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Registered number: 09137040










PCE GROUP LIMITED










ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2022

 
PCE GROUP LIMITED
 
 
COMPANY INFORMATION


Directors
Mr J B Cook 
Mrs S L Cook 




Registered number
09137040



Registered office
Ellough Road
Ellough

Beccles

Suffolk

NR34 7TE




Independent auditors
Larking Gowen LLP
Chartered Accountants & Statutory Auditors

1st Floor Prospect House

Rouen road

Norwich

NR1 1RE





 
PCE GROUP LIMITED
 

CONTENTS



Page
Group Strategic Report
1 - 3
Directors' Report
4 - 5
Independent Auditors' Report
6 - 9
Consolidated Statement of Comprehensive Income
10
Consolidated Statement of Financial Position
11
Company Statement of Financial Position
12
Consolidated Statement of Changes in Equity
13
Company Statement of Changes in Equity
14
Consolidated Statement of Cash Flows
15 - 16
Consolidated Analysis of Net Debt
17
Notes to the Financial Statements
18 - 37


 
PCE GROUP LIMITED
 
 
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2022

Introduction
 
The directors present their strategic report, together with financial statements for the year ending 31st December 2022.

Business review
 
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.

Page 1

 
PCE GROUP LIMITED
 

GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022

Principal risks and uncertainties
 
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
Page 2

 
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.

Financial key performance indicators
 
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.



Mr J B Cook
Director

Date: 22 September 2023

Page 3

 
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.

Directors' responsibilities statement

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 2006They 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.

Results and dividends

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.

Directors

The Directors who served during the year were:

Mr J B Cook 
Mrs S L Cook 

Matters covered in the Group Strategic Report

Information on exposure to risk, future developments and going concern are covered in the Strategic Report.

Page 4

 
PCE GROUP LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022

Disclosure of information to auditors

Each of the persons who are Directors at the time when this Directors' Report is approved has confirmed that:
 
so far as the Director is aware, there is no relevant audit information of which the Company and the Group's auditors are unaware, and

the Director has taken all the steps that ought to have been taken as a Director in order to be aware of any relevant audit information and to establish that the Company and the Group's auditors are aware of that information.

Post balance sheet events

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.

Auditors

The auditorsLarking Gowen LLPwill 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.
 





Mr J B Cook
Director

Date: 22 September 2023

Page 5

 
PCE GROUP LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PCE GROUP LIMITED
 

Opinion


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 policiesThe 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's affairs as at 31 December 2022 and of the Group's profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


Basis for opinion


We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the 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.


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 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.


Page 6

 
PCE GROUP LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PCE GROUP LIMITED (CONTINUED)


Other information


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.


Opinion 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 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.


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 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:


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 Directors' Responsibilities Statement set out on page 4, 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 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.


Page 7

 
PCE GROUP LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PCE GROUP LIMITED (CONTINUED)


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 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.


Page 8

 
PCE GROUP LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PCE GROUP LIMITED (CONTINUED)


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 2006Our 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.





John Atkins ACA FCCA (Senior Statutory Auditor)
  
for and on behalf of
Larking Gowen LLP
 
Chartered Accountants
Statutory Auditors
  
1st Floor Prospect House
Rouen road
Norwich
NR1 1RE

25 September 2023
Page 9

 
PCE GROUP LIMITED
 
 
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2022

2022
2021
Note
£
£

  

Turnover
 4 
13,329,057
10,241,119

Cost of sales
  
(10,151,274)
(8,434,718)

Gross profit
  
3,177,783
1,806,401

Administrative expenses
  
(2,012,764)
(1,572,317)

Other operating income
 5 
45,329
25,034

Operating profit
 6 
1,210,348
259,118

Interest receivable and similar income
 9 
16,557
6,301

Interest payable and similar expenses
 10 
(5,466)
(5,002)

Profit before taxation
  
1,221,439
260,417

Tax on profit
 11 
(14,612)
173,480

Profit for the financial year
  
1,206,827
433,897

  

  

Profit for the year attributable to:
  

Non-controlling interests
  
66,878
34,887

Owners of the parent Company
  
1,139,949
399,010

  
1,206,827
433,897

The notes on pages 18 to 37 form part of these financial statements.

