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Registered number: 823259










PEKTRON GROUP LIMITED










ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

 
PEKTRON GROUP LIMITED
 

COMPANY INFORMATION


Directors
I S Harpham 
J M Hatton 
G Ball 
G Colwill 




Company secretary
P D Morgan



Registered number
823259



Registered office
Alfreton Road

Derby

DE21 4AP




Independent auditors
PKF Smith Cooper Audit Limited
Statutory Auditors

Prospect House

1 Prospect Place

Derby

DE24 8HG





 
PEKTRON GROUP LIMITED
 

CONTENTS



Page
Group Strategic Report
1 - 3
Directors' Report
4 - 7
Independent Auditors' Report
8 - 11
Consolidated Statement of Comprehensive Income
12
Consolidated Balance Sheet
13
Company Balance Sheet
14
Consolidated Statement of Changes in Equity
15
Company Statement of Changes in Equity
16
Consolidated Statement of Cash Flows
17
Notes to the Financial Statements
18 - 36


 
PEKTRON GROUP LIMITED
 

GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

Business review
 
 Within this report the directors aim to present a balanced and comprehensive review of the development and performance of the business during the year and its position at the year end. Our review is consistent with the size and nature of our business and is written in the context of the risks and uncertainties we face. We are satisfied with the performance of the Group, even though turnover has decreased, as  profitability remains strong with a reasonable gross margin, which is due to the composition of sales. The impact of various external events has seen challenges to the supply chain costs and delivery.

Principal risks and uncertainties
 
Considering the risks and uncertainties the Group has identified, we are aware that any plans for the future development of the business may be subject to unforeseen events outside our control. The Group remain confident that the uncertainties arising from any uncertainties should be able to be managed.
The Group has experienced increased turnover levels and cashflows remain healthy. The directors have not considered it necessary to prepare formal forecasts for the Group given the overall strength of the cash position of the Group, which retains considerable levels of cash and no external debt.

Financial key performance indicators
 
We consider that our key financial performance indicators are those that communicate the financial performance and strength of the Group as a whole, these being turnover, gross margin and cash flow. Turnover has decreased by 14%, whilst the margin has increased by 1.3%. Overall profitability, excluding exceptionals, has remained fairly stable. Cash being generated from operating activities remains strong.

Other key performance indicators
 
There are no other KPIs are used by the directors, although customer satisfaction is measured through the Quality Management System monitoring various criteria.

Page 1

 
PEKTRON GROUP LIMITED
 

GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Directors' statement of compliance with duty to promote the success of the Group
 
 The Directors of Pektron Group Limited consider that they have acted in the way they consider, in good faith, would be the most likely to promote the success of the Group and Company for the benefit of its members as a whole, having regard to matters set out in s172(1)(a-f) of the Companies Act 2006, in the decisions taken during the year ended  31 December 2023. In particular:
(a) Likely consequences of any decision in the long-term
Our core business model and strategy are designed to secure sustainable long-term growth whilst continuing to deliver strong results in the meantime. 
(b) The interests of the Group’s employees
Our employees are fundamental to the delivery of our strategy. We encourage employee participation and have worked hard on improving the working environment. We have regard for their interests and this has helped shaped our decision-making processes.
(c) The need to foster the Group’s business relationships with suppliers, customers and others
Engaging with our stakeholders is very much a part of our ethos as it strengthens our relationships and helps us make better business decisions. 
(d) The impact of the Group’s operations on the community and the environment
We are proud to support our local community. In 2023, as part of our Corporate Social Responsibility (CSR) programme, we have donated funds to support local communities, charities and good causes.
We have introduced a number of initiatives to minimise our impact on the environment, including energy saving lighting and heating at our premises and a cycle to work scheme open to all our employees. We strive to reduce the use of natural resources and generation of waste.
Our environment policy states that our aim is to minimise the impacts of our operations onto the environment to protect the habitat from industrial damage.
(e) The desirability of the Group maintaining a reputation for high standards of business conduct
The Board is committed to achieving and maintaining high standards of business conduct, corporate governance, integrity and business ethics.
A key to maintaining our reputation for high standards is to treat our customers, partners and employees fairly at all times, and our approach to conducting our business is focused on this outcome. We have designed a Risk Management Framework that is both robust and acts as an enabler to our business. This gives the Board confidence that the Group’s strategic and growth objectives can be met within our risk and business conduct framework.
Pektron Group Limited has always aimed to operate with the highest integrity. We seek excellence and are proud of our business integrity and commitment to our customers.
We measure customer satisfaction through our Quality Management System monitoring various criteria. This indicates that in 2023 all of our targets were achieved.
 
Page 2

 
PEKTRON GROUP LIMITED
 

GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023


(f) The need to act fairly as between members of the Company.
The Company is a private limited company and the interests of the shareholders as a whole are considered so that members are treated fairly.


This report was approved by the board on 25 September 2024 and signed on its behalf.



