REGISTERED NUMBER: 09595339 (England and Wales) |
THE PARKSIDE GROUP (HOLDINGS) LIMITED |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
AUDITED |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
REGISTERED NUMBER: 09595339 (England and Wales) |
THE PARKSIDE GROUP (HOLDINGS) LIMITED |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
AUDITED |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
THE PARKSIDE GROUP (HOLDINGS) LIMITED (REGISTERED NUMBER: 09595339) |
CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 3 |
Report of the Independent Auditors | 4 |
Consolidated Statement of Income and Retained Earnings | 8 |
Consolidated Balance Sheet | 9 |
Company Balance Sheet | 10 |
Consolidated Cash Flow Statement | 11 |
Notes to the Consolidated Cash Flow Statement | 12 |
Notes to the Consolidated Financial Statements | 13 |
THE PARKSIDE GROUP (HOLDINGS) LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
SENIOR STATUTORY AUDITOR: | Steven Davies FCA |
AUDITORS: |
Statutory Auditor |
Second Floor |
34 Lime Street |
London |
EC3M 7AT |
THE PARKSIDE GROUP (HOLDINGS) LIMITED (REGISTERED NUMBER: 09595339) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
The directors present their strategic report of the company and the group for the year ended 31st December 2023. |
REVIEW OF BUSINESS |
The Holding company continues to support the long term growth plans of The Parkside Group Limited. It will enable further investment within the group whilst maintaining the clear target to reduce debt levels following the successful MBO. |
The key financial performance indicators are as follows: |
2023 | 2022 | 2021 | 2020 |
Turnover ('000's) | £17,866 | £18,174 | £16,042 | £15,227 |
Gross profit margin | 35.80% | 36.18% | 39.15% | 36.17% |
Net profit/(loss) before tax ('000's) | (£662 | ) | (£603 | ) | £187 | £273 |
Liquidity ratio (current assets:current liabilities) | 1.34:1 | 1.42:1 | 1.44:1 | 1.48:1 |
Stock turnover (days) | 188 | 206 | 211 | 205 |
Gearing ratio | 1.69:1 | 1.63:1 | 1.26:1 | 1.16:1 |
PRINCIPAL RISKS AND UNCERTAINTIES |
The board of directors evaluate the risks and uncertainties faced by the group. The principal risks faced by the group are: |
Price risk, which largely arises from the fluctuation in commodity prices and foreign exchange rates. The group'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 group 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 group may be unable to meet its liabilities as they fall due. The group 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. |
FUTURE DEVELOPMENTS |
Sales development and new product development will continue to be the key strategic focus for the group going forward. The group 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 (HOLDINGS) LIMITED (REGISTERED NUMBER: 09595339) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
The directors present their report with the financial statements of the company and the group for the year ended 31st December 2023. |
PRINCIPAL ACTIVITY |
The principal activities of the group in the year under review continued to be those of suppliers of aluminium and composite fenestration and door systems hardware. |
DIVIDENDS |
No dividends will be distributed for the year ended 31st December 2023. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1st January 2023 to the date of this report. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Group Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
AUDITORS |
The auditors, Sinclairs Bartrum Lerner, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
THE PARKSIDE GROUP (HOLDINGS) LIMITED (REGISTERED NUMBER: 09595339) |
Opinion |
We have audited the financial statements of The Parkside Group (Holdings) Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31st December 2023 which comprise the Consolidated Statement of Income and Retained Earnings, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
In our opinion the financial statements: |
- | give a true and fair view of the state of the group's and of the parent company affairs as at 31st December 2023 and of the group's 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 group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
Conclusions relating to going concern |
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report 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 Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
THE PARKSIDE GROUP (HOLDINGS) LIMITED (REGISTERED NUMBER: 09595339) |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the parent company financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page three, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
In preparing the financial statements, the directors are responsible for assessing the group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
