Company registration number 01307130 (England and Wales)
ROBERT PARKES (HOLDINGS) LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
ROBERT PARKES (HOLDINGS) LIMITED
COMPANY INFORMATION
Directors
Mr C J Parkes
Mr R W Parkes
Mrs D L Parkes
Secretary
Mrs D L Parkes
Company number
01307130
Registered office
Presco House
Selborne Street
Walsall
West Midlands
WS1 2JN
Auditor
Edwards
34 High Street
Aldridge
Walsall
West Midlands
WS9 8LZ
ROBERT PARKES (HOLDINGS) LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2
Directors' responsibilities statement
3
Independent auditor's report
4 - 6
Group statement of comprehensive income
7
Group balance sheet
8
Company balance sheet
9 - 10
Group statement of changes in equity
11
Company statement of changes in equity
12
Group statement of cash flows
13
Notes to the financial statements
14 - 32
ROBERT PARKES (HOLDINGS) LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

The directors present the strategic report for the year ended 31 December 2023.

Principal activities

The principal activity of the company and group continued to be that of manufacturing and property investment.

Review of the business

The turnover of the group for 2023 increased from £11.7m in 2022 to £13.5M in 2023 with rental income decreasing to £288k (2022: £329k), although this will increase in 2024 due to re-letting of several properties.

 

During the year the manufacturing division, revenue stayed consistent with prior year. An increase in purchase prices in the year have also influenced the manufacturing division group profit.

 

However, despite this, we report a pre-tax group profit of £430k (2022: loss of £20k). The consolidated balance sheet at the year-end showed a net asset position of £17.1m (2022: £16.8m).

Principal risks and uncertainties

As for many businesses of our size and nature the business environment in which we operate is more challenging than ever, exacerbated by the ongoing market recoveries from the effects of the Covid-19 pandemic, and volatile energy prices.

 

Nevertheless, with our experienced personnel and the continuing development of production methods and expanded markets we consider that the company is in a strong position to maintaining its leading position in the market. Along with targeted acquisitions, we expect the group to enhance its prospects further.

 

However, we remain aware that all plans and projects are subject to unforeseen national and international events outside of our control but we are confident that we have the management team in place with the expertise to adapt to the prevailing conditions.

Key performance indicators

Due to the groups’ diverse base, the KPI’s focused on are total rental income for the investment property portfolio and turnover and gross margin for the manufacturing division. On this basis, rental income is down on the previous financial year, but with projected uplift in 2024, turnover has increased from £11.7m to £13.5M and gross margin on consolidated turnover is down from 17.4% to 16.9%.

On behalf of the board

Mr R W Parkes
Director
18 October 2024
ROBERT PARKES (HOLDINGS) LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -

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

Results and dividends

The results for the year are set out on page 7.

No ordinary dividends were paid. The directors do not recommend payment of a further dividend.

Preference dividends were paid amounting to £4,500. The directors do not recommend payment of a final dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Mr C J Parkes
Mr R W Parkes
Mrs D L Parkes
Auditor

Edwards were appointed as auditor to the group and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.

Energy and carbon report

As the group has not consumed more than 40,000 kWh of energy in this reporting period, it qualifies as a low energy user under these regulations and is not required to report on its emissions, energy consumption or energy efficiency activities.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

On behalf of the board
Mr R W Parkes
Director
18 October 2024
ROBERT PARKES (HOLDINGS) LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -

The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

ROBERT PARKES (HOLDINGS) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ROBERT PARKES (HOLDINGS) LIMITED
- 4 -
Opinion

We have audited the financial statements of Robert Parkes (Holdings) Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and 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.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

ROBERT PARKES (HOLDINGS) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ROBERT PARKES (HOLDINGS) LIMITED
- 5 -
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 their environment obtained in the course of the audit, we have not identified material misstatements in the 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:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the 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 parent company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Based on our understanding of the industry, we identified limited risk of non-compliance with industry specific laws and regulations. Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

 

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

We obtained an understanding of the legal and regulatory frameworks within which the Group operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the off-payroll working regulations (IR35), Companies Act 2006, ISO9001 and health & safety regulations compliance.

