The directors present the strategic report for the year ended 31 March 2025.
Following a detailed review of company operations, the business underwent a significant re-structure with a view to balancing costs amid challenging market conditions. The losses incurred during the previous year as a result of a cyber-attack continued initially, however the latter half of the year produced improved results. The market conditions remained challenging throughout the full financial year driving the business to review its longer term strategy and set a credible path to growth and profitability. A renewed focus on core activities and delivering excellent customer service is paying off and further improvements are being delivered.
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Whilst the manufacturing division is mainly reliant on the performance of the other divisions, it has started to build third party “direct” sales to add to demand coming from RCG EBS and TFP. There is still capacity to grow the output of the factory however costs are now better matched to current market demand. This included exiting two “external” facilities and concentrating all manufacturing operations into one, upgraded, factory facility.
The factory has benefited from stability of supply and more consistent service levels from key suppliers. It is also running more effectively as a result of consolidating all activities onto one site which allows better, more efficient, use of labour and resources.
RCG EBS
The contracting business has focussed efforts into winning work in the Local Authority and Housing Association RMI sector. This sector is proving to be more stable than new build or domestic RMI and has already set RCG up with longer term contracts spanning multiple years in some cases.
The Division underwent a similar “right size” review to the rest of the business and has a good match of directly employed labour against the contracts already won and likely future demand. Successful bids, primarily with large Southern based Housing Associations, have brought a welcome level of future predictability and “base load” of work on which to build.
TFP
The specialist building materials merchant business has 14 trade counters spread across the south of England. The materials supplied to the building trade include upvc roofline, cladding, rainwater goods, roofing products and glazed fenestration.
Trading conditions have remained challenging throughout the year, however, the opportunity was taken to re-shape the division to be better able to operate in a reduced market. TFP sells a significant amount of product into the domestic RMI market sector which has been suppressed as the wider cost of living pressures continued from the previous year. For the longer term there is still a very large ageing housing stock in the UK that will require upgrading and improving for both performance and aesthetic reasons. In particular the government led drive forward on energy efficiency, for all housing, will drive window and door sales for the coming years.
The directors refer to the going concern section below financial information on the group’s financial performance and position.
Going concern
2025 continued to be a challenging year in terms of market conditions, particularly the private RMI sector that the merchanting arm of the business is primarily exposed to. The group’s cost base was reduced, within the reporting period, as a response to market challenges which attracted one off restructuring costs contributing to the declared losses for the year. The cost base is now in much better balance with current trading conditions. A sustainable improvement in stock management has helped bolster the cash position at year end.
As at 31 March 2025, the business remained in a net asset position, with the movement primarily reflecting the year’s result, notwithstanding improvements in cash and inventory, while total liabilities remained largely consistent in value year on year.
| 2025 | 2024 as restated |
| £’000s | £’000s |
Gross profit | 5,218 | 5,542 |
Operating (loss)/profit for the financial period | (371) | (459) |
Net current assets | 574 | 483 |
Cash at bank and in hand | 254 | 55 |
A combination of market conditions and a re-focusing on core activities resulted in the group's revenue declining by 9%. As referred to in more detail in note 34, the directors have reclassified certain administrative costs to cost of sales in the prior year to give a better representation of the group's gross profit margins. Taking this into consideration, the directors are pleased to report an increase in the gross profit margin from the restated figure of 34% in 2024 to 36% in 2025 demonstrating that the group’s focus on improving margins is bearing fruit.
The trading results have been affected by both internal and external factors during the current year that have had a negative impact on the trading results. Internal factors outside of the directors’ control such as the previously reported cyber ransomware attack, with the consequential disruption to the business, continued to have a negative impact on cash flow. However, this was mitigated by better stock management and a reduced head count and hence the year end cash position has improved. Similarly, external factors have caused a downturn in building material manufacturing, sales and installation after the post-pandemic boom. Analysts predict that this could continue for the remainder of 2025, all of 2026 and possibly going into 2027. However, the directors carried out a wide-ranging strategic review that tackles this pessimistic market forecast head on. Each of the three divisions are aligning with market sectors that give the best chance of both resilience and growth despite the overall market being subdued. This includes the contracting division targeting/securing commercial maintenance contracts, the manufacturing division securing new direct sales with small to medium installation companies and the merchanting division maximising “share of wallet” with their existing customer base including increased fenestration and internal hygiene panel sales.