THE PARKSIDE GROUP (HOLDINGS) LIMITED (REGISTERED NUMBER: 09595339) |
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 (HOLDINGS) LIMITED (REGISTERED NUMBER: 09595339) |
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 (HOLDINGS) LIMITED (REGISTERED NUMBER: 09595339) |
CONSOLIDATED |
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 | 5,274,736 | 5,133,621 |
7,046,687 | 7,162,328 |
OPERATING LOSS | 5 | (650,253 | ) | (586,494 | ) |
Interest receivable and similar income | 189 | - |
(650,064 | ) | (586,494 | ) |
Interest payable and similar expenses | 6 | 12,460 | 16,667 |
LOSS BEFORE TAXATION | (662,524 | ) | (603,161 | ) |
Tax on loss | 7 | (55,825 | ) | (150,694 | ) |
LOSS FOR THE FINANCIAL YEAR | ( |
) | ( |
) |
Retained earnings at beginning of year | 3,057,679 | 3,510,146 |
RETAINED EARNINGS FOR THE GROUP AT END OF YEAR |
2,450,980 |
3,057,679 |
Loss attributable to: |
Owners of the parent | (606,699 | ) | (452,467 | ) |
THE PARKSIDE GROUP (HOLDINGS) LIMITED (REGISTERED NUMBER: 09595339) |
CONSOLIDATED BALANCE SHEET |
31ST DECEMBER 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 9 | 296,508 | 494,176 |
Tangible assets | 10 | 174,057 | 237,872 |
Investments | 11 | 134,895 | 134,895 |
605,460 | 866,943 |
CURRENT ASSETS |
Stocks | 12 | 5,887,461 | 6,532,752 |
Debtors | 13 | 3,092,683 | 3,759,226 |
Cash at bank | 98,235 | 75,282 |
9,078,379 | 10,367,260 |
CREDITORS |
Amounts falling due within one year | 14 | 6,732,659 | 7,676,324 |
NET CURRENT ASSETS | 2,345,720 | 2,690,936 |
TOTAL ASSETS LESS CURRENT LIABILITIES | 2,951,180 | 3,557,879 |
CREDITORS |
Amounts falling due after more than one year | 15 | 500,000 | 500,000 |
NET ASSETS | 2,451,180 | 3,057,879 |
CAPITAL AND RESERVES |
Called up share capital | 20 | 200 | 200 |
Retained earnings | 21 | 2,450,980 | 3,057,679 |
SHAREHOLDERS' FUNDS | 2,451,180 | 3,057,879 |
The financial statements were approved 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 (HOLDINGS) LIMITED (REGISTERED NUMBER: 09595339) |
COMPANY BALANCE SHEET |
31ST DECEMBER 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 9 |
Tangible assets | 10 |
Investments | 11 |
CURRENT ASSETS |
Debtors | 13 |
CREDITORS |
Amounts falling due within one year | 14 |
NET CURRENT LIABILITIES | ( |
) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year | 15 |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 20 |
Retained earnings | 21 |
SHAREHOLDERS' FUNDS |
Company's loss for the financial year | (1,395,973 | ) | (3,084,682 | ) |
The financial statements were approved by the Board of Directors and authorised for issue on |
THE PARKSIDE GROUP (HOLDINGS) LIMITED (REGISTERED NUMBER: 09595339) |
CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
2023 | 2022 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 880,454 | (451,867 | ) |
Net cash from operating activities | 880,454 | (451,867 | ) |
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 | (450,000 | ) | - |
Increase/(decrease) in financing | (387,630 | ) | 617,078 |
Loan interest paid | (20,460 | ) | (14,153 | ) |
Net cash from financing activities | (858,090 | ) | 602,925 |
Increase in cash and cash equivalents | 22,953 | 151,158 |
Cash and cash equivalents at beginning of year | 2 | 75,282 | (75,876 | ) |
Cash and cash equivalents at end of year | 2 | 98,235 | 75,282 |
THE PARKSIDE GROUP (HOLDINGS) LIMITED (REGISTERED NUMBER: 09595339) |
NOTES TO THE CONSOLIDATED 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 | (662,524 | ) | (603,161 | ) |
Depreciation charges | 261,067 | 271,633 |
Loss on disposal of fixed assets | 16 | 2,494 |
Finance costs | 12,460 | 16,667 |
Finance income | (189 | ) | - |
(389,170 | ) | (312,367 | ) |
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 | (75,560 | ) | 597,456 |
Cash generated from operations | 880,454 | (451,867 | ) |
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 | 98,235 | 75,282 |
Year ended 31st December 2022 |
31/12/22 | 1/1/22 |
£ | £ |
Cash and cash equivalents | 75,282 | - |
Bank overdrafts | - | (75,876 | ) |
75,282 | (75,876 | ) |
3. | ANALYSIS OF CHANGES IN NET DEBT |
At 1/1/23 | Cash flow | At 31/12/23 |
£ | £ | £ |
Net cash |
Cash at bank | 75,282 | 22,953 | 98,235 |
75,282 | 22,953 | 98,235 |
Debt |
Debts falling due within 1 year | (4,494,465 | ) | 837,630 | (3,656,835 | ) |
Debts falling due after 1 year | (500,000 | ) | - | (500,000 | ) |
(4,994,465 | ) | 837,630 | (4,156,835 | ) |
Total | (4,919,183 | ) | 860,583 | (4,058,600 | ) |
THE PARKSIDE GROUP (HOLDINGS) LIMITED (REGISTERED NUMBER: 09595339) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
1. | STATUTORY INFORMATION |
The Parkside Group (Holdings) 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 |
Basis of consolidation |
