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Registered number: 02587185










PINELOG LIMITED










ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 29 OCTOBER 2023

 
PINELOG LIMITED
 
 
COMPANY INFORMATION


Directors
Nicholas M H Grayson BSc (Hons) - Executive Chairman 
Keith C Cooper (resigned 16 June 2023)
Lyndsey F Grayson BA (Hons) 
Roger Langham BA (Hons), B Arch, RIBA 
Mark Randall BA (Hons) FCA 




Company secretary
Mark Randall BA (Hons) FCA



Registered number
02587185



Registered office
Darwin Forest Country Park
Darley Moor

Two Dales

Matlock

Derbyshire

DE4 5PL




Independent auditors
Shorts
Chartered Accountants & Statutory Auditor

2 Ashgate Road

Chesterfield

Derbyshire

S40 4AA




Bankers
Lloyds Bank plc
116 Wellington Street

Leeds

West Yorkshire

LS1 4LT




Solicitors
Knights plc
Commercial House

14 Commercial Street

Sheffield

South Yorkshire

S1 2AT





 
PINELOG LIMITED
 

CONTENTS



Page
Strategic Report
 
1
Directors' Report
 
2 - 3
Independent Auditors' Report
 
4 - 7
Statement of Income and Retained Earnings
 
8
Balance Sheet
 
9
Statement of Changes in Equity
 
10
Notes to the Financial Statements
 
11 - 23


 
PINELOG LIMITED
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 29 OCTOBER 2023

Introduction
 
The directors present their strategic report on the Company for the year ended 29 October 2023.

Business review
 
The results for the Company are set out in the profit and loss account on page 8 and they show a profit before tax of £57,000 (2022: loss before tax of £620,000) for the year and turnover of £4,042,000 (2022:£2,187,000). 
Pinelog continues to actively seek to recruit skilled and semi-skilled trades to supplement its existing team in order to increase production capacity in its new home. This will allow it to both cater for the needs of external customers and also provide updated replacement Pinelodges for its sister company’s holiday parks.

Principal risks and uncertainties
 
The key business risks affecting the Company in the post COVID-19 pandemic world are the Cost of Living Crisis and the ongoing challenges in recruitment and the procurement of materials. Price inflation has been dramatic for certain commodities, and we have been subjected to large increases in energy costs. 
General UK economic conditions are always of concern as they impact upon the markets for timber leisure buildings, be they for use as second homes or short term holiday destinations. 
The long-term effect of increases in the National Living Wage continues to be a concern to the business.

Financial key performance indicators
 
A summary of the key financial performance indicators for the year to 29 October 2023 is as follows: 
- Turnover increased 85% to £4m.
- Operating profit increased to £54,000.
- EBITDA increased to £152,000 from a loss of £576,000 in the previous year.

 

This report was approved by the board on 11 March 2024 and signed on its behalf.



................................................
Mark Randall
Company Secretary

Page 1

 
PINELOG LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 29 OCTOBER 2023

The directors present their report and the financial statements for the year ended 29 October 2023.

Principal activity

The Company's principal activity is the design, manufacture, installation and sale of timber buildings, including a proportion for a fellow group company.

Results and dividends

The profit for the year, after taxation, amounted to £45,000 (2022 - loss of £512,000).

No dividends were proposed or paid in the current year (2022 - nil).

Directors

The directors who served during the year were:

Nicholas M H Grayson BSc (Hons) - Executive Chairman 
Keith C Cooper (resigned 16 June 2023)
Lyndsey F Grayson BA (Hons) 
Roger Langham BA (Hons), B Arch, RIBA 
Mark Randall BA (Hons) FCA 

Directors' responsibilities statement

The directors are responsible for preparing the Strategic Report, the Directors' 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period.

 In preparing these financial statements, the directors are required to:


select suitable accounting policies for the Company's financial statements and then apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and to enable them to ensure that the financial statements comply with the Companies Act 2006They 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.

Page 2

 
PINELOG LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 29 OCTOBER 2023

Qualifying third party indemnity provisions

The directors have been granted a qualifying third party indemnity provision under Section 234 of the Companies Act 2016. This indemnity does not provide cover in the event of a director acting fraudulently.

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

Auditors

The auditorsShortswill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 11 March 2024 and signed on its behalf.
 




