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 2019

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

6

Consolidated Statement of Comprehensive Income

8

Consolidated Balance Sheet

9

Company Balance Sheet

10

Consolidated Statement of Changes in Equity

11

Company Statement of Changes in Equity

12

Consolidated Cash Flow Statement

13

Notes to the Consolidated Cash Flow Statement

14

Notes to the Consolidated Financial Statements

15

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 2019.

The group's principal business activity is to provide engineering professional services to the electricity sector.

Its focus is on the design and survey of overhead lines, underground cables and substation systems from low

voltage to extra high voltage in the UK and internationally.

REVIEW OF BUSINESS

2019 was a year of further consolidation for the group. Systems and processes were enhanced which

resulted in an improved trading performance with gross profit margin at 24.3% (2018: 20.6%) and operating

margin at 8.8% (2018: 6.3%).

Key Performance Indicators

The group tightly manages its cash flow and working capital and uses several KPI's to further monitor its

performance. These include a range of financial and operational ratios as follows:

- Gross profit/turnover

- Operating profit/turnover

- Debtor days

- Work in progress days

- Cash balance

- Staff utilisation

- Order book profile

The operational performance indicators are commercially sensitive and have not been disclosed.

PRINCIPAL RISKS AND UNCERTAINTIES

The directors are aware of the various risks inherent in the business and meet regularly to consider them.

The key business risks are:

Competition risk:

The business is impacted by the supply of professional services into the electricity sector. The risk is

mitigated by the relationships in place at all levels with the major suppliers to the sector.

Credit risk:

The group operates a strict policy of credit checking and reviewing all new and existing commercial

customers.

Staff risk:

The group could be exposed to a lack of supply of skilled labour and mitigates this risk by providing a clear

career plan and training programme for all levels of staff from graduates through to directors.

Brexit risk:

The group is aware of the uncertainty caused across the business community by the lack of progress on

Brexit. Having assessed the situation it has been concluded that the specific Brexit related risks to the

company are relatively low because most of its business is generated in the UK. The situation will continue to

be closely monitored.

Impact of COVID-19:

Reports of a novel virus were first made in China in December 2019 and since that date cases have spread

worldwide leading to various restrictions on movement and businesses being imposed within the two weeks

prior to the date this report is being signed. Whilst this presents some uncertainties, those restrictions have

not at the date of this report, impacted in any material way on the business. The group have put several

measures in place to mitigate the risks to staff and the business for the inevitable impact of Covid-19.

Fortunately the vast majority of work undertaken by the group is for the power industry and therefore is

classed as "essential works" so the directors are hopeful the impact should remain low in the months ahead.

FUTURE DEVELOPMENTS

The group is constantly looking to enhance its service offering to enable it to generate increased revenue

opportunities.

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.

ON BEHALF OF THE BOARD:

N Minns - Director

30th March 2020

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

ended 30th June 2019.

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 2019 will be £276,000.

EVENTS SINCE THE END OF THE YEAR

Information relating to events since the end of the year is given in the notes to the financial statements.

DIRECTORS

The directors shown below have held office during the whole of the period from 1st July 2018 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

30th March 2020

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 2019 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 2019 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.

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 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 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 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

30th March 2020

TURNOVER

3

8,167,742

8,162,544

Cost of sales

6,185,535

6,477,487

GROSS PROFIT

1,982,207

1,685,057

Administrative expenses

1,268,627

1,168,887

713,580

516,170

Other operating income

9,196

-

OPERATING PROFIT

5

722,776

516,170

Interest receivable and similar income

4,041

2,038

726,817

518,208

Interest payable and similar expenses

7

9,616

33,169

PROFIT BEFORE TAXATION

717,201

485,039

Tax on profit

8

(272,426

)

(792,290

)

PROFIT FOR THE FINANCIAL YEAR

989,627

1,277,329

OTHER COMPREHENSIVE INCOME

Revaluation of freehold property

22,918

-

Income tax relating to other comprehensive income

-

-

OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX

22,918

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

1,012,545

1,277,329

Profit attributable to:

Owners of the parent

998,112

1,241,892

Non-controlling interests

(8,485

)

35,437

989,627

1,277,329

Total comprehensive income attributable to:

Owners of the parent

1,021,030

1,241,892

Non-controlling interests

(8,485

)

35,437

1,012,545

1,277,329

FIXED ASSETS

Intangible assets

11

730,612

1,284,436

Tangible assets

12

505,406

494,276

Investments

13

-

-

1,236,018

1,778,712

CURRENT ASSETS

Stocks

14

1,000

1,000

Debtors

15

3,304,719

3,027,107

Cash at bank and in hand

972,302

385,582

4,278,021

3,413,689

CREDITORS

Amounts falling due within one year

16

1,182,500

1,195,947

NET CURRENT ASSETS

3,095,521

2,217,742

TOTAL ASSETS LESS CURRENT LIABILITIES

4,331,539

3,996,454

CREDITORS

Amounts falling due after more than one year

17

(220,160

)

(653,154

)

