Registered number:
FOR THE YEAR ENDED 31 DECEMBER 2019
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LINDNER EXTERIORS HOLDING LIMITED
COMPANY INFORMATION
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LINDNER EXTERIORS HOLDING LIMITED
CONTENTS
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LINDNER EXTERIORS HOLDING LIMITED
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2019
The group continues to work with blue chip main contractors and clients providing specialist building envelope solutions involving roofing, cladding and curtain walling activities. The group has maintained a high level of investment in developing solutions which provide first class processes from design through to installation. This has created a scalable business model which gives the group the confidence that it will continue to deliver profitable business and cash generation on a sustainable basis. The key market sectors include stadia, health, commercial, defence, residential, transport, social and power. Over recent years completed projects have included Manchester Airport Pier & Links, Chelsea Barracks, Elwick Place, 100 and 150 Bishop’s gate, Liverpool Street, Greengate Manchester, Victoria Square Woking, Manchester Goods Yard and Aspire (MOD).
The Directors are satisfied with business activity. Turnover in the year decreased by 19.06%, after an exceptional year in 2018. The year ended with operating profit of £533,926 and a cash balance of £10,972,422.
Covid 19 has created uncertainty but the group continues to pursue a number of key infrastructure opportunities across core transportation and energy markets. The order book for 2020 and beyond remains strong. Over the next few years HS2, new nuclear power (Hinkley) and other infrastructure projects will provide opportunities following the UK Government’s investment in this area. The group has a proven track record working across a number of sectors with a geographical spread of work across the UK. The group is, therefore, well positioned to capitalise on opportunities arising in various areas in the construction market. The Directors understand the construction business and also the evolving market in which it operates. The group is totally focussed on meeting the needs of the UK Market. To this end, the group continually invests in developing solutions which provide first class processes from design through to installation. This investment aims to keep Prater Limited, the trading subsidiary, as the preferred envelope provider of choice for its customers and will enable the group to provide a sustainable business and return for its shareholders. The balance sheet remains strong with a net worth of £43,676,134 supporting the ongoing trading activity. This demonstrates to clients and the supply chain a sustainable and secure approach for the long term. The group continues its policy of retaining a significant proportion of its profit in the business which assists in funding both future investment and working capital requirements.
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LINDNER EXTERIORS HOLDING LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
During 2019 the group’s 3D design capability was further enhanced by embedding a 3D specialist to train, support & mentor the team. This assists the ongoing transition from 2D to 3D design delivery and to further capitalise on the automated transfer of design information for use in manufacturing.
The commitment to developing defect-free building envelopes continues. This is underpinned by the group's façade engineering team and strong network of specialist consultancies and suppliers. The safety, quality & efficiency performance within the two manufacturing facilities was enhanced again in 2019. This was recognised by positive customer feedback as well as an excellent set of internal & external audit results and inspection reports. The group has many repeat business clients and continues to be involved in landmark projects such as Midland Metropolitan Hospital, 22 Bishopsgate, Royal Mail, Tower Hamlets Town Hall, Soho Place, Manchester Goods Yard and Owen Steet Manchester. Some of these projects incorporated unitised, panelised and off site assembly solutions. The group also continues to work on a number of major infrastructure projects across core transportation and energy markets. Together with our partners and supply chain, the group continues to deliver innovative, efficient and highly complex infrastructure projects with the highest levels of quality, safety and technical expertise. A standout moment in 2019 was the successful completion of the Wimbeldon No1 court. The group team delivered the final phase of this complex project ahead of the 2019 championships and had the pleasure of attending the official opening ceremony. To be part of this iconic project was a great success for the group and the entire project team. With the purchase of the group's new office building in Birmingham, the local team will enjoy a state of the art facility. The opening of the new office represents the latest step in the ongoing strategy to develop the strength and capabilities of the regional offices. It follows the creation of a new permanent office in Manchester and upgrades to the factories. The successful delivery of Manchester Airport and Greengate, Manchester have helped build a strong foundation for future works in the North West. The group aims to expand the project portfolio in the region over the coming years. The group continues to monitor potential risks and uncertainties posed by Brexit. Following a detailed review there has been no change to the group’s work winning strategy, or any significant material impact on current live projects or staff retention. Forward exchange contracts have been placed for additional euros to mitigate any currency exposure on live projects.
