Registration number:
Active Plumbing Supplies Holdings Limited
for the Year Ended 31 December 2023
Active Plumbing Supplies Holdings Limited
Contents
Company Information |
|
Strategic Report |
|
Directors' Report |
|
Statement of Directors' Responsibilities |
|
Independent Auditor's Report |
|
Consolidated Profit and Loss Account |
|
Consolidated Statement of Comprehensive Income |
|
Consolidated Balance Sheet |
|
Balance Sheet |
|
Consolidated Statement of Changes in Equity |
|
Statement of Changes in Equity |
|
Consolidated Statement of Cash Flows |
|
Notes to the Financial Statements |
Active Plumbing Supplies Holdings Limited
Company Information
Directors |
A Hibbard G Satterly |
Registered office |
|
Auditors |
|
Active Plumbing Supplies Holdings Limited
Strategic Report for the Year Ended 31 December 2023
The directors present their strategic report for the year ended 31 December 2023.
Principal activity
The principal activity of the group is the operation of Plumbing and Heating Merchants with retail bathroom showrooms.
Fair review of the business
Active Plumbing Supplies Holdings Limited was incorporated on 11 October 2021.
On 10 June 2022 the Company acquired the shareholdings of seven wholesale and hardware plumbing merchants by way of a share for share exchange. The comparatives for 2022 in these financial statements report the group results for approximately six months from acquisition of the subsidiaries to the prior year end of 31 December 2022. The results for 2023 are for a full year.
We are delighted to report that the group has opened a new branch in 2022 and by the Autumn of 2023 will have opened three further branches, bringing the total to 11 branches across the South West of England.
We have been pleased with the trading performance in 2023, with turnover of around £16.2m generating gross profit of approximately £3.8m, representing a gross margin of 23.5%, over 2% higher than reported in 2022.
EBITDA of around £950k in the year ended 31 December 2023 was more than double the EBITDA of £350k achieved by the branches in around 6 months of trading in 2022.
Principal risks and uncertainties
Economy
The plumbing supplies market is strongly linked to the general level of activity in the economy. Trading has been stable in 2023, despite the cost of living crisis, and we look forward to growth as interest rates decrease and confidence grows after a change in government. Risk is reduced by operating a portfolio of branches in separate local markets and by selling into two customer bases, both trade and retail.
Customer Credit Risk
To reduce the risk of bad debts, a credit checking service is used for new customers with credit limits applied to customer accounts, which are closely monitored and managed. Aged debtors are monitored and credit control procedures are used to collect outstanding balances.
Supply Chain Risk
The risk of supply shortages is managed by having a broad range of UK suppliers that in turn purchase from the UK, Europe and the Far East. There have been some delays in supply from the Far East during 2024, as a result of container ships diverting away from the Red Sea, but this has not had a significant impact on trading.
Approved and authorised by the
Active Plumbing Supplies Holdings Limited
Strategic Report for the Year Ended 31 December 2023
......................................... |
......................................... |
Active Plumbing Supplies Holdings Limited
Directors' Report for the Year Ended 31 December 2023
The directors present their report and the for the year ended 31 December 2023.
Directors of the group
The directors who held office during the year were as follows:
Financial instruments
Objectives and policies
The Group is financed from bank debt and internally generated cash and monitors its performance regularly. The Directors expect the Group to continue to perform in line with expectations.
Price risk, credit risk, liquidity risk and cash flow risk
Price Risk
The Group is exposed to inflationary pressures in the general economy with regards to material prices which have risen sharply. These price increases are passed on to its customers immediately.
Credit Risk
The Group is exposed to credit risk from its customers. These risks are monitored regularly to ensure the Group is not impacted significantly.
Liquidity Risk
The Group actively manages its cash and debt finance to ensure sufficient funds are available.
Cashflow Risk
Cash flow risk within the group is considered minimal due to the Directors regularly reviewing the cash position of the Group with cash forecasts.
Disclosure of information to the auditor
Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditor is unaware.
