Company registration number 07330652 (England and Wales)
PILOT GROUP LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023
PILOT GROUP LIMITED
COMPANY INFORMATION
Directors
P I Hodari
S S Peppi
A J MacPherson
Secretary
W Littman
Company number
07330652
Registered office
15 Carnarvon Street
Manchester
M3 1HJ
Auditor
Lopian Gross Barnett & Co
1st Floor Cloister House
Riverside, New Bailey Street
Manchester
M3 5FS
Business address
15 Carnarvon Street
Manchester
M3 1HJ
PILOT GROUP LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 5
Directors' responsibilities statement
6
Independent auditor's report
7 - 9
Group profit and loss account
10
Group statement of comprehensive income
11
Group balance sheet
12 - 13
Company balance sheet
14
Group statement of changes in equity
15
Company statement of changes in equity
16
Group statement of cash flows
17
Notes to the financial statements
18 - 37
PILOT GROUP LIMITED
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 MAY 2023
- 1 -

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

Fair review of the business

The group and its subsidiary companies have worked hard with its suppliers and customers during the current financial year to enable trading to continue at strong levels, with operating margins at better than previous levels. Despite the global challenges, the business performed strongly, with revenues recovering to levels greater than the prior year. Overall the Group produced a pleasing result with revenues of £49.7m (2022: £48.6m) and profit before tax of £2.7m (2022: £2.3m). Gross profit margin was 27.6% (2022: 33.2%), and operating profit has increased to £2m from £1.6m.

Principal risks and uncertainties

The Group may be affected by a number of risks, not all of which are under it's control. The risks which may affect the Group are as follows, but the list is not exhaustive and other factors may adversely affect the company.

The Group seeks to mitigate these risks by management of its relationships and service levels with its customers, its product offerings, identification of alternate suppliers, monitoring of foreign exchange trends and fluctuations and monitoring any litigation issues with a view to minimising their impact.

 

In addition, the Group's operations expose it to a variety of financial risks that include the effects of credit, exchange rate, interest rate and liquidity risks.

 

The Group has no concentration of credit risk with respect to trade debtors due to having a large number of customers.

Key performance indicators

The Group's Key Performance Indicators are turnover and gross margin. These are fully disclosed in the financial statements and the Directors do not consider further disclosure necessary.

PILOT GROUP LIMITED
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 MAY 2023
- 2 -
Section 172(1) statement

The Directors of the company have acted in accordance with their duties codified in law, which include their duty to act in a way which they consider, in good faith, would most likely promote the success of the Company for the benefit of the members as a whole, having regards to all stakeholders and matters set out in s172(1) of the Companies Act 2016, including:

 

(a) the likely consequences of any decision in the long term;

(b) the interests of the company's employees;

(c) the need to foster the company's business relationships with suppliers, customers and others;

(d) the impact of the company's operations on the community and the environment;

(e) the desirability of the company maintaining a reputation for high standards of business conduct; and

(f) the need to act fairly as between members of the company.

 

The stakeholders of the business include employees, customers and suppliers to the business. The directors consider that they have acted in good faith to promote the success of the group on behalf of the stakeholders in relation to the matters set out in Section 172 of the Act.

 

The directors monitor and review strategic objectives against long term growth plans. Regular reviews are held across key business areas covering financial performance, risks and opportunities, Health and Safety, Human Resources and operations. The group's performance and progress are reviewed regularly at department and board meetings. This has a positive effect on the group's decisions and strategies implemented during the year.

On behalf of the board

A J MacPherson
Director
29 February 2024
PILOT GROUP LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MAY 2023
- 3 -

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

Principal activities

Pilot Group Limited is a holding company. The principal activities of the consolidated Group are the distribution of electrical components, and the design and manufacture of traffic management systems and energy management systems. The Group operates from four sites across England, and is headquartered in Manchester.

Results and dividends

The results for the year are set out on page 10.

Ordinary dividends were paid to controlling interests amounting to £1,250,001. The directors do not recommend payment of a further dividend. Dividends paid to the non-controlling interest were £765,316.

Directors

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

P I Hodari
S S Peppi
C Pearson
(Resigned 5 September 2022)
A J MacPherson
Qualifying third party indemnity provisions

The company has made qualifying third party indemnity provisions for the benefit of its directors during the year. These provisions remain in force at the reporting date.

