Company registration number 00202442 (England and Wales)
J.H. LAVENDER (HOLDINGS) LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
J.H. LAVENDER (HOLDINGS) LIMITED
COMPANY INFORMATION
Directors
Mr A Taylor
Mr I M Timings
Dr A J Rose
Mr J M Warner
Company number
00202442
Registered office
Hall Green Works
Crankhall Lane
West Bromwich
West Midlands
B71 3JZ
Auditor
CK Audit
No 4 Castle Court 2
Castlegate Way
Dudley
West Midlands
DY1 4RH
Business address
Hall Green Works
Crankhall Lane
West Bromwich
West Midlands
B71 3JZ
J.H. LAVENDER (HOLDINGS) LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Directors' responsibilities statement
5
Independent auditor's report
6 - 8
Profit and loss account
9
Group statement of comprehensive income
10
Group balance sheet
11
Company balance sheet
12 - 13
Group statement of changes in equity
14
Company statement of changes in equity
15
Group statement of cash flows
16
Company statement of cash flows
17
Notes to the financial statements
18 - 37
J.H. LAVENDER (HOLDINGS) LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2025
- 1 -

The directors present the strategic report for the year ended 31 March 2025.

Review of the business

Following a profit of £432,934 in 2024, the Directors are extremely pleased to report a profit of £452,159 for the year ending 31st March 2025. To achieve 2 consecutive years of profitability, after the recent and on-going trials and tribulations in the manufacturing sector and in the economy as a whole, supports the Directors view that the foundations of business are now stronger than ever!

 

Die-casting remains a very competitive industry with continued cost pressures being encountered throughout the financial year. Most notably, from 1st April 2024, a further National Living Wage increase of 9.8% was imposed by the Government, which had a major influence on employee pay expectations at all levels within the business. On the basis that our customers supported us with unit price increases in the previous year commencing 1st April 2023, to cover increases in energy, and labour and consumables due to high inflation, the Directors took the stance that the business would attempt to absorb any increases in operating costs this year through further improvements in production efficiencies. This has been partially achieved and was made possible by maintaining a stable and well-trained work force, along with more consistent production output and lower scrap rates. This scenario was assisted with reduced fluctuations in customer demand, smoothing production and planning issues.

 

We were able to secure unit price increases as from 1st April 2023, and a major proportion of this related to a separate energy surcharge agreement. As part of the negotiations with our customers, the agreement was that as we greatly appreciated their support when the prices were increasing, when the time came to renew contracts, any reductions would be duly passed on. The business was able to do this during the year and offer our customers reductions in selling prices, which further underpins and supports our close working relationships with them.

 

In the year turnover was £15,457,395 reducing from a company historic high of £17,120,348 in 2024. However, this reduction of £1,662,953 (9.7%) is not due to a reduction in output. As previously stated, energy reductions were passed back on to the customer during 2024 and this accounted for a direct like-for-like reduction in turnover of circa £300K. In addition, the sales value of child parts for assembly operations peaked at £1.8M in 2023. Due to changes during 2024 in process routes and some assembled parts becoming obsolete, this value reduced by £650K to £1.15M. The balance of the reduction in turnover between the years was due to a decrease in tooling sales of approx. £700K.

 

With a second year of consecutive profits, the balance sheet has strengthened overall with total equity increasing from £3,035,715 in 2024 to £3,617,817 in 2025, which represents a 31.4% increase. Then looking specifically at the net current liabilities, this position has improved again from (£948,692) in 2024 to (£742,625) in 2025. Finally on the balance sheet, the CBILS loan and 2 off RLS loans, all required during and after the COVID-19 crisis, have continued to be serviced during the year and there has been no requirements for any additional loan finance. Following a 33.6% reduction in long-term finance in the previous year, it has reduced again from (£1,391,562) to (£1,003,374) in 2025, a further reduction of 27.9%.

J.H. LAVENDER (HOLDINGS) LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 2 -
Principal risks and uncertainties

Price Risk

 

During the financial year, raw material (aluminium ingot) prices have again remained stable at a slightly lower average of £2,101 per metric ton, compared to £2,188 last year. Any movement in prices, up or down, are mitigated by agreements that allow the business to pass on any movements in price to the customer.

 

Interest Rate Risk

 

The group's invoice discounting facility is linked to the Bank of England base rate, which has continued to reduce gradually from its 16 year high of 5.25% and currently stands at 4.25% This has therefore reduced the element of interest rate risk faced by the business. This position should continue with further reductions forecast.

 

Economy Risk

 

Due to various geopolitical factors, include conflicts in the Middle East and Tariffs being imposed by the USA, the outlook for the UK economy is very fragile. With such issues beyond the control of the business, there is very little that can be done to mitigate such risks.

