Company registration number 05674697 (England and Wales)
PAN ARTISAN LTD.
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 29 JULY 2023
PAGES FOR FILING WITH REGISTRAR
PAN ARTISAN LTD.
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 11
PAN ARTISAN LTD.
BALANCE SHEET
- 1 -
29 July 2023
31 July 2022
Notes
£
£
£
£
Fixed assets
Intangible assets
6
62,200
Tangible assets
7
1,311,466
1,339,329
1,373,666
1,339,329
Current assets
Stocks
8
379,343
356,742
Debtors
9
1,518,257
1,374,325
Cash at bank and in hand
138,109
43,670
2,035,709
1,774,737
Creditors: amounts falling due within one year
10
(2,491,988)
(2,354,797)
Net current liabilities
(456,279)
(580,060)
Total assets less current liabilities
917,387
759,269
Creditors: amounts falling due after more than one year
11
(819,153)
(1,111,441)
Provisions for liabilities
(53,492)
(48,500)
Net assets/(liabilities)
44,742
(400,672)
Capital and reserves
Called up share capital
14
286,000
246,000
Capital redemption reserve
4,000
4,000
Profit and loss reserves
(245,258)
(650,672)
Total equity
44,742
(400,672)
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 22 October 2024 and are signed on its behalf by:
Mrs D Dennison
Director
Company Registration No. 05674697
PAN ARTISAN LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 29 JULY 2023
- 2 -
1
Accounting policies
Company information
Pan Artisan Ltd. is a private company limited by shares incorporated in England and Wales. The registered office is Units 25/26 Holmbush Industrial Estate, Holmbush Way, Midhurst, West Sussex, United Kingdom, GU29 9HX.
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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Going concern
In assessing whether the financial statements should be prepared on a going concern basis, the Directors have considered the outlook of the Company and in so doing have given consideration to the operating results, cashflows and facilities available.true
In 2022/23 the Directors secured additional headroom and an improved prepayment percentage for our invoice finance facility. In addition we continued to pay down borrowings which have reduced further since the year end with some early settlements made.
2023/24 trading has been hit by a short term supply issue that has now been resolved and trading has now returned to the levels seen in 2022/23 and a strong year is therefore expected to 2024/25.
We have also continued to invest in capital expenditure as part of a major capacity expansion and have obtained some additional asset finance to aid cashflow.
Additional equity was raised since the year end through both a rights issue and a new issue of shares. This has demonstrated the Directors commitment to the company and the ability to attract new investment.
The Directors have also taken steps to improve cashflow through improved agreements with material suppliers, landlords and energy suppliers which will all have a positive effect in 2024/25.
Therefore, the Directors believe the company has adequate resources to meet its liabilities as they fall due and the ability to operate as a going concern for a period of at least 12 months from the date of approval of these financial statements. The Directors therefore consider it appropriate to continue to adopt the going concern basis in the preparation of these financial statement.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods 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.
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.
PAN ARTISAN LTD.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 JULY 2023
1
Accounting policies
(Continued)
- 3 -
1.4
Research and development expenditure
Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.
1.5
Intangible fixed assets - goodwill
Goodwill represents the excess of the cost of acquisition of unincorporated businesses 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.
1.6
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Amortisation 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:
Software
3 years
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:
Leasehold land and buildings
Over the life of the lease
Plant and equipment
5-20 years
Fixtures and fittings
3-5 years
Motor vehicles
5 years
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.8
Impairment of fixed assets
At each reporting period end date, the company 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.
1.9
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.
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.
PAN ARTISAN LTD.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 JULY 2023
1
Accounting policies
(Continued)
- 4 -
1.10
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.11
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, and bank loans, 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.
1.12
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.13
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
PAN ARTISAN LTD.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 JULY 2023
1
Accounting policies
(Continued)
- 5 -
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.14
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.15
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.16
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
PAN ARTISAN LTD.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 JULY 2023
1
Accounting policies
(Continued)
- 6 -
1.17
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
Valuation of finished goods
Manufactured goods are valued using standard cost cards considering the quantity of ingredients used, the time of labour spent and an absorption of overheads of the production facility.
Dilapidation provision
Estimate in place within the financial statements for restoring the properties to their original state.
