Company registration number 06909822 (England and Wales)
POWER BODY NUTRITION LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023
POWER BODY NUTRITION LTD
COMPANY INFORMATION
Directors
Mr S Szulczewski
Mr A Magnuszewski
(Appointed 25 July 2023)
Mr B Ratus
(Appointed 25 July 2023)
Company number
06909822
Registered office
Unit 11 Chessingham Park
Common Road
Dunnington
York
YO19 5SE
Auditor
Azets Audit Services Limited
Triune Court
Monks Cross Drive
York
YO32 9GZ
POWER BODY NUTRITION LTD
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Group statement of comprehensive income
8
Group balance sheet
9
Company balance sheet
10
Group statement of changes in equity
11
Company statement of changes in equity
12
Group statement of cash flows
13
Notes to the financial statements
14 - 32
POWER BODY NUTRITION LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MAY 2023
- 1 -

The directors present the strategic report for the year ended 31 May 2023.

Review of the business

Power Body Nutrition Ltd is a distributor of nutritional supplements, selling goods both direct to wholesalers and consumers. Key product ranges include sports nutrition, supplements, health foods and vitamins.

The financial situation remains comfortable and is consistently improving. Thanks to available credit lines and Power Body's own capital we continue to achieve our goals and increase both profit and sales.

Our primary focus continues to be stable growth and development. Investing in technology and development of our systems allows us to subsequently grow the turnover in the face of post-Brexit restrictions as well as Covid-19 pandemic consequences.

Principal risks and uncertainties

2023 had it’s challenges with the inflation and cost of living crisis affecting our customers and their spending. Continuous supply chain issues and raw materials cost increases have been affecting Power Body’s pricing. Fulfilment rate with the suppliers improved, it has not returned to pre pandemic levels just yet. Stock shortages decreased. Shipping delays continued throughout the year, with additional challenges of new import regulations.

The EU location/​warehouse has continued to serve the customers in the EU to help avoid post Brexit shipping restrictions. The volume consistently increased throughout the year.

Key performance indicators

The group focus on a number of KPI's which are assessed at both group and product level.

Turnover, gross profit margins, and administrative costs are the key areas of focus for the business to assess performance of the group as a whole.

2023 has seen another year of sales growth for the group in which total turnover has increased by almost 9.4% vs 2022, up to £34.9m vs £31.9m.

Domestic sales represent 34% of total turnover and continue to be a pivotal market for the group. Specific focus on the European market has also seen turnover rise and represents almost 66% of the total turnover of the group.

The group gross profit margin has dropped to 19.09% compared to 20.3% in 2022. Administrative costs (excluding depreciation and amortisation) have stayed at similar level as a percentage of sales between 2022 and 2023.

Staff costs have increased by around 18% compared to the 2022 year end, reflecting the ongoing steady growth of the business as well as the future growth plans. We’ve employed localised sales teams in new European territorries.

Amortisation on software has also risen in the year due to the group’s ongoing commitment to improve its internal systems and infrastructure which will allow it to continually improve efficiencies.

Other performance indicators

We plan to continue growing sales and presence in UK & EU markets steadily. We intend to review our portfolio to assure the most profitable brands are the main focus, adapting a careful approach and minding the trends and our customers' needs. As markets continue to grow in the UK and EU we continue to invest in our IT system and optimise purchasing, control costs and manage sales.

Other information and explanations

The director is confident that the group will continue to trade successfully and remain profitable for the foreseeable future.

POWER BODY NUTRITION LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
- 2 -

On behalf of the board

Mr S Szulczewski
Director
22 February 2024
POWER BODY NUTRITION LTD
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MAY 2023
- 3 -

The directors present their annual report and financial statements for the year ended 31 May 2023.

Principal activities

The principal activity of the company continued to be that of the online retailing of nutritional supplements.

Results and dividends

The results for the year are set out on page 8.

Interim ordinary dividends were paid amounting to £190,000. The directors do not recommend payment of a further 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 S Szulczewski
Mr A Magnuszewski
(Appointed 25 July 2023)
Mr B Ratus
(Appointed 25 July 2023)
Auditor

The auditor, Azets Audit Services Limited, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

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.

On behalf of the board
Mr S Szulczewski
Director
22 February 2024
POWER BODY NUTRITION LTD
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MAY 2023
- 4 -

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

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are 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. They are 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.

