LCB Construction Holdings Limited - Limited company accounts 20.1
LCB Construction Holdings Limited - Limited company accounts 20.1
REGISTERED NUMBER: 09435643 (England and Wales) |
LCB Construction Holdings Limited |
Group Strategic Report, |
Report of the Director and |
Consolidated Financial Statements |
for the Year Ended 29 February 2020 |
LCB Construction Holdings Limited (Registered number: 09435643) |
Contents of the Consolidated Financial Statements |
for the Year Ended 29 February 2020 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Director | 5 |
Report of the Independent Auditors | 7 |
Consolidated Income Statement | 9 |
Consolidated Other Comprehensive Income | 10 |
Consolidated Statement of Financial Position | 11 |
Company Statement of Financial Position | 12 |
Consolidated Statement of Changes in Equity | 13 |
Company Statement of Changes in Equity | 14 |
Consolidated Statement of Cash Flows | 15 |
Notes to the Consolidated Statement of Cash Flows | 16 |
Notes to the Consolidated Financial Statements | 17 |
LCB Construction Holdings Limited |
Company Information |
for the Year Ended 29 February 2020 |
DIRECTOR: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Accountants |
& Statutory Auditors |
Highdale House |
7 Centre Court |
Treforest Industrial Estate |
Pontypridd |
Rhondda Cynon Taff |
CF37 5YR |
LCB Construction Holdings Limited (Registered number: 09435643) |
Group Strategic Report |
for the Year Ended 29 February 2020 |
The director presents his strategic report of the company and the group for the year ended 29 February 2020. |
LCB Construction Holdings Limited (Registered number: 09435643) |
Group Strategic Report |
for the Year Ended 29 February 2020 |
REVIEW OF BUSINESS |
The group continues to operate as a contractor within the public, private and third sector. The group's principal activity is the construction of buildings and maintenance. |
The income statement for the group for year ended 29 February 2020 is set out on page 9 of the financial statements and shows a profit after taxation of £1,435,911 (2019- £1,113,731). Earnings before interest, tax and depreciation (EBITDA) amounted to £1,442,425 (2019- £1,192,645). Dividends of £256,192 were voted in the year (2019- £201,529). |
The director has considered that the group has operated efficiently during the period and has continued to develop its operations to allow for further expansion of the group's activities. |
The introduction of several new IT systems, processes and procedures, along with bespoke online portals, has enabled all staff throughout the business to work more efficiently and diligently. Staff have been fully trained in the operation of these systems, which will integrate our whole supply chain as a result. |
LCB Construction Holdings Limited |
The company is the parent company of a group of companies, which includes two trading companies. |
LCB Construction Limited - (construction company) |
The directors have considered that the company has operated efficiently during the period and has continued to develop its operations to allow for further expansion of the company's activities. |
The company has continued to focus on establishing long term partnering arrangements with public sector organisations, which has been successful in previous trading years. This accounting period has seen the company enter into new framework agreements with existing customers, effectively renewing framework agreements for a further 3-4 years on average. During the period the company has also entered into framework agreements with new clients, the average term of these contracts are 3 years. Our brand has continued to grow, developing relationships with existing and new clients to increase the revenue of the company. |
As with previous years, the company has continued to invest in people, employing further 'in house' operatives in lieu of external sub-contractors in order to maintain quality and service to clients and customers. This approach has also seen an increase in both gross and net margins as a result. This approach has continued into the following financial year, with further efficiency gains as a result. |
We've continued to employ strong personnel with reputable backgrounds, resultant of the company's growing reputation, financial strength and longevity. This has resulted in good organic growth within both maintenance and construction divisions of the business. This approach gives us a wide range of operating areas and reduce risk from being in different types of 'Building sectors'. |
Key financial highlights |
2020 | 2019 | 2018 | 2017 |
Turnover | 21,268,652 | 18,034,662 | 11,958,775 | 8,467,477 |
Turnover growth | 17.93% | 50.81% | 41.23% | 15.79% |
Gross profit margin | 21.05% | 17.70% | 15.96% | 13.71% |
Profit before tax | 8.36% | 7.04% | 6.84% | 4.81% |
The company has continued to invest within the group, with no borrowing other than for additional vehicles resultant from additional operatives being recruited. The company has maintained a strong balance sheet, with cash reserves healthy at all times. Bad debt is very low, and risk is subsequently a lot lower than the construction industry as a whole, due to client base and business plan. |
LCB Mechanical and Electrical Limited - (construction company) |
The directors have considered that the company has operated efficiently during the period and has continued to develop its operations to allow for further expansion of the company's activities. |
Key financial highlights |
2020 | 2019 | 2018 | 2017 |
Turnover | 1,160,629 | 1,137,909 | 940,716 | 155,501 |
Gross profit margin | 20.12% | 23.50% | 24.57% | 15.99% |
Profit before tax | 0.92% | 10.35% | 8.47% | 5.47% |
LCB Construction Holdings Limited (Registered number: 09435643) |
Group Strategic Report |
for the Year Ended 29 February 2020 |
The company has continued to invest within the group, with no borrowing other than for additional vehicles resultant from additional operatives being recruited. The company has maintained a strong balance sheet, with cash reserves healthy at all times. Bad debt is very low, and risk is subsequently a lot lower than the construction industry as a whole, due to client base and business plan. |
PRINCIPAL RISKS AND UNCERTAINTIES |
The performance of both LCB Construction Limited and LCB Mechanical and Electrical Limited during the first half of the new financial year continues to improve. Our forecast for the year ended 28 February 2021 that trend is set to continue. |