Approved by the
|
|
Active Plumbing Supplies Holdings Limited
Statement of Directors' Responsibilities
The directors acknowledge their responsibilities 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 the 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 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; and |
• |
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 the company's transactions and disclose with reasonable accuracy at any time the financial position of the group and the 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 the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Active Plumbing Supplies Holdings Limited
Independent Auditor's Report to the Members of Active Plumbing Supplies Holdings Limited
Opinion
We have audited the financial statements of Active Plumbing Supplies 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 Statement of Comprehensive Income, Consolidated Balance Sheet, Balance Sheet, Consolidated Statement of Changes in Equity, Statement of Changes in Equity, Consolidated 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 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 the parent company's 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 auditor 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 company's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Other information
The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
Active Plumbing Supplies Holdings Limited
Independent Auditor's Report to the Members of Active Plumbing Supplies Holdings Limited
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.
Opinion on other matter prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
• |
the information given in the Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
• |
the Strategic Report and 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 our knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report and the Directors' Report.
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. |
Active Plumbing Supplies Holdings Limited
Independent Auditor's Report to the Members of Active Plumbing Supplies Holdings Limited
Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page 5, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the directors are responsible for assessing the 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 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.
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 framework that the company operates in and how the company is complying with the legal and regulatory framework; |
• |
inquired of management, and those charged with governance, about their own identification and assessment of the risks or irregularities, including known and actual, suspected or alleged instances of fraud; |
• |
identified and tested journal entries, in particular any journal entries posted with unusual account combinations; and |
• |
discussed matters about non-compliance with laws and regulations and how fraud might occur including assessment of how and where the financial statements may be susceptible to fraud. |
However, 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.
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.
Active Plumbing Supplies Holdings Limited
Independent Auditor's Report to the Members of Active Plumbing Supplies 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 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.
......................................
For and on behalf of
4 Queen Street
BA1 1HE
Active Plumbing Supplies Holdings Limited
Consolidated Profit and Loss Account for the Year Ended 31 December 2023
Note |
12 months ended 31 December |
(As restated) |
|
Turnover |
|
|
|
Cost of sales |
( |
( |
|
Gross profit |
|
|
|
Administrative expenses |
( |
( |
|
Operating profit |
|
|
|
Other interest receivable and similar income |
|
- |
|
Interest payable and similar expenses |
( |
( |
|
(15,373) |
(11,551) |
||
Profit before tax |
|
|
|
Tax on profit |
( |
( |
|
Profit for the financial year |
|
|
|
Profit/(loss) attributable to: |
|||
Owners of the company |
|
|
The group has no recognised gains or losses for the year other than the results above.
Active Plumbing Supplies Holdings Limited
Consolidated Statement of Comprehensive Income for the Year Ended 31 December 2023
12 months ended 31 December |
(As restated) |
|
Profit for the year |
|
|
Total comprehensive income for the year |
|
|
Total comprehensive income attributable to: |
||
Owners of the company |
|
|
Active Plumbing Supplies Holdings Limited
(Registration number: 13672090)
Consolidated Balance Sheet as at 31 December 2023
Note |
2023 |
(As restated) |
|
Fixed assets |
|||
Intangible assets |
|
|
|
Tangible assets |
|
|
|
Investments |
|
|
|
|
|
||
Current assets |
|||
Stocks |
|
|
|
Debtors |
|
|
|
Cash at bank and in hand |
|
|
|
|
|
||
Creditors: Amounts falling due within one year |
( |
( |
|
Net current assets |
|
|
|
Total assets less current liabilities |
|
|
|
Creditors: Amounts falling due after more than one year |
( |
( |
|
Provisions for liabilities |
( |
( |
|
Net assets |
|
|
|
Capital and reserves |
|||
Called up share capital |
|
|
|
Other reserves |
|
|
|
Profit and loss account |
( |
( |
|
Equity attributable to owners of the company |
|
|
|
Total equity |
|
|
Approved and authorised by the
|
|
Active Plumbing Supplies Holdings Limited
(Registration number: 13672090)
Balance Sheet as at 31 December 2023
Note |
2023 |
(As restated) |
|
Fixed assets |
|||
Investments |
|
|
|
Current assets |
|||
Debtors |
|
|
|
Cash at bank and in hand |
|
- |
|
|
|
||
Creditors: Amounts falling due within one year |
( |
( |
|
Net current assets |
|
|
|
Net assets |
|
|
|
Capital and reserves |
|||
Called up share capital |
|
|
|
Total equity |
|
|
As permitted by s408 of the Companies Act 2006, the company has not presented its own profit and loss account and related notes.
The company made a profit after tax for the financial year of £533,404 (2022 - £288,882).
