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REGISTERED NUMBER: 14858809 (England and Wales)

































Group Strategic Report,

Report of the Directors and

Consolidated Financial Statements

For The Year Ended

31 December 2023

for

LESTER CLADDING GROUP HOLDINGS LIMITED

LESTER CLADDING GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 14858809)






Contents of the Consolidated Financial Statements
For The Year Ended 31 December 2023




Page

Company Information 1

Group Strategic Report 2

Report of the Directors 4

Statement of Directors' Responsibilities 6

Report of the Independent Auditors 7

Consolidated Profit and Loss Account 11

Consolidated Other Comprehensive Income 12

Consolidated Balance Sheet 13

Company Balance Sheet 14

Consolidated Statement of Changes in Equity 15

Company Statement of Changes in Equity 16

Consolidated Cash Flow Statement 17

Notes to the Consolidated Cash Flow Statement 18

Notes to the Consolidated Financial Statements 19


LESTER CLADDING GROUP HOLDINGS LIMITED

Company Information
For The Year Ended 31 December 2023







DIRECTORS: Mr S Lester
Mr M Lester
Mr K Lester
Mr D Lester





SECRETARY: Miss K Lester





REGISTERED OFFICE: Globe Way
Off Spencer Industrial Estate
Buckley
Flintshire
CH7 3FH





REGISTERED NUMBER: 14858809 (England and Wales)





AUDITORS: Leavitt Walmsley Associates Limited
Chartered Certified Accountants and
Statutory Auditors
8 Eastway
Sale
Cheshire
M33 4DX

LESTER CLADDING GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 14858809)

Group Strategic Report
For The Year Ended 31 December 2023

The directors present their strategic report of the company and the group for the year ended 31 December 2023.

REVIEW OF BUSINESS
The directors are satisfied with the group's performance during the year.

The group continues to specialise in roofing, cladding and envelope solutions for the construction industry. During 2023, pressures on margins eased as rates of inflation began to subside. However, increased material costs have contributed to a reduction in gross margins.

Strong proactive management performance ensured the impacts of the above were reduced as far as possible through strong relationships with our suppliers, staff and contractors.

Group turnover saw an increase of 80% in comparison to 1.3% in the previous year. This is encouraging and the directors hope to achieve this growth.

Group administrative expenses also saw an increase of 60% (2022: 14%) which has been largely driven by an increase in staff costs and insurances. Depreciation charges have also increased by 34% due to additional investments in fixed assets during the year. Profit before tax increased to £3.3m (2022: £1.6m) which is encouraging.

Group restructuring
In May 2023, Lester Cladding Group Holdings was created to effect a buyback of shares from a retiring shareholder. The use of merger accounting has been applied in the preparation of these consolidated financial statements.

Whilst the ultimate parent company only has a short accounting period from 10 May 2023 to 31 December 2023, the principles of merger accounting (which are recognised in Sch 6 to The Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008 (SI 2008/410), require the presentation of information for the 12-month period with 12-month comparatives.

The directors are confident the balance sheet position of the group will continue to improve during the 2024 financial year.

PRINCIPAL RISKS AND UNCERTAINTIES
Other than general economic risks, the principal risks faced by the group remain those relating to a highly competitive tendering market, inflation in the supply chain costs, staff retention and changes in regulations and government planning. The group enters into long-term contracts in the ordinary course of business which introduces further commercial, inflation, customer and supply chain risks to the business which can impact on revenue and profit recognised on contracts. Significant levels of group activity continue to relate to the building and construction sector which continue to be impacted by fierce competition and rising material prices. The directors actively manage this risk by working with selected clients in the private sector.

While the industry has generally recovered from the impact of the Covid-19 pandemic, the speed and unprecedented impact of the pandemic demonstrates that it is difficult to plan for all eventualities. However, the group can reflect positively on the resilience that the group, its staff, partners and contractors demonstrated during the most severe of stress tests and also the success of the group's underlying strategy to maintain a diverse workload and to trade within the group's financial and operational capabilities.

KEY PERFORMANCE INDICATORS
The directors have monitored the progress of the group with reference to certain financial key performance indicators:

Revenue £26m (2022: £14m)
Operating profit £3.2m (2022: £1.6m)
Profit before tax £3.3m (2022: £1.6m)
Net current assets £5.4m (2022: £4.5m)
Net assets £9.9m (2022: £8.7m)
Free cash flow £5.7m (2022: £2.9m)

Key performance indicators (KPIs) include revenue, gross profit and operating profit. These KPIs are selected as 'key' on the basis that the group is driven by gross margins on construction contracts and the directors strive to keep margins as high as possible in order to preserve profit and maintain competitive advantage. Operating profit is also a KPI on the grounds that it is an indicator of business performance, whereas profit before tax may include exceptional items.

Non-financial KPIs
Average employee headcount: 45 (2022: 36).


