REGISTERED NUMBER: |
Strategic Report, Report of the Directors and |
Financial Statements |
For The Year Ended 31 December 2023 |
for |
Poeton Industries Limited |
REGISTERED NUMBER: |
Strategic Report, Report of the Directors and |
Financial Statements |
For The Year Ended 31 December 2023 |
for |
Poeton Industries Limited |
Poeton Industries Limited (Registered number: 00246071) |
Contents of the Financial Statements |
For The Year Ended 31 December 2023 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 4 |
Report of the Independent Auditors | 6 |
Income Statement | 9 |
Other Comprehensive Income | 10 |
Statement of Financial Position | 11 |
Statement of Changes in Equity | 12 |
Notes to the Financial Statements | 13 |
Poeton Industries Limited |
Company Information |
For The Year Ended 31 December 2023 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Accountants |
and Statutory Auditor |
Goodridge Court |
Goodridge Avenue |
Gloucester |
Gloucestershire |
GL2 5EN |
BANKERS: |
Britannia Warehouse |
The Docks |
Gloucester |
GL1 2YJ |
Poeton Industries Limited (Registered number: 00246071) |
Strategic Report |
For The Year Ended 31 December 2023 |
The directors present their strategic report for the year ended 31 December 2023. |
In the opinion of the Directors, the general performance, development and financial position of the company during the year ending December 2023 are satisfactory. |
GENERAL TRADING |
We have maintained our skilled staffing levels necessary to continue serving both aerospace and non aerospace customers with our metal finishing services. The customer portfolio has shown a healthy balance across the sectors as we continue on our diversification strategy. |
Our customer satisfaction levels of performance have been maintained with regards to on time delivery, flexibility and quality that differentiates us from our competitors. 2023 has seen an exceptional level of new and existing customer trading that reflects the market recovery in aerospace and also new market penetration (eg) in the automotive sector. |
Our Polish plant has realised strong sales growth and we continue to introduce new product platforms to the facility with contracted customers that will provide a solid foundation for further growth opportunity. We now have the full compliment of skilled and trained employees to enable of world class quality and delivery performance within the EU. |
We retain good cash reserves, with an improved gearing ratio and we continue to invest in improvements at each of our facilities. |
REVIEW OF BUSINESS |
The key financial highlights were as follows:- |
2023 | 2022 | 2021 | 2020 |
Turnover movement | +47% | +19% | -13% | -33% |
Gross profit movement | +66% | +45% | -2% | -44% |
Profit before tax (excluding exceptional items) | £1,878k | £461k | £65k | £176k |
PRINCIPAL RISKS AND UNCERTAINTIES |
The company provides services to a wide range of manufacturers, across a number of industries mainly in the UK and Continental Europe. We have a flexible culture that allows us to react to changing market requirements as well as product improvements and to maintain our competitive advantage, the company continues with its research and development programme. |
We differentiate from our competitors by applying resources to design product solutions to customer's engineering or regulatory problems (eg) REACH - the prohibition of Chrome and CAD products, continually improve our product portfolio for sale and / or in-house application. |
We are committed to ensuring stability for our employees and suppliers, subject to applicable market conditions and to maintain our responsibilities towards Health & Safety, working conditions, and the environment as well as the training of our employees. |
Health and safety risk |
The health and safety of all our employees, contractors and the public is a key risk given the nature of the Company's business.To mitigate the inherent risk, we are committed to creating a culture that views safe working as the only way of working and to reviewing all our processes and procedures to ensure they deliver this. Training is provided to managers to ensure they understand their responsibility for the safety of the employees that they set to work. |
Poeton Industries Limited (Registered number: 00246071) |
Strategic Report |
For The Year Ended 31 December 2023 |
The company continues to actively support the closed defined benefit pension scheme. The directors have confidence that with such ongoing support and consistent approach of the scheme trustees, the timeframe to which the scheme is managed has a stable outlook despite the fluctuations experienced in recent years. |
