Registration number:
for the
Period from 22 August 2023 to 30 November 2024
Lakes Corporate Holdings Limited
Contents
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Company Information |
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Strategic Report |
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Directors' Report |
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Statement of Directors' Responsibilities |
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Independent Auditor's Report |
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Consolidated Profit and Loss Account |
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Consolidated Statement of Comprehensive Income |
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Consolidated Balance Sheet |
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Balance Sheet |
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Consolidated Statement of Changes in Equity |
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Statement of Changes in Equity |
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Consolidated Statement of Cash Flows |
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Notes to the Financial Statements |
Lakes Corporate Holdings Limited
Company Information
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Directors |
M Gahir C A Thain D Williams |
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Registered office |
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Auditors |
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Lakes Corporate Holdings Limited
Strategic Report for the period from 22 August 2023 to 30 November 2024
The directors present their strategic report for the period from 22 August 2023 to 30 November 2024.
Principal activity
The principal activity of the group is that of the manufacture, import and distribution of shower enclosures and shower doors.
Fair review of the business
On 17 November 2023, Lakes Corporate Holdings Limited acquired 100% of the share capital of Lakes Bathrooms Limited and its subsidiaries.
The results for the period since acquisition (13 months) which are set out in the profit and loss account show turnover of £13,525,831 and a loss before tax of £2,080,624.
The UK’s economic plight continues unabated as households continue to struggle with rising costs and in turn, are suffering from a mix of lower residual income and/or reduced confidence in making large purchases. Industry statistics show that the market on a volume basis at least, has contracted. The impact of this on trading can be felt with a somewhat disappointing but not unrealistic performance. Higher input costs meant that the carrying value of stock was correspondingly higher and against reduced volume in the market, has meant that the business has held higher priced stock for longer than would be desirable.
Despite the difficult trading conditions, the business continues to remain focused on its strategic plan and capitalise on the cohort of talent that exists within the business to continue to deliver new products backed by exceptional customer service. The business is also in its strongest position in recent times in respect of its supply chain and with the recent addition of a new senior recruit into the position of Head of Product Development, the directors feel confident that recent decisions will position the business well for the immediate and long-term future.
The group's key financial and other performance indicators during the period were as follows:
|
Financial KPIs |
Unit |
2024 |
|
Turnover |
£ |
13,525,831 |
|
Loss before tax |
£ |
(2,080,624) |
|
Net liabilities |
£ |
(1,880,245) |
Principal risks and uncertainties
The economic climate cannot be ignored and rising prices affecting consumers' cost of living continue to have an impact on the business. Inflationary pressures are showing early signs of easing but wage pressure continues to feature heavily, partially fuelled by a shortage of available appropriately skilled labour to fill vacancies. The directors recognise the importance of people and continue to provide a cohesive working environment and additional support in order to minimise any risk of under performance whilst focusing on long-term goal delivery.
Future developments
April 2024 saw the launch of our Modular Walk-In range which has proved hugely successful and promises to become a key contributor to turnover. Products launched post-year end have started strongly and these early successes prove that continuing to strengthen our position within the markets we choose to serve remains at the forefront of our approach.
Approved by the
Director
Lakes Corporate Holdings Limited
Directors' Report for the Period from 22 August 2023 to 30 November 2024
The directors present their report and the for the period from 22 August 2023 to 30 November 2024.
Incorporation
The company was incorporated on
Directors of the company
The directors who held office during the period were as follows:
Financial instruments
Objectives and policies
The group uses financial instruments comprising cash, trade debtors and trade creditors that arise directly from its operations and borrowings. The main purpose of these financial instruments is to finance the group's operations and new product launches.
Price risk, credit risk, liquidity risk and cash flow risk
Price risk
Price risk refers to the risk that the fair value of a financial asset will fluctuate because of changes in the market prices (other than due to interest rates and/or currency). The group has little exposure to price risk as all cash investments are in fixed interest rate accounts not subject to price risk.
Credit risk
Credit risk refers to a risk that a counterparty will default on its contractual obligations resulting in a financial loss to the group. The group's principal financial assets are bank balances and cash as well as trade receivables. The group's credit risk is primarily attributable to its trade receivables. The group offers credit to certain customers. Before credit terms are agreed, an assessment of the customer's credit rating is undertaken to ensure that the customer does not represent a major credit risk to the group. Credit limits are set accordingly.
