LF Solutions Limited - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: 08203435 (England and Wales)

UNAUDITED FINANCIAL STATEMENTS

FOR THE PERIOD 1 SEPTEMBER 2019 TO 28 FEBRUARY 2021

FOR

LF SOLUTIONS LIMITED

Page

Company Information

1

Statement of Financial Position

2

Notes to the Financial Statements

4

DIRECTOR:

Mr F Kane

REGISTERED OFFICE:

Yard 1 Barton Industrial Estate

Faldo Road

Barton-Le-Clay

Bedfordshire

MK45 4RP

REGISTERED NUMBER:

08203435 (England and Wales)

ACCOUNTANTS:

AGK Partners

Chartered Accountants

1 Kings Avenue

London

N21 3NA

FIXED ASSETS

Property, plant and equipment

4

776,838

553,306

Investments

5

-

-

776,838

553,306

CURRENT ASSETS

Inventories

2,672,904

1,879,140

Debtors

6

2,007,619

1,805,771

Cash at bank and in hand

241,150

166,584

4,921,673

3,851,495

CREDITORS

Amounts falling due within one year

7

2,497,966

2,654,154

NET CURRENT ASSETS

2,423,707

1,197,341

TOTAL ASSETS LESS CURRENT LIABILITIES

3,200,545

1,750,647

CREDITORS

Amounts falling due after more than one year

8

(1,312,346

)

-

PROVISIONS FOR LIABILITIES

9

(91,820

)

(93,144

)

NET ASSETS

1,796,379

1,657,503

CAPITAL AND RESERVES

Called up share capital

1

1

Retained earnings

1,796,378

1,657,502

SHAREHOLDERS' FUNDS

1,796,379

1,657,503

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the period ended 28 February 2021.

The members have not required the company to obtain an audit of its financial statements for the period ended 28 February 2021 in accordance with Section 476 of the Companies Act 2006.

The director acknowledges his responsibilities for:

(a)	ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

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

In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered.

The financial statements were approved by the director and authorised for issue on 26 October 2021 and were signed by:

Mr F Kane - Director

1.	STATUTORY INFORMATION

LF Solutions Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Significant judgements and estimates

In the application of the company's accounting policies, the director is required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are 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 where the revision affects only that period or in the period of the revision and future periods where the revision affects both current and future period.

There are no significant judgements or estimates involved in the preparation of the financial statements.

Revenue

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

Revenue is recognised at the point the company has transferred to the buyer the significant risks and rewards, the amount of the revenue can be measured reliably and it is probable the economic benefits associated with the transactions will flow to the company.

When the outcome of a construction contract can be estimated reliably, contract revenue and contract costs are recognised as revenue and expenses respectively by reference to the stage of completion of the contract activity at the balance sheet date. When the outcome of a construction contract cannot be estimated reliably, contract revenue is recognised to the extent of contract costs incurred that are likely to be recoverable. When it is probable that total contract costs will exceed total contract revenue, the expected loss is recognised as an expense immediately.

Property, plant and equipment

Property, plant and equipment are stated at cost less accumulated depreciation and accumulated impairment losses. Such cost includes costs directly attributable to making the assets capable of operating as intended.

The carrying value of tangible assets are reviewed for impairment when events or changes in circumstances indicate the carrying value may not be recoverable.

Depreciation has been provided at the following rates in order to write off the assets over their estimated useful lives.

Land & Buildings - no depreciation.

Plant and machinery - 20% on reducing balance.

Fixtures and fittings - 20% on reducing balance.

Computer equipment - 20% on cost

Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

A grant that specifies performance conditions is recognised as income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised as income when the grant proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

Government grants received by the company relate to the Coronavirus Job Retention (Furlough) Scheme.

Investments in subsidiaries

Investments in subsidiary undertakings are recognised at cost.

Inventories

Inventories are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first in first out method. The carrying amount of inventory sold is recognised as an expense in the period in which the related revenue is recognised.

Taxation

Taxation for the period comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the period 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.

Hire purchase and leasing commitments

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Cash and cash equivalents

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the period was 12 (2019 - 15 ) .

4.	PROPERTY, PLANT AND EQUIPMENT

Freehold

Short

Plant and

property

leasehold

machinery

£

£

£

COST

At 1 September 2019

-

-

735,724

Additions

625,467

388,316

6,167

Disposals

(625,467

)

-

(98,000

)

At 28 February 2021

-

388,316

643,891

DEPRECIATION

At 1 September 2019

-

-

259,617

Charge for period

-

-

136,145

Eliminated on disposal

-

-

(72,598

)

At 28 February 2021

-

-

323,164

NET BOOK VALUE

At 28 February 2021

-

388,316

320,727

At 31 August 2019

-

-

476,107

Fixtures

and

Computer

fittings

equipment

Totals

£

£

£

COST

At 1 September 2019

105,547

39,793

881,064

Additions

283

19,572

1,039,805

Disposals

-

-

(723,467

)

At 28 February 2021

105,830

59,365

1,197,402

DEPRECIATION

At 1 September 2019

50,981

17,160

327,758

Charge for period

16,456

12,803

165,404

Eliminated on disposal

-

-

(72,598

)

At 28 February 2021

67,437

29,963

420,564

NET BOOK VALUE

At 28 February 2021

38,393

29,402

776,838

At 31 August 2019

54,566

22,633

553,306

5.	FIXED ASSET INVESTMENTS

Shares in

group

undertakings

£

COST

Additions

113,055

Disposals

(113,055

)

At 28 February 2021

-

NET BOOK VALUE

At 28 February 2021

-

6.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2021

2019

£

£

Trade debtors

1,330,401

1,118,304

Amounts owed by group undertakings

509,886

-

Other debtors

167,332

687,467

2,007,619

1,805,771

7.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2021

2019

£

£

Bank loans and overdrafts

218,680

-

Hire purchase contracts

2,823

15,709

Trade creditors

1,627,146

2,087,492

Amounts owed to group undertakings

-

144,738

Taxation and social security

89,567

136,819

Other creditors

559,750

269,396

2,497,966

2,654,154

8.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2021

2019

£

£

Bank loans

1,311,640

-

Hire purchase contracts

706

-

1,312,346

-

Amounts falling due in more than five years:

Repayable by instalments

Bank loans more 5 yr by instal

177,273

-

9.	PROVISIONS FOR LIABILITIES

2021

2019

£

£

Deferred tax

Accelerated capital allowances

91,820

93,144

Deferred

tax

£

Balance at 1 September 2019

93,144

Provided during period

(1,324

)

Balance at 28 February 2021

91,820

10.	RELATED PARTY DISCLOSURES

The company has taken advantage of 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.

During the year, £279,000 (2019: £336,000) was charged as management fees to connected companies.

Included in debtors due within one year, is an amount of £15,232 (2019: £296,355) owed by connected companies under common control. The amount is interest free and repayable on demand.

Included in creditors due within one year is an amount of £41,798 (2019: £59,923 owed by) owed to a connected company under common control. The amount is interest free and repayable on demand.