Registration number:
Pen Cutting Tools Limited
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:
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
......................................... |
Pen Cutting Tools Limited
(Registration number: 00941929)
Balance Sheet as at 31 December 2023
Note |
2023 |
2022 |
|
Fixed assets |
|||
Tangible assets |
£ |
£ |
|
Current assets |
|||
Stocks |
£ |
£ |
|
Debtors |
£ |
£ |
|
Cash at bank and in hand |
£ |
£ |
|
£ |
£ |
||
Creditors: Amounts falling due within one year |
£362,929 |
£333,168 |
|
Net current assets |
£ |
£ |
|
Total assets less current liabilities |
£ |
£ |
|
Creditors: Amounts falling due after more than one year |
£ |
£ |
|
Provisions for liabilities |
£ |
£ |
|
Net assets |
£ |
£ |
|
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 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
Pen Cutting Tools Limited
(Registration number: 00941929)
Balance Sheet as at 31 December 2023
......................................... |
Pen Cutting Tools Limited
Notes to the Unaudited Financial Statements for the Year Ended 31 December 2023
General information |
The company is a private company limited by share capital, incorporated in United Kingdom.
The address of its registered office is:
These financial statements were authorised for issue by the
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
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.
Staff numbers |
The average number of persons employed by the company (including directors) during the year, was
Pen Cutting Tools Limited
Notes to the Unaudited Financial Statements for the Year Ended 31 December 2023
Tangible assets |
Fixtures and fittings |
Plant and machinery |
Office equipment |
Total |
|
Cost or valuation |
||||
At 1 January 2023 |
£ |
£ |
£ |
£ |
Additions |
£ |
£ |
£ |
£ |
Disposals |
£Nil |
£Nil |
£ |
£ |
At 31 December 2023 |
£ |
£ |
£ |
£ |
Depreciation |
||||
At 1 January 2023 |
£ |
£ |
£ |
£ |
Charge for the year |
£ |
£ |
£ |
£ |
Eliminated on disposal |
£Nil |
£Nil |
£ |
£ |
At 31 December 2023 |
£ |
£ |
£ |
£ |
Carrying amount |
||||
At 31 December 2023 |
£ |
£ |
£ |
£ |
At 31 December 2022 |
£ |
£ |
£ |
£ |
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.
Stocks |
2023 |
2022 |
|
Other inventories |
£ |
£ |
Debtors |
Current |
Note |
2023 |
2022 |
Trade debtors |
£ |
£ |
|
Amounts owed by related parties |
£ |
£ |
|
Prepayments |
£ |
£ |
|
£ |
£ |
Pen Cutting Tools Limited
Notes to the Unaudited Financial Statements for the Year Ended 31 December 2023
Creditors |
Creditors: amounts falling due within one year
Note |
2023 |
2022 |
|
Due within one year |
|||
Loans and borrowings |
£ |
£ |
|
Trade creditors |
£ |
£ |
|
Taxation and social security |
£ |
£ |
|
Accruals and deferred income |
£ |
£ |
|
Other creditors |
£ |
£Nil |
|
£ |
£ |
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 |
£ |
£ |
Within 'loans and borrowings' is an amount of £229,000 (2022: £346,999) secured against the assets of the company.
Loans and borrowings |
Non-current loans and borrowings
2023 |
2022 |
|
Bank borrowings |
£ |
£ |
Current loans and borrowings
2023 |
2022 |
|
Bank borrowings |
£ |
£ |
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 |
£ |
£ |
Later than one year and not later than five years |
£ |
£Nil |
Later than five years |
£Nil |
£ |
£ |
£ |
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.