Recoverability of trade debtors
An estimation is in place for the amount of trade debtors no longer considered to be recoverable and have therefore been provided for within the profit and loss account.
3
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
14,600
12,350
4
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Total
53
61
PAN ARTISAN LTD.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 JULY 2023
- 7 -
5
Directors' remuneration
2023
2022
£
£
Remuneration paid to directors
403,971
371,288
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 3 (2022 - 3).
6
Intangible fixed assets
Goodwill
Other
Total
£
£
£
Cost
At 1 August 2022
1,166,780
1,166,780
Transfers
62,200
62,200
At 29 July 2023
1,166,780
62,200
1,228,980
Amortisation and impairment
At 1 August 2022 and 29 July 2023
1,166,780
1,166,780
Carrying amount
At 29 July 2023
62,200
62,200
At 31 July 2022
PAN ARTISAN LTD.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 JULY 2023
- 8 -
7
Tangible fixed assets
Land and buildings
Plant and machinery etc
Total
£
£
£
Cost
At 1 August 2022
631,631
2,477,893
3,109,524
Additions
75,234
199,415
274,649
Disposals
(21,465)
(21,465)
Transfers
(62,200)
(62,200)
At 29 July 2023
706,865
2,593,643
3,300,508
Depreciation and impairment
At 1 August 2022
362,188
1,408,007
1,770,195
Depreciation charged in the year
49,124
171,158
220,282
Impairment losses
10,085
145
10,230
Eliminated in respect of disposals
(11,665)
(11,665)
At 29 July 2023
421,397
1,567,645
1,989,042
Carrying amount
At 29 July 2023
285,468
1,025,998
1,311,466
At 31 July 2022
269,443
1,069,886
1,339,329
8
Stocks
2023
2022
£
£
Stocks
379,343
356,742
9
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
1,239,943
1,107,696
Corporation tax recoverable
22,781
Other debtors
133,274
139,976
Prepayments and accrued income
122,259
126,653
1,518,257
1,374,325
PAN ARTISAN LTD.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 JULY 2023
- 9 -
10
Creditors: amounts falling due within one year
2023
2022
£
£
Bank loans
12
219,984
230,714
Obligations under finance leases
13
58,000
90,022
Other borrowings
12
477,494
533,944
Trade creditors
1,143,104
983,371
Taxation and social security
104,775
141,924
Other creditors
45,847
78,232
Accruals and deferred income
442,784
296,590
2,491,988
2,354,797
Secured loans
The bank holds a fixed and floating charge over the assets of the company.
The net obligations under finance leases and hire purchase contracts are secured against the assets to which they relate.
11
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Bank loans and overdrafts
12
435,026
664,480
Obligations under finance leases
13
84,127
146,961
Other creditors
300,000
300,000
819,153
1,111,441
12
Loans and overdrafts
2023
2022
£
£
Bank loans
655,010
895,194
Invoice financing facility
477,494
533,944
1,132,504
1,429,138
Payable within one year
697,478
764,658
Payable after one year
435,026
664,480
PAN ARTISAN LTD.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 JULY 2023
12
Loans and overdrafts
(Continued)
- 10 -
Bank loans are secured by a fixed and floating charge over the leasehold property and other assets of the company.
Security is held by lenders in the form of an unlimited debenture dated 23 January 2013 and 26 June 2017.
Security is also held under a rent deposit deed dated 5 April 2012 to cover all monies due under the terms of the agreement.
Some of the directors have provided personal guarantees jointly and severally totalling £200,000 in relation to the RBS facility.
13
Finance lease obligations
2023
2022
Future minimum lease payments due under finance leases:
£
£
Within one year
58,000
90,022
In two to five years
84,127
146,961
142,127
236,983
Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
14
Called up share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of £1 each
286,000
246,000
286,000
246,000
During the year, the company issued 40,000 £1 ordinary shares at par.
15
Audit report information
As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:
The auditor's report was unqualified.