Approved and authorised by the
|
|
Active Plumbing Supplies Holdings Limited
Consolidated Statement of Changes in Equity for the Year Ended 31 December 2023
Equity attributable to the parent company
Share capital |
Other |
Retained earnings |
Total |
Total equity |
|
At 1 January 2023 |
|
|
( |
|
|
Profit for the year |
- |
- |
|
|
|
Dividends |
- |
- |
( |
( |
( |
Other movements on reserves |
- |
- |
( |
( |
( |
At 31 December 2023 |
|
|
( |
|
|
Share capital |
Other |
Retained earnings |
Total |
Total equity |
|
Profit for the year |
- |
- |
|
|
|
Dividends |
- |
- |
( |
( |
( |
New share capital subscribed |
|
- |
- |
|
|
Other reserve adjustment, increase in equity |
- |
|
- |
|
|
At 31 December 2022 |
1,100 |
3,823,408 |
(128,702) |
3,695,806 |
3,695,806 |
Active Plumbing Supplies Holdings Limited
Statement of Changes in Equity for the Year Ended 31 December 2023
Share capital |
Retained earnings |
Total |
|
At 1 January 2023 |
|
- |
|
Profit for the year |
- |
|
|
Dividends |
- |
( |
( |
At 31 December 2023 |
|
- |
|
Share capital |
Retained earnings |
Total |
|
Profit for the year |
- |
|
|
Dividends |
- |
( |
( |
New share capital subscribed |
|
- |
|
At 31 December 2022 |
1,100 |
- |
1,100 |
Active Plumbing Supplies Holdings Limited
Consolidated Statement of Cash Flows for the Year Ended 31 December 2023
Note |
2023 |
(As restated) |
|
Cash flows from operating activities |
|||
Profit for the year |
|
|
|
Adjustments to cash flows from non-cash items |
|||
Depreciation and amortisation |
|
|
|
Finance income |
( |
- |
|
Finance costs |
|
|
|
Income tax expense |
|
|
|
|
|
||
Working capital adjustments |
|||
(Increase)/decrease in stocks |
( |
|
|
Increase in trade debtors |
( |
( |
|
Increase in trade creditors |
|
|
|
Cash generated from operations |
|
|
|
Income taxes paid |
( |
( |
|
Net cash flow from operating activities |
|
|
|
Cash flows from investing activities |
|||
Interest received |
|
- |
|
Acquisitions of tangible assets |
( |
( |
|
Acquisition of intangible assets |
( |
- |
|
Purchase of subsidiary (net of cash acquired) |
- |
|
|
Net cash flows from investing activities |
( |
|
|
Cash flows from financing activities |
|||
Interest paid |
( |
( |
|
Proceeds from issue of ordinary shares, net of issue costs |
- |
|
|
Proceeds from bank borrowing draw downs |
- |
( |
|
Repayment of bank borrowing |
( |
|
|
Repayment of other borrowing |
- |
( |
|
Payments to finance lease creditors |
( |
( |
|
Dividends paid |
( |
( |
|
Net cash flows from financing activities |
( |
( |
|
Net (decrease)/increase in cash and cash equivalents |
( |
|
|
Cash and cash equivalents at 1 January |
|
- |
|
Cash and cash equivalents at 31 December |
833,319 |
867,735 |
Active Plumbing Supplies Holdings Limited
Consolidated Statement of Cash Flows for the Year Ended 31 December 2023
The company is a qualifying entity for the purposes of FRS 102 and have elected to have exemption under FRS 102 paragraph 1.12(b) not to present the Company Statement of Cash Flows.
Active Plumbing Supplies Holdings Limited
Notes to the Financial Statements for the Year Ended 31 December 2023
General information |
The company is a private company limited by share capital, incorporated in England and Wales.
The address of its registered office is:
These financial statements were authorised for issue by the
Accounting policies |
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland and the Companies Act 2006'.
Basis of preparation
These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.
The financial statements are prepared in sterling, which is the functional currency of the company, and rounded to the nearest £.
Basis of consolidation
The consolidated financial statements consolidate the financial statements of the company and its subsidiary undertakings drawn up to 31 December 2023.
Active Plumbing Supplies Holdings Limited
Notes to the Financial Statements for the Year Ended 31 December 2023
A subsidiary is an entity controlled by the company. Control is achieved where the company has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.