LESTER CLADDING GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 14858809)

Group Strategic Report
For The Year Ended 31 December 2023

FUTURE DEVELOPMENTS
The group has devised a competitive pricing model for key materials and has mitigated exposure to logistical and product price increases by a formulaic pricing matrix. This will ensure the group maintains its margins on key products. A bespoke construction contract costing system is in place to ensure that profitability is maintained on construction contracts.

Management are looking to develop further relations with its key customer base and take on new partners during the course of 2024 to strengthen business activity within the sector.

ON BEHALF OF THE BOARD:





Mr S Lester - Director


18 July 2024

LESTER CLADDING GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 14858809)

Report of the Directors
For The Year Ended 31 December 2023

The directors present their report with the financial statements of the company and the group for the year ended 31 December 2023.

DIVIDENDS
Interim dividends amounting to £975,984 were paid during the period.

The directors recommend that no final dividends be paid.

The total distribution of dividends for the period ended 31 December 2023 will be £975,984.

FUTURE DEVELOPMENTS
Future developments are addressed in the group strategic report.

DIRECTORS
The directors who have held office during the period from 1 January 2023 to the date of this report are as follows:

Mr S Lester - appointed 10 May 2023
Mr M Lester - appointed 10 May 2023
Mr K Lester - appointed 10 May 2023
Mr D Lester - appointed 10 May 2023

FINANCIAL INSTRUMENTS
The group uses financial instruments. These include investments, bank balances, trade and other debtors and creditors that arise directly from its operations, directors' current accounts, unpaid share capital, accruals and preference shares.

The existence of these financial instruments exposes the group to a number of financial risks, which are described in more detail below:

Liquidity risk
The group seeks to manage financial risk by ensuring sufficient liquidity is available to meet foreseeable needs and to invest cash safely and profitably.

Interest rate risk
The group finances its operations through retained profits and bank balances. The interest rate exposure of the financial assets and financial liabilities of the group as at 31 December 2023 is shown below. The table includes trade debtors and trade creditors which do not attract interest and are therefore subject to fair value interest rate risk:

Fixed Floating Zero Total
£    £    £    £   
Financial assets
Trade and other debtors - - 3,059 3,059
Director's current account - - 100 100
Cash and bank balances - - 5,712 5,712

Financial liabilities
Trade and other creditors - - 3,329 3,329
Accrued expenses - - 41 41
Directors' current accounts - - 110 110

Credit risk
The group's principal financial assets are cash deposits, cash and trade debtors. The credit risk associated with cash is linked to the impact of contracts with customers where certain contract receipts may be deferred for several months. The directors manage this credit risk through a detailed customer approval and acceptance process.


LESTER CLADDING GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 14858809)

Report of the Directors
For The Year Ended 31 December 2023

GOING CONCERN
As at 31 December 2023, the group had cash of £5.7m (2022; £2.9m). It also had a strong forward order book.

The uncertainty as to the future impact on the group of external factors has been considered as part of the group's adoption of the going concern basis. The board has completed an assessment as to the potential impact to the group in the event of certain downside scenarios, including a significant deterioration in revenues and productivity. A key component of this exercise is to highlight future discretionary expenditure on developments which could be avoided or deferred in order to protect the group's cash balances.

The consolidated financial statements have been prepared on a going concern basis which the directors believe is appropriate for the following reasons.

The group currently meets its day-to-day working capital requirements through its bank accounts. The directors have prepared and reviewed cash flow forecasts and the directors are confident that the group has adequate resources available to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis of accounting in preparing these consolidated financial statements.

DISCLOSURE IN THE STRATEGIC REPORT
In accordance with s414c(11), Sch 7, Companies Act 2006, the group has chosen to set out in the group's strategic report information required by The Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008. It has done so in respect of:

(a) Principal risks faced by the group; and
(b) Future developments.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information.

AUDITORS
The auditors, Leavitt Walmsley Associates Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





Mr S Lester - Director


18 July 2024

LESTER CLADDING GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 14858809)

Statement of Directors' Responsibilities
For The Year Ended 31 December 2023

The directors are responsible for preparing the Group Strategic Report, the Report of the Directors 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 company and the group 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;
- 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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Report of the Independent Auditors to the Members of
Lester Cladding Group Holdings Limited

Opinion
We have audited the financial statements of Lester Cladding Group Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023 which comprise the Consolidated Profit and Loss Account, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:
-give a true and fair view of the state of the group's and of the parent company affairs as at 31 December 2023 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.

Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern
In auditing the financial statements, we have concluded that the 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 group's and the parent 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 directors are responsible for the other information. The other information comprises the information in the Group Strategic Report, the Report of the Directors and the Statement of Directors' Responsibilities, but does not include the financial statements and our Report of the Auditors 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 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.

Opinions 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 Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Report of the Independent Auditors to the Members of
Lester Cladding Group Holdings Limited


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 identified material misstatements in the Group Strategic Report or the Report of the Directors.

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 Statement of Directors' Responsibilities set out on page six, 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 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.

Report of the Independent Auditors to the Members of
Lester Cladding Group Holdings Limited


Auditors' responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors 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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

In respect of fraud, the objectives of our audit are to identify and assess the risk of material misstatement of the financial statements due to fraud, to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud through designing and implementing appropriate responses and to respond appropriately to fraud or suspected fraud identified during the audit.

