REGISTERED NUMBER: 09804050 (England and Wales)

GROUP STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024

FOR

LH MANAGEMENT SERVICES LTD

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

6

Consolidated Income Statement

10

Consolidated Other Comprehensive Income

11

Consolidated Balance Sheet

12

Company Balance Sheet

13

Consolidated Statement of Changes in Equity

14

Company Statement of Changes in Equity

15

Consolidated Cash Flow Statement

16

Notes to the Consolidated Cash Flow Statement

17

Notes to the Consolidated Financial Statements

18

DIRECTORS:

Mr. L Hooper

Mr P N O'Donnell

REGISTERED OFFICE:

107 South Liberty Lane

Ashton

Bristol

BS3 2SZ

REGISTERED NUMBER:

09804050 (England and Wales)

AUDITORS:

Lawes & Co UK Limited (Statutory Auditors)

Boyce's Building

40-42 Regent Street

Clifton

Bristol

BS8 4HU

The directors present their strategic report of the company and the group for the year ended 31 December 2024.

REVIEW OF BUSINESS

The group's principle activity is as a plumbing & Heating merchant.

For the year ended 31 December 2024, the group recorded a marginal decline in turnover compared to the previous financial year. Despite the slight reduction in revenue, there was a substantial increase in profits. This outcome reflects the successful implementation of strategic cost controls, improved operational efficiency, and a targeted focus on better margin sales.

The directors continue to support growth to acquire a greater market share as well as continuing to improve service levels.

We consider our key financial performance indicators to be those which communicate the performance and strength of the group as a whole. These are as follows:

December 2024

December 2023

£

£

Sales

31,062,869

31,237,919

Gross Profit

7,796,241

6,896,164

Gross Margin

25.1%

22.1%

Net assets

6,301,885

5,954,519

There has continued to be pressure from both customers and suppliers on prices however the group has managed to increase its gross profit margin from implementing an improved purchasing strategy and review of our sales prices. This is an industry wide issue partly affected by economic uncertainty in the UK. However the aim of providing a market leading service to customers has helped to ensure that we remain financially stable and able to react to both customer and supplier demands. Management saw the benefits from the several measures to address profitability of the business in 2024 and these continue to be worked on in 2025.

A constant review of processes coupled with increased development and use of technology has helped to maintain a high level of service to customers and limit the impact on margins.

The group has continued its commitment to retaining reserves within the group to help ensure that it has adequate liquid resources for future investment and a strong enough net assets position to remain financially viable for a long-term future.

PRINCIPAL RISKS AND UNCERTAINTIES

Economic uncertainty in 2024 has contributed to a challenging year of trading and this continues to be the case in 2025. The group will continue to adapt to the conditions and to trade successfully. With the financial strength built over the years, the relationships with customers and suppliers, and the positive expectations moving forward, we are well placed to continue managing the economic uncertainty and fast changing environment.

Interest rates remain relatively high and a significant cost to the business and uncertainty around changes to interest rates remains a risk to the business. Management has continued to maintain efficient stockholding values across the business to reduce the strain on cashflow without impacting our service to customers.

The financial stability of our major customers is crucial to the financial stability of the group, and this presents a risk outside of our control. To minimise this risk we ensure that we conduct our business within the contractual terms agreed with our customers. We also work closely with our large and frequent customers so that we are aware of their plans for future development. We can then make sure that we provide a cost effective and efficient service to them. The company will continue to work closely with the customers we have to manage our way through these challenging times.

FUTURE DEVELOPMENTS

The group continues to build professional and commercial relationships with suppliers and customers alike. This has helped to achieve good stock levels and communicate any significant stock shortages to our branches in a timely manner.

2024 saw the opening of a new domestic branch in Weston-Super-Mare which demonstrates the growth aspirations with the first branch located in North Somerset. The branch has continued to perform and exceed targets. In addition to Weston-Super-Mare there are several other new business developments that management is in the process of reviewing and implementing.

With improvements of stock availability across the plumbing & heating sector we aim to reduce and maintain overall stock value to its optimum level and thereby improve cashflow.

The group has sufficient financial resources together with numerous contracts in place at the year end with several customers. As a result the directors believe the group is well placed to manage its business risks successfully.

The directors believe that the group has adequate resources to continue in operational existence for the foreseeable future. Thus they continue to adopt the going concern basis of accounting in preparing the annual financial statements.

ON BEHALF OF THE BOARD:

Mr. L Hooper - Director

29 September 2025

The directors present their report with the financial statements of the company and the group for the year ended 31 December 2024.

PRINCIPAL ACTIVITY

The principal activity of the group in the year under review was that of a Plumbing and Heating merchant.

DIVIDENDS

The total distribution of dividends for the year ended 31 December 2024 will be £ 447,740 .

