REGISTERED NUMBER: 05609407 (England and Wales) |
GROUP STRATEGIC REPORT, REPORT OF THE DIRECTOR AND |
CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 |
FOR |
PROMART HOLDINGS (UK) LIMITED |
REGISTERED NUMBER: 05609407 (England and Wales) |
GROUP STRATEGIC REPORT, REPORT OF THE DIRECTOR AND |
CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 |
FOR |
PROMART HOLDINGS (UK) LIMITED |
PROMART HOLDINGS (UK) LIMITED (REGISTERED NUMBER: 05609407) |
CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Director | 3 |
Report of the Independent Auditors | 4 |
Consolidated Income Statement | 7 |
Consolidated Other Comprehensive Income | 8 |
Consolidated Balance Sheet | 9 |
Company Balance Sheet | 10 |
Consolidated Statement of Changes in Equity | 11 |
Company Statement of Changes in Equity | 12 |
Consolidated Cash Flow Statement | 13 |
Notes to the Consolidated Cash Flow Statement | 14 |
Notes to the Consolidated Financial Statements | 15 |
PROMART HOLDINGS (UK) LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
DIRECTOR: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Accountants |
Statutory Auditors |
One Derby Square |
Liverpool |
L2 9QR |
PROMART HOLDINGS (UK) LIMITED (REGISTERED NUMBER: 05609407) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
The director presents his strategic report of the company and the group for the year ended 31 December 2023. |
PRINCIPAL ACTIVITY |
The principal activity of the group continued to be that of the manufacture, supply and fitting of equipment for the catering industry. The principal activity of the company continued to be that of a holding company. |
REVIEW OF BUSINESS |
The results for the group show an operating profit of £37,431 (2022: operating loss of £180,592) for the year and turnover of £6,137,904 (2022: £4,912,413). |
The group has net assets at 31 December 2023 of £2,775,942 (2022: £2,767,832). |
See key performance indicators for further information. |
PRINCIPAL RISKS AND UNCERTAINTIES |
The management of the business and the execution of the group's strategy are subject to a number of risks: |
Liquidity risk |
The group is funded by surplus cash, bank borrowings and working capital. |
The group manages its cash and borrowing requirements in order to maximise interest income and minimise interest expense, whilst ensuring the group has sufficient liquid resources to meet the operating needs of the business. |
Interest rate risk |
The group manages the risk associated with fluctuations in interest rate by securing a fixed rate in respect of its external bank borrowings. |
Credit risk |
The group monitors credit risk closely and considers that its current policies of credit checks meets its objectives. All customers who wish to trade on credit terms are subject to credit verification procedures. Trade debtors are reviewed on a regular basis and provision is made for doubtful debts when necessary. |
KEY PERFOMANCE INDICATORS |
The director monitors progress against a number of key performance indicators. Performance for the current year, together with the comparative data for the previous year, is set out below: |
Turnover |
Turnover in the year was £6,137,904 (2022: £4,912,413) representing a 25% increase. |
Operating result |
Operating profit is £37,431 (2022: operating loss £180,592). |
ON BEHALF OF THE BOARD: |
PROMART HOLDINGS (UK) LIMITED (REGISTERED NUMBER: 05609407) |
REPORT OF THE DIRECTOR |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
The director presents his report with the financial statements of the company and the group for the year ended 31 December 2023. |
DIVIDENDS |
No ordinary dividends were paid. The director does not recommend payment of a further dividend. |
DIRECTOR |
DISCLOSURE IN THE STRATEGIC REPORT |
The group has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the group's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. |
STATEMENT OF DIRECTOR'S RESPONSIBILITIES |
The director is responsible for preparing the Group Strategic Report, the Report of the Director and the financial statements in accordance with applicable law and regulations. |
Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group for that period. In preparing these financial statements, the director is 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 director is responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and enable him to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the company and the group 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 director is aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and he 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 group's auditors are aware of that information. |
AUDITORS |
