Company registration number 14657614 (England and Wales)
P J VALVES GROUP LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023
P J VALVES GROUP LIMITED
COMPANY INFORMATION
Directors
Mr D R Munro
(Appointed 13 February 2023)
Mr K J Kmiec
(Appointed 1 August 2023)
Mr S R Charles
(Appointed 1 August 2023)
Mr J D Moir
(Appointed 1 August 2023)
Mr P H Goodmaker
(Appointed 1 August 2023)
Company number
14657614
Registered office
4 Post Office Walk
Hertford
Hertfordshire
SG14 1DL
Auditor
Gravita Audit II Limited
Aldgate Tower
2 Leman Street
London
E1 8FA
P J VALVES GROUP LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 6
Income statement
7
Group statement of comprehensive income
8
Group statement of financial position
9
Company statement of financial position
10
Group statement of changes in equity
11
Company statement of changes in equity
12
Group statement of cash flows
13
Notes to the financial statements
14 - 32
P J VALVES GROUP LIMITED
STRATEGIC REPORT
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 1 -

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

Review of the business

During the period there was a reorganisation of the P J Valves Group.

 

The old group was restructured with the disposal of PJ Piping Inc and a new group created headed by P J Valves Group Limited.

 

Turnover for the period following reorganisation of the group structure was £9.1m

Principal risks and uncertainties

The directors believe we will continue to grow in this current buoyant marketplace. Key customer relationships, established in recent years, will underpin our expectations. Due to high inflation globally in 2022-23, margins have been pressured, but this has been offset, where possible, by improved control of overheads with updated technologies and efficiencies. We are also expecting to start seeing the benefits of our investment in 2023 of moving in to new markets. The directors anticipate this growth to continue into 2025 and beyond.

On behalf of the board

Mr D R Munro
Director
15 August 2024
P J VALVES GROUP LIMITED
DIRECTORS' REPORT
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 2 -

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

Principal activities

The principal activity of the company and group continued to be that of manufacturing and supply of valves to energy projects.

Results and dividends

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

Ordinary dividends were paid amounting to £100,000. The directors do not recommend payment of a further dividend.

Directors

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

Mr D R Munro
(Appointed 13 February 2023)
Mr K J Kmiec
(Appointed 1 August 2023)
Mr S R Charles
(Appointed 1 August 2023)
Mr J D Moir
(Appointed 1 August 2023)
Mr P H Goodmaker
(Appointed 1 August 2023)
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 group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

 

 

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

Statement of disclosure to auditor

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

Medium-sized companies exemption

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

P J VALVES GROUP LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 3 -
On behalf of the board
Mr D R Munro
Director
15 August 2024
P J VALVES GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF P J VALVES GROUP LIMITED
- 4 -
Opinion

We have audited the financial statements of P J Valves Group Limited (the 'parent company') and its subsidiaries (the 'group') for the Period ended 31 December 2023 which comprise the group income statement, the group statement of comprehensive income, the group statement of financial position, the company statement of financial position, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

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

Conclusions relating to going concern

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

 

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

 

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

Other information

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

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

P J VALVES GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF P J VALVES GROUP LIMITED
- 5 -
Matters on which we are required to report by exception

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

 

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

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the parent company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

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

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

We ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations. The laws and regulations applicable to the company were identified through discussions with directors and other management, and from our commercial knowledge and experience of the global energy projects suppliers industry. Of these laws and regulations, we focused on those that we considered may have a direct material effect on the financial statements or the operations of the company, including Companies Act 2006, taxation legislation, data protection, anti-bribery, anti-money-laundering, employment, environmental and health and safety legislation. The extent of compliance with these laws and regulations identified above was assessed through making enquiries of management and inspecting legal correspondence. The identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit. 

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

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

P J VALVES GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF P J VALVES GROUP LIMITED
- 6 -

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 that 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 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 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.