It is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the entity's operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud.

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, the audit engagement team:

- obtained an understanding of the nature of the industry and sector, including the legal and regulatory frameworks that the group and parent company operate in and how the group and parent company are complying with the legal and regulatory frameworks;

- inquired of management, and those charged with governance, about their own identification and assessment of the risks of irregularities, including any known actual, suspected or alleged instances of fraud; and

- discussed matters about non-compliance with laws and regulations and how fraud might occur including an assessment of how and where the financial statements may be susceptible to fraud.

As a result of these procedures, we consider the most significant laws and regulations that have a direct impact on the financial statements are FRS 102, the Companies Act 2006 and tax legislation. We performed audit procedures to detect non-compliance which may have a material impact on the financial statements which included reviewing financial statement disclosures, inspecting correspondence with local tax authorities and evaluating advice received from external advisors.

The most significant laws and regulations that have an indirect impact on the financial statements are those in relation to health and safety. We performed audit procedures to inquire of management and those charged with governance whether the group and company is in compliance with these laws and regulations and reviewing any notices published by the Health and Safety Executive. We also made inquiries with those charged with governance to identify any live and material claims or disputes with subcontractors or clients.

The group audit engagement team identified the risk of management override of controls and revenue recognition as the areas where the financial statements were most susceptible to material misstatement due to fraud. Audit procedures performed included, but were not limited to:

- Testing manual journal entries and other adjustments and evaluating the business rationale in relation to significant, unusual transactions and transactions entered into outside the normal course of business, assessing whether the judgements made in making accounting estimates are indicative of potential bias.

- We tested a sample of revenue transactions recognised either side of the balance sheet date to determine whether revenue was recorded in the correct period.

- Challenging judgements and estimates applied in the valuation of amounts recoverable on contracts by discussing contract performance with quantity surveyors, reviewing post-year end performance of projects and comparing the outturn of projects with the estimates made in preparing the prior year's 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 www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Report of the Independent Auditors to the Members of
Lester Cladding Group Holdings Limited


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 a Report of the Auditors 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.




Steven John Collings FCCA (Senior Statutory Auditor)
for and on behalf of Leavitt Walmsley Associates Limited
Chartered Certified Accountants and
Statutory Auditors
8 Eastway
Sale
Cheshire
M33 4DX

18 July 2024

LESTER CLADDING GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 14858809)

Consolidated
Profit and Loss Account
For The Year Ended 31 December 2023

31.12.23 31.12.22
Notes £    £    £    £   

TURNOVER 3 25,522,205 14,203,606

Cost of sales 20,295,450 11,229,881
GROSS PROFIT 5,226,755 2,973,725

Administrative expenses 2,103,275 1,316,724
3,123,480 1,657,001

Other operating income 46,302 26,361
Gain/loss on revaluation of investments - (66,965 )
OPERATING PROFIT 5 3,169,782 1,616,397

Income from fixed asset investments - 1,322
Interest receivable and similar income 131,221 23,837
131,221 25,159
PROFIT BEFORE TAXATION 3,301,003 1,641,556

Tax on profit 7 830,893 (58,864 )
PROFIT FOR THE FINANCIAL YEAR 2,470,110 1,700,420
Profit attributable to:
Owners of the parent 2,470,110 1,700,420

LESTER CLADDING GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 14858809)

Consolidated
Other Comprehensive Income
For The Year Ended 31 December 2023

31.12.23 31.12.22
Notes £    £   

PROFIT FOR THE YEAR 2,470,110 1,700,420


OTHER COMPREHENSIVE INCOME
Transfer to retained earnings - (472,500 )
Transfer from non-distributable reserve - 472,500
Income tax relating to components of other
comprehensive income

-

-
OTHER COMPREHENSIVE INCOME FOR
THE YEAR, NET OF INCOME TAX

-

-
TOTAL COMPREHENSIVE INCOME FOR THE
YEAR

2,470,110

1,700,420

Total comprehensive income attributable to:
Owners of the parent 2,470,110 1,700,420

LESTER CLADDING GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 14858809)

Consolidated Balance Sheet
31 December 2023

31.12.23 31.12.22
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 10 4,908,322 4,507,595
Investments 11 - -
4,908,322 4,507,595

CURRENT ASSETS
Debtors 12 3,397,851 4,916,503
Cash at bank and in hand 5,711,836 2,878,532
9,109,687 7,795,035
CREDITORS
Amounts falling due within one year 13 3,735,766 3,311,474
NET CURRENT ASSETS 5,373,921 4,483,561
TOTAL ASSETS LESS CURRENT
LIABILITIES

10,282,243

8,991,156

PROVISIONS FOR LIABILITIES 15 418,011 312,464
NET ASSETS 9,864,232 8,678,692

CAPITAL AND RESERVES
Called up share capital 16 301 301
Revaluation reserve 17 128,250 128,250
Merger reserve 17 198 198
Retained earnings 17 9,735,483 8,549,943
9,864,232 8,678,692