The amounts presented in the balance sheet are, where appropriate, net of allowances for doubtful receivables. An allowance for impairment is made where there is an identified loss event which, based on previous experiences, is evidence that the cash flow recoverability has fallen. The credit risk on liquid funds is limited because the counterparties are banks with high credit-rating assigned by international credit-rating agencies.
Liquidity risk
Liquidity risk is the risk that an entity will encounter difficulty in meeting obligations associated with financial liabilities. The group's principal liquidity risk is to ensure that it has sufficient liquid resources to meet its operational requirements. Liquidity is closely monitored.
Cash flow risk
Cash flow risk is the risk that inflows and outflows of cash equivalents will not be sufficient to finance day-to-day operations of the group. The group manages cash flow by careful negotiation of terms with customers and suppliers to maintain available funds to meet its liabilities as they fall due.
Important non adjusting events after the financial period
On 22 January 2025, 7 Ordinary shares were redesignated as 7 B shares.
On 3 July 2025, 3 Ordinary E shares with a nominal value of £0.01 each were subdivided into 6 Ordinary E shares with a nominal value of £0.005 each.
Post year end, the terms of the loan notes have been varied such that the facility is repayable in instalments over a period to December 2030. £80,000 is payable in the period to November 2025 with a further £240,000 payable in the period to November 2026.
Lakes Corporate Holdings Limited
Directors' Report for the Period from 22 August 2023 to 30 November 2024
Going concern
The directors have prepared forecasts, including cash flow forecasts, for the period to 30 November 2026. The group are forecasting a loss for the year ended 30 November 2025, but profitable in the final quarter, and for the year ended 30 November 2026. After reviewing the group’s forecasts and having renegotiated the repayment terms attached to the loan notes, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future.
The market remained challenging in the period immediately after the year end, with performance improving at a slow rate. Whilst uncertainties exist in the business environment, the group remains confident in its ability to manage these challenges effectively. Accordingly, the financial statements have been prepared on a going concern basis.
Disclosure of information to the auditor
Each director has taken the steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditor is unaware.
Reappointment of auditors
The auditors Hazlewoods LLP are deemed to be reappointed under section 487(2) of the Companies Act 2006.
Approved by the
Director
Lakes Corporate Holdings Limited
Statement of Directors' Responsibilities
The directors are responsible for preparing the Strategic Report, Directors' 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:
• | select suitable accounting policies and apply them consistently; |
• | make judgements and accounting estimates that are reasonable and prudent; |
• | state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and |
• | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group's and the company's transactions and disclose with reasonable accuracy at any time the financial position of the group and the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the group and the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Lakes Corporate Holdings Limited
Independent Auditor's Report to the Members of Lakes Corporate Holdings Limited
Opinion
We have audited the financial statements of Lakes Corporate Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the period from 22 August 2023 to 30 November 2024, which comprise the Consolidated Profit and Loss Account, Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Balance Sheet, Consolidated Statement of Changes in Equity, Statement of Changes in Equity, Consolidated Statement of Cash Flows, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
• | give a true and fair view of the state of the group's and the parent company's affairs as at 30 November 2024 and of the group's loss for the period then ended; |
• | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
• | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Other information
The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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.
Opinion on other matter prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
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• |
the information given in the Strategic Report and Directors' Report for the financial period for which the financial statements are prepared is consistent with the financial statements; and |
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• |
the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception
In the light of our knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report and the Directors' Report.
Lakes Corporate Holdings Limited
Independent Auditor's Report to the Members of Lakes Corporate Holdings Limited
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
• | adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
• | the parent company financial statements are not in agreement with the accounting records and returns; or |
• | certain disclosures of directors' remuneration specified by law are not made; or |
• | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page 5, 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 group’s and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so.
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.
Extent to which the audit was capable of detecting irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
We considered the nature of the group’s industry and its control environment and reviewed the group’s documentation of their policies and procedures relating to fraud and compliance with laws and regulations. We also enquired of management about their own identification and assessment of the risks of irregularities.
We obtained an understanding of the legal and regulatory framework that the group operates in and identified the key laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements, including the UK Companies Act and tax legislation, and, those that do not have a direct effect on the financial statements but compliance with which may be fundamental to the group’s ability to operate or to avoid a material penalty.
