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Registration number: 01724354

Patrico Limited

Annual Report and Unaudited Financial Statements

for the Period from 1 July 2022 to 14 July 2023

 

Patrico Limited

Contents

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3 to 10

 

Patrico Limited

Company Information

Directors

J Herbert

S T Pearce

G R D Atkinson

G P Atkinson

Company secretary

S T Pearce

Registered office

Moat Works
Moat Road
West Wilts Trading Estate
Westbury
BA13 4JF

Bankers

Lloyds Bank Plc
Crest Way
Barnett Way
Gloucester
GL4 3RL

Accountants

Hazlewoods LLP
Chartered Accountants
Windsor House
Bayshill Road
Cheltenham
GL50 3AT

 

Patrico Limited

(Registration number: 01724354)
Balance Sheet as at 14 July 2023

Note

2023
£

2022
£

Fixed assets

 

Tangible assets

4

1,863,253

1,886,931

Current assets

 

Stocks

1,000,132

924,422

Debtors

5

1,462,469

1,456,362

Cash at bank and in hand

 

920,308

453,293

 

3,382,909

2,834,077

Creditors: Amounts falling due within one year

6

(1,847,004)

(1,770,144)

Net current assets

 

1,535,905

1,063,933

Total assets less current liabilities

 

3,399,158

2,950,864

Creditors: Amounts falling due after more than one year

6

(61,279)

(97,419)

Deferred tax liabilities

(201,769)

(196,653)

Net assets

 

3,136,110

2,656,792

Capital and reserves

 

Called up share capital

9

4,000

3,800

Share premium reserve

14,300

-

Revaluation reserve

403,218

403,218

Profit and loss account

2,714,592

2,249,774

Shareholders' funds

 

3,136,110

2,656,792

For the financial period ending 14 July 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

The members have not required the company to obtain an audit of its accounts for the period in question in accordance with section 476; and

The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime and the option not to file the Profit and Loss Account has been taken.

Approved and authorised by the Board on 19 October 2023 and signed on its behalf by:
 

.........................................
S T Pearce
Company secretary and director

   
     
 

Patrico Limited

Notes to the Financial Statements for the Period from 1 July 2022 to 14 July 2023

 

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
Moat Works
Moat Road
West Wilts Trading Estate
Westbury
BA13 4JF

The principal place of business is:
Northway Lodge
Northway Lane
Tewkesbury
GL20 8JG

 

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A smaller entities - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006 (as applicable to companies subject to the small companies' regime).

Basis of preparation

These financial statements have been prepared using the historical cost convention except for, where disclosed in these accounting policies, certain items that are shown at fair value.

The presentational currency of the financial statements is Pounds Sterling, being the functional currency of the primary economic environment in which the company operates. Monetary amounts in these financial statements are rounded to the nearest Pound.

Going concern

After reviewing the company's forecasts and projections, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The company therefore continues to adopt the going concern basis in preparing its financial statements.

Critical accounting judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amounts 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
 

Judgements

No significant judgements have been made by management in preparing these financial statements.

 

Patrico Limited

Notes to the Financial Statements for the Period from 1 July 2022 to 14 July 2023

 

2

Accounting policies (continued)

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts and after eliminating sales within the company.

The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in the profit and loss account, except that a charge attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current corporation tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Deferred tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements and on unused tax losses or tax credits in the company. Deferred income tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.

Tangible assets

Tangible assets, with the exception of land and buildings, are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

Land and buildings are stated at their revalued amount, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Freehold land

Nil

Freehold buildings

2% straight line

Plant and machinery

33.3% written down value

Fixtures, fittings, computer & other electronic equipment

15% of written down value

Motor vehicles

25% of written down value

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. All trade debtors are repayable within one year and hence are included at the undiscounted cost of cash expected to be received. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the debtors.

 

Patrico Limited

Notes to the Financial Statements for the Period from 1 July 2022 to 14 July 2023

 

2

Accounting policies (continued)

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out method.

