Registered number: 13956155
PROGLOVE LTD
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
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PROGLOVE LTD
COMPANY INFORMATION
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Coventry University Technology Park
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Ecovis Wingrave Yeats LLP
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Chartered Accountants & Statutory Auditor
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3rd Floor, Waverley House
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PROGLOVE LTD
CONTENTS
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Notes to the Financial Statements
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PROGLOVE LTD
REGISTERED NUMBER: 13956155
BALANCE SHEET
AS AT 31 DECEMBER 2023
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Creditors: amounts falling due within one year
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Total assets less current liabilities
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Creditors: amounts falling due after more than one year
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The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the provisions of FRS 102 Section 1A - small entities.
The financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The Company has opted not to file the statement of comprehensive income in accordance with provisions applicable to companies subject to the small companies' regime.
The financial statements were approved and authorised for issue by the board and were signed on its behalf on 20 February 2024.
The notes on pages 2 to 8 form part of these financial statements.
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PROGLOVE LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
Proglove Ltd is a private company limited by shares, incorporated in England and Wales, registration number 13956155. The registered office is Coventry University Technology Park, Puma Way, Coventry, England, CV1 2TT.
2.Accounting policies
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Basis of preparation of financial statements
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The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Section 1A of Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).
The following principal accounting policies have been applied:
The company started trading during the year and is currently in its start-up phase and, as such, anticipates incurring losses in the short term as it works towards establishing its operations and market presence. To navigate through this period, the company is heavily reliant on financial support from its partner company. The directors have received formal assurances from the partner company, confirming their commitment to provide the necessary financial support for the continued operation of the company for at least 12 months following the date of these financial statements. This support is critical in ensuring that the company remains a going concern, capable of meeting its obligations and sustaining its operations during this initial phase.
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PROGLOVE LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
2.Accounting policies (continued)
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:
Sale of goods
Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
∙the Company has transferred the significant risks and rewards of ownership to the buyer;
∙the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
∙the amount of revenue can be measured reliably;
∙it is probable that the Company will receive the consideration due under the transaction; and
∙the costs incurred or to be incurred in respect of the transaction can be measured reliably.
Rendering of services
Revenue from separately sold warranty contracts is recognised over the period of the warranty coverage. The income is spread on a straight-line basis unless another method better reflects the timing of the services provided under the warranty. Unearned revenue is recorded as a liability and is recognised as income as the service obligations are fulfilled over the warranty period.
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PROGLOVE LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
2.Accounting policies (continued)
Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.
At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.
Stock loaned to customers is recognised as an asset and measured at the lower of cost and net realisable value. At year-end, a provision equal to the carrying amount of the loaned stock is made, reflecting full provision for any expected non-return or impairment, with any impairment loss charged to the profit and loss account.
The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of Comprehensive Income.
For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the Company would receive for the asset if it were to be sold at the balance sheet date.
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PROGLOVE LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
2.Accounting policies (continued)
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Foreign currency translation
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Functional and presentation currency
The Company's functional and presentational currency is GBP.
Transactions and balances
Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.
At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.
Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.
Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Statement of Comprehensive Income.
Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.
Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.
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PROGLOVE LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
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Judgments in applying accounting policies and key sources of estimation uncertainty
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Stock provision
Management are required to assess the valuation of stock and whether the valuation is appropriate. Where necessary, stock provisions are needed to accurately estimate the value of stock held. The stock
figure is reviewed annually and a provision included in the closing value of stock where necessary.
Management assesses the recoverability of loaned stock, determining the provision based on the stock's condition, customer agreements, and market conditions. Management have decided to fully provide for all loaned stock as at the year end.
Deferred tax asset
Management is required to assess whether it is appropriate to recognise a deferred tax asset relating to taxable losses available to the Company. The recognition of deferred tax assets is based upon whether it is more likely than not that sufficient and suitable taxable profits will be available in the future against which the reversal of losses and other deductions can be deducted. To determine the future taxable profits, reference is made to the latest available forecasts. Therefore, this involves judgement regarding the future financial performance of the Company in which a deferred tax asset has been recognised. Management have not recognised a deferred tax asset.
Warranty provision
A provision for warranty costs is recognised at the point of sale of a good for the estimated expenses of fulfilling warranty obligations, reflecting a prudent estimate of future costs. This provision is based on relevant information available at the financial statements date. The warranty provision is reviewed regularly and adjusted as necessary to reflect the current best estimate of the liability. Management has determined, based on their assessment, that a warranty provision is not required as of the reporting date.
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The average monthly number of employees, including directors, during the year was 7 (2022 - 0).
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Finished goods and goods for resale
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PROGLOVE LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
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Prepayments and accrued income
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Creditors: Amounts falling due within one year
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Amounts owed to group undertakings
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Other taxation and social security
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Accruals and deferred income
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Amounts owed to group undertakings are unsecured, interest-free and repayable on demand.
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Creditors: Amounts falling due after more than one year
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Accruals and deferred income
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Allotted, called up and fully paid
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1 (2022 - 1) Ordinary Shares share of £1.00
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PROGLOVE LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
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Commitments under operating leases
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At 31 December 2023 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:
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Related party transactions
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ProGlove Ltd have taken the exemption under FRS 102, Section 33 Related Party Disclosures paragraph 33.1A, whereby the Company is not required to disclose transactions between two or more members of a group, provided that they are wholly owned.
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The immediate parent company is Workaround GmbH whose registered office address is Rupert-Mayer Str. 44, 81379 Munich, Germany.
There is no ultimate controlling party.
The smallest group in whose consolidated financial statements the Company's financial statements are consolidated is ProGlove Investment GmbH, a company incorporated in the Germany. Its registered address is Rupert-Mayer Str. 44, 81379 Munich, Germany from which the consolidated results can be obtained.
The auditors' report on the financial statements for the year ended 31 December 2023 was unqualified.
The audit report was signed on 20 February 2024 by Jessica Teague (Senior Statutory Auditor) on behalf of Ecovis Wingrave Yeats LLP.
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