Pimlico Group Limited - Limited company accounts 18.2

REGISTERED NUMBER: 11138569 (England and Wales)

GROUP STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MAY 2019

FOR

PIMLICO GROUP LIMITED

PREVIOUSLY KNOWN AS

PIMLICO TOPCO LIMITED

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

5

Consolidated Profit and loss account

7

Consolidated Balance Sheet

8

Company Balance Sheet

9

Consolidated Statement of Changes in Equity

10

Company Statement of Changes in Equity

11

Consolidated Cash Flow Statement

12

Notes to the Consolidated Financial Statements

13

DIRECTORS:

S C Mullins OBE

S C Mullins

REGISTERED OFFICE:

1 Sail Street

London

SE11 6NQ

REGISTERED NUMBER:

11138569 (England and Wales)

AUDITORS:

KBSP Partners LLP

Chartered Accountants

Statutory Auditors

Harben House

Harben Parade

Finchley Road

LONDON

NW3 6LH

The directors present their strategic report of the company and the group for the year ended 31 May 2019.

REVIEW OF BUSINESS

These accounts consolidate Pimlico Group Limited together with its wholly owned subsidiaries Pimlico Plumbers Limited

and Pimlico Holdco Limited. After consolidation adjustments, the only significant trading entity in the group is Pimlico

Plumbers Limited.

During the year under review the group saw a modest increase in turnover. Investment continues in systems and

software to improve efficiency and facilitate growth in all sectors of the business.

The profit for the year after taxation amounted to £3,861,257 (2018: £3,548,503). These results are shown on page

seven. The directors consider the results and the position at the year end to be satisfactory.

Key performance indicators

-

Turnover increased by £1,463,462 when compared to 2018 representing a 3.4% increase.

-

Gross profit to sales percentage increased to 38.08% compared to 36.23% achieved in 2018, this being driven by increased efficiencies.

-

Post tax profits increased by £312,754 when compared to 2018 representing 8.61% of turnover and an increase from 8.18% achieved in 2018.

PRINCIPAL RISKS AND UNCERTAINTIES

The group continues to plan to mitigate risks inherent in the business arising from normal trading and the current

economic climate and health and safety issues.

The risks facing the group are assessed on an ongoing basis. The directors evaluate the likelihood and potential impact of

risks and ensure appropriate action is taken to mitigate them. The key risk and mitigating factors are:

MARKET RISK

The market is very competitive. The group competes with a number of competitors of varying size in areas including

price, range, quality and service. Failure to compete effectively in any of these areas could have an adverse impact on

financial results; the group mitigates its exposure by ensuring that the business is differentiated from the competition by

the quality of its service and its customer care.

ON BEHALF OF THE BOARD:

S C Mullins - Director

19 February 2020

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

31 May 2019.

CHANGE OF NAME

The group passed a special resolution on 30 April 2019 changing its name from Pimlico Topco Limited to Pimlico Group Limited.

PRINCIPAL ACTIVITY

The group's principal activity during the year continued to be that of plumbing, heating, electrical, roofing and general

property maintenance.

DIVIDENDS

No interim dividend was paid during the year. The group paid final dividends during the year as follows:

First final dividend

£800,000

- 31 August 2018

Second final dividend

£800,000

- 30 November 2018

Third final dividend

£800,000

- 28 February 2019

Fourth final dividend

£1,300,000

- 30 April 2019

£3,700,000

FUTURE DEVELOPMENTS

The directors aim to maintain the management policies which have resulted in the group's growth and profitability in

recent years. In the coming year they expect the group to maintain its sales and profitability at the same levels as shown

in these accounts.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 June 2018 to the date of this report.

S C Mullins OBE

S C Mullins

FINANCIAL INSTRUMENTS

The group's principal financial instruments comprise bank balances, debtors and creditors and as a result, there is

exposure to liquidity, cash flow risks, and credit risks. The group regularly reviews amounts owed to creditors to make

sure that cash is available to make all payments as and when they fall due. The group periodically monitors amounts due

from debtors to ensure these are recovered as soon as possible. These steps helps to mitigate liquidity, cash flow and

credit risks.