G Ball
Director

Page 3

 
PEKTRON GROUP 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' responsibilities statement

The directors are responsible for preparing the Group Strategic Report, the Directors' Report and the consolidated 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 the Group and of the profit or loss of the Group for that period.

 In preparing these financial statements, the directors are required to:


select suitable accounting policies for the Group's financial statements and then apply them consistently;

make judgments and accounting estimates that are reasonable and prudent;

state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group 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 the Group and to enable them to ensure that the financial statements comply with the Companies Act 2006They are also responsible for safeguarding the assets of the Company and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Results and dividends

The profit for the year, after taxation and minority interests, amounted to £4,550,751 (2022 - £6,278,217).

Dividends of £1,500,000 were paid during the year (2022: £3,000,000). No further dividends are proposed for the year.

Directors

The directors who served during the year were:

I S Harpham 
J M Hatton 
G Ball 
G Colwill 

Future developments

The business continues to search out and win new business in all areas, however there are no likely future developments that will have a large impact on the business. 

Financial instruments

The Group's operations expose it to a variety of financial risks that include the effects of changes in debt market prices, credit risk and foreign exchange risk. The Group has a risk management programme that seeks to limit the adverse effects on the financial performance of the group by monitoring levels of finance costs and returns. The Group has implemented policies that require appropriate credit checks before a sale is made. The Group hedges its exposure to foreign currency fluctuations by using bank accounts denominated in dollars and euros

Page 4

 
PEKTRON GROUP LIMITED
 

 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Research and development activities

The Group continues to invest in product research and development activities.

Engagement with employees

The Group believes in mutual respect and open, constructive dialogue. The Group believes that upholding human rights and freedoms is essential to running a successful business. The Group balances its commercial activities and providing innovative products to our customers with compliance to applicable laws. The Group prides itself in providing its associates with the professional development, support and resources they need to ensure they are successful in whatever role they fulfil. 
The key to maintaining a sustainable business is to ensure the efficient and effective use of available resources is balanced with the economic requirements of the business and the expectations of interested parties. The Employee Handbook provides detailed approach to various issues affecting the Group, employees and the local and national environment.
All employees are empowered to communicate with Top Management and other managers when they feel the need to do so, without any fear of reprisal, intimidation or harassment. The Group are committed to diversity. All employees at Pektron enjoy equal opportunity , regardless of age, gender, race, religion, nationality or sexual orientation.

Engagement with suppliers, customers and others

The Group have included details of engagement with suppliers, customers and others have been included in the Strategic Report using the provisions of section 414(c) of the Companies Act 2006.

Disabled employees

Applications for employment by disabled persons are always fully considered, bearing in mind the respective aptitudes and abilities of the applicant concerned. In the event of members of staff becoming disabled every effort is made to ensure that their employment with the Group continues and the appropriate training is arranged. It is the policy of the Group that the training , career development and promotion of a disabled person should as far as possible, be identical to that of a person who does not suffer a disability.

Page 5

 
PEKTRON GROUP LIMITED
 

 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Greenhouse gas emissions, energy consumption and energy efficiency action

The Group's greenhouse gas emissions and energy consumption for the year are as follows:
[1 ]Electricity
Consumption (mains supply)   2 414 950 kWh (2022:2 441 394 kWh)
Greenhouse gas emissions  0.5 Tonnes CO2 (using supplier published CO2 emission figures) (2022: 2.6 Tonnes CO2) 
Methodology - using supplier published data for green tariff to calculate the CO2 emissions
Note
For comparison using conversion factors using UK 2023 average figure 186g/kWh would be 449 Tonnes CO2
Methodology - using national conversion factors to calculate CO2 emissions
Saving over national average by using green tariff from supplier calculated as 449-0.5=448.5 Tonnes CO2
[2] Solar Photo-Voltaic generation  69 397  kWh (2022: 106 633)
Greenhouse gas saving from Solar PV using conversion factor UK average figure = 13 Tonnes.
Methodology - using national conversion factors UK 2023 average 186g/kWh to calculate CO2 emissions.
[3] Gas 
Consumption (Natural Gas Supply)  517 937 kWh  (2022: 556 221 kWh)
Greenhouse gas emissions   94 Tonnes CO2 (2022: 101 Tonnes CO2)
Methodology - using national conversion factors to calculate CO2 emissions (natural gas) of 182.5g/kWh.
Total electricity consumption [1] + [2]     2 484 347 kWh
Total gas consumption [3]              517 937 kWh
Total energy consumption [1] + [2] + [3]   3 002 284kWh
Energy efficiency measures 
Energy efficiency measure - Ratio of electricity consumption [1] + [2]  (kWh) per unit sale
Ratio of electricity per unit sale in 2023  2.46 kWh per unit (equivalent to 458 g CO2 emissions per sale)
Ratio of purchased electricity consumption [1] + [3] Gas consumption in kWh per unit sale. 
Ratio of purchased energy (electricity + gas) per unit sale in 2023  2.39 + 0.51 = 2.90 kWh per unit. 
(Comprising 445 g CO2 emissions from purchased electricity + 94 g CO2 from gas = 539 g CO2 per sale)
The group remain committed to increasing energy efficiency and is reviewing measures to achieve this.





