Company registration number 05835266 (England and Wales)
PLASSON U.K. LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
PLASSON U.K. LTD
COMPANY INFORMATION
Directors
Mrs N Dagan
Mr O Henkin
Mr G Wexsler
Mr A Ram
(Appointed 7 March 2024)
Company number
05835266
Registered office
Hampden House
76 Durham Road
London
SW20 0TL
Auditor
Hampden
Hampden House
76 Durham Road
London
SW20 0TL
Business address
Plasson House
Albert Drive
Burgess Hill
West Sussex
United Kingdom
RH15 9TN
PLASSON U.K. LTD
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Profit and loss account
8
Statement of comprehensive income
9
Balance sheet
10
Statement of changes in equity
11
Notes to the financial statements
12 - 25
PLASSON U.K. LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

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

Strategy and review

The company promotes the core values and ethics of the wider Plasson group. Innovation continues to be at the core of the world wide operation. With 60 years of experience in product development, we constantly aim to develop added value and stand at the forefront of technology in the development of innovative products and solutions to suit the ever evolving needs of our customers.

 

The company's business model is to maintain a healthy trade within its sector and managing controllable costs in line with turnover. The ability to continue to trade without significant debt with banks, shareholders or other credit facilities is also important.

 

The company's principal activity is focused on sales activity, as importer and distributor of plastic pipe fittings for PE Water pipes, having the most extensive range of fittings in the UK market place.

 

Plasson UK Ltd continues to focus on consolidating its market position and provide class leading customer service in its traditionally strong sectors and growing in the areas identified previously as potential opportunities and growth engines.

 

The company continues to thrive on strong relationships with customers and suppliers, which are key to delivering the high levels of service and products the company has become known for.

 

This market focused approach, bringing the highest quality products, innovation and exceptional customer service to the market underpins the brand as market leader and ensured a strong performance in 2023.

 

An important part of the group's strategy is to expand its business activity in the UK. The company is supporting the product development programme pursued by Plasson Ltd. In addition, the company continues to explore opportunities from outside the group, with synergy to its existing operation. The facilities at the company's trading business address is capable of expansion and the IT and administration infrastructure will also easily cope with an increase in business.

 

Key performance indicators

The reported figures are for the UK operation, as the company does not need to prepare consolidated accounts. As shown in the company profit and loss account, turnover grew by 8.9% on the prior year to £19.4m (£17.8 in 2022). Gross profit increased, reflected in a slight change of product mix, which is in line with the companies long term plans and goals. Operating profit also increased as a result of continued good cost control.

 

2023          2022

£'000          £'000

Turnover             19,404        17,817

Gross Profit             5,658        4,845

GP %                 29.2%        27.7%

Operating Profit             2,395        1,885

OP %                 12.3%        10.6%

 

PLASSON U.K. LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
Principal risks and uncertainties

The company considers the principle risks to be the continued caution in the markets it operates in, particularly uncertainties in the housing markets and infrastructure with forecasts continuing to suggest construction output will decrease further than 2023 levels. This in turn leads to instability in the distribution and merchant network.

 

Credit Risk: Goods are generally supplied to customers on normal commercial credit terms. Credit risk is mitigated by the maintaining a very active credit control, exposure is spread over a wide number of customers and there are robust procedures in place for vetting any potential new customers.

 

The company recognises the importance of employees. Through identifying the key drivers early, staff retention is exceptional and there is an active plan for succession planning.

 

The company is aware of the risk of change in legislation and keep a close watch on the business related legislation We are also crucially aware of the product related legislation and are in regular contact with the various regulation organisations in the UK as well as maintaining involvement with the standardisation procedure in the UK to support the company's involvement with European legislation.

 

This market focused approach, bringing the highest quality products, innovation and exceptional customer service to the market underpins the brand as market leader and ensured a strong performance in 2023

 

On behalf of the board

Mr A Ram
Director
3 April 2024
PLASSON U.K. LTD
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -

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

Principal activities

The principal activity of the company continued to be that of selling and distribution of pipe fittings and auxiliary products.

Results and dividends

The results for the year are set out on page 8.

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

Directors

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

Mr O Borovsky
(Resigned 7 March 2024)
Mrs N Dagan
Mr O Henkin
Mr G Wexsler
Mr A Ram
(Appointed 7 March 2024)
Financial instruments

The company has a normal level of response to price, credit, liquidity and cash flow risks arising from trading activities which are largely conducted in sterling. The company does not enter into any formally designated hedging arrangements. The company's operations are financed by a mixture of equity funding and group company short term borrowings. Working capital requirements are met out of operational cash flows. In addition, various financial instruments such as trade debtors and trade creditors arise directly from the company's operations.

