Company registration number 05035069 (England and Wales)
LEXIA SOLUTIONS GROUP LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
LEXIA SOLUTIONS GROUP LIMITED
COMPANY INFORMATION
Directors
J M Davy
A de Graft-Hayford
Secretary
A de Graft-Hayford
Company number
05035069
Registered office
Unit C Astra Park
Parkside Lane
Leeds
West Yorkshire
United Kingdom
LS11 5SZ
Auditor
BHP LLP
Mayesbrook House
Lawnswood Business Park
Redvers Close
Leeds
LS16 6QY
LEXIA SOLUTIONS GROUP LIMITED
CONTENTS
Page
Strategic report
1 - 7
Directors' report
8 - 13
Independent auditor's report
14 - 16
Group statement of comprehensive income
17
Group balance sheet
18
Company balance sheet
19
Group statement of changes in equity
20
Company statement of changes in equity
21
Group statement of cash flows
22
Notes to the financial statements
23 - 39
LEXIA SOLUTIONS GROUP LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 1 -

The directors present their annual report and the audited financial statements of the Company and the Group for the year ended 31 December 2024.

Business review and principal activities

Lexia Solutions Group Limited and its subsidiaries (the “Group”) is a leading specialist enabling works provider and support services organisation. The Group provides a range of specialist inter-related services delivered via two distinct brands: Rhodar and Thermac:

 

 

With a network of UK offices spread across geographical regions and one of the largest dedicated operative workforces in the UK it can deliver a consistent, professional, first class service to a nationwide customer base on a scale that few can match.

 

The Group is recognised as a market leader in innovation and maintains industry leading standards in the highly regulated market in which it operates. Our business model is focused on identifying and working with blue chip clients, covering the private and public sectors, across a range of industry sectors. We have a large number of long term agreements and frameworks, ensuring repeat revenues form a significant part of our business.

 

Our continued focus as a Group has been to offer our major clients an ‘enabling works package’ comprising our four key skillsets of asbestos, demolition, remediation and passive fire protection. The Group has continued to build on the successful rebranding strategy for Rhodar to reposition the business as an enabling works provider, delivering an integrated service package. In 2024, the staged merger of Rhodar Limited into Rhodar Industrial Services Limited, was completed.

 

Despite ongoing economic challenges following the challenging economic conditions of 2023, the Group delivered a record-breaking performance in 2024, achieving a turnover of £70m and exceeding profit expectations. Thanks to the continued success of the Employee Ownership Trust (EOT), established in November 2020, all employees once again benefited directly through a tax-free bonus, recognising their contribution to the Group’s achievements.

 

Reviewing the past year for Rhodar from the perspective of these four disciplines:

 

Asbestos:

The division had a financially strong year, with standout performance across sectors like education, local authorities, infrastructure, rail, defence, and nuclear. Growth was driven by key framework wins and renewals, both directly (TfL, BT, Yorkshire Water) and via national frameworks (NEPO, NHS, NEUPC).

A key strategic move within the division (made early in the year) has been to restructure our project delivery infrastructure in order to strengthen our national delivery capability. This involved creation of three regions (Scotland, Northern & Southern) – streamlining processes, reporting lines and resource allocations to maximise project delivery efficiencies. Each region delivered major projects for clients such as Scottish Water, BAE Systems, and Aspire Defence.

Focus areas included:

LEXIA SOLUTIONS GROUP LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 2 -

Demolition

 

The division has had a highly successful year in 2024, surpassing targets and securing a strong pipeline for 2025. Key factors contributing to their success include a disciplined bid qualification process focusing on fewer but higher-quality projects and a strategic emphasis on sectors like healthcare, education, defence, nuclear, rail, MOD/Defence, and utilities. They have expanded their portfolio through prestigious frameworks like Crown Commercial Services and Pagabo, with notable wins including projects for NWG, Gloucester Place, Scotland Excel, and Procure Public.

 

The division is increasingly involved as a Principal Contractor, directly engaging with clients and supporting multi-discipline enabling works projects, a significant growth area. Recent high-profile projects include the Darwin Tower demolition for Edinburgh University, the Findel Complex near Manchester, and the Cardiff Regeneration project for Vastint. Their achievements were highlighted by winning the UK Demolition Project of the Year (over £1m) at the British Demolition Awards, solidifying our Demolition Team’s leading position and reputation within the sector.

 

Remediation:

The division has consolidated its position in the market over the past twelve months, cementing its reputation as a turnkey enabling works provider with a number of high profile repeat business clients. With broader capability and increased capacity through both continued strategic hires and purchase of further new equipment the division has delivered almost £9M of multi-disciplinary projects across the defence, civil infrastructure and development sectors.

These have included construction of a car park at Lynfield Mount Hospital for the NHS trust and support of infrastructure and accommodation upgrades at St George’s Barracks. We have also secured a position on the prestigious Northern Gas Networks Remediation Framework and increased our profile with local authorities, including City of York Council, to further diversify our client portfolio and range of enterprise activities.

 

Passive Fire Protection:

 

The past year has been focused on developing the scale and technical competence of our delivery team, recruiting and training at all levels to position ourselves to maximise on this rapidly expanding sector. Our strategy has been based on structured, regionalised growth, leveraging on introductions via our other divisions to existing group clients and through targeted marketing campaigns so we continue to grow in a sustained way.

 

Work underpinned by increasing roster of Frameworks and a developing and trusted supplier base for specialist and time-critical components. We have developed strong relationships within Higher Education and NHS Trusts and also targeting Councils, Hospitality/Hotels, Retail/Developers.

 

Recent success in winning major project work at the UKRIA through competitive tender has been a key testament to the divisions development and positioning within the sector. Whilst being a highly competitive and saturated marketplace, our steady delivery of a quality service, delivered by highly competent and professional operatives is being noticed within the industry and we are winning more and more work by referral.

 

Turning to our equipment specialist, Thermac - having implemented a strategic plan aimed at maximising on its core strengths, Thermac exceeded profit expectations although on less turnover than in 2023. With innovation at its core, Thermac have continued to develop their in-house developed and manufactured equipment, recognised for their performance and reliability within the industry. 2024 saw a record number of orders, a new branch in Barking, a revamped E-commerce platform, and winning the prestigious “Supplier of the Year” award from Asbestos Hub Magazine.

LEXIA SOLUTIONS GROUP LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 3 -

Principal risks and uncertainties

The Group’s decision making remains centred on a comprehensive and detailed understanding of the exposures faced by the organisation. The identification of risks to achieving business and strategic objectives, alongside the use of detailed analysis to inform and prioritise responses, remains key to balancing risk taken in line with risk appetite.

Within its highly regulated marketplace, loss of any of the Group’s HSE asbestos licences is a key business risk. Both Rhodar and Thermac’s licenses were renewed in 2023, with Rhodar having a maximum three-year term licence that expires in September 2026, and the Thermac maintenance licence running for three years until December 2026. Conducting business in a safe away and providing a Zero Harm environment for our employees and stakeholders is paramount.