Matters covered in the Group Strategic Report

The Group has taken advantage of the provisions of section 414(c) of the Companies Act 2006 and have disclosed matters within the Strategic Report, where applicable.

Page 6

 
PEKTRON GROUP LIMITED
 

 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company and the Group's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company and the Group's auditors are aware of that information.

Post balance sheet events

Subsequent to the year end, the subsidiary investment in Bee Lighting Ltd  was disposed of. For further details see note 29 to the financial statements.

Auditors

Under section 487(2) of the Companies Act 2006PKF Smith Cooper Audit Limited will be deemed to have been reappointed as auditors 28 days after these financial statements were sent to members or 28 days after the latest date prescribed for filing the accounts with the registrar, whichever is earlier.

This report was approved by the board on 25 September 2024 and signed on its behalf.
 





G Ball
Director

Page 7

 
PEKTRON GROUP LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PEKTRON GROUP LIMITED
 

Opinion


We have audited the financial statements of Pektron Group Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 December 2023, which comprise the Consolidated Statement of Comprehensive Income, the Consolidated Balance Sheet, the Company Balance Sheet, the Consolidated Statement of Cash Flows, the Consolidated Statement of Changes in Equity, the Company Statement of Changes in Equity and the related notes, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In our opinion the financial statements:


give a true and fair view of the state of the Group's and of the parent Company's affairs as at 31 December 2023 and of the Group's profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


Basis for opinion


We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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 Group's or the parent Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.


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


Page 8

 
PEKTRON GROUP LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PEKTRON GROUP LIMITED (CONTINUED)


Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The directors are responsible for the other information contained within the Annual ReportOur 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.


Opinion on other matters prescribed by the Companies Act 2006
 

In our opinion, based on the work undertaken in the course of the audit:


the information given in the Group Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Group Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.


Matters on which we are required to report by exception
 

In the light of the knowledge and understanding of the Group and the parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Directors' Report.


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 by the parent Company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent Company financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


Responsibilities of directors
 

As explained more fully in the Directors' Responsibilities Statement set out on page 4, 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 Group's and the parent Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Group or the parent Company or to cease operations, or have no realistic alternative but to do so.


Page 9

 
PEKTRON GROUP LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PEKTRON GROUP LIMITED (CONTINUED)


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 an Auditors' 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 Group financial statements.


Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Based on our understanding of the Company and the Industry, we identify identify the key law and regulations affecting the Company. We identified  that the principal risk of fraud or non-compliance with laws and regulations related to:
• management bias in respect of accounting estimates and judgements made;
• management override of control;
• posting of unusual journals or transactions.
We focussed on those area that could give rise to a material misstatement in the Group and Company financial statements.
Our procedures included, but were not limited to:
• Enquiry of management and those charged with governance/review of correspondence around actual and   potential litigation and claims, including instances of non-compliance with laws and regulations and fraud;
• Reviewing minutes of meetings of those charged with governance where available;
• Reviewing legal expenditure in the year to identify instances of non-compliance with laws and regulations   and fraud;
• 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 and performing    analytical procedures to identify any unexpected or unusual relationships that might indicate material    misstatement due to fraud. In particular in relation to depreciation and revenue recognition on long term    contracts.
 
It is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the entity's operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud.


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 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 Auditors' Report.


Page 10

 
PEKTRON GROUP LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PEKTRON GROUP LIMITED (CONTINUED)


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 2006Our 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 Auditors' 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.





James Delve (Senior Statutory Auditor)
for and on behalf of
PKF Smith Cooper Audit Limited
Statutory Auditors
Prospect House
1 Prospect Place
Derby
DE24 8HG

26 September 2024
Page 11

 
PEKTRON GROUP LIMITED
 

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
Note
£
£

  

Turnover
 4 
59,713,997
71,348,403

Cost of sales
  
(42,022,240)
(50,711,629)

Gross profit
  
17,691,757
20,636,774

Administrative expenses
  
(14,706,541)
(13,744,336)

Other operating income
 5 
129,210
255,580

Operating profit
 6 
3,114,426
7,148,018

Interest receivable and similar income
 10 
2,733,206
675,568

Interest payable and similar expenses
 11 
(170,504)
(163,935)

Profit before taxation
  
5,677,128
7,659,651

Tax on profit
 12 
(1,367,022)
(1,374,392)

Profit for the financial year
  
4,310,106
6,285,259

Profit for the year attributable to:
  

Non-controlling interests
  
(240,645)
7,042

Owners of the parent Company
  
4,550,751
6,278,217

  
4,310,106
6,285,259

Total comprehensive income for the year attributable to:
  

Non-controlling interest
  
(240,645)
7,042

Owners of the parent Company
  
4,550,751
6,278,217

  
4,310,106
6,285,259

There was no other comprehensive income for 2023 (2022:£NIL).

