Company Registration No. 10948328 (England and Wales)
London Door Company Limited
Annual report and financial statements
for the year ended 30 April 2024
London Door Company Limited
Company information
Directors
N J Pailing
G Aylward
M R Grenier
L M Lalor
Secretary
G Aylward
Company number
10948328
Registered office
Broadoak Business Park
Ashburton Road West
Trafford Park
Manchester
M17 1RW
Independent auditor
Saffery LLP
Trinity
16 John Dalton Street
Manchester
M2 6HY
Bankers
Royal Bank of Scotland plc
1 Spinningfields Square
Manchester
M3 3AP
Solicitors
Ward Hadaway LLP
The Observatory
10 Chapel Walks
Manchester
M2 1HL
London Door Company Limited
Contents
Page
Directors' report
1 - 3
Independent auditor's report
4 - 7
Statement of comprehensive income
8
Statement of financial position
9
Statement of changes in equity
10
Notes to the financial statements
11 - 20
London Door Company Limited
Directors' report
For the year ended 30 April 2024
1

The directors present their annual report and financial statements for the year ended 30 April 2024.

Principal activities

The Company's principal activity is the marketing, design and installation of bespoke quality fitted interior and exterior doors.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

N J Pailing
G Aylward
M R Grenier
L M Lalor
Qualifying third party indemnity provisions

The Company insures against third party indemnity risks through its Directors' and Officers' (D&O) liability insurance policy.

Post reporting date events

On 10 May 2024, BHID Group Limited, the ultimate parent company of London Door Company Limited, was acquired by Hartford Bidco Limited.  The directors consider that from 10 May 2024 the ultimate parent undertaking of the company is Hartford Topco Limited, a company registered in England and Wales.

Future developments

The Company's strategy is to continue to strengthen its position as the leading quality fitted door provider for the home throughout the UK in addition to evaluating acquisitional opportunities and international expansion. As the Company primarily drives leads and therefore orders on-line, the business will benefit from both the increased focus by clients on the home and increased digital capability and activity of the Company's target demographics.

 

The London Door Company brand is benefitting from this strategy and it positions the Company as the 'go to' brand for 'high-end' clients looking to purchase quality luxury doors.

 

The business makes substantial investments in new product developments and has a continual flow of new products being launched to the market reflecting the latest styles and trends for luxury bespoke doors.

 

The business will also expand its coverage of the UK as it secures further growth.

Auditor

Saffery LLP were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.

London Door Company Limited
Directors' report (continued)
For the year ended 30 April 2024
2
Statement of directors' responsibilities

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law).

 

Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

 

 

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 directors are responsible for the maintenance and integrity of the company website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

Charitable donations

The Company supports a number of national and local charities. We also encourage employees to support various charity fund raising events. Charitable contributions for 2024 were £Nil (2023: £56).

Going concern

The directors have a reasonable expectation that the Company and the Group have adequate resources to continue in operational existence for the foreseeable future, being a period of not less than 12 months from the date of approval of these financial statements.

 

In their consideration of going concern, the directors have reviewed the Group's future cash flow forecasts and profit projections for the period to 30 April 2025, on both a base case and certain sensitised basis, considering the principal risks and uncertainties of the Group.

 

These forecasts have been prepared based on past experience, the outstanding order book, marketing data and KPI's, market data and expected trading, and they reflect any potential impact of wider market headwinds on trading activity and liquidity. The directors have reviewed these forecasts and have also considered sensitivities in respect of potential downside scenarios and the mitigating actions available to the Group.

 

Under all scenarios, there was sufficient headroom on covenants and cash headroom. Accordingly, the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

London Door Company Limited
Directors' report (continued)
For the year ended 30 April 2024
3
Small companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.

On behalf of the board
G Aylward
Director
30 September 2024
London Door Company Limited
Independent auditor's report
To the members of London Door Company Limited
4
Opinion

We have audited the financial statements of London Door Company Limited (the 'company') for the year ended 30 April 2024 which comprise the statement of comprehensive income, the statement of financial position, the statement of changes in equity and notes to the financial statements, including 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:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's 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 other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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.