Research and development

The company's future strategy and developments are shown in the strategic report.

Auditor

The auditor, Hampden, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Statement of directors' responsibilities

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

PLASSON U.K. LTD
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -
Statement of disclosure to auditor

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

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

On behalf of the board
Mr A Ram
Director
3 April 2024
PLASSON U.K. LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF PLASSON U.K. LTD
- 5 -
Opinion

We have audited the financial statements of Plasson U.K. Ltd (the 'company') for the year ended 31 December 2023 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

PLASSON U.K. LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF PLASSON U.K. LTD
- 6 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

 

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

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

 

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

The extent to which the audit was considered capable of detecting irregularities including fraud

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;

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

PLASSON U.K. LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF PLASSON U.K. LTD
- 7 -

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

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

 

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

 

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

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

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Mr Inderjith Sivlal
Senior Statutory Auditor
For and on behalf of Hampden
3 April 2024
Chartered Accountants
Statutory Auditor
Hampden House
76 Durham Road
London
SW20 0TL
PLASSON U.K. LTD
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
2023
2022
Notes
£
£
Turnover
3
19,403,833
17,817,573
Cost of sales
(13,746,167)
(12,972,655)
Gross profit
5,657,666
4,844,918
Administrative expenses
(3,402,516)
(3,093,892)
Other operating income
139,449
134,190
Operating profit
4
2,394,599
1,885,216
Interest receivable and similar income
7
86,029
5,043,657
Profit before taxation
2,480,628
6,928,873
Tax on profit
8
(630,589)
(380,878)
Profit for the financial year
1,850,039
6,547,995

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

PLASSON U.K. LTD
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
2023
2022
£
£
Profit for the year
1,850,039
6,547,995
Other comprehensive income
-
-
Total comprehensive income for the year
1,850,039
6,547,995
PLASSON U.K. LTD
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
10
2,308,146
2,398,741
Investments
11
17,173,159
16,610,159
19,481,305
19,008,900
Current assets
Stocks
13
4,486,257
3,406,336
Debtors
14
1,723,927
1,759,677
Cash at bank and in hand
1,963,769
2,837,553
8,173,953
8,003,566
Creditors: amounts falling due within one year
15
(1,442,550)
(2,641,577)
Net current assets
6,731,403
5,361,989
Total assets less current liabilities
26,212,708
24,370,889
Provisions for liabilities
Deferred tax liability
16
161,713
169,933
(161,713)
(169,933)
Net assets
26,050,995
24,200,956
Capital and reserves
Called up share capital
18
15,003,073
15,003,073
Revaluation reserve
722,847
722,847
Profit and loss reserves
10,325,075
8,475,036
Total equity
26,050,995
24,200,956

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.true

The financial statements were approved by the board of directors and authorised for issue on 3 April 2024 and are signed on its behalf by:
Mr A Ram
Director
Company registration number 05835266 (England and Wales)
PLASSON U.K. LTD
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
Share capital
Revaluation reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 January 2022
15,003,073
722,847
7,955,157
23,681,077
Year ended 31 December 2022:
Profit and total comprehensive income
-
-
6,547,995
6,547,995
Dividends
9
-
-
(6,028,116)
(6,028,116)
Balance at 31 December 2022
15,003,073
722,847
8,475,036
24,200,956
Year ended 31 December 2023:
Profit and total comprehensive income
-
-
1,850,039
1,850,039
Balance at 31 December 2023
15,003,073
722,847
10,325,075
26,050,995
PLASSON U.K. LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 12 -
1
Accounting policies
Company information

Plasson U.K. Ltd is a private company limited by shares incorporated in England and Wales. The registered office is Hampden House, 76 Durham Road, London, SW20 0TL. The principal place of business is Plasson House, Albert Drive, Burgess Hill, West Sussex, United Kingdom, RH15 9TN.

1.1
Accounting convention

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

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

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

 

The company has taken advantage of the exemption under section 401 of the Companies Act 2006 not to prepare consolidated accounts. The financial statements present information about the company as an individual entity and not about its group.

 

Plasson U.K. Ltd is a wholly owned subsidiary of Plasson Limited and the results of Plasson U.K. Ltd are included in the consolidated financial statements of the ultimate parent undertaking, Plasson Industries Limited which are available from its registered office at Kibbutz Maagan Michael, D.N. Menashe, 3780500 Israel.

