Company registration number 06679978 (England and Wales)
PURE GENIUS HOLDINGS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
PURE GENIUS HOLDINGS LIMITED
COMPANY INFORMATION
Directors
Mr D M Gilbertson
Mr J E Selby
Mr N C Atkins
Company number
06679978
Registered office
Diva Innovation Centre
Crompton Way
Crawley
West Sussex
RH10 9QR
Auditor
Sumer Audit
5 Peveril Court
6-8 London Road
Crawley
West Sussex
RH10 8JE
PURE GENIUS HOLDINGS LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2
Directors' responsibilities statement
3
Independent auditor's report
4 - 6
Group statement of comprehensive income
7
Group statement of financial position
8
Company statement of financial position
9
Group statement of changes in equity
10
Company statement of changes in equity
11
Group statement of cash flows
12
Notes to the financial statements
13 - 29
PURE GENIUS HOLDINGS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

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

Review of the business

Revenue in 2023 was marginally ahead of 2022 at £27,949k, compared to the previous year’s £27,731k.

 

With increased stability in exchange rate markets, EBITDA returned to expected levels.

 

The rate of inflation continued to have a significant effect, not just on our results, but on those of our customers too.

Leading to higher-than-expected costs, specifically staff costs & bad debts. Where possible, the impact of these increases have been partially mitigated by savings in other areas & price increases.

Principal risks and uncertainties

Currency risks

The group trades globally, in multiple currencies, and is therefore exposed to risks associated with changes in

exchange rates. At times, these risks are minimised through the use of forward exchange contracts.

 

Legislative risks

Due to the international nature of our group, World events & the UK’s trade agreements with the rest of the world continue to have an impact on our customers & supply chain.

 

Inflation & Interest Rates

The continuing high levels of inflation and interest rates continue to pose a risk to the group. Where possible, our

increases in costs are recovered either through efficiency improvements, or by changes in our pricing.

Key performance indicators

The group uses a range of financial performance measures to monitor the management of the business effectively; the most significant of these are the key performance indicators (KPIs).

The KPIs on operations for the year ended 31 December 2023, with comparatives for the prior two financial years, are set out below:

 

2023

2022

2021

Turnover (£’000)

27,949

27,731

23,244

Gross profit (£’000)

8,073

7,409

6,183

Gross margin (%)

28.9

26.7

26.6

EBITDA (£’000)

1,698

1,292

1,877

On behalf of the board

Mr N C Atkins
Director
22 August 2024
PURE GENIUS HOLDINGS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -

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

Principal activities

The company's principal activity was that of a holding company. The principal activities of the group were the supply of speciality papers, technology, printing consumables, commercial printing equipment and related activities. The group has branches in the European Union.

Results and dividends

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

Ordinary dividends paid during the year amounted to £276,060 (2022 - £576,061). The directors propose a final dividend of £45 per ordinary A share, £3.89 per ordinary B share and £0.65 per ordinary C share in respect to the current financial period.

Directors

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

Mr D M Gilbertson
Mr J E Selby
Mr N C Atkins
Auditor

The auditors Sumer Audit are deemed to be reappointed under section 487(2) of the Companies Act 2006.

Matters covered in the strategic report

The truegroup has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the group's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of financial instruments, principal risks and uncertainties and future developments.

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.

On behalf of the board
Mr N C Atkins
Director
22 August 2024
PURE GENIUS HOLDINGS LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -

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.

PURE GENIUS HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF PURE GENIUS HOLDINGS LIMITED
- 4 -
Opinion

We have audited the financial statements of Pure Genius Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023 which comprise 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 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 FRS 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:

PURE GENIUS HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF PURE GENIUS HOLDINGS 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.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

 

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:

 

knowledge of any actual, suspected or alleged fraud; and

 

As a result of these procedures, we considered the opportunities and incentives that may exist within the company for fraud. We are also required to perform specific procedures to respond to the risk of management override. As a result of performing the above, we identified the following areas as those most likely to have an impact on the financial statements: employment law, the valuation of freehold properties and compliance with the UK Companies Act.

