Lunovi Limited - Limited company accounts 22.3
Lunovi Limited - Limited company accounts 22.3
REGISTERED NUMBER: 09742722 (England and Wales) |
GROUP STRATEGIC REPORT, REPORT OF THE DIRECTOR AND |
CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 |
FOR |
LUNOVI LIMITED |
LUNOVI LIMITED (REGISTERED NUMBER: 09742722) |
CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2021 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Director | 3 |
Report of the Independent Auditors | 4 |
Consolidated Income Statement | 7 |
Consolidated Other Comprehensive Income | 8 |
Consolidated Statement of Financial Position | 9 |
Company Statement of Financial Position | 10 |
Consolidated Statement of Changes in Equity | 11 |
Company Statement of Changes in Equity | 12 |
Consolidated Statement of Cash Flows | 13 |
Notes to the Consolidated Statement of Cash Flows | 14 |
Notes to the Consolidated Financial Statements | 15 |
LUNOVI LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 31 DECEMBER 2021 |
DIRECTOR: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Eagle House |
28 Billing Road |
Northampton |
Northamptonshire |
NN1 5AJ |
LUNOVI LIMITED (REGISTERED NUMBER: 09742722) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 31 DECEMBER 2021 |
The director presents his strategic report of the company and the group for the year ended 31 December 2021. |
The trading results for the period and the group's financial position at the end of the period are shown in the attached financial statements. |
REVIEW OF BUSINESS |
Total turnover on continuing operations decreased during the year by £14.6m due to timing of contracts. Net profit before tax decreased to £2.7m as a result and decreased to 18% from 43% as a percentage on sales. |
PRINCIPAL RISKS AND UNCERTAINTIES |
The group's activities expose it to a number of financial risks including credit risk, liquidity risk and currency risk. The group does not use derivative financial instruments for speculative purposes. |
Credit risk |
The group's principal financial assets are bank balances and trade debtors. |
The group's credit risk is primarily attributable to its trade debtors. The amounts presented in the balance sheet are net of allowances for doubtful debts. The credit risk on bank balances is limited because the counterparties are banks with high credit-ratings assigned by international credit-rating agencies. |
The group has some concentration of credit risk to a small number of major customers. However, a number of these are national defence agencies and other government departments and so this risk is considered to be limited. The group's exposure to commercial customers is managed on an account by account basis to ensure these don't exceed agreed credit limits. |
Liquidity risk |
In order to maintain liquidity to ensure that sufficient funds are available for on-going operations and future developments, the group uses a mixture of long-term and short-term debt finance and equity funding and inter-company treasury management. |
Currency risk |
The group undertakes trading transactions in currencies other than sterling and has funding instruments denominated in foreign currency. The foreign exchange risk is managed by holding cash resources in foreign currency. |
KEY PERFORMANCE INDICATORS |
The group uses order intake, production levels, turnover and profit as key performance indicators to monitor performance. |
SIGNED BY ORDER OF THE DIRECTORS: |
LUNOVI LIMITED (REGISTERED NUMBER: 09742722) |
REPORT OF THE DIRECTOR |
FOR THE YEAR ENDED 31 DECEMBER 2021 |
The director presents his report with the financial statements of the company and the group for the year ended 31 December 2021. |
PRINCIPAL ACTIVITIES |
The principal activities of the group in the year under review were those of the design, manufacture and supply of training munitions, diverse Industrial products and Medical devices. |