Financial instruments
Financial risk management objectives and policies

For the purposes of financial risk management, the group manages its cash and borrowing requirements in order to maximise interest income and minimise interest expense, whilst ensuring the group has sufficient liquid resources to meet the operating needs of the business and group as a whole.

 

The group's operations expose it to a variety of financial risks that include debt management, credit risk, liquidity risk and interest rate risk. The group has risk management systems in place that seek to limit any adverse effects on the financial performance of the group by continuously monitoring these risk areas.

 

Given the size of the group, the directors have not delegated the responsibility of monitoring financial risk management to a sub-committee of the board. The policies set by the board of directors are implemented by the group's finance department.

 

The directors will revisit the appropriateness of this policy should the group's operations change in size or in nature.

Research and development

In order to operate efficiently and effectively, the group continues to invest in its in-house CRM and trading platform, with further enhancements of this planned for the coming year.

Future developments

The group continues to develop strong and long-lasting relationships with existing and new customers across all of its operating regions and to deliver revenue and margin growth.

Auditor

In accordance with the company's articles, a resolution proposing that Lopian Gross Barnett & Co be reappointed as auditor of the group will be put at a General Meeting.

PILOT GROUP LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
- 4 -
Energy and carbon report

The following energy information is for the year to 31 May 2023:

2023
2022
Energy consumption
kWh
kWh
Aggregate of energy consumption in the year
295,000
350,000
2023
2022
Emissions of CO2 equivalent
metric tonnes
metric tonnes
Scope 1 - direct emissions
- Gas combustion
60.10
106.00
60.10
106.00
Scope 2 - indirect emissions
- Electricity purchased
148.80
141.40
Total gross emissions
208.90
247.40
Intensity ratio
Tonnes of CO2e per employee
1.5946
1.8191
Quantification and reporting methodology

The group has followed the 2019 HM Government Environmental Reporting Guidelines. The group has also used the GHG Reporting Protocol – Corporate Standard and have used the 2020 UK Government’s Conversion Factors for Company Reporting

Intensity measurement

The chosen intensity measurement ratio is total gross emissions in metric tonnes CO2e (and equivalent gasses) emitted by the generation of electricity from the UK National Grid.

Measures taken to improve energy efficiency

The directors of the group are continually investigating methods to reduce carbon footprint through reduction of gas and electricity usage.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

Strategic report

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

Business relationships

The directors have considered the need to foster business relationships with the group's suppliers, customers and other stakeholders by continuous communication and appropriately upholding all stakeholders' needs. The effect of such conduct and these principal decisions made by the directors improves relationships between the group and its stakeholders.

PILOT GROUP LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
- 5 -
On behalf of the board
A J MacPherson
Director
29 February 2024
PILOT GROUP LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MAY 2023
- 6 -

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.

PILOT GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF PILOT GROUP LIMITED
- 7 -
Opinion

We have audited the financial statements of Pilot Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 May 2023 which comprise the group profit and loss account, 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:

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

PILOT GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF PILOT GROUP LIMITED
- 9 -

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.

 

 

 

 

 

 

 

 

 