We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be in the following areas: the override of controls by management, revenue journals, inappropriate treatment of non-routine transactions and areas of estimation uncertainty specifically surrounding the valuation of investment property and valuation of work in progress. Our audit procedures to respond to these risks included enquiries of management about their own identification and assessment of the risks of irregularities, review and discussion of non-routine transactions, sample testing on the posting of journals and review of accounting estimates for biases.

 

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

 

These inherent limitations are particularly significant in the case of misstatement resulting from fraud as this may involve sophisticated schemes designed to avoid detection, including deliberate failure to record transactions, collusion or the provision of intentional misrepresentations.

ROBERT PARKES (HOLDINGS) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ROBERT PARKES (HOLDINGS) LIMITED
- 6 -

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Paul Tonks BSc (Econ) FCA
For and on behalf of
22 October 2024
Edwards
Chartered Accountants
Statutory Auditor
34 High Street
Aldridge
Walsall
West Midlands
WS9 8LZ
ROBERT PARKES (HOLDINGS) LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 7 -
2023
2022
Notes
£
£
Turnover
4
13,466,537
12,187,736
Cost of sales
(11,191,919)
(10,065,387)
Gross profit
2,274,618
2,122,349
Distribution costs
(5,973)
(5,805)
Administrative expenses
(2,133,474)
(2,696,144)
Other operating income
395,116
363,565
Operating profit/(loss)
5
530,287
(216,035)
Interest receivable and similar income
8
174
332
Interest payable and similar expenses
9
(188,197)
(134,471)
Amounts written back on investments
10
-
329,329
Profit/(loss) before taxation
342,264
(20,845)
Tax on profit/(loss)
11
(101,485)
(17,256)
Profit/(loss) for the financial year
240,779
(38,101)
Total comprehensive income for the year is all attributable to the owners of the parent company.
ROBERT PARKES (HOLDINGS) LIMITED
GROUP BALANCE SHEET
AS AT 31 DECEMBER 2023
31 December 2023
- 8 -
2023
2022
Notes
£
£
£
£
Fixed assets
Goodwill
13
642,911
733,366
Tangible assets
14
8,971,617
9,093,485
Investment property
15
6,147,363
6,147,363
15,761,891
15,974,214
Current assets
Stocks
18
1,511,705
1,497,865
Debtors
19
6,233,644
6,279,110
Cash at bank and in hand
576,674
235,828
8,322,023
8,012,803
Creditors: amounts falling due within one year
20
(3,450,279)
(4,122,810)
Net current assets
4,871,744
3,889,993
Total assets less current liabilities
20,633,635
19,864,207
Creditors: amounts falling due after more than one year
21
(2,348,597)
(1,785,924)
Provisions for liabilities
Deferred tax liability
23
1,239,808
1,269,332
(1,239,808)
(1,269,332)
Net assets
17,045,230
16,808,951
Capital and reserves
Called up share capital
25
4,959,443
4,959,443
Share premium account
738,854
738,854
Revaluation reserve
2,005,996
2,040,747
Other reserves
5,939,869
5,939,869
Profit and loss reserves
3,401,068
3,130,038
Total equity
17,045,230
16,808,951
The financial statements were approved by the board of directors and authorised for issue on 18 October 2024 and are signed on its behalf by:
18 October 2024
Mr R W Parkes
Director
Company registration number 01307130 (England and Wales)
ROBERT PARKES (HOLDINGS) LIMITED
COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2023
31 December 2023
- 9 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
14
720,975
692,894
Investment property
15
6,147,363
5,287,695
Investments
16
6,158,968
6,158,968
13,027,306
12,139,557
Current assets
Debtors
19
6,308,071
6,155,876
Cash at bank and in hand
11,982
4,733
6,320,053
6,160,609
Creditors: amounts falling due within one year
20
(3,617,842)
(3,410,198)
Net current assets
2,702,211
2,750,411
Total assets less current liabilities
15,729,517
14,889,968
Creditors: amounts falling due after more than one year
21
(1,178,844)
(410,765)
Provisions for liabilities
Deferred tax liability
23
375,400
375,400
(375,400)
(375,400)
Net assets
14,175,273
14,103,803
Capital and reserves
Called up share capital
25
4,959,443
4,959,443
Share premium account
738,854
738,854
Merger reserve
5,939,869
5,939,869
Profit and loss reserves
2,537,107
2,465,637
Total equity
14,175,273
14,103,803

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £75,970 (2022 - £339,522 loss).