The world has been subject to a global pandemic in COVID19. LCB Construction Limited and LCB Mechanical and Electrical Limited have continued to trade throughout the pandemic to service clients requiring emergency repairs and vacant properties to tackle homelessness. Whilst the both companies have had to utilise the HMRC's Furlough Scheme, as of this date, the % of remaining furloughed staff is low, and generally limited to apprentices and internal trades whereby social distancing is difficult. Despite the pandemic and 'lockdown' the first six months of the current financial year, has been promising, with an increase in turnover and increase in profit (both gross and net) reported in the group's six management accounts. We expect to see a change in type of works clients are undertaking over the next six months, with a focus shift from internal works to external works. However, we expect to maintain the strong first six performance throughout the remaining period of 2020-21 financial year. |
Other risks of employing quality staff have been reduced slightly due to other businesses within the sector struggling as a result of COVID19, which the group intends to try to capitalise upon. |
ON BEHALF OF THE BOARD: |
LCB Construction Holdings Limited (Registered number: 09435643) |
Report of the Director |
for the Year Ended 29 February 2020 |
The director presents his report with the financial statements of the company and the group for the year ended 29 February 2020. |
PRINCIPAL ACTIVITY |
The principal activity of the group in the year under review was that of construction of buildings and maintenance. |
DIVIDENDS |
The total distribution of dividends for the year ended 29 February 2020 will be £ 256,192 . |
FUTURE DEVELOPMENTS |
The COVID 19 pandemic has developed rapidly in 2020, with significant number of cases. Measures taken by the government to contain the virus have affected economic activity. We have taken a number of measures to monitor and mitigate the effects of COVID 19, such as health and safety measures for our employees and securing the supply of materials that are essential to our business. |
The future prospects of LCB Construction Limited, LCB Mechanical and Electrical Limited and our industry remain positive despite concerns about Brexit and the impact of the COVID 19 pandemic. We will continue to follow the various government policies and advice and, in parallel, we will do our utmost to continue our operations in the best and safest way possible without jeorpardising the health of our employees. The group actively tenders for development contracts and continues to be successful in being awarded new contracts. The group continues to invest in IT systems and also in its workforce. |
DIRECTOR |
FINANCIAL INSTRUMENTS |
The group's principal financial instruments comprise of bank balances, bank overdrafts, trade creditors, trade debtors, loans to the company and finance lease agreements. The main purpose of these instruments is to raise funds for the company's operations and to finance the company's operations. |
Due to the nature of the financial instruments used by the group there is no exposure to price risk. The group's approach to managing other risks applicable to the financial instruments concerned is shown below. |
In respect of bank balances the liquidity risk is managed by maintaining strong cash balances with access to overdraft facilities if required. |
Trade debtors are managed in respect of credit and cash flow risk by policies concerning the credit offered to customers and the regular monitoring of amounts outstanding for both time and credit limits. |
Trade creditors liquidity risk is managed by ensuring sufficient funds are available to meet amounts due. |
DONATIONS |
During the year the company made charitable donations totalling £28,654 (2019: £58,454). |
EMPLOYMENT POLICIES |
Group companies adopt employment policies best suited to their operations and in compliance with UK legislation. Personnel policies are designed to provide equal opportunities to all in accordance with the group policy. In particular, the employment of those who have become disabled is continued wherever possible and opportunities are provided for the recruitment, training and development of disabled people. |
Directors and senior management are directly involved in regular management meetings in relation to the relevant companies and are therefore informed of the companies' activities and development. As a management team, they are responsible for the involvement and consultation of their relevant staff. |
DISCLOSURE IN THE STRATEGIC REPORT |
Information relating to the group's exposure to key risks are included in the group's strategic report. |
LCB Construction Holdings Limited (Registered number: 09435643) |
Report of the Director |
for the Year Ended 29 February 2020 |
STATEMENT OF DIRECTOR'S RESPONSIBILITIES |
The director is responsible for preparing the Group Strategic Report, the Report of the Director 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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 the group and of the profit or loss of the group 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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and enable him to ensure that the financial statements comply with the Companies Act 2006. He is 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 director is 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 he 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, O'Brien & Partners, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
Report of the Independent Auditors to the Members of |
LCB Construction Holdings Limited |
Opinion |
We have audited the financial statements of LCB Construction Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 29 February 2020 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Statement of Financial Position, Company Statement of Financial Position, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Statement of Cash Flows and Notes to the Consolidated Statement of Cash Flows, 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 29 February 2020 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 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 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 director is responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Director, 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 Director 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 Director 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 Director. |
