Parmelee Limited
Annual report and financial statements
For the year ended 31 December 2022
Parmelee Limited
Company information
Directors
RG Newcomb-Ferreday
TM Lewellen
Secretary
RG Newcomb-Ferreday
Company number
00517490
Registered office
Middlemore Lane West
Aldridge
West Midlands
WS9 8BG
Auditor
DJH Mitten Clarke Audit Limited
3rd Floor
International House
20 Hatherton Street
Walsall
West Midlands
England
WS4 2LA
Parmelee Limited
Contents
Page
Directors' report
1 - 2
Independent auditor's report
3 - 6
Profit and loss account
7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Notes to the financial statements
11 - 22
Parmelee Limited
Directors' report
For the year ended 31 December 2022
- 1 -
The directors of Parmelee Limited (The "Company") present their annual report and the audited financial statements of the Company for the year ended 31 December 2022.
Principal activities
The principal activity of the Company continued to be that of a manufacturer of safety eyewear and wholesale supplier of safety equipment.
Results and dividends
The results for the year are set out on page 7.
No interim dividends were paid during the year (2021: £nil). The directors do not recommend payment of a final dividend (2021: £nil).
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
RG Newcomb-Ferreday
TM Lewellen
Qualifying third party indemnity provisions
Indemnities were in force throughout 2022 and remain in force as at the date of this report, under which Bunzl plc, the ultimate holding company of the Company, has agreed to indemnify the Company’s directors and the Company Secretary to the extent permitted by law and Bunzl plc’s Articles of Association, in respect of all losses arising out of or in connection with the execution of their powers, duties and responsibilities as a director or officer of the Company.
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, comprising FRS 101 "Reduced Disclosure Framework" ("FRS 101"), 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;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
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.
Parmelee Limited
Directors' report (continued)
For the year ended 31 December 2022
- 2 -
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. This confirmation is given and should be interpreted in accordance with the provisions of section 418 of the Companies Act 2006.
Directors Confirmations
Each of the directors, whose names and functions are listed in this report, confirm that to the best of their knowledge, the Company’s financial statements, which have been prepared in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law) including Financial Reporting Standard 101 ‘Reduced Disclosure Framework’, give a true and fair view of the assets, liabilities, financial position and profit of the Company.
Disclosure Exemptions
The Report of the Directors has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemptions as the Company would be eligible for those exemptions had it not been part of an ineligible group.
The Company has also taken advantage of disclosure exemptions available to small companies and not prepared a Strategic Report as the Company would be eligible for those exemptions had it not been part of an ineligible group.
On behalf of the board
RG Newcomb-Ferreday
Director
16 November 2023
Parmelee Limited
Independent auditor's report
To the members of Parmelee Limited
- 3 -
Opinion
We have audited the financial statements of Parmelee Limited (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 101 Reduced Disclosure Framework (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 directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the directors' report has been prepared in accordance with applicable legal requirements.
Parmelee Limited
Independent auditor's report (continued)
To the members of Parmelee Limited
- 4 -
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 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; or
the directors were not entitled to take advantage of the small companies exemption from the requirement to prepare a strategic report.
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.
Parmelee Limited
Independent auditor's report (continued)
To the members of Parmelee Limited
- 5 -
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:
the engagement partner 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 discussions with directors and other management, and from our commercial knowledge and experience of the company;
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 throughout 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.
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; and
assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias.
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;
reading the minutes of meetings of those charged with governance;
enquiring of management as to actual and potential litigation and claims; and
reviewing correspondence with HMRC, relevant regulators including the Health and Safety Executive, and the company’s legal advisors.
There are inherent limitations in our audit procedures described above. The more removed that 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 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 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.
Parmelee Limited
Independent auditor's report (continued)
To the members of Parmelee Limited
- 6 -
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.
