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Registration number: 15088638

Lakes Corporate Holdings Limited

Annual Report and Consolidated Financial Statements

for the Period from 22 August 2023 to 30 November 2024

 

Lakes Corporate Holdings Limited

Contents

Company Information

1

Strategic Report

2

Directors' Report

3 to 4

Statement of Directors' Responsibilities

5

Independent Auditor's Report

6 to 8

Consolidated Profit and Loss Account

9

Consolidated Statement of Comprehensive Income

10

Consolidated Balance Sheet

11

Balance Sheet

12

Consolidated Statement of Changes in Equity

13

Statement of Changes in Equity

14

Consolidated Statement of Cash Flows

15

Notes to the Financial Statements

16 to 29

 

Lakes Corporate Holdings Limited

Company Information

Directors

M Gahir

C A Thain

D Williams

Registered office

Alexandra Way
Ashchurch
Tewkesbury
Gloucestershire
GL20 8NB

Auditors

Hazlewoods LLP
Staverton Court
Staverton
Cheltenham
GL51 0UX

 

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 Board on 11 August 2025 and signed on its behalf by:


M Gahir
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 22 August 2023.

Directors of the company

The directors who held office during the period were as follows:

D D Bedford (appointed 22 August 2023 and resigned 22 January 2025)

B T Brown (appointed 22 August 2023 and resigned 30 June 2025)

M Gahir (appointed 22 August 2023)

C A Thain (appointed 22 August 2023)

D Williams (appointed 17 November 2023)

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 Board on 11 August 2025 and signed on its behalf by:


M Gahir
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:

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

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:

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;

performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatements due to fraud;

enquiring of management concerning actual and potential litigation and claims and instances of non-compliance with laws and regulations; and

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.





Ryan Hancock (Senior Statutory Auditor)
For and on behalf of Hazlewoods LLP, Statutory Auditor

Staverton Court
Staverton
Cheltenham
GL51 0UX

11 August 2025

 

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

3

13,525,831

Cost of sales

 

(8,187,835)

Gross profit

 

5,337,996

Administrative expenses

 

(6,526,087)

Administrative expenses - exceptional

5

(125,181)

Operating loss

4

(1,313,272)

Other interest receivable and similar income

6

4,319

Interest payable and similar expenses

7

(771,671)

Loss before tax

 

(2,080,624)

Tax on loss

206,351

Loss for the financial period

 

(1,874,273)

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
2024
£

Loss for the period

(1,874,273)

Foreign currency translation losses

(6,173)

Total comprehensive income for the period

(1,880,446)

Total comprehensive income attributable to:

Owners of the company

(1,880,446)

 

Lakes Corporate Holdings Limited

(Registration number: 15088638)
Consolidated Balance Sheet as at 30 November 2024

Note

30 November
2024
£

Fixed assets

 

Intangible assets not including goodwill

11

28,838

Tangible assets

12

140,528

 

169,366

Current assets

 

Stocks

14

4,426,203

Debtors

15

2,797,319

Cash at bank and in hand

16

815,979

 

8,039,501

Creditors: Amounts falling due within one year

17

(6,296,616)

Net current assets

 

1,742,885

Total assets less current liabilities

 

1,912,251

Creditors: Amounts falling due after more than one year

17

(3,792,496)

Net liabilities

 

(1,880,245)

Capital and reserves

 

Called up share capital

20, 21

1

Profit and loss account

21

(1,880,246)

Equity attributable to owners of the company

 

(1,880,245)

Shareholders' deficit

 

(1,880,245)

Approved and authorised by the Board on 11 August 2025 and signed on its behalf by:
 

M Gahir
Director

 

Lakes Corporate Holdings Limited

(Registration number: 15088638)
Balance Sheet as at 30 November 2024

Note

30 November
2024
£

Fixed assets

 

Investments

13

4,399,864

Creditors: Amounts falling due within one year

17

(2,437,265)

Total assets less current liabilities

 

1,962,599

Creditors: Amounts falling due after more than one year

17

(3,792,496)

Net liabilities

 

(1,829,897)

Capital and reserves

 

Called up share capital

20, 21

1

Profit and loss account

21

(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 Board on 11 August 2025 and signed on its behalf by:
 

M Gahir
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

-

-

(1,874,273)

(1,874,273)

Other comprehensive income

-

-

(6,173)

(6,173)

Total comprehensive income

-

-

(1,880,446)

(1,880,446)

New share capital subscribed

101

100

-

201

Purchase of own share capital

(100)

(100)

200

-

At 30 November 2024

1

-

(1,880,246)

(1,880,245)

 

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

-

-

(1,830,098)

(1,830,098)

New share capital subscribed

101

100

-

201

Purchase of own share capital

(100)

(100)

200

-

At 30 November 2024

1

-

(1,829,898)

(1,829,897)

 