Due to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing fraud or non-compliance with laws and regulations and cannot be expected to detect all fraud and non-compliance with laws and regulations.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Jonathan Brodie FCA (Senior Statutory Auditor)
For and on behalf of Lopian Gross Barnett & Co
29 February 2024
Chartered Accountants
Statutory Auditor
1st Floor Cloister House
Riverside, New Bailey Street
Manchester
M3 5FS
PILOT GROUP LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 MAY 2023
- 10 -
Continuing
Discontinued
31 May
Continuing
Discontinued
31 May
operations
operations
2023
operations
operations
2022
Notes
£
£
£
£
£
£
Turnover
3
49,660,740
-
49,660,740
46,524,966
2,053,250
48,578,216
Cost of sales
(35,958,563)
-
(35,958,563)
(31,029,672)
(1,439,967)
(32,469,639)
Gross profit
13,702,177
-
13,702,177
15,495,294
613,283
16,108,577
Administrative expenses
(11,707,732)
-
(11,707,732)
(13,072,555)
(1,404,539)
(14,477,094)
Other operating income
48,263
-
48,263
4,462
-
4,462
Operating profit
4
2,042,708
-
2,042,708
2,427,201
(791,256)
1,635,945
Share of results of associates and joint ventures
(46,357)
-
(46,357)
-
-
-
Interest receivable and similar income
8
434,253
-
434,253
230,084
-
230,084
Interest payable and similar expenses
9
(14,385)
-
(14,385)
(45,754)
-
(45,754)
Amounts written off investments
10
270,364
-
270,364
505,000
-
505,000
Profit before taxation
2,686,583
-
2,686,583
3,116,531
(791,256)
2,325,275
Tax on profit
11
(1,003,274)
-
(1,003,274)
(497,920)
-
(497,920)
Profit for the financial year
1,683,309
-
1,683,309
2,618,611
(791,256)
1,827,355
Profit for the financial year is attributable to:
- Owners of the parent company
1,031,746
1,301,710
- Non-controlling interests
651,563
525,645
1,683,309
1,827,355
PILOT GROUP LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MAY 2023
- 11 -
2023
2022
£
£
Profit for the year
1,683,309
1,827,355
Other comprehensive income
-
-
Total comprehensive income for the year
1,683,309
1,827,355
Total comprehensive income for the year is attributable to:
- Owners of the parent company
1,031,746
1,301,710
- Non-controlling interests
651,563
525,645
1,683,309
1,827,355
PILOT GROUP LIMITED
GROUP BALANCE SHEET
AS AT
31 MAY 2023
31 May 2023
- 12 -
2023
2022
Notes
£
£
£
£
Fixed assets
Goodwill
15
822,398
1,083,132
Other intangible assets
15
34,864
97,929
Total intangible assets
857,262
1,181,061
Tangible assets
16
485,422
537,342
Investments
17
303,643
723,636
1,646,327
2,442,039
Current assets
Stocks
20
4,620,600
2,515,931
Debtors
22
12,154,365
11,516,426
Cash at bank and in hand
1,710,972
3,656,373
18,485,937
17,688,730
Creditors: amounts falling due within one year
23
(8,675,607)
(8,076,855)
Net current assets
9,810,330
9,611,875
Total assets less current liabilities
11,456,657
12,053,914
Creditors: amounts falling due after more than one year
24
-
(250,003)
Provisions for liabilities
Deferred tax liability
27
29,560
44,806
(29,560)
(44,806)
Net assets
11,427,097
11,759,105
Capital and reserves
Called up share capital
29
661,590
661,590
Share premium account
30
258,583
258,583
Profit and loss reserves
7,088,989
7,307,244
Equity attributable to owners of the parent company
8,009,162
8,227,417
Non-controlling interests
3,417,935
3,531,688
11,427,097
11,759,105
PILOT GROUP LIMITED
GROUP BALANCE SHEET (CONTINUED)
AS AT
31 MAY 2023
31 May 2023
- 13 -
The financial statements were approved by the board of directors and authorised for issue on 29 February 2024 and are signed on its behalf by:
29 February 2024
A J MacPherson
Director
Company registration number 07330652 (England and Wales)
PILOT GROUP LIMITED
COMPANY BALANCE SHEET
AS AT 31 MAY 2023
31 May 2023
- 14 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
16
-
0
29
Investments
17
3,329,243
3,204,243
3,329,243
3,204,272
Current assets
Debtors
22
5,609,340
5,975,082
Cash at bank and in hand
41,378
304,153
5,650,718
6,279,235
Creditors: amounts falling due within one year
23
(6,312,655)
(9,393,911)
Net current liabilities
(661,937)
(3,114,676)
Total assets less current liabilities
2,667,306
89,596
Creditors: amounts falling due after more than one year
24
-
(250,003)
Net assets/(liabilities)
2,667,306
(160,407)
Capital and reserves
Called up share capital
29
661,590
661,590
Share premium account
30
258,583
258,583
Profit and loss reserves
1,747,133
(1,080,580)
Total equity
2,667,306
(160,407)