The notes on pages 18 to 36 form part of these financial statements.

Page 12

 
PEKTRON GROUP LIMITED
REGISTERED NUMBER: 823259

CONSOLIDATED BALANCE SHEET
AS AT 31 DECEMBER 2023

2023
2023
2022
2022
Note
£
£
£
£

Fixed assets
  

Intangible fixed assets
 15 
227,038
285,281

Tangible fixed assets
 16 
5,472,489
6,597,491

  
5,699,527
6,882,772

Current assets
  

Stocks
 18 
18,100,890
20,477,493

Debtors: amounts falling due within one year
 19 
2,783,423
1,617,030

Cash at bank and in hand
 20 
70,193,999
61,100,668

  
91,078,312
83,195,191

Creditors: amounts falling due within one year
 21 
(26,107,643)
(22,226,193)

Net current assets
  
 
 
64,970,669
 
 
60,968,998

Provisions for liabilities
  

Deferred taxation
 22 
(303,258)
(294,938)

Net assets
  
70,366,938
67,556,832


Capital and reserves
  

Called up share capital 
 23 
9,500
9,500

Profit and loss account
 24 
70,002,970
66,952,219

Equity attributable to owners of the parent Company
  
70,012,470
66,961,719

Non-controlling interests
  
354,468
595,113

  
70,366,938
67,556,832


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 25 September 2024.




G Ball
Director

The notes on pages 18 to 36 form part of these financial statements.

Page 13

 
PEKTRON GROUP LIMITED
REGISTERED NUMBER: 823259

COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2023

2023
2023
2022
2022
Note
£
£
£
£

Fixed assets
  

Tangible assets
 16 
4,689,398
5,462,710

Investments
 17 
485,611
1,139,553

  
5,175,009
6,602,263

Current assets
  

Stocks
 18 
17,010,530
19,036,898

Debtors: amounts falling due within one year
 19 
997,979
666,224

Cash at bank and in hand
 20 
69,617,218
58,473,876

  
87,625,727
78,176,998

Creditors: amounts falling due within one year
 21 
(23,426,812)
(18,554,506)

Net current assets
  
 
 
64,198,915
 
 
59,622,492

  

Provisions for liabilities
  

Deferred taxation
 22 
(154,958)
(167,674)

Net assets
  
69,218,966
66,057,081


Capital and reserves
  

Called up share capital 
 23 
9,500
9,500

Profit and loss account
 24 
69,209,466
66,047,581

  
69,218,966
66,057,081


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 25 September 2024.


G Ball
Director

The notes on pages 18 to 36 form part of these financial statements.

Page 14

 
PEKTRON GROUP LIMITED
 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023


Called up share capital
Profit and loss account
Equity attributable to owners of parent Company
Non-controlling interests
Total equity

£
£
£
£
£


At 1 January 2022
9,500
63,674,002
63,683,502
788,071
64,471,573


Comprehensive income for the year

Profit for the year
-
6,278,217
6,278,217
7,042
6,285,259
Total comprehensive income for the year
-
6,278,217
6,278,217
7,042
6,285,259


Contributions by and distributions to owners

Dividends: Equity capital
-
(3,000,000)
(3,000,000)
-
(3,000,000)

Dividends of Minority Interest
-
-
-
(200,000)
(200,000)


Total transactions with owners
-
(3,000,000)
(3,000,000)
(200,000)
(3,200,000)



At 1 January 2023
9,500
66,952,219
66,961,719
595,113
67,556,832


Comprehensive income for the year

Profit for the year
-
4,550,751
4,550,751
(240,645)
4,310,106
Total comprehensive income for the year
-
4,550,751
4,550,751
(240,645)
4,310,106


Contributions by and distributions to owners

Dividends: Equity capital
-
(1,500,000)
(1,500,000)
-
(1,500,000)


Total transactions with owners
-
(1,500,000)
(1,500,000)
-
(1,500,000)


At 31 December 2023
9,500
70,002,970
70,012,470
354,468
70,366,938


The notes on pages 18 to 36 form part of these financial statements.

Page 15

 
PEKTRON GROUP LIMITED
 

COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023


Called up share capital
Profit and loss account
Total equity

£
£
£


At 1 January 2022
9,500
62,147,345
62,156,845


Comprehensive income for the year

Profit for the year
-
6,900,236
6,900,236
Total comprehensive income for the year
-
6,900,236
6,900,236


Contributions by and distributions to owners

Dividends: Equity capital
-
(3,000,000)
(3,000,000)


Total transactions with owners
-
(3,000,000)
(3,000,000)



At 1 January 2023
9,500
66,047,581
66,057,081


Comprehensive income for the year

Profit for the year
-
4,661,885
4,661,885
Total comprehensive income for the year
-
4,661,885
4,661,885


Contributions by and distributions to owners

Dividends: Equity capital
-
(1,500,000)
(1,500,000)


Total transactions with owners
-
(1,500,000)
(1,500,000)


At 31 December 2023
9,500
69,209,466
69,218,966


The notes on pages 18 to 36 form part of these financial statements.

