Company registration number 08804234 (England and Wales)
PR POWERSAVING SOLUTIONS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
PR POWERSAVING SOLUTIONS LIMITED
COMPANY INFORMATION
Directors
Mrs H K Richardson
Mr A Richardson
Mr A C Perry
Company number
08804234
Registered office
Units 1 - 7 Dukeries Court
Medenside
Meden Vale
Mansfield
Nottinghamshire
NG20 9QU
Auditor
Jamieson Alexander Audit Limited
Unit B2
The Point
Weaver Road
Lincoln
LN6 3QN
Bankers
Barclays Bank Plc
23 Market Place
Mansfield
Nottinghamshire
NG18 1HZ
Solicitors
Hopkins Solicitors LLP
Eden Court
Crow Hill Drive
Mansfield
NG19 7AE
PR POWERSAVING SOLUTIONS LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Independent auditor's report
4 - 6
Statement of comprehensive income
7
Balance sheet
8
Statement of changes in equity
10
Statement of cash flows
9
Notes to the financial statements
11 - 26
PR POWERSAVING SOLUTIONS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

The directors present the strategic report for the year ended 31 December 2023.

Principal activities

The principal activity of the company continued to be that of the design, manufacture, hire and sale of battery power units for commercial use.

Review of the business

The directors consider the results for the year to be exceptionally strong. They are a reflection of the business and its ability to continue to develop an outstanding range of products and bring them to market. The company have been instrumental in growing the use of battery storage within plant hire and the construction industry. The business has also established a strong supply chain across multiple suppliers which are capable of meeting our needs.

 

Principal risks and uncertainties

 

Credit risk

The company’s main financial assets are trade receivables and cash bank balances. Those assets represent the company’s main exposure to credit risk, which is a risk that a counterparty will fail to discharge its obligations, resulting in financial loss to the company. Whilst the company does provide goods and services to many large customers, it is not reliant on any of these to continue its operations. In addition, our standard terms of payment have been adjusted to reflect the size of any single order. With this in mind, the Directors believe that credit risk is both limited and mitigated.

 

Competitive risk

The company operates in an industry that currently has limited competitors, in particular competitors who are able to manufacture, sell and hire. This however is increasing in number by the year which could lead to pricing pressure and tighter profit margins. The Directors continually monitor this risk, and the company holds a strong position in the market with the brand name ‘Hussh Pod’ being synonymous with battery storage in the industry.

 

Regulation risk

The company operates in an industry which is subject to numerous regulations covering a wide range of matters including health and safety, employment and other operating issues. We have invested heavily in our support network and the company is continually ensuring that all compliance demands are met and the Directors have ensured that the policies and culture in relation to this are well communicated to all employees.

 

Finance risk

The company funded its operations for the period through a combination of retained profits and asset-backed finance arrangements.

 

Economic risk

The company operates in a market which is still at the early inception phase across a plethora of industries. New technology or problems with existing technology could slow the roll-out of further inceptions. The Directors acknowledge this risk and believe that we have a 10 year start on the vast majority of our competitors and continue to update and improve our product range. The Directors are also aware of the current conflict between Ukraine and Russia and the impact this may have on the global supply chain and the possibility of future sanctions with China. The Directors continue to monitor the situation closely.

 

PR POWERSAVING SOLUTIONS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
Development and performance

The business returned a profit before tax of £3,349,000 (2022 - £3,013,000) and gross profit of £5,597,000 (2022 - £4,390,000) from turnover of £14,287,000 (2022 - £10,624,000).

 

The period ended with £6,005,000 (2022 - £3,599,000) of net assets, which shows the continued strength of the balance sheet.

 

The Directors consider the business to be in fantastic shape to deliver further significant growth on both turnover and profit in the year ahead. We have won a significant number of new customers on both sale and hire and have massively improved the design and performance of both old and new fleet.

 

The company generated cash from operations of £4,529,000 which will be used for the future growth of the business.

 

Key performance indicators

The performance of the business is monitored using several key performance indicators, most notably turnover growth and profit before tax. These KPIs are discussed above.

On behalf of the board

Mr A Richardson
Director
4 March 2024
PR POWERSAVING SOLUTIONS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -

The directors present their annual report and financial statements for the year ended 31 December 2023.

