London Diamond Drilling Holdings Ltd - Limited company accounts 20.1
London Diamond Drilling Holdings Ltd - Limited company accounts 20.1
| REGISTERED NUMBER: 08943769 (England and Wales) |
| GROUP STRATEGIC REPORT, |
| REPORT OF THE DIRECTORS AND |
| CONSOLIDATED FINANCIAL STATEMENTS |
| FOR THE YEAR ENDED 30 JUNE 2021 |
| FOR |
| LONDON DIAMOND DRILLING HOLDINGS LTD |
| LONDON DIAMOND DRILLING HOLDINGS LTD (REGISTERED NUMBER: 08943769) |
| CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
| for the year ended 30 June 2021 |
| Page |
| Company Information | 1 |
| Group Strategic Report | 2 |
| Report of the Directors | 4 |
| Report of the Independent Auditors | 6 |
| Consolidated Income Statement | 10 |
| Consolidated Other Comprehensive Income | 11 |
| Consolidated Balance Sheet | 12 |
| Company Balance Sheet | 13 |
| Consolidated Statement of Changes in Equity | 14 |
| Company Statement of Changes in Equity | 15 |
| Consolidated Cash Flow Statement | 16 |
| Notes to the Consolidated Cash Flow Statement | 17 |
| Notes to the Consolidated Financial Statements | 18 |
| LONDON DIAMOND DRILLING HOLDINGS LTD |
| COMPANY INFORMATION |
| for the year ended 30 June 2021 |
| DIRECTORS: |
| REGISTERED OFFICE: |
| REGISTERED NUMBER: |
| AUDITORS: |
| Chartered Certified Accountants |
| 19-20 Bourne Court |
| Southend Road |
| Woodford Green |
| Essex |
| IG8 8HD |
| LONDON DIAMOND DRILLING HOLDINGS LTD (REGISTERED NUMBER: 08943769) |
| GROUP STRATEGIC REPORT |
| for the year ended 30 June 2021 |
| The directors present their strategic report of the company and the group for the year ended 30 June 2021. |
| REVIEW OF BUSINESS |
| The result for the year is shown on page 11. As shown in the profit and loss account, the group's operating profit for the period was £595,421 (2020 - £875,445). |
| The group's balance sheet on page 13 shows net assets of £558,701 (2020 - £709,717 - net liabilities) at the end of the year, with a cash position of £849,054 (2020 - £2,006,689). |
| The whole year was impacted by the Covid-19 pandemic, but despite this, the group continued to trade albeit at lower margins due to certain restrictions and price hikes throughout the industry. However, the outlook for the group in 2022 is very positive, with sizeable projects already secured and others in the tender process. |
| Whilst there were Covid-19 restrictions in place throughout the full 12 months of the group's financial year, the group steadily implemented procedures on and off site to enable the business to continue its operations. Turnover figures were down by around 6% on the forecasted numbers across the group, with profitability significantly down due to the impact of the pandemic. Restrictive working and price hikes throughout the industry being key contributors to the reduced profit numbers, where the company was unable to pass on the increased costs. We are not forecasting any growth in turnover for the coming year. |
| London Diamond Drilling Holdings Limited continues to act as the holding company for the group. |
| CORPORATE SOCIAL RESPONSIBILITY |
| - The business operates in an environmental management system which meets the requirement of BS EN ISO 14001 and holds Waste Carriers Licence. |
| - Health and Safety Policy and performance is monitored and updated on an annual basis. |
| - LDD Construction Limited is a member of the British Safety Council, organisation committed to keeping people safe and healthy at work. |
| - Other examples of polices implemented by the group in order to comply with the spirit of the law and maintain the ethical standards are: equal opportunities, harassment, training and career development. |
| PRINCIPAL ACTIVITY |
| LDD Construction Ltd, one of the subsidiaries, is one of the leading construction companies in London, providing various services within the industry, specialising in diamond drilling, concrete cutting, passive fire stopping and demolition services. |
| EMPLOYEES |
| There has been a decrease in both office and site based staff during the year because of Covid-19. |
| The policy of the group is to employ the most suitably qualified persons regardless of age, religion, gender, sexual orientation or ethnic origin or any other grounds not related to a person's ability to work safely and effectively for the business. LDD recognises the importance of ensuring that relevant business information is provided to the employees prior to the employee's commencement date. This is achieved through initial induction (Health Questionnaire, Health & Safety, Anti-Bribery Policy, Skills and Qualifications Assessment) and regular training as required per the Construction Industry Standards. |
| KEY PERFORMANCE INDICATORS |
| - Client satisfaction - Has improved over the years especially considering the relationships developed with our existing customers. |
| - Employee Satisfaction - Maintaining of staff has been a key factor in LDD's growth. |
| - Qualifications and Skills - Regularly kept up to date and in line with the Construction Industry Standards. |
| - Fixed assets - group's growth has resulted in constant vehicle and plant purchases. |
| LONDON DIAMOND DRILLING HOLDINGS LTD (REGISTERED NUMBER: 08943769) |
| GROUP STRATEGIC REPORT |
| for the year ended 30 June 2021 |
| FUTURE CONTRACTS/ORDER BOOK |
| The outlook for the group in 2022 is very positive, with sizeable projects already secured and others in the tender process. |
| GENERAL OVERVIEW |
| The group is regrouping and consolidating due to disruptions caused by the Covid-19 pandemic, but the outlook continues to be positive with most sites now fully reopen and work being tendered again at quite high levels. |
| POST BALANCE SHEET EVENTS |
| Covid-19 pandemic has had a major impact on the UK economy and other global economies in which the company operates. |
| It is expected that the financial performance of the group will be impacted by the pandemic, as it affects many of our customers. The group has therefore moved quickly to manage costs and cash, and maximise available liquidity during this period. |
| Due to the uncertainty of the severity and duration of the economic impact, different scenarios have been modelled to assess the pandemic's potential financial impact on the company. Key metrics and working capital measures are monitored on a monthly basis to review the appropriateness of these scenarios. The group considers that based on the best information currently available it has adequate liquidity to trade through any of these scenarios. |
