Company Registration No. 08225487 (England and Wales)
LENSTEC OPTICAL GROUP LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
LENSTEC OPTICAL GROUP LIMITED
COMPANY INFORMATION
Directors
Mr N Castle
Mr G Donovan
Secretary
Mr G Donovan
Company number
08225487
Registered office
Unit 8
Bedwas Business Centre
Bedwas
CAERPHILLY
Mid Glamorgan
UK
CF83 8DU
Auditor
Baldwins Audit Services
Ty Derw
Lime Tree Court
Cardiff Gate Business Park
Cardiff
CF23 8AB
LENSTEC OPTICAL GROUP LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Statement of total comprehensive income
8
Group balance sheet
9
Company balance sheet
10
Group statement of changes in equity
11
Company statement of changes in equity
12
Consolidated statement of cash flows
13
Notes to the financial statements
14 - 30
LENSTEC OPTICAL GROUP LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2019
- 1 -
The directors present the
ir
strategic report for the year ended 31 December 2019.
Fair review of the business
The business consolidated its position during 2019, improving its efficiencies and costs thereby improving margins and profitability.
The business continues to seek opportunities to both expand and diversify within the optical sector by offering wider choice of products and services and by strategic acquisitions.
We pride ourselves on “Made in the UK” with planned major investments into our UK factories supporting UK employment.
2019 was a year of major investment in the very latest automated edging machinery and equipment within our laboratories.
The directors were pleased with the performance of the business during the year. Turnover increased to £29,216,908 from £28,268,565 in 2019, with operating increasing to £956,129 from £860,893, primarily resulting from a combination of business growth and cost management.
Whilst trading conditions are expected to remain competitive throughout the financial year ending 2020, the board consider the group to be well-positioned to manage and take on this challenge.
|
Principal risks and uncertainties
The management of the business and the execution of the group's strategy are subject to a number of risks. The key business risks can be summarised as follows:
|
|
|
|
The market in which the group operates is subject to intense competition. The impact of such competition could impact on margins.
|
The group continues to invest heavily in its range of stock, providing customers with a wide choice. This, coupled with a strong focus on customer service, results in a high level of repeat business.
|
|
The business could be impacted by the loss of key individuals although through structured cross training this risk is mitigated.
|
The business looks to increase staff engagement through (1) regular opportunities to give feedback and to influence future business developments and (2) training and progression opportunities.
|
Economic uncertainty
At the date of signing the strategic report there is economic disruption as political administrations worldwide respond to the pandemic of the virus Covid-19. Our assessment is there will be a period of adjustment whilst society and business determine new strategies to live and work in a changed set of circumstances. Consequently, there is an extraordinary level of uncertainty in business at the moment which is having a wide-reaching economic impact.
The directors firmly believe the business is capable of adaptation and seeing its way through this period of uncertainty. In an assessment of the business’ ability to adapt the directors have considered the strength of the balance sheet. At the year ended 31 December 2019 the net current asset position was £3.6m and the net asset position was £4.9m.
LENSTEC OPTICAL GROUP LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
- 2 -
Due to the good relationship that exists with one of our major customers, the business has the capability to shorten the usual credit terms offered to them and to convert 50% of the value of our trade debtors at the year end to cash at very short notice.
During the year the business has invested in new equipment that is achieving significant savings to the cost base of the business whilst increasing output capability. Most debtors of the business are well established and significantly sized business that we consider unlikely to default on their debts.
There is a well-established management team in place that has successfully grown a profitable business. They understand the business and are well placed to adapt to changes in the marketplace.
The bank providers of the business have expressed a willingness to provide further support should it be required.
The directors are satisfied the business has title to good quality assets that can be offered as security if the need were to arise. As a last resort, the UK government in coordination with others around the world has taken active measures to ensure that businesses can adapt to the changes and new challenges that have been presented to the UK and global economy. The business could utilise these if necessary. In summary, the directors hold this is a strong and successful business and will continue to be so in the future.
Credit risk
The group's financial assets are cash and trade debtors. The company's credit risk is primarily attributable to its trade debtors which are presented in the balance sheet net of allowances for doubtful debts. The group has implemented policies that require appropriate credit checks on potential customers before sales are made.
Liquidity risk
The group actively maintains a mixture of long term and short term debt finance that is designed to ensure that the group has sufficient funds for operations and planned expansions.
Mr G Donovan
Secretary & Director
LENSTEC OPTICAL GROUP LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2019
- 3 -
The directors present their annual report and financial statements for the year ended 31 December 2019.