The financial statements were approved by the Board of Directors and authorised for issue on 18 July 2024 and were signed on its behalf by:





Mr S Lester - Director


LESTER CLADDING GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 14858809)

Company Balance Sheet
31 December 2023

31.12.23 31.12.22
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 10 - -
Investments 11 12,770,522 12,700,000
12,770,522 12,700,000

CURRENT ASSETS
Debtors 12 199 199
NET CURRENT ASSETS 199 199
TOTAL ASSETS LESS CURRENT
LIABILITIES

12,770,721

12,700,199

CREDITORS
Amounts falling due after more than one year 14 5,867,400 5,867,400
NET ASSETS 6,903,321 6,832,799

CAPITAL AND RESERVES
Called up share capital 16 301 301
Merger reserve 17 6,832,498 6,832,498
Retained earnings 17 70,522 -
6,903,321 6,832,799

Company's profit for the financial year 1,046,506 -

The financial statements were approved by the Board of Directors and authorised for issue on 18 July 2024 and were signed on its behalf by:





Mr S Lester - Director


LESTER CLADDING GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 14858809)

Consolidated Statement of Changes in Equity
For The Year Ended 31 December 2023

Called up
share Retained Revaluation
capital earnings reserve
£    £    £   
Balance at 1 January 2022 301 8,644,755 128,250

Changes in equity
Dividends - (2,267,732 ) -
Total comprehensive income - 2,172,920 -
Balance at 31 December 2022 301 8,549,943 128,250

Changes in equity
Dividends - (1,284,570 ) -
Total comprehensive income - 2,470,110 -
Balance at 31 December 2023 301 9,735,483 128,250
Other Merger Total
reserves reserve equity
£    £    £   
Balance at 1 January 2022 472,500 198 9,246,004

Changes in equity
Dividends - - (2,267,732 )
Total comprehensive income (472,500 ) - 1,700,420
Balance at 31 December 2022 - 198 8,678,692

Changes in equity
Dividends - - (1,284,570 )
Total comprehensive income - - 2,470,110
Balance at 31 December 2023 - 198 9,864,232

LESTER CLADDING GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 14858809)

Company Statement of Changes in Equity
For The Year Ended 31 December 2023

Called up
share Retained Merger Total
capital earnings reserve equity
£    £    £    £   
Balance at 1 January 2022 301 - 6,832,498 6,832,799

Changes in equity
Balance at 31 December 2022 301 - 6,832,498 6,832,799

Changes in equity
Dividends - (975,984 ) - (975,984 )
Total comprehensive income - 1,046,506 - 1,046,506
Balance at 31 December 2023 301 70,522 6,832,498 6,903,321

LESTER CLADDING GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 14858809)

Consolidated Cash Flow Statement
For The Year Ended 31 December 2023

31.12.23 31.12.22
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 5,260,693 1,934,026
Tax paid (400,978 ) (524,422 )
Net cash from operating activities 4,859,715 1,409,604

Cash flows from investing activities
Purchase of tangible fixed assets (998,156 ) (961,519 )
Sale of tangible fixed assets 65,214 18,566
Interest received 131,221 23,837
Dividends received - 1,322
Net cash from investing activities (801,721 ) (917,794 )

Cash flows from financing activities
Amount introduced by directors 222,770 -
Amount withdrawn by directors (162,890 ) (91,191 )
Equity dividends paid (1,284,570 ) (253,231 )
Net cash from financing activities (1,224,690 ) (344,422 )

Increase in cash and cash equivalents 2,833,304 147,388
Cash and cash equivalents at beginning of
year

2

2,878,532

2,731,144

Cash and cash equivalents at end of year 2 5,711,836 2,878,532

LESTER CLADDING GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 14858809)

Notes to the Consolidated Cash Flow Statement
For The Year Ended 31 December 2023

1. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS
31.12.23 31.12.22
£    £   
Profit before taxation 3,301,003 1,641,556
Depreciation charges 529,498 395,722
Loss on disposal of fixed assets 2,717 2,252
Loss on revaluation of fixed assets - 66,965
Non-cash movement on investment - (565 )
Finance income (131,221 ) (25,159 )
3,701,997 2,080,771
Decrease in stocks - 19,025
Decrease/(increase) in trade and other debtors 1,374,983 (141,206 )
Increase/(decrease) in trade and other creditors 183,713 (24,564 )
Cash generated from operations 5,260,693 1,934,026

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 December 2023
31.12.23 1.1.23
£    £   
Cash and cash equivalents 5,711,836 2,878,532
Year ended 31 December 2022
31.12.22 1.1.22
£    £   
Cash and cash equivalents 2,878,532 2,731,144


3. ANALYSIS OF CHANGES IN NET FUNDS

At 1.1.23 Cash flow At 31.12.23
£    £    £   
Net cash
Cash at bank and in hand 2,878,532 2,833,304 5,711,836
2,878,532 2,833,304 5,711,836
Total 2,878,532 2,833,304 5,711,836

4. ACQUISITION OF BUSINESS

During the period, Lester Cladding Group Holdings Limited acquired the entire share capital of Lester Cladding Holdings Limited in a share-for-share exchange. The value of the shares acquired were £300. Immediately after the share-for-share exchange, various assets were transferred to the holding company. The fair value of the assets transferred was £6,832,498.

