Company Registration No. 08321265 (England and Wales)
LAIDLAW ESTATES (UK) LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
LAIDLAW ESTATES (UK) LIMITED
COMPANY INFORMATION
Director
Mr M J Waugh
(Appointed 8 March 2019)
Company number
08321265
Registered office
3rd Floor
33 Robert Adam Street
London
W1U 3HR
Auditor
Azets Audit Services
Titanium 1
King's Inch Place
Renfrew
PA4 8WF
LAIDLAW ESTATES (UK) LIMITED
CONTENTS
Page
Strategic report
1
Director's report
2
Director's responsibilities statement
3
Independent auditor's report
4 - 5
Profit and loss account
6
Statement of comprehensive income
7
Balance sheet
8
Statement of changes in equity
9
Statement of cash flows
10
Notes to the financial statements
11 - 20
LAIDLAW ESTATES (UK) LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2019
- 1 -
The director presents the strategic report for the year ended 31 December 2019.
Fair review of the business
The principal activity of the company continued to be that of real estate management and contractors on property development.
The financial key performance indicators for the year show a profit
before tax
of £0
.
03
m
(2018 - £
1.
73
m
) on turnover of £5.3
m
(2018 - £38
.
15
m
). The company has a net balance sheet value of £2.3
m
at 31 December 2019 (2018 - £3
.
43
m
).
Principal risks and uncertainties
The management of the business and execution of the company strategy is subject to a number of risks.
The company's principal financial instruments comprise of cash and short term funding, the main purpose of which is to provide finance for normal operations.
The company has various other financial instruments such as trade debtors and creditors that arise directly from its operations.
The main risk arising from these operations is liquidity risk.
Liquidity risk
The company is funded by retained profits and other short term funding sources. The company's policy is to ensure that any projected funding requirement is covered by available resources. This mix of funding offers flexibility and cost effectiveness to match the needs of the company.
Risks and uncertainties - Global pandemic
Following the global outbreak of the COVID-19 virus subsequent to the year end, the company is exposed to the following risks:
-
The company works exclusively for fellow group and related party entities, whose risks are tied predominantly to the UK property market. As such, there is a risk of a fall in revenue and decreased cash flow due to reduced trade with fellow group and related party entities as a result of changes in the UK property market.
Although it is not possible to reliably estimate the length or severity of the outbreak, at the date of signing, the company has not been adversely affected by the pandemic and is following all Government Guidelines in response to the pandemic.
Mr M J Waugh
Director
6 November 2020
LAIDLAW ESTATES (UK) LIMITED
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 DECEMBER 2019
- 2 -
The director presents his annual report and financial statements for the year ended 31 December 2019.
Principal activities
The principal activity of the company continued to be that of real estate management and contractors on property development.
Director
The director who held office during the year and up to the date of signature of the financial statements was as follows:
Mr S Prior
(Resigned 8 March 2019)
Mr M J Waugh
(Appointed 8 March 2019)
Results and dividends
The results for the year are set out on page 6.
Ordinary dividends were paid amounting to £1,500,000. The director does not recommend payment of a final dividend.
Auditor
The auditor, Azets Audit Services (formerly trading as Campbell Dallas Audit Services) is deemed to be reappointed under section 487(2) of the Companies Act 2006.
Strategic report
The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of
financial instruments and associated risks.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
On behalf of the board
Mr M J Waugh
Director
6 November 2020
LAIDLAW ESTATES (UK) LIMITED
DIRECTOR'S RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2019
- 3 -
The director is responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the director is required to:
-
select suitable accounting policies and then apply them consistently;
-
make judgements and accounting estimates that are reasonable and prudent;
-
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The director is 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 enable them to ensure that the financial statements comply with the Companies Act 2006. He is 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.
LAIDLAW ESTATES (UK) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF LAIDLAW ESTATES (UK) LIMITED
- 4 -
Opinion
We have audited the financial statements of Laidlaw Estates (UK) Limited (the 'company') for the year ended 31 December 2019 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, 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 FRS 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 company's affairs as at 31 December 2019 and of its 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
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 UK, including the FRC’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
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 director's use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or
-
the director has not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the 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 director is responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s 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 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.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit
:
-
the information given in the strategic report and the director's r
eport for the financial year for which the financial statements are prepared is consistent with the financial statements
; and
-
the strategic report and the director's report have been prepared in accordance with applicable legal requirements.
