Registration number:
for the
Period from 1 June 2023 to 30 November 2024
Lakes Bathrooms 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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Profit and Loss Account |
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Balance Sheet |
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Statement of Changes in Equity |
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Notes to the Financial Statements |
Lakes Bathrooms Limited
Company Information
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Directors |
M Gahir C A Thain D Williams M Bone |
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Registered office |
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Auditors |
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Lakes Bathrooms Limited
Strategic Report for the Period from 1 June 2023 to 30 November 2024
The directors present their strategic report for the period from 1 June 2023 to 30 November 2024.
Principal activity
The principal activity of the company is that of import and distribution of shower enclosures and shower doors.
Fair review of the business
On 17 November 2023, 100% of the share capital of Lakes Bathrooms Limited and its subsidiaries was acquired by Lakes Corporate Holdings Limited.
The accounting reference date has been extended to cover a period of 18 months. The results of the company for the period which are set out in the profit and loss account show turnover of £18,740,427 (12 months ended 31 May 2023 - £12,151,388) and a loss before tax of £1,092,656 (12 months ended 31 May 2023 profit of £924,411).
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 company's key financial and other performance indicators during the period were as follows:
|
Financial KPIs |
Unit |
2024 |
2023 |
|
Turnover |
£ |
18,740,427 |
12,151,308 |
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(Loss)/profit before tax |
£ |
(1,092,656) |
924,411 |
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Net assets |
£ |
2,198,265 |
7,345,908 |
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 Bathrooms Limited
Directors' Report for the Period from 1 June 2023 to 30 November 2024
The directors present their report and the financial statements for the period from 1 June 2023 to 30 November 2024.
Directors of the company
The directors who held office during the period were as follows:
The following director was appointed after the period end:
Financial instruments
Objectives and policies
The company 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 company'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 market prices (other than due to interest rates and/or currency). The company 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 the risk that a counterparty will default on its contractual obligations resulting in a financial loss to the company. The company's principal financial assets are bank balances and cash as well as trade receivables. The company's credit risk is primarily attributable to its trade receivables. The company 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 company. 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 company'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 company. The company manages cash flow by careful negotiation of terms with customers and suppliers to maintain available funds to meet its liabilities as they fall due.
Lakes Bathrooms Limited
Directors' Report for the Period from 1 June 2023 to 30 November 2024
Going concern
The directors have prepared forecasts, including cash flow forecasts, for the period to 30 November 2026. The company 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 company’s forecasts and having renegotiated the repayment terms attached to the loan notes, the directors have a reasonable expectation that the company 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 company 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 auditors
Each director has taken 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 auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are 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 Bathrooms Limited
Statement of Directors' Responsibilities
The directors acknowledge their responsibilities for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
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select suitable accounting policies and apply them consistently; |
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make judgements and accounting estimates that are reasonable and prudent; |
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state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and |
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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 company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Lakes Bathrooms Limited
Independent Auditor's Report to the Members of Lakes Bathrooms Limited
Opinion
We have audited the financial statements of Lakes Bathrooms Limited (the 'company') for the period from 1 June 2023 to 30 November 2024, which comprise the Profit and Loss Account, Balance Sheet, Statement of Changes in Equity, 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 company's affairs as at 30 November 2024 and of its 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 company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the 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.
