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REGISTERED NUMBER: 03782325 (England and Wales)















Strategic Report, Report of the Directors and

Financial Statements for the Year Ended 31 December 2023

for

Perfect Colours Limited

Perfect Colours Limited (Registered number: 03782325)






Contents of the Financial Statements
for the Year Ended 31 December 2023




Page

Company Information 1

Strategic Report 2

Report of the Directors 4

Report of the Independent Auditors 5

Income Statement 8

Other Comprehensive Income 9

Balance Sheet 10

Statement of Changes in Equity 11

Cash Flow Statement 12

Notes to the Cash Flow Statement 13

Notes to the Financial Statements 14


Perfect Colours Limited

Company Information
for the Year Ended 31 December 2023







DIRECTORS: J Burroughs
M Voysey





SECRETARY: M Voysey





REGISTERED OFFICE: 12 Salisbury Road
Bromley
Kent
BR2 9PU





REGISTERED NUMBER: 03782325 (England and Wales)





AUDITORS: Thornton Springer LLP
Chartered Accountants and
Statutory Auditor
67 Westow Street
London
SE19 3RW

Perfect Colours Limited (Registered number: 03782325)

Strategic Report
for the Year Ended 31 December 2023

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

REVIEW OF BUSINESS
The turnover for the financial period ended 31st December 2023 shows an increase of 1.56% over the previous year, the increase is in line with our expectations.

Our operating strategy involves concentrating our trading on profitable product lines and discontinue those producing low margin which will result in similar or lower turnover levels but generating profit growth. This effectively leads to restructuring by reducing staff costs which also will contribute to future growth in profits.

Gross profit increased by 3.76% compared to previous year, during the year we achieved increase in turnover and invested in systems which is part of our long term business plan.

The next financial year will bring increase sales revenue and increase the profitability of the business whilst continuing to invest in systems.

We have a business plan that shows an appetite for growth over the next few years. Our core activity remains our top priority whilst looking for other avenues to increase the overall business.

PRINCIPAL RISKS AND UNCERTAINTIES
The company's activities expose it to a number of financial risks including credit risk and liquidity risk.

Credit Risk

The company's principal financial assets are bank balances and trade debtors.

The company's credit risk is primarily attributable to its trade debtors, however its exposure is spread over a number of key customers.

Liquidity Risk

In order to maintain liquidity to ensure that sufficient funds are available for ongoing operations and future developments the company has access to short term and long term debt finance.

KEY PERFORMANCE INDICATORS
The principal KPIs used by the director to assess the performance and position of the business of the company are as follows:

Turnover
The directors monitor the development of the business by assessing the growth in turnover, relating it to project performance. The company's sales increased by £240,534, 1.56%, down from the previous year (2022: 17% increase).

Operating profit
Operating profit and profit before tax are key measures of the company's performance. The company suffered an operating loss for the period of £386,904, compared with an operating profit of £58,509 in 2022.

Net assets
The directors also monitor the position of net assets within the company. The company's net assets decreased by £263,524 (2022: increased by £58,509).


Perfect Colours Limited (Registered number: 03782325)

Strategic Report
for the Year Ended 31 December 2023

FUTURE DEVELOPMENTS
Following the economic disruptions caused from COVID-19 pandemic, the company lost some major customers but further similar losses are not anticipated. The company's future plan is concentrated mainly on discontinuance of hardware stocks, loss making and marginal profit stock lines and focus its attention and resources mainly on profitable consumables stock lines. The effects of these changes will see a reduction in turnover and an improved gross profit margin and net profit.
Over the next few years the company's intention is to maintain current business levels as there is no expectation of major growth until 2025 when the economy is expected to start recovering from the effects of COVID-19 disruptions.
The company will seek to work with similar businesses in the industry and look to set up some collaborations/ associations to strengthen its product portfolio.
It is not anticipated that any further major developments will be considered for a period of some 5 years, apart from improving liquidity and allowing the company's finances to stabilise.

BY ORDER OF THE BOARD:





J Burroughs - Director


10 September 2024

Perfect Colours Limited (Registered number: 03782325)

Report of the Directors
for the Year Ended 31 December 2023

The directors present their report with the financial statements of the company for the year ended 31 December 2023.

PRINCIPAL ACTIVITY
The principal activity of the company in the year under review was that of the sale of office supplies, rental and maintenance of office equipment on operating lease agreements.

DIVIDENDS
No dividends will be distributed for the year ended 31 December 2023.

DIRECTORS
The directors shown below have held office during the whole of the period from 1 January 2023 to the date of this report.

