Company Registration No. 02951564 (England and Wales)
PERFORMANCE PANELS LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED
31 MARCH 2024
Brightfield Business Hub
Bakewell Road
Orton Southgate
Peterborough
Cambridgeshire
PE2 6XU
PERFORMANCE PANELS LIMITED
CONTENTS
Page
Company information
Strategic report
2 - 3
Directors' report
4
Directors' responsibilities statement
5
Independent auditor's report
6 - 9
Statement of income and retained earnings
10
Balance sheet
11
Notes to the financial statements
13 - 25
PERFORMANCE PANELS LIMITED
COMPANY INFORMATION
- 1 -
Directors
BW Baldwyn
CJ Sullivan
JD Thompson
RJ Thompson
Company number
02951564
Registered office
26 Brunel Road
Earlstrees Industrial Estate
Corby
Northamptonshire
NN17 4JW
Auditor
TC Group
Brightfield Business Hub
Bakewell Road
Orton Southgate
Peterborough
Cambridgeshire
PE2 6XU
PERFORMANCE PANELS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 2 -
The directors present the strategic report for the year ended 31 March 2024.
Fair review of the business
The Board of Directors are satisfied with the performance levels achieved in 2023-24 albeit they are slightly down against our projected forecast and expectations 12 months prior.
The business activity was flat which was a by-product of stubborn inflation movement and a reduction in government commitments on public spend. The construction industry has suffered in further delays and cuts to projects which will compound the trading performance going into 24-25.
The business continued its investment plan and commitments with the commissioning of new handling equipment at our distribution facility. This significant investment totalling £650,000 will greatly increase efficiencies and working practices. The environmental impact of this investment has contributed to a cleaner and less carbon intensive processes.
Principal risks and uncertainties
The introduction of a new government would normally bring a re-invigored impetus to business activity. However early signs of this early momentum are certainly showing a reverse of the norm with the current rhetoric and policies being introduced by government.
The continued slow response from the B of E to reduce interest rates to a workable number will slow considerably any potential rebound in business confidence and the firing up of a much-needed UK economy.
The geo-political uncertainty, US Elections all combined with a slowdown in China’s economy will have a knock-on effect to external investment in the local UK economy.
We therefore see a continued uncertainty to forecast any significant growth for 2024-25.
Key performance indicators
The company's key financial and other performance indicators during the year were as follows:
Turnover - £11,489,544 (2023 - £11,553,381)
Gross Profit - £2,009,189 (2023 - £2,118,077)
Profit Before Tax - £120,330 (2023 - £395,959)
The key non-financial indicators are associated with Performance Panels is the ability to maintain its existing customer and supplier base.
PERFORMANCE PANELS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 3 -
Financial instruments
Price risk, credit risk, liquidity risk and cash flow risk
The main risks arising from the group's financial instruments are interest rate risk, exchange risk and liquidity risk. The directors review and agree policies for managing each of these risks which are summarised below. These policies have remained unchanged from previous years.
Interest rate risk
The group finances its operations through a mixture of retained profits, bank borrowings and inter group borrowings. The group's exposure to interest rate fluctuations on its borrowings is managed using fixed and floating facilities.
Exchange rate risk
The group seeks to minimise the foreign exchange risk by minimising the contracts that are entered into in a foreign currency.
Liquidity risk
The group seeks to manage financial risk by ensuring sufficient liquidity is available to meet foreseeable needs and to invest cash assets safely and profitably. The group's policy throughout the year has been to achieve this objective through the day to day involvement of management in business decisions rather than through setting maximum or minimum liquidity ratios.
Future developments and research and developments
We are continuing our drive to understand and implement the benefits of Artificial Intelligence. It is imperative that within the next few years the contribution of AI resources is embedded more into our day-to-day operations to the benefits of our customers, colleagues and stakeholders.
The Group is set to launch new product lines in Q3 of 2024-25. These products will be an expansion of the current markets we serve with further investment into the B2C arena. In combination with the launch, we are investing heavily in further development to enhance the product offerings further.
RJ Thompson
Director
10 September 2024
PERFORMANCE PANELS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 4 -
The directors present their annual report and financial statements for the year ended 31 March 2024.
Principal activities
The principal activity of the company continued to be that of the import and distribution of sheet building materials for use in laboratories, schools and other general contracting applications.
Results and dividends
The results for the year are set out on page 10.
No ordinary dividends were paid. The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
BW Baldwyn
CJ Sullivan
JD Thompson
RJ Thompson
Financial instruments
Details of financial instruments are provided in the strategic report.