Page 10

 
PCE GROUP LIMITED
REGISTERED NUMBER: 09137040

CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2022

2022
2021
Note
£
£

Fixed assets
  

Intangible assets
 12 
17,019
21,731

Tangible assets
 13 
1,288,827
1,233,180

Investments
 14 
1
1

  
1,305,847
1,254,912

Current assets
  

Stocks
 15 
938,783
377,949

Debtors: amounts falling due within one year
 16 
5,296,188
3,247,555

Cash at bank and in hand
 17 
1,246,782
2,559,960

  
7,481,753
6,185,464

Creditors: amounts falling due within one year
 18 
(3,324,908)
(2,863,164)

Net current assets
  
 
 
4,156,845
 
 
3,322,300

Total assets less current liabilities
  
5,462,692
4,577,212

Creditors: amounts falling due after more than one year
 19 
(102,891)
(118,735)

Provisions for liabilities
  

Deferred taxation
 22 
(137,409)
(134,023)

Net assets
  
5,222,392
4,324,454


Capital and reserves
  

Called up share capital 
 23 
5,000
5,000

Capital redemption reserve
 24 
10,000
10,000

Profit and loss account
 24 
5,025,082
4,116,133

Equity attributable to owners of the parent Company
  
5,040,082
4,131,133

Non-controlling interests
  
182,310
193,321

  
5,222,392
4,324,454


The financial statements were approved and authorised for issue by the board and were signed on its behalf by:

Mr J B Cook
Director
Date: 22 September 2023

The notes on pages 18 to 37 form part of these financial statements.

Page 11

 
PCE GROUP LIMITED
REGISTERED NUMBER: 09137040

COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2022

2022
2021
Note
£
£

Fixed assets
  

Tangible assets
 13 
254,018
232,662

Investments
 14 
87,600
87,600

  
341,618
320,262

Current assets
  

Debtors: amounts falling due within one year
 16 
516,646
472,111

Cash at bank and in hand
 17 
13,147
17,040

  
529,793
489,151

Creditors: amounts falling due within one year
 18 
(35,140)
(122,709)

Net current assets
  
 
 
494,653
 
 
366,442

  

Creditors: amounts falling due after more than one year
  
(102,891)
(117,588)

Provisions for liabilities
  

Deferred taxation
  
(2,000)
(1,520)

Net assets
  
731,380
567,596


Capital and reserves
  

Called up share capital 
 23 
5,000
5,000

Capital redemption reserve
 24 
10,000
10,000

Profit and loss account brought forward
  
552,596
444,374

Profit for the year
  
394,784
193,222

Dividends paid

  

(231,000)
(85,000)

Profit and loss account carried forward
  
716,380
552,596

  
731,380
567,596


The financial statements were approved and authorised for issue by the board and were signed on its behalf by:

Mr J B Cook
Director
Date: 22 September 2023

The notes on pages 18 to 37 form part of these financial statements.

Page 12

 

 
PCE GROUP LIMITED


 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2022



Called up share capital
Capital redemption reserve
Profit and loss account
Equity attributable to owners of parent Company
Non-controlling interests
Total equity


£
£
£
£
£
£



At 1 January 2021
5,000
10,000
3,455,270
3,470,270
598,287
4,068,557





Profit for the year
-
-
399,010
399,010
34,887
433,897


Dividends: Equity capital
-
-
(85,000)
(85,000)
(20,400)
(105,400)


Group acquisition of shares in subsidiaries
-
-
346,853
346,853
(419,453)
(72,600)





At 1 January 2022
5,000
10,000
4,116,133
4,131,133
193,321
4,324,454





Profit for the year
-
-
1,139,949
1,139,949
66,878
1,206,827


Dividends: Equity capital
-
-
(231,000)
(231,000)
(77,889)
(308,889)



At 31 December 2022
5,000
10,000
5,025,082
5,040,082
182,310
5,222,392



The notes on pages 18 to 37 form part of these financial statements.

Page 13

 
PCE GROUP LIMITED
 

COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2022


Called up share capital
Capital redemption reserve
Profit and loss account
Total equity

£
£
£
£


At 1 January 2021
5,000
10,000
444,374
459,374



Profit for the year
-
-
193,222
193,222

Dividends: Equity capital
-
-
(85,000)
(85,000)



At 1 January 2022
5,000
10,000
552,596
567,596



Profit for the year
-
-
394,784
394,784

Dividends: Equity capital
-
-
(231,000)
(231,000)


At 31 December 2022
5,000
10,000
716,380
731,380


The notes on pages 18 to 37 form part of these financial statements.