J Burroughs
M Voysey

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-select suitable accounting policies and then apply them consistently;
-make judgements and accounting estimates that are reasonable and prudent;
-prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS
The auditors, Thornton Springer LLP, will be proposed for re-appointment at the forthcoming Annual General Meeting.

BY ORDER OF THE BOARD:





J Burroughs - Director


10 September 2024

Report of the Independent Auditors to the Members of
Perfect Colours Limited

Opinion
We have audited the financial statements of Perfect Colours Limited (the 'company') for the year ended 31 December 2023 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, 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 loss for the year then ended;
-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

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

Other information
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Report of the Independent Auditors to the Members of
Perfect Colours Limited


Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page four, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

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

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

We gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates, and considered the risk of acts by the company that were contrary to applicable laws and regulations, including fraud.

We focussed on laws and regulations which could give rise to a material misstatement in the financial statements, including, but not limited to, the Companies Act 2006, UK tax legislation and Health & Safety regulations. Our tests included agreeing the financial statement disclosures to underlying supporting documentation and discussing with management on any known or suspected instances of fraud or non-compliance with laws and regulations.

In evaluating the risk of management override of internal controls, we tested journals entries and evaluated whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud.

Under ISA 240 (UK) there is a presumed risk that revenue may be misstated due to the improper recognition of revenue. To address this risk, we obtained an understanding of the company's revenue recognition policies and compared these to the accounting standard, performed a walkthrough to confirm our understanding of the processes and controls through which the business initiates, records, processes and reports revenue transactions. We tested a sample of revenue transactions to supporting evidence and tested, on a sample basis, revenue related balances in the balance sheet.

There are inherent limitations in the audit procedures described above and, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentation, or through collusion.

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

Report of the Independent Auditors to the Members of
Perfect Colours Limited


Use of our report
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.




S A Kaye (Senior Statutory Auditor)
for and on behalf of Thornton Springer LLP
Chartered Accountants and
Statutory Auditor
67 Westow Street
London
SE19 3RW

10 September 2024

Perfect Colours Limited (Registered number: 03782325)

Income Statement
for the Year Ended 31 December 2023

31.12.23 31.12.22
Notes £    £   

TURNOVER 15,616,488 15,375,954

Cost of sales (12,279,891 ) (12,160,314 )
GROSS PROFIT 3,336,597 3,215,640

Administrative expenses (4,208,585 ) (3,612,485 )
(871,988 ) (396,845 )

Other operating income 522,167 466,128
OPERATING (LOSS)/PROFIT 5 (349,821 ) 69,283


Interest payable and similar expenses 6 (37,059 ) (10,774 )
(LOSS)/PROFIT BEFORE TAXATION (386,880 ) 58,509

Tax on (loss)/profit 7 123,380 -
(LOSS)/PROFIT FOR THE FINANCIAL
YEAR

(263,500

)

58,509

Perfect Colours Limited (Registered number: 03782325)

Other Comprehensive Income
for the Year Ended 31 December 2023

31.12.23 31.12.22
Notes £    £   

(LOSS)/PROFIT FOR THE YEAR (263,500 ) 58,509


OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

(263,500

)

58,509

Perfect Colours Limited (Registered number: 03782325)

Balance Sheet
31 December 2023

31.12.23 31.12.22
Notes £    £   
FIXED ASSETS
Intangible assets 8 180,546 213,373
Tangible assets 9 1,163,619 990,474
1,344,165 1,203,847

CURRENT ASSETS
Stocks 10 1,156,245 1,023,579
Debtors 11 4,411,004 3,709,787
Cash at bank 22,210 31,633
5,589,459 4,764,999
CREDITORS
Amounts falling due within one year 12 (5,727,496 ) (4,613,387 )
NET CURRENT (LIABILITIES)/ASSETS (138,037 ) 151,612
TOTAL ASSETS LESS CURRENT
LIABILITIES

1,206,128

1,355,459

CREDITORS
Amounts falling due after more than one
year

13

(330,534

)

(216,365

)
NET ASSETS 875,594 1,139,094

CAPITAL AND RESERVES
Called up share capital 17 100 100
Retained earnings 18 875,494 1,138,994
SHAREHOLDERS' FUNDS 875,594 1,139,094

The financial statements were approved by the Board of Directors and authorised for issue on 10 September 2024 and were signed on its behalf by:





J Burroughs - Director


Perfect Colours Limited (Registered number: 03782325)

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

Called up
share Retained Total
capital earnings equity
£    £    £   
Balance at 1 January 2022 100 1,080,485 1,080,585

