Principal Doorsets Limited 09196220 false 2024-01-01 2025-03-31 2025-03-31 The principal activity of the company is manufacture of bespoke high performance doorsets. 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Registration number: 09196220

Principal Doorsets Limited

Annual Report and Financial Statements

for the period from 1 January 2024 to 31 March 2025

 

Principal Doorsets Limited

Contents

Company Information

1

Strategic Report

2

Directors' Report

3 to 4

Independent Auditor's Report

5 to 8

Profit and Loss Account

9

Statement of Comprehensive Income

10

Balance Sheet

11

Statement of Changes in Equity

12

Notes to the Financial Statements

13 to 29

 

Principal Doorsets Limited

Company Information

Directors

Mr R V Llewellyn

Mr A T Lister

Mr O M Aurell

Mr M Sirvell

Registered office

Riverside Road,
Pottington Business Park
Barnstaple
North Devon
EX31 1NB

Auditors

Glover Stanbury
Chartered Accountants and Registered Auditors30 Bear Street
BARNSTAPLE
Devon
EX32 7DD

 

Principal Doorsets Limited

Strategic Report for the Period from 1 January 2024 to 31 March 2025

The directors present their strategic report for the period from 1 January 2024 to 31 March 2025.

Principal activity

The principal activity of the company is manufacture of bespoke high performance doorsets.

Fair review of the business

Turnover has increased by 43% compared to 2023.The financial year end has changed from 31 December to 31 March and therefore this financial period is for 15 months hence the increase in turnover. The company was sold during the year on 12 July 2024 to Lagercrantz UK Limited and the company's year end was changed to be in line with the rest of the Lagercrantz group. In this financial period to 31 March 2025, there is an exceptional item that related to an administrative expense of £609k being incurred by the company which crystallised upon the sale of the company to Lagercrantz UK Limited. Profit before tax has increased from £643k to £944k in the 15 month period.

The company has a strong balance sheet and at the end of the year, net assets totalled £4,079,352 (2023 - £3,562,633).

The company's key financial and other performance indicators during the period were as follows:

Financial KPIs

Unit

2025

2023

Turnover

£

12,197,269

8,536,421

Gross profit margin

%

39.3

40.46

Profit before tax

£

944,031

642,915

Principal risks and uncertainties

Whilst the economic volatility relating to supply and price of raw materials and demand within the industry as seen in previous years has now eased, the impact of the post general election spending has demonstrated the company's ability to react to minimise these risks. The company has an extensive product offering and is not wholly reliant on any specific sector which allows them to mitigate risks such as the government tightening the spending on public sector projects which did occur during 2024 with the new government pausing the spending in the NHS. The company continues to mitigate these risks by having a diversified portfolio of clients and sectors.

Approved by the Board on 26 June 2025 and signed on its behalf by:


Mr R V Llewellyn
Director

 

Principal Doorsets Limited

Directors' Report for the Period from 1 January 2024 to 31 March 2025

The directors present their report and the financial statements for the period from 1 January 2024 to 31 March 2025.

Directors of the company

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

Mr R V Llewellyn

Mr S D Bond (ceased 29 January 2025)

Mr A T Lister (appointed 3 March 2025)

Mr O M Aurell (appointed 12 July 2024)

Mr M Sirvell (appointed 12 July 2024)

Mr R E M Stuart (appointed 12 July 2024 and ceased 4 January 2025)


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:

select suitable accounting policies and apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

state whether applicable United Kingdom 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 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.

Financial instruments

Objectives and policies

The business' principal financial instruments are bank balances, trade debtors, trade creditors and loans to the business. The main purpose of these instruments is to finance the business operations.

 

Principal Doorsets Limited

Directors' Report for the Period from 1 January 2024 to 31 March 2025

Price risk, credit risk, liquidity risk and cash flow risk

In respect of bank balances the liquidity risk is managed by maintaining a balance between the continuity of funding and flexibility through the use of accumulated cash reserves.