Given the current challenging economic environment for the construction sector generally, continuing to secure work at acceptable margins in open market conditions is a key business risk. The Group seeks to manage potential contractual risk transfer through delegated authorities that govern tenders and acceptance of customers. The Group has processes and procedures to ensure that work is undertaken in accordance with the corresponding contractual conditions.

Key performance indicators (“KPIs”)

The directors consider that our key performance indicators are those that communicate a summary of the performance and the strength of the Group as a whole; those being turnover, gross profit margin, operating profit and retained reserves.

 

The results for the years ended 31 December 2024 and 31 December 2023 are as follows:

 

Continuing operations

Year ended
31 December 2024

Revenue

£’000

Year ended
31 December 2023

Revenue

£’000

Year ended
31 December 2024

Gross profit

£’000

Year ended
31 December 2023

Gross profit

£’000

Asbestos abatement

44,135

37,562

13,608

10,758

Demolition and land remediation

19,856

21,970

4,040

4,520

Fire Protection

3,684

1,867

1,290

461

Hire / consumables

5,621

6,178

1,552

1,513

Intra group trading

(2,797)

(2,918)

-

-

 

              

              

              

              

Group

70,499

64,659

20,490

17,252

 

 

             

              

              

              

Given the diverse nature of the business, the Group's directors are of the opinion that analysis of the business is best done through the review of the business divisions. The directors consider gross profit to be the principal measure of the operating divisions and for the business as a whole as disclosed in the table above. The directors also consider earnings before interest, depreciation and amortisation (‘EBITDA’) to be a KPI. A reconciliation of EBITDA has been summarised below.

 

 

Year ended

31 December 2024

£’000

Year ended

31 December 2023

£’000

Operating profit

3,912

2,153

Depreciation of tangible fixed assets

Amortisation of intangible fixed assets

687

1

740

1

 

              

              

EBITDA

4,600

2,894

 

              

              

 

LEXIA SOLUTIONS GROUP LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 4 -

Future developments

 

With the rebrand and strategic realignment of Rhodar focused on combined enabling works packages, we are now actively delivering in this dynamic area. While continuing to grow each of our four core service lines independently, we will also identify opportunities to integrate multiple services into a single solution - offering clients enhanced value through improved cost efficiency and streamlined delivery.

 

Our ongoing strategy of securing targeted framework wins is strengthening our medium to long-term revenue confidence, enabling more effective horizon planning and supporting the continued growth of the business.

 

As part of our enabling strategy with developers and main contractors, we are placing strategic focus on urban regeneration projects—particularly those backed by government initiatives and secured funding streams, such as the Build to Rent (BTR) and Purpose-Built Student Accommodation (PBSA) sectors. This approach is proving to be a highly effective route for future work winning.

 

Our broad sector coverage allows the Group to strategically pivot and capitalise on the strongest growth opportunities, particularly during periods of uncertainty in other areas of the market. Key growth sectors for the Group are:

 

Section 172 Companies Act 2006

This report sets out how the Directors comply with the requirements of Section 172 Companies Act 2006 and how these requirements have impacted the Board’s decision making throughout 2023.

The Board’s primary responsibility is to promote the long-term success of the Group by creating and delivering sustainable value as well as contributing to wider society. The successful delivery of the long-term plans relies on key inputs and positive relationships with a wide range of stakeholders. The Board seeks to achieve this by setting out its strategy, monitoring performance against the Group’s strategic objectives and reviewing the implementation of the strategy. The Board also monitors the effectiveness of the Group’s systems of internal control, governance and risk management.

 

Engaging with stakeholders to deliver long term success is a key area of focus for the Board and all decisions take into account the impact on stakeholders. Obviously, stakeholders are impacted by, or benefit from, decisions made by the Board in different ways. However, it is the Board’s priority to ensure that the Directors have acted both individually and collectively in the way that they consider, in good faith, would be most likely to promote the success of the Group for the benefit of the members as a whole with regard to all its stakeholders and to the matters set out in paragraphs a-f of Section 172 of the Companies Act 2006.

LEXIA SOLUTIONS GROUP LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 5 -

Engagement with employees

 

The Group goal is to provide an engaging and highly motivated environment, attractive career paths and benefits and empowerment to own and drive our vision. The Group recognises the importance of engaging employees to help them make their fullest contribution to the business, which is fundamental to achieving the Group’s strategy and long-term objectives. This is supported by our retention of our Investors in People status.

Employment of disabled persons

At Lexia, we are fully committed to equality in the workplace and engage, promote and train staff on the basis of their capabilities, qualifications and experience without discrimination of any kind. This is underpinned by the policies and practices embedded within the Group. All employees receive equal opportunity to progress within the Group ensuring we have access to the widest talent pool. We make reasonable adjustments to the business premises and working arrangements for disabled applicants and employees, including employees who become disabled during their employment.

Employee involvement

At Lexia, employee engagement is very important to us, and we actively seek the views and opinions of our staff through continuous employee engagement. Staff participation is encouraged at many levels, such as recognising colleagues for our values awards. Our performance management standard: In Pursuit of Excellence (IPOE) encompasses all aspects of our employee’s development, from performance management and management training to leadership development and charitable fundraising.

 

Staff Wellbeing

 

Staff wellbeing is a cornerstone of our organisational success and a key focus in fostering a positive and productive work environment. We are committed to supporting the physical, mental, and emotional health of our employees through comprehensive wellbeing initiatives, including flexible working arrangements, access to wellness programs, and promoting a healthy work-life balance. By investing in staff wellbeing, we aim to reduce stress, increase job satisfaction, and enhance overall employee engagement.

LEXIA SOLUTIONS GROUP LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 6 -

Engagement with suppliers, customers and others

The Board regularly reviews how the Group maintains positive relationships with all its stakeholders, including suppliers, customers, community and others.

Suppliers

The Directors understand the importance of the Group’s supply chain in delivering the long-term plans of the Group. One of the ways we can ensure effective relationships with our supply chain is to pay them on time.

We understand the importance of paying suppliers and subcontractors in a timely and professional manner and are committed to this practice. We adopt a flexible approach which matches payment terms to the requirements and capabilities of our suppliers, and consider the option of early payment to suppliers who are experiencing financial constraints.

Customers

Our broad customer base spans several sectors, industries and businesses and believe in strong collaborative relationships borne out of a mutual and beneficial understanding of process, procedure and communication. We work closely with our customers to understand their evolving needs so we can improve and adapt to meet them.

We have continued to deliver our ‘Built Environment’ Knowledge Seminars Roadshows, showcasing our four core services and the advantages of combined delivery within an enabling package to the built environment sector. These roadshows, delivered at venues across the UK, positioned Rhodar as leading subject-matter experts and solutions provider, reaching hundreds of existing and new clients, providing a unique opportunity for face-to-face interaction and knowledge share.

Community

Social value and Sustainability have continued to be a strong feature of our activities through our extensive charitable activities. Our commitment to social responsibility is reflected in a range of impactful charity and sponsorship initiatives. The “Charity 6 campaign, driven by staff, sees six charities selected each year and supported through various fundraising efforts, engaging the entire business. We also support local causes, including the Blackburn & Darwen and Bradford NHS “You’re a Star” events, among many others. The 2024 “Crosspoint Challenge” in the Lake District raised £10,000 for WellChild, which takes our contribution to £55,000 for the charity in total over the years. Looking ahead, we’re excited to launch the “Yorkshire 3 Peaks Challenge” in 2025 for Martin House Children’s Hospice.