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 director's remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Report of the Independent Auditors to the Members of |
LCB Construction Holdings Limited |
Responsibilities of director |
As explained more fully in the Statement of Director's Responsibilities set out on page six, 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 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 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 director either intends to liquidate the group or the parent company or to cease operations, or has 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. |
for and on behalf of |
Chartered Accountants |
& Statutory Auditors |
Highdale House |
7 Centre Court |
Treforest Industrial Estate |
Pontypridd |
Rhondda Cynon Taff |
CF37 5YR |
LCB Construction Holdings Limited (Registered number: 09435643) |
Consolidated Income Statement |
for the Year Ended 29 February 2020 |
29.2.20 | 28.2.19 |
Notes | £ | £ |
TURNOVER | 5 | 21,160,011 | 18,024,750 |
Cost of sales | 16,520,064 | 14,626,411 |
GROSS PROFIT | 4,639,947 | 3,398,339 |
Administrative expenses | 2,845,285 | 1,993,999 |
1,794,662 | 1,404,340 |
Other operating income | 3,302 | 7,050 |
OPERATING PROFIT | 7 | 1,797,964 | 1,411,390 |
Interest payable and similar expenses | 8 | 12,939 | 23,342 |
PROFIT BEFORE TAXATION | 1,785,025 | 1,388,048 |
Tax on profit | 9 | 349,114 | 274,317 |
PROFIT FOR THE FINANCIAL YEAR |
Profit attributable to: |
Owners of the parent | 1,435,911 | 1,113,731 |
LCB Construction Holdings Limited (Registered number: 09435643) |
Consolidated Other Comprehensive Income |
for the Year Ended 29 February 2020 |
29.2.20 | 28.2.19 |
Notes | £ | £ |
PROFIT FOR THE YEAR | 1,435,911 | 1,113,731 |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
1,435,911 |
1,113,731 |
Total comprehensive income attributable to: |
Owners of the parent | 1,435,911 | 1,113,731 |
LCB Construction Holdings Limited (Registered number: 09435643) |
Consolidated Statement of Financial Position |
29 February 2020 |
29.2.20 | 28.2.19 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 13 | 1,141,290 | 730,110 |
Investments | 14 | - | - |
1,141,290 | 730,110 |
CURRENT ASSETS |
Stocks | 15 | 562,982 | 647,173 |
Debtors | 16 | 5,775,467 | 4,073,465 |
Cash at bank and in hand | 1,679,112 | 2,004,302 |
8,017,561 | 6,724,940 |
CREDITORS |
Amounts falling due within one year | 17 | 5,109,181 | 4,794,913 |
NET CURRENT ASSETS | 2,908,380 | 1,930,027 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
4,049,670 |
2,660,137 |
CREDITORS |
Amounts falling due after more than one year | 18 | (558,061 | ) | (379,739 | ) |
PROVISIONS FOR LIABILITIES | 23 | (103,612 | ) | (72,120 | ) |
NET ASSETS | 3,387,997 | 2,208,278 |
CAPITAL AND RESERVES |
Called up share capital | 24 | 100 | 100 |
Retained earnings | 25 | 3,387,897 | 2,208,178 |
SHAREHOLDERS' FUNDS | 3,387,997 | 2,208,278 |
The financial statements were approved by the director and authorised for issue on 2 November 2020 and were signed by: |
L C Bevan - Director |
LCB Construction Holdings Limited (Registered number: 09435643) |
Company Statement of Financial Position |
29 February 2020 |
29.2.20 | 28.2.19 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 13 | - | - |
Investments | 14 |
CURRENT ASSETS |
Debtors | 16 |
CREDITORS |
Amounts falling due within one year | 17 |
NET CURRENT ASSETS/(LIABILITIES) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CAPITAL AND RESERVES |
Called up share capital | 24 |
Retained earnings |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | 271,742 | 201,529 |
The financial statements were approved by the director and authorised for issue on |
LCB Construction Holdings Limited (Registered number: 09435643) |
Consolidated Statement of Changes in Equity |
for the Year Ended 29 February 2020 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 March 2018 | 100 | 1,295,976 | 1,296,076 |
Changes in equity |
Dividends | - | (201,529 | ) | (201,529 | ) |
Total comprehensive income | - | 1,113,731 | 1,113,731 |
Balance at 28 February 2019 | 100 | 2,208,178 | 2,208,278 |
Changes in equity |
Dividends | - | (256,192 | ) | (256,192 | ) |
Total comprehensive income | - | 1,435,911 | 1,435,911 |
Balance at 29 February 2020 | 100 | 3,387,897 | 3,387,997 |
LCB Construction Holdings Limited (Registered number: 09435643) |
Company Statement of Changes in Equity |
for the Year Ended 29 February 2020 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 March 2018 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 28 February 2019 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 29 February 2020 |
LCB Construction Holdings Limited (Registered number: 09435643) |
Consolidated Statement of Cash Flows |
for the Year Ended 29 February 2020 |
29.2.20 | 28.2.19 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 738,790 | 1,991,416 |
Interest paid | (431 | ) | (4,168 | ) |
Interest element of hire purchase payments paid | (12,508 | ) | (19,174 | ) |
Tax paid | (263,251 | ) | (151,212 | ) |
Net cash from operating activities | 462,600 | 1,816,862 |
Cash flows from investing activities |
Purchase of tangible fixed assets | (910,910 | ) | (468,125 | ) |
Sale of tangible fixed assets | 131,317 | 166 |
Net cash from investing activities | (779,593 | ) | (467,959 | ) |
Cash flows from financing activities |
New loans in year | 750,455 | 418,387 |
Capital repayments in year | (501,692 | ) | (245,847 | ) |
Amount introduced by directors | 188,277 | 201,529 |
Amount withdrawn by directors | (189,045 | ) | (210,514 | ) |
Equity dividends paid | (256,192 | ) | (201,529 | ) |
Net cash from financing activities | (8,197 | ) | (37,974 | ) |
(Decrease)/increase in cash and cash equivalents | (325,190 | ) | 1,310,929 |
Cash and cash equivalents at beginning of year | 2 | 2,004,302 | 693,373 |
Cash and cash equivalents at end of year | 2 | 1,679,112 | 2,004,302 |
LCB Construction Holdings Limited (Registered number: 09435643) |
Notes to the Consolidated Statement of Cash Flows |
for the Year Ended 29 February 2020 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
29.2.20 | 28.2.19 |
£ | £ |
Profit before taxation | 1,785,025 | 1,388,048 |
Depreciation charges | 355,580 | 218,744 |
