REGISTERED NUMBER: NI601511 (Northern Ireland) |
Group Strategic Report, |
Report of the Directors and |
Consolidated Financial Statements |
for the Year Ended 31 December 2022 |
for |
PRM Group Ltd |
REGISTERED NUMBER: NI601511 (Northern Ireland) |
Group Strategic Report, |
Report of the Directors and |
Consolidated Financial Statements |
for the Year Ended 31 December 2022 |
for |
PRM Group Ltd |
PRM Group Ltd (Registered number: NI601511) |
Contents of the Consolidated Financial Statements |
for the Year Ended 31 December 2022 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 3 |
Report of the Independent Auditors | 5 |
Consolidated Income Statement | 9 |
Consolidated Other Comprehensive Income | 10 |
Consolidated Balance Sheet | 11 |
Company Balance Sheet | 12 |
Consolidated Statement of Changes in Equity | 13 |
Company Statement of Changes in Equity | 14 |
Consolidated Cash Flow Statement | 15 |
Notes to the Consolidated Cash Flow Statement | 16 |
Notes to the Consolidated Financial Statements | 18 |
PRM Group Ltd |
Company Information |
for the Year Ended 31 December 2022 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Accountants and Registered Auditors |
Quaker Buildings |
High Street |
Lurgan |
Craigavon |
Co. Armagh |
BT66 8BB |
BANKERS: | Bank of Ireland |
22 Market Square |
Lisburn |
Co. Antrim |
BT28 1AG |
SOLICITORS: |
Garvey Studios |
8-10 Longstone Street |
Lisburn |
BT28 1TP |
PRM Group Ltd (Registered number: NI601511) |
Group Strategic Report |
for the Year Ended 31 December 2022 |
The directors present their strategic report of the company and the group for the year ended 31 December 2022. |
The principal activity of the company in the year under review was that of the holding company for PRM Distribution Ltd, PRM Enterprises Ltd and PRM Ireland Ltd, three wholly owned subsidiaries. |
REVIEW OF BUSINESS |
The Company was not trading during the year but was a holding company. The Group results for the year show a pre-tax profit of £358,970 (2021 - £1,599,554) and turnover of £41,975,897 (2020 - £38,386,266). |
FUTURE OUTLOOK |
The commercial environment is expected to remain competitive in 2023, however we remain confident that we will maintain our current level of performance in the future. |
PRINCIPAL RISKS AND UNCERTAINTIES |
The management of the business and the execution of the company's strategy are subject to a number of risks. The key business risks and uncertainties affecting the company are considered to relate to competition from both national and independent distributors, employee retention and product availability. |
KEY PERFORMANCE INDICATORS |
Given the straightforward nature of the business, the company's directors are of the opinion that analysis using KPIs is not necessary for an understanding of the development, performance or position of the business. |
ON BEHALF OF THE BOARD: |
PRM Group Ltd (Registered number: NI601511) |
Report of the Directors |
for the Year Ended 31 December 2022 |
The directors present their report with the financial statements of the company and the group for the year ended 31 December 2022. |
DIVIDENDS |
No dividends will be distributed for the year ended 31 December 2022. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 January 2022 to the date of this report. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Group 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 the group and of the profit or loss of the group 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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 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 directors are 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 each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
PRM Group Ltd (Registered number: NI601511) |
Report of the Directors |
for the Year Ended 31 December 2022 |
AUDITORS |
The auditors, McCleary & Company Ltd, 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 |
PRM Group Ltd |
Opinion |
We have audited the financial statements of PRM Group Ltd (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2022 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated 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 group's and of the parent company affairs as at 31 December 2022 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 directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and 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 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 Group 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. |
