Company registration number 03380171 (England and Wales)
PERRIN GROUP HOLDINGS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
LB GROUP
The Octagon Suite E2
2nd Floor Middleborough
Colchester
Essex
CO1 1TG
PERRIN GROUP HOLDINGS LIMITED
COMPANY INFORMATION
Director
Mr A C Perrin
Secretary
Mrs T J Perrin
Company number
03380171
Registered office
Hemisphere House
56-65 White House Road
Ipswich
Suffolk
UK
IP1 5PB
Auditor
LB Group (Colchester)
The Octagon Suite E2
2nd Floor Middleborough
Colchester
Essex
CO1 1TG
PERRIN GROUP HOLDINGS LIMITED
CONTENTS
Page
Strategic report
1 - 3
Director's report
4
Director's responsibilities statement
5
Independent auditor's report
6 - 8
Group statement of comprehensive income
9
Group statement of financial position
10
Company statement of financial position
11
Group statement of changes in equity
12
Company statement of changes in equity
13
Group statement of cash flows
14
Notes to the financial statements
15 - 35
PERRIN GROUP HOLDINGS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2023
- 1 -

The director presents the strategic report for the year ended 30 June 2023.

Review of the business

The Directors aim to provide a balanced and comprehensive review of the development and performance of the business during the year and its position at the year end.

 

During the year the group turnover has decreased by 21% (2022: increase 62%) and achieved a gross profit margin of 26.6% (2022: 19.1%).

Principal risks and uncertainties

The main risk to the group continues to be the general condition of the economy but the directors are confident that the group is well placed to deal with any issues as they arise, given the increased strength of the group's balance sheet.

Development and performance

The company's aim is to achieve growth in terms of market share and profitability in future years.

Key performance indicators

Given the straight forward nature of the business, the company's directors are of the opinion that a more detailed analysis, using key performance indicators, is not necessary to understand the development, performance or position of the business.

Going concern

The group had traded extremely well in the year considering the challenges that the economy has presented, shown by a continuing increase in turnover.

 

Brexit has created many obstacles to overcome but the group was well prepared and has been able to guide customers through the process which has helped to strengthen our relationships and open up more opportunities.

 

Future Developments

As a group we are currently preparing to open a new multi-million-pound warehouse in Suffolk which will enable expansion of our warehousing services in 2024. This will enable us to provide 34,750 racked pallet locations, which stack nine levels high, and an additional 8,000 bulk loaded pallets on floors and mezzanines.

 

Post balance sheet events

On 27 November 2023, Hemisphere Freight Services purchased the warehousing and freight forwarding elements of Magnus Group, including the associated operations staff, after the company announced that they were intending to appoint administrators. Our team will utilise the warehousing space available as part of this purchase for six months in the build up to our new site opening.

PERRIN GROUP HOLDINGS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 2 -
Section 172 Statement

During the year, the Directors have acted to promote the success of the Company for the benefit of its members as a whole.

 

Throughout the year, while discharging their duties, section 172 requires a Director to have regard to, among other matters, the;

 

■ Likely long-term consequences of any decisions made

■ Interests of the Company’s employees

■ Business relationships with suppliers and customers

■ Impact on the community and environment of the company's operations

■ Reputation for high standards of business conduct and

■ Need to act fairly between members of the company

 

The Directors act in good faith, to promote the success of the company for the benefit of its members as a whole.

 

Key to our Company’s success is the dedication of our team and in this regard their development and well-being is fundamental.

Our HR Manager, Department Heads and Members of our Senior Management Teams continually monitor and communicate on our ever evolving policies and procedures. Our training and educational programs are continuous and these are not purely vocational in terms of our service offerings, but also geared towards the well-being of our team and as one example of this, we have had team members trained beyond general first aid to also become Mental Health First Aiders, which is something as a Company we feel a responsibility to not only provide, but also to enhance and evolve as we grow as a business.

Providing Team members with not only official channels of communication with Management but also access to their qualified peers is important as indeed is having an open door policy throughout our organization and providing opportunities through annual one to one appraisals for Team Members to discuss their employment and development as required.

As and when new opportunities arise and new positions are created, generally these are where possible always advertised internally, providing everyone with an opportunity to consider and apply and the process for considering such applications is we believe very fair and inclusive and in all cases, applicants are provided with feedback whether successful or not. In the case of the latter, the idea is to ensure that our Team are not discouraged from putting themselves forward for any and all opportunities presented, even if they may not have been successful previously.