POWER BODY NUTRITION LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF POWER BODY NUTRITION LTD
- 5 -
Opinion

We have audited the financial statements of Power Body Nutrition Ltd (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 May 2023 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, 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 directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's 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 directors 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 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:

POWER BODY NUTRITION LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF POWER BODY NUTRITION LTD
- 6 -
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 directors' report.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

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 parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the parent 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.

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.

POWER BODY NUTRITION LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF POWER BODY NUTRITION LTD
- 7 -

Extent to which 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 and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.

 

We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework.  Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.  This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.

 

In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:

 

 

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation.  This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance.  The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

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.

Martin Davey (Senior Statutory Auditor)
For and on behalf of Azets Audit Services Limited
22 February 2024
Chartered Accountants
Statutory Auditor
Triune Court
Monks Cross Drive
York
YO32 9GZ
POWER BODY NUTRITION LTD
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MAY 2023
- 8 -
2023
2022
Notes
£
£
Turnover
3
34,880,011
31,853,489
Cost of sales
(28,222,340)
(25,388,719)
Gross profit
6,657,671
6,464,770
Administrative expenses
(3,858,557)
(3,484,292)
Other operating income
-
19,488
Operating profit
4
2,799,114
2,999,966
Interest payable and similar expenses
7
(276,325)
(96,138)
Profit before taxation
2,522,789
2,903,828
Tax on profit
8
(362,996)
(431,231)
Profit for the financial year
2,159,793
2,472,597
Profit and total comprehensive income for the financial year is all attributable to the owners of the parent company.

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

POWER BODY NUTRITION LTD
GROUP BALANCE SHEET
AS AT
31 MAY 2023
31 May 2023
- 9 -
2023
2022
Notes
£
£
£
£
Fixed assets
Intangible assets
10
1,651,408
1,391,856
Tangible assets
11
312,993
153,150
1,964,401
1,545,006
Current assets
Stocks
13
10,466,890
12,520,805
Debtors
14
2,509,937
2,090,108
Cash at bank and in hand
216,406
980,390
13,193,233
15,591,303
Creditors: amounts falling due within one year
17
(4,972,621)
(8,370,372)
Net current assets
8,220,612
7,220,931
Total assets less current liabilities
10,185,013
8,765,937
Creditors: amounts falling due after more than one year
18
(1,159,164)
(1,709,881)
Provisions for liabilities
Deferred tax liability
19
213,000
213,000
(213,000)
(213,000)
Net assets
8,812,849
6,843,056
Capital and reserves
Called up share capital
21
10
10
Profit and loss reserves
8,812,839
6,843,046
Total equity
8,812,849
6,843,056
The financial statements were approved by the board of directors and authorised for issue on 22 February 2024 and are signed on its behalf by:
22 February 2024
Mr S Szulczewski
Director
Company registration number 06909822 (England and Wales)
POWER BODY NUTRITION LTD
COMPANY BALANCE SHEET
AS AT 31 MAY 2023
31 May 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Intangible assets
10
1,651,408
1,391,856
Tangible assets
11
228,566
153,150
Investments
12
1
-
0
1,879,975
1,545,006
Current assets
Stocks
13
10,411,006
12,520,805
Debtors
14
2,763,358
2,090,108
Cash at bank and in hand
212,203
980,390
13,386,567
15,591,303
Creditors: amounts falling due within one year
17
(4,968,565)
(8,370,372)
Net current assets
8,418,002
7,220,931
Total assets less current liabilities
10,297,977
8,765,937
Creditors: amounts falling due after more than one year
18
(1,159,164)
(1,709,881)
Provisions for liabilities
Deferred tax liability
19
213,000
213,000
(213,000)
(213,000)
Net assets
8,925,813
6,843,056
Capital and reserves
Called up share capital
21
10
10
Profit and loss reserves
8,925,803
6,843,046
Total equity
8,925,813
6,843,056

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 £2,272,757 (2022 - £2,472,597 profit).