 

Energy Risk

 

Even though there have been reductions in the wholesale energy prices, there is still volatility in the energy markets, so this is a continuing risk for the business as the aluminium die-casting process is a high consumer of energy. Currently, there is stability for the business for the next 12 months, due to the long-term energy contracts that were signed, but in 2026 these are due for renewal so the energy risk will return.

Key performance indicators

Analysis using key performance indicators:

 

Profit ratio
Pre-tax profit margin 2.92% (2024: 2.53%)

 

Activity ratio
Stock turnover 8.3% (2024: 6.9%)

 

Capital ratio
Interest cover 2.27 (2024: 2.04)

 

On behalf of the board

Mr I M Timings
Director
17 July 2025
J.H. LAVENDER (HOLDINGS) LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2025
- 3 -

The directors present their annual report and financial statements for the year ended 31 March 2025.

Principal activities

The principal activity of the company and group continued to be that of aluminium pressure and gravity diecasters and machinists.

Results and dividends

The results for the year are set out on page 9.

No ordinary dividends were paid. The directors do not recommend payment of a further dividend.

Directors

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

Mr A Taylor
Mr I M Timings
Dr A J Rose
Mr J M Warner
Future developments

As a result of the new Governments first budget, not only was there another increase in the National Living Wage of 6.7% from April 2025, but there were also increases to the rate of employer national insurance contributions and a reduction in the threshold, ultimately resulting in an additional increase in employer NI contributions.

 

As this represented a significant increase in operating costs and as it was on the back of a 9.8% increase from April 2024 which the business chose to absorb, this year the Directors were left with little choice other than to request price increases from our customer base.

 

Following detailed negotiations, the Directors can confirm that all the increases requested were accepted by our customers. As a result, forecasts for the new financial year commencing April 2025 confirm that the business will remain profitable for the third consecutive year.

 

Turnover is forecast to reduce to £14M, again reductions are due to passing on further energy surcharge reductions to customers and this turnover figure reflects a full year of reductions in the sales value of child part components for assembly parts that is forecast to be £300K compared to £1.8M only 2 years ago.

 

With on-going profits forecast, the cash position is also forecast to remain positive. However, the invoice discounting facility provided by HSBC plc, will continue to be required, but at a much lower level compared to previous years. This will help to reduce the discounting cost of the facility, which will also continue to fall in line with any further interest rate reductions. Existing long-term debt will continue to be serviced and further reduced, with most of it being cleared in 12 months’ time. This will also improve levels of profitability further with the removal of these finance costs.

 

The long-term energy contracts that were secured in January 2024 when the market was low are due for renewal in April 26. At this moment in time with all the Geopolitical factors present, it is difficult to forecast if the new contracts will be secured at higher or lower rates than the existing ones. But based on previous agreements with customers the Directors are confident that that the customer base will once again be supportive in accepting any energy surcharge that is required.

 

The above is all in line with previous predictions made by the Directors that the business was entering a period of consolidation with sustained and increasing levels of profitability. It was suggested that this scenario would continue for 3-5 years, and the business is now in the third year of this time frame and as things stand, years 4 and 5 are expected to produce similar financial outcomes.

J.H. LAVENDER (HOLDINGS) LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 4 -
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.

Medium-sized companies exemption

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

On behalf of the board
Mr I M Timings
Director
17 July 2025
J.H. LAVENDER (HOLDINGS) LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MARCH 2025
- 5 -

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.

J.H. LAVENDER (HOLDINGS) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF J.H. LAVENDER (HOLDINGS) LIMITED
- 6 -
Opinion

We have audited the financial statements of J. H. Lavender (Holdings) Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2025 which comprise the group profit and loss account, 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, the company 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:

J.H. LAVENDER (HOLDINGS) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF J.H. LAVENDER (HOLDINGS) LIMITED
- 7 -
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.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

Extent to which the audit was considered capable of detecting irregularities, including fraud

We identified and assessed the risks of material misstatement of the financial statements, in respect of irregularities whether due to fraud or error, or non compliance with laws and regulations and then designed and performed audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:

We obtained an understanding of the legal and regulatory frameworks that are applicable to the Company by discussion and enquiry with the directors and management team and our general knowledge and experience of the aluminium diecasting sector.

We focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation, data protection, employment, and health and safety legislation;

We assessed the extent of compliance with the laws and regulations identified above through making enquiries of management, reviewing correspondence with relevant regulators.

J.H. LAVENDER (HOLDINGS) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF J.H. LAVENDER (HOLDINGS) LIMITED
- 8 -
Audit response to risks identified

We assessed the susceptibility of the Company’s financial statements to material misstatement, including how fraud might occur. Audit procedures performed included but were not limited to:

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. 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 directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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

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.