DIVIDENDS |
No dividends will be distributed for the year ended 31 December 2021. |
DIRECTOR |
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, DNG Dove Naish LLP, Statutory Auditor, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
SIGNED BY ORDER OF THE DIRECTORS: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
LUNOVI LIMITED |
Opinion |
We have audited the financial statements of Lunovi Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2021 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 31 December 2021 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 |
In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the director with respect to going concern are described in the relevant sections of this report. |
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 this gives rise to a material misstatement in the financial statements themselves. 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. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
LUNOVI LIMITED |
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. |
Responsibilities of director |
As explained more fully in the Statement of Director's Responsibilities set out on page three, 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. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
LUNOVI LIMITED |
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. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
We obtained an understanding of the legal and regulatory frameworks within which the company operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Companies Act 2006, United Kingdom Generally Accepted Accounting Practice and relevant Taxation legislation. |
We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be the override of controls by management and the understatement of revenue. Our audit procedures to respond to these risks included enquiries of management about their own identification and assessment of the risks of irregularities, sample testing on the posting of journals, reviewing meeting minutes, regulatory correspondence and professional fees, detailed substantive testing on the completeness of income, and reviewing accounting estimates for biases. |
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations. |
These inherent limitations are particularly significant in the case of misstatement resulting from fraud as this may involve sophisticated schemes designed to avoid detection, including deliberate failure to record transactions, collusion or the provision of intentional misrepresentations. |
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 |
Eagle House |
28 Billing Road |
Northampton |
Northamptonshire |
NN1 5AJ |
LUNOVI LIMITED (REGISTERED NUMBER: 09742722) |
CONSOLIDATED INCOME STATEMENT |
FOR THE YEAR ENDED 31 DECEMBER 2021 |
2021 | 2020 |
Notes | £ | £ | £ | £ |
TURNOVER | 3 | 14,457,861 | 29,099,870 |
Cost of sales | 8,279,063 | 12,816,144 |
GROSS PROFIT | 6,178,798 | 16,283,726 |
Administrative expenses | 3,782,547 | 3,990,451 |
2,396,251 | 12,293,275 |
Other operating income | 369,061 | 351,737 |
OPERATING PROFIT | 6 | 2,765,312 | 12,645,012 |
Interest receivable and similar income | 13,641 | 8,083 |
2,778,953 | 12,653,095 |
Interest payable and similar expenses | 7 | 10,155 | 37,648 |
Other finance costs | 19 | 100,000 | 83,000 |
110,155 | 120,648 |
PROFIT BEFORE TAXATION | 2,668,798 | 12,532,447 |
Tax on profit | 8 | 431,447 | 1,440,391 |
PROFIT FOR THE FINANCIAL YEAR |
Profit attributable to: |
Owners of the parent | 2,237,351 | 11,092,056 |
LUNOVI LIMITED (REGISTERED NUMBER: 09742722) |
CONSOLIDATED OTHER COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 31 DECEMBER 2021 |
2021 | 2020 |
Notes | £ | £ |
PROFIT FOR THE YEAR | 2,237,351 | 11,092,056 |
OTHER COMPREHENSIVE INCOME/(LOSS) |
Actuarial gain/(loss) on pension scheme | 1,418,000 | (2,824,000 | ) |