POLITICAL DONATIONS AND EXPENDITURE

During the year ended 31 May 2019 the group made no political donations (2018: £41,750).

STATEMENT OF DIRECTORS' RESPONSIBILITIES

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

statements in accordance with applicable law and regulations.

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

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

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

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

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

are required to:

-	select suitable accounting policies and then apply them consistently;

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

-	state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;

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

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

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

company and the group and enable them to ensure that the financial statements comply with the Companies Act 2006.

They are also responsible for safeguarding the assets of the company and the group and hence for taking reasonable

steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

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

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

as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors

are aware of that information.

ON BEHALF OF THE BOARD:

S C Mullins - Director

19 February 2020

Opinion

We have audited the financial statements of Pimlico Group Limited (the 'parent company') and its subsidiaries (the

'group') for the year ended 31 May 2019 which comprise the Consolidated Profit and loss account, Consolidated Balance

Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity,

Consolidated Cash Flow Statement and Notes to the Financial Statements, including a summary of significant accounting

policies. The financial reporting framework that has been applied in their preparation is applicable law and United

Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable

in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the group's and of the parent company affairs as at 31 May 2019 and of the group's profit for the year then ended;

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

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

Basis for opinion

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

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

statements section of our report. We are independent of the group in accordance with the ethical requirements that are

relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our

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

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

Conclusions relating to going concern

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 group'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 Group

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

Auditors thereon.

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

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

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

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

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

apparent material misstatements, we are required to determine whether 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 Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

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

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and its environment obtained in

the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the

Directors.

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

if, in our opinion:

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

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

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

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

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on pages three and four, the directors are

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

for such internal control as the directors determine necessary to enable the preparation of financial statements that are

free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the group's and the parent company's

ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going

concern basis of accounting unless the directors either intend to liquidate the group or the parent company or to cease

operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

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

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

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

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

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

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

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.

Michael Marks FCA (Senior Statutory Auditor)

for and on behalf of KBSP Partners LLP

Chartered Accountants

Statutory Auditors

Harben House

Harben Parade

Finchley Road

LONDON

NW3 6LH

19 February 2020

TURNOVER

4

44,845,745

43,382,283

Cost of sales

27,766,938

27,665,352

GROSS PROFIT

17,078,807

15,716,931

Administrative expenses

12,338,279

11,295,607

OPERATING PROFIT

6

4,740,528

4,421,324

Interest receivable and similar income

617

782

4,741,145

4,422,106

Interest payable and similar expenses

7

7,248

367

PROFIT BEFORE TAXATION

4,733,897

4,421,739

Tax on profit

8

872,640

873,236

PROFIT FOR THE FINANCIAL YEAR

3,861,257

3,548,503

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

3,861,257

3,548,503

Profit attributable to:

Owners of the parent

3,861,257

3,548,503

Total comprehensive income attributable to:

Owners of the parent

3,861,257

3,548,503

FIXED ASSETS

Intangible assets

11

139,440

103,885

Tangible assets

12

2,074,370

1,904,006

Investments

13

-

-

2,213,810

2,007,891

CURRENT ASSETS

Stocks

14

16,000

16,000

Debtors

15

10,411,917

9,402,998

Cash at bank and in hand

376,300

907,495

10,804,217

10,326,493

CREDITORS

Amounts falling due within one year

16

7,659,096

7,136,710

NET CURRENT ASSETS

3,145,121

3,189,783

TOTAL ASSETS LESS CURRENT LIABILITIES

5,358,931

5,197,674

CAPITAL AND RESERVES

Called up share capital

20

5,000

5,000

Retained earnings

21

5,353,931

5,192,674

SHAREHOLDERS' FUNDS

5,358,931

5,197,674

The financial statements were approved by the Board of Directors on 19 February 2020 and were signed on its behalf by:

S C Mullins - Director

FIXED ASSETS

Intangible assets

11

-

-

Tangible assets

12

-

-

Investments

13

10,000

10,000

10,000

10,000

TOTAL ASSETS LESS CURRENT LIABILITIES

10,000

10,000

CAPITAL AND RESERVES

Called up share capital

20

5,000

5,000

Retained earnings

21

5,000

5,000

SHAREHOLDERS' FUNDS

10,000

10,000

Company's profit for the financial year

3,700,000

1,733,622

The financial statements were approved by the Board of Directors on 19 February 2020 and were signed on its behalf by:

S C Mullins - Director

Called up

Capital

share

Retained

reduction

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1 June 2017

10,000

6,213,943

-

6,223,943

Changes in equity

Cancellation of share capital

(5,000

)

-

5,000

-

Investment demerger

-

(1,433,622

)

-

(1,433,622

)

Transfer between reserves

-

5,000

(5,000

)

-

Loss on disposal of subsidiary

-

158,850

-

158,850

Dividends

-

(3,300,000

)

-

(3,300,000

)

Total comprehensive income

-

3,548,503

-

3,548,503

Balance at 31 May 2018

5,000

5,192,674

-

5,197,674

Changes in equity

Dividends

-

(3,700,000

)

-

(3,700,000

)

Total comprehensive income

-

3,861,257

-

3,861,257

Balance at 31 May 2019

5,000

5,353,931

-

5,358,931

Called up

Capital

share

Retained

reduction

Total

capital

earnings

reserve

equity

£

£

£

£

Changes in equity

Issue of share capital

10,000

-

-

10,000

Cancellation of share capital

(5,000

)

-

5,000

-

Investment demerger

-

(1,433,622

)

-

(1,433,622

)

Transfer between reserves

-

5,000

(5,000

)

-

Dividends

-

(300,000

)

-

(300,000

)

Total comprehensive income

-

1,733,622

-

1,733,622

Balance at 31 May 2018

5,000

5,000

-

10,000

Changes in equity

Dividends

-

(3,700,000

)

-

(3,700,000

)

Total comprehensive income

-

3,700,000

-

3,700,000

Balance at 31 May 2019

5,000

5,000

-

10,000

Cash flows from operating activities

Cash generated from operations

28

4,864,804

5,092,989

Interest paid

(7,248

)

(367

)

Tax paid

(700,000

)

(387,700

)

Net cash from operating activities

4,157,556

4,704,922

Cash flows from investing activities

Purchase of intangible fixed assets

(61,335

)

(33,955

)

Purchase of tangible fixed assets

(674,052

)

(895,158

)

Sale of tangible fixed assets

11,559

(112

)

Sale of fixed asset investments

-

1,433,622

Interest received

617

782

Net cash from investing activities

(723,211

)

505,179

Cash flows from financing activities

Amount introduced by directors

5,184,936

3,339,440

Amount withdrawn by directors

(5,824,821

)

(5,603,876

)

Share issue

-

(5,000

)

Equity dividends paid

(3,700,000

)

(3,300,000

)

Net cash from financing activities

(4,339,885

)

(5,569,436

)

Decrease in cash and cash equivalents

(905,540

)

(359,335

)

Cash and cash equivalents at beginning of year

29

907,495

1,266,830

Cash and cash equivalents at end of year

29

1,955

907,495

1.	STATUTORY INFORMATION

Pimlico 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 General Information page.

2.	STATEMENT OF COMPLIANCE

These financial statements have been prepared in accordance with the Financial Reporting Standard 102 "The

Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The

group has early adopted "Amendments to FRS 102 - Triennial Review 2017".

3.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements have been prepared under the historical cost convention.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting

estimates. It also requires management to exercise judgement in applying the group's accounting policies.

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

policies have been consistently applied to all the years presented, unless otherwise stated.

Basis of consolidation

The group was formed in January 2018 as a result of a business combination that falls within the criteria of a

group reconstruction as specified in Part 1 of Schedule 6 of Statutory Instrument 2008/410 and FRS 102, which

require the consolidated accounts to be prepared in accordance with the principles of merger accounting.

