Company registration number 00908180 (England and Wales)
PALLETOWER (G.B.) LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
PALLETOWER (G.B.) LIMITED
COMPANY INFORMATION
Directors
Mr M R Palmer
Mr R J Palmer
Mr L Spratt
Company number
00908180
Registered office
Pallet Centre Europe
Dane Road Industrial Estate
Sale
M33 7BH
Auditor
MHA
80 Mosley Street
Manchester
M2 3FX
PALLETOWER (G.B.) LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Notes to the financial statements
11 - 23
PALLETOWER (G.B.) LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -
The directors present the strategic report for the year ended 31 December 2023.
Principal activities
The principal activity throughout the period remained the manufacture and supply of storage and logistics equipment.
Review of the business
The company continued to develop its business activities and was able to keep sales above £30m. Given the significant reduction in seafreight and the deflation this caused to the market rate of many of our products this reduction was expected. Cash levels also continued to grow.
Domestic sales and rental fell to £26.3m. the sales reduction being attributable to the deflationary nature of products due to significantly reduced shipping costs.
Export sales remained above £7.5m with the number of territories being served increasing year on year.
Profit margins remained strong. Despite the £3m turnover drop, gross profit fell by only £216K.
Stock levels were maintained above the £9m level and reflect the continued high demand for the company's products.
Principal risks and uncertainties
Markets remain unstable due to global uncertainty and security which can majorly alter seafreight costs at short notice . The company continues to use foreign exchange forward contracts to minimise its trading risk. All UK and export debt is insured to minimise bad debt exposure.
Global supply chain issues continued to affect raw material and shipping availability. The company however continued to trade well and has used its experience and size to trade effectively through all the problems it faced.
Development and Future Outlook
Despite tough and uncertain times and markets, the company has a diverse global customer base alongside significant stocks and reserves. It is therefore in a strong position for the year ahead.
Financial Key Performance Indicators
The following are used as KPI's to measure performance with previous years :
2023 2022
Turnover £30.06m £33.07m
Turnover Change Down 9% Up 30%
Gross profit margin 32.9% 30.6%
Profit before tax £5.68m £5.91m
PALLETOWER (G.B.) LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
Mr M R Palmer
Director
16 September 2024
PALLETOWER (G.B.) LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
The directors present their annual report and financial statements for the year ended 31 December 2023.
Results and dividends
The results for the year are set out on page 8.
Ordinary dividends were paid amounting to £2,265,000. The directors do not recommend payment of a further dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr M R Palmer
Mr R J Palmer
Mr L Spratt
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
Medium-sized companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
On behalf of the board
Mr M R Palmer
Director
16 September 2024
PALLETOWER (G.B.) LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
PALLETOWER (G.B.) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF PALLETOWER (G.B.) LIMITED
- 5 -
Opinion
We have audited the financial statements of Palletower (G.B.) Limited (the 'company') for the year ended 31 December 2023 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the company's affairs as at 31 December 2023 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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. 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 course of 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.
PALLETOWER (G.B.) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF PALLETOWER (G.B.) LIMITED (CONTINUED)
- 6 -
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
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 directors' report.
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters in relation to which 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 remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
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 specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud, is detailed below:
Enquiries with management, about any known or suspected instances of non-compliance with laws and regulations and fraud;
Challenging assumptions and judgements made by management in their key accounting estimates;
Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness;
Reviewing board minutes and legal and professional expenditure to identify any evidence of ongoing litigation or enquiries; and
Addressed risk of fraud in occurrence of revenue recognition through testing revenue transactions back to supporting evidence.
PALLETOWER (G.B.) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF PALLETOWER (G.B.) LIMITED (CONTINUED)
- 7 -
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.