The Group financial statements incorporate the results of The Parkside Group (Holdings) Limited and all its subsidiaries. The accounting policies of subsidiaries are consistent with the policies adopted by the Group for the purposes of the Group's consolidation. |
The results of the subsidiary undertakings are included in the consolidated profit and loss account from the date the respective interests were acquired. The Parkside Group (Holdings) Limited has taken advantage of the statutory exemption from presenting its own profit and loss account. |
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. |
Accounting estimates and assumptions |
The group 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 group 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 group 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. |
THE PARKSIDE GROUP (HOLDINGS) LIMITED (REGISTERED NUMBER: 09595339) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
2. | ACCOUNTING POLICIES - continued |
Goodwill |
Goodwill, being the amount paid in connection with the acquisition of a business in 2015, is being amortised |
evenly over its useful life of ten years. |
Tangible fixed assets |
Improvements to property | - |
Plant and machinery | - |
Fixtures and fittings | - |
Motor vehicles | - |
Tangible fixed assets are initially measured at cost. |
Investments in subsidiaries |
Investments held as fixed assets are stated at cost less impairment. Those held as current assets are stated at the lower of cost and net realisable value. |
Dividends are brought to account in the profit and loss account when received. |
Stocks |
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
Stocks are measured on the FIFO (first in first out) basis. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, 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 group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
Operating lease commitments |
Rentals paid under operating leases are charged to the profit and loss account on a straight line basis over the period of the lease. |
THE PARKSIDE GROUP (HOLDINGS) LIMITED (REGISTERED NUMBER: 09595339) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
2. | ACCOUNTING POLICIES - continued |
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. |
Derivative financial instruments |
Derivative financial instruments are recognised at fair value using a valuation technique with any gains or losses being reported in profit or loss. Outstanding derivatives at reporting date are included under appropriate format heading depending on the nature of the derivative. |
3. | TURNOVER |
The turnover and loss before taxation are attributable to the one principal activity of the group. |
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 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 | 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 | 3 | 3 |
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 |
THE PARKSIDE GROUP (HOLDINGS) LIMITED (REGISTERED NUMBER: 09595339) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
5. | OPERATING LOSS |
2021 | 2020 |
£ | £ |
Depreciation - owned assets | 87,189 | 55,585 |
Goodwill amortisation | 197,668 | 197,668 |
Auditors' remuneration | 31,500 | 20,000 |
Foreign exchange differences | 676 | 22,703 |
Operating leases - properties | 654,013 | 652,001 |
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2023 | 2022 |
£ | £ |
Interest payable | 12,421 | 16,667 |
Other interest payable | 39 | - |
12,460 | 16,667 |
7. | 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 | ) |
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 | (662,524 | ) | (603,161 | ) |
Loss multiplied by the standard rate of corporation tax in the UK of 23.500 % (2022 - 19 %) |
(155,693 |
) |
(114,601 |
) |
Effects of: |
Expenses not deductible for tax purposes | 4,346 | 3,361 |
Depreciation in excess of capital allowances | 12,969 | 11,954 |
Enhanced R&D allowance | - | (57,209 | ) |
Deferred tax | 63,737 | (150,694 | ) |
Goodwill disallowed | 46,452 | 37,557 |
Losses carried forward | 47,249 | 118,938 |
Loss relief claimed | (44 | ) | - |
R&D costs surrendered in excess of tax credit receivable | 2,403 | - |
R&D tax credit re prior period | (77,244 | ) | - |
Total tax credit | (55,825 | ) | (150,694 | ) |
THE PARKSIDE GROUP (HOLDINGS) LIMITED (REGISTERED NUMBER: 09595339) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
8. | INDIVIDUAL INCOME STATEMENT |
As permitted by Section 408 of the Companies Act 2006, the Statement of Comprehensive Income of the parent company is not presented as part of these financial statements. |
9. | INTANGIBLE FIXED ASSETS |
Group |
Goodwill |
£ |
COST |
At 1st January 2023 |
and 31st December 2023 | 1,976,686 |
AMORTISATION |
At 1st January 2023 | 1,482,510 |
Amortisation for year | 197,668 |
At 31st December 2023 | 1,680,178 |
NET BOOK VALUE |
At 31st December 2023 | 296,508 |
At 31st December 2022 | 494,176 |
