Registered number:
FOR THE YEAR ENDED 30 SEPTEMBER 2024
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COMPANY INFORMATION
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CONTENTS
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GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
The Rose Group Directors present their strategic report for the financial year ending 30th September 2024.
Principal Activities Andrews Building Supplies Holdings Limited (Rose Group) is a supplier of materials and services to the construction and DIY industry. Comprising of 4 general building and timber merchants, a specialist 1st and 2nd fix timber supplier to house developers and recycling services. The Group's activities are carried out across the subsidiaries: Pattrick & Thompsons Limited, Rose Building Supplies Limited and Rose Aggregates Limited. Strategy and Business Model As an independent merchant that is part of the NBG buying group its strategy remains focused on offering the best service in the industry at fair prices and adapting to ever changing customer requirements. Pattrick & Thompsons • Continue to diversify the product range on offer to include all facets of general building supplies following the recruitment of key personnel to drive both local merchanting and national sales. • Deploying ever stricter cash and stock control measures and reduce stock to turnover ratio. • Reduction in overheads to create a more streamlined business. • Diversify into other regions in which our house developer customers operate and increase product offering. • Supply of manufactured goods into a wider range of merchants. • Begin site redevelopment in Mar-25 to start brining benefits associated with a modern and safer working environment but to also increase yard space for diversified product range. Rose Building Supplies • Continue with centralised purchasing and transport planning to ensure optimum stock levels and buying rates as well as a more efficient transport strategy. • Deploy stricter cash and stock control measures and keep stock to turnover ratio low. • Reduction in overheads to create a more streamlined business. • Diversification of customer base across all branches to target growth sectors. • Explore diversification into light side product sectors such as plumbing and bathrooms. • SEO upscaling on website to create a 4th virtual branch given the higher margins that are achieved through e-commerce. Rose Aggregates • Grow the newly streamlined business of recycling and collected aggregates following closure of skips division. • Further develop plans of a reconfigured yard to create additional commercial units and boost rental income. • Deploy stricter cash control methods and further reduce overheads to create more streamlined business. General • A Group wide effort to reduce overheads and manage cash whilst utilising specialisms of each business across the Group. • Sustainability focus across the wider Group to reduce Scope 1 and 2 emissions and reducing waste.
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GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
Turnover for the period was £13m, down £4.4m from the previous year. This is largely driven by the general contraction in the new house build developments across England and subdued sales in general merchanting. This has led to a reversal of the previous year's profit making position to a loss. Price competition in the sector is fierce as the majority of companies chase what work is going on at the moment. Net assets have fallen by £701,306 with little capital expenditure and careful cashflow control.
General merchanting sales remain subdued into 2025 with the outlook expected to be neutral in the current financial year. The expectation is that Bank of England interest rate reductions in 2025 will bring some confidence back into that sector with private housebuilds growing to supplement the existing social housing demand. The Group loss for the year was £396,206 compared to a profit of £150,048 in the prior year.
Market Risk
Price competition from national merchants continues to cause issues across the Group as they chase business and tie up national deals with large developers however we continue to set ourselves aside in the market through our service, quality and continued fair price structures. We continue to maintain and build relationships with our customers to ensure their trust in us is continued. In general, the availability of materials remains good now but if demand suddenly jumps across the sector we could be met with some shortages due to suppliers cutting production capacity during the downturn. Credit & Liquidity Risk Strict rules are in place with regards to the granting of credit limits across the Group. Credit limits being authorised by Directors following a thorough third party credit checks and an analysis of their trading and payment history. Additional risk management provided by our comprehensive credit insurance policies covering all Group business. Liquidity has become ever more critical during a prolonged contraction in the market so we tightly manage this via daily cash flow forecast checks for all business to ensure the Group enough cash to meet its short, mid and long term goals. Interest Rate Risk The Group is only at risk of this should it ever exercise the need to use its overdraft with its banking provider which isn’t currently envisioned. Any remaining long term finance agreements are on a fixed interest basis and so all future repayments are fixed and known and most will finish within the next financial year. Price Risk As part of the NBG buying group we have access to market competitive rates and have input into these purchasing arrangements. On the 1st April 2025 not only the costs of each business will rise due to increase in Minimum Wage and Employers NI rates but so will that of our suppliers so we expect some materials cost inflation over the coming months and will need to be fed into our customers prices.
