Company registration number 01942203 (England and Wales)
PENNINE FLOORING SUPPLIES LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024
PENNINE FLOORING SUPPLIES LIMITED
COMPANY INFORMATION
Directors
Mr K M Ball
Mr S P Holmes
Mr M I O'Brien
Mr I M Fairclough
Secretary
Mr K M Ball
Company number
01942203
Registered office
Units B&C
Junction 19 Business Park
Green Lane
Heywood
OL10 1NB
Auditor
Ward Williams
Belgrave House
39-43 Monument Hill
Weybridge
Surrey
KT13 8RN
PENNINE FLOORING SUPPLIES LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2
Directors' responsibilities statement
3
Independent auditor's report
4 - 6
Income statement
7
Statement of financial position
8
Statement of changes in equity
9
Statement of cash flows
10
Notes to the financial statements
11 - 24
PENNINE FLOORING SUPPLIES LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 JANUARY 2024
- 1 -

The directors present the strategic report for the year ended 31 January 2024.

Fair review of the business

The principal activity of the company continued to be that of the wholesale supply of all forms of hard floor coverings.

 

The results of the company are set out on page 7. The company has performed in line with expectation and the directors are satisfied with the results for the year and the year end position, and the company's future prospects. The company is in a strong financial position to deal with the challenges and take advantage of the opportunities which are expected to arise in the following year.

Principal risks and uncertainties

The company's principal financial instruments comprise bank balances, trade creditors, trade debtors and loans to the company. The main purpose of these instruments is to raise funds for the company's operations and to finance the company's operations.

 

Due to the nature of the financial instruments used by the company there is no exposure to price risk. The company's approach to managing other risks applicable to the financial instruments concerned is shown below.

 

In respect of bank balances the liquidity risk is managed by maintaining a balance between the continuity of funding and flexibility through the use of loans.

 

In respect of loans these comprise loans from group companies. The company manages liquidity risk by ensuring there are sufficient funds to meet the repayments. The directors of group companies are aware of the company's required finance and have determined that these will only be repaid, when finance is available.

 

Trade debtors are managed in respect of credit and cash flow risk by policies concerning the credit offered to customers and the regular monitoring of amounts outstanding for both time and credit limits.

 

Trade creditors liquidity risk is managed by ensuring sufficient funds are available to meet amounts due.

 

Future development

The directors intend to continue to develop the business by continuing investment and providing outstanding customer service.

Key performance indicators

The directors consider the key performance indicators for the business are:

By order of the board
Mr K M Ball
Secretary
.....................
PENNINE FLOORING SUPPLIES LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 JANUARY 2024
- 2 -

The directors present their annual report and financial statements for the year ended 31 January 2024.

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

An ordinary dividend was paid amounting to £250,000 (2023: £150,000).

Directors

There are no directors' interests requiring disclosure under the Companies Act 2006.

 

Mr J M Pendleton
(Resigned 11 August 2023)
Mr K M Ball
Mr S P Holmes
Mr M I O'Brien
Mr I M Fairclough
Auditor

The auditor, Ward Williams Limited, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

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 company’s auditor 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 company’s auditor is aware of that information.

On behalf of the board
Mr K M Ball
Director
29 October 2024
PENNINE FLOORING SUPPLIES LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 JANUARY 2024
- 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 company and of the profit or loss of the company 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 company’s transactions and disclose with reasonable accuracy at any time the financial position of the 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 company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

PENNINE FLOORING SUPPLIES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF PENNINE FLOORING SUPPLIES LIMITED
- 4 -
Opinion

We have audited the financial statements of Pennine Flooring Supplies Limited (the 'company') for the year ended 31 January 2024 which comprise the income statement, the statement of financial position, the statement of changes in equity, the 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 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 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:

PENNINE FLOORING SUPPLIES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF PENNINE FLOORING SUPPLIES LIMITED
- 5 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its 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 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 company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an 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.