10. | TANGIBLE FIXED ASSETS |
Group |
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 |
THE PARKSIDE GROUP (HOLDINGS) LIMITED (REGISTERED NUMBER: 09595339) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
11. | FIXED ASSET INVESTMENTS |
Group |
Shares in |
group |
undertakings |
£ |
COST |
At 1st January 2023 |
and 31st December 2023 | 134,895 |
NET BOOK VALUE |
At 31st December 2023 | 134,895 |
At 31st December 2022 | 134,895 |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1st January 2023 |
Impairments | ( |
) |
At 31st December 2023 |
NET BOOK VALUE |
At 31st December 2023 |
At 31st December 2022 |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiary |
Registered office: Unit 5, Willow Lane, Mitcham, Surrey, CR4 4NX. |
Nature of business: |
% |
Class of shares: | holding |
2023 | 2022 |
£ | £ |
Aggregate capital and reserves |
Loss for the year | ( |
) | ( |
) |
Impairment of the Subsidiary Company |
The directors have assessed various factors in determining whether the company's investment in its subsidiary may be impaired. They consider that the depressed global markets and adverse economic forecasts are likely to suppress revenues in the immediate forthcoming years. The effect of these circumstances is to reduce the estimated present value of the company. |
THE PARKSIDE GROUP (HOLDINGS) LIMITED (REGISTERED NUMBER: 09595339) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
12. | STOCKS |
Group |
2023 | 2022 |
£ | £ |
Raw materials | 5,887,461 | 6,532,752 |
13. | DEBTORS |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Amounts falling due within one year: |
Trade debtors | 2,577,095 | 3,307,423 |
Amounts owed by group undertakings | - | - |
Other debtors | 2,378 | - |
Tax | 94,618 | - |
Taxation | 91 | - | 91 | - |
Prepayments and accrued income | 360,158 | 329,723 |
3,034,340 | 3,637,146 |
Amounts falling due after more than one year: |
Deferred tax asset | 58,343 | 122,080 | - | - |
Aggregate amounts | 3,092,683 | 3,759,226 |
Deferred tax asset |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Deferred tax | 58,343 | 122,080 | - | - |
14. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Debentures (see note 16) | 50,000 | 500,000 |
Bank loans and overdrafts (see note 16) | 3,606,835 | 3,994,465 |
Trade creditors | 2,605,653 | 2,544,018 |
Amounts owed to group undertakings | - | - |
Tax | - | 24,944 |
PAYE and NIC taxes | 88,015 | 88,752 |
Tax on loan interest | - | 1,509 | - | 1,509 |
VAT | 120,752 | 254,147 | - | - |
Other creditors | 105,132 | 110,212 |
Accruals and deferred income | 156,272 | 158,277 |
6,732,659 | 7,676,324 |
THE PARKSIDE GROUP (HOLDINGS) LIMITED (REGISTERED NUMBER: 09595339) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
15. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Preference shares (see note 16) | 500,000 | 500,000 |
16. | LOANS |
An analysis of the maturity of loans is given below: |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Amounts falling due within one year or on | demand: |
Debentures | 50,000 | 500,000 | 50,000 | 500,000 |
Asset based lending facility | 3,606,835 | 3,994,465 | - | - |
3,656,835 | 4,494,465 |
Amounts falling due between two and five years: |
Preference shares | 500,000 | 500,000 | 500,000 | 500,000 |
Details of shares shown as liabilities are as follows: |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
Non-voting redeemable |
preference shares | £1 | 500,000 | 500,000 |
17. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Non-cancellable operating | leases |
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 |
18. | SECURED DEBTS |
The following secured debts are included within creditors: |
Group |
2023 | 2022 |
£ | £ |
Bank loans | 3,606,835 | 3,994,465 |
The asset based lending facility is secured by a fixed and floating charge over all current and future assets of the group. |
THE PARKSIDE GROUP (HOLDINGS) LIMITED (REGISTERED NUMBER: 09595339) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
19. | DEFERRED TAX |
Group |
£ |
Balance at 1st January 2023 | (122,080 | ) |
Accelerated capital allowances |
Unrelieved losses | 63,737 |
Balance at 31st December 2023 | (58,343 | ) |
20. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
Ordinary "A" shares | £1 | 150 | 150 |
Ordinary "B" shares | £1 | 50 | 50 |
200 | 200 |
21. | RESERVES |
Group |
Retained |
earnings |
£ |
At 1st January 2023 | 3,057,679 |
Deficit for the year | (606,699 | ) |
At 31st December 2023 | 2,450,980 |
Company |
Retained |
earnings |
£ |
At 1st January 2023 |
Deficit for the year | ( |
) |
At 31st December 2023 |
22. | 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. |
Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements. |
23. | ULTIMATE CONTROLLING PARTY |
The company is controlled by Mr P T Dziurzynski, who owns the majority of the ordinary share capital. |