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the board of directors and authorised for issue on 29 February 2024 and are signed on its behalf by:
29 February 2024
A J MacPherson
Director
Company registration number 07330652 (England and Wales)
PILOT GROUP LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MAY 2023
- 15 -
Share capital
Share premium account
Profit and loss reserves
Total controlling interest
Non-controlling interest
Total
Notes
£
£
£
£
£
£
Balance at 1 June 2021
661,590
258,583
6,505,534
7,425,707
3,006,043
10,431,750
Year ended 31 May 2022:
Profit and total comprehensive income
-
-
1,301,710
1,301,710
525,645
1,827,355
Dividends
13
-
-
(500,000)
(500,000)
-
(500,000)
Balance at 31 May 2022
661,590
258,583
7,307,244
8,227,417
3,531,688
11,759,105
Year ended 31 May 2023:
Profit and total comprehensive income
-
-
1,031,746
1,031,746
651,563
1,683,309
Dividends
13
-
-
(1,250,001)
(1,250,001)
(765,316)
(2,015,317)
Balance at 31 May 2023
661,590
258,583
7,088,989
8,009,162
3,417,935
11,427,097
PILOT GROUP LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MAY 2023
- 16 -
Share capital
Share premium account
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 June 2021
661,590
258,583
(1,917,285)
(997,112)
Year ended 31 May 2022:
Profit and total comprehensive income for the year
-
-
1,336,705
1,336,705
Dividends
13
-
-
(500,000)
(500,000)
Balance at 31 May 2022
661,590
258,583
(1,080,580)
(160,407)
Year ended 31 May 2023:
Profit and total comprehensive income
-
-
4,077,714
4,077,714
Dividends
13
-
-
(1,250,001)
(1,250,001)
Balance at 31 May 2023
661,590
258,583
1,747,133
2,667,306
PILOT GROUP LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MAY 2023
- 17 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
38
569,376
745,220
Interest paid
(14,385)
(45,754)
Income taxes (paid)/refunded
(225,723)
2,279
Net cash inflow from operating activities
329,268
701,745
Investing activities
Purchase of intangible assets
-
(1,109,505)
Proceeds from disposal of intangibles
41,136
12,075
Purchase of tangible fixed assets
(91,186)
(84,596)
Proceeds from disposal of tangible fixed assets
10,676
800
Proceeds from disposal of subsidiaries, net of cash disposed
-
505,000
Purchase of associates
(225,500)
(75,000)
Proceeds from disposal of associates
869,500
-
(Repayment)/drawdown of loans
(31,272)
134,442
Interest received
434,253
230,084
Net cash generated from/(used in) investing activities
1,007,607
(386,700)
Financing activities
Repayment of borrowings
(250,003)
(999,997)
(Repayment)/drawdown of bank loans
(1,000,000)
250,000
Payment of finance leases obligations
(9,742)
(21,308)
Dividends paid to equity shareholders
(1,250,001)
(500,000)
Dividends paid to non-controlling interests
(765,316)
-
0
Net cash used in financing activities
(3,275,062)
(1,271,305)
Net decrease in cash and cash equivalents
(1,938,187)
(956,260)
Cash and cash equivalents at beginning of year
3,649,159
4,605,419
Cash and cash equivalents at end of year
1,710,972
3,649,159
Relating to:
Cash at bank and in hand
1,710,972
3,656,373
Bank overdrafts included in creditors payable within one year
-
(7,214)
PILOT GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023
- 18 -
1
Accounting policies
Company information

Pilot Group Limited (“the company”) is a private company, limited by shares, domiciled and incorporated in England and Wales. The registered office is 15 Carnarvon Street, Manchester, M3 1HJ.

 

The group consists of Pilot Group Limited and all of its subsidiaries.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date.

1.3
Basis of consolidation

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

 

All financial statements are made up to 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.

1.4
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.

1.5
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.

PILOT GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
1
Accounting policies
(Continued)
- 19 -
1.6
Research and development expenditure

Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.

1.7
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years based on group plans.

1.8
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.

 

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

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
33% straight line
Capitalised development costs
25% in use, 0% when not in use
Other intellectual property
25% straight line

No amortisation was charged on development costs as these assets were not in use at the balance sheet date.