1.2
Going concern

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

PLASSON U.K. LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 13 -
1.3
Turnover

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

 

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

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

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

1.4
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Leasehold land and buildings
2% straight line
Plant and equipment
20% straight line
Fixtures and fittings
10% straight line
Computer software
25% straight line
Motor vehicles
25% straight line

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

1.5
Fixed asset investments

Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

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

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

PLASSON U.K. LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 14 -
1.6
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.7
Stocks

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

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.8
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.

1.9
Financial instruments

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

 

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

 

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

PLASSON U.K. LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 15 -
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 company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities

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

 

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

 

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

PLASSON U.K. LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 16 -
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 company’s contractual obligations expire or are discharged or cancelled.

1.10
Equity instruments

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

1.11
Taxation

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

Current tax

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

Deferred tax

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

 

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

PLASSON U.K. LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 17 -
1.12
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.

1.13
Retirement benefits

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

1.14
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

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

1.15
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Tanbible fixed assets

Determine whether there are any indicators of impairment of the company's tangible assets. Factors taken into consideration in reaching such a decision include the economic viability and expected future financial performance of the asset.

PLASSON U.K. LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
2
Judgements and key sources of estimation uncertainty
(Continued)
- 18 -
Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Tangible fixed assets

Tangible fixed assets are depreciated over their useful lives taking account of residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on the number of factors. In re-assessing asset lives, factors such as technological innovation, product life cycle and maintenance programmes are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of an asset and projected disposal values.

Valuation of land and buildings

As described in note 10 to the financial statements, land and buildings are stated at fair value based on the valuation of observable market prices and values in accordance with the RICS Red Book. However, the Covid-19 pandemic has caused significant disruption and uncertainty in the UK property market which has inevitably increased the degree of judgement involved in the property valuation at 31 December 2020.

3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by geographical market
Europe and the rest of the world
389,435
253,239
United Kingdom
19,014,398
17,564,334
19,403,833
17,817,573
2023
2022
£
£
Other revenue
Interest income
94,050
30,909
Dividends received
-
5,040,673
4
Operating profit
2023
2022
Operating profit for the year is stated after charging:
£
£
Depreciation of owned tangible fixed assets
121,837
120,237
Operating lease charges
138,293
134,051
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
17,000
17,000
PLASSON U.K. LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 19 -
6
Employees

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

2023
2022
Number
Number
Management
4
4
Selling and administration
28
27
Total
32
31

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
1,374,354
1,278,979
Social security costs
170,969
159,244
Pension costs
89,988
99,365
1,635,311
1,537,588
Compensation payments made
44,441
-
7
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
94,050
30,909
Other income from investments
Exchange differences
(8,021)
(27,925)
Total income excluding fixed asset investments
86,029
2,984
Income from fixed asset investments
Income from shares in group undertakings
-
0
5,040,673
Total income
86,029
5,043,657
8
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
638,810
371,738
Adjustments in respect of prior periods
-
0
8,322
Total current tax
638,810
380,060
PLASSON U.K. LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
8
Taxation
2023
2022
£
£
(Continued)
- 20 -
Deferred tax
Origination and reversal of timing differences
(8,221)
818
Total tax charge
630,589
380,878

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

2023
2022
£
£
Profit before taxation
2,480,628
6,928,873
Expected tax charge based on the standard rate of corporation tax in the UK of 23.50% (2022: 19.00%)
582,948
1,316,486
Tax effect of expenses that are not deductible in determining taxable profit
46,946
11,332
Tax effect of income not taxable in determining taxable profit
-
0
(957,728)
Adjustments in respect of prior years
-
0
8,322
Effect of change in local corporation tax
695
2,466
Taxation charge for the year
630,589
380,878

Factors that may affect future tax charges

Increases in the UK corporation tax rate from 19% to 25%, with marginal relief available for profits between £50,000 and £250,000 (effective 1 April 2023) were substantially enacted on 3 March 2021. This will increase the company's future tax charge accordingly.