PURE GENIUS HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF PURE GENIUS HOLDINGS LIMITED
- 6 -

In addition to the above, our procedures to respond to risks identified included the following:

 

 

Due to the inherent limitations of an audit, there is an unavoidable risk that some material misstatements in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISAs (UK). For instance, the further removed non-compliance is from the events and transactions reflected in the financial statements, the less likely the auditor is to become aware of it or to recognise the non-compliance.

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.

Robert Dowling FCA (Senior Statutory Auditor)
For and on behalf of Sumer Audit
22 August 2024
Chartered Accountants
Statutory Auditor
Crawley
Sumer Audit is the trading name of Sumer Auditco Limited
PURE GENIUS HOLDINGS LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 7 -
2023
2022
Notes
£
£
Revenue
3
27,948,568
27,730,920
Cost of sales
(19,875,617)
(20,321,471)
Gross profit
8,072,951
7,409,449
Distribution costs
(1,355,703)
(1,141,550)
Administrative expenses
(5,622,686)
(5,606,699)
Other operating expenses
(2,125)
(8,500)
Operating profit
4
1,092,437
652,700
Investment income
8
84,234
82,350
Finance costs
9
(322,696)
(183,824)
Profit before taxation
853,975
551,226
Tax on profit
10
(295,598)
(249,633)
Profit for the financial year
558,377
301,593
Other comprehensive income
Revaluation of property, plant and equipment
72,004
178,850
Currency translation (loss)/gain taken to retained earnings
(4,419)
14,370
Tax relating to other comprehensive income
(18,001)
(44,713)
Total comprehensive income for the year
607,961
450,100
Profit for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.

The Statement of Comprehensive Income has been prepared on the basis that all operations are continuing operations.

PURE GENIUS HOLDINGS LIMITED
GROUP STATEMENT OF FINANCIAL POSITION
AS AT
31 DECEMBER 2023
31 December 2023
- 8 -
2023
2022
Notes
£
£
£
£
Non-current assets
Goodwill
12
710,884
1,202,286
Property, plant and equipment
13
11,095,289
7,976,775
11,806,173
9,179,061
Current assets
Inventories
16
3,481,900
4,202,084
Trade and other receivables
17
7,260,331
7,103,765
Cash and cash equivalents
1,469,029
2,275,214
12,211,260
13,581,063
Current liabilities
18
(7,962,778)
(9,609,129)
Net current assets
4,248,482
3,971,934
Total assets less current liabilities
16,054,655
13,150,995
Non-current liabilities
19
(8,358,156)
(5,823,398)
Provisions for liabilities
Provisions
21
45,183
45,183
Deferred tax liability
22
1,331,882
1,294,881
(1,377,065)
(1,340,064)
Net assets
6,319,434
5,987,533
Equity
Called up share capital
24
100
100
Revaluation reserve
4,406,615
4,352,612
Retained earnings
1,912,719
1,634,821
Total equity
6,319,434
5,987,533
The financial statements were approved by the board of directors and authorised for issue on 22 August 2024 and are signed on its behalf by:
22 August 2024
Mr N C Atkins
Director
Company registration number 06679978 (England and Wales)
PURE GENIUS HOLDINGS LIMITED
COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2023
31 December 2023
- 9 -
2023
2022
Notes
£
£
£
£
Non-current assets
Investments
14
3,514,373
3,514,373
Current assets
Trade and other receivables
17
2,041,867
2,041,867
Cash and cash equivalents
5,178
1,205
2,047,045
2,043,072
Current liabilities
18
(2,364,383)
(1,842,214)
Net current (liabilities)/assets
(317,338)
200,858
Total assets less current liabilities
3,197,035
3,715,231
Non-current liabilities
19
(3,087,950)
(3,312,532)
Net assets
109,085
402,699
Equity
Called up share capital
24
100
100
Retained earnings
108,985
402,599
Total equity
109,085
402,699

As permitted by s408 Companies Act 2006, the company has not presented its own income statement and related notes. The company’s loss for the year was £17,554 (2022 - £42,585 loss).