Communication is paramount in all cases as indeed is keeping our team appraised and in this regard, we not only send out a general update in December, but also our fiscal year end in June and in between times we communicate regularly with any adhoc news which is worthy of an announcement and of course our Team have access to Company social medial posts as well as news via our company website. We also stage and host regular social gatherings for our Team as well as encouraging and supporting our Team in participating in events or taking on challenges in aid of charitable causes. All in all we strive to be a well-rounded employer who invests in our Team both within the workplace as well as beyond, always striving to enrich our Team members experiences as best we can.

 

The relationship we enjoy with our Team spills over to the experience that our clients and suppliers receive in terms of customer service and often we are complimented on the fact that irrespective of circumstance when dealing with our Company, they are always greeted with a very positive and professional attitude. Irrespective of whether a client, supplier or associate, we take pride in conducting ourselves with the utmost honesty and integrity.

 

Our company continues to support local good causes, yours truly is a long standing patron of one such local charity Inspire Suffolk, we also as previously mentioned encourage and support our Team members to take part in challenges often fund raising for local and national good causes and we also support clients, suppliers and other associates who do similar.

 

We also take our environmental policies seriously, our new warehouse facility coming on stream in Q1 2024 will be as close to carbon neutral as is possible both in terms of structure and equipment utilization. We are also installing Solar at our White House Road HQ site and further evaluating and where possible enhancing all of our sites green credentials.

PERRIN GROUP HOLDINGS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 3 -

As a closing summary, we have great confidence in our abilities to provide our growing client base with unparalleled service in our 34 year history, during this time we have dealt with instability in financial markets, global financial crashes, UK and global recessions of varying magnitudes, Brexit and Covid in combination and having ridden all storms, we have adapted and been resilient throughout.

 

Our business is growing year on year, we are extremely pro-active in the development of our systems, processes and service offerings, our staff retention and our ability to attract new staff is second to none, in the main due to our industry wide reputation and in particular a strong ethos towards staff wellbeing, training and progression. As a consequence our entire team is extremely loyal, dedicated and enthusiastic and with continued investment not only in our team, but also our infrastructure and resource, we are well placed and able to push our business forwards positively.

On behalf of the board

Mr A C Perrin
Director
1 February 2024
PERRIN GROUP HOLDINGS LIMITED
DIRECTOR'S REPORT
FOR THE YEAR ENDED 30 JUNE 2023
- 4 -

The director presents his annual report and financial statements for the year ended 30 June 2023.

Principal activities

The principal activity of the company and group continued to be that of a haulage and logistics provider.

Results and dividends

The results for the year are set out on page 9.

Ordinary dividends were paid amounting to £295,000. The director does not recommend payment of a further dividend.

Director

The director who held office during the year and up to the date of signature of the financial statements was as follows:

Mr A C Perrin
Auditor

The auditor, LB Group (Colchester), is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Energy and carbon report

No individual companies within the group are classified as large companies and therefore the group are not required to report on its emissions, energy consumption or energy efficiency activities.

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 auditor of the company 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 auditor of the company is aware of that information.

Strategic Report

The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of future developments and post balance sheet events.

On behalf of the board
Mr A C Perrin
Director
1 February 2024
PERRIN GROUP HOLDINGS LIMITED
DIRECTOR'S RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 JUNE 2023
- 5 -

The director is responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the director is required to:

 

 

The director is responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and company and enable them to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

PERRIN GROUP HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF PERRIN GROUP HOLDINGS LIMITED
- 6 -
Opinion

We have audited the financial statements of Perrin Group Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 June 2023 which comprise the group statement of comprehensive income, the group statement of financial position, the company statement of financial position, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows 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:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent 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 director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and parent company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

Our responsibilities and the responsibilities of the director with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The director is 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:

PERRIN GROUP HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF PERRIN GROUP HOLDINGS LIMITED
- 7 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the director's 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:

Responsibilities of director

As explained more fully in the director's responsibilities statement, the director is 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 director determines 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 director is responsible for assessing the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the director either intends to liquidate the parent company or to cease operations, or has 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.

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 assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

PERRIN GROUP HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF PERRIN GROUP HOLDINGS LIMITED
- 8 -

To address the risk of fraud through management bias and override of controls, we:

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

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.

Use of our report

This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in 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.

