Company Registration No. 09746933 (England and Wales)
P.I.P (PLEASURE FAIRS) LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
P.I.P (PLEASURE FAIRS) LIMITED
Company information
Directors
Mr E S Rice
Mr D W Taylor
Mr A P Chapman
(Appointed 27 May 2022)
Mr T W R Hennessy
(Appointed 27 May 2022)
Company number
09746933
Registered office
4 Riversway Business Village
Unit 4 Navigation Way
Aston-On-Ribble
Preston
Lancashire
England
PR2 2YP
Auditor
DJH Mitten Clarke Audit Limited
Chester House
LLoyd Drive
Ellesmere Port
Cheshire
United Kingdom
CH65 9HQ
P.I.P (PLEASURE FAIRS) LIMITED
Contents
Page
Directors' report
1 - 2
Independent auditor's report
3 - 5
Income statement
6
Statement of financial position
7
Statement of changes in equity
8
Cash flow statement
9
Notes to the financial statements
10 - 20
P.I.P (PLEASURE FAIRS) LIMITED
Directors' report
FOR THE YEAR ENDED 31 MARCH 2023
- 1 -
The directors present their annual report and financial statements for the year ended 31 March 2023.
Principal activities and operations
The principal activity of the company is that of the buying and selling of real estate.
The company has been set up as a special purpose vehicle to undertake a development project at a site referred to as Pleasure Fairs by the parent LLP, Peterborough Investment Partnership LLP. This is a 50:50 joint venture partnership between Peterborough Partnership Limited and Peterborough City Council.
The Group is effectively financed through loans made available by the designated members in the parent LLP, which can be for land or finance. It is the parent LLP that then provides financial support to the subsidiary to meet its direct costs and overheads.
No ordinary dividends were paid. The directors do no recommend payment of a final dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr P Hiller
(Resigned 27 May 2022)
Mr W Fitzgerald
(Resigned 27 May 2022)
Mr E S Rice
Mr D W Taylor
Mr A P Chapman
(Appointed 27 May 2022)
Mr T W R Hennessy
(Appointed 27 May 2022)
All of the directors who are eligible offer themselves for re-election at the forthcoming Annual General Meeting.
Auditor
The auditor, DJH Mitten Clarke Audit Limited, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
Statement of directors' responsibilities
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with International Financial Reporting Standards (IFRSs) as adopted by the United Kingdom. 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, International Accounting Standard 1 requires that directors:
properly select and apply accounting policies;
present information, including accounting policies, in a manner that provides relevant, reliable, comparable and understandable information;
provide additional disclosures when compliance with the specific requirements in IFRSs are insufficient to enable users to understand the impact of particular transactions, other events and conditions on the entity's financial position and financial performance; and
make an assessment of the company's ability to continue as a going concern.
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.
P.I.P (PLEASURE FAIRS) LIMITED
Directors' report (continued)
FOR THE YEAR ENDED 31 MARCH 2023
- 2 -
Statement of disclosure to auditor
Each director in office at the date of approval of this annual report confirms that:
so far as the director is aware, there is no relevant audit information of which the company's auditors are unaware, and
the director has taken all the steps that he / she ought to have taken as a director in order to make himself / herself aware of any relevant audit information and to establish that the company's auditors are 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.
In preparing this report, the directors have taken advantage of the small companies exemptions provided by section 415a of the Companies Act 2006.
On behalf of the board
Mr D W Taylor
Mr T W R Hennessy
Director
Director
4 January 2024
P.I.P (PLEASURE FAIRS) LIMITED
Independent auditor's report
TO THE MEMBERS OF P.I.P (PLEASURE FAIRS) LIMITED
- 3 -
Opinion
We have audited the financial statements of P.I.P (Pleasure Fairs) Limited (the 'company') for the year ended 31 March 2023 which comprise the Income Statement, the Statement of Financial Position, the Statement of Changes in Equity, the Statement of Cash Flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and International Financial Reporting Standards (IFRSs) as adopted by the United Kingdom.