| The directors do not consider that there have been any material adverse changes to the carrying values of the group's assets nor material adjustments to liabilities subsequent to the year-end which require disclosure in these financial statements. |
| BREXIT CONSIDERATIONS |
| On 31 January 2020 the UK officially left the EU ("Brexit") and from this date entered a transition period whilst the UK and EU negotiate future trading and other arrangements. The current rules on trade, regulations and legislation will continue to apply during the transition period with new rules taking effect on 1 January 2021. |
| The group has been assessing the effects of the UK's departure from the EU regularly since the result of the June 2016 referendum. The group has taken steps to minimise any changes where appropriate and does not currently expect any material impact to the business. However, the implications beyond 2020 remain uncertain. |
| The group's primary goal is to take sensible precautionary measures whilst accepting an appropriate level of risk to minimise the impact on commercial activities. The directors feel confident that the group is sensibly prepared to adapt to any changes as a result of Brexit although remain vigilant while the situation remains uncertain. |
| GOING CONCERN |
| The assessment as to whether the going concern basis is appropriate takes into account events after the reporting period. The outbreak of the Covid-19 pandemic in early 2020 presents uncertainties in relation to future financial performance. Due to the uncertainty over the severity and duration of the economic impact of Covid-19 different scenarios have been modelled to assess the pandemic's potential financial impact on the group. Based on this analysis and having reviewed trading performance and key metrics for year to June 2021 the directors consider that it remains appropriate to prepare the financial statements on a going concern basis. |
| The directors have assessed the potential impact of Brexit on the organisation at present and consider there to be no material impact or significant risk to going concern. |
| ON BEHALF OF THE BOARD: |
| LONDON DIAMOND DRILLING HOLDINGS LTD (REGISTERED NUMBER: 08943769) |
| REPORT OF THE DIRECTORS |
| for the year ended 30 June 2021 |
| The directors present their report with the financial statements of the company and the group for the year ended 30 June 2021. |
| DIVIDENDS |
| The total distribution of dividends for the year ended 30 June 2021 will be £Nil (2020 - £254,000). |
| DIRECTORS |
| The directors shown below have held office during the whole of the period from 1 July 2020 to the date of this report. |
| FINANCIAL RISK MANAGEMENT |
| The group's operations expose it to a variety of financial risks that include the effects of changes in credit risk, liquidity risk and interest rate risk. The group has in place a risk management programme that seeks to limit the adverse effects on the financial performance of the group by monitoring levels of debt finance and the related finance costs. The group does not use derivative financial instruments to manage interest rate costs and as such, no hedge accounting is applied. |
| Given the size of the group, the directors have not delegated the responsibility of monitoring financial risk management to a sub-committee of the board. The policies set by the board of directors are implemented by the group's finance department. |
| Price risk |
| The group has no exposure to equity securities price risk as it holds no listed or other equity investments. |
| Liquidity risk |
| The group actively maintains short-term debt finance that is designed to ensure that the group has sufficient available funds for operations and planned expansions. |
| Interest rate risk |
| The group has both interest bearing assets and interest bearing liabilities. Interest bearing assets include only cash balances which earn interest at fixed rate. The group has a policy of maintaining debt at a fixed rate to ensure certainty of future interest cash flows. The directors will revisit the appropriateness of this policy if the operations of the group change in size or nature. |
| STATEMENT OF DIRECTORS' RESPONSIBILITIES |
| The directors are responsible for preparing the Group Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
| Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to: |
| - | select suitable accounting policies and then apply them consistently; |
| - | make judgements and accounting estimates that are reasonable and prudent; |
| - | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
| The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
| LONDON DIAMOND DRILLING HOLDINGS LTD (REGISTERED NUMBER: 08943769) |
| REPORT OF THE DIRECTORS |
| for the year ended 30 June 2021 |
| STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
| So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
| ON BEHALF OF THE BOARD: |
| REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
| LONDON DIAMOND DRILLING HOLDINGS LTD |
| Opinion |
| We have audited the financial statements of London Diamond Drilling Holdings Ltd (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 June 2021 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
| In our opinion the financial statements: |
| - | give a true and fair view of the state of the group's and of the parent company affairs as at 30 June 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 directors' 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 directors with respect to going concern are described in the relevant sections of this report. |
| Other information |
| The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
| Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
| In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether 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. |
| Opinions on other matters prescribed by the Companies Act 2006 |
| In our opinion, based on the work undertaken in the course of the audit: |
| - | the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
| - | the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
| REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
| LONDON DIAMOND DRILLING HOLDINGS LTD |
| Matters on which we are required to report by exception |
| In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors. |
| We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
| - | adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
| - | the parent company financial statements are not in agreement with the accounting records and returns; or |
| - | certain disclosures of directors' remuneration specified by law are not made; or |