We are also proud to support major regional projects like Darwin Tower for The University of Edinburgh, with over £35,000 donated. Our focus on local employment and resourcing for key projects further strengthens our ties to the communities we serve, making a lasting impact in the areas where we operate.

Sustainability

As a Group, operating to ISO 14001, we already have well-developed environmental programmes across the business. In 2024 we appointed a Sustainability Consultancy advisory partner to support the Group in developing and delivering our long-term carbon emissions reduction strategy (“Carbon Reduction Flightpath”). This partnership will ensure we meet our legislative/statutory obligations, train/upskill our staff, and provide project-specific support either part of the bid process or delivery phase.

Further information is included within the Directors Report, where we have disclosed our Energy and Carbon Report for the year ended 31 December 2024.

LEXIA SOLUTIONS GROUP LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 7 -

Going Concern

 

The Company is a subsidiary of the Lexia Solutions Group Limited group (the “Group”) and has access to the group’s current banking facilities.

The Company, and wider Group, continues to recognise the economic and trading uncertainties resulting from the conflict in Ukraine, which continue to be closely monitored. Although the Group do not trade outside the UK, interruption to commodity supplies and rising prices due to the reduced supply is likely to impact the supply chain. After considering the factors and sensitivities outlined above for a range of scenarios, the Directors consider that the Group has adequate resources to continue in operational existence for the foreseeable future. Uncertainties and risk inherent in the construction industry may impact future performance, and management remain vigilant in monitoring and addressing these challenges proactively.

The Directors regularly review the working capital requirements of the Company, and wider Group, while reviewing sensitivities to future performance. The Directors have reviewed budgets and future forecasts and have satisfied themselves that the Company has sufficient financial and liquid resources to continue to operate for a period of at least 18 months from the date these financial statements are signed.

Overall, the Directors remain confident in their strategy and the strength of the business.

Accordingly, the Directors continue to adopt the going concern basis in preparing the Company and the wider Group accounts. Further details regarding the adoption of the going concern basis can be found in the Accounting Policies.

On behalf of the board

J M Davy
Director
23 May 2025
LEXIA SOLUTIONS GROUP LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 8 -

The directors present their annual report and financial statements for the year ended 31 December 2024.

Results and dividends

The profit for the year, after taxation, amounted to £3,859,000 (2023 - £3,375,000).

 

A dividend of £1,007,000 was paid during the year (2023 - £911,000).

Directors

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

J M Davy
A de Graft-Hayford
Qualifying third party indemnity provisions

Following shareholder approval the Company has provided an indemnity for its directors and the secretary throughout the year, which is a qualifying third party indemnity provision for the purposes of the Companies Act 2006.

Research and development

Research and development (R&D) activities are undertaken with the prospect of gaining new scientific or technical knowledge and understanding. R&D is a critical component of Group’s growth strategy, enabling us to stay competitive by developing innovative products and services that meet the changing needs of customers.

 

The Group invests in R&D to improve the quality of its products and services, reduce costs, and increase efficiency. R&D helps the Company to differentiate itself from competitors and maintain its market position.

Business relationships and employee engagement

The Group is committed to ensuring it maintains strong relationships with all stakeholders (including employees)and actively engages with them on an ongoing basis. Further details are provided in the Strategic Report.

Auditor

BHP LLP were appointed as auditor to the group 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.

LEXIA SOLUTIONS GROUP LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 9 -
Energy and carbon report
LEXIA SOLUTIONS GROUP LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 10 -

Lexia Solutions Group GHG emissions and energy use data for period 1st January 2023 to 31st December 2024:

Annual Energy Consumption (kWh)

Current Reporting Year

Comparison Year

01/01/2024 - 31/12/2024

01/01/2023 - 31/12/2023

Scope 1

13,102,969

16,972,295

Stationary Combustion

200,284

163,102

Mobile Combustion

12,902,685

16,809,193

Process Emissions

N/A

N/A

Fugitive Emissions

N/A

N/A

Scope 2

315,042

374,033

Purchased Electricity

315,042

374,033

Purchased Steam, Heat, Cooling

-

-

Scope 3 (Grey Fleet)

20,628

21,127

Grey Fleet

20,628

21,127

Total

13,438,640

17,367,455

 

Annual Carbon Emissions (tCO2e)

Current Reporting Year

Comparison Year

01/01/2024 - 31/12/2024

01/01/2023 - 31/12/2023

Scope 1

3,231

4,257

Stationary Combustion

37

30

Mobile Combustion

3,195

4,227

Process Emissions

-

-

Fugitive Emissions

-

-

Scope 2 (Location Based)

65

77

Scope 2 (Market Based)

65

77

Purchased Electricity
(Location Based)

65

77

Purchased Electricity
(Market Based)

65

77

Purchased Steam, Heat, Cooling

-

-

Scope 3 (Grey Fleet)

6.3

6.5

Grey Fleet

6.3

6.5

Total (Location Based)

3,303

4,341

Total (Market Based)

3,303

4,341

Direct Biogenic Emissions

286

291

LEXIA SOLUTIONS GROUP LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 11 -

Mandatory Greenhouse Gas Report intensity ratios are calculated by dividing emissions by an organisation-specific metric.

In the case of Lexia Solutions Group, the metrics chosen to normalise emissions: Turnover (GBP), FTE (FTE).

The intensity ratios as well as the business metrics are detailed below. The intensity ratio is calculated based on total emissions (location based).

Carbon Emissions per Business Metric

Current Reporting Year

Comparison Year

01/01/2024 - 31/12/2024

01/01/2023 - 31/12/2023

Emission per Turnover
(kgCO2e/GBP)

0.1

0.1

Emission per FTE
(kgCO2e/FTE)

6,978

9,239

 

Business Metric

Current Reporting Year

Comparison Year

01/01/2024 - 31/12/2024

01/01/2023 - 31/12/2023

Turnover (GBP)

67,645,000

56,609,000

FTE (FTE)

500

487

Please note that the year 1st January 2023 to 31st December 2023 (Lexia Solutions Group’s emissions reporting baseline) was re-calculated and re-baselined with a more accurate dataset in 2025, resulting in new energy and emissions figures compared to the previous SECR report for 2023.

Matters covered in the Group Strategic Report

Disclosures required under S416(4) of the Companies Act 2006 are commented upon in the Strategic Report in accordance with S414C(11) as the Directors considers them to be of strategic importance to the Group.true

Financial risk management

The Group's activities expose it to a variety of financial risks: market risk (including interest rate risk), credit risk and liquidity risk. The Group’s overall risk management programme focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the Group's financial performance.

 

Risk management is carried out on a group-wide basis under policies approved by the Board of Directors.

 

Market risk

 

Interest rate risk

 

The Group's interest rate risk arises from long-term borrowings. Borrowings issued at variable rates expose the group to cash flow interest rate risk. Borrowings issued at fixed rates expose the group to fair value interest rate risk. During 2023, the Group s borrowings were denominated solely in Sterling.