Paul Woosey FCA, FCCA (Senior Statutory Auditor)
For and on behalf of Gravita Audit II Limited
16 August 2024
Chartered Accountants
Statutory Auditor
Aldgate Tower
2 Leman Street
London
E1 8FA
P J VALVES GROUP LIMITED
GROUP INCOME STATEMENT
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 7 -
Period
ended
31 December
2023
Notes
£
Turnover
3
9,120,536
Cost of sales
(6,410,725)
Gross profit
2,709,811
Distribution costs
(141,157)
Administrative expenses
(2,114,517)
Other operating income
530,862
Operating profit
4
984,999
Interest receivable and similar income
6
1,932
Interest payable and similar expenses
7
(76,551)
Profit before taxation
910,380
Tax on profit
8
(370,361)
Profit for the financial Period
540,019
Profit for the financial Period is all attributable to the owners of the parent company.
P J VALVES GROUP LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 8 -
Period
ended
31 December
2023
£
Profit for the Period
540,019
Other comprehensive income
-
Total comprehensive income for the Period
540,019
Total comprehensive income for the Period is all attributable to the owners of the parent company.
P J VALVES GROUP LIMITED
GROUP STATEMENT OF FINANCIAL POSITION
AS AT
31 DECEMBER 2023
31 December 2023
- 9 -
2023
Notes
£
£
Fixed assets
Negative goodwill
10
(2,597,898)
Tangible assets
11
785,952
Current assets
Stocks
14
1,472,383
Debtors
15
7,553,967
Cash at bank and in hand
1,644,966
10,671,316
Creditors: amounts falling due within one year
16
(6,869,577)
Net current assets
3,801,739
Total assets less current liabilities
1,989,793
Creditors: amounts falling due after more than one year
17
(746,710)
Provisions for liabilities
Provisions
20
797,480
Deferred tax liability
21
2,586
(800,066)
Net assets
443,017
Capital and reserves
Called up share capital
23
2,998
Profit and loss reserves
440,019
Total equity
443,017

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

The financial statements were approved by the board of directors and authorised for issue on 15 August 2024 and are signed on its behalf by:
15 August 2024
Mr D R Munro
Director
Company registration number 14657614 (England and Wales)
P J VALVES GROUP LIMITED
COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2023
31 December 2023
- 10 -
2023
Notes
£
£
Fixed assets
Investments
12
329,596
Current assets
Debtors
15
1,701
Cash at bank and in hand
5,918
7,619
Creditors: amounts falling due within one year
16
(157,070)
Net current liabilities
(149,451)
Net assets
180,145
Capital and reserves
Called up share capital
23
2,998
Profit and loss reserves
177,147
Total equity
180,145

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £277,147.

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

The financial statements were approved by the board of directors and authorised for issue on 15 August 2024 and are signed on its behalf by:
15 August 2024
Mr D R Munro
Director
Company registration number 14657614 (England and Wales)
P J VALVES GROUP LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 11 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 13 February 2023
-
-
-
Period ended 31 December 2023:
Profit and total comprehensive income
-
540,019
540,019
Issue of share capital
23
2,998
-
2,998
Dividends
9
-
(100,000)
(100,000)
Balance at 31 December 2023
2,998
440,019
443,017
P J VALVES GROUP LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 12 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 13 February 2023
-
0
-
0
-
Period ended 31 December 2023:
Profit and total comprehensive income
-
277,147
277,147
Issue of share capital
23
2,998
-
2,998
Dividends
9
-
(100,000)
(100,000)
Balance at 31 December 2023
2,998
177,147
180,145
P J VALVES GROUP LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 13 -
2023
Notes
£
£
Cash flows from operating activities
Cash absorbed by operations
28
(776,006)
Interest paid
(76,551)
Income taxes paid
(246,130)
Net cash outflow from operating activities
(1,098,687)
Investing activities
Purchase of intangible assets
2,754,089
Proceeds from disposal of intangibles
7,822
Purchase of tangible fixed assets
(974,664)
Exchange adjustments on tangible fixed assets
35,869
Proceeds from disposal of tangible fixed assets
18,345
Interest received
1,932
Net cash generated from/(used in) investing activities
1,843,393
Financing activities
Proceeds from issue of shares
2,998
Repayment of bank loans
945,455
Payment of finance leases obligations
51,807
Dividends paid to equity shareholders
(100,000)
Net cash generated from/(used in) financing activities
900,260
Net increase in cash and cash equivalents
1,644,966
Cash and cash equivalents at beginning of Period
-
0
Cash and cash equivalents at end of Period
1,644,966
P J VALVES GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 14 -
1
Accounting policies
Company information

P J Valves Group Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is 4 Post Office Walk, Hertford, Hertfordshire, SG14 1DL.

 

The group consists of P J Valves Group Limited and all of its subsidiaries.

1.1
Reporting period

The group was incorporated on the 13th February 2023 and hence it has a shorter period of account.

1.2
Accounting convention

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

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

The financial statements have been prepared under the historical cost convention, [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.

The 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 for parent company information presented within the consolidated financial statements:

 

1.3
Business combinations

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

 

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

P J VALVES GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 15 -
1.4
Basis of consolidation

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

 

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

 

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

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

Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.

Investments in joint ventures and associates are carried in the group statement of financial position at cost plus post-acquisition changes in the group’s share of the net assets of the entity, less any impairment in value. The carrying values of investments in joint ventures and associates include acquired goodwill.

