IRIS Accounts Production v24.1.4.33 02733893 director 1.10.22 30.9.23 30.9.23 wholesalers of construction products to builder's merchants and re-sellers, true false true true false false true false Ordinary 1.00000 iso4217:GBPiso4217:USDiso4217:EURxbrli:sharesxbrli:pureutr:tonnesutr:kWh027338932022-09-30027338932023-09-30027338932022-10-012023-09-30027338932021-09-30027338932021-10-012022-09-30027338932022-09-3002733893ns15:EnglandWales2022-10-012023-09-3002733893ns14:PoundSterling2022-10-012023-09-3002733893ns10:Director12022-10-012023-09-3002733893ns10:PrivateLimitedCompanyLtd2022-10-012023-09-3002733893ns10:FRS1022022-10-012023-09-3002733893ns10:Audited2022-10-012023-09-3002733893ns10:LargeMedium-sizedCompaniesRegimeForDirectorsReport2022-10-012023-09-3002733893ns10:LargeMedium-sizedCompaniesRegimeForAccounts2022-10-012023-09-3002733893ns10:FullAccounts2022-10-012023-09-3002733893ns10:OrdinaryShareClass12022-10-012023-09-3002733893ns10:CompanySecretary12022-10-012023-09-3002733893ns10:RegisteredOffice2022-10-012023-09-300273389312022-10-012023-09-300273389312021-10-012022-09-3002733893ns5:CurrentFinancialInstruments2023-09-3002733893ns5:CurrentFinancialInstruments2022-09-3002733893ns5:Non-currentFinancialInstruments2023-09-3002733893ns5:Non-currentFinancialInstruments2022-09-3002733893ns5:ShareCapital2023-09-3002733893ns5:ShareCapital2022-09-3002733893ns5:RevaluationReserve2023-09-3002733893ns5:RevaluationReserve2022-09-3002733893ns5:RetainedEarningsAccumulatedLosses2023-09-3002733893ns5:RetainedEarningsAccumulatedLosses2022-09-3002733893ns5:ShareCapital2021-09-3002733893ns5:RetainedEarningsAccumulatedLosses2021-09-3002733893ns5:RevaluationReserve2021-09-3002733893ns5:RetainedEarningsAccumulatedLosses2021-10-012022-09-3002733893ns5:RevaluationReserve2021-10-012022-09-3002733893ns5:RetainedEarningsAccumulatedLosses2022-10-012023-09-3002733893ns5:RevaluationReserve2022-10-012023-09-3002733893ns5:OwnedOrFreeholdAssetsns5:LandBuildings2022-10-012023-09-3002733893ns5:PlantMachinery2022-10-012023-09-3002733893ns5:FurnitureFittings2022-10-012023-09-3002733893ns5:MotorVehicles2022-10-012023-09-3002733893ns5:ComputerEquipment2022-10-012023-09-3002733893ns5:OwnedAssets2022-10-012023-09-3002733893ns5:OwnedAssets2021-10-012022-09-300273389342022-10-012023-09-300273389342021-10-012022-09-3002733893ns5:HirePurchaseContracts2022-10-012023-09-3002733893ns5:HirePurchaseContracts2021-10-012022-09-3002733893ns10:OrdinaryShareClass12021-10-012022-09-3002733893ns5:LandBuildings2022-09-3002733893ns5:PlantMachinery2022-09-3002733893ns5:FurnitureFittings2022-09-3002733893ns5:LandBuildings2022-10-012023-09-3002733893ns5:LandBuildings2023-09-3002733893ns5:PlantMachinery2023-09-3002733893ns5:FurnitureFittings2023-09-3002733893ns5:LandBuildings2022-09-3002733893ns5:PlantMachinery2022-09-3002733893ns5:FurnitureFittings2022-09-3002733893ns5:MotorVehicles2022-09-3002733893ns5:ComputerEquipment2022-09-3002733893ns5:MotorVehicles2023-09-3002733893ns5:ComputerEquipment2023-09-3002733893ns5:MotorVehicles2022-09-3002733893ns5:ComputerEquipment2022-09-3002733893ns5:CurrentFinancialInstrumentsns5:WithinOneYear2023-09-3002733893ns5:CurrentFinancialInstrumentsns5:WithinOneYear2022-09-3002733893ns5:Non-currentFinancialInstrumentsns5:BetweenOneTwoYears2023-09-3002733893ns5:Non-currentFinancialInstrumentsns5:BetweenOneTwoYears2022-09-3002733893ns5:Non-currentFinancialInstrumentsns5:BetweenTwoFiveYears2023-09-3002733893ns5:Non-currentFinancialInstrumentsns5:BetweenTwoFiveYears2022-09-3002733893ns5:BetweenOneFiveYearsns5:HirePurchaseContracts2023-09-3002733893ns5:BetweenOneFiveYearsns5:HirePurchaseContracts2022-09-3002733893ns5:WithinOneYear2023-09-3002733893ns5:WithinOneYear2022-09-3002733893ns5:BetweenOneFiveYears2023-09-3002733893ns5:BetweenOneFiveYears2022-09-3002733893ns5:AllPeriods2023-09-3002733893ns5:AllPeriods2022-09-3002733893ns5:Secured2023-09-3002733893ns5:Secured2022-09-3002733893ns5:AcceleratedTaxDepreciationDeferredTax2023-09-3002733893ns5:AcceleratedTaxDepreciationDeferredTax2022-09-3002733893ns5:DeferredTaxation2022-09-3002733893ns5:DeferredTaxation2022-10-012023-09-3002733893ns5:DeferredTaxation2023-09-3002733893ns10:OrdinaryShareClass12023-09-300273389312022-10-012023-09-30
REGISTERED NUMBER: 02733893 (England and Wales)