A principal risk facing specialist contractors is ensuring that contracts are completed to a first class quality, on time and within budget. Close management review and monitoring of projects ensures that this is achieved. The management systems of the group have been reviewed, audited and have successfully been awarded certification for ISO9001, 14001 and 18001 by TÜV SUD. The group’s uncompromising approach to the health and safety of every employee, client and supplier is a key cornerstone of the group’s belief system. The Directors and management teams comprehensively review safety performance as a priority at all management meetings. The group has credit insurance provided by TMHCC on all of its customers to minimise exposure to bad debts.
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LINDNER EXTERIORS HOLDING LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
Brexit and Covid-19 both carry significant economic implications for the UK. Whilst the situation continues to evolve, the group is monitoring developments closely and looking to mitigate the risk that it may have on the group’s employees, customers and supply chain. It is too early to fully assess any impact on the operational and financial performance of the group. The group’s balance sheet remains strong and is well placed to manage its business risks and meet its financial targets successfully, despite this uncertainty.
As a leading building envelope contractor, the group recognises that its activity on construction sites and at offices, impacts upon the environment and it is the intention to reduce this impact in every part of the business.
To assist in reducing its impacts, the group has installed video conferencing facilities at each of its offices and factories. This has reduced travel between offices significantly which, besides lowering energy use, also reduces CO2 emissions and the carbon footprint. The group is totally committed to complying with legal and other requirements through formalised review and updating procedures. The group is committed to continual improvement in its environmental performance and has a number of objectives and targets which at this time revolve around the carbon footprint: • understanding the supply chain carbon footprint • reducing staff travel between offices • reducing the group carbon footprint.
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LINDNER EXTERIORS HOLDING LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
This year we have been delighted to retain Investors in People silver status - recognising endeavours to build capability, recognise, involve and engage the team to create sustainable success.
New personnel have been added to the team, as well as developing existing talent. The first rotational apprenticeship programme has culminated in placement for scheme graduates in the commercial, planning and operational teams. Having committed to review flexible working practices to ensure equality of access to working and learning opportunities, development opportunities continue to be offered and promoted to all teams. A record number of people have undertaken professional development, as well joining the essential and aspiring manager programme. The group has started to work on developing a comprehensive and sector specific management programme as well working on opportunities to add to site based teams, which is anticipated will result in a robust apprenticeship programme being introduced this year. The group briefing activity has continued across all sites and the communication and engagement initiatives have included team days for all personnel across the country. A very successful pilot of a dedicated site based team operational day has taken place as well as communication events for factory teams. The group has worked hard to extend its benefit offerings to the site and factory based teams. The group has also maintained its support of interest in careers in our sector by offering work experience programmes. A second international placement took place in the summer and the student was involved in the group’s well-being activity. Wellbeing was promoted throughout the year through awareness events and by extending the number of Mental Health First Aiders in the business. In order to identify opportunities to add value and deliver continuous improvement the group has moved the vast majority of communications to an electronic basis - ensuring that the dispersed teams can access group information in real time and enabling them to have electronic access to their pay and benefit information. Mindful of changes to legislation and wishing to be at the forefront of best practice the group has introduced new contractual documentation for its personnel, as well as providing structure to the reward and recognition programmes. The group has collated its charitable activities (identified and promoted by team members) into a cohesive programme of corporate social responsibility. This has enabled payroll giving, charity days and the corporate support of employee nominated charities. All such initiatives contribute to ensuring that the group is a great place to work and enables all teams to develop and engage in a rewarding career with the business.