Lee Van Houplines FCA
Senior Statutory Auditor
For and on behalf of MHA, Statutory Auditor
Manchester, United Kingdom
16 September 2024
MHA is the trading name of MacIntyre Hudson LLP, a limited liability partnership in England and Wales (registered number OC312313)
PALLETOWER (G.B.) LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
2023
2022
Notes
£
£
Turnover
3
30,059,195
33,066,444
Cost of sales
(20,165,924)
(22,956,614)
Gross profit
9,893,271
10,109,830
Distribution costs
(2,506,568)
(2,342,000)
Administrative expenses
(2,199,318)
(2,105,225)
Other operating income
62,571
Operating profit
4
5,249,956
5,662,605
Interest receivable and similar income
7
460,296
269,608
Interest payable and similar expenses
8
(31,823)
(17,322)
Profit before taxation
5,678,429
5,914,891
Tax on profit
9
(1,270,548)
(1,090,281)
Profit for the financial year
4,407,881
4,824,610
The profit and loss account has been prepared on the basis that all operations are continuing operations.
PALLETOWER (G.B.) LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 9 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
11
553,286
444,100
Current assets
Stocks
12
9,193,183
9,353,521
Debtors
13
12,919,332
13,619,068
Cash at bank and in hand
2,535,650
269,289
24,648,165
23,241,878
Creditors: amounts falling due within one year
14
(6,292,834)
(6,968,746)
Net current assets
18,355,331
16,273,132
Total assets less current liabilities
18,908,617
16,717,232
Provisions for liabilities
Deferred tax liability
16
61,326
12,822
(61,326)
(12,822)
Net assets
18,847,291
16,704,410
Capital and reserves
Called up share capital
18
5,000
5,000
Capital redemption reserve
750,000
750,000
Profit and loss reserves
18,092,291
15,949,410
Total equity
18,847,291
16,704,410
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.
The financial statements were approved by the board of directors and authorised for issue on 16 September 2024 and are signed on its behalf by:
Mr M R Palmer
Director
Company registration number 00908180 (England and Wales)
PALLETOWER (G.B.) LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
Share capital
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 January 2022
5,000
750,000
11,713,663
12,468,663
Year ended 31 December 2022:
Profit and total comprehensive income
-
-
4,824,610
4,824,610
Dividends
10
-
-
(588,863)
(588,863)
Balance at 31 December 2022
5,000
750,000
15,949,410
16,704,410
Year ended 31 December 2023:
Profit and total comprehensive income
-
-
4,407,881
4,407,881
Dividends
10
-
-
(2,265,000)
(2,265,000)
Balance at 31 December 2023
5,000
750,000
18,092,291
18,847,291
PALLETOWER (G.B.) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
1
Accounting policies
Company information
Palletower (G.B.) Limited is a private company limited by shares incorporated in England and Wales. The registered office is Pallet Centre Europe, Dane Road Industrial Estate, Sale, M33 7BH.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
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 financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
This 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:
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: Interest income/expense and net gains/losses for financial instruments not measured at fair value; 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 26 ‘Share based Payment’: Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
The company has taken advantage of the exemption under section 400 of the Companies Act 2006 not to prepare consolidated accounts. The financial statements present information about the company as an individual entity and not about its group.
Palletower (G.B.) Limited is a wholly owned subsidiary of RW Jupe Limited and the results of Palletower (G.B.) Limited are included in the consolidated financial statements of RW Jupe Limited which are available from Pallet Centre Europe, Dane Road Industrial Estate, Sale, Cheshire, M33 7BH.
1.2
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover represents amounts recognised by the company in respect of goods supplied, exclusive of Value Added Tax and trade discounts. Turnover principally consists of sale and rental of storage handling and distribution equipment.
PALLETOWER (G.B.) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 12 -
1.4
Tangible fixed assets
Tangible fixed assets are stated at historical cost less accumulated depreciation and any provisions for impairment. Tangible fixed assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:
Leasehold land and buildings
20% straight line
Plant and equipment
10-33% straight line
Tooling and equipment
20-33% straight line
Motor vehicles
33% straight line
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 profit or loss.
1.5
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible 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.
