REGISTERED NUMBER: 09800657 (England and Wales) |
PENN GLOBE LIMITED |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE PERIOD |
1 SEPTEMBER 2022 TO 31 MARCH 2023 |
REGISTERED NUMBER: 09800657 (England and Wales) |
PENN GLOBE LIMITED |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE PERIOD |
1 SEPTEMBER 2022 TO 31 MARCH 2023 |
PENN GLOBE LIMITED (REGISTERED NUMBER: 09800657) |
CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE PERIOD 1 SEPTEMBER 2022 TO 31 MARCH 2023 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 4 |
Report of the Independent Auditors | 6 |
Consolidated Income Statement | 10 |
Consolidated Other Comprehensive Income | 11 |
Consolidated Balance Sheet | 12 |
Company Balance Sheet | 13 |
Consolidated Statement of Changes in Equity | 14 |
Company Statement of Changes in Equity | 15 |
Consolidated Cash Flow Statement | 16 |
Notes to the Consolidated Financial Statements | 17 |
PENN GLOBE LIMITED |
COMPANY INFORMATION |
FOR THE PERIOD 1 SEPTEMBER 2022 TO 31 MARCH 2023 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Accountants and |
Statutory Auditors |
Clarke Nicklin House |
Brooks Drive |
Cheadle Royal Business Park |
Cheadle |
Cheshire |
SK8 3TD |
PENN GLOBE LIMITED (REGISTERED NUMBER: 09800657) |
GROUP STRATEGIC REPORT |
FOR THE PERIOD 1 SEPTEMBER 2022 TO 31 MARCH 2023 |
The directors present their strategic report of the company and the group for the period 1 September 2022 to 31 March 2023. |
REVIEW OF BUSINESS |
During the period the Penn Globe Limited group, was acquired by the Indian group Manali Petrochemicals Limited. The directors are excited by the opportunities this presents for the group to expand product offerings and distribution channels. Key staff remain in place and the supply of all finished goods will also continue being produced from our Middlewich site, an increased emphasis will also be put into R&D to enable the business to continue to grow into new market segments. |
Despite global economic uncertainties with increasing inflation, currency fluctuation, the ongoing Ukrainian invasion, along with the after effects of the Coronavirus pandemic, the broad customer base and industry sectors have ensured that Turnover has remained strong and that the Gross Profit margin has increased to 36.0% (2022: £34.4%) in the period. |
The Board is confident that despite the prevailing economic factors, strong demand and turnover levels will continue and that future growth can be achieved with continued improvements in market share and in the range of products being developed and supplied. |
To maintain its product range and competitiveness significant investment continues to be made in research and development each year and this continues to remain a priority for the company and its future plans. |
The Board of directors are pleased with the performance in the year. |
PENN GLOBE LIMITED (REGISTERED NUMBER: 09800657) |
GROUP STRATEGIC REPORT |
FOR THE PERIOD 1 SEPTEMBER 2022 TO 31 MARCH 2023 |
PRINCIPAL RISKS AND UNCERTAINTIES |
The group operates in a global economy, where the effect and uncertainty surrounding a post pandemic world along with the fluctuation of world currencies continue to lead to some potential risks and uncertainties for the future, though these are no different to any other industry operating in the global economy. |
Raw material supply can be challenging, and the group regularly reviews stock levels. Risks associated with raw material supplies are mitigated by continuing to develop alternative products for current raw material usage and ensuring that the group has multiple suppliers for key raw materials. |
Foreign currency exchange is regularly reviewed and monitored. The risk in currency fluctuation is managed monthly and the fact that the group sells and purchases goods in foreign currencies enables us to take advantage of the weak pound for exports with a converse off-set impact on purchases of foreign goods. |
Due to the nature of the group's activities and the broad make up of customers the loss of a significant customer is not a major key risk to the group. However, it is the policy of the directors to maintain good relationships with, and provide high levels of service to, their customers to help reduce any possible exposure. |