Trade debtors are managed in respect of credit and cash flow risk by policies concerning the credit offered to customers and regular monitoring of amounts outstanding for both time and credit limits. Trade creditors‘ liquidity risk is managed by ensuring sufficient funds are available to settle liabilities as they fall due under normal trading terms.

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.

Research and development

The company continues to invest in research and development (R&D) to improve our product offerings and assist our customers in delivering their commitments. By prioritising innovation and leveraging cutting-edge technologies, we are confident that these strategic investments will drive growth and create long-term value.

Approved by the Board on 26 June 2025 and signed on its behalf by:


Mr R V Llewellyn
Director

 

Principal Doorsets Limited

Independent Auditor's Report to the Members of Principal Doorsets Limited

Opinion

We have audited the financial statements of Principal Doorsets Limited (the 'company') for the period from 1 January 2024 to 31 March 2025, which comprise the Profit and Loss Account, Statement of Comprehensive Income, 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 31 March 2025 and of its profit 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 director's 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.

 

Principal Doorsets Limited

Independent Auditor's Report to the Members of Principal Doorsets Limited

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.

Opinions on other matters 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.

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, or returns adequate for our audit have not been received from branches not visited by us; or

the 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 3], 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.

 

Principal Doorsets Limited

Independent Auditor's Report to the Members of Principal Doorsets Limited

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:

Identifying and assessing potential risks related to irregularities
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following:
1. The nature of the industry and sector, control environment and business performance;
2. results of our enquiries of management about their own identification and assessment of the risks of irregularities;
3. any matters we identified having obtained and reviewed the company’s documentation of their policies and procedures relating to:
- identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance;
- detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud;
- the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations;
4. the matters discussed among the audit engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud.
As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in income. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.
We also obtained an understanding of the legal and regulatory frameworks that the company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the UK Companies Act, UK corporate governance legislation and UK tax legislation.
In addition, we considered provisions of other laws and regulations 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.
Audit response to risks identified
As a result of performing the above, we have not identified any contradictory evidence during our enquiries.

 

Principal Doorsets Limited

Independent Auditor's Report to the Members of Principal Doorsets Limited

Our procedures to respond to risks identified included the following:
- Reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;
- enquiring of management concerning actual and potential litigation and claims;
- performing procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;
and
- in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members, and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities for the audit of the financial statements is located 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.



Mark Shute BA FCA (Senior Statutory Auditor)
For and on behalf of Glover Stanbury, Statutory Auditor

30 Bear Street
BARNSTAPLE
Devon
EX32 7DD

26 June 2025

 

Principal Doorsets Limited

Profit and Loss Account for the Period from 1 January 2024 to 31 March 2025

Note

2025
£

2023
£

Turnover

3

12,197,269

8,536,421

Cost of sales

 

(7,403,480)

(5,082,345)

Gross profit

 

4,793,789

3,454,076

Administrative expenses

 

(3,668,316)

(2,682,262)

Other operating income

4

11,329

7,739

Operating profit

6

1,136,802

779,553

Interest payable and similar expenses

9

(192,771)

(136,638)

Profit before tax

 

944,031

642,915

Tax on profit

13

(397,312)

(171,036)

Profit for the financial period

 

546,719

471,879

The above results were derived from continuing operations.

The company has no recognised gains or losses for the period other than the results above.

 

Principal Doorsets Limited

Statement of Comprehensive Income for the Period from 1 January 2024 to 31 March 2025

2025
£

2023
£

Profit for the period

546,719

471,879

Total comprehensive income for the period

546,719

471,879

 

Principal Doorsets Limited

(Registration number: 09196220)
Balance Sheet as at 31 March 2025

Note

2025
£

2023
£

Fixed Assets

 

Tangible Assets

14

2,626,309

2,869,210

Current assets

 

Stocks

15

501,837

495,133

Debtors

16

2,068,372

2,521,588

Cash at bank and in hand

 

2,663,769

1,623,311

 

5,233,978

4,640,032

Creditors: Amounts falling due within one year

18

(1,760,070)

(1,532,243)

Net current assets

 

