ACCOUNTS - Final Accounts preparation

Operating profit

The operating profit is stated after charging:

LAYS INTERNATIONAL LIMITED - Company Information

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Registered number: 03077109

LAYS INTERNATIONAL LIMITED

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 OCTOBER 2022

LAYS INTERNATIONAL LIMITED

COMPANY INFORMATION

Directors	J Lay
	P D Lay


Company secretary	A Lay


Registered number	03077109


Registered office	Lays Yard
	Delta Way
	Thorpe
	Surrey
	TW20 8RX


Independent auditor	TWP Accounting LLP
	Chartered Accountants & Statutory Auditors
	The Old Rectory
	Church Street
	Weybridge
	Surrey
	KT13 8DE

LAYS INTERNATIONAL LIMITED

CONTENTS

	Page
Strategic Report	1 - 2
Directors' Report	3 - 4
Independent Auditor's Report	5 - 8
Statement of Comprehensive Income	9
Balance Sheet	10
Statement of Changes in Equity	11
Statement of Cash Flows	12
Notes to the Financial Statements	13 - 23

LAYS INTERNATIONAL LIMITED

STRATEGIC REPORT

FOR THE YEAR ENDED 31 OCTOBER 2022

Introduction

The directors present their strategic report for the year ended 31st October 2022.

Business review

The results of the year and the financial position of the company are as shown in these financial statements.
2022 was a year of progress for the company. With a great start to the year, but a slow down towards the end, we believe, due to a delay in the cessation of onset COVID testing for film productions.
During 2022, we worked and provided vehicles on the following productions (amongst others) House of the Dragon, Ant-Man & the Wasp, Fast & Furious 10, The Flash, Indiana Jones, You S4, Luther, Secret Invasion, Loki, Our Man from Jersey, The Nevers, Meg 2, The Great and Wonka.
The directors are satisfied with the performance of the company over the year.

Principal risks and uncertainties

Competitive pressure in the UK is a continuing risk for the company, which could result in it losing sales to its key competitors. The company manages this risk by maintaining strong relationships with customers.
Credit Risk
Verbal contracts are agreed and purchase orders are provided by customers ahead of all bookings made.

Liquidity risk
The company is financed with appropriate cash levels and have no loans to be paid. There is a risk of debtors paying over their credit terms and therefore affecting cash flow.

Currency Risk
The company can be exposed to currency risk due to its operations working abroad. However, any productions billed to another country, are always invoiced and settled in sterling GBP.

Financial key performance indicators

The key performance indicators used to determine the progress and performance of the company are set out below.
Sales
Sales increased by £400,658 amounting to a 4% increase on the prior year.
The increase is mainly attributable to higher demand in the year through increased film production following the relaxation of COVID related restrictions on film sets.
Gross Profit
Cost of sales are 11% higher than the prior year, which is directly linked to the increase in sales and increased cost in fuel prices in the summer of 2022, cost of materials for vehicle repairs due to Brexit and Ukraine War and further increases in salaries during the year. As a result, the gross profit margin has decreased from 34% in the prior year to 29% in the current year. This resulted in gross profit decreasing by £372,648 in the current year to a total of £3,087,350.

Page 1

LAYS INTERNATIONAL LIMITED

STRATEGIC REPORT (CONTINUED)

FOR THE YEAR ENDED 31 OCTOBER 2022

Other key performance indicators

During the year, we have updated our fleet to newer and more compliant vehicles whilst maintaining the same fleet size overall.
For the year 2023 we are in the process of purchasing a new yard for our vehicles and an additional crane truck.

This report was approved by the board on 31 January 2023 and signed on its behalf.

................................................

P D Lay

Directors

Page 2

LAYS INTERNATIONAL LIMITED

DIRECTORS' REPORT

FOR THE YEAR ENDED 31 OCTOBER 2022

The directors present their report and the financial statements for the year ended 31 October 2022.

Principal activity

The principal activity of the company is to provide haulage for the film and television industry across the United Kingdom.

Results and dividends

The profit for the year, after taxation, amounted to £2,034,480 (2021 - £2,512,027).

Dividends paid during the year amounted to £2,150,000 (2021 - £1,280,000)

Directors

The directors who served during the year were:

J Lay

P D Lay

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 judgments and accounting estimates that are reasonable and prudent;

∙state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

∙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.

Page 3

LAYS INTERNATIONAL LIMITED

DIRECTORS' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 OCTOBER 2022

Disclosure of information to auditor

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

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

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

Post balance sheet events

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

Auditor

The auditor, TWP Accounting LLP, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 31 January 2023 and signed on its behalf.

................................................