Principal activities
The principal activity of the company and group continued to be that of spectacle lens manufacture.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr N Castle
Mr G Donovan
Mr P Walden
(Resigned 7 June 2019)
Results and dividends
The results for the year are set out on page 7.
Ordinary dividends were paid amounting to £625,000 (2018: £100,000).
Auditor
Baldwins Audit Services were appointed auditor to the group and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor
of the
company is
unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor
of the
company
is
aware of that information.
By order of the board
Mr G Donovan
Secretary
24 March 2020
LENSTEC OPTICAL GROUP LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2019
- 4 -
The directors are responsible for preparing the Annual 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 United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). 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 group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:
-
select suitable accounting policies and then apply them consistently;
-
make judgements 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 group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
LENSTEC OPTICAL GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF LENSTEC OPTICAL GROUP LIMITED
- 5 -
Opinion
We have audited the
financial statements of Lenstec Optical Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2019 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows 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 FRS 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 group's and the parent company's affairs as at 31 December 2019 and of the group's 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.
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.
We draw attention to note 1.3 of the financial statements, which describes the company's ability to continue as a going concern. Our opinion is not modified in this respect.
Conclusions relating to going concern
We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:
-
the directors' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or
-
the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the
group's or the parent
company’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue
.
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.
In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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.
LENSTEC OPTICAL GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF LENSTEC OPTICAL GROUP LIMITED
- 6 -
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit
:
-
the information given in the strategic report and the directors' r
eport 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
group and the parent
company and its environment obtained in the course of the audit, we have not identifie
d
material misstatements in the strategic report and the directors'
r
eport
.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
-
adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
-
the parent company 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'
r
esponsibilities
s
tatement, 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
group's and the parent
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
group or the parent
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.
A further description of our responsibilities for the audit of the financial statements is located on the
Financial Reporting Council’s website at: http://www.frc.org.uk/auditorsresponsibilities
.
This description forms part of our auditor’s report.
LENSTEC OPTICAL GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF LENSTEC OPTICAL GROUP LIMITED
- 7 -
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.
Ian Thomas BSc FCA DChA (Senior Statutory Auditor)
for and on behalf of Baldwins Audit Services
24 March 2020
Accountants
Statutory Auditors
Baldwins Audit Services
Lime Tree Court
Cardiff Gate Business Park
CARDIFF
UK
CF23 8AB
LENSTEC OPTICAL GROUP LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2019
- 8 -
2019
2018
Notes
£
£
Turnover
3
29,216,908
28,268,565
Cost of sales
(24,045,592)
(23,327,676)
Gross profit
5,171,316
4,940,889
Distribution costs
(126,585)
(94,624)
Administrative expenses
(4,108,674)
(3,998,751)
Other operating income
20,073
13,380
Operating profit
4
956,130
860,894
Interest payable and similar expenses
8
(44,663)
(40,871)
Profit before taxation
911,467
820,023
Tax on profit
9
(180,024)
(178,387)
Profit for the financial year
731,443
641,636
Other comprehensive income
Transfer from revaluation reserve to profit and loss account
8,381
17,062
Total comprehensive income for the year
739,824
658,698
Profit for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.
The profit and loss account has been prepared on the basis that all operations are continuing operations.
LENSTEC OPTICAL GROUP LIMITED
GROUP BALANCE SHEET
AS AT
31 DECEMBER 2019
31 December 2019
- 9 -
2019
2018
Notes
£
£
£
£
Fixed assets
Goodwill
11
111,375
116,090
Tangible assets
12
1,675,099
1,372,473
1,786,474
1,488,563
Current assets
Stocks
16
2,128,324
1,983,512
Debtors
17
6,213,249
6,169,570
Cash at bank and in hand
732,222
690,943
9,073,795
8,844,025
Creditors: amounts falling due within one year
18
(5,455,960)
(5,213,838)
Net current assets
3,617,835
3,630,187
Total assets less current liabilities
5,404,309
5,118,750
Creditors: amounts falling due after more than one year
19
(304,954)
(203,676)
Provisions for liabilities
21
(160,289)
(82,450)
Net assets
4,939,066
4,832,624
Capital and reserves
Called up share capital
23
25
25
Revaluation reserve
298,721
307,102
Capital redemption reserve
3
3
Other reserves
1,861,160
1,861,160
Profit and loss reserves
2,779,157
2,664,334
Total equity
4,939,066
4,832,624
The financial statements were approved by the board of directors and authorised for issue on 24 March 2020 and are signed on its behalf by:
Mr N Castle
Director
LENSTEC OPTICAL GROUP LIMITED
COMPANY BALANCE SHEET
AS AT
31 DECEMBER 2019
31 December 2019
- 10 -
2019
2018
Notes
£
£
£
£
Fixed assets
Goodwill
11
111,374
116,089
Tangible assets
12
1,675,099
1,372,473
Investments
13
2,751,404
2,751,404
4,537,877
4,239,966
Current assets
Stocks
16
2,128,324
1,983,512
Debtors
17
6,213,249
6,169,570
Cash at bank and in hand
732,222
690,943
9,073,795
8,844,025
Creditors: amounts falling due within one year
18
(9,336,658)
(9,094,536)
Net current liabilities
(262,863)
(250,511)
Total assets less current liabilities
4,275,014
3,989,455
Creditors: amounts falling due after more than one year
19
(304,954)
(203,676)
Provisions for liabilities
21
(160,289)
(82,450)
Net assets
3,809,771
3,703,329
Capital and reserves
Called up share capital
23
25
25
Revaluation reserve
298,721
307,102
Capital redemption reserve
3
3
Other reserves
1,861,160
1,861,160
Profit and loss reserves
1,649,862
1,535,039
Total equity
3,809,771
3,703,329
As permitted by s408 Companies Act 2006, the
c
ompany has not presented its own profit and loss account and related notes. The
c
ompany’s profit
for the year was
£731,443 (2018 - £641,636).
