ACCOUNTS - Final Accounts preparation

Operating profit

The operating profit is stated after charging:

Caseware UK (AP4) 2021.0.152 2021.0.152 2021-12-312022-05-062022-05-062021-12-312022-05-06false2021-01-01172Installation, servicing and maintenance of liftsfalse165false 02487116 2021-01-01 2021-12-31 02487116 2020-01-01 2020-12-31 02487116 2021-12-31 02487116 2020-12-31 02487116 c:Director1 2021-01-01 2021-12-31 02487116 c:Director2 2021-01-01 2021-12-31 02487116 c:Director3 2021-01-01 2021-12-31 02487116 c:Director4 2021-01-01 2021-12-31 02487116 c:RegisteredOffice 2021-01-01 2021-12-31 02487116 c:Agent1 2021-01-01 2021-12-31 02487116 d:PlantMachinery 2021-01-01 2021-12-31 02487116 d:PlantMachinery 2021-12-31 02487116 d:PlantMachinery 2020-12-31 02487116 d:PlantMachinery d:OwnedOrFreeholdAssets 2021-01-01 2021-12-31 02487116 d:MotorVehicles 2021-01-01 2021-12-31 02487116 d:MotorVehicles 2021-12-31 02487116 d:MotorVehicles 2020-12-31 02487116 d:MotorVehicles d:OwnedOrFreeholdAssets 2021-01-01 2021-12-31 02487116 d:OfficeEquipment 2021-01-01 2021-12-31 02487116 d:OfficeEquipment 2021-12-31 02487116 d:OfficeEquipment 2020-12-31 02487116 d:OfficeEquipment d:OwnedOrFreeholdAssets 2021-01-01 2021-12-31 02487116 d:ComputerEquipment 2021-01-01 2021-12-31 02487116 d:ComputerEquipment 2021-12-31 02487116 d:ComputerEquipment 2020-12-31 02487116 d:ComputerEquipment d:OwnedOrFreeholdAssets 2021-01-01 2021-12-31 02487116 d:OwnedOrFreeholdAssets 2021-01-01 2021-12-31 02487116 d:CurrentFinancialInstruments 2021-12-31 02487116 d:CurrentFinancialInstruments 2020-12-31 02487116 d:CurrentFinancialInstruments d:WithinOneYear 2021-12-31 02487116 d:CurrentFinancialInstruments d:WithinOneYear 2020-12-31 02487116 d:UKTax 2021-01-01 2021-12-31 02487116 d:UKTax 2020-01-01 2020-12-31 02487116 d:ShareCapital 2021-12-31 02487116 d:ShareCapital 2020-12-31 02487116 d:RetainedEarningsAccumulatedLosses 2021-01-01 2021-12-31 02487116 d:RetainedEarningsAccumulatedLosses 2021-12-31 02487116 d:RetainedEarningsAccumulatedLosses 2020-01-01 2020-12-31 02487116 d:RetainedEarningsAccumulatedLosses 2020-12-31 02487116 d:RetainedEarningsAccumulatedLosses 2020-01-01 02487116 d:FinancialAssetsAmortisedCost 2021-12-31 02487116 d:FinancialAssetsAmortisedCost 2020-12-31 02487116 d:FinancialLiabilitiesAmortisedCost 2021-12-31 02487116 d:FinancialLiabilitiesAmortisedCost 2020-12-31 02487116 d:AcceleratedTaxDepreciationDeferredTax 2021-12-31 02487116 d:AcceleratedTaxDepreciationDeferredTax 2020-12-31 02487116 d:TaxLossesCarry-forwardsDeferredTax 2021-12-31 02487116 d:TaxLossesCarry-forwardsDeferredTax 2020-12-31 02487116 c:OrdinaryShareClass1 2021-01-01 2021-12-31 02487116 c:OrdinaryShareClass1 2021-12-31 02487116 c:OrdinaryShareClass1 2020-12-31 02487116 c:FRS102 2021-01-01 2021-12-31 02487116 c:Audited 2021-01-01 2021-12-31 02487116 c:FullAccounts 2021-01-01 2021-12-31 02487116 c:PrivateLimitedCompanyLtd 2021-01-01 2021-12-31 02487116 d:WithinOneYear 2021-12-31 02487116 d:WithinOneYear 2020-12-31 02487116 d:BetweenOneFiveYears 2021-12-31 02487116 d:BetweenOneFiveYears 2020-12-31 02487116 d:MoreThanFiveYears 2021-12-31 02487116 d:MoreThanFiveYears 2020-12-31 02487116 d:PlantEquipmentOtherAssetsUnderOperatingLeases 2021-12-31 02487116 d:PlantEquipmentOtherAssetsUnderOperatingLeases 2020-12-31 02487116 d:PlantEquipmentOtherAssetsUnderOperatingLeases d:WithinOneYear 2021-12-31 02487116 d:PlantEquipmentOtherAssetsUnderOperatingLeases d:WithinOneYear 2020-12-31 02487116 d:PlantEquipmentOtherAssetsUnderOperatingLeases d:BetweenOneFiveYears 2021-12-31 02487116 d:PlantEquipmentOtherAssetsUnderOperatingLeases d:BetweenOneFiveYears 2020-12-31 02487116 6 2021-01-01 2021-12-31 xbrli:shares iso4217:GBP xbrli:pure