LAIDLAW ESTATES (UK) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF LAIDLAW ESTATES (UK) LIMITED
- 5 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identifie
d
material misstatements in the strategic report and the director's
r
eport
.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
-
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
-
the financial statements are not in agreement with the accounting records and returns; or
-
certain disclosures of director's remuneration specified by law are not made; or
-
we have not received all the information and explanations we require for our audit.
Responsibilities of director
As explained more fully in the director's
r
esponsibilities
s
tatement, the director is 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 director determines 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 director is responsible for assessing the 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 director either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
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.
A further description of our responsibilities for the audit of the financial statements is located on the
Financial Reporting Council’s website at: http://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 him 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.
Greig McKnight (Senior Statutory Auditor)
for and on behalf of Azets Audit Services
6 November 2020
Chartered Accountants
Statutory Auditor
Titanium 1
King's Inch Place
Renfrew
PA4 8WF
LAIDLAW ESTATES (UK) LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2019
- 6 -
2019
2018
Notes
£
£
Turnover
5,340,970
38,146,448
Cost of sales
(4,132,868)
(32,317,807)
Gross profit
1,208,102
5,828,641
Administrative expenses
(1,170,371)
(4,101,026)
Operating profit
3
37,731
1,727,615
Interest payable and similar expenses
6
(3,676)
-
Profit before taxation
34,055
1,727,615
Tax on profit
7
327,760
(327,760)
Profit for the financial year
361,815
1,399,855
The profit and loss account has been prepared on the basis that all operations are continuing operations.
LAIDLAW ESTATES (UK) LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2019
- 7 -
2019
2018
£
£
Profit for the year
361,815
1,399,855
Other comprehensive income
-
-
Total comprehensive income for the year
361,815
1,399,855
LAIDLAW ESTATES (UK) LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2019
31 December 2019
- 8 -
2019
2018
Notes
£
£
£
£
Fixed assets
Tangible assets
9
59
79
Current assets
Debtors
10
1,518,992
4,007,712
Cash at bank and in hand
1,328,235
3,570,361
2,847,227
7,578,073
Creditors: amounts falling due within one year
11
(553,539)
(4,146,220)
Net current assets
2,293,688
3,431,853
Total assets less current liabilities
2,293,747
3,431,932
Capital and reserves
Called up share capital
14
1
1
Profit and loss reserves
2,293,746
3,431,931
Total equity
2,293,747
3,431,932
The financial statements were approved by the board of directors and authorised for issue on 6 November 2020 and are signed on its behalf by:
Mr M J Waugh
Director
Company Registration No. 08321265
LAIDLAW ESTATES (UK) LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2019
- 9 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 January 2018
1
2,032,076
2,032,077
Year ended 31 December 2018:
Profit and total comprehensive income for the year
-
1,399,855
1,399,855
Balance at 31 December 2018
1
3,431,931
3,431,932
Year ended 31 December 2019:
Profit and total comprehensive income for the year
-
361,815
361,815
Dividends
8
-
(1,500,000)
(1,500,000)
Balance at 31 December 2019
1
2,293,746
2,293,747
LAIDLAW ESTATES (UK) LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2019
- 10 -
2019
2018
Notes
£
£
£
£
Cash flows from operating activities
Cash (absorbed by)/generated from operations
18
(437,480)
2,717,686
Interest paid
(3,676)
-
Income taxes paid
(300,970)
(171,392)
Net cash (outflow)/inflow from operating activities
(742,126)
2,546,294
Financing activities
Dividends paid
(1,500,000)
-
Net cash used in financing activities
(1,500,000)
-
Net (decrease)/increase in cash and cash equivalents
(2,242,126)
2,546,294
Cash and cash equivalents at beginning of year
3,570,361
1,024,067
Cash and cash equivalents at end of year
1,328,235
3,570,361
LAIDLAW ESTATES (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
- 11 -
1
Accounting policies
Company information
Laidlaw Estates (UK) Limited is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
3rd Floor, 33 Robert Adam Street, London, W1U 3HR.