Shaun Roberts (Senior Statutory Auditor)
For and on behalf of LB Group (Colchester)
1 February 2024
Chartered Accountants
Statutory Auditor
The Octagon Suite E2
2nd Floor Middleborough
Colchester
Essex
CO1 1TG
PERRIN GROUP HOLDINGS LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2023
- 9 -
2023
2022
Notes
£
£
Turnover
3
54,881,667
69,174,826
Cost of sales
(40,304,385)
(55,982,597)
Gross profit
14,577,282
13,192,229
Administrative expenses
(12,640,034)
(10,970,348)
Other operating income
-
3,407
Operating profit
4
1,937,248
2,225,288
Interest payable and similar expenses
7
(184,997)
(120,901)
Amounts written off investments
-
6,124
Profit before taxation
1,752,251
2,110,511
Tax on profit
8
(223,489)
(464,008)
Profit for the financial year
26
1,528,762
1,646,503
Other comprehensive income
Revaluation of tangible fixed assets
-
0
1,490,000
Tax relating to other comprehensive income
-
0
(370,354)
Total comprehensive income for the year
1,528,762
2,766,149
Profit for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.

The income statement has been prepared on the basis that all operations are continuing operations.

PERRIN GROUP HOLDINGS LIMITED
GROUP STATEMENT OF FINANCIAL POSITION
AS AT
30 JUNE 2023
30 June 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
12
11,898,757
11,370,514
Investments
13
164,292
100,600
12,063,049
11,471,114
Current assets
Stocks
44,263
37,471
Debtors
17
6,988,146
11,277,649
Cash at bank and in hand
2,559,235
205,561
9,591,644
11,520,681
Creditors: amounts falling due within one year
18
(8,245,813)
(10,443,659)
Net current assets
1,345,831
1,077,022
Total assets less current liabilities
13,408,880
12,548,136
Creditors: amounts falling due after more than one year
19
(3,005,268)
(3,489,211)
Provisions for liabilities
Deferred tax liability
22
1,600,999
1,488,587
(1,600,999)
(1,488,587)
Net assets
8,802,613
7,570,338
Capital and reserves
Called up share capital
25
10,102
10,102
Share premium account
26
10,835
10,835
Revaluation reserve
26
3,474,646
3,474,646
Other reserves
26
10,456
11,942
Profit and loss reserves
26
5,296,574
4,062,813
Total equity
8,802,613
7,570,338
The financial statements were approved and signed by the director and authorised for issue on 1 February 2024
01 February 2024
Mr A C Perrin
Director
Company registration number 03380171 (England and Wales)
PERRIN GROUP HOLDINGS LIMITED
COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2023
30 June 2023
- 11 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
12
8,812,275
8,823,357
Investments
13
564,394
500,702
9,376,669
9,324,059
Current assets
Debtors
17
68,347
-
0
Creditors: amounts falling due within one year
18
(1,777,897)
(1,205,941)
Net current liabilities
(1,709,550)
(1,205,941)
Total assets less current liabilities
7,667,119
8,118,118
Creditors: amounts falling due after more than one year
19
(1,911,459)
(2,295,818)
Provisions for liabilities
Deferred tax liability
22
1,158,050
1,159,335
(1,158,050)
(1,159,335)
Net assets
4,597,610
4,662,965
Capital and reserves
Called up share capital
25
10,102
10,102
Revaluation reserve
26
3,474,646
3,474,646
Profit and loss reserves
26
1,112,862
1,178,217
Total equity
4,597,610
4,662,965

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £229,645 (2022 - £352,419 profit).