John Davis (Senior Statutory Auditor)
For and on behalf of DJH Mitten Clarke Audit Limited
17 November 2023
Chartered Accountants
Statutory Auditor
3rd Floor
International House
20 Hatherton Street
Walsall
West Midlands
England
WS4 2LA
Parmelee Limited
Profit and loss account
For the year ended 31 December 2022
- 7 -
2022
2021
Notes
£
£
Turnover
3
8,233,787
6,823,212
Cost of sales
(6,785,039)
(5,524,365)
Gross profit
1,448,748
1,298,847
Distribution costs
(405,871)
(407,967)
Administrative expenses
(704,671)
(631,270)
Operating profit
4
338,206
259,610
Interest payable and similar expenses
7
(141,351)
(96,148)
Profit before taxation
196,855
163,462
Tax on profit
8
(37,402)
(19,979)
Profit for the financial year
20
159,453
143,483
Parmelee Limited
Statement of comprehensive income
For the year ended 31 December 2022
- 8 -
2022
2021
£
£
Profit for the year
159,453
143,483
Other comprehensive income:
Items that will not be reclassified to profit or loss
Revaluation of tangible fixed assets
471,545
Tax relating to items not reclassified
(81,390)
Total items that will not be reclassified to profit or loss
390,155
Total comprehensive income for the year
549,608
143,483
Parmelee Limited
Balance sheet
As at 31 December 2022
- 9 -
2022
2021
Notes
£
£
£
£
Fixed assets
Tangible fixed assets
9
1,044,710
603,858
Investments
10
992,067
992,067
2,036,777
1,595,925
Current assets
Stocks
12
2,067,030
1,590,032
Debtors
13
3,681,222
3,299,933
Cash at bank and in hand
1,138,195
957,572
6,886,447
5,847,537
Creditors: amounts falling due within one year
14
(5,601,302)
(4,749,738)
Net current assets
1,285,145
1,097,799
Total assets less current liabilities
3,321,922
2,693,724
Provisions for liabilities
Deferred tax liabilities
16
(88,090)
(9,500)
Net assets
3,233,832
2,684,224
Capital and reserves
Called up share capital
18
2,000
2,000
Revaluation reserve
19
741,122
350,967
Profit and loss reserves
20
2,490,710
2,331,257
Total equity
3,233,832
2,684,224
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 16 November 2023 and are signed on its behalf by:
RG Newcomb-Ferreday
Director
Company registration number 00517490 (England and Wales)
Parmelee Limited
Statement of changes in equity
For the year ended 31 December 2022
- 10 -
Share capital
Revaluation reserve
Profit and loss reserves
Total
£
£
£
£
Balance at 1 January 2021
2,000
356,063
2,182,678
2,540,741
Year ended 31 December 2021:
Profit and total comprehensive income for the year
-
-
143,483
143,483
Transactions with owners in their capacity as owners:
Transfer to revaluation reserve
-
(5,096)
5,096
-
Balance at 31 December 2021
2,000
350,967
2,331,257
2,684,224
Year ended 31 December 2022:
Profit for the year
-
-
159,453
159,453
Other comprehensive income:
Revaluation of tangible fixed assets
-
471,545
-
471,545
Tax relating to other comprehensive income
-
(81,390)
(81,390)
Total comprehensive income for the year
-
390,155
159,453
549,608
Balance at 31 December 2022
2,000
741,122
2,490,710
3,233,832
Parmelee Limited
Notes to the financial statements
For the year ended 31 December 2022
- 11 -
1
Accounting policies
Company information
Parmelee Limited is a private company limited by shares incorporated in England and Wales. The registered office is Middlemore Lane West, Aldridge, West Midlands, WS9 8BG. The company's principal activities and nature of its operations are disclosed in the Directors' report.
1.1
Accounting convention
The financial statements have been prepared in accordance with Financial Reporting Standard 101 Reduced Disclosure Framework (FRS 101) and in accordance with applicable accounting standards.
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, except for the revaluation of certain assets. The principal accounting policies adopted are set out below.
