PPV Solutions Ltd |
Notes to the Accounts |
for the year ended 31 December 2023 |
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1 |
Accounting policies |
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Basis of preparation |
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The accounts have been prepared under the historical cost convention and in accordance with FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland (as applied to small entities by section 1A of the standard). |
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Turnover |
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Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods and from the rendering of services. Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have transferred to the buyer. Turnover from the rendering of services is recognised by reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs. |
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Tangible fixed assets |
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Tangible fixed assets are measured at cost less accumulative depreciation and any accumulative impairment losses. Depreciation is provided on all tangible fixed assets, other than freehold land, at rates calculated to write off the cost, less estimated residual value, of each asset evenly over its expected useful life, as follows: |
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Land and buildings |
no depreciation charge |
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Plant and machinery |
20% reducing balance |
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Office equipment, fixtures and fittings |
33% and 25% reducing balance and over 3 years |
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Motor vehicles |
25% reducing balance |
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Stocks |
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Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first in first out method. The carrying amount of stock sold is recognised as an expense in the period in which the related revenue is recognised. |
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Debtors |
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Short term debtors are measured at transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts. Loans and other financial assets are initially recognised at transaction price including any transaction costs and subsequently measured at amortised cost determined using the effective interest method, less any impairment losses for bad and doubtful debts. |
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Creditors |
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Short term creditors are measured at transaction price (which is usually the invoice price). Loans and other financial liabilities are initially recognised at transaction price net of any transaction costs and subsequently measured at amortised cost determined using the effective interest method. |
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Taxation |
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A current tax liability is recognised for the tax payable on the taxable profit of the current and past periods. A current tax asset is recognised in respect of a tax loss that can be carried back to recover tax paid in a previous period. Deferred tax is recognised in respect of all timing differences between the recognition of income and expenses in the financial statements and their inclusion in tax assessments. Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used. Current and deferred tax assets and liabilities are not discounted. |
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Provisions |
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Provisions (ie liabilities of uncertain timing or amount) are recognised when there is an obligation at the reporting date as a result of a past event, it is probable that economic benefit will be transferred to settle the obligation and the amount of the obligation can be estimated reliably. |
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Leased assets |
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A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership. All other leases are classified as operating leases. The rights of use and obligations under finance leases are initially recognised as assets and liabilities at amounts equal to the fair value of the leased assets or, if lower, the present value of the minimum lease payments. Minimum lease payments are apportioned between the finance charge and the reduction in the outstanding liability using the effective interest rate method. The finance charge is allocated to each period during the lease so as to produce a constant periodic rate of interest on the remaining balance of the liability. Leased assets are depreciated in accordance with the company's policy for tangible fixed assets. If there is no reasonable certainty that ownership will be obtained at the end of the lease term, the asset is depreciated over the lower of the lease term and its useful life. Operating lease payments are recognised as an expense on a straight line basis over the lease term. |
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Finance costs |
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Finance costs are charged to profit and loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are intially recognised as a reduction in the proceeds of the associated capital instrument. |
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Dividends |
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Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting. |
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Interest income |
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Interest income is recognised in the profit and loss using the effective interest method. |
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Pensions |
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Contributions to defined contribution plans are expensed in the period to which they relate. |
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2 |
Employees |
2023 |
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2022 |
Number |
Number |
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Average number of persons employed by the company |
17 |
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14 |
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3 |
Tangible fixed assets |
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Land and buildings |
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Plant and machinery |
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Office equipment, fixtures and fittings |
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Motor vehicles |
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Total |
£ |
£ |
£ |
£ |
£ |
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Cost |
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At 1 January 2023 |
333,623 |
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8,165 |
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93,327 |
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171,997 |
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607,112 |
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Additions |
8,161 |
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- |
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17,170 |
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23,495 |
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48,826 |
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Disposals |
- |
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- |
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- |
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(10,829) |
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(10,829) |
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At 31 December 2023 |
341,784 |
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8,165 |
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110,497 |
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184,663 |
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645,109 |
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Depreciation |
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At 1 January 2023 |
- |
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3,288 |
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43,540 |
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25,991 |
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72,819 |
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Charge for the year |
- |
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975 |
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22,906 |
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37,530 |
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61,411 |
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On disposals |
- |
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- |
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- |
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(7,748) |
