Company registration number 05835266 (England and Wales)
PLASSON U.K. LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
PLASSON U.K. LTD
COMPANY INFORMATION
Directors
Mr O Borovsky
Mrs N Dagan
Mr O Henkin
Mr G Wexsler
Company number
05835266
Registered office
Hampden House
76 Durham Road
London
SW20 0TL
Auditor
Hampden
Hampden House
76 Durham Road
London
SW20 0TL
Business address
Plasson House
Albert Drive
Burgess Hill
West Sussex
United Kingdom
RH15 9TN
PLASSON U.K. LTD
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Profit and loss account
8
Statement of comprehensive income
9
Balance sheet
10
Statement of changes in equity
11
Notes to the financial statements
12 - 25
PLASSON U.K. LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2022
- 1 -
The directors present the strategic report for the year ended 31 December 2022.
Review of the business
The company's principal activity remained as importer and distributor of plastic pipe fittings for PE Water pipes,
having the most extensive range of fittings in the UK market place.
Plasson U.K. Ltd continued to focus on consolidating its market position and provide class leading customer service
in its traditionally strong sectors and growing in the areas identified previously as potential opportunities and
growth engines.
The company continues to thrive on strong relationships with customers and suppliers, which are key to delivering
the high levels of service and products the company has become known for.
This market focused approach, bringing the highest quality products, innovation and exceptional customer service
to the market underpins the brand as market leader and ensured a strong performance in 2022.
Key performance indicators
Principal risks and uncertainties
The company continues to face challenges due to a combination of common risks; high inflation, raised interest rates and general spending. Uncertainty in the UK economy, especially around a downturn in new house developments are all contributing to uncertainties in Plassons market place.
Goods are generally supplied to customers on normal commercial credit terms. Credit risk is mitigated by the maintaining a very active credit control, exposure is spread over a wide number of customers and there are robust procedures in place for vetting any potential new customers.
The company recognises the importance of employees. Through identifying the key drivers early, staff retention is exceptional and there is an active plan for succession planning.
The company is aware of the risk of change in legislation and keep a close watch on the business related legislation. We are also crucially aware of the product related legislation and are in regular contact with the various regulation organisations in the UK as well as maintaining involvement with the standardisation procedure in the UK to support the company's involvement with European legislation
Business model and group strategy
The company's business model is to maintain a healthy trade within its sector and managing controllable costs inline with turnover. The ability to continue to trade without significant debt with banks, shareholders or other credit facilities is also important.
An important part of the group's strategy is to expand its business activity in the UK. The company is supporting the product development programme pursued by Plasson Ltd. The facilities at the company's trading business address is capable of expansion without additional significant costs. The company's IT and administration infrastructure will also easily cope with an increase in business.
PLASSON U.K. LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 2 -
Mr O Borovsky
Director
16 October 2023
PLASSON U.K. LTD
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2022
- 3 -
The directors present their annual report and financial statements for the year ended 31 December 2022.
Principal activities
The principal activity of the company continued to be that of selling and distribution of pipe fittings and auxiliary products.
Results and dividends
The results for the year are set out on page 8.
Ordinary dividends were paid amounting to £6,028,116. The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr O Borovsky
Mrs N Dagan
Mr O Henkin
Mr G Wexsler
Financial instruments
The company has a normal level of response to price, credit, liquidity and cash flow risks arising from trading activities which are largely conducted in sterling. The company does not enter into any formally designated hedging arrangements. The company's operations are financed by a mixture of equity funding and group company short term borrowings. Working capital requirements are met out of operational cash flows. In addition, various financial instruments such as trade debtors and trade creditors arise directly from the company's operations.
Research and development
The company's future strategy and developments are shown in the strategic report.
