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REGISTERED NUMBER: 00921619 (England and Wales)















THE PARKSIDE GROUP LIMITED

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

AUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31ST DECEMBER 2023






THE PARKSIDE GROUP LIMITED (REGISTERED NUMBER: 00921619)

CONTENTS OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST DECEMBER 2023










Page

Company Information 1

Strategic Report 2

Report of the Directors 4

Report of the Independent Auditors 6

Statement of Income and Retained Earnings 9

Balance Sheet 10

Cash Flow Statement 11

Notes to the Cash Flow Statement 12

Notes to the Financial Statements 13


THE PARKSIDE GROUP LIMITED

COMPANY INFORMATION
FOR THE YEAR ENDED 31ST DECEMBER 2023







DIRECTORS: S J Jones
M D Hayward
P T Dziurzynski
L Alexander
R Reeve
J Morris


SECRETARY: P T Dziurzynski


REGISTERED OFFICE: Unit 5 The Willow's Business Centre
17 Willow Lane
Mitcham
Surrey
CR4 4NX


REGISTERED NUMBER: 00921619 (England and Wales)


SENIOR STATUTORY AUDITOR: Steven Davies FCA


AUDITORS: Sinclairs Bartrum Lerner
Statutory Auditor
Second Floor
34 Lime Street
London
EC3M 7AT


BANKERS: Barclays Bank PLC
PO Box 95
1 North End
Croydon
CR9 1TN

THE PARKSIDE GROUP LIMITED (REGISTERED NUMBER: 00921619)

STRATEGIC REPORT
FOR THE YEAR ENDED 31ST DECEMBER 2023


The directors present their strategic report for the year ended 31st December 2023.

REVIEW OF BUSINESS
The business has faced a challenging period during 2023. Despite the anticipated growth starting to be shown in the early part of 2023, Q4 was particularly difficult with a sharp decline in activities in our market sector, which led to a much lower than anticipated level of sales. This had a major impact on profitability for this period which led to the overall disappointing result for the year. 2024 appears to continue to show subdued trading during the first half of 2024 with a slow recovery during the second half of the year. The overall market sentiment does show some expectation of recovery as we head into 2025 with many customers reporting increasing levels of activity. The project bank and levels of enquiries suggest that the sector should show some improvement in the next 12-18 months. However, UK elections, international instability, and general economic uncertainty, could all have a negative impact on market conditions. Material costs have shown slight increases in 2023 and this lower level of inflationary pressure is expected to remain in 2024. The lower gross margin in 2023 has also had an impact on profitability and the aim will be to improve this situation during 2024. The company has increased focus on cost control and reducing overheads to off-set the impact of lower sales and margin. This work will continue in 2024 to ensure that the business returns to profitability as quickly as possible. Supply lead times have been consistently lower during 2023 which has allowed us to manage stock more effectively. We will continue to monitor this during 2024 to ensure that we maintain the service levels required by our customers.

Following the sustained period of market turbulence of recent years, the company is focused on ensuring that they have a lean and cost-effective organisation to support recovery during 2024 and beyond. Our development of new, innovative, design solutions for the construction façade market should start to show returns during the later stages of 2024 and into 2025. These actions, along with an improving project bank and an anticipated general strengthening of the UK economy, will ensure that the business returns to its previous levels of turnover and profitability.


The key financial performance indicators are as follows:

2023 2022 2021 2020
Turnover ('000's) £17,867 £18,174 £16,042 £15,227
Gross profit margin 35.8% 36.18% 39.15% 39.17%
Net profit/(loss) before tax ('000's) (£447 ) (£383 ) £400 £485
Liquidity ratio (current assets:current liabilities) 1.41:1 1.42:1 1.54:1 1.60:1
Stock turnover (days) 188 206 211 205

PRINCIPAL RISKS AND UNCERTAINTIES
The board of directors evaluate the risks and uncertainties faced by the company. The principal risks faced by the company are:

Price risk, which largely arises from the fluctuation in commodity prices and foreign exchange rates. The company's products are chiefly comprised of aluminium, the price of which is subject to some volatility. Many supplies sourced from abroad are denominated in foreign currencies which are subject to fluctuation against the pound. The directors closely monitor the markets and use forward contracts where necessary to mitigate the risk of adverse price movement.