| - | we have not received all the information and explanations we require for our audit. |
| Responsibilities of directors |
| As explained more fully in the Statement of Directors' Responsibilities set out on page four, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
| In preparing the financial statements, the directors are responsible for assessing the group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so. |
| REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
| LONDON DIAMOND DRILLING HOLDINGS LTD |
| 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. |
| Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows: |
| - the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations; |
| - we identified the laws and regulations applicable to the group through discussions with directors and other management, and from our commercial knowledge and experience of the group sector; |
| - we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the group, including the Companies Act 2006, taxation legislation and data protection, employment, and health and safety legislation; |
| - we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence where necessary. |
| We assessed the susceptibility of the group's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by: |
| - making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and |
| - considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations. |
| To address the risk of fraud through management bias and override of controls, we: |
| - performed analytical procedures to identify any unusual or unexpected transactions; |
| - agreed income to underlying contracts; |
| - tested the appropriateness of journal entries; |
| - investigated the rationale behind significant or unusual transactions. |
| In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: |
| - agreeing financial statement disclosures to underlying supporting documentation; |
| - enquiring of management as to actual and potential litigation and claims; and |
| - reviewing legal expenses for any potential issues. |
| There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. |
| Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion. |
| 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. |
| REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
| LONDON DIAMOND DRILLING HOLDINGS LTD |
| 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 Certified Accountants |
| 19-20 Bourne Court |
| Southend Road |
| Woodford Green |
| Essex |
| IG8 8HD |
| LONDON DIAMOND DRILLING HOLDINGS LTD (REGISTERED NUMBER: 08943769) |
| CONSOLIDATED |
| INCOME STATEMENT |
| for the year ended 30 June 2021 |
| 2021 | 2020 |
| Notes | £ | £ |
| TURNOVER | 4 | 26,954,316 | 29,767,208 |
| Cost of sales | 20,994,932 | 22,176,530 |
| GROSS PROFIT | 5,959,384 | 7,590,678 |
| Administrative expenses | 5,592,133 | 7,542,899 |
| 367,251 | 47,779 |
| Other operating income | 228,170 | 827,666 |
| OPERATING PROFIT | 6 | 595,421 | 875,445 |
| Interest receivable and similar income | - | 2,324 |
| 595,421 | 877,769 |
| Interest payable and similar expenses | 7 | 80,641 | 33,759 |
| PROFIT BEFORE TAXATION | 514,780 | 844,010 |
| Tax on profit | 8 | (26,362 | ) | 105,183 |
| PROFIT FOR THE FINANCIAL YEAR |
| Profit attributable to: |
| Owners of the parent | 541,142 | 738,827 |
| LONDON DIAMOND DRILLING HOLDINGS LTD (REGISTERED NUMBER: 08943769) |
| CONSOLIDATED |
| OTHER COMPREHENSIVE INCOME |
| for the year ended 30 June 2021 |
| 2021 | 2020 |
| Notes | £ | £ |
| PROFIT FOR THE YEAR | 541,142 | 738,827 |
| OTHER COMPREHENSIVE INCOME |
| Revaluation of freehold property | 727,276 | - |
| Income tax relating to other comprehensive income |
- |
- |
| OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX |
727,276 |
- |
| TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
1,268,418 |
738,827 |
| Total comprehensive income attributable to: |
| Owners of the parent | 1,268,418 | 738,827 |
| LONDON DIAMOND DRILLING HOLDINGS LTD (REGISTERED NUMBER: 08943769) |
| CONSOLIDATED BALANCE SHEET |
| 30 June 2021 |
| 2021 | 2020 |
| Notes | £ | £ | £ | £ |
| FIXED ASSETS |
| Intangible assets | 12 | (74,496 | ) | (119,163 | ) |
| Tangible assets | 13 | 3,917,756 | 3,647,707 |
| Investments | 14 | - | - |
| 3,843,260 | 3,528,544 |
| CURRENT ASSETS |
| Stocks | 15 | 17,260 | 11,716 |
| Debtors | 16 | 6,423,656 | 4,741,592 |
| Cash at bank and in hand | 849,054 | 2,006,689 |
| 7,289,970 | 6,759,997 |
| CREDITORS |
| Amounts falling due within one year | 17 | 7,687,893 | 7,534,787 |
| NET CURRENT LIABILITIES | (397,923 | ) | (774,790 | ) |
| TOTAL ASSETS LESS CURRENT LIABILITIES |
3,445,337 |
2,753,754 |
| CREDITORS |
| Amounts falling due after more than one year |
18 |
(2,861,177 |
) |
(3,401,676 |
) |
| PROVISIONS FOR LIABILITIES | 22 | (25,459 | ) | (61,795 | ) |
| NET ASSETS/(LIABILITIES) | 558,701 | (709,717 | ) |
| CAPITAL AND RESERVES |
| Called up share capital | 23 | 119 | 119 |
| Revaluation reserve | 24 | 727,276 | - |
| Retained earnings | 24 | (168,694 | ) | (709,836 | ) |
| SHAREHOLDERS' FUNDS | 558,701 | (709,717 | ) |
| The financial statements were approved by the Board of Directors and authorised for issue on 22 March 2022 and were signed on its behalf by: |
| Mr M D Seagroatt - Director |
| LONDON DIAMOND DRILLING HOLDINGS LTD (REGISTERED NUMBER: 08943769) |
| COMPANY BALANCE SHEET |
| 30 June 2021 |
| 2021 | 2020 |
| Notes | £ | £ | £ | £ |
| FIXED ASSETS |
| Intangible assets | 12 |
| Tangible assets | 13 |
| Investments | 14 |
| CURRENT ASSETS |
| Debtors | 16 |
| Cash in hand |
| CREDITORS |
| Amounts falling due within one year | 17 |
| NET CURRENT LIABILITIES | ( |
) | ( |
) |
| TOTAL ASSETS LESS CURRENT LIABILITIES |
( |
) |
( |
) |
| CAPITAL AND RESERVES |
| Called up share capital | 23 |
| Retained earnings | 24 | ( |
) | ( |
) |
| SHAREHOLDERS' FUNDS | ( |
) | ( |
) |
| Company's profit for the financial year | - | 339,000 |
| The financial statements were approved by the Board of Directors and authorised for issue on |
| LONDON DIAMOND DRILLING HOLDINGS LTD (REGISTERED NUMBER: 08943769) |
| CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
| for the year ended 30 June 2021 |
| Called up |
| share | Retained | Revaluation | Total |
| capital | earnings | reserve | equity |
| £ | £ | £ | £ |
| Balance at 1 July 2019 | 119 | (1,194,663 | ) | - | (1,194,544 | ) |
| Changes in equity |
| Dividends | - | (254,000 | ) | - | (254,000 | ) |
| Total comprehensive income | - | 738,827 | - | 738,827 |
| Balance at 30 June 2020 | 119 | (709,836 | ) | - | (709,717 | ) |
| Changes in equity |
| Total comprehensive income | - | 541,142 | 727,276 | 1,268,418 |