ON BEHALF OF THE BOARD: |
Poeton Industries Limited (Registered number: 00246071) |
Report of the Directors |
For The Year Ended 31 December 2023 |
The directors present their report with the financial statements of the company for the year ended 31 December 2023. |
PRINCIPAL ACTIVITY |
The principal activity of the company in the year under review was that of surface engineering. |
DIVIDENDS |
Dividends totalling £1,460,000 were paid during the year on the B shares (2022: £435,000). |
RESEARCH AND DEVELOPMENT |
The company continually seeks to develop improved processes for sale and production. The company's accounting policy in respect of research and development expenditure is set out in note 2 to the financial statements. |
EVENTS SINCE THE END OF THE YEAR |
Information relating to events since the end of the year is given in the notes to the financial statements. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 January 2023 to the date of this report. |
Other changes in directors holding office are as follows: |
FINANCIAL INSTRUMENTS |
The company's principal financial instruments comprise bank balances, bank loans, trade creditors, trade debtors and inter group loans. The main purpose of these instruments collectively is to raise funds for the company's operations. |
Due to the nature of the financial instruments used by the company there is no significant exposure to price risk. The company's approach to managing other risks applicable to the financial instruments concerned is shown below. |
In respect of loans, these comprise loans from financial institutions. The interest rate on the loan is variable with regular capital repayments. The company manages its liquidity risk by ensuring that expenditure such as that for fixed assets are within the funds generated from operations. |
Inter group loans are interest free with no fixed terms of repayment. |
Trade debtors are managed in respect of credit and cash-flow risk by policies concerning the credit offered to customers and regular monitoring of amounts outstanding for both time and credit limits. |
Trade creditor's liquidity risk is managed by ensuring that sufficient funds are available to meet amounts due. |
OVERSEAS SUBSIDIARY |
Poeton Industries Limited's Polish subsidiary Poeton Polska Sp.z.o.o. has continuted to trade and increase its turnover during the year. |
DISCLOSURE IN THE STRATEGIC REPORT |
Information regarding the review of the business and principal risks and uncertainties is shown within the strategic report on page two of the accounts. |
Poeton Industries Limited (Registered number: 00246071) |
Report of the Directors |
For The Year Ended 31 December 2023 |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Strategic Report, the Report of the Directors 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: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
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. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
AUDITORS |
The auditors, Kingscott Dix Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
Report of the Independent Auditors to the Members of |
Poeton Industries Limited |
Opinion |
We have audited the financial statements of Poeton Industries Limited (the 'company') for the year ended 31 December 2023 which comprise the Income Statement, Other Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity and Notes to the Financial Statements, including a summary of 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: |
- | give a true and fair view of the state of the company's affairs as at 31 December 2023 and of its profit for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
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 Auditors' 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 directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
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. |
In connection with our audit of the financial statements, 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 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 the audit: |
- | the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
Report of the Independent Auditors to the Members of |
Poeton Industries Limited |
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 Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page five, 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 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. |
Auditors' 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 a Report of the Auditors 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: |