Report of the Independent Auditors to the Members of |
PRM Group 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 Directors 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 Directors 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 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 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 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 three, 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 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 directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so. |
Report of the Independent Auditors to the Members of |
PRM Group 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: |
Having considered the nature of the business and the sector in which it operates, we identified that the principal risks of non-compliance with laws and regulations related to breaches of health and safety laws, employment law and environmental regulations. We considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that do not have a direct impact on the preparation of the financial statements but compliance with which may be fundamental to the Company's ability to operate such as the Companies Act 2006. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks were related to fixed asset valuation and misstatement of inter-company balances. Audit procedures performed included: |
- Assessment of compliance with key laws and regulations; |
- Enquiry of those charged with governance including any known or suspected instances of non-compliance with laws and regulations, potential litigation and fraud; |
- Identifying and testing journal entries for appropriateness, evaluating the rationale for significant transactions outside what is normal for the company and assessing whether the judgments made in making accounting estimates are indicative of potential bias, in order to assess the risk of fraud through management override of controls; |
- Analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud; |
- Challenging assumptions and judgments made by management in significant accounting estimates; |
- Reviewing the disclosures in the financial statements against the specific legal requirements. |
We communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit. |
There are inherent limitations in the audit procedures outlined above. We are less likely to become aware of instances with laws and regulations that are not closely related to events and transactions reflected in the financial statements. 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. |
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 |
PRM Group Ltd |
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 and Registered Auditors |
Quaker Buildings |
High Street |
Lurgan |
Craigavon |
Co. Armagh |
BT66 8BB |
McCleary & Company Ltd. |
PRM Group Ltd (Registered number: NI601511) |
Consolidated |
Income Statement |
for the Year Ended 31 December 2022 |
31.12.22 | 31.12.21 |
Notes | £ | £ |
TURNOVER | 3 | 41,975,897 | 38,386,266 |
Cost of sales | (39,663,086 | ) | (35,528,276 | ) |
GROSS PROFIT | 2,312,811 | 2,857,990 |
Distribution costs | (588,961 | ) | (499,224 | ) |
Administrative expenses | (1,629,353 | ) | (1,040,772 | ) |
94,497 | 1,317,994 |
Other operating income | 313,576 | 311,788 |
OPERATING PROFIT | 5 | 408,073 | 1,629,782 |
Interest payable and similar expenses | 6 | (49,103 | ) | (30,228 | ) |
PROFIT BEFORE TAXATION | 358,970 | 1,599,554 |
Tax on profit | 7 | (71,929 | ) | (304,141 | ) |
PROFIT FOR THE FINANCIAL YEAR |
Profit attributable to: |
Owners of the parent | 287,041 | 1,295,413 |
PRM Group Ltd (Registered number: NI601511) |
Consolidated |
Other Comprehensive Income |
for the Year Ended 31 December 2022 |
31.12.22 | 31.12.21 |
Notes | £ | £ |
PROFIT FOR THE YEAR | 287,041 | 1,295,413 |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
287,041 |
1,295,413 |
Total comprehensive income attributable to: |
Owners of the parent | 287,041 | 1,295,413 |
PRM Group Ltd (Registered number: NI601511) |
Consolidated Balance Sheet |
31 December 2022 |
31.12.22 | 31.12.21 |
Notes | £ | £ |
FIXED ASSETS |