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 and signed by the director and authorised for issue on 1 February 2024
01 February 2024
Mr A C Perrin
Director
Company registration number 03380171 (England and Wales)
PERRIN GROUP HOLDINGS LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2023
- 12 -
Share capital
Share premium account
Revaluation reserve
Other reserves
Profit and loss reserves
Total
Notes
£
£
£
£
£
£
Balance at 1 July 2021
10,102
10,835
2,355,000
10,842
2,582,109
4,968,888
Year ended 30 June 2022:
Profit for the year
-
-
-
-
1,646,503
1,646,503
Other comprehensive income:
Revaluation of tangible fixed assets
-
-
1,490,000
-
-
1,490,000
Tax relating to other comprehensive income
-
-
(370,354)
-
-
0
(370,354)
Total comprehensive income for the year
-
-
1,119,646
-
1,646,503
2,766,149
Dividends
9
-
-
-
-
(165,800)
(165,800)
Transfers
-
-
-
1,098
-
1,098
Balance at 30 June 2022
10,102
10,835
3,474,646
11,942
4,062,811
7,570,338
Year ended 30 June 2023:
Profit for the year
-
-
-
-
1,528,762
1,528,762
Other comprehensive income:
Total comprehensive income for the year
-
-
-
-
1,528,762
1,528,762
Dividends
9
-
-
-
-
(295,000)
Transfers
-
-
-
2,004
-
2,004
Balance at 30 June 2023
10,102
10,835
3,474,646
10,457
5,296,573
8,802,611
PERRIN GROUP HOLDINGS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2023
- 13 -
Share capital
Revaluation reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 July 2021
10,102
2,355,000
991,598
3,356,700
Year ended 30 June 2022:
Profit for the year
-
-
352,419
352,419
Other comprehensive income:
Revaluation of tangible fixed assets
-
1,490,000
-
1,490,000
Tax relating to other comprehensive income
-
(370,354)
-
0
(370,354)
Total comprehensive income
-
1,119,646
352,419
1,472,065
Dividends
9
-
-
(165,800)
(165,800)
Balance at 30 June 2022
10,102
3,474,646
1,178,217
4,662,965
Year ended 30 June 2023:
Profit and total comprehensive income
-
-
229,645
229,645
Dividends
9
-
-
(295,000)
(295,000)
Balance at 30 June 2023
10,102
3,474,646
1,112,862
4,597,610
PERRIN GROUP HOLDINGS LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2023
- 14 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
31
5,199,527
914,567
Interest paid
(184,997)
(120,901)
Income taxes paid
(329,754)
(184,776)
Net cash inflow from operating activities
4,684,776
608,890
Investing activities
Purchase of tangible fixed assets
(656,523)
(270,374)
Proceeds from disposal of tangible fixed assets
24,372
9,311
Purchase of further shares in associate
(63,692)
-
Purchase of joint ventures
-
(100)
Repayment of loans
73,098
(13,676)
Net cash used in investing activities
(622,745)
(274,839)
Financing activities
Repayment of bank loans
(467,236)
(309,461)
Payment of finance leases obligations
(412,290)
(177,344)
Dividends paid to equity shareholders
(295,000)
(165,800)
Net cash used in financing activities
(1,174,526)
(652,605)
Net increase/(decrease) in cash and cash equivalents
2,887,505
(318,554)
Cash and cash equivalents at beginning of year
(335,198)
(16,539)
Effect of foreign exchange rates
6,928
(105)
Cash and cash equivalents at end of year
2,559,235
(335,198)
Relating to:
Cash at bank and in hand
2,559,235
205,561
Bank overdrafts included in creditors payable within one year
-
(540,759)
PERRIN GROUP HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
- 15 -
1
Accounting policies
Company information

Perrin Group Holdings Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Hemisphere House, 53-65 White House Road, Ipswich, Suffolk, UK, IP1 5PB.

 

The group consists of Perrin Group Holdings Limited and all of its subsidiaries.

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.

The 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 for parent company information presented within the consolidated financial statements:

 

1.2
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

PERRIN GROUP HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
1
Accounting policies
(Continued)
- 16 -
1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Perrin Group Holdings Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 30 June 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.

1.4
Going concern

At the time of approving the financial statements, the director has no concerns over the groups ability to continue trading for at least 12 months from the date of signing the financial statements. Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements.

1.5
Turnover

Turnover represents amounts receivable for goods and services net of VAT and trade discounts.

 

Revenue is recognised once the company fulfils their obligations to the customer in respect of the transit.

 

Hemisphere Freight Services Limited, a member of the group, operates three broad streams of revenue by way of export, import and domestic freight handling operations. The company also earns revenue from warehousing operation.

1.6
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 5 years.

1.7
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.

PERRIN GROUP HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
1
Accounting policies
(Continued)
- 17 -

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:

Feeehold property
4 - 20 years straight line
Improvements to leasehold property
10 to 20 years straight line
Plant and machinery
10% to 50% straight line
Fixtures and fittings
15% to 30% straight line
Motor vehicles
16.67% to 25% straight line

Freehold land and assets in the course of construction are not depreciated.

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 recognised in the income statement.

1.8
Fixed asset investments

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. 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 group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

1.9
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible 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.

PERRIN GROUP HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
1
Accounting policies
(Continued)
- 18 -
1.10
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.

1.11
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.

1.12
Financial instruments

The group 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 group's statement of financial position when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and 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.

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.

