The Parkside Group Limited - Limited company accounts 18.2

REGISTERED NUMBER: 00921619 (England and Wales)

THE PARKSIDE GROUP LIMITED

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

AUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31ST DECEMBER 2018

Page

Company Information

1

Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

6

Statement of Comprehensive Income

8

Balance Sheet

9

Statement of Changes in Equity

10

Cash Flow Statement

11

Notes to the Cash Flow Statement

12

Notes to the Financial Statements

13

DIRECTORS:

S J Jones

M D Hayward

P T Dziurzynski

L Alexander

A Davey

R Reeve

SECRETARY:

P T Dziurzynski

REGISTERED OFFICE:

Unit 5 The Willow's Business Centre

Willow Lane

Mitcham

Surrey

REGISTERED NUMBER:

00921619 (England and Wales)

SENIOR STATUTORY AUDITOR:

Steven Davies FCA

AUDITORS:

Sinclairs Bartrum Lerner

Statutory Auditor

39A Welbeck Street

London

W1G 8DH

BANKERS:

Barclays Bank PLC

PO Box 95

1 North End

Croydon

CR9 1TN

The directors present their strategic report for the year ended 31st December 2018.

REVIEW OF BUSINESS

The company's performance was reduced in 2018 compared with 2017. The market has generally remained challenging

with projects delayed and concerns over commercial investment due to Brexit uncertainty.

Turnover decreased by 8% and margins were down, largely due to the ongoing weakness of the pound, which has

pushed up purchase costs, and, lower than expected demand in the market, which has suppressed the opportunity to pass

these cost increases on to the market.

The company will continue to invest in new products and sales development to aid this growth in 2019 which we see as

another challenging year due to weaker trading conditions.

The key financial performance indicators are as follows:

2018

2017

2016

2015

Turnover ('000's)

£19,528

£21,266

£20,916

£21,575

Gross profit margin

37.20%

40.45%

41.50%

42.05%

Net profit/(loss) before tax ('000's)

£67

£1,438

£1,765

£2,221

Liquidity ratio (current assets:current liabilities)

1.39:1

1.59:1

1.49:1

1.18:1

Stock turnover (days)

188

188

167

162

PRINCIPAL RISKS AND UNCERTAINTIES

The board of directors evaluate the risks and uncertainties faced by the company. The principal risks faced by the

company are:

Price risk, which largely arises from the fluctuation in commodity prices and foreign exchange rates. The company's

products are chiefly comprised of aluminium, the price of which is subject to some volatility. Many supplies sourced

from abroad are denominated in foreign currencies which are subject to fluctuation against the pound. The directors

closely monitor the markets and use forward contracts where necessary to mitigate the risk of adverse price movement.

Credit risk, which is the risk that a customer may not fully discharge its debt. Customers' credit accounts are operated

within predetermined parameters. The company has effective systems to closely monitor its relationship with its

customers to minimise its exposure to credit risk.

Liquidity risk, which is the risk that the company may be unable to meet its liabilities as they fall due. The company

generates sufficient cash from operations to enable it to comfortably satisfy its suppliers' terms of business.

The effect of the UK leaving the European Union. The nature of the impact of "Brexit" on the economy is unclear and

the effects are hard to quantify. The company has suppliers both within the EU and elsewhere in the world. The

directors continue to monitor the issue as it develops.

FUTURE DEVELOPMENTS

Sales development and new product development will continue to be the key strategic focus for the company going

forward. The company will continue to invest in the training and personal development of its key staff in order to

provide a robust organisation which is well positioned to deal with the challenges and anticipated demands of our

markets.

ON BEHALF OF THE BOARD:

P T Dziurzynski - Secretary

16th September 2019

The directors present their report with the financial statements of the company for the year ended 31st December 2018.

PRINCIPAL ACTIVITY

The principal activities of the company in the year under review continued to be those of suppliers of aluminium and

composite fenestration and door systems and door hardware.

DIVIDENDS

The total distribution of dividends for the year ended 31st December 2018 will be £ 1,500,000 .

FUTURE DEVELOPMENTS

A summary of future developments is included in the strategic report.

DIRECTORS

The directors shown below have held office during the whole of the period from 1st January 2018 to the date of this

report.

S J Jones

M D Hayward

P T Dziurzynski

L Alexander

A Davey

R Reeve

DIRECTORS' INDEMNITIES

The company has made contributions to a directors' liability insurance policy during the year.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements

in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors

have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting

Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not

approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the

company and of the profit or loss of the company for that period. In preparing these financial statements, the directors

are required to:

-	select suitable accounting policies and then apply them consistently;

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

-	prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the

company's transactions and disclose with reasonable accuracy at any time the financial position of the company and

enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for

safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud

and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act

2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to

have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that

the company's auditors are aware of that information.