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:
Lakes Bathrooms Limited
Independent Auditor's Report to the Members of Lakes Bathrooms Limited
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adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or |
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the financial statements are not in agreement with the accounting records and returns; or |
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certain disclosures of directors' remuneration specified by law are not made; or |
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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 company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor 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:
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 company’s industry and its control environment and reviewed the company’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 company 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 company’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 conducted 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 Bathrooms Limited
Independent Auditor's Report to the Members of Lakes Bathrooms 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 this 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 Bathrooms Limited
Profit and Loss Account for the Period from 1 June 2023 to 30 November 2024
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Note |
1 June 2023 |
1 June 2022 |
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Turnover |
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Cost of sales |
( |
( |
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Gross profit |
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Administrative expenses |
( |
( |
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Administrative expenses - exceptional |
(125,181) |
- |
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Operating loss before other income |
(1,059,742) |
(1,778,022) |
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Other operating income |
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Operating (loss)/profit |
(1,052,792) |
881,910 |
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Other interest receivable and similar income |
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|
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Interest payable and similar expenses |
( |
( |
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(Loss)/profit before tax |
( |
|
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Tax on (loss)/profit |
- |
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|
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(Loss)/profit for the financial period |
( |
|
The above results were derived from continuing operations.
The company has no recognised gains or losses for the period other than the results above.
Lakes Bathrooms Limited
(Registration number: 02739471)
Balance Sheet as at 30 November 2024
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Note |
30 November |
31 May |
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Fixed assets |
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Intangible assets |
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Tangible assets |
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Investments |
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Current assets |
|||
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Stocks |
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Debtors |
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Cash at bank and in hand |
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||
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Creditors: Amounts falling due within one year |
( |
( |
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Net current assets |
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Net assets |
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Capital and reserves |
|||
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Called up share capital |
414,415 |
388,243 |
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Share premium reserve |
60,196 |
- |
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Capital redemption reserve |
480,716 |
480,716 |
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Profit and loss account |
1,242,938 |
6,476,949 |
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Shareholders' funds |
2,198,265 |
7,345,908 |
Approved and authorised by the
Director
Lakes Bathrooms Limited
Statement of Changes in Equity for the Period from 1 June 2023 to 30 November 2024
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Share capital |
Share premium |
Capital redemption reserve |
Profit and loss account |
Total |
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At 1 June 2023 |
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- |
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Loss for the period |
- |
- |
- |
( |
( |
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Dividends |
- |
- |
- |
( |
( |
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New share capital subscribed |
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- |
- |
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At 30 November 2024 |
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Share capital |
Capital redemption reserve |
Profit and loss account |
Total |
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At 1 June 2022 |
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Profit for the period |
- |
- |
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Dividends |
- |
- |
( |
( |
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At 31 May 2023 |
388,243 |
480,716 |
6,476,949 |
7,345,908 |
Lakes Bathrooms Limited
Notes to the Financial Statements for the Period from 1 June 2023 to 30 November 2024
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General information |
The company is a private company limited by share capital, incorporated in the United Kingdom.
The address of its registered office is:
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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.
Disclosure of long or short period
Summary of disclosure exemptions
Lakes Bathrooms 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 financial statements. Exemptions have been taken in relation to its financial instruments and presentation of a cash flow statement.
Name of parent of group
These financial statements are consolidated in the financial statements of Lakes Corporate Holdings Limited.
The financial statements of Lakes Corporate Holdings Limited may be obtained from Companies House.
Group accounts not prepared
Going concern
The directors have prepared forecasts, including cash flow forecasts, for the period to 30 November 2026. The company 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 company’s forecasts and having renegotiated the repayment terms attached to the loan notes, the directors have a reasonable expectation that the company 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 company remains confident in its ability to manage these challenges effectively. Accordingly, the financial statements have been prepared on a going concern basis.
Lakes Bathrooms Limited
Notes to the Financial Statements for the Period from 1 June 2023 to 30 November 2024
Critical accounting judgements and key sources of estimation uncertainty
In the application of the company’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
In the application of the company'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 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 on-going basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised of the revision affects only that period, or in the period of revision and future periods if the revision affects both current and future periods.
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 make 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 (31 May 2023 - £149,581).
Revenue recognition
Turnover comprises the fair value of the consideration received or receivable for the sale of goods in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.
The company 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 company deems that the risks and rewards of ownership pass when products are delivered to customers and it is at this point when revenue is recognised.