As permitted by FRS 101, the company has taken advantage of the following disclosure exemptions from the requirements of IFRS:
the requirements of paragraphs 45(b) and 46 to 52 of IFRS 2 Share-based Payment;
the requirements of paragraphs 62, B64(d), B64(e), B64(g), B64(h), B64(j) to B64(m), B64(n)(ii), B64(o)(ii), B64(p), B64(q)(ii), B66 and B67 of IFRS 3 Business Combinations;
the requirements of paragraph 33(c) of IFRS 5 Non Current Assets Held for Sale and Discontinued Operations;
the requirements of paragraph 24(6) of IFRS 6 Exploration for and Evaluation of Mineral Resources;
the requirements of IFRS 7 Financial Instruments: Disclosures;
the requirements of paragraphs 91 to 99 of IFRS 13 Fair Value Measurement;
the requirements of paragraph 52, the second sentence of paragraph 89, and paragraphs 90, 91 and 93 of IFRS 16 Leases;
the requirements of paragraph 58 of IFRS 16;
the requirements of the second sentence of paragraph 110 and paragraphs 113(a), 114, 115, 118, 119(a) to (c), 120 to 127 and 129 of IFRS 15 Revenue from Contracts with Customers;
the requirement in paragraph 38 of IAS 1 Presentation of Financial Statements to present comparative information in respect of:
paragraph 79(a)(iv) of IAS 1;
paragraph 73(e) of IAS 16 Property, Plant and Equipment;
paragraph 118(e) of IAS 38 Intangible Assets;
paragraphs 76 and 79(d) of IAS 40 Investment Property; and
paragraph 50 of IAS 41 Agriculture;
the requirements of paragraphs 10(d), 10)(f), 16, 38A, 38B, 38C, 38D, 40A, 40B, 40C, 40D and 111 of IAS 1 Presentation of Financial Statements;
the requirements of paragraphs 134 to 136 of IAS 1 Presentation of Financial Statements;
the requirements of IAS 7 Statement of Cash Flows;
the requirements of paragraphs 30 and 31 of IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors;
the requirements of paragraphs 17 and 18A of IAS 24 Related Party Disclosures;
the requirements in IAS 24 Related Party Disclosures to disclose related party transactions entered into between two or more members of a group; and
the requirements of paragraphs 134(d) to 134(f) and 135(c) to 135(e) of IAS 36 Impairments of Assets.
Parmelee Limited
Notes to the financial statements (continued)
For the year ended 31 December 2022
1
Accounting policies
(Continued)
- 12 -
Parmelee Limited is a wholly owned subsidiary of Bunzl Holding LCE Limited and of its ultimate parent Bunzl plc which is incorporated in the UK and the results of Parmelee Limited are included in the consolidated financial statements of Bunzl plc which are available from its registered office York House, 45 Seymour Street, London, W1H 7JT. Bunzl plc is the smallest and largest company to consolidate the financial statements.
Therefore, the company has taken advantage of the exemption under section 400 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.
1.2
Turnover
Turnover is measured based on the consideration specified in a contract with a customer and excludes amounts collected on behalf of third parties. The company recognises revenue when it transfers control of a product or service to a customer.
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.
The nature, timing of satisfaction of performance obligations and significant payment terms of the company's major sources of revenue are as follows:
1.3
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:
Freehold land and buildings
at varying rates on cost
Fixtures and fittings
10% - 25% on cost
Plant and equipment
10% - 25% on cost
1.4
Impairment of tangible and intangible assets
At each reporting 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.
Parmelee Limited
Notes to the financial statements (continued)
For the year ended 31 December 2022
1
Accounting policies
(Continued)
- 13 -
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.
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.
1.5
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.
Net realisable value is the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution.
1.6
Cash at bank and in hand
Cash and cash equivalents 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.
1.7
Financial assets
Financial assets are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument. Financial assets are classified into specified categories, depending on the nature and purpose of the financial assets.
At initial recognition, financial assets classified as fair value through profit and loss are measured at fair value and any transaction costs are recognised in profit or loss. Financial assets not classified as fair value through profit and loss are initially measured at fair value plus transaction costs.
Financial assets at fair value through profit or loss
When any of the above-mentioned conditions for classification of financial assets is not met, a financial asset is classified as measured at fair value through profit or loss. Financial assets measured at fair value through profit or loss are recognized initially at fair value and any transaction costs are recognised in profit or loss when incurred. A gain or loss on a financial asset measured at fair value through profit or loss is recognised in profit or loss, and is included within finance income or finance costs in the statement of income for the reporting period in which it arises.
Parmelee Limited
Notes to the financial statements (continued)
For the year ended 31 December 2022
1
Accounting policies
(Continued)
- 14 -
Financial assets held at amortised cost
Financial instruments are classified as financial assets measured at amortised cost where the objective is to hold these assets in order to collect contractual cash flows, and the contractual cash flows are solely payments of principal and interest. They arise principally from the provision of goods and services to customers (eg trade receivables). They are initially recognised at fair value plus transaction costs directly attributable to their acquisition or issue, and are subsequently carried at amortised cost using the effective interest rate method, less provision for impairment where necessary.
Financial assets at fair value through other comprehensive income
Debt instruments are classified as financial assets measured at fair value through other comprehensive income where the financial assets are held within the company’s business model whose objective is achieved by both collecting contractual cash flows and selling financial assets, and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.
A debt instrument measured at fair value through other comprehensive income is recognised initially at fair value plus transaction costs directly attributable to the asset. After initial recognition, each asset is measured at fair value, with changes in fair value included in other comprehensive income. Accumulated gains or losses recognised through other comprehensive income are directly transferred to profit or loss when the debt instrument is derecognised.