The financial statements were approved by the board of directors and authorised for issue on 24 March 2020 and are signed on its behalf by:
Mr N Castle
Director
Company Registration No. 08225487
LENSTEC OPTICAL GROUP LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2019
- 11 -
Share capital
Revaluation reserve
Capital redemption reserve
Other reserves
Profit and loss reserves
Total
Notes
£
£
£
£
£
£
Balance at 1 January 2018
25
324,164
3
1,861,160
2,105,636
4,290,988
Year ended 31 December 2018:
Profit for the year
-
-
-
-
641,636
641,636
Other comprehensive income:
Transfer from revaluation reserve to profit and loss account
-
(17,062)
-
-
-
(17,062)
Total comprehensive income for the year
-
(17,062)
-
-
641,636
624,574
Dividends
10
-
-
-
-
(100,000)
(100,000)
Transfers
-
-
-
-
17,062
17,062
Balance at 31 December 2018
25
307,102
3
1,861,160
2,664,334
4,832,624
Year ended 31 December 2019:
Profit for the year
-
-
-
-
731,443
731,443
Other comprehensive income:
Transfer from revaluation reserve to profit and loss account
-
(8,381)
-
-
-
(8,381)
Total comprehensive income for the year
-
(8,381)
-
-
731,443
723,062
Dividends
10
-
-
-
-
(625,000)
(625,000)
Transfers
-
-
-
-
8,381
8,381
Balance at 31 December 2019
25
298,721
3
1,861,160
2,779,157
4,939,066
LENSTEC OPTICAL GROUP LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2019
- 12 -
Share capital
Revaluation reserve
Capital redemption reserve
Other reserves
Profit and loss reserves
Total
Notes
£
£
£
£
£
£
Balance at 1 January 2018
25
324,164
3
1,861,160
976,341
3,161,693
Year ended 31 December 2018:
Profit for the year
-
-
-
-
641,635
641,636
Other comprehensive income:
Transfer from revaluation reserve to profit and loss account
-
(17,062)
-
-
-
(17,062)
Total comprehensive income for the year
-
(17,062)
-
-
641,635
624,574
Dividends
10
-
-
-
-
(100,000)
(100,000)
Transfers
-
-
-
-
17,062
17,062
Balance at 31 December 2018
25
307,102
3
1,861,160
1,535,038
3,703,329
Year ended 31 December 2019:
Profit for the year
-
-
-
-
731,443
731,443
Other comprehensive income:
Transfer from revaluation reserve to profit and loss account
-
(8,381)
-
-
-
(8,381)
Total comprehensive income for the year
-
(8,381)
-
-
731,443
723,062
Dividends
10
-
-
-
-
(625,000)
(625,000)
Transfers
-
-
-
-
8,381
8,381
Balance at 31 December 2019
25
298,721
3
1,861,160
1,649,862
3,809,771
LENSTEC OPTICAL GROUP LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2019
- 13 -
2019
2018
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
27
1,490,375
764,262
Interest paid
(44,663)
(40,871)
Income taxes paid
(214,170)
(217,749)
Net cash inflow from operating activities
1,231,542
505,642
Investing activities
Purchase of intangible assets
(25,211)
(125,000)
Purchase of tangible fixed assets
(701,384)
(158,436)
Proceeds on disposal of tangible fixed assets
73,763
-
Net cash used in investing activities
(652,832)
(283,436)
Financing activities
Payment of finance leases obligations
87,569
108,234
Dividends paid to equity shareholders
(625,000)
(100,000)
Net cash (used in)/generated from financing activities
(537,431)
8,234
Net increase in cash and cash equivalents
41,279
230,440
Cash and cash equivalents at beginning of year
690,943
460,503
Cash and cash equivalents at end of year
732,222
690,943
LENSTEC OPTICAL GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
- 14 -
1
Accounting policies
Company information
Lenstec Optical Group Limited
(“the company”)
is a
private
limited company domiciled and incorporated in England and Wales.