STRATEGIC REPORT, REPORT OF THE DIRECTOR AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2023

FOR

PRINCIPAL BUILDING PRODUCTS LIMITED

PRINCIPAL BUILDING PRODUCTS LIMITED (REGISTERED NUMBER: 02733893)






CONTENTS OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023




Page

Company Information 1

Strategic Report 2

Report of the Director 3

Report of the Independent Auditors 4

Income Statement 7

Other Comprehensive Income 8

Balance Sheet 9

Statement of Changes in Equity 10

Cash Flow Statement 11

Notes to the Cash Flow Statement 12

Notes to the Financial Statements 13


PRINCIPAL BUILDING PRODUCTS LIMITED

COMPANY INFORMATION
FOR THE YEAR ENDED 30 SEPTEMBER 2023







DIRECTOR: S A Riley





SECRETARY: Mrs L Riley





REGISTERED OFFICE: Barbot Hall Industrial Estate
Mangham Road
Greasborough
Rotherham
South Yorkshire
S61 4RJ





REGISTERED NUMBER: 02733893 (England and Wales)





AUDITORS: Hollis and Co Limited
Chartered Accountants
Statutory Auditor
35 Wilkinson Street
Sheffield
South Yorkshire
S10 2GB

PRINCIPAL BUILDING PRODUCTS LIMITED (REGISTERED NUMBER: 02733893)

STRATEGIC REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2023

The director presents his strategic report for the year ended 30 September 2023.

REVIEW OF BUSINESS AND PERFORMANCE
The principal activity of the company is the supply of a wide range of construction products to builder's merchants and re-sellers across the UK and Ireland. The company operates from a 51,000 square foot warehouse and office unit in Rotherham and is ideally placed for national distribution.
The range of product is very large, and the company's customers are able to buy regularly and in the quantities they need, thus aiding their cashflow. This has proved to be a successful strategy, particularly in recessionary times and at times of high interest rates.

Business review

The year ending in September 2023 was a strong year and showed a substantial increase in operating profit from
the previous year, largely due to increased margins to 28.91% and turnover increase of 8.9% from new high specification branded ranges and reduced costs of container freight. The company has invested in technical services and product certification and the director is of the view that this expenditure has proved to be justified and has contributed to the success of the business. The certification is paid for in advance and some certificates will benefit in the following years of trading.

2024 trading update
The company has seen a similar trading pattern in the first 9 months of the new year with strong margins and turnover consistent with year ending September 2023. The new build market has slowed down due to a number of factors but the company's range of renovation and refurbishment products has strengthened which has compensated for the weakened new build market. The business imports a substantial amount of product from the far east and these purchases are paid for in full when leaving the supplier. Whilst this could impose strain on cashflow the company has excellent resources and is comfortably able to meet all commitments.

PRINCIPAL RISKS AND UNCERTAINTIES
The company's supply chain is understandably extended due to the location of the suppliers and this can be problematic when demand suddenly increases and it is unable to respond quickly. The company's policy is to continually increase stocks in an effort to counteract any problems caused by delays or unexpected increase in demand. It has invested in new racking and storage to facilitate the physical increase in stockholding.
Fluctuations in exchange rates can and do affect the imported cost of goods but the company costs goods on a worst case scenario from this point of view.