................................................
Mark Randall
Company Secretary

Page 3

 
PINELOG LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PINELOG LIMITED
 

Opinion


We have audited the financial statements of (the 'Company') for the year ended 29 October 2023, which comprise the Statement of Income and Retained Earnings, the Balance Sheet, the Statement of Changes in Equity and the related notes, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In our opinion the financial statements:


give a true and fair view of the state of the Company's affairs as at 29 October 2023 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


Basis for opinion


We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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.


Page 4

 
PINELOG LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PINELOG LIMITED (CONTINUED)


Other information


The other information comprises the information included in the Annual Report other than the financial statements and  our Auditors' 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.


Opinion on other matters prescribed by the Companies Act 2006
 

In our opinion, based on the work undertaken in the course of the audit:


the information given in the Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.


Matters on which we are required to report by exception
 

In the light of the knowledge and understanding of the 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:


adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


Responsibilities of directors
 

As explained more fully in the Directors' Responsibilities Statement set out on page 2, 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.


Page 5

 
PINELOG LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PINELOG LIMITED (CONTINUED)


Auditors' responsibilities for the audit of the financial statements
 

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' 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.


Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
through discussions with the directors and other management and from our commercial knowledge and experience of the sectors that the company operates in, we identified the laws and regulations applicable to the Company; and
focusing on the specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, we assessed the extent of compliance with those laws and regulations identified above through making enquiries of management and inspecting relevant correspondence.

We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

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

performed analytical procedures to identify any unusual or unexpected relationships;
considered journal entries to identify unusual transactions;
assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and
investigated the rationale behind significant or unusual transactions.

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

agreeing financial statement disclosures to underlying supporting documentation;
reading the minutes of meetings of those charged with governance;
enquiring of management as to actual and potential litigation and claims; and
reviewing any correspondance with HMRC, relevant regulators and the Company's legal advisors.

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.
Page 6

 
PINELOG LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PINELOG LIMITED (CONTINUED)


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 for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' Report.


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 2006Our 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 Auditors' 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.





Andrew Irvine (Senior Statutory Auditor)
  
for and on behalf of
Shorts
 
Chartered Accountants
Statutory Auditor
  
2 Ashgate Road
Chesterfield
Derbyshire
S40 4AA

11 March 2024
Page 7

 
PINELOG LIMITED
 
 
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 29 OCTOBER 2023

2023
2022
Note
£000
£000

  

Turnover
  
4,042
2,187

Change in stocks of finished goods and work in progress
  
53
(10)

Raw materials and consumables
  
(1,707)
(1,060)

Other external charges
  
(885)
(584)

Staff costs
  
(1,414)
(1,112)

Depreciation
  
(98)
(41)

Profit on disposal of tangible fixed assets
  
63
3

Operating profit/(loss)
  
54
(617)

Interest receivable / (payable)
 7 
3
(3)

Profit/(loss) before tax
  
57
(620)

Tax on profit/(loss)
 8 
(12)
108

Profit/(loss) after tax
  
45
(512)

  

  

Retained earnings at the beginning of the year
  
(896)
(384)

Profit/(loss) for the year
  
45
(512)

Retained earnings at the end of the year
  
(851)
(896)
The notes on pages 11 to 23 form part of these financial statements.

Page 8

 
PINELOG LIMITED
REGISTERED NUMBER: 02587185

BALANCE SHEET
AS AT 29 OCTOBER 2023

29 October
30 October
2023
2022
Note
£000
£000

Fixed assets
  

Tangible assets
 9 
905
999

Investments
 10 
-
-

  
905
999

Current assets
  

Stocks
 11 
523
510

Debtors: amounts falling due within one year
 12 
745
751

Cash at bank and in hand
  
393
322

  
1,661
1,583

Creditors: amounts falling due within one year
 13 
(1,089)
(1,144)

Net current assets
  
 
 
572
 
 
439

Total assets less current liabilities
  
1,477
1,438

Provisions for liabilities
  

Deferred tax
 15 
(100)
(106)

Net assets
  
1,377
1,332


Capital and reserves
  

Called up share capital 
 14 
2,195
2,195

Share premium account
  
33
33

Profit and loss account
  
(851)
(896)

  
1,377
1,332


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 11 March 2024.