Tangible assets | 9 | 4,381,416 | 4,050,880 |
Investments | 10 | - | - |
Investment property | 11 | 2,125,000 | 2,125,000 |
6,506,416 | 6,175,880 |
CURRENT ASSETS |
Stocks | 12 | 677,528 | 342,924 |
Debtors | 13 | 6,339,256 | 3,489,079 |
Cash at bank and in hand | 920 | 1,771,407 |
7,017,704 | 5,603,410 |
CREDITORS |
Amounts falling due within one year | 15 | (4,183,698 | ) | (2,722,100 | ) |
NET CURRENT ASSETS | 2,834,006 | 2,881,310 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
9,340,422 |
9,057,190 |
PROVISIONS FOR LIABILITIES | 18 | (5,124 | ) | (8,933 | ) |
NET ASSETS | 9,335,298 | 9,048,257 |
CAPITAL AND RESERVES |
Called up share capital | 19 | 30,008 | 30,008 |
Retained earnings | 20 | 9,305,290 | 9,018,249 |
SHAREHOLDERS' FUNDS | 9,335,298 | 9,048,257 |
The financial statements were approved by the Board of Directors and authorised for issue on 22 December 2023 and were signed on its behalf by: |
Mr Philip R Morrow - Director |
PRM Group Ltd (Registered number: NI601511) |
Company Balance Sheet |
31 December 2022 |
31.12.22 | 31.12.21 |
Notes | £ | £ |
CURRENT ASSETS |
Debtors | 13 |
Investments | 14 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 15 | ( |
) | ( |
) |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CAPITAL AND RESERVES |
Called up share capital | 19 |
Retained earnings | 20 | ( |
) | ( |
) |
SHAREHOLDERS' FUNDS |
Company's loss for the financial year | (104 | ) | (96 | ) |
The financial statements were approved by the Board of Directors and authorised for issue on |
PRM Group Ltd (Registered number: NI601511) |
Consolidated Statement of Changes in Equity |
for the Year Ended 31 December 2022 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 January 2021 | 30,008 | 7,722,836 | 7,752,844 |
Changes in equity |
Total comprehensive income | - | 1,295,413 | 1,295,413 |
Balance at 31 December 2021 | 30,008 | 9,018,249 | 9,048,257 |
Changes in equity |
Total comprehensive income | - | 287,041 | 287,041 |
Balance at 31 December 2022 | 30,008 | 9,305,290 | 9,335,298 |
PRM Group Ltd (Registered number: NI601511) |
Company Statement of Changes in Equity |
for the Year Ended 31 December 2022 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 January 2021 | ( |
) |
Changes in equity |
Total comprehensive income | - | ( |
) | ( |
) |
Balance at 31 December 2021 | ( |
) |
Changes in equity |
Total comprehensive income | - | ( |
) | ( |
) |
Balance at 31 December 2022 | ( |
) |
PRM Group Ltd (Registered number: NI601511) |
Consolidated Cash Flow Statement |
for the Year Ended 31 December 2022 |
31.12.22 | 31.12.21 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | (2,680,579 | ) | 1,285,031 |
Interest paid | (49,103 | ) | (30,228 | ) |
Tax paid | (285,019 | ) | (297,331 | ) |
Net cash from operating activities | (3,014,701 | ) | 957,472 |
Cash flows from investing activities |
Purchase of tangible fixed assets | (412,845 | ) | (86,508 | ) |
Sale of tangible fixed assets | - | 200,023 |
Net cash from investing activities | (412,845 | ) | 113,515 |
Cash flows from financing activities |
Amount withdrawn by directors | (25,000 | ) | - |
Net cash from financing activities | (25,000 | ) | - |
(Decrease)/increase in cash and cash equivalents | (3,452,546 | ) | 1,070,987 |
Cash and cash equivalents at beginning of year |
2 |
1,520,926 |
449,939 |
Cash and cash equivalents at end of year |
2 |
(1,931,620 |
) |
1,520,926 |
PRM Group Ltd (Registered number: NI601511) |
Notes to the Consolidated Cash Flow Statement |
for the Year Ended 31 December 2022 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
31.12.22 | 31.12.21 |
£ | £ |
Profit before taxation | 358,970 | 1,599,554 |
Depreciation charges | 82,340 | 22,856 |
Finance costs | 49,103 | 30,228 |
490,413 | 1,652,638 |
(Increase)/decrease in stocks | (334,604 | ) | 427,930 |
(Increase)/decrease in trade and other debtors | (2,850,177 | ) | 1,139,746 |
Increase/(decrease) in trade and other creditors | 13,789 | (1,935,283 | ) |
Cash generated from operations | (2,680,579 | ) | 1,285,031 |
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 2022 |
31.12.22 | 1.1.22 |
£ | £ |
Cash and cash equivalents | 920 | 1,771,407 |
Bank overdrafts | (1,932,540 | ) | (250,481 | ) |
(1,931,620 | ) | 1,520,926 |
Year ended 31 December 2021 |
31.12.21 | 1.1.21 |
£ | £ |
Cash and cash equivalents | 1,771,407 | 1,709,510 |