Additions have expressed their willingness to remain in office as auditors of the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing they be re-appointed will be put at a general meeting. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
PROMART HOLDINGS (UK) LIMITED |
Opinion |
We have audited the financial statements of Promart Holdings (UK) Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated 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 group's and of the parent company affairs as at 31 December 2023 and of the group's 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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group 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 group's and the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the director with respect to going concern are described in the relevant sections of this report. |
Other information |
The director is responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Director, 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 Group Strategic Report and the Report of the Director for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Group Strategic Report and the Report of the Director have been prepared in accordance with applicable legal requirements. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
PROMART HOLDINGS (UK) LIMITED |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Director. |
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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the parent company financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of director's remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of director |
As explained more fully in the Statement of Director's Responsibilities set out on page three, the director is 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 director determines 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 director is responsible for assessing the group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the director either intends to liquidate the group or the parent company or to cease operations, or has 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. |
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below. |
Capability of the audit in detecting irregularities, including fraud |
Discussions with and enquiries of management and those charged with governance were held with a view to identifying those laws and regulations that could be expected to have a material impact on the financial statements. During the engagement team briefing, the outcomes of these discussions and enquiries were shared with the team, as well as consideration as to where and how fraud may occur in the entity. The following laws and regulations were identified as being of significance to the entity: |
- | Those laws and regulations considered to have a direct effect on the financial statements include UK financial reporting standards, Company Law, Tax and Pension legislation, and distributable profits legislation. |
- | Those laws and regulations for which non-compliance may be fundamental to the operating aspects of the business and therefore may have a material effect on the financial statements include environmental regulations, health and safety legislation, trades description act and employment legislation. |
Audit procedures undertaken in response to the potential risks relating to irregularities (which include fraud and non-compliance with laws and regulations) comprised of: inquires of management and those charged with governance as to whether the entity complies with such laws and regulations; enquiries with the same concerning any actual or potential litigation or claims; inspection of relevant legal correspondence; review of board minutes; testing the appropriateness of journal entries; reviewing post year end payments for evidence of claims pay outs and the performance of analytical review to identify unexpected movements in account balances which may be indicative of fraud. |
No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity's controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK). |
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 |
PROMART HOLDINGS (UK) 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. |
for and on behalf of |
Chartered Accountants |
Statutory Auditors |
One Derby Square |
Liverpool |
L2 9QR |
PROMART HOLDINGS (UK) LIMITED (REGISTERED NUMBER: 05609407) |
CONSOLIDATED INCOME STATEMENT |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
2023 | 2022 |
Notes | £ | £ |
TURNOVER | 4 | 6,137,904 | 4,912,413 |
Cost of sales | 4,323,348 | 3,375,623 |
GROSS PROFIT | 1,814,556 | 1,536,790 |
Administrative expenses | 1,816,467 | 1,816,116 |
(1,911 | ) | (279,326 | ) |
Other operating income | 5 | 39,342 | 98,734 |
OPERATING PROFIT/(LOSS) | 8 | 37,431 | (180,592 | ) |