Registered number: 02487116

CLASSIC LIFTS LTD

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021

CLASSIC LIFTS LTD

COMPANY INFORMATION

Directors	I Snow
	K Snow
	A Shaw
	A J Crane


Registered number	02487116


Registered office	Unit 3, Genesis Park
	Sheffield Road
	Rotherham
	South Yorkshire
	S60 1DX


Independent auditors	Shorts
	Chartered Accountants & Statutory Auditor
	Cedar House
	63 Napier Street
	Sheffield
	South Yorkshire
	S11 8HA


Bankers	Santander

CLASSIC LIFTS LTD

CONTENTS

	Page
Strategic Report	1 - 2
Directors' Report	3 - 4
Independent Auditors' Report	5 - 8
Statement of Income and Retained Earnings	9
Balance Sheet	10
Notes to the Financial Statements	11 - 24

CLASSIC LIFTS LTD

STRATEGIC REPORT

FOR THE YEAR ENDED 31 DECEMBER 2021

Introduction

The directors present their Strategic Report for the company for the year ending 31 December 2021.

Business review

Classic Lifts Limited’s (“the company”), registered number 2487116, principal activities are the maintenance of lifts, installation of lifts, refurbishment of lifts and the repair of lift equipment, throughout the U.K. The company is structured to provide a national service through strategically located branches with local people having local knowledge.
2021 initially had a projected value of sales increase of approximately 15% from 2020. However, a stronger than expected recovery in the UK market from the downturn and restrictions of 2020 along with an enhanced focus on our service & projects delivery meant that Classic Lifts delivered a 32% year on year, value of sales, increase in 2021. Performance for the year with comparative data from the previous three years is as follows:

The Company achieved a 24% increase in its maintenance unit portfolio in 2021 and successfully completed several major installation/modernisation projects whilst continuing to invest in our people, our systems, our processes and our products.
We are pleased with the financial results for 2021 and enter 2022 with a very healthy order book that includes further significant major projects.

Moving forward

We are projecting an approximate 25% growth in sales in 2022 whilst retaining a return of sales of approximately 10%.
The Company opened an additional regional office in Bristol on 1st January 2022 which means we now have six strategically placed branches throughout the UK, each with local senior management and local resources in place. A re-structure of the national senior management team took effect from 1st January 2022 strengthening the national and centralised support to our Regional Offices from HSEQ, Technical & Financial Directors.
In addition to the potential and projection for generic growth in 2022 we remain alert and open to oppurtunities to invest in people or further acquisitions to facilitate additional strategic development and growth.

Page 1

CLASSIC LIFTS LTD

STRATEGIC REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2021

This report was approved by the board on 6 May 2022 and signed on its behalf.