1.9
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
0% straight line
Leasehold improvements
33% straight line (over remaining term of the lease)
Plant and equipment
33% straight line
Fixtures and fittings
33% straight line
Computers
33% straight line
Motor vehicles
33% straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account. Leasehold land and buildings are held over a 999 year lease and the carrying amount is not considered different to its cost.

1.10
Fixed asset investments

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

PILOT GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
1
Accounting policies
(Continued)
- 20 -

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.

1.11
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.

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.

1.12
Cash and cash equivalents

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

1.13
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.

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.

PILOT GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
1
Accounting policies
(Continued)
- 21 -
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.

Derecognition of financial liabilities

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

1.14
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.

1.15
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.

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.

PILOT GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
1
Accounting policies
(Continued)
- 22 -
1.16
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.

1.17
Retirement benefits

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

1.18
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.

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

1.19
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

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.

PILOT GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
- 23 -
3
Turnover and other revenue

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

2023
2022
£
£
Turnover analysed by class of business
Sale of relevant goods and services
49,660,740
48,578,216
2023
2022
£
£
Turnover analysed by geographical market
UK & Worldwide
49,660,740
48,578,216
2023
2022
£
£
Other revenue
Interest income
434,253
230,084
4
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange losses/(gains)
33,134
(148,004)
Research and development costs
-
34,608
Depreciation of owned tangible fixed assets
132,430
123,658
Profit on disposal of tangible fixed assets
-
(800)
Amortisation of intangible assets
282,663
147,769
Impairment of intangible assets
-
0
432,006
Operating lease charges
475,637
560,569
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
5,000
8,550
Audit of the financial statements of the company's subsidiaries
80,000
80,000
85,000
88,550
PILOT GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
- 24 -
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
Average Number of Employees
131
136
6
6

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
7,114,498
7,381,232
923,624
730,735
Social security costs
726,089
775,434
104,904
94,395
Pension costs
155,569
195,889
35,191
47,569
7,996,156
8,352,555
1,063,719
872,699
7
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
1,040,320
587,313
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
405,427
385,539
8
Interest receivable and similar income
2023
2022
£
£
Interest income
Other interest income
434,253
230,084
PILOT GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
- 25 -
9
Interest payable and similar expenses
2023
2022
£
£
Interest on bank overdrafts and loans
5,608
42,440
Interest on finance leases and hire purchase contracts
1,913
3,314
Other interest
6,864
-
Total finance costs
14,385
45,754
10
Gains/(losses) on disposal of investments
2023
2022
£
£
Gain on disposal of subsidiary
-
505,000
Gain on disposal of associate
270,364
-
270,364
505,000
11
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
1,265,226
484,410
Adjustments in respect of prior periods
(250,015)
-
0
Total current tax
1,015,211
484,410
Deferred tax
Origination and reversal of timing differences
(11,937)
13,510
Total tax charge
1,003,274
497,920
PILOT GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
11
Taxation
(Continued)
- 26 -

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
2,686,583
2,325,275
Expected tax charge based on the standard rate of corporation tax in the UK of 20.00% (2022: 19.00%)
537,317
441,802
Tax effect of expenses that are not deductible in determining taxable profit
56,598
30,200
Gains not taxable
(54,072)
-
0
Adjustments in respect of prior years
175,900
-
0
Effect of change in corporation tax rate
-
8,919
Depreciation on assets not qualifying for tax allowances
9,067
7,311
Amortisation on assets not qualifying for tax allowances
17,052
6,199
Under/(over) provided in prior years
250,015
-
0
Other tax adjustments
-
0
3,489
Deferred tax
11,397
-
0
Taxation charge
1,003,274
497,920
12
Discontinued operations
Disposal of Pilot Group Infrastructure Limited

During the prior financial year, Hilclare Limited (formerly Pilot Group Infrastructure Limited) was disposed of for £505,000. The results for Hilclare Limited are consolidated up to April-2022. As the group held a nil investment in Hilclare Limited the resulting profit on disposal was £505,000.

