Loppingdale Plant Limited - Limited company accounts 18.2

REGISTERED NUMBER: 02689144 (England and Wales)

Strategic Report, Report of the Directors and

Financial Statements for the Year Ended 31 March 2019

for

Loppingdale Plant Limited

Page

Company Information

1

Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

6

Statement of Comprehensive Income

8

Balance Sheet

9

Statement of Changes in Equity

10

Cash Flow Statement

11

Notes to the Cash Flow Statement

12

Notes to the Financial Statements

13

DIRECTORS:

E B Corr

K J Fitzgerald

C S Kirk

SECRETARY:

R L Corr

REGISTERED OFFICE:

Loppingdales

Gaunts End

Elsenham

Bishops Stortford

Hertfordshire

CM22 6DR

REGISTERED NUMBER:

02689144 (England and Wales)

AUDITORS:

Lanham and Company Limited

Statutory Auditors &

Chartered Accountants

9 Great Chesterford Court

London Road

Great Chesterford

Essex

CB10 1PF

The directors present their strategic report for the year ended 31 March 2019.

REVIEW OF BUSINESS

The principle business activities are groundwork and civil engineering and design maintenance and fit out operations.

Groundwork and Civil Engineering

The operation has performed well this year, finalising major projects commenced in 2017/18 and winning further work

in line with the company's strategy of utilising our own skill and Ecorr plant hire in partnership to offer a high quality

service to our customers.

The civils order book has work up until October for the main part of the business.

Design Maintenance and Fit Out

The Design and fit out sector has carried out significant projects during the year and further developed the Facilities

Management Operations, it is intended to continue the development of this sector going forward into 2020.

The operation has an order book until October 2019.

Key Performance Indicators

The company liquidity ratio and gearing ratio are monitored to ensure it can support its future operations.

2019

2018

Liquidity Ratio

1.6%

1.3%

Gearing Ratio

4.6%

4.0%

PRINCIPAL RISKS AND UNCERTAINTIES

The major commercial risk faced by the company going forward is the investment in the UK within the infrastructure

and education sectors and the associated impact on workload. The Directors review the customer and order profiles

going forward to try and mitigate the dependency on these sectors.

Health and Safety is also a high risk given the environment the company operates within, actions continue to mitigate

this through an extensive review of training and further investment in ensuring the workforce is trained to and above the

required standard.

There is also in place new starter protocols to maintain the health and safety skills and understanding and competence.

During the year the company has also invested in the human resources support to further develop our employee

competencies and training to further mitigate the health and safety risk when possible

ENVIRONMENTAL ISSUES

The company works in co-ordination with Ecorr Plant operation to maintain plant and focus on waste operations. The

company has invested in dust suppression equipment and sweepers, in Ecorr to assist on LPL sites. Going into 2020 we

are also reviewing capital expenditure to wherever possible minimise the environmental impact.

EMPLOYEES

The company has continued to focus on training and has further extended the development of graduates into the fit out

operation.

We have also invested in additional HR to allow the company to provide further employee development and

communication going forward.

CHARITABLE DONATIONS

The company continues to focus on local charities raising over 6K for the local hospice and a further 3K for the local

rotary club taking part in the Dunmow soapbox race.

COMPANY ACCREDITATIONS

The company continues to invest in ISO certifications, ISO 9001,14001 OHSAS 18001. We are also Achilles, FIRAS

certified, a construction online gold member and an alcumus safe contractor.

FINANCIAL RISK MANAGEMENT

The main financial instruments within the company are the debtors, creditors and the company bank loan.

In order to mitigate risk on the debtors the company operates a tight credit control regime before and during the

contracts.

The company policy is to pay the suppliers in line with negotiated payment terms with the intention of maintain good

supplier relationships.

ON BEHALF OF THE BOARD:

R L Corr - Secretary

19 July 2019

The directors present their report with the financial statements of the company for the year ended 31 March 2019.

DIVIDENDS

An interim dividend of £240 per share was paid on 31 January 2019. The directors recommend that no final dividend be paid.

The total distribution of dividends for the year ended 31 March 2019 will be £ 6,000 .