LESTER CLADDING GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 14858809)

Notes to the Consolidated Financial Statements
For The Year Ended 31 December 2023

1. STATUTORY INFORMATION

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

The presentation currency of the financial statements is the Pound Sterling (£).


2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with the provisions of FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

These consolidated financial statements consolidate the financial statements of Lester Cladding Group Holdings Ltd, Lester Cladding Holdings Limited and Lester Cladding Limited. All undertakings in the consolidated financial statements have financial statements that are drawn up to 31 December.

Going concern
As at 31 December 2023, the group had free cash reserves amounting to £5.7m (2022: £2.9m) and also had a strong forward order book.

The uncertainty as to the future impact on the group of external factors has been considered as part of the group's adoption of the going concern basis of accounting. The board has completed an assessment as to the potential impact to the group in the event of certain downside scenarios, including a significant deterioration in revenues and productivity. A key component of this exercise is to highlight future discretionary expenditure on property developments which could be avoided or deferred in order to protect the group's cash balances.

At the time of approving these consolidated 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 these consolidated financial statements for the following reasons:

- the group meets its day-to-day working capital requirements through its cash balances;
- cash balances are monitored on a regular basis and are deemed to be more than adequate;
- the group is not reliant on borrowing facilities; and
- the directors consider the group has adequate resources to continue in operational existence for the foreseeable future.

LESTER CLADDING GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 14858809)

Notes to the Consolidated Financial Statements - continued
For The Year Ended 31 December 2023

2. ACCOUNTING POLICIES - continued

Basis of consolidation
The consolidated financial statements consist of the financial statements of the parent company, Lester Cladding Group Holdings Limited, together with all entities that are controlled by the parent company (directly or indirectly) (its subsidiaries).

Group reconstructions
Group reconstructions are accounted for using the merger method of accounting. Under the merger method of accounting, the carrying amounts of assets and liabilities of the parties to the combination are brought into the consolidated financial statements at book value with appropriate adjustments, where necessary, to achieve uniformity of accounting policies. The results and cash flows of the combining entities are brought into the consolidated financial statements of the group from the beginning of the financial year in which the combination arose.

All financial statements are made up to 31 December each year. All intra-group transactions, balances and unrealised gains and losses on transactions between group members are eliminated on consolidation.

While the parent company only has a short accounting period ended 31 December 2023, the principles of merger accounting, which are recognised in Sch 6 to The Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008 (SI 2008/410), require the presentation of information for the 12-month period with 12-month comparatives.

Business combinations
For business combinations which do not meet the criteria to apply merger accounting, the purchase method of accounting is used.

Related party exemption
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements.

Critical accounting judgements and key sources of estimation uncertainty
The preparation of consolidated financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the year end date and amounts reported for revenue and expenses during the year. However, the nature of the estimation is such that actual outcomes could differ from those estimates. The following judgements have the most effect on the amounts recognised in the consolidated financial statements:

Revenue recognition
The group enters into long-term contracts in the normal course of business. The nature of such contracts introduces judgement and uncertainty into the recognition of revenue and profit for the business.

Trade debtors
The likelihood of collection of trade debtors also requires judgement to be applied. The group makes an assessment at each balance sheet date as to whether a provision for specific bad debts is required through a detailed review of individual customer balances.

LESTER CLADDING GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 14858809)

Notes to the Consolidated Financial Statements - continued
For The Year Ended 31 December 2023

2. ACCOUNTING POLICIES - continued

Turnover
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, VAT and other sales taxes.

Turnover is recognised to the extent that it is probable (i.e. more likely than not) that the economic benefits will flow to the company and the revenue can be reliably measured. Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, VAT and other sale taxes.

Turnover on long-term contracts is recognised in accordance with the stage of completion of contractual obligations to the customer. The stage of completion of the contract at the balance sheet date is assessed by reference to the value of work done.

When the outcome of a contract can be assessed reliably, contract turnover and associated costs are recognised as turnover and costs respectively by reference to the stage of completion of the contract activity at the balance sheet date in full. Full provision is made for losses on all contracts in the year in which the loss is first foreseen.

Where the outcome of a contract cannot be estimated reliably, contract turnover is recognised only to the extent of contract costs incurred that it is probable will be recoverable, and contract costs are recognised in the period in which they are incurred.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Freehold property - 2% on cost
Improvements to property - 10% on cost
Plant and machinery - 25% on reducing balance
Motor vehicles - 25% on reducing balance
Computer equipment - 33% on cost

Tangible fixed assets (excluding freehold land and buildings) are stated at cost less accumulated depreciation and accumulated impairment losses. Cost includes costs which are directly attributable in bringing the asset to its location and condition so that it is capable of operating in the manner intended by management.