Results and dividends

The results for the year are set out on page 7.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Mrs H K Richardson
Mr A Richardson
Mr A C Perry
Future developments

The company have established a strong R&D department and through this we will continue to expand our portfolio of products. We see significant increase in the sale of higher voltage units and the enhancement of our operating platform as being key to further growth.

Statement of directors' responsibilities

The directors are responsible for preparing the annual report 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:

 

 

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 of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

On behalf of the board
Mr A Richardson
Director
4 March 2024
PR POWERSAVING SOLUTIONS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF PR POWERSAVING SOLUTIONS LIMITED
- 4 -
Opinion

We have audited the financial statements of PR Powersaving Solutions Limited (the 'company') for the year ended 31 December 2023 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including 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:

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 Auditor's 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 other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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. 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 course of 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 our audit:

PR POWERSAVING SOLUTIONS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF PR POWERSAVING SOLUTIONS LIMITED
- 5 -
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 directors' report.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, 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 is 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.

Auditor's 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 an auditor's report 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 assessed the susceptibility of the company's financial statements to material misstatement, including obtaining

an understanding of how fraud might occur, by:

To address the risk of fraud through management bias and override of controls, we:

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

 

PR POWERSAVING SOLUTIONS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF PR POWERSAVING SOLUTIONS LIMITED
- 6 -

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

 

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Other matters

The company's financial statements for the year ended 31 December 2022 were unaudited.

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 an auditor's report 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.

Mr James Rylatt
Senior Statutory Auditor
For and on behalf of Jamieson Alexander Audit Limited
4 March 2024
Chartered Accountants
Statutory Auditor
Unit B2
The Point
Weaver Road
Lincoln
LN6 3QN
PR POWERSAVING SOLUTIONS LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 7 -
2023
2022
Notes
£000
£000
Turnover
3
14,287
10,624
Cost of sales
(8,690)
(6,234)
Gross profit
5,597
4,390
Administrative expenses
(1,687)
(1,025)
Other operating income
21
25
Operating profit
4
3,931
3,390
Interest payable and similar expenses
8
(582)
(377)
Profit before taxation
3,349
3,013
Tax on profit
9
(815)
(654)
Profit for the financial year
2,534
2,359

The profit and loss account has been prepared on the basis that all operations are continuing operations.

PR POWERSAVING SOLUTIONS LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 8 -
2023
2022
Notes
£000
£000
£000
£000
Fixed assets
Intangible assets
11
85
57
Tangible assets
12
8,897
7,361
8,982
7,418
Current assets
Stocks
13
1,469
2,235
Debtors
14
3,397
3,904
Cash at bank and in hand
1,617
1,032
6,483
7,171
Creditors: amounts falling due within one year
15
(6,169)
(7,293)
Net current assets/(liabilities)
314
(122)
Total assets less current liabilities
9,296
7,296
Creditors: amounts falling due after more than one year
16
(2,245)
(2,818)
Provisions for liabilities
Deferred tax liability
18
1,046
879
(1,046)
(879)
Net assets
6,005
3,599
Capital and reserves
Called up share capital
21
-
0
-
0
Share premium account
50
50
Profit and loss reserves
5,955
3,549
Total equity
6,005
3,599
The financial statements were approved by the board of directors and authorised for issue on 4 March 2024 and are signed on its behalf by:
Mr A Richardson
Director
Company Registration No. 08804234
PR POWERSAVING SOLUTIONS LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
2023
2022
Notes
£000
£000
£000
£000
Cash flows from operating activities
Cash generated from operations
25
4,529
6,071
Income taxes (paid)/refunded
(206)
38
Net cash inflow from operating activities
4,323
6,109
Investing activities
Purchase of intangible assets
(36)
(61)
Purchase of tangible fixed assets
(2,716)
(4,442)
Proceeds from disposal of tangible fixed assets
2
31
Loans made to other entities
(136)
-
0
Net cash used in investing activities
(2,886)
(4,472)
Financing activities
Proceeds from borrowings
12
8
Proceeds from new bank loans
2,520
3,260
Repayment of bank loans
(2,495)
(3,676)
Interest paid
(582)
(377)
Dividends paid
(307)
(211)
Net cash used in financing activities
(852)
(996)
Net increase in cash and cash equivalents
585
641
Cash and cash equivalents at beginning of year
1,032
391
Cash and cash equivalents at end of year
1,617
1,032
PR POWERSAVING SOLUTIONS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
Share capital
Share premium account
Profit and loss reserves
Total
Notes
£000
£000
£000
£000
Balance at 1 January 2022
-
0
50
1,361
1,411
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
-
2,359
2,359
Dividends
10
-
-
(211)
(211)
Credit to equity for equity settled share-based payments
20
-
-
40
40
Balance at 31 December 2022
-
0
50
3,549
3,599
Year ended 31 December 2023:
Profit and total comprehensive income for the year
-
-
2,534
2,534
Dividends
10
-
-
(307)
(307)
Credit to equity for equity settled share-based payments
20
-
-
179
179
Balance at 31 December 2023
-
0
50
5,955
6,005
PR POWERSAVING SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
1
Accounting policies
Company information