Government grants
Government grants are recognised based on the accrual model and are measured at the fair value of the asset received or receivable. Grants are classified as relating either to revenue or to assets. Grants relating to revenue are recognised in income over the period in which the related costs are recognised. Grants relating to assets are recognised over the expected useful life of the asset. Where part of a grant relating to an asset is deferred, it is recognised as deferred income.
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.
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.
Lakes Bathrooms Limited
Notes to the Financial Statements for the Period from 1 June 2023 to 30 November 2024
Deferred tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements and on unused tax losses or tax credits in the company. Deferred income 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 |
Intangible assets
Separately acquired patents and website development costs have a finite useful life and are carried at historical 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 |
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 received.
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.
Trade debtors
Trade debtors are amounts due from customers for merchandise sold or services performed 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 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.
Lakes Bathrooms Limited
Notes to the Financial Statements for the Period from 1 June 2023 to 30 November 2024
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 company 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 company 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 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 company 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.
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.
Lakes Bathrooms Limited
Notes to the Financial Statements for the Period from 1 June 2023 to 30 November 2024
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.
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.
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 company's turnover for the period from continuing operations is as follows:
|
1 June 2023 to 30 November 2024 |
Year ended 31 May 2023 |
|
|
Sale of goods |
18,740,427 |
12,151,388 |
The analysis of the company's turnover for the period by market is as follows:
|
1 June 2023 to 30 November 2024 |
Year ended 31 May 2023 |
|
|
UK |
|
|
|
Europe |
- |
|
|
|
|
|
Exceptional items |
|
1 June 2023 to 30 November 2024 |
1 June 2022 |
|
|
Restructuring expenses |
125,181 |
- |
Lakes Bathrooms Limited
Notes to the Financial Statements for the Period from 1 June 2023 to 30 November 2024
|
Other operating income |
The analysis of the company's other operating income for the period is as follows:
|
1 June 2023 to 30 November 2024 |
31 May |
|
|
Government grants |
|
|
|
Sub lease rental income |
- |
|
|
Profit on disposal of tangible fixed assets |
- |
2,551,655 |
|
|
|
The other operating income figure for the prior year above includes a £2,551,655 gain on the disposal of a group freehold property in December 2022, which was then leased back to the company for their use under a 10 year operating lease with annual lease costs of £320,000.
|
Operating profit |
Arrived at after charging/(crediting)
|
1 June 2023 to 30 November 2024 |
Year ended 31 May 2023 |
|
|
Depreciation expense |
|
|
|
Amortisation expense |
|
- |
|
Operating lease expense - property |
|
|
|
Operating lease expense - plant and machinery |
|
|
|
Loss/(profit) on disposal of tangible fixed assets |
|
( |
|