Credit risk, which is the risk that a customer may not fully discharge its debt. Customers' credit accounts are operated within predetermined parameters. The company has effective systems to closely monitor its relationship with its customers to minimise its exposure to credit risk.

Liquidity risk, which is the risk that the company may be unable to meet its liabilities as they fall due. The company generates sufficient cash from operations to enable it to comfortably satisfy its suppliers' terms of business.

The effect of the UK leaving the European Union. The impact of this decision continues to impact the industry through staffing issues and supplier lead-times.


THE PARKSIDE GROUP LIMITED (REGISTERED NUMBER: 00921619)

STRATEGIC REPORT
FOR THE YEAR ENDED 31ST DECEMBER 2023

FUTURE DEVELOPMENTS
Sales development and new product development will continue to be the key strategic focus for the company going forward. The company will continue to invest in the training and personal development of its key staff in order to provide a robust organisation which is well positioned to deal with the challenges and anticipated demands of our markets.

ON BEHALF OF THE BOARD:





P T Dziurzynski - Secretary


12th September 2024

THE PARKSIDE GROUP LIMITED (REGISTERED NUMBER: 00921619)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31ST DECEMBER 2023


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

PRINCIPAL ACTIVITY
The principal activities of the company in the year under review continued to be those of suppliers of aluminium and composite fenestration and door systems and door hardware.

DIVIDENDS
No dividends will be distributed for the year ended 31st December 2023.

FUTURE DEVELOPMENTS
A summary of future developments is included in the strategic report.

DIRECTORS
The directors shown below have held office during the whole of the period from 1st January 2023 to the date of this report.

S J Jones
M D Hayward
P T Dziurzynski
L Alexander
R Reeve

Other changes in directors holding office are as follows:

B McDonald - resigned 11th August 2023

J Morris was appointed as a director after 31st December 2023 but prior to the date of this report.

DIRECTORS' INDEMNITIES
The company has made contributions to a directors' liability insurance policy during the year.

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the 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 of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-select suitable accounting policies and then apply them consistently;
-make judgements and accounting estimates that are reasonable and prudent;
-prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

THE PARKSIDE GROUP LIMITED (REGISTERED NUMBER: 00921619)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31ST DECEMBER 2023


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 company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

ON BEHALF OF THE BOARD:



P T Dziurzynski - Secretary


12th September 2024

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
THE PARKSIDE GROUP LIMITED


Opinion
We have audited the financial statements of The Parkside Group Limited (the 'company') for the year ended 31st December 2023 which comprise the Statement of Income and Retained Earnings, Balance Sheet, Cash Flow Statement and Notes to the 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 company's affairs as at 31st December 2023 and of its loss for the year then ended;
-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the 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 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 Strategic Report and the Report of the Directors, 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 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 Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the 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, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
THE PARKSIDE GROUP LIMITED


Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page four, 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 company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

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:

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We identified and assessed the risks of material misstatement of the financial statements from irregularities, whether due to fraud or error, and discussed these between our audit team members. We then designed and performed audit procedures responsive to those risks, including obtaining audit evidence sufficient and appropriate to provide a basis for our opinion.

We design our procedures so as to obtain sufficient appropriate audit evidence that the financial statements are not materially misstated due to non-compliance with laws and regulations or due to fraud or error.

We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations - this responsibility lies with management with the oversight of the Directors.

Based on our understanding of the Company and discussions with management and directors we identified financial reporting standards and Companies Act 2006, as applied to Companies, as having a direct effect on the amounts and disclosures in the financial statements.

As part of the engagement team discussion about how and where the Company's financial statements may be materially misstated due to fraud, we did not identify any areas with an increased risk of fraud.

