Company registration number 13662266 (England and Wales)
PGM CARPENTRY HOLDINGS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2023
PGM CARPENTRY HOLDINGS LIMITED
COMPANY INFORMATION
Directors
Mr. M Wheeler
(Appointed 5 October 2021)
Mr. S Monk
(Appointed 5 October 2021)
Company number
13662266
Registered office
7 - 8 Britannia Business Park
Comet Way
Southend-On-Sea
Essex
United Kingdom
SS2 6GE
Auditor
Azets Audit Services
7 - 8 Britannia Business Park
Comet Way
Southend-On-Sea
Essex
United Kingdom
SS2 6GE
PGM CARPENTRY HOLDINGS LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2
Directors' responsibilities statement
3
Independent auditor's report
4 - 6
Profit and loss account
7
Group statement of comprehensive income
8
Group balance sheet
9
Company balance sheet
10
Group statement of changes in equity
11
Company statement of changes in equity
12
Group statement of cash flows
13
Notes to the financial statements
14 - 27
PGM CARPENTRY HOLDINGS LIMITED
STRATEGIC REPORT
FOR THE PERIOD ENDED 31 MARCH 2023
- 1 -

The directors present the strategic report for the Period ended 31 March 2023.

Principal activities

The principal activities of the Group during the year were carpentry and Joinery of new build constructions, and the introduction of fire door inspections/maintenance.

Review of the business

The business had a successful 2022/23 with results exceeding our expectations during what was another turbulent year for the global economy. With the effects of COVID barely behind us, the UK economy, and the construction industry in particular, have continued to be affected by the cost-of-living crisis and global effects of war in other countries. The staff have risen to the challenges faced by our organisation, and we would like to thank them for their continued hard work.

 

Our strategy has been to implement tighter control measures, reduce costs wastage and promote the introduction of fire door safety services. We have further invested in our staff through training to achieve qualifications relevant to the future of our organisation. By encouraging staff CPD, these measures have had a positive impact on our business and the services that we provide.

 

We have also taken the initiative to reduce our environmental impact by investing in our premises with energy saving systems, improved insulation, and LED lighting. The benefits of which have been swiftly felt through reduced energy bills. We will continue to review future measures that may be taken in our commitment to the environment.

 

We look to 2023/24 with cautious optimism as the future of the UK economy remains susceptible to the global effects of ongoing wars in other countries. Directors use management information to continue to manage the business direction and make timely decisions to keep the business on track.

Principal risks and uncertainties

The management of the business and the execution of the Company’s strategy are subject to several risks. The key business risks and uncertainties affecting our organisation are relative to the economic environment and market conditions. The result of such conditions poses a risk to the pricing of long-term projects competitively whilst considering uncertain fluctuations in future costs and expenses.

 

Another risk, which is inherent to the construction industry is Health and Safety. Health and Safety remains a crucial focus for the Directors. Policies and procedures are reviewed regularly, and operatives kept up to date with any changes.

Development and performance

The Directors continue to focus on measuring and improving service performance, particularly through the usage of resources and labour productivity. We are fortunate to have a skilled and co-operative workforce, and we continue to invest in training and wellbeing.

 

The Directors’ forecast for the coming year project the slowdown within the industry will result in a slight decline of turnover, coupled with a proportionate decrease in operating profits.

On behalf of the board

Mr. M Wheeler
Director
11 March 2024
PGM CARPENTRY HOLDINGS LIMITED
DIRECTORS' REPORT
FOR THE PERIOD ENDED 31 MARCH 2023
- 2 -

The directors present their annual report and financial statements for the Period ended 31 March 2023.

Results and dividends

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

No ordinary dividends were paid. The directors do not recommend payment of a further dividend.

Directors

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

Mr. M Wheeler
(Appointed 5 October 2021)
Mr. S Monk
(Appointed 5 October 2021)
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 auditor of the company 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 auditor of the company is aware of that information.

On behalf of the board
Mr. M Wheeler
Mr. S Monk
Director
Director
11 March 2024
PGM CARPENTRY HOLDINGS LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE PERIOD ENDED 31 MARCH 2023
- 3 -

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 group and company, and of the profit or loss of the group 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 group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

PGM CARPENTRY HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF PGM CARPENTRY HOLDINGS LIMITED
- 4 -
Opinion

We have audited the financial statements of PGM Carpentry Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the Period ended 31 March 2023 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group 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 group and parent 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 group's and 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 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:

PGM CARPENTRY HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF PGM CARPENTRY HOLDINGS LIMITED
- 5 -
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 their 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 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 parent 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.

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.

PGM CARPENTRY HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF PGM CARPENTRY HOLDINGS LIMITED
- 6 -

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.

 

We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework.  Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.  This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.