| Balance at 30 June 2021 | 119 | (168,694 | ) | 727,276 | 558,701 |
| LONDON DIAMOND DRILLING HOLDINGS LTD (REGISTERED NUMBER: 08943769) |
| COMPANY STATEMENT OF CHANGES IN EQUITY |
| for the year ended 30 June 2021 |
| Called up |
| share | Retained | Total |
| capital | earnings | equity |
| £ | £ | £ |
| Balance at 1 July 2019 | ( |
) | ( |
) |
| Changes in equity |
| Dividends | - | ( |
) | ( |
) |
| Total comprehensive income | - |
| Balance at 30 June 2020 | ( |
) | ( |
) |
| Changes in equity |
| Balance at 30 June 2021 | ( |
) | ( |
) |
| LONDON DIAMOND DRILLING HOLDINGS LTD (REGISTERED NUMBER: 08943769) |
| CONSOLIDATED CASH FLOW STATEMENT |
| for the year ended 30 June 2021 |
| 2021 | 2020 |
| Notes | £ | £ |
| Cash flows from operating activities |
| Cash generated from operations | 1 | (342,165 | ) | 642,590 |
| Interest paid | (80,641 | ) | (33,759 | ) |
| Tax paid | (384,119 | ) | - |
| Taxation overpaid | - | 58,959 |
| Net cash from operating activities | (806,925 | ) | 667,790 |
| Cash flows from investing activities |
| Purchase of tangible fixed assets | (305,221 | ) | (559,697 | ) |
| Sale of tangible fixed assets | 25,500 | 42,000 |
| Interest received | - | 2,324 |
| Net cash from investing activities | (279,721 | ) | (515,373 | ) |
| Cash flows from financing activities |
| New loans in year | - | 2,250,000 |
| Loan repayments in year | (203,643 | ) | (131,852 | ) |
| New HP in year | - | 43,998 |
| Capital repayments in year | (57,346 | ) | - |
| Amount introduced by directors | 190,000 | - |
| Amount withdrawn by directors | - | (285,015 | ) |
| Equity dividends paid | - | (254,000 | ) |
| Net cash from financing activities | (70,989 | ) | 1,623,131 |
| (Decrease)/increase in cash and cash equivalents | (1,157,635 | ) | 1,775,548 |
| Cash and cash equivalents at beginning of year |
2 |
2,006,689 |
231,141 |
| Cash and cash equivalents at end of year | 2 | 849,054 | 2,006,689 |
| LONDON DIAMOND DRILLING HOLDINGS LTD (REGISTERED NUMBER: 08943769) |
| NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT |
| for the year ended 30 June 2021 |
| 1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
| 2021 | 2020 |
| £ | £ |
| Profit before taxation | 514,780 | 844,010 |
| Depreciation charges | 717,781 | 807,240 |
| Profit on disposal of fixed assets | (25,500 | ) | (13,882 | ) |
| Government grants | - | (1 | ) |
| Finance costs | 80,641 | 33,759 |
| Finance income | - | (2,324 | ) |
| 1,287,702 | 1,668,802 |
| Increase in stocks | (5,544 | ) | (582 | ) |
| (Increase)/decrease in trade and other debtors | (1,652,888 | ) | 700,388 |
| Increase/(decrease) in trade and other creditors | 28,565 | (1,726,018 | ) |
| Cash generated from operations | (342,165 | ) | 642,590 |
| 2. | CASH AND CASH EQUIVALENTS |
| The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
| Year ended 30 June 2021 |
| 30.6.21 | 1.7.20 |
| £ | £ |
| Cash and cash equivalents | 849,054 | 2,006,689 |
| Year ended 30 June 2020 |
| 30.6.20 | 1.7.19 |
| £ | £ |
| Cash and cash equivalents | 2,006,689 | 231,141 |
| 3. | ANALYSIS OF CHANGES IN NET DEBT |
| At 1.7.20 | Cash flow | At 30.6.21 |
| £ | £ | £ |
| Net cash |
| Cash at bank and in hand | 2,006,689 | (1,157,635 | ) | 849,054 |
| 2,006,689 | (1,157,635 | ) | 849,054 |
| Debt |
| Finance leases | (533,424 | ) | 57,346 | (476,078 | ) |
| Debts falling due within 1 year | (224,075 | ) | (364,531 | ) | (588,606 | ) |
| Debts falling due after 1 year | (3,144,985 | ) | 568,175 | (2,576,810 | ) |
| (3,902,484 | ) | 260,990 | (3,641,494 | ) |
| Total | (1,895,795 | ) | (896,645 | ) | (2,792,440 | ) |
| LONDON DIAMOND DRILLING HOLDINGS LTD (REGISTERED NUMBER: 08943769) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
| for the year ended 30 June 2021 |
| 1. | STATUTORY INFORMATION |
| London Diamond Drilling Holdings Ltd is a |
| The presentation currency of the financial statements is the Pound Sterling (£). |
| 2. | ACCOUNTING POLICIES |
| Basis of preparing the financial statements |
| London Diamond Drilling Holdings Limited (the "Company") is a company limited by shares and incorporated and domiciled in the UK. |
| These group and parent company financial statements were prepared in accordance with Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of lreland ("FRS 102''). |
| The parent company is included in the consolidated financial statements, and is considered to be a qualifying entity under FRS 102 paragraphs 1.8 to 1.12. The following exemptions available under FRS 102 in respect of certain disclosures for the parent company financial statements have been applied: |
| - The reconciliation of the number of shares outstanding from the beginning to the end of the period has not been included a second time; |
| - No separate parent company Cash Flow Statement with related notes is included; and |
| - The disclosures required by FRS 102.11 Basic Financial Instruments and FRS 102.12 Other Financial Instrument Issues in respect of financial instruments not falling within the fair value accounting rules of Paragraph 36(4) of Schedule 1. |
| The accounting policies set out below have, unless otherwise stated, been applied consistently to all periods presented in these financial statements. |
| The financial statements are prepared on the historical cost basis. |
| Basis of consolidation |
| The consolidated financial statements include the financial statements of the company and its subsidiary undertakings made up to 30 June 2021. A subsidiary is an entity that is controlled by the parent. The results of subsidiary undertakings are included in the consolidated profit and loss account from the date that control commences until the date that control ceases. Control is established when the company has the power to govern the operating and financial policies of an entity so as to obtain benefits from its activities. In assessing control, the group takes into consideration potential voting rights that are currently exercisable. |
| Under Section 408 of the Companies Act 2006 the company is exempt from the requirement to present its own profit and loss account. |
| In the parent financial statements, investments in subsidiaries are carried at cost less impairment. |
| Going concern |
| The directors have prepared forecasts including projected cash flows for twelve months from the date of their approval of these financial statements. These forecasts indicate that the group will be able to meet its working capital requirements through its existing facilities. |
| LONDON DIAMOND DRILLING HOLDINGS LTD (REGISTERED NUMBER: 08943769) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| for the year ended 30 June 2021 |