 

The Group manages its cash flow interest rate risk by using fixed interest rate borrowings where possible.

 

Credit risk

 

Credit risk is managed on a Group basis. Credit risk arises from cash and cash equivalents, derivative financial instruments and deposits with banks, as well as exposure to outstanding receivables. The Group’s policy is to manage credit exposure to trading counterparties within defined trading limits. All of the Group’s significant counterparties are assigned internal credit limits.

LEXIA SOLUTIONS GROUP LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 12 -

If any of the Group’s customers are independently rated, these ratings are used. Otherwise, if there is no independent rating, the group assesses the credit quality of the customer taking into account its financial position, past experience and other factors.

 

Liquidity risk

 

The Group is subject to the risk that it will not have sufficient borrowing facilities to fund its existing business and its future plans for growth. The Group manages its liquidity requirements with the use of both short and long term cash flow forecasts. These forecasts are supplemented by a financial headroom position which is used to demonstrate funding adequacy for at least an 18 month period. The current funding arrangements continue on a rolling basis. The Directors fully expect to arrange equivalent facilities of at least the same level as present.

 

Prudent liquidity risk management implies maintaining sufficient cash and the availability of funding through an adequate amount of committed credit facilities. Due to the nature of the underlying businesses, the treasury function aims to maintain flexibility in funding by keeping committed credit lines available.

 

Capital risk management

 

The Group's objectives when managing capital are to safeguard its ability to continue as a going concern in order to provide returns for shareholders and benefits for other stakeholders. The objectives are also to maintain an optimal capital structure to reduce the cost of capital in the Group and to ensure financial covenants contained in the bank facility agreement are met throughout the year. In order to maintain or adjust the capital structure, the group may vary the amount of dividends paid to shareholders.

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 group and company, and of the profit or loss of the group 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 group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

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 auditor of the company 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 auditor of the company is aware of that information.

LEXIA SOLUTIONS GROUP LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 13 -
On behalf of the board
J M Davy
Director
23 May 2025
LEXIA SOLUTIONS GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF LEXIA SOLUTIONS GROUP LIMITED
- 14 -
Opinion

We have audited the financial statements of Lexia Solutions Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2024 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows 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 group and parent 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 group's and 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 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.

Opinions on other matters prescribed by the Companies Act 2006

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

LEXIA SOLUTIONS GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF LEXIA SOLUTIONS GROUP LIMITED
- 15 -
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 their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or 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 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 parent 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.

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

LEXIA SOLUTIONS GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF LEXIA SOLUTIONS GROUP LIMITED
- 16 -

We assessed the susceptibility of the group’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by;

 

 

To address the risks of fraud through management bias and override controls, we:

 

 

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

 

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the director’s and other management and the inspection of regulatory and legal correspondence.

As part of our audit, we addressed the risk of management override of internal controls, including testing of journals and review of the nominal ledger. We evaluated whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud.

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.

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.

Chris Neale (Senior Statutory Auditor)
For and on behalf of BHP LLP, Statutory Auditor
Chartered Accountants
Mayesbrook House
Lawnswood Business Park
Redvers Close
Leeds
LS16 6QY
23 May 2025
LEXIA SOLUTIONS GROUP LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
- 17 -
2024
2023
Notes
£000
£000
Turnover
3
70,499
64,659
Cost of sales
(50,009)
(47,407)
Gross profit
20,490
17,252
Administrative expenses
(16,578)
(15,099)
Operating profit
4
3,912
2,153
Interest payable and similar expenses
8
(53)
(114)
Profit before taxation
3,859
2,039
Tax on profit
9
3
1,336
Profit for the financial year
3,862
3,375
Profit for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.
LEXIA SOLUTIONS GROUP LIMITED
GROUP BALANCE SHEET
AS AT
31 DECEMBER 2024
31 December 2024
- 18 -
2024
2023
Notes
£000
£000
£000
£000
Fixed assets
Intangible assets
11
-
0
7
Tangible assets
12
3,434
3,242
3,434
3,249
Current assets
Stocks
15
1,051
996
Debtors
16
20,023
17,947
Cash at bank and in hand
1,826
771
22,900
19,714
Creditors: amounts falling due within one year
17
(10,043)
(9,308)
Net current assets
12,857
10,406
Total assets less current liabilities
16,291
13,655
Creditors: amounts falling due after more than one year
18
-
(219)
Net assets
16,291
13,436
Capital and reserves
Called up share capital
22
-
0
-
0
Profit and loss reserves
16,291
13,436
Total equity
16,291
13,436
The financial statements were approved by the board of directors and authorised for issue on 23 May 2025 and are signed on its behalf by:
23 May 2025
J M Davy
Director
Company registration number 05035069 (England and Wales)
LEXIA SOLUTIONS GROUP LIMITED
COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2024
31 December 2024
- 19 -
2024
2023
Notes
£000
£000
£000
£000
Fixed assets
Tangible assets
12
94
112
Investments
13
1,088
1,020
1,182
1,132
Current assets
Debtors
16
1,580
790
Cash at bank and in hand
122
135
1,702
925
Creditors: amounts falling due within one year
17
(2,780)
(1,695)
Net current liabilities
(1,078)
(770)
Total assets less current liabilities
104
362
Creditors: amounts falling due after more than one year
18
-
(31)
Net assets
104
331
Capital and reserves
Called up share capital
22
-
0
-
0
Profit and loss reserves
104
331
Total equity
104
331

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £780,000 (2023: £965,000).

The financial statements were approved by the board of directors and authorised for issue on 23 May 2025 and are signed on its behalf by:
23 May 2025
J M Davy
Director
Company registration number 05035069 (England and Wales)
LEXIA SOLUTIONS GROUP LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
- 20 -
Share capital
Profit and loss reserves
Total
Notes
£000
£000
£000
Balance at 1 January 2023
-
0
10,972
10,972
Year ended 31 December 2023:
Profit and total comprehensive income
-
3,375
3,375
Dividends
10
-
(911)
(911)
Balance at 31 December 2023
-
0
13,436
13,436
Year ended 31 December 2024:
Profit and total comprehensive income
-
3,862
3,862
Dividends
10
-
(1,007)
(1,007)
Balance at 31 December 2024
-
0
16,291
16,291
LEXIA SOLUTIONS GROUP LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
- 21 -
Share capital
Profit and loss reserves
Total
Notes
£000
£000
£000
Balance at 1 January 2023
-
0
277
277
Year ended 31 December 2023:
Profit and total comprehensive income for the year
-
965
965
Dividends
10
-
(911)
(911)
Balance at 31 December 2023
-
0
331
331
Year ended 31 December 2024:
Profit and total comprehensive income
-
780
780
Dividends
10
-
(1,007)
(1,007)
Balance at 31 December 2024
-
0
104
104
LEXIA SOLUTIONS GROUP LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 22 -
2024
2023
Notes
£000
£000
£000
£000
Cash flows from operating activities
Cash generated from operations
25
5,508
4,712
Interest paid
(53)
(114)
Income taxes refunded
206
242
Net cash inflow from operating activities
5,661
4,840
Investing activities
Proceeds from disposal of intangibles
6
-
Purchase of tangible fixed assets
(984)
(281)
Proceeds from disposal of tangible fixed assets
43
27
Net cash used in investing activities
(935)
(254)
Financing activities
Cash (outflow)/inflow from invoice discounting facility
(1,320)
(3,198)
Movement in directors loan account
(700)
-
Payment of finance leases obligations
(644)
(619)
Dividends paid to equity shareholders
(1,007)
(911)
Net cash used in financing activities
(3,671)
(4,728)
Net increase/(decrease) in cash and cash equivalents
1,055
(142)
Cash and cash equivalents at beginning of year
771
913
Cash and cash equivalents at end of year
1,826
771
LEXIA SOLUTIONS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 23 -
1
Accounting policies
Company information

Lexia Solutions Group Limited is a private company, limited by shares, incorporated in England and Wales under the Companies Act 2006. The address of the registered office is shown on the Company Information page and the nature of the Group's operations and its principal activity is set out in the Strategic Report.