The financial statements were approved by the board of directors and authorised for issue on 22 August 2024 and are signed on its behalf by:
22 August 2024
Mr N C Atkins
Director
Company Registration No. 06679978
PURE GENIUS HOLDINGS LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
Share capital
Revaluation reserve
Retained earnings
Total
Notes
£
£
£
£
Balance at 1 January 2022
100
4,218,475
1,894,919
6,113,494
Year ended 31 December 2022:
Profit for the year
-
-
301,593
301,593
Other comprehensive income:
Revaluation of property, plant and equipment
-
178,850
-
178,850
Currency translation differences
-
-
14,370
14,370
Tax relating to other comprehensive income
-
(44,713)
-
0
(44,713)
Total comprehensive income for the year
-
134,137
315,963
450,100
Dividends
11
-
-
(576,061)
(576,061)
Balance at 31 December 2022
100
4,352,612
1,634,821
5,987,533
Year ended 31 December 2023:
Profit for the year
-
-
558,377
558,377
Other comprehensive income:
Revaluation of property, plant and equipment
-
72,004
-
72,004
Currency translation differences
-
-
(4,419)
(4,419)
Tax relating to other comprehensive income
-
(18,001)
-
0
(18,001)
Total comprehensive income for the year
-
54,003
553,958
607,961
Dividends
11
-
-
(276,060)
(276,060)
Balance at 31 December 2023
100
4,406,615
1,912,719
6,319,434
PURE GENIUS HOLDINGS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
Share capital
Retained earnings
Total
Notes
£
£
£
Balance at 1 January 2022
100
1,021,246
1,021,346
Year ended 31 December 2022:
Loss and total comprehensive income for the year
-
(42,586)
(42,586)
Dividends
11
-
(576,061)
(576,061)
Balance at 31 December 2022
100
402,599
402,699
Year ended 31 December 2023:
Loss and total comprehensive income for the year
-
(17,554)
(17,554)
Dividends
11
-
(276,060)
(276,060)
Balance at 31 December 2023
100
108,985
109,085
PURE GENIUS HOLDINGS LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 12 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
29
1,674,293
1,115,744
Interest paid
(322,696)
(183,824)
Income taxes paid
(481,751)
(291,200)
Net cash inflow from operating activities
869,846
640,720
Investing activities
Purchase of property, plant and equipment
(3,180,933)
(146,122)
Proceeds on disposal of property, plant and equipment
18,472
500
Interest received
4,495
5,678
Net cash used in investing activities
(3,157,966)
(139,944)
Financing activities
Repayment of borrowings
(224,582)
(250,003)
Net movement on invoice financing facility
(859,148)
1,685,359
Proceeds from new bank loans
3,000,000
-
Repayment of bank loans
(153,856)
(948,713)
Payment of finance leases obligations
-
(3,530)
Dividends paid to equity shareholders
(276,060)
(576,061)
Net cash generated from/(used in) financing activities
1,486,354
(92,948)
Net (decrease)/increase in cash and cash equivalents
(801,766)
407,828
Cash and cash equivalents at beginning of year
2,275,214
1,853,016
Effect of foreign exchange rates
(4,419)
14,370
Cash and cash equivalents at end of year
1,469,029
2,275,214
PURE GENIUS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 13 -
1
Accounting policies
Company information

Pure Genius Holdings Limited (“the company”) is a limited company domiciled and incorporated in England and Wales. The registered office is Diva Innovation Centre, Crompton Way, Crawley, West Sussex, RH10 9QR.

