G.R. Lane Health Products Limited - Period Ending 2021-07-31

G.R. Lane Health Products Limited

Contents

G.R. Lane Health Products Limited

Company Information

G.R. Lane Health Products Limited

Strategic Report for the Year Ended 31 July 2021

The directors present their strategic report for the year ended 31 July 2021.

Principal activity

The principal activity of the company is that of the manufacture and distribution of Over the Counter pharmaceutical products, nutritional supplements and cosmetics.

Fair review of the business

These financial statements do not include the results of the company's trading subsidiaries, Jakemans (Confectioners) Limited and Lanes Brands Incorporated.

Market conditions and the economic environment continue to be challenging and the directors have been reacting accordingly to ensure that the financial resources available to the company are sufficient to support the company's business strategy. The results for the year, which are set out in the profit and loss account and balance sheet, show pre-tax profit for the year of £2,354,582 (2020 - £2,938,215) and net assets of £11,748,541 (2020 - £9,086,086).

Like most businesses, the company has been affected by the Coronavirus pandemic. The directors' took the appropriate steps to protect the company's business in accordance with Government guidance.

Key performance indicators

Given the nature of the business, the Directors are of the opinion that key performance indicators are a valuable tool for driving continuous improvement across all aspects of the business. The Company uses a number of key performance indicators to monitor and improve the performance of the business. Indicators are reviewed and altered to meet changes both in the internal and external environments and include measures relating to Financial Performance, Health and Safety, Employee Satisfaction, Customer Satisfaction, Quality and, Environmental.

The Company’s key financial indicators during the year included the measurement of turnover, gross profit margin, EBITDA and net cash generation which are presented in the Profit and Loss Account and Balance sheet. Indicators are reviewed on a daily, weekly and monthly basis, with a tiered escalation system in place for simplified communications and to ensure changes in internal and external environments can be reacted to in a timely manner.

Principal risks and uncertainties

The management of the company and the execution of the company's strategy are subject to a number of risks. The key business risks and uncertainties affecting the company are considered to relate to the general economic climate and competition from other manufacturers of complimentary products.

The full impact on both national and international business of the Coronavirus pandemic remains volatile and uncertain. The directors will continue to assess risk and act positively to as new information and guidance is released.

Brexit was one of the most significant economic events for the UK, with its final effects still ongoing. The directors continuously assess the possible risks using a framework that considers both probability and impact on the business.

Financial instruments

Financial risk management is an integral part of the way the company is managed. The overall aim of the company's financial risk policies is to minimise potential adverse effects on financial performance and net assets.

The company is exposed to the usual credit and cashflow risk associated with selling on credit and manages this through credit control procedures and maintains credit insurance cover on major customers.

Short term bank deposits are only placed with reputable blue chip banks.

The company's policy on liquidity risk is to ensure that sufficient funds for ongoing operations are available.

G.R. Lane Health Products Limited

Strategic Report for the Year Ended 31 July 2021

Going concern and liquidity risk

In accordance with Financial Reporting Council's 'Going Concern and Liquidity Risk: Guidance for Directors of UK Companies 2006' the directors of all companies are now required to provide disclosures regarding the adoption of the going concern basis of accounting.

The company has been impacted by the Coronavirus pandemic and the directors have considered different scenarios in order to ensure that the business is protected. This includes putting in place appropriate measures in accordance with Government guidance to ensure that people remain safe and the business is able to continue with as few interruptions as possible.

The company has sufficient financial resources available and is currently trading profitably and generating cash. The directors have prepared forecasts for the next 12 months that indicate that this trend will continue. The directors believe that the company has sufficient resources to continue in operational existence for the foreseeable future and have continued to adopt the going concern basis in preparing the financial statements.

Future developments

The external commercial environment remains challenging during 2021/22, in particular, the impact of the COVID-19 pandemic on sales. The directors have reacted to these circumstances in trading conditions, in accordance with the latest government guideline and utilising government support where appropriate to do so. Those actions and the ongoing application of the businesses strategy through the pandemic period are expected to be sufficient to ensure the continuity of the business.

Approved by the Board on 4 March 2022 and signed on its behalf by:

J M Groves
Director

G.R. Lane Health Products Limited

Directors' Report for the Year Ended 31 July 2021

The directors present their report and the financial statements for the year ended 31 July 2021.