1.1
Accounting convention

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102,the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The presentation currency of these financial statements is sterling. All amounts in the financial statements have been rounded to the nearest £1,000.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgement in applying the Group’s accounting policies (see note 2).

 

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements.

In preparing the separate financial statements of the parent company, advantage has been taken of the following disclosure exemptions available to qualifying entities:

 

1.2
Basis of consolidation

The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.

 

The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Statement of Financial Position, the acquiree’s identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated Statement of Comprehensive Income from the date on which control is obtained. They are deconsolidated from the date control ceases.

1.3
Going concern

The uncertainty as to the future impact on the Company, and the wider Group, of the UK economy and the wider macroeconomic conditions has been separately considered as part of the Director's consideration of the going concern basis of preparation.

 

The Directors have prepared cash flow forecasts, based on a series of current trading forecasts and taking into account current borrowing facilities, for a period of 18 months from the date of approval of these financial statements, which indicate that the Group will have sufficient funds to meet its liabilities as they fall due for that period. Under this scenario there would be no breach of working capital facility as there is sufficient headroom. There are no material capital repayments of debt falling due within the forecast period.

 

The Directors believe that it remains appropriate to prepare the financial statements on a going concern basis.

LEXIA SOLUTIONS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 24 -
1.4
Turnover

Turnover is measured at the fair value of the consideration received or receivable and represents the amount receivable for goods supplied or services rendered, net of returns, discounts and rebates allowed by the Group and value added taxes.

 

Turnover from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, turnover is recognised only to the extent of the expenses recognised that are recoverable.

 

Turnover from the sale of goods is recognised when the significant risks and rewards of ownership have been transferred to the buyer, the Group retains no continuing involvement or control over the goods, the amount of turnover can be measured reliably and it is probable that future economic benefits will flow to the entity.

1.5
Intangible fixed assets other than goodwill

 

Brands

 

Expenditure to acquire rights of distribution is capitalised when the Group is able to demonstrate the asset will generate probable future economic benefits. Intangible assets are reported at cost less accumulated amortisation and accumulated impairment losses. Amortisation is charged on a straight line basis to administrative expenses in the Statement of Comprehensive Income over the life of the agreement which is seven years.

1.6
Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight line method or reducing balance basis.

 

Depreciation is recognised within 'administrative expenses' in the Statement of Comprehensive Income.

 

Depreciation is provided on the following basis:

Short-term leasehold property
Over the term of the lease
Plant and equipment
Straight line over 3-4 years, or 20-25% per annum reducing balance
Fixtures and fittings
20-33% per annum reducing balance, or 33-50% per annum straight line
Motor vehicles
20-25% per annum straight line

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

 

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the Consolidated Statement of Comprehensive Income.

LEXIA SOLUTIONS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 25 -
1.7
Fixed asset investments

Investments in subsidiaries are measured at cost less accumulated impairment.

1.8
Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

 

At each reporting date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately 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

In accordance with FRS 102.22, financial instruments issued by the Group are treated as equity only to the extent that they meet the following two conditions:

 

 

 

To the extent that this definition is not met, the proceeds of issue are classified as a financial liability. Where the instrument so classified takes the legal form of the entity’s own shares, the amounts presented in these financial statements for called up share capital and share premium account exclude amounts in relation to those shares.

 

Trade and other debtors/creditors

 

Trade and other debtors are recognised initially at transaction price less attributable transaction costs. Trade and other creditors are recognised initially at transaction price plus attributable transaction costs. Subsequent to initial recognition they are measured at amortised cost using the effective interest method, less any impairment losses in the case of trade debtors. If the arrangement constitutes a financing transaction, for example if payment is deferred beyond normal business terms, then it is measured at the present value of future payments discounted at a market rate of instrument for a similar debt instrument.

 

Interest-bearing borrowings classified as basic financial instruments

 

Interest-bearing borrowings are recognised initially at the present value of future payments discounted at a market rate of interest. Subsequent to initial recognition, interest-bearing borrowings are stated at amortised cost using the effective interest method, less any impairment losses. Transaction costs are expensed over the life of the facility.

 

Cash and cash equivalents

 

Cash and cash equivalents comprise cash balances and call deposits.

LEXIA SOLUTIONS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 26 -
Impairment of financial assets

Financial assets (including trade and other debtors)

 

A financial asset not carried at fair value through profit or loss is assessed at each reporting date to determine whether there is objective evidence that it is impaired. A financial asset is impaired if objective evidence indicates that a loss event has occurred after the initial recognition of the asset,and that the loss event had a negative effect on the estimated future cash flows of that asset that can be estimated reliably.

 

An impairment loss in respect of a financial asset measured at amortised cost is calculated as the difference between its carrying amount and the present value of the estimated future cash flows discounted at the asset’s original effective interest rate. For financial instruments measured at cost less impairment an impairment is calculated as the difference between its carrying amount and the best estimate of the amount that the Group would receive for the asset if it were to be sold at the reporting date. Interest on the impaired asset continues to be recognised through the unwinding of the discount. Impairment losses are recognised in profit or loss. When a subsequent event causes the amount of impairment loss to decrease, the decrease in impairment loss is reversed through profit or loss.

 

An impairment loss is reversed if and only if the reasons for the impairment have ceased to apply.

 

Impairment losses recognised in prior periods are assessed at each reporting date for any indications that the loss has decreased or no longer exists. An impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined,net of depreciation or amortisation, if no impairment loss had been recognised.

1.11
Taxation

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

Current tax

Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

 

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company and the Group operate and generate income.

Deferred tax

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting date, except that:

 

 

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

LEXIA SOLUTIONS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 27 -
1.12
Retirement benefits

The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group has no further payment obligations.

 

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of Financial Position. The assets of the plan are held separately from the Group in independently administered funds.

1.13
Leases

Assets obtained under hire purchase contracts and finance leases are capitalised as tangible fixed assets. Assets acquired by finance lease are depreciated over the shorter of the lease term and their useful lives. Assets acquired by hire purchase are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the Group.