1.1
Accounting convention

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

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £1.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties. 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:

 

1.2
Basis of consolidation

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 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.

 

The consolidated financial statements incorporate those of Pure Genius Holdings Limited and all of its subsidiaries (i.e. entities that the group controls through its power to govern the financial and operating policies so as to obtain economic benefits).

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.

PURE GENIUS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 14 -
1.3
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, The directors have considered relevant information, including the group's principal risks and uncertainties, the annual budget, forecast future cash flows and the impact of subsequent events in making their assessment. Based on these assessments and having regard to the resources available to the group, the directors have concluded that there is no material uncertainty and that they can continue to adopt the going concern basis in preparing the annual report and financial statements.

1.4
Revenue

Revenue is recognised at the fair value of the consideration received or receivable for goods 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), 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.

1.5
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.

 

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.

1.6
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

Amortisation 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:

Patents and trademarks
25% straight line
1.7
Property, plant and equipment

Property, plant and equipment 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:

Freehold land and buildings
Revaluation model - land not depreciated
Leasehold land and buildings
25% straight line
Plant and equipment
15-20% diminishing value and 25% straight line
Fixtures and fittings
20% diminishing value and 25% straight line
Motor vehicles
20-25% diminishing value and 25% straight line
PURE GENIUS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 15 -

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

Properties whose fair value can be measured reliably are held under the revaluation model and are carried at a revalued amount, being their fair value at the date of valuation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. The fair value of the land and buildings is usually considered to be their market value. Revaluations are made with sufficient regularity to ensure that the carrying amount does not differ materially from that which would be determined using fair value at the end of the reporting period.

1.8
Non-current 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.

1.9
Impairment of non-current 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.

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.

1.10
Inventories

Inventories 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 inventories to their present location and condition.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of inventories 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.

1.11
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand and deposits held at call with banks.

1.12
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.

PURE GENIUS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 16 -

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.

 

The group enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable, loans from banks and loans from related parties.

Debt instruments like loans and other accounts receivable and payable are initially measured at present value of the future payments and subsequently at amortised cost using the effective interest method; Debt instruments that are payable or receivable within one year are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received.

 

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. Financial liabilities are derecognised when, and only when, the group’s obligations are discharged, cancelled, or they expire.

1.13
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.

1.14
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.

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.

1.15
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.

1.16
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 non-current assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

PURE GENIUS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 17 -
1.17
Retirement benefits

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

1.18
Leases

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

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

1.19
Foreign exchange

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

2
Judgements and key sources of estimation uncertainty

In the application of the 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.

Key sources of estimation uncertainty

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

Inventories

The directors have made key assumptions in determining the appropriate impairment provision against inventory items held at the end of the reporting period, as detailed in note 1.10. The inventory provision was £200,818 (2022: £213,714) as at 31 December 2023.

Impairment of investments

At each reporting date, management consider the carrying value of the investment in subsidiaries based on their results for the year and other information available to them at the time of assessment. If the fair value is less than the carrying value of the investment, then the investment is impaired to bring the carrying value down to its fair value.

Freehold property valuation

Freehold properties are reviewed annually using the fair value method. The fair value is determined by reference to third party valuations and the outlook of the commercial property market in the directors opinion, as detailed in note 13.

PURE GENIUS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 18 -
3
Revenue

An analysis of the group's revenue is as follows:

2023
2022
£
£
Revenue analysed by class of business
Sale of goods
27,948,568
27,730,920
2023
2022
£
£
Revenue analysed by geographical market
United Kingdom
21,184,636
21,219,454
Europe
6,653,531
6,377,872
Rest of the World
110,401
133,594
27,948,568
27,730,920
2023
2022
£
£
Other revenue
Interest income
84,234
82,350
4
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange (gains)/losses
(8,118)
105,193
Depreciation of owned property, plant and equipment
113,826
147,562
Amortisation of intangible assets
491,402
491,402
Inventories impairment losses recognised or reversed
(22,116)
(11,570)
Operating lease charges
136,350
239,381
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
17,548
17,533
Audit of the financial statements of the company's subsidiaries
30,939
30,405
48,487
47,938
PURE GENIUS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 19 -
6
Employees