The company has made an irrevocable election to recognize changes in fair value of investments in equity instruments through other comprehensive income, not through profit or loss. A gain or loss from fair value changes will be shown in other comprehensive income and will not be reclassified subsequently to profit or loss. Equity instruments measured at fair value through other comprehensive income are recognized initially at fair value plus transaction cost directly attributable to the asset. After initial recognition, each asset is measured at fair value, with changes in fair value included in other comprehensive income. Accumulated gains or losses recognized through other comprehensive income are directly transferred to retained earnings when the equity instrument is derecognized or its fair value substantially decreased. Dividends are recognized as finance income in profit or loss.
Impairment of financial assets
The expected credit losses associated with these assets are estimated on a forward-looking basis. A broad range of information is considered when assessing credit risk and measuring expected credit losses, including past events, current conditions, and reasonable and supportable forecasts that affect the expected collectability of the future cash flows of the instrument.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership to another entity.
1.8
Financial liabilities
The company recognises financial debt when the company becomes a party to the contractual provisions of the instruments. Financial liabilities are classified as either 'financial liabilities at fair value through profit or loss' or 'other financial liabilities'.
Parmelee Limited
Notes to the financial statements (continued)
For the year ended 31 December 2022
1
Accounting policies
(Continued)
- 15 -
Other financial liabilities
Other financial liabilities, including borrowings, trade payables and other short-term monetary liabilities, are initially measured at fair value net of transaction costs directly attributable to the issuance of the financial liability. They are subsequently measured at amortised cost using the effective interest method. For the purposes of each financial liability, interest expense includes initial transaction costs and any premium payable on redemption, as well as any interest or coupon payable while the liability is outstanding.
Derecognition of financial liabilities
Financial liabilities are derecognised when, and only when, the company’s obligations are discharged, cancelled, or they expire.
1.9
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.10
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 is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit, and is accounted for using the balance sheet liability method. Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised. Such assets and liabilities are not recognised if the temporary 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.
Parmelee Limited
Notes to the financial statements (continued)
For the year ended 31 December 2022
1
Accounting policies
(Continued)
- 16 -
1.11
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 inventories 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.
1.12
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.13
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
2
Critical accounting estimates and judgements
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, if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are outlined below.
Key sources of estimation uncertainty
Property Valuation
Property valuation has been estimated by management. The last revaluation took place in 2022 .
3
Turnover
2022
2021
£
£
Turnover analysed by class of business
Sale of goods
8,233,787
6,823,212
Parmelee Limited
Notes to the financial statements (continued)
For the year ended 31 December 2022
- 17 -
4
Operating profit
2022
2021
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange (gains)/losses
(21,951)
33,703
Depreciation of property, plant and equipment
35,173
29,801
Cost of inventories recognised as an expense
6,438,389
5,285,417
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2022
2021
Number
Number
Directors
2
2
Employees
26
26
Total
28
28
Their aggregate remuneration comprised:
2022
2021
£
£
Wages and salaries
847,418
820,227
Social security costs
11,128
11,219
Pension costs
64,850
37,847
923,396
869,293
6
Directors' remuneration
2022
2021
£
£
Remuneration for qualifying services
165,372
141,626
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2021 - 1).
7
Interest payable and similar expenses
2022
2021
£
£
Interest on financial liabilities measured at amortised cost:
Interest payable to group undertakings
141,351
96,148
Parmelee Limited
Notes to the financial statements (continued)
For the year ended 31 December 2022
- 18 -
8
Taxation
2022
2021
£
£
Current tax
UK corporation tax on profits for the current period
37,402
19,979
The charge for the year can be reconciled to the profit per the profit and loss account as follows:
2022
2021
£
£
Profit before taxation
196,855
163,462
Expected tax charge based on a corporation tax rate of 19.00% (2021: 19.00%)
37,402
31,058
Under/(over) provided in prior years
-
(11,079)
Taxation charge for the year
37,402
19,979
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
81,390
-
9
Tangible fixed assets
Freehold land and buildings
Plant and equipment
Fixtures and fittings
Total
£
£
£
£
Cost or valuation
At 1 January 2022
703,223
392,513
171,475
1,267,211
Additions
4,480
4,480
Revaluation increase
292,297
292,297
At 31 December 2022
1,000,000
392,513
171,475
1,563,988
Accumulated depreciation and impairment
At 1 January 2022
164,932
361,244
137,177
663,353
Charge for the year
14,316
4,648
16,209
35,173
Eliminated on revaluation
(179,248)
(179,248)
At 31 December 2022
365,892
153,386
519,278
Parmelee Limited
Notes to the financial statements (continued)
For the year ended 31 December 2022
9
Tangible fixed assets
Freehold land and buildings
Plant and equipment
Fixtures and fittings
Total
£
£
£
£
(Continued)
- 19 -
Carrying amount
At 31 December 2022
1,000,000
26,621
18,089
1,044,710
At 31 December 2021
538,291
31,269
34,298
603,858
Included in valuation of land and buildings is freehold land of £195,000 (2021 - £110,000) which is not depreciated.