Financial risk management

The company's retains an invoice discounting facility with a built in credit protection insurance policy. Credit limits on customers are reviewed regularly and the Company's systems are robust and reliable. Management accounts are produced on a monthly basis and the sales and margin performance is scrutinised.

ON BEHALF OF THE BOARD:





S A Riley - Director


2 September 2024

PRINCIPAL BUILDING PRODUCTS LIMITED (REGISTERED NUMBER: 02733893)

REPORT OF THE DIRECTOR
FOR THE YEAR ENDED 30 SEPTEMBER 2023

The director presents his report with the financial statements of the company for the year ended 30 September 2023.

DIVIDENDS
An interim dividend of 97.2 per share was paid on 29 September 2023. The director recommends that no final dividend be paid.

The total distribution of dividends for the year ended 30 September 2023 will be £ 486,000 .

EVENTS SINCE THE END OF THE YEAR
As shown in note 19, the company decided to change it's bankers to Barclays Bank Plc in February 2023.
Turnover and margin have increased significantly in the ensuing year.

DIRECTOR
S A Riley held office during the whole of the period from 1 October 2022 to the date of this report.

DISCLOSURE IN THE STRATEGIC REPORT
Certain items required under Sch. 7 above to be disclosed in the directors' report are set out in the strategic report in accordance with s.414C(11) CA 2006.

STATEMENT OF DIRECTOR'S RESPONSIBILITIES
The director is responsible for preparing the 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 of the profit or loss of the company 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 transactions and disclose with reasonable accuracy at any time the financial position of the company 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 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 company'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 company's auditors are aware of that information.

AUDITORS
The auditors, Hollis and Co Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





S A Riley - Director


2 September 2024

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
PRINCIPAL BUILDING PRODUCTS LIMITED

Opinion
We have audited the financial statements of Principal Building Products Limited (the 'company') for the year ended 30 September 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 30 September 2023 and of its profit for the year then ended;
-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the 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 director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

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

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

It was deemed the susceptibility to material misstatement was low because of the nature of the business does not lend itself to fraud.

The procedures we carried out were:
- Enquiry of management, those charged with governance around actual and potential litigation and claims;
- Enquiry of entity staff in tax and compliance functions to identify any instances of non-compliance with laws and regulations;
- Reviewing minutes of meetings of those charged with governance
- Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.
- Performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias.

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

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

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
PRINCIPAL BUILDING PRODUCTS 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.




Peter Hollis (Senior Statutory Auditor)
for and on behalf of Hollis and Co Limited
Chartered Accountants
Statutory Auditor
35 Wilkinson Street
Sheffield
South Yorkshire
S10 2GB

2 September 2024

PRINCIPAL BUILDING PRODUCTS LIMITED (REGISTERED NUMBER: 02733893)

INCOME STATEMENT
FOR THE YEAR ENDED 30 SEPTEMBER 2023

2023 2022
Notes £    £    £    £   

TURNOVER 16,567,032 15,214,098

Cost of sales 11,778,134 11,228,261
GROSS PROFIT 4,788,898 3,985,837

Distribution costs 941,274 905,444
Administrative expenses 2,347,727 2,312,571
3,289,001 3,218,015
1,499,897 767,822

Other operating income 5,664 3,324
OPERATING PROFIT 4 1,505,561 771,146


Interest payable and similar expenses 5 65,806 27,772
PROFIT BEFORE TAXATION 1,439,755 743,374

Tax on profit 6 321,008 156,428
PROFIT FOR THE FINANCIAL YEAR 1,118,747 586,946

PRINCIPAL BUILDING PRODUCTS LIMITED (REGISTERED NUMBER: 02733893)

OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 SEPTEMBER 2023

2023 2022
Notes £    £   

PROFIT FOR THE YEAR 1,118,747 586,946


OTHER COMPREHENSIVE INCOME
Deferred tax inc property revaluation - (29,053 )
Income tax relating to other comprehensive
income

-

-
OTHER COMPREHENSIVE INCOME
FOR THE YEAR, NET OF INCOME TAX

-

(29,053

)
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

1,118,747

557,893

PRINCIPAL BUILDING PRODUCTS LIMITED (REGISTERED NUMBER: 02733893)

BALANCE SHEET
30 SEPTEMBER 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 8 1,961,015 1,906,424