Our audit procedures included:
- completing a risk-assessment process during our planning for this audit that specifically considered the risk of fraud;
- enquiry of management about the Company's policies, procedures and related controls regarding compliance with laws and regulations and if there are any known instances of non-compliance;
- examining supporting documents for all material balances, transactions and disclosures;
- enquiry of management, about litigation and claims and inspection of relevant correspondence;
- analytical procedures to identify any unusual or unexpected relationships;
- specific audit testing on and review of areas that could be subject to management override of controls and potential bias, most notably around the key judgments and estimates, including the carrying value of accruals, provisions, recoverability of trade debtors and revenue recognition;
- considering management override of controls outside of the normal operating cycles including testing the appropriateness of journal entries recorded in the general ledger and other adjustments made in the preparation of the financial statements including evaluating the business rationale of significant transactions, outside the normal course of business.

Owing to the inherent limitations of an audit, there is an unavoidable risk that some material misstatements of the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISAs (UK).

The potential effects of inherent limitations are particularly significant in the case of misstatement resulting from fraud because fraud may involve sophisticated and carefully organised schemes designed to conceal it, including deliberate failure to record transactions, collusion or intentional misrepresentations being made to us.

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
THE PARKSIDE GROUP 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 Davies FCA (Senior Statutory Auditor)
for and on behalf of Sinclairs Bartrum Lerner
Statutory Auditor
Second Floor
34 Lime Street
London
EC3M 7AT

12th September 2024

THE PARKSIDE GROUP LIMITED (REGISTERED NUMBER: 00921619)

STATEMENT OF INCOME AND
RETAINED EARNINGS
FOR THE YEAR ENDED 31ST DECEMBER 2023

2023 2022
Notes £    £    £    £   

TURNOVER 3 17,866,795 18,174,990

Cost of sales 11,470,361 11,599,156
GROSS PROFIT 6,396,434 6,575,834

Distribution costs 1,771,951 2,028,707
Administrative expenses 5,072,034 4,930,853
6,843,985 6,959,560
OPERATING LOSS 5 (447,551 ) (383,726 )

Interest receivable and similar income 189 -
LOSS BEFORE TAXATION (447,362 ) (383,726 )

Tax on loss 6 (55,825 ) (150,694 )
LOSS FOR THE FINANCIAL YEAR (391,537 ) (233,032 )

Retained earnings at beginning of year 3,330,599 3,563,631

RETAINED EARNINGS AT END OF YEAR 2,939,062 3,330,599

THE PARKSIDE GROUP LIMITED (REGISTERED NUMBER: 00921619)

BALANCE SHEET
31ST DECEMBER 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 7 174,057 237,872

CURRENT ASSETS
Stocks 8 5,887,461 6,532,752
Debtors 9 3,509,967 3,759,226
Cash at bank 98,236 75,282
9,495,664 10,367,260
CREDITORS
Amounts falling due within one year 10 6,682,659 7,226,533
NET CURRENT ASSETS 2,813,005 3,140,727
TOTAL ASSETS LESS CURRENT LIABILITIES 2,987,062 3,378,599

CAPITAL AND RESERVES
Called up share capital 15 48,000 48,000
Retained earnings 16 2,939,062 3,330,599
SHAREHOLDERS' FUNDS 2,987,062 3,378,599

The financial statements were approved and authorised for issue by the Board of Directors and authorised for issue on 12th September 2024 and were signed on its behalf by:





P T Dziurzynski - Director


THE PARKSIDE GROUP LIMITED (REGISTERED NUMBER: 00921619)

CASH FLOW STATEMENT
FOR THE YEAR ENDED 31ST DECEMBER 2023

2023 2022
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 885,489 (446,765 )
Net cash from operating activities 885,489 (446,765 )

Cash flows from investing activities
Purchase of tangible fixed assets - (2,650 )
Sale of tangible fixed assets 400 2,750
Interest received 189 -
Net cash from investing activities 589 100