We discussed among the audit engagement team regarding the opportunities and incentives that may exist within the organisation for fraud and how and where fraud might occur in the financial statements.
In common with all audits carried out in accordance with ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override of controls. In addressing the risk of fraud through management override of controls, we tested the appropriateness of journal entries and other adjustments; assessed whether the judgements made in accounting estimates are indicative of a potential bias; and evaluated the business rationale of any significant transactions that are unusual or outside the normal course of business.
In addition to the above, our procedures to respond to the risks identified included the following:
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• |
reviewing financial statement disclosures by testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements; |
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• |
performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatements due to fraud; |
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• |
enquiring of management concerning actual and potential litigation and claims and instances of non-compliance with laws and regulations; and |
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• |
reading minutes of meetings of those charged with governance. |
Lakes Corporate Holdings Limited
Independent Auditor's Report to the Members of Lakes Corporate Holdings Limited
Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.
A further description of our responsibilities is available on the Financial Reporting Council's website at 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.
For and on behalf of
Staverton Court
Staverton
GL51 0UX
Lakes Corporate Holdings Limited
Consolidated Profit and Loss Account for the Period from 22 August 2023 to 30 November 2024
|
Note |
22 August 2023 to 30 November 2024 |
|
|
Turnover |
|
|
|
Cost of sales |
( |
|
|
Gross profit |
|
|
|
Administrative expenses |
( |
|
|
Administrative expenses - exceptional |
(125,181) |
|
|
Operating loss |
( |
|
|
Other interest receivable and similar income |
|
|
|
Interest payable and similar expenses |
( |
|
|
Loss before tax |
( |
|
|
Tax on loss |
|
|
|
Loss for the financial period |
( |
The above results were derived from continuing operations.
Lakes Corporate Holdings Limited
Consolidated Statement of Comprehensive Income for the Period from 22 August 2023 to 30 November 2024
|
30 November |
|
|
Loss for the period |
( |
|
Foreign currency translation losses |
( |
|
Total comprehensive income for the period |
( |
|
Total comprehensive income attributable to: |
|
|
Owners of the company |
( |
Lakes Corporate Holdings Limited
(Registration number: 15088638)
Consolidated Balance Sheet as at 30 November 2024
|
Note |
30 November |
|
|
Fixed assets |
||
|
Intangible assets not including goodwill |
|
|
|
Tangible assets |
|
|
|
|
||
|
Current assets |
||
|
Stocks |
|
|
|
Debtors |
|
|
|
Cash at bank and in hand |
|
|
|
|
||
|
Creditors: Amounts falling due within one year |
( |
|
|
Net current assets |
|
|
|
Total assets less current liabilities |
|
|
|
Creditors: Amounts falling due after more than one year |
( |
|
|
Net liabilities |
( |
|
|
Capital and reserves |
||
|
Called up share capital |
1 |
|
|
Profit and loss account |
(1,880,246) |
|
|
Equity attributable to owners of the company |
(1,880,245) |
|
|
Shareholders' deficit |
(1,880,245) |
Approved and authorised by the
Director
Lakes Corporate Holdings Limited
(Registration number: 15088638)
Balance Sheet as at 30 November 2024
|
Note |
30 November |
|
|
Fixed assets |
||
|
Investments |
|
|
|
Creditors: Amounts falling due within one year |
( |
|
|
Total assets less current liabilities |
|
|
|
Creditors: Amounts falling due after more than one year |
( |
|
|
Net liabilities |
( |
|
|
Capital and reserves |
||
|
Called up share capital |
1 |
|
|
Profit and loss account |
(1,829,898) |
|
|
Shareholders' deficit |
(1,829,897) |
The company made a loss after tax for the financial period of £1,830,098.
