Company Registration No. 01760303 (England and Wales)
LUND BROS & CO LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2020
PAGES FOR FILING WITH REGISTRAR
LUND BROS & CO LIMITED
CONTENTS
Page
Statement of financial position
1
Notes to the financial statements
2 - 7
LUND BROS & CO LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT
30 SEPTEMBER 2020
30 September 2020
- 1 -
2020
2019
Notes
£
£
£
£
Non-current assets
Property, plant and equipment
4
679,107
763,872
Current assets
Inventories
145,152
189,035
Trade and other receivables
5
1,559,515
1,760,536
Cash and cash equivalents
434,366
146,672
2,139,033
2,096,243
Current liabilities
6
(1,025,267)
(1,063,450)
Net current assets
1,113,766
1,032,793
Total assets less current liabilities
1,792,873
1,796,665
Non-current liabilities
7
(181,665)
(258,428)
Provisions for liabilities
(22,400)
(20,700)
Net assets
1,588,808
1,517,537
Equity
Called up share capital
9
100,000
100,000
Retained earnings
1,488,808
1,417,537
Total equity
1,588,808
1,517,537
The directors of the company have elected not to include a copy of the income statement within the financial statements.
true
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 22 June 2021 and are signed on its behalf by:
Mr S Stephens
Director
Company Registration No. 01760303
LUND BROS & CO LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2020
- 2 -
1
Accounting policies
Company information
Lund Bros & Co Limited is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
"Lunds", Brookside Avenue, Rustington, West Sussex, BN16 3LF.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in
sterling
, which is the functional currency of the company.
Monetary a
mounts
in these financial statements are
rounded to the nearest £
1
.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Going concern
The financial statements have been prepared on a going concern basis. The directors have considered relevant information, including the annual budget, forecast future cash flows, the value of future orders and the impact of subsequent events in making their assessment. COVID-19 has inevitably introduced uncertainties over the future but the order book remains strong. The pandemic and the ensuing economic shutdown has also had a significant impact on the company's operations but these have been able to continue with certain measures introduced as required for social distancing. In response to the COVID-19 pandemic, the directors have performed a robust analysis of forecast future cash flows taking into account the potential impact on the business of possible future scenarios arising from the impact of COVID-19. This analysis also considers the effectiveness of available measures to assist in mitigating the impact.
true
Based on these assessments and having regard to the resources available to the entity, the directors have concluded that there is no material uncertainty in relation to the appropriateness of continuing to adopt the going concern basis in preparing the annual report and accounts.
1.3
Revenue
Revenue
represents amounts receivable for goods and services net of VAT and trade discounts.
Revenue is recognised as contract activity progresses so that for incomplete contracts it reflects the partial performance of the contractual obligations. For such contracts the amount of revenue reflects the accrual of the right to consideration by reference to the value of work performed.
1.4
Property, plant and equipment
Property, plant and equipment
are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Plant and machinery
10% diminishing balance per annum
Fixtures, fittings & equipment
10% or 25% diminishing balance per annum
Motor vehicles
25% diminishing balance per annum
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
LUND BROS & CO LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2020
1
Accounting policies
(Continued)
- 3 -
1.5
Inventories
Inventories
are stated at the lower of cost and
estimated selling price less costs to complete and sell.
1.6
Work in progress
Where the outcome of work in progress can be estimated reliably, revenue and costs are recognised by reference to the stage of completion of the activity. The stage of completion is measured by the proportion of contract costs incurred for work performed to the statement of financial position date compared to the estimated total contract costs.
When it is probable that total contract costs will exceed total contract turnover, the expected loss is recognised as an expense immediately.
1.7
Cash and cash equivalents
Cash and cash equivalents
are basic financial assets
and
include
deposits held at call with banks
and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.8
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Basic financial assets
Basic financial assets, which include trade and other receivables and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost
.
Basic financial liabilities
Basic financial liabilities, including trade and other payables and loans from
fellow group companies
are
initially recognised at transaction price
. Financial liabilities classified as payable within one year are not amortised.