Page 16

 
PEKTRON GROUP LIMITED
 

CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
£
£

Cash flows from operating activities

Profit for the financial year
4,310,106
6,285,259

Adjustments for:

Amortisation of intangible assets
58,243
58,243

Depreciation of tangible assets
2,838,776
2,510,292

Loss on disposal of tangible assets
(261,431)
(352,440)

Government grants
(129,210)
(255,580)

Interest paid
170,504
163,935

Interest received
(2,733,206)
(675,568)

Taxation charge
1,367,022
1,374,392

Decrease/(increase) in stocks
2,376,603
(5,054,760)

(Increase)/decrease in debtors
(1,271,693)
2,478,135

Increase in creditors
3,379,392
1,210,061

Corporation tax (paid)
(751,344)
(1,125,047)

Net cash generated from operating activities

9,353,762
6,616,922


Cash flows from investing activities

Purchase of tangible fixed assets
(1,819,128)
(3,207,494)

Sale of tangible fixed assets
366,785
378,720

Government grants received
129,210
255,580

Interest received
2,733,206
675,568

Net cash from investing activities

1,410,073
(1,897,626)

Cash flows from financing activities

Dividends paid
(1,500,000)
(3,000,000)

Interest paid
(170,504)
(163,935)

Dividends paid to non-controlling interests
-
(200,000)

Net cash used in financing activities
(1,670,504)
(3,363,935)

Net increase in cash and cash equivalents
9,093,331
1,355,361

Cash and cash equivalents at beginning of year
61,100,668
59,745,307

Cash and cash equivalents at the end of year
70,193,999
61,100,668


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
70,193,999
61,100,668


The notes on pages 18 to 36 form part of these financial statements.

Page 17

 
PEKTRON GROUP LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

1.


General information

Pektron Group Limited is a company limited by shares incorporated and domiciled in England and Wales. The address of the registered office is given on Company information page of the financial statements. The Group and company's activities are the design and manufacture of electronic components.
The financial statements are rounded to the nearest £.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgment in applying the Group's accounting policies (see note 3).

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements.

The following principal accounting policies have been applied:

  
2.2

Basis of consolidation

The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Balance Sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated Statement of Comprehensive Income from the date on which control is obtained. They are deconsolidated from the date control ceases.

 
2.3

Going concern

The Group has experienced positive levels of turnover and profitability and cashflows remain healthy. The directors have not considered it necessary to prepare formal forecasts for the Group given the overall strength of the cash position of the Group, which retains considerable levels of cash and no external debt.
The directors, therefore, consider that they have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future. The Group therefore continues to adopt the going concern basis in preparing its financial statements.

Page 18

 
PEKTRON GROUP LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.4

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Consolidated Statement of Comprehensive Income within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.

Page 19

 
PEKTRON GROUP LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.5

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
the Group has transferred the significant risks and rewards of ownership to the buyer;
the Group retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of revenue can be measured reliably;
it is probable that the Group will receive the consideration due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
the amount of revenue can be measured reliably;
it is probable that the Group will receive the consideration due under the contract;
the stage of completion of the contract at the end of the reporting period can be measured reliably; and
the costs incurred and the costs to complete the contract can be measured reliably.

Sales are recognised on the dispatch of goods. Aircraft rental is recognised at the point of hire.
Profit on long-term contracts is taken as the work is carried out if the final outcome can be measured reliably. Profits are recognised as stages of the overall contracts are completed. Where an element of the contract has not yet completed no profit is recognised until the outcome can be assessed with reasonable certainty. Turnover is calculated as the proportion of total contract value that covers costs incurred to date for completed contract stages and profit in relation to any completed stages of the contract based on the specific performance of the contract. Revenue derived from variations on contracts are recognised only when they have been accepted by the customer. Full provision is made for losses on all contracts in the year in which they are first foreseen. 
Monies received over the value of work done are classified as payments on accounts and included in creditors.

 
2.6

Operating leases: the Group as lessee

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

Page 20

 
PEKTRON GROUP LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.7

Research and development

In the research phase of an internal project it is not possible to demonstrate that the project will generate future economic benefits and hence all expenditure on research shall be recognised as an expense when it is incurred. Intangible assets are recognised from the development phase of a project if and only if certain specific criteria are met in order to demonstrate the asset will generate probable future economic benefits and that its cost can be reliably measured. The capitalised development costs are subsequently amortised on a straight-line basis over their useful economic lives, which range from 3 to 6 years.
If it is not possible to distinguish between the research phase and the development phase of an internal project, the expenditure is treated as if it were all incurred in the research phase only.

 
2.8

Government grants

Grants are accounted under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to profit or loss at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income.
Grants of a revenue nature are recognised in the Consolidated Statement of Comprehensive Income in the same period as the related expenditure.