Frances Clapham (FCA)
For and on behalf of CK Audit
17 July 2025
Chartered Accountants
Statutory Auditor
No 4 Castle Court 2
Castlegate Way
Dudley
West Midlands
DY1 4RH
J.H. LAVENDER (HOLDINGS) LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2025
- 9 -
2025
2024
Notes
£
£
Turnover
3
15,457,395
17,120,348
Cost of sales
(12,801,032)
(14,469,585)
Gross profit
2,656,363
2,650,763
Administrative expenses
(1,858,976)
(1,813,377)
Other operating income
11,579
7,681
Operating profit
4
808,966
845,067
Interest receivable and similar income
7
334
1,320
Interest payable and similar expenses
8
(357,141)
(413,453)
Profit before taxation
452,159
432,934
Tax on profit
9
104,300
(33,826)
Profit for the financial year
27
556,459
399,108
Profit for the financial year is all attributable to the owners of the parent company.

The profit and loss account has been prepared on the basis that all operations are continuing operations.

J.H. LAVENDER (HOLDINGS) LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2025
- 10 -
2025
2024
£
£
Profit for the year
556,459
399,108
Other comprehensive income
Revaluation of tangible fixed assets
25,643
-
0
Cash flow hedges gain arising in the year
-
0
-
0
Total comprehensive income for the year
582,102
399,108
Total comprehensive income for the year is all attributable to the owners of the parent company.
J.H. LAVENDER (HOLDINGS) LIMITED
GROUP BALANCE SHEET
AS AT 31 MARCH 2025
31 March 2025
- 11 -
2025
2024
Notes
£
£
£
£
Fixed assets
Tangible assets
10
6,210,807
6,221,912
Current assets
Stocks
14
1,279,765
1,182,722
Debtors
15
3,867,233
5,130,379
Cash at bank and in hand
173,036
49,946
5,320,034
6,363,047
Creditors: amounts falling due within one year
16
(6,062,659)
(7,311,739)
Net current liabilities
(742,625)
(948,692)
Total assets less current liabilities
5,468,182
5,273,220
Creditors: amounts falling due after more than one year
17
(1,003,374)
(1,391,562)
Provisions for liabilities
Deferred tax liability
20
846,991
845,943
(846,991)
(845,943)
Net assets
3,617,817
3,035,715
Capital and reserves
Called up share capital
23
3,527
3,527
Share premium account
24
160,833
160,833
Revaluation reserve
25
11,557
(14,086)
Capital redemption reserve
26
112
112
Profit and loss reserves
27
3,441,788
2,885,329
Total equity
3,617,817
3,035,715

These financial statements have been prepared in accordance with the provisions relating to medium-sized groups.

The financial statements were approved by the board of directors and authorised for issue on 17 July 2025 and are signed on its behalf by:
17 July 2025
Mr I M Timings
Director
Company registration number 00202442 (England and Wales)
J.H. LAVENDER (HOLDINGS) LIMITED
COMPANY BALANCE SHEET
AS AT 31 MARCH 2025
31 March 2025
- 12 -
2025
2024
Notes
£
£
£
£
Fixed assets
Tangible assets
10
72,113
96,609
Investment property
11
2,315,000
1,995,000
Investments
12
1,000
1,000
2,388,113
2,092,609
Current assets
Debtors
15
17,256
21,901
Cash at bank and in hand
1,323
667
18,579
22,568
Creditors: amounts falling due within one year
16
(511,381)
(213,325)
Net current liabilities
(492,802)
(190,757)
Total assets less current liabilities
1,895,311
1,901,852
Creditors: amounts falling due after more than one year
17
(652,135)
(679,788)
Provisions for liabilities
Deferred tax liability
20
10,993
1,059
(10,993)
(1,059)
Net assets
1,232,183
1,221,005
Capital and reserves
Called up share capital
23
3,527
3,527
Share premium account
24
160,833
160,833
Capital redemption reserve
26
112
112
Profit and loss reserves
27
1,067,711
1,056,533
Total equity
1,232,183
1,221,005
J.H. LAVENDER (HOLDINGS) LIMITED
COMPANY BALANCE SHEET (CONTINUED)
AS AT 31 MARCH 2025
31 March 2025
- 13 -

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 £11,178 (2024 - £245 profit).

