REGISTERED NUMBER: |
PRASCO UK LIMITED |
STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS |
FOR THE YEAR ENDED |
31 DECEMBER 2023 |
REGISTERED NUMBER: |
PRASCO UK LIMITED |
STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS |
FOR THE YEAR ENDED |
31 DECEMBER 2023 |
PRASCO UK LIMITED (REGISTERED NUMBER: 05449383) |
CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 5 |
Report of the Independent Auditors | 7 |
Income Statement | 11 |
Other Comprehensive Income | 12 |
Balance Sheet | 13 |
Statement of Changes in Equity | 14 |
Cash Flow Statement | 15 |
Notes to the Cash Flow Statement | 16 |
Notes to the Financial Statements | 18 |
PRASCO UK LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Sidings House |
Sidings Court |
Lakeside |
Doncaster |
South Yorkshire |
DN4 5NU |
PRASCO UK LIMITED (REGISTERED NUMBER: 05449383) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
The directors present their strategic report for the year ended 31 December 2023. |
FAIR REVIEW OF THE BUSINESS |
Prasco UK Limited is a prominent Company in the UK accident repair industry, collaborating with key stakeholders such as insurance companies, work providers, and retail sectors. Our operations are centred on a modern facility located in South Yorkshire, delivering top-tier services to customers nationwide. |
Financial highlights for the 12-month period show a rise in turnover from £12.9 million to £14.5 million. Additionally, the gross profit margin improved from 40.7% to 44.1%.Challenges faced in the prior period stemming from increased freight costs and currency fluctuations have eased, leading to improved trading results. |
PRINCIPAL RISKS AND UNCERTAINTIES |
The primary risk revolves around the sustained availability of parts, influenced by political uncertainties in regions supplying to the UK, potentially leading to inflated freight costs and currency risks. |
Efficient stock management: Practices are implemented to minimise the impact of price fluctuations and limitation of supply. This includes monitoring market trends, maintaining optimal inventory levels, and adjusting procurement strategies accordingly. |
Cost Control Measures: We continuously review our operating expenses and implement cost-saving measures to offset any adverse effects of price increases on our margins. |
Monitoring and Analysis: We closely monitor currency markets and conduct regular analysis to assess potential risks and opportunities associated with exchange rate movements. This proactive approach enables us to make informed decisions and take timely actions to mitigate currency risk. |
Secondary risks include a decline in accident repairs due to enhanced vehicle safety features and the growing trend towards eCommerce, necessitating a deeper understanding of technology. |
Our Company recognises the paramount importance of having an experienced and knowledgeable management team and board of directors to mitigate various risks inherent in our industry. Leveraging their expertise and strategic insight, we adopt proactive measures to address potential challenges and uncertainties. Key elements of our risk mitigation strategy include: |
Strategic Decision Making: Our experienced management team and directors possess a deep understanding of the industry landscape and market dynamics. Through strategic decision-making processes, they anticipate potential risks and opportunities, guiding the company towards sustainable growth and resilience. |
Risk Assessment and Planning: Regular risk assessments are conducted under the guidance of our seasoned management team and directors. They identify, evaluate, and prioritize risks, allowing us to develop comprehensive risk mitigation plans tailored to our specific business objectives and operating environment. |
Continual Monitoring and Adaptation: Our management team and directors remain vigilant in monitoring market trends, regulatory changes, and emerging risks. They proactively adapt our strategies and operations to mitigate evolving threats and capitalise on emerging opportunities, ensuring agility and responsiveness in a dynamic business environment. |
Talent Development and Succession Planning: Investing in talent development and succession planning is a priority for our Company. By nurturing a pipeline of skilled professionals and grooming future leaders, we mitigate the risk of key personnel attrition and ensure continuity in leadership, maintaining stability and consistency in our strategic direction. |
Stakeholder Engagement and Communication: Transparent communication and engagement with stakeholders, including investors, employees, customers, and regulatory bodies, are facilitated by our experienced management team and directors. By fostering trust and collaboration, we enhance risk awareness, facilitate timely risk mitigation actions, and strengthen our resilience to external pressures. |