P D Lay

Directors

Page 4

LAYS INTERNATIONAL LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF LAYS INTERNATIONAL LIMITED

Opinion

We have audited the financial statements of Lays International Limited (the 'Company') for the year ended 31 October 2022, which comprise the Statement of Comprehensive Income, the Balance Sheet, the Statement of Cash Flows, the Statement of Changes in Equity 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 October 2022 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 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 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.

Other information

The other information comprises the information included in the Annual Report other than the financial statements and our Auditor's 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.

Page 5

LAYS INTERNATIONAL LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF LAYS INTERNATIONAL LIMITED (CONTINUED)

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

LAYS INTERNATIONAL LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF LAYS INTERNATIONAL LIMITED (CONTINUED)

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:

∙Obtain an understanding of the policies and procedures management has in place to detect and prevent fraud and non-compliance with laws and regulations.

∙Enquire of management any cases of actual or suspected fraud and non-compliance with laws and regulations.

∙Enquire of management and those charged with governance around actual and potential litigation and claims.

∙Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.

∙Assess the key risk areas within the financial statements which are susceptible to fraud or error and design our audit approach thereon.

∙Perform substantive tests on a sample of transactions throughout the financial statements to ensure that no material errors have been identified.

∙Perform cut off tests on a sample of transactions to ensure income has been accounted for in the correct period.

∙Review of after year end information to ensure expenditure have been accounted for in the correct period.

∙Perform analytical review procedures to identify any irregularities and investigation thereon.

∙Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of business.

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 Auditor's Report.

Other matters

The financial statements of the Company for the year ended 31 October 2021 were not audited. The comparatives presented as part of these financial statements of the Company have not been audited as a result.

Page 7

LAYS INTERNATIONAL LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF LAYS INTERNATIONAL LIMITED (CONTINUED)

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 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.

Paul Hawksley FCA, MAAT, CTA (Senior Statutory Auditor)

for and on behalf of

TWP Accounting LLP

Chartered Accountants & Statutory Auditors

The Old Rectory

Church Street

Weybridge

Surrey

KT13 8DE

31 January 2023

Page 8

LAYS INTERNATIONAL LIMITED

STATEMENT OF COMPREHENSIVE INCOME

FOR THE YEAR ENDED 31 OCTOBER 2022

	2022	2021
Note	£	£


Turnover	3	10,709,421	10,308,763
Cost of sales		(7,622,071)	(6,848,765)
Gross profit		3,087,350	3,459,998
Administrative expenses		(427,064)	(441,950)
Other operating income	4	-	84,725
Operating profit	5	2,660,286	3,102,773
Interest receivable and similar income	9	1,573	784
Profit before tax		2,661,859	3,103,557
Tax on profit	10	(627,379)	(591,530)
Profit for the financial year		2,034,480	2,512,027

There were no recognised gains and losses for 2022 or 2021 other than those included in the statement of comprehensive income.

There was no other comprehensive income for 2022 (2021:£NIL).

The notes on pages 13 to 23 form part of these financial statements.

Page 9

LAYS INTERNATIONAL LIMITED

REGISTERED NUMBER: 03077109

BALANCE SHEET

AS AT 31 OCTOBER 2022

		2022		2021
Note		£		£

Fixed assets
Tangible assets	12		2,507,551		2,662,652
			2,507,551		2,662,652
Current assets
Debtors: amounts falling due within one year	13	751,819		2,303,957
Cash at bank and in hand	14	2,771,598		2,041,518
		3,523,417		4,345,475
Creditors: amounts falling due within one year	15	(691,571)		(1,644,513)
Net current assets			2,831,846		2,700,962
Total assets less current liabilities			5,339,397		5,363,614
Provisions for liabilities
Deferred tax	16	(501,592)		(410,289)
			(501,592)		(410,289)
Net assets			4,837,805		4,953,325

Capital and reserves
Called up share capital	17	680	680
Capital redemption reserve	18	320	320
Profit and loss account	18	4,836,805	4,952,325
		4,837,805	4,953,325

The financial statements were approved and authorised for issue by the board and were signed on its behalf on 31 January 2023.

................................................

P D Lay

Directors

The notes on pages 13 to 23 form part of these financial statements.

Page 10

LAYS INTERNATIONAL LIMITED

STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31 OCTOBER 2022

	Called up share capital	Capital redemption reserve	Profit and loss account	Total equity
	£	£	£	£
At 1 November 2020	680	320	3,720,298	3,721,298
Comprehensive income for the year
Profit for the year	-	-	2,512,027	2,512,027
Dividends	-	-	(1,280,000)	(1,280,000)

At 1 November 2021	680	320	4,952,325	4,953,325
Comprehensive income for the year
Profit for the year	-	-	2,034,480	2,034,480
Dividends	-	-	(2,150,000)	(2,150,000)
At 31 October 2022	680	320	4,836,805	4,837,805

The notes on pages 13 to 23 form part of these financial statements.