 

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 course of 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.

London Door Company Limited
Independent auditor's report (continued)
To the members of London Door Company Limited
5

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

 

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 directors' report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

 

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the 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.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

London Door Company Limited
Independent auditor's report (continued)
To the members of London Door Company Limited
6

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud are detailed below.

 

Identifying and assessing risks related to irregularities:

We assessed the susceptibility of the company’s financial statements to material misstatement and how fraud might occur, including through discussions with the directors, discussions within our audit team planning meeting, updating our record of internal controls and ensuring these controls operated as intended. We evaluated possible incentives and opportunities for fraudulent manipulation of the financial statements. We identified laws and regulations that are of significance in the context of the company by discussions with directors and by updating our understanding of the sector in which the company operates.

 

Laws and regulations of direct significance in the context of the company include The Companies Act 2006 and UK Tax legislation.

 

Audit response to risks identified

We considered the extent of compliance with these laws and regulations as part of our audit procedures on the related financial statement items including a review of financial statement disclosures. We reviewed the company's records of breaches of laws and regulations, minutes of meetings and correspondence with relevant authorities to identify potential material misstatements arising. We discussed the company's policies and procedures for compliance with laws and regulations with members of management responsible for compliance.

During the planning meeting with the audit team, the engagement partner drew attention to the key areas which might involve non-compliance with laws and regulations or fraud. We enquired of management whether they were aware of any instances of non-compliance with laws and regulations or knowledge of any actual, suspected or alleged fraud. We addressed the risk of fraud through management override of controls by testing the appropriateness of journal entries and identifying any significant transactions that were unusual or outside the normal course of business. We assessed whether judgements made in making accounting estimates gave rise to a possible indication of management bias. At the completion stage of the audit, the engagement partner’s review included ensuring that the team had approached their work with appropriate professional scepticism and thus the capacity to identify non-compliance with laws and regulations and fraud.

There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

London Door Company Limited
Independent auditor's report (continued)
To the members of London Door Company Limited
7

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Simon Kite
Senior Statutory Auditor
For and on behalf of Saffery LLP
30 September 2024
Accountants
Statutory Auditors
Trinity
16 John Dalton Street
Manchester
M2 6HY
London Door Company Limited
Statement of comprehensive income
For the year ended 30 April 2024
8
2024
2023
Notes
£000
£000
Turnover
3
6,330
6,072
Cost of sales
(4,507)
(4,918)
Gross profit
1,823
1,154
Distribution costs
(1,914)
(1,741)
Administrative expenses
(515)
(277)
Other operating income
-
0
11
Operating loss
(606)
(853)
Interest payable and similar expenses
(3)
-
0
Loss before taxation
(609)
(853)
Tax on loss
6
8
4
Loss for the financial year
(601)
(849)

The income statement has been prepared on the basis that all operations are continuing operations.

London Door Company Limited
Statement of financial position
As at 30 April 2024
9
2024
2023
Notes
£000
£000
£000
£000
Fixed assets
Intangible assets
7
248
316
Tangible assets
8
257
283
Investments
9
-
-
505
599
Current assets
Stocks
235
317
Debtors
11
725
772
Cash at bank and in hand
740
769
1,700
1,858
Creditors: amounts falling due within one year
12
(7,316)
(6,960)
Net current liabilities
(5,616)
(5,102)
Total assets less current liabilities
(5,111)
(4,503)
Creditors: amounts falling due after more than one year
13
(25)
(32)
Net liabilities
(5,136)
(4,535)
Capital and reserves
Called up share capital
-
0
-
0
Profit and loss reserves
(5,136)
(4,535)
Total equity
(5,136)
(4,535)