 

Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to the Consolidated Statement of Comprehensive Income so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

Amounts due from lessees under finance leases are recognised as receivables at the amount of the group's net investment in the leases. Finance lease income is allocated to accounting periods so as to reflect a constant periodic rate of return on the group’s net investment outstanding in respect of leases.

1.14

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

1.15

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

2
Judgements and key sources of estimation uncertainty

In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

LEXIA SOLUTIONS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
2
Judgements and key sources of estimation uncertainty
(Continued)
- 28 -
Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Debtor recoverability

Whilst there are controls in place, debtor recoverability is inherently susceptible to the financial stability of the respective customers. Management must therefore make estimates for provision levels to be made.

 

The judgements, estimates and associated assumptions necessary to calculate the above provisions are based on historical experience, current industry knowledge and other reasonable factors.

Amounts recoverable on contracts

The Group conducts a significant portion of its business under contracts with customers. The group accounts for revenue on projects as performance on contracts progresses. This method places considerable importance on accurate estimates of the extent of progress towards completion and may involve estimates on the scope of deliveries and services required for fulfilling the contractually defined obligations. These significant estimates include total contract costs, total contract revenues, contract risks and other judgements. Such changes in estimates may lead to an increase or decrease of revenues.

3
Turnover
2024
2023
£000
£000
Turnover analysed by class of business
Asbestos abatement
44,135
37,562
Demolition and land remediation
19,856
21,970
Hire/consumables
3,684
3,260
Fire protection
2,824
1,867
70,499
64,659

All of the turnover arose solely within the United Kingdom.

4
Operating profit
2024
2023
£000
£000
Operating profit for the year is stated after charging/(crediting):
Depreciation of owned tangible fixed assets
486
495
Depreciation of tangible fixed assets held under finance leases
201
245
Loss/(profit) on disposal of tangible fixed assets
62
(61)
Amortisation of intangible assets
1
1
Operating lease charges
4,779
3,579
LEXIA SOLUTIONS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 29 -
5
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 group and company
13
13
Audit of the financial statements of the company's subsidiaries
56
53
69
66
For other services
Taxation compliance services
12
19
All other non-audit services
6
9
18
28
6
Employees

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

Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
Management and administration
339
202
38
39
Production
172
274
-
-
Total
511
476
38
39

Their aggregate remuneration comprised:

Group
Company
2024
2023
2024
2023
£000
£000
£000
£000
Wages and salaries
24,978
21,370
1,621
1,689
Social security costs
2,552
2,238
171
148
Pension costs
738
955
83
56
28,268
24,563
1,875
1,893
LEXIA SOLUTIONS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 30 -
7
Directors' remuneration
2024
2023
£000
£000
Remuneration for qualifying services
180
164
Company pension contributions to defined contribution schemes
45
7
225
171

During the year retirement benefits were accruing to 2 Directors (2023 - 1) in respect of defined contribution pension schemes.

8
Interest payable and similar expenses
2024
2023
£000
£000
Interest on bank overdrafts and loans
4
59
Interest on finance leases and hire purchase contracts
49
48
Other interest
-
7
Total finance costs
53
114
9
Taxation
2024
2023
£000
£000
Current tax
UK corporation tax on profits for the current period
68
(122)
Deferred tax
Origination and reversal of timing differences
(71)
(1,214)
Total tax credit
(3)
(1,336)
LEXIA SOLUTIONS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
9
Taxation
(Continued)
- 31 -

The actual credit for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2024
2023
£000
£000
Profit before taxation
3,859
2,039
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 23.52%)
965
480
Tax effect of expenses that are not deductible in determining taxable profit
40
61
Under/(over) provided in prior years
-
0
(197)
Deferred tax adjustments in respect of prior years
-
0
137
Movements in deferred tax not recognised
(1,066)
(1,857)
Fixed asset differences
2
5
Rate differences
-
0
35
Other tax adjustments, reliefs and transfers
56
-
0
Taxation credit
(3)
(1,336)

Factors that may affect future tax charges

 

The Group has tax losses of £14.1m as at 31 December 2024 (2023: £17.8m). A deferred tax asset of £1,356k (2023: £1,333k) in respect of £5,424k (2023: £5,332k) of those losses has been recognised based on forecast taxable profits. There is uncertainty in use of other losses hence no further asset has been recognised other than a deferred tax asset of £531,000 (2023: £251,000) to offset the deferred tax liability of £531,000 (2023: £251,000) in respect of fixed asset and other timing differences.

10
Dividends
2024
2023
Recognised as distributions to equity holders:
£000
£000
Contribution to trust
1,007
911
LEXIA SOLUTIONS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 32 -
11
Intangible fixed assets
Group
Brands
£000
Cost
At 1 January 2024
10
Disposals
(10)
At 31 December 2024
-
0
Amortisation and impairment
At 1 January 2024
3
Amortisation charged for the year
1
Disposals
(4)
At 31 December 2024
-
0
Carrying amount
At 31 December 2024
-
0
At 31 December 2023
7
The company had no intangible fixed assets at 31 December 2024 or 31 December 2023.

The intangible asset related to an exclusivity agreement as the sole distributor of Phoenix Brands products. It was disposed of during the year.

LEXIA SOLUTIONS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 33 -
12
Tangible fixed assets
Group
Short-term leasehold property
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£000
£000
£000
£000
£000
Cost
At 1 January 2024
795
6,383
1,648
327
9,153
Additions
14
867
101
2
984
Disposals
(105)
(288)
(384)
(69)
(846)
At 31 December 2024
704
6,962
1,365
260
9,291
Depreciation and impairment
At 1 January 2024
682
3,647
1,362
220
5,911
Depreciation charged in the year
48
471
120
48
687
Eliminated in respect of disposals
(92)
(264)
(335)
(50)
(741)
At 31 December 2024
638
3,854
1,147
218
5,857
Carrying amount
At 31 December 2024
66
3,108
218
42
3,434
At 31 December 2023
113
2,736
286
107
3,242
Company
Fixtures and fittings
Motor vehicles
Total
£000
£000
£000
Cost
At 1 January 2024
244
203
447
Additions
59
-
0
59
At 31 December 2024
303
203
506
Depreciation and impairment
At 1 January 2024
191
144
335
Depreciation charged in the year
44
33
77
At 31 December 2024
235
177
412
Carrying amount
At 31 December 2024
68
26
94
At 31 December 2023
53
59
112
LEXIA SOLUTIONS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
12
Tangible fixed assets
(Continued)
- 34 -

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

Group
Company
2024
2023
2024
2023
£000
£000
£000
£000
Plant and equipment
1,277
1,856
-
0
-
0
Motor vehicles
26
58
26
58
1,303
1,914
26
58
13
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£000
£000
£000
£000
Investments in subsidiaries
14
-
0
-
0
1,088
1,020
Movements in fixed asset investments
Company
Shares in subsidiaries
£000
Cost or valuation
At 1 January 2024
1,020
Additions
68
At 31 December 2024
1,088
Carrying amount
At 31 December 2024
1,088
At 31 December 2023
1,020
14
Subsidiaries

Details of the company's subsidiaries at 31 December 2024 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Rhodar Limited
Astra Park, Parkside Lane, Leeds, LS11 5SZ
Ordinary
100.00
Thermac (Hire) Limited
Astra Park, Parkside Lane, Leeds, LS11 5SZ
Ordinary
100.00
Rhodar Demolition Limited
Astra Park, Parkside Lane, Leeds, LS11 5SZ
Ordinary
100.00
Rhodar Industrial Services Limited
Astra Park, Parkside Lane, Leeds, LS11 5SZ
Ordinary
100.00
Rhodar Group Limited
Astra Park, Parkside Lane, Leeds, LS11 5SZ
Ordinary
100.00
LEXIA SOLUTIONS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 35 -
15
Stocks
Group
Company
2024
2023
2024
2023
£000
£000
£000
£000
Raw materials and consumables
240
177
-
-
Finished goods and goods for resale
811
819
-
0
-
0
1,051
996
-
-

The difference between purchase price or production cost of stocks and their replacement cost is not material.