FUTURE DEVELOPMENTS

LPL are continuing to focus on the continued upgrade to ISO 9001, following on with the new ISO45001 going forward

to 2020.

The company will be investing this year in the business premises to create a training and meeting rooms in order to

further develop out employees to provide the required skills needed for our customer base.

We have during the year improved our site welfare facilities for the employees and this will be ongoing into 2020.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 April 2018 to the date of this report.

E B Corr

K J Fitzgerald

C S Kirk

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the 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 of the profit or loss of the company 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 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. They are also responsible for

safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud

and other irregularities.

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 company'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 company's

auditors are aware of that information.

AUDITORS

The auditors, Lanham and Company Limited, will be proposed for re-appointment at the forthcoming Annual General

Meeting.

ON BEHALF OF THE BOARD:

R L Corr - Secretary

19 July 2019

Opinion

We have audited the financial statements of Loppingdale Plant Limited (the 'company') for the year ended

31 March 2019 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in

Equity, Cash Flow Statement and Notes to the 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 company's affairs as at 31 March 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.

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 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 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 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.

Other information

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

Opinions 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 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 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 company and its environment obtained in the course of the audit,

we have not identified material misstatements in the 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, 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 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 four, 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 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 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.

Andrew Ireland FCCA (Senior Statutory Auditor)

for and on behalf of Lanham and Company Limited

Statutory Auditors &

Chartered Accountants

9 Great Chesterford Court

London Road

Great Chesterford

Essex

CB10 1PF

19 July 2019

TURNOVER

3

20,974,667

21,282,986

Cost of sales

17,208,274

18,667,937

GROSS PROFIT

3,766,393

2,615,049

Administrative expenses

2,396,756

2,107,492

OPERATING PROFIT

5

1,369,637

507,557

Income from fixed asset investments

20

17

Interest receivable and similar income

4,429

326

4,449

343

1,374,086

507,900

Interest payable and similar expenses

6

22,918

28,798

PROFIT BEFORE TAXATION

1,351,168

479,102

Tax on profit

7

293,848

108,294

PROFIT FOR THE FINANCIAL YEAR

1,057,320

370,808

OTHER COMPREHENSIVE INCOME

Share buyback

(69,985

)

-

Income tax relating to other comprehensive income

-

-

OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX

(69,985

)

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

987,335

370,808

FIXED ASSETS

Tangible assets

9

1,037,460

909,089

CURRENT ASSETS

Stocks

10

409,302

186,598

Debtors

11

7,322,385

7,657,263

Cash at bank and in hand

844,278

1,296,444

8,575,965

9,140,305

CREDITORS

Amounts falling due within one year

12

5,394,871

6,819,427

NET CURRENT ASSETS

3,181,094

2,320,878

TOTAL ASSETS LESS CURRENT LIABILITIES

4,218,554

3,229,967

CREDITORS

Amounts falling due after more than one year

13

(241,273

)

(227,357

)

PROVISIONS FOR LIABILITIES

17

(56,997

)

(63,646

)

NET ASSETS

3,920,284

2,938,964

CAPITAL AND RESERVES

Called up share capital

18

25

40

Capital redemption reserve

19

75

60

Retained earnings

19

3,920,184

2,938,864

SHAREHOLDERS' FUNDS

3,920,284

2,938,964

The financial statements were approved and authorised for issue by the Board of Directors on 19 July 2019 and were signed on its behalf by:

E B Corr - Director

Called up

Capital

share

Retained

redemption

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1 April 2017

40

2,568,056

60

2,568,156

Changes in equity

Total comprehensive income

-

370,808

-

370,808

Balance at 31 March 2018

40

2,938,864

60

2,938,964

Changes in equity

Issue of share capital

(15

)

-

-

(15

)

Dividends

-

(6,000

)

-

(6,000

)

Total comprehensive income

-

987,320

15

987,335

Balance at 31 March 2019

25

3,920,184

75

3,920,284

Cash flows from operating activities

Cash generated from operations

1

82,954

1,490,809

Interest paid

(8,425

)

(20,570

)

Interest element of hire purchase payments paid

(14,493

)

(8,228

)