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 company’s auditor 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 company’s auditor is aware of that information.
On behalf of the board
RJ Thompson
Director
10 September 2024
PERFORMANCE PANELS LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MARCH 2024
- 5 -
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 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.
PERFORMANCE PANELS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF PERFORMANCE PANELS LIMITED
- 6 -
Opinion
We have audited the financial statements of Performance Panels Limited (the 'company') for the year ended 31 March 2024 which comprise the statement of income and retained earnings, the balance sheet and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the company's affairs as at 31 March 2024 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.
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 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.
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.
PERFORMANCE PANELS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF PERFORMANCE PANELS LIMITED
- 7 -
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
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 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:
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 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 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 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.
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. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
Extent to which the audit was considered capable of detecting irregularities, including fraud
The objectives of our audit, in respect to fraud, are: to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses; and to respond appropriately to fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and its management.
PERFORMANCE PANELS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF PERFORMANCE PANELS LIMITED
- 8 -
Our approach was as follows:
We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial and sector experience, and through discussion with the directors and other management (as required by auditing standards), and discussed with the directors and other management the policies and procedures regarding compliance with laws and regulations;
We considered the legal and regulatory frameworks directly applicable to the financial statements reporting framework (FRS 102 and the Companies Act 2006) and the relevant tax compliance regulations in the UK;
We considered the nature of the industry, the control environment and business performance, including the key drivers for management’s remuneration;
We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit;
We considered the procedures and controls that the company has established to address risks identified, or that otherwise prevent, deter and detect fraud; and how senior management monitors those programmes and controls.
Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Where the risk was considered to be higher, we performed audit procedures to address each identified fraud risk. These procedures included: testing manual journals; reviewing the financial statement disclosures and testing to supporting documentation; performing analytical procedures; and enquiring of management, and were designed to provide reasonable assurance that the financial statements were free from fraud or error.
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. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.
A further description of our responsibilities is available on the Financial Reporting Council's website at: https://www.frc.org.uk/Our-Work/Audit/Audit-and-assurance/Standards-and-guidance/Standards-and-guidance-for-auditors/Auditors-responsibilities-for-audit/Description-of-auditors-responsibilities-for-audit.aspx. This description forms part of our auditor's report.
PERFORMANCE PANELS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF PERFORMANCE PANELS LIMITED
- 9 -
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.
John Grant (Senior Statutory Auditor)
For and on behalf of TC Group
11 September 2024
Office: Peterborough
PERFORMANCE PANELS LIMITED
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 MARCH 2024
- 10 -
2024
2023
Notes
£
£
Turnover
3
11,489,544
11,553,381
Cost of sales
(9,480,355)
(9,435,304)
Gross profit
2,009,189
2,118,077
Distribution costs
(604,377)
(612,440)
Administrative expenses
(1,235,686)
(1,085,830)
Operating profit
4
169,126
419,807
Interest receivable and similar income
8
53
18
Interest payable and similar expenses
9
(48,849)
(23,866)
Profit before taxation
120,330
395,959
Tax on profit
10
(41,721)
(35,439)
Profit for the financial year
78,609
360,520
Retained earnings brought forward
2,056,019
2,545,499
Dividends
11
(850,000)
Retained earnings carried forward
2,134,628
2,056,019
The profit and loss account has been prepared on the basis that all operations are continuing operations.
PERFORMANCE PANELS LIMITED
BALANCE SHEET
AS AT
31 MARCH 2024
31 March 2024
- 11 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
12
182,156
23,759
Current assets
Stocks
13
2,106,967
2,048,818
Debtors
14
3,784,327
3,253,826
Cash at bank and in hand
42,214
26,470
5,933,508
5,329,114
Creditors: amounts falling due within one year
15
(3,907,264)
(3,263,768)
Net current assets
2,026,244
2,065,346
Total assets less current liabilities
2,208,400
2,089,105
Provisions for liabilities
Provisions
17
30,000
30,000
Deferred tax liability
18
43,770
3,084
(73,770)
(33,084)
Net assets
2,134,630
2,056,021
Capital and reserves
Called up share capital
20
2
2
Profit and loss reserves
2,134,628
2,056,019
Total equity
2,134,630
2,056,021
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.