PERRIN GROUP HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
1
Accounting policies
(Continued)
- 19 -
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 group 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 group 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.

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.

PERRIN GROUP HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
1
Accounting policies
(Continued)
- 20 -
1.13
Equity instruments

Equity instruments issued by the group 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 group.

1.14
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 income statement 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 group’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 income statement, 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 if, and only if, there is 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.

1.15
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.

1.16
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.17
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the statement of financial position as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

PERRIN GROUP HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
1
Accounting policies
(Continued)
- 21 -

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 leased asset are consumed.

1.18
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.

1.19
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.

When translating the financial statements of a foreign subsidiary the statement of financial position is translated at the rates prevailing on the reporting end date. The income statement is translated using the average rate for the year with any differences arising on exchange recognised as other comprehensive income in a non-distributable other reserve.

2
Judgements and key sources of estimation uncertainty

In the application of the group’s accounting policies, the director is 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.

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.

Property Valuation

The investment property has been valued based off a professional third party recommendation. This involves significant judgement based off market rates and is reviewed by the directors each year.

Job Accruals

This relates to jobs which are yet to be invoiced. These costs are estimated by management based on the assumed total cost. Any job accrued for which does not clear within twelve months is written off.

PERRIN GROUP HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 22 -
3
Turnover

An analysis of the group's turnover is as follows:

2023
2022
£
£
Turnover analysed by class of business
Rendering of services
54,881,668
69,174,827
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
11,353,564
10,215,287
Overseas
43,528,104
58,959,540
54,881,668
69,174,827
4
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange losses
81,382
68,672
Depreciation of owned tangible fixed assets
272,090
287,789
Depreciation of tangible fixed assets held under finance leases
345,548
247,695
Profit on disposal of tangible fixed assets
(3,907)
-
Impairment of intangible assets
-
0
37,614
Operating lease charges
618,564
522,072
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
5,850
4,750
Audit of the financial statements of the company's subsidiaries
16,000
13,150
21,850
17,900
For other services
Other assurance services
7,650
10,525
Taxation compliance services
1,600
1,000
9,250
11,525
PERRIN GROUP HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 23 -
6
Employees

The average monthly number of persons (including directors) employed by the group and company during the year was:

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
Number of distribution staff
55
27
-
-
Number of administrative staff
73
97
-
-
Number of management staff
21
6
2
1
Total
149
130
2
1

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
5,627,526
4,861,938
-
0
-
0
Social security costs
533,936
482,586
-
-
Pension costs
579,888
390,983
-
0
-
0
6,741,350
5,735,507
-
0
-
0
7
Interest payable and similar expenses
2023
2022
£
£
Interest on bank overdrafts and loans
119,610
61,400
Interest on finance leases and hire purchase contracts
65,387
59,437
Other interest
-
64
Total finance costs
184,997
120,901
PERRIN GROUP HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 24 -
8
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
90,389
309,066
Adjustments in respect of prior periods
20,688
(11,854)
Total current tax
111,077
297,212
Deferred tax
Origination and reversal of timing differences
112,412
166,796
Total tax charge
223,489
464,008

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:

2023
2022
£
£
Profit before taxation
1,752,251
2,110,511
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2022: 19.00%)
332,928
400,997
Tax effect of expenses that are not deductible in determining taxable profit
6,665
8,188
Gains not taxable
(742)
-
0
Adjustments in respect of prior years
20,688
(11,854)
Effect of change in corporation tax rate
6,144
-
Permanent capital allowances in excess of depreciation
(231,246)
(91,944)
Deferred tax adjustments
112,412
166,796
Effect of foreign branch
(23,360)
(8,175)
Taxation charge
223,489
464,008

In addition to the amount charged to the income statement, the following amounts relating to tax have been recognised directly in other comprehensive income:

2023
2022
£
£
Deferred tax arising on:
Revaluation of property
-
370,354
PERRIN GROUP HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 25 -
9
Dividends
2023
2022
Recognised as distributions to equity holders:
£
£
Final paid
295,000
165,800
10
Impairments

Impairment tests have been carried out where appropriate and the following impairment losses have been recognised in profit or loss:

2023
2022
Notes
£
£
In respect of:
Goodwill
11
-
37,614
Recognised in:
Administrative expenses
-
37,614

The impairment losses in respect of financial assets are recognised in other gains and losses in the income statement.