Page 14

 
PCE GROUP LIMITED
 

CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2022

2022
2021
£
£

Cash flows from operating activities

Profit for the financial year
1,206,827
433,897

Adjustments for:

Amortisation of intangible assets
4,712
4,337

Depreciation of tangible assets
207,453
181,885

Profit on disposal of tangible assets
(314)
(833)

Interest paid
5,466
5,014

Investment income
(16,557)
(6,301)

Taxation charge
14,612
(173,480)

(Increase) in stocks
(560,834)
(83,385)

(Increase) in debtors
(2,179,851)
(525,474)

Increase in creditors
461,220
887,178

Corporation tax received
122,406
168,355

Net cash generated from operating activities

(734,860)
891,193


Cash flows from investing activities

Purchase of tangible fixed assets
(263,936)
(373,943)

Sale of tangible fixed assets
1,150
833

Interest received
16,557
6,301

Purchase of shares in subsidiary
-
(72,600)

Net cash from investing activities

(246,229)
(439,409)
Page 15

 
PCE GROUP LIMITED
 

CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022


2022
2021

£
£



Cash flows from financing activities

Other new loans
-
132,287

Repayment of other loans
(14,699)
-

Repayment of/new finance leases
(3,035)
(5,221)

Dividends paid
(231,000)
(85,000)

Interest paid
(5,466)
(5,014)

Dividends paid to non-controlling interests
(77,889)
(20,400)

Net cash used in financing activities
(332,089)
16,652

Net (decrease)/increase in cash and cash equivalents
(1,313,178)
468,436

Cash and cash equivalents at beginning of year
2,559,960
2,091,524

Cash and cash equivalents at the end of year
1,246,782
2,559,960


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
1,246,782
2,559,960


The notes on pages 18 to 37 form part of these financial statements.

Page 16

 
PCE GROUP LIMITED
 

CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 DECEMBER 2022





At 1 January 2022
Cash flows
Other non-cash changes
At 31 December 2022
£

£

£

£

Cash at bank and in hand

2,559,960

(1,313,178)

-

1,246,782

Debt due after 1 year

(117,588)

-

14,697

(102,891)

Debt due within 1 year

(14,699)

14,699

(14,697)

(14,697)

Finance leases

(4,477)

3,035

-

(1,442)


2,423,196
(1,295,444)
-
1,127,752

The notes on pages 18 to 37 form part of these financial statements.

Page 17

 
PCE GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

1.


General information

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

 
2.1

Basis of preparation of financial statements

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:

 
2.2

Basis of consolidation

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.

 
2.3

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 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.

Page 18

 
PCE GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

2.Accounting policies (continued)

 
2.4

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Consolidated Statement of Comprehensive Income within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.

 
2.5

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. 
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.

 
2.6

Operating leases: the Group as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

Page 19

 
PCE GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

2.Accounting policies (continued)

 
2.7

Research and development

In the research phase of an internal project it is not possible to demonstrate that the project will generate future economic benefits and hence all expenditure on research shall be recognised as an expense when it is incurred. Intangible assets are recognised from the development phase of a project if and only if certain specific criteria are met in order to demonstrate the asset will generate probable future economic benefits and that its cost can be reliably measured.
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. 

 
2.8

Government grants

Grants are accounted under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to profit or loss at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income.
Grants of a revenue nature are recognised in the Consolidated Statement of Comprehensive Income in the same period as the related expenditure.

 
2.9

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
2.10

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.11

Pensions

Defined contribution pension plan

The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of Financial Position. The assets of the plan are held separately from the Group in independently administered funds.

Page 20

 
PCE GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

2.Accounting policies (continued)

 
2.12

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company and the Group operate and generate income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits;
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met; and
Where they relate to timing differences in respect of interests in subsidiaries, associates, branches and joint ventures and the Group can control the reversal of the timing differences and such reversal is not considered probable in the foreseeable future.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

 
2.13

Intangible assets

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:

Goodwill
-
10% straight line

 
2.14

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Page 21

 
PCE GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

2.Accounting policies (continued)


2.14
Tangible fixed assets (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:

Land and buildings
-
2% straight line on buildings
Leasehold warehouse
-
10% straight-line
Plant and machinery
-
10-15% straight-line
Motor vehicles
-
25% straight-line
Fixtures and fittings
-
15% straight-line

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.