Interest receivable and similar income | 158 | - |
37,589 | (180,592 | ) |
Interest payable and similar expenses | 10 | 97,852 | 71,977 |
LOSS BEFORE TAXATION | (60,263 | ) | (252,569 | ) |
Tax on loss | 11 | (68,373 | ) | (130,423 | ) |
PROFIT/(LOSS) FOR THE FINANCIAL YEAR | ( |
) |
Profit/(loss) attributable to: |
Owners of the parent | 8,110 | (122,146 | ) |
PROMART HOLDINGS (UK) LIMITED (REGISTERED NUMBER: 05609407) |
CONSOLIDATED OTHER COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
2023 | 2022 |
Notes | £ | £ |
PROFIT/(LOSS) FOR THE YEAR | 8,110 | (122,146 | ) |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
8,110 |
(122,146 |
) |
Total comprehensive income attributable to: |
Owners of the parent | 8,110 | (122,146 | ) |
PROMART HOLDINGS (UK) LIMITED (REGISTERED NUMBER: 05609407) |
CONSOLIDATED BALANCE SHEET |
31 DECEMBER 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 13 | 105,584 | 140,778 |
Tangible assets | 14 | 3,078,462 | 3,128,565 |
Investments | 15 | - | - |
3,184,046 | 3,269,343 |
CURRENT ASSETS |
Stocks | 16 | 315,344 | 402,081 |
Debtors | 17 | 985,340 | 1,269,625 |
Cash at bank | 1,128,644 | 960,071 |
2,429,328 | 2,631,777 |
CREDITORS |
Amounts falling due within one year | 18 | 1,305,708 | 1,288,208 |
NET CURRENT ASSETS | 1,123,620 | 1,343,569 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
4,307,666 |
4,612,912 |
CREDITORS |
Amounts falling due after more than one year |
19 |
(1,366,137 |
) |
(1,706,342 |
) |
PROVISIONS FOR LIABILITIES | 23 | (165,587 | ) | (138,738 | ) |
NET ASSETS | 2,775,942 | 2,767,832 |
CAPITAL AND RESERVES |
Called up share capital | 24 | 10,000 | 10,000 |
Share premium | 25 | 1,083,988 | 1,083,988 |
Revaluation reserve | 25 | 377,333 | 420,959 |
Other reserves | 25 | (98,568 | ) | (98,568 | ) |
Retained earnings | 25 | 1,403,189 | 1,351,453 |
SHAREHOLDERS' FUNDS | 2,775,942 | 2,767,832 |
The financial statements were approved by the director and authorised for issue on 19 September 2024 and were signed by: |
Mr A J Davies - Director |
PROMART HOLDINGS (UK) LIMITED (REGISTERED NUMBER: 05609407) |
COMPANY BALANCE SHEET |
31 DECEMBER 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 13 |
Tangible assets | 14 |
Investments | 15 |
CREDITORS |
Amounts falling due within one year | 18 |
NET CURRENT LIABILITIES | ( |
) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CAPITAL AND RESERVES |
Called up share capital | 24 |
Share premium | 25 |
Other reserves | 25 | ( |
) | ( |
) |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | - | - |
The financial statements were approved by the director and authorised for issue on |
PROMART HOLDINGS (UK) LIMITED (REGISTERED NUMBER: 05609407) |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
Called up |
share | Retained | Share |
capital | earnings | premium |
£ | £ | £ |
Balance at 1 January 2022 | 10,000 | 1,448,722 | 1,083,988 |
Changes in equity |
Deficit for the year | - | (122,146 | ) | - |
Total comprehensive income | - | (122,146 | ) | - |
Transfer | - | 24,877 | - |
Balance at 31 December 2022 | 10,000 | 1,351,453 | 1,083,988 |
Changes in equity |
Profit for the year | - | 8,110 | - |
Total comprehensive income | - | 8,110 | - |
Transfer | - | 43,626 | - |
Balance at 31 December 2023 | 10,000 | 1,403,189 | 1,083,988 |
Revaluation | Other | Total |
reserve | reserves | equity |
£ | £ | £ |
Balance at 1 January 2022 | 445,836 | (98,568 | ) | 2,889,978 |
Changes in equity |
Deficit for the year | - | - | (122,146 | ) |
Total comprehensive income | - | - | (122,146 | ) |
Transfer | (24,877 | ) | - | - |
Balance at 31 December 2022 | 420,959 | (98,568 | ) | 2,767,832 |
Changes in equity |
Profit for the year | - | - | 8,110 |
Total comprehensive income | - | - | 8,110 |
Transfer | (43,626 | ) | - | - |
Balance at 31 December 2023 | 377,333 | (98,568 | ) | 2,775,942 |
PROMART HOLDINGS (UK) LIMITED (REGISTERED NUMBER: 05609407) |
COMPANY STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
Called up |
share | Retained | Share | Other | Total |
capital | earnings | premium | reserves | equity |
£ | £ | £ | £ | £ |
Balance at 1 January 2022 | ( |
) |
Changes in equity |
Balance at 31 December 2022 | ( |
) |
Changes in equity |
Balance at 31 December 2023 | ( |
) |
PROMART HOLDINGS (UK) LIMITED (REGISTERED NUMBER: 05609407) |
CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
2023 | 2022 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 640,752 | (675,071 | ) |
Net cash from operating activities | 640,752 | (675,071 | ) |
Cash flows from investing activities |
Purchase of tangible fixed assets | (50,229 | ) | (55,871 | ) |
Sale of tangible fixed assets | 40,000 | 10,000 |
Net cash from investing activities | (10,229 | ) | (45,871 | ) |
Cash flows from financing activities |
Loan repayments in year | (363,014 | ) | (622,870 | ) |