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

ROBERT PARKES (HOLDINGS) LIMITED
COMPANY BALANCE SHEET (CONTINUED)
AS AT 31 DECEMBER 2023
31 December 2023
- 10 -
The financial statements were approved by the board of directors and authorised for issue on 18 October 2024 and are signed on its behalf by:
18 October 2024
Mr R W Parkes
Director
Company registration number 01307130 (England and Wales)
ROBERT PARKES (HOLDINGS) LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
Share capital
Share premium account
Revaluation reserve
Merger reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
£
Balance at 1 January 2022
4,959,443
738,854
2,075,498
5,939,869
3,137,888
16,851,552
Year ended 31 December 2022:
Loss and total comprehensive income
-
-
-
-
(38,101)
(38,101)
Dividends
12
-
-
-
-
(4,500)
(4,500)
Transfers
-
-
(34,751)
-
34,751
-
Balance at 31 December 2022
4,959,443
738,854
2,040,747
5,939,869
3,130,038
16,808,951
Year ended 31 December 2023:
Profit and total comprehensive income
-
-
-
-
240,779
240,779
Dividends
12
-
-
-
-
(4,500)
(4,500)
Transfers
-
-
(34,751)
-
34,751
-
Balance at 31 December 2023
4,959,443
738,854
2,005,996
5,939,869
3,401,068
17,045,230
ROBERT PARKES (HOLDINGS) LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 12 -
Share capital
Share premium account
Merger reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 January 2022
4,959,443
738,854
5,939,869
2,809,659
14,447,825
Year ended 31 December 2022:
Loss and total comprehensive income for the year
-
-
-
(339,522)
(339,522)
Dividends
12
-
-
-
(4,500)
(4,500)
Balance at 31 December 2022
4,959,443
738,854
5,939,869
2,465,637
14,103,803
Year ended 31 December 2023:
Profit and total comprehensive income
-
-
-
75,970
75,970
Dividends
12
-
-
-
(4,500)
(4,500)
Balance at 31 December 2023
4,959,443
738,854
5,939,869
2,537,107
14,175,273
ROBERT PARKES (HOLDINGS) LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 13 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
29
1,151,527
(686,706)
Interest paid
(188,197)
(134,471)
Income taxes paid
(18,473)
(55,309)
Net cash inflow/(outflow) from operating activities
944,857
(876,486)
Investing activities
Purchase of tangible fixed assets
(163,126)
(100,883)
Proceeds from disposal of tangible fixed assets
-
26,000
Proceeds from disposal of investment property
-
436,184
Interest received
174
332
Net cash (used in)/generated from investing activities
(162,952)
361,633
Financing activities
Proceeds from borrowings
-
34,680
Repayment of other loans
(32,124)
-
Proceeds from new bank loans
980,300
-
Repayment of bank loans
(1,384,735)
(650,415)
Dividends paid to equity shareholders
(4,500)
(4,500)
Net cash used in financing activities
(441,059)
(620,235)
Net increase/(decrease) in cash and cash equivalents
340,846
(1,135,088)
Cash and cash equivalents at beginning of year
235,828
1,370,916
Cash and cash equivalents at end of year
576,674
235,828
ROBERT PARKES (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 14 -
1
Accounting policies
Company information

Robert Parkes (Holdings) Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Presco House, Selborne Street, Walsall, West Midlands, WS1 2JN.

 

The group consists of Robert Parkes (Holdings) Limited and all of its subsidiaries.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

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

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of investment properties. The principal accounting policies adopted are set out below.

The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:

 

1.2
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

ROBERT PARKES (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 15 -
1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Robert Parkes (Holdings) Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 31 December 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

1.4
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.5
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

1.6
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.

 

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

ROBERT PARKES (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 16 -
1.7
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Freehold land and buildings
2% straight line
Plant and equipment
15%-25% on reducing balance and 10% on cost
Fixtures and fittings
15%-25% on reducing balance
Computers
33.33% on reducing balance and 25% on cost
Motor vehicles
25% reducing balance

Freehold land is not depreciated.