Lakes Corporate Holdings Limited

Consolidated Statement of Cash Flows for the Period from 22 August 2023 to 30 November 2024

Note

30 November
2024
£

Cash flows from operating activities

Loss for the period

 

(1,874,273)

Adjustments to cash flows from non-cash items

 

Depreciation and amortisation

4

195,869

Finance income

(4,319)

Finance costs

771,671

Income tax expense

(206,351)

 

(1,117,403)

Working capital adjustments

 

Increase in stocks

 

(246,181)

Decrease in trade debtors

 

653,276

Increase in trade creditors

 

1,089,346

Cash generated from operations

 

379,038

Income taxes paid

 

(1,988)

Net cash flow from operating activities

 

377,050

Cash flows from investing activities

 

Interest received

4,319

Acquisition of subsidiaries net of cash acquired

 

877,752

Acquisitions of tangible assets

12

(44,470)

Acquisition of intangible assets

11

(63,266)

Net cash flows from investing activities

 

774,335

Cash flows from financing activities

 

Interest paid

(335,607)

Proceeds from issue of ordinary shares, net of issue costs

 

201

Net cash flows from financing activities

 

(335,406)

Net increase in cash and cash equivalents

 

815,979

Cash and cash equivalents at 22 August

 

-

Cash and cash equivalents at 30 November

24

815,979

 

Lakes Corporate Holdings Limited

Notes to the Financial Statements for the Period from 22 August 2023 to 30 November 2024

 

1

General information

The company is a private company limited by share capital, incorporated in the United Kingdom.

The address of its registered office is:
Alexandra Way
Ashchurch
Tewkesbury
Gloucestershire
GL20 8NB
England

 

2

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

The financial statements have been presented for the period from 22 August 2023 to 30 November 2024 being the period from incorporation through to the reporting date of Lakes Bathrooms Limited.

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.

 

3

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

13,525,831

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

 

4

Operating profit

Arrived at after charging/(crediting)

22 August 2023 to 30 November 2024
 £

Depreciation expense

32,412

Amortisation expense

163,457

Operating lease expense - property

346,667

Operating lease expense - plant and machinery

193,336

 

5

Exceptional items

22 August 2023 to 30 November 2024
 £

Restructuring costs

125,181

 

6

Other interest receivable and similar income

22 August 2023 to 30 November 2024
 £

Interest income on bank deposits

4,319

 

7

Interest payable and similar expenses

22 August 2023 to 30 November 2024
 £

Interest on bank overdrafts and borrowings

771,671

 

8

Staff costs

Group
The aggregate payroll costs (including directors' remuneration) were as follows:

22 August 2023 to 30 November 2024
 £

Wages and salaries

3,172,887

Social security costs

378,450

Pension costs, defined contribution scheme

139,461

3,690,798

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
No.

Production

48

Administration and support

33

Sales

13

Distribution

29

Management

7

130


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.

 

9

Directors' remuneration

The directors' remuneration for the period was as follows:

22 August 2023 to 30 November 2024
 £

Remuneration

574,894

Contributions paid to money purchase schemes

34,856

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
No.

Accruing benefits under money purchase pension scheme

4

In respect of the highest paid director:

22 August 2023 to 30 November 2024
 £

Remuneration

156,514

Company contributions to money purchase pension schemes

9,025

 

10

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

17,575


 

 

Lakes Corporate Holdings Limited

Notes to the Financial Statements for the Period from 22 August 2023 to 30 November 2024

 

11

Intangible assets

Group

Goodwill
 £

Patents
 £

Website development costs
 £

Total
£

Cost or valuation

Acquired through business combinations

-

3

41,482

41,485

Additions acquired separately

147,825

2,985

-

150,810

Disposals

(147,825)

-

-

(147,825)

At 30 November 2024

-

2,988

41,482

44,470

Amortisation

Amortisation charge

147,825

224

15,408

163,457

Amortisation eliminated on disposals

(147,825)

-

-

(147,825)

At 30 November 2024

-

224

15,408

15,632

Carrying amount

At 30 November 2024

-

2,764

26,074

28,838

 

12

Tangible assets

Group

Plant and machinery
 £

Cost or valuation

Acquired through business combinations

109,674

Additions

63,266

At 30 November 2024

172,940

Depreciation

Charge for the period

32,412

At 30 November 2024

32,412

Carrying amount

At 30 November 2024

140,528

 

Lakes Corporate Holdings Limited

Notes to the Financial Statements for the Period from 22 August 2023 to 30 November 2024

 

13

Investments

Company

30 November
2024
£

Investments in subsidiaries

4,399,864

Subsidiaries

£

Cost or valuation

Additions

9,909,053

Return on capital

(4,116,355)

At 30 November 2024

5,792,698

Provision

Provision

1,392,834

At 30 November 2024

1,392,834

Carrying amount

At 30 November 2024

4,399,864

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

Lakes Bathrooms Limited

Alexandra Way
Ashchurch
Tewkesbury
United Kingdom

Ordinary

100%

Ningbo Ying Ji Sha Wei Yu Ltd

Xiyang Village
Shiqi Street
Haishu District
Ningbo City
China

Ordinary

100%

Lakes Showering Spaces Ltd

Alexandra Way
Ashchurch
Tewkesbury
United Kingdom

Ordinary

100%

 

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 that of the import and distribution of shower enclosures and shower doors.

