REGISTERED NUMBER: 05728414 (England and Wales) |
GROUP STRATEGIC REPORT, REPORT OF THE DIRECTOR AND |
AUDITED CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2023 |
FOR |
PORCELITE VITRIFIED HOTELWARE LTD |
REGISTERED NUMBER: 05728414 (England and Wales) |
GROUP STRATEGIC REPORT, REPORT OF THE DIRECTOR AND |
AUDITED CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2023 |
FOR |
PORCELITE VITRIFIED HOTELWARE LTD |
PORCELITE VITRIFIED HOTELWARE LTD (REGISTERED NUMBER: 05728414) |
CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 SEPTEMBER 2023 |
Page |
Company Information | 1 |
Group Strategic Report | 2 | to | 4 |
Report of the Director | 5 |
Report of the Independent Auditors | 6 | to | 9 |
Consolidated Statement of Comprehensive Income | 10 |
Consolidated Statement of Financial Position | 11 |
Company Statement of Financial Position | 12 |
Consolidated Statement of Changes in Equity | 13 |
Company Statement of Changes in Equity | 14 |
Consolidated Statement of Cash Flows | 15 |
Notes to the Consolidated Statement of Cash Flows | 16 |
Notes to the Consolidated Financial Statements | 17 | to | 33 |
PORCELITE VITRIFIED HOTELWARE LTD |
COMPANY INFORMATION |
FOR THE YEAR ENDED 30 SEPTEMBER 2023 |
DIRECTOR: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered accountants & statutory auditors |
Stone House |
Stone Road Business Park |
Stoke-On-Trent |
ST4 6SR |
BANKERS: |
1 Centenary Square |
Birmingham |
B1 1HQ |
PORCELITE VITRIFIED HOTELWARE LTD (REGISTERED NUMBER: 05728414) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 30 SEPTEMBER 2023 |
The director presents his strategic report of the company and the group for the year ended 30 September 2023. |
The company holds an investment in its trading subsidiary, DPS Tableware Limited, a wholesaler of tableware. |
REVIEW OF BUSINESS |
The Director aims to present a balanced and comprehensive review of the development and performance of the business during the year and its position at the year end. The review is consistent with the size and non-complex nature of the business and is written in the context of the risks and uncertainties faced. |
The Group's turnover is generated by the importation and supply of tableware, cutlery, glassware and associated tabletop products throughout the UK, Europe and Rest of the World. The Group has an established network of customers and continues to retain high levels of repeat business. |
The Group's turnover for the 12 month period was £15,116,787, which is an increase of £769,285 (5.36%) in comparison to the 12 month prior period. |
Gross profit has increased from 19.35% in the prior period, to 23.57% in the current period. The increase in gross profit margin is primarily as a result of decreases in costs in the year. |
Administrative expenses have increased from £1,434,339 in the prior period to £2,246,729 in the current period. |
Operating profit has decreased from £1,345,056 in the prior period to £1,316,784 in the current period. |
At the balance sheet date, Group net assets have increased from £5,762,192 to £6,732,116. |
Cash at bank and in hand balances decreased from £77,110 at the prior year end to £41,647 at the current period end. |
PRINCIPAL RISKS AND UNCERTAINTIES |
There are a range of risks facing the Group and the Group seeks to manage its exposure to all forms of risk. |
Financial instrument risk |
The Group is exposed to the risk that the financial instruments held by the Group impact on its ability to operate effectively and profitably. The risks which are relevant to the Group's operations are: |
Credit risks |
The Group has policies in place that require appropriate credit checks on new customers before sales are made. Polices are in places to ensure that provisions for bad debts are made when considered necessary. |
Foreign currency risk |
The Groups transactions are predominantly in Sterling, US Dollar and Euros. Throughout the financial year, the influences of foreign exchange rates has impacted on the Group's financial forecasting. The Group's existing relationship with HSBC global markets provides continued guided information on movements, along with the access to the use of forward contracts. This, along with quarterly comparisons across the exchange market, provides confidence that the most beneficial rates are secured. |
Cashflow risks |
The Group carefully manages its stock holding and debtor book to ensure that sufficient cash is available to meet operational needs. |
Liquidity risks |
The Group funds working capital needs through the generation and retention of profits. The Group regularly obtains finance to fund stock purchases through its import loan facility. |
PORCELITE VITRIFIED HOTELWARE LTD (REGISTERED NUMBER: 05728414) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 30 SEPTEMBER 2023 |
FUTURE DEVELOPMENTS |
The Director expects the Group to continue to grow, by way of introducing new and innovative hospitality products to the existing customer base, whilst continuing to expand the sales operation in the UK, Europe and the Rest of the World. |
Throughout the year, the Group identified the need to improve efficiency in both software and warehouse operations and to implement improvements to accommodate future growth and efficiency, within the current premises. |
As a result, the Director has identified several key operational priorities for the next financial year, which are summarised below: |
1: Software upgrades to enable improved information output. |
The Group are continuing to develop a fully integrated CRM system to give insight into sales activity, quoting and potential future planned sales to increase proactivity between the sales and administration departments. This will enable the Group to monitor KPI's quickly and effectively. Further development of the barcoding system in the warehouse will continue to improve picking accuracy, and efficiency in transfers and checks of stocks etc., with the added advanced reporting and visibility of performance and efficiency of each user. |