The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are 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.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and all are repayable within one year and hence are included at the undiscounted amount of cash expected to be paid.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Leases

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

Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the Balance Sheet as a finance lease obligation.

Lease payments are apportioned between finance costs in the Profit and Loss Account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Dividends

Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

 

Patrico Limited

Notes to the Financial Statements for the Period from 1 July 2022 to 14 July 2023

 

2

Accounting policies (continued)

Financial instruments


Classification
Financial instruments are classified and accounted for according to the substance of the contractual arrangement, as financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. Where shares are issued, any component that creates a financial liability of the company is presented as a liability on the balance sheet. The corresponding dividends relating to the liability component are charged as interest expenses in the profit and loss account.

Recognition and measurement
All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

Impairment
Assets, other than those measured at fair value, are assessed for indicators of impairment at each balance sheet date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss as described below.

A non financial asset is impaired where there is objective evidence that, as a result of one or more events that occurred after initial recognition, the estimated recoverable value of the asset has been reduced. The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use.

The recoverable amount of goodwill is derived from measurement of the present value of the future cash flows of the cash-generating units ('CGUs') of which the goodwill is a part. Any impairment loss in respect of a CGU is allocated first to the goodwill attached to that CGU, and then to other assets within that CGU on a pro-rata basis.

Where indicators exist for a decrease in impairment loss, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised. Where a reversal of impairment occurs in respect of a CGU, the reversal is applied first to the assets (other than goodwill) of the CGU on a pro-rata basis and then to any goodwill allocated to that CGU.

For financial assets carried at amortised cost, the amount of an impairment is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the financial asset’s original effective interest rate.

For financial assets carried at cost less impairment, the impairment loss is the difference between the asset’s carrying amount and the best estimate of the amount that would be received for the asset if it were to be sold at the reporting date.

Where indicators exist for a decrease in impairment loss, and the decrease can be related objectively to an event occurring after the impairment was recognised, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired financial asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised.

 

Patrico Limited

Notes to the Financial Statements for the Period from 1 July 2022 to 14 July 2023

 

3

Staff numbers

The average number of persons employed by the company (including directors) during the period, was 26 (2022 - 25).

 

4

Tangible assets

Land and buildings
£

Plant and machinery
 £

Fixtures and fittings
 £

Motor vehicles
 £

Total
£

Cost or valuation

At 1 July 2022

1,700,000

284,581

76,312

513,414

2,574,307

Additions

-

-

2,200

82,930

85,130

Disposals

-

-

-

(74,746)

(74,746)

At 14 July 2023

1,700,000

284,581

78,512

521,598

2,584,691

Depreciation

At 1 July 2022

189,000

109,222

64,140

325,014

687,376

Charge for the year

28,016

11,929

4,340

61,414

105,699

Eliminated on disposal

-

-

-

(71,637)

(71,637)

At 14 July 2023

217,016

121,151

68,480

314,791

721,438

Carrying amount

At 14 July 2023

1,482,984

163,430

10,032

206,807

1,863,253

At 30 June 2022

1,511,000

175,359

12,172

188,400

1,886,931

Leased assets

Included in the net book value of tangible fixed assets is £182,349 (2022 - £130,225) in respect of assets held under finance leases and similar hire purchase contracts. Depreciation for the year on these assets was £30,197 (2022 - £42,488).

Revaluations

The freehold land and buildings class of fixed assets was revalued on 14 August 2015 to £1,700,000 by Bruton Knowles who is external to the company. The basis of this valuation was market value. This class of assets has a current balance sheet value of £1,482,984 (2022 - £1,511,000) and a carrying amount at historical cost of £1,450,831 (2022 - £1,450,831). The depreciation on this historical cost is £360,062 (2022 - £333,440).

The gross amount of non-depreciable assets included in tangible fixed assets is £350,000 (2022 - £350,000).