13
Dividends
2023
2022
Recognised as distributions to equity holders:
£
£
Final paid
1,250,001
500,000
PILOT GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
- 27 -
14
Impairments

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

2023
2022
Notes
£
£
In respect of:
Goodwill
15
-
300,029
Intangible assets
15
-
131,977
Recognised in:
Administrative expenses
-
432,006
15
Intangible fixed assets
Group
Goodwill
Software
Capitalised development costs
Other intellectual property
Total
£
£
£
£
£
Cost
At 1 June 2022
2,050,804
24,019
183,515
55,000
2,313,338
Disposals
-
0
(24,019)
(17,117)
-
0
(41,136)
At 31 May 2023
2,050,804
-
0
166,398
55,000
2,272,202
Amortisation and impairment
At 1 June 2022
967,672
-
0
155,677
8,928
1,132,277
Amortisation charged for the year
260,734
-
0
3,779
18,150
282,663
At 31 May 2023
1,228,406
-
0
159,456
27,078
1,414,940
Carrying amount
At 31 May 2023
822,398
-
0
6,942
27,922
857,262
At 31 May 2022
1,083,132
24,019
27,838
46,072
1,181,061
The company had no intangible fixed assets at 31 May 2023 or 31 May 2022.
PILOT GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
- 28 -
16
Tangible fixed assets
Group
Leasehold land and buildings
Leasehold improvements
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
£
£
Cost
At 1 June 2022
253,447
291,174
258,415
272,832
1,678,952
12,305
2,767,125
Additions
-
0
-
0
10,657
78,881
1,648
-
0
91,186
Disposals
-
0
-
0
(67,363)
(237,890)
(1,528,780)
(12,305)
(1,846,338)
At 31 May 2023
253,447
291,174
201,709
113,823
151,820
-
0
1,011,973
Depreciation and impairment
At 1 June 2022
-
0
199,601
248,707
251,834
1,517,336
12,305
2,229,783
Depreciation charged in the year
-
0
45,334
7,681
16,992
62,423
-
0
132,430
Eliminated in respect of disposals
-
0
-
0
(67,363)
(237,890)
(1,518,104)
(12,305)
(1,835,662)
At 31 May 2023
-
0
244,935
189,025
30,936
61,655
-
0
526,551
Carrying amount
At 31 May 2023
253,447
46,239
12,684
82,887
90,165
-
0
485,422
At 31 May 2022
253,447
91,573
9,708
20,998
161,616
-
0
537,342
PILOT GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
- 29 -
Company
Computers
£
Cost
At 1 June 2022
29
Disposals
(29)
At 31 May 2023
-
0
Depreciation and impairment
At 1 June 2022 and 31 May 2023
-
0
Carrying amount
At 31 May 2023
-
0
At 31 May 2022
29

Leasehold land and buildings relates to land and buildings with a long leasehold (more than 50 years).

17
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
18
-
0
-
0
2,979,243
2,979,243
Investments in associates
19
303,643
498,636
350,000
-
0
Unlisted investments
-
0
225,000
-
0
225,000
303,643
723,636
3,329,243
3,204,243
Movements in fixed asset investments
Group
Shares in associates
Other investments
Total
£
£
£
Cost or valuation
At 1 June 2022
498,636
225,000
723,636
Additions
100,500
125,000
225,500
Reclassification
350,000
(350,000)
-
Share of losses
(46,357)
-
(46,357)
Disposals
(599,136)
-
(599,136)
At 31 May 2023
303,643
-
303,643
Carrying amount
At 31 May 2023
303,643
-
303,643
At 31 May 2022
498,636
225,000
723,636
PILOT GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
17
Fixed asset investments
(Continued)
- 30 -
Movements in fixed asset investments
Company
Shares in subsidiaries and associates
Other investments
Total
£
£
£
Cost or valuation
At 1 June 2022
2,979,243
225,000
3,204,243
Additions
-
125,000
125,000
Reclassification
350,000
(350,000)
-
At 31 May 2023
3,329,243
-
3,329,243
Carrying amount
At 31 May 2023
3,329,243
-
3,329,243
At 31 May 2022
2,979,243
225,000
3,204,243

During the financial year, the company purchased further shares in Nomad Energy Solutions Limited. Following on from this, Pilot Group now has a participating interest in the company and the investment has been reclassified during the year.

