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Registered number: 00749966










PRINCE PETROLEUM LIMITED










ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2024

 
PRINCE PETROLEUM LIMITED
 
 
COMPANY INFORMATION


Directors
Mr D W Prince 
Mr M A Turner 
Mr J Prince 
Mr A Mitchell 




Company secretary
Mr D W Prince



Registered number
00749966



Registered office
The Broughton Lodge Oil Depot
Station Road

Upper Broughton

Melton Mowbray

Leicestershire

LE14 3BH




Independent auditor
MHA

11 Merus Court

Meridian Business Park

Leicester

LE19 1RJ





 
PRINCE PETROLEUM LIMITED
 

CONTENTS



Page
Strategic Report
 
1 - 2
Directors' Report
 
3 - 4
Directors' Responsibilities Statement
 
5
Independent Auditor's Report
 
6 - 9
Profit and Loss Account
 
10
Balance Sheet
 
11 - 12
Statement of Changes in Equity
 
13
Notes to the Financial Statements
 
14 - 28

 
PRINCE PETROLEUM LIMITED
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2024

Introduction
 
The directors present their Strategic Report for the year ended 30 June 2024.

Business review
 
The principal activity of the Company is that of supplying bulk liquid fuels to commercial and domestic customers.
During the year under review the marketplace in which the Company operates began a return to more normalised trading  conditions, following a long period of customer concern around security of supply during the effects of Covid and the war in the Ukraine, which had affected prior year’s performance, but has now lessened or ceased to be as significant a factor.
 
As a consequence of this prices likewise returned to more typical levels, albeit demand remained strong  and therefore  relationships with suppliers continued to be critical, meaning that  the board and senior management team continue to remain alert to changing market conditions and to maintain a clear focus on the close management of supply lines and supplier relationships, as well as maintaining high levels of customer service.
 
The business also experienced the impact of rising costs, particularly in wages and motor running costs and the control of these (along with all costs) remains a challenge going forward.
 
As a consequence of all these factors the reported results are more modest than previous years, notwithstanding the Company remains profitable. Accordingly, the board are pleased to report that the Company delivered a turnover in excess of £88m in the year (an increase of nearly £16m on the previous year) and generated an operating profit of £1m and a profit before tax of £747.7k during the year. As noted above, this result was impacted by both a fall in gross profit margin (of 1% versus the 2023)  and the impact of increased direct costs.
The board once again took the prudent decision to retain an element of this profit within the business, with the result that net assets increased to £2.8m, meaning the business continues to strengthen its underlying asset base and associated liquidity. 

Principal risks and uncertainties
 
As referred to above, the business has historically been affected by the impacts of the conflict in the Ukraine and generally volatile market and economic conditions. Whilst there is currently more stability in the  marketplace, global factors such as these still present a risk to the business. The board and senior management team remain acutely aware of the challenges and risks that face them and continue to manage the business in a prudent and hands on manner. As a consequence of this approach , they have  been able to successfully manage these impacts and to maintain a robust position financially, which reflects the  overall resilience of the business  and  the strength of its management. 
 
Because of these factors, the board will continue to be prudent in its management policies and strategies, particularly around key supply lines and cost control  as well as the evolution towards new products, which are more environmentally acceptable. Focus will also continue to be made on asset and working capital retention such that risk and uncertainty is mitigated as far as practically possible. 

Page 1

 
PRINCE PETROLEUM LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024

Development and performance
 
The Company is currently continuing to experience strong demand for its products, which the senior management team are working hard to ensure it can fulfil on a profitable and sustainable basis. The business is well placed to react to this ongoing strong level of demand and will continue to invest in its people, asset base, systems, and infrastructure to ensure that it remains focused on customer service and delivery. In this regard the board have plans to continue to expand and modernise  the vehicle delivery fleet as well as to extend the site from which the business operates, to provide improved facilities for its employee base and greater operational capacity.
 
The long history of the business, together with the wide experience of its senior management team, means that it is well placed to build on the longevity of its key customer, supplier and other stakeholder relationships, to further develop and strengthen the offering.
 
Accordingly, the board are cautiously optimistic about the future prospects of the Company and are committed to continuing to strategically invest and commit resource to generate sustainable and profitable growth in its core markets.

Financial key performance indicators
 
Management focus on several key performance indicators to assist them in assessing the performance of the business and its growth and development, against agreed strategic objectives and goals. From a trading perspective, the volume of product sold and product mix are regularly monitored and compared to previous periods data to assess underlying growth and market trends by sector and industry type. 
 