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 is estimated to be less than its carrying amount, the carrying amount of the asset 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 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 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.
1.6
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. Cost is calculated on a first in first out basis and includes all costs and duties incurred in bringing the stock to the Company's premises.
PALLETOWER (G.B.) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 13 -
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. Provisions are made for obsolete, slow moving or defective items where appropriate.
1.7
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.
1.8
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company 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.
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 carried 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.
PALLETOWER (G.B.) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 14 -
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 company transfers the financial asset and substantially all the risks 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 company 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.
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
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
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 company’s contractual obligations expire or are discharged or cancelled.
1.9
Equity instruments
Equity instruments issued by the company 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 company.
1.10
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
PALLETOWER (G.B.) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 15 -
Current tax
The tax currently 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 company’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 when the company has 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.
1.11
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.
1.12
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.13
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
PALLETOWER (G.B.) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 16 -
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are 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.
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
Useful life of fixed assets
In making decisions regarding the depreciation of fixed assets, management must estimate the useful life of said assets to the business. A change in estimate would result in a change in the depreciation charged to the statement of total comprehensive income in the year.
3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Sale of goods
26,272,207
29,006,667
Rentals
3,786,988
4,083,777
Other
-
(24,000)
30,059,195
33,066,444
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
22,370,637
25,763,686
Rest of the world
7,688,558
7,302,758
30,059,195
33,066,444
2023
2022
£
£
Other revenue
Interest income
460,296
269,608
PALLETOWER (G.B.) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 17 -
4
Operating profit
2023
2022
Operating profit for the year is stated after charging:
£
£
Exchange losses
37,228
60,284
Fees payable to the company's auditor for the audit of the company's financial statements
21,000
15,000
Depreciation of owned tangible fixed assets
180,963
122,026
Operating lease charges
508,260
514,210
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Assembly and distribution staff
41
38
Management staff
18
14
Total
59
52
Their aggregate remuneration comprised:
2023
2022
£
£
Wages and salaries
2,382,464
2,172,683
Social security costs
235,374
216,024
Pension costs
130,609
124,785
2,748,447
2,513,492
6
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
505,486
535,318
Company pension contributions to defined contribution schemes
37,689
41,621
543,175
576,939
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2022 - 2).
PALLETOWER (G.B.) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
6
Directors' remuneration
(Continued)
- 18 -
Remuneration disclosed above include the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
278,223
298,585
Company pension contributions to defined contribution schemes
23,649
26,031
7
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
635
1
Interest receivable from group companies
459,661
269,607
Total income
460,296
269,608
8
Interest payable and similar expenses
2023
2022
£
£
Interest on bank overdrafts and loans
903
12,356
Other interest
30,920
4,966
31,823
17,322
9
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
1,221,319
1,079,867
Adjustments in respect of prior periods
725
Total current tax
1,222,044
1,079,867
Deferred tax
Origination and reversal of timing differences
48,504
10,414
Total tax charge
1,270,548
1,090,281
PALLETOWER (G.B.) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
9
Taxation
(Continued)
- 19 -
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2023
2022
£
£
Profit before taxation
5,678,429
5,914,891
Expected tax charge based on the standard rate of corporation tax in the UK of 23.52% (2022: 19.00%)
1,335,567
1,123,829
Tax effect of expenses that are not deductible in determining taxable profit