 
2.9

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
2.10

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.11

Pensions

Defined contribution pension plan

The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Group in independently administered funds.

Page 21

 
PEKTRON GROUP LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.12

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company and the Group operate and generate income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits;
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met; and
Where they relate to timing differences in respect of interests in subsidiaries, associates, branches and joint ventures and the Group can control the reversal of the timing differences and such reversal is not considered probable in the foreseeable future.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

 
2.13

Intangible assets

Goodwill

Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of the Group's share of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight-line basis to the Consolidated Statement of Comprehensive Income over its useful economic life.

Other intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

 
2.14

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Page 22

 
PEKTRON GROUP LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)


2.14
Tangible fixed assets (continued)

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Short-term leasehold property
-
20%
Straight Line
Plant and machinery
-
20%
Straight Line
Motor vehicles
-
25%
Straight Line
Aircraft
-
15%
Straight Line
Office equipment, plant & machinery
-
20%
Straight Line

The 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.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.15

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

 
2.16

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

 
2.17

Debtors

Short term debtors are measured at transaction price, less any impairment.

 
2.18

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Consolidated Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Group's cash management.

  
2.19

Creditors

Short-term creditors are measured at the transaction price.

 
2.20

Financial instruments

The Group has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.
Page 23

 
PEKTRON GROUP LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)


2.20
Financial instruments (continued)


Basic financial assets

Basic financial assets, which include trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.

Discounting is omitted where the effect of discounting is immaterial. The Group's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.

Impairment of financial assets

Financial assets are assessed for indicators of impairment at each reporting date. 

Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.

If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.

Financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instruments any contract that evidences a residual interest in the assets of the Group after the deduction of all its liabilities.

Basic financial liabilities, which include trade and other payables, bank loans, other loans and loans due to fellow group companies are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial.

Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.

Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.

 
2.21

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

Page 24

 
PEKTRON GROUP LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

3.


Judgments in applying accounting policies and key sources of estimation uncertainty

Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances, The key areas of judgements are:
Profit on long-term contracts is recognised based upon the stages of completion on the contracts. These stages are separable and can be clearly distinguished. No profit is recognised on contract stages that are not yet complete on the basis that profit attributable to these specific stages cannot be assessed with reasonably certainty. 
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.


4.


Turnover

An analysis of turnover by class of business is as follows:


2023
2022
£
£

Design and Manufacturing of electronic components
59,332,468
70,640,180

Aircraft Rental
381,529
708,223

59,713,997
71,348,403


Analysis of turnover by country of destination:

2023
2022
£
£

United Kingdom
57,078,521
65,634,679

Rest of Europe
491,594
338,404

Rest of the world
2,143,882
5,375,320

59,713,997
71,348,403



5.


Other operating income

2023
2022
£
£

Government grants receivable - RDEC
129,210
255,580


Page 25

 
PEKTRON GROUP LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

6.


Operating profit

The operating profit is stated after charging:

2023
2022
£
£

Research & development charged as an expense
152,338
137,273

Exchange differences
(40,073)
(251,233)

Other operating lease rentals
219,844
181,176


7.


Auditors' remuneration

During the year, the Group obtained the following services from the Company's auditors and their associates:


2023
2022
£
£

Fees payable to the Company's auditors and their associates for the audit of the consolidated and parent Company's financial statements
17,200
17,200

Fees payable to the Company's auditors and their associates in respect of:

Taxation compliance services
2,890
2,890


8.


Employees

Staff costs, including directors' remuneration, were as follows:


Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£


Wages and salaries
14,047,382
14,234,515
11,817,165
11,768,572

Social security costs
1,286,859
1,433,705
1,056,420
1,146,861

Cost of defined contribution scheme
670,970
663,391
620,378
578,060

16,005,211
16,331,611
13,493,963
13,493,493


The average monthly number of employees, including the directors, during the year was as follows:



Group
Group
Company
Company
        2023
        2022
        2023
        2022
            No.
            No.
            No.
            No.









Management
46
47
39
37



Production
217
221
196
198



Research & Development
98
99
72
65



Sales & Distribution
20
25
18
24

381
392
325
324

Page 26

 
PEKTRON GROUP LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

9.


Directors' remuneration

2023
2022
£
£

Directors' emoluments
940,111
754,666

Group contributions to defined contribution pension schemes
14,635
13,905

954,746
768,571


During the year retirement benefits were accruing to 3 directors (2022 - 3) in respect of defined contribution pension schemes.

The highest paid director received remuneration of £346,134 (2022 - £248,891).

The value of the Group's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £NIL (2022 - £NIL).


10.


Interest receivable

2023
2022
£
£


Bank interest receivable
2,733,206
675,568


11.


Interest payable and similar expenses

2023
2022
£
£


Other loan interest payable
170,504
163,935

Page 27

 
PEKTRON GROUP LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

12.