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.
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 £.
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 director is required to prepare the statutory financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. In satisfaction of this responsibility the director has considered the company's ability to meet its liabilities as they fall due.
true
The company also pays special attention to the recent COVID-19 outbreak and the associated impact on the business. The key risks and uncertainties to the company have been reviewed by the director and include:
-
• The company works exclusively for fellow group and related party entities, whose risks are tied predominantly to the UK property market. As such, there is a risk of a fall in revenue and decreased cash flow due to reduced trade with fellow group and related party entities as a result of changes in the UK property market.
Although it is not possible to reliably estimate the length or severity of the outbreak, at the date of signing, the company has not been adversely affected by the pandemic and is following all Government Guidelines in response to the pandemic.
The current and future financial position of the company and its liquidity position have been reviewed by the director. As a result, the director is confident that the company's cash reserves and retained profits will provide sufficient headroom allow the company to meet its liabilities as they fall due, having considered any additional requirements arising in relation to the COVID-19 pandemic. As such, the director considers that it is appropriate to prepare the financial statements on the going concern basis.
1.3
Turnover
Turnover represents net invoiced asset management and contract charges, excluding value added tax.
Asset management charges are recognised over the relevant period. Contract costs recharged are recognised as costs are incurred.
1.4
Tangible fixed assets
Tangible fixed assets
are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
LAIDLAW ESTATES (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
1
Accounting policies
(Continued)
- 12 -
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:
Office equipment
25% on net book value
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
.
1.5
Impairment of fixed assets
At each reporting
period
end date, the
company
reviews the carrying amounts of its tangible
assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company
estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit)
in
prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.6
Cash and cash equivalents
Cash and cash equivalents
are basic financial assets
and
include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.7
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.
Financial instruments are recognised in the company's balance sheet 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.
LAIDLAW ESTATES (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
1
Accounting policies
(Continued)
- 13 -
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest
method 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.
Financial assets classified as receivable within one year are not amortised.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Impairment of financial assets
Financial assets, other than those
held
at
fair value through profit and loss
, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected.
If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when
the company
transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
LAIDLAW ESTATES (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
1
Accounting policies
(Continued)
- 14 -
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from
fellow group companies and preference shares that are classified as debt, are
initially recognised at transaction price unless the arrangement constitutes a
financing transaction, where the debt instrument is measured at the present value of
the future
paymen
ts discounted at a market rate of interest.
Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective
interest rate method.
Trade creditors
are obligations to pay for goods or services that have been acquired
in the ordinary course of business from suppliers. A
m
ounts payable are classified as
current liabilities if payment is due within one year or less. If not, they are presented
as non-current liabilities. Trade creditors are recognised initially at transaction price
and subsequently measured at amortised cost using the effective interest method.
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts,
are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are
s
ubsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as
being measured at
fair value th
r
ough profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations
expire or are discharged or cancelled.