Auditor
The auditor, Hampden, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
Statement of directors' responsibilities
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
PLASSON U.K. LTD
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 4 -
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
Medium-sized companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
On behalf of the board
Mr O Borovsky
Director
16 October 2023
PLASSON U.K. LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF PLASSON U.K. LTD
- 5 -
Opinion
We have audited the financial statements of Plasson U.K. Ltd (the 'company') for the year ended 31 December 2022 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the company's affairs as at 31 December 2022 and of its 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.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the 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 strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
PLASSON U.K. LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF PLASSON U.K. LTD
- 6 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of 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, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
The extent to which the audit was considered capable of detecting irregularities including fraud
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows;
we ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations.
we identified the laws and regulations applicable to the company through discussion with directors and other management, and from our commercial knowledge and experience of this business sector.
we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, UK financial reporting standards as issued by the Financial Reporting Council, and UK taxation legislation.
we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence. and
identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance through the audit.
We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.
PLASSON U.K. LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF PLASSON U.K. LTD
- 7 -
To address the risk of fraud through management bias and override of controls, we:
performed analytical procedures to identify any unusual or unexpected relationships;
tested journal entries to identify unusual transactions;
assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and
investigated the rationale behind significant or unusual transactions.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
agreeing financial statement disclosures to underlying supporting documentation;
enquiring of management as to actual and potential litigation and claims; and
reviewing correspondence with HM Revenue and Customs, relevant regulators and company legal advisors.
There are inherent limitations in our audit procedures described above. The more removed those laws and regulations are from financial transactions, the less likely it is that we would become aware of 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 misstatement 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 is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.
Mr Inderjith Sivlal
Senior Statutory Auditor
For and on behalf of Hampden
16 October 2023
Chartered Accountants
Statutory Auditor
Hampden House
76 Durham Road
London
SW20 0TL
PLASSON U.K. LTD
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2022
- 8 -
2022
2021
Notes
£
£
Turnover
3
17,817,573
16,187,905
Cost of sales
(12,972,655)
(12,283,655)
Gross profit
4,844,918
3,904,250
Administrative expenses
(3,093,892)
(2,651,166)
Other operating income
134,190
200,454
Operating profit
4
1,885,216
1,453,538
Interest receivable and similar income
7
5,043,657
(58,379)
Profit before taxation
6,928,873
1,395,159
Tax on profit
8
(380,878)
(278,170)
Profit for the financial year
6,547,995
1,116,989
The profit and loss account has been prepared on the basis that all operations are continuing operations.
PLASSON U.K. LTD
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2022
- 9 -
2022
2021
£
£
Profit for the year
6,547,995
1,116,989
Other comprehensive income
Tax relating to other comprehensive income
(20,920)
Total comprehensive income for the year
6,547,995
1,096,069
PLASSON U.K. LTD
BALANCE SHEET
AS AT
31 DECEMBER 2022
31 December 2022
- 10 -
2022
2021
Notes
£
£
£
£
Fixed assets
Tangible assets
10
2,398,741
2,459,726
Investments
11
16,610,159
16,610,159
19,008,900
19,069,885
Current assets
Stocks
13
3,406,336
2,762,275
Debtors
14
1,759,677
2,158,447
Cash at bank and in hand
2,837,553
2,844,710
8,003,566
7,765,432
Creditors: amounts falling due within one year
15
(2,641,577)
(2,985,125)
Net current assets
5,361,989
4,780,307
Total assets less current liabilities
24,370,889
23,850,192
Provisions for liabilities
Deferred tax liability
16
169,933
169,115
(169,933)
(169,115)
Net assets
24,200,956
23,681,077
Capital and reserves
Called up share capital
18
15,003,073
15,003,073
Revaluation reserve
722,847
722,847
Profit and loss reserves
8,475,036
7,955,157
Total equity
24,200,956
23,681,077
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.true
The financial statements were approved by the board of directors and authorised for issue on 16 October 2023 and are signed on its behalf by:
Mr O Borovsky
Director
Company registration number 05835266 (England and Wales)
PLASSON U.K. LTD
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2022
- 11 -
Share capital
Revaluation reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 January 2021
15,003,073
743,767
9,443,182
25,190,022
Year ended 31 December 2021:
Profit
-
-
1,116,989
1,116,989
Other comprehensive income:
Tax relating to other comprehensive income
-
(20,920)
(20,920)
Total comprehensive income
-
(20,920)
1,116,989
1,096,069
Dividends
9
-
-
(2,605,014)
(2,605,014)
Balance at 31 December 2021
15,003,073
722,847
7,955,157
23,681,077
Year ended 31 December 2022:
Profit and total comprehensive income
-
-
6,547,995
6,547,995
Dividends
9
-
-
(6,028,116)
(6,028,116)
Balance at 31 December 2022
15,003,073
722,847
8,475,036
24,200,956
PLASSON U.K. LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
- 12 -
1
Accounting policies
Company information
Plasson U.K. Ltd is a private company limited by shares incorporated in England and Wales. The registered office is Hampden House, 76 Durham Road, London, SW20 0TL. The principal place of business is Plasson House, Albert Drive, Burgess Hill, West Sussex, United Kingdom, RH15 9TN.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:
Section 4 ‘Statement of Financial Position’: Reconciliation of the opening and closing number of shares;
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues’: Carrying amounts, interest income/expense and net gains/losses for each category of financial instrument; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 26 ‘Share based Payment’: Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
The company has taken advantage of the exemption under section 401 of the Companies Act 2006 not to prepare consolidated accounts. The financial statements present information about the company as an individual entity and not about its group.
Plasson U.K. Ltd is a wholly owned subsidiary of Plasson Limited and the results of Plasson U.K. Ltd are included in the consolidated financial statements of the ultimate parent undertaking, Plasson Industries Limited which are available from its registered office at Kibbutz Maagan Michael, D.N. Menashe, 3780500 Israel.
1.2
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
PLASSON U.K. LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 13 -
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.
1.4
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Leasehold land and buildings
2% straight line
Plant and equipment
20% straight line
Fixtures and fittings
10% straight line
Computer software
25% straight line
Motor vehicles
25% straight line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.5
Fixed asset investments
Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.
Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.
PLASSON U.K. LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 14 -
1.6
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.7
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.8
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.9
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
PLASSON U.K. LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 15 -
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
PLASSON U.K. LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 16 -
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.10
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.11
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
PLASSON U.K. LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 17 -
1.12
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.13
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.14
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.
1.15
Government grants
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.
1.16
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
PLASSON U.K. LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 18 -
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Critical judgements
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
Tanbible fixed assets
Determine whether there are any indicators of impairment of the company's tangible assets. Factors taken into consideration in reaching such a decision include the economic viability and expected future financial performance of the asset.
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
Tangible fixed assets
Tangible fixed assets are depreciated over their useful lives taking account of residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on the number of factors. In re-assessing asset lives, factors such as technological innovation, product life cycle and maintenance programmes are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of an asset and projected disposal values.
Valuation of land and buildings
As described in note 10 to the financial statements, land and buildings are stated at fair value based on the valuation of observable market prices and values in accordance with the RICS Red Book. However, the Covid-19 pandemic has caused significant disruption and uncertainty in the UK property market which has inevitably increased the degree of judgement involved in the property valuation at 31 December 2020.