................................................
Nicholas M H Grayson
................................................
Mark Randall
Executive Chairman
Director

The notes on pages 11 to 23 form part of these financial statements.

Page 9

 
PINELOG LIMITED
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 29 OCTOBER 2023


Called up share capital
Share premium account
Profit and loss account
Total equity

£000
£000
£000
£000


At 1 November 2021
1,695
33
(384)
1,344



Loss for the year
-
-
(512)
(512)


Contributions by and distributions to owners

Shares issued during the period
500
-
-
500



At 31 October 2022
2,195
33
(896)
1,332



Profit for the year
-
-
45
45


At 29 October 2023
2,195
33
(851)
1,377


The notes on pages 11 to 23 form part of these financial statements.

Page 10

 
PINELOG LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 29 OCTOBER 2023

1.


General information

Pinelog Limited is a company limited by shares, incorporated in England and Wales. Its registered office is Darwin Forest Country Park, Darley Moor, Two Dales, Matlock, Derbyshire, DE4 5PL and its registered number is 02587185.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the Company's accounting policies (see note 3).

The financial statements are presented in Pounds Sterling and have been rounded to thousands.

The following principal accounting policies have been applied:

 
2.2

Financial Reporting Standard 102 - reduced disclosure exemptions

The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
the requirements of Section 7 Statement of Cash Flows;
the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
the requirements of Section 33 Related Party Disclosures paragraph 33.7.

This information is included in the consolidated financial statements of Pinelog Group Limited as at 29 October 2023 and these financial statements may be obtained from the registered office.

 
2.3

Going concern

The directors have carefully considered the likely effect of the war in Europe and the Cost of Living Crisis on the Company’s future financial performance and have prepared financial projections thereon. As a result, the directors have concluded that the Company will have sufficient working capital to settle its’ liabilities as they fall due for a period of at least 12 months from the date of approval of these financial statements and on this basis it is therefore appropriate that they are prepared on a going concern basis.

Page 11

 
PINELOG LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 29 OCTOBER 2023

2.Accounting policies (continued)

 
2.4

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

 
2.5

Revenue recognition

Turnover, which excludes value-added tax and trade discounts, represents the invoiced value of goods and services supplied. Turnover on long-term contracts represents total costs incurred (including an appropriate proportion of production overheads), plus attributable profits. A prudent estimate of the profit attributable to work completed is recognised once the outcome of the contracts can be determined with reasonable certainty. Provision is made for losses on long-term contracts as soon as such losses become apparent.

Turnover is recognised to the extent that it is probable that the economic benefits will flow to the Company and the turnover can be reliably measured. Turnover is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before turnover is recognised:

Sale of goods

Turnover from the sale of goods is recognised when all of the following conditions are satisfied:
the Company has transferred the significant risks and rewards of ownership to the buyer;
the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of turnover can be measured reliably;
it is probable that the Company will receive the consideration due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.

 
2.6

Operating leases: the Company as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

Page 12

 
PINELOG LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 29 OCTOBER 2023

2.Accounting policies (continued)

 
2.7

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds.

 
2.8

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

 
2.9

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Page 13

 
PINELOG LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 29 OCTOBER 2023

2.Accounting policies (continued)


2.9
Tangible fixed assets (continued)

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method (except where stated).

Depreciation is provided on the following basis:

Rental Pinelodge
-
5.2% (reducing balance method)
Other rental assets and display buildings
-
10%
Plant, equipment and tools
-
range of 10% to 33%
Motor vehicles
-
25%
Fixtures and fittings
-
range of 10% to 33%
Short leasehold land and buildings
-
range of 5% to 10%

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.10

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

 
2.11

Stocks and work in progress

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

Short-term contract work in progress is valued at cost less any provisions for foreseeable losses. Cost comprises direct expenditure together with an appropriate proportion of production overheads. Progress payments certified and receivable by the year end are deducted from work in progress balances; where progress payments exceed work in progress balances the net amount is included in current liabilities as payments on account.
Long-term contract balances are included in the balance sheet at the value of turnover less the value of progress payments certified and receivable. Where turnover exceeds progress payments the net balance is included in debtors as amounts recoverable on contracts; where progress payments exceed turnover the net balance is included in current liabilities as payments on account.