Other interest receivable and similar income |
|
1 June 2023 to 30 November 2024 |
Year ended 31 May 2023 |
|
|
Other interest receivable |
65,076 |
49,547 |
|
Interest payable and similar expenses |
|
1 June 2023 to 30 November 2024 |
Year ended 31 May 2023 |
|
|
Interest on bank overdrafts and borrowings |
|
|
|
Financing arrangement fees |
|
- |
|
|
|
Lakes Bathrooms Limited
Notes to the Financial Statements for the Period from 1 June 2023 to 30 November 2024
|
Staff costs |
The aggregate payroll costs (including directors' remuneration) were as follows:
|
1 June 2023 to 30 November 2024 |
Year ended 31 May 2023 |
|
|
Wages and salaries |
|
|
|
Social security costs |
|
|
|
Pension costs, defined contribution scheme |
|
|
|
|
|
The average number of persons employed by the company (including directors) during the period, analysed by category was as follows:
|
1 June 2023 to |
Year ended |
|
|
Administration and support (including directors) |
|
|
|
Sales |
|
|
|
Distribution |
|
|
|
Other departments |
|
|
|
|
|
|
Directors' remuneration |
The directors' remuneration for the period was as follows:
|
1 June 2023 to 30 November 2024 |
Year ended 31 May 2023 |
|
|
Remuneration |
|
|
|
Contributions paid to money purchase pension schemes |
|
|
|
893,839 |
479,734 |
During the period the number of directors who were receiving benefits and share incentives was as follows:
|
1 June 2023 to 30 November 2024 |
Year ended 31 May 2023 |
|
|
Accruing benefits under money purchase pension scheme |
|
|
In respect of the highest paid director:
|
1 June 2023 to 30 November 2024 |
Year ended 31 May 2023 |
|
|
Remuneration |
|
|
|
Company contributions to money purchase pension schemes |
|
|
Lakes Bathrooms Limited
Notes to the Financial Statements for the Period from 1 June 2023 to 30 November 2024
|
Auditors' remuneration |
|
1 June 2023 to 30 November 2024 |
Year ended 31 May 2023 |
|
|
Audit of the financial statements |
|
|
|
Taxation |
Tax charged/(credited) in the profit and loss account
|
1 June 2023 to 30 November 2024 |
Year ended 31 May 2023 |
|
|
Current taxation |
||
|
UK corporation tax adjustment to prior periods |
- |
( |
|
Deferred taxation |
||
|
Arising from origination and reversal of timing differences |
- |
( |
|
Arising from previously unrecognised tax loss, tax credit or temporary difference of prior periods |
- |
(3,750) |
|
Total deferred taxation |
- |
( |
|
Tax credit in the profit and loss account |
- |
( |
The tax on profit before tax for the period is higher than the standard rate of corporation tax in the UK (2023 - lower than the standard rate of corporation tax in the UK) of
The differences are reconciled below:
|
1 June 2023 to 30 November 2024 |
Year ended 31 May 2023 |
|
|
(Loss)/profit before tax |
( |
|
|
Corporation tax at standard rate |
( |
|
|
Decrease in UK and foreign current tax from adjustment for prior periods |
- |
( |
|
Tax decrease from effect of capital allowances and depreciation |
( |
( |
|
Effect of revenues exempt from taxation |
- |
( |
|
Effect of expense not deductible in determining taxable profit (tax loss) |
|
|
|
Increase from tax losses for which no deferred tax asset was recognised |
|
|
|
Deferred tax credit relating to changes in tax rates or laws |
- |
( |
|
Tax increase from effect of indexation allowance on capital gains |
- |
|
|
Tax increase from other tax effects |
|
|
|
Further item of tax decrease |
- |
( |
|
Total tax credit |
- |
( |
Lakes Bathrooms Limited
Notes to the Financial Statements for the Period from 1 June 2023 to 30 November 2024
Deferred tax
There are £1,215,825 of unused tax losses (2023 - £487,790) for which no deferred tax asset is recognised in the balance sheet.
