Company registration number 00212209 (England and Wales)
PELICAN ENGINEERING CO. LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
PELICAN ENGINEERING CO. LIMITED
COMPANY INFORMATION
Directors
Robert Edward Crump
Richard Basil Crump
Sarah Jane Newton
Amelia Mary Crump
Company number
00212209
Registered office
Altofts Lane
Wakefield Europort
Castleford
West Yorkshire
WF10 5UB
Auditor
BHP LLP
New Chartford House
Centurion Way
Cleckheaton
Bradford
West Yorkshire
BD19 3QB
PELICAN ENGINEERING CO. LIMITED
CONTENTS
Page
Strategic report
1 - 3
Directors' report
4 - 6
Directors' responsibilities statement
7
Independent auditor's report
8 - 10
Group statement of comprehensive income
11
Group balance sheet
12
Company balance sheet
13
Group statement of changes in equity
14
Company statement of changes in equity
15
Group statement of cash flows
16
Notes to the financial statements
17 - 31
PELICAN ENGINEERING CO. LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2022
- 1 -

The directors present the strategic report for the year ended 31 March 2022.

Fair review of the business

Since 2020, when the first zero-emission electric buses were delivered, Pelican has grown its share of the UK market for all-electric passenger vehicles to over 15% and become one of the largest suppliers nationally.

 

By the end of March 2022, the supply of zero emission single deck buses had increased to a total of 205 vehicles in service, and Pelican is focused on the increasing number of UK bus and coach operators who have shown that they are keen to adopt the latest technology, adding greener and more efficient alternatives to their fleets. Significant new orders were received from McGills Bus Services for 55 electric buses and from Cardiff Bus for 36 electric buses.

 

As well as receiving orders from new customers, Pelican is also seeing repeat orders from operators in England, Scotland and Wales such as Go North East and Newport Transport and has a strong pipeline of new vehicle orders going forward.

 

The truck dealerships continue to be strong and significant contributors to the company's overall profitability. Truck aftersales has proved to be very a resilient sector during every previous severe economic downturn and afford the business a strong degree of resilience in the event of a drop in new vehicle sales. There has been a steady increase in the local area vehicle park with new customers gained during the year. Parts and labour sales finished the year at an all-time high compared to any previous year.

Covid-19 had no effect on any of the businesses and all stock vehicles delayed due to covid were sold during the year.

Principal risks and uncertainties

The company generates most of its business from the three different franchise agreements it holds from DAF, MAN and Yutong. The loss of any of these agreements would be detrimental however the directors see no reason why these different agreements are at any immediate risk of termination. Also, having different franchises at least spreads the risk and mitigates the damage of losing one of the franchises.

 

The company operates in a highly competitive market and must respond quickly to changing offers from competitors in order not to be undercut. Ongoing market research is carried out to continually collect and evaluate competitor information to mitigate this risk.

 

The company finances its operations through a mixture of retained profits, asset finance and bank borrowings. There is a risk that a large increase in interest rates would reduce profitability however the directors minimise this risk by using both fixed and floating facilities.

 

In order to manage customer credit risk, credit limits are set for all account customers based on payment history, references and publicly available information. These limits are reviewed on a regular basis in conjunction with debt aging and collection records.

 

Liquidity risks are managed by the continual weekly monitoring of available cash balances and the directors have a policy of committing more than sufficient cash funds to meet all obligations.

Key performance indicators

The group's key financial and other performance indicators during the year were as follows:

 

 

Unit

2022

2021

Turnover

£

72,575,547

43,396,878

Increase/(fall) in turnover

%

67

9

Gross profit margin

%

19

20

Profit before tax

£

6,048,706

3,372,199

MOT first time pass rate

%

99.2

100

Parts first time pick rate

%

96.8

95.2

 

 

PELICAN ENGINEERING CO. LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
- 2 -
Promoting the success of the company

The success of the company is dependent on the full engagement and support of all our stakeholders. The directors are committed to ensuring it operates within a strong corporate culture with due regard to all its stakeholders.

 

Shareholders

The board is committed in ensuring all shareholders are kept fully informed in a timely manner to ensure they are all aware of the company’s objectives and plans through the provision of timely and relevant financial and operational information.

