Registered number:
FOR THE YEAR ENDED 31 DECEMBER 2022
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PCE GROUP LIMITED
COMPANY INFORMATION
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PCE GROUP LIMITED
CONTENTS
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PCE GROUP LIMITED
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2022
The directors present their strategic report, together with financial statements for the year ending 31st December 2022.
The principal activity of the group is the design & manufacture of automation equipment to world leading standards. The PCE group operates within the market sectors of Ocular, Life Sciences, Consumer Goods, Packaging & Build to Print.
During 2021 PCE launched Project Shooting Star, a 3-year investment program of infrastructure and strategic policies. Phase 1 of this project is complete (as reported in the last published accounts) with Phase 2 to further expand the premises in Beccles, Suffolk by the building a new 3500M² state of the art R&D, manufacturing, and assembly facility. Due to lengthy planning consultations an interim phase was introduced in Q2 2022 to acquire existing industrial units on the Beccles Site. These units offer an increase in assembly floor space of 2500M² allowing PCE to meet the demands of our customers and reducing the pressure on the new build program. Contracts were signed for the additional units in December 2022 and the purchase was completed in Q1 2023. The renovation program will see the increased assembly area operational by Q3 2023. Cyber security is becoming increasingly important in every aspect of modern living. PCE has always taken our responsibility very seriously but to guarantee our systems were secure we embarked on a program in Q3 2022 to obtain the Cyber Essentials Certificate of Assurance. This body of work was not confined to just the IT department and necessitated many PCE departments updating older software packages and operating systems. The collective hard work and additional training resulted in certification being received early in Q1 2023 giving our customers, suppliers, and employees alike the added confidence their data is safe at PCE. As the effects of Covid-19 eased for global travel in 2022, business activities returned near to their pre-pandemic levels. However, new business challenges emerged as supply chain shortages hindered the ability to complete existing orders & delayed production. This impact on factory utilisation was reflected in a downturn in revenue and the reduction in gross margin, but due to the professionalism and agility of the PCE team these global conditions were efficiently managed, and effects minimised. Customer feedback and a healthy sales pipeline supports this business performance and a return to high growth and increased profitability is expected in 2023 / 2024. In 2022, PCE made an application for the Queens Award for Enterprise within the field of innovation to hopefully complement our award for International Trade in 2022. We are pleased to announce that PCE was recognised for the award which became the inaugural Kings Award for Enterprise for our contribution to innovation within the Ocular sector. PCE has gained further global recognition within the key markets of Ocular and Life Sciences. Enquiries from these sectors are at an all-time high as PCE continues to build upon these awards for excellence with a healthy order book and sales pipeline.
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PCE GROUP LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
The Board of Directors review all principal risks to the business at quarterly board meetings. The management continually monitor and challenge the group's control measures and procedures to ensure all risks to the company and its employees are minimised.
Economic Risk Any potential impact of Brexit, Covid-19 & Supply Chain shortages has been successfully managed within the current economic period. There has been no major disruption to operations or deliveries as we continue to work closely with our key suppliers through strategic alliance partnerships. Continued supply and demand of components alongside inflationary pressures are considered the main current economic risk. These factors are continually monitored by our specialist procurement and project management team, with weekly reports to the Directors. As a strategic policy, export revenue continues to grow as an overall percentage of PCE’s business. This is seen as essential to meet the expansion of PCE’s business both domestically and on a global scale. Exposure to any currency fluctuations is systematically reviewed with forward contracts and controlled quotation validity periods to ensure any risk is minimised. As energy prices continue to rise PCE has secured fixed contracts on electricity until 2024. This coupled with the benefit of solar panels on the buildings in Beccles, Suffolk help mitigate the economic risk. Financial Risks Financial risks arise from payment terms granted to customers globally against individual projects. Standard payment terms are staged against agreed milestones to ensure the burn rate for investment is limited and cash flow is maintained. Customers of PCE are blue-chip companies and so whilst the risk is considered low, regular credit checks are undertaken. Governance directives carried out by our dedicated project managers ensure that exposure to financial risk is continually monitored and reported to the Directors. A written commitment from the company’s bankers for guaranteed investment if required underpins the continued strong and healthy company financial standing. Competition Research & Development is a vital and key component ensuring the business remains at the forefront of technological advances. Proof of Concept (PoC) projects were undertaken in 2021 for new and existing customers and a key component in enforcing our competitive advantage. Personnel The skills and flexibility of the PCE employees is a crucial factor to the group’s continued success. The directors partake in a monthly companywide meeting to share business news and answer any queries within the PCE team. Employee council meetings allow two-way communication to management and ensures the direction & culture of the business is a shared responsibility. PCE witnessed an increase in staff turnover of 4.8% year on year although this is still well below the industry and national average. Leaver interviews are monitored by the Managing Director to ensure there are no trends or reoccurring issues that need to be addressed. Future developments and Going Concern Global events and economic trends are continually reviewed by the directors relating to supply chain, cost of living & employee welfare. We maintain regular dialogue with all our customers and the underlying requirement to automate their processes remains strong. PCE has continued with its Shooting Star program with infrastructure projects, staff recruitment
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PCE GROUP LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
and training as we predict an influx of projects during 2023 & 2024.