| 2. | ACCOUNTING POLICIES - continued |
| Turnover |
| Turnover is recognised when the services are performed. Turnover is reduced for estimated customer retentions, refunds and other similar allowances. |
| Goodwill |
| Purchased goodwill is the excess of the fair value of the purchase consideration over the fair value of the net assets acquired on acquisition of subsidiary undertakings and is capitalised and amortised over its useful economic life, subject to a maximum period of 10 years. Where impairment of an investment occurs, the amount is written off in the year concerned. |
| Negative goodwill being the value of non monetary assets at acquisition of one of its subsidiaries, LDD Construction Limited, is also being amortised evenly over its estimated useful life of 10 years. |
| Tangible fixed assets |
| Freehold property | - |
| Improvements to property | - |
| Plant and machinery | - |
| Fixtures and fittings | - |
| Motor vehicles | - |
| Computer equipment | - |
| Freehold property relates to the property situated at 7 Eastbury Rd, Beckton, London E6 6LP. The property was valued at the year end by Matthews and Goodman LLP, an independent professional valuation and RICS registered company based at 21 Ironmonger Lane, London, EC2V 8EY and the value of the property was adjusted as appropriate. |
| Stocks |
| Stocks 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 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 balance sheet date. |
| Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
| Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
| Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
| LONDON DIAMOND DRILLING HOLDINGS LTD (REGISTERED NUMBER: 08943769) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| for the year ended 30 June 2021 |
| 2. | ACCOUNTING POLICIES - continued |
| Foreign currencies |
| Transactions in foreign currencies are translated to the group companies' functional currency at the foreign exchange rate ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are retranslated to the functional currency at the foreign exchange rate ruling at that date. Nonmonetary assets and liabilities that are measured in terms of historical cost in a foreign currency are translated using the exchange rate at the date of the transaction. Foreign exchange differences arising on translation are recognised in the profit and loss account. |
| Hire purchase and leasing commitments |
| Assets that are held by the company under leases which transfer to the group substantially all the risks and rewards of ownership are classified as being held under finance leases. Leases which do not transfer substantially all the risks and rewards of ownership to the group are classified as operating leases. |
| Assets held under finance leases are initially recognised as assets of the group at their fair value at the inception of the lease or, if lower, at the present value of the minimum lease payments. The corresponding liability to the lessor is included in the statement of financial position as a finance lease obligation. Lease payments are apportioned between finance expenses and reduction of the lease obligation so as to achieve a constant rate of interest on the remaining balance of the liability. Finance expenses are recognised immediately in profit or loss, unless they are directly attributable to qualifying assets, in which case they are capitalised in accordance with the group's policy on borrowing costs (see the accounting policy above). Contingent rentals are recognised as expenses in the periods in which they are incurred. |
| Operating lease payments are recognised as an expense on a straight-line basis over the lease term, except where another systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed. Contingent rentals arising under operating leases are recognised as an expense in the period in which they are incurred. |
| In the event that lease incentives are received to enter into operating leases, such incentives are recognised as a liability. The aggregate benefit of incentives is recognised as a reduction of rental expense on a straightline basis over the lease term, except where another systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed. |
| Pension costs and other post-retirement benefits |
| The group operates a defined contribution pension scheme. A defined contribution plan is a post-employment benefit plan under which the company pays fixed contributions into a separate entity and will have no legal or constructive obligation to pay further amounts. Obligations for contributions to defined contribution pension plans are recognised as an expense in the profit and loss account in the periods during which services are rendered by employees. |
| Fixed asset investments |
| Investments in subsidiaries are stated at cost, less any provision for diminution in value. |
| Trade and other debtors |
| Trade and other debtors are initially recognised at the transaction price and thereafter stated at amortised cost using the effective interest method, less impairment losses for bad and doubtful debts except where the effect of discounting would be immaterial. In such cases, the receivables are stated at cost less impairment losses for bad and doubtful debts. |
| Trade and other creditors |
| Trade and other creditors are initially recognised at the transaction price and are thereafter stated at amortised cost using the effective interest method unless the effect of discounting would be immaterial, in which case they are stated at cost. |
| LONDON DIAMOND DRILLING HOLDINGS LTD (REGISTERED NUMBER: 08943769) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| for the year ended 30 June 2021 |
| 2. | ACCOUNTING POLICIES - continued |
| Interest bearing borrowings |
| Interest-bearing borrowings are recognised initially at fair value less attributable transaction costs. Subsequent to initial recognition, interest-bearing borrowings are stated at amortised cost with any difference between the amount initially recognised and redemption value being recognised in the statement of comprehensive income over the period of the borrowings, together with any interest and fees payable, using the effective interest method. |
| 3. | CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY |
| In the application of the group's accounting policies, which are described above, management is required to make judgements, estimates and assumptions about the carrying values 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 a significant effect on the amounts recognised in the financial statements are described below. |