In our opinion the financial statements:
give a true and fair view of the state of the company's affairs as at 31 March 2023 and of its loss for the year then ended;
have been properly prepared in accordance with UK adopted international accounting standards; 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.
P.I.P (PLEASURE FAIRS) LIMITED
Independent auditor's report (continued)
TO THE MEMBERS OF P.I.P (PLEASURE FAIRS) 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 where 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 directors' 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’ exemptions in preparing the directors’ report and 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.
Explanation as to what extent the audit was considered capable of detecting irregularities including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the company and management.
P.I.P (PLEASURE FAIRS) LIMITED
Independent auditor's report (continued)
TO THE MEMBERS OF P.I.P (PLEASURE FAIRS) LIMITED
- 5 -
Our approach was as follows:
We obtained an understanding of the legal and regulatory framework that is applicable to the company and determined that the most significant are frameworks which are directly relevant to the assertions in the financial statements including amounts and disclosures; those that relate to reporting framework IFRS; the Companies Act 2006 and UK taxation legislation.
We assessed how the company is complying with those frameworks by:
- making enquiries of management;
- reviewing minutes of meetings of those charged with governance; and
- reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations together with the use of an appropriate software package to check the disclosures required by the relevant accounting standards and legislation.
We assessed the susceptibility of the company’s financial statements to material misstatement including how fraud might occur. The risk of fraud associated with management override of controls is always deemed high and we performed audit procedures to address this specific risk including testing journal entries and other adjustments for appropriateness; also assessing whether judgements and assumptions used in accounting estimates were indicative of potential bias.
A fuller description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: http://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
Desirie Lea FCA FCCA (Senior Statutory Auditor)
For and on behalf of DJH Mitten Clarke Audit Limited
9 January 2024
Accountants
Statutory Auditor
Chester House
LLoyd Drive
Ellesmere Port
Cheshire
United Kingdom
CH65 9HQ
P.I.P (PLEASURE FAIRS) LIMITED
Income statement
FOR THE YEAR ENDED 31 MARCH 2023
- 6 -
2023
2022
Notes
£
£
Revenue
3
500,001
-
Cost of sales
(504,539)
Gross (loss)/profit
(4,538)
-
Administrative expenses
(11,709)
(20,823)
Operating loss
4
(16,247)
(20,823)
Other gains and losses
6
(53,609)
Loss before taxation
(16,247)
(74,432)
Income tax expense
7
(710)
-
Loss for the year
16
(16,957)
(74,432)
The income statement has been prepared on the basis that all operations are continuing operations.
P.I.P (PLEASURE FAIRS) LIMITED
Statement of financial position
AS AT
31 MARCH 2023
31 March 2023
- 7 -
2023
2022
Notes
£
£
Current assets
Inventories
9
-
504,538
Trade and other receivables
10
1,185
-
Cash and cash equivalents
8,308
121,037
9,493
625,575
Total assets
9,493
625,575
Current liabilities
Trade and other payables
11
5,754
105,589
Current tax liabilities
710
Deferred revenue
13
500,000
6,464
605,589
Net current assets
3,029
19,986
Total liabilities
6,464
605,589
Equity
Called up share capital
14
1
1
Capital reserve
15
-
145,596
Retained earnings
16
3,028
(125,611)
Total equity
3,029
19,986
Total equity and liabilities
9,493
625,575
The financial statements were approved by the Board of directors and authorised for issue on 4 January 2024
Signed on its behalf by:
Mr D W Taylor
Mr T W R Hennessy
Director
Director
Company Registration No. 09746933
P.I.P (PLEASURE FAIRS) LIMITED
Statement of changes in equity
FOR THE YEAR ENDED 31 MARCH 2023
- 8 -
Share capital
Capital reserve
Retained earnings
Total
£
£
£
£
Balance at 1 April 2021
1
199,205
(104,788)
94,418
Year ended 31 March 2022:
Loss and total comprehensive income for the year
-
-
(74,432)
(74,432)
Transfers between reserves
-
(53,609)
53,609
Balance at 31 March 2022
1
145,596
(125,611)
19,986
Year ended 31 March 2023:
Loss and total comprehensive income for the year
-
-
(16,957)
(16,957)
Transfers between reserves
-
(145,596)
145,596
Balance at 31 March 2023
1
-
3,028
3,029
P.I.P (PLEASURE FAIRS) LIMITED