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

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
Sales
24
24
-
-
Administration
33
34
-
-
Production
7
9
-
-
Warehouse
10
9
-
-
Total
74
76
-
0
-
0

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
2,858,742
2,743,035
-
0
-
0
Social security costs
309,097
312,131
-
-
Pension costs
72,500
56,141
-
0
-
0
3,240,339
3,111,307
-
0
-
0
7
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
205,704
179,861
Company pension contributions to defined contribution schemes
45,858
23,374
251,562
203,235
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
124,955
105,331
Company pension contributions to defined contribution schemes
32,500
19,624
PURE GENIUS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
7
Directors' remuneration
(Continued)
- 20 -

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2022 - 2).

 

During the year, the only key management personnel were the directors.

8
Investment income
2023
2022
£
£
Interest income
Interest on bank deposits
4,495
5,677
Other interest income
79,739
76,673
Total income
84,234
82,350
9
Finance costs
2023
2022
£
£
Interest on bank overdrafts and loans
234,803
108,999
Interest on invoice finance arrangements
85,678
48,030
Other interest on financial liabilities
-
10
Other interest
2,215
26,785
Total finance costs
322,696
183,824
10
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
276,598
254,368
Adjustments in respect of prior periods
-
0
(435)
Total current tax
276,598
253,933
Deferred tax
Origination and reversal of timing differences
19,000
(4,300)
Total tax charge
295,598
249,633
PURE GENIUS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
10
Taxation
(Continued)
- 21 -

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

2023
2022
£
£
Profit before taxation
853,975
551,226
Expected tax charge based on the standard rate of corporation tax in the UK of 23.52% (2022: 19.00%)
200,855
104,733
Tax effect of expenses that are not deductible in determining taxable profit
2,544
1,822
Tax effect of income not taxable in determining taxable profit
(11,574)
-
0
Change in unrecognised deferred tax assets
111
-
0
Adjustments in respect of prior years
-
0
(435)
Depreciation on assets not qualifying for tax allowances
48
283
Amortisation on assets not qualifying for tax allowances
115,578
93,366
Effect of overseas tax rates
5,725
39,029
Deferred tax adjustments in respect of prior years
(6,400)
-
0
Rounding
(12,819)
5,995
Other short term timing differences
-
0
7,900
Impact of super-allowance deduction
-
0
(3,060)
Effect of difference in deferred tax rate and current tax rate
1,530
-
0
Taxation charge
295,598
249,633

In addition to the amount charged to the income statement, the following amounts relating to tax have been recognised directly in other comprehensive income:

2023
2022
£
£
Deferred tax arising on:
Revaluation of property
18,001
44,713
11
Dividends
2023
2022
Recognised as distributions to equity holders:
£
£
Final paid
276,060
576,061
PURE GENIUS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 22 -
12
Intangible fixed assets
Group
Goodwill
Patents and trademarks
Total
£
£
£
Cost
At 1 January 2023 and 31 December 2023
5,411,932
4,122
5,416,054
Amortisation and impairment
At 1 January 2023
4,209,646
4,122
4,213,768
Amortisation charged for the year
491,402
-
0
491,402
At 31 December 2023
4,701,048
4,122
4,705,170
Carrying amount
At 31 December 2023
710,884
-
0
710,884
At 31 December 2022
1,202,286
-
0
1,202,286
The company had no intangible fixed assets at 31 December 2023 or 31 December 2022.
13
Property, plant and equipment
Group
Freehold land and buildings
Leasehold land and buildings
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
£
Cost or valuation
At 1 January 2023
7,690,550
587,740
1,221,121
672,283
263,515
10,435,209
Additions
2,987,446
-
0
5,588
187,899
-
0
3,180,933
Disposals
-
0
-
0
-
0
-
0
(25,350)
(25,350)
Revaluation
72,004
-
0
-
0
-
0
-
0
72,004
At 31 December 2023
10,750,000
587,740
1,226,709
860,182
238,165
13,662,796
Depreciation and impairment
At 1 January 2023
-
0
587,536
1,008,984
646,827
215,087
2,458,434
Depreciation charged in the year
-
0
202
62,853
38,377
12,394
113,826
Eliminated in respect of disposals
-
0
-
0
-
0
-
0
(4,753)
(4,753)
At 31 December 2023
-
0
587,738
1,071,837
685,204
222,728
2,567,507
Carrying amount
At 31 December 2023
10,750,000
2
154,872
174,978
15,437
11,095,289
At 31 December 2022
7,690,550
204
212,137
25,456
48,428
7,976,775
The company had no property, plant and equipment at 31 December 2023 or 31 December 2022.
PURE GENIUS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
13
Property, plant and equipment
(Continued)
- 23 -