PRASCO UK LIMITED (REGISTERED NUMBER: 05449383) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
KEY PERFORMANCE INDICATORS |
Operating in a competitive market, our directors and senior management are committed to maintaining and enhancing customer service and satisfaction levels, thereby ensuring operational efficiencies and meeting KPIs.Financial key performance indicators critical for future growth include: |
a) | Gross profit margin; |
b) | Ratio of administrative expenses to turnover; |
c) | Ratio of operating profit to turnover. |
For the current year under review , those KPI`s were measured as follows: |
2023 | 2022 |
Gross profit margin | 40.7% | 40.7% |
Administrative expenses to turnover | 36.2% | 36.4% |
Operating profit to turnover | 8.0% | 4.3% |
Non-financial Key Performance Indicators (KPIs) are also essential for assessing the operational efficiency, customer satisfaction, and overall performance of the business. The management measure the following non-financial KPI's: |
a) | Order fulfilment rate; |
b) | Stock turnover; |
PRASCO UK LIMITED (REGISTERED NUMBER: 05449383) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
FUTURE DEVELOPMENTS |
The industry landscape is evolving rapidly with advancements in vehicle technology, notably towards electric, hybrid, and autonomous driving. |
Prasco UK Limited is dedicated to continual investment in processes, staff training, and technological advancements to stay at the forefront of the industry. This commitment ensures ongoing relationships with existing and future partners, driving growth and performance.Key future developments include: |
Expansion of Product Range: We recognise the importance of offering a comprehensive range of products to meet the evolving needs of our customers. Therefore, we will continue to invest in expanding our product portfolio, incorporating new car model parts. |
Investment in Technology: Embracing technological advancements is crucial for maintaining competitiveness in the rapidly evolving automotive industry. We will continue to invest in technology-driven solutions, such as e-commerce platforms, inventory management systems, and data analytics tools, to streamline operations, improve efficiency, and enhance customer experience. |
Focus on Customer Service: Our commitment to delivering exceptional customer service remains unwavering. We will continue to prioritise customer satisfaction by providing efficient order processing, and timely delivery of high-quality car parts. Building strong and enduring relationships with our customers will be instrumental in driving long-term success and loyalty. |
Talent Development: Our success is driven by the dedication and expertise of our team members. Therefore, we remain committed to investing in talent development programs, training initiatives, and employee empowerment strategies to nurture a skilled workforce capable of driving innovation and achieving our strategic objectives. |
By pursuing these future developments, our car parts wholesaler aims to solidify the Company's position as a leading player in the industry, delivering value to customers, driving sustainable growth, and creating long-term value for all stakeholders. |
ON BEHALF OF THE BOARD: |
PRASCO UK LIMITED (REGISTERED NUMBER: 05449383) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
The directors present their report with the financial statements of the company for the year ended 31 December 2023. |
PRINCIPAL ACTIVITY |
The principal activity of the company in the year under review was that of wholesale trade of motor vehicle parts and accessories. |
DIVIDENDS |
No dividends will be distributed for the year ended 31 December 2023. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 January 2023 to the date of this report. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are 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 directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company 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 directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director 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 company's auditors are aware of that information. |
PRASCO UK LIMITED (REGISTERED NUMBER: 05449383) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
AUDITORS |
The auditors, Xeinadin Audit Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
PRASCO UK LIMITED |
Opinion |
We have audited the financial statements of Prasco UK Limited (the 'company') for the year ended 31 December 2023 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, 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 company's affairs as at 31 December 2023 and of its 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 company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