Due to the disappointing trading results, the group sourced independent third-party finance and in addition the Chairman has injected further funds to demonstrate his confidence in the viability of the business and his confidence that it will return to profitability in the next one to two years. The Board have made an assessment in preparing these financial statements as to whether the company remains a going concern. They have produced cash flow forecasts and arranged for additional funding to be available, should they need it, to ensure that they can meet their financial obligations as they fall due. In preparing these forecasts the directors have used assumptions around the timing of sales and supplier costs that follow seasonal cyclical patterns and applied a modest uplift to them and their direct costs in line with their strategic intent.
In addition to raising additional finance, the directors continue to implement cost cutting measures to reduce unnecessary spending including a significant reduction in the cost of managing waste materials and improved operational efficiency, without stifling the growth strategy that they are implementing.
As with any commercial enterprise, there is a risk that the forecasts may be worse than predicted and the assumptions on which these are based not accurate. However, the directors are confident that through utilising the additional headroom that they have factored into the funding that is being arranged, the company will have adequate cash to continue as a going concern for a period of not less than twelve months from the date that these accounts are signed.
The company operates a number of risk management policies designed to minimise its exposure to financial risk. The following elements inform all of the company's decision-making processes:
Strategy - Management regularly review strategic progress and key performance indicators.
Performance - Management regularly review the performance of the company, taking into account the potential impact of significant future events on the company’s projected forecast performance.
Governance - Management are committed to ensuring good governance, beginning with the foundation of strong internal controls and a culture where employees have open access to management at all levels. All employees are encouraged to be curious, to speak up if they witness anything requiring further investigation and to offer new ideas or initiatives that will strengthen existing processes and procedures.
Liquidity risk
The company produces regular management reports and forecasts, which enable management to monitor the cash position and to ensure that there is sufficient liquidity and cash to minimise the risk of the company being unable to pay its debts as they fall due. In addition, management ensure additional funding is available from shareholders and/or third parties should it be required.
Credit risk
The company’s principal credit risk arises from the ability of its customers to meet their contractual obligation to pay their debts as and when they fall due. The company’s approach to managing this risk is to continually monitor debt collection, performing appropriate credit checks on new and existing customers using third party credit reference agencies to assess creditworthiness and set appropriate credit limits and payment terms.
Turnover, margin, net profit and liquidity are the main measures used to monitor the performance of the company.
Internally, management use a variety of non-financial key performance indicators including the acquisition of new customers and product performance indicators. These are monitored and reported regularly.
On behalf of the board
The directors present their annual report and financial statements for the year ended 31 March 2025.
The results for the year are set out on page 9.
No ordinary dividends were paid. The directors do not recommend payment of a dividend.
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
The company has chosen to set out in the company's strategic report information required by the medium-sized company provisions to be contained within the directors' report. It has done so in respect of the business review and principal activities of the company.
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 The Fascia Place Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2025 which comprise 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, the company 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.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
Our audit approach was developed by obtaining an understanding of the company’s activities, the key functions undertaken on behalf of the Board by management and by service organisations, and the overall control environment. Based on this understanding we assessed those aspects of the company’s transactions and balances which were most likely to give rise to a material misstatement and were most susceptible to irregularities including fraud or error. Specifically, we identified what we considered to be key audit risks and planned our audit approach accordingly.
We gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates, and considered the risk of acts by the company which were contrary to applicable laws and regulations, including fraud. These included but were not limited to compliance with Companies Act 2006, FRS102 and tax regulations.
We designed audit procedures to respond to the risk, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion.
We focused on laws and regulations that could give rise to a material misstatement in the company financial statements. Our tests included, but were not limited to:
Agreement of the financial statements disclosures to underlying supporting documentation;
Enquiries of management;
Reviews of tax computations and returns;
Considering the effectiveness of control environment in monitoring compliance with laws and regulations.
There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. As in all of our audits we also addressed the risk of management override of internal controls, including testing journals and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud.
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 profit for the year was £221,533 (2024 - £228,364 profit).
The Fascia Place Group Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Unit 32, Invincible Road Industrial estate, Invincible Road, Farnborough, Hampshire, GU14 7QU.
The group consists of The Fascia Place Group 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 pound.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
The following group entities are exempt from audit by virtue of Section 479A of the Companies Act 2006. The Fascia Place Group Limited has provided a statutory guarantee to the following entity in accordance with Section 479C of the Companies Act 2006:
R. C. Grant & Sons Limited Registered number 03544347
The consolidated group financial statements consist of the financial statements of the parent company The Fascia Place Group 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 March 2025. 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.
