for the Period Ended 30 November 2023
Directors report | |
Profit and loss | |
Balance sheet | |
Additional notes | |
Balance sheet notes |
Directors' report period ended
The directors present their report with the financial statements of the company for the period ended 30 November 2023
Principal activities of the company
Political and charitable donations
Company policy on disabled employees
Additional information
Reporting under FRS101 – Reduced Disclosure Framework The Company has made the decision to report under FRS101 – Reduced Disclosure Framework (FRS101) transitioning from the prior set of published financial statements prepared under FRS102 – The Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102). The transitional adjustments made on the conversion to FRS101 from FRS102 are detailed within note 19 of this set of financial statements. Review of business and future developments The level of sales of the Company and its investments during the year were consistent with management forecasts as the company has seen the realignment of demand within the laboratory sector following covid. Cost management has been controlled in order to maintain profitability within the business and the business is beginning to see an improvement to its orderbook in the months following the year end. Further discussion of the business review and future developments, in the context of the Porvair group as a whole, including the Company, is provided in the Chairman’s statement, Chief Executive’s report and the Finance Director’s review in the Porvair plc 2023 annual report and financial statements, which does not form part of this report. Research and development The Company continues a programme of development of its existing systems and new systems to support future growth opportunities. The development is largely completed in-house rather than through third parties. Key performance indicators The Company considers its key performance indicators to be revenue growth, operating margin and profit before tax growth, measured against prior year. Further discussion of these key performance indicators, in the context of the group as a whole, including the Company, is provided in the Chairman’s statement, Chief Executive’s report and the Finance Director’s review in the Porvair plc 2023 annual report and financial statements, which does not form part of this report. Financial risk management The Company’s operations expose it to a variety of financial risks that include the effects of liquidity risk, foreign exchange risk and credit risk. The Company has in place a risk management programme that seeks to limit the adverse effects on the financial performance of the Company. Given the size of the Company, the Directors have not delegated the responsibility of monitoring financial risk management to a sub-committee of the board. The policies set by the board of Directors are implemented by the Company’s finance department. Liquidity risk The ultimate parent company ensures the Company has sufficient available funds for operations and planned growth. Foreign exchange risk The Company sells its products in both US dollars and Euros and is exposed to exchange rate movements. The exposure to exchange rate movements is partially mitigated by purchases in those currencies and intercompany loan balances, in addition to which the Company selectively enters into forward currency contracts via its parent company in relation to its principal foreign currency denominated revenues to reduce the impact of exchange rate movements. Credit risk The Company has implemented policies that require appropriate credit checks on potential customers before sales are made. The amount of exposure to any individual counterparty is subject to a limit, which is reassessed annually. Results and dividends The Company’s results for the year are shown on page 6. The Company made a profit after tax for the financial year of £203,000 (2022: £719,000). Dividends of £500,000 were paid in the year (2022: £250,000). The Directors do not recommend any further payment of a dividend. 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), including Financial Reporting Standard 101 - Reduced Disclosure Framework. Going concern The Directors have reviewed the cash flow forecast for the period ending 24 months after the balance sheet date. The forecast represents the Directors’ best estimate of the Company’s future performance and necessarily includes a number of assumptions, including the level of revenues, which are subject to inherent uncertainties. However, the forecast demonstrates that the Directors have a reasonable expectation that the Company will be able to meet its liabilities as they fall due, for a period of at least 12 months from the date of approval of these financial statements, even if trade falls to worst case scenario levels. As at 30 November 2023 the Company had £0.5 million (2022: £1.2 million) in cash and cash equivalents. The Company is currently forecasting to be profitable and cash positive for the 12 months from the date of this report and the foreseeable future, being a period of no less than 12 months from the date of signing of the financial statements. Therefore, after due consideration of the risks and uncertainties associated with the business of the Company and, having made appropriate enquiries, the Directors have a reasonable expectation that the Company has adequate resources and has the ability to continue trading on normal terms of the business for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing these financial statements.
Directors
The directors shown below have held office during the whole of the period from
1 December 2022
to
30 November 2023
The director shown below has held office during the whole of the period from
1 December 2022
to
30 November 2023
Secretary
The above report has been prepared in accordance with the special provisions in part 15 of the Companies Act 2006
This report was approved by the board of directors on
And signed on behalf of the board by:
Name:
Status: Secretary
for the Period Ended
2023 | 2022 | |
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Turnover: |
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Cost of sales: |
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Gross profit(or loss): |
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Distribution costs: |
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Administrative expenses: |
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Operating profit(or loss): |
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Interest payable and similar charges: |
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Profit(or loss) before tax: |
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Tax: |
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Profit(or loss) for the financial year: |
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As at
Notes | 2023 | 2022 | |
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Fixed assets | |||
Intangible assets: | 3 |
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Tangible assets: | 4 |
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Total fixed assets: |
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Current assets | |||
Stocks: | 5 |
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Debtors: | 6 |
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Cash at bank and in hand: |
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Total current assets: |
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Creditors: amounts falling due within one year: | 7 |
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Net current assets (liabilities): |
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Total assets less current liabilities: |
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Creditors: amounts falling due after more than one year: | 8 |
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Total net assets (liabilities): |
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Capital and reserves | |||
Called up share capital: |
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Profit and loss account: |
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Total Shareholders' funds: |
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The notes form part of these financial statements
This report was approved by the board of directors on
and signed on behalf of the board by:
Name:
Status: Director
The notes form part of these financial statements
for the Period Ended 30 November 2023
Basis of measurement and preparation
Turnover policy
Tangible fixed assets depreciation policy
Intangible fixed assets amortisation policy
Other accounting policies
for the Period Ended 30 November 2023
2023 | 2022 | |
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Average number of employees during the period |
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for the Period Ended 30 November 2023
Goodwill | Other | Total | |
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Cost | £ | £ | £ |
At 1 December 2022 |
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At 30 November 2023 |
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Amortisation | |||
At 1 December 2022 |
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Charge for year |
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On disposals | |||
Other adjustments | |||
At 30 November 2023 |
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Net book value | |||
At 30 November 2023 |
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At 30 November 2022 |
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for the Period Ended 30 November 2023
Land & buildings | Plant & machinery | Fixtures & fittings | Office equipment | Motor vehicles | Total | |
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Cost | £ | £ | £ | £ | £ | £ |
At 1 December 2022 |
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At 30 November 2023 |
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At 1 December 2022 |
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On disposals | ||||||
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At 30 November 2023 |
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At 30 November 2023 |
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At 30 November 2022 |
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for the Period Ended 30 November 2023
2023 | 2022 | |
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£ | £ | |
Stocks |
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Total |
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for the Period Ended 30 November 2023
2023 | 2022 | |
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£ | £ | |
Trade debtors |
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Prepayments and accrued income |
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Other debtors |
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Total |
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for the Period Ended 30 November 2023
2023 | 2022 | |
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£ | £ | |
Amounts due under finance leases and hire purchase contracts |
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Trade creditors |
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Taxation and social security |
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Accruals and deferred income |
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Other creditors |
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Total |
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for the Period Ended 30 November 2023
2023 | 2022 | |
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£ | £ | |
Amounts due under finance leases and hire purchase contracts |
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Other creditors |
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Total |
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