The registered office is
Unit 8, Bedwas Business Centre, Bedwas, CAERPHILLY, Mid Glamorgan, UK, CF83 8DU.
The group consists of Lenstec Optical Group Limited and all of its subsidiaries.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in
sterling
, which is the functional currency of the company.
Monetary a
mounts
in these financial statements are
rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
As permitted by s408 Companies Act 2006, the
c
ompany has not presented its own profit and loss account and related notes. The
c
ompany’s profit
for the year was
£731,443 (2018 - £641,636).
1.2
Basis of consolidation
In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date.
Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date.
I
nvestments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.
Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.
Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates. In the group financial statements, associates are accounted for
using the equity method.
Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a
contractual arrangement are treated as joint ventures.
In the group financial statements, joint ventures are accounted for using the equity method.
LENSTEC OPTICAL GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
1
Accounting policies
(Continued)
- 15 -
1.3
Going concern
At the time of approving the financial statements, the directors have a reasonable expectation that the
group
has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
However, because not all future events or conditions can be predicted, this statement is not a guarantee as to the group’s ability to continue as a going concern. For example, the extent of the impact of Coronavirus is unclear and it is difficult to evaluate all the potential implications on the group’s trade, customers, suppliers and the wider economy, however the directors have considered the following.
The balance sheet is strong, with positive net current and net asset position of the business.
Key customers have expressed the intention to be supportive of the business so it can shorten credit terms if required to create increased cash reserves.
The bank providers have expressed a willingness to provide financial support should it be required, and the directors are satisfied the business has title to good quality assets that can be offered as security if required.
The group will look to take advantage of the Government support that has been offered in order to sustain the business, under the current circumstances. The business will scale back its operations but will continue to operate, at a reduced level, ensuring that key workers prescriptions are fulfilled.
Thus the directors are satisfied to continue to adopt the going concern basis of accounting in preparing the financial statements.
1.4
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
1.5
Intangible fixed assets - goodwill
Goodwill represents the excess of the cost of acquisition of
a
business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated
amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 5 years.
For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.
LENSTEC OPTICAL GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
1
Accounting policies
(Continued)
- 16 -
1.6
Tangible fixed assets
Tangible fixed assets
are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Land and buildings Freehold
2.5%-10% on cost, 0% on land
Land and buildings Leasehold
10% on cost
Plant and machinery
25% on cost
Fixtures, fittings & equipment
25%/33%/50% on cost
Motor vehicles
25% on cost or on cost less residual value
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.
1.7
Impairment of fixed assets
At each reporting
period
end date, the
group
reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the
company
estimates the recoverable amount of the cash-generating unit to which the asset belongs.
The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
1.8
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
Stocks held for distribution at no or nominal consideration are measured at
the
lower of replacement cost and cost, adjusted where applicable for any loss of service potential.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
LENSTEC OPTICAL GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
1
Accounting policies
(Continued)
- 17 -
1.9
Cash and cash equivalents
Cash and cash equivalents
are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.10
Financial instruments
The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally 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.
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
m
ethod 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.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Impairment of financial assets
Financial assets, other than those
held
at
fair value through profit and loss
, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected.
If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
LENSTEC OPTICAL GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
1
Accounting policies
(Continued)
- 18 -
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its 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
paymen
ts discounted at a market rate of interest.
Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts,
are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as
being measured at
fair value though profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the
group's contractual obligations expire or are discharged or cancelled.
1.11
Equity instruments
Equity instruments issued by the group 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 group.
1.12
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The
group’s
liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
LENSTEC OPTICAL GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
1
Accounting policies
(Continued)
- 19 -
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset
if, and only if, there is
a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.13
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.14
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.15
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair
value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss
so as to produce a constant periodic rate of interest on the remaining balance of the liability.
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 lease
d
asset are consumed.
1.16
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation are included in the profit and loss account for the period.
