Registration number:
for the
Period from 1 July 2022 to
Patrico Limited
Contents
Company Information |
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Balance Sheet |
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Notes to the Financial Statements |
Patrico Limited
Company Information
Directors |
J Herbert S T Pearce G R D Atkinson G P Atkinson |
Company secretary |
S T Pearce |
Registered office |
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Bankers |
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Accountants |
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Patrico Limited
(Registration number: 01724354)
Balance Sheet as at 14 July 2023
Note |
2023 |
2022 |
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Fixed assets |
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Tangible assets |
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Current assets |
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Stocks |
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Debtors |
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Cash at bank and in hand |
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Creditors: Amounts falling due within one year |
( |
( |
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Net current assets |
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Total assets less current liabilities |
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Creditors: Amounts falling due after more than one year |
( |
( |
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Deferred tax liabilities |
(201,769) |
(196,653) |
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Net assets |
|
|
|
Capital and reserves |
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Called up share capital |
4,000 |
3,800 |
|
Share premium reserve |
14,300 |
- |
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Revaluation reserve |
403,218 |
403,218 |
|
Profit and loss account |
2,714,592 |
2,249,774 |
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Shareholders' funds |
3,136,110 |
2,656,792 |
For the financial period ending 14 July 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
Directors' responsibilities:
• |
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• |
The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts. |
These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.
These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime and the option not to file the Profit and Loss Account has been taken.
Approved and authorised by the
......................................... |
Patrico Limited
Notes to the Financial Statements for the Period from 1 July 2022 to 14 July 2023
General information |
The company is a private company limited by share capital, incorporated in England and Wales.
The address of its registered office is:
The principal place of business is:
Northway Lodge
Northway Lane
Tewkesbury
GL20 8JG
Accounting policies |
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A smaller entities - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006 (as applicable to companies subject to the small companies' regime).
Basis of preparation
These financial statements have been prepared using the historical cost convention except for, where disclosed in these accounting policies, certain items that are shown at fair value.
The presentational currency of the financial statements is Pounds Sterling, being the functional currency of the primary economic environment in which the company operates. Monetary amounts in these financial statements are rounded to the nearest Pound.
Going concern
After reviewing the company's forecasts and projections, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The company therefore continues to adopt the going concern basis in preparing its financial statements.
Critical accounting judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amounts 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
Judgements
No significant judgements have been made by management in preparing these financial statements. |
Patrico Limited
Notes to the Financial Statements for the Period from 1 July 2022 to 14 July 2023
2 |
Accounting policies (continued) |
Revenue recognition
Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts and after eliminating sales within the company.
The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.
Tax
The tax expense for the period comprises current and deferred tax. Tax is recognised in the profit and loss account, except that a charge attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
The current corporation tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.
Deferred tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements and on unused tax losses or tax credits in the company. Deferred income tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.
The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.
Tangible assets
Tangible assets, with the exception of land and buildings, are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
Land and buildings are stated at their revalued amount, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
Depreciation
Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:
Asset class |
Depreciation method and rate |
Freehold land |
Nil |
Freehold buildings |
2% straight line |
Plant and machinery |
33.3% written down value |
Fixtures, fittings, computer & other electronic equipment |
15% of written down value |
Motor vehicles |
25% of written down value |
Trade debtors
Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.
Trade debtors are recognised initially at the transaction price. All trade debtors are repayable within one year and hence are included at the undiscounted cost of cash expected to be received. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the debtors.
Patrico Limited
Notes to the Financial Statements for the Period from 1 July 2022 to 14 July 2023
2 |
Accounting policies (continued) |
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out method.
The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are 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.
Trade creditors
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Trade creditors are recognised initially at the transaction price and all are repayable within one year and hence are included at the undiscounted amount of cash expected to be paid.
Borrowings
Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.
Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.
Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.
Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the Balance Sheet as a finance lease obligation.
Lease payments are apportioned between finance costs in the Profit and Loss Account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.
Share capital
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.
Dividends
Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
Patrico Limited
Notes to the Financial Statements for the Period from 1 July 2022 to 14 July 2023
2 |
Accounting policies (continued) |
Financial instruments
Classification
Financial instruments are classified and accounted for according to the substance of the contractual arrangement, as financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. Where shares are issued, any component that creates a financial liability of the company is presented as a liability on the balance sheet. The corresponding dividends relating to the liability component are charged as interest expenses in the profit and loss account.
Recognition and measurement
All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.
Impairment
Assets, other than those measured at fair value, are assessed for indicators of impairment at each balance sheet date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss as described below.
A non financial asset is impaired where there is objective evidence that, as a result of one or more events that occurred after initial recognition, the estimated recoverable value of the asset has been reduced. The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use.
The recoverable amount of goodwill is derived from measurement of the present value of the future cash flows of the cash-generating units ('CGUs') of which the goodwill is a part. Any impairment loss in respect of a CGU is allocated first to the goodwill attached to that CGU, and then to other assets within that CGU on a pro-rata basis.
Where indicators exist for a decrease in impairment loss, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised. Where a reversal of impairment occurs in respect of a CGU, the reversal is applied first to the assets (other than goodwill) of the CGU on a pro-rata basis and then to any goodwill allocated to that CGU.
For financial assets carried at amortised cost, the amount of an impairment is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the financial asset’s original effective interest rate.