9
Dividends
2023
2022
£
£
Interim paid
-
0
6,028,116
PLASSON U.K. LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 21 -
10
Tangible fixed assets
Leasehold land and buildings
Plant and equipment
Fixtures and fittings
Computer software
Motor vehicles
Total
£
£
£
£
£
£
Cost or valuation
At 1 January 2023
2,521,865
250,242
439,673
237,967
69,775
3,519,522
Additions
-
0
4,392
26,850
-
0
-
0
31,242
At 31 December 2023
2,521,865
254,634
466,523
237,967
69,775
3,550,764
Depreciation and impairment
At 1 January 2023
473,992
246,819
329,320
35,667
34,983
1,120,781
Depreciation charged in the year
50,000
2,092
22,555
29,746
17,444
121,837
At 31 December 2023
523,992
248,911
351,875
65,413
52,427
1,242,618
Carrying amount
At 31 December 2023
1,997,873
5,723
114,648
172,554
17,348
2,308,146
At 31 December 2022
2,047,873
3,423
110,353
202,300
34,792
2,398,741

The carrying value of land and buildings comprises:

2023
2022
£
£
Long leasehold
1,997,873
2,047,873

Land and buildings with a carrying amount of £1,997,873 were revalued on the basis of market value. The valuation conforms to International Valuation Standards and was based on recent market transactions on arm's length terms for similar properties.

Land and buildings are carried at valuation. If land and buildings were measured using the cost model, the carrying amounts would have been approximately £1,627,992 (2022 - £1,677,992), being cost £2,168,282 (2022 - £2,168,282) and depreciation £540,290 (2022 - £490,290).

11
Fixed asset investments
2023
2022
Notes
£
£
Investments in subsidiaries
12
17,121,998
16,558,998
Capital notes in subsidiaries
12
51,161
51,161
17,173,159
16,610,159
PLASSON U.K. LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
11
Fixed asset investments
(Continued)
- 22 -
Movements in fixed asset investments
Shares in group undertakings
Capital notes in group undertakings
Total
£
£
£
Cost or valuation
At 1 January 2023
16,558,998
51,161
16,610,159
Additions
563,000
-
563,000
At 31 December 2023
17,121,998
51,161
17,173,159
Carrying amount
At 31 December 2023
17,121,998
51,161
17,173,159
At 31 December 2022
16,558,998
51,161
16,610,159
12
Subsidiaries

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

Name of undertaking
Country
Investment at cost
% Held
£
Direct
Plasson Europe Aviculture SAS
France
37,026
100.00
Plasson France SAS
France
1,420,330
100.00
Plasson GmbH
Germany
8,360,832
94.00
Plasson Italia SRL
Italy
3,591,938
100.00
Plasson Spain SLU
Spain
2,587,275
100.00
Plasson Polska Sp.z O.O
Poland
1,124,597
99.99
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)
Plasson Europe Aviculture SAS
(339,961)
(267,050)
Plasson France SAS
14,247,062
1,930,298
Plasson GmbH
9,246,017
2,540,770
Plasson Italia SRL
7,069,029
1,045,404
Plasson Spain SLU
2,621,841
288,902
PLN
PLN
Plasson Polska Sp.z O.O.
8,062,906
702,696
PLASSON U.K. LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 23 -
13
Stocks
2023
2022
£
£
Finished goods and goods for resale
4,486,257
3,406,336
14
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
1,527,773
1,597,895
Other debtors
82,004
40,195
Prepayments and accrued income
114,150
121,587
1,723,927
1,759,677
15
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
194,502
113,114
Amounts owed to group undertakings
764,044
1,917,992
Corporation tax
291,810
131,652
Other taxation and social security
40,677
277,596
Accruals and deferred income
151,517
201,223
1,442,550
2,641,577
16
Deferred taxation

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

Liabilities
Liabilities
2023
2022
Balances:
£
£
Accelerated capital allowances
74,545
82,765
Revaluations
87,168
87,168
161,713
169,933
PLASSON U.K. LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
16
Deferred taxation
(Continued)
- 24 -
2023
Movements in the year:
£
Liability at 1 January 2023
169,933
Credit to profit or loss
(8,220)
Liability at 31 December 2023
161,713
17
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
89,988
99,365

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

18
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
15,003,073
15,003,073
15,003,073
15,003,073
19
Operating lease commitments
Lessee

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

2023
2022
£
£
Within one year
55,409
33,996
Between two and five years
51,321
33,073
106,730
67,069

In addition at the reporting end date the total future minimum ground rent payments expected to be payable under non-cancellable subleases was £4,202,685. The ground rent payable is subject to rent review every seven years.

20
Related party transactions

In accordance with FRS 102, paragraph 33.1A, the company is exempt from disclosure of related party transactions as they are with other group companies that are wholly owned within the group.

PLASSON U.K. LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 25 -
21
Ultimate controlling party

The company is a wholly owned subsidiary of Plasson Limited. a foreign company incorporated in Israel.

The ultimate parent undertaking and controlling party is Plasson Industries Limited, which prepares group financial statements. Plasson Industries Limited a foreign company registered in Israel and listed on the Tel Aviv Stock Exchange.

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