The aftermath of Coronavirus pandemic and ongoing Ukraine war has had limited impact on the financial performance of the business as most customers, operating in key industries globally, have traded throughout the period. Demand for the group's products remains very strong with record order books in place going forward into the next financial year. |
Whilst under new corporate ownership, the group retains its core foundations which continues to allow the group to react quickly to any such risks and uncertainties and with the added comfort that it can use the strength of its liquidity and resources to counter any such risks. |
Operating in a fast changing world market is managed by operating in several key industry sectors worldwide such as food, water, waste and recycling. These sectors will always have a demand for the group's products and across a wide geographic area. The group remains flexible to such needs and requirements to enable it to respond quickly where possible. |
ON BEHALF OF THE BOARD: |
PENN GLOBE LIMITED (REGISTERED NUMBER: 09800657) |
REPORT OF THE DIRECTORS |
FOR THE PERIOD 1 SEPTEMBER 2022 TO 31 MARCH 2023 |
The directors present their report with the financial statements of the company and the group for the period 1 September 2022 to 31 March 2023. |
PRINCIPAL ACTIVITY |
The principal activity of the group in the period under review was that of the trading of silicone based products and chemicals. |
DIVIDENDS |
The total distribution of dividends for the period ended 31 March 2023 will be £75,000 (2022: £nil). |
DIRECTORS |
Other changes in directors holding office are as follows: |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Group Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
PENN GLOBE LIMITED (REGISTERED NUMBER: 09800657) |
REPORT OF THE DIRECTORS |
FOR THE PERIOD 1 SEPTEMBER 2022 TO 31 MARCH 2023 |
AUDITORS |
The auditors, Clarke Nicklin LLP, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
PENN GLOBE LIMITED |
Opinion |
We have audited the financial statements of Penn Globe Limited (the 'parent company') and its subsidiaries (the 'group') for the period ended 31 March 2023 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
In our opinion the financial statements: |
- | give a true and fair view of the state of the group's and of the parent company affairs as at 31 March 2023 and of the group's profit for the period then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
Conclusions relating to going concern |
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 the 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 directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether 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 the audit: |
- | the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
PENN GLOBE LIMITED |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the parent company financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page four, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
In preparing the financial statements, the directors are responsible for assessing the group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
PENN GLOBE LIMITED |
Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
Procedures to identify risks: |
- | enquiring of management concerning the group's procedures relating to: identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of noncompliance; detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud; |
- | discussing among the engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud. As part of this discussion, we identified potential for fraud in the following areas: timing of recognition of sales and purchases and their related stock movements, posting of unusual journals; and |
- | obtaining an understanding of the legal and regulatory frameworks that the group operates in, focusing on those laws and regulations that had a direct effect on the financial statements or that had a fundamental effect on the operations of the group. The key laws and regulations we considered in this context included UK Companies Act, employment law, health and safety, pensions legislation and tax legislation. |
The procedures to respond to risks identified included: |
- | reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with relevant laws and regulations discussed above; |
- | enquiring of management, concerning actual and potential litigation and claims; |
- | performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud; |
- | reviewing correspondence with HMRC; |
- | testing the timing and matching of income and expense transactions relating to stock movements either side of the year end; and |
- | in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business. |
There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulation that are not closely related to events and transactions reflected in the financial statements. The risk of not detecting a material misstatement due to fraud is higher than the risk of not detection one resulting from an error, as fraud may involve deliberate concealment, by for example, forgery or intentional misrepresentation, or through collusion. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
PENN GLOBE LIMITED |
Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
for and on behalf of |
Chartered Accountants and |
Statutory Auditors |
Clarke Nicklin House |
Brooks Drive |
Cheadle Royal Business Park |
Cheadle |
Cheshire |
SK8 3TD |
PENN GLOBE LIMITED (REGISTERED NUMBER: 09800657) |
CONSOLIDATED INCOME STATEMENT |
FOR THE PERIOD 1 SEPTEMBER 2022 TO 31 MARCH 2023 |
Period | Year ended |
1.9.22 to 31.3.23 | 31.8.22 |
Notes | £ | £ | £ | £ |
TURNOVER | 3 | 8,611,311 | 15,855,851 |
Cost of sales | 5,508,643 | 10,401,853 |
GROSS PROFIT | 3,102,668 | 5,453,998 |
Distribution costs | 296,773 | 639,617 |
Administrative expenses | 1,574,302 | 1,850,184 |
1,871,075 | 2,489,801 |
1,231,593 | 2,964,197 |
Other operating income | 200 | 76 |
OPERATING PROFIT | 5 | 1,231,793 | 2,964,273 |
Interest receivable and similar income | 97 | 53,503 |
1,231,890 | 3,017,776 |
Interest payable and similar expenses | 6 | 27,763 | 24,833 |
PROFIT BEFORE TAXATION | 1,204,127 | 2,992,943 |
Tax on profit | 7 | 271,096 | 535,895 |
PROFIT FOR THE FINANCIAL PERIOD |
Profit attributable to: |
Owners of the parent | 933,031 | 2,457,048 |
PENN GLOBE LIMITED (REGISTERED NUMBER: 09800657) |
CONSOLIDATED OTHER COMPREHENSIVE INCOME |
FOR THE PERIOD 1 SEPTEMBER 2022 TO 31 MARCH 2023 |
Period |
1.9.22 |
to | Year ended |
31.3.23 | 31.8.22 |
Notes | £ | £ |
PROFIT FOR THE PERIOD | 933,031 | 2,457,048 |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD |
933,031 |
2,457,048 |
Total comprehensive income attributable to: |
Owners of the parent | 933,031 | 2,457,048 |
PENN GLOBE LIMITED (REGISTERED NUMBER: 09800657) |
CONSOLIDATED BALANCE SHEET |
31 MARCH 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 10 | 349,524 | 425,308 |
Tangible assets | 11 | 97,238 | 115,055 |
Investments | 12 | - | - |
446,762 | 540,363 |
CURRENT ASSETS |
Stocks | 13 | 1,584,100 | 2,291,716 |
Debtors | 14 | 6,275,215 | 6,746,020 |
Cash at bank | 425,084 | 90,105 |
8,284,399 | 9,127,841 |
CREDITORS |
Amounts falling due within one year | 15 | 1,625,805 | 3,420,879 |
NET CURRENT ASSETS | 6,658,594 | 5,706,962 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
7,105,356 |
6,247,325 |
CAPITAL AND RESERVES |
Called up share capital | 19 | 1,126 | 1,126 |
Retained earnings | 20 | 7,104,230 | 6,246,199 |
SHAREHOLDERS' FUNDS | 7,105,356 | 6,247,325 |
The financial statements were approved by the Board of Directors and authorised for issue on 10 May 2023 and were signed on its behalf by: |
M J Humphries - Director |
PENN GLOBE LIMITED (REGISTERED NUMBER: 09800657) |
COMPANY BALANCE SHEET |
31 MARCH 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 10 |
Tangible assets | 11 |
Investments | 12 |
CURRENT ASSETS |
Debtors | 14 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 15 |
NET CURRENT ASSETS/(LIABILITIES) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CAPITAL AND RESERVES |
Called up share capital | 19 |
Retained earnings | 20 |
SHAREHOLDERS' FUNDS |
Company's profit/(loss) for the financial year | 554,259 | (8,917 | ) |
The financial statements were approved by the Board of Directors and authorised for issue on |
PENN GLOBE LIMITED (REGISTERED NUMBER: 09800657) |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
FOR THE PERIOD 1 SEPTEMBER 2022 TO 31 MARCH 2023 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 September 2021 | 1,050 | 3,789,151 | 3,790,201 |
Changes in equity |
Issue of share capital | 76 | - | 76 |
Total comprehensive income | - | 2,457,048 | 2,457,048 |
Balance at 31 August 2022 | 1,126 | 6,246,199 | 6,247,325 |
