The directors present the Strategic Report for the year ended 31 December 2024.
All trading activities for the group are channelled through Fayers Plumbing & Building Supplies Limited which remains a wholly owned subsidiary of Leaside Holdings Limited.
2024 saw a y-o-y increase in total sales by 18%, however, gross profit margin declined by 3.7% demonstrating the overall tougher trading conditions and competition. The reduced margin is also a reflection of the significant increase in contract sales at lower margins for higher volume sales compared to the trade counters and showrooms.
Trade counters saw an decline of 11.4% on sales and a 21.9% drop in gross profit due to heavy competition in slowing market.
Showrooms managed to etch out a 2.2% increase on sales but remained flat y-o-y for gross profit due to lower margins. Both showrooms have seen continued renovation and improvement to the display areas to ensure that customers are able to access latest trends, fashions & designs.
The plumbing and sanitary ware contracts market was significantly more active than 2023 with a 42.6% increase in revenue. Gross profit was up 18.4% before any supplier performance rebates, however the margin was negatively squeezed due to higher competition.
The market still have concerns regarding the financial stability of some of the very large main contractors which is well founded when considering construction giant ISG collapsed into administration.
Online trading saw a 2.2% increase in revenue, buy margins were slightly down by 0.5%. The company continues to look into expending the online offering to help take advantage of economies of scale with the central costs and premises.
Continued focus is being given to reducing overall stock levels and improving stock turn to help improve working capital through the tougher trading conditions. Initiatives to turn slow moving stock back into cash continue to be implemented.
Personnel costs have increased significantly due to the governments National Insurance Contribution increases along with the minimum wage increases.
The industry continues to face challenges related to labour shortages, exacerbated by Brexit and an aging workforce. Efforts are being made to attract new talent and upskill existing workers through training programs and apprenticeships.
Overall, a loss has been reported for the year.
Current Economy
The UK construction industry continues to be impacted by a number of headwinds and this has resulted in some of the larger contractors going into administration. This is a continued concern going into 2025. With increased taxes such as the NIC from April 2025 and unemployment rates going up there are still concerns that the construction industry is not going to pick up it as was hoped going into the beginning of the year.
Inflation continues to be above target and the ongoing geopolitical concerns are not allowing interest rates to come down.
Cash Flow Risk
The Group’s cash flow has remained positive throughout 2024 and has continued to do so in 2025. The Group has no loans in place. During the year the Group has been able to place funds on deposit to take advantage of the higher bank deposit rates.
Continued attention is being given to account receivables, stock levels and stock turn to help improve working capital and efficiency ratios.
The Group has the benefit of a whole turnover debtor insurance policy that has assisted with prompt payment of account receivables and minimised bad debt exposure.
Financial key performance indicators
Turnover for 2024 was £12.8m (2023: £10.9m) all of which represents 3rd party sales. The results for the year show gross margin profit of £3.37m (2023: £3.27m). Gross profit margin has decreased from 2023 primarily due to increased competition reducing gross profit and increasing operation costs due to continued inflationary pressures. Administration costs of £3.66m (2023: £3.34m) have increased due to increased premise and wage costs. Administration costs include staff wage costs of £1.85m (2023: £1.76m). A lot of focus is being given to reducing the overall administration costs through innovation and improved use of technology wherever possible.
The Group did receive Government support in the year totalling £45,732 (2023: £46,088) in the form of Rates Relief on two branches.
Future Outlook and Business Development
The Group will continue with its existing branch network comprising 4 trade counter outlets, 2 showrooms, General Sales Office and online trading.
There is desire to identify growth opportunities either from organic development of new outlets or through acquisition. Further enhancements of the online trading opportunities will also be a keen area of focus.
Attention is being focused on implementing business efficiencies in using technology and internal systems much more. The Group has invested in new LED lighting with microwave sensors to reduce it’s energy consumption at two sites. There are a number of initiatives being launched to improve operational efficiencies to reduce costs across all business areas.
A high level of attention will continue to be given to account receivables due to the potential for higher insolvency rates as market conditions continue to be challenging for the larger contractors which effect the supporting sub-contractors.
The Group has an ongoing strategic review of customer types, product offering and pricing policy with a view to expand the customer base offering a wider range of products to help improve margins.
The Group will continue its membership of the Fortis Buying Group. The Group looks to expand its membership and it is expected to continue to negotiate the best possible commercial buying terms and generate improved rebates for it’s members.
On behalf of the board
The directors present their annual report and financial statements for the year ended 31 December 2024.
The results for the year are set out on page 8.
No ordinary dividends were paid. The directors do not recommend payment of a final dividend.
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
In accordance with the company's articles, a resolution proposing that BK Plus Audit Limited, successor firm to Haines Watts High Wycombe Limited, be reappointed as auditor of the company will be put at a General Meeting.
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
We have audited the financial statements of Leaside Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2024 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including 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).
Basis for 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 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
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
The information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
The strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
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.
Explanation as to extent to which the audit was considered capable of detecting irregularities, including fraud
From the preliminary stage of the audit, we ensure our understanding of the entity is up to date. This includes, but is not limited to, current knowledge of their activities, the business and control environments, and their compliance with the applicable legal and regulatory frameworks. This information supports our risk identification and the subsequent design of audit procedures to mitigate those risks; ensuring that the audit evidence obtained is sufficient and appropriate to support our opinion.