Statement of cash flows
FOR THE YEAR ENDED 31 MARCH 2023
- 9 -
2023
2022
Notes
£
£
£
£
Cash (absorbed by)/generated from operations
19
(112,729)
75,615
Net cash (outflow)/inflow from operating activities
19
(112,729)
75,615
Net cash used in investing activities
-
-
Net cash used in financing activities
-
-
Net (decrease)/increase in cash and cash equivalents
(112,729)
75,615
Cash and cash equivalents at beginning of year
121,037
45,422
Cash and cash equivalents at end of year
8,308
121,037
P.I.P (PLEASURE FAIRS) LIMITED
Notes to the financial statements
FOR THE YEAR ENDED 31 MARCH 2023
- 10 -
1
Accounting policies
Company information
P.I.P (Pleasure Fairs) Limited is a private company limited by shares incorporated in England and Wales. The registered office is 4 Riversway Business Village, Unit 4 Navigation Way, Aston-On-Ribble, Preston, Lancashire, England, PR2 2YP. 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 International Financial Reporting Standards (IFRS) as adopted for use in the United Kingdom and with those parts of the Companies Act 2006 applicable to companies reporting under IFRS, except as otherwise stated.
The financial statements have been prepared on the historical cost basis, with the exception of financial instruments. The principal accounting policies adopted are set out below.
1.2
Going concern
The directors have at the time of approving the financial statements, a reasonable expectation that the truecompany has adequate resources to continue in operational existence for the foreseeable future and to successfully wind up the company. Thus the directors have presented the information as if the company were a going concern but have equally considered that the adoption of an alternative basis would not lead to a different presentation in the financial statements.
1.3
Revenue
Revenue represents the fair value of the consideration received or receivable in respect of land transactions entered into in the normal course of business, net of discounts and VAT. This is recognised on legal completion.
1.4
Borrowing costs
Borrowing costs directly attributable to the acquisition and development of a qualifying asset are added to the cost of those assets, until such time as the assets are ready for their intended use or sale.
All other borrowing costs are recognised in the profit or loss in the period in which they are incurred.
1.5
Inventories
Inventories 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 inventories to their present location and condition.
Net realisable value is the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution.
Interest accruing on capital borrowed to fund the production of long term contracts is carried forward within long term contract balances.
1.6
Cash and cash equivalents
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.
P.I.P (PLEASURE FAIRS) LIMITED
Notes to the financial statements (continued)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 11 -
1.7
Financial assets
Financial assets are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument.
Financial assets are classified into specified categories. The classification depends on the nature and purpose of the financial assets and is determined at the time of recognition.
Loans and receivables
Trade receivables, loans and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as 'loans and receivables' and are initially measured at fair value plus transaction costs. Loans and receivables are measured at amortised cost using the effective interest method, less any impairment. This carrying value equates to fair value or it is re-evaluated.
Interest is recognised by applying the effective interest rate, except for short-term receivables when the recognition of interest would be immaterial. The effective interest method is a method of calculating the amortised cost of a debt instrument and of allocating the interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the debt instrument to the net carrying amount on initial recognition.
Impairment of financial assets
Financial assets, other than those measured at fair value through profit or 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 of the investment have been affected.
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'.
Other financial liabilities
Other financial liabilities, including borrowings, are initially measured at fair value, net of transaction costs. They are subsequently measured at amortised cost using the effective interest method, with interest expense recognised on an effective yield basis. This carrying value equates to fair value or it is re-evaluated.