Income tax relating to other comprehensive income/(loss) |
- |
- |
OTHER COMPREHENSIVE INCOME/(LOSS) FOR THE YEAR, NET OF INCOME TAX |
1,418,000 |
(2,824,000 |
) |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
3,655,351 |
8,268,056 |
Total comprehensive income attributable to: |
Owners of the parent | 3,655,351 | 8,268,056 |
LUNOVI LIMITED (REGISTERED NUMBER: 09742722) |
CONSOLIDATED STATEMENT OF FINANCIAL POSITION |
31 DECEMBER 2021 |
2021 | 2020 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 10 | 5,377,191 | 4,520,937 |
Investments | 11 |
Interest in associate | 4,143,030 | - |
Investment property | 12 | 1,891,699 | 1,891,699 |
11,411,920 | 6,412,636 |
CURRENT ASSETS |
Stocks | 13 | 5,728,400 | 4,659,527 |
Debtors | 14 | 4,055,295 | 2,722,972 |
Cash at bank and in hand | 6,984,629 | 12,565,432 |
16,768,324 | 19,947,931 |
CREDITORS |
Amounts falling due within one year | 15 | 5,846,594 | 6,364,268 |
NET CURRENT ASSETS | 10,921,730 | 13,583,663 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
22,333,650 |
19,996,299 |
PENSION LIABILITY | 19 | (5,359,000 | ) | (6,677,000 | ) |
NET ASSETS | 16,974,650 | 13,319,299 |
CAPITAL AND RESERVES |
Called up share capital | 17 | 1,000 | 1,000 |
Revaluation reserve | 18 | 379,567 | 379,567 |
Capital contribution reserve | 18 | 35,345 | 35,345 |
Retained earnings | 18 | 16,558,738 | 12,903,387 |
SHAREHOLDERS' FUNDS | 16,974,650 | 13,319,299 |
The financial statements were approved by the director and authorised for issue on 15 December 2022 and were signed by: |
P Mehta - Director |
LUNOVI LIMITED (REGISTERED NUMBER: 09742722) |
COMPANY STATEMENT OF FINANCIAL POSITION |
31 DECEMBER 2021 |
2021 | 2020 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 10 |
Investments | 11 |
Investment property | 12 |
CURRENT ASSETS |
Debtors | 14 |
Cash at bank |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CAPITAL AND RESERVES |
Called up share capital | 17 |
Capital contribution reserve | 18 |
Retained earnings | 18 |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | 4,958,017 | 1,575,946 |
The financial statements were approved by the director and authorised for issue on |
LUNOVI LIMITED (REGISTERED NUMBER: 09742722) |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 DECEMBER 2021 |
Called up | Capital |
share | Retained | Revaluation | contribution | Total |
capital | earnings | reserve | reserve | equity |
£ | £ | £ | £ | £ |
Balance at 1 January 2020 | 1,000 | 4,635,331 | 379,567 | 35,345 | 5,051,243 |
Changes in equity |
Total comprehensive income | - | 8,268,056 | - | - | 8,268,056 |
Balance at 31 December 2020 | 1,000 | 12,903,387 | 379,567 | 35,345 | 13,319,299 |
Changes in equity |
Total comprehensive income | - | 3,655,351 | - | - | 3,655,351 |
Balance at 31 December 2021 | 1,000 | 16,558,738 | 379,567 | 35,345 | 16,974,650 |
LUNOVI LIMITED (REGISTERED NUMBER: 09742722) |
COMPANY STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 DECEMBER 2021 |
Called up | Capital |
share | Retained | contribution | Total |
capital | earnings | reserve | equity |
£ | £ | £ | £ |
Balance at 1 January 2020 | ( |
) |
Changes in equity |
Total comprehensive income | - |
Balance at 31 December 2020 |
Changes in equity |
Total comprehensive income | - |
Balance at 31 December 2021 |
LUNOVI LIMITED (REGISTERED NUMBER: 09742722) |
CONSOLIDATED STATEMENT OF CASH FLOWS |
FOR THE YEAR ENDED 31 DECEMBER 2021 |
2021 | 2020 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 2,383,547 | 13,538,300 |
Interest paid | (10,155 | ) | (37,648 | ) |
Tax paid | (2,210,871 | ) | - |
Net cash from operating activities | 162,521 | 13,500,652 |
Cash flows from investing activities |
Purchase of tangible fixed assets | (1,312,233 | ) | (54,206 | ) |
Purchase of fixed asset investments | (4,143,030 | ) | - |
Sale of tangible fixed assets | 39,000 | - |
Interest received | 13,641 | 8,083 |