Bank overdrafts | (250,481 | ) | (1,259,571 | ) |
1,520,926 | 449,939 |
PRM Group Ltd (Registered number: NI601511) |
Notes to the Consolidated Cash Flow Statement |
for the Year Ended 31 December 2022 |
3. | ANALYSIS OF CHANGES IN NET FUNDS/(DEBT) |
At 1.1.22 | Cash flow | At 31.12.22 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 1,771,407 | (1,770,487 | ) | 920 |
Bank overdrafts | (250,481 | ) | (1,682,059 | ) | (1,932,540 | ) |
1,520,926 | (3,452,546 | ) | (1,931,620 | ) |
Total | 1,520,926 | (3,452,546 | ) | (1,931,620 | ) |
PRM Group Ltd (Registered number: NI601511) |
Notes to the Consolidated Financial Statements |
for the Year Ended 31 December 2022 |
1. | STATUTORY INFORMATION |
PRM Group Ltd is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Turnover |
Turnover represents the total invoice value, excluding value added tax, of sales made during the year and derives from the provision of goods and services falling within the company's ordinary activities. |
Tangible fixed assets |
Plant and machinery | - |
Fixtures and fittings | - |
Investment property |
Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in profit or loss. |
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 Consolidated 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. |
PRM Group Ltd (Registered number: NI601511) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2022 |
2. | ACCOUNTING POLICIES - continued |
Foreign currencies |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result. |
Pension costs and other post-retirement benefits |
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
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: |
31.12.22 | 31.12.21 |
£ | £ |
United Kingdom | 16,248,988 | 15,331,877 |
Europe | 25,726,909 | 23,054,389 |
41,975,897 | 38,386,266 |
4. | EMPLOYEES AND DIRECTORS |
31.12.22 | 31.12.21 |
£ | £ |
Wages and salaries | 1,065,366 | 1,037,213 |
Social security costs | 102,397 | 95,312 |
Other pension costs | 81,323 | 81,352 |
1,249,086 | 1,213,877 |
The average number of employees during the year was as follows: |
31.12.22 | 31.12.21 |
Management | 5 | 5 |
Administration | 35 | 35 |
Selling | 2 | 1 |
The average number of employees by undertakings that were proportionately consolidated during the year was 14 (2021 - 14 ) . |
PRM Group Ltd (Registered number: NI601511) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2022 |
4. | EMPLOYEES AND DIRECTORS - continued |
31.12.22 | 31.12.21 |
£ | £ |
Directors' remuneration | 155,100 | 145,241 |
Directors' pension contributions to money purchase schemes | 4,800 | 6,078 |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes | 1 | 1 |
5. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
31.12.22 | 31.12.21 |
£ | £ |
Depreciation - owned assets | 82,309 | 22,856 |
Auditors' remuneration | 31,016 | 21,855 |
Auditors' remuneration for non audit work | 3,000 | 3,000 |
Foreign exchange differences | 126,110 | (161,897 | ) |
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
31.12.22 | 31.12.21 |
£ | £ |
Bank interest | 1,045 | 907 |
Other interest | 47,095 | 29,321 |
Interest on overdue |
corporation tax | 963 | - |
49,103 | 30,228 |
7. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
31.12.22 | 31.12.21 |
£ | £ |
Current tax: |
UK corporation tax | 75,738 | 337,440 |
Deferred tax | (3,809 | ) | (33,299 | ) |
Tax on profit | 71,929 | 304,141 |
PRM Group Ltd (Registered number: NI601511) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2022 |
7. | 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: |
31.12.22 | 31.12.21 |
£ | £ |
Profit before tax | 358,970 | 1,599,554 |
Profit multiplied by the standard rate of corporation tax in the UK of 19 % (2021 - 19 %) |
68,204 |
303,915 |
Effects of: |
Expenses not deductible for tax purposes | 5,935 | 3,162 |
Depreciation in excess of capital allowances | 1,599 | 32,908 |
Adjustments to tax charge in respect of previous periods | - | (2,545 | ) |
Movement in deferred tax provision | (3,809 | ) | (33,299 | ) |
Total tax charge | 71,929 | 304,141 |
8. | INDIVIDUAL INCOME STATEMENT |
As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
9. | TANGIBLE FIXED ASSETS |
Group |
Fixtures |
Freehold | Plant and | and |
property | machinery | fittings | Totals |
£ | £ | £ | £ |
COST OR VALUATION |
At 1 January 2022 | 3,936,721 | 355,316 | 363,915 | 4,655,952 |