28,821
364
Adjustments in respect of prior years
(479)
Effect of change in corporation tax rate
2,899
Group relief
(96,260)
(47,094)
Depreciation on assets not qualifying for tax allowances
2,768
Deferred tax movement
10,414
Taxation charge for the year
1,270,548
1,090,281
10
Dividends
2023
2022
£
£
Final paid
2,265,000
588,863
PALLETOWER (G.B.) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 20 -
11
Tangible fixed assets
Leasehold land and buildings
Plant and equipment
Tooling and equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 January 2023
539,490
160,093
216,861
99,882
1,016,326
Additions
34,951
33,259
130,419
91,520
290,149
At 31 December 2023
574,441
193,352
347,280
191,402
1,306,475
Depreciation and impairment
At 1 January 2023
165,313
137,428
216,861
52,624
572,226
Depreciation charged in the year
114,637
19,995
10,948
35,383
180,963
At 31 December 2023
279,950
157,423
227,809
88,007
753,189
Carrying amount
At 31 December 2023
294,491
35,929
119,471
103,395
553,286
At 31 December 2022
374,177
22,665
47,258
444,100
12
Stocks
2023
2022
£
£
Finished goods and goods for resale
9,193,183
9,353,521
13
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
6,180,009
7,912,877
Amounts owed by group undertakings
705,087
240,445
Other debtors
124,987
14,512
Prepayments and accrued income
349,179
298,687
7,359,262
8,466,521
2023
2022
Amounts falling due after more than one year:
£
£
Amounts owed by group undertakings
5,560,070
5,152,547
Total debtors
12,919,332
13,619,068
PALLETOWER (G.B.) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 21 -
14
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Bank loans
15
121,695
Trade creditors
2,878,032
2,063,999
Corporation tax
745,878
554,786
Other taxation and social security
731,072
1,031,528
Other creditors
413,894
2,436,357
Accruals and deferred income
1,523,958
760,381
6,292,834
6,968,746
Included within other creditors, are invoice discounting advances amounting to £nil (2022: £2,408,819) which are secured against the book debts of the company.
15
Loans and overdrafts
2023
2022
£
£
Bank loans
121,695
Payable within one year
121,695
Bank loans falling due within and after one year are secured in favour of HSBC Bank Plc by a first-ranking debenture over all assets, an unlimited intercompany composite guarantee, a fixed charge over contract monies of the company, and a life policy attributable to M R Palmer, a director of the company.
16
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2023
2022
Balances:
£
£
Fixed asset timing differences
64,793
12,822
Short term timing differences - trading
(3,467)
-
61,326
12,822
PALLETOWER (G.B.) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
16
Deferred taxation
(Continued)
- 22 -
2023
Movements in the year:
£
Liability at 1 January 2023
12,822
Charge to profit or loss
48,504
Liability at 31 December 2023
61,326
As at the signing date of these financial statements, the company has not finalised its capital expenditure programme for the forthcoming year and therefore an assessment as to the likely movement of timing differences expected to reverse within the next 12 months cannot be made.
17
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
130,609
124,785
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
Contributions totalling £25,040 (2022: £22,985) were payable to the fund at the balance sheet date and are included in creditors.
18
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
5,000
5,000
5,000
5,000
19
Financial commitments, guarantees and contingent liabilities
Contingent liabilities
The company has a counter indemnity re-guarantee dated 5 October 1993 for £60,000 in favour of HM Revenue and Customs.
The company has an unlimited cross company guarantee dated 10 December 2012 with its ultimate controlling company, RW Jupe Limited, in favour of HSBC Bank Plc. At the balance sheet date, the net indebtedness to HSBC Bank Plc by RW Jupe Limited amounts to £nil (2022: £nil)
Derivatives
At the year end date, the company had entered into forward contracts maturing within 3 months of the year end to sell US Dollars for GBP totalling $2,880,000 (2022: $372,421) at fixed rates.
The fair value of these contracts is not considered material to the company and therefore no asset or liability has been recognised.
PALLETOWER (G.B.) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 23 -
20
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2023
2022
£
£
Within one year
428,625
505,549
Between two and five years
958,639
981,434
In over five years
273,000
1,660,264
1,486,983
21
Related party transactions
Transactions with related parties
During the year the company entered into the following transactions with related parties:
Purchases
Purchases
2023
2022
£
£
Rent paid to Palmer Properties Investments Partnership
213,824
213,824
Previous management charges waived
2023
2022
£
£
Entities with control, joint control or significant influence over the company
-
24,000
The following amounts were outstanding at the reporting end date:
2023
2022
Amounts due from related parties
£
£
Director's close family member
-
11,721
22
Ultimate controlling party
The immediate and ultimate parent company is R W Jupe Limited by virtue of its controlling interest in the entity.