Changes in equity |
Dividends | - | (75,000 | ) | (75,000 | ) |
Total comprehensive income | - | 933,031 | 933,031 |
Balance at 31 March 2023 | 1,126 | 7,104,230 | 7,105,356 |
PENN GLOBE LIMITED (REGISTERED NUMBER: 09800657) |
COMPANY STATEMENT OF CHANGES IN EQUITY |
FOR THE PERIOD 1 SEPTEMBER 2022 TO 31 MARCH 2023 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 September 2021 |
Changes in equity |
Issue of share capital | - |
Total comprehensive income | - | ( |
) | ( |
) |
Balance at 31 August 2022 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 31 March 2023 |
PENN GLOBE LIMITED (REGISTERED NUMBER: 09800657) |
CONSOLIDATED CASH FLOW STATEMENT |
FOR THE PERIOD 1 SEPTEMBER 2022 TO 31 MARCH 2023 |
Period |
1.9.22 |
to | Year ended |
31.3.23 | 31.8.22 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 24 | (2,122,128 | ) | 1,720,837 |
Interest paid | (27,763 | ) | (20,123 | ) |
Interest element of hire purchase or finance lease rental payments paid |
- |
(4,710 |
) |
Tax paid | (455,530 | ) | (448,690 | ) |
Net cash from operating activities | (2,605,421 | ) | 1,247,314 |
Cash flows from investing activities |
Purchase of intangible fixed assets | (3,321 | ) | - |
Purchase of tangible fixed assets | (8,689 | ) | (34,437 | ) |
Sale of tangible fixed assets | - | 77,250 |
Purchase of subsidiary | - | (17,989 | ) |
Interest received | 97 | 53,503 |
Net cash from investing activities | (11,913 | ) | 78,327 |
Cash flows from financing activities |
Capital repayments in year | - | (64,027 | ) |
Amount introduced by directors | 3,027,313 | 8,744 |
Amount withdrawn by directors | - | (1,734,902 | ) |
Equity dividends paid | (75,000 | ) | - |
Net cash from financing activities | 2,952,313 | (1,790,185 | ) |
Increase/(decrease) in cash and cash equivalents | 334,979 | (464,544 | ) |
Cash and cash equivalents at beginning of period |
25 |
90,105 |
554,649 |
Cash and cash equivalents at end of period |
25 |
425,084 |
90,105 |
PENN GLOBE LIMITED (REGISTERED NUMBER: 09800657) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE PERIOD 1 SEPTEMBER 2022 TO 31 MARCH 2023 |
1. | STATUTORY INFORMATION |
Penn Globe Limited ("the Company") is a limited company incorporated in the United Kingdom. The address of its registered office and principal place of business is Unit 6, Aston Way, Midpoint 18 Business Park, Middlewich, Cheshire, CW10 0HS. |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
The financial statements are presented in Sterling (£). |
Going concern |
The directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. The directors have reached this conclusion giving due consideration to the projected future performance of the group and any potential risk that might impact the group's ability to meet its required solvency levels. For this reason, they continue to adopt the going concern basis in preparing the financial statements. |
Basis of consolidation |
The consolidated income statement and balance sheet include the financial statements of the company and its subsidiary undertakings. The results of subsidiaries acquired or sold during the period are included in the consolidated income statement from, or up to, the date control passes. Intra-group transactions are eliminated fully on consolidation. |
On acquisition of a subsidiary, the subsidiary's assets and liabilities that exist at the date of acquisition are recorded at their fair values reflecting their condition at that date. All changes to those assets and liabilities, and the resulting gains and losses that arise after the group has gained control of the subsidiary are charged to the post acquisition income statement. |
Significant judgements and 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 if revision only affects that period, or in the period of the revision and future periods if the revision affects both current and future periods. |
The following judgements have had the most significant effect on amounts recognised in the financial statements; |
Depreciation - The useful life of fixed assets can vary significantly. Estimates are based on historic experience and current expectations of useful life. The size of prior year gains and losses on disposal are also factored in to estimates. |
Bad debts - The directors regularly review debts and provide for those which are doubtful. |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