The results of subsidiaries acquired or disposed of during the year are included in the Profit and Loss Account from the effective date of acquisition or up to the effective date of disposal, as appropriate. Where necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by the group.
The purchase method of accounting is used to account for business combinations that result in the acquisition of subsidiaries by the group. The cost of a business combination is measured as the fair value of the assets given, equity instruments issued and liabilities incurred or assumed at the date of exchange, plus costs directly attributable to the business combination. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. Any excess of the cost of the business combination over the acquirer’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities recognised is recorded as goodwill.
Inter-company transactions, balances and unrealised gains on transactions between the company and its subsidiaries, which are related parties, are eliminated in full.
Intra-group losses are also eliminated but may indicate an impairment that requires recognition in the consolidated financial statements.
Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the group. Non-controlling interests in the net assets of consolidated subsidiaries are identified separately from the group’s equity therein. Non-controlling interests consist of the amount of those interests at the date of the original business combination and the non-controlling shareholder’s share of changes in equity since the date of the combination.
Going concern
At the balance sheet date, the group had net assets of £3,509,262. The directors have prepared the accounts on a going concern basis having made an assessment of the expected cash that will be generated from operating activities, and the committed loan facilities available to the group and considering that the group will generate sufficient returns to cover the central overhead costs and service its debt repayments. Based on budgets and forecasts prepared, the directors are confident that the group will be able to meet lenders covenants and settle liabilities as they fall due.
Active Plumbing Supplies Holdings Limited
Notes to the Financial Statements for the Year Ended 31 December 2023
Prior period errors
Following the submission of the consolidated accounts, the subsidiary accounts were adjusted for additional depreciation, rebates received post year end and consequent changes to corporation tax. The accounts have also been adjusted to recognise management charges payable in the subsidiary accounts.
Relating to the current period disclosed in these financial statements | Relating to the prior period disclosed in these financial statements | Relating to periods before the prior period disclosed in these financial statements | |
Other debtors | - | 138,705 | - |
Corporation tax payable | - | (23,810) | - |
Computer equipment depreciation charge | - | 204 | - |
Amounts due to related parties | - | (19,000) | - |
During the audit, we discovered that some items within debtors and creditors had been misallocated within the notes to the accounts and therefore this year we have amended for this. There has been no profit affect of this adjustment as it was purely presentational within the narrative of the notes.
Revenue recognition
Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the group’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts and after eliminating sales within the group.
The group recognises revenue when:
- The amount of revenue can be reliably measured
- It is probable that future economic benefits will flow to the entity
- Specific criteria have been met for each of the group's activities.
Finance income and costs policy
Finance income and expenses are recognised using the effective interest method.
Tax
The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the group operates and generates taxable income.
Active Plumbing Supplies Holdings Limited
Notes to the Financial Statements for the Year Ended 31 December 2023
Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the consolidated financial statements.
Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.
Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.
Tangible assets
Tangible assets are stated in the Balance Sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
Depreciation
Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:
Asset class |
Depreciation method and rate |
Long leasehold land and buildings |
10% straight line |
Short leasehold land and buildings |
10% and 20% straight line |
Furniture, fittings and equipment |
25% straight line |
Plant and machinery |
25% straight line |
Office equipment |
33% straight line |
Motor vehicles |
25% reducing balance |
Business combinations
Business combinations are accounted for using the purchase method. The consideration for each acquisition is measured at the aggregate of the fair values at acquisition date of assets given, liabilities incurred or assumed, and equity instruments issued by the group in exchange for control of the acquired, plus any costs directly attributable to the business combination. When a business combination agreement provides for an adjustment to the cost of the combination contingent on future events, the group includes the estimated amount of that adjustment in the cost of the combination at the acquisition date if the adjustment is probable and can be measured reliably.
Goodwill
Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the group’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each reporting period date. Goodwill is amortised over its useful life, which shall not exceed ten years if a reliable estimate of the useful life cannot be made.
Amortisation
Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:
Asset class |
Amortisation method and rate |
Goodwill |
10% straight line |
Active Plumbing Supplies Holdings Limited
Notes to the Financial Statements for the Year Ended 31 December 2023
Investments
Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.
Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable.
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
Trade debtors
Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.
Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the group will not be able to collect all amounts due according to the original terms of the receivables.
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.
The cost of finished goods and work in progress 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. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.
Trade creditors
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the group does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.
