Registered number
03952856
Purpose Products Company Limited
Filleted Accounts
31 March 2023
Purpose Products Company Limited
Registered number: 03952856
Balance Sheet
as at 31 March 2023
Notes 2023 2022
£ £
Fixed assets
Tangible assets 3 3,014,308 4,287,510
Investments 4 1,551,734 1,551,734
4,566,042 5,839,244
Current assets
Stocks 30,000 62,001
Debtors 5 434,360 253,982
Cash at bank and in hand 5,371,019 38,139
5,835,379 354,122
Creditors: amounts falling due within one year 6 (1,056,848) (2,357,289)
Net current assets/(liabilities) 4,778,531 (2,003,167)
Total assets less current liabilities 9,344,573 3,836,077
Provisions for liabilities (197,203) (321,577)
Net assets 9,147,370 3,514,500
Capital and reserves
Called up share capital 1,449 1,449
Share premium 266 266
Profit and loss account 9,145,655 3,512,785
Shareholders' funds 9,147,370 3,514,500
The directors are satisfied that the company is entitled to exemption from the requirement to obtain an audit under section 477 of the Companies Act 2006.
The members have not required the company to obtain an audit in accordance with section 476 of the Act.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of accounts.
The accounts have been prepared and delivered in accordance with the special provisions applicable to companies subject to the small companies regime. The profit and loss account has not been delivered to the Registrar of Companies.
P Andon
Director
Approved by the board on 25 July 2023
Purpose Products Company Limited
Notes to the Accounts
for the year ended 31 March 2023
1 Accounting policies
Basis of preparation
The accounts have been prepared under the historical cost convention and in accordance with FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland (as applied to small entities by section 1A of the standard).
Turnover
Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods and from the rendering of services. Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have transferred to the buyer. Turnover from the rendering of services is recognised by reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs.
Tangible fixed assets
Tangible fixed assets are measured at cost less accumulative depreciation and any accumulative impairment losses. Depreciation is provided on all tangible fixed assets, other than freehold land, at rates calculated to write off the cost, less estimated residual value, of each asset evenly over its expected useful life, as follows:
Freehold buildings over 50 years
Leasehold land and buildings over the lease term
Plant and machinery over 5 years
Fixtures, fittings, tools and equipment over 5 years
Investments
Investments in subsidiaries, associates and joint ventures are measured at cost less any accumulated impairment losses. Listed investments are measured at fair value. Unlisted investments are measured at fair value unless the value cannot be measured reliably, in which case they are measured at cost less any accumulated impairment losses. Changes in fair value are included in the profit and loss account.
Stocks
Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first in first out method. The carrying amount of stock sold is recognised as an expense in the period in which the related revenue is recognised.
Debtors
Short term debtors are measured at transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts. Loans and other financial assets are initially recognised at transaction price including any transaction costs and subsequently measured at amortised cost determined using the effective interest method, less any impairment losses for bad and doubtful debts.
Creditors
Short term creditors are measured at transaction price (which is usually the invoice price). Loans and other financial liabilities are initially recognised at transaction price net of any transaction costs and subsequently measured at amortised cost determined using the effective interest method.
Taxation
A current tax liability is recognised for the tax payable on the taxable profit of the current and past periods. A current tax asset is recognised in respect of a tax loss that can be carried back to recover tax paid in a previous period. Deferred tax is recognised in respect of all timing differences between the recognition of income and expenses in the financial statements and their inclusion in tax assessments. 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used. Current and deferred tax assets and liabilities are not discounted. Deferred taxation is provided for at 25% (2021: 19%) which was the legislated rate at the balance sheet date.
Pensions
Contributions to defined contribution plans are expensed in the period to which they relate.
2 Employees 2023 2022
Number Number
Average number of persons employed by the company 4 4
3 Tangible fixed assets
Land and buildings Plant and machinery etc Motor vehicles Total
£ £ £ £
Cost
At 1 April 2022 4,265,561 226,438 20,554 4,512,553
Disposals (1,260,304) - (20,554) (1,280,858)
At 31 March 2023 3,005,257 226,438 - 3,231,695
Depreciation
At 1 April 2022 - 213,160 11,883 225,043
Charge for the year - 4,227 - 4,227
On disposals - - (11,883) (11,883)
At 31 March 2023 - 217,387 - 217,387
Net book value
At 31 March 2023 3,005,257 9,051 - 3,014,308
At 31 March 2022 4,265,561 13,278 8,671 4,287,510
4 Investments
Investments in
subsidiary Other
undertakings investments Total
£ £ £
Fair Value
At 1 April 2022 1,734 1,550,000 1,551,734
At 31 March 2023 1,734 1,550,000 1,551,734
Historical cost
At 1 April 2022 1,734 583,159
At 31 March 2023 1,734 583,159
5 Debtors 2023 2022
£ £
Trade debtors 6,406 38,534
Amounts owed by group undertakings and undertakings in which the company has a participating interest 269,748 215,045
Other debtors 158,206 403
434,360 253,982
6 Creditors: amounts falling due within one year 2023 2022
£ £
Amounts owed to group undertakings and undertakings in which the company has a participating interest - 1,080,102
Taxation and social security costs 1,023,144 28,275
Other creditors 33,704 1,248,912
1,056,848 2,357,289
7 Pension commitments
The company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost charge represents contributions payable by the company to the fund and amounted to £51,000 (2022: £21,000).
8 Loans to directors
Description and conditions B/fwd Paid Repaid C/fwd
£ £ £ £
S C Andon
Interest-bearing short term loan - 150,000 - 150,000
- 150,000 - 150,000
9 Other information
Purpose Products Company Limited is a private company limited by shares and incorporated in England. Its registered office is:
214 Ilderton Road
London
SE15 1NT
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