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Registration number: 09196220

Principal Doorsets Limited

Annual Report and Financial Statements

for the year ended 31 December 2023

 

Principal Doorsets Limited

Contents

Company Information

1

Strategic Report

2

Directors' Report

3 to 4

Independent Auditor's Report

5 to 8

Profit and Loss Account

9

Statement of Comprehensive Income

10

Balance Sheet

11

Statement of Changes in Equity

12

Statement of Cash Flows

13

Notes to the Financial Statements

14 to 28

 

Principal Doorsets Limited

Company Information

Directors

Mr R V Llewellyn

Mr S D Bond

Registered office

Riverside Road,
Pottington Business Park
Barnstaple
North Devon
EX31 1NB

Auditors

Glover Stanbury
Chartered Accountants and Registered Auditors
30 Bear Street
BARNSTAPLE
Devon
EX32 7DD

 

Principal Doorsets Limited

Strategic Report for the Year Ended 31 December 2023

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

Principal activity

The principal activity of the company is manufacture of bespoke high performance doorsets

Fair review of the business

Turnover increased by 1% in the year ended 31 December 2023 compared with 2022. However this year includes property repairs of £552k (Repairs to roof to accommodate new solar panel installation) which has resulted in the profit before tax decreasing from £1.16m in 2022 to £643k in 2023. The business planned to maintain 2022 turnover whilst installing the new roof to maintain service during the roof works disruption.

The company has a very strong balance sheet and at the end of the year, net assets totalled £3,562,633 (2022 - £3,260,754).

The company's key financial and other performance indicators during the year were as follows:

Financial KPIs

Unit

2023

2022

Turnover

£

8,536,421

8,446,343

Gross profit margin

%

40

38

Profit before tax

£

642,915

1,162,581

Principal risks and uncertainties

Whilst the economic uncertainty relating to supply and pricing raw materials and demand in the industry are continuing, 2023 and 2022 have demonstrated the company's ability to minimise these risks. The company has an extensive product offering and are not wholly reliant on any specific sector. The company is partly reliant on high end residential projects and hospitals where there is a minor risk of the govemment tightening the spending on these projects. The company continues to mitigate these risks by having a diversified portfolio of clients and sectors.

Approved by the Board on 24 June 2024 and signed on its behalf by:


Mr R V Llewellyn
Director

 

Principal Doorsets Limited

Directors' Report for the Year Ended 31 December 2023

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

Directors of the company

The directors who held office during the year were as follows:

Mr R V Llewellyn

Mr S D Bond


Directors' responsibilities

The directors acknowledge their responsibilities 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 apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

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.

Financial instruments

Objectives and policies

The business' principal financial instruments are bank balances, trade debtors, trade creditors and loans to the business. The main purpose of these instruments is to finance the business operations.

 

Principal Doorsets Limited

Directors' Report for the Year Ended 31 December 2023

Price risk, credit risk, liquidity risk and cash flow risk

In respect of bank balances the liquidity risk is managed by maintaining a balance between the continuity of funding and flexibility through the use of accumulated cash reserves.

Trade debtors are managed in respect of credit and cash flow risk by policies concerning the credit offered to customers and regular monitoring of amounts outstanding for both time and credit limits. Trade creditors‘ liquidity risk is managed by ensuring sufficient funds are available to settle liabilities as they fall due under normal trading terms.

Disclosure of information to the auditors

Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.

Research and development

The company continues to invest in research and development (R&D) to improve our product offerings and assist our customers in delivering their commitments. By prioritising innovation and leveraging cutting-edge technologies, we are confident that these strategic investments will drive growth and create long-term value.

Approved by the Board on 24 June 2024 and signed on its behalf by:


Mr R V Llewellyn
Director

 

Principal Doorsets Limited

Independent Auditor's Report to the Members of Principal Doorsets Limited

Opinion

We have audited the financial statements of Principal Doorsets Limited (the 'company') for the year ended 31 December 2023, which comprise the Profit and Loss Account, Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, 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 Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

give a true and fair view of the state of the company's affairs as at 31 December 2023 and of its profit for the year then ended;

have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor 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 director's 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 original financial statements were authorised for issue.