Ningbo Ying Ji Sha Wei Yu Ltd

The principal activity of Ningbo Ying Ji Sha Wei Yu Ltd is manufacture and export of shower enclosures and shower doors.

Lakes Showering Spaces Ltd

The principal activity of Lakes Showering Spaces Ltd is that of a dormant company.

 

14

Stocks

 

Group

Company

30 November
2024
£

30 November
2024
£

Stocks

4,426,203

-

 

15

Debtors

 

Group

Company

30 November
2024
£

30 November
2024
£

Trade debtors

2,548,129

-

Other debtors

59,558

-

Prepayments and accrued income

189,632

-

2,797,319

-

 

16

Cash and cash equivalents

 

Group

Company

30 November
2024
£

30 November
2024
£

Cash on hand

131

-

Cash at bank

815,848

-

815,979

-

 

Lakes Corporate Holdings Limited

Notes to the Financial Statements for the Period from 22 August 2023 to 30 November 2024

 

17

Creditors

   

Group

Company

Note

30 November
2024
£

30 November
2024
£

Due within one year

 

Loans and borrowings

18

3,210,037

2,000,000

Trade creditors

 

1,238,947

-

Amounts due to group undertakings

-

1,200

Social security and other taxes

 

434,322

-

Outstanding defined contribution pension costs

 

18,207

-

Other creditors

 

7,772

-

Accruals

 

1,211,066

436,065

Corporation tax liability

 

80,416

-

Deferred income

 

95,849

-

 

6,296,616

2,437,265

Due after one year

 

Loans and borrowings

18

3,792,496

3,792,496

 

18

Loans and borrowings

Current loans and borrowings

 

Group

Company

30 November
2024
£

30 November
2024
£

Other borrowings

3,210,037

2,000,000

Non-current loans and borrowings

 

Group

Company

30 November
2024
£

30 November
2024
£

Other borrowings

3,792,496

3,792,496

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.

 

19

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 £139,461.

Contributions totalling £18,207 were payable to the scheme at the end of the period and are included in creditors.

 

Lakes Corporate Holdings Limited

Notes to the Financial Statements for the Period from 22 August 2023 to 30 November 2024

 

20

Share capital

Allotted, called up and fully paid shares

30 November
2024

No.

£

Ordinary shares of £0.01 each

100

1

SR Share of £0.01 each

1

-

101

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.

 

21

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

(6,173)

 

Lakes Corporate Holdings Limited

Notes to the Financial Statements for the Period from 22 August 2023 to 30 November 2024

 

22

Obligations under leases and hire purchase contracts

Group

Operating leases

The total of future minimum lease payments is as follows:

31 May
2024
£

Not later than one year

469,670

Later than one year and not later than five years

1,380,480

Later than five years

986,667

2,836,817

The amount of non-cancellable operating lease payments recognised as an expense during the period was £540,003 .

 

23

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.

 

24

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)

 

389,974

(784,032)

(5,792,496)

(6,186,554)

 

25

Financial instruments

Group

Items of income, expense, gains or losses

30 November
2024

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

 

26

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.

 

27

Business combinations

On 17 November 2023, Lakes Corporate Holdings Limited acquired 100% of the issued share capital of Lakes Bathrooms Limited, obtaining control of the company and its group.

Lakes Bathrooms Limited contributed £13,525,831 revenue and £(1,877,349) to the group's loss for the period between the date of acquisition and the Balance Sheet date.

The amounts recognised in respect of the identifiable assets acquired and liabilities assumed are as set out in the table below:
 

Book value
31 May
2024
£

Fair value adjustments
31 May
2024
£

Fair value
31 May
2024
£

Assets and liabilities acquired

Financial assets

8,479,573

-

8,479,573

Stocks

3,280,818

899,203

4,180,021

Tangible assets

109,674

-

109,674

Identifiable intangible assets

41,485

-

41,485

Financial liabilities

(2,824,724)

(224,801)

(3,049,525)

Total identifiable assets

9,086,826

674,402

9,761,228

Goodwill

822,227

(674,402)

147,825

Total consideration

9,909,053

-

9,909,053

Satisfied by:

Cash (including acquisition costs of £116,557)

4,116,557

-

4,116,557

Debt instruments

5,792,496

-

5,792,496

Total consideration transferred

9,909,053

-

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.