Net cash from investing activities | (5,402,622 | ) | (46,123 | ) |
Cash flows from financing activities |
Loan repayments in year | (340,702 | ) | (7,267,457 | ) |
Net cash from financing activities | (340,702 | ) | (7,267,457 | ) |
(Decrease)/increase in cash and cash equivalents | (5,580,803 | ) | 6,187,072 |
Cash and cash equivalents at beginning of year |
2 |
12,565,432 |
6,378,360 |
Cash and cash equivalents at end of year |
2 |
6,984,629 |
12,565,432 |
LUNOVI LIMITED (REGISTERED NUMBER: 09742722) |
NOTES TO THE CONSOLIDATED STATEMENT OF CASH FLOWS |
FOR THE YEAR ENDED 31 DECEMBER 2021 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2021 | 2020 |
£ | £ |
Profit before taxation | 2,668,798 | 12,532,447 |
Depreciation charges | 455,980 | 772,739 |
Profit on disposal of fixed assets | (39,000 | ) | - |
Finance costs | 110,155 | 120,648 |
Finance income | (13,641 | ) | (8,083 | ) |
3,182,292 | 13,417,751 |
(Increase)/decrease in stocks | (1,068,873 | ) | 3,402,000 |
Increase in trade and other debtors | (993,290 | ) | (23,647 | ) |
Increase/(decrease) in trade and other creditors | 1,263,418 | (3,257,804 | ) |
Cash generated from operations | 2,383,547 | 13,538,300 |
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 31 December 2021 |
31/12/21 | 1/1/21 |
£ | £ |
Cash and cash equivalents | 6,984,629 | 12,565,432 |
Year ended 31 December 2020 |
31/12/20 | 1/1/20 |
£ | £ |
Cash and cash equivalents | 12,565,432 | 6,378,360 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1/1/21 | Cash flow | At 31/12/21 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 12,565,432 | (5,580,803 | ) | 6,984,629 |
12,565,432 | (5,580,803 | ) | 6,984,629 |
Debt |
Debts falling due within 1 year | (3,296,220 | ) | 340,701 | (2,955,519 | ) |
(3,296,220 | ) | 340,701 | (2,955,519 | ) |
Total | 9,269,212 | (5,240,102 | ) | 4,029,110 |
LUNOVI LIMITED (REGISTERED NUMBER: 09742722) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2021 |
1. | STATUTORY INFORMATION |
Lunovi Limited is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Basis of consolidation |
The consolidated financial statements incorporate the financial statements of the company and entities controlled by the company (its subsidiaries and joint ventures) made up to 31 December each period. Control is achieved where the company has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities. |
Subsidiaries |
Subsidiaries are fully consolidated from the date on which control is transferred to the group and de-consolidated from the date that control ceases. |
Inter-company transactions, balances and unrealised gains on transactions between group companies are eliminated. Unrealised losses are also eliminated. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the group. |
The consolidated financial statements incorporate the assets, liabilities and results of the following entities in accordance with the accounting policy described above: |
Name of entity |
Registered office |
Country of incorporation |
Class ofshares held |
Equity holding % |
JEB Technologies Limited | As parent | UK | Ordinary | 100 |
UTM Limited | As parent | UK | Ordinary | 100 |
Lunpro Limited | As parent | UK | Ordinary | 100 |
Significant judgements and estimates |
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 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 are disclosed within the individual accounting policies below. |
Turnover |
Turnover represents the value, excluding Value Added Tax, of goods and services supplied to customers during the year. Income is recognised when significant risks and rewards of ownership of the goods have been transferred to the buyer, which depending on the specific contract terms is either on dispatch or delivery of goods. Turnover on customer development and construction projects is recognised in accordance with agreed milestones being met. |