 
2.12

Financial instruments

The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.
Page 14

 
PINELOG LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 29 OCTOBER 2023

2.Accounting policies (continued)


2.12
Financial instruments (continued)


Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or in case of an out-right short-term loan that is not at market rate, the financial asset or liability is measured, initially at the present value of future cash flows discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost, unless it qualifies as a loan from a director in the case of a small company, or a public benefit entity concessionary loan.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of Income and Retained Earnings.

For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.

For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the Company would receive for the asset if it were to be sold at the balance sheet date.

Financial assets and liabilities are offset and the net amount reported in the Balance Sheet when there is an 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.

 
2.13

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.14

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
2.15

Holiday pay accrual

A liability is recognised to the extent of any unused holiday pay entitlement which is accrued at the balance sheet date and carried forward to future periods. This is measured at the undiscounted salary cost of the future holiday entitlement so accrued at the balance sheet date.

Page 15

 
PINELOG LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 29 OCTOBER 2023

3.


Judgements in applying accounting policies and key sources of estimation uncertainty

The key judgements and sources of estimation are:
The useful economic lives and residual values of tangible fixed assets, which have been calculated based on their experience of the industry.
At each reporting date, assets held as stock are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.
Revenue from construction contracts is recognised so as to ensure that an appropriate level of profit is recognised based on the stage of completion of the contract. Profit is only recognised once a final forecast profit on a contract can be reliably estimated. Where a contract is expected to be loss making, that loss is recognised in full. Key assumptions are made regarding the stage of completion, future costs to complete and the collectability of billings on construction contracts.


4.


Auditors' remuneration

During the year, the Company obtained the following services from the Company's auditors:


2023
2022
£000
£000



Fees payable to the Company's auditors for the audit of the Company's financial statements
13
11

The Company has taken advantage of the exemption not to disclose amounts paid for non-audit services as these are disclosed in the consolidated accounts of the parent Company.

Page 16

 
PINELOG LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 29 OCTOBER 2023

5.


Employees

Staff costs, including directors' remuneration, were as follows:


2023
2022
£000
£000

Wages and salaries
1,241
972

Social security costs
133
105

Cost of defined contribution pension scheme
40
35

1,414
1,112


The average number of employees, including the directors, during the year was as follows:


        2023
        2022
            No.
            No.







Sales
2
1



Production
28
23



Administration
11
12

41
36


6.


Directors' remuneration

2023
2022
£000
£000

Directors' emoluments
99
145

Company contributions to defined contribution pension schemes
6
9

105
154


During the year retirement benefits were accruing to 2 directors (2022 - 2) in respect of defined contribution pension schemes.

The Company has been charged £45,000 (2022: £43,000) by Pinelog Group Limited which includes amounts in respect of the services of Mr N M H Grayson and Mr M Randall.

Page 17

 
PINELOG LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 29 OCTOBER 2023

7.


Interest receivable / (payable)

2023
2022
£000
£000


Interest on loans to/from group undertakings
3
(3)


8.


Tax


2023
2022
£000
£000

Corporation tax


Current tax on profits/(losses) for the year
19
(221)

Adjustments in respect of previous periods
(1)
-

Total current tax
18
(221)

Deferred tax


Origination and reversal of timing differences
(6)
113

Taxation on profit
 
12
 
(108)

Factors affecting tax charge for the year

The tax assessed for the year is lower than (2022 - lower than) the standard rate of corporation tax in the UK of 22.5% (2022 -19%). The differences are explained below:

2023
2022
£000
£000


Profit/(loss) before tax
57
(620)


Profit/(loss) multiplied by standard rate of corporation tax in the UK of 22.5% (2022 - 19%)
13
(118)

Effects of:


Expenses not deductible for tax purposes
-
6

Adjustments to tax charge in respect of prior periods
(1)
-

Other differences leading to an increase in the tax charge
-
2

Change in rate of tax for deferred tax
-
2

Total tax charge/(credit) for the year
12
(108)

Page 18

 
PINELOG LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 29 OCTOBER 2023

9.