Loss on disposal of fixed assets | 12,833 | - |
Finance costs | 12,939 | 23,342 |
2,166,377 | 1,630,134 |
Decrease/(increase) in stocks | 84,191 | (559,973 | ) |
Increase in trade and other debtors | (1,701,235 | ) | (1,768,934 | ) |
Increase in trade and other creditors | 189,457 | 2,690,189 |
Cash generated from operations | 738,790 | 1,991,416 |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts: |
Year ended 29 February 2020 |
29.2.20 | 1.3.19 |
£ | £ |
Cash and cash equivalents | 1,679,112 | 2,004,302 |
Year ended 28 February 2019 |
28.2.19 | 1.3.18 |
£ | £ |
Cash and cash equivalents | 2,004,302 | 693,373 |
3. | ANALYSIS OF CHANGES IN NET FUNDS/(DEBT) |
At 1.3.19 | Cash flow | At 29.2.20 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 2,004,302 | (325,190 | ) | 1,679,112 |
2,004,302 | (325,190 | ) | 1,679,112 |
Debt |
Finance leases | (624,492 | ) | (253,085 | ) | (877,577 | ) |
Debts falling due within 1 year | (4,323 | ) | 4,323 | - |
(628,815 | ) | (248,762 | ) | (877,577 | ) |
Total | 1,375,487 | (573,952 | ) | 801,535 |
LCB Construction Holdings Limited (Registered number: 09435643) |
Notes to the Consolidated Financial Statements |
for the Year Ended 29 February 2020 |
1. | COMPANY INFORMATION |
LCB Construction Holdings Limited ('the Company' is a holding company and the activities of its main subsidiaries are disclosed in the Group Strategic Report. |
2. | STATUTORY INFORMATION |
LCB Construction Holdings Limited is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
3. | STATEMENT OF COMPLIANCE |
4. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
The principal accounting policies applied in the preparation of these consolidated and separate financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated. |
The financial statements have been prepared under the historical cost convention. |
These consolidated and separated financial statements are prepared on a going concern basis, under the historical cost convention, as modified by the recognition of certain financial assets and liabilities measured at fair value. |
The preparation of financial statements requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the group and company accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements note are detailed in accounting policy 'significant judgements and estimates'. |
The company has taken advantage of the exemptions in section 408 of the Companies Act 2006 from disclosing its individual profit and loss account. |
Exemptions for qualifying entities under FRS102 |
FRS 102 allows a qualifying entity certain disclosure exemptions, subject to certain conditions, which have been complied with, including notification of, and no objection to, the use of exemptions by the Company's shareholders. |
The company has taken advantage of the following exemptions: |
(i) | from preparing a statement of cash flows, on the basis that it is a qualifying entity and the consolidated statement of cash flows, included in these financial statements, includes the company's cash flows; |
(ii) | from the financial instrument disclosures, required under FRS 102 paragraphs 11.39 to 11.48A and paragraphs 12.26 to 12.29, as the information is provided in the consolidated financial statement disclosures; |
(iii) | from disclosing the Company key management personnel compensation, as required by FRS 102 paragraph 33.7. |
LCB Construction Holdings Limited (Registered number: 09435643) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 29 February 2020 |
4. | ACCOUNTING POLICIES - continued |
Basis of consolidation |
The Group consolidated financial statements include the financial statements of the company and all its subsidiary undertakings. made up to 29 February 2020. |
A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities. Where the group owns less than 50% of the voting powers of an entity but controls the entity by virtue of an agreement with other investors which give it control of the financial and operating policies of the entity it accounts for that entity as a subsidiary. |
Where a subsidiary has different accounting policies to the group, adjustments are made to those subsidiary financial statements to apply the group's accounting policies when preparing the consolidated financial statements. |
Any subsidiary undertakings sold or acquired during the year are included up to, or from, the dates of change of control or change of significant influence respectively. |
Where control of a subsidiary is lost, the gain or loss is recognised in the consolidated income statement. The cumulative amounts of any exchange differences on translation, recognised in equity, are not included in the gain or loss on disposal and are transferred to retained earnings. The gain or loss also included in other comprehensive income that are required to be reclassified to profit and loss but excludes those amounts that are not required to be reclassified. |
Where control of a subsidiary is achieved in stages, the initial acquisition that gave the group control is accounted for as a business combination. Thereafter where the group increased its controlling interest in the subsidiary the transaction is treated as a transaction between equity holders. Any difference between the fair value of the consideration paid and the carrying amount of the non-controlling interest acquired is recognised directly in equity. No changes are made to the carrying value of assets, liabilities or provisions for contingent liabilities. |
All inter-group transactions, balances, income and expenditure are eliminated on consolidation. Adjustments are made to eliminate the profit or loss on transactions with associates to the extend of the group's interest in the entity. |
Significant judgements and estimates |
Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. |
The application of the group's accounting policies, the management is required to make judgements, estimates and assumptions about the carrying value of assets and liabilities that are not readily apparent from other sources. The estimates and underlying 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. |
The key sources of estimation uncertainty that have significant effect on the amounts recognised in the financial statements are described below: |
a) Useful economic lives of tangible assets |
The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates and physical condition of the assets. |