Changes in equity
Total comprehensive income - 58,509 58,509
Balance at 31 December 2022 100 1,138,994 1,139,094

Changes in equity
Total comprehensive income - (263,500 ) (263,500 )
Balance at 31 December 2023 100 875,494 875,594

Perfect Colours Limited (Registered number: 03782325)

Cash Flow Statement
for the Year Ended 31 December 2023

31.12.23 31.12.22
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 429,347 434,445
Interest paid (13,829 ) (1,002 )
Interest element of hire purchase payments
paid

(23,230

)

(9,772

)
Tax paid 123,380 -
Net cash from operating activities 515,668 423,671

Cash flows from investing activities
Purchase of tangible fixed assets (711,339 ) (679,087 )
Sale of tangible fixed assets 4,686 87,349
Net cash from investing activities (706,653 ) (591,738 )

Cash flows from financing activities
Loan repayments in year (9,891 ) (9,645 )
Capital repayments in year 191,453 92,397
Net cash from financing activities 181,562 82,752

Decrease in cash and cash equivalents (9,423 ) (85,315 )
Cash and cash equivalents at beginning of
year

2

31,633

116,948

Cash and cash equivalents at end of year 2 22,210 31,633

Perfect Colours Limited (Registered number: 03782325)

Notes to the Cash Flow Statement
for the Year Ended 31 December 2023

1. RECONCILIATION OF (LOSS)/PROFIT BEFORE TAXATION TO CASH GENERATED FROM
OPERATIONS
31.12.23 31.12.22
£    £   
(Loss)/profit before taxation (386,880 ) 58,509
Depreciation charges 569,335 396,759
Profit on disposal of fixed assets (3,000 ) (23,475 )
Finance costs 37,059 10,774
216,514 442,567
(Increase)/decrease in stocks (132,666 ) 161,793
Increase in trade and other debtors (701,217 ) (626,185 )
Increase in trade and other creditors 1,046,716 456,270
Cash generated from operations 429,347 434,445

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 December 2023
31.12.23 1.1.23
£    £   
Cash and cash equivalents 22,210 31,633
Year ended 31 December 2022
31.12.22 1.1.22
£    £   
Cash and cash equivalents 31,633 116,948


3. ANALYSIS OF CHANGES IN NET DEBT

At 1.1.23 Cash flow At 31.12.23
£    £    £   
Net cash
Cash at bank 31,633 (9,423 ) 22,210
31,633 (9,423 ) 22,210
Debt
Finance leases (256,592 ) (191,453 ) (448,045 )
Debts falling due within 1 year (10,000 ) (110 ) (10,110 )
Debts falling due after 1 year (24,841 ) 10,001 (14,840 )
(291,433 ) (181,562 ) (472,995 )
Total (259,800 ) (190,985 ) (450,785 )

Perfect Colours Limited (Registered number: 03782325)

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

1. STATUTORY INFORMATION

Perfect Colours Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).


2. STATEMENT OF COMPLIANCE

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006.

3. ACCOUNTING POLICIES

Basis of preparing the financial statements
The financial statements have been prepared under the historical cost convention.

The presentation currency of the financial statements is in Pound Sterling (£). Monetary amounts are rounded to the nearest £1.

Significant judgements and estimates
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities at the balance sheet date and the amounts reported for revenue and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates.

Depreciation of tangible fixed assets:

Depreciation is provided in order to write down the assets to their residual values over their estimated useful lives. The selection of estimated useful lives and residual values requires the exercise of management judgement.

Provison for doubtful debts:

Provision for doubtful debts are made so as to disclose trade debtors as amounts recoverable. The selection of debts that are potentially irrecoverable for specific provision and/ or a general provision requires the exercise of management judgement.

Turnover
Turnover represents net invoiced sales of goods, suppliers rebates income and income from office equipment rentals and maintenance, excluding value added tax. Income is recognised when the contractual title to the goods passes to the customer.

Goodwill
Goodwill being the amount paid in connection with the acquisition of Cadpaper UK Limited is fully amortised over a period of three years.

Goodwill being the amount paid in connection with the acquisition of Hobs Consumables is being amortised over a period of ten years.

Intangible assets
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Perfect Colours Limited (Registered number: 03782325)

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

3. ACCOUNTING POLICIES - continued

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.
Short leasehold - over the period of the lease
Improvements to property - over the period of the lease
Plant and machinery - 33% on cost and 25% on cost
Motor vehicles - 25% on cost

Stocks
Stocks are valued at the lower of cost and estimated selling price less selling costs. Costs include purchase costs and all other costs incurred in bring stock to its present location and condition, including any import costs, duties and carriages.