2: Extension to existing site warehouse |
2022/23 saw the initial plans for an extension to the warehouse, in the means of a larger, more long-term temporary building to be directly joined to our existing warehouse. This would enable the present premises to support the growth of existing product sales, along with plans for multiple product developments. This is an ongoing development, and is currently at the stage of planning permissions to be approved. Once granted, it is hoped that the completion of works will be before the end of FY23/24. |
The Director is extremely optimistic about the substantial benefits that all the above planned improvements will bring to the Group. The implementation of these solutions provides some certainty on future direction and will enable the business to offer improved service. |
PORCELITE VITRIFIED HOTELWARE LTD (REGISTERED NUMBER: 05728414) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 30 SEPTEMBER 2023 |
KEY PERFORMANCE INDICATORS |
The Group has several KPIs which are used to analyse current performance and assist with business development. Monthly KPIs are used to monitor financial and operational performance and are used to inform of progress and improvements. |
The Director considers that the key financial performance indicators are those that communicate the financial performance of the Group as a whole, these being turnover, turnover growth, gross profit margin, operating profit margin and cash management (cash at bank and in hand). |
2023 | 2022 | 2021 |
Turnover | £15,116,787 | £14,347,502 | £8,551,777 |
Increase/(Decrease) in turnover |
5.36% |
67.7% |
(43.9%) |
Gross profit margin | 23.6% | 19.4% | 22.9% |
Operating profit margin | 8.7% | 9.4% | 4.7% |
Cash at bank and in hand | £41,647 | £77,110 | £39,244 |
An explanation of the key performance indicators detailed above can be found in the review of business section of this report. |
ON BEHALF OF THE BOARD: |
PORCELITE VITRIFIED HOTELWARE LTD (REGISTERED NUMBER: 05728414) |
REPORT OF THE DIRECTOR |
FOR THE YEAR ENDED 30 SEPTEMBER 2023 |
The director presents his report with the financial statements of the company and the group for the year ended 30 September 2023. |
DIVIDENDS |
No dividends will be distributed for the year ended 30 September 2023. |
DIRECTOR |
STATEMENT OF DIRECTOR'S RESPONSIBILITIES |
The director is responsible for preparing the Group Strategic Report, the Report of the Director and the financial statements in accordance with applicable law and regulations. |
Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group for that period. In preparing these financial statements, the director is required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The director is responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and enable him to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the director is aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and he has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
AUDITORS |
The auditors is deemed to have been re-appointed in accordance with section 487 of the Companies Act 2006. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
PORCELITE VITRIFIED HOTELWARE LTD |
Opinion |
We have audited the financial statements of Porcelite Vitrified Hotelware Ltd (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 September 2023 which comprise the Consolidated Statement of Comprehensive Income, Consolidated Statement of Financial Position, Company Statement of Financial Position, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Statement of Cash Flows and Notes to the Consolidated Statement of Cash Flows, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and 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: |
- | give a true and fair view of the state of the group's and of the parent company affairs as at 30 September 2023 and of the group's profit for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group 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 director's 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 the 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 director with respect to going concern are described in the relevant sections of this report. |
Other information |
The director is responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Director, but does not include the financial statements and our Report of the Auditors thereon. |
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. |
In connection with our audit of the financial statements, 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 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. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
PORCELITE VITRIFIED HOTELWARE LTD |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Group Strategic Report and the Report of the Director for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Group Strategic Report and the Report of the Director have been prepared in accordance with applicable legal requirements. |
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 its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Director. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the parent company financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of director's remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of director |
As explained more fully in the Statement of Director's Responsibilities set out on page five, the director is 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 director determines 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 director is responsible for assessing the group's and 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 director either intends to liquidate the group or the parent company or to cease operations, or has no realistic alternative but to do so. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
