amongst these are the measurement of turnover, margins and cash flows. These measures indicate the levels of operation achieved, its profitability and the efficiency with which those profits have been turned into cash.
This report was approved by the board and signed on its behalf.
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DIRECTORS' REPORT
FOR THE YEAR ENDED 31 AUGUST 2025
The directors present their report and the financial statements for the year ended 31 August 2025.
The directors are responsible for preparing the Strategic Report, the Directors' Report and the financial statements in accordance with applicable law and regulations.
In preparing these financial statements, the directors are required to:
∙select suitable accounting policies for the Company's financial statements and then apply them consistently;
∙make judgments and accounting estimates that are reasonable and prudent;
∙state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The profit for the year, after taxation, amounted to £403,480 (2024 -£722,337).
The directors have recommended a dividend of £Nil (2024 - £Nil).
The directors who served during the year were:
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DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2025
Under section 487(2) of the Companies Act 2006, Menzies LLP will be deemed to have been reappointed as auditor 28 days after these financial statements were sent to members or 28 days after the latest date prescribed for filing the accounts with the registrar, whichever is earlier.
This report was approved by the board and signed on its behalf.
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INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF LENHAM STORAGE (SOUTHERN) LIMITED
We have audited the financial statements of Lenham Storage (Southern) Limited (the 'Company') for the year ended 31 August 2025, which comprise the Statement of Comprehensive Income, the Statement of Financial Position, the Statement of Cash Flows, the Statement of Changes in Equity and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law. and United Kingdom Accounting Standards.including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the Annual Report other than the financial statements and our Auditor's Report thereon. The directors are responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
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INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF LENHAM STORAGE (SOUTHERN) LIMITED (CONTINUED)
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors' Report.
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INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF LENHAM STORAGE (SOUTHERN) LIMITED (CONTINUED)
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditor's Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
∙The company is subject to laws and regulations that directly affect the financial statements including financial reporting legislation. We determined that the following laws and regulations were most significant:
−The Companies Act 2006;
−Financial Reporting Standard 102;
−UK Employment Legislation;
−UK heath and safety legislation;
−General Data Protection Regulations;
−DVSA; and
−MOT testing requirements
∙We assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.
∙
∙We understood how the Company is complying with those legal and regulatory frameworks by, making inquiries to management, those responsible for legal and compliance procedures.
∙The engagement partner assessed whether the engagement team collectively had the appropriate competence and capabilities to identify or recognize non-compliance with laws and regulations. The assessment did not identify any issues in this area.
∙We assessed the susceptibility of the Company financial statements to material misstatement, including how fraud might occur. Audit procedures performed by the engagement team included:
−Identifying and assessing the design effectiveness of controls management has in place to prevent and detect fraud;
−Understanding how those charged with governance considered and addressed the potential for override of controls or other inappropriate influence over the financial reporting process;
−Challenging assumptions and judgments made by management in its significant accounting estimates; and
−Identifying and testing journal entries, in particular any journal entries posted with unusual account combinations.
∙As a result of the above procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas:
−The application of inappropriate judgements or estimation to manipulate the Company's financial position;
−Posting of unusual and complex transactions; and
−The use of management override of controls to manipulate results, or to cause the Company to enter into transactions not in it's best interests.
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INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF LENHAM STORAGE (SOUTHERN) LIMITED (CONTINUED)
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditor's Report.
This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an Auditor's Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.
for and on behalf of
Chartered Accountants
Statutory Auditor
2nd Floor, Origin One
108 High Street
RH10 1BD
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STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 AUGUST 2025
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STATEMENT OF FINANCIAL POSITION
AS AT 31 AUGUST 2025
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 14 to 25 form part of these financial statements.
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STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 AUGUST 2025
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STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 AUGUST 2025
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ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 AUGUST 2025
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2025
Lenham Storage (Southern) Limited is a private company limited by shares incorporated in England and Wales. The company's registered number and the address of the registered office is disclosed on the company information page. The principal place of business is Fyfield Road, Andover, SP11 8DL.
The financial statements are presented in sterling which is the functional currency of the company and rounded to the nearest £.
The financial statements are presented in sterling which is the functional currency of the company and rounded to the nearest £.
2.Accounting policies
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).
The following principal accounting policies have been applied:
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2025
2.Accounting policies (continued)
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line and reducing balance method.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
Fair values are determined from market based evidence normally undertaken by professionally qualified valuers.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2025
2.Accounting policies (continued)
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 Statement of Financial Position when the Company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include trade and other 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.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2025
2.Accounting policies (continued)
The valuation of freehold property is an area of significant judgement. However, all properties are valued by an independent, RICS registered professional. The experts are appropriately qualified and experienced, and therefore the directors believe that the risk of the freehold property valuation being materially misstated is low.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2025
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2025
Page 19
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2025
There are no factors that may affect future tax charges.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2025
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2025
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2025
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2025
Revaluation reserve
Profit and loss account
A contingent liability exists at the accounting date in respect of an unlimited cross-guarantee and a debenture, secured on all of the company's assets, given to/by specific other companies with common shareholders, Lenham Storage Company Limited, Lenham Garages Limited, Lenham Storage (Midlands) Limited and Fitzmaurice Carriers Limited, in order to secure their banking facilities.
As the guarantee is solely for the purpose of securing banking facilities, no specific timing for any cash outflow can be reasonably estimated. The likelihood and timing of any financial impact are inherently uncertain and contingent on future events, which are currently not anticipated to result in any material cash outflows.
As the guarantee is solely for the purpose of securing banking facilities, no specific timing for any cash outflow can be reasonably estimated. The likelihood and timing of any financial impact are inherently uncertain and contingent on future events, which are currently not anticipated to result in any material cash outflows.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2025
The directors believe that the ultimate controlling party is K. N. Abrehart by virtue of his shareholding.
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