 

Impairment losses totalling £Nil (2023: £Nil) were recognised in profit and loss.

16
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£000
£000
£000
£000
Trade debtors
8,564
9,049
52
7
Gross amounts owed by contract customers
5,287
4,679
-
0
-
0
Corporation tax recoverable
-
0
199
-
0
-
0
Amounts owed by group undertakings
-
-
-
67
Invoice discounting facility
3,154
1,834
-
-
Other debtors
1,264
489
1,411
632
Prepayments and accrued income
421
435
70
52
18,690
16,685
1,533
758
Deferred tax asset (note 20)
1,333
1,262
47
32
20,023
17,947
1,580
790

All amounts due from group undertakings are interest free and are repayable on demand.

 

Included within other debtors for the company and group is a balance owed from a Director. See note 27 for further detail.

 

The impairment loss recognised in profit or loss for the period in respect of bad and doubtful trade debtors was £64,000 (2023: £81,000).

LEXIA SOLUTIONS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 36 -
17
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£000
£000
£000
£000
Obligations under finance leases
19
219
644
31
34
Trade creditors
3,378
2,634
229
244
Amounts owed to group undertakings
-
0
-
0
1,904
812
Corporation tax payable
75
-
0
7
7
Other taxation and social security
1,789
1,931
42
42
Other creditors
767
781
437
465
Accruals and deferred income
3,815
3,318
130
91
10,043
9,308
2,780
1,695

All amounts owed to group undertakings are interest free, carry no security and are repayable on demand.

 

The obligations under finance lease agreements are secured against the asset to which they relate.

18
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£000
£000
£000
£000
Obligations under finance leases
19
-
0
219
-
0
31

 

19
Finance lease obligations
Group
Company
2024
2023
2024
2023
£000
£000
£000
£000
Future minimum lease payments due under finance leases:
Within one year
219
644
31
34
In two to five years
-
0
219
-
0
31
219
863
31
65

The obligations under finance lease agreements are secured against the assets to which they relate.

LEXIA SOLUTIONS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 37 -
20
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

Assets
Assets
2024
2023
Group
£000
£000
Fixed asset timing differences
(630)
(475)
Short term timing differences
29
91
Losses and other deductions
578
313
Deferred tax losses
1,356
1,333
1,333
1,262
Assets
Assets
2024
2023
Company
£000
£000
Fixed asset timing differences
(8)
(18)
Short term timing differences
8
3
Losses and other deductions
47
47
47
32
Group
Company
2024
2024
Movements in the year:
£000
£000
Asset at 1 January 2024
(1,262)
(32)
Credit to profit or loss
(71)
(15)
Asset at 31 December 2024
(1,333)
(47)
21
Retirement benefit schemes
2024
2023
Defined contribution schemes
£000
£000
Charge to profit or loss in respect of defined contribution schemes
738
955

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

LEXIA SOLUTIONS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 38 -
22
Share capital
2024
2023
2024
2023
Group and company
Number
Number
£000
£000
Ordinary shares of 1p each
8,045
8,045
-
-
23
Financial commitments, guarantees and contingent liabilities

The borrowing facilities in place at the year end are secured by unlimited debenture against the assets of the Company and its subsidiary undertakings.

24
Operating lease commitments
Lessee

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

Group
Company
2024
2023
2024
2023
£000
£000
£000
£000
Within one year
2,518
2,303
717
593
Between two and five years
3,789
4,667
889
1,157
In over five years
623
119
-
-
6,930
7,089
1,606
1,750
25
Cash generated from group operations
2024
2023
£000
£000
Profit after taxation
3,862
3,375
Adjustments for:
Taxation credited
(3)
(1,336)
Finance costs
53
114
Loss/(gain) on disposal of tangible fixed assets
62
(44)
Amortisation and impairment of intangible assets
1
1
Depreciation and impairment of tangible fixed assets
687
740
Movements in working capital:
(Increase)/decrease in stocks
(55)
134
Increase in debtors
(184)
(1,376)
Increase in creditors
1,085
3,104
Cash generated from operations
5,508
4,712
LEXIA SOLUTIONS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 39 -
26
Analysis of changes in net funds/(debt) - group
1 January 2024
Cash flows
31 December 2024
£000
£000
£000
Cash at bank and in hand
771
1,055
1,826
Obligations under finance leases
(863)
644
(219)
(92)
1,699
1,607
27
Directors' transactions
Description
% Rate
Opening balance
Amounts advanced
Closing balance
£000
£000
£000
Director loan accounts
-
-
700
700
-
700
700
28
Related party transactions

The Company has taken advantage of the available exemption conferred by Section 33.1A of FRS102 not to disclose transactions with wholly owned members of the Group.

 

During the year the Group leased property from one of the director's pension schemes. The lease cost paid to the directors' pension scheme during the year was £166,000 (2023: £165,000).

 

During the year the Group acquired services from Tradeslink Asbestos Services Limited, a wholly owned company of a subsidiary director, J M Davy, for a total value of £453,000 (2023: £484,000). The balance outstanding at the year end in relation to these transactions was £Nil (2023: £Nil).

 

During the year the Group acquired services from East Riding Laboratories Limited, a wholly owned company of connected parties to D Hart, a subsidiary director during the year, for a total value of £3,000 (2023: £4,000). The balance outstanding at the year end in relation to these transactions was £100 (2023: £Nil).

 

During the year, the Group disposed of a motor vehicle to a Director at a market rate of £22,500, (NBV: £18,951).

 

The Directors consider the members of key management to be the directors of principal trading subsidiaries. Total compensation of key management personnel in the year amounted to £1,258,000 (2023: £1,188,000).

 

During the year the company made a capital contribution of £1,070,000 (2023: £911,000) to The Lexia Solutions Employee Ownership Trust. J M Davy, a Director, is also a director of the trustee company of the Trust.

 

29
Controlling party

The ultimate controlling party is Lexia Solutions Trustees Limited, a company limited by guarantee incorporated in the United Kingdom, with registered office at Unit C Astra Park, Parkside Lane, Leeds, West Yorkshire, United Kingdom, LS11 5SZ.