Approved and authorised by the
Director
Lakes Corporate Holdings Limited
Consolidated Statement of Changes in Equity for the Period from 22 August 2023 to 30 November 2024
Equity attributable to the parent company
|
Share capital |
Share premium |
Profit and loss account |
Total |
|
|
Loss for the period |
- |
- |
( |
( |
|
Other comprehensive income |
- |
- |
( |
( |
|
Total comprehensive income |
- |
- |
( |
( |
|
New share capital subscribed |
|
|
- |
|
|
Purchase of own share capital |
(100) |
(100) |
200 |
- |
|
At 30 November 2024 |
|
- |
( |
( |
Lakes Corporate Holdings Limited
Statement of Changes in Equity for the Period from 22 August 2023 to 30 November 2024
|
Share capital |
Share premium |
Profit and loss account |
Total |
|
|
Loss for the period |
- |
- |
( |
( |
|
New share capital subscribed |
|
|
- |
|
|
Purchase of own share capital |
(100) |
(100) |
200 |
- |
|
At 30 November 2024 |
|
- |
( |
( |
Lakes Corporate Holdings Limited
Consolidated Statement of Cash Flows for the Period from 22 August 2023 to 30 November 2024
|
Note |
30 November |
|
|
Cash flows from operating activities |
||
|
Loss for the period |
( |
|
|
Adjustments to cash flows from non-cash items |
||
|
Depreciation and amortisation |
|
|
|
Finance income |
( |
|
|
Finance costs |
|
|
|
Income tax expense |
( |
|
|
( |
||
|
Working capital adjustments |
||
|
Increase in stocks |
( |
|
|
Decrease in trade debtors |
|
|
|
Increase in trade creditors |
|
|
|
Cash generated from operations |
|
|
|
Income taxes paid |
( |
|
|
Net cash flow from operating activities |
|
|
|
Cash flows from investing activities |
||
|
Interest received |
|
|
|
Acquisition of subsidiaries net of cash acquired |
|
|
|
Acquisitions of tangible assets |
( |
|
|
Acquisition of intangible assets |
( |
|
|
Net cash flows from investing activities |
|
|
|
Cash flows from financing activities |
||
|
Interest paid |
( |
|
|
Proceeds from issue of ordinary shares, net of issue costs |
|
|
|
Net cash flows from financing activities |
( |
|
|
Net increase in cash and cash equivalents |
|
|
|
Cash and cash equivalents at 22 August |
- |
|
|
Cash and cash equivalents at 30 November |
815,979 |
|
Lakes Corporate Holdings Limited
Notes to the Financial Statements for the Period from 22 August 2023 to 30 November 2024
|
General information |
The company is a private company limited by share capital, incorporated in the United Kingdom.
The address of its registered office is:
England
|
Accounting policies |
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006.
Basis of preparation
These financial statements have been prepared using the historical cost convention except for, where disclosed in these accounting policies, certain items that are shown at fair value.
The presentational currency of the financial statements is Pounds Sterling, being the functional currency of the primary economic environment in which the company operates. Monetary amounts in these financial statements are rounded to the nearest Pound.
Summary of disclosure exemptions
Lakes Corporate Holdings Limited meets the definition of a qualifying entity under FRS 102 and has therefore taken advantage of the disclosure exemptions available to it in respect of its own financial statements. Exemptions have been taken in relation to presentation of a statement of cash flows and financial instruments.
Basis of consolidation
The consolidated financial statements consolidate the financial statements of the company and its subsidiary undertakings drawn up to 30 November 2024.
No profit and loss account is presented for the company as permitted by section 408 of the Companies Act 2006.
A subsidiary is an entity controlled by the company. Control is achieved where the company has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.
The results of subsidiaries acquired or disposed of during the year are included in the Profit and Loss Account from the effective date of acquisition or up to the effective date of disposal, as appropriate. Where necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by the group.
The purchase method of accounting is used to account for business combinations that result in the acquisition of subsidiaries by the group. The cost of a business combination is measured as the fair value of the assets given, equity instruments issued and liabilities incurred or assumed at the date of exchange, plus costs directly attributable to the business combination. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. Any excess of the cost of the business combination over the acquirer’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities recognised is recorded as goodwill.
Lakes Corporate Holdings Limited
Notes to the Financial Statements for the Period from 22 August 2023 to 30 November 2024
Inter-company transactions, balances and unrealised gains on transactions between the company and its subsidiaries, which are related parties, are eliminated in full.
Intra-group losses are also eliminated but may indicate an impairment that requires recognition in the consolidated financial statements.
Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the group. Non-controlling interests in the net assets of consolidated subsidiaries are identified separately from the group’s equity therein. Non-controlling interests consist of the amount of those interests at the date of the original business combination and the non-controlling shareholder’s share of changes in equity since the date of the combination.
Disclosure of long or short period
Going concern
The directors have prepared forecasts, including cash flow forecasts, for the period to 30 November 2026. The group are forecasting a loss for the year ended 30 November 2025, but profitable in the final quarter, and for the year ended 30 November 2026. After reviewing the group’s forecasts and having renegotiated the repayment terms attached to the loan notes, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future.