PR Powersaving Solutions Limited is a private company limited by shares incorporated in England and Wales. The registered office is Units 1 - 7 Dukeries Court, Medenside, Meden Vale, Mansfield, Nottinghamshire, NG20 9QU.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £1,000.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2
Going concern

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.

1.4
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of unincorporated businesses 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 is amortised on a systematic basis over its expected life, which is five years.

 

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

PR POWERSAVING SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 12 -
1.5
Intangible fixed 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 other 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
6 years
1.6
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:

Leasehold improvements
Over the term of the lease
Plant and equipment
3 - 10 years

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

1.7
Impairment of fixed assets

At each reporting period end date, the company 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 the 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.

PR POWERSAVING SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 13 -
1.8
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

 

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.

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.

1.9
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.10
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

PR POWERSAVING SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 14 -
Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

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 company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

PR POWERSAVING SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 15 -
Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.11
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.12
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.13
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.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.14
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.15
Share-based payments

Equity-settled share-based payments are measured at fair value at the date of grant by reference to the fair value of the equity instruments granted using the binomial option pricing model. The fair value determined at the grant date is expensed on a straight-line basis over the vesting period, based on the estimate of shares that will eventually vest. A corresponding adjustment is made to equity.

 

PR POWERSAVING SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 16 -

When the terms and conditions of equity-settled share-based payments at the time they were granted are subsequently modified, the fair value of the share-based payment under the original terms and conditions and under the modified terms and conditions are both determined at the date of the modification. Any excess of the modified fair value over the original fair value is recognised over the remaining vesting period in addition to the grant date fair value of the original share-based payment. The share-based payment expense is not adjusted if the modified fair value is less than the original fair value.

 

Cancellations or settlements (including those resulting from employee redundancies) are treated as an acceleration of vesting and the amount that would have been recognised over the remaining vesting period is recognised immediately.

1.16
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 leases asset are consumed.

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

1.17
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.

 

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying 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 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.

3
Turnover and other revenue
2023
2022
£000
£000
Turnover analysed by class of business
Sale of goods
8,662
6,898
Sale of services
5,625
3,726
14,287
10,624
PR POWERSAVING SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
3
Turnover and other revenue
(Continued)
- 17 -
2023
2022
£000
£000
Other revenue
Grants received
1
2

Materially all turnover is derived from within the United Kingdom.

4
Operating profit
2023
2022
Operating profit for the year is stated after charging/(crediting):
£000
£000
Government grants
(1)
(2)
Depreciation of owned tangible fixed assets
960
579
Loss/(profit) on disposal of tangible fixed assets
218
(2)
Amortisation of intangible assets
8
4
Share-based payments
179
40
Operating lease charges
324
232
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£000
£000
For audit services
Audit of the financial statements of the company
25
-
0
6
Employees
2023
2022
Number
Number
Senior management
2
2
Administration
3
3
Sales and technical staff
31
33
Total
36
38
PR POWERSAVING SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
6
Employees
(Continued)
- 18 -
2023
2022
£000
£000
Wages and salaries
1,744
1,110
Social security costs
168
101
Pension costs
85
56
1,997
1,267
7
Directors' remuneration
2023
2022
£000
£000
Remuneration for qualifying services
211
130
Company pension contributions to defined contribution schemes
62
41
273
171

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2022 - 1).

