Lodn Limited - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: 07023413 (England and Wales)

LODN LIMITED

UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2021

Page

Company Information

1

Balance Sheet

2

to

3

Notes to the Financial Statements

4

to

8

DIRECTOR:

Mrs C M Savage

REGISTERED OFFICE:

LODN Ltd

Little Oaks Day Nursery, Maple Road

Enigma Business Park

Malvern

Worcestershire

WR14 1GQ

REGISTERED NUMBER:

07023413 (England and Wales)

ACCOUNTANTS:

CUTTER & CO LTD

CHARTERED ACCOUNTANTS

3 Lyttleton Court

Birmingham Street

Halesowen

West Midlands

B63 3HN

FIXED ASSETS

Intangible assets

4

45,000

50,000

Tangible assets

5

679,054

662,150

724,054

712,150

CURRENT ASSETS

Stocks

6

1,360

553

Debtors

7

15,159

9,178

Cash at bank and in hand

129,002

41,266

145,521

50,997

CREDITORS

Amounts falling due within one year

8

723,444

711,522

NET CURRENT LIABILITIES

(577,923

)

(660,525

)

TOTAL ASSETS LESS CURRENT LIABILITIES

146,131

51,625

PROVISIONS FOR LIABILITIES

9

2,500

1,806

NET ASSETS

143,631

49,819

CAPITAL AND RESERVES

Called up share capital

2

2

Retained earnings

143,629

49,817

143,631

49,819

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 August 2021.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 August 2021 in accordance with Section 476 of the Companies Act 2006.

The director acknowledges her 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 5 October 2021 and were signed by:

Mrs C M Savage - Director

1.	STATUTORY INFORMATION

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

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

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

Related party exemption

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.

Significant judgements and estimates

In application of the company's accounting policies management is required to make judgements, estimates and assumptions about the carrying value of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

The key sources of estimation uncertainty that have a significant effect on the amounts recognised in the financial statements are described below;

Estimation of depreciation and amortisation

In selecting appropriate depreciation and amortisation policies management must exercise a certain level of estimation when determining the expected useful life of assets purchased or internally developed. Assets are continually reviewed for impairment and are written off immediately when no longer in use.

Revenue

Turnover is the amount derived from the principle activity of the company, being the provision of childcare nursery services, and is stated net of VAT. Revenue is recognised to the extent that it is probable that economic benefits will flow to the company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:

- the amount of revenue can be measured reliably;

- it is probable that the company will receive consideration due under the contract;

- the stage of completion of the contract at the end of the reporting period can be measured reliably; and

- the costs incurred and the costs to complete the contract can be measured reliably.

Goodwill

Goodwill, being the amount paid in connection with the acquisition of a business in 2011, is being amortised evenly over its estimated useful life of twenty years.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Tangible fixed assets

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

Plant and machinery

-

25% on reducing balance

Fixtures and fittings

-

15% on reducing balance

Motor vehicles

-

25% on reducing balance

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 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

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.

Hire purchase and leasing commitments

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.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 29 (2020 - 30 ) .

4.	INTANGIBLE FIXED ASSETS

Goodwill

£

COST

At 1 September 2020

and 31 August 2021

100,000

AMORTISATION

At 1 September 2020

50,000

Charge for year

5,000

At 31 August 2021

55,000

NET BOOK VALUE

At 31 August 2021

45,000

At 31 August 2020

50,000

5.	TANGIBLE FIXED ASSETS

Improvements

Freehold

to

Plant and

property

property

machinery

£

£

£

COST

At 1 September 2020

650,000

-

47,710

Additions

-

16,762

5,349

Disposals

-

-

(1,227

)

At 31 August 2021

650,000

16,762

51,832

DEPRECIATION

At 1 September 2020

-

-

41,578

Charge for year

-

3,352

3,192

Eliminated on disposal

-

-

(1,114

)

At 31 August 2021

-

3,352

43,656

NET BOOK VALUE

At 31 August 2021

650,000

13,410

8,176

At 31 August 2020

650,000

-

6,132

Computer

Fixtures

and

and

Motor

office

fittings

vehicles

equipment

Totals

£

£

£

£

COST

At 1 September 2020

5,568

16,069

3,444

722,791

Additions

7,476

-

-

29,587

Disposals

(1,008

)

(16,069

)

(3,444

)

(21,748

)

At 31 August 2021

12,036

-

-

730,630

DEPRECIATION

At 1 September 2020

4,015

11,604

3,444

60,641

Charge for year

1,354

558

-

8,456

Eliminated on disposal

(801

)

(12,162

)

(3,444

)

(17,521

)

At 31 August 2021

4,568

-

-

51,576

NET BOOK VALUE

At 31 August 2021

7,468

-

-

679,054

At 31 August 2020

1,553

4,465

-

662,150

6.

STOCKS

2021

2020

£

£

Stocks

1,360

553

7.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2021

2020

£

£

Trade debtors

2,217

2,139

Other debtors

-

111

Prepayments and accrued income

3,294

-

Prepayments

9,648

6,928

15,159

9,178

8.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2021

2020

£

£

Bank loans and overdrafts

1,402

378

Payments on account

13,938

11,171

Trade creditors

9,437

7,911

Amounts owed to group undertakings

658,247

-

Corporation tax

4,930

12,062

Social security and other taxes

3,677

5,095

Other creditors

13,274

15,096

Directors' current accounts

195

650,195

Accrued expenses

18,344

9,614

723,444

711,522

9.	PROVISIONS FOR LIABILITIES

2021

2020

£

£

Deferred tax

2,500

1,806

Deferred

tax

£

Balance at 1 September 2020

1,806

Provided during year

694

Balance at 31 August 2021

2,500