Goodwill |
Negative goodwill |
Negative goodwill relates to the amount paid in connection with the acquisition of a business in 2022. The element relating to the monetary assets was written off in the year of acquisition. Negative goodwill on the remaining non monetary assets are being amortised over periods in which the assets are recovered. |
PENN GLOBE LIMITED (REGISTERED NUMBER: 09800657) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE PERIOD 1 SEPTEMBER 2022 TO 31 MARCH 2023 |
2. | ACCOUNTING POLICIES - continued |
Computer software |
Computer software relates to development expenditure on an IT and accounting system. It is recognised as an intangible asset when the company can demonstrate: |
- The technical feasibility of completing the intangible asset so that it will be available for use or sale |
- Its intention to complete and its ability to use or sell the asset |
- How the asset will generate future economic benefits |
- The availability of resources to complete the asset |
- The ability to measure reliably the expenditure during development |
Following initial recognition of the development expenditure as an asset, the asset is carried at cost less any accumulated amortisation and impairment losses. Amortisation of the asset begins when development is complete and the asset is available for use. It is amortised over its useful life of three years. |
Tangible fixed assets |
Plant and machinery | - |
Fixtures and fittings | - |
Computer equipment | - |
At each reporting date fixed assets are reviewed to determine whether there is any indication that those assets have suffered an impairment loss. If there is an indication of possible impairment, the recoverable amount of any affected asset is estimated and compared with its carrying amount. If estimated recoverable amount is lower, the carrying amount is reduced to its estimated recoverable amount, and an impairment loss is recognised immediately in the Income Statement. |
If an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but not in excess of the amount that would have been determined had no impairment loss been recognised for the asset in the prior years. A reversal of an impairment loss is recognised immediately in the Income Statement. |
Stocks |
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
Taxation |
Taxation for the period comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the period end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
PENN GLOBE LIMITED (REGISTERED NUMBER: 09800657) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE PERIOD 1 SEPTEMBER 2022 TO 31 MARCH 2023 |
2. | ACCOUNTING POLICIES - continued |
Research and development |
Expenditure on research and development is written off in the year in which it is incurred, except where the development element qualifies as an intangible asset, in which case it is capitalised. |
Foreign currencies |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result. |
Hire purchase and leasing commitments |
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter. |
The interest element of these obligations is charged to the Income Statement over the relevant period. The capital element of the future payments is treated as a liability. |
Rentals paid under operating leases are charged to the Income Statement on a straight line basis over the period of the lease. |
Pension costs and other post-retirement benefits |
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to the Income Statement in the period to which they relate. |
Invoice discounting |
The group uses an invoice discounting facility and has adopted separate presentation whereby gross debts are included as an asset and the amount due to the finance company is included within other creditors. The interest and charges are recognised as they accrue and are included in the Income Statement. |
Debtors |
Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment. |
Creditors |
Short term creditors are measured at transaction price. Other financial liabilities are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method. |
3. | TURNOVER |
The turnover and profit before taxation are attributable to the one principal activity of the group. |
An analysis of turnover by geographical market is given below: |
Period |
1.9.22 |