The Directors have monitored the progress of the company’s strategic elements by reference to certain financial key performance indicators:
2019 2018 Gross margin % 14.82 15.80 Net margin % 0.79 4.52 Current ratio 2.54 1.88 Further information regarding the directors’ duty to promote the success of the group is included in the Section 172 statement below.
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LINDNER EXTERIORS HOLDING LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
This statement, which is reported for the first time, explains how the Directors have engaged with employees, suppliers, customers and other stakeholders; and have had regard to employee interests, the need to foster the group’s business relationships with suppliers, customers and other, and the impact of the group’s operations on the community and the environment.
General confirmation of Directors’ duties The Board’s focus is on activities that enable it to promote shareholders’ interests. This includes the development of strategy, the monitoring of executive action and the consideration of ongoing board and management succession. When making decisions, each Director ensures that he acts in good faith in a way which promotes the group’s success, for the benefit of its members as a whole. In doing so each Director has regard to the following (but not limited to) matters : The likely consequences of any decision in the long term The Directors understand the construction business and also the evolving market in which it operates. The group is totally focussed on meeting the needs of the UK Market. To this end, the group continually invests in developing solutions which provide first class processes from design through to installation. This investment aims to keep the group as the preferred envelope provider of choice for its customers and will enable the group to provide a sustainable level of turnover and return for its shareholders. More details on this are included in the Strategic Report. Long term planning is reviewed at Board meetings as well as at other separate meetings during the year, when the consequences of decisions and future plans are considered. The interests of the group’s employees The Directors recognise that the group's employees are fundamental and core to the business and the delivery of the group's goals and ambitions. The success of the business depends upon the group attracting, retaining and motivating employees. We need to ensure that the group remains a responsible employer, from the pay as well as benefits to the group's health, safety and workplace environment. The group’s first Core value is uncompromising safety which is paramount to everything the group does. To this end the group goes beyond legal compliance and this is demonstrated by the numerous certifications held. These include: the international standards ISO 45001 (H&S), ISO 9001 (quality) and ISO 14001 (Environment), Achilles Building Confidence, CHAS Premium Plus, Constructionline Gold, and RISQS. In addition to these standards, the group sets annual improvement programmes which includes building upon the group's very successful behavioural safety scheme and mental health first aid that is available to the group's staff, operatives and the contractors that work for the group. The Directors consider the implications of decisions on the group's employees whenever relevant and feasible. The need to foster the group’s business relationships with suppliers, customers and others Delivering the group's strategy requires strong mutually beneficial relationships with suppliers, sub-contractors, customers, and joint-venture partners. These relationships have built up over many years through industry events, charity fund raising, supplier workshops, close collaboration on projects and other reasons designed to engage with these stakeholders. Particular emphasis is placed upon health, safety and quality. The culture and performance of the group's
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LINDNER EXTERIORS HOLDING LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
customers and sub-contractors is monitored continually using detailed statistics and reporting to ensure standards are maintained at the highest level. If issues arise they are dealt with immediately at the appropriate level internally or with the customer, supplier or contractor. This is one of many measures which the group uses to help foster relationships with these stakeholders.