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.

1.8
Investment property

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.

1.9
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

1.10
Borrowing costs related to fixed assets

Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use or sale, are added to the cost of those assets, until such time as the assets are substantially ready for their intended use or sale.

Investment income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalisation.

All other borrowing costs are recognised in profit or loss in the period in which they are incurred.

ROBERT PARKES (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 17 -
1.11
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.12
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.13
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

ROBERT PARKES (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 18 -
1.14
Financial instruments

The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

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

ROBERT PARKES (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 19 -
Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

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

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.15
Equity instruments

Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.

1.16
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

ROBERT PARKES (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 20 -
Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.17
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.18
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.19
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

1.20
Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

 

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

ROBERT PARKES (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 21 -
2
Judgements and key sources of estimation uncertainty

In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Investment property valuation

Investment property is measured at the directors' estimate of fair value at each reporting date.

Valuation of work in progress

When calculating the value of work in progress, the company values items based on the materials used to date and absorbs labour and overheads based on an appropriate rate.

3
Audit exemption and result of the Company

The Company has taken advantage of section 479 of the Companies Act 2006 (the "Act) not to require its subsidiaries, with the exception of MF Manufacturing Limited (company number - 02784038), to conduct an audit on their accounts.

 

In the opinion of the directors, the subsidiaries qualify under section 479A of the Act with a guarantee to be given for the following:

 

4
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Sale of goods
13,179,566
11,695,993
Rent received
83,159
84,094
Utility recharges
203,812
407,649
13,466,537
12,187,736
ROBERT PARKES (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
4
Turnover and other revenue
(Continued)
- 22 -
2023
2022
£
£
Other revenue
Interest income
174
332
Grants received
11,046
9,936
5
Operating profit/(loss)
2023
2022
£
£
Operating profit/(loss) for the year is stated after charging/(crediting):
Government grants
(11,046)
(9,936)
Depreciation of tangible fixed assets
284,994
363,430
Profit on disposal of tangible fixed assets
-
(26,000)
Amortisation of intangible assets
90,455
97,752
Stock impairment losses recognised or reversed
-
11,844
6
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
11,875
2,200
Audit of the financial statements of the company's subsidiaries
13,125
8,000
25,000
10,200
7
Employees

The average monthly number of persons (including directors) employed by the group and company during the year was:

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
136
154
-
0
-
0
ROBERT PARKES (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
7
Employees
(Continued)
- 23 -

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
4,860,817
4,646,281
-
0
-
0
Social security costs
505,835
502,353
-
-
Pension costs
109,527
123,779
-
0
-
0
5,476,179
5,272,413
-
0
-
0
8
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
174
332
9
Interest payable and similar expenses
2023
2022
£
£
Interest on bank overdrafts and loans
187,842
118,393
Other interest
355
16,078
Total finance costs
188,197
134,471
10
Amounts written back on investments
2023
2022
£
£
Changes in the fair value of investment properties
-
329,329
ROBERT PARKES (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 24 -
11
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
131,080
46,141
Adjustments in respect of prior periods
-
0
(823)
Total current tax
131,080
45,318
Deferred tax
Origination and reversal of timing differences
(29,595)
(28,062)
Total tax charge
101,485
17,256

The actual charge for the year can be reconciled to the expected charge/(credit) for the year based on the profit or loss and the standard rate of tax as follows:

2023
2022
£
£
Profit/(loss) before taxation
342,264
(20,845)
Expected tax charge/(credit) based on the standard rate of corporation tax in the UK of 25.00% (2022: 19.00%)
85,566
(3,961)
Tax effect of expenses that are not deductible in determining taxable profit
26,027
13,501
Tax effect of income not taxable in determining taxable profit
-
0
(63)
Tax effect of utilisation of tax losses not previously recognised
12,466
-
0
Adjustments in respect of prior years
-
0
(823)
Effect of change in corporation tax rate
(8,245)
19,614
Amortisation on assets not qualifying for tax allowances
-
0
893
Deferred tax adjustments in respect of prior years
(14,187)
(12,086)
Enhanced capital allowances
(142)
(3,757)
Deferred tax not provided for current year
-
0
3,938
Taxation charge
101,485
17,256

Factors that may affect tax charges

The UK Government increased the UK Corporation Tax rate to 25% from 19% effective from 1 April 2023. As such, the current tax rate for the current accounting period has been calculated at an effective tax rate of 23.50%.