PORCELITE VITRIFIED HOTELWARE LTD |
Auditors' 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 a Report of the Auditors 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. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit |
evidence that is sufficient and appropriate to provide a basis for our opinion. |
Identifying and assessing potential risks related to irregularities |
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and |
non-compliance with laws and regulations, we considered the following: |
- the nature of the industry and sector, control environment and business performance including the design of the company's remuneration policies, key drivers for directors' remuneration, bonus levels and performance targets; |
- results of our enquiries of management about their own identification and assessment of the risks of |
irregularities; |
- any matters we identified having obtained and reviewed the company's documentation of their policies and procedures relating to; |
- Identifying, evaluating and complying with laws and regulations and whether they were aware of any |
instances of noncompliance; |
- detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud; |
- the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations; |
- the matters discussed among the audit engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud. |
Based on this approach, we were able to assess the company risks and ensure the risks were considered throughout all areas of audit testing. The audit team was professionally sceptical throughout the audit and remained alert for inaccurate or misleading information. |
Audit response to risks identified |
As a result of performing the above, we did not identify any key audit matters related to the potential risk of |
fraud or irregularities. Our procedures to respond to risks identified included the following: |
- reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements; |
- enquiring of management concerning actual and potential litigation and claims; |
- performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud; |
- obtained an understanding of provisions and held discussions with management to understand the basis of recognition or non-recognition of tax provisions; and |
- in addressing the risk of fraud through management override of controls, testing the appropriateness of |
journal entries and other adjustments; assessing whether the judgements made in making accounting |
estimates are indicative of a potential bias; and evaluating the business rationale of any significant |
transactions that are unusual or outside the normal course of business. |
Audit testing was completed on a targeted sample basis based on our assessment of risk and materiality. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
PORCELITE VITRIFIED HOTELWARE LTD |
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. |
As part of an audit in accordance with ISAs (UK), we exercise professional judgement and maintain professional scepticism throughout the audit. We also: |
- | Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. |
- | Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the group's internal control. |
- | Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the director. |
- | Conclude on the appropriateness of the director's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the group or the parent company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our Report of the Auditors to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our Report of the Auditors. However, future events or conditions may cause the group or the parent company to cease to continue as a going concern. |
- | Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. |
- | Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the group to express and opinion on the consolidated financial statements. |
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. |
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 a Report of the Auditors 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. |
for and on behalf of |
Chartered accountants & statutory auditors |
Stone House |
Stone Road Business Park |
Stoke-On-Trent |
ST4 6SR |
PORCELITE VITRIFIED HOTELWARE LTD (REGISTERED NUMBER: 05728414) |
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 30 SEPTEMBER 2023 |
30.9.23 | 30.9.22 |
Notes | £ | £ |
TURNOVER | 3 | 15,116,787 | 14,347,502 |
Cost of sales | (11,553,274 | ) | (11,570,569 | ) |
GROSS PROFIT | 3,563,513 | 2,776,933 |
Administrative expenses | (2,246,729 | ) | (1,434,339 | ) |
1,316,784 | 1,342,594 |
Other operating income | 4 | - | 2,462 |
OPERATING PROFIT | 6 | 1,316,784 | 1,345,056 |
Interest receivable and similar income | 8 | - | 1,091 |
1,316,784 | 1,346,147 |
Interest payable and similar expenses | 9 | (73,233 | ) | (65,946 | ) |
PROFIT BEFORE TAXATION | 1,243,551 | 1,280,201 |
Tax on profit | 10 | (273,627 | ) | (240,732 | ) |
PROFIT FOR THE FINANCIAL YEAR |
OTHER COMPREHENSIVE INCOME |
- | 275,000 |
Income tax relating to other comprehensive income |
- |
(69,000 |
) |
OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX |
- |
206,000 |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
969,924 |
1,245,469 |
Profit attributable to: |
Owners of the parent | 969,924 | 1,039,469 |
Total comprehensive income attributable to: |
Owners of the parent | 969,924 | 1,245,469 |
PORCELITE VITRIFIED HOTELWARE LTD (REGISTERED NUMBER: 05728414) |
CONSOLIDATED STATEMENT OF FINANCIAL POSITION |
30 SEPTEMBER 2023 |
30.9.23 | 30.9.22 |
Notes | £ | £ |
FIXED ASSETS |