The market remained challenging in the period immediately after the year end, with performance improving at a slow rate. Whilst uncertainties exist in the business environment, the group remains confident in its ability to manage these challenges effectively. Accordingly, the financial statements have been prepared on a going concern basis.
Critical accounting 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 amounts 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
Judgements
No significant judgements have been made by management in preparing these financial statements. |
Key sources of estimation uncertainty
The only key source of estimation uncertainty that has been identified by management in preparing these financial statements other than those detailed in these accounting policies is the provision to write down obsolete stock to net realisable value. Management makes an estimate of the likely obsolescence of stock based on their best judgement and expertise by reviewing their current sales mix against their inventory held as well as market data and trends. At 30 November 2024, the provision was £224,845.
Revenue recognition
Turnover comprises the fair value of the consideration received or receivable for the sale of goods in the ordinary course of the group’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts and after eliminating sales within the group.
The group recognises revenue when: the amount of revenue can be reliably measured; it is probable that future economic benefits will flow to the entity; and specific criteria have been met for each of the company's activities.
The group deems that the risks and rewards of ownership pass when products are delivered to customers and it is at this point revenue is recognised.
Tax
The tax expense for the period comprises current and deferred tax. Tax is recognised in the profit and loss account, except that a charge attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
Lakes Corporate Holdings Limited
Notes to the Financial Statements for the Period from 22 August 2023 to 30 November 2024
The current 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 operates and generates taxable income.
Deferred tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated financial statements and on unused tax losses or tax credits in the group. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.
The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.
Tangible assets
Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
Depreciation
Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:
|
Asset class |
Depreciation method and rate |
|
Plant and machinery |
15% - 33% straight line |
Business combinations
Business combinations are accounted for using the purchase method. The consideration for each acquisition is measured at the aggregate of the fair values at acquisition date of assets given, liabilities incurred or assumed, and equity instruments issued by the group in exchange for control of the acquired, plus any costs directly attributable to the business combination. When a business combination agreement provides for an adjustment to the cost of the combination contingent on future events, the group includes the estimated amount of that adjustment in the cost of the combination at the acquisition date if the adjustment is probable and can be measured reliably.
Goodwill
Goodwill is amortised over its useful life, which shall not exceed five years if a reliable estimate of the useful life cannot be made.
Intangible assets
Patents and website development costs have a finite useful life and are carried at cost less accumulated amortisation and any accumulated impairment losses.
Amortisation
Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:
|
Asset class |
Amortisation method and rate |
|
Patents |
5% straight line |
|
Website development costs |
33% straight line |
|
Goodwill |
Over the period in which non-monetary assets are recoverable |
Investments
Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.
Dividends on equity securities are recognised in income when receivable.
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
Lakes Corporate Holdings Limited
Notes to the Financial Statements for the Period from 22 August 2023 to 30 November 2024
Trade debtors
Trade debtors are amounts due from customers for goods sold in the ordinary course of business.
Trade debtors are recognised initially at the transaction price. All trade debtors are repayable within one year and hence are included at the undiscounted cost of cash expected to be received. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the debtors.
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the average cost method.
The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are 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.
Trade creditors
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the group does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Trade creditors are recognised initially at the transaction price and all are repayable within one year and hence are included at the undiscounted amount of cash expected to be paid.
Borrowings
Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.
Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.
Borrowings are classified as current liabilities unless the group has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
Leases
Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.
Share capital
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.
Dividends
Dividend distribution to the parent company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the group has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
Lakes Corporate Holdings Limited
Notes to the Financial Statements for the Period from 22 August 2023 to 30 November 2024
Financial instruments
Classification
Financial instruments are classified and accounted for according to the substance of the contractual arrangement, as financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. Where shares are issued, any component that creates a financial liability of the company is presented as a liability on the balance sheet. The corresponding dividends relating to the liability component are charged as interest expenses in the profit and loss account.
Recognition and measurement
All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.
Impairment
Assets, other than those measured at fair value, are assessed for indicators of impairment at each balance sheet date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss as described below.
A non financial asset is impaired where there is objective evidence that, as a result of one or more events that occurred after initial recognition, the estimated recoverable value of the asset has been reduced. The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use.