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the board of directors and authorised for issue on 30 September 2024 and are signed on its behalf by:
G Aylward
Director
Company Registration No. 10948328
London Door Company Limited
Statement of changes in equity
For the year ended 30 April 2024
10
Share capital
Profit and loss reserves
Total
£000
£000
£000
Balance at 1 May 2022
-
0
(3,686)
(3,686)
Year ended 30 April 2023:
Loss and total comprehensive income
-
(849)
(849)
Balance at 30 April 2023
-
0
(4,535)
(4,535)
Year ended 30 April 2024:
Loss and total comprehensive income
-
(601)
(601)
Balance at 30 April 2024
-
0
(5,136)
(5,136)
London Door Company Limited
Notes to the financial statements
For the year ended 30 April 2024
11
1
Accounting policies
Company information

London Door Company Limited is a private company limited by shares incorporated in England and Wales. The registered office is Broadoak Business Park, Ashburton Road West, Trafford Park, Manchester, M17 1RW.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £000.

The financial statements have been prepared under the historical cost convention, modified to include certain financial instruments at fair value. The principal accounting policies adopted are set out below.

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

 

 

The financial statements of the company are consolidated in the financial statements of BHID Group Limited. These consolidated financial statements are available from its registered office, Broadoak Business Park, Ashburton Road West, Trafford Park, Manchester, M17 1RW.

1.2
Going concern

The directors have a reasonable expectation that the Company and the Group have adequate resources to continue in operational existence for the foreseeable future, being a period of not less than 12 months from the date of approval of these financial statements.true

 

In their consideration of going concern, the directors have reviewed the Group's future cash flow forecasts and profit projections for the period to 30 April 2029, on both a base case and certain sensitised basis, considering the principal risks and uncertainties of the Group.

 

These forecasts have been prepared based on past experience, the outstanding order book, marketing data and KPI's, market data and expected trading, and they reflect any potential impact of wider market headwinds on trading activity and liquidity. The directors have reviewed these forecasts and have also considered sensitivities in respect of potential downside scenarios and the mitigating actions available to the Group.

 

Under all scenarios, there was sufficient headroom on covenants and cash headroom. Accordingly, the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

London Door Company Limited
Notes to the financial statements (continued)
For the year ended 30 April 2024
1
Accounting policies (continued)
12
1.3
Turnover

Turnover is recognised when the Group has satisfied its performance obligations to the customer, principally being on the practical completion upon delivery and installation of goods manufactured by the Group at a customer's home. These installations typically do not take a significant period of time and no revenue is recognised until practical completion. All costs relating to provision of any third party goods or services are provided for.

The Group produces bespoke luxury designed products and therefore on installation it transfers the significant risks and rewards. Given the bespoke design & manufacturing nature of our products, a customer does not have a right to return a product, except under very limited conditions covered under our terms of sales. In practice this does not occur and as such, a refund liability is not required.

 

Turnover is measured at the transaction price received or receivable and represents amounts receivable for goods and services provided in the normal course of business, net of discounts and value added tax.

1.4
Intangible fixed assets - goodwill

Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer's interest in the fair value of its identifiable assets and liabilities of the acquiree at the date of acquisition. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.

1.5
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Long-term leasehold property
Remainder of lease
Plant and machinery
7 - 25%
Office equipment
20 - 33%

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

1.6
Fixed asset investments

Investments in subsidiaries are measured at cost less accumulated impairment.

1.7
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

London Door Company Limited
Notes to the financial statements (continued)
For the year ended 30 April 2024
1
Accounting policies (continued)
13

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.8
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to sell, which is equivalent to net realisable value.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.9
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.10
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

London Door Company Limited
Notes to the financial statements (continued)
For the year ended 30 April 2024
1
Accounting policies (continued)
14
Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

1.11
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.12
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Where items recognised in other comprehensive income or equity are chargeable to or deductible for tax purposes, the resulting current or deferred tax expense or income is presented in the same component of comprehensive income or equity as the transaction or other event that resulted in the tax expense or income. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