Cash flows from financing activities
Loan repayments in year (475,494 ) (19,253 )
Increase/ (decrease) in funds advanced (387,630 ) 617,078
Net cash from financing activities (863,124 ) 597,825

Increase in cash and cash equivalents 22,954 151,160
Cash and cash equivalents at beginning of year 2 75,282 (75,878 )

Cash and cash equivalents at end of year 2 98,236 75,282

THE PARKSIDE GROUP LIMITED (REGISTERED NUMBER: 00921619)

NOTES TO THE CASH FLOW STATEMENT
FOR THE YEAR ENDED 31ST DECEMBER 2023


1. RECONCILIATION OF LOSS BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS
2023 2022
£    £   
Loss before taxation (447,362 ) (383,726 )
Depreciation charges 63,399 73,965
Loss on disposal of fixed assets 16 2,494
Finance income (189 ) -
(384,136 ) (307,267 )
Decrease/(increase) in stocks 645,291 (893,459 )
Decrease in trade and other debtors 699,893 156,503
(Decrease)/increase in trade and other creditors (75,559 ) 597,458
Cash generated from operations 885,489 (446,765 )

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 31st December 2023
31/12/23 1/1/23
£    £   
Cash and cash equivalents 98,236 75,282
Year ended 31st December 2022
31/12/22 1/1/22
£    £   
Cash and cash equivalents 75,282 -
Bank overdrafts - (75,878 )
75,282 (75,878 )


3. ANALYSIS OF CHANGES IN NET DEBT

At 1/1/23 Cash flow At 31/12/23
£    £    £   
Net cash
Cash at bank 75,282 22,954 98,236
75,282 22,954 98,236
Debt
Debts falling due within 1 year (3,994,465 ) 387,630 (3,606,835 )
(3,994,465 ) 387,630 (3,606,835 )
Total (3,919,183 ) 410,584 (3,508,599 )

THE PARKSIDE GROUP LIMITED (REGISTERED NUMBER: 00921619)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST DECEMBER 2023


1. STATUTORY INFORMATION

The Parkside Group 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 Company Information page.

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


The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all periods presented unless otherwise stated.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 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.

Significant judgements and estimates
Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Significant judgements and sources of estimation uncertainty:
The company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of the assets and liabilities within the next financial year are addressed below.

(a) Useful economic lives of assets
The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on future investments, economic utilisation and the physical condition of the assets.

(b) Stock provision
The company supplies aluminium and composite fenestration and door systems and door hardware and is subject to changing customer demands and market trends. As a result it is necessary to consider the recoverability of the cost of stock and the associated provisioning required. When calculating the stock provision, management considers the nature and condition of the stock, as well as applying assumptions around anticipated saleability of stock held.

(c) Impairment of debtors
The company makes an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade and other debtors, management considers factors including the current credit rating of the debtor, the ageing profile of debtors and historical experience.

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

Revenue recognition
Revenue is recognised when the risks and rewards of ownership have substantively transferred to the customer, regardless of whether legal title has transferred. This condition is normally met when the goods have been delivered or upon the performance of services.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Improvements to property - over the duration of the lease
Plant and machinery - 20% on reducing balance
Fixtures and fittings - 25% reducing balance & 25% straight line
Motor vehicles - 25% on reducing balance

Tangible assets are measured at cost less accumulated depreciation and any accumulated impairment losses.

THE PARKSIDE GROUP LIMITED (REGISTERED NUMBER: 00921619)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST DECEMBER 2023


2. ACCOUNTING POLICIES - continued

Stocks
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Stock of punching tools is valued on the basis of direct costs plus attributable overheads based on normal activity levels. Provision is made for any foreseeable losses where appropriate. No element of profit is included in the valuation of stock of punching tools.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

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.

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.

Foreign currencies
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the company in a independently administered fund. Contributions payable for the year are charged in the profit and loss account.

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

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

THE PARKSIDE GROUP LIMITED (REGISTERED NUMBER: 00921619)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST DECEMBER 2023


2. ACCOUNTING POLICIES - continued

Going concern
The company's business activities, together with the factors likely to affect its future development, performance and position are set out in the Business Review in the Strategic report.