11
Intangible fixed assets
Group
Goodwill
£
Cost
At 1 July 2022 and 30 June 2023
47,017
Amortisation and impairment
At 1 July 2022 and 30 June 2023
47,017
Carrying amount
At 30 June 2023
-
0
At 30 June 2022
-
0
The company had no intangible fixed assets at 30 June 2023 or 30 June 2022.

More information on impairment movements in the year is given in note 10.

PERRIN GROUP HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 26 -
12
Tangible fixed assets
Group
Feeehold property
Improvements to leasehold property
Plant and machinery
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
£
Cost or valuation
At 1 July 2022
8,790,000
1,540,557
1,577,485
710,105
1,114,203
13,732,350
Additions
-
0
59,947
180,443
383,268
551,104
1,174,762
Disposals
-
0
-
0
-
0
-
0
(85,304)
(85,304)
Exchange adjustments
-
0
-
0
-
0
-
0
(2,509)
(2,509)
At 30 June 2023
8,790,000
1,600,504
1,757,928
1,093,373
1,577,494
14,819,299
Depreciation and impairment
At 1 July 2022
-
0
480,529
999,319
329,370
552,618
2,361,836
Depreciation charged in the year
-
0
94,286
201,376
83,799
238,177
617,638
Eliminated in respect of disposals
-
0
-
0
-
0
-
0
(58,932)
(58,932)
At 30 June 2023
-
0
574,815
1,200,695
413,169
731,863
2,920,542
Carrying amount
At 30 June 2023
8,790,000
1,025,689
557,233
680,204
845,631
11,898,757
At 30 June 2022
8,790,000
1,060,028
578,166
380,735
561,585
11,370,514
Company
Feeehold property
Plant and machinery
Fixtures and fittings
Total
£
£
£
£
Cost or valuation
At 1 July 2022 and 30 June 2023
8,790,000
45,142
157,359
8,992,501
Depreciation and impairment
At 1 July 2022
-
0
27,085
142,059
169,144
Depreciation charged in the year
-
0
4,514
6,568
11,082
At 30 June 2023
-
0
31,599
148,627
180,226
Carrying amount
At 30 June 2023
8,790,000
13,543
8,732
8,812,275
At 30 June 2022
8,790,000
18,057
15,300
8,823,357
PERRIN GROUP HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
12
Tangible fixed assets
(Continued)
- 27 -

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

Group
Company
2023
2022
2023
2022
£
£
£
£
Plant and machinery
318,422
401,921
-
0
-
0
Fixtures and fittings
136,814
168,722
-
0
-
0
Motor vehicles
794,204
513,634
-
0
-
0
1,249,440
1,084,277
-
-
A full valuation of the company's freehold property was undertaken in August 2022 by CBRE Group Inc, a RICS qualified independent external surveyor to arrive at a market value of £8,790,000. This resulted in a fair value increase of £1,490,000 in 2022.
The directors have reviewed the property at year end and confirmed that the valuation in August 2022 remains valid and is an appropriate value for the accounts as at 30 June 2023

If revalued assets were stated on an historical cost basis rather than a fair value basis, the total amounts included would have been as follows:

Group
Company
2023
2022
2023
2022
£
£
£
£
Cost
4,160,000
4,160,000
4,160,000
4,160,000
Carrying value
4,160,000
4,160,000
4,160,000
4,160,000
13
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
14
-
0
-
0
400,103
400,103
Investments in associates
15
164,192
100,500
164,192
100,500
Investments in joint ventures
16
100
100
100
100
164,292
100,600
564,395
500,703

 

PERRIN GROUP HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
13
Fixed asset investments
(Continued)
- 28 -
Movements in fixed asset investments
Group
Shares in group undertakings and participating interests
£
Cost or valuation
At 1 July 2022
100,600
Additions
63,692
At 30 June 2023
164,292
Carrying amount
At 30 June 2023
164,292
At 30 June 2022
100,600
Movements in fixed asset investments
Company
Shares in group undertakings and participating interests
£
Cost or valuation
At 1 July 2022
500,702
Additions
63,692
At 30 June 2023
564,394
Carrying amount
At 30 June 2023
564,394
At 30 June 2022
500,702
PERRIN GROUP HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 29 -
14
Subsidiaries

