Pimlico Group Limited - Limited company accounts 20.1

REGISTERED NUMBER: 11138569 (England and Wales)

GROUP STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MAY 2020

FOR

PIMLICO GROUP 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 2020.

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 continued increase in turnover up to the time when the country went into

lockdown as a response to the outbreak of Covid-19.

The group as a provider of essential services continued to operate through the lockdown period although at a reduced

level. Upon the lifting of the lockdown, the company saw its turnover return to year on year growth.

Investment continues in systems and software upgrades to improve efficiency and facilitate growth in all sectors of the

business.

The profit for the year after taxation amounted to £3,858,267 (2019: £3,861,257). 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 decreased by £1,565,912 when compared to 2019 representing a 3.5% decrease. It is noted that during the lockdown period turnover decreased by approximately £2m when compared to 2019.

-

Gross profit to sales percentage increased to 38.82% compared to 38.08% achieved in 2019, this being driven by increased efficiencies.

-

Pre tax profits show a small increase over those of 2019 despite the decrease in turnover caused by Covid-19.

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:

COVID-19

The group has continued to operate despite the onslaught of Covid-19. The group takes all possible precautions to

protect both staff and customers and continues to operate, adhering strictly to government guidance. Should government

guidance change materially it could have a significant impact on the group's ability to continue to trade.

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

10 November 2020

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

31 May 2020.

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

£80

- 31 August 2019

Second final dividend

£80

- 30 November 2019

Third final dividend

£80

- 28 February 2020

Fourth final dividend

£110

- 31 May 2020

£350

The total distribution of dividends for the year ended 31 May 2020 was £3,500,000.

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 increase its sales and profitability at the same pre Covid-19

rates reported over the last few years.

EVENTS SINCE THE END OF THE YEAR

Information relating to events since the end of the year is given in the notes to the financial statements.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 June 2019 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.

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

10 November 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 2020 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 2020 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

11 November 2020

TURNOVER

4

43,279,833

44,845,745

Cost of sales

26,478,648

27,766,938

GROSS PROFIT

16,801,185

17,078,807

Administrative expenses

12,042,564

12,338,279

4,758,621

4,740,528

Other operating income

5

248,450

-

OPERATING PROFIT

7

5,007,071

4,740,528

Interest receivable and similar income

4,009

617

5,011,080

4,741,145

Interest payable and similar expenses

8

58,425

7,248

PROFIT BEFORE TAXATION

4,952,655

4,733,897

Tax on profit

9

1,094,388

872,640

PROFIT FOR THE FINANCIAL YEAR

3,858,267

3,861,257

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

3,858,267

3,861,257

Profit attributable to:

Owners of the parent

3,858,267

3,861,257

Total comprehensive income attributable to:

Owners of the parent

3,858,267

3,861,257

FIXED ASSETS

Intangible assets

12

183,600

139,440

Tangible assets

13

1,525,327

2,074,370

Investments

14

-

-

1,708,927

2,213,810

CURRENT ASSETS

Stocks

15

16,000

16,000

Debtors

16

9,776,461

10,411,917

Cash at bank and in hand

1,354,157

376,300

11,146,618

10,804,217

CREDITORS

Amounts falling due within one year

17

6,413,536

7,659,096

NET CURRENT ASSETS

4,733,082

3,145,121

TOTAL ASSETS LESS CURRENT LIABILITIES

6,442,009

5,358,931

CREDITORS

Amounts falling due after more than one year

18

(642,379

)

-

PROVISIONS FOR LIABILITIES

22

(82,432

)

-

NET ASSETS

5,717,198

5,358,931

CAPITAL AND RESERVES

Called up share capital

23

5,000

5,000

Retained earnings

24

5,712,198

5,353,931

SHAREHOLDERS' FUNDS

5,717,198

5,358,931

The financial statements were approved by the Board of Directors and authorised for issue on 10 November 2020 and

were signed on its behalf by:

S C Mullins - Director

FIXED ASSETS

Intangible assets

12

-

-

Tangible assets

13

-

-

Investments

14

10,000

10,000

10,000

10,000

TOTAL ASSETS LESS CURRENT LIABILITIES

10,000

10,000

CAPITAL AND RESERVES

Called up share capital

23

5,000

5,000

Retained earnings

24

5,000

5,000

SHAREHOLDERS' FUNDS

10,000

10,000

Company's profit for the financial year

3,500,000

3,700,000

The financial statements were approved by the Board of Directors and authorised for issue on 10 November 2020 and were signed on its behalf by:

S C Mullins - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 June 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

Changes in equity

Dividends

-

(3,500,000

)

(3,500,000

)

Total comprehensive income

-

3,858,267

3,858,267

Balance at 31 May 2020

5,000

5,712,198

5,717,198

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 June 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

Changes in equity

Dividends

-

(3,500,000

)

(3,500,000

)

Total comprehensive income

-

3,500,000

3,500,000

Balance at 31 May 2020

5,000

5,000

10,000

Cash flows from operating activities

Cash generated from operations

33

4,410,985

4,864,804

Interest paid

(2,155

)

(7,248

)

Interest element of finance lease payments paid

(56,270

)

-

Tax paid

(873,444

)

(700,000

)

Net cash from operating activities

3,479,116

4,157,556

Cash flows from investing activities

Purchase of intangible fixed assets

(104,194

)

(61,335

)

Purchase of tangible fixed assets

(132,115

)

(674,052

)

Sale of tangible fixed assets

25,935

11,559

Interest received

4,009

617

Net cash from investing activities

(206,365

)

(723,211

)

Cash flows from financing activities

New finance lease loans

578,887

-

Capital repayments in year

(131,118

)

-

Amount introduced by directors

3,799,021

5,184,936

Amount withdrawn by directors

(2,667,339

)

(5,824,821

)

Equity dividends paid

(3,500,000

)

(3,700,000

)

Net cash from financing activities

(1,920,549

)

(4,339,885

)

Increase/(decrease) in cash and cash equivalents

1,352,202

(905,540

)

Cash and cash equivalents at beginning of year

34

1,955

907,495

Cash and cash equivalents at end of year

34

1,354,157

1,955

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.

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

requires 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 computer software. Intangible

fixed assets 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 as follows:

Cherished number plates - 10 years

Computer software - 2 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

Leasehold improvements -

25% straight line (2019:10% straight line)

Plant and machinery -

25% straight line (2019: 25% reducing balance)

Fixtures and fittings -

25% straight line (2019: 10% straight line)

Motor vehicles -

25% straight line (2019: 25% reducing balance)

Depreciation is charged to administrative expenses in the 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.

From 1 June 2019 the depreciation rates changed as specified above. This represents a change in accounting

estimate which is accounted for prospectively. The effect of the change in accounting estimate on these accounts

is additional depreciation charges and a further reduction in the net book value of fixed assets of £583,792.

Government grants

Grants relating to revenue are recognised on an accruals basis such that grant income matches the expense it is

intended to compensate.

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.

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.