The recoverable amount of goodwill is derived from measurement of the present value of the future cash flows of the cash-generating units ('CGUs') of which the goodwill is a part. Any impairment loss in respect of a CGU is allocated first to the goodwill attached to that CGU, and then to other assets within that CGU on a pro-rata basis.
Where indicators exist for a decrease in impairment loss, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised. Where a reversal of impairment occurs in respect of a CGU, the reversal is applied first to the assets (other than goodwill) of the CGU on a pro-rata basis and then to any goodwill allocated to that CGU.
For financial assets carried at amortised cost, the amount of an impairment is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the financial asset’s original effective interest rate.
For financial assets carried at cost less impairment, the impairment loss is the difference between the asset’s carrying amount and the best estimate of the amount that would be received for the asset if it were to be sold at the reporting date.
Where indicators exist for a decrease in impairment loss, and the decrease can be related objectively to an event occurring after the impairment was recognised, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired financial asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised.
|
Turnover |
The analysis of the group's turnover for the period from continuing operations is as follows:
|
22 August 2023 to 30 November 2024 |
|
|
Sale of goods |
|
The total turnover of the group has been derived from its principal activity wholly undertaken in the United Kingdom.
Lakes Corporate Holdings Limited
Notes to the Financial Statements for the Period from 22 August 2023 to 30 November 2024
|
Operating profit |
Arrived at after charging/(crediting)
|
22 August 2023 to 30 November 2024 |
|
|
Depreciation expense |
|
|
Amortisation expense |
|
|
Operating lease expense - property |
|
|
Operating lease expense - plant and machinery |
|
|
Exceptional items |
|
22 August 2023 to 30 November 2024 |
|
|
Restructuring costs |
125,181 |
|
Other interest receivable and similar income |
|
22 August 2023 to 30 November 2024 |
|
|
Interest income on bank deposits |
|
|
Interest payable and similar expenses |
|
22 August 2023 to 30 November 2024 |
|
|
Interest on bank overdrafts and borrowings |
|
|
Staff costs |
Group
The aggregate payroll costs (including directors' remuneration) were as follows:
|
22 August 2023 to 30 November 2024 |
|
|
Wages and salaries |
|
|
Social security costs |
|
|
Pension costs, defined contribution scheme |
|
|
|
The average number of persons employed by the group (including directors) during the period, analysed by category was as follows:
Lakes Corporate Holdings Limited
Notes to the Financial Statements for the Period from 22 August 2023 to 30 November 2024
|
22 August 2023 to 30 November 2024 |
|
|
Production |
|
|
Administration and support |
|
|
Sales |
|
|
Distribution |
|
|
Management |
|
|
|
Company
The company incurred no staff costs and had no employees other than the directors. Directors are remunerated through Lakes Bathrooms Limited with no recharge made to Lakes Corporate Holdings Limited.
|
Directors' remuneration |
The directors' remuneration for the period was as follows:
|
22 August 2023 to 30 November 2024 |
|
|
Remuneration |
|
|
Contributions paid to money purchase schemes |
|
|
609,750 |
During the period the number of directors who were receiving benefits and share incentives was as follows:
|
22 August 2023 to 30 November 2024 |
|
|
Accruing benefits under money purchase pension scheme |
|
In respect of the highest paid director:
|
22 August 2023 to 30 November 2024 |
|
|
Remuneration |
|
|
Company contributions to money purchase pension schemes |
|
|
Auditors' remuneration |
|
22 August 2023 to 30 November 2024 |
|
|
Audit of these financial statements |
1,300 |
|
Audit of the financial statements of subsidiaries of the company pursuant to legislation |
16,275 |
|
|
Lakes Corporate Holdings Limited
Notes to the Financial Statements for the Period from 22 August 2023 to 30 November 2024
|
Intangible assets |
Group
|
Goodwill |
Patents |
Website development costs |
Total |
|
|
Cost or valuation |
||||
|
Acquired through business combinations |
- |
|
|
|
|
Additions acquired separately |
|
|
- |
|
|
Disposals |
( |
- |
- |
( |
|
At 30 November 2024 |
- |
|
|
|
|
Amortisation |
||||
|
Amortisation charge |
|
|
|
|
|
Amortisation eliminated on disposals |
( |
- |
- |
( |
|
At 30 November 2024 |
- |
|
|
|
|
Carrying amount |
||||
|
At 30 November 2024 |
- |
|
|
|
|
Tangible assets |
Group
|
Plant and machinery |
|
|
Cost or valuation |
|
|
Acquired through business combinations |
|
|
Additions |
|
|
At 30 November 2024 |
|
|
Depreciation |
|
|
Charge for the period |
|
|
At 30 November 2024 |
|
|
Carrying amount |
|
|
At 30 November 2024 |
|
Lakes Corporate Holdings Limited
Notes to the Financial Statements for the Period from 22 August 2023 to 30 November 2024
|
Investments |
Company
|
30 November |
|
|
Investments in subsidiaries |
|
|
Subsidiaries |
£ |
|
Cost or valuation |
|
|
Additions |
|
|
Return on capital |
( |
|
At 30 November 2024 |
|
|
Provision |
|
|
Provision |
|
|
At 30 November 2024 |
|
|
Carrying amount |
|
|
At 30 November 2024 |
|
During the year, a dividend from a subsidiary, which was in substance a return on capital, has been credited against the cost of the investment.