In assigning the audit engagement team we ensured that collectively they had the appropriate competence and capabilities to identify non-compliance with laws and regulations, highlight areas of the financial statements particularly susceptible to fraud and conduct appropriate additional enquiries where suspicions or weaknesses became evident. |
At the planning stage, we assessed the susceptibility of the entity's financial statements to material misstatement, including how fraud might occur. This involved preliminary planning discussions with management to obtain their assessment of fraud risk, to identify any incidences of fraud during the year and understand the measures and controls they had taken to combat the possibility of fraud. |
Our transaction testing and assessment of controls during the audit provided further evidence as to the validity of this initial assessment with regard to material misstatement and fraud. |
We identified areas of law and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial and sector experience, through discussion with the Directors, and inspection of the Company's regulatory and legal correspondence. The team were briefed with regard to laws and regulations and remained alert to any indication of non-compliance throughout the audit. |
Report of the Independent Auditors to the Members of |
Poeton Industries Limited |
The company is subject to laws and regulations that directly affect the financial statements including legislation covering financial reporting including related companies, distributable profits and taxation and we assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items. In assessing this compliance, we evaluated the appropriateness of accounting policies used and the reasonableness of accounting estimates in the measurement and presentation of profit within the financial statements. |
The company is subject to many other laws and regulations where the consequences of non-compliance could have a material effect on amounts or disclosures in the financial statements, for instance through the imposition of fines or litigation. We identified the following areas as those most likely to have such an effect: Aerospace management standards AS9100, National Aerospace and Defense Contractors Accreditation Program (NADCAP), environmental management standards ISO14001, Occupation health and safety ISO45001, employment laws, GDPR and any other regulations recognising the nature of the company's activities. Audit procedures designed to identify non-compliance with these laws and regulations included enquiry of the Directors and other management and inspection of regulatory and legal correspondence. None of the procedures applied identified actual or suspected non-compliance. |
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. Where an irregularity is non-financial or has not reached a stage where its impact is financial, it is less likely to be identified by auditing procedures. In addition, to the extent that an irregularity involves collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls, there remains a high risk of non-detection. We are not responsible for detecting all instances of non-compliance with laws and regulations and cannot be expected to do so. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
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 a Report of the Auditors 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. |
for and on behalf of |
Chartered Accountants |
and Statutory Auditor |
Goodridge Court |
Goodridge Avenue |
Gloucester |
Gloucestershire |
GL2 5EN |
Poeton Industries Limited (Registered number: 00246071) |
Income Statement |
For The Year Ended 31 December 2023 |
31.12.23 | 31.12.22 |
Notes | £ | £ | £ | £ |
TURNOVER |
Cost of sales |
GROSS PROFIT |
Distribution costs |
Administrative expenses |
4,090,865 | 3,124,223 |
1,863,855 | 471,104 |
Other operating income | 3 |
OPERATING PROFIT | 5 |
Profit/loss on sale of invest | 6 |
1,886,347 | 492,982 |
Interest receivable and similar income |
1,966,898 | 554,134 |
Interest payable and similar expenses | 7 |
Other finance costs | 22 |
88,625 | 92,696 |
PROFIT BEFORE TAXATION |
Tax on profit | 8 | ( |
) |
PROFIT FOR THE FINANCIAL YEAR |
Poeton Industries Limited (Registered number: 00246071) |
Other Comprehensive Income |
For The Year Ended 31 December 2023 |
31.12.23 | 31.12.22 |
Notes | £ | £ |
PROFIT FOR THE YEAR |
OTHER COMPREHENSIVE INCOME |
Actuarial (losses) / gains | ( |
) |
Return on plan assets (excluding | ( |
) |
interest income) |
Exchange gains and losses |
Income tax relating to components of other comprehensive income |
( |
) |
( |
) |
OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
Poeton Industries Limited (Registered number: 00246071) |
Statement of Financial Position |
31 December 2023 |
31.12.23 | 31.12.22 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 10 |
Tangible assets | 11 |
Investments | 12 |
CURRENT ASSETS |
Stocks | 13 |
Debtors | 14 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 15 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
16 |
( |
) |
( |
) |
PROVISIONS FOR LIABILITIES | 20 | ( |
) | ( |
) |
PENSION LIABILITY | 22 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 21 |
Retained earnings |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
Poeton Industries Limited (Registered number: 00246071) |
Statement of Changes in Equity |
For The Year Ended 31 December 2023 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 January 2022 |
Changes in equity |
Total comprehensive income | - |
Dividends | - | ( |
) | ( |
) |
Balance at 31 December 2022 |
Changes in equity |
Total comprehensive income | - |
Dividends | - | ( |
) | ( |
) |
Balance at 31 December 2023 |
Poeton Industries Limited (Registered number: 00246071) |
Notes to the Financial Statements |
For The Year Ended 31 December 2023 |
1. | STATUTORY INFORMATION |
Poeton Industries Limited is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Financial Reporting Standard 102 - reduced disclosure exemptions |
The company has taken advantage of the following disclosure exemption in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland": |
• | the requirements of Section 7 Statement of Cash Flows. |
Preparation of consolidated financial statements |
The financial statements contain information about Poeton Industries Limited as an individual company and do not contain consolidated financial information as the parent of a group. The company is exempt under Section 401 of the Companies Act 2006 from the requirements to prepare consolidated financial statements as it and its subsidiary undertakings are included by full consolidation in the consolidated financial statements of its parent, Poeton Holdings Limited, . |
Related party exemption |
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
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. |
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) and the amount of revenue can be measured reliably. |
Rental Income |
Rental income from the Company's sublet of storage facilities.The Company recognises such revenue on a straight line accruals basis. |
Intangible fixed assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
Intangible fixed assets comprise licences which are amortised over their estimated useful life. |
Poeton Industries Limited (Registered number: 00246071) |
Notes to the Financial Statements - continued |
For The Year Ended 31 December 2023 |
2. | ACCOUNTING POLICIES - continued |
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 calculated to write off the cost or valuation of assets less their residual values over their estimated useful lives at the following rates per annum: |
Short leasehold improvements | Over the period of the lease |
Motor vehicles | 25% - 35% of written down value |
Other plant and equipment | 10% - 25% straight line |
Investments in subsidiaries |
Investments in subsidiary undertakings are recognised at cost. |
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 present location and condition. |
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. |
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 statement of financial position 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 trade and other receivables 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. |
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. |
Trade debtors, loans and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as 'loans and receivables'. Loans and receivables are measured at amortised cost using the effective interest method, less any impairment. |
Poeton Industries Limited (Registered number: 00246071) |
Notes to the Financial Statements - continued |
For The Year Ended 31 December 2023 |
2. | ACCOUNTING POLICIES - continued |
Interest is recognised by applying the effective interest rate, except for short-term receivables when the recognition of interest would be immaterial. The effective interest method is a method of calculating the amortised cost of a debt instrument and of allocating the interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the debt instrument to the net carrying amount on initial recognition. |