3,473,908

3,107,789

Total assets less current liabilities

 

6,100,217

5,976,999

Creditors: Amounts falling due after more than one year

18

(1,682,335)

(2,027,849)

Provisions for liabilities

19

(338,530)

(386,517)

Net assets

 

4,079,352

3,562,633

Capital and Reserves

 

Called up share capital

1,000

1,000

Retained Earnings

4,078,352

3,561,633

Shareholders' funds

 

4,079,352

3,562,633

Approved and authorised for issue by the Board on 26 June 2025 and signed on its behalf by:
 




Mr R V Llewellyn
Director

   
     
 

Principal Doorsets Limited

Statement of Changes in Equity for the Period from 1 January 2024 to 31 March 2025

Share capital
£

Retained Earnings
£

Total
£

At 1 January 2024

1,000

3,561,633

3,562,633

Profit for the period

-

546,719

546,719

Dividends

-

(30,000)

(30,000)

At 31 March 2025

1,000

4,078,352

4,079,352

Share capital
£

Retained Earnings
£

Total
£

At 1 January 2023

1,000

3,259,754

3,260,754

Profit for the period

-

471,879

471,879

Dividends

-

(170,000)

(170,000)

At 31 December 2023

1,000

3,561,633

3,562,633

 

Principal Doorsets Limited

Notes to the Financial Statements for the Period from 1 January 2024 to 31 March 2025

1

General information

The company is a private company limited by share capital, incorporated in England.

The address of its registered office is:
Riverside Road,
Pottington Business Park
Barnstaple
North Devon
EX31 1NB

These financial statements were authorised for issue by the Board on 26 June 2025.

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 that as disclosed in the accounting policies certain items are shown at fair value.

All amounts are in £'s.

Summary of disclosure exemptions

The individual accounts of Principal Doorsets Limited have adopted the following disclosure exemptions:

- The company has taken advantage of the exemption, under FRS 102 paragraph 1.12(b), from preparing a statement of cash flows on the basis that it is a qualifying entity and its ultimate parent company, Lagercrantz Group AB, includes the company’s cash flows in its own consolidated financial statements. Being a qualifying entity, it has also taken advantage of the exemption from disclosing key management personnel compensation as this is disclosed in the parent company's consolidated accounts.

Name of parent of group

These financial statements are consolidated in the financial statements of Lagercrantz Group AB.

The financial statements of Lagercrantz Group AB may be obtained from https://www.lagercrantz.com/.

 

Principal Doorsets Limited

Notes to the Financial Statements for the Period from 1 January 2024 to 31 March 2025

Disclosure of long or short period

The financial statements were prepared for a 15 month period to 31 March 2025 in order to align the company year end with the group therefore the comparatives are not entirely comparable as the comparative period relates to the year ended 31 December 2023.

Going concern

The financial statements have been prepared on a going concern basis.

Judgements

There are no judgements which management have made in the process of applying the accounting policies.

Key sources of estimation uncertainty

There are no key sources of estimation uncertainty that have a significant risk of causing a material adjustment to assets and liabilities to be disclosed.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services 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.

Contract revenue recognition

Where a contract has only been partially completed at the balance sheet date, turnover represents the value of the service provided to date based on a stage completion method.

Amounts owed to the company at the balance sheet date are included within Debtors.

Government grants

Grants have been recognised in the accounts under the accrual model. Under the accrual model, grants relating to capital shall be recognised in income on a systematic basis over the anticipated useful economic life of the asset.

Foreign currency transactions and balances

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rate on the date when the fair value is re-measured.

Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.

 

Principal Doorsets Limited

Notes to the Financial Statements for the Period from 1 January 2024 to 31 March 2025

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Deferred income 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 statement of financial position 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% reducing balance

Computer and office equipment

33% straight line

Fixtures and fittings

15% reducing balance

Freehold buildings

2% straight line

Freehold land

Not depreciated

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.

 

Principal Doorsets Limited

Notes to the Financial Statements for the Period from 1 January 2024 to 31 March 2025

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. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. 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 receivables.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.