Hire purchase and leasing commitments
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Financial instruments
The company chose to adopt section 11 and 12 of Financial Reporting Standard 102 in respect of financial instruments.

(i) Financial assets

Basic financial assets, including trade and other debtors, cash and bank balances and intra-group balances 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 and accounted through the income statement.

Financing transaction assets are subsequently carried at amortised cost using the effective interest rate method.

(ii) Financial liabilities

Basic financial liabilities include all trade and other creditors, bank overdrafts, intra-group balances and hire purchase contracts, 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 market rate of interest.

Financing transaction debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Perfect Colours Limited (Registered number: 03782325)

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

3. ACCOUNTING POLICIES - continued

Going concern
The company financial statements reported a net current liabilities position, of which resulted from inter-company loan creditors falling due for repayment in less than one year and increases in invoice financing to fund those repayments. Post year end operating results, accounting records, operating and cash flow forecasts show that the company has managed to reverse its financial position to net current assets by maintaining revenue levels and improvements in credit control. Additionally, trade creditors have significantly decreased as a result of the company's plans to reduce stock piling by arranging deliveries to customers direct from suppliers.

4. EMPLOYEES AND DIRECTORS
31.12.23 31.12.22
£    £   
Wages and salaries 2,375,031 2,074,630
Social security costs 34,541 33,065
Other pension costs 129,072 80,000
2,538,644 2,187,695

The average number of employees during the year was as follows:
31.12.23 31.12.22

Sales 20 15
Administration 10 14
Warehouse & Engineering 19 21
49 50

31.12.23 31.12.22
£    £   
Directors' remuneration 268,289 245,743
Directors' pension contributions to money purchase schemes 95,000 80,000

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes 2 2

Information regarding the highest paid director is as follows:
31.12.23 31.12.22
£    £   
Emoluments etc 143,314 132,943
Pension contributions to money purchase schemes 55,000 40,000

Perfect Colours Limited (Registered number: 03782325)

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

5. OPERATING (LOSS)/PROFIT

The operating loss (2022 - operating profit) is stated after charging/(crediting):

31.12.23 31.12.22
£    £   
Hire of plant and machinery 5,067 9,467
Depreciation - owned assets 436,187 298,647
Depreciation - assets on hire purchase contracts 100,319 65,286
Profit on disposal of fixed assets (3,000 ) (23,475 )
Goodwill amortisation 32,827 32,827
Auditors' remuneration 22,430 18,715
Foreign exchange differences 9 -

6. INTEREST PAYABLE AND SIMILAR EXPENSES
31.12.23 31.12.22
£    £   
Bank loan interest 759 1,002
Loan 13,070 -
Hire purchase 23,230 9,772
37,059 10,774

7. TAXATION

Analysis of the tax credit
The tax credit on the loss for the year was as follows:
31.12.23 31.12.22
£    £   
Current tax:
Adjustment re earlier year (123,380 ) -
Tax on (loss)/profit (123,380 ) -

Reconciliation of total tax credit included in profit and loss
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:

31.12.23 31.12.22
£    £   
(Loss)/profit before tax (386,880 ) 58,509
(Loss)/profit multiplied by the standard rate of corporation tax in the UK of
25% (2022 - 19%)

(96,720

)

11,117

Effects of:
Expenses not deductible for tax purposes 4,184 3,913
Income not taxable for tax purposes (750 ) (4,460 )
Capital allowances in excess of depreciation (38,447 ) (40,590 )
Unutilised tax losses 131,733 31,065
Lease rentals on unregulated contract - (1,045 )
Adjustment to earlier years (123,380 ) -
Total tax credit (123,380 ) -

Perfect Colours Limited (Registered number: 03782325)

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

8. INTANGIBLE FIXED ASSETS
Goodwill
£   
COST
At 1 January 2023
and 31 December 2023 359,767
AMORTISATION
At 1 January 2023 146,394
Amortisation for year 32,827
At 31 December 2023 179,221
NET BOOK VALUE
At 31 December 2023 180,546
At 31 December 2022 213,373

9. TANGIBLE FIXED ASSETS
Improvements
Short to Plant and Motor
leasehold property machinery vehicles Totals
£    £    £    £    £   
COST
At 1 January 2023 14,198 134,621 1,616,976 119,942 1,885,737
Additions - 48,032 631,306 31,999 711,337
Disposals - (1,686 ) - (20,363 ) (22,049 )
At 31 December 2023 14,198 180,967 2,248,282 131,578 2,575,025
DEPRECIATION
At 1 January 2023 8,850 8,698 796,996 80,719 895,263
Charge for year 1,234 33,554 488,137 13,581 536,506
Eliminated on disposal - - - (20,363 ) (20,363 )
At 31 December 2023 10,084 42,252 1,285,133 73,937 1,411,406
NET BOOK VALUE
At 31 December 2023 4,114 138,715 963,149 57,641 1,163,619
At 31 December 2022 5,348 125,923 819,980 39,223 990,474