Details of undertakings
Details of the investments (including principal place of business of unincorporated entities) in which the company holds 20% or more of the nominal value of any class of share capital are as follows:
|
Undertaking |
Registered office |
Holding |
Proportion of voting rights and shares held |
|
2024 |
|||
|
Subsidiary undertakings |
|||
|
|
Alexandra Way
|
|
|
|
|
Xiyang Village
|
|
|
|
|
Alexandra Way
|
|
|
Lakes Corporate Holdings Limited
Notes to the Financial Statements for the Period from 22 August 2023 to 30 November 2024
|
Subsidiary undertakings |
|
Lakes Bathrooms Limited The principal activity of Lakes Bathrooms Limited is |
|
Ningbo Ying Ji Sha Wei Yu Ltd The principal activity of Ningbo Ying Ji Sha Wei Yu Ltd is |
|
Lakes Showering Spaces Ltd The principal activity of Lakes Showering Spaces Ltd is |
|
Stocks |
|
Group |
Company |
|
|
30 November |
30 November |
|
|
Stocks |
|
- |
|
Debtors |
|
Group |
Company |
|
|
30 November |
30 November |
|
|
Trade debtors |
|
- |
|
Other debtors |
|
- |
|
Prepayments and accrued income |
|
- |
|
|
- |
|
Cash and cash equivalents |
|
Group |
Company |
|
|
30 November |
30 November |
|
|
Cash on hand |
|
- |
|
Cash at bank |
|
- |
|
|
- |
Lakes Corporate Holdings Limited
Notes to the Financial Statements for the Period from 22 August 2023 to 30 November 2024
|
Creditors |
|
Group |
Company |
||
|
Note |
30 November |
30 November |
|
|
Due within one year |
|||
|
Loans and borrowings |
|
|
|
|
Trade creditors |
|
- |
|
|
Amounts due to group undertakings |
- |
|
|
|
Social security and other taxes |
|
- |
|
|
Outstanding defined contribution pension costs |
|
- |
|
|
Other creditors |
|
- |
|
|
Accruals |
|
|
|
|
Corporation tax liability |
80,416 |
- |
|
|
Deferred income |
|
- |
|
|
|
|
||
|
Due after one year |
|||
|
Loans and borrowings |
|
|
|
Loans and borrowings |
Current loans and borrowings
|
Group |
Company |
|
|
30 November |
30 November |
|
|
Other borrowings |
|
|
Non-current loans and borrowings
|
Group |
Company |
|
|
30 November |
30 November |
|
|
Other borrowings |
|
|
Other borrowings includes £5,792,496 of loan notes issued by the vendors on the acquisition of Lakes Bathrooms Limited and its subsidiaries. The loan notes attract interest at a rate of 2% above the HSBC base rate. The facility is secured by a fixed and floating charge, including a negative pledge, over the property and undertakings of Lakes Corporate Holdings Limited and its subsidiary entities. The loan notes are repayable by instalments over a period to November 2027.