to | Year ended |
31.3.23 | 31.8.22 |
£ | £ |
United Kingdom | 5,180,863 | 9,731,603 |
Europe | 2,062,994 | 3,634,993 |
Rest of the world | 1,367,454 | 2,489,255 |
8,611,311 | 15,855,851 |
PENN GLOBE LIMITED (REGISTERED NUMBER: 09800657) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE PERIOD 1 SEPTEMBER 2022 TO 31 MARCH 2023 |
4. | EMPLOYEES AND DIRECTORS |
Period |
1.9.22 |
to | Year ended |
31.3.23 | 31.8.22 |
£ | £ |
Wages and salaries | 623,905 | 993,768 |
Social security costs | 81,574 | 182,638 |
Other pension costs | 39,257 | 114,137 |
744,736 | 1,290,543 |
The average number of employees during the period was as follows: |
Period |
1.9.22 |
to | Year ended |
31.3.23 | 31.8.22 |
Directors | 6 | 6 |
Administration | 9 | 10 |
Warehouse | 13 | 13 |
The average number of employees by undertakings that were proportionately consolidated during the period was NIL (2022 - NIL). |
Period |
1.9.22 |
to | Year ended |
31.3.23 | 31.8.22 |
£ | £ |
Directors' remuneration | 127,227 | 300,747 |
Directors' pension contributions to money purchase schemes | 3,499 | 40,000 |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes | 3 | 4 |
PENN GLOBE LIMITED (REGISTERED NUMBER: 09800657) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE PERIOD 1 SEPTEMBER 2022 TO 31 MARCH 2023 |
5. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
Period |
1.9.22 |
to | Year ended |
31.3.23 | 31.8.22 |
£ | £ |
Hire of plant and machinery | 24,197 | 42,804 |
Other operating leases | 177,688 | 340,226 |
Depreciation - owned assets | 26,506 | 48,249 |
Depreciation - assets on hire purchase contracts or finance leases | - | 11,250 |
Profit on disposal of fixed assets | - | (34,321 | ) |
Goodwill amortisation | 75,974 | 130,241 |
Negative goodwill amortisation | - | (356,259 | ) |
Computer software amortisation | 3,131 | 2,024 |
Auditors' remuneration - audit | 27,000 | 15,850 |
Foreign exchange differences | 8,420 | (53,123 | ) |
Related party loan write off | 157,926 | - |
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
Period |
1.9.22 |
to | Year ended |
31.3.23 | 31.8.22 |
£ | £ |
Bank interest | 1,026 | 492 |
Invoice discounting interest | 16,865 | 19,631 |
Other interest | 9,872 | - |
Hire purchase | - | 4,710 |
27,763 | 24,833 |
7. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the period was as follows: |
Period |
1.9.22 |
to | Year ended |
31.3.23 | 31.8.22 |
£ | £ |
Current tax: |
UK corporation tax | 273,890 | 539,713 |
Deferred tax | (2,794 | ) | (3,818 | ) |
Tax on profit | 271,096 | 535,895 |
UK corporation tax has been charged at 19 % (2022 - 19 %). |
PENN GLOBE LIMITED (REGISTERED NUMBER: 09800657) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE PERIOD 1 SEPTEMBER 2022 TO 31 MARCH 2023 |
7. | TAXATION - continued |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the period is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
Period |
1.9.22 |
to | Year ended |
31.3.23 | 31.8.22 |
£ | £ |
Profit before tax | 1,204,127 | 2,992,943 |
Profit multiplied by the standard rate of corporation tax in the UK of 19 % (2022 - 19 %) |
228,784 |
568,659 |
Effects of: |
Expenses not deductible for tax purposes | 41,688 | 34,653 |
Capital allowances in excess of depreciation | (289 | ) | (1,292 | ) |
Research and development enhancement | (13,522 | ) | (23,182 | ) |
Goodwill amortisation | 14,435 | 24,746 |
Negative goodwill amortisation | - | (67,689 | ) |
Total tax charge | 271,096 | 535,895 |
8. | INDIVIDUAL INCOME STATEMENT |
As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
9. | DIVIDENDS |
Period |
1.9.22 |
to | Year ended |
31.3.23 | 31.8.22 |
£ | £ |
Ordinary shares of £0.10 each |
Interim | 75,000 | - |
PENN GLOBE LIMITED (REGISTERED NUMBER: 09800657) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE PERIOD 1 SEPTEMBER 2022 TO 31 MARCH 2023 |
10. | INTANGIBLE FIXED ASSETS |
Group |
Negative | Computer |
Goodwill | goodwill | software | Totals |
£ | £ | £ | £ |
COST |
At 1 September 2022 | 1,302,412 | (356,259 | ) | 80,290 | 1,026,443 |
Additions | - | - | 3,321 | 3,321 |
At 31 March 2023 | 1,302,412 | (356,259 | ) | 83,611 | 1,029,764 |
AMORTISATION |
At 1 September 2022 | 879,128 | (356,259 | ) | 78,266 | 601,135 |
Amortisation for period | 75,974 | - | 3,131 | 79,105 |
At 31 March 2023 | 955,102 | (356,259 | ) | 81,397 | 680,240 |
NET BOOK VALUE |