The effective interest method is a method of calculating the amortised cost of a financial liability and of allocating interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments through the expected life of the financial liability to the net carrying amount on initial recognition.
Derecognition of financial liabilities
Financial liabilities are derecognised when, and only when, the company’s obligations are discharged, cancelled, or they expire.
P.I.P (PLEASURE FAIRS) LIMITED
Notes to the financial statements (continued)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 12 -
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
Fair value measurement
IFRS 13 establishes a single source of guidance for all fair value measurements. IFRS 13 does not change when an entity is required to use fair value, but rather provides guidance on how to measure fair value under IFRS when fair value is required or permitted. The resulting calculations under IFRS 13 affected the principles that the company uses to assess the fair value, but the assessment of fair value under IFRS 13 has not materially changed the fair values recognised or disclosed. IFRS 13 mainly impacts the disclosures of the company. It requires specific disclosures about fair value measurements and disclosures of fair values, some of which replace existing disclosure requirements in other standards.
1.11
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the 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 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 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 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.
P.I.P (PLEASURE FAIRS) LIMITED
Notes to the financial statements (continued)
FOR THE YEAR ENDED 31 MARCH 2023
- 13 -
2
Critical accounting estimates and judgements
The preparation of financial statements in conformity with IFRS requires management to make estimates and assumptions that affect the reported amounts of revenue, expenses, assets and liabilities. The estimates and judgements are based on historical experience and other factors, including expectations of future events that are believed to be reasonable and constitute management’s best judgement at the date of the financial statements. In the future, actual experience could differ from those estimates.
The principal estimates and judgements that could have a significant effect upon the financial results are inter company balances and loan account positions between the parent LLP and the company. It is assumed that fair value can be based on their carrying value of amortised cost which is calculated based on an effective rate of interest of 12%. These loans were repaid during the prior period.
3
Revenue
An analysis of the company's revenue is as follows:
2023
2022
£
£
Revenue analysed by class of business
Sales of land
500,001
-
4
Operating loss
2023
2022
Operating loss for the year is stated after charging/(crediting):
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
3,700
2,900
Cost of inventories recognised as an expense
504,539
P.I.P (PLEASURE FAIRS) LIMITED
Notes to the financial statements (continued)
FOR THE YEAR ENDED 31 MARCH 2023
- 14 -
5
Employees
There were no staff costs for the period ended 31 March 2023 or 31 March 2022.
6
Other gains and losses
2023
2022
£
£
Loss on change in carrying amount of borrowings
-
(53,609)
7
Income tax expense
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
710
The charge for the year can be reconciled to the loss per the income statement as follows:
2023
2022
£
£
Loss before taxation
(16,247)
(74,432)
Expected tax credit based on a corporation tax rate of 19.00% (2022: 19.00%)
(3,087)
(14,142)
Effect of expenses not deductible in determining taxable profit
27,663
10,186
Utilisation of tax losses not previously recognised
(23,866)
Unutilised tax losses carried forward
3,956
Taxation charge for the year
710
-
8
Finance costs
Total finance costs of £nil (2022: £47,947) relate to interest on financial liabilities held at amortised cost and have been capitalised in total to a qualifying asset, namely inventories.
9
Inventories
2023
2022
£
£
Work in progress
-
504,538
P.I.P (PLEASURE FAIRS) LIMITED
Notes to the financial statements (continued)
FOR THE YEAR ENDED 31 MARCH 2023
- 15 -
10
Trade and other receivables
2023
2022
£
£
VAT recoverable
469
Amount due from parent undertaking
116
Prepayments
600
1,185
-
11
Trade and other payables
2023
2022
£
£
Trade payables
600
640
Accruals
5,154
7,414
Social security and other taxation
97,535
5,754
105,589
P.I.P (PLEASURE FAIRS) LIMITED
Notes to the financial statements (continued)
FOR THE YEAR ENDED 31 MARCH 2023
- 16 -
12
Financial instruments
Financial instruments include amounts due to/from the parent undertaking. Financial instruments can give rise to liquidity, credit and interest rate risk. Information about these risks and how they are managed is set out below.