LUNOVI LIMITED (REGISTERED NUMBER: 09742722) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2021 |
2. | ACCOUNTING POLICIES - continued |
Tangible fixed assets |
Plant and machinery | - |
Fixtures and fittings | - |
Motor vehicles | - |
No depreciation is provided on a long term leasehold property where the lease is for a 999 year period, as in the opinion of the directors, the residual value is such that any depreciation charge would be immaterial. |
Freehold buildings are improved such that residual values of these properties, based on prices prevailing at the time of acquisition, are at least equal to their book values. It is the opinion of the Directors that depreciation on any such properties as required by the Companies Act and accounting standards would not be material. |
Other leasehold property is depreciated over the life of the lease. |
Fixed assets are stated at cost less accumulated depreciation and accumulated impairment losses. Where parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate items of property, plant and equipment. |
Depreciation methods, useful lives and residual values are reviewed at each balance sheet date. The selection of these residual values and estimated lives requires the exercise of judgement. The directors are required to assess whether there is an indication of impairment to the carrying value of assets. In making that assessment, judgements are made in estimating value in use. The director considers that the individual carrying values of assets are supportable by their value in use. |
Investments in associates |
Investments in associate undertakings are recognised at cost. |
Investment property |
Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in profit or loss. |
Stocks |
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. |
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. |
LUNOVI LIMITED (REGISTERED NUMBER: 09742722) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2021 |
2. | ACCOUNTING POLICIES - continued |
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. |
Research and development |
Expenditure on research and development is written off in the year in which it is incurred. |
Foreign currencies |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the statement of financial position date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result. |
Pension costs and other post-retirement benefits |
The company operates a defined benefit pension scheme in the United Kingdom. The scheme was closed to new members and accruals from 31 October 2003. The assets of the scheme are held separately from those of the company, being invested with insurance companies. |
The pension scheme surplus or deficit is recognised in full on the group balance sheet. The deferred tax relating to a defined benefit asset or liability is offset against the defined benefit asset or liability and not included with other deferred tax assets or liabilities. |
Financial instruments |
Cash and cash equivalents in the balance sheet comprise cash at banks and in hand and short term deposits with an original maturity date of three months or less. |
Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the statement of comprehensive income under administrative expenses. |
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the entity after deducting all of its financial liabilities. |
Where the contractual obligations of financial instruments (including share capital) are equivalent to a similar debt instrument, those financial instruments are classed as financial liabilities. Financial liabilities are presented as such in the balance sheet. Finance costs and gains or losses relating to financial liabilities are included in the profit and loss account. Finance costs are calculated so as to produce a constant rate of return on the outstanding liability. |