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

Other information

The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

 

Principal Doorsets Limited

Independent Auditor's Report to the Members of Principal Doorsets Limited

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

the information given in the Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

the Strategic Report and 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 our 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 and the Directors' Report.

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

adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

the financial statements are not in agreement with the accounting records and returns; or

certain disclosures of directors' remuneration specified by law are not made; or

we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities [set out on page 3], 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.

 

Principal Doorsets Limited

Independent Auditor's Report to the Members of Principal Doorsets Limited

Auditor Responsibilities for the audit of the financial statements

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

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

Identifying and assessing potential risks related to irregularities
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following:
1. The nature of the industry and sector, control environment and business performance;
2. results of our enquiries of management about their own identification and assessment of the risks of irregularities;
3. any matters we identified having obtained and reviewed the company’s documentation of their policies and procedures relating to:
- identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance;
- detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud;
- the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations;
4. the matters discussed among the audit engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud.
As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in income. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.
We also obtained an understanding of the legal and regulatory frameworks that the company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the UK Companies Act, UK corporate governance legislation and UK tax legislation.
In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the company’s ability to operate or to avoid a material penalty.
Audit response to risks identified
As a result of performing the above, we have not identified any contradictory evidence during our enquiries.

 

Principal Doorsets Limited

Independent Auditor's Report to the Members of Principal Doorsets Limited

Our procedures to respond to risks identified included the following:
- Reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;
- enquiring of management concerning actual and potential litigation and claims;
- performing procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;
and
- in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members, and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our 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.



Mark Shute BA FCA (Senior Statutory Auditor)
For and on behalf of Glover Stanbury, Statutory Auditor

30 Bear Street
BARNSTAPLE
Devon
EX32 7DD

28 June 2024

 

Principal Doorsets Limited

Profit and Loss Account for the Year Ended 31 December 2023

Note

2023
£

2022
£

Turnover

3

8,536,421

8,446,343

Cost of sales

 

(5,082,345)

(5,260,810)

Gross profit

 

3,454,076

3,185,533

Administrative expenses

 

(2,682,262)

(1,954,236)

Other operating income

4

7,739

8,427

Operating profit

6

779,553

1,239,724

Interest payable and similar expenses

8

(136,638)

(77,143)

Profit before tax

 

642,915

1,162,581

Tax on profit

12

(171,036)

116,255

Profit for the financial year

 

471,879

1,278,836

The above results were derived from continuing operations.

The company has no recognised gains or losses for the year other than the results above.

 

Principal Doorsets Limited

Statement of Comprehensive Income for the Year Ended 31 December 2023

2023
£

2022
£

Profit for the year

471,879

1,278,836

Total comprehensive income for the year

471,879

1,278,836

 

Principal Doorsets Limited

(Registration number: 09196220)
Balance Sheet as at 31 December 2023

Note

2023
£

2022
£

Fixed Assets

 

Tangible Assets

13

2,869,210

2,607,012

Current assets

 

Stocks

14

495,133

745,567

Debtors

15

2,521,588

1,974,709

Cash at bank and in hand

 

1,623,311

1,048,536

 

4,640,032

3,768,812

Creditors: Amounts falling due within one year

17

(1,532,243)

(1,349,410)

Net current assets

 

3,107,789

2,419,402

Total assets less current liabilities

 

5,976,999

5,026,414

Creditors: Amounts falling due after more than one year

17

(2,027,849)

(1,456,859)

Provisions for liabilities

18

(386,517)

(308,801)

Net assets

 

3,562,633

3,260,754

Capital and Reserves

 