2023
2022
£
£
Financial assets
Cash and cash equivalents
8,308
121,037
Amounts due from parent undertaking
116
-
Trade and other receivables
Cash and receivables
8,424
121,037
2023
2022
Financial liabilities
£
£
Trade and other payables
5,754
8,054
Liabilities at amortised cost
5,754
8,054
Total net financial instruments
2,670
112,983
P.I.P (PLEASURE FAIRS) LIMITED
Notes to the financial statements (continued)
FOR THE YEAR ENDED 31 MARCH 2023
12
Financial instruments
(Continued)
- 17 -
The directors consider that the carrying amounts of financial liabilities carried at amortised cost in the financial statements approximate to their fair values.
Liquidity risk
The ultimate responsibility for liquidity risk management lies with the board of directors, which has developed an appropriate liquidity management framework for the management of the company's liquidity risk. The company manages liquidity risk by maintaining inter-company borrowing facilities.
Liquidity risk arises from the company's ongoing financial obligations being amounts owed to group undertakings. At the balance sheet date there are no obligations to group undertakings.
Credit risk
Credit risk arises when one party to a financial instrument causes loss for the other party by failing to discharge an obligation.
The credit risk on liquid funds is limited because a leading high street bank is used.
Interest rate risk
Interest rate risk arises from cash and cash equivalents and interest bearing investments and loans.
Interest is not earned on cash deposits of £8,308.
Loan notes previously included within amounts due to group undertakings were interest free and therefore the board does not consider interest rate risk to be relevant.
Capital Contribution
Amounts due to group undertakings, including loan notes and inter-company loans, have been recognised initially at fair value. The difference between the face value and the fair value of the loans on initial recognition has been recognised as a capital contribution in reserves; any further differences arising on a reassessment of the loan notes and inter-company position are equally recognised as a capital contribution. As the loans have been repaid and all interest recognised in cost of sales, the capital contribution has now been transferred to retained earnings.
13
Deferred revenue
2023
2022
£
£
Arising from Deposits for sales not completed
-
500,000
All deferred revenues have been settled.
Revenue in respect of land transactions is recognised on legal completion.
P.I.P (PLEASURE FAIRS) LIMITED
Notes to the financial statements (continued)
FOR THE YEAR ENDED 31 MARCH 2023
- 18 -
14
Share capital
2023
2022
Ordinary share capital
£
£
Issued and fully paid
Ordinary share of £1 each
1
1
The company has one class of ordinary shares which have attached to them the full voting, dividend and capital distribution (including on winding up) rights; they do not confer any rights of redemption.
15
Capital reserve
£
At 1 April 2021
199,205
Transfer to retained earnings
(53,609)
At 31 March 2022
145,596
Transfer to retained earnings
(145,596)
At 31 March 2023
-
The capital reserve represents the difference between face value and amortised cost at initial recognition of the intercompany loans and intercompany loan notes together with adjustments arising from reassessments of the estimated repayment date. The full amount has been transferred to retained earnings in the year ended 31 March 2023.
16
Retained earnings
£
At 1 April 2021
(104,788)
Loss for the period ended 31 March 2022
(74,432)
Transfer from capital reserve
53,609
At 31 March 2022
(125,611)
Loss for the year
(16,957)
Transfer from capital reserve
145,596
At 31 March 2023
3,028
P.I.P (PLEASURE FAIRS) LIMITED
Notes to the financial statements (continued)
FOR THE YEAR ENDED 31 MARCH 2023
- 19 -
17
Related party transactions
Other transactions with related parties
During the year the company entered into the following transactions with related parties:
During the period ended 31 March 2016 the company issued loan notes to the value of £200,000 to Peterborough City Council in exchange for an interest in the land known as Pleasure Fairs and these loan notes were immediately transferred to the parent entity Peterborough Investment Partnership LLP. These loan notes were repaid in full during the previous year.