 

If the group’s share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the group does not recognise further losses unless it has incurred obligations to do so or has made payments on behalf of the joint venture or associate.

 

Unrealised gains arising from transactions with joint ventures and associates are eliminated to the extent of the group’s interest in the entity.

1.5
Going concern

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

1.6
Turnover

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

 

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

P J VALVES GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 16 -

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.

 

Purchase costs incurred in relation to sales contracts where the revenue recognition criteria has not been met are included in stock.

 

Purchase deposits paid in relation to contract purchases are included in prepayments.

 

Payments received on account from contract customers in line with contractual stage payment milestones where the revenue recognition criteria has not been met are included in creditors as payments received on account.

 

Amounts due from contract customers included in debtors relate to accrued income in relation to final contract milestones which have not yet been invoiced where the revenue recognition criteria has been met on the contract during the year.

1.7
Research and development expenditure

Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.

1.8
Intangible fixed assets - goodwill

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

 

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

1.9
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 improvements
10% on cost
Plant and equipment
25% on cost
Fixtures and fittings
20% on cost
Computers
33.33% on cost
Motor vehicles
20% on cost

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the income statement.

P J VALVES GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 17 -
1.10
Fixed asset investments

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

 

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

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

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 group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

 

Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.

 

Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.

 

In the parent company financial statements, investments in associates are accounted for at cost less impairment.

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

1.11
Impairment of fixed assets

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

 

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

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

 

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

P J VALVES GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 18 -

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.

1.12
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.

 

Contract work in progress is costs incurred, after deducting ant expected contract losses.

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.

1.13
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.

1.14
Financial instruments

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

 

Financial instruments are recognised in the group's statement of financial position when the group becomes party to the contractual provisions of the instrument.

 

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

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

P J VALVES GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 19 -
Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

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

Basic financial liabilities

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

 

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

 

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

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

P J VALVES GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 20 -
Derecognition of financial liabilities

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

1.15
Equity instruments

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

1.16
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 income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

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 income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.17
Provisions

Provisions are recognised when the group has a legal or constructive present obligation as a result of a past event, it is probable that the group will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

 

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

 

The group provides a warranty provision for costs to replace or repair where an issue has been identified with products supplied to customers.

P J VALVES GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 21 -
1.18
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.

1.19
Retirement benefits

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

1.20
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the statement of financial position as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

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 leased asset are consumed.

2
Judgements and key sources of estimation uncertainty

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

 

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

Critical judgements

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

Rexoverability of Investments

The directors have carried out an impairment review of the investments in subsidiaries and are satisfied that no impairment is necessary based on the forecast future profits.

3
Turnover and other revenue
2023
£
Turnover analysed by class of business
Revenue from contracts
9,120,536
P J VALVES GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
3
Turnover and other revenue
(Continued)
- 22 -
2023
£
Turnover analysed by geographical market
Americas
227,967
APAC
7,616,979
EMEA
1,275,590
9,120,536
2023
£
Other revenue
Interest income
1,932
4
Operating profit
2023
£
Operating profit for the period is stated after charging/(crediting):
Exchange gains
(141,124)
Research and development costs
51,729
Fees payable to the group's auditor for the audit of the group's financial statements
5,000
Depreciation of owned tangible fixed assets
93,398
Depreciation of tangible fixed assets held under finance leases
41,100
Release of negative goodwill
(156,191)
Profit on disposal of intangible assets
(7,822)
Operating lease charges
127,528
5
Employees

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

Group
Company
2023
2023
Number
Number
66
-
0
P J VALVES GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
5
Employees
(Continued)
- 23 -

Their aggregate remuneration comprised:

Group
Company
2023
2023
£
£
Wages and salaries
1,419,126
-
0
Social security costs
111,493
-
Pension costs
29,981
-
0
1,560,600
-
0
6
Interest receivable and similar income
2023
£
Interest income
Interest on bank deposits
1,932
7
Interest payable and similar expenses
2023
£
Interest on bank overdrafts and loans
76,551
8
Taxation
2023
£
Current tax
UK corporation tax on profits for the current period
243,652
Deferred tax
Origination and reversal of timing differences
126,709
Total tax charge
370,361
P J VALVES GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
8
Taxation
(Continued)
- 24 -