| Valuation of freehold property |
| As described under the tangible fixed assets notes to the financial statements, the freehold property is stated at market value based on the valuation performed at the year end by Matthews & Goodman LLP, an independent professional valuation and RICS registered company, which used observable market prices adjusted as necessary for any difference in the future, location or condition of the specific asset. |
| Other items in the financial statements where these judgements and estimates have been made include: |
| - assessing the useful economic lives attributed to tangible fixed assets used to determine the annual depreciation charge, and |
| - the provision required for any bad or doubtful debts. |
| 4. | TURNOVER |
| The turnover and profit before taxation are attributable to the one principal activity of the group. |
| An analysis of turnover by geographical market is given below: |
| 2021 | 2020 |
| £ | £ |
| United Kingdom | 26,954,316 | 29,767,208 |
| 26,954,316 | 29,767,208 |
| 5. | EMPLOYEES AND DIRECTORS |
| 2021 | 2020 |
| £ | £ |
| Wages and salaries | 7,636,048 | 8,351,477 |
| Social security costs | 66,725 | 48,267 |
| Other pension costs | 180,579 | 183,377 |
| 7,883,352 | 8,583,121 |
| LONDON DIAMOND DRILLING HOLDINGS LTD (REGISTERED NUMBER: 08943769) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| for the year ended 30 June 2021 |
| 5. | EMPLOYEES AND DIRECTORS - continued |
| The average number of employees during the year was as follows: |
| 2021 | 2020 |
| Administrations staff | 49 | 58 |
| Operatives staff | 119 | 141 |
| The average number of employees by undertakings that were proportionately consolidated during the year was 168 (2020 - 199 ) . |
| 2021 | 2020 |
| £ | £ |
| Directors' remuneration | 349,866 | 224,823 |
| Directors' pension contributions to money purchase schemes | 38,630 | 38,630 |
| The number of directors to whom retirement benefits were accruing was as follows: |
| Money purchase schemes | 2 | 2 |
| Information regarding the highest paid director is as follows: |
| 2021 | 2020 |
| £ | £ |
| Emoluments etc | 91,667 | 107,708 |
| Pension contributions to money purchase schemes | 1,315 | 1,315 |
| 6. | OPERATING PROFIT |
| The operating profit is stated after charging/(crediting): |
| 2021 | 2020 |
| £ | £ |
| Depreciation - owned assets | 335,038 | 347,295 |
| Depreciation - assets on hire purchase contracts | 427,410 | 504,610 |
| Profit on disposal of fixed assets | (25,500 | ) | (13,882 | ) |
| Goodwill amortisation | (44,667 | ) | (44,668 | ) |
| Auditors' remuneration | 56,845 | 47,893 |
| 7. | INTEREST PAYABLE AND SIMILAR EXPENSES |
| 2021 | 2020 |
| £ | £ |
| Bank loan interest | 58,095 | 8,333 |
| Other similar charges | 2,991 | 870 |
| Other interest | 3,126 | - |
| Mortgage interest | 16,429 | 24,556 |
| 80,641 | 33,759 |
| LONDON DIAMOND DRILLING HOLDINGS LTD (REGISTERED NUMBER: 08943769) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| for the year ended 30 June 2021 |
| 8. | TAXATION |
| Analysis of the tax (credit)/charge |
| The tax (credit)/charge on the profit for the year was as follows: |
| 2021 | 2020 |
| £ | £ |
| Current tax: |
| UK corporation tax | 9,974 | 103,794 |
| Deferred tax: |
| Origination and reversal of timing difference | (36,336 | ) | 1,389 |
| Tax on profit | (26,362 | ) | 105,183 |
| UK corporation tax has been charged at 19 % (2020 - 19 %). |
| Reconciliation of total tax (credit)/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 | 514,780 | 844,010 |
| Profit multiplied by the standard rate of corporation tax in the UK of 19 % (2020 - 19 %) |
97,808 |
160,362 |
| Effects of: |
| Expenses not deductible for tax purposes | 28,316 | 33,759 |
| Depreciation in excess of capital allowances | 38,692 | 10,877 |
| Adjustments to tax charge in respect of previous periods | (113,959 | ) | (85,320 | ) |
| Adjustment for deferred tax | (36,336 | ) | 1,389 |
| Profit or loss on disposal of assets | (4,845 | ) | (2,637 | ) |
| investments |
| Other adjustments | (36,038 | ) | (13,247 | ) |
| Total tax (credit)/charge | (26,362 | ) | 105,183 |
| Tax effects relating to effects of other comprehensive income |
| 2021 |
| Gross | Tax | Net |
| £ | £ | £ |
| Revaluation of freehold property | 727,276 | - | 727,276 |
| 9. | 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. |
| LONDON DIAMOND DRILLING HOLDINGS LTD (REGISTERED NUMBER: 08943769) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| for the year ended 30 June 2021 |
| 10. | DIVIDENDS |
| 2021 | 2020 |
| £ | £ |
| Ordinary A shares of 1p each |
| Interim | - | 102,000 |
| Ordinary B shares of 1p each |
| Interim | - | 95,000 |
| Ordinary E shares of 1p each |
| Interim | - | 25,000 |
| Ordinary F shares of 1p each |
| Interim | - | 32,000 |
| - | 254,000 |
| 11. | CORONAVIRUS JOB RETENTION SCHEME |
| During the year, the group received £228,170 (2020 - £752,438) under the Coronavirus Job Retention Scheme. |
| 12. | INTANGIBLE FIXED ASSETS |
| Group |
| Goodwill |
| £ |
| COST |
| At 1 July 2020 |
| and 30 June 2021 | (446,674 | ) |
| AMORTISATION |
| At 1 July 2020 | (327,511 | ) |
| Amortisation for year | (44,667 | ) |
| At 30 June 2021 | (372,178 | ) |
| NET BOOK VALUE |
| At 30 June 2021 | (74,496 | ) |
| At 30 June 2020 | (119,163 | ) |
| LONDON DIAMOND DRILLING HOLDINGS LTD (REGISTERED NUMBER: 08943769) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| for the year ended 30 June 2021 |
| 13. | TANGIBLE FIXED ASSETS |
| Group |
| Improvements |
| Freehold | to | Plant and |
| property | property | machinery |
| £ | £ | £ |
| COST OR VALUATION |
| At 1 July 2020 | 2,296,440 | 165,129 | 2,680,070 |
| Additions | - | - | 143,952 |
| Disposals | - | - | (15,000 | ) |
| Revaluations | 543,560 | - | - |
| At 30 June 2021 | 2,840,000 | 165,129 | 2,809,022 |
| DEPRECIATION |
| At 1 July 2020 | 137,787 | 108,964 | 1,950,929 |
| Charge for year | 45,929 | 28,139 | 332,400 |
| Eliminated on disposal | - | - | (15,000 | ) |
| Revaluation adjustments | (183,716 | ) | - | - |
| At 30 June 2021 | - | 137,103 | 2,268,329 |
| NET BOOK VALUE |
| At 30 June 2021 | 2,840,000 | 28,026 | 540,693 |
| At 30 June 2020 | 2,158,653 | 56,165 | 729,141 |
| Fixtures |
| and | Motor | Computer |
| fittings | vehicles | equipment | Totals |
| £ | £ | £ | £ |
| COST OR VALUATION |
| At 1 July 2020 | 84,029 | 1,522,888 | 37,660 | 6,786,216 |
| Additions | 1,366 | 154,544 | 5,359 | 305,221 |
| Disposals | - | - | - | (15,000 | ) |
| Revaluations | - | - | - | 543,560 |
| At 30 June 2021 | 85,395 | 1,677,432 | 43,019 | 7,619,997 |
| DEPRECIATION |