LENSTEC OPTICAL GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
- 20 -
2
Judgements and key sources of estimation uncertainty
In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Critical judgements
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
Stock
Stock is valued at the lower of cost and net realisable value. Net realisable value includes, where necessary, provisions for slow moving and obsolete stocks. Calculation of these provisions requires judgements to be made, which include forecast consumer demand, the economic environment and stock loss trends.
3
Turnover and other revenue
The total turnover of the group for the year has been derived from its principal activity wholly undertaken in the United Kingdom.
2019
2018
£
£
Turnover analysed by class of business
Sale of goods
29,216,908
28,268,565
2019
2018
£
£
Turnover analysed by geographical market
United Kingdom
29,216,908
28,268,565
4
Operating profit
2019
2018
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange gains
(196)
(1,349)
Depreciation of owned tangible fixed assets
260,266
270,627
Depreciation of tangible fixed assets held under finance leases
138,201
191,573
Profit on disposal of tangible fixed assets
(73,472)
-
Amortisation of intangible assets
29,926
74,795
Cost of stocks recognised as an expense
20,547,096
19,952,166
Operating lease charges
3,066
2,611
LENSTEC OPTICAL GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
- 21 -
5
Auditor's remuneration
2019
2018
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
13,500
13,500
6
Employees
The average monthly number of persons (including directors) employed by the group and company during the year was:
Group
Company
2019
2018
2019
2018
Number
Number
Number
Number
Production
103
109
103
109
Administration
90
83
90
83
Directors
2
3
2
3
195
195
195
195
Their aggregate remuneration comprised:
Group
Company
2019
2018
2019
2018
£
£
£
£
Wages and salaries
4,419,144
4,296,131
4,419,144
4,296,131
Social security costs
385,171
343,569
385,171
343,569
Pension costs
174,387
133,057
174,387
133,057
4,978,702
4,772,757
4,978,702
4,772,757
7
Directors' remuneration
2019
2018
£
£
Remuneration for qualifying services
285,518
284,344
Company pension contributions to defined contribution schemes
42,048
39,290
327,566
323,634
LENSTEC OPTICAL GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
7
Directors' remuneration
(Continued)
- 22 -
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2019
2018
£
£
Remuneration for qualifying services
90,000
86,008
Company pension contributions to defined contribution schemes
25,588
-
8
Interest payable and similar expenses
2019
2018
£
£
Interest on financial liabilities measured at amortised cost:
Interest on invoice finance arrangements
31,280
22,134
Other finance costs:
Interest on finance leases and hire purchase contracts
13,383
18,737
Total finance costs
44,663
40,871
9
Taxation
2019
2018
£
£
Current tax
UK corporation tax on profits for the current period
107,162
219,147
Adjustments in respect of prior periods
(4,977)
(1,757)
Total current tax
102,185
217,390
Deferred tax
Origination and reversal of timing differences
77,839
(39,003)
Total tax charge
180,024
178,387
LENSTEC OPTICAL GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
9
Taxation
(Continued)
- 23 -
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2019
2018
£
£
Profit before taxation
911,467
820,022
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2018: 19.00%)
173,179
155,804
Tax effect of expenses that are not deductible in determining taxable profit
850
4,646
Capital allowances in excess of depreciation
77,839
(39,003)
Depreciation on assets not qualifying for tax allowances
(72,553)
44,486
Amortisation on assets not qualifying for tax allowances
5,686
14,211
Under/(over) provided in the year
(4,977)
(1,757)
Tax expense for the year
180,024
178,387
10
Dividends
2019
2018
£
£
Final paid
625,000
100,000
LENSTEC OPTICAL GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
- 24 -
11
Intangible fixed assets
Group
Goodwill
£
Cost
At 1 January 2019
991,621
Additions - separately acquired
25,211
At 31 December 2019
1,016,832
Amortisation and impairment
At 1 January 2019
875,531
Amortisation charged for the year
29,926
At 31 December 2019
905,457
Carrying amount
At 31 December 2019
111,375
At 31 December 2018
116,090
Company
Goodwill
£
Cost
At 1 January 2019
480,531
Additions - separately acquired
25,211
At 31 December 2019
505,742
Amortisation and impairment
At 1 January 2019
364,442
Amortisation charged for the year
29,926
At 31 December 2019
394,368
Carrying amount
At 31 December 2019
111,374
At 31 December 2018
116,089
LENSTEC OPTICAL GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
- 25 -
12
Tangible fixed assets
Group and Company
Land and buildings Freehold
Land and buildings Leasehold
Plant and machinery
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
£
£
£
Cost or valuation
At 1 January 2019
1,010,229
84,558
2,989,502
949,364
75,705
5,109,358
Additions
-
-
614,614
86,230
540
701,384
Disposals
-
-
(10,000)
(1,984)
-
(11,984)
At 31 December 2019
1,010,229
84,558
3,594,116
1,033,610
76,245
5,798,758
Depreciation and impairment
At 1 January 2019
323,347
51,873
2,539,801
770,848
51,016
3,736,885
Depreciation charged in the year
26,416
10,729
253,428
95,268
12,626
398,467
Eliminated in respect of disposals
-
-
(10,000)
(1,693)
-
(11,693)
At 31 December 2019
349,763
62,602
2,783,229
864,423
63,642
4,123,659
Carrying amount
At 31 December 2019
660,466
21,956
810,887
169,187
12,603
1,675,099
At 31 December 2018
686,882
32,685
449,702
178,515
24,689
1,372,473
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts. The depreciation charge for the period in respect of these assets amounted to £138,201 (2018 - £191,573).