Remuneration disclosed above include the following amounts paid to the highest paid director:
2023
2022
£000
£000
Remuneration for qualifying services
149
101
Company pension contributions to defined contribution schemes
61
41
8
Interest payable and similar expenses
2023
2022
£000
£000
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
576
377
Other finance costs:
Other interest
6
-
0
582
377
9
Taxation
2023
2022
£000
£000
Current tax
UK corporation tax on profits for the current period
648
208
PR POWERSAVING SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
9
Taxation
2023
2022
£000
£000
(Continued)
- 19 -
Deferred tax
Origination and reversal of timing differences
167
309
Changes in tax rates
-
0
137
Total deferred tax
167
446
Total tax charge
815
654

The main rate of corporation tax in the United Kingdom increased to 25% from 19% with effect from 1 April 2023.

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2023
2022
£000
£000
Profit before taxation
3,349
3,013
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2022: 19.00%)
837
572
Tax effect of expenses that are not deductible in determining taxable profit
5
9
Effect of change in corporation tax rate
(38)
137
Permanent capital allowances in excess of depreciation
(3)
(4)
Research and development tax credit
-
0
(135)
Other permanent differences
14
-
0
Deferred tax at enacted rates
-
0
75
Taxation charge for the year
815
654
10
Dividends
2023
2022
£000
£000
Interim paid
307
211
PR POWERSAVING SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 20 -
11
Intangible fixed assets
Goodwill
Software
Total
£000
£000
£000
Cost
At 1 January 2023
17
61
78
Additions
-
0
36
36
At 31 December 2023
17
97
114
Amortisation and impairment
At 1 January 2023
17
4
21
Amortisation charged for the year
-
0
8
8
At 31 December 2023
17
12
29
Carrying amount
At 31 December 2023
-
0
85
85
At 31 December 2022
-
0
57
57
12
Tangible fixed assets
Leasehold improvements
Plant and equipment
Total
£000
£000
£000
Cost
At 1 January 2023
168
9,154
9,322
Additions
9
2,707
2,716
Disposals
(4)
(1,187)
(1,191)
At 31 December 2023
173
10,674
10,847
Depreciation and impairment
At 1 January 2023
35
1,926
1,961
Depreciation charged in the year
20
940
960
Eliminated in respect of disposals
(4)
(967)
(971)
At 31 December 2023
51
1,899
1,950
Carrying amount
At 31 December 2023
122
8,775
8,897
At 31 December 2022
133
7,228
7,361

The carrying value of land and buildings comprises:

2023
2022
£000
£000
Short leasehold
122
133
PR POWERSAVING SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
12
Tangible fixed assets
(Continued)
- 21 -

Included in the carrying value of tangible fixed assets are assets held under hire purchase contracts with a carrying value of £6,905,000 (2022 - £5,543,000). The amounts falling due are secured on the underlying assets.

13
Stocks
2023
2022
£000
£000
Raw materials and consumables
722
1,623
Work in progress
365
612
Finished goods and goods for resale
382
-
0
1,469
2,235

Included in stock balances is £nil (2022 - £1,070,000) in respect of payments on account to suppliers where the risks and rewards of ownership had not passed to the company at the balance sheet date.

14
Debtors
2023
2022
Amounts falling due within one year:
£000
£000
Trade debtors
3,056
3,852
Corporation tax recoverable
46
-
0
Other debtors
143
-
0
Prepayments and accrued income
152
52
3,397
3,904
15
Creditors: amounts falling due within one year
2023
2022
Notes
£000
£000
Bank loans
17
2,604
1,983
Other borrowings
17
53
41
Trade creditors
891
1,137
Corporation tax
696
208
Other taxation and social security
704
476
Deferred income
1,177
3,402
Other creditors
-
0
45
Accruals and deferred income
44
1
6,169
7,293
PR POWERSAVING SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 22 -
16
Creditors: amounts falling due after more than one year
2023
2022
Notes
£000
£000
Bank loans and overdrafts
17
2,148
2,744
Deferred income
97
74
2,245
2,818
17
Loans and overdrafts
2023
2022
£000
£000
Bank loans
4,752
4,727
Loans from related parties
53
41
4,805
4,768
Payable within one year
2,657
2,024
Payable after one year
2,148
2,744

Borrowings totalling £1,185,000 are secured by fixed and floating charges over all assets of the company, including present and future plant and equipment, chattels, book and other debts, and assignment of hire income.

 

There are no amounts due after a period of five years from the reporting date (2022 - £nil).