Freehold land and buildings are measured at revaluation. Revaluation gains are recognised in equity under the heading 'Revaluation reserve'. Revaluation losses are also recognised in equity to the extent of a surplus balance on the revaluation reserve with any excess loss being recognised in profit or loss. Subsequent revaluation gains are recognised in profit or loss to the extent they reverse any previously recognised revaluation loss that was recognised in profit or loss with the excess being recognised in the revaluation reserve.

Assets under construction are recognised at cost and are not depreciated until they are brought into use by the group.

Profits and losses on disposal of fixed assets are included in the calculation of profit for the year.

The directors assess the group's tangible assets for evidence of impairment at each balance sheet date. Where there are indicators of impairment, the directors calculate recoverable amount of the asset(s) and compare this with carrying amount. If recoverable amount is lower than carrying amount, the asset is written down to recoverable amount by way of an impairment loss which is recognised in profit or loss for the year. Impairment losses on assets measured under the revaluation model are recognised in the revaluation reserve to the extent of a surplus revaluation gain in respect of that asset with any excess loss being recognised in profit or loss.

Impairment losses are reversed through profit or loss but only to the extent that the reversal does not increase the carrying amount to the amount which would have been stated, net of depreciation, had no impairment loss been recognised. Impairment losses for assets measured under the revaluation model are reversed through the revaluation reserve or profit or loss as appropriate.

LESTER CLADDING GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 14858809)

Notes to the Consolidated Financial Statements - continued
For The Year Ended 31 December 2023

2. ACCOUNTING POLICIES - continued

Financial instruments
The group has elected to apply (where applicable) 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 when the group becomes party to the contractual provisions of the instrument.

Financial assets are offset, with 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 trade and other debtors, cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently measured at amortised cost using the effective interest rate, unless the arrangement constitutes a financing transaction, where the financial asset is measured at the present value of the future receipts discounted at a market rate of interest.

Impairment of financial assets
Financial assets, other than those held at fair value through profit or loss, are assessed for indicators of impairment at each balance sheet 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 a third party that is able to sell the asset in its entirety to an unrelated party.

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 its liabilities.

Basic financial liabilities
Basic financial liabilities, including trade and other creditors and accruals are initially recognised at transaction price unless the arrangement constitutes a financing arrangement, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest.

Debt instruments are subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities
Financial liabilities are derecognised when, and only when, the group's contractual obligations are discharged, cancelled or they expire.

Equity instruments
Equity instruments issued by the company are recorded at the fair value of 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.


LESTER CLADDING GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 14858809)

Notes to the Consolidated Financial Statements - continued
For The Year Ended 31 December 2023

2. ACCOUNTING POLICIES - continued
Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Profit and Loss Account, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. Deferred tax is calculated using timing difference plus approach.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Pension costs and other post-retirement benefits
The group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the group pays fixed contributions into a separate entity. Once the contributions have been paid the group 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 at the balance sheet date. The assets of the plan are held separately from the group in an independently administered fund.

Employee benefits
Short-term employee benefits are measured at the undiscounted amount expected to be paid in exchange for the employee's services to the company. Where employees have accrued short-term benefits which the entity has not paid by the balance sheet date, an accrual is recognised within creditors: amounts falling due within one year with an associated expense in profit or loss.

Amounts recoverable on contracts
Long-term contract balances are included in amounts recoverable on contracts are stated at cost plus attributable profit, after provision has been made for any foreseeable losses and the deduction of applicable payments on account (progress payments).

3. TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the group.

An analysis of turnover by geographical market is given below:

31.12.23 31.12.22
£    £   
United Kingdom 25,522,205 14,203,606
25,522,205 14,203,606

4. EMPLOYEES AND DIRECTORS
31.12.23 31.12.22
£    £   
Wages and salaries 1,414,237 1,023,450
Social security costs 127,547 91,840
Other pension costs 403,026 61,363
1,944,810 1,176,653

LESTER CLADDING GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 14858809)

Notes to the Consolidated Financial Statements - continued
For The Year Ended 31 December 2023

4. EMPLOYEES AND DIRECTORS - continued

The average number of employees during the year was as follows:
31.12.23 31.12.22

Management 3 3
Administrative 17 12
Direct 25 21
45 36

The average number of employees by undertakings that were proportionately consolidated during the year was NIL (2022 - NIL).