For financial assets carried at cost less impairment, the impairment loss is the difference between the asset’s carrying amount and the best estimate of the amount that would be received for the asset if it were to be sold at the reporting date.
Where indicators exist for a decrease in impairment loss, and the decrease can be related objectively to an event occurring after the impairment was recognised, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired financial asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised.
Patrico Limited
Notes to the Financial Statements for the Period from 1 July 2022 to 14 July 2023
Staff numbers |
The average number of persons employed by the company (including directors) during the period, was
Tangible assets |
Land and buildings |
Plant and machinery |
Fixtures and fittings |
Motor vehicles |
Total |
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Cost or valuation |
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At 1 July 2022 |
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Additions |
- |
- |
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Disposals |
- |
- |
- |
( |
( |
At 14 July 2023 |
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Depreciation |
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At 1 July 2022 |
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Charge for the year |
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Eliminated on disposal |
- |
- |
- |
( |
( |
At 14 July 2023 |
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Carrying amount |
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At 14 July 2023 |
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At 30 June 2022 |
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Leased assets
Included in the net book value of tangible fixed assets is £182,349 (2022 - £130,225) in respect of assets held under finance leases and similar hire purchase contracts. Depreciation for the year on these assets was £30,197 (2022 - £42,488).
Revaluations
The freehold land and buildings class of fixed assets was revalued on 14 August 2015 to £1,700,000 by Bruton Knowles who is external to the company. The basis of this valuation was market value. This class of assets has a current balance sheet value of £1,482,984 (2022 - £1,511,000) and a carrying amount at historical cost of £1,450,831 (2022 - £1,450,831). The depreciation on this historical cost is £360,062 (2022 - £333,440).
The gross amount of non-depreciable assets included in tangible fixed assets is £350,000 (2022 - £350,000).
Patrico Limited
Notes to the Financial Statements for the Period from 1 July 2022 to 14 July 2023
Debtors |
14 July 2023 |
30 June 2022 |
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Trade debtors |
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Other debtors |
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Prepayments |
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Creditors |
Note |
14 July 2023 |
30 June 2022 |
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Due within one year |
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Loans and borrowings |
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Trade creditors |
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Social security and other taxes |
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Other creditors |
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Accrued expenses |
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Corporation tax liability |
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Note |
2023 |
2022 |
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Due after one year |
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Loans and borrowings |
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Obligations under leases and hire purchase contracts |
14 July 2023 |
30 June 2022 |
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Not later than one year |
28,779 |
55,862 |
Later than one year and not later than five years |
62,693 |
37,688 |
91,472 |
93,550 |
The amount of non-cancellable operating lease payments recognised as an expense during the year was £1,203 (2022 - £4,727).
Patrico Limited
Notes to the Financial Statements for the Period from 1 July 2022 to 14 July 2023
Loans and borrowings |
2023 |
2022 |
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Current loans and borrowings |
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Bank borrowings |
- |
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HP and finance lease liabilities |
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Other borrowings |
- |
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2023 |
2022 |
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Non-current loans and borrowings |
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Bank borrowings |
- |
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HP and finance lease liabilities |
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Share capital |
Allotted, called up and fully paid shares
14 July 2023 |
30 June 2022 |
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No. |
£ |
No. |
£ |
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1,249 |
|
2,450 |
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|
50 |
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50 |
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|
700 |
|
700 |
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1,801 |
|
600 |
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|
200 |
- |
- |
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On 19 May 2023, 1,201 Class C shares of £1 each were redesignated as Class D shares on £1 each.
On 14 July 2023 the company issues 100 Class E shares of £1 at par.
Also on 14 July 2023 share options were excercised for 100 Class E shares of £1 as detailed in note 13.
Patrico Limited
Notes to the Financial Statements for the Period from 1 July 2022 to 14 July 2023
Share-based payments |
Scheme details and movements
Patrico Limited operated an equity-settled share-based remuneration scheme for employees which are Enterprise Management Incentive ("EMI") schemes. The options were granted with a maximum term of 10 years, the only condition being that the employee remains in the Company's employment. The options granted in June 2016 were to be settled by way of issues of E Ordinary shares.
The options had no vesting period, but could not be exercised until the company was listed on an exchange or the shares in the Company were sold such that control of the company changes. On 14 July 2023, the company's shares were sold and control of the company changed resulting in the options being exercised.
The fair value of the equity instruments granted was determined using the Black Scholes Model. This model was selected as it is an industry standard model. The share-remuneration expense for the year is not considered to be material and has not been recognised.
The movements in the number of share options during the period were as follows:
2023 |
2022 |
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Number |
Number |
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Outstanding, start of period |
100 |
100 |
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Exercised during the period |
(100) |
- |
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Outstanding, end of period |
- |
100 |
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The movements in the weighted average exercise price of share options during the period were as follows:
2023 |
2022 |
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£ |
£ |
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Outstanding, start of period |
144 |
144 |
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Outstanding, end of period |
- |
144 |
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Shares issued as bonus
On 14 July 2023 100 E shares with a value of £163,840 were issued at there nominal value of £1 each.
Effect of share-based payments on profit or loss and financial position
The total expense recognised in the profit or loss for the period was £163,740 (2022 - £Nil).
Control |
Prior to 14 July 2023 the company was controlled by R J Lanchbury.
On 14 July 2023 100% of the company's share capital was acquired by Atkinson Equipment Group Limited, a company registered in England and Wales, which became the parent.