Page 11

LAYS INTERNATIONAL LIMITED

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 OCTOBER 2022

			2022	2021
			£	£

Cash flows from operating activities
Profit for the financial year	2,034,480	2,512,027
Adjustments for:
Depreciation of tangible assets	458,316	499,505
Profit on disposal of tangible assets	(41,079)	(39,127)
Interest received	(1,573)	(784)
Taxation charge	627,379	591,530
Decrease/(increase) in debtors	1,552,138	(1,063,801)
(Decrease)/increase in creditors	(487,542)	416,921
Corporation tax (paid)	(1,001,476)	(118,990)
Net cash generated from operating activities	3,140,643	2,797,281

Cash flows from investing activities
Purchase of tangible fixed assets	(403,820)	(1,090,397)
Proceeds from sale of tangible fixed assets	141,684	288,418
Interest received	1,573	784
Net cash from investing activities	(260,563)	(801,195)
Cash flows from financing activities
Dividends paid	(2,150,000)	(1,280,000)
Net cash used in financing activities	(2,150,000)	(1,280,000)
Net increase in cash and cash equivalents	730,080	716,086
Cash and cash equivalents at beginning of year	2,041,518	1,325,432
Cash and cash equivalents at the end of year	2,771,598	2,041,518

Cash and cash equivalents at the end of year comprise:
Cash at bank and in hand	2,771,598	2,041,518
	2,771,598	2,041,518

The notes on pages 13 to 23 form part of these financial statements.

Page 12

LAYS INTERNATIONAL LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 OCTOBER 2022

1.	General information

Lays International Limited is a private company limited by shares incorporated in England and Wales. The registered office is Lays Yard, Delta Way, Thorpe Industrial Estate, Thorpe, Middlesex, TW20 8RX. The principal activity of the company is to provide haulage for the film and television industry across the United Kingdom.

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 financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

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

The following principal accounting policies have been applied:

2.2

Revenue

Turnover is recognised at the fair value of the consideration received or receivable for location and transport services provided in the normal course of business, and is shown net of VAT and other sales related taxes.
Turnover is recognised in the profit and loss account over the period to which it relates.

2.3

Operating leases: the Company as lessee

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

2.4

Government grants

Grants are accounted under the accruals model as permitted by FRS 102.
Grants of a revenue nature are recognised in the Statement of Comprehensive Income in the same period as the related expenditure.

2.5

Interest income

Interest income is recognised in profit or loss using the effective interest method.

Page 13

LAYS INTERNATIONAL LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 OCTOBER 2022

2.Accounting policies (continued)

2.6

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.

2.7

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

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.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Page 14

LAYS INTERNATIONAL LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 OCTOBER 2022

2.Accounting policies (continued)

2.8

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.

Land is not depreciated. Depreciation on other assets is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, on a reducing balance basis.

Depreciation is provided on the following basis:

Freehold land	-	land not depreciated
Plant and machinery	-	18% reducing balance
Motor vehicles	-	18% reducing balance

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.

2.9

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

2.10

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.

In the Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Company's cash management.

2.11

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.

2.12

Provisions for liabilities

Provisions are made where an event has taken place that gives the Company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to profit or loss in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the balance sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.
When payments are eventually made, they are charged to the provision carried in the Balance Sheet.

Page 15

LAYS INTERNATIONAL LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 OCTOBER 2022

2.Accounting policies (continued)

2.13

Financial instruments

Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

2.14

Dividends

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

Turnover

The whole of the turnover is attributable to the provision of haulage services.

All turnover arose within the United Kingdom.

4.	Other operating income
		2022	2021
		£	£

Government grants receivable	-	84,725
	-	84,725

Other operating lease rentals

173,917

154,500

Page 16

LAYS INTERNATIONAL LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 OCTOBER 2022


Auditor's remuneration	10,500	-
All other services	3,000	2,870
	13,500	2,870

Wages and salaries	4,850,777	4,071,635
Social security costs	576,858	426,979
Staff pension costs	111,905	105,712
	5,539,540	4,604,326

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

	2022	2021
	No.	No.