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 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 subsequently measured at amortised cost using the effective interest method.

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.

 

Principal Doorsets Limited

Notes to the Financial Statements for the Period from 1 January 2024 to 31 March 2025

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

Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the Balance Sheet as a finance lease obligation.

Lease payments are apportioned between finance costs in the Profit and Loss Account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

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.

 

Principal Doorsets Limited

Notes to the Financial Statements for the Period from 1 January 2024 to 31 March 2025

Financial instruments

Classification
Basic financial assets include trade and other debtors, cash and bank balances. Basic financial liabilities include trade and other payables and bank loans.
 Recognition and measurement
Basic financial assets are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Such assets are subsequently carried at amortised cost using the effective interest method. Other debtors are classified as current assets if payment is due within one year or less and are initially recorded at transaction price and subsequently measured at the undiscounted amount of the cash expected to be received. Trade debtors are referred to above.

Basic financial liabilities are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Other creditors are classified as current liabilities if payment is due within one year or less and are recognised initially at transaction price and subsequently measured at the undiscounted amount of the cash expected to be paid. If not, they are presented as non-current liabilities and are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method. Trade creditors and leases are referred to above.

 Impairment
At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

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

 

Principal Doorsets Limited

Notes to the Financial Statements for the Period from 1 January 2024 to 31 March 2025

3

Turnover

The analysis of the company's Turnover for the period from continuing operations is as follows:

2025
£

2023
£

Sale of goods

12,197,269

8,536,421

4

Other operating income

The analysis of the company's other operating income for the period is as follows:

2025
£

2023
£

Government grants

11,329

7,739

5

Other gains and losses

The analysis of the company's other gains and losses for the period is as follows:

2025
£

2023
£

Loss on disposal of Tangible Assets

(6,455)

(3,537)

6

Operating profit

Arrived at after charging/(crediting)

2025
£

2023
£

Depreciation expense

305,769

217,834

Foreign exchange losses

141

150

Operating lease expense - plant and machinery

42,954

67,437

Loss on disposal of property, plant and equipment

6,455

3,537

7

Exceptional items

Exceptional costs of £609,290 (2023 - £Nil) were incurred by the company which crystallised upon the sale of the company to Lagercrantz UK Limited.

Amounts are presented within administrative expenses in the profit and loss account.

 

Principal Doorsets Limited

Notes to the Financial Statements for the Period from 1 January 2024 to 31 March 2025

8

Government grants

Grants relating to capital assets have been released in the year and the prior year.

The amount of grants recognised in the financial statements was £11,329 (2023 - £7,739).

There are no unfulfilled conditions or other contingencies attaching to the grants that have been recognised in income.

9

Interest payable and similar expenses

2025
£

2023
£

Interest on bank overdrafts and borrowings

123,303

98,154

Interest on obligations under finance leases and hire purchase contracts

66,097

34,834

Interest expense on other finance liabilities

3,230

3,500

Foreign exchange gains

141

150

192,771

136,638

10

Staff costs

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

2025
£

2023
£

Wages and salaries

2,873,727

1,871,191

Social security costs

286,005

170,693

Other short-term employee benefits

41,210

24,569

Pension costs, defined contribution scheme

226,820

148,314

Other employee expense

891

1,088

3,428,653

2,215,855

The average number of persons employed by the company (including directors) during the period, analysed by category was as follows:

2025
No.

2023
No.

Production

40

36

Sales

31

26

71

62

 

Principal Doorsets Limited

Notes to the Financial Statements for the Period from 1 January 2024 to 31 March 2025

11

Directors' remuneration

The directors' remuneration for the period was as follows:

2025
£

2023
£

Remuneration

139,680

29,571

12

Auditors' remuneration

2025
£

2023
£

Audit of the financial statements

19,500

17,500


 

 

Principal Doorsets Limited

Notes to the Financial Statements for the Period from 1 January 2024 to 31 March 2025

13

Taxation

Tax charged/(credited) in the profit and loss account

2025
£

2023
£

Current taxation

UK corporation tax

444,919

93,320

UK corporation tax adjustment to prior periods

380

-

445,299

93,320

Deferred taxation

Arising from origination and reversal of timing differences

(47,987)

77,716

Tax expense in the income statement

397,312

171,036

The tax on profit before tax for the period is the same as the standard rate of corporation tax in the UK (2023 - higher than the standard rate of corporation tax in the UK) of 25% (2023 - 23.52%).