At 31 March 2023 | 347,310 | - | 2,214 | 349,524 |
At 31 August 2022 | 423,284 | - | 2,024 | 425,308 |
11. | TANGIBLE FIXED ASSETS |
Group |
Fixtures |
Plant and | and | Computer |
machinery | fittings | equipment | Totals |
£ | £ | £ | £ |
COST |
At 1 September 2022 | 1,365,945 | 120,345 | 119,830 | 1,606,120 |
Additions | 3,934 | 1,120 | 3,635 | 8,689 |
At 31 March 2023 | 1,369,879 | 121,465 | 123,465 | 1,614,809 |
DEPRECIATION |
At 1 September 2022 | 1,272,389 | 103,752 | 114,924 | 1,491,065 |
Charge for period | 20,081 | 3,839 | 2,586 | 26,506 |
At 31 March 2023 | 1,292,470 | 107,591 | 117,510 | 1,517,571 |
NET BOOK VALUE |
At 31 March 2023 | 77,409 | 13,874 | 5,955 | 97,238 |
At 31 August 2022 | 93,556 | 16,593 | 4,906 | 115,055 |
PENN GLOBE LIMITED (REGISTERED NUMBER: 09800657) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE PERIOD 1 SEPTEMBER 2022 TO 31 MARCH 2023 |
12. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1 September 2022 |
and 31 March 2023 |
NET BOOK VALUE |
At 31 March 2023 |
At 31 August 2022 |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiaries |
Registered office: Unit 6, Aston Way, Midpoint 18 Business Park, Middlewich, Cheshire, CW10 0HS |
Nature of business: |
% |
Class of shares: | holding |
Registered office: Unit 6, Aston Way, Midpoint 18 Business Park, Middlewich, Cheshire, CW10 0HS |
Nature of business: |
% |
Class of shares: | holding |
The company ceased trading on 31 March 2023, with trade and assets transferred to Penn-White Limited. |
13. | STOCKS |
Group |
2023 | 2022 |
£ | £ |
Raw materials | 1,206,214 | 1,717,882 |
Finished goods | 377,886 | 573,834 |
1,584,100 | 2,291,716 |
PENN GLOBE LIMITED (REGISTERED NUMBER: 09800657) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE PERIOD 1 SEPTEMBER 2022 TO 31 MARCH 2023 |
14. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Trade debtors | 2,575,397 | 2,987,363 |
Amounts owed by group undertakings | 2,925,987 | - |
Other debtors | 150,813 | 4,446 |
Directors' current accounts | - | 3,027,313 | - | - |
Corporation tax | 453,337 | 453,337 |
VAT | - | 148,543 |
Deferred tax asset | 14,395 | 11,601 | - | - |
Prepayments and accrued income | 155,286 | 113,417 |
6,275,215 | 6,746,020 |
Deferred tax asset |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Deferred tax | 14,395 | 11,601 | - | - |
15. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Trade creditors | 623,475 | 728,055 |
Amounts owed to group undertakings | - | - |
Corporation tax | 811,943 | 993,583 |
Social security and other taxes | 34,870 | 25,645 |
VAT | 8,436 | - | - | - |
Other creditors | - | 1,368,130 |
Accruals and deferred income | 147,081 | 305,466 |
1,625,805 | 3,420,879 |
16. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Non-cancellable operating | leases |
2023 | 2022 |
£ | £ |
Within one year | 306,290 | 306,290 |
Between one and five years | 963,405 | 883,186 |
1,269,695 | 1,189,476 |
PENN GLOBE LIMITED (REGISTERED NUMBER: 09800657) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE PERIOD 1 SEPTEMBER 2022 TO 31 MARCH 2023 |
17. | SECURED DEBTS |
The following secured debts are included within creditors: |
Group |
2023 | 2022 |
£ | £ |
Invoice discounting | - | 1,372,110 |
The bank has a fixed and floating charge over group assets. Invoice discounting liabilities are secured on the underlying trade debtors. |
18. | DEFERRED TAX |
Group |
£ |
Balance at 1 September 2022 | (11,601 | ) |
Credit to Income Statement during period | (2,794 | ) |
Balance at 31 March 2023 | (14,395 | ) |
The provision for deferred taxation is made up as follows |
2023 | 2022 |
£ | £ |
Accelerated capital allowances | (14,395 | ) | (11,601 | ) |
Other timing differences | - | - |
(14,395 | ) | (11,601 | ) |
19. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
11,260 | Ordinary | £0.10 | 1,126 | 269 |
- | A Ordinary | £0.10 | - | 52 |
- | B Ordinary | £0.10 | - | 73 |
- | C Ordinary | £0.10 | - | 164 |
- | D Ordinary | £0.10 | - | 164 |
- | E Ordinary | £0.10 | - | 164 |
- | F Ordinary | £0.10 | - | 164 |
1,126 | 1,050 |
During the year, 1,045 A Ordinary, 737 B Ordinary, 1,877 C Ordinary, 1,637 D Ordinary, 1,637 E Ordinary, and 1,637 F Ordinary 10p shares were redesignated as 8,570 Ordinary 10p shares. |
All shares are now in the same class and carry dividend, voting and distribution rights. |