Perfect Colours Limited (Registered number: 03782325)

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

9. TANGIBLE FIXED ASSETS - continued

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:
Plant and Motor
machinery vehicles Totals
£    £    £   
COST
At 1 January 2023 308,628 30,285 338,913
Additions 130,900 31,999 162,899
At 31 December 2023 439,528 62,284 501,812
DEPRECIATION
At 1 January 2023 110,060 1,262 111,322
Charge for year 92,748 7,571 100,319
At 31 December 2023 202,808 8,833 211,641
NET BOOK VALUE
At 31 December 2023 236,720 53,451 290,171
At 31 December 2022 198,568 29,023 227,591

10. STOCKS
31.12.23 31.12.22
£    £   
Stocks 1,156,245 1,023,579

11. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.12.23 31.12.22
£    £   
Trade debtors 2,352,333 2,321,656
Other debtors 1,580,221 1,117,782
Prepayments and accrued income 478,450 270,349
4,411,004 3,709,787

12. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.12.23 31.12.22
£    £   
Bank loans and overdrafts (see note 14) 10,110 10,000
Hire purchase contracts (see note 15) 132,351 65,068
Trade creditors 3,691,748 2,915,007
Social security and other taxes 76,620 11,232
VAT 262,859 59,155
Bank invoice finance 1,489,098 1,453,368
Other creditors - 15,926
Accruals and deferred income 64,710 83,631
5,727,496 4,613,387

Perfect Colours Limited (Registered number: 03782325)

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

13. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR
31.12.23 31.12.22
£    £   
Bank loans (see note 14) 14,840 24,841
Hire purchase contracts (see note 15) 315,694 191,524
330,534 216,365

14. LOANS

An analysis of the maturity of loans is given below:

31.12.23 31.12.22
£    £   
Amounts falling due within one year or on demand:
Bank loans 10,110 10,000

Amounts falling due between one and two years:
Bank loans - 1-2 years 10,397 10,000

Amounts falling due between two and five years:
Bank loans - 2-5 years 4,443 14,841

15. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase contracts
31.12.23 31.12.22
£    £   
Gross obligations repayable:
Within one year 155,269 77,080
Between one and five years 369,122 229,827
524,391 306,907

Finance charges repayable:
Within one year 22,918 12,012
Between one and five years 53,428 38,303
76,346 50,315

Net obligations repayable:
Within one year 132,351 65,068
Between one and five years 315,694 191,524
448,045 256,592

Perfect Colours Limited (Registered number: 03782325)

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

15. LEASING AGREEMENTS - continued

Non-cancellable operating leases
31.12.23 31.12.22
£    £   
Within one year 52,000 52,000
Between one and five years 260,000 260,000
In more than five years 156,000 208,000
468,000 520,000

16. SECURED DEBTS

The following secured debts are included within creditors:

31.12.23 31.12.22
£    £   
HSBC Invoice Finance 1,489,098 1,453,368

The HSBC invoice finance is secured by a fixed and floating charge over the company's assets.

17. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 31.12.23 31.12.22
value: £    £   
50 A Shares £1 50 50
50 B Shares £1 50 50
100 100

18. RESERVES
Retained
earnings
£   

At 1 January 2023 1,138,994
Deficit for the year (263,500 )
At 31 December 2023 875,494

Perfect Colours Limited (Registered number: 03782325)

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

19. RELATED PARTY DISCLOSURES

The company is owed £500,608 as at 31 December 2023 from JJB (S.E) Investments Limited, a 50% shareholder wholly owned by the director, Jason Burroughs.

The company is owed £99,820 as at 31 December 2023 from Townley Office Supplies Limited, a company wholly owned by JJB (S.E) Investments Limited which is wholly owned by Jason Burroughs.

The company is owned £240,257 and £86,254 from Creative Output Limited and Merseyside Printing Company Limited respectively, both companies are wholly owned by the director, Mark Voysey.

The company paid rents totalling £52,000 during the reporting period to JJB (S.E) Investments Limited, a 50% shareholder wholly owned by the director, Jason Burroughs.







20. ULTIMATE CONTROLLING PARTY

The ultimate controlling party is J Burroughs.