Called up share capital

1,000

1,000

Retained Earnings

3,561,633

3,259,754

Shareholders' funds

 

3,562,633

3,260,754

Approved and authorised for issue by the Board on 24 June 2024 and signed on its behalf by:
 




Mr R V Llewellyn
Director




Mr S D Bond
Director

 
     
 

Principal Doorsets Limited

Statement of Changes in Equity for the Year Ended 31 December 2023

Share capital
£

Retained Earnings
£

Total
£

At 1 January 2023

1,000

3,259,754

3,260,754

Profit for the year

-

471,879

471,879

Dividends

-

(170,000)

(170,000)

At 31 December 2023

1,000

3,561,633

3,562,633

Share capital
£

Retained Earnings
£

Total
£

At 1 January 2022

1,000

2,370,057

2,371,057

Prior period adjustment

-

(229,139)

(229,139)

At 1 January 2022 (As restated)

1,000

2,140,918

2,141,918

Profit for the year

-

1,278,836

1,278,836

Dividends

-

(160,000)

(160,000)

At 31 December 2022

1,000

3,259,754

3,260,754

 

Principal Doorsets Limited

Statement of Cash Flows for the Year Ended 31 December 2023

Note

2023
£

2022
£

Cash flows from operating activities

Profit for the year

 

471,879

1,278,836

Adjustments to cash flows from non-cash items

 

Depreciation and amortisation

6

217,834

213,935

Loss on disposal of tangible assets

5

3,537

-

Finance costs

8

136,488

76,993

Income tax expense

12

171,036

(116,255)

 

1,000,774

1,453,509

Working capital adjustments

 

Decrease/(increase) in stocks

14

250,434

(122,788)

Increase in trade debtors

15

(560,940)

(14,721)

Increase/(decrease) in trade creditors

17

37,629

(149,888)

Decrease in deferred income, including government grants

 

(7,739)

(8,427)

Cash generated from operations

 

720,158

1,157,685

Income taxes received

12

14,061

187,856

Net cash flow from operating activities

 

734,219

1,345,541

Cash flows from investing activities

 

Acquisitions of tangible assets

(53,569)

(128,008)

Cash flows from financing activities

 

Interest paid

8

(136,488)

(76,993)

Proceeds from bank borrowing draw downs

 

500,000

876,518

Repayment of bank borrowing

 

(42,808)

-

Repayment of other borrowing

 

-

(930,386)

Payments to finance lease creditors

 

(256,579)

(5,796)

Dividends paid

23

(170,000)

(160,000)

Net cash flows from financing activities

 

(105,875)

(296,657)

Net increase in cash and cash equivalents

 

574,775

920,876

Cash and cash equivalents at 1 January

 

1,048,536

127,660

Cash and cash equivalents at 31 December

 

1,623,311

1,048,536

 

Principal Doorsets Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

1

General information

The company is a private company limited by share capital, incorporated in England.

The address of its registered office is:
Riverside Road,
Pottington Business Park
Barnstaple
North Devon
EX31 1NB

These financial statements were authorised for issue by the Board on 24 June 2024.

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland and the Companies Act 2006'.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

All amounts are in £'s.

Going concern

The financial statements have been prepared on a going concern basis.

Judgements

There are no judgements which management have made in the process of applying the accounting policies.

Key sources of estimation uncertainty

There are no key sources of estimation uncertainty that have a significant risk of causing a material adjustment to assets and liabilities to be disclosed.

 

Principal Doorsets Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.

The company recognises revenue when: the amount of revenue can be reliably measured; it is probable that future economic benefits will flow to the entity and specific criteria have been met for each of the company's activities.

Contract revenue recognition

Where a contract has only been partially completed at the balance sheet date, turnover represents the value of the service provided to date based on a stage completion method.

Amounts owed to the company at the balance sheet date are included within Debtors.

Government grants

Grants have been recognised in the accounts under the accrual model. Under the accrual model, grants relating to capital shall be recognised in income on a systematic basis over the anticipated useful economic life of the asset.