Tax paid

(92,466

)

(153,784

)

Net cash from operating activities

(32,430

)

1,308,227

Cash flows from investing activities

Purchase of tangible fixed assets

(160,985

)

(179,911

)

Sale of tangible fixed assets

15,504

39,199

Interest received

4,429

326

Dividends received

20

17

Net cash from investing activities

(141,032

)

(140,369

)

Cash flows from financing activities

Loan repayments in year

(42,162

)

(122,041

)

Capital repayments in year

(158,716

)

(55,999

)

Amount introduced by directors

-

16,826

Amount withdrawn by directors

(1,826

)

-

Share issue

(15

)

-

Share buyback

(69,985

)

-

Equity dividends paid

(6,000

)

-

Net cash from financing activities

(278,704

)

(161,214

)

(Decrease)/increase in cash and cash equivalents

(452,166

)

1,006,644

Cash and cash equivalents at beginning of year

2

1,296,444

289,800

Cash and cash equivalents at end of year

2

844,278

1,296,444

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

31.3.19

31.3.18

£

£

Profit before taxation

1,351,168

479,102

Depreciation charges

256,091

175,283

Loss on disposal of fixed assets

124

2,017

Finance costs

22,918

28,798

Finance income

(4,449

)

(343

)

1,625,852

684,857

Increase in stocks

(222,704

)

(87,086

)

Decrease/(increase) in trade and other debtors

336,703

(3,328,051

)

(Decrease)/increase in trade and other creditors

(1,656,897

)

4,221,089

Cash generated from operations

82,954

1,490,809

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 31 March 2019

31.3.19

1.4.18

£

£

Cash and cash equivalents

844,278

1,296,444

Year ended 31 March 2018

31.3.18

1.4.17

£

£

Cash and cash equivalents

1,296,444

289,800

1.	STATUTORY INFORMATION

Loppingdale Plant 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 Company 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.

Critical accounting judgements and estimation uncertainty

In the preparation of the financial statements management makes certain judgements and estimates that impact

the financial statements. Whilst these judgements are continually reviewed the facts and circumstances

underlying these judgements may change resulting in a change to the estimates that could impact on the results of

the company.

The company makes estimates and assumptions concerning the future. The resulting accounting estimates will,

by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk

of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are

addressed below.

(a) Revenue recognition and profits on long term contracts

The estimation technique used by the company in attributing profit on contracts to a particular accounting period

is the preparation of forecasts on a contract by contract basis.These forecasts predict the most likely outcome of

each contract based on a number of factors including technical and contractual requirements, progress to date,

and previous experience of similar projects, form of contract and of working with that particular client.The

outcome, and therefore appropriate level of revenue to be recognised is therefore subject to a significant number

of inter-related factors. Consistent contract review procedures are in place in respect of contract forecasting.

(b) Carrying value of trade debtors, amounts recoverable on contracts and other

receivables

The company makes an estimate of the recoverable value of trade debtors, amounts recoverable on contracts and

other receivables (note 10). When assessing impairment of trade debtors, amounts recoverable on contracts and

other receivables, management considers factors including the current credit rating of the trade debtors, the

ageing profile of the trade debtors and historical experience. Allowance for doubtful debt and provisions against

amounts due on construction contracts are made on a specific basis, based on estimates of irrecoverability

determined by market knowledge and past experience.

Turnover

Turnover represents net invoiced provision of services excluding value added tax but adjusted in respect of long

term contracts according to the stage of completion of the contract.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Freehold property

-

2% on cost

Plant and machinery

-

20% on cost

Fixtures and fittings

-

15% on cost

Motor vehicles

-

25% on cost and 15% on cost

Computer equipment

-

33% on cost and 15% on cost

Long term contracts and work in progress

Long term contracts are assessed on a contract by contract basis based on work certified and expected contract

profitability. Where the outcome of a contract can be estimated reliably, revenue and costs are recognised by

reference to the stage of completion of the contract at the balance sheet date. Where the outcome of a contract

cannot be estimated reliably, revenue is only recognised to the extent that it is probable that it will be

recoverable.