The financial statements were approved by the board of directors and authorised for issue on 10 September 2024 and are signed on its behalf by:
RJ Thompson
Director
Company registration number 02951564 (England and Wales)
PERFORMANCE PANELS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
- 12 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 April 2022
2
2,545,499
2,545,501
Year ended 31 March 2023:
Profit and total comprehensive income
-
360,520
360,520
Dividends
11
-
(850,000)
(850,000)
Balance at 31 March 2023
2
2,056,019
2,056,021
Year ended 31 March 2024:
Profit and total comprehensive income
-
78,609
78,609
Balance at 31 March 2024
2
2,134,628
2,134,630
PERFORMANCE PANELS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
- 13 -
1
Accounting policies
Company information
Performance Panels Limited is a private company limited by shares incorporated in England and Wales. The registered office is 26 Brunel Road, Earlstrees Industrial Estate, Corby, Northamptonshire, NN17 4JW.
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 £.
The financial statements have been prepared under the historical cost convention, [modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.
This 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:
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 26 ‘Share based Payment’: Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
The financial statements of the company are consolidated in the financial statements of See Limited. These consolidated financial statements are available from its registered office, 26 Brunel Road Earlstree Industrial Estate, Corby, Northamptonshire, England, NN17 4JW.
1.2
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
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.
PERFORMANCE PANELS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 14 -
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.
1.4
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Plant and equipment
15-100% straight line
Office equipment
33% straight line
Motor vehicles
20-25% straight line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.5
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
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.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
PERFORMANCE PANELS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 15 -
1.6
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.7
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.8
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 balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
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.
PERFORMANCE PANELS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 16 -
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
PERFORMANCE PANELS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 17 -
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.9
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.10
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
PERFORMANCE PANELS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 18 -
1.11
Provisions
Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company 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.
1.12
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.13
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.14
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
1.15
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
1.16
Trade debtors are subject to an invoice discounting facility whereby an advance is received based upon, and secured upon, trade debtors. The company has retained significant risks and rewards relating to the discounted debts and separate presentation has been adopted whereby the gross debt and corresponding liability in respect of the advance received is shown separately on the Balance Sheet. The interest element of the invoice discounter's charge is recognised as it accrues and is included in the Profit and Loss Account.
PERFORMANCE PANELS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 19 -
2
Judgements and key sources of estimation uncertainty
In the application of the company’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.
3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Sale of panels
11,489,544
11,553,381
2024
2023
£
£
Turnover analysed by geographical market
UK
11,141,054
11,154,497
Europe
348,490
398,884
11,489,544
11,553,381
2024
2023
£
£
Other revenue
Interest income
53
18
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange differences apart from those arising on financial instruments measured at fair value through profit or loss
278
Depreciation of owned tangible fixed assets
22,092
85,139
Profit on disposal of tangible fixed assets
-
(5,956)
Operating lease charges
31,550
23,862
PERFORMANCE PANELS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 20 -
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
9,500
9,500
6
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
9
11
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
428,371
407,112
Social security costs
42,555
36,084
Pension costs
37,553
41,868
508,479
485,064
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
148,700
165,400
Company pension contributions to defined contribution schemes
23,999
28,850
172,699
194,250
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2023 - 2)
PERFORMANCE PANELS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 21 -
8
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
53
18
9
Interest payable and similar expenses
2024
2023
£
£
Interest on invoice finance arrangements
48,849
23,866
10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
1,035
49,775
Deferred tax
Origination and reversal of timing differences
40,686
(14,336)
Total tax charge
41,721
35,439
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:
2024
2023
£
£
Profit before taxation
120,330
395,959
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
30,083
75,232
Tax effect of expenses that are not deductible in determining taxable profit
16,515
120
Group relief
(39,913)
Permanent capital allowances in excess of depreciation
(4,549)
Other permanent differences
(328)
Taxation charge for the year
41,721
35,439
PERFORMANCE PANELS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 22 -
11
Dividends
2024
2023
£
£
Interim paid
850,000
12
Tangible fixed assets
Plant and equipment
Office equipment
Motor vehicles
Total
£
£
£
£
Cost
At 1 April 2023
175,610
17,057
47,518
240,185
Additions
180,489
180,489
Disposals
(17,057)
(17,057)
At 31 March 2024
356,099
47,518
403,617
Depreciation and impairment
At 1 April 2023
175,610
17,057
23,759
216,426
Depreciation charged in the year
10,212
11,880
22,092
Eliminated in respect of disposals
(17,057)
(17,057)
At 31 March 2024
185,822
35,639
221,461
Carrying amount
At 31 March 2024
170,277
11,879
182,156
At 31 March 2023
23,759
23,759
13
Stocks
2024
2023
£
£
Inventory
2,106,967
2,048,818
PERFORMANCE PANELS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 23 -
14
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
1,725,130
1,425,918
Amounts owed by group undertakings
1,869,015
1,780,580
Other debtors
41,030
1
Prepayments and accrued income
5,850
6,250
Accrued income
143,302
41,077
3,784,327
3,253,826
Trade debtors at 31 March 2024 include £1,725,130 (2023: £1,425,918) pledged as security against amounts advanced in respect of the 'with recourse' Invoice Discounting Agreement.