Active Plumbing Supplies Holdings Limited
Notes to the Financial Statements for the Year Ended 31 December 2023
Borrowings
Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.
Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.
Borrowings are classified as current liabilities unless the group has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
Leases
Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.
Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the balance sheet as a finance lease obligation.
Lease payments are apportioned between finance costs in the profit and loss account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.
Share capital
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.
Dividends
Dividend distribution to the group’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the group has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
Active Plumbing Supplies Holdings Limited
Notes to the Financial Statements for the Year Ended 31 December 2023
Financial instruments
Classification
Recognition and measurement
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities 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 assets and settle the liability simultaneously.
Basic financial assets, which include trade and other debtors including loan to the subsidiary company, cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.
Interest is recognised by applying the effective interest rate, except for short-term debtors when the recognition of interest would be immaterial. The effective interest method is a method of calculating the amortised cost of a debt instrument and of allocating the interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the debt instrument to the net carrying amount on initial recognition.
Basic financial liabilities, including trade and other creditors, are initially recognised at transaction price unless the arrangement constitutes a financial transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest.
Impairment
Turnover |
The analysis of the group's turnover for the year from continuing operations is as follows:
2023 |
2022 |
|
Sale of goods |
|
|
Active Plumbing Supplies Holdings Limited
Notes to the Financial Statements for the Year Ended 31 December 2023
Operating profit |
Arrived at after charging/(crediting):
2023 |
(As restated) |
|
Depreciation expense |
|
|
Amortisation expense |
|
|
Operating lease expense - property |
|
|
Interest payable and similar expenses |
2023 |
2022 |
|
Interest on bank overdrafts and borrowings |
|
|
Interest on obligations under finance leases and hire purchase contracts |
|
|
|
|
Staff costs |
The aggregate payroll costs (including directors' remuneration) were as follows:
2023 |
2022 |
|
Wages and salaries |
|
|
Social security costs |
|
|
Pension costs, defined contribution scheme |
|
|
Other employee expense |
|
|
|
|
The average number of persons employed by the group (including directors) during the year, analysed by category was as follows:
2023 |
2022 |
|
Administration and support |
|
|
Other departments |
|
|
|
|
Active Plumbing Supplies Holdings Limited
Notes to the Financial Statements for the Year Ended 31 December 2023
Directors' remuneration |
The directors' remuneration for the year was as follows:
2023 |
2022 |
|
Remuneration |
|
|
Contributions paid to money purchase schemes |
|
|
239,587 |
22,530 |
Auditors' remuneration |
2023 |
2022 |
|
Audit of these financial statements |
17,840 |
15,000 |
Other fees to auditors |
||
All other non-audit services |
|
|
Taxation |
Tax charged/(credited) in the income statement:
2023 |
(As restated) |
|
Current taxation |
||
UK corporation tax |
|
|
Deferred taxation |
||
Arising from origination and reversal of timing differences |
|
|
Tax expense in the income statement |
|
|
The tax on profit before tax for the year is the same as the standard rate of corporation tax in the UK (2022 - the same as the standard rate of corporation tax in the UK) of
The differences are reconciled below:
Active Plumbing Supplies Holdings Limited
Notes to the Financial Statements for the Year Ended 31 December 2023
2023 |
(As restated) |
|
Profit before tax |
|
|
Corporation tax at standard rate |
|
|
Tax increase from effect of capital allowances and depreciation |
|
|
Tax increase from other short-term timing differences |
|
|
Effect of expense not deductible in determining taxable profit (tax loss) |
2,903 |
1,163 |
Effect of tax losses |
(975) |
(1,081) |
Total tax charge |
|
|
Deferred tax
Group
Deferred tax assets and liabilities
2023 |
Asset |
Liability |
Accelerated capital allowances |
- |
|
- |
|
2022 |
Asset |
Liability |
Accelerated capital allowances |
- |
|
- |
|
Active Plumbing Supplies Holdings Limited
Notes to the Financial Statements for the Year Ended 31 December 2023
Intangible assets |
Group
Goodwill |
Total |
|
Cost or valuation |
||
At 1 January 2023 |
|
|
Additions acquired separately |
|
|
At 31 December 2023 |
|
|
Amortisation |
||
At 1 January 2023 |
|
|
Amortisation charge |
|
|
At 31 December 2023 |
|
|
Carrying amount |
||
At 31 December 2023 |
|
|
At 31 December 2022 |
|
|
Active Plumbing Supplies Holdings Limited
Notes to the Financial Statements for the Year Ended 31 December 2023
Tangible assets |
Group
Long leasehold land and buildings |
Short leasehold land and buildings |
Furniture, fittings and equipment |
Plant and machinery |
Office equipment |
Motor vehicles |
Total |
|
Cost or valuation |
|||||||
At 1 January 2023 |
|
|
|
|
|
|
|
Additions |
|
|
|
|
|
|
|
Transfers |
- |
- |
|
- |
- |
( |
- |
At 31 December 2023 |
|
|
|
|
|
|
|
Depreciation |
|||||||
At 1 January 2023 |
|
|
|
|
|
|
|
Charge for the year |
|
|
|
|
|
|
|
At 31 December 2023 |
|
|
|
|
|
|
|
Carrying amount |
|||||||
At 31 December 2023 |
|
|
|
|
|
|
|
At 31 December 2022 |
|
|
|
|
|
|
|
Included within the net book value of land and buildings above is £88,779 (2022 - £102,406) in respect of long leasehold land and buildings and £8,979 (2022 - £7,954) in respect of short leasehold land and buildings.