Capital repayments in year | (2,597 | ) | - |
Interest paid | (96,339 | ) | (71,977 | ) |
Net cash from financing activities | (461,950 | ) | (694,847 | ) |
Increase/(decrease) in cash and cash equivalents | 168,573 | (1,415,789 | ) |
Cash and cash equivalents at beginning of year |
2 |
960,071 |
2,375,860 |
Cash and cash equivalents at end of year | 2 | 1,128,644 | 960,071 |
PROMART HOLDINGS (UK) LIMITED (REGISTERED NUMBER: 05609407) |
NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
1. | RECONCILIATION OF LOSS BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2023 | 2022 |
£ | £ |
Loss before taxation | (60,263 | ) | (252,569 | ) |
Depreciation charges | 176,454 | 183,723 |
Loss on disposal of fixed assets | 2,943 | 1,072 |
Finance costs | 97,852 | 71,977 |
Finance income | (158 | ) | - |
216,828 | 4,203 |
Decrease/(increase) in stocks | 86,737 | (89,754 | ) |
Decrease/(increase) in trade and other debtors | 379,665 | (578,100 | ) |
Decrease in trade and other creditors | (42,478 | ) | (11,420 | ) |
Cash generated from operations | 640,752 | (675,071 | ) |
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 | 1,128,644 | 960,071 |
Year ended 31 December 2022 |
31.12.22 | 1.1.22 |
£ | £ |
Cash and cash equivalents | 960,071 | 2,375,860 |
3. | ANALYSIS OF CHANGES IN NET DEBT |
Other |
non-cash |
At 1.1.23 | Cash flow | changes | At 31.12.23 |
£ | £ | £ | £ |
Net cash |
Cash at bank | 960,071 | 168,573 | 1,128,644 |
960,071 | 168,573 | 1,128,644 |
Debt |
Finance leases | - | 2,597 | (83,870 | ) | (81,273 | ) |
Debts falling due |
within 1 year | (364,703 | ) | (2,442 | ) | - | (367,145 | ) |
Debts falling due |
after 1 year | (1,655,503 | ) | 365,456 | - | (1,290,047 | ) |
(2,020,206 | ) | 365,611 | (83,870 | ) | (1,738,465 | ) |
Total | (1,060,135 | ) | 534,184 | (83,870 | ) | (609,821 | ) |
PROMART HOLDINGS (UK) LIMITED (REGISTERED NUMBER: 05609407) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
1. | STATUTORY INFORMATION |
Promart Holdings (UK) Limited is a |
The group consists of Promart Holdings (UK) Limited and all of its subsidiaries. The principal activity of the company and group is disclosed in the strategic report. |
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 |
These financial statements have been prepared using the historical cost convention, modified to include the revaluation of land and buildings. The principal accounting policies adopted are set out below. |
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £. |
The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements: |
- | Section 4 'Statement of Financial Position': Reconciliation of the opening and closing number of shares; |
- | Section 7 'Statement of Cash Flows': Presentation of a statement of cash flow and related notes and disclosures; |
- | Section 11 'Basic Financial Instruments' and Section 12 'Other Financial Instrument Issues': Carrying amounts, interest income/expenses and net gains/losses for each category of financial instrument; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income; |
- | Section 33 'Related Party Disclosures': Compensation for key management personnel. |
Going concern |
At the time of approving the financial statements, the director has a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. |
The group has certain conditions attached to long term bank borrowings. The director is confident that if any conditions were not met in full this would not cause any material change to the terms of those borrowings as he would expect to maintain the support of the group's principal bankers. |
The group meets its day to day working capital requirements through facilities from its principal bankers. Based upon the continuing support of the bank the director considers it appropriate to prepare the financial statements on the going concern basis. The financial statements, therefore, do not include any adjustments that would result from a withdrawal of the support of its bankers. |
PROMART HOLDINGS (UK) LIMITED (REGISTERED NUMBER: 05609407) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
3. | ACCOUNTING POLICIES - continued |
Business combinations |
In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment. |
Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill. |
Basis of consolidation |
The consolidated group financial statements consist of the financial statements of the parent company Promart Holdings (UK) Limited together with all entities controlled by the parent company (its subsidiaries) and the group's share of its interests in joint ventures and associates. |
All financial statements are made up to 31 December 2022. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group. |
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. |
Significant judgements and estimates |