K Snow

Director

Page 2

CLASSIC LIFTS LTD

DIRECTORS' REPORT

FOR THE YEAR ENDED 31 DECEMBER 2021

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

Directors

The directors who served during the year were:

I Snow

K Snow

A Shaw

A J Crane

Directors' responsibilities statement

The directors are responsible for preparing the Strategic Report, the Directors' Report 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 of the profit or loss of the Company for that period.

In preparing these financial statements, the directors are required to:

∙select suitable accounting policies for the Company's financial statements 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 transactions and disclose with reasonable accuracy at any time the financial position of the Company and to 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 hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Results and dividends

The profit for the year, after taxation, amounted to £1,979,657 (2020 - £1,576,597).

During the year dividends of £735,000 (2020: £675,000) were approved and paid in respect of the year ended 31 December 2021.

Qualifying third party indemnity provisions

The directors have been granted a qualifying third party indemnity provision under Section 234 of the Companies Act 2006. The indemnity does not provide cover in the event of a director being proven to have acted fraudulently or dishonestly.

Page 3

CLASSIC LIFTS LTD

DIRECTORS' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2021

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:

∙so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and

∙the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

Post balance sheet events

There have been no significant events affecting the Company since the year end.

Auditors

The auditors, Shorts, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 6 May 2022 and signed on its behalf.

K Snow

Director

Page 4

CLASSIC LIFTS LTD

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CLASSIC LIFTS LTD

Opinion

We have audited the financial statements of Classic Lifts Ltd (the 'Company') for the year ended 31 December 2021, which comprise the Statement of Income and Retained Earnings, the Balance Sheet and the related notes, 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 Company's affairs as at 31 December 2021 and of its 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 Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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 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.

Page 5

CLASSIC LIFTS LTD

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CLASSIC LIFTS LTD (CONTINUED)

Other information

The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The directors are responsible for the other information contained within the Annual Report. 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. 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 course of 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.

Opinion 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 Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

∙the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

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

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

∙adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

∙the 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 Directors' Responsibilities Statement set out on page 3, 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.

Page 6

CLASSIC LIFTS LTD

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CLASSIC LIFTS LTD (CONTINUED)

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 an Auditors' 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:

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 team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;

∙through discussions with the directors and other management and from our commercial knowledge and experience of the clients business, we identified the laws and regulations applicable to the Company; and

∙focusing on the specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the Company, we assessed the extent of compliance with those laws and regulations identified above through making enquiries of management and inspecting relevant correspondence.

We assessed the susceptibility of the Company’s financial statements to material misstatement, includingobtaining 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 regulation.

To address the risk of fraud through management bias and override of controls, we:

∙performed analytical procedures to identify any unusual or unexpected relationships;

∙reviewed journal entries to identify unusual transactions;

∙assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and

∙investigated the rationale behind significant or unusual transactions.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedureswhich included, but were not limited to:

∙agreeing financial statement disclosures to underlying supporting documentation;

∙reading the minutes of meetings of those charged with governance;

∙enquiring of management as to actual and potential litigation and claims; and

∙reviewing and correspondence with HMRC, relevant regulators and the Company’s legal advisors.

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

Page 7

CLASSIC LIFTS LTD

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CLASSIC LIFTS LTD (CONTINUED)

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 Auditors' Report.

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 an Auditors' 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.

Malcolm Pope (Senior Statutory Auditor)

for and on behalf of

Shorts

Chartered Accountants

Statutory Auditor

Cedar House

63 Napier Street

Sheffield

South Yorkshire

S11 8HA

6 May 2022

Page 8

CLASSIC LIFTS LTD

STATEMENT OF INCOME AND RETAINED EARNINGS

FOR THE YEAR ENDED 31 DECEMBER 2021

	2021	2020
Note	£	£


Turnover		24,075,118	18,196,502
Cost of sales		(15,844,631)	(11,877,222)
Gross profit		8,230,487	6,319,280
Administrative expenses		(5,904,209)	(4,895,507)
Other operating income	4	117,287	518,161
Operating profit	5	2,443,565	1,941,934
Interest receivable and similar income		4,962	11,870
Interest payable and similar expenses		(195)	(78)
Profit before tax		2,448,332	1,953,726
Tax on profit	9	(468,675)	(377,129)
Profit after tax		1,979,657	1,576,597



Retained earnings at the beginning of the year	2,728,982	1,827,385
Profit for the year	1,979,657	1,576,597
Dividends declared and paid	(735,000)	(675,000)
Retained earnings at the end of the year	3,973,639	2,728,982

The notes on pages 11 to 24 form part of these financial statements.