31.12.23 31.12.22
£    £   
Directors' remuneration 34,360 31,338

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes 3 3

5. OPERATING PROFIT

The operating profit is stated after charging:

31.12.23 31.12.22
£    £   
Hire of plant and machinery 237,662 96,192
Depreciation - owned assets 529,498 395,722
Loss on disposal of fixed assets 2,717 2,252
Motor expenses 237,762 218,426

6. AUDITORS' REMUNERATION

Fees payable to the group's auditor in respect of:

31.12.23 31.12.22
£    £   
Audit of the consolidated financial statements 4,500 3,000
Audit of the subsidiaries financial statements 10,600 10,000
15,100 13,000

7. TAXATION

Analysis of the tax charge/(credit)
The tax charge/(credit) on the profit for the year was as follows:
31.12.23 31.12.22
£    £   
Current tax:
UK corporation tax 725,346 57,747

Deferred tax 105,547 (116,611 )
Tax on profit 830,893 (58,864 )

LESTER CLADDING GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 14858809)

Notes to the Consolidated Financial Statements - continued
For The Year Ended 31 December 2023

7. TAXATION - continued

Reconciliation of total tax charge/(credit) included in profit and loss
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

31.12.23 31.12.22
£    £   
Profit before tax 3,301,003 1,641,556
Profit multiplied by the standard rate of corporation tax in the UK of 25 %
(2022 - 19 %)

825,251

311,896

Effects of:
Expenses not deductible for tax purposes 27,331 28,451
Income not taxable for tax purposes - (252 )
Capital allowances in excess of depreciation (117,328 ) (138,564 )
Adjustments to tax charge in respect of previous periods 18,265 (147,485 )
Balancing charge 16,304 3,318
Deferred tax movement 105,547 (116,611 )
Effect of a change in tax rate (44,477 ) -
Tax effect of other interest - 383
Total tax charge/(credit) 830,893 (58,864 )

Tax effects relating to effects of other comprehensive income

There were no tax effects for the year ended 31 December 2023.

31.12.22
Gross Tax Net
£    £    £   
Transfer to retained earnings (472,500 ) - (472,500 )
Transfer from non-distributable reserve 472,500 - 472,500
- - -

8. INDIVIDUAL PROFIT AND LOSS ACCOUNT

As permitted by Section 408 of the Companies Act 2006, the Profit and Loss Account of the parent company is not presented as part of these financial statements.


9. DIVIDENDS

31.12.23 31.12.22
£    £   
Ordinary shares of £1 each - interim 167,436 2,014,500
Ordinary A shares of £1 each - interim 106,050 101,216
Ordinary B shares of £1 each - interim 19,806 51,216
Ordinary C shares of £1 each - interim 718,680 11,216
Ordinary D shares of £1 each - interim 119,930 -
Ordinary E shares of £1 each - interim 75,500 40,000
Ordinary F shares of £1 each - interim 77,168 20,000
Ordinary G shares of £1 each - interim - 29,584
1,284,570 2,267,732

LESTER CLADDING GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 14858809)

Notes to the Consolidated Financial Statements - continued
For The Year Ended 31 December 2023

10. TANGIBLE FIXED ASSETS

Group
Improvements
Freehold Long to
property leasehold property
£    £    £   
COST
At 1 January 2023 3,000,000 25,860 149,666
Additions - - 62,499
Disposals - - -
At 31 December 2023 3,000,000 25,860 212,165
DEPRECIATION
At 1 January 2023 58,870 - 4,479
Charge for year 58,869 - 10,773
Eliminated on disposal - - -
At 31 December 2023 117,739 - 15,252
NET BOOK VALUE
At 31 December 2023 2,882,261 25,860 196,913
At 31 December 2022 2,941,130 25,860 145,187

Plant and Motor Computer
machinery vehicles equipment Totals
£    £    £    £   
COST
At 1 January 2023 1,884,559 742,319 153,016 5,955,420
Additions 722,381 166,973 46,303 998,156
Disposals (245,946 ) - (6,980 ) (252,926 )
At 31 December 2023 2,360,994 909,292 192,339 6,700,650
DEPRECIATION
At 1 January 2023 952,084 333,602 98,790 1,447,825
Charge for year 305,605 113,278 40,973 529,498
Eliminated on disposal (178,015 ) - (6,980 ) (184,995 )
At 31 December 2023 1,079,674 446,880 132,783 1,792,328
NET BOOK VALUE
At 31 December 2023 1,281,320 462,412 59,556 4,908,322
At 31 December 2022 932,475 408,717 54,226 4,507,595

LESTER CLADDING GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 14858809)

Notes to the Consolidated Financial Statements - continued
For The Year Ended 31 December 2023

11. FIXED ASSET INVESTMENTS

Company
Unlisted
investments
£   
COST
At 1 January 2023 12,700,000
Additions 70,522
At 31 December 2023 12,770,522
NET BOOK VALUE
At 31 December 2023 12,770,522
At 31 December 2022 12,700,000

The group or the company's investments at the Balance Sheet date in the share capital of companies include the following:

Subsidiaries

Lester Cladding Limited
Registered office: Globe Way, off Spencer Industrial Estate, Buckley, Flintshire CH7 3FH
Nature of business: Roofing and cladding
%
Class of shares: holding
Ordinary 100.00
31.12.23 31.12.22
£    £   
Aggregate capital and reserves 9,864,032 8,678,493
Profit for the year 2,470,107 1,700,420

The shares in Lester Cladding Limited are directly owned by Lester Cladding Holdings Limited. Lester Cladding Limited is therefore a sub-subsidiary of Lester Cladding Group Holdings Limited by virtue of the fact that Lester Cladding Group Holdings controls Lester Cladding Holdings Limited.

