Company registration number 01880477 (England and Wales)
P AND A FENCING AND SHEDS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2022
P AND A FENCING AND SHEDS LIMITED
COMPANY INFORMATION
Directors
Mr R Hughes
Mr S G Morgan
Ms H Bainbridge
Mr A Baker
Mrs C Hung
Mrs W Yun
Secretary
Mr S G Morgan
Company number
01880477
Registered office
Mold Industrial Estate
Wrexham Road
Mold
CH7 4HE
Auditor
D G Hicks Ltd
Unit 11
Mold Business Park
Wrexham Road
Mold
CH7 1XP
P AND A FENCING AND SHEDS LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2
Directors' responsibilities statement
3
Independent auditor's report
4 - 5
Profit and loss account
6
Statement of comprehensive income
7
Balance sheet
8
Statement of changes in equity
9
Notes to the financial statements
10 - 20
P AND A FENCING AND SHEDS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2022
- 1 -

The directors present the strategic report for the year ended 30 September 2022.

Business Review

The company’s turnover contracted by £0.637m to £18.441m. The profit before tax was £1.042m, a reduction of £0.059m.

 

The reduction in turnover is mainly due to the cost of living crisis and the lifting of travel restrictions post Covid. This resulted in less garden products being sold in the second half of the financial year. As the company forward purchases the majority of these products, the unforeseen reduction in demand resulted in higher than desirable stock levels at the end of the financial year. Despite these challenges the company has continued its investments in new technology and process improvements which should stand it in good stead for the future.

Principal risks and uncertainties

The risks facing the company are constantly monitored. The directors are of the opinion that the principle risks facing the company relate to the wider economic conditions which influence the demand for its products.

 

Whenever possible the company agrees purchase prices in advance to manage potential fluctuations in the price of raw materials, particularly in the post brexit era.

 

The directors are mindful of health and safety regulatory compliance and all aspects of public liability are comprehensively covered by appropriate insurance.

Financial key performance indicators

The company measures its financial performance and position by reference to key performance indicators including turnover, profit before tax, net assets and net current assets. An analysis of the performance and position of the company by reference to some of these KPI's is included in the business review above.

Other key performance indicators

The company uses non-financial KPI's to monitor and measure success on a regular basis.

 

The company has a policy to protect the environment wherever we obtain our source materials, with KPI's being used to measure the proportion of timber purchased from forests that are well managed environmentally according to the Forest Stewardship Council (FSC) Standards, and in the financial year all timber purchased was from FSC approved forests. In addition other non-financial areas of the business such as customer service, staff productivity and wellbeing indicators considered key to the business are also monitored using KPI's.

 

On behalf of the board

Mr R Hughes
Director
8 July 2023
P AND A FENCING AND SHEDS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2022
- 2 -

The directors present their annual report and financial statements for the year ended 30 September 2022.

Principal activities

The principal activity of the company continued to be that of both manufacturing and purchasing wooden products for resale, operating a garden centre and cafe, and selling aggregates.

Directors

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

Mr R Hughes
Mr S G Morgan
Ms H Bainbridge
Mr A Baker
Mrs C Hung
Mrs W Yun
Results and dividends

The results for the year are set out on page 6.

Ordinary dividends were paid amounting to £713,500. The directors do not recommend payment of a further dividend.

Auditor

The auditor, D G Hicks Ltd, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

Statement of disclosure to the 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 company’s auditor 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 company’s auditor is aware of that information.

On behalf of the board
Mr R Hughes
Director
8 July 2023
P AND A FENCING AND SHEDS LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 SEPTEMBER 2022
- 3 -

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 company and of the profit or loss of the company 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 company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

P AND A FENCING AND SHEDS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF P AND A FENCING AND SHEDS LIMITED
- 4 -
Opinion

We have audited the financial statements of P and A Fencing and Sheds Limited (the 'company') for the year ended 30 September 2022 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity 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 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 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:

P AND A FENCING AND SHEDS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF P AND A FENCING AND SHEDS LIMITED
- 5 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the 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 company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

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.

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.