There were no other factors that may affect current or future tax charges.

ROBERT PARKES (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 25 -
12
Dividends
2023
2022
Recognised as distributions to equity holders:
£
£
Final paid
4,500
4,500
13
Intangible fixed assets
Group
Goodwill
£
Cost
At 1 January 2023 and 31 December 2023
904,546
Amortisation and impairment
At 1 January 2023
171,180
Amortisation charged for the year
90,455
At 31 December 2023
261,635
Carrying amount
At 31 December 2023
642,911
At 31 December 2022
733,366
The company had no intangible fixed assets at 31 December 2023 or 31 December 2022.
14
Tangible fixed assets
Group
Freehold land and buildings
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 January 2023
8,148,384
5,294,467
58,554
67,227
85,850
13,654,482
Additions
97,411
53,094
-
0
-
0
12,621
163,126
At 31 December 2023
8,245,795
5,347,561
58,554
67,227
98,471
13,817,608
Depreciation and impairment
At 1 January 2023
99,878
4,259,418
57,599
67,163
76,939
4,560,997
Depreciation charged in the year
80,832
201,248
239
64
2,611
284,994
At 31 December 2023
180,710
4,460,666
57,838
67,227
79,550
4,845,991
Carrying amount
At 31 December 2023
8,065,085
886,895
716
-
0
18,921
8,971,617
At 31 December 2022
8,048,506
1,035,049
955
64
8,911
9,093,485
ROBERT PARKES (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
14
Tangible fixed assets
(Continued)
- 26 -
Company
Freehold land and buildings
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 January 2023
487,757
346,850
1,900
54,761
891,268
Additions
97,411
-
0
-
0
1,258
98,669
At 31 December 2023
585,168
346,850
1,900
56,019
989,937
Depreciation and impairment
At 1 January 2023
50,978
93,096
1,900
52,400
198,374
Depreciation charged in the year
31,932
38,066
-
0
590
70,588
At 31 December 2023
82,910
131,162
1,900
52,990
268,962
Carrying amount
At 31 December 2023
502,258
215,688
-
0
3,029
720,975
At 31 December 2022
436,779
253,754
-
0
2,361
692,894
15
Investment property
Group
Company
2023
2023
£
£
Fair value
At 1 January 2023
6,147,363
5,287,695
Additions
-
859,668
At 31 December 2023
6,147,363
6,147,363

There has been no recent valuation undertaken by an independent professional and as a result, the investment property is carried at the director's assessment of fair value. This is carried out on an annual basis.

16
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
17
-
0
-
0
6,158,968
6,158,968
ROBERT PARKES (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
16
Fixed asset investments
(Continued)
- 27 -
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 January 2023 and 31 December 2023
6,158,968
Carrying amount
At 31 December 2023
6,158,968
At 31 December 2022
6,158,968
17
Subsidiaries

Details of the company's subsidiaries at 31 December 2023 are as follows:

Name of undertaking
Address
Class of
% Held
shares held
Direct
Indirect
H Goodwin (Castings) Limited
1
Ordinary
100.00
-
Eyland & Sons Limited
2
Ordinary
100.00
-
MF Manufacturing Limited
2
Ordinary
100.00
-
Adelaide Engineering Company Limited
2
Ordinary
100.00
-
Eldon Limited
2
Ordinary
100.00
-
Gabriel Power & Co Limited
2
Ordinary
100.00
-
Parkes Partnership Limited
2
Ordinary
100.00
-
Askey Limited
2
Ordinary
-
100.00
Askey Precision Engineering Limited
2
Ordinary
-
100.00
Ufone Precision Engineers Limited
2
Ordinary
-
100.00
Mutual Mills Limited
2
Ordinary
100.00
-

Registered office addresses (all UK unless otherwise indicated):

