L.S. Transmission Consultancy Limited - Limited company accounts 18.2

REGISTERED NUMBER: 04191630 (England and Wales)

L.S. Transmission Consultancy Limited

Group Strategic Report, Report of the Directors and

Consolidated Financial Statements for the Year Ended 30th June 2018

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

5

Consolidated Statement of Comprehensive Income

7

Consolidated Balance Sheet

8

Company Balance Sheet

9

Consolidated Statement of Changes in Equity

10

Company Statement of Changes in Equity

11

Consolidated Cash Flow Statement

12

Notes to the Consolidated Cash Flow Statement

13

Notes to the Consolidated Financial Statements

14

DIRECTORS:

N Minns

M J Straker

P Papanastasiou

SECRETARY:

N Minns

REGISTERED OFFICE:

Yorkshire House

York Road

Little Driffield

Driffield

East Yorkshire

YO25 5XA

REGISTERED NUMBER:

04191630 (England and Wales)

AUDITORS:

Smailes Goldie

Chartered Accountants

Statutory Auditor

Regent's Court

Princess Street

Hull

East Yorkshire

HU2 8BA

The directors present their strategic report of the company and the group for the year ended 30th June 2018.

REVIEW OF BUSINESS

This has been a year of consolidation following acquisitions and has seen the company adapt to an industry

wide downturn. We have been pleased to show healthy profit despite this. We have continued to strengthen

our team and we now have a robust management team in place who have made a significant contribution to

the business already. We have further work to do to improve our systems and processes in some areas of

the business but much progress has been made over the last year.

PRINCIPAL RISKS AND UNCERTAINTIES

Our principal risk is competition. With the team that we have established, we feel well equipped to deal with

these competitive pressures. The economic uncertainty surrounding Brexit remains an unknown. Any UK or

global economic slowdown will be challenged but it remains to be seen how this situation will play out.

STRATEGIC DEVELOPMENTS

The improvements we have made to the services offered by the Group leave us ideally placed for the network

upgrades required in the future. We continue to develop the management team and believe that this strategy

will ensure the long-term health of the Group.

CAPITAL EXPENDITURE

We have again invested significantly in software to modernise the business and its services.

BANK FACILITIES

We have been well supported by HSBC Bank plc since the plan to expand the Group was implemented, with

medium term loan and overdraft facilities having been agreed with them.

KEY PERFORMANCE INDICATORS

Given the straightforward nature of the business, the directors have been of the opinion that analysis using

KPI's was not necessary, but, now feel the time is right to develop strategic KPI's that will benefit business

and the senior management performance.

ON BEHALF OF THE BOARD:

N Minns - Director

27th March 2019

The directors present their report with the financial statements of the company and the group for the year

ended 30th June 2018.

The comparative figures include only the post aquisition results of subsidiary companies which where aquired

during year and as such are not entirely comparable.

PRINCIPAL ACTIVITY

The principal activity of the group in the year under review was that of engineering related scientific and

technical consultancy.

DIVIDENDS

The total distribution of dividends for the year ended 30th June 2018 will be £474,000.

DIRECTORS

The directors shown below have held office during the whole of the period from 1st July 2017 to the date of

this report.

N Minns

M J Straker

P Papanastasiou

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Group Strategic Report, the Report of the Directors and the

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 United Kingdom Generally

Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). 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 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 directors are responsible for keeping adequate accounting records that are sufficient to show and explain

the company's and the group's transactions and disclose with reasonable accuracy at any time the financial

position of the company and the group and 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.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the

Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps

that he ought to have taken as a director in order to make himself aware of any relevant audit information and

to establish that the group's auditors are aware of that information.

AUDITORS

The auditors, Smailes Goldie, will be proposed for re-appointment at the forthcoming Annual General

Meeting.

ON BEHALF OF THE BOARD:

N Minns - Director

27th March 2019

Opinion

We have audited the financial statements of L.S. Transmission Consultancy Limited (the 'parent company')

and its subsidiaries (the 'group') for the year ended 30th June 2018 which comprise the Consolidated

Statement of Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated

Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow

Statement and Notes to the Consolidated Cash Flow Statement, 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 Financial Reporting

Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United

Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the group's and of the parent company affairs as at 30th June 2018 and of the group's profit for the year then ended;

-	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

-	have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

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 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 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 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.

Other information

The directors are responsible for the other information. The other information comprises the information in the

Group Strategic Report and the Report of the Directors, but does not include the financial statements and our

Report of the Auditors 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.