b) Impairment of debtors |
The company makes an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade and other debtors, management considers factors including the current credit rating of the debtor, the ageing profile of debtors and historical experience. |
LCB Construction Holdings Limited (Registered number: 09435643) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 29 February 2020 |
4. | ACCOUNTING POLICIES - continued |
Revenue recognition |
Revenue is measured at the fair value of the consideration received or receivable and represents the amount receivable for goods supplied or services rendered, net of discounts and rebates allowed by the group and value added tax. |
Where the consideration receivable in cash or cash equivalents is deferred, and the arrangement constitutes a financing transaction, the fair value of the consideration is measured as the present value of all future receipts using the imputed rate of interest. |
The group recognises revenue when (a) the significant risks and rewards of ownership have been transferred to the buyer; (b) the group retains no continuing involvement or control over the goods; (c) the amount of revenue can be measured reliably; (d) it is probable that future economic benefits will flow to the entity and (e) when the specific criteria relating to each of the group's sales channels have been met, as described below. |
i) Sale of goods |
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods has transferred to the buyer. This is usually at the point that the customer has signed for the delivery of the goods. Deposits received in advance for goods are included in creditors due within one year. |
ii) Rendering of services |
Revenue is measured at the fair value of the consideration received or receivable and represents the amount receivable for goods supplied or services rendered, net of discounts and rebates allowed by the company and value added tax. |
Long term contract retention income is only recognised as turnover if received by the date of approval of the company's financial statements for that financial year. |
Contract turnover is calculated as that proportion of total contract value which revenue generated to date bears to total expected revenue for that contract. Revenues derived from variations on contracts are recognised only when they have been accepted by the customer. |
Tangible fixed assets |
Plant and machinery | - |
Fixtures and fittings | - |
Motor vehicles | - |
Tangible fixed assets are measured at cost less depreciation and any accumulated impairment losses. Costs includes the original purchase price, costs directly attributable to bringing the asset to its working condition for its intended use, dismantling and restoration costs. |
The assets' residual values and useful lives are reviewed and adjusted, if appropriate, at the end of each reporting period. The effect of any change is accounted for prospectively. |
Tangible assets are derecognised on disposal or when no future economic benefits are expected. On disposal, the difference between the net disposal proceeds and the carrying value is recognised in the profit and loss. |
Impairment of assets |
At each reporting date fixed assets are reviewed to determine whether there is any indication that those assets have suffered an impairment loss. If there is an indication of possible impairment, the recoverable amount of any affected asset is estimated and compared with its carrying amount. If estimated recoverable amount is lower, the carrying amount is reduced to its estimated recoverable amount, and an impairment loss is recognised immediately in profit or loss. If an impairment loss subsequently reverses, the carry amount of the asset is increased to the revised estimate of its recoverable amount, but not in excess of the amount that would have been determined had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised immediately in profit or loss |
LCB Construction Holdings Limited (Registered number: 09435643) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 29 February 2020 |
4. | ACCOUNTING POLICIES - continued |
Inventories |
Stocks and work in progress are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
Cost is calculated using the first-in, first-out method and includes all purchase, transport, and handling costs in bringing stocks to their present location and condition. |
Stock are stated at the lower of cost, using the first in first out method, and selling price less costs to complete and sell. |
The cost of work in progress includes all direct overheads and an attributable proportion of indirect overheads based on the normal level of activity. Work in progress is valued at the lower of cost and net realisable value. |
At the end of each reporting period stocks are assessed for impairment. If an item of inventory is impaired, the identified inventory is reduced to its selling price less costs to complete and sell and an impairment charge is recognised in the profit and loss account. Where a reversal of the impairment is required the impairment charge is reversed, up to the original impairment loss, and is recognised as a credit in the profit and loss account. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, 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 statement of financial position date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position 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. |
LCB Construction Holdings Limited (Registered number: 09435643) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 29 February 2020 |
4. | ACCOUNTING POLICIES - continued |
Hire purchase and leasing commitments |
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter. |
The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability. |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
At inception the group assesses agreements that transfer the right to use assets. The assessment considers whether the arrangement is, or contains, a lease based on the substance of the arrangement. |
i) Finance leased assets |
Leases of assets that transfer substantially all the risks and rewards incidental to ownership are classified as finance leases. |
Finance leases are capitalised at commencement of the lease as assets at the fair value of the leased asset or, if lower, the present value of the minimum lease payments calculated using the interest rate implicit in the lease. Where the implicit rate cannot be determined the group's incremental borrowing rate is used. Incremental direct costs, incurred in negotiating and arranging the lease, are included in the cost of the asset. |