 
2.15

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

 
2.16

Associates and joint ventures

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.

 
2.17

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. 
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.

Page 22

 
PCE GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

2.Accounting policies (continued)

 
2.18

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.

 
2.19

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Consolidated Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Group's cash management.

 
2.20

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
2.21

Provisions for liabilities

Provisions are made where an event has taken place that gives the Group a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
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.

 
2.22

Financial instruments

The Group only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.

 
2.23

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

Page 23

 
PCE GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

3.


Judgments in applying accounting policies and key sources of estimation uncertainty

In the application of the Company's accounting policies, the Directors are required to make judgments, 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.
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.


4.


Turnover

Turnover for the year was derived from the principal activities of the company and the group.

Analysis of turnover by country of destination:

2022
2021
£
£

United Kingdom
3,943,512
4,791,206

Rest of Europe
94,808
578,180

Rest of the world
9,290,737
4,871,733

13,329,057
10,241,119



5.


Other operating income

2022
2021
£
£

Other operating income
45,329
19,721

Government grants receivable
-
5,313

45,329
25,034


Page 24

 
PCE GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

6.


Operating profit

The operating profit is stated after charging:

2022
2021
£
£

Depreciation and amortisation
212,165
186,222

Exchange differences
(12,189)
(29,584)

Other operating lease rentals
193,671
197,562

Auditors' remuneration
22,560
20,500


7.


Employees

Staff costs, including Directors' remuneration, were as follows:


Group
Group
Company
Company
2022
2021
2022
2021
£
£
£
£


Wages and salaries
3,508,780
3,076,188
-
-

Social security costs
364,714
296,224
-
-

Cost of defined contribution scheme
142,974
141,611
-
-

4,016,468
3,514,023
-
-


The average monthly number of group employees, including the directors, during the year was as follows:


        2022
        2021
            No.
            No.







Directors
6
5



Administration
9
11



Manufacturing
87
81

102
97

The Company has no employees other than the directors.

Page 25

 
PCE GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

8.


Directors' remuneration

2022
2021
£
£

Directors' emoluments
76,469
72,380

Group contributions to defined contribution pension schemes
8,540
7,619

85,009
79,999


During the year retirement benefits were accruing to 2 Directors (2021 - 2) in respect of defined contribution pension schemes.

The amount payable in the year in relation to Key Management Personnel, considered to be the directors of the group companies, was £354,653 (2021 - £256,960).


9.


Interest receivable

2022
2021
£
£


Other interest receivable
16,557
6,301


10.


Interest payable and similar expenses

2022
2021
£
£


Bank interest payable
-
258

Other loan interest payable
4,829
4,085

Finance leases and hire purchase contracts
637
659

5,466
5,002

Page 26

 
PCE GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

11.


Taxation


2022
2021
£
£

Corporation tax


Current tax on profits for the year
48,935
49,861

Adjustments in respect of previous periods
(37,709)
(247,428)


Total current tax
11,226
(197,567)

Deferred tax


Origination and reversal of timing differences
229,106
24,087

Adjustments in respect of previous periods
(225,720)
-

Total deferred tax
3,386
24,087


Taxation on profit/(loss) on ordinary activities
14,612
(173,480)

Factors affecting tax charge for the year

The tax assessed for the year is lower than (2021 - lower than) the standard rate of corporation tax in the UK of 19% (2021 - 19%). The differences are explained below:

2022
2021
£
£


Profit on ordinary activities before tax
1,221,439
260,417


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 19% (2021 - 19%)
232,073
49,479

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
3,883
19,580

Capital allowances for year in excess of depreciation
(10,366)
9,214

Adjustment in research and development tax credit leading to an increase (decrease) in the tax charge
(265,332)
(247,428)

Effect of difference between current and deferred tax rates
55,878
-

Other differences leading to an increase (decrease) in the tax charge
(1,524)
(4,325)

Total tax charge for the year
14,612
(173,480)


Factors that may affect future tax charges

Page 27

 
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%.


12.


Intangible assets

Group





Goodwill

£



Cost


At 1 January 2022
35,242



At 31 December 2022

35,242



Amortisation


At 1 January 2022
13,511


Charge for the year on owned assets
4,712



At 31 December 2022

18,223



Net book value



At 31 December 2022
17,019



At 31 December 2021
21,731



Page 28

 
PCE GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

13.