The differences are reconciled below:

2025
£

2023
£

Profit before tax

944,031

642,915

Corporation tax at standard rate

236,008

151,217

Increase in UK and foreign current tax from adjustment for prior periods

380

-

Tax increase from effect of capital allowances and depreciation

4,766

8,014

Effect of expense not deductible in determining taxable profit (tax loss)

156,158

11,805

Total tax charge

397,312

171,036

 

Principal Doorsets Limited

Notes to the Financial Statements for the Period from 1 January 2024 to 31 March 2025

14

Tangible Assets

Land and buildings
£

Fixtures and fittings
£

Plant and machinery
£

Office equipment
£

Total
£

Cost or valuation

At 1 January 2024

1,526,761

17,672

2,330,429

67,454

3,942,316

Additions

2,707

5,589

50,391

11,836

70,523

Disposals

-

(203)

(21,805)

(9,156)

(31,164)

At 31 March 2025

1,529,468

23,058

2,359,015

70,134

3,981,675

Depreciation

At 1 January 2024

122,564

8,861

899,682

41,999

1,073,106

Charge for the period

25,679

1,836

263,236

15,018

305,769

Eliminated on disposal

-

(120)

(14,786)

(8,603)

(23,509)

At 31 March 2025

148,243

10,577

1,148,132

48,414

1,355,366

Carrying amount

At 31 March 2025

1,381,225

12,481

1,210,883

21,720

2,626,309

At 31 December 2023

1,404,197

8,811

1,430,747

25,455

2,869,210

Included within the net book value of land and buildings above is £1,381,225 (2023 - £1,404,197) in respect of freehold land and buildings.
 

Assets held under finance leases and hire purchase contracts

The net carrying amount of tangible assets includes the following amounts in respect of assets held under finance leases and hire purchase contracts:

2025
£

2023
£

Plant and machinery

846,241

1,075,628

   

15

Stocks

2025
£

2023
£

Other inventories

501,837

495,133

 

Principal Doorsets Limited

Notes to the Financial Statements for the Period from 1 January 2024 to 31 March 2025

16

Debtors

Current

Note

2025
£

2023
£

Trade Debtors

 

1,043,250

1,823,190

Amounts owed by related parties

25

-

74,726

Amounts owed by group undertakings

 

350,422

-

Prepayments

 

69,242

62,754

Gross amount due from customers for contract work

 

605,458

560,918

   

2,068,372

2,521,588

17

Cash and cash equivalents

2025
£

2023
£

Cash at bank

2,663,769

1,623,311

18

Creditors

Note

2025
£

2023
£

Due within one year

 

Loans and borrowings

22

263,424

371,495

Trade Creditors

 

630,942

733,384

Social security and VAT

 

254,160

244,129

Outstanding defined contribution pension costs

 

15,078

-

Accruals

 

145,073

82,762

Corporation tax liability

13

444,919

93,320

Deferred income

 

6,474

7,153

 

1,760,070

1,532,243

Due after one year

 

Loans and borrowings

22

1,509,319

1,844,184

Deferred income

 

173,016

183,665

 

1,682,335

2,027,849

 

Principal Doorsets Limited

Notes to the Financial Statements for the Period from 1 January 2024 to 31 March 2025

19

Provisions for liabilities

Deferred tax
£

Total
£

At 1 January 2024

386,517

386,517

Increase (decrease) in existing provisions

(47,987)

(47,987)

At 31 March 2025

338,530

338,530

The deferred tax provision comprises the difference between accumulated depreciation and capital allowances.

20

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 £226,820 (2023 - £148,314).