As explained in the Strategic Report, the business has faced a challenging period during 2023. Despite the anticipated growth starting to be shown in the early part of 2023, Q4 was particularly difficult with a sharp decline in activities in our market sector, which led to a much lower than anticipated level of sales. This had a major impact on profitability for this period which led to the overall disappointing result for the year.

2024 continues to show subdued trading during the first half of 2024 with a slow recovery during the second half of the year. The overall market sentiment does show some expectation of recovery as we head into 2025 with many customers reporting increasing levels of activity. The project bank and levels of enquiries suggest that the sector should show some improvement in the next 12-18 months.

However, UK elections, international instability, and general economic uncertainty, could all have a negative impact on market conditions. Material costs have shown slight increases in 2023 and this lower level of inflationary pressure is expected to remain in 2024. The lower gross margin in 2023 has also had an impact on profitability and the aim will be to improve this situation during 2024. The company has increased focus on cost control and reducing overheads to off-set the impact of lower sales and margin.

Based on the actual trading results in the current year, the directors believe that the company will break even in the year to 31 December 2024.

As part of the directors' assessment of going concern they have prepared detailed cash flow and profit and loss forecasts for the 12 months from the date of approval of these accounts. These forecasts have been prepared on an appropriate basis, taking into account the current difficult economic conditions. The directors are forecasting that the company will make a profit in the year to 31 December 2025.

The directors believe that the company can operate within the level of its current bank facility and the directors believe that the Company will continue to have its bank's support. The directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future.

For these reasons, the directors continue to adopt the going concern basis in preparing the annual report and financial statements.

3. TURNOVER

The turnover and loss before taxation are attributable to the one principal activity of the company.

An analysis of turnover by class of business is given below:

2023 2022
£    £   
Sales of goods 17,866,795 18,174,990
17,866,795 18,174,990

Turnover attributable to various geographical markets has not been disclosed as in the opinion of the directors, its disclosure would be seriously prejudicial to the interests of the company.

4. EMPLOYEES AND DIRECTORS
2023 2022
£    £   
Wages and salaries 3,003,529 3,093,054
Social security costs 332,478 354,057
Other pension costs 108,258 107,751
3,444,265 3,554,862

THE PARKSIDE GROUP LIMITED (REGISTERED NUMBER: 00921619)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST DECEMBER 2023


4. EMPLOYEES AND DIRECTORS - continued

The average number of employees during the year was as follows:
2023 2022

Warehouse and delivery 19 17
Selling and administration 43 54
62 71

2023 2022
£    £   
Directors' remuneration 653,516 627,488
Directors' pension contributions to money purchase schemes 31,181 30,493

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

Money purchase schemes 6 7

Information regarding the highest paid director is as follows:
2023 2022
£    £   
Emoluments etc 229,685 223,340
Pension contributions to money purchase schemes 10,000 10,000

5. OPERATING LOSS

The operating loss is stated after charging:

2023 2022
£    £   
Depreciation - owned assets 63,399 73,965
Loss on disposal of fixed assets 16 2,494
Auditors' remuneration 22,500 25,500
Foreign exchange differences 50,187 55,477
Operating leases - properties 717,035 724,038

6. TAXATION

Analysis of the tax credit
The tax credit on the loss for the year was as follows:
2023 2022
£    £   
Current tax:
UK corporation tax (119,562 ) -

Deferred tax 63,737 (150,694 )
Tax on loss (55,825 ) (150,694 )

THE PARKSIDE GROUP LIMITED (REGISTERED NUMBER: 00921619)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST DECEMBER 2023


6. TAXATION - continued

Reconciliation of total tax 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:

2023 2022
£    £   
Loss before tax (447,362 ) (383,726 )
Loss multiplied by the standard rate of corporation tax in the UK of 23.500% (2022
- 19%)

(105,130

)

(72,908

)