 

In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:

 

 

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation.  This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance.  The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Other matters which we are required to address

Comparative information in the financial statements is derived from the company's prior period financial statements which were not audited.

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.

Adam Hubbard BA(Hons) FCA (Senior Statutory Auditor)
For and on behalf of Azets Audit Services
11 March 2024
Chartered Accountants
Statutory Auditor
7 - 8 Britannia Business Park
Comet Way
Southend-On-Sea
Essex
United Kingdom
SS2 6GE
PGM CARPENTRY HOLDINGS LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE PERIOD ENDED 31 MARCH 2023
- 7 -
Period
ended
31 March
2023
Notes
£
Turnover
3
22,441,388
Cost of sales
(15,505,556)
Gross profit
6,935,832
Administrative expenses
(6,016,169)
Other operating income
3,624
Operating profit
4
923,287
Interest receivable and similar income
8
1,014
Interest payable and similar expenses
9
(615,438)
Profit before taxation
308,863
Tax on profit
10
(754,103)
Loss for the financial Period
22
(445,240)
(Loss)/profit for the financial Period is all attributable to the owners of the parent company.
PGM CARPENTRY HOLDINGS LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 31 MARCH 2023
- 8 -
Period
ended
31 March
2023
£
Loss for the Period
(445,240)
Other comprehensive income
-
Total comprehensive income for the Period
(445,240)
Total comprehensive income for the Period is all attributable to the owners of the parent company.
PGM CARPENTRY HOLDINGS LIMITED
GROUP BALANCE SHEET
AS AT
31 MARCH 2023
31 March 2023
- 9 -
2023
Notes
£
£
Fixed assets
Goodwill
11
15,073,159
Tangible assets
12
248,238
15,321,397
Current assets
Debtors
15
1,096,998
Cash at bank and in hand
2,177,788
3,274,786
Creditors: amounts falling due within one year
16
(1,844,020)
Net current assets
1,430,766
Total assets less current liabilities
16,752,163
Creditors: amounts falling due after more than one year
17
(17,139,641)
Provisions for liabilities
Deferred tax liability
19
56,762
(56,762)
Net liabilities
(444,240)
Capital and reserves
Called up share capital
21
1,000
Profit and loss reserves
22
(445,240)
Total equity
(444,240)
The financial statements were approved by the board of directors and authorised for issue on 11 March 2024 and are signed on its behalf by:
11 March 2024
Mr. M Wheeler
Mr. S Monk
Director
Director
Company registration number 13662266 (England and Wales)
PGM CARPENTRY HOLDINGS LIMITED
COMPANY BALANCE SHEET
AS AT 31 MARCH 2023
31 March 2023
- 10 -
2023
Notes
£
£
Fixed assets
Investments
13
20,958,103
Current assets
Debtors
15
1,000
Creditors: amounts falling due within one year
16
(4,468,379)
Net current liabilities
(4,467,379)
Total assets less current liabilities
16,490,724
Creditors: amounts falling due after more than one year
17
(17,139,641)
Net liabilities
(648,917)
Capital and reserves
Called up share capital
21
1,000
Profit and loss reserves
22
(649,917)
Total equity
(648,917)

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s loss for the year was £649,917.

The financial statements were approved by the board of directors and authorised for issue on 11 March 2024 and are signed on its behalf by:
11 March 2024
Mr. M Wheeler
Mr. S Monk
Director
Director
Company registration number 13662266 (England and Wales)
PGM CARPENTRY HOLDINGS LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 31 MARCH 2023
- 11 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 5 October 2021
-
-
-
Period ended 31 March 2023:
Loss and total comprehensive income
-
(445,240)
(445,240)
Issue of share capital
21
1,000
-
1,000
Balance at 31 March 2023
1,000
(445,240)
(444,240)
PGM CARPENTRY HOLDINGS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 31 MARCH 2023
- 12 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 5 October 2021
-
-
-
Period ended 31 March 2023:
Profit and total comprehensive income
-
(649,917)
(649,917)
Issue of share capital
21
1,000
-
1,000
Balance at 31 March 2023
1,000
(649,917)
(648,917)
PGM CARPENTRY HOLDINGS LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED 31 MARCH 2023
- 13 -
2023
Notes
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
23
3,112,672
Income taxes paid
(459,833)
Net cash inflow/(outflow) from operating activities
2,652,839
Investing activities
Purchase of intangible assets
1,266,710
Purchase of tangible fixed assets
(47,589)
Proceeds from disposal of tangible fixed assets
4,814
Interest received
1,014
Net cash generated from/(used in) investing activities
1,224,949
Financing activities
Payment of debentures
(1,700,000)
Net cash used in financing activities
(1,700,000)
Net increase in cash and cash equivalents
2,177,788
Cash and cash equivalents at beginning of Period
-
Cash and cash equivalents at end of Period
2,177,788
PGM CARPENTRY HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2023
- 14 -
1
Accounting policies
Company information

PGM Carpentry Holdings Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is 7 - 8 Britannia Business Park, Comet Way, Southend-On-Sea, Essex, United Kingdom, SS2 6GE.