1.9
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.10
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.
1.11
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense
.
1.12
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
LUND BROS & CO LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2020
1
Accounting policies
(Continued)
- 4 -
1.13
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair
value at the date of inception and the present value of the minimum lease payments. The related liability is included in the statement of financial position as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to the income statement so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Rentals payable under operating leases,
including
any lease incentives received, are charged to income on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the lease asset are consumed.
1.14
Government grants
Government grants are recognised at the fair value of the asset receive
d
or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
Income
is recognised when the proceeds are received or receivable
.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was 54 (2019 - 57
).
3
Intangible fixed assets
Goodwill
£
Cost
At 1 October 2019 and 30 September 2020
33,000
Amortisation and impairment
At 1 October 2019 and 30 September 2020
33,000
Carrying amount
At 30 September 2020
At 30 September 2019
LUND BROS & CO LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2020
- 5 -
4
Property, plant and equipment
Plant and machinery
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
£
Cost
At 1 October 2019
1,040,601
150,029
120,118
1,310,748
Additions
277
277
At 30 September 2020
1,040,601
150,306
120,118
1,311,025
Depreciation and impairment
At 1 October 2019
337,784
128,439
80,653
546,876
Depreciation charged in the year
70,282
4,895
9,865
85,042
At 30 September 2020
408,066
133,334
90,518
631,918
Carrying amount
At 30 September 2020
632,535
16,972
29,600
679,107
At 30 September 2019
702,817
21,590
39,465
763,872
5
Trade and other receivables
2020
2019
Amounts falling due within one year:
£
£
Trade receivables
762,395
781,244
Amounts owed by group undertakings
394,728
416,993
Other receivables
402,392
562,299
1,559,515
1,760,536
LUND BROS & CO LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2020
- 6 -
6
Current liabilities
2020
2019
£
£
Bank loans and overdrafts
235,744
250,900
Trade payables
156,507
254,905
Amounts owed to group undertakings
214,283
233,370
Taxation and social security
196,770
136,126
Other payables
221,963
188,149
1,025,267
1,063,450
Included within other payables (both current and non-current) is an amount of £258,429 (2019 - £335,192) relating to finance leases which are secured against their respective fixed assets within property, plant and equipment.
Bank loans and overdrafts are secured as detailed in note 11.
7
Non-current liabilities
2020
2019
£
£
Other payables
181,665
258,428
8
Retirement benefit schemes
2020
2019
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
44,853
40,902
The company operates a defined contribution pension scheme for all qualifying employees.
The assets of the scheme are held separately from those of the company in an independently administered fund.
Included in current liabilities is an amount of £2,349 (2016 - £1,859) due to defined contribution schemes.
9
Called up share capital
2020
2019
2020
2019
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
100,000
100,000
100,000
100,000
10
Audit report information
As the income statement has been omitted from the filing copy of the financial statements
,
the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006
:
The auditor's report was unqualified.
LUND BROS & CO LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2020
10
Audit report information
(Continued)
- 7 -
The senior statutory auditor was Robin Evans BA FCA CTA.
The auditor was Carpenter Box.
Carpenter Box is a trading name of Carpenter Box Limited
11
Financial commitments, guarantees and contingent liabilities
Banking facilities are secured by a cross guarantee and debenture dated 2 May 2013 between, the company, Chatsworth Forge Group Limited, Chatsworth Forge Limited, Lund Bros (Holdings) Limited and Wastadel Limited. The extent of the contingent liability at the year end amounted to £1,094,736 (2019 - £1,218,305).
12
Operating lease commitments
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases
totalling £85,890 (2019 - £105,164).
13
Parent company
The ultimate parent company is Chatsworth Forge Group Limited. Their registered office is Lunds, Brookside Avenue, Rustington, West Sussex BN16 3LF.
Chatsworth Forge Group Limited prepares consolidated financial statements and copies can be obtained from Companies House.