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements were approved by the board of directors and authorised for issue on 17 July 2025 and are signed on its behalf by:
17 July 2025
Mr I M Timings
Director
Company registration number 00202442 (England and Wales)
J.H. LAVENDER (HOLDINGS) LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2025
- 14 -
Share capital
Share premium account
Revaluation reserve
Capital redemption reserve
Profit and loss reserves
Total
£
£
£
£
£
£
Balance at 1 April 2023
3,527
160,833
(14,086)
112
2,486,221
2,636,607
Year ended 31 March 2024:
Profit and total comprehensive income
-
-
-
-
399,108
399,108
Balance at 31 March 2024
3,527
160,833
(14,086)
112
2,885,329
3,035,715
Year ended 31 March 2025:
Profit for the year
-
-
-
-
556,459
556,459
Other comprehensive income:
Revaluation of tangible fixed assets
-
-
25,643
-
-
25,643
Total comprehensive income
-
-
25,643
-
556,459
582,102
Balance at 31 March 2025
3,527
160,833
11,557
112
3,441,788
3,617,817
J.H. LAVENDER (HOLDINGS) LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2025
- 15 -
Share capital
Share premium account
Capital redemption reserve
Profit and loss reserves
Total
£
£
£
£
£
Balance at 1 April 2023
3,527
160,833
112
1,056,288
1,220,760
Year ended 31 March 2024:
Profit and total comprehensive income for the year
-
-
-
245
245
Balance at 31 March 2024
3,527
160,833
112
1,056,533
1,221,005
Year ended 31 March 2025:
Profit and total comprehensive income
-
-
-
11,178
11,178
Balance at 31 March 2025
3,527
160,833
112
1,067,711
1,232,183
J.H. LAVENDER (HOLDINGS) LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2025
- 16 -
2025
2024
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
31
1,084,726
996,223
Interest paid
(357,141)
(413,453)
Income taxes refunded
105,073
323,406
Net cash inflow from operating activities
832,658
906,176
Investing activities
Purchase of tangible fixed assets
(315,999)
(461,098)
Interest received
334
1,320
Net cash used in investing activities
(315,665)
(459,778)
Financing activities
Repayment of bank loans
(370,686)
(355,576)
Payment of finance leases obligations
(23,217)
(56,822)
Net cash used in financing activities
(393,903)
(412,398)
Net increase in cash and cash equivalents
123,090
34,000
Cash and cash equivalents at beginning of year
49,946
15,946
Cash and cash equivalents at end of year
173,036
49,946
J.H. LAVENDER (HOLDINGS) LIMITED
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2025
- 17 -
2025
2024
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
32
355,183
58,449
Interest paid
(26,802)
(33,130)
Income taxes paid
-
0
(1)
Net cash inflow from operating activities
328,381
25,318
Investing activities
Investment Property movement
(294,357)
-
0
Net cash used in investing activities
(294,357)
-
Financing activities
Repayment of bank loans
(33,368)
(25,833)
Net cash used in financing activities
(33,368)
(25,833)
Net increase/(decrease) in cash and cash equivalents
656
(515)
Cash and cash equivalents at beginning of year
667
1,182
Cash and cash equivalents at end of year
1,323
667
J.H. LAVENDER (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
- 18 -
1
Accounting policies
Company information

J. H. Lavender (Holdings) Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Hall Green Works, Crankhall Lane, West Bromwich, West Midlands, B71 3JZ.

 

The group consists of J. H. Lavender (Holdings) Limited and all of its subsidiaries.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

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

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

1.2
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company J. H. Lavender (Holdings) Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 31 March 2025. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

J.H. LAVENDER (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
1
Accounting policies
(Continued)
- 19 -
1.4
Going concern

With the group remaining in a profit-making position for a sustained period, this has enabled a further improvement in the net current liabilities position from (£948,692) in 2024 to (£742,625) in 2025. With profits forecast for subsequent years this trend is set to continue.

In addition, following a further reduction of 27.9% in long-term finance from (£1,391,562) to (£1,003,374) in 2025, at the end of the current financial year (31st March 2026) long-term finance liabilities are anticipated to further decrease.

HSBC plc continue to provide working capital support via an invoice discounting facility, with limits increasing when required in order to facilitate any growth in turnover. To fund increases in capacity where required, in addition to grants from the local council, HSBC plc continue to provide the option for asset finance.

 

At the time of approving the directors believe that the company has adequate resources to continue in

operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.5
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

1.6
Tangible fixed assets

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

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

Freehold land and buildings
No depreciation
Plant and equipment
8% - 20% reducing balance
Fixtures and fittings
10 years straight line
Computers
10% - 20% straight line
Motor vehicles
20% straight line

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

Properties whose fair value can be measured reliably are held under the revaluation model and are carried at a revalued amount, being their fair value at the date of valuation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. The fair value of the land and buildings is usually considered to be their market value.

 

Revaluation gains and losses are recognised in other comprehensive income and accumulated in equity, except to the extent that a revaluation gain reverses a revaluation loss previously recognised in profit or loss or a revaluation loss exceeds the accumulated revaluation gains recognised in equity; such gains and loss are recognised in profit or loss.

 

J.H. LAVENDER (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
1
Accounting policies
(Continued)
- 20 -
1.7
Fixed asset investments

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

1.8
Impairment of fixed assets

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

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

1.9
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

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

1.10
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.