Tangible fixed assets

Group






Land and buildings
Leasehold warehouse
Plant and machinery
Motor vehicles
Fixtures, fittings and equipment
Total

£
£
£
£
£
£



Cost


At 1 January 2022
535,117
220,482
430,754
111,083
739,631
2,037,067


Additions
21,356
18,222
105,824
20,063
98,471
263,936


Disposals
-
-
-
(11,400)
-
(11,400)



At 31 December 2022

556,473
238,704
536,578
119,746
838,102
2,289,603



Depreciation


At 1 January 2022
18,923
51,072
259,927
59,125
414,840
803,887


Charge for the year
-
29,160
46,619
17,820
113,854
207,453


Disposals
-
-
-
(10,564)
-
(10,564)



At 31 December 2022

18,923
80,232
306,546
66,381
528,694
1,000,776



Net book value



At 31 December 2022
537,550
158,472
230,032
53,365
309,408
1,288,827



At 31 December 2021
516,194
169,410
170,827
51,958
324,791
1,233,180

Included within group land and buildings is freehold land costing £89,260 which is not depreciated. 

The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:


2022
2021
£
£



Motor vehicles
1,070
4,282

1,070
4,282

Page 29

 
PCE GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

           13.Tangible fixed assets (continued)


Company






Land and buildings
Fixtures, fittings and equipment
Total

£
£
£

Cost


At 1 January 2022
224,662
8,000
232,662


Additions
21,356
-
21,356



At 31 December 2022

246,018
8,000
254,018


Charge for the year
-
-
-



At 31 December 2022

-
-
-



Net book value



At 31 December 2022
246,018
8,000
254,018



At 31 December 2021
224,662
8,000
232,662







14.


Fixed asset investments

Group





Investments in associates

£



Cost


At 1 January 2022
1



At 31 December 2022
1




Page 30

 
PCE GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
Company





Investments in subsidiary companies

£



Cost


At 1 January 2022
87,600



At 31 December 2022
87,600





Subsidiary undertakings


The following were subsidiary undertakings of the Company:

Name

Class of shares

Holding

PCE Automation Limited
Ordinary
94.44%
D B Automation Limited
Ordinary
94.44%
Premier Feeders Limited
Ordinary
94.44%
Premier Bowlfeeders Limited
Ordinary
94.44%

All of the above companies are registered in the United Kingdom and thier registered office is Ellough Airfield, Ellough, Beccles, Suffolk NR34 7TE.

The aggregate of the share capital and reserves as at 31 December 2022 and the profit or loss for the year ended on that date for the subsidiary undertakings were as follows:

Name
Aggregate of share capital and reserves
Profit / (Loss)
£
£

PCE Automation Limited
4,561,595
1,203,807

D B Automation Limited
1,500
-

Premier Feeders Limited
1
-

Premier Bowlfeeders Limited
100
-

Associated undertakings
The Company owns 1 share (50%) of G-IPCE Aviation Limited, whose registered office is the same as the Company's.

Page 31

 
PCE GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

15.


Stocks

Group
Group
2022
2021
£
£

Raw materials and consumables
938,783
377,949


The carrying value of stocks are stated net of impairment losses totalling £19,767 (2021 - £17,586) due to slow-moving and obsolete stock.


16.


Debtors

Group
Group
Company
Company
2022
2021
2022
2021
£
£
£
£


Trade debtors
1,984,055
1,360,903
-
-

Amounts owed by joint ventures and associated undertakings
110,000
110,000
-
-

Other debtors
674,715
585,446
372,189
431,311

Amounts recoverable on contracts
1,515,550
678,279
-
-

Prepayments and accrued income
1,011,868
512,927
144,457
40,800

5,296,188
3,247,555
516,646
472,111



17.


Cash and cash equivalents

Group
Group
Company
Company
2022
2021
2022
2021
£
£
£
£

Cash at bank and in hand
1,246,782
2,559,960
13,147
17,040


Page 32

 
PCE GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

18.


Creditors: Amounts falling due within one year

Group
Group
Company
Company
2022
2021
2022
2021
£
£
£
£

Other loans
14,697
14,699
14,697
14,699

Trade creditors
963,363
636,716
6,000
-

Amounts owed to group undertakings
-
-
-
97,600

Corporation tax
52,275
49,861
2,711
2,063

Other taxation and social security
147,297
89,827
-
-

Obligations under finance lease and hire purchase contracts
1,442
3,330
-
-

Customer payments on account
1,792,246
1,872,853
-
-

Other creditors
5,636
7,421
190
-

Accruals and deferred income
347,952
188,457
11,542
8,347

3,324,908
2,863,164
35,140
122,709


All hire purchase creditors are secured on the related assets.