DIRECTORS

The directors shown below have held office during the whole of the period from 1 January 2024 to the date of this report.

Mr. L Hooper

Mr P N O'Donnell

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Group Strategic Report, the Report of the Directors 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 the group 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 then apply them consistently;

-	make judgements and accounting estimates that are reasonable and prudent;

-	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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information.

AUDITORS

The auditors, Lawes & Co UK Limited (Statutory Auditors), will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

Mr. L Hooper - Director

29 September 2025

Opinion

We have audited the financial statements of LH Management Services LTD (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2024 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, 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 of the parent company affairs as at 31 December 2024 and of the group's profit for the year 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 Auditors' 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 and the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors 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 this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

-	the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors.

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 four, 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 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.

Auditors' 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 a Report of the Auditors 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:

We identify and assess the risks of material misstatement in the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks. This includes assessing the risk of non-compliance of laws and regulations, evaluating management's incentives and opportunities for fraudulent manipulation of the financial statements (including override of control) and management bias in accounting estimates.

Based on our understanding of the entity, we identified the principal risks of non-compliance and fraud related to stock processes, as well as correct recognition of cash transactions. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements, such as the Companies Act 2006.

Audit procedures performed by the engagement team included, but were not limited to:

- enquiries with management including consideration of known or suspected instances of fraud and non-compliance with laws and regulations

- reviewing the design and implementation of controls and carrying out walkthrough testing

- reviewing journal entries and any potential unusual transactions

- tracing cash transactions through the accounts

- reviewing procedures for consolidation and verifying figures

In conducting the work above, we apply due care and professional scepticism throughout. However, there are limitations within procedures outlined above and 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.

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 Report of the Auditors.

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 a Report of the Auditors 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.

Paul Freeman BA FCA FCCA (Senior Statutory Auditor)

for and on behalf of Lawes & Co UK Limited (Statutory Auditors)

Boyce's Building

40-42 Regent Street

Clifton

Bristol

BS8 4HU

30 September 2025

TURNOVER

31,062,869

31,237,919

Cost of sales

23,266,627

24,341,755

GROSS PROFIT

7,796,242

6,896,164

Distribution costs

3,860,738

3,672,300

Administrative expenses

2,762,679

2,362,147

6,623,417

6,034,447

1,172,825

861,717

Other operating income

1,389

217

OPERATING PROFIT

4

1,174,214

861,934

Interest payable and similar expenses

5

1,824

101

PROFIT BEFORE TAXATION

1,172,390

861,833

Tax on profit

6

347,284

246,076

PROFIT FOR THE FINANCIAL YEAR

825,106

615,757

Profit attributable to:

Owners of the parent

574,760

429,862

Non-controlling interests

250,346

185,895

825,106

615,757

PROFIT FOR THE YEAR

825,106

615,757

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

825,106

615,757

Total comprehensive income attributable to:

Owners of the parent

574,760

429,862

Non-controlling interests

250,346

185,895

825,106

615,757

FIXED ASSETS

Tangible assets

9

1,862,140

1,543,132

Investments

10

1,300

1,300

1,863,440

1,544,432

CURRENT ASSETS

Stocks

11

4,846,769

4,671,904

Debtors

12

5,415,796

6,599,446

Cash at bank and in hand

28,271

49,087

10,290,836

11,320,437

CREDITORS

Amounts falling due within one year

13

5,467,868

6,582,430

NET CURRENT ASSETS

4,822,968

4,738,007

TOTAL ASSETS LESS CURRENT LIABILITIES

6,686,408

6,282,439

PROVISIONS FOR LIABILITIES

16

384,523

327,920

NET ASSETS

6,301,885

5,954,519

CAPITAL AND RESERVES

Called up share capital

17

100

100

Share premium

18

1,699

1,699

Capital redemption reserve

18

3,559

3,559

Retained earnings

18

3,906,754

3,779,734

SHAREHOLDERS' FUNDS

3,912,112

3,785,092

NON-CONTROLLING INTERESTS

2,389,773

2,169,427

TOTAL EQUITY

6,301,885

5,954,519

The financial statements were approved by the Board of Directors and authorised for issue on 29 September 2025 and were signed on its behalf by:

Mr. L Hooper - Director

FIXED ASSETS

Tangible assets

9

-

-

Investments

10

354,915

354,915

354,915

354,915

CURRENT ASSETS

Debtors

12

16,000

56,000

CREDITORS

Amounts falling due within one year

13

42,190

88,190

NET CURRENT LIABILITIES

(26,190

)

(32,190

)

TOTAL ASSETS LESS CURRENT LIABILITIES

328,725

322,725

CAPITAL AND RESERVES

Called up share capital

17

100

100

Retained earnings

328,625

322,625

SHAREHOLDERS' FUNDS

328,725

322,725

Company's profit for the financial year

453,740

447,440

The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the Board of Directors and authorised for issue on 29 September 2025 and were signed on its behalf by:

Mr. L Hooper - Director

Called up

share

Retained

Share

capital

earnings

premium

£

£

£

Balance at 1 January 2023

100

3,797,312

1,699

Changes in equity

Dividends

-

(447,440

)

-

Total comprehensive income

-

429,862

-

Balance at 31 December 2023

100

3,779,734

1,699

Changes in equity

Dividends

-

(447,740

)

-

Total comprehensive income

-

574,760

-

Balance at 31 December 2024

100

3,906,754

1,699

Capital

redemption

Non-controlling

Total

reserve

Total

interests

equity

£

£

£

£

Balance at 1 January 2023

3,559

3,802,670

2,030,532

5,833,202

Changes in equity

Dividends

-

(447,440

)

(47,000

)

(494,440

)

Total comprehensive income

-

429,862

185,895

615,757

Balance at 31 December 2023

3,559

3,785,092

2,169,427

5,954,519

Changes in equity

Dividends

-

(447,740

)

(30,000

)

(477,740

)

Total comprehensive income

-

574,760

250,346

825,106

Balance at 31 December 2024

3,559

3,912,112

2,389,773

6,301,885

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 January 2023

100

322,625

322,725

Changes in equity

Dividends

-

(447,440

)

(447,440

)

Total comprehensive income

-

447,440

447,440

Balance at 31 December 2023

100

322,625

322,725

Changes in equity

Dividends

-

(447,740

)

(447,740

)

Total comprehensive income

-

453,740

453,740

Balance at 31 December 2024

100

328,625

328,725

Cash flows from operating activities

Cash generated from operations

1

1,548,721

1,663,300

Interest paid

(1,824

)

(101

)

Tax paid

(208,498

)

(511,904

)

Net cash from operating activities

1,338,399

1,151,295

Cash flows from investing activities

Purchase of tangible fixed assets

(888,308

)

(669,597

)

Sale of tangible fixed assets

46,833

5,011

Net cash from investing activities

(841,475

)

(664,586

)

Cash flows from financing activities

Amount introduced by directors

-

56,000

Amount withdrawn by directors

(40,000

)

(60,500

)

Equity dividends paid

(447,740

)

(447,440

)

Dividends paid to minority interests

(30,000

)

(47,000

)

Net cash from financing activities

(517,740

)

(498,940

)

Decrease in cash and cash equivalents

(20,816

)

(12,231

)

Cash and cash equivalents at beginning of year

2

49,087

61,318

Cash and cash equivalents at end of year

2

28,271

49,087

1.	RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

31.12.24

31.12.23

£

£

Profit before taxation

1,172,390

861,833

Depreciation charges

495,185

362,686

Loss/(profit) on disposal of fixed assets

27,282

(440

)

Finance costs

1,824

101

1,696,681

1,224,180

(Increase)/decrease in stocks

(174,865

)

1,018,814

Decrease/(increase) in trade and other debtors

1,183,650

(918,315

)

(Decrease)/increase in trade and other creditors

(1,156,745

)

338,621

Cash generated from operations

1,548,721

1,663,300

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 December 2024

31.12.24

1.1.24

£

£

Cash and cash equivalents

28,271

49,087

Year ended 31 December 2023

31.12.23

1.1.23

£

£

Cash and cash equivalents

49,087

61,318

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.1.24

Cash flow

At 31.12.24

£

£

£

Net cash

Cash at bank and in hand

49,087

(20,816

)

28,271

49,087

(20,816

)

28,271

Total

49,087

(20,816

)

28,271

1.	STATUTORY INFORMATION

LH Management Services LTD is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the General Information page.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Short leasehold

-

20% on cost

Plant and machinery

-

20% on cost

Fixtures and fittings

-

15% on cost

Motor vehicles

-

20% on cost

Computer equipment

-

15% on cost

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Hire purchase and leasing commitments

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

Retirement benefits

The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate.

3.	EMPLOYEES AND DIRECTORS

31.12.24

31.12.23

£

£

Wages and salaries

3,585,021

3,309,282

Social security costs

330,099

328,961

Other pension costs

125,698

62,137

4,040,818

3,700,380

The average number of employees during the year was as follows:

31.12.24

31.12.23

Administrative staff

99

96

31.12.24

31.12.23

£

£

Directors' remuneration

16,080

16,080

4.	OPERATING PROFIT

The operating profit is stated after charging/(crediting):

31.12.24

31.12.23

£

£

Depreciation - owned assets

474,836

363,099

Depreciation - assets on hire purchase contracts or finance leases

20,349

-

Loss/(profit) on disposal of fixed assets

27,282

(440

)

Auditors' remuneration

14,800

15,200

Auditors' remuneration for non audit work

5,000

5,000