Taxation


2023
2022
£
£

Corporation tax


Current tax on profits for the year
1,435,628
1,047,238

Adjustments in respect of previous periods
(76,926)
(18,055)


Total current tax
1,358,702
1,029,183

Deferred tax


Origination and reversal of timing differences
(84,221)
250,324

Adjustment in respect of prior year
97,846
15,835

Rate changes
(5,305)
79,050

Total deferred tax
8,320
345,209


Taxation on profit on ordinary activities
1,367,022
1,374,392

Factors affecting tax charge for the year

The tax assessed for the year is higher than (2022 - lower than) the standard rate of corporation tax in the UK of 23.52% (2022 - 19%). The differences are explained below:

2023
2022
£
£


Profit on ordinary activities before tax
5,677,128
7,659,651


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 23.52% (2022 - 19%)
1,335,261
1,455,334

Effects of:


Non-tax deductible amortisation of goodwill and impairment
10,147
8,197

Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
5,999
(165,969)

Change in rates
(5,305)
79,050

Adjustments to tax charge in respect of prior periods
(76,926)
(18,055)

Adjustments to deferred tax charge in respect to prior periods
97,846
15,835

Total tax charge for the year
1,367,022
1,374,392


Factors that may affect future tax charges

There were no factors that may affect future tax charges.

Page 28

 
PEKTRON GROUP LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

13.


Dividends

2023
2022
£
£


Dividends
1,500,000
3,000,000


14.


Parent company profit for the year

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements. The profit after tax of the parent Company for the year was £4,661,885 (2022 - £6,900,236).


15.


Intangible assets

Group and Company





Development expenditure
Goodwill
Total

£
£
£



Cost


At 1 January 2023
75,499
431,428
506,927



At 31 December 2023

75,499
431,428
506,927



Amortisation


At 1 January 2023
49,074
172,572
221,646


Charge for the year on owned assets
15,100
43,143
58,243



At 31 December 2023

64,174
215,715
279,889



Net book value



At 31 December 2023
11,325
215,713
227,038



At 31 December 2022
26,425
258,856
285,281



Page 29

 
PEKTRON GROUP LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

16.


Tangible fixed assets

Group






Short-term leasehold property
Plant and machinery
Motor vehicles
Aircraft
Office equipment, Plant & machinery
Total

£
£
£
£
£
£



Cost 


At 1 January 2023
83,797
1,623,204
1,482,619
6,386,760
15,994,076
25,570,456


Additions
-
50,356
220,495
-
1,548,277
1,819,128


Disposals
-
(18,173)
(264,252)
-
(1,674,399)
(1,956,824)



At 31 December 2023

83,797
1,655,387
1,438,862
6,386,760
15,867,954
25,432,760



Depreciation


At 1 January 2023
54,468
665,894
652,102
4,869,270
12,731,231
18,972,965


Charge for the year on owned assets
16,759
332,195
328,132
958,014
1,203,676
2,838,776


Disposals
-
(8,481)
(201,109)
-
(1,641,880)
(1,851,470)



At 31 December 2023

71,227
989,608
779,125
5,827,284
12,293,027
19,960,271



Net book value



At 31 December 2023
12,570
665,779
659,737
559,476
3,574,927
5,472,489



At 31 December 2022
29,329
957,310
830,517
1,517,490
3,262,845
6,597,491




The net book value of land and buildings may be further analysed as follows:


2023
2022
£
£

Short-term leasehold
12,570
29,330


Page 30

 
PEKTRON GROUP LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

           16.Tangible fixed assets (continued)


Company






Motor vehicles
Aircraft
Office equipment, Plant & machinery
Total

£
£
£
£

Cost 


At 1 January 2023
1,309,018
6,386,760
15,994,076
23,689,854


Additions
220,495
-
1,548,277
1,768,772


Disposals
(264,252)
-
(1,674,399)
(1,938,651)



At 31 December 2023

1,265,261
6,386,760
15,867,954
23,519,975



Depreciation


At 1 January 2023
626,643
4,869,270
12,731,231
18,227,144


Charge for the year on owned assets
284,732
958,014
1,203,676
2,446,422


Disposals
(201,109)
-
(1,641,880)
(1,842,989)



At 31 December 2023

710,266
5,827,284
12,293,027
18,830,577



Net book value



At 31 December 2023
554,995
559,476
3,574,927
4,689,398



At 31 December 2022
682,375
1,517,490
3,262,845
5,462,710






Page 31

 
PEKTRON GROUP LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

17.


Fixed asset investments

Company





Investments in subsidiary companies

£



Cost or valuation


At 1 January 2023
1,139,553


Amounts written off
(653,942)



At 31 December 2023
485,611





Subsidiary undertaking


The following was a subsidiary undertaking of the Company:

Name

Registered office

Class of shares

Holding

Bee Lighting Ltd
Merse Road, North Moons Moat, Redditch, Worcestershire, England, B98 9PL
Ordinary
75%

Subsequent to the year end, the Group sold its investment in Bee Lighting Ltd.