Land and buildings were revalued at 31st December 2022 by the Directors on the basis of market value. Therefore, included in the cost of Freehold land and buildings is £1,000,000 at valuation in 2022.
The following assets are carried at valuation. If the assets were measured using the cost model, the carrying amounts would be as follows:
Included in cost of land and buildings is freehold land of £30,000 (2021 - £30,000)
Freehold land and buildings
2022
2021
£
£
Cost
360,774
360,774
Accumulated depreciation
(169,891)
(163,276)
Carrying value
190,883
197,498
10
Investments
Current
Non-current
2022
2021
2022
2021
£
£
£
£
Investments in subsidiaries
-
-
992,067
992,067
Fair value of financial assets carried at amortised cost
Except as detailed below the directors believe that the carrying amounts of financial assets carried at amortised cost in the financial statements approximate to their fair values.
11
Subsidiaries
Details of the company's subsidiaries at 31 December 2022 are as follows:
Parmelee Limited
Notes to the financial statements (continued)
For the year ended 31 December 2022
11
Subsidiaries
(Continued)
- 20 -
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
MCR Safety Europe BV
Keizersgracht 241, 1016EA, Amsterdam, Netherlands
Ordinary shares
100.00
Tornado Holdings Ltd
Middlemore Lane West, Aldridge,Walsall, WS9 8BG, England
Odrinary shares
100.00
Tornado Gloves Ltd (i)
Middlemore Lane West, Aldridge,Walsall, WS9 8BG, England
Ordinary shares
100.00
(i) Indirectly held by the Company
12
Stocks
2022
2021
£
£
Raw materials
115,951
101,916
Work in progress
4,653
2,253
Finished goods
1,946,426
1,485,863
2,067,030
1,590,032
13
Debtors
2022
2021
£
£
Trade debtors
1,368,834
1,067,470
Provision for bad and doubtful debts
-
(10,000)
1,368,834
1,057,470
Amounts owed by subsidiary undertakings
2,129,198
2,207,240
Amounts owed by fellow group undertakings
169,309
Prepayments and accrued income
13,881
35,223
3,681,222
3,299,933
14
Creditors
2022
2021
Notes
£
£
Creditors
15
5,510,493
4,578,658
Corporation tax
21,188
19,789
Other taxation and social security
69,621
151,291
5,601,302
4,749,738
Parmelee Limited
Notes to the financial statements (continued)
For the year ended 31 December 2022
- 21 -
15
Creditors
2022
2021
£
£
Trade creditors
933,933
321,664
Amounts owed to fellow group undertakings
4,460,257
4,177,080
Accruals and deferred income
54,831
45,317
Other creditors
61,472
34,597
5,510,493
4,578,658
16
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon during the current and prior reporting period.
ACAs
£
Balance at 1 January 2021
Deferred tax movements in prior year
Charge/(credit) to profit or loss
9,500
Liability at 1 January 2022
9,500
Deferred tax movements in current year
Charge/(credit) to profit or loss
(2,800)
Other
81,390
Liability at 31 December 2022
88,090
17
Retirement benefit schemes
2022
2021
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
64,850
37,847
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
2,000
2,000
2,000
2,000
Parmelee Limited
Notes to the financial statements (continued)
For the year ended 31 December 2022
- 22 -
19
Revaluation reserve
2022
2021
£
£
At the beginning of the year
350,967
356,063
Revaluation surplus arising in the year
471,545
Deferred tax on revaluation of PPE
(81,390)
-
Transfer to retained earnings
(5,096)
At the end of the year
741,122
350,967
20
Profit and loss reserves
2022
2021
£
£
At the beginning of the year
2,331,257
2,182,678
Profit for the year
159,453
143,483
Transfer from revaluation reserve
5,096
At the end of the year
2,490,710
2,331,257
21
Controlling party
The company's ultimate parent company is Bunzl plc, a company incorporated in England & Wales.
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