1.11
Financial instruments

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

 

Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

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

Basic financial assets

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

J.H. LAVENDER (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
1
Accounting policies
(Continued)
- 21 -
Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

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

Basic financial liabilities

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

 

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

 

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

Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.12
Equity instruments

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

1.13
Taxation

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

J.H. LAVENDER (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
1
Accounting policies
(Continued)
- 22 -
Current tax

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

Deferred tax

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

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.14
Employee benefits

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

 

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

 

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

1.15
Retirement benefits

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

1.16
Leases

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

 

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

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

J.H. LAVENDER (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
1
Accounting policies
(Continued)
- 23 -
1.17
Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

 

Government grants relating to turnover are recognised as income over the periods when the related costs are incurred. Grants relating to an asset are recognised in income systematically over the asset's expected useful life. If part of such a grant is deferred it is recognised as deferred income rather than being deducted from the asset's carrying amount.

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.

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.

Valuation of parent's freehold land and buildings

This accounting estimate in respect of reliably estimating the carrying value of the freehold land and buildings. The fair value of the land and buildings was most recently determined by Bruton Knowles LLP Chartered Surveyors in March 2025. All valuations were completed on the basis of fair value to comply with FRS102.

 

Their independent valuation has been carried out in accordance with Royal Institute of Chartered Surveyors - RICS Valuation - Global Standards (the 'Red Book'), and other relevant RICS guidance notes, by RICS qualified valuers.

3
Turnover and other revenue
2025
2024
£
£
Turnover analysed by class of business
Principal activity
15,457,395
17,120,348
2025
2024
£
£
Turnover analysed by geographical market
United Kingdom
14,435,201
15,745,802
Europe
1,003,285
1,342,400
Rest of world
18,909
32,146
15,457,395
17,120,348
J.H. LAVENDER (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
3
Turnover and other revenue
(Continued)
- 24 -
2025
2024
£
£
Other revenue
Interest income
334
1,320
Grants received
1,723
-
4
Operating profit
2025
2024
£
£
Operating profit for the year is stated after charging/(crediting):
Government grants
(1,723)
-
Fees payable to the group's auditor for the audit of the group's financial statements
4,475
3,950
Depreciation of owned tangible fixed assets
345,178
339,779
Depreciation of tangible fixed assets held under finance leases
7,569
8,227
Operating lease charges
35,823
30,394
5
Employees

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

Group
Company
2025
2024
2025
2024
Number
Number
Number
Number
Production staff
84
86
-
-
Management and administration
24
25
-
-
Directors
4
4
4
4
Total
112
115
4
4

Their aggregate remuneration comprised:

Group
Company
2025
2024
2025
2024
£
£
£
£
Wages and salaries
4,159,689
4,067,923
-
0
-
0
Social security costs
443,718
428,682
-
-
Pension costs
175,276
169,734
-
0
-
0
4,778,683
4,666,339
-
0
-
0
J.H. LAVENDER (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 25 -
6
Directors' remuneration
2025
2024
£
£
Remuneration for qualifying services
474,974
480,993
Company pension contributions to defined contribution schemes
36,400
32,116
511,374
513,109

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2024 - 2).

Remuneration disclosed above includes the following amounts paid to the highest paid director:
2025
2024
£
£
Remuneration for qualifying services
219,663
217,074
Company pension contributions to defined contribution schemes
26,004
25,716
7
Interest receivable and similar income
2025
2024
£
£
Interest income
Interest on bank deposits
334
1,320
2025
2024
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
334
1,320
8
Interest payable and similar expenses
2025
2024
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
92,661
134,668
Interest on invoice finance arrangements
249,511
256,962
342,172
391,630
Other finance costs:
Interest on finance leases and hire purchase contracts
2,249
4,739
Other interest
12,720
17,084
Total finance costs
357,141
413,453
J.H. LAVENDER (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 26 -
9
Taxation
2025
2024
£
£
Current tax
Adjustments in respect of prior periods
(105,073)
-
0
Deferred tax
Origination and reversal of timing differences
773
33,826
Total tax (credit)/charge
(104,300)
33,826

The actual (credit)/charge 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:

2025
2024
£
£
Profit before taxation
452,159
432,934
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2024: 25.00%)
113,040
108,234
Tax effect of expenses that are not deductible in determining taxable profit
336
1,938
Tax effect of income not taxable in determining taxable profit
(7,632)
(1,113)
Tax effect of utilisation of tax losses not previously recognised
(126,753)
(75,061)
Adjustments in respect of prior years
(105,073)
-
0
Depreciation on assets not qualifying for tax allowances
5,410
5,207
Other permanent differences
1,028
-
0
Under/(over) provided in prior years
-
0
(5,379)
Deferred tax adjustments in respect of prior years
15,344
-
0
Taxation (credit)/charge
(104,300)
33,826
J.H. LAVENDER (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 27 -
10
Tangible fixed assets
Group
Freehold land and buildings
Assets under construction
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
£
£
Cost or valuation
At 1 April 2024
1,995,000
294,357
9,236,061
366,027
363,292
21,500
12,276,237
Additions
-
0
-
0
274,162
710
41,127
-
0
315,999
Disposals
-
0
-
0
-
0
(49,887)
(246,579)
-
0
(296,466)
Revaluation
25,643
-
0
-
0
-
0
-
0
-
0
25,643
Transfers
294,357
(294,357)
-
0
-
0
-
0
-
0
-
0
At 31 March 2025
2,315,000
-
0
9,510,223
316,850
157,840
21,500
12,321,413
Depreciation and impairment
At 1 April 2024
-
0
-
0
5,450,514
267,081
320,386
16,344
6,054,325
Depreciation charged in the year
-
0
-
0
310,026
25,120
14,164
3,437
352,747
Eliminated in respect of disposals
-
0
-
0
-
0
(49,887)
(246,579)
-
0
(296,466)
At 31 March 2025
-
0
-
0
5,760,540
242,314
87,971
19,781
6,110,606
Carrying amount
At 31 March 2025
2,315,000
-
0
3,749,683
74,536
69,869
1,719
6,210,807
At 31 March 2024
1,995,000
294,357
3,785,547
98,946
42,906
5,156
6,221,912
J.H. LAVENDER (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 28 -
Company
Fixtures and fittings
£
Cost or valuation
At 1 April 2024 and 31 March 2025
301,323
Depreciation and impairment
At 1 April 2024
204,714
Depreciation charged in the year
24,496
At 31 March 2025
229,210
Carrying amount
At 31 March 2025
72,113
At 31 March 2024
96,609

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
2025
2024
2025
2024
£
£
£
£
Plant and equipment
87,041
94,610
-
0
-
0

The following assets are carried at valuation. If the assets were measured using the cost model, the carrying amounts would be as follows:

Freehold Land & Buildings
2025
2024
£
£
Group
Cost
2,639,413
2,345,056
Accumulated depreciation
(514,120)
(467,592)
Carrying value
2,125,293
1,877,464
Company
Cost
2,639,413
2,345,056
Accumulated depreciation
(514,120)
(467,592)
Carrying value
2,125,293
1,877,464
J.H. LAVENDER (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 29 -
11
Investment property
Group
Company
2025
2025
£
£
Fair value
At 1 April 2024
-
1,995,000
Transfer from subsidiary
-
294,357
Net gains or losses through fair value adjustments
-
25,643
At 31 March 2025
-
2,315,000

The valuation of freehold property in March 2025 was conducted by Bruton Knowles LLP. They are independent valuers who hold appropriate qualifications with relevant experience in this field.

 

The valuation was prepared in accordance with RICS Valuation - Global Standards.

 

The method used in determining the valuation of freehold land and buildings is the fair value as being: the price that would be received to see an asset, or paid to transfer a liability, in an orderly transaction between market participants at the measurement date.

12
Fixed asset investments
Group
Company
2025
2024
2025
2024
Notes
£
£
£
£
Investments in subsidiaries
13
-
0
-
0
1,000
1,000
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 April 2024 and 31 March 2025
1,000
Carrying amount
At 31 March 2025
1,000
At 31 March 2024
1,000
13
Subsidiaries

Details of the company's subsidiaries at 31 March 2025 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
J.H. Lavender & Company Limited
United Kingdom
Ordinary
100.00
J.H. LAVENDER (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 30 -
14
Stocks
Group
Company
2025
2024
2025
2024
£
£
£
£
Raw materials and consumables
170,365
181,351
-
-
Work in progress
1,109,400
1,001,371
-
-
1,279,765
1,182,722
-
-
15
Debtors
Group
Company
2025
2024
2025
2024
Amounts falling due within one year:
£
£
£
£
Trade debtors
3,520,651
4,861,224
-
0
-
0
Other debtors
7,993
3,410
1,105
1,025
Prepayments and accrued income
182,438
109,869
-
0
-
0
3,711,082
4,974,503
1,105
1,025
Deferred tax asset (note 20)
156,151
155,876
16,151
20,876
3,867,233
5,130,379
17,256
21,901

Included in the above trade debtors figure are balances totalling £3,027,359 (2024 - £3,888,671 ) that are subject to invoice finance arrangements. The trade debtor balances have been transferred to the counterparty, though the transaction does not qualify for derecognition on the basis that the late payment risk is retained by the company. The associated liability recognised in creditors amounts to £2,786,847 (2024 - £3,756,432).