18.


Stocks

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Raw materials and consumables
16,874,891
19,236,881
15,808,264
17,833,111

Work in progress (goods to be sold)
267,137
286,126
267,137
286,126

Finished goods and goods for resale
958,862
954,486
935,129
917,661

18,100,890
20,477,493
17,010,530
19,036,898


The difference between purchase price or production cost of stocks and their replacement cost is not material.

Page 32

 
PEKTRON GROUP LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

19.


Debtors

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£


Trade debtors
1,533,244
724,817
64,468
173,114

Other debtors
443,555
642,005
224,942
278,865

Prepayments and accrued income
806,624
250,208
708,569
214,245

2,783,423
1,617,030
997,979
666,224



20.


Cash and cash equivalents

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Cash at bank and in hand
70,193,999
61,100,668
69,617,218
58,473,876



21.


Creditors: Amounts falling due within one year

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Trade creditors
1,378,731
2,391,323
1,158,240
1,525,768

Corporation tax
701,201
198,744
701,201
198,744

Other taxation and social security
1,669,330
2,125,837
1,559,284
2,028,850

Other creditors
18,883,675
13,663,946
18,883,675
13,663,946

Accruals and deferred income
3,474,706
3,846,343
1,124,412
1,137,198

26,107,643
22,226,193
23,426,812
18,554,506


Included in other creditors are amounts owed to related parties. For further details, see note 27 to the financial statements.

Page 33

 
PEKTRON GROUP LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

22.


Deferred taxation


Group



2023


£






At beginning of year
(294,938)


Charged to profit or loss
(8,320)



At end of year
(303,258)

Company


2023


£






At beginning of year
(167,674)


Charged to profit or loss
12,716



At end of year
(154,958)

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Accelerated capital allowances
(338,808)
(428,333)
(167,458)
(180,174)

Tax losses carried forward
23,050
96,195
-
-

RDEC carried forward
-
24,700
-
-

Provisions
12,500
12,500
12,500
12,500

(303,258)
(294,938)
(154,958)
(167,674)


The expected reversal of the deferred taxation assets and liabilities is not expected to be material.


23.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



9,500 (2022 - 9,500) Ordinary shares of £1.00 each
9,500
9,500


Page 34

 
PEKTRON GROUP LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

24.


Reserves

Profit and loss account

Includes all current and prior period distributable retained profits and losses.


25.


Pension commitments

The Group operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Group  in an independently administered fund. The pension cost charge represents contributions payable by the Group  to the fund and amounted to £670,970 (2022 - £663,391) . Contributions totalling £Nil (2022 - £Nil) were payable to the fund at the balance sheet date and are included in creditors.


26.


Commitments under operating leases

At 31 December 2023 the Group and the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:


Group
Group
2023
2022
£
£

Not later than 1 year
65,000
69,704

Later than 1 year and not later than 5 years
48,750
113,750

113,750
183,454
Page 35

 
PEKTRON GROUP LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

27.


Related party transactions

During the year the Group paid rent of £2,035,440 (2022: £1,696,200) to a company under common control. A management charge of £33,000 (2022: £33,000) was received from this company. At 31 December 2023 the Group was owed £9,806,667 (2022: £4,732,867) by this company.
The Group sold goods to a value of £46,253,086 (2022: £52,722,360), and charged management charges of £715,253 (2022: £815,294) to a company under common control. At 31 December 2023 the Group was owed £Nil (2022: £14,084) by this company and Group owed £450,440 (2022: £14,084) to this company.
The Group also sold goods to a value of £4,756,143 (2022: £4,092,035), and charged management charges of £73,549 (2022: £63,279) to a company under common control. At 31 December 2023 the  Group owed £2,434,401 (2022: £301,073) to this company.
At the year end, Pektron Group Limited was owed £7,291 (2022: £6,405) from a company under common control. During the year the Group purchased services of £133,799 (2022: £58,355) from the company, of which £Nil (2022: £Nil) was outstanding at the year end.
The Group also sold goods to a value of £624,692 (2022: £481,269), and charged management charges of £9,660 (2022: £7,442) to a company under common control. At 31 December 2023 the Group was owed £315,929 (2022: £259,130) by this company.
The Group also sold goods to a value of £814,447 (2022: £2,205,644), and charged management charges to £12,595 (2022: £34,108) to a company under common control. At 31 December 2023 the Group owed £2,234,695 (2022: £1,431,344) to this company.
At the year end, there was an amount owing to the shareholders by the Group of £4,087,928 (2022: £6,534,241). These amounts are unsecured, have no fixed repayment date and accrue interest at a rate of 3% per annum.
During the year key management received remuneration of £739,675 (2022: £689,015). Key management received dividends of £1,500,000 (2022: £3,000,000).


28.


Post balance sheet events

Subsequent to the year end, the Group sold its investment in Bee Lighting Ltd. 


29.


Controlling party

The Company is controlled by N,P and R Morgan


Page 36