Conclusions relating to going concern |
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, 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. |
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 Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
PRASCO UK LIMITED |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors. |
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, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page five, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
PRASCO UK LIMITED |
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: |
Based on our understanding of the Company, we identified that the principal risks of non-compliance with laws and regulations related to corporation tax legislation and we considered the extent to which non-compliance might have a material effect on the financial statements. |
As part of this assessment we considered both quantitative and qualitative factors. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements, such as the Companies Act 2006 and FRS 102. |
We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements which included the risk of management override of controls. We determined that the principal risks were related to posting inappropriate journal entries, omitting, advancing or delaying recognition of events and transactions that have occurred during or after the reporting period, and potential management bias in the determination of accounting estimates or judgements to manipulate results. |
Audit procedures performed by the engagement team include: |
- | Enquiring of and obtaining written representation from management in relation to known or suspected instances of non-compliance with laws and regulations and fraud; |
- | Enquiring of entity staff in tax and compliance functions to identify any instances of non-compliance with laws and regulations; |
- | Evaluation of management's controls designed to prevent and detect irregularities; |
- | Identifying and, where relevant, testing journal entries posted by senior management or with unusual combinations; |
- | Assessing and evaluating the business rationale of significant transactions outside the normal course of business; |
- | Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations; |
- | Review of correspondence with regulators in so far as they are related to the financial statements; |
- | Incorporating elements of unpredictability into the nature, timing and/or extent of audit procedures performed. |
There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentation, or through collusion. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
PRASCO UK LIMITED |
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 |
Sidings House |
Sidings Court |
Lakeside |
Doncaster |
South Yorkshire |
DN4 5NU |
PRASCO UK LIMITED (REGISTERED NUMBER: 05449383) |
INCOME STATEMENT |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
2023 | 2022 |
Notes | £ | £ |
TURNOVER |
Cost of sales |
GROSS PROFIT |
Administrative expenses |
1,142,142 | 559,711 |
Other operating income |
OPERATING PROFIT | 4 |
Interest receivable and similar income |
1,150,744 | 560,391 |
Interest payable and similar expenses | 5 |
PROFIT BEFORE TAXATION |
Tax on profit | 6 |
PROFIT FOR THE FINANCIAL YEAR |
PRASCO UK LIMITED (REGISTERED NUMBER: 05449383) |
OTHER COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
2023 | 2022 |
Notes | £ | £ |
PROFIT FOR THE YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
PRASCO UK LIMITED (REGISTERED NUMBER: 05449383) |
BALANCE SHEET |
31 DECEMBER 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 7 |
CURRENT ASSETS |
Stocks | 8 |
Debtors | 9 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 10 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
11 |
( |
) |
( |
) |
PROVISIONS FOR LIABILITIES | 15 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 16 |
Retained earnings | 17 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
PRASCO UK LIMITED (REGISTERED NUMBER: 05449383) |
STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 January 2022 |
Changes in equity |
Total comprehensive income | - |
Balance at 31 December 2022 |
Changes in equity |
Total comprehensive income | - |
Balance at 31 December 2023 |
PRASCO UK LIMITED (REGISTERED NUMBER: 05449383) |
CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
2023 | 2022 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 |
Interest paid | ( |
) | ( |
) |
Interest element of hire purchase payments paid |
( |
) |
( |
) |
Tax paid | ( |
) | ( |
) |
Net cash from operating activities |