In application of the group's accounting policies, the director is required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. |
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods. |
The key estimates and assumptions which have a significant risk of causing a material adjustment to the |
carrying amount of assets and liabilities are as follows. |
Determining and reassessing residual values and useful economic lives of tangible assets |
The group depreciates tangible assets over their estimated useful lives. In determining appropriate useful lives of assets, the director has considered historic performance as well as future expectations for factors such as expected usage of the asset, physical wear and tear, technical and commercial obsolescence and legal limitations of the usage of the asset, such as lease terms. The actual lives of these assets can vary depending on a variety of factors, including technological innovation, product life cycles and maintenance programmes. |
Judgement is applied to determine the residual values for tangible assets. When determining the residual values, the director has assessed the amount that the group would currently obtain for the disposal of the asset, if it were already of the condition expected at the end of its useful economic life. At each reporting date, the director has also assessed whether there have been any indicators, such as a change in how the |
asset is used, significant unexpected wear and tear and changes in market prices, which suggest previous estimates may differ from current expectations. Where this is the case, the residual value and/or useful life is amended and accounted for on a prospective basis. |
Recoverability of receivables |
Management reviews the carrying amount of trade receivables on a regular basis to identify items where recoverability may be in doubt. The timing and quantum of any impairment of receivables is a matter of management judgement. |
PROMART HOLDINGS (UK) LIMITED (REGISTERED NUMBER: 05609407) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
3. | ACCOUNTING POLICIES - continued |
Turnover |
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates. |
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably. |
Intangible assets other than goodwill |
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses. |
Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights;and the intangible asset is separable from the entity. |
Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful life as follows: |
Asset class: | Amortisation method and rate: |
Development costs | 10 years straight line |
PROMART HOLDINGS (UK) LIMITED (REGISTERED NUMBER: 05609407) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
3. | ACCOUNTING POLICIES - continued |
Tangible fixed assets |
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses. |
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases: |
Asset class: | Depreciation method and rate: |
Buildings | 2% straight line |
Plant and machinery | 15% reducing balance |
Land is not depreciated. |
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to the profit and loss account. |
Fixed asset investments |
In the parent company financial statements, interests in subsidiaries are initially measured at cost and subsequently measured at cost less and accumulated impairment losses. |
A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities. |
Impairment of fixed assets |
At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs. |
The carrying amount of investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment. |
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted. |
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease. |
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase. |
Stocks |
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition. |
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss. |
PROMART HOLDINGS (UK) LIMITED (REGISTERED NUMBER: 05609407) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
3. | ACCOUNTING POLICIES - continued |
Financial instruments |
The group has elected to apply the provisions of Section 11 'Basic Financial Instruments' and Section 12 'Other Financial Instruments Issues' of FRS102 to all of its financial instruments. |
Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument. |
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously. |
The following policies for financial instruments have been applied in the preparation of the financial statements. |
Basic financial assets |
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently caried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised. |
Other financial assets |
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment. |
Impairment of financial assets |