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(7,748) |
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At 31 December 2023 |
- |
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4,263 |
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66,446 |
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55,773 |
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126,482 |
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Net book value |
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At 31 December 2023 |
341,784 |
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3,902 |
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44,051 |
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128,890 |
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518,627 |
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At 31 December 2022 |
333,623 |
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4,877 |
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49,787 |
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146,006 |
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534,293 |
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Freehold land and buildings: |
2023 |
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2022 |
£ |
£ |
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Historical cost |
290,466 |
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282,305 |
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Revaluation 2020 |
51,318 |
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51,318 |
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341,784 |
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333,623 |
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4 |
Debtors |
2023 |
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2022 |
£ |
£ |
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Trade debtors |
749,088 |
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594,537 |
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Amounts owed by group undertakings and undertakings in which the company has a participating interest |
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16,778 |
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- |
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Other debtors |
196,291 |
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92,478 |
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962,157 |
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687,015 |
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5 |
Creditors: amounts falling due within one year |
2023 |
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2022 |
£ |
£ |
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Bank loans and overdrafts |
36,659 |
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34,576 |
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Obligations under finance lease and hire purchase contracts |
27,541 |
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21,652 |
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Trade creditors |
627,545 |
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622,959 |
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Proceeds of factored debts |
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297,302 |
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110,053 |
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Taxation and social security costs |
184,112 |
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141,640 |
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Other creditors |
32,786 |
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15,245 |
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1,205,945 |
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946,125 |
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The amount of £297,302 (2022: £110,053) included within proceeds of factored debt is secured against the trade debtors of the company. |
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Bank loans of £26,659 (2022: £24,576), due within one year, are secured by the company. |
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Obligations under finance lease and hire purchase contracts of £27,541 (2022: £21,652), due within one year, are secured by the company. |
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6 |
Creditors: amounts falling due after one year |
2023 |
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2022 |
£ |
£ |
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Bank loans |
173,758 |
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210,499 |
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Obligations under finance lease and hire purchase contracts |
110,223 |
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114,933 |
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283,981 |
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325,432 |
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Bank loans of £159,591 (2022: £186,332), due after more than one year, are secured by the company. |
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Obligations under finance lease and hire purchase contracts of £110,223 (2022: £114,933), due after more than one year, are secured by the company. |
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7 |
Loans |
2023 |
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2022 |
£ |
£ |
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Creditors include: |
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Instalments falling due for payment after more than five years |
60,614 |
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63,399 |
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60,614 |
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63,399 |
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8 |
Revaluation reserve |
2023 |
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2022 |
£ |
£ |
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At 1 January 2023 |
41,568 |
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50,292 |
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Transfer to profit and loss account |
(2,320) |
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(8,724) |
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At 31 December 2023 |
39,248 |
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41,568 |
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9 |
Pension commitments |
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The company contributes to a defined contribution scheme for its employees. At the balance sheet date there were outstanding contributions of £2,814 (2022: £3,148). This amount is included within other creditors. |
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10 |
Loans to directors |
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During the year loans made to director 1 totalled £34,761 (2022: £53,773) and repayments totalled £14,688 |
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(2022: £28,613). The amount owed by director 1 to the company at the year end totalled £46,357 (2022: £25,530) |
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Interest of £754 (2022: £401) has been charged on this loan. This amount is included within other debtors. |
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During the year loans made to director 2 totalled £30,823 (2022: £41,611) and repayments totalled £8,825 |
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(2022: £14,763). The amount owed by director 2 to the company at the year end totalled £45,626 (2022: £22,886) |
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Interest of £742 (2022: £227) has been charged on this loan. This amount is included within other debtors. |
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During the year loans made to director 3 totalled £25,389 (2022: £42,663) and repayments totalled £6,912 |
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(2022: £23,053). The amount owed by director 3 to the company at the year end totalled £38,831 (2022: £19,721) |
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Interest of £633 (2022: £181) has been charged on this loan. This amount is included within other debtors. |
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11 |
Related party transactions |
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During the year, the company loaned £16,778 to a company under common control. The rate of interest charged is 0%. At the balance sheet date £16,778 was owed from J & Co. Group Ltd, this balance is included in amounts owed from group undertakings. |
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12 |
Other information |
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PPV Solutions Ltd is a private company limited by shares and incorporated in England. Its registered office is: |
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Unit 41 Mere View |
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Yaxley |
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Peterborough |
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PE7 3HS |