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. The impairment loss 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 when it transfers the financial asset and substantially all the risks and rewards of ownership to another entity. |
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 trade and other payables, 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 receipts discounted at a market rate of interest. |
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. |
Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade payables 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 they are included in a hedging arrangement. |
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. |
Derecognition of financial liabilities |
Financial liabilities are derecognised when, and only when, the company's obligations are discharged, cancelled, or they expire. |
Poeton Industries Limited (Registered number: 00246071) |
Notes to the Financial Statements - continued |
For The Year Ended 31 December 2023 |
2. | ACCOUNTING POLICIES - continued |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Research and development |
Expenditure on research and development is written off in the year in which it is incurred. |
Hire purchase and operating leases |
Assets that are held by Company under leases which transfer to the Company substantially all the risks and rewards of ownership are classified as being held under finance leases. Leases which do not transfer substantially all the risks and rewards of ownership to the Company are classified as operating leases. |
Assets held under finance leases are initially recognised as assets of the Company at their fair value at the inception of the lease or, if lower, at the present value of the minimum lease payments. The corresponding liability to the lessor is included in the statement of financial position as a finance lease obligation. Lease payments are apportioned between finance expenses and reduction of the lease obligation so as to achieve a constant rate of interest on the remaining balance of the liability. Finance expenses are recognised immediately in profit or loss, unless they are directly attributable to qualifying assets, in which case they are capitalised. Contingent rentals are recognised as expenses in the period in which they are incurred. |
Operating lease payments are recognised as an expense on a straight-line basis over the lease term, except where another systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed. Contingent rentals arising under operating leases are recognised as an expense in the period in which they are incurred. |
In the event that lease incentives are received to enter into operating leases, such incentives are |
recognised as a liability. The aggregate benefit of incentives is recognised as a reduction of rental |
expense on a straight-line basis, except where another systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed. |
Pension costs and other post-retirement benefits |
The cost of providing retirement pensions and related benefits is charged to the profit and loss account over the periods benefiting from the employee's services. Any differences between the charge to the profit and loss account and the contributions paid to the schemes is shown as an asset or liability in the balance sheet. |
Warranty provision |
The company provides for the anticipated costs of rectification work on services provided, based upon experience. |
Poeton Industries Limited (Registered number: 00246071) |
Notes to the Financial Statements - continued |
For The Year Ended 31 December 2023 |
2. | ACCOUNTING POLICIES - continued |
Agent companies |
Poeton (Cardiff) Limited, Poeton (Gloucester) Limited and Poeton Aptec Limited act as agents for Poeton Industries Limited and do not trade on their own account. The accounts of Poeton Industries Limited include the trade of these agent companies. |
Government grants and private sector grants |
Government grants and private sector grants are recognised based on the accrual model and are measured at the fair value of the asset received or receivable. Grants are classified as relating either to revenue or to assets. Grants relating to revenue are recognised in income over the period in which the related costs are recognised. Grants relating to assets are recognised over the expected useful life of the asset. Where part of a grant relating to an asset is deferred, it is recognised as deferred income. |
3. | OTHER OPERATING INCOME |
31.12.23 | 31.12.22 |
£ | £ |
Rents received |
Other grants receivable |
22,494 | 24,153 |
4. | EMPLOYEES AND DIRECTORS |
31.12.23 | 31.12.22 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