Drivers and yard staff	65	70
Management and administration	10	10

	75	80

8.	Directors' remuneration
		2022	2021
		£	£

Directors' emoluments	22,664	22,772
	22,664	22,772

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LAYS INTERNATIONAL LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 OCTOBER 2022

9.	Interest receivable
		2022	2021
		£	£

	Other interest receivable	1,573	784
		1,573	784

Corporation tax
Current tax on profits for the year	536,076	525,283

Total current tax	536,076	525,283

Deferred tax
Origination and reversal of timing differences	91,303	66,247
Total deferred tax	91,303	66,247


	Taxation on profit on ordinary activities	627,379	591,530

Profit on ordinary activities before tax

2,661,859

3,103,557

Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 19% (2021 - 19%)	505,753	589,676
Effects of:
Expenses not deductible for tax purposes, other than goodwill amortisation and impairment	(6,979)	(6,923)
Capital allowances for year in excess of depreciation	37,302	(57,470)
Other differences leading to an increase (decrease) in the tax charge	91,303	66,247
Total tax charge for the year	627,379	591,530

Factors that may affect future tax charges

Page 18

LAYS INTERNATIONAL LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 OCTOBER 2022

10.Taxation (continued)

Increases in the UK Corporation tax rate from 19% to 25% (19% effective from 1 April 2017, and 25% effective from 1 April 2023) have been substantively enacted. This will impact the company’s future tax charge accordingly. The value of the deferred tax liability at the statement of financial position date has been calculated using the applicable rate when the liability is expected to be realised.

11.	Dividends
		2022	2021
		£	£

	Dividends to owners	2,150,000	1,280,000
		2,150,000	1,280,000

12.	Tangible fixed assets

	Freehold land	Plant and machinery	Motor vehicles	Total
	£	£	£	£
Cost or valuation
At 1 November 2021	495,420	81,735	3,301,409	3,878,564
Additions	-	3,620	400,200	403,820
Disposals	-	-	(292,145)	(292,145)
At 31 October 2022	495,420	85,355	3,409,464	3,990,239
Depreciation
At 1 November 2021	-	55,142	1,160,770	1,215,912
Charge for the year on owned assets	-	5,438	452,878	458,316
Disposals	-	-	(191,540)	(191,540)
At 31 October 2022	-	60,580	1,422,108	1,482,688
Net book value
At 31 October 2022	495,420	24,775	1,987,356	2,507,551
At 31 October 2021	495,420	26,593	2,140,639	2,662,652

Page 19

LAYS INTERNATIONAL LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 OCTOBER 2022

12.Tangible fixed assets (continued)

The net book value of land and buildings may be further analysed as follows:
	2022	2021
	£	£

Freehold	495,420	495,420
	495,420	495,420

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LAYS INTERNATIONAL LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 OCTOBER 2022

13.

Debtors

					2022	2021
					£	£


Trade debtors	490,032	2,042,060
Other debtors	303	5,383
Prepayments and accrued income	261,484	256,514
	751,819	2,303,957

14.	Cash and cash equivalents
		2022	2021
		£	£

Cash at bank and in hand	2,771,598	2,041,518
	2,771,598	2,041,518

15.	Creditors: Amounts falling due within one year
		2022	2021
		£	£

Trade creditors	69,628	142,574
Corporation tax	59,851	525,251
Other taxation and social security	486,736	877,013
Other creditors	57,656	93,265
Accruals and deferred income	17,700	6,410
	691,571	1,644,513

Page 21

LAYS INTERNATIONAL LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 OCTOBER 2022

16.	Deferred taxation

		2022
		£

	At beginning of year	(410,289)
	Charged to profit or loss	(91,303)
	At end of year	(501,592)

					2022	2021
					£	£

	Accelerated capital allowances	(501,592)	(410,289)
		(501,592)	(410,289)

17.	Share capital
		2022	2021
		£	£

Allotted, called up and fully paid

320 (2021 - 320) Ordinary shares of £1.00 each	320	320
360 (2021 - 360) B Ordinary shares of £1.00 each	360	360

	680	680

18.

Reserves

Capital redemption reserve

The capital redemption reserve represents the accumulative ordinary share capital repurchased and subsequently cancelled by the company.

Profit and loss account

The profit and loss account represents cumulative profits and losses net of adjustments.

19.	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 £75,428 (2021 - £69,236). At the balance sheet date, pension contributions of £13,491 (2021 - £18,523) were payable to the fund.

Page 22

LAYS INTERNATIONAL LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 OCTOBER 2022

Not later than 1 year	162,667	160,583
Later than 1 year and not later than 5 years	96,000	192,000
	258,667	352,583

21.

Related party transactions

During the year the company paid rent of £96,000 (2021 - £77,000) in relation to a property owned by a pension fund operated for the benefit of the directors.
During the year, the close family members of Paul Lay, a director of the company, were paid remuneration of £638,800 (2021 – £521,578). At the balance sheet date, the close family members were owed £4,678 (2021 – £3,924).
During the year, the company paid personal pension contributions of £36,477 (2021 – £36,476) for a close family member of Paul Lay.

Page 23