Intangible assets | 13 | - | - |
Tangible assets | 14 | 2,804,409 | 2,821,570 |
Investments | 15 | - | - |
Investment property | 16 | - | - |
2,804,409 | 2,821,570 |
CURRENT ASSETS |
Stocks | 17 | 5,292,392 | 3,882,316 |
Debtors | 18 | 3,128,115 | 3,499,789 |
Cash at bank and in hand | 41,647 | 77,110 |
8,462,154 | 7,459,215 |
CREDITORS |
Amounts falling due within one year | 19 | (4,224,497 | ) | (4,073,404 | ) |
NET CURRENT ASSETS | 4,237,657 | 3,385,811 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
7,042,066 |
6,207,381 |
CREDITORS |
Amounts falling due after more than one year |
20 |
(35,599 |
) |
(166,289 |
) |
PROVISIONS FOR LIABILITIES | 24 | (274,351 | ) | (278,900 | ) |
NET ASSETS | 6,732,116 | 5,762,192 |
CAPITAL AND RESERVES |
Called up share capital | 25 | 100 | 100 |
Share premium | 26 | 124,900 | 124,900 |
Fair value reserve | 26 | 836,345 | 836,345 |
Retained earnings | 26 | 5,770,771 | 4,800,847 |
SHAREHOLDERS' FUNDS | 6,732,116 | 5,762,192 |
The financial statements were approved by the director and authorised for issue on 4 April 2024 and were signed by: |
A L M Bate - Director |
PORCELITE VITRIFIED HOTELWARE LTD (REGISTERED NUMBER: 05728414) |
COMPANY STATEMENT OF FINANCIAL POSITION |
30 SEPTEMBER 2023 |
30.9.23 | 30.9.22 |
Notes | £ | £ |
FIXED ASSETS |
Intangible assets | 13 |
Tangible assets | 14 |
Investments | 15 |
Investment property | 16 |
CURRENT ASSETS |
Debtors | 18 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 19 | ( |
) | ( |
) |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
20 |
( |
) |
( |
) |
PROVISIONS FOR LIABILITIES | 24 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 25 |
Share premium | 26 |
Fair value reserve | 26 |
Retained earnings | 26 |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | 688,405 | 844,153 |
The financial statements were approved by the director and authorised for issue on |
PORCELITE VITRIFIED HOTELWARE LTD (REGISTERED NUMBER: 05728414) |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 30 SEPTEMBER 2023 |
Called up | Fair |
share | Retained | Share | value | Total |
capital | earnings | premium | reserve | equity |
£ | £ | £ | £ | £ |
Balance at 1 October 2021 | 100 | 4,090,212 | 124,900 | 630,345 | 4,845,557 |
Changes in equity |
Dividends | - | (328,834 | ) | - | - | (328,834 | ) |
Total comprehensive income | - | 1,039,469 | - | 206,000 | 1,245,469 |
Balance at 30 September 2022 | 100 | 4,800,847 | 124,900 | 836,345 | 5,762,192 |
Changes in equity |
Total comprehensive income | - | 969,924 | - | - | 969,924 |
Balance at 30 September 2023 | 100 | 5,770,771 | 124,900 | 836,345 | 6,732,116 |
PORCELITE VITRIFIED HOTELWARE LTD (REGISTERED NUMBER: 05728414) |
COMPANY STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 30 SEPTEMBER 2023 |
Called up | Fair |
share | Retained | Share | value | Total |
capital | earnings | premium | reserve | equity |
£ | £ | £ | £ | £ |
Balance at 1 October 2021 |
Changes in equity |
Profit for the year | - | 844,153 | - | - | 844,153 |
Other comprehensive income | - | (206,000 | ) | - | - |
Total comprehensive income | - | - |
Dividends | - | ( |
) | - | - | ( |
) |
Balance at 30 September 2022 |
Changes in equity |
Profit for the year | - | 688,405 | - | - | 688,405 |
Total comprehensive income | - | - |
Balance at 30 September 2023 |
PORCELITE VITRIFIED HOTELWARE LTD (REGISTERED NUMBER: 05728414) |
CONSOLIDATED STATEMENT OF CASH FLOWS |
FOR THE YEAR ENDED 30 SEPTEMBER 2023 |
30.9.23 | 30.9.22 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 799,712 | 714,312 |
Interest paid | (73,232 | ) | (65,946 | ) |
Tax paid | (247,834 | ) | (77,337 | ) |
Net cash from operating activities | 478,646 | 571,029 |
Cash flows from investing activities |
Purchase of tangible fixed assets | (35,979 | ) | (32,985 | ) |
Sale of tangible fixed assets | 2,500 | - |
Interest received | - | 1,091 |
Net cash from investing activities | (33,479 | ) | (31,894 | ) |
Cash flows from financing activities |
Loan repayments in year | (282,250 | ) | (333,650 | ) |
Amount introduced by directors | (291,080 | ) | 161,214 |
Amount withdrawn by directors | 92,700 | - |
Equity dividends paid | - | (328,833 | ) |
Net cash from financing activities | (480,630 | ) | (501,269 | ) |
(Decrease)/increase in cash and cash equivalents | (35,463 | ) | 37,866 |
Cash and cash equivalents at beginning of year |
2 |
77,110 |
39,244 |
Cash and cash equivalents at end of year |
2 |
41,647 |
77,110 |
PORCELITE VITRIFIED HOTELWARE LTD (REGISTERED NUMBER: 05728414) |
NOTES TO THE CONSOLIDATED STATEMENT OF CASH FLOWS |
FOR THE YEAR ENDED 30 SEPTEMBER 2023 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
30.9.23 | 30.9.22 |
£ | £ |
Profit before taxation | 1,243,551 | 1,280,201 |
Depreciation charges | 49,451 | 57,688 |
Loss on disposal of fixed assets | 1,189 | 8,772 |
Finance costs | 73,233 | 65,946 |
Finance income | - | (1,091 | ) |
1,367,424 | 1,411,516 |
Increase in stocks | (1,410,076 | ) | (1,760,137 | ) |
Decrease in trade and other debtors | 567,871 | 302,053 |
Increase in trade and other creditors | 274,493 | 760,880 |
Cash generated from operations | 799,712 | 714,312 |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts: |
Year ended 30 September 2023 |
30.9.23 | 1.10.22 |
£ | £ |
Cash and cash equivalents | 41,647 | 77,110 |
Year ended 30 September 2022 |
30.9.22 | 1.10.21 |
£ | £ |
Cash and cash equivalents | 77,110 | 39,244 |
3. | ANALYSIS OF CHANGES IN NET DEBT |
At 1.10.22 | Cash flow | At 30.9.23 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 77,110 | (35,463 | ) | 41,647 |
77,110 | (35,463 | ) | 41,647 |
Debt |
Debts falling due within 1 year | (287,373 | ) | 151,560 | (135,813 | ) |
Debts falling due after 1 year | (166,289 | ) | 130,690 | (35,599 | ) |
(453,662 | ) | 282,250 | (171,412 | ) |
Total | (376,552 | ) | 246,787 | (129,765 | ) |