The average number of employees during the year was as follows: |
31.12.23 | 31.12.22 |
Production | 129 | 99 |
Selling and distribution | 16 | 17 |
Administration and management | 49 | 39 |
31.12.23 | 31.12.22 |
£ | £ |
Directors' remuneration |
Directors' pension contributions to money purchase schemes |
Information regarding the highest paid director is as follows: |
31.12.23 | 31.12.22 |
£ | £ |
Emoluments etc |
Pension contributions to money purchase schemes |
Poeton Industries Limited (Registered number: 00246071) |
Notes to the Financial Statements - continued |
For The Year Ended 31 December 2023 |
4. | EMPLOYEES AND DIRECTORS - continued |
The total directors remuneration, including pension costs, paid by both the company and the parent company in the year was £526,681 (2022: £380,332). |
5. | OPERATING PROFIT |
The operating profit is stated after charging: |
31.12.23 | 31.12.22 |
£ | £ |
Depreciation - owned assets |
Loss on disposal of fixed assets |
Auditors' remuneration |
Auditors' remuneration for non audit work |
Vehicle leasing costs |
Rent paid on leased property |
Research and development costs |
6. | EXCEPTIONAL ITEMS |
31.12.23 | 31.12.22 |
£ | £ |
Redundancy and settlement costs | - | (67,570 | ) |
Profit/loss on sale of invest | ( |
) | ( |
) |
(2 | ) | (69,845 | ) |
7. | INTEREST PAYABLE AND SIMILAR EXPENSES |
31.12.23 | 31.12.22 |
£ | £ |
Bank loan interest |
Hire purchase |
Poeton Industries Limited (Registered number: 00246071) |
Notes to the Financial Statements - continued |
For The Year Ended 31 December 2023 |
8. | TAXATION |
Analysis of the tax charge/(credit) |
The tax charge/(credit) on the profit for the year was as follows: |
31.12.23 | 31.12.22 |
£ | £ |
Current tax: |
UK corporation tax |
Prior year overprovision | - | (10,039 | ) |
Total current tax | ( |
) |
Deferred tax: |
Origination and reversal of |
timing differences | ( |
) |
On pension scheme adjustment | 25,120 | 28,500 |
Total deferred tax | ( |
) |
Tax on profit | ( |
) |
Reconciliation of total tax charge/(credit) included in profit and loss |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
31.12.23 | 31.12.22 |
£ | £ |
Profit before tax |
Profit multiplied by the standard rate of corporation tax in the UK of (2022 - |
Effects of: |
Expenses not deductible for tax purposes |
Utilisation of tax losses | ( |
) |
Adjustments to tax charge in respect of previous periods | ( |
) |
Group relief | - | (44,547 | ) |
Loss on disposal of fixed asset investment | - | 432 |
Superdeduction uplift | (542 | ) | (8,849 | ) |
Prior year deferred tax overprovision | (1,644 | ) | 48,234 |
Deferred tax on defined benefit scheme | 25,120 | 28,500 |
Defined benefit pension contributions | (40,200 | ) | (30,401 | ) |
Change in tax rate | 66,278 | - |
Research and development enhanced deduction | (145,500 | ) | - |
Prior year R&D adj | (104,000 | ) | - |
Total tax charge/(credit) | 271,691 | (15,873 | ) |
Poeton Industries Limited (Registered number: 00246071) |
Notes to the Financial Statements - continued |
For The Year Ended 31 December 2023 |
8. | TAXATION - continued |
Tax effects relating to effects of other comprehensive income |
31.12.23 |
Gross | Tax | Net |
£ | £ | £ |
Actuarial (losses) / gains | ( |
) | 25,250 | (75,750 | ) |
Return on plan assets (excluding | (27,750 | ) | 83,250 |
interest income) |
Exchange gains and losses |
10,000 | (2,500 | ) | 7,500 |
31.12.22 |
Gross | Tax | Net |
£ | £ | £ |
Actuarial (losses) / gains | (136,420 | ) | 581,580 |
Return on plan assets (excluding | ( |
) | 92,340 | (393,660 | ) |
interest income) |
Exchange gains and losses |
232,000 | (44,080 | ) | 187,920 |
9. | DIVIDENDS |
31.12.23 | 31.12.22 |
£ | £ |
B shares of £1 each |
Interim |
10. | INTANGIBLE FIXED ASSETS |
Licences |
£ |
COST |
At 1 January 2023 |
and 31 December 2023 |
AMORTISATION |
At 1 January 2023 |
and 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
Poeton Industries Limited (Registered number: 00246071) |
Notes to the Financial Statements - continued |
For The Year Ended 31 December 2023 |
11. | TANGIBLE FIXED ASSETS |
Assets |
under | Plant & | Motor |
construction | equipment | vehicles | Totals |
£ | £ | £ | £ |
COST |
At 1 January 2023 |
Additions |
Disposals | ( |
) | ( |
) |
At 31 December 2023 |
DEPRECIATION |
At 1 January 2023 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) |
At 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
12. | FIXED ASSET INVESTMENTS |
Shares in |
group |
undertakings |
£ |
COST |
At 1 January 2023 |
Disposals | ( |
) |
At 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
Poeton Industries Limited (Registered number: 00246071) |