 

Patrico Limited

Notes to the Financial Statements for the Period from 1 July 2022 to 14 July 2023

 

5

Debtors

14 July 2023
 £

30 June 2022
 £

Trade debtors

1,423,463

1,428,445

Other debtors

16,150

2,850

Prepayments

22,856

25,067

 

1,462,469

1,456,362

 

6

Creditors

Note

14 July 2023
 £

30 June 2022
 £

Due within one year

 

Loans and borrowings

8

27,567

241,221

Trade creditors

 

1,396,532

1,034,337

Social security and other taxes

 

227,891

142,071

Other creditors

 

5,500

72,853

Accrued expenses

 

33,536

94,661

Corporation tax liability

155,978

185,001

 

1,847,004

1,770,144

Note

2023
£

2022
£

Due after one year

 

Loans and borrowings

8

61,279

97,419

 

7

Obligations under leases and hire purchase contracts

14 July 2023
 £

30 June 2022
 £

Not later than one year

28,779

55,862

Later than one year and not later than five years

62,693

37,688

 

91,472

93,550

The amount of non-cancellable operating lease payments recognised as an expense during the year was £1,203 (2022 - £4,727).

 

Patrico Limited

Notes to the Financial Statements for the Period from 1 July 2022 to 14 July 2023

 

8

Loans and borrowings

2023
£

2022
£

Current loans and borrowings

Bank borrowings

-

59,492

HP and finance lease liabilities

27,567

48,469

Other borrowings

-

133,260

27,567

241,221

2023
£

2022
£

Non-current loans and borrowings

Bank borrowings

-

63,428

HP and finance lease liabilities

61,279

33,991

61,279

97,419

 

9

Share capital

Allotted, called up and fully paid shares

 

14 July 2023

30 June 2022

 

No.

£

No.

£

Class A of £1 each

1,249

1,249

2,450

2,450

Class B of £1 each

50

50

50

50

Class C of £1 each

700

700

700

700

Class D of £1 each

1,801

1,801

600

600

Class E of £1 (2022 - £0) each

200

200

-

-

 

4,000

4,000

3,800

3,800

On 19 May 2023, 1,201 Class C shares of £1 each were redesignated as Class D shares on £1 each.

On 14 July 2023 the company issues 100 Class E shares of £1 at par.

Also on 14 July 2023 share options were excercised for 100 Class E shares of £1 as detailed in note 13.

 

Patrico Limited

Notes to the Financial Statements for the Period from 1 July 2022 to 14 July 2023

 

10

Share-based payments

Scheme details and movements

Patrico Limited operated an equity-settled share-based remuneration scheme for employees which are Enterprise Management Incentive ("EMI") schemes. The options were granted with a maximum term of 10 years, the only condition being that the employee remains in the Company's employment. The options granted in June 2016 were to be settled by way of issues of E Ordinary shares.

The options had no vesting period, but could not be exercised until the company was listed on an exchange or the shares in the Company were sold such that control of the company changes. On 14 July 2023, the company's shares were sold and control of the company changed resulting in the options being exercised.

The fair value of the equity instruments granted was determined using the Black Scholes Model. This model was selected as it is an industry standard model. The share-remuneration expense for the year is not considered to be material and has not been recognised.

The movements in the number of share options during the period were as follows:

2023

2022

Number

Number

Outstanding, start of period

100

100

Exercised during the period

(100)

-

Outstanding, end of period

-

100

The movements in the weighted average exercise price of share options during the period were as follows:

2023

2022

£

£

Outstanding, start of period

144

144

Outstanding, end of period

-

144

Shares issued as bonus
On 14 July 2023 100 E shares with a value of £163,840 were issued at there nominal value of £1 each.

Effect of share-based payments on profit or loss and financial position

The total expense recognised in the profit or loss for the period was £163,740 (2022 - £Nil).

 

11

Control

Prior to 14 July 2023 the company was controlled by R J Lanchbury.

On 14 July 2023 100% of the company's share capital was acquired by Atkinson Equipment Group Limited, a company registered in England and Wales, which became the parent.