 

Employees

The directors are committed to ensuring there is an environment that allows for full engagement with all employees through clear communication, employment contracts, welfare monitoring, training and development opportunities. All of these being underpinned by compliance to our statutory responsibilities as an employer. The company has a strong record of reinvesting profits to provide staff and customers with modern safe premises equipped with the very latest tooling and welfare facilities.

 

Employment policies are in place to ensure the provision of equal opportunities for all employees and potential employees regardless of race, nationality, religion, age, disability, gender or sexual orientation.

 

Community

The company has a series of plans in place covering company cars, energy consumption and waste management. Donations are made to several charities and sponsored events, both local and national, throughout the year.

 

Suppliers

The relationships with key suppliers MAN, DAF and Yutong are fundamental to the success of the business. The directors and senior management have long standing high level contacts at all these franchise providers.

 

Customers

The Pelican mission statement and philosophy is “The Customer Comes First”. The company seeks to achieve this by training all staff to the highest possible standards, ensuring parts stock held at depots is amongst the highest anywhere in the UK and offering a ‘’one stop shop‘’ for all customer requirements. The directors spend considerable time with our customers to understand their needs and views and listen to how we can continually improve our offer and service for them.

 

Regulators

The company engages with regulators such as the Driver and Vehicle Standards Agency (DVSA), the LowCVP, and the Confederation of Passenger Transport (CPT) to communicate our views to policy makers. The directors take legal and regulatory developments into account when considering all future actions.

 

Future Outlook

The company’s future progress and success are directly linked to the successful strategy of the manufacturers it represents.

 

DAF has consistently been the UK market leader for over 20 years and the local DAF vehicle park continues to grow.

 

MAN is owned by VW group and a new management team at MAN UK Ltd has a clear and credible plan to grow their UK market share.

 

As trucks become more complex, aftersales work retention at dealerships continues to grow at the expense of third party repairers. The location of Pelican, which is key to aftersales work, is unrivalled in the area.

 

Yutong is ideally placed to benefit from new opportunities arising from increasing demand for new zero emission electric bus and coach sales. Each new round of government funding has resulted in further orders. Yutong is the largest global manufacturer of electric buses and has a strong commitment to achieving a significant market share in the UK as bus fleets move to zero emission vehicles.

 

Pelican is currently a UK leader in supporting large electric vehicles in service which will benefit the company as larger numbers of electric trucks start to enter service.

PELICAN ENGINEERING CO. LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
- 3 -

On behalf of the board

Richard Basil Crump
Director
12 September 2022
PELICAN ENGINEERING CO. LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2022
- 4 -

The directors present their annual report and financial statements for the year ended 31 March 2022.

 

Information relating to fair review of the business and principal risks and uncertainties is included in the strategic report.

Principal activities

The company is the UK and Ireland sole importer and distributor for Yutong electric buses and coaches responsible for all aspects of sales and aftersales throughout the UK. Yutong is the largest bus manufacturer in the world with about 15% of the global market. At the start of 2022, a new long term distribution agreement was signed with Yutong.

 

The company also operates truck dealerships for DAF and MAN providing a full range of services for truck operators in the north of England.

Results and dividends

The results for the year are set out on page 11.

Ordinary dividends were paid amounting to £885,840. The directors do not recommend payment of a further dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Robert Edward Crump
Richard Basil Crump
Sarah Jane Newton
Amelia Mary Crump
Financial instruments
Objectives and policies

The group utilises financial instruments in order to finance its trading operations.

Price risk, credit risk, liquidity risk and cash flow risk

The group's principal financial instruments comprise bank balances, bank overdrafts, trade creditors, trade debtors, loans to/from the group and lease purchase agreements. The main purpose of these instruments is to raise funds for the group's operations and to finance the company's operations.

 

Due to the nature of the financial instruments used by the group there is no exposure to price risk. The company's approach to managing other risks applicable to the financial instruments concerned is shown below.

 

In respect of bank balances the liquidity risk is managed by maintaining a balance between the continuity of funding through the use of overdrafts and inter group borrowings.

 

Trade debtors are managed in respect of credit and cash flow risk policies concerning the credit offered to customers and the regular monitoring of amounts outstanding for both time and credit limits.

 

Trade creditors liquidity risk is managed by ensuring sufficient funds are available to meet amounts due.

Future developments

The directors have continued to ensure that the group is efficiently resourced, and are confident that the group is ideally placed to benefit from upturns in the economy.