Daniel Hicks FCA (Senior Statutory Auditor)
For and on behalf of D G Hicks Ltd
11 July 2023
Chartered Accountants
Statutory Auditor
Unit 11
Mold Business Park
Wrexham Road
Mold
CH7 1XP
P AND A FENCING AND SHEDS LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 30 SEPTEMBER 2022
- 6 -
2022
2021
Notes
£
£
Turnover
3
18,441,351
19,077,852
Cost of sales
(11,733,285)
(12,100,090)
Gross profit
6,708,066
6,977,762
Distribution costs
(1,966,641)
(2,732,609)
Administrative expenses
(3,737,730)
(2,288,194)
Other operating income
163,653
413,298
Operating profit
4
1,167,348
2,370,257
Interest receivable and similar income
7
15
-
0
Interest payable and similar expenses
8
(125,609)
(50,482)
Profit before taxation
1,041,754
2,319,775
Tax on profit
9
(165,240)
(387,882)
Profit for the financial year
876,514
1,931,893

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

P AND A FENCING AND SHEDS LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 SEPTEMBER 2022
- 7 -
2022
2021
£
£
Profit for the year
876,514
1,931,893
Other comprehensive income
-
-
Total comprehensive income for the year
876,514
1,931,893
P AND A FENCING AND SHEDS LIMITED
BALANCE SHEET
AS AT
30 SEPTEMBER 2022
30 September 2022
- 8 -
2022
2021
Notes
£
£
£
£
Fixed assets
Tangible assets
11
609,587
340,664
Current assets
Stocks
12
2,918,460
2,605,638
Debtors
13
7,088,051
6,679,936
Cash at bank and in hand
2,735
14,783
10,009,246
9,300,357
Creditors: amounts falling due within one year
14
(4,197,295)
(3,277,956)
Net current assets
5,811,951
6,022,401
Total assets less current liabilities
6,421,538
6,363,065
Creditors: amounts falling due after more than one year
15
(2,159,754)
(2,264,295)
Provisions for liabilities
Deferred tax liability
18
92,418
92,418
(92,418)
(92,418)
Net assets
4,169,366
4,006,352
Capital and reserves
Called up share capital
21
100
100
Profit and loss reserves
4,169,266
4,006,252
Total equity
4,169,366
4,006,352
The financial statements were approved by the board of directors and authorised for issue on 8 July 2023 and are signed on its behalf by:
Mr A Baker
Director
Company Registration No. 01880477
P AND A FENCING AND SHEDS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2022
- 9 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 October 2020
100
3,433,859
3,433,959
Year ended 30 September 2021:
Profit and total comprehensive income for the year
-
1,931,893
1,931,893
Dividends
10
-
(1,359,500)
(1,359,500)
Balance at 30 September 2021
100
4,006,252
4,006,352
Year ended 30 September 2022:
Profit and total comprehensive income for the year
-
876,514
876,514
Dividends
10
-
(713,500)
(713,500)
Balance at 30 September 2022
100
4,169,266
4,169,366
P AND A FENCING AND SHEDS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2022
- 10 -
1
Accounting policies
Company information

P and A Fencing and Sheds Limited is a private company limited by shares incorporated in England and Wales. The registered office is Mold Industrial Estate, Wrexham Road, Mold, CH7 4HE.

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:

 

- Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;

- Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues’: Interest income/expense and net gains/losses for each category of financial instrument; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;

 

The financial statements of the company are consolidated in the financial statements of George Morgan Holdings Limited. These consolidated financial statements are available from its registered office, George Morgan Holdings Limited, Mold Industrial Estate, Wrexham Road, Mold, CH7 4HE.

1.2
Going concern

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company 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.

1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

P AND A FENCING AND SHEDS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2022
1
Accounting policies
(Continued)
- 11 -

Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.

1.4
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:

Plant and equipment
20% on cost
Fixtures and fittings
25% on cost
Computers
25% on cost
Motor vehicles
25% on cost

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 credited or charged to profit or loss.

1.5
Impairment of fixed assets

At each reporting period end date, the company 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.

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.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.6
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

P AND A FENCING AND SHEDS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2022
1
Accounting policies
(Continued)
- 12 -

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.7
Cash at bank and in hand

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.