Active Plumbing Supplies Holdings Limited
Notes to the Financial Statements for the Year Ended 31 December 2023
Assets held under finance leases and hire purchase contracts
The net carrying amount of tangible assets includes the following amounts in respect of assets held under finance leases and hire purchase contracts:
2023 |
2022 |
|
Motor vehicles |
- |
55,132 |
Investments |
Group
2023 |
2022 |
||||
£ |
£ |
||||
Other investments at 1 January |
1,300 |
- |
|||
Acquired through business combinations |
- |
1,300 |
|||
Other investments at 31 December |
1,300 |
1,300 |
|||
Details of undertakings
Details of the investments (including principal place of business of unincorporated entities) in which the group holds 20% or more of the nominal value of any class of share capital are as follows:
Undertaking |
Registered office |
Holding |
Proportion of voting rights and shares held |
|
2023 |
2022 |
|||
Subsidiary undertakings |
||||
|
1st Floor, The Syms Building Bumpers Way, Bumpers Farm, Chippenham, United Kingdom, SN14 6LH |
|
|
|
|
1st Floor, The Syms Building Bumpers Way, Bumpers Farm, Chippenham, United Kingdom, SN14 6LH |
|
|
|
|
1st Floor, The Syms Building Bumpers Way, Bumpers Farm, Chippenham, United Kingdom, SN14 6LH |
|
|
|
|
1st Floor, The Syms Building Bumpers Way, Bumpers Farm, Chippenham, United Kingdom, SN14 6LH |
|
|
|
Active Plumbing Supplies Holdings Limited
Notes to the Financial Statements for the Year Ended 31 December 2023
Undertaking |
Registered office |
Holding |
Proportion of voting rights and shares held |
|
|
1st Floor, The Syms Building Bumpers Way, Bumpers Farm, Chippenham, United Kingdom, SN14 6LH |
|
|
|
|
1st Floor, The Syms Building Bumpers Way, Bumpers Farm, Chippenham, United Kingdom, SN14 6LH |
|
|
|
|
1st Floor, The Syms Building Bumpers Way, Bumpers Farm, Chippenham, United Kingdom, SN14 6LH |
|
|
|
|
1st Floor, The Syms Building Bumpers Way, Bumpers Farm, Chippenham, United Kingdom, SN14 6LH |
|
|
|
|
1st Floor, The Syms Building Bumpers Way, Bumpers Farm, Chippenham, United Kingdom, SN14 6LH |
|
|
|
The proportion of voting rights and shares held in relation to Active Plumbing Supplies (Swindon) Limited and Active Plumbing Supplies (Tewkesbury) Limited above is shown as 0% for the year ended 31 December 2022 as the companies had not been incorporated at the year end.