PROVISIONS FOR LIABILITIES

21

(33,534

)

-

NET ASSETS

4,077,845

3,343,300

CAPITAL AND RESERVES

Called up share capital

22

300

300

Revaluation reserve

23

22,918

-

Retained earnings

23

4,043,238

3,321,126

SHAREHOLDERS' FUNDS

4,066,456

3,321,426

NON-CONTROLLING INTERESTS

24

11,389

21,874

TOTAL EQUITY

4,077,845

3,343,300

The financial statements were approved by the Board of Directors on 30th March 2020 and were signed on its

behalf by:

N Minns - Director

FIXED ASSETS

Intangible assets

11

-

-

Tangible assets

12

449,218

432,022

Investments

13

1,797,721

2,396,913

2,246,939

2,828,935

CURRENT ASSETS

Stocks

14

1,000

1,000

Debtors

15

2,952,937

2,676,639

Cash at bank and in hand

807,547

251,959

3,761,484

2,929,598

CREDITORS

Amounts falling due within one year

16

1,793,892

1,787,704

NET CURRENT ASSETS

1,967,592

1,141,894

TOTAL ASSETS LESS CURRENT LIABILITIES

4,214,531

3,970,829

CREDITORS

Amounts falling due after more than one year

17

(220,160

)

(653,154

)

PROVISIONS FOR LIABILITIES

21

(25,303

)

-

NET ASSETS

3,969,068

3,317,675

CAPITAL AND RESERVES

Called up share capital

22

300

300

Revaluation reserve

23

22,918

-

Retained earnings

23

3,945,850

3,317,375

SHAREHOLDERS' FUNDS

3,969,068

3,317,675

Company's profit for the financial year

904,475

1,264,133

The financial statements were approved by the Board of Directors on 30th March 2020 and were signed on its behalf by:

N Minns - Director

Called up

share

Retained

Revaluation

capital

earnings

reserve

£

£

£

Balance at 1st July 2017

300

2,553,234

-

Changes in equity

Dividends

-

(474,000

)

-

Total comprehensive income

-

1,241,892

-

Balance at 30th June 2018

300

3,321,126

-

Changes in equity

Dividends

-

(276,000

)

-

Total comprehensive income

-

998,112

22,918

Balance at 30th June 2019

300

4,043,238

22,918

Non-controlling

Total

Total

interests

equity

£

£

£

Balance at 1st July 2017

2,553,534

67,437

2,620,971

Changes in equity

Dividends

(474,000

)

(81,000

)

(555,000

)

Total comprehensive income

1,241,892

35,437

1,277,329

Balance at 30th June 2018

3,321,426

21,874

3,343,300

Changes in equity

Dividends

(276,000

)

(2,000

)

(278,000

)

Total comprehensive income

1,021,030

(8,485

)

1,012,545

Balance at 30th June 2019

4,066,456

11,389

4,077,845

Called up

share

Retained

Revaluation

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1st July 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

Changes in equity

Dividends

-

(276,000

)

-

(276,000

)

Total comprehensive income

-

904,475

22,918

927,393

Balance at 30th June 2019

300

3,945,850

22,918

3,969,068

Cash flows from operating activities

Cash generated from operations

1

702,695

949,165

Tax paid

(32,437

)

(387,246

)

Taxation refunds/credits

484,654

-

Net cash from operating activities

1,154,912

561,919

Cash flows from investing activities

Purchase of tangible fixed assets

(191,246

)

(167,887

)

Sale of tangible fixed assets

41,768

43,900

Acquisition of subsidiaries

-

(254,155

)

Interest received

4,041

2,038

Net cash from investing activities

(145,437

)

(376,104

)

Cash flows from financing activities

Loan repayments in year

(117,243

)

(112,597

)

Interest paid

(9,246

)

(30,950

)

Capital repayments in year

(17,896

)

(5,496

)

Interest paid on hire purchase contracts

(370

)

(2,219

)

Equity dividends paid

(276,000

)

(474,000

)

Dividends paid to minority interests

(2,000

)

(81,000

)

Net cash from financing activities

(422,755

)

(706,262

)

Increase/(decrease) in cash and cash equivalents

586,720

(520,447

)

Cash and cash equivalents at beginning of year

2

385,582

906,029

Cash and cash equivalents at end of year

2

972,302

385,582

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

2019

2018

£

£

Profit before taxation

717,201

485,039

Depreciation charges

176,351

166,081

Profit on disposal of fixed assets

(15,085

)

(28,265

)

Goodwill amortisation

53,197

168,037

Goodwill impairment

184,876

-

Finance costs

9,616

33,169

Finance income

(4,041

)

(2,038

)

1,122,115

822,023

(Increase)/decrease in trade and other debtors

(423,869

)

159,583

Increase/(decrease) in trade and other creditors

4,449

(32,441

)

Cash generated from operations

702,695

949,165

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 2019

30.6.19

1.7.18

£

£

Cash and cash equivalents

972,302

385,582

Year ended 30th June 2018

30.6.18

1.7.17

£

£

Cash and cash equivalents

385,582

906,029