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date. |
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset's original effective interest rate. The impairment loss is recognised in profit or loss. |
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss. |
Derecognition of financial assets |
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risk and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party. |
Classification of financial liabilities |
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities. |
Basic financial liabilities |
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised. |
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. |
PROMART HOLDINGS (UK) LIMITED (REGISTERED NUMBER: 05609407) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
3. | ACCOUNTING POLICIES - continued |
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method. |
Other financial liabilities |
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy. |
Derecognition of financial liabilities |
Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled. |
Taxation |
The tax expense represents the sum of the tax currently payable and deferred tax. |
Current tax |
The current tax payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group's liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date. |
Deferred tax |
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit. |
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority. |
Research and development |
Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated. |
Employee benefits |
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets. |
The cost of any unused holiday entitlement is recognised in the period in which the employee's services are received. |
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits. |
Retirement benefits |
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due. |
PROMART HOLDINGS (UK) LIMITED (REGISTERED NUMBER: 05609407) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
3. | ACCOUNTING POLICIES - continued |
Cash and cash equivalents |
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities. |
Equity instruments |
Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group. |
Government grants |
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received. |
A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability. |
4. | TURNOVER |
The turnover and loss before taxation are attributable to the one principal activity of the group. |
An analysis of turnover by class of business is given below: |
2023 | 2022 |
£ | £ |
Manufacture, supply, fitting | 6,137,904 | 4,912,413 |
6,137,904 | 4,912,413 |
An analysis of turnover by geographical market is given below: |
2023 | 2022 |
£ | £ |
United Kingdom | 6,137,904 | 4,912,413 |
6,137,904 | 4,912,413 |
5. | OTHER OPERATING INCOME |
2023 | 2022 |
£ | £ |
Government grants | 39,342 | 98,734 |
6. | EMPLOYEES AND DIRECTORS |
2023 | 2022 |
£ | £ |
Wages and salaries | 2,240,956 | 2,202,361 |
Social security costs | 214,772 | 217,272 |
Other pension costs | 72,361 | 113,293 |
2,528,089 | 2,532,926 |
The average number of employees during the year was as follows: |
2023 | 2022 |
Sales and administrative |
PROMART HOLDINGS (UK) LIMITED (REGISTERED NUMBER: 05609407) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
6. | EMPLOYEES AND DIRECTORS - continued |
The company has nil (2022: nil) employees during the year and therefore incurred no payroll costs (2022: £nil). |
7. | DIRECTORS' REMUNERATION |
The directors' remuneration for the year was as follows: |
2023 | 2022 |
£ | £ |
Remuneration for qualifying services | 246,076 | 263,600 |
Company pension contributions to defined contribution schemes | 18,000 | 54,413 |
264,076 | 318,013 |
In respect of the highest paid director: |
2023 | 2022 |
£ | £ |
Remuneration | 64,949 | 65,763 |
Company pension contributions to defined contribution schemes | - | - |
8. | OPERATING PROFIT/(LOSS) |
The operating profit (2022 - operating loss) is stated after charging: |
2023 | 2022 |
£ | £ |
Depreciation - owned assets | 141,260 | 148,529 |
Loss on disposal of fixed assets | 2,943 | 1,072 |
Development costs amortisation | 35,194 | 35,194 |
9. | AUDITORS' REMUNERATION |
2023 | 2022 |
£ | £ |
Audit of the financial statements of the group and company | 12,500 | 12,500 |
10. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2023 | 2022 |
£ | £ |
Bank loan interest | 96,280 | 71,977 |
Hire purchase | 1,572 | - |
97,852 | 71,977 |
PROMART HOLDINGS (UK) LIMITED (REGISTERED NUMBER: 05609407) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
11. | TAXATION |
Analysis of the tax credit |
The tax credit on the loss for the year was as follows: |
2023 | 2022 |
£ | £ |
Current tax: |
UK corporation tax | (95,222 | ) | - |