Notes to the Financial Statements - continued |
For The Year Ended 31 December 2023 |
12. | FIXED ASSET INVESTMENTS - continued |
The company's investments at the Statement of Financial Position date in the share capital of companies include the following: |
Registered office: Eastern Avenue, Gloucester. GL4 3DN. United Kingdom. |
Nature of business: |
% |
Class of shares: | holding |
31.12.23 | 31.12.22 |
£ | £ |
Aggregate capital and reserves |
The cost of this investment was £28,610. |
Registered office: Eastern Avenue, Gloucester. GL4 3DN. United Kingdom. |
Nature of business: |
% |
Class of shares: | holding |
31.12.23 | 31.12.22 |
£ | £ |
Aggregate capital and reserves |
The cost of this investment was £5,000. |
Registered office: Eastern Avenue, Gloucester. GL4 3DN. United Kingdom. |
Nature of business: |
% |
Class of shares: | holding |
31.12.23 | 31.12.22 |
£ | £ |
Aggregate capital and reserves |
The cost of this investment was £100. |
Registered office: Jasionka 954, Poland |
Nature of business: |
% |
Class of shares: | holding |
31.12.23 | 31.12.22 |
£ | £ |
Aggregate capital and reserves | ( |
) | ( |
) |
Loss for the year | ( |
) | ( |
) |
The cost of this investment was £51,245. |
Poeton Industries Limited (Registered number: 00246071) |
Notes to the Financial Statements - continued |
For The Year Ended 31 December 2023 |
13. | STOCKS |
31.12.23 | 31.12.22 |
£ | £ |
Raw materials and consumables |
14. | DEBTORS |
31.12.23 | 31.12.22 |
£ | £ |
Amounts falling due within one year: |
Trade debtors |
Other debtors |
Prepayments and accrued income |
Amounts falling due after more than one year: |
Amounts owed by group undertakings |
Aggregate amounts |
15. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31.12.23 | 31.12.22 |
£ | £ |
Bank loans and overdrafts (see note 17) |
Other loans (see note 17) |
Hire purchase contracts (see note 18) |
Trade creditors |
Amounts owed to group undertakings |
Corporation tax |
Social security and other taxes |
Accruals and deferred income |
16. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
31.12.23 | 31.12.22 |
£ | £ |
Bank loans (see note 17) |
Other loans (see note 17) |
Hire purchase contracts (see note 18) |
Poeton Industries Limited (Registered number: 00246071) |
Notes to the Financial Statements - continued |
For The Year Ended 31 December 2023 |
17. | LOANS |
An analysis of the maturity of loans is given below: |
31.12.23 | 31.12.22 |
£ | £ |
Amounts falling due within one year or on demand: |
Bank loans |
Other loans |
Amounts falling due between one and two years: |
Bank loans |
Other loans | 141,470 |
Amounts falling due between two and five years: |
Bank loans |
18. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Hire purchase contracts |
31.12.23 | 31.12.22 |
£ | £ |
Net obligations repayable: |
Within one year |
Between one and five years |
Non-cancellable operating | leases |
31.12.23 | 31.12.22 |
£ | £ |
Within one year |
Between one and five years |
In more than five years |
Poeton Industries Limited (Registered number: 00246071) |
Notes to the Financial Statements - continued |
For The Year Ended 31 December 2023 |
18. | LEASING AGREEMENTS - continued |
Of the total minimum lease payments shown above only the following are the commitments arising outside of the group. |
31.12.23 | 31.12.22 |
£ | £ |
Within one year | 44,475 | 25,740 |
Between one and five years | 64,095 | 58,472 |
In more than five years | 14,000 | 16,000 |
122,570 | 98,212 |
19. | SECURED DEBTS |
The following secured debts are included within creditors: |
31.12.23 | 31.12.22 |
£ | £ |
Bank loans |
Hire purchase contracts | 20,139 | 34,598 |
The bank loan is secured by a fixed and floating charge over the assets of the Company. CBIL loans are secured by the UK Government. All loans were repaid in full during the year. |
Hire purchase liabilities are secured over the asset to which they relate. |
20. | PROVISIONS FOR LIABILITIES |
31.12.23 | 31.12.22 |
£ | £ |
Deferred tax | 284,658 | 254,663 |
Other provisions | 296,220 | - |
Deferred |
tax |
£ |
Balance at 1 January 2023 |
Provided during year |
Accelerated capital allowances |
Balance at 31 December 2023 |
Poeton Industries Limited (Registered number: 00246071) |
Notes to the Financial Statements - continued |
For The Year Ended 31 December 2023 |
21. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 31.12.23 | 31.12.22 |
value: | £ | £ |
A | £1 | 3,900 | 3,900 |
B | £1 | 22,100 | 22,100 |
26,000 | 26,000 |
22. | EMPLOYEE BENEFIT OBLIGATIONS |
The company operates the following pension schemes:- |
Poeton Pension Scheme | Defined benefit scheme |
Poeton Group Flexible Retirement Plan | Defined contribution scheme |