Details of the company's subsidiaries at 30 June 2023 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Hawk Express Limited
Same as parent
Ordinary
100
Hemisphere Freight Services (HK)
Shun Hing Square, CaiWuWei, Luohu Qu, Shenzhen Shi, Guangdong Sheng, China, 518001
Ordinary
100
Hemisphere Freight Services (ROI)
178 Alderbrook Vale, Milltown, Ashbourne, Co. Meath, A84 E521, Ireland
Ordinary
100
Hemisphere Freight Services Limited
Same as parent
Ordinary
100
Hemisphere Global Logistics Limited
Same as parent
Ordinary
100
HGL Limited (NZ)
C/- Neesham Pike Thomas Limited, 9 Redmond Street, Pnsonby, Auckland
Ordinary
100
M.A.C.E (Shipping) Limited
Same as parent
Ordinary
100
Perrin Freight Services Limited
Same as parent
Ordinary
100
Barton Freight Services Company Limited
Same as parent
Ordinary
100
15
Associates

Details of associates at 30 June 2023 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Integer Micro Systems Limited
Mulberry House, Stephenson Road, Colchester, Essex, United Kingdom, CO4 9QR
Ordinary
50

Each share is entitled to all rights attached with full voting and equity rights.

 

The year end of Integer Micro Systems Limited is 30 September.

16
Joint ventures

Details of joint ventures at 30 June 2023 are as follows:

Name of undertaking
Registered office
Interest
% Held
held
Direct
Elite Travel Limited
Same as parent
Ordinary
50.00
Elite Coaches Limited
Same as parent
Ordinary
50.00
Electrical Solar Innovations Limited
Same as parent
Ordinary
50.00
PERRIN GROUP HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 30 -
17
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
5,687,029
9,195,561
-
0
-
0
Amounts owed by undertakings in which the company has a participating interest
68,347
-
68,347
-
Other debtors
521,054
619,381
-
-
Prepayments and accrued income
711,716
1,462,707
-
0
-
0
6,988,146
11,277,649
68,347
-
18
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
20
451,386
932,113
321,387
280,855
Obligations under finance leases
21
395,200
337,186
-
0
-
0
Trade creditors
6,313,820
7,955,120
-
0
-
0
Amounts owed to group undertakings
254
-
0
1,415,340
870,807
Corporation tax payable
90,389
309,066
18,071
31,180
Other taxation and social security
170,461
177,243
23,000
23,000
Government grants
23
4,609
4,609
-
0
-
0
Other creditors
278,487
195,048
100
100
Accruals and deferred income
541,207
533,274
-
0
-
0
8,245,813
10,443,659
1,777,898
1,205,942
19
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
20
2,230,620
2,757,888
1,911,459
2,295,818
Obligations under finance leases
21
719,341
671,407
-
0
-
0
Government grants
23
55,307
59,916
-
0
-
0
3,005,268
3,489,211
1,911,459
2,295,818

Hire purchase and finance lease agreements are secured on the asset concerned.

PERRIN GROUP HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 31 -
20
Loans and overdrafts
Group
Company
2023
2022
2023
2022
£
£
£
£
Bank loans
2,682,006
3,149,242
2,232,845
2,576,672
Bank overdrafts
-
0
540,759
-
0
-
0
2,682,006
3,690,001
2,232,845
2,576,672
Payable within one year
451,386
932,113
321,386
280,854
Payable after one year
2,230,620
2,757,888
1,911,459
2,295,818

The company is subject to an unlimited intercompany guarantee and debenture dated 19 July 2006 in favour of National Westminster plc between the company, Hemisphere Freight Services Limited and Hawk Express Limited.

 

There is also a fixed charge over the company's premises dated 24 July 2014 in favour of National Westminster Bank plc in relation to the mortgage of the property.

 

At the balance sheet date the total liabilities secured amounted to £2,682,005 (2022: £2,764,704).

21
Finance lease obligations
Group
Company
2023
2022
2023
2022
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
452,382
376,183
-
0
-
0
In two to five years
763,768
719,288
-
0
-
0
1,216,150
1,095,471
-
-
Less: future finance charges
(101,609)
(86,878)
-
0
-
0
1,114,541
1,008,593
-
0
-
0

Finance lease payments represent rentals payable by the group for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 3 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

PERRIN GROUP HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 32 -
22
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

Liabilities
Liabilities
2023
2022
Group
£
£
Accelerated capital allowances
443,499
331,087
Revaluations
1,157,500
1,157,500
1,600,999
1,488,587
Liabilities
Liabilities
2023
2022
Company
£
£
Accelerated capital allowances
550
1,835
Revaluations
1,157,500
1,157,500
1,158,050
1,159,335
Group
Company
2023
2023
Movements in the year:
£
£
Liability at 1 July 2022
1,488,587
1,159,335
Charge/(credit) to profit or loss
112,412
(1,285)
Liability at 30 June 2023
1,600,999
1,158,050

The deferred tax liability in respect of revaluations is expected to reverse at the earliest of the useful life of the asset or at the point of sales.