18
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
Indirect
Crystalised Limited
United Kingdom
Dormant
Ordinary
-
100.00
DP Medimaging Limited
United Kingdom
Dormant
Ordinary
-
100.00
Electric Systems Limited
United Kingdom
Sale of electrical goods
Ordinary
-
84.80
ESL Investco Limited
United Kingdom
Holding company
Ordinary
84.80
-
Pilot Group Investments Limited
United Kingdom
Investment holding company
Ordinary
100.00
-
Pilot Group Medical Limited
United Kingdom
Dormant
Ordinary
100.00
-
Pilot Group Services Limited
United Kingdom
Services to group
Ordinary
100.00
-
Pilot Group Technology Limited
United Kingdom
Dormant
Ordinary
100.00
-
TWM Traffic Control Systems Limited
United Kingdom
Traffic control systems
Ordinary
100.00
-
Pilot Group Enterprise (IT) Limited
United Kingdom
Sale of IT equipment
Ordinary
-
100.00
Ledclever Limited
United Kingdom
Dormant company
Ordinary
100.00
-
Colldevar Limited
United Kingdom
Dormant company
Ordinary
-
100.00
Pilot Group Net Zero Solutions Limited
Unitde Kingdom
Provision of energy management systems.
Ordinary
100.00
-
Electric Systems Logistics Limited
United Kingdom
Sale of electrical goods
Ordinary
-
84.80
PILOT GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
18
Subsidiaries
(Continued)
- 31 -

All of the above subsidiaries are included in the consolidated accounts. The full registered office of each company is the same as that of Pilot Group Limited.

19
Associates

Details of associates at 31 May 2023 are as follows:

Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
Nomad Energy Solutions UK Limited
England & Wales
Information technology consultancy
Ordinary
29
20
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Raw materials and consumables
829,078
564,745
-
-
Work in progress
5,818
-
-
-
Finished goods and goods for resale
3,785,704
1,951,186
-
0
-
0
4,620,600
2,515,931
-
-
21
Financial instruments

There are no financial instruments held at fair value within the group in the current or previous year.

22
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
6,775,261
8,056,573
-
0
1,502,158
Amounts owed by group undertakings
-
-
1,475,001
1,499,721
Amounts owed by undertakings in which the company has a participating interest
100,000
-
100,000
-
Other debtors
4,955,617
3,135,198
4,032,258
2,971,845
Prepayments and accrued income
323,487
321,346
2,081
1,358
12,154,365
11,513,117
5,609,340
5,975,082
Deferred tax asset (note 27)
-
0
3,309
-
0
-
0
12,154,365
11,516,426
5,609,340
5,975,082
PILOT GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
- 32 -
23
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
25
-
0
1,007,214
-
0
1,000,000
Obligations under finance leases
26
-
0
9,742
-
0
-
0
Trade creditors
4,365,949
3,261,410
15,683
-
0
Amounts owed to group undertakings
-
0
-
0
5,973,738
8,145,736
Corporation tax payable
1,528,818
739,330
-
0
-
0
Other taxation and social security
596,649
738,996
79,394
50,300
Other creditors
184,705
366,814
1,706
15,489
Accruals and deferred income
1,999,486
1,953,349
242,134
182,386
8,675,607
8,076,855
6,312,655
9,393,911
24
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Other borrowings
25
-
0
250,003
-
0
250,003
25
Loans and overdrafts
Group
Company
2023
2022
2023
2022
£
£
£
£
Bank loans
-
0
1,000,000
-
0
1,000,000
Bank overdrafts
-
0
7,214
-
0
-
0
Other loans
-
0
250,003
-
0
250,003
-
1,257,217
-
1,250,003
Payable within one year
-
0
1,007,214
-
0
1,000,000
Payable after one year
-
0
250,003
-
0
250,003
26
Finance lease obligations
Group
Company
2023
2022
2023
2022
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
-
0
9,742
-
0
-
0

Finance lease payments represent rentals payable by the company for certain items of plant and machinery. This has been repaid during the year.

PILOT GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
- 33 -
27
Deferred taxation

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

Liabilities
Liabilities
Assets
Assets
2023
2022
2023
2022
Group
£
£
£
£
Accelerated capital allowances
29,560
44,806
-
-
Tax losses
-
-
-
3,309
29,560
44,806
-
3,309
The company has no deferred tax assets or liabilities.
Group
Company
2023
2023
Movements in the year:
£
£
Liability at 1 June 2022
41,497
-
Credit to profit or loss
(11,937)
-
Liability at 31 May 2023
29,560
-

The deferred tax balances (comprising of both a deferred tax asset and liability) are expected to converge to zero in following periods as the gap between the net book value of assets and capital allowances pools decrease.