Page 9

CLASSIC LIFTS LTD

REGISTERED NUMBER: 02487116

BALANCE SHEET

AS AT 31 DECEMBER 2021

		2021		2020
Note		£		£

Fixed assets
Tangible assets	10		193,994		202,730
Investments	11		1		1
			193,995		202,731
Current assets
Stocks	12	720,504		152,031
Debtors: amounts falling due within one year	13	3,522,791		3,152,758
Cash at bank and in hand	14	6,311,634		6,300,649
		10,554,929		9,605,438
Creditors: amounts falling due within one year	15	(6,719,416)		(7,021,901)
Net current assets			3,835,513		2,583,537
Total assets less current liabilities			4,029,508		2,786,268
Provisions for liabilities
Deferred tax	17		(25,869)		(27,286)
Net assets			4,003,639		2,758,982

Capital and reserves
Called up share capital	18	30,000	30,000
Profit and loss account	19	3,973,639	2,728,982
		4,003,639	2,758,982

The financial statements were approved and authorised for issue by the board and were signed on its behalf on 6 May 2022.

K Snow

Director

The notes on pages 11 to 24 form part of these financial statements.

Page 10

CLASSIC LIFTS LTD

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021

1.	General information

Classic Lifts Ltd is a private company limited by shares, incorporated in England and Wales (registered number: 02487116). Its registered office is Unit 3, Genesis Park, Sheffield Road, Rotherham, South Yorkshire, S60 1DX. The principal activity throughout the year continued to be that of installation, servicing and maintenance of lifts.

2.Accounting policies

2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

2.2

Exemption from preparing consolidated financial statements

The Company, being a member of a group which prepares publicly available consolidated financial statements has taken advantage of the exemption granted in FRS 102 not to present a cash flow statement and certain information about financial instruments. The consolidated financial statements in which this company's accounts are included are those of Raveningham Holdings Limited and they may be obtained from Companies House.

2.3

Going concern

After reviewing the company's projections and taking into account the strong order book, the directors have concluded that despite the ongoing difficulties affecting the UK economy, the company will continue to have sufficient working capital to continue in operational existence for the foreseeable future. The company therefore continues to adopt the going concern basis in preparing its financial statements.

2.4

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Page 11

CLASSIC LIFTS LTD

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021

2.Accounting policies (continued)

2.5

Revenue

Revenue is recognised to the extent that it is probable that the 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:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:

∙the Company has transferred the significant risks and rewards of ownership to the buyer;

∙the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;

∙the amount of revenue can be measured reliably;

∙it is probable that the Company will receive the consideration due under the transaction; and

∙the costs incurred or to be incurred in respect of the transaction can be measured reliably.

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 the 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.

2.6

Operating leases: the Company as lessee

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

2.7

Government grants

Grants are accounted under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to profit or loss at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income.
Grants of a revenue nature are recognised in the Statement of Income and Retained Earnings in the same period as the related expenditure.

Page 12

CLASSIC LIFTS LTD

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021

2.Accounting policies (continued)

2.8

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds.

2.9

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in the Statement of income and retained earnings.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.
Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the Balance Sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

2.10

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, as follows.

Depreciation is provided on the following basis:

Plant and machinery	-	4 years straight line
Motor vehicles	-	4 years straight line
Office equipment	-	5 years straight line
Computer equipment	-	2 years straight line

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

Page 13

CLASSIC LIFTS LTD

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021

2.Accounting policies (continued)

2.11

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

2.12

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

2.13

Debtors

Short term debtors are measured at transaction price, less any impairment.

2.14

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

2.15

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

Page 14

CLASSIC LIFTS LTD

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021

2.Accounting policies (continued)

2.16

Financial instruments

The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.

Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or in case of an out-right short-term loan that is not at market rate, the financial asset or liability is measured, initially at the present value of future cash flows discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost, unless it qualifies as a loan from a director in the case of a small company, or a public benefit entity concessionary loan.

Financial assets and liabilities are offset and the net amount reported in the Balance Sheet when there is an enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Page 15

CLASSIC LIFTS LTD

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021

3.	Judgements in applying accounting policies and key sources of estimation uncertainty

No significant judgements have had to be made by management in preparing these financial statements.
The Company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have the greatest level of uncertainty are addressed below:
(i) Work in progress
When calculating the work in progress, management considers the percentage completed of each long term project, as well as applying assumptions around anticipated future costs. The carrying value of work in progress after making such estimates was £675,732 (2020: £112,311).
(ii) Accrued income
As described in 2.1 above, management make estimates regarding the recognition of income from long term projects. The amount of accrued income relating to such estimates is £384,879 (2020: £391,442).
(iii) Deferred income
As described in 2.1 above, management make estimates regarding the recognition of income from long term projects. The amount of deferred income relating to such estimate is £3,697,780 (2020:
£3,125,074).
(iv) Accrued expenses
The Company make estimates regarding the recognition of costs incurred during long term projects. The amount of accrued expenses relating to such estimates is £175,248 (2020: £85,483) and is included within creditors due within one year.

4.	Other operating income
		2021	2020
		£	£

Other operating income	-	25,000
Government grants receivable	117,287	493,161
	117,287	518,161

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CLASSIC LIFTS LTD

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021

Depreciation	95,388	78,546
Exchange differences	8,996	(2,928)
Other operating lease rentals	637,161	603,677
Defined contribution pension cost	367,731	203,132

6.	Auditors' remuneration
		2021	2020
		£	£

Fees payable to the Company's auditor for the audit of the Company's annual financial statements

10,635

10,325

Fees payable to the Company's auditor and its associates in respect of:
Taxation compliance services	1,545	1,500
All other services	695	675
	2,240	2,175

Page 17

CLASSIC LIFTS LTD

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021

Wages and salaries	7,052,373	6,155,592
Cost of defined contribution scheme	367,731	203,132
	7,420,104	6,358,724

The average monthly number of employees, including the directors, during the year was as follows:

	2021	2020
	No.	No.

Installation	59	56
Maintenance	94	91
Administration	19	18

	172	165

8.	Directors' remuneration
		2021	2020
		£	£

Directors' emoluments	65,388	61,841
Company contributions to defined contribution pension schemes	137,178	45,062
	202,566	106,903

	During the year retirement benefits were accruing to 3 directors (2020 - 2) in respect of defined contribution pension schemes.
	The highest paid director received remuneration of £NIL (2020 - £NIL).
	The value of the Company's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £100,000 (2020 - £NIL).

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CLASSIC LIFTS LTD

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021

Corporation tax
Current tax on profits for the year	470,092	368,689

Total current tax	470,092	368,689

Origination and reversal of timing differences	564	8,689
Movement in provisions	(1,981)	(249)
Total deferred tax	(1,417)	8,440


	Taxation on profit on ordinary activities	468,675	377,129

Profit on ordinary activities before tax

2,448,332

1,953,726

Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 19% (2020 - 19%)	465,183	371,208
Effects of:
Expenses not deductible for tax purposes, other than goodwill amortisation and impairment	3,551	6,126
Other differences leading to an increase (decrease) in the tax charge	-	(127)
Group relief	(59)	(78)
Total tax charge for the year	468,675	377,129

Page 19

CLASSIC LIFTS LTD

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021

10.	Tangible fixed assets

	Plant and machinery	Motor vehicles	Office equipment	Computer equipment	Total
	£	£	£	£	£
Cost
At 1 January 2021	85,831	28,860	300,026	204,817	619,534
Additions	32,833	-	29,818	24,001	86,652
At 31 December 2021	118,664	28,860	329,844	228,818	706,186
Depreciation
At 1 January 2021	50,932	20,666	165,862	179,344	416,804
Charge for the year on owned assets	20,508	4,246	44,247	26,387	95,388
At 31 December 2021	71,440	24,912	210,109	205,731	512,192
Net book value
At 31 December 2021	47,224	3,948	119,735	23,087	193,994
At 31 December 2020	34,899	8,194	134,164	25,473	202,730

