The directors present the strategic report for the year ended 31 December 2025.
The directors continue to monitor turnover, gross margin, and On Time & In Full (OTIF) delivery performance as the primary key performance indicators.
Market Conditions
The new-build housing market in England & Wales presented a mixed picture throughout 2025. Whilst the first half of the year showed encouraging signs of recovery, supported by modest improvements in mortgage affordability and the Government's stated ambitions to increase housing supply, conditions deteriorated materially in the second half of 2025. Renewed pressure on construction cost inflation, persistent planning constraints and a slowdown in housing starts amongst major developers weighed heavily on demand from H2 2025 onwards. Most national and regional developers reduced build volumes during this period as they sought to manage land bank commitments and project pipelines in response to shifting market conditions.
Notwithstanding these headwinds, the group delivered a strong performance for the full year, with total revenue of £48.5m representing growth of approximately 21% over the prior year, and profit before tax of £2.1m compared to £1.1m in 2024.
Business Performance
The group delivered strong trading performance for the year ended 31st December 2025, with net turnover of £48.5m. Gross profit of £6.3m represented a gross margin of 13.1%. Administrative and overhead costs of £4.2m included investment in the group's people and systems, notably the costs associated with the new ERP implementation and the ongoing development of the external sales and customer services teams. Profit before taxation of £2.1m represents a net margin of 4.4%, a materially improved outcome compared to 2024 and demonstrating the operational leverage inherent in the business as margins recover. All four depots, Hedge End, Tonbridge, Warboys, and Bristol, contributed positively to the result, with Bristol continuing to develop its customer base and improve its profitability as the year progressed.
ERP System Implementation
A significant milestone was achieved in April 2025 with the successful go-live of the group's new ERP platform, following the resolution of data migration challenges that had caused the implementation to be rescheduled. The transition was executed seamlessly, with no disruption to customers or business partners. The new system has delivered immediate and tangible benefits, including enhanced real-time visibility of stock, orders and financial performance across all depots, significantly improved management reporting capability and a more robust platform to support the group's continued growth. The ERP system also provides the foundation for advanced capabilities including artificial intelligence and machine learning applications, which the directors anticipate will drive further process optimisation and improvements to customer experience in the years ahead.
Operational Resilience
The group maintained its strong operational performance throughout 2025, sustaining OTIF delivery rates consistently above 99%. This level of service reliability remains a core competitive differentiator and continues to underpin strong customer retention across the business.
Outlook
The directors remain mindful of the challenges facing the new-build housing market in England & Wales, particularly given the softening of demand observed in H2 2025. Whilst Government policy remains supportive of increased housing supply over the medium term, the timing and scale of any recovery is subject to macro-economic factors including interest rates, mortgage affordability and planning system reform. The group will continue to apply disciplined cost management and will remain agile in its response to market conditions.
The group is well positioned to benefit from any recovery in housing activity, supported by its expanded four-depot distribution network, improved operational systems and the growing capability of its commercial and external sales teams.
The group intends to continue investing in its people, systems and customer proposition. The new ERP platform will be further developed to unlock additional capabilities and the group will continue to evaluate opportunities to strengthen its market position. Directors will maintain a disciplined approach to cost control whilst supporting targeted growth initiatives across the depot network.
The group is actively exploring opportunities to secure a fifth depot location, with the intention of agreeing terms and securing the new delivery depot in the second half of 2026. This expansion reflects the senior leadership team's confidence in the group's operational model and its ability to replicate the performance achieved across the existing depot network in new geographies. A fifth depot would further extend the group's logistical reach and capacity to service customers across a broader footprint, positioning the business well to capitalise on the anticipated recovery in new-build housing activity in the second half of 2027.
Market demand remains the primary risk, with the group's revenues significantly exposed to the level of new residential construction activity in England & Wales. The softening of the new-build market observed in H2 2025 serves as a reminder of the sensitivity of the business to housing cycle dynamics. The directors actively monitor forward indicators including housing starts data, developer pipeline announcements and customer order trends.
The integration and optimisation of the new ERP system remains an area of management focus, with ongoing effort directed at maximising the return on the group's investment in this platform and ensuring staff are fully trained and equipped to utilise its capabilities.
Supply chain risks, pricing volatility and competitive pressures are actively managed through supplier partnerships, inventory management policies and the group's commitment to delivering an exceptional level of service to its customers. Directors will continue to monitor all material risks closely.
The directors believe that the following indicators will provide sufficient information to assess how effectively the group is performing:
| 2025 | 2024 |
Turnover | £48,473,685 | £39,927,620 |
Gross profit | £6,167,692 | £4,636,699 |
Operating profit | £2,045,732 | £1,177,247 |
Gross profit margin | 12.7% | 11.6% |
% on time delivery rates | 99% | 99% |
On behalf of the board
The directors present their annual report and financial statements for the year ended 31 December 2025.