Assets are depreciated over the shorter of the lease term and the estimated useful life of the asset. Assets are assessed for impairment at each reporting date. |
The capital element of lease obligations is recorded as a liability on inception of the arrangement. Lease payments are apportioned between capital repayment and finance charge, using the effective interest rate method, to produce a constant rate of charge on the balance of the capital repayments outstanding. |
ii) Operating leased assets |
Leases that do not transfer all the risks and rewards of ownership are classified as operating leases. Payments under operating leases are charged to the profit and loss account on a straight-line basis over the period of the lease. |
iii) Lease incentives |
Incentives received to enter into a finance lease reduce the fair value of the asset and are included in the calculation of present value of minimum lease payments. |
Incentives received to enter into an operating lease are credited to the profit and loss account, to reduce the lease expense, on a straight-line basis over the period of the lease. |
Employee benefits |
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
The group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the group pays fixed contributions into a separate entity. Once contributions have been paid the group has no further payment obligations. The contributions are recognised as an expense when they are due. Amounts not paid are shown in accruals in the balance sheet. The assets of the plan are held separately from the group in independently administered funds. |
Other employee benefits such as paid holiday arrangements are recognised as an expense in the period in which they are incurred. |
LCB Construction Holdings Limited (Registered number: 09435643) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 29 February 2020 |
4. | ACCOUNTING POLICIES - continued |
Long term contracts |
Long term contract balances are stated at net cost less foreseeable losses less any applicable payments on account. The amount recorded as turnover in respect of long term contracts is ascertained by reference to the value of work carried out to date, less all attributable profits accumulated on contracts less than 60% complete at the balance sheet date and less 45% of attributable profits on contracts more than 60% and less than 100% complete at the balance sheet date. Attributable profit is recognised as the difference between measured contract valuations and related costs. Amounts recoverable on contracts are shown within debtors in the balance sheet. Full provision is made for losses on all contracts in the period in which they are first foreseen. |
Provisions and contingencies |
i) Provisions |
Provisions are recognised when the group has a present legal or constructive obligation as a result of past events; it is probable that an outflow of resources will be required to settle the obligation; and the amount of the obligation can be estimated reliably. |
Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement is determined by considering the class of obligations as a whole. A provision is recognised even if the likelihood of an outflow with respect to any one item included in the same class of obligations might be small. |
Provisions are measured at the present value of the expenditures expected to be required to settle the obligation using a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the obligation. The increase in the provision due to passage of time is recognised as a finance cost. |
ii) Contingencies |
Contingent liabilities are not recognised, except those acquired in a business combination. Contingent liabilities arise as a result of past events when (i) it is not probable that there will be an outflow of resources or that the amount cannot be reliably measured at the reporting date or (ii) when the existence will be confirmed by the occurrence or non-occurrence of uncertain future events not wholly within the Group's control. Contingent liabilities are disclosed in the financial statements unless the probability of an outflow of resources is remote. |
Contingent assets are not recognised. Contingent assets are disclosed in the financial statements when an inflow of economic benefits is probable. |
LCB Construction Holdings Limited (Registered number: 09435643) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 29 February 2020 |
4. | ACCOUNTING POLICIES - continued |
Financial instruments |
The group has chosen to adopt Sections 11 and 12 of FRS 102 in respect of financial instruments. |
i) Financial assets |
Basic financial assets, including trade and other receivables, and cash and bank balances, are initially recognised at transaction price, 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. |
Such assets are subsequently carried at amortised cost using the effective interest method. |
A financial asset held as an equity instrument is recognised initially at the transaction price (including transaction costs). |
At the end of each reporting period, unlisted investments are recorded at fair value, where appropriate, or at cost less impairment if their fair value cannot be reliably measured. Objective evidence of the impairment of financial assets is assessed at each period end and any impairment loss recognised in the profit or loss immediately. Impairment loss is calculated as the difference between the carrying amount of the instrument and the best estimate of the cash flows expected to be derived from the asset (including sales proceeds if sold) at the balance sheet date. |
Investment income is recognised in the financial statements when the company becomes entitled to its share of profits from the financial instrument. |
At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. 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. |
Other financial assets 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. |
Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party or (c) despite having retained some significant risks and rewards of ownership, control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions. |
ii) Financial liabilities |