The invasion of Ukraine by Russia is devastating and the thoughts of PCE and all our staff goes out to those who are affected. Whilst there are currently no live projects or enquiries to Russia, we will uphold all sanctions enforced by the UK government. Supply chain shortages have been further compounded by world events and a contributory factor to growing inflation. PCE continually monitors the remuneration to our valued employees alongside the commercial viability of our products and services. PCE remains in a financially strong cash position and returns profitable figures despite difficult trading conditions. With no major borrowing and a firm commitment from our financial banking partners the directors are committed to the business as a going concern.
The directors monitor KPIs via monthly management accounts including Sales Enquiries, Revenue, 3 Month Rolling Average of Incoming Orders, Value to be Invoiced, EBITDA.
Health & Safety records are analysed at all Board Meetings. The Health & Safety of employees, visitors and contractors is constantly challenged as an ongoing business culture. This is recognised by the companies continued ISO9001 accreditation.
This report was approved by the board and signed on its behalf.
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PCE GROUP LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2022
The Directors present their report and the financial statements for the year ended 31 December 2022.
The Directors are responsible for preparing the Group Strategic Report, the Directors' Report and the consolidated 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 for the Group's financial statements and then apply them consistently;
∙make judgments 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 Group will continue in business.
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 the Group and to 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.
The profit for the year, after taxation and minority interests, amounted to £1,139,949 (2021 - £399,010).
The directors recommended payment of dividends totalling £231,000 (2021 - £85,000) during the year.
The Directors who served during the year were:
Information on exposure to risk, future developments and going concern are covered in the Strategic Report.
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PCE GROUP LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
On 15 March 2023, the Company purchased additional freehold property for £825k. A charge was subsequently registered against this property as part of a commercial bank loan arrangement.
On 12 September 2023, the Group acquired the entire share capital of Adapt Engineering Limited, a company limited by shares incorporated in Ireland, for £500k. The company's registered address is 31 Oakley Road, Dublin 6., Ranelagh, Dublin, D06TH79.
The auditors, Larking Gowen LLP, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board and signed on its behalf.
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PCE GROUP LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PCE GROUP LIMITED
We have audited the financial statements of PCE Group Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 December 2022, which comprise the Group Statement of Comprehensive Income, the Group and Company Statements of Financial Position, the Group Statement of Cash Flows, the Group and Company Statement of Changes in Equity and the related notes, 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).
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 United Kingdom, including the Financial Reporting Council'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.
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 or 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.
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PCE GROUP LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PCE GROUP LIMITED (CONTINUED)
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' 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.
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Group Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the Group Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.
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 Directors' Report.
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PCE GROUP LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PCE GROUP LIMITED (CONTINUED)
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 Auditors' 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 Group 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:
Due to the field in which the Company operates, we identified the areas most likely to have a direct material impact on the financial statements as UK accounting standards and the Companies Act 2006; health and safety; and employment law. Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, included the following:
∙Enquiries with management about any known or suspected instances of non-compliance with laws and regulations, accidents in the workplace and fraud;
∙Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;
∙Challenging assumptions and judgements made by management in their significant accounting estimates;
∙Auditing the risk of management override of controls, including through testing journal entries and adjustments for appropriateness and evaluating the business rationale of significant transactions outside the normal course of business; and
∙Reviewing controls surrounding payments to suppliers and employees, and testing a sample of purchases and payments to ensure these are bona fide business expenses.
There are inherent limitations in our audit procedures described above. The more removed that laws are from financial transactions, the less likely it is that we would become aware of such non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or 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 Auditors' Report.
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PCE GROUP LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PCE GROUP LIMITED (CONTINUED)
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 Auditors' 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.
for and on behalf of
Chartered Accountants
Statutory Auditors
1st Floor Prospect House
Rouen road
NR1 1RE
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PCE GROUP LIMITED
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2022
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PCE GROUP LIMITED
REGISTERED NUMBER: 09137040
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2022
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 18 to 37 form part of these financial statements.
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PCE GROUP LIMITED
REGISTERED NUMBER: 09137040
COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2022
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 18 to 37 form part of these financial statements.
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CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2022
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PCE GROUP LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2022
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PCE GROUP LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2022
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PCE GROUP LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
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PCE GROUP LIMITED
CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 DECEMBER 2022
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PCE GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
PCE Group Limited is a private company limited by shares, registered in England and Wales. The address of the registered office is Ellough Road, Ellough, Beccles, Suffolk, NR34 7TE.
2.Accounting policies
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgment in applying the Group's accounting policies (see note 3).
The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements.
The following principal accounting policies have been applied:
The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Statement of financial position, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated statement of comprehensive income from the date on which control is obtained. They are deconsolidated from the date control ceases.