Cash flows from investing activities |
Purchase of tangible fixed assets | ( |
) | ( |
) |
Sale of tangible fixed assets |
Interest received |
Net cash from investing activities | ( |
) | ( |
) |
Cash flows from financing activities |
Capital repayments in year | ( |
) | ( |
) |
Group balances | ( |
) | ( |
) |
Net cash from financing activities | ( |
) | ( |
) |
Decrease in cash and cash equivalents | ( |
) | ( |
) |
Cash and cash equivalents at beginning of year |
2 |
179,145 |
Cash and cash equivalents at end of year | 2 | 41,133 | 76,429 |
PRASCO UK LIMITED (REGISTERED NUMBER: 05449383) |
NOTES TO THE CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2023 | 2022 |
£ | £ |
Profit before taxation |
Depreciation charges |
Loss/(profit) on disposal of fixed assets | ( |
) |
Finance costs | 76,090 | 65,884 |
Finance income | (10 | ) | (6 | ) |
1,491,018 | 831,218 |
Decrease/(increase) in stocks | ( |
) |
Increase in trade and other debtors | ( |
) | ( |
) |
Increase in trade and other creditors |
Cash generated from operations |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 31 December 2023 |
31.12.23 | 1.1.23 |
£ | £ |
Cash and cash equivalents | 41,133 | 76,429 |
Year ended 31 December 2022 |
31.12.22 | 1.1.22 |
£ | £ |
Cash and cash equivalents | 76,429 | 179,145 |
PRASCO UK LIMITED (REGISTERED NUMBER: 05449383) |
NOTES TO THE CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
3. | ANALYSIS OF CHANGES IN NET DEBT |
Other |
non-cash |
At 1.1.23 | Cash flow | changes | At 31.12.23 |
£ | £ | £ | £ |
Net cash |
Cash at bank |
and in hand | 76,429 | (35,296 | ) | 41,133 |
76,429 | ( |
) | 41,133 |
Debt |
Finance leases | (419,938 | ) | 363,881 | - | (562,777 | ) |
Debts falling due |
within 1 year | (1,283,518 | ) | 823,503 | - | (460,015 | ) |
Debts falling due |
after 1 year | (123,333 | ) | 123,333 | - | - |
(1,826,789 | ) | 1,310,717 | - | (1,022,792 | ) |
Total | (1,750,360 | ) | 1,275,421 | - | (981,659 | ) |
PRASCO UK LIMITED (REGISTERED NUMBER: 05449383) |
NOTES TO THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
1. | STATUTORY INFORMATION |
Prasco UK Limited is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
Tangible fixed assets |
Improvements to property | - |
Plant and machinery | - |
Motor vehicles | - |
Computer equipment | - |
Stocks |
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, 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 balance sheet date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet 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. |
PRASCO UK LIMITED (REGISTERED NUMBER: 05449383) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
2. | ACCOUNTING POLICIES - continued |
Hire purchase and leasing commitments |
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter. |
The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability. |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. |
3. | EMPLOYEES AND DIRECTORS |
2023 | 2022 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
The average number of employees during the year was as follows: |
2023 | 2022 |
Sales | 14 | 12 |
Directors | 2 | 2 |
Purchasing | 5 | 5 |
Admin | 3 | 3 |
Drivers | 31 | 31 |
Warehouse | 21 | 21 |
2023 | 2022 |
£ | £ |
Directors' remuneration |
Directors' pension contributions to money purchase schemes |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes |
PRASCO UK LIMITED (REGISTERED NUMBER: 05449383) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
3. | EMPLOYEES AND DIRECTORS - continued |
Information regarding the highest paid director for the year ended 31 December 2023 is as follows: |
2023 |
£ |
Emoluments etc |
Pension contributions to money purchase schemes |
4. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
2023 | 2022 |
£ | £ |
Hire of plant and machinery |
Depreciation - owned assets |
Depreciation - assets on hire purchase contracts |
Loss/(profit) on disposal of fixed assets | ( |
) |
Auditors' remuneration |
Foreign exchange differences | ( |
) |
Operating lease expense |
5. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2023 | 2022 |
£ | £ |
Bank loan interest |
HMRC interest & penalties |
Hire purchase |
6. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2023 | 2022 |
£ | £ |
Current tax: |
UK corporation tax |
Deferred tax |
Tax on profit |
PRASCO UK LIMITED (REGISTERED NUMBER: 05449383) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
6. | TAXATION - continued |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
2023 | 2022 |
£ | £ |
Profit before tax |
Profit multiplied by the standard rate of corporation tax in the UK of |
Effects of: |
Expenses not deductible for tax purposes |
Income not taxable for tax purposes | ( |
) |
Adjustments to tax charge in respect of previous periods |