 

The group consists of PGM Carpentry Holdings Limited and all of its subsidiaries.

1.1
Reporting period

The financial statements are presented for a period over 12 months, being from the date of incorporation of 5th October 2021 to the period end of 31st March 2023. Future financial periods will be for a period of 12 months to 31st March.

1.2
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 £.

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

 

The financial statements do not include PGM Carpentry Holdings own statement of cash flows as no cash transactions were processed during the period.

1.3
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

PGM CARPENTRY HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 15 -
1.4
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company PGM Carpentry Holdings Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 31 March 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

1.5
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group 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.

1.6
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.

1.7
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 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.

1.8
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.

PGM CARPENTRY HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 16 -

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:

Plant and equipment
20% on reducing balance
Fixtures and fittings
33% on cost
Computers
33% on cost
Motor vehicles
25% on reducing balance

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 recognised in the profit and loss account.

1.9
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

1.10
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of 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.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

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.

PGM CARPENTRY HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 17 -
1.11
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.

1.12
Financial instruments

The group 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 group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and 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.

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 group 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.

PGM CARPENTRY HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 18 -
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 group 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.

Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.13
Equity instruments

Equity instruments issued by the group 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 group.

1.14
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 group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

PGM CARPENTRY HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 19 -
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 if, and only if, there is 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.

1.15
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.

1.16
Retirement benefits

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

2
Judgements and key sources of estimation uncertainty

In the application of the group’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
£
Turnover analysed by class of business
PGM Carpentry Contractors Limited
22,441,388
2023
£
Turnover analysed by geographical market
UK
22,441,388
PGM CARPENTRY HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2023
3
Turnover and other revenue
(Continued)
- 20 -
2023
£
Other revenue
Interest income
1,014
4
Operating profit
2023
£
Operating profit for the period is stated after charging/(crediting):
Depreciation of owned tangible fixed assets
95,003
Profit on disposal of tangible fixed assets
(3,186)
Amortisation of intangible assets
2,659,969
5
Auditor's remuneration
2023
Fees payable to the company's auditor and associates:
£
For audit services
Audit of the financial statements of the group and company
1,500
Audit of the financial statements of the company's subsidiaries
12,000
13,500
6
Employees

The average monthly number of persons (including directors) employed by the group and company during the Period was:

Group
Company
2023
2023
Number
Number
Directors
2
2
Administrative staff
63
-
Total
65
2
PGM CARPENTRY HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2023
6
Employees
(Continued)
- 21 -

Their aggregate remuneration comprised:

Group
Company
2023
2023
£
£
Wages and salaries
2,488,477
-
0
Social security costs
137,255
-
Pension costs
24,427
-
0
2,650,159
-
0
7
Directors' remuneration
2023
£
Remuneration for qualifying services
338,659
Company pension contributions to defined contribution schemes
3,963
342,622
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2023
£
Remuneration for qualifying services
170,010
8
Interest receivable and similar income
2023
£
Interest income
Interest on bank deposits
1,014
2023
Investment income includes the following:
£
Interest on financial assets not measured at fair value through profit or loss
1,014
9
Interest payable and similar expenses
2023
£
Interest on financial liabilities measured at amortised cost:
Other interest on financial liabilities
615,438
PGM CARPENTRY HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2023
- 22 -
10
Taxation
2023
£
Current tax
UK corporation tax on profits for the current period
697,341
Deferred tax
Origination and reversal of timing differences
56,762
Total tax charge
754,103

The actual charge for the Period can be reconciled to the expected charge/(credit) for the Period based on the profit or loss and the standard rate of tax as follows:

2023
£
Profit before taxation
308,863
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00%
58,684
Tax effect of expenses that are not deductible in determining taxable profit
128,471
Permanent capital allowances in excess of depreciation
510,792
Deferred tax
56,762
Profit on disposal
(606)
Taxation charge
754,103
11
Intangible fixed assets
Group
Goodwill
£
Cost
At 5 October 2021
-
0
Additions
17,733,128
At 31 March 2023
17,733,128
Amortisation and impairment
At 5 October 2021
-
0
Amortisation charged for the Period
2,659,969
At 31 March 2023
2,659,969
Carrying amount
At 31 March 2023
15,073,159
The company had no intangible fixed assets at 31 March 2023.
PGM CARPENTRY HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2023
- 23 -
12
Tangible fixed assets
Group
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
Cost
At 5 October 2021
-
0
-
0
-
0
-
0
-
0
Additions
-
0
10,000
4,764
32,825
47,589
Business combinations
547,591
-
0
11,659
64,192
623,442
Disposals
-
0
-
0
-
0
(21,687)
(21,687)
At 31 March 2023
547,591
10,000
16,423
75,330
649,344
Depreciation and impairment
At 5 October 2021
-
0
-
0
-
0
-
0
-
0
Depreciation charged in the Period
82,096
1,857
5,345
5,705
95,003
Eliminated in respect of disposals
-
0
-
0
-
0
(20,059)
(20,059)
Transfers
263,412
-
0
4,181
58,569
326,162
At 31 March 2023
345,508
1,857
9,526
44,215
401,106
Carrying amount
At 31 March 2023
202,083
8,143
6,897
31,115
248,238
The company had no tangible fixed assets at 31 March 2023.
13
Fixed asset investments
Group
Company
2023
2023
Notes
£
£
Investments in subsidiaries
14
-
0
20,958,103
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 5 October 2021
-
Additions
20,958,103
At 31 March 2023
20,958,103
Carrying amount
At 31 March 2023
20,958,103
14
Subsidiaries

Details of the company's subsidiaries at 31 March 2023 are as follows:

PGM CARPENTRY HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2023
14
Subsidiaries
(Continued)
- 24 -
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
PGM Carpentry Contractors Limited
7 - 8 Brittania Business Park, Comet Way, Southend on Sea, Essex, SS2 6GE
Ordinary
100.00
The aggregate capital and reserves and the result for the year of the subsidiaries noted above was as follows:
Name of undertaking
Capital and Reserves
Profit/(Loss)
£
£
PGM Carpentry Contractors Limited
6,089,621
1,965,405
15
Debtors
Group
Company
2023
2023
Amounts falling due within one year:
£
£
Trade debtors
1,065,372
-
0
Other debtors
18,621
1,000
Prepayments and accrued income
13,005
-
0
1,096,998
1,000
16
Creditors: amounts falling due within one year
Group
Company
2023
2023
Notes
£
£
Debenture loans
18
1,106,399
1,106,399
Trade creditors
134,769
-
0
Amounts owed to group undertakings
-
0
3,354,576
Corporation tax payable
237,508
-
0
Other taxation and social security
169,187
-
Other creditors
42,005
7,404
Accruals and deferred income
154,152
-
0
1,844,020
4,468,379
17
Creditors: amounts falling due after more than one year
Group
Company
2023
2023
Notes
£
£
Debenture loans
18
17,139,641
17,139,641
PGM CARPENTRY HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2023
17
Creditors: amounts falling due after more than one year
(Continued)
- 25 -
Amounts included above which fall due after five years are as follows:
Payable by instalments
12,801,244
12,801,244
18
Loans and overdrafts
Group
Company
2023
2023
£
£
Debenture loans
18,246,040
18,246,040
Payable within one year
1,106,399
1,106,399
Payable after one year
17,139,641
17,139,641

The long-term loans are secured by fixed charges over 10 years.

A fixed charged is held against all of the groups assets.

19
Deferred taxation

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

Liabilities
2023
Group
£
Accelerated capital allowances
56,762
The company has no deferred tax assets or liabilities.
Group
Company
2023
2023
Movements in the Period:
£
£
Asset at 5 October 2021
-
-
Charge to profit or loss
56,762
-
Liability at 31 March 2023
56,762
-
PGM CARPENTRY HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2023
- 26 -
20
Retirement benefit schemes
2023
Defined contribution schemes
£
Charge to profit or loss in respect of defined contribution schemes
24,427

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

21
Share capital
Group and company
2023
2023
Ordinary share capital
Number
£
Issued and fully paid
Ordinary shares of £1 each
1,000
1,000
22
Profit and loss reserves
Group
Company
2023
2023
£
£
At the beginning of the Period
-
-
Loss for the Period
(445,240)
(649,917)
At the end of the Period
(445,240)
(649,917)
23
Cash generated from/(absorbed by) group operations
2023
£
Loss for the Period after tax
(410,760)
Adjustments for:
Taxation charged
754,103
Finance costs
615,438
Investment income
(1,014)
Gain on disposal of tangible fixed assets
(3,186)
Amortisation and impairment of intangible assets
2,659,969
Depreciation and impairment of tangible fixed assets
95,003
Movements in working capital:
Increase in debtors
(1,096,998)
Increase in creditors
500,117
Cash generated from/(absorbed by) operations
3,112,672
PGM CARPENTRY HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2023
- 27 -
24
Analysis of changes in net debt - group
5 October 2021
Cash flows
31 March 2023
£
£
£
Cash at bank and in hand
-
2,177,788
2,177,788
Borrowings excluding overdrafts
-
(18,246,040)
(18,246,040)
-
(16,068,252)
(16,068,252)
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