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

2023
£
Profit before taxation
910,380
Expected tax charge based on the standard rate of corporation tax in the UK of 23.50%
213,939
Tax effect of expenses that are not deductible in determining taxable profit
9,208
Tax effect of income not taxable in determining taxable profit
(1,840)
Tax effect of utilisation of tax losses not previously recognised
(47,979)
Permanent capital allowances in excess of depreciation
(46,923)
Depreciation on assets not qualifying for tax allowances
12,549
Other permanent differences
(4,350)
Effect of overseas tax rates
251,583
Statutory stepped income and tax rebate
(15,826)
Taxation charge
370,361
9
Dividends
2023
Recognised as distributions to equity holders:
£
Interim paid
100,000
10
Intangible fixed assets
Group
Negative goodwill
£
Cost
At 13 February 2023
-
0
Additions
(2,754,089)
At 31 December 2023
(2,754,089)
Amortisation and impairment
At 13 February 2023
-
0
Amortisation charged for the Period
(156,191)
At 31 December 2023
(156,191)
Carrying amount
At 31 December 2023
(2,597,898)
The company had no intangible fixed assets at 31 December 2023.
P J VALVES GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 25 -
11
Tangible fixed assets
Group
Leasehold improvements
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 13 February 2023
-
0
-
0
-
0
-
0
-
0
-
0
Additions
214,236
499,733
34,900
143,287
82,508
974,664
Disposals
-
0
-
0
-
0
-
0
(61,654)
(61,654)
Exchange adjustments
(7,312)
(35,950)
(2,720)
(10,426)
-
0
(56,408)
At 31 December 2023
206,924
463,783
32,180
132,861
20,854
856,602
Depreciation and impairment
At 13 February 2023
-
0
-
0
-
0
-
0
-
0
-
0
Depreciation charged in the Period
8,824
51,784
12,586
30,804
30,500
134,498
Eliminated in respect of disposals
-
0
-
0
-
0
-
0
(43,309)
(43,309)
Exchange adjustments
663
(16,819)
(1,301)
(3,082)
-
0
(20,539)
At 31 December 2023
9,487
34,965
11,285
27,722
(12,809)
70,650
Carrying amount
At 31 December 2023
197,437
428,818
20,895
105,139
33,663
785,952
The company had no tangible fixed assets at 31 December 2023.
12
Fixed asset investments
Group
Company
2023
2023
Notes
£
£
Investments in subsidiaries
13
-
0
329,596
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 13 February 2023
-
Additions
329,596
At 31 December 2023
329,596
Carrying amount
At 31 December 2023
329,596
P J VALVES GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 26 -
13
Subsidiaries

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

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
P J Pipe & Valve Co Ltd
UK
Ordinary
100.00
P J Valve Inc
USA
Ordinary
100.00
P J Valve Pte
Singapore
Orindary
100.00
P J Valves Manufacuring Pvt
India
Ordinary
100.00

 

All subsidiaries prepare statutory accounts to 31 December 2023 with the exception of P J Valves Manufacturing Pvt, this entity prepares statutory accounts to 31 March 2024. The results to 31 December 2023 for P J Valves Manufacturing Pvt are included in the group accounts based on audited management accounts.

14
Stocks
Group
Company
2023
2023
£
£
Finished goods and goods for resale
1,472,383
-
0
15
Debtors
Group
Company
2023
2023
Amounts falling due within one year:
£
£
Trade debtors
5,590,278
-
0
Gross amounts owed by contract customers
205,750
-
0
Other debtors
1,653,413
-
0
Prepayments and accrued income
104,526
1,701
7,553,967
1,701
P J VALVES GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 27 -
16
Creditors: amounts falling due within one year
Group
Company
2023
2023
Notes
£
£
Bank loans
18
236,364
-
0
Obligations under finance leases
19
14,188
-
0
Payments received on account
1,959,032
-
0
Trade creditors
2,336,409
-
0
Amounts owed to group undertakings
-
0
152,070
Corporation tax payable
121,645
-
0
Other taxation and social security
158,583
-
Other creditors
487,334
-
0
Accruals and deferred income
1,556,022
5,000
6,869,577
157,070
17
Creditors: amounts falling due after more than one year
Group
Company
2023
2023
Notes
£
£
Bank loans and overdrafts
18
709,091
-
0
Obligations under finance leases
19
37,619
-
0
746,710
-
18
Loans and overdrafts
Group
Company
2023
2023
£
£
Bank loans
945,455
-
0
Payable within one year
236,364
-
0
Payable after one year
709,091
-
0

The long-term loans are secured by fixed charges over all present freehold and leasehold property.

Coronavirus Business Interruption loan

The loan was repaid during the year, The interest was charged at 3.49% per annum over the Bank of England Base Rate.

 

Recovery Loan Scheme

Interest is charged at 3.99% per annum over the Bank of England Base Rate.