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GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
The Directors believe the Groups financial KPI’s demonstrate the ongoing strength and resilience of the company in what has been and continues to be a challenging and economic requirement:
2024 2023 Sales £13.04m £16.30m Gross Profit £3.62m £4.58m (Loss)/profit before tax (£0.43m) £0.18m (Loss)/profit after tax (£0.40m) £0.15m Net assets £6.35m £7.05m
This report was approved by the board and signed on its behalf.
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DIRECTORS' REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
The directors present their report and the financial statements for the year ended 30 September 2024.
The directors are responsible for preparing the Group Strategic Report, the Directors' Report and the consolidated financial statements in accordance with applicable law and regulations.
In preparing these financial statements, the directors are required to:
∙select suitable accounting policies for the Group's financial statements and then apply them consistently;
∙make judgments and accounting estimates that are reasonable and prudent;
∙state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group 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 the Group and to 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.
The loss for the year, after taxation and non-controlling interests, amounted to £396,206 (2023 - profit £150,078).
Details of dividends paid can be found in note 13.
The directors who served during the year were:
Details concerning principal activities, business review, future outlook, principal risks and uncertainties, financial risk management objectives and policies and financial key performance indicators KPIs can be found in the Group Strategic Report.
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DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
There have been no significant events affecting the Group since the year end.
The auditor, MHA, previously traded through the legal entity MacIntyre Hudson LLP. In response to regulatory changes, MacIntyre Hudson LLP ceased to hold an audit registration with the engagement transitioning to MHA Audit Services LLP.
MHA will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board and signed on its behalf.
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INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF ANDREWS BUILDING SUPPLIES HOLDINGS LIMITED
We have audited the financial statements of Andrews Building Supplies Holdings Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 30 September 2024, which comprise the Consolidated Statement of Comprehensive Income, the Consolidated Statement of Financial Position, the Company Statement of Financial Position, the Consolidated Statement of Cash Flows, the Consolidated Statement of Changes in Equity, the Company Statement of Changes in Equity and the related notes, 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).
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 Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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.
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 or 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.
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INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF ANDREWS BUILDING SUPPLIES HOLDINGS LIMITED (CONTINUED)
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.
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Group Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the Group Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.
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 Directors' Report.
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INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF ANDREWS BUILDING SUPPLIES HOLDINGS LIMITED (CONTINUED)
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 Group financial statements.
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 our procedures are capable of detecting irregularities, including fraud is detailed below:
• Enquiry of management and those charged with governance around actual and potential litigation and claims; • Enquiry of entity staff in tax and compliance functions to identify any instance of non-compliance with laws and regulations; • Performing audit work over the risk of management override of controls, including testing of journal entries and other adjustment for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias. • Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
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 Auditor's Report.
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INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF ANDREWS BUILDING SUPPLIES HOLDINGS LIMITED (CONTINUED)
This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an Auditor's Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.
For and on behalf of MHA, Statutory Auditor
Peterborough, United Kingdom Date:
MHA is the trading name of MHA Audit Services LLP, a limited liability partnership in England and Wales (registered number OC455542)
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CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 SEPTEMBER 2024
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CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 SEPTEMBER 2024
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CONSOLIDATED STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT 30 SEPTEMBER 2024
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 20 to 41 form part of these financial statements.
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COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 30 SEPTEMBER 2024
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COMPANY STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT 30 SEPTEMBER 2024
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 20 to 41 form part of these financial statements.
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