The Directors regularly receive information updates on a variety of topics that indicate and inform how these stakeholders have been engaged. The impact of the group’s operations on the community and the environment The Directors consider carefully the impact of the group's operations on the community and the environment. The group works closely with its customers and supply chain to enable it to use the most environmentally friendly products. The group has strong quality systems and controls to ensure this is achieved. The group has developed an environmental management system in accordance with ISO14002:2004. This system is central to minimising the impact of the group activities on the environment. The Directors commitment and focus on Health and Safety is described above pursuant to ‘the interests of the group’s employees’. This is also relevant to the impact of the group’s operations on the community and environment. The desirability of the group maintaining a reputation for high standards of business conduct The Directors aim to meet the highest standards for the group's reputation and business conduct. Within the market the group works, its reputation is key and all standards have to be maintained throughout the business to achieve this. Being part of the Lindner Group Corporate social responsibility programme is central to the working culture and this extends across the group's health and safety responsibilities, community activities and environmental systems. The Directors recognise that fulfilling the group's moral, financial and legal obligations to both its internal and external stakeholders will bring significant and tangible benefits to the business. The business operates within the framework of its four Core Values Uncompromising Safety * Meticulous Efficiency * Dependable Teamwork * Focused Leadership The group aligns its Core Values, Vision, Mission and business strategy with the social and economic needs of its stakeholders, whilst embedding responsible and ethical business policies and practices into everything it does. The need to act fairly as between members of the company The company only has one shareholder and so will always act fairly between members. The Directors consider which course of action best enables delivery of the strategy with regard to the long-term, taking into consideration the impact on stakeholders. This will normally be in the best long term interests of most of its stakeholders, however although the Directors will act fairly regarding the company's shareholder, they are not required to balance the company’s interest with those of other external stakeholders.
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LINDNER EXTERIORS HOLDING LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
This report was approved by the board on 17 August 2020
and signed on its behalf.
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LINDNER EXTERIORS HOLDING LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2019
The directors present their report and the financial statements for the year ended 31 December 2019.
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;
∙
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
∙
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 £
393,622
(2018 -
£
4,003,048
)
.
No dividends were paid in 2019 or 2018.
The directors who served during the year were:
The outlook for 2020, although challenging, is looking positive. The strength of the Statement of Financial Position enables the group to take a longer term view to invest in its future. The group is well placed to manage its business risks and meet its financial targets successfully. Brexit and Covid19 are significant events for the UK and carry significant economic implications. The group is monitoring developments closely and is looking to mitigate the risk that it may have on the group’s employees, customers and supply chain.
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LINDNER EXTERIORS HOLDING LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
The group continues to look for improved methods of working and new products to enhance its portfolio and reputation. Investment and training within our BIM ability and 3D/4D modelling continues to be a key development topic running through 2020.
As stated previously the group is proud to be accredited to Investors in People and encouraged employees involvement and contribution through its staff committee, operative committee and group intranet.
Dissemination of group information and discussions are held through regular departmental meetings and staff lunches as well as individual staff performance reviews. The group encourages and develops all members of staff to realise their maximum potential. Wherever possible, vacancies are filled from within the immediate group and the Lindner UK Group and adequate opportunities for internal promotion are created. The Board is committed to a systematic training policy as stated previously and the group has a comprehensive training and development programme creating the opportunity for employees to maintain and improve their performance and to develop their potential to a maximum level of attainment. In this way, staff will make their best possible contribution to the organisation’s success. The group treats all people equally, fairly, with respect and without prejudice. Decisions about people’s employment with the group are based on ability, performance and qualifications. This principle also applies when the group makes decisions about development, promotion, pay and benefits. The group does not tolerate unfair treatment or discrimination at work based on ethnicity, gender, age, religion, disability or sexual orientation.
We have continued to keep all of our stakeholders, which includes our clients and supply chain regularly informed of our progress.
Each of the persons who are
directors at the time when this Directors' Report is approved has confirmed that:
The auditor, MHA MacIntyre Hudson, will be propsoed for reappointment in accordance with section 487(2) of the Companies Act 2006
This report was approved by the board on
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LINDNER EXTERIORS HOLDING LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF LINDNER EXTERIORS HOLDING LIMITED
We have audited the financial statements of Lindner Exteriors Holding Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 December 2019, which comprise the Group Statement of Comprehensive Income, the Group and Company Statements of Financial Position, the Group Statement of Cash Flows, the Group and 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:
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.
We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:
∙
the directors
' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or
∙
the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the Group's or the parent Company's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.
The directors are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Auditors' Report thereon. 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.
In connection with our audit of the financial statements, 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
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LINDNER EXTERIORS HOLDING LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF LINDNER EXTERIORS HOLDING LIMITED (CONTINUED)
knowledge obtained in 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 there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
In our opinion, based on the work undertaken in the course of the audit:
∙
the information given in the Group Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙
the Group Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the Group and the parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Directors' Report.