ON BEHALF OF THE BOARD:

P T Dziurzynski - Secretary

16th September 2019

Opinion

We have audited the financial statements of The Parkside Group Limited (the 'company') for the year ended

31st December 2018 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in

Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a

summary of significant accounting policies. The financial reporting framework that has been applied in their preparation

is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The

Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted

Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 31st December 2018 and of its profit for the year then ended;

-	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

-	have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law.

Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the

financial statements section of our report. We are independent of the company in accordance with the ethical

requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard,

and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit

evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to

you where:

-	the directors' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or

-

the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the company's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.

Other information

The directors are responsible for the other information. The other information comprises the information in the Strategic

Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors

thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise

explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing

so, consider whether the other information is materially inconsistent with the financial statements or our knowledge

obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or

apparent material misstatements, we are required to determine whether there is a material misstatement in the financial

statements or a material misstatement of the other information. If, based on the work we have performed, we conclude

that there is a material misstatement of this other information, we are required to report that fact. We have nothing to

report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

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

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

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit,

we have not identified material misstatements in the Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to

you if, in our opinion:

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

-	the financial statements are not in agreement with the accounting records and returns; or

-	certain disclosures of directors' remuneration specified by law are not made; or

-	we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page four, the directors are responsible

for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such

internal control as the directors determine necessary to enable the preparation of financial statements that are free from

material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a

going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of

accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic

alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from

material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion.

Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with

ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and

are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic

decisions of users taken on the basis of these financial statements.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting

Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the

Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those

matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent

permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's

members as a body, for our audit work, for this report, or for the opinions we have formed.

Steven Davies FCA (Senior Statutory Auditor)

for and on behalf of Sinclairs Bartrum Lerner

Statutory Auditor

39A Welbeck Street

London

W1G 8DH

16th September 2019

TURNOVER

3

19,528,381

21,265,855

Cost of sales

12,264,439

12,663,735

GROSS PROFIT

7,263,942

8,602,120

Distribution costs

1,961,390

2,070,385

Administrative expenses

5,235,838

5,093,610

7,197,228

7,163,995

OPERATING PROFIT

5

66,714

1,438,125

Interest receivable and similar income

-

292

PROFIT BEFORE TAXATION

66,714

1,438,417

Tax on profit

6

(19,633

)

193,163

PROFIT FOR THE FINANCIAL YEAR

86,347

1,245,254

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

86,347

1,245,254

FIXED ASSETS

Intangible assets

8

-

31,112

Tangible assets

9

269,136

398,834

269,136

429,946

CURRENT ASSETS

Stocks

10

6,317,022

6,494,344

Debtors

11

4,864,613

5,447,519

Cash at bank and in hand

316,403

101,583

11,498,038

12,043,446

CREDITORS

Amounts falling due within one year

12

8,280,864

7,553,796

NET CURRENT ASSETS

3,217,174

4,489,650

TOTAL ASSETS LESS CURRENT LIABILITIES

3,486,310

4,919,596

PROVISIONS FOR LIABILITIES

16

28,614

48,247

NET ASSETS

3,457,696

4,871,349

CAPITAL AND RESERVES

Called up share capital

17

48,000

48,000

Retained earnings

18

3,409,696

4,823,349

SHAREHOLDERS' FUNDS

3,457,696

4,871,349

The financial statements were approved and authorised for issue by the Board of Directors on 16th September 2019 and were signed on its behalf by:

P T Dziurzynski - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1st January 2017

48,000

3,578,095

3,626,095

Changes in equity

Total comprehensive income

-

1,245,254

1,245,254

Balance at 31st December 2017

48,000

4,823,349

4,871,349

Changes in equity

Dividends

-

(1,500,000

)

(1,500,000

)

Total comprehensive income

-

86,347

86,347

Balance at 31st December 2018

48,000

3,409,696

3,457,696

Cash flows from operating activities

Cash generated from operations

1

824,224

1,781,520

Tax paid

(82,840

)

(145,875

)

Net cash from operating activities

741,384

1,635,645

Cash flows from investing activities

Purchase of tangible fixed assets

(1,335

)

(62,749

)

Sale of tangible fixed assets

300

-

Increase in loan advanced

-

(1,564,691

)

Decrease in loan advanced

974,471

-

Interest received

-

292

Net cash from investing activities

973,436

(1,627,148

)

Cash flows from financing activities

Equity dividends paid

(1,500,000

)

-

Net cash from financing activities

(1,500,000

)

-

Increase in cash and cash equivalents

214,820

8,497

Cash and cash equivalents at beginning of year

2

101,583

93,086

Cash and cash equivalents at end of year

2

316,403

101,583

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

2018

2017

£

£

Profit before taxation

66,714

1,438,417

Depreciation charges

162,145

173,480

Loss on disposal of fixed assets

-

4,223

Finance income

-

(292

)

228,859

1,615,828

Decrease/(increase) in stocks

177,322

(936,828

)

Increase in trade and other debtors

(387,997

)

(276,858

)

Increase in trade and other creditors

806,040

1,379,378

Cash generated from operations

824,224

1,781,520

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of

these Balance Sheet amounts:

Year ended 31st December 2018

31/12/18

1/1/18

£

£

Cash and cash equivalents

316,403

101,583

Year ended 31st December 2017

31/12/17

1/1/17

£

£

Cash and cash equivalents

101,583

93,086

1.	STATUTORY INFORMATION

The Parkside Group Limited is a private company, limited by shares , registered in England and Wales. The

company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).