Where the contractual terms of share capital do not have any terms meeting the definition of a financial liability then this is classed as an equity instrument. Dividends and distributions relating to equity instruments are debited direct to equity. |
LUNOVI LIMITED (REGISTERED NUMBER: 09742722) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2021 |
3. | TURNOVER |
The turnover and profit before taxation are attributable to the principal activities of the group. |
An analysis of turnover by class of business is given below: |
2021 | 2020 |
£ | £ |
Sale of goods | 14,457,861 | 29,099,870 |
14,457,861 | 29,099,870 |
An analysis of turnover by geographical market is given below: |
2021 | 2020 |
£ | £ |
United Kingdom | 1,232,676 | 1,318,886 |
Europe | 2,721,216 | 6,079,323 |
Rest of the World | 10,503,969 | 21,701,661 |
14,457,861 | 29,099,870 |
4. | EMPLOYEES AND DIRECTORS |
2021 | 2020 |
£ | £ |
Wages and salaries | 3,833,722 | 3,749,643 |
Social security costs | 396,271 | 381,573 |
Other pension costs | 327,796 | 409,003 |
4,557,789 | 4,540,219 |
The average number of employees during the year was as follows: |
2021 | 2020 |
Administration | 38 | 38 |
Production | 93 | 95 |
The average number of employees by undertakings that were proportionately consolidated during the year was 131 (2020 - 133 ) . |
5. | DIRECTORS' EMOLUMENTS |
2021 | 2020 |
£ | £ |
Director's remuneration | 121,779 | 134,968 |
Director's pension contributions to money purchase schemes | 28,086 | 15,384 |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes | 1 | 1 |
LUNOVI LIMITED (REGISTERED NUMBER: 09742722) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2021 |
5. | DIRECTORS' EMOLUMENTS - continued |
Directors emoluments relate entirely to directors of subsidiaries. |
6. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
2021 | 2020 |
£ | £ |
Depreciation - owned assets | 455,979 | 772,739 |
Profit on disposal of fixed assets | (39,000 | ) | - |
Auditors' remuneration | 28,075 | 25,000 |
Foreign exchange differences | 40,263 | 271,541 |
7. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2021 | 2020 |
£ | £ |
Other interest payable | 10,155 | 37,648 |
8. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2021 | 2020 |
£ | £ |
Current tax: |
UK corporation tax | 431,447 | 1,440,391 |
Tax on profit | 431,447 | 1,440,391 |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
2021 | 2020 |
£ | £ |
Profit before tax | 2,668,798 | 12,532,447 |
Profit multiplied by the standard rate of corporation tax in the UK of 19 % (2020 - 19 %) |
507,072 |
2,381,165 |
Effects of: |
Expenses not deductible for tax purposes | 6,616 | 66 |
Capital allowances in excess of depreciation | (79,618 | ) | - |
Depreciation in excess of capital allowances | - | 81,520 |
Utilisation of tax losses | (2,623 | ) | (1,022,360 | ) |
Total tax charge | 431,447 | 1,440,391 |
LUNOVI LIMITED (REGISTERED NUMBER: 09742722) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2021 |
8. | TAXATION - continued |
Tax effects relating to effects of other comprehensive income |
2021 |
Gross | Tax | Net |
£ | £ | £ |
Actuarial gain/(loss) on pension scheme | 1,418,000 | - | 1,418,000 |
2020 |
Gross | Tax | Net |
£ | £ | £ |
Actuarial gain/(loss) on pension scheme | (2,824,000 | ) | - | (2,824,000 | ) |
9. | INDIVIDUAL INCOME STATEMENT |
As permitted by Section 408 of the Companies Act 2006, the Statement of Comprehensive Income of the parent company is not presented as part of these financial statements. |
10. | TANGIBLE FIXED ASSETS |
Group |
Freehold | Fixtures |
& leasehold | Plant and | and | Motor |
property | machinery | fittings | vehicles | Totals |
£ | £ | £ | £ | £ |
COST OR VALUATION |
At 1 January 2021 | 3,198,534 | 4,910,018 | 20,918 | 1,318 | 8,130,788 |
Additions | 847,285 | 464,948 | - | - | 1,312,233 |
At 31 December 2021 | 4,045,819 | 5,374,966 | 20,918 | 1,318 | 9,443,021 |
DEPRECIATION |