Adjustment to prior periods | - | (33,295 | ) |
Total current tax | (95,222 | ) | (33,295 | ) |
Deferred tax: |
Origination and reversal of timing differences | (23,797 | ) | 2,124 |
Losses carried forward | 17,758 | (50,537 | ) |
Adjustment to prior periods | 32,888 | (48,715 | ) |
Total deferred tax | 26,849 | (97,128 | ) |
Tax on loss | (68,373 | ) | (130,423 | ) |
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: |
2023 | 2022 |
£ | £ |
Loss before tax | (60,263 | ) | (252,569 | ) |
Loss multiplied by the standard rate of corporation tax in the UK of 19 % (2022 - 19 %) |
(11,450 |
) |
(47,988 |
) |
Effects of: |
Expenses not deductible for tax purposes | 3,420 | 1,042 |
Depreciation in excess of capital allowances | 6,299 | 9,985 |
Adjustments to tax charge in respect of previous periods | (95,222 | ) | (33,295 | ) |
Increased tax rates on timing differences expected to unwind after 1 April 2023 | - |
(11,452 |
) |
Deferred tax adjustment in respect of prior periods | 75,778 | (48,715 | ) |
Research and development enhanced deduction | (47,198 | ) | - |
Total tax credit | (68,373 | ) | (130,423 | ) |
12. | INDIVIDUAL INCOME STATEMENT |
As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
PROMART HOLDINGS (UK) LIMITED (REGISTERED NUMBER: 05609407) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
13. | INTANGIBLE FIXED ASSETS |
Group |
Development |
costs |
£ |
COST |
At 1 January 2023 |
and 31 December 2023 | 351,943 |
AMORTISATION |
At 1 January 2023 | 211,165 |
Amortisation for year | 35,194 |
At 31 December 2023 | 246,359 |
NET BOOK VALUE |
At 31 December 2023 | 105,584 |
At 31 December 2022 | 140,778 |
The company had no intangible fixed assets at 31 December 2023 or 31 December 2022. |
Development costs have been capitalised in accordance with the requirements of FRS 102 and are therefore not treated, for dividend purposes, as a realised loss. |
14. | TANGIBLE FIXED ASSETS |
Group |
Land and | Plant and |
buildings | equipment | Totals |
£ | £ | £ |
COST |
At 1 January 2023 | 2,749,263 | 2,328,566 | 5,077,829 |
Additions | - | 134,099 | 134,099 |
Disposals | - | (133,684 | ) | (133,684 | ) |
At 31 December 2023 | 2,749,263 | 2,328,981 | 5,078,244 |
DEPRECIATION |
At 1 January 2023 | 156,411 | 1,792,853 | 1,949,264 |
Charge for year | 54,985 | 86,275 | 141,260 |
Eliminated on disposal | - | (90,742 | ) | (90,742 | ) |
At 31 December 2023 | 211,396 | 1,788,386 | 1,999,782 |
NET BOOK VALUE |
At 31 December 2023 | 2,537,867 | 540,595 | 3,078,462 |
At 31 December 2022 | 2,592,852 | 535,713 | 3,128,565 |
PROMART HOLDINGS (UK) LIMITED (REGISTERED NUMBER: 05609407) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
14. | TANGIBLE FIXED ASSETS - continued |
Group |
The company has no tangible fixed assets at 31 December 2023 or 31 December 2022. |
Land and buildings were valued at 20 February 2020 by Mason Owen, Independent valuers not connected with the company on the basis of market value. The valuation conforms to International Valuation Standards and was based on recent market transactions on arm's length terms for similar properties. The directors used this as a basis to value the land and buildings at 31 December 2019. |
Historical cost |
If revalued assets were stated on an historical cost basis rather than a fair value basis, the total amounts included would have been as follows: |
2023 | 2022 |
£ | £ |
Cost | 2,484,485 | 2,484,485 |
Accumulated depreciation | (502,465 | ) | (459,568 | ) |
Carrying value | 1,982,020 | 2,024,917 |
15. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1 January 2023 |
and 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiaries |
Registered office: Unit 2b Caddick Road, Knowsley Business Park, Prescot, Merseyside, L34 9PH |
Nature of business: |
% |
Class of shares: | holding |
Registered office: Unit 2b Caddick Road, Knowsley Business Park, Prescot, Merseyside, L34 9PH |
Nature of business: |
% |
Class of shares: | holding |
PROMART HOLDINGS (UK) LIMITED (REGISTERED NUMBER: 05609407) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
15. | FIXED ASSET INVESTMENTS - continued |
Registered office: Unit 2b Caddick Road, Knowsley Business Park, Prescot, Merseyside, L34 9PH |
Nature of business: |
% |
Class of shares: | holding |
The company's shareholding in Promart Holdings Limited is held directly. The company's shareholdings in Promart Manufacturing Limited and Promart Trustees Limited are held indirectly through Promart Holdings Limited. |
16. | STOCKS |
Group |
2023 | 2022 |
£ | £ |
Raw materials and consumables | 160,114 | 119,117 |
Finished goods and goods for resale | 155,230 | 282,964 |
315,344 | 402,081 |
17. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group |
2023 | 2022 |
£ | £ |
Trade debtors | 534,617 | 788,780 |
Amounts recoverable on contracts | 323,616 | 410,568 |