Active Plumbing Supplies Holdings Limited
Notes to the Financial Statements for the Year Ended 31 December 2023
Subsidiary undertakings
ACTIVE PLUMBING SUPPLIES (CIRENCESTER) LIMITED The principal activity of ACTIVE PLUMBING SUPPLIES (CIRENCESTER) LIMITED is |
ACTIVE PLUMBING SUPPLIES (FARINGDON) LIMITED The principal activity of ACTIVE PLUMBING SUPPLIES (FARINGDON) LIMITED is |
ACTIVE PLUMBING SUPPLIES (MALMESBURY) LIMITED The principal activity of ACTIVE PLUMBING SUPPLIES (MALMESBURY) LIMITED is |
ACTIVE PLUMBING SUPPLIES (MARLBOROUGH) LIMITED The principal activity of ACTIVE PLUMBING SUPPLIES (MARLBOROUGH) LIMITED is |
ACTIVE PLUMBING SUPPLIES (PLYMOUTH) LIMITED The principal activity of ACTIVE PLUMBING SUPPLIES (PLYMOUTH) LIMITED is |
ACTIVE PLUMBING SUPPLIES (TROWBRIDGE) LIMITED The principal activity of ACTIVE PLUMBING SUPPLIES (TROWBRIDGE) LIMITED is |
ACTIVE PLUMBING SUPPLIES (WITNEY) LIMITED The principal activity of ACTIVE PLUMBING SUPPLIES (WITNEY) LIMITED is |
ACTIVE PLUMBING SUPPLIES (SWINDON) LIMITED The principal activity of ACTIVE PLUMBING SUPPLIES (SWINDON) LIMITED is |
ACTIVE PLUMBING SUPPLIES (TEWKESBURY) LIMITED The principal activity of ACTIVE PLUMBING SUPPLIES (TEWKESBURY) LIMITED is |
Active Plumbing Supplies Holdings Limited
Notes to the Financial Statements for the Year Ended 31 December 2023
For the year ending 31 December 2023 the following subsidiaries were entitled to exemption from audit under section 479A of the Companies Act 2006 relating to subsidiary companies:
ACTIVE PLUMBING SUPPLIES (CIRENCESTER) LIMITED - COMPANY NUMBER 07233915 |
ACTIVE PLUMBING SUPPLIES (FARINGDON) LIMITED - COMPANY NUMBER 08543269 |
ACTIVE PLUMBING SUPPLIES (MALMESBURY) LIMITED - COMPANY NUMBER 07823010 |
ACTIVE PLUMBING SUPPLIES (MARLBOROUGH) LIMITED - COMPANY NUMBER 12977201 |
ACTIVE PLUMBING SUPPLIES (PLYMOUTH) LIMITED - COMPANY NUMBER 10967048 |
ACTIVE PLUMBING SUPPLIES (TROWBRIDGE) LIMITED - COMPANY NUMBER 08820228 |
ACTIVE PLUMBING SUPPLIES (WITNEY) LIMITED - COMPANY NUMBER 12773970 |
ACTIVE PLUMBING SUPPLIES (SWINDON) LIMITED - COMPANY NUMBER 14603196 |
ACTIVE PLUMBING SUPPLIES (TEWKESBURY) LIMITED - COMPANY NUMBER 15246039 |
Company
2023 |
2022 |
|
Investments in subsidiaries |
|
|
In the year ended 31 December 2023 Active Plumbing Supplies Holdings Limited purchased Active Plumbing Supplies (Swindon) Limited and Active Plumbing Supplies (Tewkesbury) Limited.