CURRENT ASSETS
Stocks 9 1,989,193 2,072,689
Debtors 10 3,401,619 3,397,688
Cash at bank and in hand 154,083 97,105
5,544,895 5,567,482
CREDITORS
Amounts falling due within one year 11 2,510,594 3,170,561
NET CURRENT ASSETS 3,034,301 2,396,921
TOTAL ASSETS LESS CURRENT
LIABILITIES

4,995,316

4,303,345

CREDITORS
Amounts falling due after more than one
year

12

(385,252

)

(348,534

)

PROVISIONS FOR LIABILITIES 16 (190,678 ) (168,172 )
NET ASSETS 4,419,386 3,786,639

CAPITAL AND RESERVES
Called up share capital 17 5,000 5,000
Revaluation reserve 18 363,169 363,169
Retained earnings 18 4,051,217 3,418,470
SHAREHOLDERS' FUNDS 4,419,386 3,786,639

The financial statements were approved by the director and authorised for issue on 2 September 2024 and were signed by:





S A Riley - Director


PRINCIPAL BUILDING PRODUCTS LIMITED (REGISTERED NUMBER: 02733893)

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2023

Called up
share Retained Revaluation Total
capital earnings reserve equity
£    £    £    £   
Balance at 1 October 2021 5,000 3,317,524 392,222 3,714,746

Changes in equity
Dividends - (486,000 ) - (486,000 )
Total comprehensive income - 586,946 (29,053 ) 557,893
Balance at 30 September 2022 5,000 3,418,470 363,169 3,786,639

Changes in equity
Dividends - (486,000 ) - (486,000 )
Total comprehensive income - 1,118,747 - 1,118,747
Balance at 30 September 2023 5,000 4,051,217 363,169 4,419,386

PRINCIPAL BUILDING PRODUCTS LIMITED (REGISTERED NUMBER: 02733893)

CASH FLOW STATEMENT
FOR THE YEAR ENDED 30 SEPTEMBER 2023

2023 2022
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 843,276 834,337
Interest paid (59,810 ) (27,772 )
Interest element of hire purchase payments
paid

(5,996

)

-
Tax paid (171,400 ) (334,919 )
Net cash from operating activities 606,070 471,646

Cash flows from investing activities
Purchase of tangible fixed assets (145,262 ) (27,150 )
Sale of tangible fixed assets 1,500 -
Net cash from investing activities (143,762 ) (27,150 )

Cash flows from financing activities
New loans in year 360,000 -
Loan repayments in year (408,737 ) (27,988 )
New hire purchase contracts in the year 133,112 -
Capital repayments in year (7,821 ) -
Amount introduced by directors 486,000 258
Amount withdrawn by directors (481,884 ) -
Equity dividends paid (486,000 ) (486,000 )
Net cash from financing activities (405,330 ) (513,730 )

Increase/(decrease) in cash and cash equivalents 56,978 (69,234 )
Cash and cash equivalents at beginning of
year

2

97,105

166,339

Cash and cash equivalents at end of year 2 154,083 97,105

PRINCIPAL BUILDING PRODUCTS LIMITED (REGISTERED NUMBER: 02733893)

NOTES TO THE CASH FLOW STATEMENT
FOR THE YEAR ENDED 30 SEPTEMBER 2023

1. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM
OPERATIONS
2023 2022
£    £   
Profit before taxation 1,439,755 743,374
Depreciation charges 89,237 75,583
Profit on disposal of fixed assets (66 ) -
Finance costs 65,806 27,772
1,594,732 846,729
Decrease/(increase) in stocks 83,496 (372,622 )
Increase in trade and other debtors (3,931 ) (77,987 )
(Decrease)/increase in trade and other creditors (831,021 ) 438,217
Cash generated from operations 843,276 834,337

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 30 September 2023
30/9/23 1/10/22
£    £   
Cash and cash equivalents 154,083 97,105
Year ended 30 September 2022
30/9/22 1/10/21
£    £   
Cash and cash equivalents 97,105 166,339


3. ANALYSIS OF CHANGES IN NET DEBT

At 1/10/22 Cash flow At 30/9/23
£    £    £   
Net cash
Cash at bank and in hand 97,105 56,978 154,083
97,105 56,978 154,083
Debt
Finance leases - (125,291 ) (125,291 )
Debts falling due within 1 year (24,461 ) (39,836 ) (64,297 )
Debts falling due after 1 year (348,534 ) 88,573 (259,961 )
(372,995 ) (76,554 ) (449,549 )
Total (275,890 ) (19,576 ) (295,466 )