15
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans and overdrafts
16
1,262,211
956,067
Trade creditors
539,705
164,196
Amounts owed to group undertakings
1,766,821
1,577,010
Corporation tax
1,142
49,796
Other taxation and social security
262,037
459,184
Other creditors
5,798
20,555
Accruals and deferred income
69,550
36,960
3,907,264
3,263,768
As at 31 March 2024 there was an unlimited cross composite guarantee structure to Natwest by and for the company and its fellow subsidiaries Rex Bousfield Limited and Inspired Surfaces Limited.
16
Loans and overdrafts
2024
2023
£
£
Bank overdrafts
1,262,211
956,067
Payable within one year
1,262,211
956,067
The bank overdraft is secured by fixed charges over the freehold buildings of the group and fixed and floating charges over other assets.
PERFORMANCE PANELS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 24 -
17
Provisions for liabilities
2024
2023
£
£
Other Provisions
30,000
30,000
Movements on provisions:
£
At 1 April 2023 and 31 March 2024
30,000
18
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
43,770
3,084
2024
Movements in the year:
£
Liability at 1 April 2023
3,084
Charge to profit or loss
40,686
Liability at 31 March 2024
43,770
19
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
37,553
41,868
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
PERFORMANCE PANELS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 25 -
20
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of £1 each
2
2
2
2
21
Ultimate controlling party
The company's immediate parent is See Limited, incorporated in England & Wales.
The most senior parent entity producing publicly available financial statements is THFC Group Limited. These financial statements are available upon request from its registered office address:26 Brunel Road Earlstree Industrial Estate, Corby, Northamptonshire, England, NN17 4JW.
The ultimate controlling party is the Thompson family.
22
Related party transactions
The company has taken advantage of exemption, under the terms of the 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.
2024-03-312023-04-01falseCCH SoftwareCCH Accounts Production 2024.210BW BaldwynCJ SullivanJD ThompsonRJ Thompsonfalsefalse029515642023-04-012024-03-3102951564bus:Director12023-04-012024-03-3102951564bus:Director22023-04-012024-03-3102951564bus:Director32023-04-012024-03-3102951564bus:Director42023-04-012024-03-3102951564bus:RegisteredOffice2023-04-012024-03-31029515642024-03-31029515642022-04-012023-03-3102951564core:RetainedEarningsAccumulatedLosses2022-04-012023-03-3102951564core:RetainedEarningsAccumulatedLosses2023-04-012024-03-3102951564core:RetainedEarningsAccumulatedLosses2023-03-3102951564core:RetainedEarningsAccumulatedLosses2022-03-3102951564core:ShareCapital2024-03-3102951564core:ShareCapital2023-03-3102951564core:RetainedEarningsAccumulatedLosses2024-03-3102951564core:RetainedEarningsAccumulatedLosses2023-03-31029515642023-03-3102951564core:ShareCapital2022-03-3102951564core:PlantMachinery2024-03-3102951564core:ComputerEquipment2024-03-3102951564core:MotorVehicles2024-03-3102951564core:PlantMachinery2023-03-3102951564core:ComputerEquipment2023-03-3102951564core:MotorVehicles2023-03-3102951564core:CurrentFinancialInstrumentscore:WithinOneYear2024-03-3102951564core:CurrentFinancialInstrumentscore:WithinOneYear2023-03-3102951564core:CurrentFinancialInstruments2024-03-3102951564core:CurrentFinancialInstruments2023-03-3102951564core:PlantMachinery2023-04-012024-03-3102951564core:ComputerEquipment2023-04-012024-03-3102951564core:MotorVehicles2023-04-012024-03-3102951564core:UKTax2023-04-012024-03-3102951564core:UKTax2022-04-012023-03-310295156412023-04-012024-03-310295156412022-04-012023-03-3102951564core:PlantMachinery2023-03-3102951564core:ComputerEquipment2023-03-3102951564core:MotorVehicles2023-03-31029515642023-03-3102951564bus:PrivateLimitedCompanyLtd2023-04-012024-03-3102951564bus:FRS1022023-04-012024-03-3102951564bus:Audited2023-04-012024-03-3102951564bus:FullAccounts2023-04-012024-03-31xbrli:purexbrli:sharesiso4217:GBP