PELICAN ENGINEERING CO. LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
- 5 -
Auditor

In accordance with the company's articles, a resolution proposing that BHP LLP be reappointed as auditor of the group will be put at a General Meeting.

Energy and carbon report
2022
2021
Energy consumption
kWh
kWh
Aggregate of energy consumption in the year
- Gas combustion
1,156,988
1,035,827
- Electricity purchased
518,075
438,826
- Fuel consumed for transport
946,420
899,978
2,621,483
2,374,631
2022
2021
Emissions of CO2 equivalent
metric tonnes
metric tonnes
Scope 1 - direct emissions
- Gas combustion
208.26
189.72
- Fuel consumed for owned transport
259.93
255.25
468.19
444.97
Scope 2 - indirect emissions
- Electricity purchased
100.19
93.18
Scope 3 - other indirect emissions
- Fuel consumed for transport not owned by the company
-
-
Total gross emissions
568.38
538.15
Intensity ratio
Tonnes CO2e per employee
3.79
3.69
Quantification and reporting methodology

Emissions are calculated using the UK Government Conversion Factors for Company reporting 2022.

Intensity measurement

The chosen intensity measurement ratio is total gross emissions in metric tonnes CO2e per employee, the recommended ratio for the sector.

PELICAN ENGINEERING CO. LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
- 6 -
Measures taken to improve energy efficiency

All Pelican business’ hold ISO 14001 Environmental Management accreditation. Throughout the year a number of steps have been taken to reduce emissions.

 

The car policy has been updated to allow only the purchase of hybrid or electric cars with additional incentives for electric cars. The first electric van has gone into service for evaluation during the year.

 

A program to change all lighting in the dealership buildings to LED has recently been completed and older steel roller doors have been changed to insulated panel doors. Light switching in all rooms that are not always occupied, such as kitchens and toilets, have been changed to motion sensitive switching.

 

Longer distance travel is continually under review with a target of a minimum of 15% reduction compared to pre-covid levels. In particular, one to one meetings are moved online as much as reasonably possible and there is a wider move to remote online training.

 

The 152 electric vehicles sold in the past year which will collectively save in the region of 4m tonnes of tailpipe carbon emissions every year.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

On behalf of the board
Richard Basil Crump
Director
12 September 2022
PELICAN ENGINEERING CO. LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MARCH 2022
- 7 -

The directors are responsible for preparing the Annual Report 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 group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The directors are responsible for the maintenance and integrity of the company website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

PELICAN ENGINEERING CO. LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF PELICAN ENGINEERING CO. LIMITED
- 8 -
Opinion

We have audited the financial statements of Pelican Engineering Co. Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2022 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).

In our opinion the financial statements:

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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent 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

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

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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. 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 course of 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 this gives rise to a material misstatement in the financial statements themselves. 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 our audit:

PELICAN ENGINEERING CO. LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF PELICAN ENGINEERING CO. LIMITED
- 9 -
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 their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

 

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, 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 is 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 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 parent company or to cease operations, or have no realistic alternative but to do so.

Auditor's 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 an auditor's report 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.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

 

We gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates and considered the risk of acts by the company that were contrary to applicable laws and regulations, including fraud. We designed audit procedures to respond to the risk, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

We focussed on laws and regulations, relevant to the company, which could give rise to a material misstatement in the financial statements. Our tests included agreeing the financial statement disclosures to underlying supporting documentation, enquiries with management, review of company minutes and legal expenses. There are inherent limitations in the audit procedures described and, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it.

As part of our audit, we addressed the risk of management override of internal controls, including testing of journals and review of nominal ledger. We evaluated whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

PELICAN ENGINEERING CO. LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF PELICAN ENGINEERING CO. LIMITED
- 10 -

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.