P J VALVES GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 28 -
19
Finance lease obligations
Group
Company
2023
2023
£
£
Future minimum lease payments due under finance leases:
Within one year
14,188
-
0
In two to five years
37,619
-
0
51,807
-

Finance lease payments represent rentals payable by the company or group for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 3 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

P J VALVES GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 29 -
20
Provisions for liabilities
Group
Company
2023
2023
£
£
Warranty provision
797,480
-
Movements on provisions:
Warranty provision
Group
£
At 13 February 2023
114,233
Additional provisions in the year
683,247
At 31 December 2023
797,480
21
Deferred taxation

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

Liabilities
2023
Group
£
Tax losses
2,586
The company has no deferred tax assets or liabilities.
Group
Company
2023
2023
Movements in the Period:
£
£
Asset at 13 February 2023
-
-
Charge to profit or loss
2,586
-
Liability at 31 December 2023
2,586
-

The deferred tax liability set out above is expected to reverse within 12 months and relates to accelerated capital allowances that are expected to mature within the same period.

22
Retirement benefit schemes
2023
Defined contribution schemes
£
Charge to profit or loss in respect of defined contribution schemes
29,981
P J VALVES GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
22
Retirement benefit schemes
(Continued)
- 30 -

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

23
Share capital
Group and company
2023
2023
Ordinary share capital
Number
£
Issued and fully paid
Ordinary A of 1p each
299,805
2,998

On incorporation on13th February 2023 1 ordinary share of £1 each was issued.

 

On 23rd March 2023 1 ordinary share of £1 each was subdivided into 100 ordinary shares of £0.01 each. On the same day a further 394,900 ordinary shares of £0.01 were allotted, as a result of the acquisition of PJ Valves holdings limited.

 

On 7th June the share capital of 395,500 ordinary £0.01 shares was reclassified to 299,805 Ordinary A shares and 95,195 Ordinary B shares. The 95,195 ordinary B shares were subsequently cancelled.

 

As at 31st December 2023 there were 299,805 Ordinary A shares of £0.01 in issue.

 

Post year end, on the 5th April 2024 11,298 X shares of £0.01 were issued at a premium of £5.67 per share.

 

 

24
Acquisition of a business

On 7 June 2024 the group acquired 100 % of the issued capital of . PJ Pipe Valve & Co Limited , P J Valves Manufacturing Pvt, P J Valves Inc and P J Valves Pte Ltd.

 

There was a share for share exchange and no consideration was paid.

Book Value
Adjustments
Fair Value
Net assets acquired
£
£
£
Property, plant and equipment
502,783
-
502,783
Inventories
891,612
-
891,612
Trade and other receivables
10,832,350
-
10,832,350
Cash and cash equivalents
1,875,019
-
1,875,019
Borrowings
(1,083,333)
-
(1,083,333)
Trade and other payables
(10,388,406)
-
(10,388,406)
Deferred tax
124,064
-
124,064
Total identifiable net assets
2,754,089
-
2,754,089
Goodwill
(2,424,493)
Total consideration
329,596
P J VALVES GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
24
Acquisition of a business
(Continued)
- 31 -
The consideration was satisfied by:
£
Share for share exchange
329,596

The net assets taken over did not require any fair value adjustments.

Contribution by the acquired business for the reporting period included in the group statement of comprehensive income since acquisition:
£
Turnover
9,188,129
Profit after tax
715,821
25
Financial commitments, guarantees and contingent liabilities

P J Pipe & Valve Co Limited, a subsidiary in the Group, has given guarantees in connection with its own trading business to certain customers and HM Revenue & Customs for a total maximum amount of £2,278K (2022: £1,337k). None of these guarantees had crystallised as at the date of approval of these accounts.

26
Operating lease commitments
Lessee

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

Group
Company
2023
2023
£
£
Within one year
185,000
-
185,000
-
27
Controlling party

The ultimate controlling party is Daniel Munro.

P J VALVES GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 32 -
28
Cash absorbed by group operations
2023
£
Profit for the Period after tax
540,019
Adjustments for:
Taxation charged
370,361
Finance costs
76,551
Investment income
(1,932)
Gain on disposal of intangible assets
(7,822)
Amortisation and impairment of intangible assets
(156,191)
Depreciation and impairment of tangible fixed assets
134,498
Increase in provisions
797,480
Movements in working capital:
Increase in stocks
(1,472,383)
Increase in debtors
(7,553,967)
Increase in creditors
6,497,380
Cash absorbed by operations
(776,006)
29
Analysis of changes in net funds - group
13 February 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
-
1,644,966
1,644,966
Borrowings excluding overdrafts
-
(945,455)
(945,455)
Obligations under finance leases
-
(51,807)
(51,807)
-
647,704
647,704
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