 

The deferred tax liability in respect of accelerated capital allowances will reverse each year in line with the useful life of the asset, recognised in the profit or loss.

There were no deferred tax movements in the company during the year.

23
Government grants
Group
Company
2023
2022
2023
2022
£
£
£
£
Arising from government grants
59,916
64,525
-
-
PERRIN GROUP HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
23
Government grants
(Continued)
- 33 -

Deferred income is included in the financial statements as follows:

Current liabilities
4,609
4,609
-
0
-
0
Non-current liabilities
55,307
59,916
-
0
-
0
59,916
64,525
-
-

The balance within deferred income relates entirely to a grant received from Suffolk County Council as a contribution towards capital expenditure in setting up a new site. The project was supported by New Anglia Local Enterprise Partnership through the Growing Business Fund.

 

The conditions of the grant stipulate that the jobs created must last at least one year and that any disposal of assets funded will require a repayment of part of the grant dependant on the date of disposal and proceeds received

24
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
579,888
390,983

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

 

The number of directors to whom retirement benefits are accruing is 4 and the aggregate value of company contributions was £66,524 of which £34,586 related to the highest paid director.

 

25
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary A shares of £1 each
10,052
10,052
10,052
10,052
Ordinary B Shares of £1 each
50
50
50
50
10,102
10,102
10,102
10,102

The A Ordinary shares prescribe the right to attend and vote at any general meetings, receive dividends and participate in distribution on winding up of the company.

 

The B Ordinary shares do not entitle the holders to receive notice of or vote at any general meeting, on winding up of the company rights to repayment of capital is equal.

PERRIN GROUP HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 34 -
26
Reserves
Share premium

The share premium reserve contains the premium arising on issue of equity shares, net of issue expenses.

Revaluation reserve

The revaluation reserve includes the total surplus on revaluation of tangible fixed assets less any associated deferred tax provision.

Foreign exchange reserve

The other reserve includes all differences arising on translation of the foreign subsidiary. These are non-distributable reserves.

Profit and loss reserves

The profit and loss reserve includes all current and prior retained period profits and losses.

27
Operating lease commitments
Lessee

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Group
Company
2023
2022
2023
2022
£
£
£
£
Within one year
557,688
559,728
-
-
Between two and five years
1,080,655
1,901,592
-
-
In over five years
-
29,250
-
-
1,638,343
2,490,570
-
-
28
Capital commitments

As at 30 June 2023, the group had contracted to purchase fixtures & fittings amounting to £1,399,000.

29
Related party transactions
Remuneration of key management personnel

The remuneration of key management personnel is as follows.

2023
2022
£
£
Aggregate compensation
1,303,597
1,150,124
30
Directors' transactions

Dividends totalling £295,000 (2022 - £165,800) were paid in the year in respect of shares held by the company's directors.

PERRIN GROUP HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 35 -
31
Cash generated from group operations
2023
2022
£
£
Profit for the year after tax
1,528,762
1,646,503
Adjustments for:
Taxation charged
223,489
464,008
Finance costs
184,997
120,901
Loss/gain on disposal of tangible fixed assets
(3,907)
7,519
Amortisation and impairment of intangible assets
-
37,614
Depreciation and impairment of tangible fixed assets
617,638
535,483
Movements in working capital:
(Increase)/decrease in stocks
(6,792)
5,993
Decrease/(increase) in debtors
4,216,405
(2,627,383)
(Decrease)/increase in creditors
(1,556,456)
728,534
Decrease in deferred income
(4,609)
(4,608)
Cash generated from operations
5,199,527
914,564
32
Analysis of changes in net debt - group
1 July 2022
Cash flows
New finance leases
Exchange rate movements
30 June 2023
£
£
£
£
£
Cash at bank and in hand
205,561
2,346,746
-
6,928
2,559,235
Bank overdrafts
(540,759)
540,759
-
-
-
0
(335,198)
2,887,505
-
6,928
2,559,235
Borrowings excluding overdrafts
(3,149,242)
467,236
-
-
(2,682,006)
Obligations under finance leases
(1,008,593)
412,290
(518,238)
-
(1,114,541)
(4,493,033)
3,767,031
(518,238)
6,928
(1,237,312)
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