At 1 January 2021 | 16,926 | 3,570,689 | 20,918 | 1,318 | 3,609,851 |
Charge for year | 3,276 | 452,703 | - | - | 455,979 |
At 31 December 2021 | 20,202 | 4,023,392 | 20,918 | 1,318 | 4,065,830 |
NET BOOK VALUE |
At 31 December 2021 | 4,025,617 | 1,351,574 | - | - | 5,377,191 |
At 31 December 2020 | 3,181,608 | 1,339,329 | - | - | 4,520,937 |
Freehold and leasehold property includes freehold property with a cost and net book value of £3,772,285. Leasehold property has a cost of £273,534 and net book value of £256,608. |
LUNOVI LIMITED (REGISTERED NUMBER: 09742722) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2021 |
10. | TANGIBLE FIXED ASSETS - continued |
Group |
Freehold and leasehold property were revalued on an open market basis in 2012 by Savills, an independent firm of Chartered Surveyors. The group has decided to adopt the transitional provisions available under FRS 102 and the revalued amount will be used as the deemed cost going forward. |
If freehold and leasehold property had not been revalued they would have been included at the following historical cost: |
2021 | 2020 |
£ | £ |
Cost | 2,890,741 | 2,890,741 |
Aggregate depreciation | 76,415 | 73,415 |
11. | FIXED ASSET INVESTMENTS |
Group |
Interest |
in |
associate |
£ |
COST |
Additions | 4,143,030 |
At 31 December 2021 | 4,143,030 |
NET BOOK VALUE |
At 31 December 2021 | 4,143,030 |
Company |
Shares in | Interest |
group | in |
undertakings | associate | Totals |
£ | £ | £ |
COST |
At 1 January 2021 | - | 2,327 |
Additions | 4,143,030 |
At 31 December 2021 | 4,145,357 |
NET BOOK VALUE |
At 31 December 2021 | 4,145,357 |
At 31 December 2020 | 2,327 |
LUNOVI LIMITED (REGISTERED NUMBER: 09742722) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2021 |
11. | FIXED ASSET INVESTMENTS - continued |
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: Hampstead Avenue, Mildenhall, Suffolk, IP28 7AS |
Nature of business: |
% |
Class of shares: | holding |
2021 | 2020 |
£ | £ |
Aggregate capital and reserves | ( |
) | ( |
) |
(Loss)/profit for the year | ( |
) |
Registered office: Hampstead Avenue, Mildenhall, Suffolk, IP28 7AS |
Nature of business: |
% |
Class of shares: | holding |
2021 | 2020 |
£ | £ |
Aggregate capital and reserves |
Profit for the year |
Registered office: Hampstead Avenue, Mildenhall, Suffolk, IP28 7AS |
Nature of business: |
% |
Class of shares: | holding |
2021 | 2020 |
£ | £ |
Aggregate capital and reserves |
Profit for the year |
12. | INVESTMENT PROPERTY |
Group |
Total |
£ |
FAIR VALUE |
At 1 January 2021 |
and 31 December 2021 | 1,891,699 |
NET BOOK VALUE |
At 31 December 2021 | 1,891,699 |
At 31 December 2020 | 1,891,699 |
LUNOVI LIMITED (REGISTERED NUMBER: 09742722) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2021 |
12. | INVESTMENT PROPERTY - continued |
Group |
The investment property is stated at fair value and was valued by the director at the balance sheet date. |
13. | STOCKS |
Group |
2021 | 2020 |
£ | £ |
Stocks | 5,495,811 | 4,516,792 |
Work-in-progress | 232,589 | 142,735 |
5,728,400 | 4,659,527 |
14. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2021 | 2020 | 2021 | 2020 |
£ | £ | £ | £ |
Trade debtors | 1,783,689 | 2,156,002 |
Amounts owed by group undertakings | - | - |
Other debtors | 1,732,023 | 383,072 |
Tax | 339,703 | - |
VAT | - | 670 | - | - |
Prepayments and accrued income | 199,880 | 183,228 |
4,055,295 | 2,722,972 |
15. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group |
2021 | 2020 |
£ | £ |
Other loans (see note 16) | 2,955,519 | 3,296,220 |
Trade creditors | 2,593,522 | 1,313,200 |
Tax | - | 1,440,391 |
Social security and other taxes | 101,256 | 91,530 |
VAT | 21,393 | - |
Other creditors | 60,963 | 37,777 |
Accruals and deferred income | 113,941 | 185,150 |
5,846,594 | 6,364,268 |
LUNOVI LIMITED (REGISTERED NUMBER: 09742722) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2021 |
16. | LOANS |