Additions | 153,591 | 250,000 | 9,254 | 412,845 |
At 31 December 2022 | 4,090,312 | 605,316 | 373,169 | 5,068,797 |
DEPRECIATION |
At 1 January 2022 | - | 301,316 | 303,756 | 605,072 |
Charge for year | - | 78,000 | 4,309 | 82,309 |
At 31 December 2022 | - | 379,316 | 308,065 | 687,381 |
NET BOOK VALUE |
At 31 December 2022 | 4,090,312 | 226,000 | 65,104 | 4,381,416 |
At 31 December 2021 | 3,936,721 | 54,000 | 60,159 | 4,050,880 |
PRM Group Ltd (Registered number: NI601511) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2022 |
9. | TANGIBLE FIXED ASSETS - continued |
Group |
Cost or valuation at 31 December 2022 is represented by: |
Fixtures |
Freehold | Plant and | and |
property | machinery | fittings | Totals |
£ | £ | £ | £ |
Valuation in 2020 | 2,200,000 | - | - | 2,200,000 |
Cost | 1,890,312 | 605,316 | 373,169 | 2,868,797 |
4,090,312 | 605,316 | 373,169 | 5,068,797 |
Freehold property consists of office space at Rathdown Road, Lissue Industrial Estate, Moira Road, Lisburn. This property was valued at an open market value on 31 December 2014 of £2,200,000 by Brian Nixon (FRICS) of Whelan Commercial Ltd acting as independent valuers on behalf of PRM Enterprises Ltd. The valuation report was prepared on 21 May 2015. At the balance sheet date it is felt that this still reflects the fair value of the property. |
10. | FIXED ASSET INVESTMENTS |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiaries |
Registered office: Rathdown Road, Lissue Industrial Estate, Moira Road, Lisburn, Co Antrim, BT28 2RE. |
Nature of business: |
% |
Class of shares: | holding |
31.12.22 | 31.12.21 |
£ | £ |
Aggregate capital and reserves |
Profit for the year |
PRM Group Ltd (Registered number: NI601511) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2022 |
10. | FIXED ASSET INVESTMENTS - continued |
Registered office: Rathdown Road, Lissue Industrial Estate, Moira Road, Lisburn, Co Antrim, BT28 2RE. |
Nature of business: |
% |
Class of shares: | holding |
31.12.22 | 31.12.21 |
£ | £ |
Aggregate capital and reserves |
Profit for the year |
Registered office: Rathdown Road, Lissue Industrial Estate, Moira Road, Lisburn, Co Antrim, BT28 2RE. |
Nature of business: |
% |
Class of shares: | holding |
31.12.22 | 31.12.21 |
£ | £ |
Aggregate capital and reserves |
Profit for the year |
11. | INVESTMENT PROPERTY |
Group |
Total |
£ |
FAIR VALUE |
At 1 January 2022 |
and 31 December 2022 | 2,139,724 |
DEPRECIATION |
At 1 January 2022 |
and 31 December 2022 | 14,724 |
NET BOOK VALUE |
At 31 December 2022 | 2,125,000 |
At 31 December 2021 | 2,125,000 |
PRM Group Ltd (Registered number: NI601511) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2022 |
11. | INVESTMENT PROPERTY - continued |
Group |
Fair value at 31 December 2022 is represented by: |
£ |
Valuation in 2020 | (697,639 | ) |
Cost | 2,837,363 |
2,139,724 |
Investment property consists of warehousing at Rathdown Road, Lissue Industrial Estate, Moira Road, Lisburn and Altnagelvin Industrial Estate, Londonderry. The property was valued at an open market value on 31 December 2014 of £2,125,000 by Brian Nixon (FRICS) of Whelan Commercial Ltd acting as independent valuers on behalf of PRM Enterprises Ltd. The valuation report was prepared on 21 May 2015. At the balance sheet date it is felt that this still reflects the fair value of the property. |
12. | STOCKS |
Group |
31.12.22 | 31.12.21 |
£ | £ |
Stocks | 677,528 | 342,924 |
13. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
31.12.22 | 31.12.21 | 31.12.22 | 31.12.21 |
£ | £ | £ | £ |
Trade debtors | 3,046,816 | 2,944,338 |
Other debtors | 3,132,195 | 509,734 |
VAT | 98,080 | 12,882 |
Prepayments and accrued income | 62,165 | 22,125 |
6,339,256 | 3,489,079 |
14. | CURRENT ASSET INVESTMENTS |
Company |
31.12.22 | 31.12.21 |
£ | £ |
Shares in group undertakings |
PRM Group Ltd (Registered number: NI601511) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2022 |
15. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
31.12.22 | 31.12.21 | 31.12.22 | 31.12.21 |
£ | £ | £ | £ |
Bank loans and overdrafts (see note 16) | 1,932,540 | 250,481 |
Trade creditors | 1,269,478 | 1,680,390 |
Tax | 130,705 | 339,986 |
Social security and other taxes | 31,392 | 34,557 |
Other creditors | 761,796 | 350,476 |
Directors' current accounts | 4,998 | 29,998 | 4,998 | 29,998 |