| At 1 July 2020 | 47,182 | 871,934 | 21,713 | 3,138,509 |
| Charge for year | 17,967 | 330,922 | 7,091 | 762,448 |
| Eliminated on disposal | - | - | - | (15,000 | ) |
| Revaluation adjustments | - | - | - | (183,716 | ) |
| At 30 June 2021 | 65,149 | 1,202,856 | 28,804 | 3,702,241 |
| NET BOOK VALUE |
| At 30 June 2021 | 20,246 | 474,576 | 14,215 | 3,917,756 |
| At 30 June 2020 | 36,847 | 650,954 | 15,947 | 3,647,707 |
| Freehold property relates to the property situated at 7 Eastbury Rd, Beckton, London E6 6LP. |
| LONDON DIAMOND DRILLING HOLDINGS LTD (REGISTERED NUMBER: 08943769) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| for the year ended 30 June 2021 |
| 13. | TANGIBLE FIXED ASSETS - continued |
| Group |
| Cost or valuation at 30 June 2021 is represented by: |
| Improvements |
| Freehold | to | Plant and |
| property | property | machinery |
| £ | £ | £ |
| Valuation in 2021 | 543,560 | - | - |
| Cost | 2,296,440 | 165,129 | 2,809,022 |
| 2,840,000 | 165,129 | 2,809,022 |
| Fixtures |
| and | Motor | Computer |
| fittings | vehicles | equipment | Totals |
| £ | £ | £ | £ |
| Valuation in 2021 | - | - | - | 543,560 |
| Cost | 85,395 | 1,677,432 | 43,019 | 7,076,437 |
| 85,395 | 1,677,432 | 43,019 | 7,619,997 |
| Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
| Plant and | Motor |
| machinery | vehicles | Totals |
| £ | £ | £ |
| COST OR VALUATION |
| At 1 July 2020 | 1,157,542 | 1,424,152 | 2,581,694 |
| Additions | 55,000 | 154,544 | 209,544 |
| Disposals | (15,000 | ) | - | (15,000 | ) |
| Transfer to ownership | - | (124,620 | ) | (124,620 | ) |
| At 30 June 2021 | 1,197,542 | 1,454,076 | 2,651,618 |
| DEPRECIATION |
| At 1 July 2020 | 898,536 | 781,559 | 1,680,095 |
| Charge for year | 153,412 | 273,998 | 427,410 |
| Eliminated on disposal | (15,000 | ) | - | (15,000 | ) |
| Transfer to ownership | - | (39,162 | ) | (39,162 | ) |
| At 30 June 2021 | 1,036,948 | 1,016,395 | 2,053,343 |
| NET BOOK VALUE |
| At 30 June 2021 | 160,594 | 437,681 | 598,275 |
| At 30 June 2020 | 259,006 | 642,593 | 901,599 |
| LONDON DIAMOND DRILLING HOLDINGS LTD (REGISTERED NUMBER: 08943769) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| for the year ended 30 June 2021 |
| 14. | FIXED ASSET INVESTMENTS |
| Company |
| Unlisted |
| investments |
| £ |
| COST |
| At 1 July 2020 |
| and 30 June 2021 |
| NET BOOK VALUE |
| At 30 June 2021 |
| At 30 June 2020 |
| The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
| Subsidiaries |
| Registered office: England and Wales |
| Nature of business: |
| % |
| Class of shares: | holding |
| 2021 | 2020 |
| £ | £ |
| Aggregate capital and reserves |
| Profit for the year |
| Registered office: England and Wales |
| Nature of business: |
| % |
| Class of shares: | holding |
| £ | £ |
| Aggregate capital and reserves |
| Registered office: England and Wales |
| Nature of business: |
| % |
| Class of shares: | holding |
| 2021 | 2020 |
| £ | £ |
| Aggregate capital and reserves |
| Profit for the year |
| LONDON DIAMOND DRILLING HOLDINGS LTD (REGISTERED NUMBER: 08943769) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| for the year ended 30 June 2021 |
| 14. | FIXED ASSET INVESTMENTS - continued |
| Registered office: England and Wales |
| Nature of business: |
| % |
| Class of shares: | holding |
| 2021 | 2020 |
| £ | £ |
| Aggregate capital and reserves |
| Profit for the year |
| 15. | STOCKS |
| Group |
| 2021 | 2020 |
| £ | £ |
| Stocks - materials | 17,260 | 11,716 |
| 16. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
| Group | Company |
| 2021 | 2020 | 2021 | 2020 |
| £ | £ | £ | £ |
| Trade debtors | 5,286,208 | 3,602,731 |
| Amounts owed by group undertakings | - | - |
| Other debtors | 777,345 | 786,010 |
| Tax | 29,176 | - |
| Prepayments | 330,927 | 352,851 |
| 6,423,656 | 4,741,592 |
| 17. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
| Group | Company |
| 2021 | 2020 | 2021 | 2020 |
| £ | £ | £ | £ |
| Bank loans and overdrafts (see note 19) | 588,606 | 224,075 |
| Hire purchase contracts (see note 20) | 191,711 | 276,733 |
| Trade creditors | 4,058,588 | 2,902,156 |
| Amounts owed to group undertakings | - | - |
| Tax | 102,083 | 447,052 |
| Social security and other taxes | 107,631 | 972,557 |
| Other creditors | 2,397,040 | 2,625,993 |
| Directors' loan accounts | 190,000 | - | - | - |
| Accrued expenses | 52,234 | 86,221 |
| 7,687,893 | 7,534,787 |
| LONDON DIAMOND DRILLING HOLDINGS LTD (REGISTERED NUMBER: 08943769) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| for the year ended 30 June 2021 |
| 18. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
| Group |
| 2021 | 2020 |
| £ | £ |
| Bank loans (see note 19) | 2,576,810 | 3,144,985 |
| Hire purchase contracts (see note 20) | 284,367 | 256,691 |
| 2,861,177 | 3,401,676 |
| 19. | LOANS |
| An analysis of the maturity of loans is given below: |
| Group |
| 2021 | 2020 |
| £ | £ |
| Amounts falling due within one year or on | demand: |
| Bank loans | 588,606 | 224,075 |
| Amounts falling due between one and two | years: |
| Bank loans | 400,000 | 400,000 |
| Amounts falling due between two and five | years: |
| Bank loans | 1,887,757 | 2,029,634 |
| Amounts falling due in more than five years: |
| Repayable by instalments |
| Bank loans | 289,053 | 715,351 |
| The Coronavirus Business Interruption Loan balances for two of the subsidiaries amounting to £2,183,333 (2020 - £2,250,000) were outstanding as at 30 June 2021. |
| LONDON DIAMOND DRILLING HOLDINGS LTD (REGISTERED NUMBER: 08943769) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| for the year ended 30 June 2021 |
| 20. | LEASING AGREEMENTS |
| Minimum lease payments fall due as follows: |
| Group |
| Hire purchase contracts |
| 2021 | 2020 |
| £ | £ |
| Gross obligations repayable: |
| Within one year | 203,082 | 282,914 |
| Between one and five years | 290,469 | 268,014 |
| 493,551 | 550,928 |
| Finance charges repayable: |
| Within one year | 11,371 | 6,181 |
| Between one and five years | 6,102 | 11,323 |
| 17,473 | 17,504 |
| Net obligations repayable: |
| Within one year | 191,711 | 276,733 |
| Between one and five years | 284,367 | 256,691 |
| 476,078 | 533,424 |
| Group |
| Non-cancellable operating | leases |
| 2021 | 2020 |
| £ | £ |
| Within one year | 227,500 | 227,500 |
| Between one and five years | 80,300 | 307,500 |
| 307,800 | 535,000 |
| LONDON DIAMOND DRILLING HOLDINGS LTD (REGISTERED NUMBER: 08943769) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| for the year ended 30 June 2021 |
| 21. | SECURED DEBTS |
| The following secured debts are included within creditors: |
| Group |
| 2021 | 2020 |