An analysis of the maturity of loans is given below: |
Group |
2021 | 2020 |
£ | £ |
Amounts falling due within one year or | on demand: |
Other loans | 2,955,519 | 3,296,220 |
17. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2021 | 2020 |
value: | £ | £ |
Ordinary | £1.00 | 1,000 | 1,000 |
18. | RESERVES |
Group |
Capital |
Retained | Revaluation | contribution |
earnings | reserve | reserve | Totals |
£ | £ | £ | £ |
At 1 January 2021 | 12,903,387 | 379,567 | 35,345 | 13,318,299 |
Profit for the year | 2,237,351 | 2,237,351 |
Actuarial gains/(losses) | 1,418,000 | - | - | 1,418,000 |
At 31 December 2021 | 16,558,738 | 379,567 | 35,345 | 16,973,650 |
Company |
Capital |
Retained | contribution |
earnings | reserve | Totals |
£ | £ | £ |
At 1 January 2021 | 1,579,015 |
Profit for the year |
At 31 December 2021 | 6,537,032 |
19. | EMPLOYEE BENEFIT OBLIGATIONS |
The group operates a defined benefit pension scheme in the United Kingdom. The scheme was closed to new members and accruals from 31 October 2003. The assets of the scheme are held separately from those of the companies within the group, being invested with insurance companies. |
LUNOVI LIMITED (REGISTERED NUMBER: 09742722) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2021 |
19. | EMPLOYEE BENEFIT OBLIGATIONS - continued |
The amounts recognised in the balance sheet are as follows: |
Defined benefit |
pension plans |
2021 | 2020 |
£ | £ |
Present value of funded obligations | (19,064,000 | ) | (20,077,000 | ) |
Fair value of plan assets | 13,705,000 | 13,400,000 |
(5,359,000 | ) | (6,677,000 | ) |
Present value of unfunded obligations | - | - |
Deficit | (5,359,000 | ) | (6,677,000 | ) |
Net liability | (5,359,000 | ) | (6,677,000 | ) |
The amounts recognised in profit or loss are as follows: |
Defined benefit |
pension plans |
2021 | 2020 |
£ | £ |
Current service cost | - | - |
Net interest from net defined benefit asset/liability |
100,000 |
83,000 |
Past service cost | - | - |
100,000 | 83,000 |
Actual return on plan assets | 675,000 | 276,000 |
Changes in the present value of the defined benefit obligation are as follows: |
Defined benefit |
pension plans |
2021 | 2020 |
£ | £ |
Opening defined benefit obligation | 20,077,000 | 17,122,000 |
Interest cost | 298,000 | 374,000 |
Actuarial losses/(gains) | (941,000 | ) | 2,809,000 |
Benefits paid | (370,000 | ) | (228,000 | ) |
19,064,000 | 20,077,000 |
LUNOVI LIMITED (REGISTERED NUMBER: 09742722) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2021 |
19. | EMPLOYEE BENEFIT OBLIGATIONS - continued |
Changes in the fair value of scheme assets are as follows: |
Defined benefit |
pension plans |
2021 | 2020 |
£ | £ |
Opening fair value of scheme assets | 13,400,000 | 13,352,000 |
Expected return | 198,000 | 291,000 |
Actuarial gains/(losses) | 477,000 | (15,000 | ) |
Benefits paid | (370,000 | ) | (228,000 | ) |
13,705,000 | 13,400,000 |
The amounts recognised in other comprehensive income are as follows: |
Defined benefit |
pension plans |
2021 | 2020 |
£ | £ |
Actuarial gains/(losses) | 1,221,000 | 2,824,000 |
1,221,000 | 2,824,000 |
The major categories of scheme assets as a percentage of total scheme assets are as follows: |
Defined benefit |
pension plans |
2021 | 2020 |
Equities | 52% | 35% |
Bonds | 25% | 14% |
Property | 5% | 8% |
Cash | 6% | 18% |
Other assets | 12% | 25% |
100% | 100% |
Principal actuarial assumptions at the balance sheet date (expressed as weighted averages): |
2021 | 2020 |
Discount rate | 2.00% | 1.50% |
Revaluation of pensions in deferment | 2.60% | 2.20% |
Future pension increases | 3.70% | 3.30% |
Inflation (RPI) | 3.60% | 3.20% |
Inflation (CPI) | 2.60% | 2.20% |
Mortality | 1.00% | 1.00% |
No employer contribution is expected to be paid to the scheme in the next year. |
20. | ULTIMATE HOLDING COMPANY |
The ultimate holding company is Lunovi LLC, a company registered in the USA. |