Company registration number 08515965 (England and Wales)
PMI EUROPE LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
PAGES FOR FILING WITH REGISTRAR
PMI EUROPE LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 6
PMI EUROPE LIMITED
BALANCE SHEET
AS AT 31 DECEMBER 2023
31 December 2023
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
3
2,044
3,889
Current assets
Debtors
4
682,173
577,484
Cash at bank and in hand
1,238,677
572,830
1,920,850
1,150,314
Creditors: amounts falling due within one year
5
(739,947)
(362,508)
Net current assets
1,180,903
787,806
Total assets less current liabilities
1,182,947
791,695
Provisions for liabilities
(511)
(739)
Net assets
1,182,436
790,956
Capital and reserves
Called up share capital
6
100
100
Other reserves
2,566,696
2,566,696
Profit and loss reserves
(1,384,360)
(1,775,840)
Total equity
1,182,436
790,956
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the provisions of FRS102 section 1A - small entities.
The financial statements were approved by the board of directors and authorised for issue on 7 August 2024 and are signed on its behalf by:
D Conrad
Director
Company Registration No. 08515965
The notes on pages 2 to 6 form part of these financial statements.
PMI EUROPE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
1
Accounting policies
Company information
PMI Europe Limited is a private company limited by shares and incorporated and domiciled in England. The registered office is 82 St John Street, London, EC1M 4JN.
Principal activity
The principal activity of the company is that of providing marketing assistance and brand management activities in the UK on behalf of its parent company.
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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Going concern
The Company's activities and its finances ultimately derive from its parent company, PMI Inc (PMI). The Company has received a letter of support from PMI confirming it will continue to provide the Company with finance as required to meet its obligations for the period of at least 12 months from the date of approval of these financial statements.
On the basis of their assessment of the Company's financial position and after confirmations received from the Directors of PMI, the Directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. Thus they continue to adopt the going concern basis of accounting in preparing the annual financial statements.
1.3
Turnover
The company is contracted by its parent company to provide marketing assistance in the UK. The turnover represents revenue under the terms of service agreement which is on a cost plus basis.
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:
Plant and machinery
20% 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
Cash at bank and in hand
Cash at bank and in hand are basic financial assets and include cash in hand and deposits held at call with banks.
PMI EUROPE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 3 -
1.6
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
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 and loans from fellow group companies, 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.
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.
1.7
Taxation
The tax expense represents the sum of the tax currently payable.
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.
PMI EUROPE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 4 -
1.8
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.
1.9
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.10
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.
1.11
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.
1.12
Critical accounting judgments, estimates and assumptions
The preparation of financial statements requires management to make judgements, estimates and assumptions that affect the reported amounts in the financial statements. Management continually evaluates its judgements and estimates in relation to assets, liabilities, contingent liabilities and expenses. Management basis its judgements, estimates and assumptions on historical experience and on other various factors, including expectations of future events, management believes to be reasonable under the circumstances.
2
Employees
The average number of employees employed by the company during the year was:
2023
2022
Number
Number
Total
36
30
PMI EUROPE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 5 -
3
Tangible fixed assets
Plant and machinery
£
Cost
At 1 January 2023 and 31 December 2023
9,223
Depreciation
At 1 January 2023
5,334
Depreciation charged in the year
1,845
At 31 December 2023
7,179
Carrying amount
At 31 December 2023
2,044
At 31 December 2022
3,889
4
Debtors
2023
2022
Amounts falling due within one year:
£
£
Amounts owed by group undertakings
520,851
468,947
Other debtors
161,322
108,537
682,173
577,484
5
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
31,934
12,694
Corporation tax
125,780
84,964
Other taxation and social security
3,319
Other creditors
578,914
264,850
739,947
362,508
6
Called up share capital
2023
2022
£
£
Ordinary share capital
Issued and fully paid
100 Ordinary shares of £1 each
100
100
PMI EUROPE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 6 -
7
Audit report information
As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:
The auditor's report was unqualified.
Senior Statutory Auditor:
Stuart Leat
Statutory Auditor:
PKF Littlejohn LLP
Date:
8 August 2024
8
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2023
2022
£
£
Within one year
8,550
14,460
8,550
14,460
9
Related party transactions
Project Management Institute, Inc.
J Cahill was a director of PMI Europe Limited up until 1 March 2023 and also part of the management team of Project Management Institute, Inc. (PMI).
During the year the company made recharges totalling £5,505,865 (2022: £4,812,593) to PMI. The amount due from PMI as at 31 December 2023 was £520,851 (2022: £468,947).
10
Parent company
Project Management Institute, Inc. (Incorporated in USA) is regarded by the director as being the company's ultimate parent company.
In the opinion of the director there is no ultimate controlling party.
The ultimate parent undertaking and the smallest group to consolidate these financial statements is Project Management Institute, Inc. (PMI). The address of the undertaking's principal place of business is 14 Campus Boulevard, Newtown Square, PA 19073-3299, USA.