Other debtors | 31,885 | 70,277 |
Tax | 95,222 | - |
985,340 | 1,269,625 |
18. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Bank loans and overdrafts (see note 20) | 367,145 | 364,703 |
Hire purchase contracts (see note 21) | 16,680 | - |
Trade creditors | 355,310 | 444,650 |
Amounts owed to group undertakings | - | - |
Social security and other taxes | 238,037 | 203,742 |
Accruals and deferred income | 328,536 | 275,113 |
1,305,708 | 1,288,208 |
19. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group |
2023 | 2022 |
£ | £ |
Bank loans (see note 20) | 1,290,047 | 1,655,503 |
Hire purchase contracts (see note 21) | 64,593 | - |
Accruals and deferred income | 11,497 | 50,839 |
1,366,137 | 1,706,342 |
PROMART HOLDINGS (UK) LIMITED (REGISTERED NUMBER: 05609407) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
20. | LOANS |
An analysis of the maturity of loans is given below: |
Group |
2023 | 2022 |
£ | £ |
Amounts falling due within one year or on | demand: |
Bank loans | 367,145 | 364,703 |
Amounts falling due between one and two | years: |
Bank loans | 376,364 | 371,516 |
Amounts falling due between two and five | years: |
Bank loans | 587,787 | 807,373 |
Amounts falling due in more than five years: |
Repayable by instalments |
Bank loans | 325,896 | 476,614 |
There were four separate bank loans during the current and previous year: |
The balance on the first bank loan as at 31 December 2023 was £420,849 (2022: £465,340) and incurs interest at base rate plus 2% per annum and is due for repayment in 2031. |
The balance on the second bank loan as at 31 December 2023 was £590,509 (2022: £659,033) and incurs interest at base rate plus 2.55% per annunm and is due for repayment in 2030. |
The balance on the third bank loan, which is a Coronavirus Business Interuption loan, as at 31 December 2023 was £645,834 (2022: £895,833) and incurs interest at 2.79% and is due for repayment in 2026. |
The bank loans are secured by a corporate guarantee between all the companies. This is supported by a first legal charge over the land and buildings and a debenture over the whole assets of the group. |
21. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Hire purchase contracts |
2023 | 2022 |
£ | £ |
Net obligations repayable: |
Within one year | 16,680 | - |
Between one and five years | 64,593 | - |
81,273 | - |
Amounts owed under hire purchase contracts are secured against the assets concerned. |
PROMART HOLDINGS (UK) LIMITED (REGISTERED NUMBER: 05609407) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
22. | DEFERRED INCOME |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Arising from government grants | 50,839 | 90,181 | - | - |
Other deferred income | 167,691 | 151,459 | - | - |
218,530 | 241,640 | - | - |
Deferred income is included in the financial statements as follows: |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Current liabilities | 207,033 | 190,801 | - | - |
Non-current liabilities | 11,497 | 50,839 | - | - |
218,530 | 241,640 | - | - |
23. | PROVISIONS FOR LIABILITIES |
Group |
2023 | 2022 |
£ | £ |
Deferred tax |
Accelerated capital allowances | 71,587 | 95,384 |
Tax losses carried forward | (81,494 | ) | (99,252 | ) |
Other timing differences | 175,494 | 142,606 |
165,587 | 138,738 |
Group |
Deferred |
tax |
£ |
Balance at 1 January 2023 | 138,738 |
Accelerated capital allowances | (23,797 | ) |
Tax losses carried forward | 17,758 |
Other timing differences | 32,888 |
Balance at 31 December 2023 | 165,587 |
24. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
Ordinary A | £1 | 8,181 | 8,181 |
Ordinary B | £1 | 1,212 | 1,212 |
Ordinary C | £1 | 607 | 607 |
10,000 | 10,000 |
PROMART HOLDINGS (UK) LIMITED (REGISTERED NUMBER: 05609407) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
25. | RESERVES |
Share premium |
The share premium reserve contains the premium arising on issue of equity shares. |
Revaluation reserve |
The revaluation reserve relates to an accumulation of upward and downwards revaluations relating to land and buildings. |
Retained earnings |
Retained earnings represents cumulative profits and losses net of dividends and other adjustments. |
Capital redemption reserve |
The other reserve relates to own shares arising in connection of shares which have been bought or sold by the owners of the company. |
26. | ULTIMATE CONTROLLING PARTY |
The ultimate controlling party is Mr A J Davies. |
27. | RETIREMENT BENEFIT SCHEMES |
The group operates a defined contribution pension scheme for all qualifying employees. The pension cost charge for the year represents contributions payable by the group to the scheme and amounted to £72,361 (2022: £113,293). |
The assets of the scheme are held separately from those of the group in an independently administered fund. |