PENN GLOBE LIMITED (REGISTERED NUMBER: 09800657) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE PERIOD 1 SEPTEMBER 2022 TO 31 MARCH 2023 |
20. | RESERVES |
Group |
Retained |
earnings |
£ |
At 1 September 2022 | 6,246,199 |
Profit for the period | 933,031 |
Dividends | (75,000 | ) |
At 31 March 2023 | 7,104,230 |
Company |
Retained |
earnings |
£ |
At 1 September 2022 |
Profit for the period |
Dividends | ( |
) |
At 31 March 2023 |
21. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES |
The following advances and credits to directors subsisted during the period ended 31 March 2023 and the year ended 31 August 2022: |
2023 | 2022 |
£ | £ |
J J Whitehead |
Balance outstanding at start of period | 478,954 | 186,932 |
Amounts advanced | 63,451 | 292,022 |
Amounts repaid | (517,315 | ) | - |
Amounts written off | (25,090 | ) | - |
Amounts waived | - | - |
Balance outstanding at end of period | - | 478,954 |
Dr M J Humphries |
Balance outstanding at start of period | 695,137 | 294,728 |
Amounts advanced | 63,727 | 400,409 |
Amounts repaid | (722,683 | ) | - |
Amounts written off | (36,181 | ) | - |
Amounts waived | - | - |
Balance outstanding at end of period | - | 695,137 |
PENN GLOBE LIMITED (REGISTERED NUMBER: 09800657) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE PERIOD 1 SEPTEMBER 2022 TO 31 MARCH 2023 |
21. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES - continued |
J J Whitehead |
Balance outstanding at start of period | 621,746 | 274,171 |
Amounts advanced | 11,400 | 347,575 |
Amounts repaid | (600,723 | ) | - |
Amounts written off | (32,423 | ) | - |
Amounts waived | - | - |
Balance outstanding at end of period | - | 621,746 |
S J Whitehead |
Balance outstanding at start of period | 620,068 | 272,521 |
Amounts advanced | 11,400 | 347,547 |
Amounts repaid | (599,131 | ) | - |
Amounts written off | (32,337 | ) | - |
Amounts waived | - | - |
Balance outstanding at end of period | - | 620,068 |
Mrs A H Hooley |
Balance outstanding at start of period | 611,409 | 264,060 |
Amounts advanced | 11,400 | 347,349 |
Amounts repaid | (590,915 | ) | - |
Amounts written off | (31,894 | ) | - |
Amounts waived | - | - |
Balance outstanding at end of period | - | 611,409 |
R J Richardson |
Balance outstanding at start of period | - | 8,744 |
Amounts repaid | - | (8,744 | ) |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of period | - | - |
Interest is charged monthly on the directors' loan accounts at HMRC's official rate, on balances above £10,000. Loans are repayable on demand. |
22. | RELATED PARTY DISCLOSURES |
Transactions with other group undertakings, where they are wholly owned by the Penn Globe Limited group, are not disclosed. |
23. | ULTIMATE CONTROLLING PARTY |
The parent undertaking of the smallest and largest group for which consolidated accounts are prepared is Manali Petrochemicals Limited, incorporated in India. Consolidated accounts are available from the registered office: Spic House, 88 Mount Road, Guindy, Chennai, India, 600 032. |
In the opinion of the directors, there is no ultimate controlling party. |
PENN GLOBE LIMITED (REGISTERED NUMBER: 09800657) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE PERIOD 1 SEPTEMBER 2022 TO 31 MARCH 2023 |
24. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
Period |
1.9.22 |
to | Year ended |
31.3.23 | 31.8.22 |
£ | £ |
Profit before taxation | 1,204,127 | 2,992,943 |
Depreciation charges | 105,612 | (164,495 | ) |
Profit on disposal of fixed assets | - | (34,321 | ) |
Finance costs | 27,763 | 24,833 |
Finance income | (97 | ) | (53,503 | ) |
1,337,405 | 2,765,457 |
Decrease/(increase) in stocks | 707,616 | (913,766 | ) |
Increase in trade and other debtors | (2,553,714 | ) | (516,100 | ) |
(Decrease)/increase in trade and other creditors | (1,613,435 | ) | 385,246 |
Cash generated from operations | (2,122,128 | ) | 1,720,837 |
25. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Period ended 31 March 2023 |
31.3.23 | 1.9.22 |
£ | £ |
Cash and cash equivalents | 425,084 | 90,105 |
Year ended 31 August 2022 |
31.8.22 | 1.9.21 |
£ | £ |
Cash and cash equivalents | 90,105 | 554,649 |
26. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1.9.22 | Cash flow | At 31.3.23 |
£ | £ | £ |
Net cash |
Cash at bank | 90,105 | 334,979 | 425,084 |
90,105 | 334,979 | 425,084 |
Total | 90,105 | 334,979 | 425,084 |