16
Creditors: amounts falling due within one year
Group
Company
2025
2024
2025
2024
Notes
£
£
£
£
Bank loans
18
364,330
370,045
27,011
32,726
Obligations under finance leases
19
23,217
23,217
-
0
-
0
Trade creditors
2,147,699
2,346,298
1,250
-
0
Amounts owed to group undertakings
-
0
-
0
478,341
172,984
Other taxation and social security
308,300
306,196
-
-
Government grants
21
118,771
3,655
494
3,655
Other creditors
2,842,376
3,764,286
10
10
Accruals and deferred income
257,966
498,042
4,275
3,950
6,062,659
7,311,739
511,381
213,325
J.H. LAVENDER (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 31 -
17
Creditors: amounts falling due after more than one year
Group
Company
2025
2024
2025
2024
Notes
£
£
£
£
Bank loans and overdrafts
18
991,765
1,356,736
652,135
679,788
Obligations under finance leases
19
11,609
34,826
-
0
-
0
1,003,374
1,391,562
652,135
679,788
Amounts included above which fall due after five years are as follows:
Payable by instalments
522,218
535,938
522,218
535,938
18
Loans and overdrafts
Group
Company
2025
2024
2025
2024
£
£
£
£
Bank loans
1,356,095
1,726,781
679,146
712,514
Payable within one year
364,330
370,045
27,011
32,726
Payable after one year
991,765
1,356,736
652,135
679,788
J.H. LAVENDER (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
18
Loans and overdrafts
(Continued)
- 32 -

Secured debts - Group

 

The finance leases are secured by a chattels mortgage, dated 01/10/2010, and there is a legal assignment of contract monies, dated 26/03/2014, both with HSBC Asset Finance (UK) Ltd and HSBC Equipment Finance (UK) Ltd.

 

The invoice discounting account is secured by a fixed charge on non-vesting debts and floating charge, dated 22/09/2009, and a legal mortgage dated 05/04/2016, covering the property known as Hall Green Works, Crankhall Lane, West Bromwich, and other assets, both with HSBC Invoice Finance (UK) Limited.

 

The bank borrowings are further secured by a debenture with HSBC Bank Plc, dated 24/09/2009, a composite company unlimited multilateral unlimited guarantee with HSBC Plc dated 24/09/2009, a legal assignment of contract monies, with HSBC Bank Plc, dated 10/07/2012 and a chattels mortgage, against certain machinery, with HSBC Equipment Finance (UK) Ltd dated 16/01/2020.

 

All bank borrowings of the subsidiary company, J.H. Lavender & Company Limited, are secured with a legal mortgage with HSBC Bank Plc, dated 05/07/2012, on the freehold property known as Hall Green Works, Crankhall Lane, West Bromwich and a further legal mortgage with HSBC, dated 23/07/2012, on the freehold property at 128 Hall Green Road, Crankhall Lane, West Bromwich.

 

J. H. Lavender (Holdings) Limited holds a legal mortgage with HSBC Bank Plc for the land on the east side of Crankhall Lane, dated 03/11/2017, to secure the debt of its subsidiary J.H. Lavender & Company Limited.

 

A debenture comprising fixed and floating charges over all the assets and undertakings of J. H. Lavender (Holdings) Limited including all present and future and leasehold property, book and other debts, chattels goodwill uncalled capital, both present and future, is held with HSBC Bank Plc dated 18/12/2019.

 

The CBILS loan is also covered by a guarantee in favour of HSBC UK Bank Plc given by the directors guaranteeing all liabilities, limited to £100,000 in total.

 

Secured debts - Company

 

A legal mortgage with HSBC Invoice Finance (UK) Limited, dated 05/04/2016, covering the property known as Hall Green Works, Crankhall Lane, dated 03/11/2017, to secure the debt of its subsidiary J.H. Lavender & Company Limited.

 

A debenture comprising fixed and floating charges over all the assets and undertakings of J. H. Lavender (Holdings) Limited holds a legal mortgage with HCBS Bank Plc for the land on the east side of Crankhall Lane, dated 03/11/2017, to secure the debt of its subsidiary J.H. Lavender & Company Limited.

 

A debenture comprising fixed and floating charges over all the assets and undertakings of J. H. Lavender (Holdings) Limited including all present and future and leasehold property, book and other debts, chattels goodwill uncalled capital, both present and future, is held with HSBC Bank Plc dated 18/12/2019.

Terms - Group

 

The CBILS loan had an initial repayment free period of 12 months from the date the loan was drawn. It is then repayable by equal instalments over 60 months with an interest rate of 3.99% per annum over the BoE base rate.

 

The bank loan is repayable within 5 years, and interest is charged on this loan at 2.95% per annum above the BoE base rate.