Nigel Bullas (Senior Statutory Auditor)
For and on behalf of BHP LLP
14 September 2022
Chartered Accountants
Statutory Auditor
New Chartford House
Centurion Way
Cleckheaton
Bradford
West Yorkshire
BD19 3QB
PELICAN ENGINEERING CO. LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2022
- 11 -
2022
2021
Notes
£
£
Turnover
3
72,575,547
43,396,878
Cost of sales
(58,789,303)
(34,669,891)
Gross profit
13,786,244
8,726,987
Administrative expenses
(7,875,303)
(5,659,382)
Other operating income
43,496
453,560
Operating profit
4
5,954,437
3,521,165
Interest receivable and similar income
8
153,212
1,260
Interest payable and similar expenses
9
(58,943)
(150,226)
Profit before taxation
6,048,706
3,372,199
Tax on profit
10
(1,278,694)
(511,340)
Profit for the financial year
4,770,012
2,860,859
Other comprehensive income
Revaluation of tangible fixed assets
-
0
930,014
Tax relating to other comprehensive income
-
0
(290,700)
Total comprehensive income for the year
4,770,012
3,500,173
Profit for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.

The profit and loss account has been prepared on the basis that all operations are continuing operations.

PELICAN ENGINEERING CO. LIMITED
GROUP BALANCE SHEET
AS AT 31 MARCH 2022
31 March 2022
- 12 -
2022
2021
Notes
£
£
£
£
Fixed assets
Tangible assets
12
8,267,330
7,864,194
Current assets
Stocks
15
11,345,860
9,205,415
Debtors
16
3,644,273
4,221,413
Cash at bank and in hand
5,887,389
7,166,593
20,877,522
20,593,421
Creditors: amounts falling due within one year
17
(8,739,420)
(10,532,672)
Net current assets
12,138,102
10,060,749
Total assets less current liabilities
20,405,432
17,924,943
Creditors: amounts falling due after more than one year
18
(897,709)
(2,513,092)
Provisions for liabilities
20
(585,000)
(373,300)
Net assets
18,922,723
15,038,551
Capital and reserves
Called up share capital
22
2,856
2,856
Revaluation reserve
1,146,221
1,155,562
Profit and loss reserves
17,773,646
13,880,133
Equity attributable to owners of the parent company
18,922,723
15,038,551
The financial statements were approved by the board of directors and authorised for issue on 12 September 2022 and are signed on its behalf by:
12 September 2022
Robert Edward Crump
Director
Richard Basil Crump
Director
PELICAN ENGINEERING CO. LIMITED
COMPANY BALANCE SHEET
AS AT 31 MARCH 2022
31 March 2022
- 13 -
2022
2021
Notes
£
£
£
£
Fixed assets
Tangible assets
12
7,103,256
7,029,203
Investments
13
100,001
110,000
7,203,257
7,139,203
Current assets
Debtors
16
5,795,267
1,956,928
Creditors: amounts falling due within one year
17
(137,369)
(151,500)
Net current assets
5,657,898
1,805,428
Total assets less current liabilities
12,861,155
8,944,631
Provisions for liabilities
(420,000)
(312,300)
Net assets
12,441,155
8,632,331
Capital and reserves
Called up share capital
22
2,856
2,856
Revaluation reserve
1,146,221
1,155,562
Profit and loss reserves
11,292,078
7,473,913
Total equity
12,441,155
8,632,331
The financial statements were approved by the board of directors and authorised for issue on 12 September 2022 and are signed on its behalf by:
12 September 2022
Robert Edward Crump
Director
Richard Basil Crump
Director
Company Registration No. 00212209
PELICAN ENGINEERING CO. LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2022
- 14 -
Share capital
Revaluation reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 April 2020
2,856
516,248
11,559,274
12,078,378
Period ended 31 March 2021:
Total for the year
-
-
2,860,859
2,860,859
Other comprehensive income:
Revaluation of tangible fixed assets
-
930,014
-
930,014
Tax relating to other comprehensive income
-
(290,700)
-
0
(290,700)
Total comprehensive income for the year
-
639,314
2,860,859
3,500,173
Dividends
11
-
-
(540,000)
(540,000)
Balance at 31 March 2021
2,856
1,155,562
13,880,133
15,038,551
Period ended 31 March 2022:
Total comprehensive income for the year
-
-
4,770,012
4,770,012
Dividends
11
-
-
(885,840)
(885,840)
Transfers
-
(9,341)
9,341
-
Balance at 31 March 2022
2,856
1,146,221
17,773,646
18,922,723
PELICAN ENGINEERING CO. LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2022
- 15 -
Share capital
Revaluation reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 April 2020
2,856
516,248
6,211,667
6,730,771
Year ended 31 March 2021:
Profit for the year
-
-
1,802,246
1,802,246
Other comprehensive income:
Revaluation of tangible fixed assets
-
930,014
-
930,014
Tax relating to other comprehensive income
-
(290,700)
-
0
(290,700)
Total comprehensive income for the year
-
639,314
1,802,246
2,441,560
Dividends
11
-
-
(540,000)
(540,000)
Balance at 31 March 2021
2,856
1,155,562
7,473,913
8,632,331
Year ended 31 March 2022:
Profit and total comprehensive income for the year
-
-
4,694,664
4,694,664
Dividends
11
-
-
(885,840)
(885,840)
Transfers
-
(9,341)
9,341
-
Balance at 31 March 2022
2,856
1,146,221
11,292,078
12,441,155
PELICAN ENGINEERING CO. LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2022
- 16 -
2022
2021
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
27
2,623,236
4,675,266
Interest paid
(58,943)
(123,246)
Income taxes paid
(591,000)
(257,928)
Net cash inflow from operating activities
1,973,293
4,294,092
Investing activities
Purchase of tangible fixed assets
(626,977)
(1,826,237)
Proceeds on disposal of tangible fixed assets
46,500
1,184,388
Interest received
20
1,260
Other income received from investments
153,192
-
0
Net cash used in investing activities
(427,265)
(640,589)
Financing activities
Repayment of borrowings
-
(26,980)
Proceeds of new bank loans
-
2,100,000
Repayment of bank loans
(1,812,641)
(306,615)
Payment of finance leases obligations
(126,751)
(166,808)
Dividends paid to equity shareholders
(885,840)
(540,000)
Net cash (used in)/generated from financing activities
(2,825,232)
1,059,597
Net (decrease)/increase in cash and cash equivalents
(1,279,204)
4,713,100
Cash and cash equivalents at beginning of year
7,166,593
2,453,493
Cash and cash equivalents at end of year
5,887,389
7,166,593
PELICAN ENGINEERING CO. LIMITED
NOTES TO THE  FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
- 17 -
1
Accounting policies
Company information