1.8
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.9
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.10
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
LAIDLAW ESTATES (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
1
Accounting policies
(Continued)
- 15 -
1.11
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation
in the period
are included in profit or loss.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the director is required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
3
Operating profit
2019
2018
Operating profit for the year is stated after charging:
£
£
Exchange differences apart from those arising on financial instruments measured at fair value through profit or loss
-
957
Fees payable to the company's auditor for the audit of the company's financial statements
6,750
7,250
Depreciation of owned tangible fixed assets
20
26
4
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2019
2018
Number
Number
4
4
Their aggregate remuneration comprised:
2019
2018
£
£
Wages and salaries
776,665
3,182,174
Social security costs
102,063
432,840
Pension costs
34,908
19,338
913,636
3,634,352
LAIDLAW ESTATES (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
- 16 -
5
Director's remuneration
2019
2018
£
£
Remuneration for qualifying services
432,447
2,800,984
Company pension contributions to defined contribution schemes
6,297
10,703
438,744
2,811,687
Remuneration disclosed above include the following amounts paid to the highest paid director:
2019
2018
£
£
Remuneration for qualifying services
304,250
2,800,984
Company pension contributions to defined contribution schemes
202
10,703
6
Interest payable and similar expenses
2019
2018
£
£
Other finance costs:
Other interest
3,676
-
7
Taxation
2019
2018
£
£
Current tax
UK corporation tax on profits for the current period
-
327,760
Adjustments in respect of prior periods
(327,760)
-
Total current tax
(327,760)
327,760
LAIDLAW ESTATES (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
7
Taxation
(Continued)
- 17 -
The actual (credit)/charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2019
2018
£
£
Profit before taxation
34,055
1,727,615
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2018: 19.00%)
6,470
328,247
Tax effect of expenses that are not deductible in determining taxable profit
1,201
-
Tax effect of income not taxable in determining taxable profit
-
(493)
Group relief
(7,914)
-
Deferred tax not recognised
243
6
Adjustments to tax charge in respect of previous periods
(327,760)
-
Taxation (credit)/charge for the year
(327,760)
327,760
8
Dividends
2019
2018
£
£
Interim paid
1,500,000
-
9
Tangible fixed assets
Office equipment
£
Cost
At 1 January 2019 and 31 December 2019
331
Depreciation and impairment
At 1 January 2019
252
Depreciation charged in the year
20
At 31 December 2019
272
Carrying amount
At 31 December 2019
59
At 31 December 2018
79
LAIDLAW ESTATES (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
- 18 -
10
Debtors
2019
2018
Amounts falling due within one year:
£
£
Trade debtors
434,630
214,138
Corporation tax recoverable
331,457
-
Other debtors
412,983
221,113
Prepayments and accrued income
339,922
3,572,461
1,518,992
4,007,712
11
Creditors: amounts falling due within one year
2019
2018
£
£
Trade creditors
160,570
6,274
Corporation tax
-
297,273
Other taxation and social security
29,134
271,744
Other creditors
5,898
1,633
Accruals and deferred income
357,937
3,569,296
553,539
4,146,220
12
Secured Debt
Metro Bank PLC holds a fixed charge on bank deposits of the company.
13
Retirement benefit schemes
2019
2018
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
34,908
19,338
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.
14
Share capital
2019
2018
£
£
Ordinary share capital
Issued and fully paid
1 Ordinary share of £1 each
1
1
Ordinary shares rank equally for voting rights, dividends and distribution purposes. The shares are not redeemable.
LAIDLAW ESTATES (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
- 19 -
15
Events after the reporting date
Disclosure with regards to the impact of the COVID-19 pandemic can be seen in note 1.2 to these financial statements.
16
Related party transactions
Transactions with related parties
During the year the company entered into the following transactions with related parties:
Sales
2019
2018
£
£
Other related parties
99,875
41,250
The following amounts were outstanding at the reporting end date:
2019
2018
Amounts due from related parties
£
£
Other related parties
796,576
385,431
Other information
The amounts outstanding are unsecured
, interest free
and will be settled in cash.
17
Ultimate controlling party
The immediate parent company is Laidlaw Estates Limited, a company registered in the Isle of Man. It's registered office is 1st Floor, Viking House, St Pauls Square, Ramsey, Isle of Man, IM8 1GB.
The Company's ultimate controlling party is Lord I A S Laidlaw.
18
Cash (absorbed by)/generated from operations
2019
2018
£
£
Profit for the year after tax
361,815
1,399,855
Adjustments for:
Taxation (credited)/charged
(327,760)
327,760
Finance costs
3,676
-
Depreciation and impairment of tangible fixed assets
20
26
Movements in working capital:
Decrease in debtors
2,820,177
2,334,762
Decrease in creditors
(3,295,408)
(1,344,717)
Cash (absorbed by)/generated from operations
(437,480)
2,717,686
LAIDLAW ESTATES (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
- 20 -
19
Analysis of changes in net funds
1 January 2019
Cash flows
31 December 2019
£
£
£
Cash at bank and in hand
3,570,361
(2,242,126)
1,328,235
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