Profit is only recognised on a construction contract when the final outcome can be assessed with reasonable

certainty. Where the actual and estimated costs to completion exceed the estimated turnover for a contract, the

full contact life loss is recognised immediately.

Work in progress is valued at the lower of cost and net realisable value.

Cost includes all direct expenditure and an appropriate proportion of fixed and variable overheads.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive

Income, except to the extent that it relates to items recognised in other comprehensive income or directly in

equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or

substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance

sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from

those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that

have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the

timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they

will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to the profit and loss account on a straight-line basis over the

lease term.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension

scheme are charged to profit or loss in the period to which they relate.

Financial assets and liabilities

Financial assets and financial liabilities are recognised when the company becomes a party to the contractual

provisions of an instrument.

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.

All financial assets and liabilities are initially measured at transaction price (including transaction costs), except

for those financial assets classified as at fair value through profit or loss, which are initially measured at fair

value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a

financing transaction. If an arrangement constitutes a finance transaction, the financial asset or financial liability

is measured at the present value of the future payments discounted at a market rate of interest for a similar debt

instrument.

Financial assets and liabilities are only offset in the statement of financial position when, and only when there

exists a legally enforceable right to set off the recognised amounts and the company intends either to settle on a

net basis, or to realise the asset and settle the liability simultaneously.

Debt instruments which meet the following conditions are subsequently measured at amortised cost using the

effective interest method:

(a) Returns to the holder are (i) a fixed amount; or (ii) a fixed rate of return over the life of the instrument; or (iii)

a variable return that, throughout the life of the instrument, is equal to a single referenced quoted or observable

interest rate; or (iv) some combination of such fixed rate and variable rates, providing that both rates are positive.

(b) There is no contractual provision that could, by its terms, result in the holder losing the principal amount or

any interest attributable to the current period or prior periods.

(c) Contractual provisions that permit the issuer to prepay a debt instrument or permit the holder to put it

back to the issuer before maturity are not contingent on future events, other than to protect the holder against the

credit deterioration of the issuer or a change in control of the issuer, or to protect the holder or issuer against

changes in relevant taxation or law.

(d) There are no conditional returns or repayment provisions except for the variable rate return described

in (a) and prepayment provisions described in (c).

Debt instruments that are classified as payable or receivable within one year and which meet the above

conditions are measured at the undiscounted amount of the cash or other consideration expected to be paid or

received, net of impairment.

Other debt instruments not meeting these conditions are measured at fair value through profit or loss.

Commitments to make and receive loans which meet the conditions mentioned above are measured at cost

(which may be nil) less impairment.

Financial assets are derecognised when and only when a) the contractual rights to the cash flows from the

financial asset expire or are settled, b) the company transfers to another party substantially all of the risks and

rewards of ownership of the financial asset, or c) the company, despite having retained some significant risks and

rewards of ownership, has transferred control of the asset to another party and the other party has the practical

ability to sell the asset in its entirety to an unrelated third party and is able to exercise that ability unilaterally and

without needing to impose additional restrictions on the transfer.

Financial liabilities are derecognised only when the obligation specified in the contract is discharged, cancelled

or expires.

3.

TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the company.

An analysis of turnover by class of business is given below:

31.3.19

31.3.18

£

£

Construction contracts

10,246,989

11,861,155

Other

10,727,678

9,421,831

20,974,667

21,282,986

The company's turnover is all derived from the provision of services.

4.	EMPLOYEES AND DIRECTORS

31.3.19

31.3.18

£

£

Wages and salaries

4,238,461

3,574,913

Social security costs

472,864

388,323

Other pension costs

71,498

33,697

4,782,823

3,996,933

The average number of employees during the year was as follows:

31.3.19

31.3.18

Operations

51

46

Operational Support

23

14

Admin

13

15

Directors

3

4

90

79

31.3.19

31.3.18

£

£

Directors' remuneration

400,962

561,452

Directors' pension contributions to money purchase schemes

5,758

4,719

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes

3

4

Information regarding the highest paid director is as follows:

31.3.19

31.3.18

£

£

Emoluments etc

171,585

227,737

Pension contributions to money purchase schemes

2,536

1,437