Pelican Engineering Co. Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Altofts Lane, Wakefield Europort, Castleford, West Yorkshire, WF10 5UB.

 

The group consists of Pelican Engineering Co. Limited and all of its subsidiaries.

1.1
Accounting convention

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, [modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.

This 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:

 

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 £4,694,664 (2021 - £1,802,246 profit).

1.2
Basis of consolidation

The consolidated financial statements incorporate those of Pelican Engineering Co. Limited and all of its subsidiaries (i.e. entities that the Group controls through its power to govern the financial and operating policies so as to obtain economic benefits). Subsidiaries acquired during the year are consolidated using the acquisitions method of accounting. Their results are incorporated from the date that control passes. All financial statements are made up to 31 March 2022.

 

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.

1.3
Going concern

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.

PELICAN ENGINEERING CO. LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
1
Accounting policies
(Continued)
- 18 -
1.4
Turnover

Turnover represents amounts chargeable, net of value added tax, in respect of the sale of goods and services to customers.

1.5
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Freehold land and buildings
1% on cost
Plant and machinery
20% reducing balance
Fixtures and fittings
20% reducing balance
Computer equipment
33.3% and 50% reducing balance
Motor vehicles
33.3% reducing balance

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.

1.6
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible 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 carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

1.7
Stocks

Stock and work in progress are valued at the lower of cost and net realisable value, after due regard for obsolete and slow moving stocks. Net realisable value is based on selling price less anticipated costs to completion and selling costs. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads.

1.8
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

PELICAN ENGINEERING CO. LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
1
Accounting policies
(Continued)
- 19 -
1.9
Financial instruments

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

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets

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.

Impairment of financial assets

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.

Derecognition of financial assets

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.

Classification of financial liabilities

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.

PELICAN ENGINEERING CO. LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
1
Accounting policies
(Continued)
- 20 -

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.10
Equity instruments

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.

1.11
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current 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

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.

PELICAN ENGINEERING CO. LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
1
Accounting policies
(Continued)
- 21 -
1.12
Employee benefits

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.

1.13
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.14
Leases

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 the profit and loss account so as to produce a constant periodic rate of interest on the remaining balance of the liability.