Opinion on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

-	the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

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 Report of the Directors.

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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or

-	the parent company financial statements are not in agreement with the accounting records and returns; or

-	certain disclosures of directors' remuneration specified by law are not made; or

-	we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page three, 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 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.

Auditors' 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 a Report of the Auditors 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

Report of the Auditors.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of

the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's

members those matters we are required to state to them in a Report of the Auditors 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.

Martin Overfield FCA (Senior Statutory Auditor)

for and on behalf of Smailes Goldie

Chartered Accountants

Statutory Auditor

Regent's Court

Princess Street

Hull

East Yorkshire

HU2 8BA

27th March 2019

TURNOVER

3

8,162,544

7,506,380

Cost of sales

6,477,487

5,580,781

GROSS PROFIT

1,685,057

1,925,599

Administrative expenses

1,168,887

493,437

OPERATING PROFIT

5

516,170

1,432,162

Interest receivable and similar income

2,038

5,639

518,208

1,437,801

Interest payable and similar expenses

6

33,169

14,686

PROFIT BEFORE TAXATION

485,039

1,423,115

Tax on profit

7

(792,290

)

298,872

PROFIT FOR THE FINANCIAL YEAR

1,277,329

1,124,243

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

1,277,329

1,124,243

Profit attributable to:

Owners of the parent

1,241,892

1,025,608

Non-controlling interests

35,437

98,635

1,277,329

1,124,243

Total comprehensive income attributable to:

Owners of the parent

1,241,892

1,025,608

Non-controlling interests

35,437

98,635

1,277,329

1,124,243

FIXED ASSETS

Intangible assets

10

1,284,436

1,948,822

Tangible assets

11

494,276

544,145

Investments

12

-

-

1,778,712

2,492,967

CURRENT ASSETS

Stocks

13

1,000

1,000

Debtors

14

3,027,107

2,407,974

Cash at bank and in hand

385,582

906,029

3,413,689

3,315,003

CREDITORS

Amounts falling due within one year

15

1,195,947

2,101,007

NET CURRENT ASSETS

2,217,742

1,213,996

TOTAL ASSETS LESS CURRENT LIABILITIES

3,996,454

3,706,963

CREDITORS

Amounts falling due after more than one year

16

(653,154

)

(1,053,942

)

PROVISIONS FOR LIABILITIES

20

-

(32,050

)

NET ASSETS

3,343,300

2,620,971

CAPITAL AND RESERVES

Called up share capital

21

300

300

Retained earnings

22

3,321,126

2,553,234

SHAREHOLDERS' FUNDS

3,321,426

2,553,534

NON-CONTROLLING INTERESTS

23

21,874

67,437

TOTAL EQUITY

3,343,300

2,620,971

The financial statements were approved by the Board of Directors on 27th March 2019 and were signed on its

behalf by:

N Minns - Director

FIXED ASSETS

Intangible assets

10

-

-

Tangible assets

11

432,022

461,381

Investments

12

2,396,913

2,929,302

2,828,935

3,390,683

CURRENT ASSETS

Stocks

13

1,000

1,000

Debtors

14

2,676,639

1,835,420

Cash at bank and in hand

251,959

697,694

2,929,598

2,534,114

CREDITORS

Amounts falling due within one year

15

1,787,704

2,333,840

NET CURRENT ASSETS

1,141,894

200,274

TOTAL ASSETS LESS CURRENT LIABILITIES

3,970,829

3,590,957

CREDITORS

Amounts falling due after more than one year

16

(653,154

)

(1,036,046

)

PROVISIONS FOR LIABILITIES

20

-

(27,369

)

NET ASSETS

3,317,675

2,527,542

CAPITAL AND RESERVES

Called up share capital

21

300

300

Retained earnings

22

3,317,375

2,527,242

SHAREHOLDERS' FUNDS

3,317,675

2,527,542

Company's profit for the financial year

1,264,133

967,490

The financial statements were approved by the Board of Directors on 27th March 2019 and were signed on its behalf by:

N Minns - Director

Called up

share

Retained

Non-controlling

Total

capital

earnings

Total

interests

equity

£

£

£

£

£

Balance at 1st July 2016

300

1,976,126

1,976,426

(10,684

)

1,965,742

Changes in equity

Dividends

-

(448,500

)

(448,500

)

(57,000

)

(505,500

)

Total comprehensive income

-

1,025,608

1,025,608

98,635

1,124,243

300

2,553,234

2,553,534

30,951

2,584,485

Non-controlling interest arising on business combination

-

-

-

36,486

36,486

Balance at 30th June 2017

300

2,553,234

2,553,534

67,437

2,620,971

Changes in equity

Dividends

-

(474,000

)