During the year, Peterborough Investment Partnership LLP paid costs on behalf of the company to the value of £2,131 (2022: £16,688). During the year, the company paid costs on behalf of the parent LLP in the sum of £2,247 (2022: £nil) and at the statement of financial position date the amount outstanding from the parent LLP was £116 (2022: £nil) at face value.
During the year Peterborough Investment Partnership LLP charged a management fee to the company in the sum of £nil (2022: £12,000). These amounts were paid via the inter-company loan balance.
Effective interest was recognised by the company on the amortised loan notes and the inter-company positions at 12% per annum and this totals £nil in the year to 31 March 2023 (2022: £47,947).
During the year the company sold its land to Medesham Homes LLP. Peterborough City Council, a member of the parent LLP, is also a member of Medesham Homes LLP.
18
Ultimate controlling party
Peterborough Investment Partnership LLP has the direct interest by virtue of its shareholding of 100%.
Peterborough Investment Partnership LLP has been set up as a 50:50 joint venture partnership between Peterborough Partnership Limited and Peterborough City Council.
P.I.P (PLEASURE FAIRS) LIMITED
Notes to the financial statements (continued)
FOR THE YEAR ENDED 31 MARCH 2023
- 20 -
19
Cash generated from operations
2023
2022
£
£
Loss for the year after tax
(16,957)
(74,432)
Adjustments for:
New loans in the period
-
16,688
Taxation charged
710
-
Other gains and losses
-
(53,609)
Movements in working capital:
Repayment of intercompany borrowings
-
(517,614)
Decrease/(increase) in inventories
504,538
(57,923)
Finance costs included within inventories
-
47,947
(Increase)/decrease in trade and other receivables
(1,185)
23,356
(Decrease)/increase in trade and other payables
(99,835)
83,984
(Decrease)/increase in deferred revenue
(500,000)
500,000
Cash (absorbed by)/generated from operations
(112,729)
75,615
2023-03-312022-04-01falseCCH SoftwareCCH Accounts Production 2023.300Mr P HillerMr W FitzgeraldMr E S RiceMr D W TaylorMr A P ChapmanMr T W R Hennessy097469332022-04-012023-03-3109746933bus:Director32022-04-012023-03-3109746933bus:Director42022-04-012023-03-3109746933bus:Director52022-04-012023-03-3109746933bus:Director62022-04-012023-03-3109746933bus:Director12022-04-012023-03-3109746933bus:Director22022-04-012023-03-3109746933bus:RegisteredOffice2022-04-012023-03-31097469332023-03-3109746933core:ContinuingOperations2022-04-012023-03-31097469332021-04-012022-03-3109746933core:ContinuingOperations12022-04-012023-03-3109746933core:ContinuingOperations12021-04-012022-03-3109746933core:ContinuingOperations2021-04-012022-03-3109746933core:RetainedEarningsAccumulatedLosses2022-04-012023-03-3109746933core:RetainedEarningsAccumulatedLosses2021-04-012022-03-31097469332022-03-31097469332022-03-31097469332021-03-3109746933core:CurrentFinancialInstruments2023-03-3109746933core:CurrentFinancialInstruments2022-03-3109746933core:ShareCapital2023-03-3109746933core:ShareCapital2022-03-3109746933core:ShareCapital2021-03-3109746933core:CapitalRedemptionReserve2021-03-3109746933core:CapitalRedemptionReserve2022-03-3109746933core:OtherMiscellaneousReserve2021-03-3109746933core:RetainedEarningsAccumulatedLosses2022-03-3109746933core:RetainedEarningsAccumulatedLosses2023-03-3109746933core:LoansReceivables2022-04-012023-03-3109746933bus:PrivateLimitedCompanyLtd2022-04-012023-03-3109746933bus:Audited2022-04-012023-03-3109746933bus:FullIFRS2022-04-012023-03-3109746933bus:FullAccounts2022-04-012023-03-31xbrli:purexbrli:sharesiso4217:GBP