2024-12-312024-01-01falsefalseCCH SoftwareCCH Accounts Production 2025.100No description of principal activityJ M DavyAlexander de Graft-HayfordA de Graft-Hayfordfalse05035069bus:Consolidated2024-01-012024-12-31050350692024-01-012024-12-3105035069bus:Director12024-01-012024-12-3105035069bus:CompanySecretaryDirector12024-01-012024-12-3105035069bus:CompanySecretary12024-01-012024-12-3105035069bus:Director22024-01-012024-12-3105035069bus:RegisteredOffice2024-01-012024-12-31050350692024-12-3105035069bus:Consolidated2024-12-3105035069bus:Consolidated2023-01-012023-12-31050350692023-01-012023-12-3105035069core:OtherResidualIntangibleAssetsbus:Consolidated2024-12-3105035069core:OtherResidualIntangibleAssetsbus:Consolidated2023-12-3105035069core:PatentsTrademarksLicencesConcessionsSimilarbus:Consolidated2024-12-3105035069core:PatentsTrademarksLicencesConcessionsSimilarbus:Consolidated2023-12-3105035069bus:Consolidated2023-12-31050350692023-12-3105035069core:LandBuildingscore:LeasedAssetsHeldAsLesseebus:Consolidated2024-12-3105035069core:PlantMachinerybus:Consolidated2024-12-3105035069core:FurnitureFittingsbus:Consolidated2024-12-3105035069core:MotorVehiclesbus:Consolidated2024-12-3105035069core:LandBuildingscore:LeasedAssetsHeldAsLesseebus:Consolidated2023-12-3105035069core:PlantMachinerybus:Consolidated2023-12-3105035069core:FurnitureFittingsbus:Consolidated2023-12-3105035069core:MotorVehiclesbus:Consolidated2023-12-3105035069core:FurnitureFittings2024-12-3105035069core:MotorVehicles2024-12-3105035069core:FurnitureFittings2023-12-3105035069core:MotorVehicles2023-12-3105035069core:ShareCapitalbus:Consolidated2024-12-3105035069core:ShareCapitalbus:Consolidated2023-12-3105035069core:RetainedEarningsAccumulatedLossesbus:Consolidated2023-12-3105035069core:ShareCapital2024-12-3105035069core:ShareCapital2023-12-3105035069core:RetainedEarningsAccumulatedLosses2024-12-3105035069core:RetainedEarningsAccumulatedLosses2023-12-3105035069core:ShareCapitalbus:Consolidated2022-12-31050350692022-12-3105035069core:RetainedEarningsAccumulatedLossesbus:Consolidated2024-12-3105035069core:ShareCapital2022-12-3105035069core:RetainedEarningsAccumulatedLosses2022-12-3105035069bus:Consolidated2022-12-3105035069core:IntangibleAssetsOtherThanGoodwill2024-01-012024-12-3105035069core:LandBuildingscore:LongLeaseholdAssets2024-01-012024-12-3105035069core:PlantMachinery2024-01-012024-12-3105035069core:FurnitureFittings2024-01-012024-12-3105035069core:MotorVehicles2024-01-012024-12-3105035069core:UKTaxbus:Consolidated2024-01-012024-12-3105035069core:UKTaxbus:Consolidated2023-01-012023-12-3105035069bus:Consolidated12024-01-012024-12-3105035069bus:Consolidated12023-01-012023-12-3105035069bus:Consolidated22024-01-012024-12-3105035069bus:Consolidated22023-01-012023-12-3105035069bus:Consolidated32024-01-012024-12-3105035069bus:Consolidated32023-01-012023-12-3105035069bus:Consolidated42024-01-012024-12-3105035069bus:Consolidated42023-01-012023-12-3105035069bus:Consolidated52024-01-012024-12-3105035069bus:Consolidated52023-01-012023-12-3105035069core:PatentsTrademarksLicencesConcessionsSimilarbus:Consolidated2023-12-3105035069core:PatentsTrademarksLicencesConcessionsSimilarbus:Consolidated2024-01-012024-12-3105035069core:LandBuildingscore:LeasedAssetsHeldAsLesseebus:Consolidated2023-12-3105035069core:PlantMachinerybus:Consolidated2023-12-3105035069core:FurnitureFittingsbus:Consolidated2023-12-3105035069core:MotorVehiclesbus:Consolidated2023-12-3105035069bus:Consolidated2023-12-3105035069core:FurnitureFittings2023-12-3105035069core:MotorVehicles2023-12-31050350692023-12-3105035069core:LandBuildingscore:LeasedAssetsHeldAsLesseebus:Consolidated2024-01-012024-12-3105035069core:PlantMachinerybus:Consolidated2024-01-012024-12-3105035069core:FurnitureFittingsbus:Consolidated2024-01-012024-12-3105035069core:MotorVehiclesbus:Consolidated2024-01-012024-12-3105035069core:PlantMachinery2024-12-3105035069core:PlantMachinery2023-12-3105035069core:Subsidiary12024-01-012024-12-3105035069core:Subsidiary22024-01-012024-12-3105035069core:Subsidiary32024-01-012024-12-3105035069core:Subsidiary42024-01-012024-12-3105035069core:Subsidiary52024-01-012024-12-3105035069core:Subsidiary112024-01-012024-12-3105035069core:Subsidiary222024-01-012024-12-3105035069core:Subsidiary332024-01-012024-12-3105035069core:Subsidiary442024-01-012024-12-3105035069core:Subsidiary552024-01-012024-12-3105035069core:CurrentFinancialInstrumentsbus:Consolidated2024-12-3105035069core:CurrentFinancialInstrumentsbus:Consolidated2023-12-3105035069core:CurrentFinancialInstruments2024-12-3105035069core:CurrentFinancialInstruments2023-12-3105035069core:Non-currentFinancialInstrumentsbus:Consolidated2024-12-3105035069core:Non-currentFinancialInstrumentsbus:Consolidated2023-12-3105035069core:Non-currentFinancialInstruments2024-12-3105035069core:Non-currentFinancialInstruments2023-12-3105035069core:CurrentFinancialInstrumentscore:WithinOneYearbus:Consolidated2024-12-3105035069core:CurrentFinancialInstrumentscore:WithinOneYearbus:Consolidated2023-12-3105035069core:CurrentFinancialInstrumentscore:WithinOneYear2024-12-3105035069core:CurrentFinancialInstrumentscore:WithinOneYear2023-12-3105035069core:WithinOneYearbus:Consolidated2024-12-3105035069core:WithinOneYearbus:Consolidated2023-12-3105035069core:WithinOneYear2024-12-3105035069core:WithinOneYear2023-12-3105035069core:BetweenTwoFiveYearsbus:Consolidated2024-12-3105035069core:BetweenTwoFiveYearsbus:Consolidated2023-12-3105035069core:BetweenTwoFiveYears2024-12-3105035069core:BetweenTwoFiveYears2023-12-3105035069bus:PrivateLimitedCompanyLtd2024-01-012024-12-3105035069bus:FRS1022024-01-012024-12-3105035069bus:Audited2024-01-012024-12-3105035069bus:ConsolidatedGroupCompanyAccounts2024-01-012024-12-3105035069bus:FullAccounts2024-01-012024-12-31xbrli:purexbrli:sharesiso4217:GBP