This allied with similarly regular reviews of gross profit margin, again by product, provide the information needed by management to enable it to make strategic decisions around capital expenditure, headcount and other investments in systems and technology, thus ensuring that profitable and sustainable growth is maintained and controlled. 
 
Working capital is also measured and monitored on a regular basis with debtor days being the principal controllable variable where focus is applied, along with the utilisation of the business' invoice finance facility, which consistently displays significant headroom.


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



................................................
Mr D W Prince
Director

Date: 29 October 2024
Page 2

 
PRINCE PETROLEUM LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 JUNE 2024

The directors present their report and the financial statements for the year ended 30 June 2024.

Principal activity

The principal activity of the Company continued to be that of supplying fuel and oil to commercial and domestic customers.

Results and dividends

The profit for the year, after taxation, amounted to £553,474 (2023 - £927,423).

The directors have paid a dividend of £500,000 (2023 - £510,000) during the year. No further dividends have been recommended. 

Directors

The directors who served during the year were:

Mr D W Prince 
Mr M A Turner 
Mr J Prince 
Mr A Mitchell 

Principal risks and uncertainties

Price risk
The Company sources its products from a number of suppliers and is exposed to changes in market prices. To mitigate increases in prices, the Company continues to source its products from a number of different suppliers.
Liquidity risk
The Company aims to mitigate liquidity risk by managing cash generation from operations and is financed by both long and short term finance to meet the needs of the business. 
Credit risk
The risk of financial loss due to customers failing to honour their obligations when supplied on credit terms presents the Company’s major source of credit risk. Company policies and procedures are aimed at minimising such potential losses and require that credit terms are granted only to customers who demonstrate an appropriate payment history and satisfy detailed creditworthiness procedures. The Company also makes use of trade credit insurance to minimise its risk of loss should such bad debts arise.

Future developments

An indication of likely future developments is included within the fair review of the business set out on page 1.

Disclosure of information to auditor

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

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

Page 3

 
PRINCE PETROLEUM LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024

Post balance sheet events

There have been no significant events affecting the Company since the year end.

Auditor

The auditor, MHAwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

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





................................................
Mr D W Prince
Director

Date: 29 October 2024
Page 4

 
PRINCE PETROLEUM LIMITED
 
 
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 JUNE 2024

The directors are responsible for preparing the Strategic Report, the Directors' 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period.

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

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

make judgments and accounting estimates that are reasonable and prudent; and

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

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.

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

Page 5

 
PRINCE PETROLEUM LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF PRINCE PETROLEUM LIMITED
 

Opinion


We have audited the financial statements of Prince Petroleum Limited (the 'Company') for the year ended 30 June 2024, which comprise the Profit and Loss Account, the Balance Sheet, the Statement of Changes in Equity and the related notes, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In our opinion the financial statements:


give a true and fair view of the state of the Company's affairs as at 30 June 2024 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


Basis for opinion


We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the 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 United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.


Conclusions relating to going concern


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


Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.


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


Page 6

 
PRINCE PETROLEUM LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF PRINCE PETROLEUM LIMITED (CONTINUED)


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


We have nothing to report in this regard.


Opinion on other matters prescribed by the Companies Act 2006
 

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


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


Matters on which we are required to report by exception
 

In the light of the knowledge and understanding of the 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:


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


Responsibilities of directors
 

As explained more fully in the Directors' Responsibilities Statement set out on page 5, 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.


Page 7

 
PRINCE PETROLEUM LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF PRINCE PETROLEUM LIMITED (CONTINUED)


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:
 
enquiry of management and those charged with governance around actual, potential or suspected litigation, claims, non-compliance with applicable laws and regulations and fraud;
enquiry of entity staff in tax and compliance functions and external advisors to identify any instances of non-compliance with laws and regulations;
performing audit work over the risk of management override, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias;
reviewing the financial statements disclosures and testing these to supporting documentation to assess compliance with applicable laws and regulations; and
discussions amongst the engagement team in relation to how and where fraud might occur in the financial statements and any potential indicators of fraud.



Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.


A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our 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 2006Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an 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.