Basic financial liabilities, including trade and other payables, bank loans, and loans from fellow Group companies 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 receipts discounted at a market rate of interest. |
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. Fees paid on the establishment of loan facilities are recognised as transaction costs of the loan to the extent that it is probable that some or all of the facility will be drawn down. In this case, the fee is deferred until the draw-down occurs. To the extent there is no evidence that it is probable that some or all of the facility will be drawn down, the fee is capitalised as a pre-payment for liquidity services and amortised over the period of the facility to which it relates. |
Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts 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 payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method. |
Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires. |
LCB Construction Holdings Limited (Registered number: 09435643) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 29 February 2020 |
4. | ACCOUNTING POLICIES - continued |
Share capital |
Ordinary shares |
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new ordinary shares are shown in equity as a deduction, net of tax, from the proceeds. |
Distributions to equity holders |
Dividends and other distributions to the group's shareholders are recognised as a liability in the financial statements in the period in which the dividends and other distributions are approved by the shareholders. These are recognised in the statements of changes in equity. |
Related party transactions |
The group discloses transactions with related parties which are not wholly owned within the same group. Where appropriate, transactions of a similar nature are aggregated unless, in the opinion of the directors, separate disclosure is necessary to understand the effect of the transactions on the group financial statements. |
5. | TURNOVER |
The turnover and profit before taxation are attributable to the one principal activity of the group. |
An analysis of turnover by class of business is given below: |
29.2.20 | 28.2.19 |
£ | £ |
6. | EMPLOYEES AND DIRECTORS |
29.2.20 | 28.2.19 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
The average number of employees during the year was as follows: |
29.2.20 | 28.2.19 |
Administration & managerial staff | 41 | 28 |
Production staff | 89 | 83 |
29.2.20 | 28.2.19 |
£ | £ |
Director's remuneration |
Director's pension contributions to money purchase schemes |
LCB Construction Holdings Limited (Registered number: 09435643) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 29 February 2020 |
6. | EMPLOYEES AND DIRECTORS - continued |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes |
7. | OPERATING PROFIT |
The operating profit is stated after charging: |
29.2.20 | 28.2.19 |
£ | £ |
Hire of plant and machinery |
Other operating leases |
Depreciation - owned assets |
Depreciation - assets on hire purchase contracts |
Loss on disposal of fixed assets |
Auditors' remuneration |
Other non- audit services |
Motor vehicle leasing |
8. | INTEREST PAYABLE AND SIMILAR EXPENSES |
29.2.20 | 28.2.19 |
£ | £ |
Bank loan interest |
Other interest |
Hire purchase |
9. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
29.2.20 | 28.2.19 |
£ | £ |
Current tax: |
UK corporation tax |
Under/(over) provision of tax | (6,308 | ) | - |
Total current tax |
Deferred tax |
Tax on profit |
LCB Construction Holdings Limited (Registered number: 09435643) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 29 February 2020 |
9. | TAXATION - continued |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
29.2.20 | 28.2.19 |
£ | £ |
Profit before tax |
Profit multiplied by the standard rate of corporation tax in the UK of |
Effects of: |
Expenses not deductible for tax purposes |
Capital allowances in excess of depreciation | ( |
) | ( |
) |
Deferred taxation | (2,726 | ) | 11,066 |
Total tax charge | 349,114 | 274,317 |
10. | INDIVIDUAL INCOME STATEMENT |
As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
11. | DIVIDENDS |
29.2.20 | 28.2.19 |
£ | £ |
Ordinary shares of £1 each |
Interim |
A Ordinary shares of £1 each |
Interim |
B Ordinary shares of £1 each |
Interim |
12. | DEFINED CONTRIBUTION PENSION SCHEMES |
The group operates a defined contribution scheme for certain employees and contributions to separate individual defined contribution schemes for certain directors. The assets of all schemes are held separately from those of the group in independently administered funds. The pension cost charge represents contributions payable by the group to the funds and amounted to £105,524 (2019 - £38,261). At the year end the amount outstanding was £18,377 (2019 - £10,082l). |
LCB Construction Holdings Limited (Registered number: 09435643) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 29 February 2020 |
13. | TANGIBLE FIXED ASSETS |
Group |
Fixtures |
Plant and | and | Motor |
machinery | fittings | vehicles | Totals |
£ | £ | £ | £ |
COST |
At 1 March 2019 |
Additions |
Disposals | ( |
) | ( |
) | ( |
) |
At 29 February 2020 |
DEPRECIATION |
At 1 March 2019 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) | ( |
) |
At 29 February 2020 |
NET BOOK VALUE |
At 29 February 2020 |
At 28 February 2019 |
Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
Plant and | Motor |
machinery | vehicles | Totals |
£ | £ | £ |
COST |
At 1 March 2019 |
Additions |
Disposals | ( |
) | ( |
) |
Reclassification/transfer | ( |
) | ( |
) |
At 29 February 2020 |
DEPRECIATION |
At 1 March 2019 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) |
Reclassification/transfer | ( |
) | ( |
) |
At 29 February 2020 |
NET BOOK VALUE |
At 29 February 2020 |
At 28 February 2019 |
LCB Construction Holdings Limited (Registered number: 09435643) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 29 February 2020 |
14. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1 March 2019 |
and 29 February 2020 |
NET BOOK VALUE |
At 29 February 2020 |
At 28 February 2019 |
The group or the company's investments at the Statement of Financial Position date in the share capital of companies include the following: |
Subsidiaries |
Registered office: England and Wales |
Nature of business: |
% |
Class of shares: | holding |
Registered office: England and Wales |
Nature of business: |
% |
Class of shares: | holding |
Registered office: England and Wales |