Directors of the company

The directors who held office during the year were as follows:

J M Groves

P Whatley

D Cole (ceased 31 October 2021)

J Groves

M Horan

A Kelly

P Henly

H Lynn (ceased 10 August 2021)

T E Howard

The following director was appointed after the year end:

E M Hardy (appointed 10 August 2021)

Disclosure of information to the auditors

Reappointment of auditors

Hazlewoods LLP have expressed their willingness to continue in office.

Approved by the Board on 4 March 2022 and signed on its behalf by:

J M Groves
Director

G.R. Lane Health Products Limited

Statement of Directors' Responsibilities

G.R. Lane Health Products Limited

Independent Auditor's Report

Opinion

We have audited the financial statements of G.R. Lane Health Products Limited (the 'company') for the year ended 31 July 2021, which comprise the Profit and Loss Account, Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

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 Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

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 company's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were 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 included in the annual report, other than the financial statements and our auditor’s report 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.

We have nothing to report in this regard.

Opinion on other matter prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

G.R. Lane Health Products Limited

Independent Auditor's Report

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report and the Directors' Report.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page 5, 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 is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor’s 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 an auditor’s report 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.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. 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 requirements applicable to the company financial statements or that had a fundamental effect on the operations of the company. We determined that the most significant laws and regulations included UK GAAP, UK Companies Act 2006 and taxation laws;

• We understood how the company is complying with those legal and regulatory frameworks by making inquiries of management, and those responsible for legal and compliance procedures. We corroborated our enquiries through our review of board minutes.

• We assessed the susceptibility of the company’s financial statements to material misstatement including how fraud might occur. Audit procedures performed by the engagement team included:

A further description of our responsibilities is available on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

G.R. Lane Health Products Limited

Independent Auditor's Report

Use of this 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 an auditor’s report 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.

Jon Cartwright (Senior Statutory Auditor)
For and on behalf of Hazlewoods LLP, Statutory Auditor

Windsor House
Bayshill Road
Cheltenham
GL50 3AT

15 March 2022

G.R. Lane Health Products Limited

Profit and Loss Account
for the Year Ended 31 July 2021

The above results were derived from continuing operations.

G.R. Lane Health Products Limited

Statement of Comprehensive Income
for the Year Ended 31 July 2021

G.R. Lane Health Products Limited

(Registration number: 00843899 )
Balance Sheet
as at 31 July 2021

Approved and authorised by the Board on 4 March 2022 and signed on its behalf by:
 

J M Groves
Director

G.R. Lane Health Products Limited

Statement of Changes in Equity
for the Year Ended 31 July 2021

G.R. Lane Health Products Limited

Notes to the Financial Statements
for the Year Ended 31 July 2021

The company is a private company limited by shares incorporated and domiciled in England and Wales.

The address of its registered office is:
Sisson Road
Gloucester
GL2 0GR

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

Basis of preparation

Name of parent of group

These financial statements are consolidated in the financial statements of G.R Lane Holdings Limited.

The financial statements of G.R Lane Holdings Limited may be obtained from the company's registered office.

Going concern

The company has been impacted by the Coronavirus pandemic and the directors have considered different scenarios in order to ensure that the business is protected. This includes putting in place appropriate measures in accordance with Government guidance to ensure that people remain safe and the business is able to continue with as few interruptions as possible.

The company has sufficient financial resources available and is currently trading profitably and generating cash. The directors have prepared forecasts for the next 12 months that indicate that this trend will continue. The directors believe that the company has sufficient resources to continue in operational existence for the foreseeable future and have continued to adopt the going concern basis in preparing the financial statements.

Judgements and estimation uncertainty

G.R. Lane Health Products Limited

Notes to the Financial Statements
for the Year Ended 31 July 2021

Revenue recognition

Foreign currency transactions and balances

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rates prevailing on the initial transaction dates.

Non- monetary items measured in terms of historic cost in a foreign currency are not translated.

Tax

Tangible assets

Depreciation

G.R. Lane Health Products Limited

Notes to the Financial Statements
for the Year Ended 31 July 2021

Intangible assets

Amortisation

Research and development
Research expenditure is written off to the profit and loss account in the year in which it is incurred. Development expenditure is written off in the same way unless the directors are satisfied as to the technical, commercial and financial viability of individual projects. In this situation, the expenditure is deferred and amortised over the period during which the company is expected to benefit.