1.8
Financial instruments

The company 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 company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with 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.

Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.

1.9
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 company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

P AND A FENCING AND SHEDS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2022
1
Accounting policies
(Continued)
- 13 -
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 when the company has 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.

1.10
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.

1.11
Retirement benefits

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

1.12
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 profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

1.13
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.

P AND A FENCING AND SHEDS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2022
1
Accounting policies
(Continued)
- 14 -
1.14
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.

2
Judgements and key sources of estimation uncertainty

In the application of the company’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
2022
2021
£
£
Turnover analysed by geographical market
United Kingdom
18,441,351
19,077,852
2022
2021
£
£
Other revenue
Interest income
15
-
Grants received
46,140
300,072
4
Operating profit
2022
2021
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange gains
(151,893)
(322,579)
Government grants
(46,140)
(300,072)
Fees payable to the company's auditor for the audit of the company's financial statements
12,021
11,109
Depreciation of owned tangible fixed assets
180,679
206,333
Operating lease charges
95,788
103,266
P AND A FENCING AND SHEDS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2022
- 15 -
5
Employees

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

2022
2021
Number
Number
140
139

Their aggregate remuneration comprised:

2022
2021
£
£
Wages and salaries
3,423,189
3,273,348
Social security costs
334,925
267,732
Pension costs
268,407
222,927
4,026,521
3,764,007
6
Directors' remuneration
2022
2021
£
£
Remuneration for qualifying services
125,340
265,708
Company pension contributions to defined contribution schemes
140,978
140,573
266,318
406,281
Remuneration disclosed above include the following amounts paid to the highest paid director:
2022
2021
£
£
Remuneration for qualifying services
n/a
136,518

As total directors' remuneration was less than £200,000 in the current year, no disclosure is provided for that year.

7
Interest receivable and similar income
2022
2021
£
£
Interest income
Interest on bank deposits
15
-
0
P AND A FENCING AND SHEDS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2022
- 16 -
8
Interest payable and similar expenses
2022
2021
£
£
Interest on bank overdrafts and loans
56,715
26,897
Interest on invoice finance arrangements
57,551
5,190
Other interest on financial liabilities
11,500
12,000
Interest on finance leases and hire purchase contracts
-
0
4,431
Other interest
(157)
1,964
125,609
50,482
9
Taxation
2022
2021
£
£
Current tax
UK corporation tax on profits for the current period
170,286
428,485
Adjustments in respect of prior periods
(5,046)
(40,603)
Total current tax
165,240
387,882

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
1,041,754
2,319,775
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2021: 19.00%)
197,933
440,757
Tax effect of expenses that are not deductible in determining taxable profit
10,185
(3,956)
Adjustments in respect of prior years
(5,046)
(40,603)
Depreciation on assets not qualifying for tax allowances
(37,832)
(8,316)
Taxation charge for the year
165,240
387,882
10
Dividends
2022
2021
£
£
Final paid
713,500
1,359,500
P AND A FENCING AND SHEDS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2022
- 17 -
11
Tangible fixed assets
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 October 2021
1,806,143
644,996
169,632
137,507
2,758,278
Additions
227,894
107,333
114,375
-
0
449,602
At 30 September 2022
2,034,037
752,329
284,007
137,507
3,207,880
Depreciation and impairment
At 1 October 2021
1,751,069
456,225
91,603
118,717
2,417,614
Depreciation charged in the year
91,665
48,938
32,036
8,040
180,679
At 30 September 2022
1,842,734
505,163
123,639
126,757
2,598,293
Carrying amount
At 30 September 2022
191,303
247,166
160,368
10,750
609,587
At 30 September 2021
55,074
188,771
78,029
18,790
340,664

The net book value of assets held under finance leases or hire purchase contracts included above are plant and equipment £177,477 (2021: £nil), depreciation charge in the year was £39,842 (2021: £nil).