Freehold land and buildings with a carrying amount of £10,750,000 (2022 - £7,690,550) have been pledged to secure borrowings of the group. The company is not allowed to pledge these assets as security for other borrowings or to sell them to another entity.

Freehold land and buildings with a carrying amount of £10,750,000 has been arrived at on the basis of a valuation carried out in July 2022 by Colliers International, Chartered Surveyors, who are not connected with the company. The valuation was made on an open market value basis by reference to market evidence of transaction prices for similar properties.

 

The directors consider the fair value of the property at the date of the valuation is applicable to the current financial year end and are not aware of any material change between the year end and valuation date.

If revalued assets were stated on an historical cost basis rather than a fair value basis, the total amounts included would have been as follows:

2023
2022
£
£
Group
Cost
5,051,502
2,064,056
14
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
15
-
0
-
0
3,514,373
3,514,373
Movements in non-current investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 January 2023 and 31 December 2023
3,514,373
Carrying amount
At 31 December 2023
3,514,373
At 31 December 2022
3,514,373
PURE GENIUS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 24 -
15
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
Indirect
Craftec Paper Limited
Note 1
Ordinary
0
100.00
CWE Solutions Limited
Note 1
Ordinary
100.00
-
Diva Europe Limited
Note 1
Ordinary
100.00
-
Papergraphics Limited
Note 1
Ordinary
0
100.00
Papergraphics Wide Format Specialist SI.
Note 2
Ordinary
0
100.00
Pure Genius Facilities Management Limited
Note 1
Ordinary
100.00
-
Pure Genius Properties Limited
Note 1
Ordinary
100.00
-
Quality Graphics Zoetermeer B.V.
Note 3
Ordinary
0
100.00

Note 1) Diva Innovation Centre, Crompton Way, Crawley, West Sussex, RH10 9QR, England

 

Note 2) Avinguda de la Costa Brava, 33, Malgrat De Mar, Barcelona, 08380, Spain

 

Note 3) Platinastraat 133, 2718 St Zoetermeer, Holland, Netherlands

16
Inventories
Group
Company
2023
2022
2023
2022
£
£
£
£
Finished goods and goods for resale
3,481,900
4,202,084
-
0
-
0
17
Trade and other receivables
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade receivables
4,267,901
4,131,045
-
0
-
0
Corporation tax recoverable
580,929
554,017
19,035
19,035
Amounts owed by group undertakings
-
-
1,974,014
1,974,014
Other receivables
2,275,910
2,251,364
48,818
48,818
Prepayments and accrued income
133,191
164,939
-
0
-
0
7,257,931
7,101,365
2,041,867
2,041,867
Deferred tax asset (note 22)
2,400
2,400
-
0
-
0
7,260,331
7,103,765
2,041,867
2,041,867

Amounts owed by group undertakings have no terms and are therefore repayable on demand. Whilst the classification as current debtors reflect the contractual nature of the loans, the company does not seek repayment of these loans until the group undertaking is financially able to do so.