 

Assets held under hire purchase agreements are capitalised as tangible fixed assets and are depreciated over the shorter of the lease term and their useful lives. The capital element of future finance payments is included within creditors. Finance charges are allocated to accounting periods over the length of the contract and represent a constant proportion of the balance of capital repayments outstanding.

1.15
Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

 

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

 

Grants received in relation to the government Coronavirus Job Retention Scheme (Furlough) have been recognised within other operating income. The grant is accounted for on the accruals basis once the related payroll return has been submitted.

1.16
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

PELICAN ENGINEERING CO. LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
- 22 -
2
Judgements and key sources of estimation uncertainty

In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

3
Turnover and other revenue

The company's turnover arises from its principal activity, undertaken entirely in the UK.

4
Operating profit
2022
2021
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange losses/(gains)
148,386
(20,949)
Government grants
(20,996)
(436,720)
Depreciation of owned tangible fixed assets
265,260
239,593
Depreciation of tangible fixed assets held under finance leases
101,623
63,193
Profit on disposal of tangible fixed assets
(19,542)
(697,390)
5
Auditor's remuneration
2022
2021
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
2,545
2,450
Audit of the financial statements of the company's subsidiaries
11,690
11,260
14,235
13,710
For other services
Taxation compliance services
1,190
1,145
PELICAN ENGINEERING CO. LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
- 23 -
6
Employees

The average monthly number of persons (including directors) employed by the group and company during the year was:

2022
2021
Number
Number
Administration and support
30
26
Production
114
115
Other departments
6
5
150
146

Their aggregate remuneration comprised:

2022
2021
£
£
Wages and salaries
6,211,181
5,752,452
Social security costs
661,936
578,419
Pension costs
311,392
178,953
7,184,509
6,509,824
7
Directors' remuneration
2022
2021
£
£
Remuneration for qualifying services
112,981
94,616
Company pension contributions to defined contribution schemes
45,019
25,017
158,000
119,633

The number of directors for whom retirement benefits are accruing under money purchase pension schemes amounted to 3 (2021 - 3)

8
Interest receivable and similar income
2022
2021
£
£
Interest income
Other interest income
20
1,260
Other income from investments
Gains on financial instruments measured at fair value through profit or loss
153,192
-
0
Total income
153,212
1,260
PELICAN ENGINEERING CO. LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
8
Interest receivable and similar income
(Continued)
- 24 -

Investment income includes the following:

Gains on financial instruments measured at fair value through profit or loss
153,192
-
0
9
Interest payable and similar expenses
2022
2021
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
24,176
22,649
Other finance costs:
Interest on finance leases and hire purchase contracts
34,767
100,597
Loss on financial instruments measured at fair value through profit or loss
-
0
26,980
Total finance costs
58,943
150,226
10
Taxation
2022
2021
£
£
Current tax
UK corporation tax on profits for the current period
1,069,990
514,000
Adjustments in respect of prior periods
(2,996)
-
0
Total current tax
1,066,994
514,000
Deferred tax
Origination and reversal of timing differences
211,700
(2,660)
Total tax charge for the year
1,278,694
511,340

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:

2022
2021
£
£
Profit before taxation
6,048,706
3,372,199
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2021: 19.00%)
1,149,254
640,718
Tax effect of expenses that are not deductible in determining taxable profit
5,959
11,990
Change in unrecognised deferred tax assets
126,477
(141,381)
Adjustments in respect of prior years
(2,996)
13
Taxation charge for the year
1,278,694
511,340
PELICAN ENGINEERING CO. LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
10
Taxation
(Continued)
- 25 -

In addition to the amount charged to the profit and loss account, the following amounts relating to tax have been recognised directly in other comprehensive income:

2022
2021
£
£
Deferred tax arising on:
Revaluation of property
-
290,700
11
Dividends
2022
2021
£
£
Dividends paid
885,840
540,000
12
Tangible fixed assets
Group
Freehold land and buildings
Plant and machinery
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
Cost or valuation
At 1 April 2021
7,060,514
1,268,224
419,242
1,030,489
9,778,469
Additions
133,710
91,136
45,821
526,310
796,977
Disposals
-
0
(9,223)
(3,227)
(154,156)
(166,606)
At 31 March 2022
7,194,224
1,350,137
461,836
1,402,643
10,408,840
Depreciation and impairment
At 1 April 2021
31,311
907,688
346,325
628,951
1,914,275
Depreciation charged in the year
59,657
83,427
26,658
197,141
366,883
Eliminated in respect of disposals
-
0
(7,005)
(2,882)
(129,761)
(139,648)
At 31 March 2022
90,968
984,110
370,101
696,331
2,141,510
Carrying amount
At 31 March 2022
7,103,256
366,027
91,735
706,312
8,267,330
At 31 March 2021
7,029,203
360,536
72,917
401,538
7,864,194
PELICAN ENGINEERING CO. LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
12
Tangible fixed assets
(Continued)
- 26 -
Company
Freehold land and buildings
£
Cost or valuation
At 1 April 2021
7,060,514
Additions
133,710
At 31 March 2022
7,194,224
Depreciation and impairment
At 1 April 2021
31,311
Depreciation charged in the year
59,657
At 31 March 2022
90,968
Carrying amount
At 31 March 2022
7,103,256
At 31 March 2021
7,029,203

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

Group
Company
2022
2021
2022
2021
£
£
£
£
Motor vehicles
381,447
161,706
-
0
-
0

Revaluations

The freehold land and buildings class of fixed assets was revalued on 10 June 2021 by Carter Jonas who is external to the company. The basis of this valuation was open market value. This class of assets has a carrying amount at historical cost of £2,893,780 (2021 - £2,893,780). The depreciation on this historical cost is £348,009 (2021 - £317,007).

13
Fixed asset investments
Group
Company
2022
2021
2022
2021
Notes
£
£
£
£
Investments in subsidiaries
14
-
0
-
0
100,001
110,000
PELICAN ENGINEERING CO. LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
13
Fixed asset investments
(Continued)
- 27 -
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 April 2021
110,000
Share capital reduction
(9,999)
At 31 March 2022
100,001
Carrying amount
At 31 March 2022
100,001
At 31 March 2021
110,000

Knottingley Trucks Limited (subsidiary undertaking) undertook a share capital reduction on 15 November 2021.

This reduced the share capital from 10,000 Ordinary £1 shares to 1 Ordinary £1 share.

 

Knottingley Trucks Limited was dissolved on 6 September 2022.

14
Subsidiaries

Details of the company's subsidiaries at 31 March 2022 are as follows:

Name of undertaking
Nature of business
Class of
% Held
shareholding
Direct
Indirect
Knottingley Trucks Limited
Dormant company
Ordinary shares
100.00
0
Pelican Engineering Company (Sales), Limited
Commercial vehicle sales and service
Ordinary shares
100.00
0
15
Stocks
Group
Company
2022
2021
2022
2021
£
£
£
£
Chassis stock
7,581,290
6,585,793
-
-
Work in progress
52,724
33,541
-
0
-
0
Parts stock
3,711,846
2,586,081
-
0
-
0
11,345,860
9,205,415
-
0
-
0
PELICAN ENGINEERING CO. LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
- 28 -
16
Debtors
Group
Company
2022
2021
2022
2021
Amounts falling due within one year:
£
£
£
£
Trade debtors
3,098,131
4,067,012
-
0
-
0
Amounts owed by group undertakings
-
-
5,795,267
1,956,928
Other debtors
-
1,100
-
0
-
0
Prepayments and accrued income
546,142
153,301
-
0
-
0
3,644,273
4,221,413
5,795,267
1,956,928
17
Creditors: amounts falling due within one year
Group
Company
2022
2021
2022
2021
Notes
£
£
£
£
Bank loans and overdrafts
19
4,240,552
4,192,407
-
0
-
0
Obligations under finance leases
104,173
108,044
-
0
-
0
Trade creditors
1,460,738
2,319,122
-
0
-
0
Amounts due to group undertakings
-
0
-
0
1
10,000
Corporation tax payable
889,915
413,921
137,368
141,500
Other taxation and social security
1,264,763
2,232,069
-
-
Other creditors
228,452
894,201
-
0
-
0
Accruals and deferred income
550,827
372,908
-
0
-
0
8,739,420
10,532,672
137,369
151,500

Security has been given on the bank loans and overdrafts of £3,961,579 (2021 - £4,111,716) and the obligations under finance leases of £104,173 (2021 - £108,044).