PORCELITE VITRIFIED HOTELWARE LTD (REGISTERED NUMBER: 05728414) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 SEPTEMBER 2023 |
1. | STATUTORY INFORMATION |
Porcelite Vitrified Hotelware Ltd is a |
The principal activity of the company is that of a holding company. |
2. | ACCOUNTING POLICIES |
BASIS OF PREPARING THE FINANCIAL STATEMENTS |
The presentation currency of the financial statements is the Pound Sterling (£) which is also the functional currency. Monetary amounts in these financial statements are rounded to the nearest £ |
FINANCIAL REPORTING STANDARD 102 - REDUCED DISCLOSURE EXEMPTIONS |
The group has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland": |
• | the requirements of paragraphs 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c); |
• | the requirements of paragraphs 12.26, 12.27, 12.29(a), 12.29(b) and 12.29A; |
• | the requirement of paragraph 33.7. |
BASIS OF CONSOLIDATION |
The consolidated group financial statements consist of the financial statements of the parent company Porcelite Vitrified Hotelware Limited together with all entities controlled by the parent company (its subsidiaries). |
All financial statements are made up to 30 September 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. |
Subsidiaries are consolidated in the group's financial statements from the date that control commences until the date that control ceases. |
PORCELITE VITRIFIED HOTELWARE LTD (REGISTERED NUMBER: 05728414) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 SEPTEMBER 2023 |
2. | ACCOUNTING POLICIES - continued |
SIGNIFICANT JUDGEMENTS AND ESTIMATES |
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. |
Judgements |
The judgements (apart from those involving estimations) that management has made in the process of applying the entity's accounting policies and that have the most significant effect on the amounts recognised in the financial statements are as follows: |
Valuation of Investment property |
As described in the notes to the financial statements, the directors believe, based on professional advice, the investment property to be stated at fair value as at 30 September 2023. |
Key sources of estimation uncertainty |
Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the related actual outcome. The key assumptions and other sources of estimation uncertainty that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are as follows: |
As described in the accounting policies of the financial statements, depreciation of tangible fixed assets has been based on estimated useful lives and residual values deemed appropriate by the directors. Estimated useful lives and residual values are reviewed annually and revised as appropriate. Revisions take into account actual asset lives and residual values as evidence by disposals during current and prior accounting periods. |
CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY |
In the application of the group's accounting policies, the director is 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 not considered to be relevant. Actual results may differ from these estimates. |
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods. |
Key sources of estimation uncertainty |
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows. |
Property valuation |
The directors consider the fair value of land and buildings to be a key accounting estimate. Experts are used periodically by the directors to assist with this estimate. In the directors judgement the carrying value of land and buildings at 30 September 2023 is a reasonable estimate of fair value. |
PORCELITE VITRIFIED HOTELWARE LTD (REGISTERED NUMBER: 05728414) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 SEPTEMBER 2023 |
2. | ACCOUNTING POLICIES - continued |
GOING CONCERN |
The Porcelite group forecast shows positive results and cash generation. The directors have |
considered the current inflationary environment and the forecast takes into account cost pressures |
within the group. Turnover for the Porcelite group has steadily increased during the year and has continued to improve in the new financial year, which encourages us to believe that our forecasts are achievable. |
The Directors also consider that there is a reasonable expectation that the Company will have |
sufficient financial support from its fellow group companies when required and therefore have |
adequate resources to remain in operation for the foreseeable future. For this reason, the Directors |
continue to adopt the going concern basis in preparing the financial statements. |
REVENUE RECOGNITION |
Turnover is recognised at the fair value of the consideration received or receivable for goods in the normal course of business, and is show net of VAT and other sales related taxes. The fair value consideration takes into account trade discounts, settlement discounts and volume rebates. |
Sale of goods |
Revenue from the sale of goods is recognised when all of the following conditions are satisfied: |
- the Group has transferred the significant risks and rewards of ownership to the buyer; |
- the Group 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 Group 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. |
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 has been amortised on a systematic basis over its expected life of 20 years. |
INTANGIBLE 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 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 - 33.3% on cost per annum |
PORCELITE VITRIFIED HOTELWARE LTD (REGISTERED NUMBER: 05728414) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 SEPTEMBER 2023 |
2. | ACCOUNTING POLICIES - continued |
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: |
Freehold land and buildings - Not depreciated |
Leasehold land and buildings - 10% on cost per annum |