The financial statements were approved by the board of directors and authorised for issue on 22 February 2024 and are signed on its behalf by:
22 February 2024
Mr S Szulczewski
Director
Company registration number 06909822 (England and Wales)
POWER BODY NUTRITION LTD
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MAY 2023
- 11 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 June 2021
10
4,551,441
4,551,451
Year ended 31 May 2022:
Profit and total comprehensive income
-
2,472,597
2,472,597
Dividends
9
-
(180,992)
(180,992)
Balance at 31 May 2022
10
6,843,046
6,843,056
Year ended 31 May 2023:
Profit and total comprehensive income
-
2,159,793
2,159,793
Dividends
9
-
(190,000)
(190,000)
Balance at 31 May 2023
10
8,812,839
8,812,849
POWER BODY NUTRITION LTD
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MAY 2023
- 12 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 June 2021
10
4,551,441
4,551,451
Year ended 31 May 2022:
Profit and total comprehensive income for the year
-
2,472,597
2,472,597
Dividends
9
-
(180,992)
(180,992)
Balance at 31 May 2022
10
6,843,046
6,843,056
Year ended 31 May 2023:
Profit and total comprehensive income
-
2,272,757
2,272,757
Dividends
9
-
(190,000)
(190,000)
Balance at 31 May 2023
10
8,925,803
8,925,813
POWER BODY NUTRITION LTD
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MAY 2023
- 13 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
30
4,004,584
1,649,179
Interest paid
(276,325)
(96,138)
Income taxes paid
(504,996)
(608,231)
Net cash inflow from operating activities
3,223,263
944,810
Investing activities
Purchase of intangible assets
(958,477)
(845,058)
Purchase of tangible fixed assets
(162,649)
(17,702)
Proceeds from disposal of tangible fixed assets
524
-
Net cash used in investing activities
(1,120,602)
(862,760)
Financing activities
Proceeds from new bank loans
-
2,000,000
Repayment of bank loans
(2,655,235)
(1,087,062)
Payment of finance leases obligations
(21,410)
(29,601)
Dividends paid to equity shareholders
(190,000)
(180,992)
Net cash (used in)/generated from financing activities
(2,866,645)
702,345
Net (decrease)/increase in cash and cash equivalents
(763,984)
784,395
Cash and cash equivalents at beginning of year
980,390
195,995
Cash and cash equivalents at end of year
216,406
980,390
POWER BODY NUTRITION LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023
- 14 -
1
Accounting policies
Company information

Power Body Nutrition Ltd (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Unit 11 Chessingham Park, Common Road, Dunnington, York, YO19 5SE.

 

The group consists of Power Body Nutrition Ltd 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 £1.

The financial statements have been prepared under the historical cost convention, modified to include 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
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Power Body Nutrition Ltd 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 31 May 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.

1.3
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

POWER BODY NUTRITION LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
1
Accounting policies
(Continued)
- 15 -
1.4
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

1.5
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

Amortisation 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:

Software
25% straight line
1.6
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Leasehold land and buildings
8 years straight line
Plant and equipment
25% reducing balance
Fixtures and fittings
25% reducing balance
Computers
25% reducing balance

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 profit and loss account.

1.7
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

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.

POWER BODY NUTRITION LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
1
Accounting policies
(Continued)
- 16 -
1.8
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.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.9
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.

1.10
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

POWER BODY NUTRITION LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
1
Accounting policies
(Continued)
- 17 -
1.11
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 balance sheet 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.

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.

POWER BODY NUTRITION LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
1
Accounting policies
(Continued)
- 18 -
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.

Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.12
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.

1.13
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

POWER BODY NUTRITION LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
1
Accounting policies
(Continued)
- 19 -
Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset 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.

1.14
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.

1.15
Retirement benefits

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

1.16
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 balance sheet 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.

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.

1.17
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.

POWER BODY NUTRITION LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
1
Accounting policies
(Continued)
- 20 -
1.18
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.

1.19

Research and development

Research expenditure is written off to the profit and loss account in the year in which it is incurred. Development expenditure is written off in the same way unless the directors are satisfied as to the technical, commercial and financial viability of individual projects. In this situation, the expenditure is deferred and amortised over the period during which the company is expected to benefit.

2
Judgements and key sources of estimation uncertainty

In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

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.

Depreciation and amortisation

The depreciation and amortisation polices have been set according to managements experience of the useful lives of a typical asset in each category, something which is reviewed annually. The depreciation and amortisation charged during the year was £747,213 (2022 - £857,526) which the directors feel is a fair reflection of the benefits derived from the consumption of the intangible and tangible fixed assets in use during the period.

Stock provisions

At each reporting date an assessment is made for provisions required to properly recognise wastage, damaged goods and over absorbed overheads. 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 and provided for in the balance sheet. Reversals of impairment losses are also recognised in profit or loss where these arise.