Accrued expenses | 52,789 | 36,212 |
4,183,698 | 2,722,100 |
16. | LOANS |
An analysis of the maturity of loans is given below: |
Group | Company |
31.12.22 | 31.12.21 | 31.12.22 | 31.12.21 |
£ | £ | £ | £ |
Amounts falling due within one year or | on demand: |
Bank overdrafts | 1,932,540 | 250,481 |
17. | SECURED DEBTS |
The following secured debts are included within creditors: |
Group |
31.12.22 | 31.12.21 |
£ | £ |
Bank overdraft | 1,932,540 | 250,481 |
The Bank holds a legal charge over the site at Lissue Industrial Estate, Rathdown Road, Lisburn and also a legal charge over the property at Unit 4 Glenaden Complex, Altnagelvin Industrial Estate, Londonderry. |
18. | PROVISIONS FOR LIABILITIES |
Group |
31.12.22 | 31.12.21 |
£ | £ |
Deferred tax | 5,124 | 8,933 |
PRM Group Ltd (Registered number: NI601511) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2022 |
18. | PROVISIONS FOR LIABILITIES - continued |
Group |
Deferred |
tax |
£ |
Balance at 1 January 2022 | 8,933 |
Movement in year due to: |
Accelerated Capital Allowances | (3,809 | ) |
Balance at 31 December 2022 | 5,124 |
Recognised deferred tax assets, as indicated by balances shown within brackets above, are included in Other debtors. |
19. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 31.12.22 | 31.12.21 |
value: | £ | £ |
Ordinary | £1 | 30,008 | 30,008 |
20. | RESERVES |
Group |
Retained |
earnings |
£ |
At 1 January 2022 | 9,018,249 |
Profit for the year | 287,041 |
At 31 December 2022 | 9,305,290 |
Company |
Retained |
earnings |
£ |
At 1 January 2022 | ( |
) |
Deficit for the year | ( |
) |
At 31 December 2022 | ( |
) |
PRM Group Ltd (Registered number: NI601511) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2022 |
21. | RELATED PARTY DISCLOSURES |
During the period to 31 December 2022 PRM Distribution Ltd, PRM Enterprises Ltd and PRM Ireland Ltd had the following transactions with companies which are under the common control of the Directors and shareholders of PRM Group Ltd. |
PRM Distribution Ltd |
During the year PRM Distribution Ltd sold goods to the value of £168,722 (2021 £310,000), purchased goods to the value of £2,933,457 (2021 £2,392,075),and paid the following charges to these companies: rent for premises £24,000 (2021 £24,000), warehouse and distribution charges £214,632 (2021 £206,099), haulage charges £460,527 (2021 £854,249), motor vehicle hire £45,004 (2021 £35,246) and maintenance and security charges £39,342 (2021 £102,481). PRM Distribution also charged these companies a management charge amounting to £406,883 (2021 £448,199). and received interest on inter-company lending of £40,250 (2021 £32,303). |
PRM Distribution Ltd operated current accounts with these companies. At the year end the balance due to PRM Enterprises and RPM Motorsports Ltd amounted to £40,000 and £25,000 respectively, with £150,000, £200,000 and 205,000 due form PRM Logistics Ltd, PRM Haulage Ltd and PRM Transport Ltd respectively. |
PRM Enterprises Ltd |
During the year PRM Enterprises Ltd charged these companies a total of £225,250 (2021 £210,000) for the rent of premises and £60,000 for the hire of plant and machinery. PRM Enterprises Ltd also incurred a management charge of £10,084 (2021 £8,087) and interest on intercompany lending of £210,000 (2020 £159,828) from these companies. |
The Company purchased plant and equipment for £250,000 from Cottage Desserts Ltd. The Company also operated current accounts with these companies. The balance due at the year end from PRM Distribution Ltd and Cottage Desserts Ltd amounted to £40,000 and £60,000 respectively. |
PRM Ireland Ltd |
During the year PRM Ireland Ltd sold goods to these companies for a total of £Nil (2021 £1,807,500) and also received interest amounting to £188,289 (2021 £190,852) in relation to intercompany lending. PRM Ireland Ltd also purchased goods to the value of £168,722 (2021 £2,867,368), incurred a management charge of £92,133 (2021 £134,843), and a warehousing and distribution service of £1,884,045 (2021 £1,872,244) in relation to these companies. |
At the year end the company was owed £1,938,625 from PRM Ireland Sales Ltd and owed £60,000 to PRM Logistics Ltd, £246,000 to PRM Haulage Ltd and £55,000 to RPM Motorsport Ltd. |
22. | ULTIMATE CONTROLLING PARTY |
The ultimate controlling party are the Directors due to their equity shareholding in the company. |