 

The objectives of our audit are to identify and assess the risks of material misstatement of the financial statements due to fraud or error; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud or error; and to respond appropriately to those risks. Owing to the inherent limitations of an audit, there is an unavoidable risk that material misstatements in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISAs (UK).

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:

 

PENNINE FLOORING SUPPLIES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF PENNINE FLOORING SUPPLIES 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 this 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.

Colin Hamilton (Senior Statutory Auditor)
for and on behalf of Ward Williams Limited
29 October 2024
Chartered Accountants
Statutory Auditor
Belgrave House
39-43 Monument Hill
Weybridge
Surrey
KT13 8RN
PENNINE FLOORING SUPPLIES LIMITED
INCOME STATEMENT
FOR THE YEAR ENDED 31 JANUARY 2024
- 7 -
2024
2023
Notes
£
£
Revenue
3
21,217,603
19,820,475
Cost of sales
(16,682,850)
(15,283,131)
Gross profit
4,534,753
4,537,344
Administrative expenses
(4,106,481)
(3,277,932)
Other operating income
-
0
26,906
Operating profit
4
428,272
1,286,318
Finance costs
7
(59,189)
(57,155)
Profit before taxation
369,083
1,229,163
Taxation
8
(53,603)
(212,019)
Profit for the financial year
19
315,480
1,017,144
Other comprehensive income
-
-
Total comprehensive income for the year
315,480
1,017,144

The income statement has been prepared on the basis that all operations are continuing operations.

PENNINE FLOORING SUPPLIES LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT
31 JANUARY 2024
31 January 2024
- 8 -
2024
2023
Notes
£
£
£
£
Fixed assets
Property, plant and equipment
10
3,087,259
3,219,385
Current assets
Inventories
12
2,709,688
2,926,941
Trade and other receivables
13
2,585,281
2,379,235
Cash at bank and in hand
379,305
407,100
5,674,274
5,713,276
Current liabilities
14
(2,767,259)
(3,003,867)
Net current assets
2,907,015
2,709,409
Total assets less current liabilities
5,994,274
5,928,794
Provisions for liabilities
(26,472)
(26,472)
Net assets
5,967,802
5,902,322
Equity
Called up share capital
18
68
68
Retained earnings
19
5,967,734
5,902,254
Total equity
5,967,802
5,902,322
The financial statements were approved by the board of directors and authorised for issue on 29 October 2024 and are signed on its behalf by:
Mr I M Fairclough
Director
Company Registration No. 01942203
PENNINE FLOORING SUPPLIES LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JANUARY 2024
- 9 -
Share capital
Retained earnings
Total
Notes
£
£
£
Balance at 1 February 2022
68
5,035,110
5,035,178
Year ended 31 January 2023:
Profit and total comprehensive income
-
1,017,144
1,017,144
Dividends
9
-
(150,000)
(150,000)
Balance at 31 January 2023
68
5,902,254
5,902,322
Year ended 31 January 2024:
Profit and total comprehensive income
-
315,480
315,480
Dividends
9
-
(250,000)
(250,000)
Balance at 31 January 2024
68
5,967,734
5,967,802
PENNINE FLOORING SUPPLIES LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 JANUARY 2024
- 10 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
23
809,089
(305,869)
Interest paid
(59,189)
(57,155)
Income taxes paid
(99,919)
(246,132)
Net cash inflow/(outflow) from operating activities
649,981
(609,156)
Investing activities
Purchase of property, plant and equipment
(56,142)
(119,199)
Proceeds on disposal of property, plant and equipment
-
0
988,134
Net cash (used in)/generated from investing activities
(56,142)
868,935
Financing activities
Dividends paid
(250,000)
(150,000)
Net cash used in financing activities
(250,000)
(150,000)
Net increase in cash and cash equivalents
343,839
109,779
Cash and cash equivalents at beginning of year
(255,606)
(365,385)
Cash and cash equivalents at end of year
88,233
(255,606)
Relating to:
Cash at bank and in hand
379,305
407,100
Bank overdrafts included in creditors payable within one year
(291,072)
(662,706)
PENNINE FLOORING SUPPLIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024
- 11 -
1
Accounting policies
Company information

Pennine Flooring Supplies Limited is a private company limited by shares incorporated in England and Wales. The registered office is Units B&C, Junction 19 Business Park, Green Lane, Heywood, OL10 1NB.