Effects of:
Expenses not deductible for tax purposes 3,207 2,440
Depreciation in excess of capital allowances 12,969 11,954
Enhanced R&D allowance - (57,209 )
Loss relief claimed (44 ) -
Losses carried forward 44,277 115,723
Deferred tax 63,737 (150,694 )
R&D costs surrendered in excess of tax credit received 2,403 -
R&D tax credit received re prior year (77,244 ) -
Total tax credit (55,825 ) (150,694 )

7. TANGIBLE FIXED ASSETS
Improvements Fixtures
to Plant and and Motor
property machinery fittings vehicles Totals
£    £    £    £    £   
COST
At 1st January 2023 720,511 1,034,571 1,436,614 21,000 3,212,696
Disposals - - - (21,000 ) (21,000 )
At 31st December 2023 720,511 1,034,571 1,436,614 - 3,191,696
DEPRECIATION
At 1st January 2023 720,100 868,118 1,366,105 20,501 2,974,824
Charge for year 411 33,291 29,614 83 63,399
Eliminated on disposal - - - (20,584 ) (20,584 )
At 31st December 2023 720,511 901,409 1,395,719 - 3,017,639
NET BOOK VALUE
At 31st December 2023 - 133,162 40,895 - 174,057
At 31st December 2022 411 166,453 70,509 499 237,872

8. STOCKS
2023 2022
£    £   
Raw materials and consumables 5,887,461 6,532,752

THE PARKSIDE GROUP LIMITED (REGISTERED NUMBER: 00921619)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST DECEMBER 2023


9. DEBTORS
2023 2022
£    £   
Amounts falling due within one year:
Trade debtors 2,577,095 3,307,423
Amounts owed by group undertakings 419,753 -
Corporation tax recoverable 94,618 -
Prepayments and accrued income 360,158 329,723
3,451,624 3,637,146

Amounts falling due after more than one year:
Deferred tax asset 58,343 122,080

Aggregate amounts 3,509,967 3,759,226

10. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Bank loans and overdrafts (see note 11) 3,606,835 3,994,465
Trade creditors 2,605,653 2,544,018
Amounts owed to group undertakings - 55,741
Tax - 24,944
PAYE and NIC taxes 88,015 88,752
VAT 120,752 254,147
Other creditors 105,132 106,189
Accruals and deferred income 156,272 158,277
6,682,659 7,226,533

11. LOANS

An analysis of the maturity of loans is given below:

2023 2022
£    £   
Amounts falling due within one year or on demand:
Asset based lending facility 3,606,835 3,994,465

12. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:
2023 2022
£    £   
Within one year 1,163,251 755,482
Between one and five years 3,432,249 927,652
In more than five years 1,486,951 -
6,082,451 1,683,134

THE PARKSIDE GROUP LIMITED (REGISTERED NUMBER: 00921619)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST DECEMBER 2023


13. SECURED DEBTS

The following secured debts are included within creditors:

2023 2022
£    £   
Asset based lending facility 3,606,834 3,994,465

The asset based finance facility is secured by a fixed and floating charge over the assets of the company and its parent, The Parkside Group (Holdings) Limited.

14. DEFERRED TAX
£   
Balance at 1st January 2023 (122,080 )
Accelerated capital allowances
Unrelieved losses 63,737
Balance at 31st December 2023 (58,343 )

15. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: £    £   
48,000 Ordinary £1 48,000 48,000

16. RESERVES
Retained
earnings
£   

At 1st January 2023 3,330,599
Deficit for the year (391,537 )
At 31st December 2023 2,939,062

17. RELATED PARTY DISCLOSURES

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.

Mr P T Dziurzynski, Mr S Jones and Mr M Hayward are directors of the parent company.

The Parkside Group (Holdings) Limited is regarded by the directors as being the company's ultimate parent company.

18. CONTROL

The company is controlled by Mr P T Dziurzynski, who is a director and majority shareholder of the parent company, The Parkside Group (Holdings) Limited.