The defined benefit scheme is self administered and funded to cover future pension liabilities in respect of service up to the balance sheet date. The scheme is subject to an independent valuation at least every three years by a qualified actuary. The employer's contributions paid into the pension schemes during the year were as follows: |
Poeton Pension Scheme | £160,800 | (2022: £160,003) |
Poeton Group Flexible Retirement Plan | £168,978 | (2022: £159,908) |
The last actuarial valuation for the defined benefit scheme was assessed in accordance with the advice of a professionally qualified actuary and was finalised in March 2023 in respect of the year ended 31 December 2021. |
The defined benefit scheme was closed to new members in April 2001. On 30 September 2002, the scheme closed and its members ceased to accrue benefit in respect of service from this date. Employed members were transferred to the Poeton Occupational Pension Scheme, with effect from 1 September 2006 this occupational scheme was transferred to a Group Flexible Retirement Plan (Group Personal Pension Plan), both of these schemes are defined contribution. |
The amounts recognised in profit or loss are as follows: |
Defined benefit |
pension plans |
31.12.23 | 31.12.22 |
£ | £ |
Current service cost |
Interest cost on net defined liability | 129,000 | 67,000 |
Past service cost |
129,000 | 67,000 |
Actual return on plan assets | ( |
) |
Poeton Industries Limited (Registered number: 00246071) |
Notes to the Financial Statements - continued |
For The Year Ended 31 December 2023 |
22. | EMPLOYEE BENEFIT OBLIGATIONS - continued |
Changes in the present value of the defined benefit obligation are as follows: |
Defined benefit |
pension plans |
31.12.23 | 31.12.22 |
£ | £ |
Opening defined benefit obligation | 2,786,397 |
Interest cost |
Actuarial losses/(gains) | ( |
) |
Benefits paid (including |
expenses) | ( |
) | ( |
) |
Changes in the fair value of scheme assets are as follows: |
Defined benefit |
pension plans |
31.12.23 | 31.12.22 |
£ | £ |
Opening fair value of scheme assets | 2,564,176 | 3,045,176 |
Contributions by employer |
Interest income on plan assets | 122,000 | 57,000 |
Benefits paid | (192,000 | ) | (212,000 | ) |
Return on plan assets (excluding interest income) |
111,000 |
(486,000 |
) |
The amounts recognised in other comprehensive income are as follows: |
Defined benefit |
pension plans |
31.12.23 | 31.12.22 |
£ | £ |
Return on plan assets (excluding interest income) |
111,000 |
(486,000 |
) |
Total actuarial gains / (losses) | ( |
) |
Deferred tax on actuarial gains / (losses) | (2,500 | ) | (44,080 | ) |
7,500 | 187,920 |
Poeton Industries Limited (Registered number: 00246071) |
Notes to the Financial Statements - continued |
For The Year Ended 31 December 2023 |
22. | EMPLOYEE BENEFIT OBLIGATIONS - continued |
The major categories of scheme assets as a percentage of total scheme assets are as follows: |
Defined benefit |
pension plans |
31.12.23 | 31.12.22 |
Equities | 44% | 59% |
Bonds | 35% | 20% |
Other | 21% | 21% |
100% | 100% |
PENSION LIABILITY |
31.12.23 | 31.12.22 |
£ | £ |
Closing present value of obligation | 2,824,397 | 2,786,400 |
Closing fair value of plan assets | 2,765,976 | 2,564,179 |
58,421 | 222,221 |
Deferred tax thereon | 14,750 | 42,370 |
Pension liability | 43,671 | 179,851 |
Principal actuarial assumptions at the balance sheet date (expressed as weighted averages): |
31.12.23 | 31.12.22 |
Discount rate |
Price inflation (CPI) |
Pension increases |
23. | CONTINGENT LIABILITIES |
The company is party to a cross guarantee to support group borrowing. At 31 December 2023 the contingent liability amounted to £nil (2022 : £184,874). |
24. | CAPITAL COMMITMENTS |
31.12.23 | 31.12.22 |
£ | £ |
Contracted but not provided for in the |
financial statements |
25. | POST BALANCE SHEET EVENTS |
On 8 April 2024, 100% of the share capital of the immediate parent company AT Poeton Limited was acquired by Poeton Holdings Limited, a company incorporated in England and Wales in November 2023. |
From this date, Mr A R Poeton ceased to be a director and ultimate controlling party of the Company. |
The ultimate controlling party of Poeton Industries Limited, by reason of his majority shareholding of the ultimate parent company Poeton Holdings Limited, is Mr J A Poeton. |
Poeton Industries Limited (Registered number: 00246071) |
Notes to the Financial Statements - continued |
For The Year Ended 31 December 2023 |
26. | CONSOLIDATED GROUP ACCOUNTS |
Information regarding the consolidated accounts of AT Poeton Limited can be obtained from its registered office. |