19.


Creditors: Amounts falling due after more than one year

Group
Group
Company
Company
2022
2021
2022
2021
£
£
£
£

Other loans
102,891
117,588
102,891
117,588

Net obligations under finance leases and hire purchase contracts
-
1,147
-
-




Page 33

 
PCE GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

20.


Loans




Group
Group
Company
Company
2022
2021
2022
2021
£
£
£
£

Amounts falling due within one year
14,697
14,699
14,697
14,699

Amounts falling due 1-2 years
14,699
14,699
14,699
14,699

Amounts falling due 2-5 years
44,096
44,096
44,096
44,096

Amounts falling due after more than 5 years
44,096
58,793
44,096
58,793

117,588
132,287
117,588
132,287


All loans are repayable by instalments.


21.


Hire purchase and finance leases


Minimum lease payments under hire purchase fall due as follows:

Group
Group
2022
2021
£
£

Within one year
1,442
3,330

Between 1-5 years
-
1,147

1,442
4,477


22.


Deferred taxation


Group



2022


£






At beginning of year
134,023


Charged to profit or loss
3,386



At end of year
137,409

Page 34

 
PCE GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
 
22.Deferred taxation (continued)

Company


2022


£






At beginning of year
1,520


Charged to profit or loss
480



At end of year
2,000

Group
Group
Company
Company
2022
2021
2022
2021
£
£
£
£

Accelerated capital allowances
137,409
134,023
2,000
1,520

137,409
134,023
2,000
1,520


23.


Share capital

2022
2021
£
£
Allotted, called up and fully paid



5,000 (2021 - 5,000) Ordinary shares shares of £1.00 each
5,000
5,000



24.


Reserves

Capital redemption reserve

This reserve records the nominal value of shares repurchased by the company.

Profit and loss account

This reserve records retained earnings and accumulated losses.


25.


Pension commitments

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.

Page 35

 
PCE GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

26.


Commitments under operating leases

At 31 December 2022 the Group and the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:


Group
Group
2022
2021
£
£

Not later than 1 year
134,573
94,203

Later than 1 year and not later than 5 years
261,715
239,965

Later than 5 years
21,720
21,720

418,008
355,888

27.


Derivatives

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.


28.


Controlling party

The ultimate controlling party is James Cook, by virtue of his majority shareholding in PCE Group Limited.

Page 36

 
PCE GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

29.


Related party transactions

Group
During the previous year, land was purchased by the Group from close family of the directors for its market value of £146,985, with no such transaction taking place in the current year. Included in other creditors at year end is a balance outstanding of £122,810 (2021 - £132,287). Interest of £Nil (2021 - £4,097) was charged during the year.
During the year, rent was paid to former directors and their close family members totalling £55,593 (2021 - £37,314), paid to the directors pension scheme totalling £60,631 (2021 - £56,400) and between group companies totalling £19,828 (2021 - £14,399).
Included in other debtors is £110,000 (2021 - £110,000) owed to the Group by an associate company.
Included in other debtors is £214,428 (2021 - £200,000) owed to the Group by a company under common control. Interest of £9,269 (2021 - £5,159) was charged during the year.
Included in other debtors are directors' loan accounts totalling £44,337 (2021 - £114,268).
Company
During the previous year, land was purchased by the Company from close family of the directors for its market value of £146,985, with no such transaction taking place in the current year. Included in other creditors at year end is a balance outstanding of £122,810 (2021 - £132,287). Interest of £Nil (2021 - £4,097) was charged during the year.
Dividends paid by PCE Automation Limited to PCE Group Limited for the year totalled £388,927 (2021 - £190,800). By year end amounts owing from PCE Group Limited to PCE Automation totalled £803 (2021 - £97,600).
Included in other debtors is £110,000 (2021 - £110,000) owed to the Company by an associate company.
Included in other debtors is £214,428 (2021 - £200,000) owed to the Company by a company under common control. Interest of £9,269 (2021 - £5,159) was charged during the year.
Included in other debtors are directors' loan accounts totalling £44,337 (2021 - £114,268).


30.


Post balance sheet events

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.

 
Page 37