Tangible fixed assets







Short-term leasehold property
Rental assets
Plant and equipment
Total

£000
£000
£000
£000



Cost


At 31 October 2022
898
179
440
1,517


Additions
57
-
41
98


Disposals
-
(179)
-
(179)



At 29 October 2023

955
-
481
1,436



Depreciation


At 31 October 2022
114
82
322
518


Charge for the year on owned assets
59
3
36
98


Disposals
-
(85)
-
(85)



At 29 October 2023

173
-
358
531



Net book value



At 29 October 2023
782
-
123
905



At 30 October 2022
784
97
118
999

The plant and machinery category includes plant and machinery, small tools, fixtures and fittings,
motor vehicles, computer and office equipment and display buildings.

Page 19

 
PINELOG LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 29 OCTOBER 2023

10.


Fixed asset investments








Total

£000



Cost and net book value


At 31 October 2022 and 29 October 2023
-

Subsidiary undertakings
Details of subsidiary undertakings, all of which are incorporated in Great Britain and registered in England and Wales, are as follows:

Class of Shares
Holding
Principal activity

Pinelog Rentals Limited

Ordinary £1

100%

Dormant
 
Pinelodge Limited

Ordinary £1

100%

Dormant
 
Plus Design and Build Limited

Ordinary £1

100%

Dormant
 

All subsidiaries have the same registered office address as Pinelog Limited.


11.


Stocks

29 October
30 October
2023
2022
£000
£000

Raw materials and consumables
245
278

Work in progress (goods to be sold)
278
232

523
510




Page 20

 
PINELOG LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 29 OCTOBER 2023

12.


Debtors

29 October
30 October
2023
2022
£000
£000

Trade debtors
168
395

Amounts owed by group undertakings
451
225

Other debtors
91
50

Prepayments and accrued income
35
81

745
751



13.


Creditors: Amounts falling due within one year

29 October
30 October
2023
2022
£000
£000

Payments received on account
27
64

Trade creditors
321
320

Amounts owed to group undertakings
257
275

Corporation tax
32
38

Other taxation and social security
34
31

Other creditors
121
73

Accruals and deferred income
297
343

1,089
1,144



14.


Share capital

29 October
30 October
2023
2022
£000
£000
Allotted, called up and fully paid



2,194,960 (2022 - 2,194,960) Ordinary shares of £1.00 each
2,195
2,195


Page 21

 
PINELOG LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 29 OCTOBER 2023

15.


Deferred taxation






2023
2022


£000

£000






At beginning of year
(106)
7


Charged to profit or loss
6
(113)



At end of year
(100)
(106)

The provision for deferred taxation is made up as follows:

29 October
30 October
2023
2022
£000
£000


Accelerated capital allowances
(109)
(110)

Short term timing differences
9
4

(100)
(106)


16.


Contingent liabilities

The Company has given guarantees in respect of bank borrowings of certain group undertakings. At29October 2023 borrowings covered by these guarantees amounted to £NIL (2022: £NIL). At that date the net bank balances of all group undertakings within the Group banking arrangement amounted to net cash of £6,944,000 (2022: net cash of £4,509,000). In the opinion of the directors no loss will arise in connection with these guarantees.
The Company has entered into a group VAT registration. At 29 October 2023 the Company's contingent liability under this arrangement in respect of VAT liabilities amounted to £nil (2022: £nil). In the opinion of the directors no loss will arise in connection with this matter.


17.


Pension commitments

The Company is a member of the Pinelog Group - Legal & General Stakeholder scheme, with assets of the scheme held seperately to those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company and these amounted to £40,000 (2022:£35,000). Contributions totalling £33,000 (2022: £5,000) were payable to the fund at the balance sheet date and are included in accruals.

Page 22

 
PINELOG LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 29 OCTOBER 2023

18.


Commitments under operating leases

At 29 October 2023 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

29 October
30 October
2023
2022
£000
£000


Not later than 1 year
140
140

Later than 1 year and not later than 5 years
560
560

Later than 5 years
1,120
1,260

1,820
1,960


19.


Controlling party

The directors regard Pinelog Group Limited, a company incorporated in Great Britain and registered in England and Wales, as the ultimate parent company and ultimate controlling party. Copies of the parent's consolidated financial statements may be obtained from the registered office of Pinelog Limited.
Group financial statements have not been prepared for Pinelog Limited, in accordance with Section 400 of the Companies Act 2006, since the Company is a wholly owned subsidiary of Pinelog Group Limited.

Page 23