Bad debt provisions

Outstanding trade debtor balances are reviewed on a line by line basis by management to identify possible amounts where a provision is required. Management closely manage the collection of trade debtors and are therefore able to identify balances where there is uncertainty about its recoverability, and determine what provision is required (if any).

POWER BODY NUTRITION LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
- 21 -
3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Nutritional products
34,880,011
31,853,489
2023
2022
£
£
Turnover analysed by geographical market
UK
11,746,487
13,917,404
Europe
22,995,957
17,930,488
Rest of the world
137,567
5,597
34,880,011
31,853,489
2023
2022
£
£
Other revenue
Grants received
-
19,488
4
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange losses
121,695
152,169
Government grants
-
(19,488)
Depreciation of owned tangible fixed assets
33,807
26,227
Depreciation of tangible fixed assets held under finance leases
14,481
7,782
Loss on disposal of tangible fixed assets
328
97
Amortisation of intangible assets
698,925
823,517
Operating lease charges
140,300
76,157
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
21,350
17,380
POWER BODY NUTRITION LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
- 22 -
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
Directors
1
1
1
1
Salaries and distribution
24
26
24
26
Office management
25
22
25
22
Total
50
49
50
49

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
1,545,287
1,321,494
1,545,287
1,321,494
Social security costs
159,882
124,261
159,882
124,261
Pension costs
29,345
25,757
29,345
25,757
1,734,514
1,471,512
1,734,514
1,471,512
7
Interest payable and similar expenses
2023
2022
£
£
Interest on bank overdrafts and loans
273,436
94,866
Interest on finance leases and hire purchase contracts
2,889
1,272
Total finance costs
276,325
96,138
8
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
364,000
430,000
Adjustments in respect of prior periods
(1,004)
1,231
Total current tax
362,996
431,231
POWER BODY NUTRITION LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
8
Taxation
(Continued)
- 23 -

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
2,522,789
2,903,828
Expected tax charge based on the standard rate of corporation tax in the UK of 20.00% (2022: 19.00%)
504,558
551,727
Tax effect of expenses that are not deductible in determining taxable profit
2,485
927
Depreciation on assets not qualifying for tax allowances
270
174
Research and development tax credit
(211,220)
(118,868)
Under/(over) provided in prior years
(1,004)
1,231
Other adjustments
67,907
(3,960)
Taxation charge
362,996
431,231
9
Dividends
2023
2022
Recognised as distributions to equity holders:
£
£
Interim paid
190,000
180,992
10
Intangible fixed assets
Group
Software
£
Cost
At 1 June 2022
3,701,376
Additions - internally developed
958,477
At 31 May 2023
4,659,853
Amortisation and impairment
At 1 June 2022
2,309,520
Amortisation charged for the year
698,925
At 31 May 2023
3,008,445
Carrying amount
At 31 May 2023
1,651,408
At 31 May 2022
1,391,856
POWER BODY NUTRITION LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
10
Intangible fixed assets
(Continued)
- 24 -
Company
Software
£
Cost
At 1 June 2022
3,701,376
Additions - internally developed
958,477
At 31 May 2023
4,659,853
Amortisation and impairment
At 1 June 2022
2,309,520
Amortisation charged for the year
698,925
At 31 May 2023
3,008,445
Carrying amount
At 31 May 2023
1,651,408
At 31 May 2022
1,391,856
11
Tangible fixed assets
Group
Leasehold land and buildings
Plant and equipment
Fixtures and fittings
Computers
Total
£
£
£
£
£
Cost
At 1 June 2022
8,050
289,692
95,853
35,051
428,646
Additions
118,191
84,438
2,482
3,872
208,983
Disposals
-
0
-
0
(400)
(524)
(924)
At 31 May 2023
126,241
374,130
97,935
38,399
636,705
Depreciation and impairment
At 1 June 2022
419
185,516
67,331
22,230
275,496
Depreciation charged in the year
3,999
33,069
7,426
3,794
48,288
Eliminated in respect of disposals
-
0
-
0
(72)
-
0
(72)
At 31 May 2023
4,418
218,585
74,685
26,024
323,712
Carrying amount
At 31 May 2023
121,823
155,545
23,250
12,375
312,993
At 31 May 2022
7,631
104,176
28,522
12,821
153,150
POWER BODY NUTRITION LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
11
Tangible fixed assets
(Continued)
- 25 -
Company
Leasehold land and buildings
Plant and equipment
Fixtures and fittings
Computers
Total
£
£
£
£
£
Cost
At 1 June 2022
8,050
289,692
95,853
35,051
428,646
Additions
38,753
77,466
1,125
3,872
121,216
Disposals
-
0
-
0
(400)
(524)
(924)
At 31 May 2023
46,803
367,158
96,578
38,399
548,938
Depreciation and impairment
At 1 June 2022
419
185,516
67,331
22,230
275,496
Depreciation charged in the year
1,351
32,489
7,314
3,794
44,948
Eliminated in respect of disposals
-
0
-
0
(72)
-
0
(72)
At 31 May 2023
1,770
218,005
74,573
26,024
320,372
Carrying amount
At 31 May 2023
45,033
149,153
22,005
12,375
228,566
At 31 May 2022
7,631
104,176
28,522
12,821
153,150