PURE GENIUS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 25 -
18
Current liabilities
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans
20
2,234,500
3,006,844
-
0
-
0
Other borrowings
20
245,000
245,001
245,000
245,001
Trade payables
3,990,983
4,386,313
-
0
-
0
Amounts owed to group undertakings
-
0
-
0
2,089,550
1,565,692
Corporation tax payable
143,089
321,330
-
0
-
0
Other taxation and social security
481,091
558,185
-
-
Other payables
29,832
225,999
29,833
31,521
Accruals and deferred income
838,283
865,457
-
0
-
0
7,962,778
9,609,129
2,364,383
1,842,214
19
Non-current liabilities
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
20
5,270,206
2,510,866
-
0
-
0
Other borrowings
20
3,087,950
3,312,532
3,087,950
3,312,532
8,358,156
5,823,398
3,087,950
3,312,532
20
Borrowings
Group
Company
2023
2022
2023
2022
£
£
£
£
Bank loans
7,504,706
5,517,710
-
0
-
0
Other loans
3,332,950
3,557,533
3,332,950
3,557,533
10,837,656
9,075,243
3,332,950
3,557,533
Payable within one year
2,479,500
3,251,845
245,000
245,001
Payable after one year
8,358,156
5,823,398
3,087,950
3,312,532

The bank loan of £7,504,706 (2022 - £5,517,710) above, consists of the following:

 

PURE GENIUS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
20
Borrowings
(Continued)
- 26 -

Included in other loans a balance of £3,332,950 (2022 - £3,557,533) relates to unsecured directors' loan. The loan incurs no interest, and is not subject to a fixed repayment date. The loan may be called at any time by the directors subject to the provision of two years' notice, and only to the extent that the group's cash flows can support the repayment.

21
Provisions for liabilities
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Dilapidation provision
45,183
45,183
-
-
Deferred tax liabilities
22
1,331,882
1,294,881
-
0
-
0
1,377,065
1,340,064
-
0
-
0
Movements on provisions apart from deferred tax liabilities:
Dilapidation provision
Group
£
At 1 January 2023 and 31 December 2023
45,183
22
Deferred taxation

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

Liabilities
Liabilities
Assets
Assets
2023
2022
2023
2022
Group
£
£
£
£
Revaluations
1,291,882
1,273,881
-
-
Accelerated capital allowances
40,000
21,000
-
-
Decelerated capital allowances
-
-
2,400
2,400
1,331,882
1,294,881
2,400
2,400
The company has no deferred tax assets or liabilities.
PURE GENIUS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
22
Deferred taxation
(Continued)
- 27 -
Group
Company
2023
2023
Movements in the year:
£
£
Liability at 1 January 2023
1,292,481
-
Charge to profit or loss
19,000
-
Charge to other comprehensive income
18,001
-
Liability at 31 December 2023
1,329,482
-

The directors have considered the deferred taxation note above and concluded that it is not possible to state the estimated assets and liabilities which will reverse within the next 12 months. This is due to the level of reversal being dependent on events which are not yet know.

23
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
72,500
56,141

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.

24
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of 1p each
10,000
10,000
100
100

The company's share capital consists of class A, B and C ordinary shares, each class of shares carry the right to vote at general meetings. Can also participate in capital distributions and may participate in distribution of dividends (subject to resolution of the board).

During a previous year, the company issued equity-based share options under an Enterprise Management Incentives (EMI) scheme. The options can be exercised only after the 31 March 2016 and was granted to an employee, who is also a director of the company. If the options remain unexercised after a period of fifteen years from the date of the grant or if the option holder ceases employment, the options lapses.