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 pound.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2
Going concern

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company 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.

1.3
Revenue

Revenue 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 (upon delivery to or collection date by customer), 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.

1.4
Property, plant and equipment

Property, plant and equipment 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
Long-term leasehold land and buildings
2% straight line
Plant and equipment
25% reducing balance
Fixtures and fittings
25% reducing balance
Motor vehicles
25% reducing balance

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.

1.5
Impairment of non-current assets

At each reporting period end date, the company reviews the carrying amounts of its tangible 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.

PENNINE FLOORING SUPPLIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
1
Accounting policies
(Continued)
- 12 -

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.

 

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where and 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 year. A reversal of an impairment loss is recognised immediately in profit or loss.

1.6
Inventories

Inventories are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials.

 

Inventories held for distribution at no or nominal consideration are measured at 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 inventories 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.

1.7
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.

1.8
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 statement of financial position 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 trade and other receivables 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.

PENNINE FLOORING SUPPLIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
1
Accounting policies
(Continued)
- 13 -
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 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 company 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 company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including trade and other payables, bank loans and loans from fellow group companies, 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 payables 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 payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

PENNINE FLOORING SUPPLIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
1
Accounting policies
(Continued)
- 14 -
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.

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.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.9
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.

1.10
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 income statement 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 at 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 income statement, 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.

PENNINE FLOORING SUPPLIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
1
Accounting policies
(Continued)
- 15 -
1.11
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.

1.12
Retirement benefits

The company make contributions into a defined contribution benefit scheme on behalf of its employees. Payments to defined contribution benefit schemes are charged as an expense as they fall due.

1.13
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 leases 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.

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.

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Useful lives of property, plant and equipment

In determining the depreciation rates to apply against property, plant and equipment, the directors have used their knowledge and experience of both the company and the industry to assess the useful lives of each individual asset.

Provision for the impairment of trade receivables

The company establishes a provision for the impairment of trade receivables in accordance with its policy in note 1. The recoverable amount of the receivables is compared to its carrying amount to determine the amount of impairment. These calculations require the use of estimates.

Provision for slow moving inventory

The company establishes a provision for slow moving inventory in accordance with the accounting policy stated in note 1. The net realisable value is compared to its book value in order to determine the amount of impairment. These calculations require the use of estimates.

PENNINE FLOORING SUPPLIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 16 -
3
Revenue

An analysis of the company's revenue is as follows:

2024
2023
£
£
Turnover
Sale of goods
21,217,603
19,820,475

The total turnover of the company for the year has been derived from its principal activity wholly undertaken in England and Wales.

4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
11,250
9,150
Depreciation of owned property, plant and equipment
188,269
208,704
Profit on disposal of property, plant and equipment
-
(476,775)
Operating lease charges
196,259
357,269
5
Employees

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

2024
2023
Number
Number
Admin
8
8
Warehouse
18
18
Sales & Finance
18
17
Distribution
16
16
Total
60
59

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
1,703,335
1,693,009
Social security costs
186,400
169,813
Pension costs
88,847
70,603
1,978,582
1,933,425
PENNINE FLOORING SUPPLIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 17 -
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
174,876
195,275

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to £nil (2023 - 1).

7
Finance costs
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
19,189
10,229
Interest payable to group undertakings
40,000
46,926
59,189
57,155
8
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
128,921
212,019
Adjustments in respect of prior periods
(75,318)
-
0
Total current tax
53,603
212,019

The corporation tax rate increase to 25% was substantively enacted with effect from 1 April 2023. The 24% rate used reflects 10 months of this new rate and 2 months of the previous rate of 19%. The 25% rate is used to measure UK deferred taxes in 2024 (and in 2023 to the extent the related timing differences were expected to reverse after 1 April 2023).