11.	Fixed asset investments

		Investments in subsidiary companies
		£
	Cost
	At 1 January 2021	1
	At 31 December 2021	1

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CLASSIC LIFTS LTD

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021

12.	Stocks
		2021	2020
		£	£

Raw materials and consumables	44,772	39,720
Work in progress (goods to be sold)	675,732	112,311
	720,504	152,031

Stock recognised in cost of sales during the year as an expense was £8,438,210 (2020: £5,427,414).

13.

Debtors

					2021	2020
					£	£


Trade debtors	3,298,024	2,945,944
Amounts owed by group undertakings	-	5,948
Other debtors	224,767	200,866
	3,522,791	3,152,758

14.	Cash and cash equivalents
		2021	2020
		£	£

	Cash at bank and in hand	6,311,634	6,300,649

Page 21

CLASSIC LIFTS LTD

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021

15.	Creditors: Amounts falling due within one year
		2021	2020
		£	£

Bank loans	-	250,000
Trade creditors	1,044,488	1,097,501
Corporation tax	219,976	198,766
Other taxation and social security	898,409	1,703,689
Other creditors	4,556,543	3,771,945
	6,719,416	7,021,901

Included within creditors falling due within one year are secured liabilities in respect of credit cards of £2,278 (2020: £8,025).

16.	Financial instruments
		2021	2020
		£	£

	Financial assets
	Financial assets measured at fair value through profit and loss	3,522,791	3,152,758

	Financial liabilities
	Financial liabilities measured at amortised cost	(5,601,032)	(5,119,446)

	Financial assets that are debt instruments measured at amortised cost comprise trade debtors, other debtors and amounts due from group undertakings.
	Financial liabilities measured at amortised cost comprise bank loans, trade creditors and other creditors.

17.	Deferred taxation

		2021
		£

	At beginning of year	27,286
	Utilised in year	1,417
	At end of year	25,869

Page 22

CLASSIC LIFTS LTD

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021

17.Deferred taxation (continued)

The provision for deferred taxation is made up as follows:
	2021	2020
	£	£

Accelerated capital allowances	30,727	30,163
Movement in provisions	(4,858)	(2,877)
	25,869	27,286

18.	Share capital
		2021	2020
		£	£

Allotted, called up and fully paid

30,000 (2020 - 30,000) Ordinary shares of £1.00 each	30,000	30,000

19.

Reserves

Profit and loss account

Profit and loss account represents all current and prior period retained profits and losses and is all considered to be distributable.

20.	Pension commitments

The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost charge represents contributions payable by the company to the fund and amounted to £367,731 (2020: £203,132). Contributions totalling £46,640 (2020: £31,164) were payable to the end at the balance sheet date.

Page 23

CLASSIC LIFTS LTD

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021

Land and buildings
Not later than 1 year	80,294	80,459
Later than 1 year and not later than 5 years	200,207	235,647
Later than 5 years	137,500	175,000
	418,001	491,106

					2021	2020
					£	£

Other leases
Not later than 1 year	113,398	155,491
Later than 1 year and not later than 5 years	141,889	167,654
	255,287	323,145

22.

Related party transactions

There have been the following transactions with related parties during the year:
Included within trade creditors is a amount of £1,251 (2020: £3,830) due to a director of the company.
Included within amounts owed from group undertakings is an amount of £Nil (2020: £5,948) due from a company which is related by way of common control. No interest is charged on this balance.
During the year the company paid fees of £17,554 (2020: £8,339), to companies which are related by way of common control. Included within trade creditors at the year end is £12,386 (2020: £6,198) which remains outstanding.

23.	Controlling party

The immediate and ultimate parent undertaking is Raveningham Holdings Limited, a company registered in England and Wales. The ultimate controlling party is K Snow.

Page 24