Contributions totalling £15,078 (2023 - £13,346) were payable to the scheme at the end of the period and are included in creditors.

21

Share capital

Allotted, called up and fully paid shares

2025

2023

No.

£

No.

£

Ordinary shares of £1 each

1,000

1,000

1,000

1,000

       

Rights

Ordinary shares have the following rights:
Unrestricted ordinary shares with full voting rights and distribution of dividends.

 

Principal Doorsets Limited

Notes to the Financial Statements for the Period from 1 January 2024 to 31 March 2025

22

Loans and borrowings

Non-current loans and borrowings

2025
£

2023
£

Bank borrowings

1,197,292

1,272,366

Hire purchase contracts

312,027

571,818

1,509,319

1,844,184

The HP agreements have been secured against the specific assets for which the agreement relates. The bank loans are secured by a debenture on all assets of the company and a legal charge over the property. The aggregate of secured liabilities amounts to £1,772,743 (2023 - £2,145,679).

The bank loans have a maturity date of 28 October 2037 and 8 August 2038 and are being repaid in monthly instalments. Interest on the loans is being charged at 2.25% over base rate and 2.7% over base rate.

Current loans and borrowings

2025
£

2023
£

Bank borrowings

66,121

61,344

Hire purchase contracts

197,303

240,151

Other borrowings

-

70,000

263,424

371,495

Included in the loans and borrowings are the following amounts due after more than five years:

2025
£

2023
£

After more than five years by instalments

889,110

986,565

-

-

 

Principal Doorsets Limited

Notes to the Financial Statements for the Period from 1 January 2024 to 31 March 2025

23

Obligations under leases and hire purchase contracts

Finance leases

The total of future minimum lease payments is as follows:

2025
£

2023
£

Not later than one year

197,303

240,151

Later than one year and not later than five years

312,027

571,818

509,330

811,969

Operating leases

The total of future minimum lease payments is as follows:

2025
£

2023
£

Not later than one year

14,322

29,238

Later than one year and not later than five years

16,510

8,314

30,832

37,552

The amount of non-cancellable operating lease payments recognised as an expense during the period was £34,414 (2023 - £61,559).

24

Dividends

2025

2023

£

£

Interim dividend of £30.00 (2023 - £170.00) per ordinary share

30,000

170,000

 

 
 

Principal Doorsets Limited

Notes to the Financial Statements for the Period from 1 January 2024 to 31 March 2025

25

Related party transactions

Transactions with directors

2025

At 1 January 2024
£

Advances to director
£

Repayments by director
£

At 31 March 2025
£

Mr R V Llewellyn

Directors loan account - no interest charged & repayable on demand

37,936

272,826

(310,761)

-

Mr S D Bond

Directors loan account - no interest charged & repayable on demand

36,790

32,871

(69,661)

-

2023

At 1 January 2023
£

Advances to director
£

Repayments by director
£

At 31 December 2023
£

Mr R V Llewellyn

Directors loan account - no interest charged & repayable on demand

57,337

65,599

(85,000)

37,936

Mr S D Bond

Directors loan account - no interest charged & repayable on demand

56,189

65,601

(85,000)

36,790

Dividends paid to directors

2025
£

2023
£

Mr R V Llewellyn

Dividends paid to director during the year

15,000

85,000

 

 

Mr S D Bond

Dividends paid to director during the year

15,000

85,000

 

 

 

Principal Doorsets Limited

Notes to the Financial Statements for the Period from 1 January 2024 to 31 March 2025

26

Parent and ultimate parent undertaking

The company's immediate parent is Lagercrantz UK Limited, incorporated in England. The address of its registered office is Unit 10-11, Worton Hall Industrial Estate, Worton Road, Isleworth, England, TW7 6ER.

 The ultimate parent is Lagercrantz Group AB, incorporated in Sweden. The registered office address for Lagercrantz Group AB is Vasagatan 11, Stockholm, SE111 20, Sweden.

 The most senior parent entity producing publicly available financial statements is Lagercrantz Group AB. These financial statements are available upon request from https://www.lagercrantz.com