London Door Company Limited
Notes to the financial statements (continued)
For the year ended 30 April 2024
1
Accounting policies (continued)
15
1.13
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.14
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.15
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the statement of financial position as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

2
Critical accounting judgements and key sources of estimation uncertainty

Preparation of the financial statements requires management to make significant judgements and estimates. The items in the financial statements where these judgements and estimates have been made include:

 

Impairment review of goodwill - Annually, the Company considers whether intangible assets and/or goodwill are impaired. Where an indication of impairment is identified the estimation of recoverable value requires estimation of the recoverable value of the cash generating units (CGUs). This requires estimation of future cash flows from CGUs and also selection of appropriate discount rates in order to calculate net present value of those cash flows.

3
Turnover

Turnover is attributable to one continuing activity: the marketing, design, manufacture and installation of high quality exterior and interior doors.

 

All turnover arose within the United Kingdom.

 

London Door Company Limited
Notes to the financial statements (continued)
For the year ended 30 April 2024
16
4
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£000
£000
For audit services
Audit of the financial statements of the company
18
13

The Company has taken advantage of the exemption not to disclose amounts paid for non-audit services as these are disclosed in the group accounts of the parent company.

5
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2024
2023
Number
Number
Total
38
43
6
Taxation
2024
2023
£000
£000
Deferred tax
Origination and reversal of timing differences
(17)
(4)
Adjustment in respect of prior periods
9
-
0
Total deferred tax
(8)
(4)
7
Intangible fixed assets
Goodwill
£000
Cost
At 1 May 2023 and 30 April 2024
677
Amortisation and impairment
At 1 May 2023
361
Amortisation charged for the year
68
At 30 April 2024
429
Carrying amount
At 30 April 2024
248
At 30 April 2023
316
London Door Company Limited
Notes to the financial statements (continued)
For the year ended 30 April 2024
7
Intangible fixed assets (continued)
17

For the year ended 30 April 2024 the Company is carrying a Goodwill balance of £248k (2023: £316k). Goodwill is amortised on a straight-line basis over 10 years and is charged to administrative expenses. During the year the Company continued its successful growth rate with turnover increasing 4% (2023: 10%). Management is committed to investing in the operations to sustain and continue this impressive growth and as such, the continued investment decreased the operating loss by £244k in the year. In line with FRS 102 Impairment of Assets, Management has assessed the expected future business performance to determine whether any impairment Goodwill is required. This assessment involved an assessment by management of the recoverable amount of the Company, relative to the Goodwill's carrying value.

 

Based on management's assessments, no impairment is required. Further, management have stress tested the base assumptions using certain sensitivities and found no impairment required.

 

The recoverable amount of the Company is a source of significant estimation uncertainty. The recoverable amount was determined using a value-in-use calculation which required the use of assumptions. The calculations use cash flow projections based on financial budgets approved by the directors covering a five-year period. These cash flows assumed a 16% CAGR in revenues during the five-year period, compared with the 4% (2023: 10%) growth experienced in the current year.

 

Manufacturing commenced in a new site in FY23 and the larger manufacturing facility has allowed the Company to operate more efficiently and in a manner that will support the growth assumptions. Cash flows beyond the five-year period are extrapolated using an estimated long term growth rate of 2%.

 

In addition to the Revenue growth assumption, the key assumption in the value-in-use calculation is the budgeted EBITDA margin. EBITDA margin is forecast to grow to 6.7% over the next five years which is considered by management to be conservative for a business in this industry and in the range expected for a business in the Group.

8
Tangible fixed assets
Long-term leasehold property
Plant and machinery
Office equipment
Total
£000
£000
£000
£000
Cost
At 1 May 2023
196
53
113
362
Additions
-
0
-
0
29
29
At 30 April 2024
196
53
142
391
Depreciation and impairment
At 1 May 2023
19
6
54
79
Depreciation charged in the year
19
11
24
54
At 30 April 2024
38
17
78
133
Carrying amount
At 30 April 2024
157
36
64
257
At 30 April 2023
177
47
59
283

The net book value of tangible fixed assets includes £28k (2023: £36k) in respect of assets held under finance leases or hire purchase contracts.