Difference in deferred tax rate | 62,493 | 8,263 |
Enhanced capital allowances | (1,340 | ) | (22,862 | ) |
Total tax charge | 315,756 | 79,714 |
7. | TANGIBLE FIXED ASSETS |
Improvements |
to | Plant and | Motor | Computer |
property | machinery | vehicles | equipment | Totals |
£ | £ | £ | £ | £ |
COST |
At 1 January 2023 |
Additions |
Disposals | ( |
) | ( |
) |
At 31 December 2023 |
DEPRECIATION |
At 1 January 2023 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) |
At 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
PRASCO UK LIMITED (REGISTERED NUMBER: 05449383) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
7. | TANGIBLE FIXED ASSETS - continued |
Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
Plant and | Motor |
machinery | vehicles | Totals |
£ | £ | £ |
COST |
At 1 January 2023 |
Additions |
Disposals | ( |
) | ( |
) |
At 31 December 2023 |
DEPRECIATION |
At 1 January 2023 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) |
At 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
8. | STOCKS |
2023 | 2022 |
£ | £ |
Stocks |
9. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£ | £ |
Trade debtors |
Other debtors |
Prepayments |
PRASCO UK LIMITED (REGISTERED NUMBER: 05449383) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
10. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£ | £ |
Bank loans and overdrafts (see note 12) |
Other loans (see note 12) |
Hire purchase contracts (see note 13) |
Trade creditors |
Amounts owed to associates | - | 91,178 |
Tax |
Social security and other taxes |
VAT | 477,220 | 420,680 |
Accrued expenses |
11. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
2023 | 2022 |
£ | £ |
Bank loans (see note 12) |
Hire purchase contracts (see note 13) |
Amounts owed to associates | - | 343,381 |
12. | LOANS |
An analysis of the maturity of loans is given below: |
2023 | 2022 |
£ | £ |
Amounts falling due within one year or on demand: |
Bank loans |
Invoice financing |
Amounts falling due between one and two years: |
Bank loans - 1-2 years |
Amounts falling due between two and five years: |
Bank loans - 2-5 years |
PRASCO UK LIMITED (REGISTERED NUMBER: 05449383) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
13. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Hire purchase contracts |
2023 | 2022 |
£ | £ |
Net obligations repayable: |
Within one year |
Between one and five years |
Non-cancellable | operating leases |
2023 | 2022 |
£ | £ |
Within one year |
Between one and five years |
In more than five years |
14. | SECURED DEBTS |
The following secured debts are included within creditors: |
2023 | 2022 |
£ | £ |
Bank loans |
Invoice financing |
Hire purchase contracts | 562,777 | 419,938 |
The bank loan is secured by a fixed charge over the bank balances of the Company. |
The invoice discounting facility is secured by fixed and floating charge over the assets of the Company. |
The trade debtor balance subject to invoice financing at the year end is £1,675,538 (2022: £1,393,057) |
Hire purchase contracts are secured over the relevant assets. |
15. | PROVISIONS FOR LIABILITIES |
2023 | 2022 |
£ | £ |
Deferred tax |
Accelerated capital allowances |
PRASCO UK LIMITED (REGISTERED NUMBER: 05449383) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
15. | PROVISIONS FOR LIABILITIES - continued |
Deferred |
tax |
£ |
Balance at 1 January 2023 |
Provided during year |
Change in tax rates | 59,165 |
Balance at 31 December 2023 |
16. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
Ordinary | £1 | 400,000 | 400,000 |
17. | RESERVES |
Retained |
earnings |
£ |
At 1 January 2023 |
Profit for the year |
At 31 December 2023 |
18. | RELATED PARTY DISCLOSURES |
Prasco S.P.A |
Shareholder |
During the year the company made purchases of £505,403 (2022: £1,567,200) from Prasco S.P.A. At the balance sheet date £351,565 (2022: £559,930) was due to Prasco S.P.A. Prasco UK Limited had a loan due to Prasco S.P.A of £NIL (2022: £443,557). |
TJ Paint & Panel Ltd |
Director in common |
During the year the company made purchases of £31,064 from TJ Paint & Panel Ltd. At the balance sheet date £2,006 was due to TJ Paint & Panel Ltd. Prasco UK Limited made sales of £4,410 to the company. At te balance sheet date a balance was due from the company of £854. |
D Gibson |
Director |
During the year services were charged to the company of £43,261 (2022: £55,427). A balance was due at the year end of £5,031 (2022: £2,310). |
S Waugh |
Related Party |
During the year services were charged to the company of £30,000 (2022: £30,000). |
PRASCO UK LIMITED (REGISTERED NUMBER: 05449383) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
19. | ULTIMATE CONTROLLING PARTY |
There is no single ultimate controlling party. |