Senior Statutory Auditor:
Jon Noble
Statutory Auditor:
Azets Audit Services
PAN ARTISAN LTD.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 JULY 2023
- 11 -
16
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2023
2022
£
£
1,139,303
1,198,250
17
Capital commitments
Amounts contracted for but not provided in the financial statements:
2023
2022
£
£
Acquisition of tangible fixed assets
-
17,000
Completion of capital works
135,000
-
135,000
17,000
18
Ultimate controlling party
The company is under control of the directors.
2023-07-292022-08-01false23 October 2024CCH SoftwareCCH Accounts Production 2024.210No description of principal activityThis audit opinion is unqualifiedMr P G DonaldMrs D DennisonMr A P L BowersMr D M Bryant-JonesMr C J DickinsonMr Richard JansenMr Richard JansenMrs D Dennisonfalsefalse056746972022-08-012023-07-29056746972023-07-29056746972022-07-3105674697core:NetGoodwill2023-07-2905674697core:IntangibleAssetsOtherThanGoodwill2023-07-2905674697core:NetGoodwill2022-07-3105674697core:IntangibleAssetsOtherThanGoodwill2022-07-3105674697core:LandBuildings2023-07-2905674697core:OtherPropertyPlantEquipment2023-07-2905674697core:LandBuildings2022-07-3105674697core:OtherPropertyPlantEquipment2022-07-3105674697core:CurrentFinancialInstrumentscore:WithinOneYear2023-07-2905674697core:CurrentFinancialInstrumentscore:WithinOneYear2022-07-3105674697core:Non-currentFinancialInstrumentscore:AfterOneYear2023-07-2905674697core:Non-currentFinancialInstrumentscore:AfterOneYear2022-07-3105674697core:CurrentFinancialInstruments2023-07-2905674697core:CurrentFinancialInstruments2022-07-3105674697core:Non-currentFinancialInstruments2023-07-2905674697core:Non-currentFinancialInstruments2022-07-3105674697core:ShareCapital2023-07-2905674697core:ShareCapital2022-07-3105674697core:CapitalRedemptionReserve2023-07-2905674697core:CapitalRedemptionReserve2022-07-3105674697core:RetainedEarningsAccumulatedLosses2023-07-2905674697core:RetainedEarningsAccumulatedLosses2022-07-3105674697bus:CompanySecretaryDirector12022-08-012023-07-2905674697core:Goodwill2022-08-012023-07-2905674697core:IntangibleAssetsOtherThanGoodwill2022-08-012023-07-2905674697core:ComputerSoftware2022-08-012023-07-2905674697core:LandBuildingscore:LongLeaseholdAssets2022-08-012023-07-2905674697core:PlantMachinery2022-08-012023-07-2905674697core:FurnitureFittings2022-08-012023-07-2905674697core:MotorVehicles2022-08-012023-07-29056746972021-08-012022-07-3105674697core:NetGoodwill2022-07-3105674697core:IntangibleAssetsOtherThanGoodwill2022-07-31056746972022-07-3105674697core:NetGoodwill2022-08-012023-07-2905674697core:LandBuildings2022-07-3105674697core:OtherPropertyPlantEquipment2022-07-3105674697core:LandBuildings2022-08-012023-07-2905674697core:OtherPropertyPlantEquipment2022-08-012023-07-2905674697core:Non-currentFinancialInstruments12023-07-2905674697core:Non-currentFinancialInstruments12022-07-3105674697core:WithinOneYear2023-07-2905674697core:WithinOneYear2022-07-3105674697core:BetweenTwoFiveYears2023-07-2905674697core:BetweenTwoFiveYears2022-07-3105674697bus:PrivateLimitedCompanyLtd2022-08-012023-07-2905674697bus:SmallCompaniesRegimeForAccounts2022-08-012023-07-2905674697bus:FRS1022022-08-012023-07-2905674697bus:Audited2022-08-012023-07-2905674697bus:Director12022-08-012023-07-2905674697bus:Director22022-08-012023-07-2905674697bus:Director32022-08-012023-07-2905674697bus:Director42022-08-012023-07-2905674697bus:Director52022-08-012023-07-2905674697bus:Director62022-08-012023-07-2905674697bus:Director72022-08-012023-07-2905674697bus:CompanySecretary12022-08-012023-07-2905674697bus:FullAccounts2022-08-012023-07-29xbrli:purexbrli:sharesiso4217:GBP