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:
As explained more fully in the Directors' Responsibilities Statement on page 8, 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.
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LINDNER EXTERIORS HOLDING LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF LINDNER EXTERIORS HOLDING LIMITED (CONTINUED)
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at:
www.frc.org.uk/auditorsresponsibilities
. This description forms part of our Auditors' Report.
This report is made solely to the Company's members
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 for our audit work, for this report, or for the opinions we have formed.
for and on behalf of
Statutory Auditor
6th Floor
2 London Wall Place
EC2Y 5AU
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LINDNER EXTERIORS HOLDING LIMITED
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2019
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LINDNER EXTERIORS HOLDING LIMITED
REGISTERED NUMBER:
07579925
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT
31 DECEMBER 2019
The financial statements were approved and authorised for issue by the board and were signed on its behalf on 17 August 2020
.
The notes on pages 23 to 39 form part of these financial statements.
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LINDNER EXTERIORS HOLDING LIMITED
REGISTERED NUMBER:
07579925
COMPANY STATEMENT OF FINANCIAL POSITION
AS AT
31 DECEMBER 2019
The financial statements were approved and authorised for issue by the board and were signed on its behalf on
The notes on pages 23 to 39 form part of these financial statements.
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LINDNER EXTERIORS HOLDING LIMITED
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED
31 DECEMBER 2019
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LINDNER EXTERIORS HOLDING LIMITED
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED
31 DECEMBER 2018
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LINDNER EXTERIORS HOLDING LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED
31 DECEMBER 2019
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LINDNER EXTERIORS HOLDING LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED
31 DECEMBER 2018
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LINDNER EXTERIORS HOLDING LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2019
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LINDNER EXTERIORS HOLDING LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
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LINDNER EXTERIORS HOLDING LIMITED
CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 DECEMBER 2019
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LINDNER EXTERIORS HOLDING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
Lindner Exteriors Holding Limited is a private company, limited by shares, incorporated in England and Wales within the United Kingdom. The address of the registered office and the registration number are given in the company information page of these financial statements.
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 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 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 Statement of Financial Position, 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.
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 and the impact of subsequent events in making their assessment. The COVID-19 pandemic and the ensuing economic shutdown has had a significant impact on the group's operations. Although the construction sector has remained open to business throughout the pandemic clients and main contractors had selected sites closed from further construction activity with an inevitable reduction in the group's revenue during the year ended 31 December 2020. The Directors have performed a robust anlaysis of forecast future cash flows taking into account the potential impact on the business arising from the impact of COVID-19. This analysis also consideres the effectiveness of available measures to assist in mitigating the impact.
Based on these assessments and having regard to the resources available to the group, the Directors have concluded that there is no material uncertainty and that they can continue to adopt the going concern basis in preparing the annual report and financial statements.
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LINDNER EXTERIORS HOLDING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
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:
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:
Rentals paid under operating leases are charged to the Consolidated Statement of Comprehensive Income on a straight line basis over the lease term.
Interest income is recognised in the Consolidated Statement of Comprehensive Income using the effective interest method.
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 the Consolidated Statement of Comprehensive Income when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of Financial Position. The assets of the plan are held separately from the Group in independently administered funds.
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LINDNER EXTERIORS HOLDING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
2.
Accounting policies (continued)
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, which is twenty years.
The Group adds to the carrying amount of an item of fixed assets the cost of replacing part of such an item when that cost is incurred, if the replacement part is expected to provide incremental future benefits to the Group. The carrying amount of the replaced part is derecognised. Repairs and maintenance are charged to profit or loss during the period in which they are incurred.
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line 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 the Consolidated Statement of Comprehensive Income.
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LINDNER EXTERIORS HOLDING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
2.