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 equipment
88,631
67,444
88,631
67,444
12
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
27
-
0
-
0
1
-
0
POWER BODY NUTRITION LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
12
Fixed asset investments
(Continued)
- 26 -
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 June 2022
-
Additions
1
At 31 May 2023
1
Carrying amount
At 31 May 2023
1
At 31 May 2022
-
13
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Finished goods and goods for resale
10,466,890
12,520,805
10,411,006
12,520,805

There was no significant difference between the value shown for finished goods and their replacement cost at the balance sheet date.

14
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
2,386,818
2,005,387
2,496,382
2,005,387
Amounts owed by group undertakings
-
-
147,000
-
Other debtors
45,994
34,810
42,851
34,810
Prepayments and accrued income
77,125
49,911
77,125
49,911
2,509,937
2,090,108
2,763,358
2,090,108
POWER BODY NUTRITION LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
- 27 -
15
Loans and overdrafts
Group
Company
2023
2022
2023
2022
£
£
£
£
Bank loans
3,209,311
5,864,546
3,209,311
5,864,546
Payable within one year
2,114,073
4,197,879
2,114,073
4,197,879
Payable after one year
1,095,238
1,666,667
1,095,238
1,666,667

Included within bank loans are individual supplier invoice financing totalling £1,542,644 (2022 - £2,858,647). Balances fall due 90 days after the loan is advanced and interest is charged at 1.75% over the variable rate.

 

Also included in bank loans is an additional loan facility. The facility has a balance of £1,666,667 (2022 - £2,000,000) and a final repayment date of March 2026. The loan is repayable in 41 instalments of £47,619 and interest is charged at 4.65% above the Bank of England base rate.

 

Also included in bank loans is a balance of £nil (2022 - £1,005,899) relating to invoice financing.

 

Bank loans are secured over the trade and assets of the company.

16
Finance lease obligations
Group
Company
2023
2022
2023
2022
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
29,549
22,746
29,549
22,746
In two to five years
72,107
46,459
72,107
46,459
101,656
69,205
101,656
69,205
Less: future finance charges
(13,461)
(5,934)
(13,461)
(5,934)
88,195
63,271
88,195
63,271

Finance lease payments represent rentals payable by the company or 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 5 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

 

Finance lease obligations are secured on the asset to which they relate.

POWER BODY NUTRITION LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
- 28 -
17
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans
15
2,114,073
4,197,879
2,114,073
4,197,879
Obligations under finance leases
16
24,269
20,057
24,269
20,057
Trade creditors
2,480,335
3,181,741
2,480,295
3,181,741
Corporation tax payable
64,000
206,000
64,000
206,000
Other taxation and social security
168,537
290,556
168,537
290,556
Other creditors
78,328
376,773
78,327
376,773
Accruals and deferred income
43,079
97,366
39,064
97,366
4,972,621
8,370,372
4,968,565
8,370,372

Bank loans and obligations under finance leases are secured over the trade and assets of the company.

18
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
15
1,095,238
1,666,667
1,095,238
1,666,667
Obligations under finance leases
16
63,926
43,214
63,926
43,214
1,159,164
1,709,881
1,159,164
1,709,881

Bank loans and obligations under finance leases are secured over the trade and assets of the company.