Plant and equipment - 20% on net book value per annum |
The gain or loss arising on disposal of an asset is determined as the difference between the sales proceeds and the carrying value of the asset, and is recognised in the profit or loss account. |
Properties whose fair value can be measured reliably are held under the revaluation model and are carried at a revalued amount, being their fair value at the date of valuation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. The fair value of the land and buildings is considered to be their market value. |
Revaluation gains and losses are recognised in other comprehensive income and accumulated in equity, except to the extent that a revaluation gain reverses a revaluation loss previously recognised in profit or loss or a revaluation loss exceeds the accumulated revaluation gains recognised in equity; such gains and losses are recognised in profit or loss |
Impairment of fixed assets |
At each reporting end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of that impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs. |
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted. |
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease. |
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase. |
PORCELITE VITRIFIED HOTELWARE LTD (REGISTERED NUMBER: 05728414) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 SEPTEMBER 2023 |
2. | ACCOUNTING POLICIES - continued |
GOVERNMENT GRANTS |
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received. |
Government grants relating to turnover are recognised as income over the periods when the related costs are incurred. Grants relating to an asset are recognised in income systematically over the asset's expected useful life. If part of such a grant is deferred it is recognised as deferred income rather than being deducted from the asset's carrying amount. |
STOCKS |
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials. |
Stocks held for distribution at no or nominal consideration are measured at the lower of cost and |
replacement cost, adjusted where applicable for any loss of service potential. |
Stocks are valued on a first in first out basis. |
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. |
PORCELITE VITRIFIED HOTELWARE LTD (REGISTERED NUMBER: 05728414) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 SEPTEMBER 2023 |
2. | ACCOUNTING POLICIES - continued |
FINANCIAL INSTRUMENTS |
A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument. |
Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. |
Debt instruments are subsequently measured at amortised cost. |
Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately. |
For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets are either assessed individually or grouped on the basis of similar credit risk characteristics. |
Any reversals of impairment are recognised in profit or loss immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised. |
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 entity after deducting all of its financial liabilities. |
Where the contractual obligations of financial instruments (including share capital) are equivalent to a similar debt instrument, those financial instruments are classed as financial liabilities. Financial liabilities are presented as such in the balance sheet. Finance costs and gains or losses relating to financial liabilities are included in the profit and loss account. Finance costs are calculated so as to produce a constant rate of return on the outstanding liability. |
Where the contractual terms of share capital do not have any terms meeting the definition of a financial liability then this is classed as an equity instrument. Dividends and distributions relating to equity instruments are debited direct to equity. |
TAXATION |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date. |
PORCELITE VITRIFIED HOTELWARE LTD (REGISTERED NUMBER: 05728414) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 SEPTEMBER 2023 |
2. | ACCOUNTING POLICIES - continued |
DEFERRED TAX |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
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. |
LEASES |
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. |
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. |
Retirement benefits |
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due. |
3. | TURNOVER |
The turnover and profit before taxation are attributable to the one principal activity of the group. |
An analysis of turnover by geographical market is given below: |
30.9.23 | 30.9.22 |
£ | £ |
United Kingdom | 13,514,006 | 12,632,597 |
Europe | 1,572,576 | 1,634,252 |
Worldwide | 30,205 | 80,653 |
15,116,787 | 14,347,502 |
4. | OTHER OPERATING INCOME |
30.9.23 | 30.9.22 |
£ | £ |
Government grants | - | 2,462 |
Included in grants received in the year ended 30 September 2022 is amounts relating to Coronavirus Job Retention Scheme of £2,462. |
PORCELITE VITRIFIED HOTELWARE LTD (REGISTERED NUMBER: 05728414) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 SEPTEMBER 2023 |
5. | EMPLOYEES AND DIRECTORS |
30.9.23 | 30.9.22 |
£ | £ |
Wages and salaries | 1,432,759 | 885,571 |
Social security costs | 158,331 | 72,954 |
Other pension costs | 16,044 | 15,886 |
1,607,134 | 974,411 |
The average number of employees during the year was as follows: |
30.9.23 | 30.9.22 |
Directors | 3 | 3 |
Office | 15 | 14 |
Warehouse | 12 | 13 |
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2022: 2). |
30.9.23 | 30.9.22 |
£ | £ |
Director's remuneration | 753,690 | 257,298 |
Information regarding the highest paid director is as follows: |
30.9.23 | 30.9.22 |
£ | £ |
Emoluments etc | 595,523 | 134,289 |
During the year the company also paid social security contributions for the directors totalling £98,048 (2022: £38,237) and employer's contributions totalling £2,642 (2022: £2,298). |
6. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
30.9.23 | 30.9.22 |
£ | £ |
Hire of plant and machinery | 24,885 | 12,365 |
Other operating leases | 134,934 | 48,205 |
Depreciation - owned assets | 49,451 | 50,536 |
Loss on disposal of fixed assets | 1,189 | 8,772 |
Computer software amortisation | - | 7,155 |
Exchange losses/gains | (51,622 | ) | 20,611 |
Fees payable for the audit of the financial statements of the group and company |
1,250 |
2,000 |
Fees payable for the audit of the financial statements of the company's subsidiaries |
10,125 |
17,750 |
PORCELITE VITRIFIED HOTELWARE LTD (REGISTERED NUMBER: 05728414) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 SEPTEMBER 2023 |
7. | AUDITORS' REMUNERATION |
30.9.23 | 30.9.22 |
£ | £ |
Fees payable to the company's auditors for the audit of the company's financial statements |
10,125 |
17,750 |
Total audit fees | 10,125 | 17,750 |
8. | INTEREST RECEIVABLE AND SIMILAR INCOME |
30.9.23 | 30.9.22 |
£ | £ |
Deposit account interest | - | 1,091 |
9. | INTEREST PAYABLE AND SIMILAR EXPENSES |
30.9.23 | 30.9.22 |
£ | £ |
Bank loan interest | 72,351 | 62,650 |
Interest on overdue taxation | 882 | 3,296 |
73,233 | 65,946 |
10. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
30.9.23 | 30.9.22 |
£ | £ |
Current tax: |
UK corporation tax | 278,176 | 247,332 |
Deferred tax | (4,549 | ) | (6,600 | ) |
Tax on profit | 273,627 | 240,732 |
PORCELITE VITRIFIED HOTELWARE LTD (REGISTERED NUMBER: 05728414) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 SEPTEMBER 2023 |
10. | TAXATION - continued |
RECONCILIATION OF TOTAL TAX CHARGE INCLUDED IN PROFIT AND LOSS |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
30.9.23 | 30.9.22 |
£ | £ |
Profit before tax | 1,243,551 | 1,280,201 |
Profit multiplied by the standard rate of corporation tax in the UK of 22.010 % (2022 - 19 %) |
273,706 |
243,238 |
Effects of: |
Expenses not deductible for tax purposes | 1,369 | 974 |
Capital allowances in excess of depreciation | - | (1,873 | ) |
Future changes in tax rates | (1,448 | ) | - |
Change in tax rate of deferred tax | - | (1,579 | ) |
Under provision of current year deferred tax | - | (28 | ) |
Total tax charge | 273,627 | 240,732 |
Tax effects relating to effects of other comprehensive income |
30.9.22 |
Gross | Tax | Net |
£ | £ | £ |
Revaluation of tangible fixed assets | 275,000 | (69,000 | ) | 206,000 |
11. | INDIVIDUAL STATEMENT OF COMPREHENSIVE INCOME |
As permitted by Section 408 of the Companies Act 2006, the Statement of Comprehensive Income of the parent company is not presented as part of these financial statements. |
12. | DIVIDENDS |
30.9.23 | 30.9.22 |
£ | £ |
Ordinary shares of £1 each |
Interim | - | 328,834 |
PORCELITE VITRIFIED HOTELWARE LTD (REGISTERED NUMBER: 05728414) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 SEPTEMBER 2023 |
13. | INTANGIBLE FIXED ASSETS |
Group |
Computer |
Goodwill | software | Totals |
£ | £ | £ |
COST |
At 1 October 2022 |
and 30 September 2023 | 19,200 | 42,720 | 61,920 |
AMORTISATION |
At 1 October 2022 |
and 30 September 2023 | 19,200 | 42,720 | 61,920 |
NET BOOK VALUE |
At 30 September 2023 | - | - | - |
At 30 September 2022 | - | - | - |
The group had no intangible fixed assets at 30 September 2023 or 30 September 2022. |
14. | TANGIBLE FIXED ASSETS |
Group |
Freehold | Short | Plant and |
property | leasehold | machinery | Totals |
£ | £ | £ | £ |
COST |
At 1 October 2022 | 2,650,000 | 114,793 | 519,448 | 3,284,241 |
Additions | - | - | 35,979 | 35,979 |
Disposals | - | - | (16,918 | ) | (16,918 | ) |
At 30 September 2023 | 2,650,000 | 114,793 | 538,509 | 3,303,302 |
DEPRECIATION |
At 1 October 2022 | - | 97,219 | 365,452 | 462,671 |
Charge for year | - | 11,480 | 37,971 | 49,451 |
Eliminated on disposal | - | - | (13,229 | ) | (13,229 | ) |
At 30 September 2023 | - | 108,699 | 390,194 | 498,893 |
NET BOOK VALUE |
At 30 September 2023 | 2,650,000 | 6,094 | 148,315 | 2,804,409 |
At 30 September 2022 | 2,650,000 | 17,574 | 153,996 | 2,821,570 |
Freehold property was valued on an open market basis on 31 October 2022 by Eddisons real estate & business valuers. If freehold properties were stated on historical cost basis rather than a fair value basis, the amounts would have been included at £1,577,655 (2022: £1,577,655). |
PORCELITE VITRIFIED HOTELWARE LTD (REGISTERED NUMBER: 05728414) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 SEPTEMBER 2023 |
15. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1 October 2022 |
and 30 September 2023 |
NET BOOK VALUE |
At 30 September 2023 |
At 30 September 2022 |
The group or the company's investments at the Statement of Financial Position date in the share capital of companies include the following: |
SUBSIDIARY |
Registered office: Opal Way, Stone Business Park, Stone, Staffordshire, ST15 0SS |
Nature of business: |
% |
Class of shares: | holding |
16. | INVESTMENT PROPERTY |
Company |
Total |
£ |
FAIR VALUE |
At 1 October 2022 |
and 30 September 2023 |
NET BOOK VALUE |
At 30 September 2023 |
At 30 September 2022 |
Investment property comprises commercial property used for the group's trade. The fair value of the investment property has been arrived at on the basis of a valuation carried out at 31 October 2022 by Eddisons Chartered Surveyors, who are not connected with the company. The valuation was made on an open market basis by reference to market evidence of transaction prices for similar properties. |
If investment properties were stated on historical cost basis rather than a fair value basis, the amounts would have been included at £1,577,655 (2022: £1,577,655). |
PORCELITE VITRIFIED HOTELWARE LTD (REGISTERED NUMBER: 05728414) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 SEPTEMBER 2023 |
17. | STOCKS |
Group |
30.9.23 | 30.9.22 |
£ | £ |