Group and Company
2019
2018
£
£
Plant and machinery
455,068
358,277
The company applied the transitional arrangements of Section 35 of FRS 102 and used a previous valuation as the deemed cost for certain freehold properties. The properties are being depreciated from the valuation date. As the assets are depreciated or sold an appropriate transfer is made from the revaluation reserve to retained earnings.
Analysis of the land and buildings were valued at the date of transition to FRS 102 using the deemed cost exemption:
LENSTEC OPTICAL GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
12
Tangible fixed assets
(Continued)
- 26 -
Group and Company
2019
2018
£
£
Cost
902,156
902,156
Accumulated depreciation
(462,305)
(444,271)
Carrying value
439,851
457,885
Freehold properties were last revalued at an open market basis in January 2014 by Bensons Chartered Surveyors and in February 2014 by Coke Gearing Consulting Chartered Surveyors.
13
Fixed asset investments
Group
Company
2019
2018
2019
2018
Notes
£
£
£
£
Investments in subsidiaries
14
-
-
2,751,404
2,751,404
14
Subsidiaries
Details of the company's subsidiaries at 31 December 2019 are as follows:
Name of undertaking
Address
Class of
% Held
shares held
Direct
Indirect
Lenstec Limited
United Kingdom
Ordinary
100.00
0
Pennine Optical Limited
United Kingdom
Ordinary
100.00
0
Rawdon Optical Limited
United Kingdom
Ordinary
0
100.00
Tant Laboratories Limited
United Kingdom
Ordinary
0
100.00
15
Financial instruments
Group
Company
2019
2018
2019
2018
£
£
£
£
Carrying amount of financial assets
Debt instruments measured at amortised cost
6,061,602
6,076,555
6,061,602
6,076,555
Carrying amount of financial liabilities
Measured at amortised cost
5,280,338
4,976,301
9,161,036
8,856,999
LENSTEC OPTICAL GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
- 27 -
16
Stocks
Group and Company
2019
2018
£
£
Work in progress
394,726
380,436
Finished goods and goods for resale
1,733,598
1,603,076
2,128,324
1,983,512
17
Debtors
Group and Company
2019
2018
Amounts falling due within one year:
£
£
Trade debtors
5,856,332
5,882,976
Other debtors
205,270
193,579
Prepayments and accrued income
151,647
93,015
6,213,249
6,169,570
18
Creditors: amounts falling due within one year
Group
Company
2019
2018
2019
2018
Notes
£
£
£
£
Obligations under finance leases
20
165,540
179,249
165,540
179,249
Trade creditors
3,061,487
3,029,374
3,061,487
3,029,374
Amounts owed to group undertakings
-
-
3,880,698
3,880,698
Corporation tax payable
107,162
219,147
107,162
219,147
Other taxation and social security
373,414
222,066
373,414
222,066
Other creditors
1,448,872
318,575
1,448,872
318,575
Accruals and deferred income
299,485
1,245,427
299,485
1,245,427
5,455,960
5,213,838
9,336,658
9,094,536
Included in other creditors is an invoice discounting facility for which the group has provided security by means of a fixed and floating charge over the assets of the business.