3
Turnover and other revenue
2022
2021
£
£
Turnover analysed by geographical market
Europe and the rest of the world
253,239
724
United Kingdom
17,564,334
16,187,181
17,817,573
16,187,905
PLASSON U.K. LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
3
Turnover and other revenue
(Continued)
- 19 -
2022
2021
£
£
Other revenue
Interest income
30,909
28,397
Dividends received
5,040,673
-
Grants received
-
65,917
4
Operating profit
2022
2021
Operating profit for the year is stated after charging/(crediting):
£
£
Government grants
-
(65,917)
Depreciation of owned tangible fixed assets
120,237
97,698
Operating lease charges
134,051
119,734
5
Auditor's remuneration
2022
2021
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
17,000
16,000
6
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2022
2021
Number
Number
Management
4
4
Selling and administration
27
27
Total
31
31
Their aggregate remuneration comprised:
2022
2021
£
£
Wages and salaries
1,278,979
1,243,463
Social security costs
159,244
141,947
Pension costs
99,365
130,665
1,537,588
1,516,075
Redundancy payments made
-
-
PLASSON U.K. LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 20 -
7
Interest receivable and similar income
2022
2021
£
£
Interest income
Interest on bank deposits
30,909
Interest receivable from group companies
28,397
Total interest revenue
30,909
28,397
Other income from investments
Exchange differences
(27,925)
(86,776)
Total income excluding fixed asset investments
2,984
(58,379)
Income from fixed asset investments
Income from shares in group undertakings
5,040,673
Total income
5,043,657
(58,379)
8
Taxation
2022
2021
£
£
Current tax
UK corporation tax on profits for the current period
371,738
205,094
Adjustments in respect of prior periods
8,322
2,166
Total UK current tax
380,060
207,260
Foreign current tax on profits for the current period
7,383
Total current tax
380,060
214,643
Deferred tax
Origination and reversal of timing differences
818
63,527
Total tax charge
380,878
278,170
PLASSON U.K. LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
8
Taxation
(Continued)
- 21 -
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2022
2021
£
£
Profit before taxation
6,928,873
1,395,159
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2021: 19.00%)
1,316,486
265,080
Tax effect of expenses that are not deductible in determining taxable profit
11,332
10,496
Tax effect of income not taxable in determining taxable profit
(957,728)
Adjustments in respect of prior years
8,322
2,166
Effect of overseas tax rates
428
Effect of change in local corporation tax
2,466
Taxation charge for the year
380,878
278,170
In addition to the amount charged to the profit and loss account, the following amounts relating to tax have been recognised directly in other comprehensive income:
2022
2021
£
£
Deferred tax arising on:
Revaluation of property
-
20,920
Factors that may affect future tax charges
Increases in the UK corporation tax rate from 19% to 25%, with marginal relief available for profits between £50,000 and £250,000 (effective 1 April 2023) were substantially enacted on 3 March 2021. This will increase the company's future tax charge accordingly.
9
Dividends
2022
2021
£
£
Interim paid
6,028,116
2,605,014
PLASSON U.K. LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 22 -
10
Tangible fixed assets
Leasehold land and buildings
Plant and equipment
Fixtures and fittings
Computer software
Motor vehicles
Total
£
£
£
£
£
£
Cost or valuation
At 1 January 2022
2,521,865
249,274
406,729
212,627
69,775
3,460,270
Additions
968
32,944
25,340
59,252
At 31 December 2022
2,521,865
250,242
439,673
237,967
69,775
3,519,522
Depreciation and impairment
At 1 January 2022
423,992
245,506
306,862
6,645
17,539
1,000,544
Depreciation charged in the year
50,000
1,313
22,458
29,022
17,444
120,237
At 31 December 2022
473,992
246,819
329,320
35,667
34,983
1,120,781
Carrying amount
At 31 December 2022
2,047,873
3,423
110,353
202,300
34,792
2,398,741
At 31 December 2021
2,097,873
3,768
99,867
205,982
52,236
2,459,726
The carrying value of land and buildings comprises:
2022
2021
£
£
Long leasehold
2,047,873
2,097,873
Land and buildings with a carrying amount of £2,047,873 were revalued on the basis of market value. The valuation conforms to International Valuation Standards and was based on recent market transactions on arm's length terms for similar properties.
Land and buildings are carried at valuation. If land and buildings were measured using the cost model, the carrying amounts would have been approximately £1,677,992 (2021 - £1,727,992), being cost £2,168,282 (2021 - £2,168,282) and depreciation £490,290 (2021 - £440,290).