At the time of approving the financial statements, the directors have reviewed cash flow forecasts and ensure that sufficient funds are available to give a reasonable expectation that the company 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. Please refer to the Strategic report for more details on the directors assessment of going concern.
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.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
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, associates and jointly controlled entities 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 and intangible 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.
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.
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.
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.
Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.
The tax expense represents the sum of the tax currently payable and deferred tax.
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
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.
Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.
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 following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
As part of the group’s property lease agreements, the group is required to repair any damage to leased properties that arises during the lease term. Management exercises judgement in assessing the likely nature, extent, and cost of such repairs, based on labour requirements and the leasehold works performed. No provision is recognised in respect of these obligations, but the directors recognise that the nature of estimation means that actual outcomes could differ from their estimates.
Management exercises judgement in determining whether any inventories require a provision for obsolescence or a write-down to net realisable value. The company stocks durable products that do not deteriorate, and management have assessed inventory condition and post year-end sales data in forming their view. Based on this assessment, no provision has been recognised.
Management exercises judgement in assessing whether the value of Investments is impaired, particularly in light of the losses reported in the current and prior year. This assessment requires consideration of forecast profitability and cash generation in determining the recoverable amount of the Investments. Based on these forecasts, no impairment has been recognised.
The average monthly number of persons (including directors) employed by the group and company during the year was:
Their aggregate remuneration comprised:
In the prior year, wages and salaries (£957,917), social security costs (£80,627), and pension costs (£22,836) were reclassified from administrative expenses to cost of sales.
The actual credit for the year can be reconciled to the expected credit for the year based on the profit or loss and the standard rate of tax as follows:
The brought forward goodwill position as at 1 April 2024 represents the cost and amortisation of goodwill arising on the acquisition of the two subsidiaries, R. C. Grant & Sons Limited and The Fascia Place Limited, a number of years ago.
Details of the company's subsidiaries at 31 March 2025 are as follows:
The Fascia Place Group Limited has provided a guarantee under s479A and R.C. Grant & Sons have exercised the exemption available under s479C. Therefore, The Fascia Place Group Limited have fully guaranteed all the liabilities of the subsidiary R.C. Grant & Sons Limited. The subsidiary, R.C. Grant & Sons Limited, is therefore exempt from audit obligations in accordance with section 479A of Companies Act 2006.
Included within other creditors is a loan of £200,000 that is secured on a personal property owned by the shareholders. The loan bears interest of 6% per annum and is repayable in April 2027.
Finance lease payments represent rentals payable by the company for certain motor vehicles. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 4 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:
The deferred tax liability set out above relates to accelerated capital allowances and is expected to reverse over the next 10 years in line with the depreciation of those fixed assets.
The deferred tax asset, which relates to tax losses carried forward, has been netted off against the liability as it is expected that this will be used over a similar time period.
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, pension contributions outstanding amount to £14,907 (2024: £20,407).
The profit and loss reserve records retained earnings and accumulated losses attributable to the shareholders of the group company.
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:
During the year ended 31 March 2025, a subsidiary company made sales to a director of £6,352 (2024: £Nil). No amounts are owed to the company in respect to these sales at the reporting end date.
The subsidiary company also made purchases from non-group entities over which a director has joint control. During the year ended 31 March 2025, these purchases amounted to £9,563 (2024: £1,389). No amounts are owed to the connected companies in respect to these purchases at the reporting end date.
The subsidiary company lets part of one of its premises to a non-group entity over which a director has joint control. During the period ended 31 March 2025, the rent charged was £12,000 (2024: £12,000). In addition, a proportion of the business rates for the premises were also recharged. During the year ended 31 March 2025, the business rates recharged amounted to £16,064 (2024: £13,307). At the reporting end date, the amount due to the company from the non-group entity was £43,425 (2024: £15,362).
The company had an outstanding loan from Mr J M C Preece amounting to £407,678 (2024: £171,352) at the year end. No interest is being accrued on the loan.
During the year, management identified a material prior period error in relation to the presentation of direct labour costs which had been included in error within administrative expenses as opposed to costs of sales. Management identified this error following a review of administrative expenditure as part of their cost-cutting assessment and reclassified these to give a better representation of the company's gross profit margins.
There has been no impact on the net profit as a result of this adjustment, and therefore no impact on the opening reserves of the company.