Investments

Cash and cash equivalents

Trade debtors

Stocks

G.R. Lane Health Products Limited

Notes to the Financial Statements
for the Year Ended 31 July 2021

Trade creditors

Borrowings

Leases

Share capital

Dividends

Defined contribution pension obligation

G.R. Lane Health Products Limited

Notes to the Financial Statements
for the Year Ended 31 July 2021

Defined benefit pension obligation

Financial instruments

Classification
Financial instruments are classified and accounted for according to the substance of the contractual arrangement, as financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. Where shares are issued, any component that creates a financial liability of the company is presented as a liability on the balance sheet. The corresponding dividends relating to the liability component are charged as interest expenses in the profit and loss account.
 
Recognition and measurement
All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

Financial assets and liabilities are only offset in the balance sheet when, and only when, there exists a legally enforceable right to set off the recognised amounts and the company intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.
 
Impairment
Assets, other than those measured at fair value, are assessed for indicators of impairment at each balance sheet date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss as described below.

Non-financial assets
An asset is impaired where there is objective evidence that, as a result of one or more events that occurred after initial recognition, the estimated recoverable value of the asset has been reduced. The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use.

Where indicators exist for a decrease in impairment loss, and the decrease can be related objectivity to and event occurring after the impairment was recognised, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised.
 

Financial assets
For financial assets carried at amortised cost, the amount of an impairment is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the financial asset’s original effective interest rate.

For financial assets carried at cost less impairment, the impairment loss is the difference between the asset’s carrying amount and the best estimate of the amount that would be received for the asset if it were to be sold at the reporting date.

Where indicators exist for a decrease in impairment loss, and the decrease can be related objectively to an event occurring after the impairment was recognised, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired financial asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised.

G.R. Lane Health Products Limited

Notes to the Financial Statements
for the Year Ended 31 July 2021

The analysis of the company's revenue for the year by market is as follows:

The company's revenue derives entirely from the sale of goods.

The analysis of the company's other operating income for the year is as follows:

Coronavirus Job Retention Scheme
The company recieved grants in relation to the Coronavirus Job Retention Scheme (CJRS) which are accounted as revenue grant. £322,031 (2020 - £140,030) was credited to the profit and loss acocunt in relation to this grant.

Arrived at after charging:

G.R. Lane Health Products Limited

Notes to the Financial Statements
for the Year Ended 31 July 2021

The aggregate payroll costs (including directors' remuneration) were as follows:

The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:

The directors' remuneration for the year was as follows:

During the year the number of directors who were receiving benefits and share incentives was as follows:

In respect of the highest paid director:

G.R. Lane Health Products Limited

Notes to the Financial Statements
for the Year Ended 31 July 2021

Tax charged/(credited) in the profit and loss account

The tax on profit before tax for the year is lower than the standard rate of corporation tax in the UK (2020 - lower than the standard rate of corporation tax in the UK) of 19% (2020 - 19%).

The differences are reconciled below:

Analysis of deferred tax

G.R. Lane Health Products Limited

Notes to the Financial Statements
for the Year Ended 31 July 2021

Revaluations
The freehold land and buildings class of fixed assets was valued at £4,000,000 on 31 July 2020 by Ash & Co. Chartered Surveyors who are external to the company. The basis of this valuation was market value. This class of assets has a current balance sheet value of £3,666,666 (2020 - £3,733,332) and a carrying amount at historical cost of £2,417,709 (2020 - £2,462,628). The depreciation on this historical cost is £933,160 (2020 - £888,241).

G.R. Lane Health Products Limited

Notes to the Financial Statements
for the Year Ended 31 July 2021

Details of undertakings

Details of the investments in which the company holds 20% or more of the nominal value of any class of share capital are as follows:

The principal activity of Jakemans (Confectioners) Limited is the manufacture and retail of confectionery.

The principal activity of Lanes Brands Incorpoarted is the retail of confectionery.

Supersun Limited, Laneshealth Limited, Thos. Symington Limited and Sarakan Limited are all dormant companies.
 

G.R. Lane Health Products Limited

Notes to the Financial Statements
for the Year Ended 31 July 2021

G.R. Lane Health Products Limited

Notes to the Financial Statements
for the Year Ended 31 July 2021

Bank borrowings

Bank loan 1 is denominated in £ sterling with an interest rate of 2.2%, and the final instalment is due on 18th January 2022. The carrying amount at year end is £27,122 (2020 - £79,922).