Stocks | 4,698,011 | 3,882,316 |
Goods in transit | 594,381 | - |
5,292,392 | 3,882,316 |
18. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
30.9.23 | 30.9.22 | 30.9.23 | 30.9.22 |
£ | £ | £ | £ |
Trade debtors | 2,421,901 | 2,532,175 |
Amounts owed by group undertakings | - | - |
Other debtors | 378,239 | 883,931 |
Directors' loan accounts | 196,197 | - | 187,197 | - |
Prepayments and accrued income | 131,778 | 83,683 |
3,128,115 | 3,499,789 |
19. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
30.9.23 | 30.9.22 | 30.9.23 | 30.9.22 |
£ | £ | £ | £ |
Bank loans and overdrafts (see note 21) | 135,813 | 287,373 |
Trade creditors | 1,505,895 | 1,003,273 |
Tax | 278,076 | 247,734 |
Social security and other taxes | 168,161 | 210,421 |
VAT | 206,751 | 89,850 | 89,850 | 89,850 |
Other creditors | 1,903,890 | 2,219,495 |
Directors' loan accounts | - | 2,183 | - | 2,183 |
Accruals and deferred income | 25,911 | 13,075 |
4,224,497 | 4,073,404 |
20. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group | Company |
30.9.23 | 30.9.22 | 30.9.23 | 30.9.22 |
£ | £ | £ | £ |
Bank loans (see note 21) | 35,599 | 166,289 |
PORCELITE VITRIFIED HOTELWARE LTD (REGISTERED NUMBER: 05728414) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 SEPTEMBER 2023 |
21. | LOANS |
An analysis of the maturity of loans is given below: |
Group | Company |
30.9.23 | 30.9.22 | 30.9.23 | 30.9.22 |
£ | £ | £ | £ |
Amounts falling due within one year or | on demand: |
Bank loans | 135,813 | 287,373 |
Amounts falling due between one and | two years: |
Bank loans - 1-2 years | 35,599 | 166,289 |
Included in long term bank debt is a monthly repayment mortgage (Capital and interest) instrument with HSBC UK Bank PLC. The loan is due in 1-2 years with interest rates of 2% over base per annum. The loan is secured against the property. |
22. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Non-cancellable | operating leases |
30.9.23 | 30.9.22 |
£ | £ |
Within one year | 57,636 | 28,615 |
Between one and five years | 110,937 | 21,401 |
In more than five years | 23,839 | - |
192,412 | 50,016 |
PORCELITE VITRIFIED HOTELWARE LTD (REGISTERED NUMBER: 05728414) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 SEPTEMBER 2023 |
23. | SECURED DEBTS |
The following secured debts are included within creditors: |
Group | Company |
30.9.23 | 30.9.22 | 30.9.23 | 30.9.22 |
£ | £ | £ | £ |
Bank loans | 171,412 | 453,662 |
Import loan facilities | 806,484 | 795,066 | - | - |
Invoice discounting | 1,088,158 | 1,384,935 | - | - |
2,066,054 | 2,633,663 |
Import loan facilities included in other creditors are secured by all assets, debentures and a general pledge over the company. |
Bank loans are secured by all assets, debentures and a general pledge over the company. Bank loans are secured by a way of a Composite Company Unlimited Multilateral Guarantee, a first legal charge over Freehold Property, an all assets debenture and a general pledge over the group. |
Invoice discounting facilities are secured on the book of debts to which they relate. |
24. | PROVISIONS FOR LIABILITIES |
Group | Company |
30.9.23 | 30.9.22 | 30.9.23 | 30.9.22 |
£ | £ | £ | £ |
Deferred tax |
Accelerated capital allowances | 38,607 | 42,900 |
Revaluation of |
tangible fixed assets | 235,744 | 236,000 | 235,744 | 236,000 |
274,351 | 278,900 | 235,744 | 236,000 |
Group |
Deferred |
tax |
£ |
Balance at 1 October 2022 | 278,900 |
Credit to Statement of Comprehensive Income during year | (4,549 | ) |
Balance at 30 September 2023 | 274,351 |
Company |
Deferred |
tax |
£ |
Balance at 1 October 2022 |
Credit to Statement of Comprehensive Income during year | ( |
) |
Balance at 30 September 2023 |
PORCELITE VITRIFIED HOTELWARE LTD (REGISTERED NUMBER: 05728414) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 SEPTEMBER 2023 |
25. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 30.9.23 | 30.9.22 |
value: | £ | £ |
Ordinary | £1 | 100 | 100 |
26. | RESERVES |
Retained reserves - This reserve records retained earnings and accumulated losses. |
Fair value reserve - The fair value reserve represents the cumulative effect of revaluations of freehold property where a policy of revaluation is adopted. There was no movement in the reserve in the year. |
27. | PENSION COMMITMENTS |
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund. |
The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £16,044 (2022: £15,886). |
Contributions totalling £1,730 (2022: £1,994 ) were payable to the scheme at the year end and are |
included in creditors. |
28. | FINANCIAL COMMITMENTS, GUARANTEES AND CONTINGENT LIABILITIES |
The company has given a guarantee to HMRC for £380,000 dated 9 March 2021 which relates to the deferment account. |
29. | RELATED PARTY DISCLOSURES |
Directors' transactions |
Interest free loans have been granted by the company to directors as follows: |
During the period ended 30 September 2023 advances of £314,380 (2022: £Nil) were made by |
directors. Repayments of £125,000 (2022: £11,700) were made during the year to the directors and the highest amount outstanding to the directors from the company during the year was £189,380 (2022: £32,300). |
At the period end the company owed the directors £196,197 (2022: £18,817). |
Interest was charged on the directors loan account during the period amounting to £Nil (2022: £Nil). |
The amounts advanced are interest free, unsecured and repayable on demand. |
Key management personnel remuneration is disclosed in note 5. |
Entities with a common director |
30.9.23 | 30.9.22 |
£ | £ |
Amount due from related party | - | 21,915 |
Amount due to related party | - | 3,087 |
PORCELITE VITRIFIED HOTELWARE LTD (REGISTERED NUMBER: 05728414) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 SEPTEMBER 2023 |
30. | ULTIMATE CONTROLLING PARTY |
The ultimate controlling party is A L Bate. |