Lazinc Limited - Limited company accounts 20.1

REGISTERED NUMBER: 05091966 (England and Wales)

REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 APRIL 2020

FOR

LAZINC LIMITED

Page

Company Information

1

Report of the Directors

2

Report of the Independent Auditors

4

Statement of Income and Retained Earnings

6

Statement of Financial Position

7

Notes to the Financial Statements

8

DIRECTORS:

Alchemy Investments III Sarl

L O'Brien

REGISTERED OFFICE:

2 Jardine House

The Harrovian Business Village

Bessborough Road

Harrow

Middlesex

HA1 3EX

REGISTERED NUMBER:

05091966 (England and Wales)

AUDITORS:

Barber & Company (Statutory Auditors)

A trading name of PCM Accounting Limited

2 Jardine House

Harrovian Business Village

Bessborough Road

Harrow

Middlesex

HA1 3EX

The directors present their report with the financial statements of the company for the year ended 30 April 2020.

CESSATION OF TRADING

The company ceased trading on 30 June 2020.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of retail and distribution of printed artwork.

REVIEW OF BUSINESS

During the year under review, the company made a trading loss before taxation amounting to £1,963,959 (2019: Loss of £4,363,282) and at the balance sheet date, the company had net current liabilities amounting to £4,861,612 (2019: £2,051,892) and net liabilities amounting to £6,083,826 (2019: £4,119,867).

The company ceased to trade as a gallery on 30th June, 2020.

The board have instigated a process of cost rationalisation and are continuing to consider future trading opportunities. The company continues to meet its day to day working capital requirements with the support of its parent company.

The board have taken all of these factors into consideration in their decision to prepare the Financial Statements on a basis other than going concern.

DIVIDENDS

No dividends will be distributed for the year ended 30 April 2020.

DIRECTORS

Alchemy Investments III Sarl has held office during the whole of the period from 1 May 2019 to the date of this report.

Other changes in directors holding office are as follows:

Ms G Lewis - appointed 29 August 2019

L O'Brien was appointed as a director after 30 April 2020 but prior to the date of this report.

S Lazarides and Ms G Lewis ceased to be directors after 30 April 2020 but prior to the date of this report.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing 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, Barber & Company (Statutory Auditors), will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

Alchemy Investments III Sarl - Director

12 October 2020

Opinion

We have audited the financial statements of Lazinc Limited (the 'company') for the year ended 30 April 2020 which comprise the Statement of Income and Retained Earnings, Statement of Financial Position and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including 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 30 April 2020 and of its loss 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.

Emphasis of matter

We draw your attention to Note 2 to the Financial Statements which sets out the basis of preparation of the Financial Statements on a basis other than going concern. Our opinion is not modified in respect of this matter.

Other information

The directors are responsible for the other information. The other information comprises the information in 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 Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Report of the Directors has 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 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; or

-	the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemption from the requirement to prepare a Strategic Report.

Responsibilities of directors

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

Christopher Horsley (Senior Statutory Auditor)

for and on behalf of Barber & Company (Statutory Auditors)

A trading name of PCM Accounting Limited

2 Jardine House

Harrovian Business Village

Bessborough Road

Harrow

Middlesex

HA1 3EX

12 October 2020

REVENUE

2,386,682

3,300,678

Cost of sales

2,405,821

3,237,762

GROSS (LOSS)/PROFIT

(19,139

)

62,916

Administrative expenses

1,925,300

4,403,138

(1,944,439

)

(4,340,222

)

Other operating income

-

7,284

OPERATING LOSS

4

(1,944,439

)

(4,332,938

)

Interest receivable and similar income

480

99

(1,943,959

)

(4,332,839

)

Interest payable and similar expenses

5

20,000

30,443

LOSS BEFORE TAXATION

(1,963,959

)

(4,363,282

)

Tax on loss

6

-

-

LOSS FOR THE FINANCIAL YEAR

(1,963,959

)

(4,363,282

)

Retained earnings at beginning of year

(6,119,932

)

(1,756,650

)

RETAINED EARNINGS AT END OF YEAR

(8,083,891

)

(6,119,932

)

FIXED ASSETS

Property, plant and equipment

7

70,786

88,692

CURRENT ASSETS

Inventories

8

239,063

482,240

Debtors

9

361,414

646,570

Cash at bank and in hand

7,464

64,910

607,941

1,193,720

CREDITORS

Amounts falling due within one year

10

5,469,553

3,245,612

NET CURRENT LIABILITIES

(4,861,612

)