London Door Company Limited
Notes to the financial statements (continued)
For the year ended 30 April 2024
18
9
Fixed asset investments
2024
2023
£
£
Investments in subsidiaries
1
1

The Company has taken advantage of the exemption under section 400 of the Companies Act 2006 not to prepare consolidated accounts. The financial statements present information about the Company as an individual entity and not about its group.

10
Subsidiaries

Details of the company's subsidiaries at 30 April 2024 are as follows:

Name of undertaking
Registered office
Nature of business
Class of shares held
% Held
Direct
Indirect
The London Door Company Subsidiary Limited
Broadoak Business Park, Ashburton Road West, Trafford Park, Manchester, England, M17 1RW
Dormant
Ordinary
100
0
11
Debtors
2024
2023
Amounts falling due within one year:
£000
£000
Trade debtors
298
354
Other debtors
183
191
Prepayments and accrued income
162
153
643
698
Deferred tax asset
82
74
725
772

Trade debtors includes a provision for impairment of £106k (2023: £242k).

London Door Company Limited
Notes to the financial statements (continued)
For the year ended 30 April 2024
19
12
Creditors: amounts falling due within one year
2024
2023
£000
£000
Trade creditors
355
472
Amounts owed to group undertakings
5,594
5,003
Taxation and social security
257
192
Obligations under finance lease and hire purchase contracts
8
7
Payments received on account
837
969
Accruals and deferred income
265
317
7,316
6,960

Amounts owed by group undertakings are repayable on demand, unsecured and bear no interest.

 

Included in accruals is £192k (2023: £208k) relating to costs associated with exiting a property.

 

Net obligations under hire purchase contracts are secured against the assets to which they relate.

13
Creditors: amounts falling due after more than one year
2024
2023
Notes
£000
£000
Obligations under finance leases
25
32

Net obligations under hire purchase contracts are secured against the assets to which they relate.

14
Retirement benefit schemes
2024
2023
Defined contribution schemes
£000
£000
Charge to profit or loss in respect of defined contribution schemes
138
50

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund. Contributions totalling £nil (2023: £nil) were payable to the fund at the reporting date and are included in creditors.

15
Financial commitments, guarantees and contingent liabilities

The Company is subject to a joint bank guarantee with its parent undertaking, the BHID Group Limited and its subsidiaries. The contingent liability as at 30 April 2024 was £7,250k (2023: £8,000k).

London Door Company Limited
Notes to the financial statements (continued)
For the year ended 30 April 2024
20
16
Operating lease commitments
Lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:

2024
2023
£000
£000
1,634
1,893
17
Capital commitments

Amounts contracted for but not provided in the accounts amounted to £6k (2023: £Nil).

18
Hire purchase and finance leases

Minimum lease payments under hire purchase are £32k (2023: £39k).

19
Related party transactions

The Company has taken advantage of the exemption within FRS 102 (section 33) and has not disclosed transactions with fellow group undertakings.

20
Controlling party

As at 30 April 2024 the directors consider that the ultimate parent undertaking of the Company is BHID Group Limited which is registered in England and Wales. The Third Alcuin Fund Limited Partnership (a fund controlled by Alcuin Capital Partners LLP) hold a 49% shareholding in BHID Group Limited. The immediate parent undertaking is Bespoke Home Interior Design Limited which is registered in England and Wales.

 

On 10 May 2024, BHID Group Limited, the ultimate parent company of London Door Company Limited, was acquired by Hartford Bidco Limited.  The directors consider that from 10 May 2024 the ultimate parent undertaking of the company is Hartford Topco Limited, a company registered in England and Wales. The Third Alcuin Fund Limited Partnership continue to be deemed to be the ultimate controlling party.

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