The significant accounting policies applied in the preparation of these financial statements are set out below.

These policies have been consistently applied to all periods presented unless otherwise stated.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

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

Significant judgements and estimates

Estimates and judgements are continually evaluated and are based on historical experience and other factors,

including expectations of future events that are believed to be reasonable under the circumstances.

Accounting estimates and assumptions

The company makes estimates and assumptions concerning the future. The resulting accounting estimates will,

by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk

of causing a material adjustment to the carrying amounts of the assets and liabilities within the next financial

year are addressed below.

(a) Useful economic lives of assets

The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives

and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They

are amended when necessary to reflect current estimates, based on future investments, economic utilisation and

the physical condition of the assets.

(b) Stock provision

The company supplies aluminium and composite fenestration and door systems and door hardware and is subject

to changing customer demands and market trends. As a result it is necessary to consider the recoverability of the

cost of stock and the associated provisioning required. When calculating the stock provision, management

considers the nature and condition of the stock, as well as applying assumptions around anticipated saleability of

stock held.

(c) Impairment of debtors

The company makes an estimate of the recoverable value of trade and other debtors. When assessing impairment

of trade and other debtors, management considers factors including the current credit rating of the debtor, the

ageing profile of debtors and historical experience.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates,

value added tax and other sales taxes.

Revenue recognition

Revenue is recognised when the risks and rewards of ownership have substantively transferred to the customer,

regardless of whether legal title has transferred. This condition is normally met when the goods have been

delivered or upon the performance of services.

Intangible fixed assets

Purchased intangible assets which are expected to have useful lives in excess of one year are recognised as fixed

assets and are measured at cost. Following initial recognition, intangible fixed assets are stated at cost less

accumulated amortisation and any impairment losses

Amortisation is provided at the following rates in order to write off each asset over its estimated useful life.

Patents and licences

- Over the duration of the patent or licence

Internally generated intangible assets are recognised as an expense in the year in which the expenditure is

incurred.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Improvements to property

-

over the duration of the lease

Plant and machinery

-

20% on reducing balance

Fixtures and fittings

-

25% reducing balance & 25% straight line

Motor vehicles

-

25% on reducing balance

Tangible assets are measured at cost less accumulated depreciation and any accumulated impairment losses.

Stocks

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

slow moving items.

Stock of punching tools is valued on the basis of direct costs plus attributable overheads based on normal

activity levels. Provision is made for any foreseeable losses where appropriate. No element of profit is included

in the valuation of stock of punching tools.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive

Income, except to the extent that it relates to items recognised in other comprehensive income or directly in

equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or

substantively enacted by the balance sheet date.

Deferred tax

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

sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from

those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that

have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the

timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they

will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the

balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling

at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. The assets of the scheme are held separately from

those of the company in a independently administered fund. Contributions payable for the year are charged in

the profit and loss account.

Debtors

Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured

initially at fair value, net of transaction costs and are measured subsequently at amortised cost using the effective

interest method, less any impairment.

Creditors

Short term trade 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.

3.

TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the company.

An analysis of turnover by class of business is given below:

2018

2017

£

£

Sales of goods

19,528,381

21,265,855

19,528,381

21,265,855

Turnover attributable to various geographical markets has not been disclosed as in the opinion of the directors,

its disclosure would be seriously prejudicial to the interests of the company.

4.	EMPLOYEES AND DIRECTORS

2018

2017

£

£

Wages and salaries

3,531,548

3,603,954

Social security costs

409,236

416,606

Other pension costs

134,710

131,153

4,075,494

4,151,713

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

2018

2017

Warehouse and delivery

26

26

Selling and administration

70

69

96

95

2018

2017

£

£

Directors' remuneration

633,328

766,666

Directors' pension contributions to money purchase schemes

28,952

36,253

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes

7

7

Information regarding the highest paid director is as follows:

2018

2017

£

£

Emoluments etc

208,100

254,000

Pension contributions to money purchase schemes

10,000

10,000

5.	OPERATING PROFIT

The operating profit is stated after charging:

2018

2017

£

£

Depreciation - owned assets

131,033

157,923

Loss on disposal of fixed assets

-

4,223

Patents and licences amortisation

31,112

15,557

Auditors' remuneration

22,650

15,000

Foreign exchange differences

59,196

61,055

Operating leases - properties

619,606

619,606

6.

TAXATION

Analysis of the tax (credit)/charge

The tax (credit)/charge on the profit for the year was as follows:

2018

2017

£

£

Current tax:

UK corporation tax

-

206,370

Deferred tax

(19,633

)

(13,207

)

Tax on profit

(19,633

)

193,163