Lester Cladding Holdings Limited
Registered office: Globe Way, off Spencer Industrial Estate, Buckley, Flintshire CH7 3FH
Nature of business: Holding company
%
Class of shares: holding
Ordinary 100.00
31.12.23 31.12.22
£    £   
Aggregate capital and reserves 9,825,623 9,825,623
Profit for the year 1,284,569 -


LESTER CLADDING GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 14858809)

Notes to the Consolidated Financial Statements - continued
For The Year Ended 31 December 2023

12. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group Company
31.12.23 31.12.22 31.12.23 31.12.22
£    £    £    £   
Trade debtors 2,859,374 3,572,628 - -
Amts recoverable on contract - 165,391 - -
Other debtors 200,000 543,994 - -
Directors' current accounts 99,530 49,530 - -
Tax 16,097 209,766 - -
VAT 102,266 232,277 - -
Called up share capital not paid 199 199 199 199
Prepayments 120,385 142,718 - -
3,397,851 4,916,503 199 199

13. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group
31.12.23 31.12.22
£    £   
Trade creditors 2,950,252 3,078,438
Tax 215,150 84,451
Social security and other taxes 40,195 22,885
Other creditors 379,238 105,010
Directors' current accounts 109,880 -
Accrued expenses 41,051 20,690
3,735,766 3,311,474

14. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

Company
31.12.23 31.12.22
£    £   
Preference shares 5,867,400 5,867,400

15. PROVISIONS FOR LIABILITIES

Group
31.12.23 31.12.22
£    £   
Deferred tax 418,011 312,464

Group
Deferred
tax
£   
Balance at 1 January 2023 312,464
Provided during year 105,547
Balance at 31 December 2023 418,011

LESTER CLADDING GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 14858809)

Notes to the Consolidated Financial Statements - continued
For The Year Ended 31 December 2023

16. CALLED UP SHARE CAPITAL

Allotted and issued:
Number Class Nominal value £   
35 Ordinary A £1 35
25 Ordinary B £1 25
16 Ordinary C £1 16
6 Ordinary D £1 6
9 Ordinary E £1 9
6 Ordinary F £1 6
5 Ordinary G £1 5
6 Ordinary H £1 6
1 Ordinary Z £1 1
121 Ordinary A1 £1 121
71 Ordinary B1 £1 71
301

17. RESERVES

Group
Retained Revaluation Merger
earnings reserve reserve Totals
£    £    £    £   

At 1 January 2023 8,549,943 128,250 198 8,678,391
Profit for the year 2,470,110 2,470,110
Dividends (1,284,570 ) (1,284,570 )
At 31 December 2023 9,735,483 128,250 198 9,863,931

Company
Retained Merger
earnings reserve Totals
£    £    £   

At 1 January 2023 - 6,832,498 6,832,498
Profit for the year 1,046,506 1,046,506
Dividends (975,984 ) (975,984 )
At 31 December 2023 70,522 6,832,498 6,903,020

Retained earnings
Retained earnings comprise the parent and the parent's share of subsidiary profits. Retained earnings is a distributable reserve that includes all current and prior year group profits and losses.

Revaluation reserve
The revaluation reserve is a non-distributable reserve which arises as a consequence of the increases in value of property, plant and equipment at fair value. The increases in fair value are unrealised and are presented net of deferred tax consequences. The revaluation reserve is only released to retained earnings when the related asset is disposed.

Merger reserve
The merger reserve reflects the difference between the fair value of the assets acquired and the nominal value of shares issued when the group was created subsequent to the restructure and buyback of certain shares.

LESTER CLADDING GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 14858809)

Notes to the Consolidated Financial Statements - continued
For The Year Ended 31 December 2023

18. CONTINGENT LIABILITIES

During the year, an incident arose at a subsidiary on site which is still in the early stages of investigation. The information required by FRS 102, Section 21 'Provisions and Contingencies' in respect of contingent liabilities, including any potential settlement, has not been disclosed on the grounds that it could be prejudicial to the outcome.

A member of the group carried out work on a contract during the year amounting to £887k for which settlement has been received. Subsequently, a contractor that was a party to the transaction went into bankruptcy and the company may be called upon to make repayment in light of the circumstances surrounding the bankruptcy. At the balance sheet date, payment was only possible rather than probable.

19. RELATED PARTY DISCLOSURES

Other related parties
31.12.23 31.12.22
£    £   
Sales 61,690 45,620
Purchases 1,810,201 754,026
Amount due from related party 65,885 7,798
Amount due to related party 804,406 275,395

20. ULTIMATE CONTROLLING PARTY

In the opinion of the directors, there is no one controlling party.

21. FINANCIAL INSTRUMENTS

Financial assets 31.12.23 31.12.22
£    £   
Financial assets measured at amortised cost 8,870,740 7,210,075
Financial liabilities
Financial liabilities measured at amortised cost 3,480,421 3,480,421
Financial assets measured at amortised cost include debtors, cash and the director's current account balance.

Financial liabilities measured at amortised cost include creditors, accruals and the directors' current account balances.