28
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
155,569
195,889

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.

29
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of £1 each
661,590
661,590
661,590
661,590

All of the ordinary shares have equal rights and preferences.

PILOT GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
- 34 -
30
Share premium account
Group
Company
2023
2022
2023
2022
£
£
£
£
At the beginning and end of the year
258,583
258,583
258,583
258,583
31
Reserves

Reserves are described as follows:

 

Share capital reflects the nominal value of shares issued by the company

 

Share premium reflects the premium paid for shares issued by the company.

 

Retained earnings reflects the historical profits earned by the group / company.

32
Financial commitments, guarantees and contingent liabilities

Within subsidiary company Electric Systems Limited, there is a guarantee dated 14 February 2019 for £100,000 with HM Revenue and Customs.

33
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
464,019
479,605
-
-
Between two and five years
404,414
868,433
-
-
868,433
1,348,038
-
-
PILOT GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
33
Operating lease commitments
(Continued)
- 35 -
Lessor

The operating leases represent property sub-let to third parties. The leases are negotiated over terms of four years on average.

At the reporting end date the group had contracted with tenants for the following minimum lease payments:

 

Group
Company
2023
2022
2023
2022
£
£
£
£
Within one year
79,713
79,713
-
-
Between two and five years
90,439
170,152
-
-
170,152
249,865
-
-
34
Related party transactions
Transactions with related parties
Loan interest received
Loan interest paid
2023
2022
2023
2022
£
£
£
£
Company
Entities over which the entity has control, joint control or significant influence
-
-
436,644
217,766
Other related parties
436,637
216,275
-
-

The following amounts were outstanding at the reporting end date:

Amounts due to related parties
2023
2022
£
£
Company
Entities over which the company has control, joint control or significant influence
5,973,738
8,145,736

The following amounts were outstanding at the reporting end date:

Amounts due from related parties
2023
2022
Balance
Balance
£
£
Group
Other related parties
4,869,500
2,459,826
PILOT GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
34
Related party transactions
(Continued)
- 36 -
Company
Entities over which the company has control, joint control or significant influence
1,575,001
1,499,721
Other related parties
4,000,000
2,459,826
Other information

Interest has been received on loans to related parties, while interest has been charged on loans from subsidiaries. The loans are not secured.

35
Directors' transactions

Dividends totalling £970,617 (2022 - £388,247) were paid in the year in respect of shares held by the company's directors.

36
Controlling party

There is no individual ultimate controlling party by virtue of the fact there are no parties who individually have control over the group.

37
Post balance sheet events

There were no events after the reporting period end date which require disclosure at the balance sheet date.

38
Cash generated from group operations
2023
2022
£
£
Profit for the year after tax
1,683,309
1,827,355
Adjustments for:
Share of results of associates and joint ventures
46,357
-
Taxation charged
1,003,274
497,920
Finance costs
14,385
45,754
Investment income
(434,253)
(230,084)
Gain on disposal of tangible fixed assets
-
(800)
Amortisation and impairment of intangible assets
282,663
579,775
Depreciation and impairment of tangible fixed assets
132,430
123,658
Other gains and losses
(270,364)
(505,000)
Decrease in provisions
-
(5,839)
Movements in working capital:
(Increase)/decrease in stocks
(2,104,669)
787,190
Increase in debtors
(609,976)
(1,604,799)
Increase/(decrease) in creditors
826,220
(769,910)
Cash generated from operations
569,376
745,220
PILOT GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
- 37 -
39
Analysis of changes in net funds - group
1 June 2022
Cash flows
31 May 2023
£
£
£
Cash at bank and in hand
3,656,373
(1,945,401)
1,710,972
Bank overdrafts
(7,214)
7,214
-
0
3,649,159
(1,938,187)
1,710,972
Borrowings excluding overdrafts
(1,250,003)
1,250,003
-
Obligations under finance leases
(9,742)
9,742
-
2,389,414
(678,442)
1,710,972
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