These accounts consolidate the accounts of Pimlico Group Limited and its subsidiaries Pimlico Plumbers Limited

and Pimlico Holdco Limited.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating

policies of an entity so as to obtain benefits from its activities. Where the group owns less than 50% of the voting

powers of an entity but controls the entity by virtue of an agreement with other investors which gives it control of

the financial and operating policies of the entity it accounts for that as a subsidiary.

All intra-group transactions, balances, income and expenses are eliminated on consolidation.

Going concern

The group meets its day-to-day working capital requirements through careful management of working capital

positions. After reviewing cash flow forecasts, profit and loss forecasts, and making necessary enquiries, the

directors have a reasonable expectation that the group has adequate resources to continue in operational

existence for the foreseeable future. The group therefore continues to adopt the going concern basis in preparing

its financial statements.

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.

i) Critical judgement in applying the group's accounting policies

There are no judgements in applying the group's accounting policies that have a significant risk of causing a

material misstatement to the financial statements.

ii) Critical accounting estimates and assumptions

The group 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 assets and liabilities within the next financial year are

addressed below.

(a) Useful economic lives of tangible and intangible assets

The annual depreciation charge for tangible assets and annual amortisation charge for intangible assets are

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 technological advancement, future investments, economic utilisation and, where

applicable, the physical condition of the assets.

(b) Taxation

The group establishes provisions based on reasonable estimates, for possible consequences of audits by the tax

authorities.

Turnover

Turnover is measured at the fair value of the consideration received or receivable and represents the amount

receivable for goods supplied and services rendered, net of returns, discounts and rebates allowed by the group

and value added tax.

Turnover recognition: -

Supply of goods - turnover is recognised when the goods are supplied or supplied and fitted which represents the

time at which the significant risks and rewards of ownership have been transferred to the customer.

Supply of services - turnover is recognised in the period in which the services are rendered in accordance with the

stage of completion of the transaction, as determined on a straight line basis, where the outcome of the

transaction can be measured reliably.

Intangible fixed assets

Intangible fixed assets comprise cherished vehicle registration number plates and are stated at cost less

accumulated amortisation and accumulated impairment losses. Amortisation is calculated using the straight-line

method, to allocate the depreciable amount of the assets to their residual values over their estimated useful lives

of 10 years. Amortisation is charged to administrative expenses in the Profit and Loss Account

Where factors, such as technological change or changes in market price, indicate that residual value or useful life

have changed, the residual value, useful life or amortisation rate are amended prospectively to reflect the new

circumstances.

The assets are reviewed for impairment if the above factors indicate that the carrying amount may be impaired.

Tangible fixed assets

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

economic life:

Short leasehold

10% on cost

Plant and machinery -

25% on reducing balance

Fixtures and fittings -

10 % on cost

Motor vehicles -

25% on reducing balance

Depreciation is charged to administrative expenses in the consolidated profit and loss account.

Tangible assets are stated at cost less accumulated depreciation and accumulated impairment losses. Cost

includes the original purchase price, costs directly attributable to bringing the asset to its working condition for its

intended use, dismantling and restoration costs.

The carrying values of tangible fixed assets are reviewed for impairment when events or changes in

circumstances indicate the carrying value may not be recoverable.

The assets' residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting

period. The effect of any change is accounted for prospectively.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are

recognised within the statement of comprehensive income.

Stocks

Stocks are valued at the lower of cost and estimated selling price less costs of completion and sale.

Taxation

Taxation expense for the year comprises current tax recognised in the reporting period. Tax is recognised in the

Consolidated Profit and loss account, except to the extent that it relates to items recognised in other

comprehensive income or directly in equity. In this case, tax is also recognised in other comprehensive income or

directly in equity respectively.

Current tax is recognised at the amount of tax payable in respect of the taxable profit for the year or prior years.

Tax is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the year

end.