The parent company of the largest and smallest group that includes the company and for which group financial statements are prepared is R W Jupe Limited. Copies of the R W Jupe Limited consolidated financial statements, which includes Palletower (G.B.) Limited, are available from Pallet Centre Europe, Dane Road Industrial Estate, Sale, Cheshire, M33 7BH.
2023-12-312023-01-01falseCCH SoftwareCCH Accounts Production 2024.200Mr M R PalmerMr R J PalmerMr L Sprattfalsefalse009081802023-01-012023-12-3100908180bus:Director12023-01-012023-12-3100908180bus:Director22023-01-012023-12-3100908180bus:Director32023-01-012023-12-3100908180bus:RegisteredOffice2023-01-012023-12-31009081802023-12-31009081802022-01-012022-12-3100908180core:RetainedEarningsAccumulatedLosses2022-01-012022-12-3100908180core:RetainedEarningsAccumulatedLosses2023-01-012023-12-31009081802022-12-3100908180core:LandBuildingscore:LeasedAssetsHeldAsLessee2023-12-3100908180core:PlantMachinery2023-12-3100908180core:FurnitureFittings2023-12-3100908180core:MotorVehicles2023-12-3100908180core:LandBuildingscore:LeasedAssetsHeldAsLessee2022-12-3100908180core:PlantMachinery2022-12-3100908180core:FurnitureFittings2022-12-3100908180core:MotorVehicles2022-12-3100908180core:CurrentFinancialInstrumentscore:WithinOneYear2023-12-3100908180core:CurrentFinancialInstrumentscore:WithinOneYear2022-12-3100908180core:CurrentFinancialInstruments2023-12-3100908180core:CurrentFinancialInstruments2022-12-3100908180core:ShareCapital2023-12-3100908180core:ShareCapital2022-12-3100908180core:CapitalRedemptionReserve2023-12-3100908180core:CapitalRedemptionReserve2022-12-3100908180core:RetainedEarningsAccumulatedLosses2023-12-3100908180core:RetainedEarningsAccumulatedLosses2022-12-3100908180core:ShareCapital2021-12-3100908180core:CapitalRedemptionReserve2021-12-3100908180core:RetainedEarningsAccumulatedLosses2021-12-3100908180core:LandBuildingscore:LongLeaseholdAssets2023-01-012023-12-3100908180core:PlantMachinery2023-01-012023-12-3100908180core:FurnitureFittings2023-01-012023-12-3100908180core:MotorVehicles2023-01-012023-12-310090818012023-01-012023-12-310090818012022-01-012022-12-3100908180core:UKTax2023-01-012023-12-3100908180core:UKTax2022-01-012022-12-310090818022023-01-012023-12-310090818022022-01-012022-12-3100908180core:LandBuildingscore:LeasedAssetsHeldAsLessee2022-12-3100908180core:PlantMachinery2022-12-3100908180core:FurnitureFittings2022-12-3100908180core:MotorVehicles2022-12-31009081802022-12-3100908180core:LandBuildingscore:LeasedAssetsHeldAsLessee2023-01-012023-12-3100908180core:AfterOneYear2023-12-3100908180core:AfterOneYear2022-12-3100908180core:WithinOneYear2023-12-3100908180core:WithinOneYear2022-12-3100908180core:BetweenTwoFiveYears2023-12-3100908180core:BetweenTwoFiveYears2022-12-3100908180core:MoreThanFiveYears2023-12-3100908180core:MoreThanFiveYears2022-12-3100908180bus:PrivateLimitedCompanyLtd2023-01-012023-12-3100908180bus:FRS1022023-01-012023-12-3100908180bus:Audited2023-01-012023-12-3100908180bus:FullAccounts2023-01-012023-12-31xbrli:purexbrli:sharesiso4217:GBP