| £ | £ |
| Hire purchase contracts | 476,078 | 533,424 |
| Hire purchase contracts are secured over the assets which they relate to. |
| The table below relates to the loan security between Blakron Limited, a subsidiary and The Royal Bank of Scotland: |
| Security type | Granted by | Security address/Description |
1. 1st Legal Charge |
Blakron Limited |
7 Eastbury Road, London Industrial Park, Beckton, London and its associated assets |
| 2. Debenture | Blakron Limited |
| 3. Loan guarantee supported by debenture |
LDD Construction Limited |
4. Deed of subordination |
Dean Carr |
Monies owed to Dean Carr by Blakron Limited |
5. Deed of subordination |
Marc Seagroatt |
Monies owed to Marc Seagroatt by Blakron Ltd |
| The table below relates to the loan security between LDD Construction Limited, a subsidiary and The Royal Bank of Scotland with regards to the Coronavirus Business Interruption Loan: |
| Security Type | Status | Granted By | Security Address/Description |
| 1. Debenture | Held | LDD Construction Limited |
| 2. Guarantee for £850,000 | Held | Blakron Limited |
| Supported by |
(i) Freehold 1st Legal Charge |
Held |
Blakon Limited |
7 Eastbury Road, London Industrial Park, Beckton, London and its associated assets |
| (ii) Debenture | Held | Blakron Limited |
| Also, under the Coronavirus Business Interruption Loan Scheme, the Secretary of State has agreed to provide the bank with a partial guarantee. The bank's ability to provide the customer with the loan is dependant upon the the bank receiving the partial guarantee. The partial guarantee is given to the bank and not to the customer and the customer remains liable for all sums payable under this agreement in the event of a default. |
| LONDON DIAMOND DRILLING HOLDINGS LTD (REGISTERED NUMBER: 08943769) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| for the year ended 30 June 2021 |
| 22. | PROVISIONS FOR LIABILITIES |
| Group |
| 2021 | 2020 |
| £ | £ |
| Deferred tax |
| Accelerated capital allowances | 25,459 | 61,795 |
| Group |
| Deferred |
| tax |
| £ |
| Balance at 1 July 2020 | 61,795 |
| Credit to Income Statement during year | (36,336 | ) |
| Balance at 30 June 2021 | 25,459 |
| 23. | CALLED UP SHARE CAPITAL |
| Allotted, issued and fully paid: |
| Number: | Class: | Nominal value: | 2021 | 2020 |
| £ | £ |
| 4,214 | Ordinary A | 1p | 42 | 42 |
| 4,114 | Ordinary B | 1p | 41 | 42 |
| 360 | Ordinary E | 1p | 4 | 4 |
| 240 | Ordinary F | 1p | 2 | 2 |
| 89 | 89 |
| Allotted and issued: |
| Number: | Class: | Nominal value: | 2021 | 2020 |
| £ | £ |
| 2,976 | Ordinary G | 1p | 30 | 30 |
| 24. | RESERVES |
| Group |
| Retained | Revaluation |
| earnings | reserve | Totals |
| £ | £ | £ |
| At 1 July 2020 | (709,836 | ) | - | (709,836 | ) |
| Profit for the year | 541,142 | 541,142 |
| Revaluation during the year | - | 727,276 | 727,276 |
| At 30 June 2021 | (168,694 | ) | 727,276 | 558,582 |
| LONDON DIAMOND DRILLING HOLDINGS LTD (REGISTERED NUMBER: 08943769) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| for the year ended 30 June 2021 |
| 24. | RESERVES - continued |
| Company |
| Retained |
| earnings |
| £ |
| At 1 July 2020 | ( |
) |
| Profit for the year |
| At 30 June 2021 | ( |
) |
| 25. | PENSION COMMITMENTS |
| The subsidiary company also operates a fully insured defined contribution pension scheme for certain members of staff and the pension charge represents the amounts paid by the company to the fund during the year. Payments during the year amounted to £180,579 (2020 - £183,377). These contributions are invested separately from the company's assets. |
| 26. | CONTINGENT LIABILITIES |
| There were no contingent liabilities at either the beginning or end of the financial year. |
| 27. | CAPITAL COMMITMENTS |
| As at 30 June 2021 the group had no capital commitments which had been contracted for but not provided in the financial statements. |
| 28. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES |
| The following advances and credits to a director subsisted during the years ended 30 June 2021 and 30 June 2020: |
| 2021 | 2020 |
| £ | £ |
| M D Seagroatt |
| Balance outstanding at start of year | - | (285,015 | ) |
| Amounts repaid | - | 285,015 |
| Amounts written off | - | - |
| Amounts waived | - | - |
| Balance outstanding at end of year | - | - |
| 29. | RELATED PARTY DISCLOSURES |
| The group has taken advantage of the exemption under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
| LONDON DIAMOND DRILLING HOLDINGS LTD (REGISTERED NUMBER: 08943769) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| for the year ended 30 June 2021 |
| 29. | RELATED PARTY DISCLOSURES - continued |
| During the year, total dividends of £Nil (2020 - £254,000) were paid to the directors. |
| Included in other creditors due within one year are loans from Mr D Carr and Mr M Seagroatt, directors, of £1,788,012 (2020 - £1,975,315) and £190,000 (2020 - £Nil) respectively. These loans are interest free and repayable on demand. |
| At the balance sheet date, LDD Construction Ltd, a subsidiary, was owed £77,594 (2020 - £77,594) by LDD Projects LLP, a Limited Liability Partnership in which the designated members are Mr M D Seagroatt and his wife. |
| At the balance sheet date, the parent company was owed £255,000 (2020 - £255,000) and £347,500 (2020 - £347,500) by Straight Eight and Universal Acquisitions Limited respectively, companies in which Mr M D Seagroatt, a director, has an interest. |
| Total compensation of key management personnel in the year amounted to £430,988 (2020 - £290,866). |
| The parent company was controlled throughout the current year and previous year by the directors, Mr M D Seagroatt and Mrs C Seagroatt, by virtue of their control of the entire issued "A" and "B" share capital. |
| 30. | AUDITOR LIABILITY LIMITATION AGREEMENT |
| The group has entered into a liability limitation agreement with Raffingers, the statutory auditor, in respect of the statutory audit for the period ended 30 June 2021. The proportionate liability agreement follows the standard terms in Appendix B to the Financial Reporting Council's June 2008 Guidance on Auditor Liability Agreements, and was approved by the members on 13 January 2022. |
| 31. | HOLIDAY ACCRUALS |
| The group made a provision for holiday pay of £18,000 (2020 - £18,000) and which comprises of holiday earned but not taken prior to the year-end. |
| 32. | GOING CONCERN |
| The liabilities of the parent company exceed the assets at the balance sheet but it continues to have the support of its fellow undertakings and the directors to continue trading for the foreseeable future. |