The results for the year are set out on page 9.
Ordinary dividends were paid amounting to £1,200,000. The directors do not recommend payment of a further dividend.
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
The group’s activities expose it to a number of financial risks including credit risk, cash flow risk and liquidity risk. The group adopts a prudent approach to liquidity management and to mitigate against cash flow and liquidity risk continuously monitors forecasted and actual cash and maintains sufficient cash reserves to meet its obligations. The group’s main exposure to credit risk is its provision of short-term credit to customers with the group carrying out associated credit risk by insuring all customers via the provision of credit insurance.
In the uncertain economic climate there is a heightened risk that a greater number of sub-contractors in the construction industry will suffer from a continued downturn in the new build housing market and go out of business. The group will remain vigilant to the possibility of seeing an increase in customers defaulting on payment terms and will take action against persistent offenders. Such action will include the cessation of trading with persistent offenders. The group continues to invest in credit control processes and procedures to assist in identifying risk at the earliest opportunity.
The group has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the group's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of Future Developments.
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 P.V.C. Group Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 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 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.
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.
Extent to which the audit was considered capable of detecting irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.
We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework. Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.
In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:
Enquiry of management and those charged with governance around actual and potential litigation and claims as well as actual, suspected and alleged fraud;
Reviewing minutes of meetings of those charged with governance;
Assessing the extent of compliance with the laws and regulations considered to have a direct material effect on the financial statements or the operations of the entity through enquiry and inspection;
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;
Performing audit work over the risk of management bias and override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for indicators of potential bias.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
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 £1,200,000 (2024 - £600,000 profit).
P.V.C. Group Holdings Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Sovereign House, Unit 28a Solent Industrial Estate, Shamblehurst Lane, Southampton, Hampshire, United Kingdom, SO30 2FX.
The group consists of P.V.C. Group 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 company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 26 ‘Share based Payment’: Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
The consolidated group financial statements consist of the financial statements of the parent company P.V.C. Group Holdings Limited together with its subsidiary.
All financial statements are made up to 31 December 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.
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 represents amounts receivable for goods net of VAT and trade discounts and is recognised at the point of sale of goods.
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.
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. 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 and loans from fellow group companies 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.
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.
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.
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.
The average monthly number of persons (including directors) employed by the group and company during the year was:
Their aggregate remuneration comprised:
For the purposes of disclosure key management personnel and directors are the same people, therefore no separate disclosure has been made.
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
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 2025 are as follows:
Amounts payable under finance leases are secured against the assets concerned.
Amounts payable under finance leases are secured against the assets concerned.
Finance lease payments represent rentals payable by the company or group for certain items of plant and machinery. 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 3 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
Obligations under finance leases are secured over the assets to which they relate.
The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:
The company operates 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.
The A Ordinary, B Ordinary, C Ordinary and D Ordinary have rights to participate in any dividends made by the company as determined by the directors. The directors may determine this on one or more share class to the exclusion of the other share classes.
The shareholders rank pari passu in all other respects.
The company granted options in 2022 under an EMI Scheme which vest on an exit event including the transfer of its shares in its subsidiary, P.V.C. Building Supplies Limited. The options have no maximum term, the method of settlement is in equity. Options are forfeited if the employee leaves the company before the options can be exercised.
The options are exercisable at a price of £71 for E shares and £1 for F Shares.
The final number of share options to be exercised for both classes are dependent on sale proceeds excluding excess cash. The maximum number of share options is 3,186 for E shares and 1,000 for F shares.
E Shares – at the date the options were granted in 2022, the options were not considered to be material and therefore no charge has been made to the profit and loss account.
F Shares – at the date the options were granted in 2022, the options were not considered to be material and therefore no charge has been made to the profit and loss account.
All options are held by Mr S Davies, director.
None have been exercised in the period or are exercisable at the period end.
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 following amounts were outstanding at the reporting end date:
At the balance sheet date there is a loan from P.V.C. Group Holdings Limited of £685,000 (2024: £685,000) to SWJF Holdings Limited a company that is owned by two of the shareholders and directors of the group. This is interest free and repayable on demand. The loan is unsecured.
The same company owes P.V.C. Building Supplies Limited £50,024 (2024: £50,024) for expenses paid on their behalf, this is included in short term debtors as it is repayable on demand, and no interest is charged on this amount. Rent of £160,000 (2024: £160,000) was paid in the year to the same company.
During the year, the group paid rent and service charges of £100,916 (2024: £92,000) in respect of premises occupied by the group to a close family member of the group's shareholders. The transaction was undertaken in the normal course of business and was settled during the year.