1
155 Stafford Street, Walsall, WS2 8EY
2
Presco House, Selbourne Street, Walsall, WS1 2JN
18
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Raw materials and consumables
153,845
253,379
-
-
Work in progress
1,357,860
1,244,486
-
-
1,511,705
1,497,865
-
-
ROBERT PARKES (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 28 -
19
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
2,078,547
2,521,964
148,532
137,524
Amounts owed by group undertakings
-
-
2,942,630
3,038,515
Other debtors
3,788,436
3,558,251
2,949,569
2,898,622
Prepayments and accrued income
366,661
198,895
267,340
81,215
6,233,644
6,279,110
6,308,071
6,155,876
20
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans
22
393,237
1,360,345
143,673
1,071,265
Other loans
22
2,556
34,680
-
0
-
0
Trade creditors
1,139,033
814,721
112,022
9,924
Amounts owed to group undertakings
-
0
-
0
3,201,650
1,941,818
Corporation tax payable
179,146
66,610
22,011
-
0
Other taxation and social security
493,865
519,407
-
-
Other creditors
634,143
812,690
31,196
265,602
Accruals and deferred income
608,299
514,357
107,290
121,589
3,450,279
4,122,810
3,617,842
3,410,198
21
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans
22
2,348,597
1,785,924
1,178,844
410,765
Amounts included above which fall due after five years are as follows:
Payable by instalments
1,261,338
92,359
630,669
-
ROBERT PARKES (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 29 -
22
Loans and overdrafts
Group
Company
2023
2022
2023
2022
£
£
£
£
Bank loans
2,741,834
3,146,269
1,322,517
1,482,030
Other loans
2,556
34,680
-
0
-
0
2,744,390
3,180,949
1,322,517
1,482,030
Payable within one year
395,793
1,395,025
143,673
1,071,265
Payable after one year
2,348,597
1,785,924
1,178,844
410,765

The bank loans are secured by fixed and floating charges over the group's assets.

23
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

Liabilities
Liabilities
2023
2022
Group
£
£
Accelerated capital allowances
864,408
893,932
Revaluations
375,400
375,400
1,239,808
1,269,332
Liabilities
Liabilities
2023
2022
Company
£
£
Revaluations
375,400
375,400
Group
Company
2023
2023
Movements in the year:
£
£
Liability at 1 January 2023
1,269,332
375,400
Credit to profit or loss
(29,595)
-
Other
71
-
Liability at 31 December 2023
1,239,808
375,400
ROBERT PARKES (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 30 -
24
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
109,527
123,779

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

25
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
459,443
459,443
459,443
459,443
2023
2022
2023
2022
Preference share capital
Number
Number
£
£
Issued and fully paid
Preference shares of £1 each
4,500,000
4,500,000
4,500,000
4,500,000
Preference shares classified as equity
4,500,000
4,500,000
Total equity share capital
4,959,443
4,959,443

The preference shares carry no voting rights and are redeemable at the company's discretion with dividends being paid at 0.1% per annum.

26
Financial commitments, guarantees and contingent liabilities

The following secured debts are included within creditors:

 

- Bank loans £2,741,834 (2022 - £3,152,711).

 

Bank loans are secured by way of fixed and floating charges over the assets of the group.

27
Related party transactions
Transactions with related parties

During the year the group entered into the following transactions with related parties:

Sales
Sales
Purchases
Purchases
2023
2022
2023
2022
£
£
£
£
Group
Management charge to related party
-
30,000
-
-
Other transactions with related parties
203,812
169,356
-
16,717
ROBERT PARKES (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
27
Related party transactions
(Continued)
- 31 -

The following amounts were outstanding at the reporting end date:

Amounts due to related parties
2023
2022
£
£
Group
Other related parties
30,411
1,078,144

The following amounts were outstanding at the reporting end date:

Amounts due from related parties
2023
2022
£
£
Group
Other related parties
3,501,739
3,885,321
28
Directors' transactions

Mr R W Parkes and Mrs D L Parkes have given personal guarantees to the company's bankers to secure any indebtedness.