Bank loan 2 is denominated in £ sterling with an interest rate of 5.66%, and the final instalment is due on 22nd December 2024. The carrying amount at year end is £1,412,260 (2020 - £1,767,345).

Bank loan 3 is denominated in £ sterling with an interest rate of 7.06%, and the final instalment is due on 12th December 2022. The carrying amount at year end is £2,439,069 (2020 - £3,951,180).

The loans are secured by a debenture over the assets and undertakings of G.R. Lane Health Products Limited, G.R. Lane Holdings Limited and Jakemans (Confectioners) Limited, a first legal mortgage over the freehold premises and an unlimited joint and several guarantee from guarantors.

In May 2021, the company obtained a Coronavirus Business Interuption Loan of £3,000,000. The loan is denominated in £ sterling with an interest rate of 2.43% plus the bank base rate. Capital repayments commence in May 2022 and the final instalment is due in April 2026. The carrying amount at the year end is £3,000,000 (2020 - £nil).

Allotted, called up and fully paid shares

G.R. Lane Health Products Limited

Notes to the Financial Statements
for the Year Ended 31 July 2021

Defined benefit pension schemes
 

G R Lane Health Products Limited Pension Scheme

The date of the most recent comprehensive actuarial valuation was 31 July 2020. The actuary concluded that the resources of the scheme were likely, in the normal course of events, to meet 82% of the liabilities of the scheme as they fell due. This valuation and the calculation of scheme liabilities for FRS 102 reporting purposes in these financial statements reflect the decision to close the scheme to future accrual of benefits on 1 August 2012.

The total cost relating to defined benefit schemes for the year recognised in profit or loss as an expense was £117,000 (2020 - £134,000).

Reconciliation of scheme assets and liabilities to assets and liabilities recognised

The amounts recognised in the statement of financial position are as follows:

Defined benefit obligation

Changes in the defined benefit obligation are as follows:

G.R. Lane Health Products Limited

Notes to the Financial Statements
for the Year Ended 31 July 2021

Fair value of scheme assets

Changes in the fair value of scheme assets are as follows:

Analysis of assets

The major categories of scheme assets are as follows:

Return on scheme assets

The pension scheme has not invested in any of the company's own financial instruments or in properties or other assets used by the company.

Principal actuarial assumptions

The principal actuarial assumptions at the statement of financial position date are as follows:

G.R. Lane Health Products Limited

Notes to the Financial Statements
for the Year Ended 31 July 2021

G R Lane Health Products Limited Executive Pension Scheme

The total cost relating to defined benefit schemes for the year recognised in profit or loss as an expense was £32,000 (2020 - £58,000).
 

Reconciliation of scheme assets and liabilities to assets and liabilities recognised

The amounts recognised in the statement of financial position are as follows:

Defined benefit obligation

Changes in the defined benefit obligation are as follows:

G.R. Lane Health Products Limited

Notes to the Financial Statements
for the Year Ended 31 July 2021

Fair value of scheme assets

Changes in the fair value of scheme assets are as follows:

Analysis of assets

The major categories of scheme assets are as follows:

Return on scheme assets

The pension scheme has not invested in any of the company's own financial instruments or in properties or other assets used by the company.

Principal actuarial assumptions

The principal actuarial assumptions at the statement of financial position date are as follows:

G.R. Lane Health Products Limited

Notes to the Financial Statements
for the Year Ended 31 July 2021

The total of future minimum lease payments is as follows:

The amount of non-cancellable operating lease payments recognised as an expense during the year was £214,370 (2020 - £204,326).

Summary of transactions with key management

Key management personnel are considered to be the directors of the company and key management personnel compensation is disclosed in note 8 to the financial statements.
 

Related parties
The company has taken advantage of the exemption from disclosing transactions with other members of the group.

The company is controlled by G.R. Lane Holdings Limited, the ultimate parent undertaking.

G.R Lane Health Products Limited is a wholly owned subsidiary of G.R. Lane Holdings Limited.

G.R Lane Holdings Limited is registered in England and Wales.

G.R. Lane Holdings Limited prepare consolidated financial statements and copies can be obtained from the registered office.