PRINCIPAL BUILDING PRODUCTS LIMITED (REGISTERED NUMBER: 02733893)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

1. STATUTORY INFORMATION

Principal Building Products 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. ACCOUNTING POLICIES

Basis of preparing the financial statements
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. The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

Turnover
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Freehold property - 2% on cost
Plant and machinery - 20% on reducing balance
Fixtures and fittings - 20% on reducing balance
Motor vehicles - 20% on reducing balance
Computer equipment - 33% on cost

Stocks
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Foreign currencies
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

PRINCIPAL BUILDING PRODUCTS LIMITED (REGISTERED NUMBER: 02733893)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30 SEPTEMBER 2023

2. ACCOUNTING POLICIES - continued

Hire purchase and leasing commitments
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.

3. EMPLOYEES AND DIRECTORS
2023 2022
£    £   
Wages and salaries 1,341,802 1,299,701
Social security costs 141,348 145,255
Other pension costs 123,954 120,398
1,607,104 1,565,354

The average number of employees during the year was as follows:
2023 2022

Sales, warehousing and administration 33 32
Directors 1 1
34 33

2023 2022
£    £   
Director's remuneration 9,133 11,952
Director's pension contributions to money purchase schemes 4,800 4,800

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

Money purchase schemes 1 1

4. OPERATING PROFIT

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

2023 2022
£    £   
Other operating leases 126,522 126,238
Depreciation - owned assets 89,237 75,583
Profit on disposal of fixed assets (66 ) -
Auditors' remuneration 8,500 8,000
Foreign exchange differences (106,744 ) (7,232 )

PRINCIPAL BUILDING PRODUCTS LIMITED (REGISTERED NUMBER: 02733893)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30 SEPTEMBER 2023

5. INTEREST PAYABLE AND SIMILAR EXPENSES
2023 2022
£    £   
Factoring interest 35,603 13,851
Mortgage 24,207 13,921
Hire purchase 5,996 -
65,806 27,772

6. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
2023 2022
£    £   
Current tax:
UK corporation tax 298,502 147,522

Deferred tax 22,506 8,906
Tax on profit 321,008 156,428

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

2023 2022
£    £   
Profit before tax 1,439,755 743,374
Profit multiplied by the standard rate of corporation tax in the UK of
22.008% (2022 - 19%)

316,861

141,241

Effects of:
Expenses not deductible for tax purposes - 49
Capital allowances in excess of depreciation (18,359 ) -
Depreciation in excess of capital allowances - 6,232

Deferred tax 22,506 8,906
Total tax charge 321,008 156,428

Tax effects relating to effects of other comprehensive income

There were no tax effects for the year ended 30 September 2023.

2022
Gross Tax Net
£    £    £   
Deferred tax inc property revaluation (29,053 ) - (29,053 )

PRINCIPAL BUILDING PRODUCTS LIMITED (REGISTERED NUMBER: 02733893)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30 SEPTEMBER 2023

7. DIVIDENDS
2023 2022
£    £   
Ordinary shares of £1 each
Interim 486,000 486,000

8. TANGIBLE FIXED ASSETS
Fixtures
Freehold Plant and and
property machinery fittings
£    £    £   
COST OR VALUATION
At 1 October 2022 1,836,371 233,622 122,035
Additions - - -
Disposals - - -
At 30 September 2023 1,836,371 233,622 122,035
DEPRECIATION
At 1 October 2022 73,455 156,874 62,588
Charge for year 36,727 15,350 11,890
Eliminated on disposal - - -
At 30 September 2023 110,182 172,224 74,478
NET BOOK VALUE
At 30 September 2023 1,726,189 61,398 47,557
At 30 September 2022 1,762,916 76,748 59,447

Motor Computer
vehicles equipment Totals
£    £    £   
COST OR VALUATION
At 1 October 2022 16,460 27,796 2,236,284
Additions 142,767 2,495 145,262
Disposals (15,460 ) - (15,460 )
At 30 September 2023 143,767 30,291 2,366,086
DEPRECIATION
At 1 October 2022 15,202 21,741 329,860
Charge for year 18,991 6,279 89,237
Eliminated on disposal (14,026 ) - (14,026 )
At 30 September 2023 20,167 28,020 405,071
NET BOOK VALUE
At 30 September 2023 123,600 2,271 1,961,015
At 30 September 2022 1,258 6,055 1,906,424

PRINCIPAL BUILDING PRODUCTS LIMITED (REGISTERED NUMBER: 02733893)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30 SEPTEMBER 2023