PENNINE FLOORING SUPPLIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
8
Taxation
(Continued)
- 18 -

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

2024
2023
£
£
Profit before taxation
369,083
1,229,163
Expected tax charge based on the standard rate of corporation tax in the UK of 24.00% (2023: 19.00%)
88,580
233,541
Tax effect of expenses that are not deductible in determining taxable profit
56,933
(61,543)
Adjustments in respect of prior years
(75,780)
-
0
Permanent capital allowances in excess of depreciation
(16,324)
(1,795)
Depreciation on assets not qualifying for tax allowances
-
0
39,654
Other permanent differences
194
-
0
Non trade loan relationship debits
-
0
2,162
Taxation charge for the year
53,603
212,019
9
Dividends
2024
2023
£
£
Final paid
250,000
150,000
PENNINE FLOORING SUPPLIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 19 -
10
Property, plant and equipment
Freehold land and buildings
Long-term leasehold land and buildings
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 February 2023 (Restated)
2,283,627
537,471
307,687
574,419
104,816
3,808,020
Additions
-
0
-
0
35,121
1,727
19,295
56,143
At 31 January 2024
2,283,627
537,471
342,808
576,146
124,111
3,864,163
Depreciation and impairment
At1 February 2023 (Restated)
74,146
40,925
218,793
207,666
47,105
588,635
Depreciation charged in the year
37,073
10,231
30,470
92,048
18,447
188,269
At 31 January 2024
111,219
51,156
249,263
299,714
65,552
776,904
Carrying amount
At 31 January 2024
2,172,408
486,315
93,545
276,432
58,559
3,087,259
At 31 January 2023 (Restated)
2,209,481
496,546
88,894
366,753
57,711
3,219,385
PENNINE FLOORING SUPPLIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
10
Property, plant and equipment
(Continued)
- 20 -

Reclassification of Freehold Property

 

Reclassification explained

 

During the current financial year, the company reclassified certain property from the Long-term leasehold land and buildings category to the Freehold land and buildings category. This reclassification was necessary to correctly reflect the nature of the properties in accordance with FRS 102.

 

Current Year Reclassification

 

Description: The reclassification involved properties previously categorised under Long-term leasehold land and buildings.

Reason for Reclassification: Upon review, it was determined that these properties are held on a freehold basis, and therefore, should be classified as Freehold land and buildings.

Impact on Financial Statements: The reclassification has no impact on the carrying amount of the properties. The properties continue to be measured at their carrying amount as previously reported. There is no change to accounting policy as a result of this.

 

Prior Year Restatement as a result of Reclassification

 

Description: Similar reclassification was performed in the prior financial year to ensure correctness of opening balances.

Reason for Reclassification: The properties were initially misclassified due to an administrative error.

Impact on Financial Statements: The reclassification in the prior year also had no impact on the carrying amount of the properties. The properties were reclassified to Freehold land and buildings to correct the classification error. There was no change to accounting policy as a result of this.

 

Summary of Reclassified Amounts

 

Current Year: £2,172,408 net book value of freehold property carried at cost was reclassified from Long-term leasehold land and buildings to Freehold land and buildings

 

Prior Year: £2,209,481 net book value of freehold property recognised and carried at cost was reclassified from Long-term leasehold land and buildings to Freehold land and buildings

 

The reclassification ensures compliance with FRS 102 and provides a more accurate representation of the company’s property holdings in line with their nature and recognition criteria.

11
Financial instruments
2024
2023
£
£
Carrying amount of financial assets
Debt instruments measured at amortised cost
2,539,712
2,337,754
Carrying amount of financial liabilities
Measured at amortised cost
2,529,099
2,747,136
12
Inventories
2024
2023
£
£
Finished goods and goods for resale
2,709,688
2,926,941
PENNINE FLOORING SUPPLIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
12
Inventories
(Continued)
- 21 -

An impairment loss of £12,751 (2023: £43,041) has been recognised against inventory.