19
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
213,000
213,000
Liabilities
Liabilities
2023
2022
Company
£
£
Accelerated capital allowances
213,000
213,000
There were no deferred tax movements in the year.
POWER BODY NUTRITION LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
19
Deferred taxation
(Continued)
- 29 -
20
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
29,345
25,757

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.

Contributions totalling £5,937 (2022 - £6,093) were payable to the fund at the year end and are included in creditors.

21
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
10
10
10
10
22
Financial commitments, guarantees and contingent liabilities

The company's director has personal guarantees totalling £260,000 (2022: £260,000) in place over the group's borrowings.

23
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
141,000
120,000
141,000
120,000
Between two and five years
192,750
290,000
192,750
290,000
333,750
410,000
333,750
410,000
POWER BODY NUTRITION LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
- 30 -
24
Related party transactions
Remuneration of key management personnel

The remuneration of key management personnel is as follows.

2023
2022
£
£
Aggregate compensation
403,568
547,229
Transactions with related parties

During the year the group entered into the following transactions with related parties:

Sales
Sales
Purchases
Purchases
2023
2022
2023
2022
£
£
£
£
Group
Entities controlled by a common director
5,738,096
4,744,173
116,112
1,497
IT Supplier and trade loan provider
-
-
890,757
785,979
Company
Entities over which the company has control, joint control or significant influence
280,754
-
-
-
Entities controlled by a common director
5,738,096
4,744,173
116,112
1,497
IT Supplier and trade loan provider
-
-
890,757
785,979

The following amounts were outstanding at the reporting end date:

Amounts due to related parties
2023
2022
£
£
Group
Entities controlled by a common director
-
180,746
IT Supplier and trade loan provider
-
55
Company
Entities controlled by a common director
-
180,746
IT Supplier and trade loan provider
-
55

The following amounts were outstanding at the reporting end date:

Amounts due from related parties
2023
2022
Balance
Balance
£
£
Group
Entities controlled by a common director
546,829
-
POWER BODY NUTRITION LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
24
Related party transactions
(Continued)
- 31 -
Company
Entities over which the company has control, joint control or significant influence
238,332
-
Entities controlled by a common director
546,829
-
25
Directors' transactions

Dividends totalling £190,000 (2022 - £180,992) were paid in the year in respect of shares held by the company's directors.

26
Controlling party

The group is controlled by Mr S Szulczewski, a director of the group.

27
Subsidiaries

Details of the company's subsidiaries at 31 May 2023 are as follows:

Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
Go Herbs Limited (1)
England and Wales
The retailing of nutritional supplements
Ordinary
100.00

(1) The registered office of this company is Unit 11 Chessingham Park, Common Road, York, YO19 5SE

28
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
13,781
11,951
Company pension contributions to defined contribution schemes
3,600
3,600
17,381
15,551

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2022 - 1).

29
Parent company guarantee of subsidiary

Power Body Nutrition Ltd has, in accordance with s479C of the Companies Act 2006, provided a guarantee over the liabilities of its subsidiary, Go Herbs Ltd (company registration number 11951346; registered in England & Wales; registered office address Unit 11, Chessingham Park, Common Road, York, YO19 5SE) which permits the subsidiary to not obtain an audit of their individual financial statements for the year ended 31 May 2023, in accordance with the exemptions conferred by s479A Companies Act 2006.

POWER BODY NUTRITION LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
- 32 -
30
Cash generated from group operations
2023
2022
£
£
Profit for the year after tax
2,159,793
2,472,597
Adjustments for:
Taxation charged
362,996
431,231
Finance costs
276,325
96,138
Loss on disposal of tangible fixed assets
328
97
Amortisation and impairment of intangible assets
698,925
823,517
Depreciation and impairment of tangible fixed assets
48,288
34,009
Movements in working capital:
Decrease/(increase) in stocks
2,053,915
(4,883,857)
Increase in debtors
(529,393)
(521,394)
(Decrease)/increase in creditors
(1,066,593)
3,196,841
Cash generated from operations
4,004,584
1,649,179
31
Analysis of changes in net debt - group
1 June 2022
Cash flows
New finance leases
31 May 2023
£
£
£
£
Cash at bank and in hand
980,390
(763,984)
-
216,406
Borrowings excluding overdrafts
(5,864,546)
2,655,235
-
(3,209,311)
Obligations under finance leases
(63,271)
21,410
(46,334)
(88,195)
(4,947,427)
1,912,661
(46,334)
(3,081,100)
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