29
Cash generated from/(absorbed by) group operations
2023
2022
£
£
Profit/(loss) for the year after tax
240,779
(38,101)
Adjustments for:
Taxation charged
101,485
17,256
Finance costs
188,197
134,471
Investment income
(174)
(332)
Gain on disposal of tangible fixed assets
-
(26,000)
Fair value gain on investment properties
-
0
(329,329)
Amortisation and impairment of intangible assets
90,455
97,752
Depreciation and impairment of tangible fixed assets
284,994
363,430
Movements in working capital:
Increase in stocks
(13,840)
(177,648)
Decrease in debtors
45,466
79,274
Increase/(decrease) in creditors
214,165
(807,548)
Increase in deferred income
-
69
Cash generated from/(absorbed by) operations
1,151,527
(686,706)
ROBERT PARKES (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 32 -
30
Analysis of changes in net debt - group
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
235,828
340,846
576,674
Borrowings excluding overdrafts
(3,180,949)
436,559
(2,744,390)
(2,945,121)
777,405
(2,167,716)
2023-12-312023-01-01falseCCH SoftwareCCH Accounts Production 2024.200Mr C J ParkesMr R W ParkesMrs D L ParkesMrs D L Parkesfalsefalse01307130bus:Consolidated2023-01-012023-12-31013071302023-01-012023-12-3101307130bus:Director12023-01-012023-12-3101307130bus:Director22023-01-012023-12-3101307130bus:CompanySecretaryDirector12023-01-012023-12-3101307130bus:CompanySecretary12023-01-012023-12-3101307130bus:Director32023-01-012023-12-3101307130bus:RegisteredOffice2023-01-012023-12-31013071302023-12-3101307130bus:Consolidated2023-12-3101307130bus:Consolidated2022-01-012022-12-31013071302022-01-012022-12-3101307130core:Goodwillbus:Consolidated2023-12-3101307130core:Goodwillbus:Consolidated2022-12-3101307130bus:Consolidated2022-12-31013071302022-12-3101307130core:LandBuildingscore:OwnedOrFreeholdAssetsbus:Consolidated2023-12-3101307130core:PlantMachinerybus:Consolidated2023-12-3101307130core:FurnitureFittingsbus:Consolidated2023-12-3101307130core:ComputerEquipmentbus:Consolidated2023-12-3101307130core:MotorVehiclesbus:Consolidated2023-12-3101307130core:LandBuildingscore:OwnedOrFreeholdAssetsbus:Consolidated2022-12-3101307130core:PlantMachinerybus:Consolidated2022-12-3101307130core:FurnitureFittingsbus:Consolidated2022-12-3101307130core:ComputerEquipmentbus:Consolidated2022-12-3101307130core:MotorVehiclesbus:Consolidated2022-12-3101307130core:LandBuildingscore:OwnedOrFreeholdAssets2023-12-3101307130core:PlantMachinery2023-12-3101307130core:FurnitureFittings2023-12-3101307130core:MotorVehicles2023-12-3101307130core:LandBuildingscore:OwnedOrFreeholdAssets2022-12-3101307130core:PlantMachinery2022-12-3101307130core:FurnitureFittings2022-12-3101307130core:MotorVehicles2022-12-3101307130core:ShareCapitalbus:Consolidated2023-12-3101307130core:ShareCapitalbus:Consolidated2022-12-3101307130core:SharePremiumbus:Consolidated2023-12-3101307130core:SharePremiumbus:Consolidated2022-12-3101307130core:RevaluationReservebus:Consolidated2023-12-3101307130core:RevaluationReservebus:Consolidated2022-12-3101307130core:OtherMiscellaneousReservebus:Consolidated2023-12-3101307130core:OtherMiscellaneousReservebus:Consolidated2022-12-3101307130core:ShareCapital2023-12-3101307130core:ShareCapital2022-12-3101307130core:SharePremium2023-12-3101307130core:SharePremium2022-12-3101307130core:OtherMiscellaneousReserve2023-12-3101307130core:OtherMiscellaneousReserve2022-12-3101307130core:RetainedEarningsAccumulatedLosses2023-12-3101307130core:ShareCapitalbus:Consolidated2021-12-3101307130core:SharePremiumbus:Consolidated2021-12-31013071302021-12-3101307130core:RetainedEarningsAccumulatedLossesbus:Consolidated2022-12-3101307130core:RetainedEarningsAccumulatedLossesbus:Consolidated2023-12-3101307130core:ShareCapital2021-12-3101307130core:SharePremium2021-12-3101307130core:RetainedEarningsAccumulatedLosses2021-12-3101307130core:RetainedEarningsAccumulatedLosses2022-12-3101307130bus:Consolidated2021-12-3101307130core:Goodwill2023-01-012023-12-3101307130core:LandBuildingscore:OwnedOrFreeholdAssets2023-01-012023-12-3101307130core:PlantMachinery2023-01-012023-12-3101307130core:FurnitureFittings2023-01-012023-12-3101307130core:ComputerEquipment2023-01-012023-12-3101307130core:MotorVehicles2023-01-012023-12-3101307130core:UKTaxbus:Consolidated2023-01-012023-12-3101307130core:UKTaxbus:Consolidated2022-01-012022-12-3101307130bus:Consolidated12023-01-012023-12-3101307130bus:Consolidated12022-01-012022-12-3101307130bus:Consolidated22023-01-012023-12-3101307130bus:Consolidated22022-01-012022-12-3101307130bus:Consolidated32023-01-012023-12-3101307130bus:Consolidated32022-01-012022-12-3101307130core:Goodwillbus:Consolidated2022-12-3101307130core:Goodwillbus:Consolidated2023-01-012023-12-3101307130core:LandBuildingscore:OwnedOrFreeholdAssetsbus:Consolidated2022-12-3101307130core:PlantMachinerybus:Consolidated2022-12-3101307130core:FurnitureFittingsbus:Consolidated2022-12-3101307130core:ComputerEquipmentbus:Consolidated2022-12-3101307130core:MotorVehiclesbus:Consolidated2022-12-3101307130bus:Consolidated2022-12-3101307130core:LandBuildingscore:OwnedOrFreeholdAssets2022-12-3101307130core:PlantMachinery2022-12-3101307130core:FurnitureFittings2022-12-3101307130core:MotorVehicles2022-12-31013071302022-12-3101307130core:LandBuildingscore:OwnedOrFreeholdAssetsbus:Consolidated2023-01-012023-12-3101307130core:PlantMachinerybus:Consolidated2023-01-012023-12-3101307130core:FurnitureFittingsbus:Consolidated2023-01-012023-12-3101307130core:ComputerEquipmentbus:Consolidated2023-01-012023-12-3101307130core:MotorVehiclesbus:Consolidated2023-01-012023-12-3101307130core:CurrentFinancialInstruments2023-12-3101307130core:CurrentFinancialInstruments2022-12-3101307130core:CurrentFinancialInstrumentsbus:Consolidated2023-12-3101307130core:CurrentFinancialInstrumentsbus:Consolidated2022-12-3101307130core:WithinOneYearbus:Consolidated2023-12-3101307130core:WithinOneYearbus:Consolidated2022-12-3101307130core:CurrentFinancialInstrumentscore:WithinOneYear2023-12-3101307130core:CurrentFinancialInstrumentscore:WithinOneYear2022-12-3101307130core:Non-currentFinancialInstrumentscore:AfterOneYearbus:Consolidated2023-12-3101307130core:Non-currentFinancialInstrumentscore:AfterOneYearbus:Consolidated2022-12-3101307130core:Non-currentFinancialInstrumentscore:AfterOneYear2023-12-3101307130core:Non-currentFinancialInstrumentscore:AfterOneYear2022-12-3101307130core:CurrentFinancialInstrumentscore:WithinOneYearbus:Consolidated2023-12-3101307130core:CurrentFinancialInstrumentscore:WithinOneYearbus:Consolidated2022-12-3101307130bus:PrivateLimitedCompanyLtd2023-01-012023-12-3101307130bus:FRS1022023-01-012023-12-3101307130bus:Audited2023-01-012023-12-3101307130bus:ConsolidatedGroupCompanyAccounts2023-01-012023-12-3101307130bus:FullAccounts2023-01-012023-12-31xbrli:purexbrli:sharesiso4217:GBP