18
Creditors: amounts falling due after more than one year
Group
Company
2022
2021
2022
2021
Notes
£
£
£
£
Loans and overdrafts
19
794,513
2,457,016
-
0
-
0
Obligations under finance leases
103,196
56,076
-
0
-
0
897,709
2,513,092
-
-

Security has been given on the bank loans and overdrafts of £794,513 (2021 - £2,457,016) and the obligations under finance leases of £103,196 (2021 - £56,076).

Amounts included above which fall due after five years are as follows:
Payable by instalments
121,112
182,975
-
-
PELICAN ENGINEERING CO. LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
- 29 -
19
Loans and overdrafts
Group
Company
2022
2021
2022
2021
£
£
£
£
Bank loans
4,756,092
6,568,733
-
0
-
0
Payable within one year
3,961,579
4,111,717
-
0
-
0
Payable after one year
794,513
2,457,016
-
0
-
0

The long-term loans and overdrafts are secured by a mortgage over the company's freehold property, a fixed and floating charge over the assets of the company and an unlimited multilateral guarantee given by the holding company and fellow subsidiary company.

 

The obligations under finance lease and hire purchase contracts are secured on the assets to which they relate.

20
Deferred taxation

Deferred tax assets and liabilities are offset where the group or company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:

Liabilities
Liabilities
2022
2021
Group
£
£
Accelerated capital allowances
202,500
83,985
Revaluations
382,500
290,700
Other timing differences
-
(1,385)
585,000
373,300
Liabilities
Liabilities
2022
2021
Company
£
£
Accelerated capital allowances
37,500
21,600
Revaluations
382,500
290,700
420,000
312,300
PELICAN ENGINEERING CO. LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
20
Deferred taxation
(Continued)
- 30 -
Group
Company
2022
2022
Movements in the year:
£
£
Liability at 1 April 2021
373,300
312,300
Credit to profit or loss
119,900
15,900
Effect of change in tax rate - equity
91,800
91,800
Liability at 31 March 2022
585,000
420,000

Of the deferred tax liability set out above, £62,000 is expected to reverse within 12 months and relates to accelerated capital allowances that are expected to mature in the same period.

21
Retirement benefit schemes
2022
2021
Defined contribution schemes
£
£
Charge to profit and loss in respect of defined contribution schemes
311,392
178,953

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.

Contributions totalling £8,331 (2021 - £7,287) were payable to the scheme at the end of year and are included in creditors.

22
Share capital
Group and company
2022
2021
Ordinary share capital
£
£
Issued and fully paid
2,856 Ordinary shares of £1 each
2,856
2,856

Each ordinary share is entitled to one vote in any circumstances.

23
Financial commitments, guarantees and contingent liabilities

The company has given an unlimited multilateral guarantee in respect of the bank borrowings of other group companies. The amount guaranteed is £4,756,092 (2021 - £6,568,733).

PELICAN ENGINEERING CO. LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
- 31 -
24
Related party transactions
Transactions with related parties

During the year the group entered into the following transactions with related parties:

Interest received
Rent paid
2022
2021
2022
2021
£
£
£
£
Group
Other related parties
-
1,194
15,000
15,000
Company
Rent paid
2022
2021
£
£
Other related parties
15,000
15,000
25
Directors' transactions

Dividends totalling £885,840 (2021 - £540,000) were paid in the year in respect of shares held by the company's directors.

26
Controlling party

The company is controlled by Richard Basil Crump, a director of the company, who owns 50.2% of the issued share capital.

27
Cash generated from group operations
2022
2021
£
£
Profit for the year after tax
4,770,012
2,860,859
Adjustments for:
Taxation charged
1,278,694
511,340
Finance costs
58,943
150,226
Investment income
(153,212)
(1,260)
Gain on disposal of tangible fixed assets
(19,542)
(697,390)
Depreciation and impairment of tangible fixed assets
366,883
302,786
Movements in working capital:
Increase in stocks
(2,140,445)
(43,220)
Decrease/(increase) in debtors
577,140
(940,147)
(Decrease)/increase in creditors
(2,115,237)
2,532,072
Cash generated from operations
2,623,236
4,675,266
2022-03-312021-04-01falseCCH SoftwareCCH Accounts Production 2022.200Robert Edward CrumpSarah Jane NewtonAmelia Mary CrumpAmelia Mary CrumpRichard Basil 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