Foreign currency transactions and balances

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rate on the date when the fair value is re-measured.

Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Deferred income tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements and on unused tax losses or tax credits in the company. Deferred income tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.

 

Principal Doorsets Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

Tangible Assets

Tangible Assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Plant and machinery

15% reducing balance

Computer and office equipment

33% straight line

Fixtures and fittings

15% reducing balance

Freehold buildings

2% straight line

Freehold land

Not depreciated

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade Debtors

Trade Debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade Debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.

At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.

 

Principal Doorsets Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

Trade Creditors

Trade Creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade Creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Profit and Loss Account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease. Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.

Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the Balance Sheet as a finance lease obligation.

Lease payments are apportioned between finance costs in the Profit and Loss Account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Dividends

Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

 

Principal Doorsets Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

Financial instruments

Classification
Basic financial assets include trade and other debtors, cash and bank balances. Basic financial liabilities include trade and other payables and bank loans.
 Recognition and measurement
Basic financial assets are initially recognised at transaction price, 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. Such assets are subsequently carried at amortised cost using the effective interest method. Other debtors are classified as current assets if payment is due within one year or less and are initially recorded at transaction price and subsequently measured at the undiscounted amount of the cash expected to be received. Trade debtors are referred to above.

Basic financial liabilities 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. 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. Other creditors are classified as current liabilities if payment is due within one year or less and are recognised initially at transaction price and subsequently measured at the undiscounted amount of the cash expected to be paid. If not, they are presented as non-current liabilities and are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method. Trade creditors and leases are referred to above.

 Impairment
At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. 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 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.

 

Principal Doorsets Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

3

Turnover

The analysis of the company's Turnover for the year from continuing operations is as follows:

2023
£

2022
£

Sale of goods

8,536,421

8,446,343

4

Other operating income

The analysis of the company's other operating income for the year is as follows:

2023
£

2022
£

Government grants

7,739

8,427

5

Other gains and losses

The analysis of the company's other gains and losses for the year is as follows:

2023
£

2022
£

Loss on disposal of Tangible Assets

(3,537)

-

6

Operating profit

Arrived at after charging/(crediting)

2023
£

2022
£

Depreciation expense

217,834

213,935

Foreign exchange losses

150

150

Operating lease expense - plant and machinery

67,436

56,923

Loss on disposal of property, plant and equipment

3,537

-

7

Government grants

Grants relating to capital assets have been released in the year and the prior year.

The amount of grants recognised in the financial statements was £7,739 (2022 - £8,427).

There are no unfulfilled conditions or other contingencies attaching to the grants that have been recognised in income.

 

Principal Doorsets Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

8

Interest payable and similar expenses

2023
£

2022
£

Interest on bank overdrafts and borrowings

98,154

36,762

Interest on obligations under finance leases and hire purchase contracts

34,834

40,231

Interest expense on other finance liabilities

3,500

-

Foreign exchange gains

150

150

136,638

77,143

9

Staff costs

The aggregate payroll costs (including directors' remuneration) were as follows:

2023
£

2022
£

Wages and salaries

1,966,576

1,768,080

Social security costs

170,693

140,859

Other short-term employee benefits

24,569

21,346

Pension costs, defined contribution scheme

52,929

51,142

Other employee expense

1,088

1,297

2,215,855

1,982,724

The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:

2023
No.

2022
No.

Production

36

36

Sales

26

24

62

60

10

Directors' remuneration

The directors' remuneration for the year was as follows:

2023
£

2022
£

Remuneration

30,584

26,144

11

Auditors' remuneration

2023
£

2022
£

Audit of the financial statements

17,500

17,000

 

Principal Doorsets Limited

Notes to the Financial Statements for the Year Ended 31 December 2023


 