11
Fixed asset investments
2022
2021
Notes
£
£
Investments in subsidiaries
12
16,558,998
16,558,998
Capital notes in subsidiaries
12
51,161
51,161
16,610,159
16,610,159
PLASSON U.K. LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
11
Fixed asset investments
(Continued)
- 23 -
Movements in fixed asset investments
Shares in group undertakings
Capital notes in group undertakings
Total
£
£
£
Cost or valuation
At 1 January 2022 & 31 December 2022
16,558,998
51,161
16,610,159
Carrying amount
At 31 December 2022
16,558,998
51,161
16,610,159
At 31 December 2021
16,558,998
51,161
16,610,159
12
Subsidiaries
Details of the company's subsidiaries at 31 December 2022 are as follows:
Name of undertaking
Country
Investment at cost
% Held
£
Direct
Plasson Europe Aviculture SAS
France
37,026
100.00
Plasson France SAS
France
1,420,330
100.00
Plasson GmbH
Germany
8,360,832
94.00
Plasson Italia SRL
Italy
3,591,938
100.00
Plasson Spain SLU
Spain
2,587,275
100.00
Plasson Polska Sp.z O.O
Poland
561,597
99.80
The aggregate capital and reserves and the result for the year of the subsidiaries noted above was as follows:
Name of undertaking
Capital and Reserves
Profit/(Loss)
€
€
Plasson Europe Aviculture SAS
(72,911)
(425,790)
Plasson France SAS
12,316,764
1,816,128
Plasson GmbH
6,705,247
2,654,034
Plasson Italia SRL
6,023,625
1,406,281
Plasson Spain SLU
2,332,939
390,364
PLN
PLN
Plasson Polska Sp.z O.O.
4,392,210
566,456
13
Stocks
2022
2021
£
£
Finished goods and goods for resale
3,406,336
2,762,275
PLASSON U.K. LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 24 -
14
Debtors
2022
2021
Amounts falling due within one year:
£
£
Trade debtors
1,597,895
2,034,743
Other debtors
40,195
47,465
Prepayments and accrued income
121,587
76,239
1,759,677
2,158,447
15
Creditors: amounts falling due within one year
2022
2021
£
£
Trade creditors
113,114
135,200
Amounts owed to group undertakings
1,917,992
2,153,725
Corporation tax
131,652
205,094
Other taxation and social security
277,596
255,338
Other creditors
1,027
Accruals and deferred income
201,223
234,741
2,641,577
2,985,125
16
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2022
2021
Balances:
£
£
Accelerated capital allowances
82,765
81,947
Revaluations
87,168
87,168
169,933
169,115
2022
Movements in the year:
£
Liability at 1 January 2022
169,115
Charge to profit or loss
818
Liability at 31 December 2022
169,933
PLASSON U.K. LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 25 -
17
Retirement benefit schemes
2022
2021
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
99,365
130,665
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
18
Share capital
2022
2021
2022
2021
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
15,003,073
15,003,073
15,003,073
15,003,073
19
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2022
2021
£
£
Within one year
33,996
34,103
Between two and five years
33,073
16,103
67,069
50,206
In addition at the reporting end date the total future minimum ground rent payments expected to be payable under non-cancellable subleases was £4,202,685. The ground rent payable is subject to rent review every seven years.
20
Related party transactions
In accordance with FRS 102, paragraph 33.1A, the company is exempt from disclosure of related party transactions as they are with other group companies that are wholly owned within the group.
21
Ultimate controlling party
The company is a wholly owned subsidiary of Plasson Limited. a foreign company incorporated in Israel.
The ultimate parent undertaking and controlling party is Plasson Industries Limited, which prepares group financial statements. Plasson Industries Limited a foreign company registered in Israel and listed on the Tel Aviv Stock Exchange.