|
Intangible assets |
|
Patents |
Website development costs |
Total |
|
|
Cost or valuation |
|||
|
At 1 June 2023 |
|
|
|
|
Additions |
|
- |
|
|
At 30 November 2024 |
|
|
|
|
Amortisation |
|||
|
At 1 June 2023 |
|
- |
|
|
Amortisation charge |
|
|
|
|
At 30 November 2024 |
|
|
|
|
Carrying amount |
|||
|
At 30 November 2024 |
|
|
|
|
At 31 May 2023 |
|
|
|
|
Tangible assets |
|
Plant and machinery |
|
|
Cost or valuation |
|
|
At 1 June 2023 |
|
|
Additions |
|
|
Disposals |
( |
|
At 30 November 2024 |
|
|
Depreciation |
|
|
At 1 June 2023 |
|
|
Charge for the period |
|
|
Eliminated on disposal |
( |
|
At 30 November 2024 |
|
|
Carrying amount |
|
|
At 30 November 2024 |
|
|
At 31 May 2023 |
|
Lakes Bathrooms Limited
Notes to the Financial Statements for the Period from 1 June 2023 to 30 November 2024
|
Investments |
|
30 November |
31 May |
|
|
Investments in subsidiaries |
|
|
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 |
2023 |
|||
|
Subsidiary undertakings |
||||
|
|
Xiyang Village
China |
|
|
|
|
|
Alexandra Way
United Kingdom |
|
|
|
|
Subsidiary undertakings |
|
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 |
|
30 November |
31 May |
|
|
Finished goods |
|
|
Lakes Bathrooms Limited
Notes to the Financial Statements for the Period from 1 June 2023 to 30 November 2024
|
Debtors |
|
30 November |
31 May |
|
|
Trade debtors |
|
|
|
Other debtors |
|
- |
|
Prepayments and accrued income |
|
|
|
Corporation tax asset |
- |
|
|
|
|
|
Cash and cash equivalents |
|
30 November |
31 May |
|
|
Cash on hand |
|
|
|
Cash at bank |
|
|
|
|
|
|
Creditors |
|
30 November |
31 May |
|
|
Due within one year |
||
|
Other borrowings |
|
|
|
Trade creditors |
|
|
|
Amounts due to group undertakings |
|
|
|
Social security and other taxes |
|
|
|
Outstanding defined contribution pension costs |
|
|
|
Other creditors |
- |
|
|
Accruals |
|
|
|
Deferred income |
|
- |
|
|
|
Other borrowings relate to an invoice discounting facility that is secured over the company's trade debtors.
|
Pension and other schemes |
Defined contribution pension scheme
The company operates a defined contribution pension scheme. The pension cost charge for the period represents contributions payable by the company to the scheme and amounted to £
Contributions totalling £
Lakes Bathrooms Limited
Notes to the Financial Statements for the Period from 1 June 2023 to 30 November 2024
|
Obligations under leases |
Operating leases
The total of future minimum lease payments is as follows:
|
30 November |
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 £
|
Share capital |
Allotted, called up and fully paid shares
|
30 November |
31 May |
|||
|
No. |
£ |
No. |
£ |
|
|
|
|
21,812 |
|
21,812 |
|
|
|
344,619 |
|
344,619 |
|
|
|
26,172 |
- |
- |
|
|
|
21,812 |
|
21,812 |
|
|
|
|
|
|
On 17 November 2023, 26,172 Ordinary C shares of £1 each were allotted at a prescribed rate of £3.30.
All shares rank pari passu in terms of capital and voting rights but have independent rights to dividends.
|
Reserves |
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 share premium.
Capital redemption reserve
The capital redemption reserve represents the amount transferred to this reserve as required by the Companies Act 2006 to maintain the company's capital arising from the purchase of its own shares. This reserve is not available for distribution.
Profit and loss account
The profit and loss account represents the cumulative profits or losses, net of dividends paid and other adjustments.
Lakes Bathrooms Limited
Notes to the Financial Statements for the Period from 1 June 2023 to 30 November 2024
|
Dividends |
|
30 November 2024 |
31 May 2023 |
|
|
Dividends paid |
4,141,355 |
110,000 |
|
Contingent liabilities |
At 30 November 2024, an indemnity given by the company's bankers to HM Revenue & Customs amounted to £140,000 (2023 - £140,000). The directors do not consider this contingency will crystallise into a liability in the foreseeable future.
|
Financial guarantee contracts |
Lakes Bathrooms Limited have guaranteed loan notes held by Lakes Corporate Holdings Limited. The principal amount secured at 30 November 2024 was £5,792,496 plus accrued interest of £436,064.
|
Related party transactions |
Transactions with directors
During the year, certain directors of the company received dividends of £25,000 (2023 - £110,000).
|
Parent and ultimate parent undertaking |
The company was previously controlled by the Craddock Family Trust. On 17 November 2023, the company underwent a management buyout. The ultimate controlling party became Lakes Corporate Holdings Limited, incorporated in the United Kingdom for which the company is consolidated into.