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Registration number: 00941929

Pen Cutting Tools Limited

Unaudited Filleted Financial Statements

for the Year Ended 31 December 2023

 

Pen Cutting Tools Limited

Directors' Report for the Year Ended 31 December 2023

The directors present their report and the financial statements for the year ended 31 December 2023.

Directors of the company

The directors who held office during the year were as follows:

Mr P J Raybould

Mr J Whitfield

Mrs E A Whitfield (ceased 31 March 2024)

Mr S J Ling

Mrs H A Raybould (ceased 31 March 2024)

Mrs C A Ling (ceased 31 March 2024)

Small companies provision statement

This report has been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

Approved and authorised by the Board on 25 September 2024 and signed on its behalf by:
 

.........................................
Mr S J Ling
Director

 

Pen Cutting Tools Limited

(Registration number: 00941929)
Balance Sheet as at 31 December 2023

Note

2023
£

2022
£

Fixed assets

 

Tangible assets

4

£393,798

£446,500

Current assets

 

Stocks

5

£112,345

£190,000

Debtors

6

£710,736

£837,297

Cash at bank and in hand

 

£8,671

£6,342

 

£831,752

£1,033,639

Creditors: Amounts falling due within one year

7

£362,929

£333,168

Net current assets

 

£468,823

£700,471

Total assets less current liabilities

 

£862,621

£1,146,971

Creditors: Amounts falling due after more than one year

7

£229,000

£346,999

Provisions for liabilities

£74,822

£84,835

Net assets

 

£558,799

£715,137

Capital and reserves

 

Called up share capital

£3,300

£3,300

Capital redemption reserve

£8,700

£8,700

Revaluation reserve

£191,482

£394,239

Retained earnings

£355,317

£308,898

Shareholders' funds

 

£558,799

£715,137

For the financial year ending 31 December 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476; and

The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime. As permitted by section 444 (5A) of the Companies Act 2006, the directors have not delivered to the registrar a copy of the Profit and Loss Account.

Approved and authorised by the Board on 25 September 2024 and signed on its behalf by:
 

 

Pen Cutting Tools Limited

(Registration number: 00941929)
Balance Sheet as at 31 December 2023

.........................................
Mr S J Ling
Director

 

Pen Cutting Tools Limited

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

1

General information

The company is a private company limited by share capital, incorporated in United Kingdom.

The address of its registered office is:
Bold Street
Attercliffe
Sheffield
South Yorkshire
S9 2LR

These financial statements were authorised for issue by the Board on 25 September 2024.

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A smaller entities - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006 (as applicable to companies subject to the small companies' regime).

Basis of preparation

These financial statements have been prepared using the historical cost convention modified by the revaluation of certain fixed assets.

The accounts are presented in £ sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

Going concern

The financial statements have been prepared on a going concern basis.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.

The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.

Foreign currency transactions and balances

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rate on the date when the fair value is re-measured.

Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.

 

Pen Cutting Tools Limited

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

Tax

The tax expense for the period comprises deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Deferred tax arises as a result of including items of income and expenditure in taxation computations in periods different from those in which they are included in the company's accounts. Deferred tax is provided in full on timing differences which result in an obligation to pay more (or less) tax at a future date, at the average tax rates that are expected to apply when the timing differences reverse, based on current tax rates and laws.

Deferred tax assets and liabilities are not discounted.

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Plant & machinery

15% straight line (revalued assets over 5.25 years)

Computer equipment

33% straight line

Fixture and fittings

15% straight line

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

Stocks

Inventories have been valued at the lower of cost and estimated selling price less costs to complete and sell.

In respect of work in progress and finished goods, cost includes a relevant proportion of overheads according to the stage of manufacturing/completion.

 

Pen Cutting Tools Limited

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

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

3

Staff numbers

The average number of persons employed by the company (including directors) during the year, was 28 (2022 - 24).

 

Pen Cutting Tools Limited

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

4

Tangible assets

Fixtures and fittings
£

Plant and machinery
£

Office equipment
£

Total
£

Cost or valuation

At 1 January 2023

£90,451

£694,360

£115,211

£900,022

Additions

£155

£86,500

£2,954

£89,609

Disposals

£Nil

£Nil

£1,076

£1,076

At 31 December 2023

£90,606

£780,860

£117,089

£988,555

Depreciation

At 1 January 2023

£89,073

£250,053

£114,396

£453,522

Charge for the year

£514

£140,907

£890

£142,311

Eliminated on disposal

£Nil

£Nil

£1,076

£1,076

At 31 December 2023

£89,587

£390,960

£114,210

£594,757

Carrying amount

At 31 December 2023

£1,019

£389,900

£2,879

£393,798

At 31 December 2022

£1,378

£444,307

£815

£446,500

The carrying amount of plant & machinery on cost basis £198,418 (2022: £167,722)

The company's plant and machinery asset class was revalued on 31 December 2020 to £584,010.
 

5

Stocks

2023
£

2022
£

Other inventories

£112,345

£190,000

6

Debtors

Current

Note

2023
£

2022
£

Trade debtors

 

£283,052

£386,153

Amounts owed by related parties

10

£398,373

£398,373

Prepayments

 

£29,311

£52,771

   

£710,736

£837,297

 

Pen Cutting Tools Limited

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

7

Creditors

Creditors: amounts falling due within one year

Note

2023
£

2022
£

Due within one year

 

Loans and borrowings

8

£200,585

£186,003

Trade creditors

 

£46,608

£61,590

Taxation and social security

 

£49,329

£63,143

Accruals and deferred income

 

£20,407

£22,432

Other creditors

 

£46,000

£Nil

 

£362,929

£333,168


Within 'Loans and borrowings' is an amount of £160,119 (2022: £107,508) secured against the company's trade debtors, and an amount of £100,000 (2022: £100,000) secured against the assets of the company.

Other creditors also include £46,000 (2022: £Nil) which is secured via a fixed charge over the company's assets

Creditors: amounts falling due after more than one year

Note

2023
£

2022
£

Due after one year

 

Loans and borrowings

8

£229,000

£346,999


Within 'loans and borrowings' is an amount of £229,000 (2022: £346,999) secured against the assets of the company.

8

Loans and borrowings

Non-current loans and borrowings

2023
£

2022
£

Bank borrowings

£229,000

£346,999

Current loans and borrowings

2023
£

2022
£

Bank borrowings

£200,585

£186,003

9

Obligations under leases and hire purchase contracts

Operating leases

The total of future minimum lease payments is as follows:

 

Pen Cutting Tools Limited

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

2023
£

2022
£

Not later than one year

£21,458

£2,290

Later than one year and not later than five years

£13,453

£Nil

Later than five years

£Nil

£892,000

£34,911

£894,290

10

Related party transactions

Since 31 December 2019, the company has entered into a composite cross guarantee (together with its ultimate parent company) to secure the financing of its working capital. At the balance sheet date, the potential liability in respect of this guarantee amounted to £152,265 (2022: £107,508).

As at 31 December 2023, Pen Cutting Holdings Limited, the immediate parent company owed Pen Cutting Tools £398,373 (2022: £398,373)

Controlling party

The company's immediate parent undertaking and sole shareholder is Pen Cutting Holdings Limited, a company incorporated in the UK. The company's ultimate parent undertaking is Threesixty Holdco 2 Limited, a company incorporated in the UK.