18
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Liabilities
Liabilities
2023
2022
Balances:
£000
£000
Accelerated capital allowances
1,103
900
Share based payments
(55)
(10)
Other timing differences
(2)
(11)
1,046
879
PR POWERSAVING SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
18
Deferred taxation
(Continued)
- 23 -
2023
Movements in the year:
£000
Liability at 1 January 2023
879
Charge to profit or loss
167
Liability at 31 December 2023
1,046

The deferred tax liability set out above is expected to reverse within the next 3 to 5 years and relates to accelerated capital allowances that are expected to mature within the same period.

19
Retirement benefit schemes
2023
2022
Defined contribution schemes
£000
£000
Charge to profit or loss in respect of defined contribution schemes
85
56

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.

 

Pension contributions of £9,000 were outstanding at the reporting date (2022 - £44,000).

20
Share-based payment transactions
Number of share options
Weighted average exercise price
2023
2022
2023
2022
Number
Number
£000
£000
Outstanding at 1 January 2023
3,250
-
0
60.00
-
0
Granted
-
0
3,250
-
0
60.00
Forfeited
(230)
-
0
60.00
-
0
Outstanding at 31 December 2023
3,020
3,250
60.00
60.00
Exercisable at 31 December 2023
-
0
-
0
-
0
-
0

The Company operates a share option scheme to motivate and retain its employees. All options outstanding at 31 December 2023 had an exercise price of £60 and a remaining contractual life of approximately eight and a half years.

 

The weighted average fair value of options at the grant date was determined using the binomial option pricing model which is considered to apply the most appropriate valuation method due to the nature of the vesting conditions attaching to the options.

Liabilities and expenses

During the year, the company recognised total share-based payment expenses of £179,000 (2022 - £40,000) which related to equity settled share based payment transactions.

PR POWERSAVING SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 24 -
21
Share capital
2023
2022
2023
2022
A Ordinary of 0.1p each
15,000
15,000
-
-
B Ordinary of 0.1p each
55,000
55,000
-
-
C Ordinary of 0.1p each
30,000
30,000
-
-

All shares carry one vote per share and rank pari passu on winding up. Dividends may be declared unequally between the A Ordinary, B Ordinary and C Ordinary shares.

22
Operating lease commitments
Lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2023
2022
£000
£000
Within one year
245
229
Between two and five years
378
723
623
952
23
Related party transactions
Transactions with related parties

During the year the company entered into the following transactions with related parties:

Purchases of services:
2023
2022
£000
£000
Other entities controlled by the same ultimate controlling party
48
14
2023
2022
Amounts due to related parties
£000
£000
Other entities controlled by the same ultimate controlling party
53
41

During the year, a total of £59,000 was advanced to other companies in which the directors have a controlling participating interest. Amounts of £47,000 were repaid.

 

The amounts due to related parties are unsecured and are to be settled in cash or by intercompany recharges.

PR POWERSAVING SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
23
Related party transactions
(Continued)
- 25 -

The following amounts were outstanding at the reporting end date:

2023
2023
2023
Balance
Provision
Net
Amounts due from related parties
£000
£000
£000
Other entities controlled by the same ultimate controlling party
7
7
-
There were no amounts owed in the previous period.
24
Directors' transactions

Interest free loans have been granted by the company to its directors as follows:

Description
% Rate
Opening balance
Amounts advanced
Closing balance
£000
£000
£000
Loan repayable on demand
-
-
43
43
Loan repayable on demand
-
-
89
89
Loan repayable on demand
-
-
5
5
-
137
137
25
Cash generated from operations
2023
2022
£000
£000
Profit for the year after tax
2,534
2,359
Adjustments for:
Taxation charged
815
654
Finance costs
582
377
Loss/(gain) on disposal of tangible fixed assets
218
(2)
Amortisation and impairment of intangible assets
8
4
Depreciation and impairment of tangible fixed assets
960
579
Equity settled share based payment expense
179
40
Movements in working capital:
Decrease/(increase) in stocks
766
(1,524)
Decrease/(increase) in debtors
689
(3,225)
(Decrease)/increase in creditors
(20)
3,333
(Decrease)/increase in deferred income
(2,202)
3,476
Cash generated from operations
4,529
6,071
PR POWERSAVING SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 26 -
26
Analysis of changes in net debt
1 January 2023
Cash flows
31 December 2023
£000
£000
£000
Cash at bank and in hand
1,032
585
1,617
Borrowings excluding overdrafts
(4,768)
(37)
(4,805)
(3,736)
548
(3,188)
2023-12-312023-01-01falseCCH SoftwareCCH Accounts Production 2023.100Mrs H K RichardsonMr A RichardsonMr A C Perry088042342023-01-012023-12-3108804234bus:Director12023-01-012023-12-3108804234bus:Director22023-01-012023-12-3108804234bus:Director32023-01-012023-12-3108804234bus:RegisteredOffice2023-01-012023-12-3108804234bus:Agent12023-01-012023-12-31088042342023-12-31088042342022-01-012022-12-3108804234core:RetainedEarningsAccumulatedLosses2022-01-012022-12-3108804234core:RetainedEarningsAccumulatedLosses2023-01-012023-12-3108804234core:OtherResidualIntangibleAssets2023-12-3108804234core:OtherResidualIntangibleAssets2022-12-3108804234core:Goodwill2023-12-3108804234core:ComputerSoftware2023-12-3108804234core:Goodwill2022-12-3108804234core:ComputerSoftware2022-12-31088042342022-12-3108804234core:LandBuildingscore:LeasedAssetsHeldAsLessee2023-12-3108804234core:PlantMachinery2023-12-3108804234core:LandBuildingscore:LeasedAssetsHeldAsLessee2022-12-3108804234core:PlantMachinery2022-12-3108804234core:CurrentFinancialInstrumentscore:WithinOneYear2023-12-3108804234core:CurrentFinancialInstrumentscore:WithinOneYear2022-12-3108804234core:Non-currentFinancialInstrumentscore:AfterOneYear2023-12-3108804234core:Non-currentFinancialInstrumentscore:AfterOneYear2022-12-3108804234core:CurrentFinancialInstruments2023-12-3108804234core:CurrentFinancialInstruments2022-12-3108804234core:Non-currentFinancialInstruments2023-12-3108804234core:Non-currentFinancialInstruments2022-12-3108804234core:ShareCapital2023-12-3108804234core:ShareCapital2022-12-3108804234core:SharePremium2023-12-3108804234core:SharePremium2022-12-3108804234core:RetainedEarningsAccumulatedLosses2023-12-3108804234core:RetainedEarningsAccumulatedLosses2022-12-3108804234core:ShareCapital2021-12-3108804234core:SharePremium2021-12-3108804234core:RetainedEarningsAccumulatedLosses2021-12-310880423412023-01-012023-12-310880423412022-01-012022-12-310880423422023-01-012023-12-310880423422022-01-012022-12-31088042342022-12-31088042342021-12-3108804234core:Goodwill2023-01-012023-12-3108804234core:IntangibleAssetsOtherThanGoodwill2023-01-012023-12-3108804234core:ComputerSoftware2023-01-012023-12-3108804234core:LandBuildingscore:LongLeaseholdAssets2023-01-012023-12-3108804234core:PlantMachinery2023-01-012023-12-3108804234core:UKTax2023-01-012023-12-3108804234core:UKTax2022-01-012022-12-3108804234core:Goodwill2022-12-3108804234core:ComputerSoftware2022-12-3108804234core:Goodwillcore:ExternallyAcquiredIntangibleAssets2023-01-012023-12-3108804234core:ComputerSoftwarecore:ExternallyAcquiredIntangibleAssets2023-01-012023-12-3108804234core:ExternallyAcquiredIntangibleAssets2023-01-012023-12-3108804234core:LandBuildingscore:LeasedAssetsHeldAsLessee2022-12-3108804234core:PlantMachinery2022-12-3108804234core:LandBuildingscore:LeasedAssetsHeldAsLessee2023-01-012023-12-3108804234core:LandBuildingscore:ShortLeaseholdAssets2023-12-3108804234core:LandBuildingscore:ShortLeaseholdAssets2022-12-3108804234core:WithinOneYear2023-12-3108804234core:WithinOneYear2022-12-3108804234core:BetweenTwoFiveYears2023-12-3108804234core:BetweenTwoFiveYears2022-12-3108804234bus:PrivateLimitedCompanyLtd2023-01-012023-12-3108804234bus:FRS1022023-01-012023-12-3108804234bus:Audited2023-01-012023-12-3108804234bus:FullAccounts2023-01-012023-12-31xbrli:purexbrli:sharesiso4217:GBP