(474,000

)

(81,000

)

(555,000

)

Total comprehensive income

-

1,241,892

1,241,892

35,437

1,277,329

Balance at 30th June 2018

300

3,321,126

3,321,426

21,874

3,343,300

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1st July 2016

300

2,008,252

2,008,552

Changes in equity

Dividends

-

(448,500

)

(448,500

)

Total comprehensive income

-

967,490

967,490

Balance at 30th June 2017

300

2,527,242

2,527,542

Changes in equity

Dividends

-

(474,000

)

(474,000

)

Total comprehensive income

-

1,264,133

1,264,133

Balance at 30th June 2018

300

3,317,375

3,317,675

Cash flows from operating activities

Cash generated from operations

1

949,165

1,270,306

Tax paid

(387,246

)

(218,090

)

Net cash from operating activities

561,919

1,052,216

Cash flows from investing activities

Purchase of tangible fixed assets

(167,887

)

(242,598

)

Sale of tangible fixed assets

43,900

21,790

Acquisition of subsidiaries

(254,155

)

(1,826,932

)

Cash acquired with subsidiaries

-

592,238

Interest received

2,038

5,639

Net cash from investing activities

(376,104

)

(1,449,863

)

Cash flows from financing activities

New loans in year

-

600,000

Loan repayments in year

(112,597

)

(30,000

)

Interest paid

(30,950

)

(12,652

)

Capital repayments in year

(5,496

)

(5,038

)

Interest paid on hire purchase contracts

(2,219

)

(2,034

)

Equity dividends paid

(474,000

)

(448,500

)

Dividends paid to minority interests

(81,000

)

(57,000

)

Net cash from financing activities

(706,262

)

44,776

Decrease in cash and cash equivalents

(520,447

)

(352,871

)

Cash and cash equivalents at beginning of year

2

906,029

1,258,900

Cash and cash equivalents at end of year

2

385,582

906,029

1.	RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2018

2017

£

£

Profit before taxation

485,039

1,423,115

Depreciation charges

166,081

167,169

Profit on disposal of fixed assets

(28,265

)

(13,641

)

Goodwill amortisation

168,037

81,002

Finance costs

33,169

14,686

Finance income

(2,038

)

(5,639

)

822,023

1,666,692

Decrease/(increase) in trade and other debtors

159,583

(218,282

)

Decrease in trade and other creditors

(32,441

)

(178,104

)

Cash generated from operations

949,165

1,270,306

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in

respect of these Balance Sheet amounts:

Year ended 30th June 2018

30.6.18

1.7.17

£

£

Cash and cash equivalents

385,582

906,029

Year ended 30th June 2017

30.6.17

1.7.16

£

£

Cash and cash equivalents

906,029

1,258,900

1.	STATUTORY INFORMATION

L.S. Transmission Consultancy Limited is a private company, limited by shares , registered in England

and Wales. The company's registered number and registered office address can be found on the

General Information page.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Basis of consolidation

The consolidation accounts include the accounts of the company, its subsidiary undertakings made up

to the group financial year end at 30 June 2018. The acquisition method of accounting has been

adopted. The consolidated profit and loss account includes the results of its subsidiary undertakings.

Inter company transactions have been eliminated on consolidation. The results of companies acquired

or disposed of in the year are included to the date of their disposal or from the effective date of

acquiring control.

Turnover

Turnover is measured at the fair value of the consideration received or receivable net of VAT and trade

discounts. The policies adopted for the recognition of turnover are as follows:

Rendering of services

Turnover represents the value of services provided under contracts to the extent that there is a right to

consideration and is recorded at the value of that consideration due. Where a contract has only been

partially completed at the balance sheet date turnover represents the value of the services provided to

date based on a proportion of the total expected consideration at completion.

Goodwill

Goodwill recognised represents the excess of the fair value and directly attributable costs of the

purchase consideration over the fair values to the group's interest in the identifiable net assets,

liabilities and contingent liabilities acquired.

Goodwill is amortised over its expected useful life. Where the group is unable to make a reliable

estimate of useful life, goodwill is amortised over a period not exceeding 10 years. Goodwill is

assessed for impairment when there are indicators of impairment and any impairment is charged to

the income statement. Reversals of impairment are recognised when the reasons for the impairment

no longer apply.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured

at cost less any accumulated amortisation and any accumulated impairment losses.