8. TANGIBLE FIXED ASSETS - continued

Cost or valuation at 30 September 2023 is represented by:

Fixtures
Freehold Plant and and
property machinery fittings
£    £    £   
Valuation in 2020 328,573 - -
Cost 1,507,798 233,622 122,035
1,836,371 233,622 122,035

Motor Computer
vehicles equipment Totals
£    £    £   
Valuation in 2020 - - 328,573
Cost 143,767 30,291 2,037,513
143,767 30,291 2,366,086

If freehold land and buildings had not been revalued they would have been included at the following historical cost:

2023 2022
£    £   
Cost 1,507,798 1,507,798
Aggregate depreciation 239,548 215,964

Value of land in freehold land and buildings 1,291,834 1,291,834

Freehold land and buildings were valued on an open market basis on 24 August 2020 by Eddisons Chartered Surveyors .

9. STOCKS
2023 2022
£    £   
Finished goods 1,989,193 2,072,689

10. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Trade debtors 3,334,133 3,322,970
Other debtors 28,039 24,689
Prepayments and accrued income 39,447 50,029
3,401,619 3,397,688

Included in trade debtors is an amount of £2,221,489 (2021 £2,373,054) which is subject to an invoice discounting agreement.

PRINCIPAL BUILDING PRODUCTS LIMITED (REGISTERED NUMBER: 02733893)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30 SEPTEMBER 2023

11. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Bank loans and overdrafts (see note 13) 64,297 24,461
Trade creditors 1,765,941 2,045,743
Tax 274,624 147,522
Social security and other taxes 40,922 41,800
VAT 217,747 141,578
Other creditors - 640,163
Directors' current accounts 4,936 820
Accruals and deferred income 142,127 128,474
2,510,594 3,170,561

12. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR
2023 2022
£    £   
Bank loans (see note 13) 259,961 348,534
Hire purchase contracts (see note 14) 125,291 -
385,252 348,534

13. LOANS

An analysis of the maturity of loans is given below:

2023 2022
£    £   
Amounts falling due within one year or on demand:
Bank loans 64,297 24,461

Amounts falling due between one and two years:
Bank loans - 1-2 years 69,565 25,579

Amounts falling due between two and five years:
Bank loans - 2-5 years 190,396 86,784

Amounts falling due in more than five years:

Repayable by instalments
Bank loans more 5 yr by instal - 236,171

The bank loan is repayable by monthly instalments , the interest chargeable on the loan is 2.92% over the Bank Base rate and the maturity of the loan is 21 March 2028.

PRINCIPAL BUILDING PRODUCTS LIMITED (REGISTERED NUMBER: 02733893)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30 SEPTEMBER 2023

14. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase contracts
2023 2022
£    £   
Net obligations repayable:
Between one and five years 125,291 -

Non-cancellable operating leases
2023 2022
£    £   
Within one year 45,163 116,981
Between one and five years 37,580 76,105
82,743 193,086

15. SECURED DEBTS

The following secured debts are included within creditors:

2023 2022
£    £   
Bank loans 324,258 372,995
Other creditors - 640,163
324,258 1,013,158

The other creditors are secured by a charge over certain book debts.

The bank loan is secured by a legal mortgage the freehold property of the company and by a debenture over all property and assets of the company,

16. PROVISIONS FOR LIABILITIES
2023 2022
£    £   
Deferred tax
Accelerated capital allowances 69,622 47,116
Other timing differences 121,056 121,056
190,678 168,172

Deferred
tax
£   
Balance at 1 October 2022 168,172
Provided during year 22,506
Balance at 30 September 2023 190,678

PRINCIPAL BUILDING PRODUCTS LIMITED (REGISTERED NUMBER: 02733893)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30 SEPTEMBER 2023

17. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: £    £   
5,000 Ordinary £1 5,000 5,000

18. RESERVES
Retained Revaluation
earnings reserve Totals
£    £    £   

At 1 October 2022 3,418,470 363,169 3,781,639
Profit for the year 1,118,747 1,118,747
Dividends (486,000 ) (486,000 )
At 30 September 2023 4,051,217 363,169 4,414,386

19. POST BALANCE SHEET EVENTS

In February 2023 the company's bank loan with HSBC Bank Plc was refinanced with Barclays Bank Plc.

In February 2023 the company's confidential invoice discounting facility with HSBC Invoice Finance (Uk) Ltd, was replaced with a similar facility with Barclays Bank Plc.