12

Taxation

Tax charged/(credited) in the profit and loss account

2023
£

2022
£

Current taxation

UK corporation tax

93,320

(14,060)

UK corporation tax adjustment to prior periods

-

(187,857)

93,320

(201,917)

Deferred taxation

Arising from origination and reversal of timing differences

77,716

11,550

Arising from changes in tax rates and laws

-

74,112

Total deferred taxation

77,716

85,662

Tax expense/(receipt) in the income statement

171,036

(116,255)

The tax on profit before tax for the year is higher than the standard rate of corporation tax in the UK (2022 - lower than the standard rate of corporation tax in the UK) of 23.52% (2022 - 19%).

The differences are reconciled below:

2023
£

2022
£

Profit before tax

642,915

1,162,581

Corporation tax at standard rate

151,217

220,890

Effect of expense not deductible in determining taxable profit (tax loss)

11,805

-

Effect of tax losses

-

18,424

Deferred tax expense relating to changes in tax rates or laws

-

74,112

Decrease from effect of tax incentives

-

(174,804)

Decrease in UK and foreign current tax from adjustment for prior periods

-

(237,858)

Tax increase/(decrease) from effect of capital allowances and depreciation

8,014

(2,959)

Tax decrease from effect of adjustment in research and development tax credit

-

(14,060)

Total tax charge/(credit)

171,036

(116,255)

 

Principal Doorsets Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

13

Tangible Assets

Land and buildings
£

Fixtures and fittings
£

Plant and machinery
£

Office equipment
£

Total
£

Cost or valuation

At 1 January 2023

1,526,761

14,734

1,884,226

48,349

3,474,070

Additions

-

2,938

455,676

24,955

483,569

Disposals

-

-

(9,473)

(5,850)

(15,323)

At 31 December 2023

1,526,761

17,672

2,330,429

67,454

3,942,316

Depreciation

At 1 January 2023

102,029

7,526

725,158

32,345

867,058

Charge for the year

20,535

1,335

180,715

15,249

217,834

Eliminated on disposal

-

-

(6,191)

(5,595)

(11,786)

At 31 December 2023

122,564

8,861

899,682

41,999

1,073,106

Carrying amount

At 31 December 2023

1,404,197

8,811

1,430,747

25,455

2,869,210

At 31 December 2022

1,424,732

7,208

1,159,068

16,004

2,607,012

Included within the net book value of land and buildings above is £1,404,197 (2022 - £1,424,732) in respect of freehold land and buildings.
 

Assets held under finance leases and hire purchase contracts

The net carrying amount of tangible assets includes the following amounts in respect of assets held under finance leases and hire purchase contracts:

 

2023
£

2022
£

Plant and machinery

1,075,628

817,931

     

14

Stocks

2023
£

2022
£

Other inventories

495,133

745,567

 

Principal Doorsets Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

15

Debtors

Current

Note

2023
£

2022
£

Trade Debtors

 

1,823,190

1,226,841

Amounts owed by related parties

25

74,726

113,526

Prepayments

 

62,754

162,974

Gross amount due from customers for contract work

 

560,918

457,307

Corporation tax receivable

12

-

14,061

   

2,521,588

1,974,709

16

Cash and cash equivalents

2023
£

2022
£

Cash at bank

1,623,311

1,048,536

17

Creditors

Note

2023
£

2022
£

Due within one year

 

Loans and borrowings

21

371,495

319,025

Trade Creditors

 

733,384

742,115

Social security and VAT

 

244,129

197,185

Accruals

 

82,762

83,346

Corporation tax liability

12

93,320

-

Deferred income

 

7,153

7,739

 

1,532,243

1,349,410

Due after one year

 

Loans and borrowings

21

1,844,184

1,266,041

Deferred income

 

183,665

190,818

 

2,027,849

1,456,859

 

Principal Doorsets Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

18

Provisions for liabilities

Deferred tax
£

Total
£

At 1 January 2023

308,801

308,801

Increase (decrease) in existing provisions

77,716

77,716

At 31 December 2023

386,517

386,517

The deferred tax provision comprises the difference between accumulated depreciation and capital allowances.