J.H. LAVENDER (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 33 -
19
Finance lease obligations
Group
Company
2025
2024
2025
2024
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
25,466
25,466
-
0
-
0
In two to five years
12,733
36,138
-
0
-
0
38,199
61,604
-
-
Less: future finance charges
(3,373)
(3,561)
-
0
-
0
34,826
58,043
-
0
-
0

Finance lease payments represent rentals payable by the company or group for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 5 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

20
Deferred taxation

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

Liabilities
Liabilities
Assets
Assets
2025
2024
2025
2024
Group
£
£
£
£
Accelerated capital allowances
846,991
845,943
-
-
Tax losses
-
-
156,151
155,876
846,991
845,943
156,151
155,876
Liabilities
Liabilities
Assets
Assets
2025
2024
2025
2024
Company
£
£
£
£
Accelerated capital allowances
10,993
1,059
-
-
Tax losses
-
-
16,151
20,876
10,993
1,059
16,151
20,876
J.H. LAVENDER (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
20
Deferred taxation
(Continued)
- 34 -
Group
Company
2025
2025
Movements in the year:
£
£
Liability/(Asset) at 1 April 2024
690,067
(19,817)
Charge to profit or loss
773
14,659
Liability/(Asset) at 31 March 2025
690,840
(5,158)
21
Government grants
Group
Company
2025
2024
2025
2024
£
£
£
£
Arising from government grants
118,771
3,655
494
3,655
22
Retirement benefit schemes
2025
2024
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
175,276
169,734

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.

23
Share capital
Group and company
2025
2024
2025
2024
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
3,527
3,527
3,527
3,527
24
Share premium account
Group
Company
2025
2024
2025
2024
£
£
£
£
At the beginning and end of the year
160,833
160,833
160,833
160,833
J.H. LAVENDER (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 35 -
25
Revaluation reserve
Group
Company
2025
2024
2025
2024
£
£
£
£
At the beginning of the year
(14,086)
(14,086)
-
0
-
0
Revaluation surplus arising in the year
25,643
-
0
-
0
-
0
At the end of the year
11,557
(14,086)
-
0
-
26
Capital redemption reserve
Group
Company
2025
2024
2025
2024
£
£
£
£
At the beginning and end of the year
112
112
112
112
27
Profit and loss reserves
Group
Company
2025
2024
2025
2024
£
£
£
£
At the beginning of the year
2,885,329
2,486,221
1,056,533
1,056,288
Profit for the year
556,459
399,108
11,178
245
At the end of the year
3,441,788
2,885,329
1,067,711
1,056,533
28
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
2025
2024
2025
2024
£
£
£
£
Within one year
109,423
128,226
4,592
4,592
Between two and five years
310,969
48,622
1,913
6,505
420,392
176,848
6,505
11,097
J.H. LAVENDER (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 36 -
29
Related party transactions
Remuneration of key management personnel

The remuneration of key management personnel is as follows.

2025
2024
£
£
Aggregate compensation
787,305
795,934
30
Controlling party

The directors are regarded as controlling parties by virtue of their ability to act in concert in respect of the operations of the company.

31
Cash generated from group operations
2025
2024
£
£
Profit after taxation
556,459
399,108
Adjustments for:
Taxation (credited)/charged
(104,300)
33,826
Finance costs
357,141
413,453
Investment income
(334)
(1,320)
Depreciation and impairment of tangible fixed assets
352,747
348,006
Movements in working capital:
Increase in stocks
(97,043)
(12,839)
Decrease/(increase) in debtors
1,263,421
(1,824,007)
(Decrease)/increase in creditors
(1,358,481)
1,644,449
Increase/(decrease) in deferred income
115,116
(4,453)
Cash generated from operations
1,084,726
996,223
J.H. LAVENDER (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 37 -
32
Cash generated from operations - company
2025
2024
£
£
Profit after taxation
11,178
245
Adjustments for:
Taxation charged
14,659
161
Finance costs
26,802
33,130
Fair value gain on investment properties
(25,643)
-
0
Depreciation and impairment of tangible fixed assets
24,496
25,461
Movements in working capital:
Increase in debtors
(80)
(1,025)
Increase in creditors
306,932
4,930
Decrease in deferred income
(3,161)
(4,453)
Cash generated from operations
355,183
58,449
33
Analysis of changes in net debt - group
1 April 2024
Cash flows
31 March 2025
£
£
£
Cash at bank and in hand
49,946
123,090
173,036
Borrowings excluding overdrafts
(1,726,781)
370,686
(1,356,095)
Obligations under finance leases
(58,043)
23,217
(34,826)
(1,734,878)
516,993
(1,217,885)
34
Analysis of changes in net debt - company
1 April 2024
Cash flows
31 March 2025
£
£
£
Cash at bank and in hand
667
656
1,323
Borrowings excluding overdrafts
(712,514)
33,368
(679,146)
(711,847)
34,024
(677,823)
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