Global events and economic trends are continually reviewed by the directors relating to supply chain, cost of living & employee welfare.
We maintain regular dialogue with all our customers and the underlying requirement to automate their processes remains strong. PCE has continued with its Shooting Star program with infrastructure projects, staff recruitment and training as we predict an influx of projects during 2023 & 2024. PCE remains in a financially strong cash position and returns profitable figures despite difficult trading conditions. With no major borrowing and a firm commitment from our financial banking partners the directors are committed to the business as a going concern.
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PCE GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
2.Accounting policies (continued)
Functional and presentation currency
Transactions and balances
In the case of long-term contract work, turnover reflects the contract activity of the year once contractual obligations have been met and is based on the directors' valuation of work carried out on each contract. Turnover reflects costs incurred to date in establishing and managing the contracts plus the directors' best estimate of attributable profits which include a proportion of the total profits anticipated to be made on the contract, to the extent that their realisation is reasonably foreseeable. Provision is made for foreseeable losses on all contracts based on the loss which is currently estimated to arise over the duration of any contract, irrespective of the amount of work carried out at the balance sheet date. Sales of spare parts are recognised on despatch.
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PCE GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
2.Accounting policies (continued)
If it is not possible to distinguish between the research phase and the development phase of an internal project, the expenditure is treated as if it were all incurred in the research phase only. Grants of a revenue nature are recognised in the Consolidated Statement of Comprehensive Income in the same period as the related expenditure.
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PCE GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
2.Accounting policies (continued)
Goodwill
Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight-line basis to the Statement of Income and Retained Earnings over its useful economic life.
The estimated useful lives range as follows:
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PCE GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
2.Accounting policies (continued)
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
The estimated useful lives range as follows:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
An entity is treated as a joint venture where the Group is a party to a contractual agreement with one or more parties from outside the Group to undertake an economic activity that is subject to joint control.
In the consolidated accounts, interests in associated undertakings are accounted for using the equity method of accounting. Under this method an equity investment is initially recognised at the transaction price (including transaction costs) and is subsequently adjusted to reflect the investors share of the profit or loss, other comprehensive income and equity of the associate. The Consolidated statement of comprehensive income includes the Group's share of the operating results, interest, pre-tax results and attributable taxation of such undertakings applying accounting policies consistent with those of the Group. In the Consolidated statement of financial position, the interests in associated undertakings are shown as the Group's share of the identifiable net assets, including any unamortised premium paid on acquisition. At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.
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PCE GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
2.Accounting policies (continued)
Provisions are charged as an expense to profit or loss in the year that the Group becomes aware of the obligation, and are measured at the best estimate at the reporting date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties. When payments are eventually made, they are charged to the provision carried in the Statement of Financial Position.
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PCE GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
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. Critical judgments The following judgments have had the most significant effect on amounts recognised in the financial statements. Revenue recognition The Company uses a percentage-of-completion method in accounting for its fixed price contracts to produce the machinery. Use of the percentage-of-completion method requires the Company to estimate the services performed to date as a proportion of the total services to be performed.
Turnover for the year was derived from the principal activities of the company and the group.
Analysis of turnover by country of destination:
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PCE GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
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PCE GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
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PCE GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
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PCE GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
11.Taxation (continued)
The Finance Bill 2021 published by the UK government substantively enacts changes to the rates of corporation tax such that companies with profits greater than £50,000 will be taxed at 25% (subject to marginal relief). Companies with profits less than £50,000 will continue to be taxed at the current rate of 19%. The Group anticipates profits exceeding £50,000 and has therefore recognised deferred tax at 25%.
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PCE GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
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PCE GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
13.Tangible fixed assets (continued)
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PCE GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
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PCE GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
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PCE GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
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PCE GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
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PCE GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
22.Deferred taxation (continued)
Capital redemption reserve
Profit and loss account
The pension cost charge represents contibutions payable to defined contribution pension plans and amounted to £142,974 (2021 - £141,611). Contributions totalling £Nil (2021 - £Nil) were payable at the balance sheet date.
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PCE GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
The Group entered into a foreign exchange contract to sell specific amounts of foreign currency in the future at a predetermined exchange rate. Forward exchange contracts are entered into anticipating foreign currency receipts for sales in currencies other than GBP. The Group does not use derivative financial instruments for speculative purposes.
This contract expires on 31 January 2023. The net amount of currency to be sold under this exchange contract, as at 31 December 2022, was $500,000. The diffference between the forward rate and the year end spot rate leads to a fair value gain of £3,934. The Group does not recognise this on the Consolidated Statement of Financial Position under the grounds of materiality.
The ultimate controlling party is James Cook, by virtue of his majority shareholding in PCE Group Limited.
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PCE GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
On 12 September 2023, the Group acquired the entire share capital of Adapt Engineering Limited, a company limited by shares incorporated in Ireland, for £500k. The company's registered address is 31 Oakley Road, Dublin 6., Ranelagh, Dublin, D06TH79.
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