19
Creditors: amounts falling due after more than one year
Group
Company
2019
2018
2019
2018
Notes
£
£
£
£
Obligations under finance leases
20
304,954
203,676
304,954
203,676
LENSTEC OPTICAL GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
- 28 -
20
Finance lease obligations
Group and Company
2019
2018
£
£
Future minimum lease payments due under finance leases:
Within one year
165,540
179,249
In two to five years
304,954
203,676
470,494
382,925
Finance lease payments represent rentals payable by the company or group for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 3 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
21
Deferred taxation
The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:
Liabilities
Liabilities
2019
2018
Group
£
£
ACAs
161,385
82,450
Retirement benefit obligations
(1,096)
-
160,289
82,450
Liabilities
Liabilities
2019
2018
Company
£
£
ACAs
161,385
82,450
Retirement benefit obligations
(1,096)
-
160,289
82,450
Group
Company
2019
2019
Movements in the year:
£
£
Liability at 1 January 2019
82,450
82,450
Charge to profit or loss
77,839
77,839
Liability at 31 December 2019
160,289
160,289
LENSTEC OPTICAL GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
21
Deferred taxation
(Continued)
- 29 -
T
he deferred tax liability
set out above
is expected to reverse within
48
months
and relates to accelerated capital allowances that are expected to mature within the same period.
22
Retirement benefit schemes
2019
2018
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
174,387
133,057
A
defined contribution pension scheme
is operated
for all qualifying employees.
The assets of the scheme are held separately from those of the group in an independently administered fund.
23
Share capital
Group and Company
2019
2018
Ordinary share capital
£
£
Issued and fully paid
2,500 Ordinary of 1p each
25
25
24
Operating lease commitments
At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
Group and Company
2019
2018
£
£
Within one year
146,154
132,394
Between two and five years
236,868
135,891
In over five years
210,000
-
593,022
268,285
25
Related party transactions
Remuneration of key management personnel
The remuneration of key management personnel is as follows.
2019
2018
£
£
Aggregate compensation
654,675
645,208
LENSTEC OPTICAL GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
- 30 -
26
Controlling party
The ultimate controlling party is considered to be Mr N Castle due to his shareholding in
the
company.
27
Cash generated from operations - Group and Company
2019
2018
£
£
Profit for the year after tax
731,443
641,636
Adjustments for:
Taxation charged
180,024
178,387
Finance costs
44,663
40,871
Gain on disposal of tangible fixed assets
(73,472)
-
Amortisation and impairment of intangible assets
29,926
74,795
Depreciation and impairment of tangible fixed assets
398,467
462,200
Movements in working capital:
(Increase) in stocks
(144,813)
(421,377)
(Increase)/decrease in debtors
(43,679)
894,272
Increase/(decrease) in creditors
367,816
(1,106,522)
Cash generated from operations
1,490,375
764,262
28
Analysis of changes in net funds - group
1 January 2019
Cash flows
31 December 2019
£
£
£
Cash at bank and in hand
690,943
41,279
732,222
Obligations under finance leases
(382,925)
(87,569)
(470,494)
308,018
(46,290)
261,728
2019-12-31
2019-01-01
false
CCH Software
CCH Accounts Production 2020.100
Mr N Castle
Mr G Donovan
Mr P Walden
Mr G Donovan
08225487
2019-01-01
2019-12-31
08225487
bus:Director1
2019-01-01
2019-12-31
08225487
bus:CompanySecretaryDirector1
2019-01-01
2019-12-31
08225487
bus:CompanySecretary1
2019-01-01
2019-12-31
08225487
bus:Director3
2019-01-01
2019-12-31
08225487
bus:Director2
2019-01-01
2019-12-31
08225487
bus:RegisteredOffice
2019-01-01
2019-12-31
08225487
bus:Consolidated
2019-12-31
08225487
bus:Consolidated
2019-01-01
2019-12-31
08225487
bus:Consolidated
2018-01-01
2018-12-31
08225487
2018-01-01
2018-12-31
08225487
2019-12-31
08225487
core:Goodwill
bus:Consolidated
2019-12-31
08225487
core:Goodwill
bus:Consolidated
2018-12-31
08225487
core:Goodwill
2019-12-31