2022-12-312022-01-01falseCCH SoftwareCCH Accounts Production 2023.200Mr O BorovskyMrs N DaganMr O HenkinMr G Wexsler058352662022-01-012022-12-3105835266bus:Director12022-01-012022-12-3105835266bus:Director22022-01-012022-12-3105835266bus:Director32022-01-012022-12-3105835266bus:Director42022-01-012022-12-3105835266bus:RegisteredOffice2022-01-012022-12-31058352662022-12-31058352662021-01-012021-12-3105835266core:RetainedEarningsAccumulatedLosses2021-01-012021-12-3105835266core:RetainedEarningsAccumulatedLosses2022-01-012022-12-3105835266core:RevaluationReserve2021-01-012021-12-3105835266core:RevenueReservesInvestmentFundsOnly2021-01-012021-12-31058352662021-12-3105835266core:LandBuildingscore:LeasedAssetsHeldAsLessee2022-12-3105835266core:PlantMachinery2022-12-3105835266core:FurnitureFittings2022-12-3105835266core:ComputerEquipment2022-12-3105835266core:MotorVehicles2022-12-3105835266core:LandBuildingscore:LeasedAssetsHeldAsLessee2021-12-3105835266core:PlantMachinery2021-12-3105835266core:FurnitureFittings2021-12-3105835266core:ComputerEquipment2021-12-3105835266core:MotorVehicles2021-12-3105835266core:CurrentFinancialInstrumentscore:WithinOneYear2022-12-3105835266core:CurrentFinancialInstrumentscore:WithinOneYear2021-12-3105835266core:CurrentFinancialInstruments2022-12-3105835266core:CurrentFinancialInstruments2021-12-3105835266core:ShareCapital2022-12-3105835266core:ShareCapital2021-12-3105835266core:RevaluationReserve2022-12-3105835266core:RevaluationReserve2021-12-3105835266core:RetainedEarningsAccumulatedLosses2022-12-3105835266core:RetainedEarningsAccumulatedLosses2021-12-3105835266core:ShareCapital2020-12-3105835266core:RevaluationReserve2020-12-3105835266core:RetainedEarningsAccumulatedLosses2020-12-3105835266core:LandBuildingscore:LongLeaseholdAssets2022-01-012022-12-3105835266core:PlantMachinery2022-01-012022-12-3105835266core:FurnitureFittings2022-01-012022-12-3105835266core:ComputerEquipment2022-01-012022-12-3105835266core:MotorVehicles2022-01-012022-12-3105835266core:UKTax2022-01-012022-12-3105835266core:UKTax2021-01-012021-12-3105835266core:ForeignTax2022-01-012022-12-3105835266core:ForeignTax2021-01-012021-12-310583526612022-01-012022-12-310583526612021-01-012021-12-3105835266core:LandBuildingscore:LeasedAssetsHeldAsLessee2021-12-3105835266core:PlantMachinery2021-12-3105835266core:FurnitureFittings2021-12-3105835266core:ComputerEquipment2021-12-3105835266core:MotorVehicles2021-12-31058352662021-12-3105835266core:LandBuildingscore:LeasedAssetsHeldAsLessee2022-01-012022-12-3105835266core:LandBuildingscore:LongLeaseholdAssets2022-12-3105835266core:LandBuildingscore:LongLeaseholdAssets2021-12-3105835266core:Non-currentFinancialInstruments2022-12-3105835266core:Non-currentFinancialInstruments2021-12-3105835266core:WithinOneYear2022-12-3105835266core:WithinOneYear2021-12-3105835266core:BetweenTwoFiveYears2022-12-3105835266core:BetweenTwoFiveYears2021-12-3105835266bus:PrivateLimitedCompanyLtd2022-01-012022-12-3105835266bus:FRS1022022-01-012022-12-3105835266bus:Audited2022-01-012022-12-3105835266bus:FullAccounts2022-01-012022-12-31xbrli:purexbrli:sharesiso4217:GBP