19

Pension and other schemes

Defined contribution pension scheme

The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £52,929 (2022 - £51,142).

20

Share capital

Allotted, called up and fully paid shares

 

2023

2022

 

No.

£

No.

£

Ordinary shares of £1 each

1,000

1,000

1,000

1,000

         

Rights

Ordinary shares have the following rights:
Unrestricted ordinary shares with full voting rights and distribution of dividends.

 

Principal Doorsets Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

21

Loans and borrowings

2023
£

2022
£

Non-current loans and borrowings

Bank borrowings

1,272,366

836,263

Hire purchase contracts

571,818

429,778

1,844,184

1,266,041

The HP agreements have been secured against the specific assets for which the agreement relates. The bank loans are secured by a debenture on all assets of the company and a legal charge over the property. The aggregate of secured liabilities amounts to £2,145,679 (2022 - £1,515,066).

The bank loans have a maturity date of 28 October 2037 and 8 August 2038 and are being repaid in monthly instalments. Interest on the loans is being charged at 2.25% over base rate and 2.7% over base rate.

2023
£

2022
£

Current loans and borrowings

Bank borrowings

61,344

40,255

Hire purchase contracts

240,151

208,770

Other borrowings

70,000

70,000

371,495

319,025

Included in the loans and borrowings are the following amounts due after more than five years:

2023
£

2022
£

After more than five years by instalments

986,565

652,400

-

-

 

Principal Doorsets Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

22

Obligations under leases and hire purchase contracts

Finance leases

The total of future minimum lease payments is as follows:

2023
£

2022
£

Not later than one year

240,151

208,771

Later than one year and not later than five years

571,818

429,778

811,969

638,549

Operating leases

The total of future minimum lease payments is as follows:

2023
£

2022
£

Not later than one year

29,238

39,854

Later than one year and not later than five years

8,314

12,848

37,552

52,702

The amount of non-cancellable operating lease payments recognised as an expense during the year was £61,559 (2022 - £50,899).

23

Dividends

   

2023

 

2022

   

£

 

£

Interim dividend of £170.00 (2022 - £160.00) per ordinary share

 

170,000

 

160,000

         

24

Commitments

Capital commitments

The total amount contracted for but not provided in the financial statements was £Nil (2022 - £954,527).

 

Principal Doorsets Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

25

Related party transactions

Key management compensation

2023
£

2022
£

Salaries and other short term employee benefits

26,129

22,587

Transactions with directors

2023

At 1 January 2023
£

Advances to director
£

Repayments by director
£

At 31 December 2023
£

Mr R V Llewellyn

Directors loan account - no interest charged & repayable on demand

57,337

65,599

(85,000)

37,936

-

-

-

-

 

57,337

65,599

(85,000)

37,936

Mr S D Bond

Directors loan account - no interest charged & repaybale on demand

56,189

65,601

(85,000)

36,790

-

-

-

-

 

56,189

65,601

(85,000)

36,790

2022

At 1 January 2022
£

Advances to director
£

Repayments by director
£

At 31 December 2022
£

Mr R V Llewellyn

Directors loan account - no interest charged & repayable on demand

5,366

131,971

(80,000)

57,337

-

-

-

-

 

5,366

131,971

(80,000)

57,337

       

Mr S D Bond

Directors loan account - no interest charged & repaybale on demand

15,322

120,867

(80,000)

56,189

-

-

-

-

 

15,322

120,867

(80,000)

56,189

       

 

 

Principal Doorsets Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

Dividends paid to directors

   

2023
£

 

2022
£

Mr R V Llewellyn

       

Dividends paid to director during the year

 

85,000

 

80,000

         

Mr S D Bond

       

Dividends paid to director during the year

 

85,000

 

80,000