Nature of business: |
% |
Class of shares: | holding |
15. | STOCKS |
Group |
29.2.20 | 28.2.19 |
£ | £ |
Stocks | 122,820 | 84,540 |
Work-in-progress | 440,162 | 562,633 |
562,982 | 647,173 |
LCB Construction Holdings Limited (Registered number: 09435643) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 29 February 2020 |
16. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
29.2.20 | 28.2.19 | 29.2.20 | 28.2.19 |
£ | £ | £ | £ |
Trade debtors | 2,222,676 | 1,755,102 |
Amounts recoverable on contract | 2,581,330 | 1,420,854 |
Other debtors | 770,241 | 677,072 |
Directors' current accounts | 131,008 | 130,240 | - | - |
Prepayments and accrued income | 70,212 | 90,197 |
5,775,467 | 4,073,465 |
17. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
29.2.20 | 28.2.19 | 29.2.20 | 28.2.19 |
£ | £ | £ | £ |
Bank loans and overdrafts (see note 19) | - | 4,323 |
Hire purchase contracts (see note 20) | 319,516 | 244,753 |
Trade creditors | 2,278,629 | 1,824,798 |
Amounts owed to group undertakings | - | - |
Tax | 317,621 | 263,250 |
Social security and other taxes | 132,907 | 118,413 |
VAT | 512,056 | 476,113 | - | - |
Other creditors | 209,518 | 967,971 |
Retention | 210,569 | 152,632 | - | - |
Directors' current accounts | - | - | 200 | 200 |
Accrued expenses | 1,128,365 | 742,660 |
5,109,181 | 4,794,913 |
18. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group |
29.2.20 | 28.2.19 |
£ | £ |
Hire purchase contracts (see note 20) | 558,061 | 379,739 |
19. | LOANS |
An analysis of the maturity of loans is given below: |
Group |
29.2.20 | 28.2.19 |
£ | £ |
Amounts falling due within one year or on demand: |
Bank loans | - | 4,323 |
LCB Construction Holdings Limited (Registered number: 09435643) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 29 February 2020 |
20. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Hire purchase contracts |
29.2.20 | 28.2.19 |
£ | £ |
Net obligations repayable: |
Within one year | 319,516 | 244,753 |
Between one and five years | 558,061 | 379,739 |
877,577 | 624,492 |
Group |
Non-cancellable operating | leases |
29.2.20 | 28.2.19 |
£ | £ |
Within one year | 11,732 | 7,463 |
Between one and five years | 206,560 | 300,203 |
218,292 | 307,666 |
21. | SECURED DEBTS |
The following secured debts are included within creditors: |
Group |
29.2.20 | 28.2.19 |
£ | £ |
Bank loans | - | 4,323 |
Hire purchase contracts | 877,577 | 624,492 |
877,577 | 628,815 |
Hire purchase and finance agreements are secured upon the assets to which they relate. |
Bank loans and overdrafts are secured by a fixed charge over all company assets. |
LCB Construction Holdings Limited (Registered number: 09435643) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 29 February 2020 |
22. | FINANCIAL INSTRUMENTS |
Group |
The Group has the following financial instruments: |
29.02.20 | 28.02.19 |
£ | £ |
Financial assets measured at fair value through profit or loss | - | - |
Financial assets that are debt instruments measured at amortised cost: |
Trade debtors | 2,222,676 | 1,753,199 |
Directors current account | 131,008 | 101,625 |
Amounts recoverable on contracts | 2,581,330 | 1,420,854 |
Other debtors | 770,241 | 710,253 |
5,705,255 | 3,985,931 |
Financial instruments that are equity instruments measured at cost less impairment |
- |
- |
Financial liabilities measured at fair value through the profit or loss | - | - |
Financial liabilities measured at amortised cost: |
Bank loans and overdrafts | - | 4,323 |
Hire purchase contracts | 877,577 | 624,476 |
Trade creditors | 2,278,629 | 1,824,798 |
Other creditors | 1,382,671 | 1,978,379 |
4,538,877 | 4,431,976 |
23. | PROVISIONS FOR LIABILITIES |
Group |
29.2.20 | 28.2.19 |
£ | £ |
Deferred tax |
Accelerated capital allowances | 103,612 | 72,120 |
Group |
Deferred |
tax |
£ |
Balance at 1 March 2019 | 72,120 |
Provided during year | 31,492 |
Balance at 29 February 2020 | 103,612 |
LCB Construction Holdings Limited (Registered number: 09435643) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 29 February 2020 |
24. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 29.2.20 | 28.2.19 |
value: | £ | £ |
Ordinary | £1 | 85 | 85 |
A Ordinary | £1 | 5 | 5 |
B Ordinary | £1 | 10 | 10 |
100 | 100 |
25. | RESERVES |
Group |
Retained |
earnings |
£ |
At 1 March 2019 | 2,208,178 |
Profit for the year | 1,435,911 |
Dividends | (256,192 | ) |
At 29 February 2020 | 3,387,897 |
26. | DIRECTOR'S ADVANCES, CREDITS AND GUARANTEES |
The following advances and credits to a director subsisted during the years ended 29 February 2020 and 28 February 2019: |
29.2.20 | 28.2.19 |
£ | £ |
L C Bevan |
Balance outstanding at start of year | 101,425 | 69,510 |
Amounts advanced | 378,985 | 191,915 |
Amounts repaid | (349,402 | ) | (160,000 | ) |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year | 131,008 | 101,425 |
The director's loan account is repayable on demand and amounts not repaid within 9 months of the year end accrue interest at 2.5% (2019: 2.5%). |
27. | RELATED PARTY DISCLOSURES |
During the year, total dividends of £80,000 were paid to the director . |
LCB Propco Limited is a related party, being a company under the control of the director Mr L Bevan. At the year end LCB Propco Limited owed the company £39,120 (2019: £39,120) |
LCB Propco 2 Limited is a related party, being a company under the control of the director Mr L Bevan. During the year the company provided a loan to LCB Propco 2 Limited of £124,794, this amount was outstanding at the year end. |
Tim O'Brien (Newport) Limited is a related party, being a company under the control of the director Mr L Bevan. During the year the company purchased goods and services from Tim O'Brien (Newport) Limited totalling £127,953 and it also sold good and services to Tim O'Brien (Newport) Limited totalling £8,346. At the year end the company the company owed Tim O'Brien (Newport) Limited £8,021. |
LCB Construction Holdings Limited (Registered number: 09435643) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 29 February 2020 |
28. | ULTIMATE CONTROLLING PARTY |
The controlling party is L C Bevan. |
29. | GUARANTEES |
National Westminster Bank plc holds a charge which includes fixed and floating charges over all assets and undertaking both present and future. |
At the year end Royal Bank of Scotland plc held a charge which includes fixed and floating charges over all assets and undertaking both present and future. This charge was satisfied 3 April 2019. |