(2,051,892

)

TOTAL ASSETS LESS CURRENT LIABILITIES

(4,790,826

)

(1,963,200

)

CREDITORS

Amounts falling due after more than one year

11

1,293,000

2,156,667

NET LIABILITIES

(6,083,826

)

(4,119,867

)

CAPITAL AND RESERVES

Called up share capital

12

325

325

Share premium

13

1,999,740

1,999,740

Retained earnings

13

(8,083,891

)

(6,119,932

)

SHAREHOLDERS' FUNDS

(6,083,826

)

(4,119,867

)

The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the Board of Directors and authorised for issue on 12 October 2020 and were signed on its behalf by:

L O'Brien - Director

Alchemy Investments III Sarl - Director

1.	STATUTORY INFORMATION

Lazinc 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" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

During the year under review, the company made a trading loss before taxation amounting to £1,963,959 (2019: Loss of £4,363,282) and at the balance sheet date, the company had net current liabilities amounting to £4,861,612 (2019: £2,051,892) and net liabilities amounting to £6,083,826 (2019: £4,119,867).

The company ceased to trade as a gallery on 30th June, 2020.

The board have instigated a process of cost rationalisation and are continuing to consider future trading opportunities. The company continues to meet its day to day working capital requirements with the support of its parent company.

The board have taken all of these factors into consideration in their decision to prepare the Financial Statements on a basis other than going concern, which includes, where appropriate, writing down assets to net realisable value. Provision is made for any contractual commitments that have become onerous at the balance sheet date. The Financial Statements do not include any provision for the future costs of closure of the gallery, except to the extent that such costs were committed at the balance sheet date.

Turnover

Revenue is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Leasehold improvements

-

5 years or life of the lease if lower

Fixtures and fittings

-

25% on reducing balance

Plant, machinery and computer equipment

-

25% on reducing balance

Stocks

Inventories are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Income and Retained Earnings, 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.

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.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 9 (2019 - 15 ) .

4.	OPERATING LOSS

The operating loss is stated after charging:

30.4.20

30.4.19

£

£

Depreciation - owned assets

28,144

29,424

5.

INTEREST PAYABLE AND SIMILAR EXPENSES

30.4.20

30.4.19

£

£

Bank interest

-

2,647

Loan interest

20,000

27,796

20,000

30,443

6.

TAXATION

Analysis of the tax charge

No liability to UK corporation tax arose for the year ended 30 April 2020 nor for the year ended 30 April 2019.

7.	PROPERTY, PLANT AND EQUIPMENT

Plant,

machinery

Fixtures

and

Leasehold

and

computer

improvements

fittings

equipment

Totals

£

£

£

£

COST

At 1 May 2019

2,090

83,797

73,727

159,614

Additions

-

23,649

236

23,885

Fixed asset provisions

-

-

(37,720

)

(37,720

)

At 30 April 2020

2,090

107,446

36,243

145,779

DEPRECIATION

At 1 May 2019

418

36,396

34,108

70,922

Charge for year

418

17,763

9,963

28,144

Fixed asset provisions

-

-

(24,073

)

(24,073

)

At 30 April 2020

836

54,159

19,998

74,993

NET BOOK VALUE

At 30 April 2020

1,254

53,287

16,245

70,786

At 30 April 2019

1,672

47,401

39,619

88,692

8.	INVENTORIES

30.4.20

30.4.19

£

£

Stocks

239,063

482,240

9.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

30.4.20

30.4.19

£

£

Trade debtors

52,701

193,219

Other debtors

308,713

453,351

361,414

646,570

10.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

30.4.20

30.4.19

£

£

Trade creditors

2,462,063

1,563,496

Amounts owed to group undertakings

1,525,500

53,333

Social security and other taxes

23,324

6,138

Other creditors

1,448,118

625,854

Accruals & deferred income

10,548

996,791

5,469,553

3,245,612

11.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

30.4.20

30.4.19

£

£

Amounts owed to group undertakings

1,293,000

2,156,667

12.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

30.4.20

30.4.19

value:

£

£

65

Ordinary A

£1

65

65

65

Ordinary B

£1

260

260

325

325

13.

RESERVES

Retained

Share

earnings

premium

Totals

£

£

£

At 1 May 2019

(6,119,932

)

1,999,740

(4,120,192

)

Deficit for the year

(1,963,959

)

(1,963,959

)

At 30 April 2020

(8,083,891

)

1,999,740

(6,084,151

)