Stocks |
Group |
Company |
|||
2023 |
2022 |
2023 |
2022 |
|
Other inventories |
|
|
- |
- |
Debtors |
Group |
Company |
||||
Note |
2023 |
(As restated) |
2023 |
(As restated) |
|
Trade debtors |
|
|
- |
- |
|
Amounts owed by related parties |
|
|
|
|
|
Other debtors |
|
|
- |
- |
|
Prepayments |
|
|
- |
- |
|
|
|
|
|
Active Plumbing Supplies Holdings Limited
Notes to the Financial Statements for the Year Ended 31 December 2023
Cash and cash equivalents |
Group |
Company |
|||
2023 |
2022 |
2023 |
2022 |
|
Cash on hand |
|
|
- |
- |
Cash at bank |
|
|
|
- |
|
|
|
- |
|
Bank overdrafts |
( |
( |
- |
- |
Cash and cash equivalents in statement of cash flows |
833,319 |
867,735 |
10,557 |
- |
Creditors |
Group |
Company |
||||
Note |
2023 |
(As restated) |
2023 |
2022 |
|
Due within one year |
|||||
Loans and borrowings |
|
|
- |
- |
|
Trade creditors |
|
|
- |
- |
|
Amounts due to related parties |
|
|
- |
- |
|
Social security and other taxes |
|
|
|
- |
|
Other creditors |
|
|
- |
- |
|
Accruals |
|
|
|
|
|
Corporation tax liability |
91,310 |
231,872 |
- |
- |
|
|
|
|
|
||
Due after one year |
|||||
Loans and borrowings |
|
|
- |
- |
Provisions for liabilities |
Group
Deferred tax |
Total |
|
At 1 January 2023 |
|
|
Increase/(decrease) in existing provisions |
|
|
At 31 December 2023 |
|
|
|
Active Plumbing Supplies Holdings Limited
Notes to the Financial Statements for the Year Ended 31 December 2023
Pension and other schemes |
Defined contribution pension scheme
The group operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the group to the scheme and amounted to £
Share capital |
Allotted, called up and fully paid shares
2023 |
2022 |
|||
No. |
£ |
No. |
£ |
|
|
|
1,100 |
|
1,100 |
Loans and borrowings |
Non-current loans and borrowings
Group |
Company |
|||
2023 |
2022 |
2023 |
2022 |
|
Bank borrowings |
|
|
- |
- |
Hire purchase contracts |
|
|
- |
- |
|
|
- |
- |
Current loans and borrowings
Group |
Company |
|||
2023 |
2022 |
2023 |
2022 |
|
Bank borrowings |
|
|
- |
- |
Bank overdrafts |
|
|
- |
- |
Hire purchase contracts |
|
|
- |
- |
|
|
- |
- |
Active Plumbing Supplies Holdings Limited
Notes to the Financial Statements for the Year Ended 31 December 2023
Bank borrowings during the year totalling £78,491 are repayable in less then 2 years. Interest is charged at 3.85% over base and the loans are secured by way of a fixed and floating charge over the assets of the Group.
Other bank borrowings totalling £7,993 are repayable within 5 years. Interest is charged at 3.85% over base and there is no security against the loan amount.
Hire purchase contracts are secured by the asset to which the liability relates, and are repayable within 5 years.
Obligations under leases and hire purchase contracts |
Group
Operating leases
The total of future minimum lease payments is as follows:
2023 |
2022 |
|
Not later than one year |
|
|
Later than one year and not later than five years |
|
|
Later than five years |
|
|
|
|
The amount of non-cancellable operating lease payments recognised as an expense during the year was £
Dividends |
Interim dividends paid
2023 |
2022 |
|||
Interim dividend of £ |
|
|
||
Commitments |
Group
Other financial commitments
The total amount of other financial commitments not provided in the financial statements was £
Active Plumbing Supplies Holdings Limited
Notes to the Financial Statements for the Year Ended 31 December 2023
Analysis of changes in net debt |
Group
At 1 January 2023 |
Financing cash flows |
At 31 December 2023 |
|
Cash and cash equivalents |
|||
Cash |
1,066,553 |
42,754 |
1,109,307 |
Overdrafts |
(198,818) |
(77,170) |
(275,988) |
867,735 |
(34,416) |
833,319 |
|
|
|||
|
( |
|
Related party transactions |
Group
Loans to related parties
2023 |
Key management |
Total |
At start of period |
|
|
Advanced |
|
|
Repaid |
( |
( |
At end of period |
|
|
|
2022 |
Key management |
(As restated) |
Advanced |
|
|
At end of period |
|
|
|
Terms of loans to related parties
Active Plumbing Supplies Holdings Limited
Notes to the Financial Statements for the Year Ended 31 December 2023
Loans from related parties
2023 |
Key management |
Total |
At start of period |
|
|
Advanced |
|
|
Repaid |
( |
( |
At end of period |
|
|
|
2022 |
Key management |
(As restated) |
On acquisition of business combinations |
|
|
Advanced |
|
|
Repaid |
( |
( |
At end of period |
|
|
|
Terms of loans from related parties
Company
Summary of transactions with subsidiaries
Financial instruments |
Group
Categorisation of financial instruments
31 December 2023 |
31 December 2022 |
|
Financial assets measured at fair value through profit or loss |
|
|
Financial liabilities measured at fair value through profit or loss |
( |
( |
Parent and ultimate parent undertaking |
The ultimate controlling party is G Satterly and A Hibbard by virtue of their equity shareholding in Active Plumbing Supplies Holdings Limited.