Accounting policies (continued)
Assets that are subject to depreciation or amortisation are assessed at each balance sheet date to determine whether there is any indication that the assets (or cash-generating unit to which the asset has been allocated) is tested for impairment. An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset's (of CGU's) fair value less costs to sell and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (CGU's). Non-financial assets that have been previously impaired are reviewed at each balance sheet date to assess whether there is any indication that the impairment losses recognised in prior periods may no longer exist or may have decreased.
The group performs contract activity in the construction sector. When the outcome of a construction contract can be estimated reliably in terms of its stage of completion, future costs to complete and collectability of billings, the group recognises revenue and expenses on construction contracts by reference to the stage of completion of the contract activity at the end of the reporting period. The stage of completion is determined on the basis of the work performed and attributable value confirmed by the customer's surveyor as a proportion of the anticipated total contract value.
Investments in subsidiaries are measured at cost less accumulated impairment.
In the consolidated accounts, interests in associated undertakings are accounted for using the equity method of accounting. Under this method an equity investment is initially recognised at the transaction price (including transaction costs) and is subsequently adjusted to reflect the investors share of the profit or loss, other comprehensive income and equity of the associate. The Consolidated Statement of Comprehensive Income includes the Group's share of the operating results, interest, pre-tax results and attributable taxation of such undertakings applying accounting policies consistent with those of the Group. In the Consolidated Statement of Financial Position, the interests in associated undertakings are shown as the Group's share of the identifiable net assets, including any unamortised premium paid on acquisition. Any premium on acquisition is dealt with in accordance with the goodwill policy.
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LINDNER EXTERIORS HOLDING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
2.
Accounting policies (continued)
Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first outbasis. Work in progress and finished goods include labour and attributable overheads.
At each reporting date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.
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.
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.
Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or in case of an out-right short-term loan that is not at market rate, the financial asset or liability is measured, initially at the present value of future cash flows discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost.
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Consolidated Statement of Comprehensive Income.
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LINDNER EXTERIORS HOLDING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
2.
Accounting policies (continued)
For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.
For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the Group would receive for the asset if it were to be sold at the reporting date.
Financial assets and liabilities are offset and the net amount reported in the Statement of Financial Position when there is an 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.
There were no significant judgements made by management in applying the accounting policies of the group. The key estimation uncertainty impacting the group's activities relates to the measurement of the performance of long term contracts. All revenue in the year relates to long term contracts in the construction industry and management is required to make estimates regarding the future performance of those contracts in determining its current year performance. The carrying amount at the year-end of assets and liabilities relating to long term contracts are disclosed in notes 15 and 17 of the financial statements.
Analysis of turnover by country of destination:
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LINDNER EXTERIORS HOLDING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
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LINDNER EXTERIORS HOLDING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
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LINDNER EXTERIORS HOLDING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
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LINDNER EXTERIORS HOLDING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
10.
Taxation (continued)
There were no factors that may affect future tax changes.
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 profit after tax of the parent Company for the year was £
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LINDNER EXTERIORS HOLDING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
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LINDNER EXTERIORS HOLDING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
13.
Tangible fixed assets (continued)
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LINDNER EXTERIORS HOLDING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
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LINDNER EXTERIORS HOLDING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
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LINDNER EXTERIORS HOLDING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
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LINDNER EXTERIORS HOLDING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
Profit and loss account
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LINDNER EXTERIORS HOLDING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
The ultimate parent company and parent undertaking of the largest group for which consolidated financial statements are drawn up, and of which the company is a member, is Lindner Group KG, its registered office is Bahnhofstrasse 29, 94424 Arnstorf, Germany. Copies of the consolidated financial statements are available from the registered office.
The smallest group for which consolidated financial statements are drawn up, and of which the company is a member, is Lindner Fassaden GmbH, its registered office is Bahnhofstrasse 29, 94424 Arnstorf, Germany. Copies of the consolidated financial statements are available the registered office. In the opinion of the directors the parent company is Lindner Fasaden GmbH. In the opinion of the directors the ultimate controlling party is Lindner Group KG.
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