08225487
core:Goodwill
2018-12-31
08225487
bus:Consolidated
2018-12-31
08225487
2018-12-31
08225487
bus:Consolidated
2017-12-31
08225487
core:WithinOneYear
bus:Consolidated
2019-12-31
08225487
core:WithinOneYear
bus:Consolidated
2018-12-31
08225487
core:BetweenTwoFiveYears
bus:Consolidated
2019-12-31
08225487
core:BetweenTwoFiveYears
bus:Consolidated
2018-12-31
08225487
core:WithinOneYear
2019-12-31
08225487
core:WithinOneYear
2018-12-31
08225487
core:BetweenTwoFiveYears
2019-12-31
08225487
core:BetweenTwoFiveYears
2018-12-31
08225487
core:CurrentFinancialInstruments
2019-12-31
08225487
core:CurrentFinancialInstruments
2018-12-31
08225487
core:ShareCapital
bus:Consolidated
2019-12-31
08225487
core:ShareCapital
bus:Consolidated
2018-12-31
08225487
core:RevaluationReserve
bus:Consolidated
2019-12-31
08225487
core:RevaluationReserve
bus:Consolidated
2018-12-31
08225487
core:CapitalRedemptionReserve
bus:Consolidated
2019-12-31
08225487
core:CapitalRedemptionReserve
bus:Consolidated
2018-12-31
08225487
core:OtherMiscellaneousReserve
bus:Consolidated
2019-12-31
08225487
core:OtherMiscellaneousReserve
bus:Consolidated
2018-12-31
08225487
core:RetainedEarningsAccumulatedLosses
bus:Consolidated
2019-12-31
08225487
core:RetainedEarningsAccumulatedLosses
bus:Consolidated
2018-12-31
08225487
core:ShareCapital
2019-12-31
08225487
core:ShareCapital
2018-12-31
08225487
core:RevaluationReserve
2019-12-31
08225487
core:RevaluationReserve
2018-12-31
08225487
core:CapitalRedemptionReserve
2019-12-31
08225487
core:CapitalRedemptionReserve
2018-12-31
08225487
core:OtherMiscellaneousReserve
2019-12-31
08225487
core:OtherMiscellaneousReserve
2018-12-31
08225487
core:RetainedEarningsAccumulatedLosses
2019-12-31
08225487
core:RetainedEarningsAccumulatedLosses
2018-12-31
08225487
core:ShareCapital
bus:Consolidated
2017-12-31
08225487
core:RevaluationReserve
bus:Consolidated
2017-12-31
08225487
core:CapitalRedemptionReserve
bus:Consolidated
2017-12-31
08225487
core:OtherMiscellaneousReserve
bus:Consolidated
2017-12-31
08225487
core:RetainedEarningsAccumulatedLosses
bus:Consolidated
2017-12-31
08225487
core:ShareCapital
2017-12-31
08225487
core:RevaluationReserve
2017-12-31
08225487
core:CapitalRedemptionReserve
2017-12-31
08225487
core:OtherMiscellaneousReserve
2017-12-31
08225487
core:RetainedEarningsAccumulatedLosses
2017-12-31
08225487
2017-12-31
08225487
core:RevaluationReserve
bus:Consolidated
2018-01-01
2018-12-31
08225487
core:RevaluationReserve
bus:Consolidated
2019-01-01
2019-12-31
08225487
core:RetainedEarningsAccumulatedLosses
bus:Consolidated
2018-01-01
2018-12-31
08225487
core:RetainedEarningsAccumulatedLosses
bus:Consolidated
2019-01-01
2019-12-31
08225487
bus:Consolidated
2018-12-31
08225487
core:Goodwill
2019-01-01
2019-12-31
08225487
core:LandBuildings
core:OwnedOrFreeholdAssets
2019-01-01
2019-12-31
08225487
core:LandBuildings
core:LongLeaseholdAssets
2019-01-01
2019-12-31
08225487
core:PlantMachinery
2019-01-01
2019-12-31
08225487
core:FurnitureFittings
2019-01-01
2019-12-31
08225487
core:MotorVehicles
2019-01-01
2019-12-31
08225487
core:Goodwill
2018-12-31
08225487
core:Goodwill
core:ExternallyAcquiredIntangibleAssets
2019-01-01
2019-12-31
08225487
core:PlantMachinery
2019-12-31
08225487
core:PlantMachinery
2018-12-31
08225487
core:Subsidiary1
2019-01-01
2019-12-31
08225487
core:Subsidiary2
2019-01-01
2019-12-31
08225487
core:Subsidiary3
2019-01-01
2019-12-31
08225487
core:Subsidiary4
2019-01-01
2019-12-31
08225487
core:Subsidiary1
1
2019-01-01
2019-12-31
08225487
core:Subsidiary2
2
2019-01-01
2019-12-31
08225487
core:Subsidiary3
3
2019-01-01
2019-12-31
08225487
core:Subsidiary4
4
2019-01-01
2019-12-31
08225487
core:Non-currentFinancialInstruments
2019-12-31
08225487
core:Non-currentFinancialInstruments
2018-12-31
08225487
bus:PrivateLimitedCompanyLtd
2019-01-01
2019-12-31
08225487
bus:FRS102
2019-01-01
2019-12-31
08225487
bus:Audited
2019-01-01
2019-12-31
08225487
bus:ConsolidatedGroupCompanyAccounts
2019-01-01
2019-12-31
08225487
bus:FullAccounts
2019-01-01
2019-12-31
xbrli:pure
xbrli:shares
iso4217:GBP