Other borrowings includes £1,210,037 in relation to an invoice discounting facility that is secured over Lakes Bathrooms Limited's trade debtors.
|
Pension and other schemes |
Defined contribution pension scheme
The group operates a defined contribution pension scheme. The pension cost charge for the period represents contributions payable by the group to the scheme and amounted to £
Contributions totalling £
Lakes Corporate Holdings Limited
Notes to the Financial Statements for the Period from 22 August 2023 to 30 November 2024
|
Share capital |
Allotted, called up and fully paid shares
|
30 November |
||
|
No. |
£ |
|
|
|
|
1 |
|
|
|
- |
|
|
|
|
On 22 August 2023, 100 ordinary shares of £1 each were allotted at their nominal value. On 2 November 2023, 100 ordinary shares of £0.01 were allotted at a value of £1.01 per share. On 3 November, a resolution was passed to reduce the £100 share premium recognised on the allotment of these shares. On 6 December 2023, the company repurchased 100 of the shares it had allotted. On the same date, the repurchased shares were cancelled. On 17 November 2023, the company allotted 1 SR share with a nominal value of £0.01.
The SR share carries no rights to vote or participate in distributions.
|
Reserves |
Group and Company
Share capital
Share capital represents the issued share capital of the company.
Share premium
Share premium represents any premiums received on issue of share capital. Any transaction costs associated with the issuing of shares are deducted from the share premium.
Profit and loss account
The profit and loss account represents the cumulative profits or losses, net of dividends paid and other adjustments.
The changes to each component of equity resulting from items of other comprehensive income for the current period were as follows:
|
Profit and loss account |
|
|
Foreign currency translation gains/losses |
( |
|
|
|
Lakes Corporate Holdings Limited
Notes to the Financial Statements for the Period from 22 August 2023 to 30 November 2024
|
Obligations under leases and hire purchase contracts |
Group
Operating leases
The total of future minimum lease payments is as follows:
|
31 May |
|
|
Not later than one year |
|
|
Later than one year and not later than five years |
|
|
Later than five years |
|
|
|
The amount of non-cancellable operating lease payments recognised as an expense during the period was £
|
Contingent liabilities |
Group
At 30 November 2024, an indemnity given by the group's bankers to HM Revenue & Customs amounted to £140,000. The directors do not consider this contingency will crystallise into a liability in the foreseeable future.
|
Analysis of changes in net debt |
Group
|
Acquisition of subsidiaries |
Financing cash flows |
Other non-cash changes |
At 30 November 2024 |
|
|
Cash and cash equivalents |
||||
|
Cash |
994,309 |
(178,330) |
- |
815,979 |
|
Borrowings |
||||
|
Vendor loan notes |
- |
- |
(5,792,496) |
(5,792,496) |
|
Other borrowings |
(604,335) |
(605,702) |
- |
(1,210,037) |
|
(604,335) |
(605,702) |
(5,792,496) |
(7,002,533) |
|
|
|
||||
|
|
( |
( |
( |
|
|
Financial instruments |
Group
Items of income, expense, gains or losses
|
30 November |
Income |
Expense |
Net gains |
Net losses |
|
Financial assets measured at amortised cost |
4,319 |
- |
- |
- |
|
Financial liabilities measured at amortised cost |
- |
771,671 |
- |
- |
|
4,319 |
771,671 |
- |
- |
Lakes Corporate Holdings Limited
Notes to the Financial Statements for the Period from 22 August 2023 to 30 November 2024
|
Non adjusting events after the financial period |
|
|
|
Business combinations |
On
Lakes Bathrooms Limited contributed £
The amounts recognised in respect of the identifiable assets acquired and liabilities assumed are as set out in the table below:
|
Book value |
Fair value adjustments |
Fair value |
|
|
Assets and liabilities acquired |
|||
|
Financial assets |
8,479,573 |
- |
|
|
Stocks |
3,280,818 |
899,203 |
|
|
Tangible assets |
109,674 |
- |
|
|
Identifiable intangible assets |
41,485 |
- |
|
|
Financial liabilities |
(2,824,724) |
(224,801) |
( |
|
Total identifiable assets |
9,086,826 |
674,402 |
|
|
Goodwill |
822,227 |
(674,402) |
|
|
Total consideration |
9,909,053 |
- |
9,909,053 |
|
Satisfied by: |
|||
|
Cash (including acquisition costs of £116,557) |
4,116,557 |
- |
|
|
Debt instruments |
5,792,496 |
- |
5,792,496 |
|
Total consideration transferred |
9,909,053 |
- |
|
|
|
|||
A fair value adjustment has been recognised on consolidation to bring the book value of stocks in line with fair value. A deferred tax liability arises on the fair value adjustment.