REGISTERED NUMBER: |
THE PARKSIDE GROUP LIMITED |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
AUDITED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
REGISTERED NUMBER: |
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: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
SENIOR STATUTORY AUDITOR: |
AUDITORS: |
Statutory Auditor |
Second Floor |
34 Lime Street |
London |
EC3M 7AT |
BANKERS: |
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: |
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. |
Other changes in directors holding office are as follows: |
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: |
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. |
for and on behalf of |
Statutory Auditor |
Second Floor |
34 Lime Street |
London |
EC3M 7AT |
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 |
Cost of sales |
GROSS PROFIT |
Distribution costs |
Administrative expenses |
6,843,985 | 6,959,560 |
OPERATING LOSS | 5 | ( |
) | ( |
) |
Interest receivable and similar income |
LOSS BEFORE TAXATION | ( |
) | ( |
) |
Tax on loss | 6 | ( |
) | ( |
) |
LOSS FOR THE FINANCIAL YEAR | ( |
) | ( |
) |
Retained earnings at beginning of year |
RETAINED EARNINGS AT END OF YEAR |
THE PARKSIDE GROUP LIMITED (REGISTERED NUMBER: 00921619) |
BALANCE SHEET |
31ST DECEMBER 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 7 |
CURRENT ASSETS |
Stocks | 8 |
Debtors | 9 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 10 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CAPITAL AND RESERVES |
Called up share capital | 15 |
Retained earnings | 16 |
SHAREHOLDERS' FUNDS |
The financial statements were approved and authorised for issue by the Board of Directors and authorised for issue on |
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 | ( |
) |
Net cash from operating activities | ( |
) |
Cash flows from investing activities |
Purchase of tangible fixed assets | ( |
) |
Sale of tangible fixed assets |
Interest received |
Net cash from investing activities |
Cash flows from financing activities |
Loan repayments in year | ( |
) | ( |
) |
Increase/ (decrease) | in funds advanced | (387,630 | ) | 617,078 |
Net cash from financing activities | ( |
) |
Increase in cash and cash equivalents |
Cash and cash equivalents at beginning of year | 2 | (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 | ( |
) | ( |
) |
Depreciation charges |
Loss on disposal of fixed assets |
Finance income | (189 | ) | - |
(384,136 | ) | (307,267 | ) |
Decrease/(increase) in stocks | ( |
) |
Decrease in trade and other debtors |
(Decrease)/increase in trade and other creditors | ( |
) |
Cash generated from operations | ( |
) |
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 | ( |
) |
75,282 | (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 | 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 |
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 |
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 |
Improvements to property | - |
Plant and machinery | - |
Fixtures and fittings | - |
Motor vehicles | - |
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 |
£ | £ |
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 |
Social security costs |
Other pension costs |
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 |
2023 | 2022 |
£ | £ |
Directors' remuneration |
Directors' pension contributions to money purchase schemes |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes |
Information regarding the highest paid director is as follows: |
2023 | 2022 |
£ | £ |
Emoluments etc |
Pension contributions to money purchase schemes |
5. | OPERATING LOSS |
The operating loss is stated after charging: |
2023 | 2022 |
£ | £ |
Depreciation - owned assets |
Loss on disposal of fixed assets |
Auditors' remuneration |
Foreign exchange differences |
Operating leases - properties |
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 | ( |
) |
Deferred tax | ( |
) |
Tax on loss | ( |
) | ( |
) |
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 | ( |
) | ( |
) |
Loss multiplied by the standard rate of corporation tax in the UK of - |
( |
) |
( |
) |
Effects of: |
Expenses not deductible for tax purposes |
Depreciation in excess of capital allowances |
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 |
Disposals | ( |
) | ( |
) |
At 31st December 2023 |
DEPRECIATION |
At 1st January 2023 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) |
At 31st December 2023 |
NET BOOK VALUE |
At 31st December 2023 |
At 31st December 2022 |
8. | STOCKS |
2023 | 2022 |
£ | £ |
Raw materials and consumables |
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 |
Amounts owed by group undertakings |
Corporation tax recoverable |
Prepayments and accrued income |
Amounts falling due after more than one year: |
Deferred tax asset | 58,343 | 122,080 |
Aggregate amounts |
10. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£ | £ |
Bank loans and overdrafts (see note 11) |
Trade creditors |
Amounts owed to group undertakings |
Tax |
PAYE and NIC taxes |
VAT | 120,752 | 254,147 |
Other creditors |
Accruals and deferred income |
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 |
Between one and five years |
In more than five years |
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 | ( |
) |
Accelerated capital allowances |
Unrelieved losses | 63,737 |
Balance at 31st December 2023 | ( |
) |
15. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
Ordinary | £1 | 48,000 | 48,000 |
16. | RESERVES |
Retained |
earnings |
£ |
At 1st January 2023 |
Deficit for the year | ( |
) |
At 31st December 2023 |
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. |