 

No share options were granted, forfeited or exercised in the year and none expired. The number of share options outstanding at the reporting date were 2,500 with a weighted average exercise price of £16.34 being £40,850 in aggregate. No charge has been made in the financial statements on the grounds of immateriality.

PURE GENIUS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 28 -
25
Financial commitments, guarantees and contingent liabilities

A cross guarantee and debenture exists in relation to liabilities owed to National Westminster Bank Plc by Pure Genius Holdings, Pure Genius Facilities Management Limited, Craftec Paper Limited, Papergraphics Limited, Diva Europe Limited, CWE Solutions Limited and Pure Genius Properties Limited. The outstanding liabilities at the year end were £5,481,584 (2022 - £2,636,269).

 

There is also a cross guarantee and debenture in relation to the liabilities due to RBS Invoice Finance Limited by Papergraphics Limited, Diva Europe Limited, Craftec Paper Limited, Pure Genius Facilities Management Limited, Pure Genius Properties Limited and Pure Genius Holdings Limited. The outstanding liabilities at the year end were £2,023,121 (2022 - £2,881,441).

 

Pure Genius Holdings Limited guarantees all outstanding liabilities to which Diva Europe Limited, Craftec Paper Limited, Pure Genius Properties Limited and Pure Genius Facilities Management Limited and shall remain in force until all of the liabilities have been settled. At the financial reporting date the total liabilities outstanding was £11,670,580 (2022 - £8,985,378).

 

Diva Europe Limited, Craftec Paper Limited, Pure Genius Properties Limited, and Pure Genius Facilities Management Limited, all wholly-owned subsidiaries, are exempt from the requirements of Companies Act 2006 relating to audit of its individual company accounts under section 479A of the Companies Act 2006 relating to subsidiary companies.

26
Operating lease commitments
Lessee

Operating lease payments represent rentals payable by the group in respect for assets including its head office (which is now 100% owned), as well as that of its subsidiaries.

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
2022
2023
2022
£
£
£
£
Within one year
84,697
414,082
-
-
Between two and five years
109,446
1,512,126
-
-
In over five years
-
1,595,000
-
-
194,143
3,521,208
-
-
28
Directors' transactions

At the financial reporting date the group was due £88,777 (2022 - £88,697) from the directors. The balance is interest free and considered repayable on demand.

 

At the financial reporting date the group was also due £2,073,216 (2022 - £1,993,477) from the directors. Interest is charged at 4%, resulting in £79,739 (2022 - £76,672) of interest income during the year. The balance is considered repayable on demand.

 

At the financial reporting date the group owed £3,355,667 (2022 - £3,557,533) to the directors. Interest of 1.5% above the BoE base rate is being charged on £nil (2022 - £980,000) of this balance and during the year, interest was paid amounting to £nil (2022 - £25,046). No interest is charged on the remainder of the balance and is considered repayable within 48 months of demand.

PURE GENIUS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 29 -
29
Cash generated from group operations
2023
2022
£
£
Profit for the year after tax
558,377
301,593
Adjustments for:
Taxation charged
295,598
249,633
Finance costs
322,696
183,824
Investment income
(84,234)
(82,350)
Loss on disposal of property, plant and equipment
2,125
8,500
Amortisation and impairment of intangible assets
491,402
491,402
Depreciation and impairment of property, plant and equipment
113,826
147,562
Movements in working capital:
Decrease/(increase) in inventories
720,184
(620,785)
Increase in trade and other receivables
(49,915)
(19,526)
(Decrease)/increase in trade and other payables
(695,766)
455,891
Cash generated from operations
1,674,293
1,115,744
30
Analysis of changes in net debt - group
1 January 2023
Cash flows
Exchange rate movements
31 December 2023
£
£
£
£
Cash at bank and in hand
2,275,214
(801,766)
(4,419)
1,469,029
Borrowings excluding overdrafts
(9,075,243)
(1,762,413)
-
(10,837,656)
(6,800,029)
(2,564,179)
(4,419)
(9,368,627)
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