12
Stocks
2022
2021
£
£
Raw materials and consumables
590,896
672,439
Finished goods and goods for resale
2,327,564
1,933,199
2,918,460
2,605,638
13
Debtors
2022
2021
Amounts falling due within one year:
£
£
Trade debtors
3,789,010
2,418,427
Amounts owed by group undertakings
2,097,957
2,597,957
Other debtors
1,064,190
1,561,574
Prepayments and accrued income
136,894
101,978
7,088,051
6,679,936

 

Trade debtors are stated after provision for impairment of £92,423(2021: £106,213).

 

Included in other debtors is £119,097 (2021: £99,862) which is due after 1 year.

P AND A FENCING AND SHEDS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2022
- 18 -
14
Creditors: amounts falling due within one year
2022
2021
Notes
£
£
Bank loans and overdrafts
16
588,926
178,500
Obligations under finance leases
17
22,120
-
0
Trade creditors
896,133
876,747
Corporation tax
164,326
388,899
Other taxation and social security
411,195
694,383
Government grants
19
20,000
22,535
Other creditors
1,438,245
346,296
Accruals and deferred income
656,350
770,596
4,197,295
3,277,956
15
Creditors: amounts falling due after more than one year
2022
2021
Notes
£
£
Bank loans and overdrafts
16
1,535,918
1,710,459
Obligations under finance leases
17
90,000
-
0
Other borrowings
16
400,000
400,000
Government grants
19
133,836
153,836
2,159,754
2,264,295
Amounts included above which fall due after five years are as follows:
Payable by instalments
1,535,918
1,107,721
16
Loans and overdrafts
2022
2021
£
£
Bank loans
1,693,618
1,888,959
Bank overdrafts
431,226
-
0
Other loans
400,000
400,000
2,524,844
2,288,959
Payable within one year
588,926
178,500
Payable after one year
1,935,918
2,110,459

The long-term loans are secured by fixed and floating charges over the company and parent company's assets.

P AND A FENCING AND SHEDS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2022
- 19 -
17
Finance lease obligations
2022
2021
Future minimum lease payments due under finance leases:
£
£
Within one year
22,120
-
0
In two to five years
90,000
-
0
112,120
-
0
18
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Liabilities
Liabilities
2022
2021
Balances:
£
£
Accelerated capital allowances
92,418
92,418
There were no deferred tax movements in the year.
19
Government grants
2022
2021
£
£
Arising from government grants
153,836
176,371
Included in the financial statements as follows:
Current liabilities
20,000
22,535
Non-current liabilities
133,836
153,836
153,836
176,371
20
Retirement benefit schemes
2022
2021
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
268,407
222,927

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

P AND A FENCING AND SHEDS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2022
- 20 -
21
Share capital
2022
2021
2022
2021
Ordinary share capital
Number
Number
£
£
Issued and fully paid
ordinary shares of £1 each
100
100
100
100
22
Operating lease commitments
Lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2022
2021
£
£
Within one year
9,723
-
0
Between two and five years
24,604
72,076
10,231
72,076
23
Related party transactions

Mr S G Morgan is the proprietor of St Andrews Park, a business which owns and rents property. During the year the company paid rent to St Andrews Park amounting to £23,232 (2021: £23,418). At the balance sheet date the amount owed to St Andrews Park amounted to £47,094 (2021: £35,104).

 

Mr S G Morgan maintained a current account with the company during the year which is included within other debtors. The amount owed from Mr S G Morgan at the year end was £739,530 (2021: £262,842)

 

Mr R Hughes maintained a current account with the company during the year which is included within other creditors. The amount owed to Mr R Hughes at the year end was £69,347 (2021: £131,069).

 

Mr A Baker maintained a current account with the company during the year which is included within other creditors. The amount owed to Mr A Baker at the year end was £2,598 (2021: £198 debtor).

 

Included in other debtors due over 1 year is a loan to Bryn Tegid Ltd, a company of which Mr S G Morgan is a director and shareholder. At the balance sheet date the amount due from Bryn Tegid Ltd was £119,097 (2021: £99,862).

 

 

 

24
Controlling Party

The company is under the control of Mr S G Morgan, director, by virtue of his controlling interest in the ordinary share capital of the ultimate parent company, George Morgan Holdings Limited (Company number 09790679).

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