In response to the risks identified, specific to this entity, we designed procedures which included, but were not limited to:
Enquiry of management and those charged with governance around actual and potential litigation and claims;
Reviewing minutes of meetings of those charged with governance, if available;
Reviewing financial statements disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;
Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness, and evaluating the business rationale for significant transactions outside the normal course of business.
There are inherent limitations in the audit procedures described above and the further removed non-compliance
with laws and regulations are from the events and transactions reflected in the financial statements, the less likely
we would become aware of it. Also, 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
or intentional misrepresentations, or through collusions. There is always the unavoidable risk that material
misstatements in the financial statements may not be detected despite the audit being properly performed in
accordance with UK Auditing standards.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://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.
As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s loss for the year was £60 (2023 - £34 loss).
Leaside Holdings Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is 15/17 Margaret Road, New Barnet, Hertfordshire, EN4 9NR.
The group consists of Leaside Holdings Limited and all of its subsidiaries.
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
The consolidated group financial statements consist of the financial statements of the parent company Leaside Holdings Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.
All financial statements are made up to 31 December 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.
The Financial Statements have been prepared on a going concern basis. The Directors have considered relevant information, including the annual budget, forecast future cash flows and the impact of subsequent events in making their assessment. Based on these assessments and having regard to the resources available to the entity, the Directors have concluded that there is no material uncertainty. At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.
Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.
In the parent company financial statements, investments in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
At each reporting period end date, the group reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
Creditors
Short term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.
The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method 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. Financial assets classified as receivable within one year are not amortised.
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. 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 a 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.
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, 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. Financial liabilities classified as payable within one year are not amortised.
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. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.
Creditors
Short term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.
In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount 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 where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
The key sources of estimation uncertainty that have had the most significant effect on amounts recognised in the financial statements are outlined below:
Valuation of stock
Stock is included at the lower of cost and net realisable value. The directors have reviewed the stock obsolescence policy and are satisfied that stock is fairly valued at the year end.
Fixed Assets
Estimations have been applied to the useful economic life and residual values of tangible fixed assets. The directors have concluded that the asset values and residual values are appropriate.
Bad debt provision
Management are required to estimate the recoverability of doubtful debts and assess the need to provision for bad debts. The recoverability of debts are assessed continually during the year based on customer communication and management experience. Where required, a bad debt provision is raised. Each provision is made on a debt-by-debt basis.
Rebate accruals
Management are required to estimate the level of rebates payable to customers and receivable from suppliers based on contractual terms, historical experience and forecast purchase volumes. Rebates are recognised on an accruals basis and are measured using the best estimate of the amount expected to be settled at the reporting date.
Dilapidation provisions
The company has obligations under property lease agreements to restore leased premises at the end of the lease term. Management has exercised judgment in determining whether such obligations exist and estimating the amount of the provision required. The estimation involves assessing the condition of the property, interpreting lease terms, and considering expected costs of reinstatement, which may include contractor quotations and historical experience. Due to the inherent uncertainty in predicting future costs and timing, actual outcomes may differ from these estimates.
All turnover arose within the United Kingdom.
The average monthly number of persons (including directors) employed by the group and company during the year was:
Their aggregate remuneration comprised:
The actual charge for the year can be reconciled to the expected (credit)/charge for the year based on the profit or loss and the standard rate of tax as follows:
The deferred tax asset in respect of losses carried forward has not been recognised in the financial statements as there is insufficient evidence that the asset will be recoverable in the foreseeable future. Tax losses of £2,799,373 (2023: £2,721,870) are available to be recovered against future profits.
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
Details of the company's subsidiaries at 31 December 2024 are as follows:
Bank loans are secured on the assets of the group.
Net obligations under finance leases and hire purchase contracts due within one year are secured on the assets to which they relate.
Net obligations under finance leases and hire purchase contracts due more than one year are secured on the assets to which they relate.
A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.
At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
The terms of the group banking facility is that there is a set off arrangement between the facility accounts.
The company has agreed to be a party in the composite guarantee given to its bankers. The composite guarantee dated 8 December 2005 is between the following companies: Fayers Plumbing & Building Supplies Limited, its parent company, Leaside Holdings Limited and its fellow subsidiary, Just Add Water Limited.
The company is a wholly owned subsidiary of Leaside Holdings Limited. Accordingly, the company has taken advantage of the exemption in FRS 102 from disclosing transactions between group entities. During the year and the previous year, the company had the following transactions with related parties:
One of the premises from which the company traded is owned by related parties of the company. It is jointly owned by four directors of group companies, (Mr I White (25%), Mr G White (25%), Mrs C Webster (20%) and Mrs T Wilkin (20%) and two of their spouses (Mr M Webster (5%) and Mr R Wilkin (5%)). The annual rent payable to the related parties was £75,000 (2023: £75,000).
The company was supplied consultancy services in regards to the online business totalling £40,000 (2023: £16,500) by White Advisory Services (Thailand) Co. Limited, a company controlled by Mr G White who is a director and shareholder of the parent company Leaside Holdings and a director of Fayers Plumbing and Building Supplies Limited.
The company purchased goods and services totalling £8,301 (2023: £8,227) from Wilkin and Wilkin Limited, a company controlled by the spouse of Mrs T Wilkin, who is a director and a shareholder of the parent company, Leaside Holdings Limited. As at the year-end, £598 (2023: £498) was owed to Wilkin and Wilkin Limited in respect of these transactions.