13
Trade and other receivables
2024
2023
Amounts falling due within one year:
£
£
Trade receivables
1,913,644
1,894,386
Amounts owed by group undertakings
316,763
188,437
Other receivables
309,305
254,931
Prepayments and accrued income
45,569
41,481
2,585,281
2,379,235

Trade receivables disclosed above are measured at amortised cost.

An impairment loss of £28,143 (2023: £22,801) has been recognised against trade receivables.

14
Current liabilities
2024
2023
Notes
£
£
Bank loans and overdrafts
15
291,072
662,706
Trade payables
869,975
915,095
Amounts owed to group undertakings
1,201,979
1,042,749
Corporation tax
48,313
94,629
Other taxation and social security
189,847
162,102
Accruals and deferred income
166,073
126,586
2,767,259
3,003,867

Bank loans and overdrafts of £291,072 (2023: £662,706) are secured against trade receivables of the company. The invoice discounting facility is secured by a debenture dated 27 September 2016 which contains a fixed and floating charge over the assets of the company and contains a negative pledge.

15
Borrowings
2024
2023
£
£
Bank overdrafts
291,072
662,706
Payable within one year
291,072
662,706
PENNINE FLOORING SUPPLIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 22 -
16
Deferred taxation

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

Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
26,472
26,472
There were no deferred tax movements in the year.
17
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
88,847
70,603

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

18
Share capital
2024
2023
Ordinary share capital
£
£
Issued and fully paid
Ordinary Shares of £1 each
68
68

The company has only one class of ordinary shares which carry no fixed right to income.

19
Retained earnings

The retained earnings account represents cumulative profit and losses net of dividends and other adjustments.

PENNINE FLOORING SUPPLIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 23 -
20
Operating lease commitments
Lessee

Operating lease payments represents rentals payable by the company for property and motor vehicles. Leases for property are negotiated for a period of 5 years and motor vehicles for periods of 3 years.

 

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2024
2023
£
£
Within one year
8,596
33,914
Between two and five years
418
7,797
9,014
41,711
21
Related party transactions
Remuneration of key management personnel

The remuneration of key management personnel is as follows.

2024
2023
£
£
Aggregate compensation
174,876
195,275
Transactions with related parties

 

The company has taken advantage of the exemption in FRS102 section 33 from the requirements to disclose transactions with group companies on the grounds that consolidated financial statements of Brookvale Limited are available from the Lodge, Leek Road. Endon, Stoke on Trent, Staffordshire, ST9 9HQ.

22
Ultimate controlling party

The ultimate parent company is Brookvale Limited, a company registered in England and Wales.

The following are the parents of the largest and smallest groups in which this company's results are consolidated:

Largest group
Brookvale Limited
Smallest group
Brookvale Limited
PENNINE FLOORING SUPPLIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 24 -
23
Cash generated from/(absorbed by) operations
2024
2023
£
£
Profit for the year after tax
315,480
1,017,144
Adjustments for:
Taxation charged
53,603
212,019
Finance costs
59,189
57,155
Gain on disposal of property, plant and equipment
-
(476,775)
Depreciation and impairment of property, plant and equipment
188,269
208,704
Movements in working capital:
Decrease/(increase) in inventories
217,252
(560,529)
Increase in trade and other receivables
(206,046)
(59,140)
Increase/(decrease) in trade and other payables
181,342
(704,447)
Cash generated from/(absorbed by) operations
809,089
(305,869)
24
Analysis of changes in net funds/(debt)
1 February 2023
Cash flows
31 January 2024
£
£
£
Cash at bank and in hand
407,100
(27,795)
379,305
Bank overdrafts
(662,706)
371,634
(291,072)
(255,606)
343,839
88,233
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