Page 8

 
PRINCE PETROLEUM LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF PRINCE PETROLEUM LIMITED (CONTINUED)





Shelley Harvey FCCA (Senior Statutory Auditor)
  
for and on behalf of
MHA, Statutory Auditor
 
Leicester
United Kingdom

Date: 
 
MHA is the trading name of Macintyre Hudson LLP, a limited liability partnership in England and Wales (registered number OC312313).
29 October 2024
Page 9

 
PRINCE PETROLEUM LIMITED
 
 
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 30 JUNE 2024

2024
2023
Note
£
£

  

Turnover
 3 
88,756,278
73,235,505

Cost of sales
  
(84,848,520)
(69,269,680)

Gross profit
  
3,907,758
3,965,825

Distribution costs
  
(1,631,279)
(1,357,016)

Administrative expenses
  
(1,260,066)
(1,158,422)

Other operating income
 4 
-
3,115

Operating profit
 5 
1,016,413
1,453,502

Interest receivable and similar income
 9 
1,103
-

Interest payable and similar expenses
 10 
(269,806)
(169,396)

Profit before tax
  
747,710
1,284,106

Tax on profit
 11 
(194,236)
(356,683)

Profit for the financial year
  
553,474
927,423

There are no items of other comprehensive income for 2024 or 2023 other than the profit for the yearAs a result, no separate Statement of Comprehensive Income has been presented.

The notes on pages 14 to 28 form part of these financial statements.

Page 10

 
PRINCE PETROLEUM LIMITED
REGISTERED NUMBER: 00749966

BALANCE SHEET
AS AT 30 JUNE 2024

2024
2023
Note
£
£

Fixed assets
  

Tangible assets
 13 
2,473,043
2,035,021

  
2,473,043
2,035,021

Current assets
  

Stocks
 14 
61,577
144,519

Debtors: amounts falling due within one year
 15 
10,423,161
8,666,836

Cash at bank and in hand
  
628,580
285,953

  
11,113,318
9,097,308

Creditors: amounts falling due within one year
 16 
(9,597,179)
(7,192,231)

Net current assets
  
 
 
1,516,139
 
 
1,905,077

Total assets less current liabilities
  
3,989,182
3,940,098

Creditors: amounts falling due after more than one year
 17 
(727,992)
(756,627)

Provisions for liabilities
  

Deferred tax
 19 
(421,328)
(397,083)

  
 
 
(421,328)
 
 
(397,083)

Net assets
  
2,839,862
2,786,388


Capital and reserves
  

Called up share capital 
 20 
30,000
30,000

Profit and loss account
  
2,809,862
2,756,388

  
2,839,862
2,786,388

Page 11

 
PRINCE PETROLEUM LIMITED
REGISTERED NUMBER: 00749966
    
BALANCE SHEET (CONTINUED)
AS AT 30 JUNE 2024

The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




................................................
Mr D W Prince
Director

Date: 29 October 2024

The notes on pages 14 to 28 form part of these financial statements.
Page 12

 
PRINCE PETROLEUM LIMITED
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2024


Called up share capital
Profit and loss account
Total equity

£
£
£


At 1 July 2022
30,000
2,338,965
2,368,965


Comprehensive income for the year

Profit for the year
-
927,423
927,423
Total comprehensive income for the year
-
927,423
927,423

Dividends: Equity capital
-
(510,000)
(510,000)



At 1 July 2023
30,000
2,756,388
2,786,388


Comprehensive income for the year

Profit for the year
-
553,474
553,474
Total comprehensive income for the year
-
553,474
553,474

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


At 30 June 2024
30,000
2,809,862
2,839,862


The notes on pages 14 to 28 form part of these financial statements.

Profit and Loss Account
Includes all current and prior period retained profits and losses. All amounts are distributable.

Page 13

 
PRINCE PETROLEUM LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

1.Accounting policies

  
1.1

Company information

Prince Petroleum Limited is a private company limited by shares incorporated in England and Wales, registered number 00749966. The registered office is The Broughton Lodge Oil Depot, Station Road, Upper Broughton, Melton Mowbray, Leicestershire, LE14 3BH.

 
1.2

Basis of preparation of financial statements

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

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 2).

These financial statements cover that of the individual entity.
The functional and presentational currency of the entity is British Pound Sterling (£).

The following principal accounting policies have been applied:

 
1.3

Financial Reporting Standard 102 - reduced disclosure exemptions

The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
the requirements of Section 7 Statement of Cash Flows;
the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A;
the requirements of Section 33 Related Party Disclosures paragraph 33.7.

This information is included in the consolidated financial statements of XDR Regent Limited as at 30 June 2024 and these financial statements may be obtained from 11 Merus Court, Meridian Business Park, Leicester, LE19 1RJ.

 
1.4

Going concern

After reviewing the Company's forecasts, the directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. Based on the continued profitability, working capital and available finance, the directors consider the Company has the ability to continue as a going concern for the next 12 months and have not identified any material uncertainity in relation to going concern. The financial statements are therefore prepared on a going concern basis.

Page 14

 
PRINCE PETROLEUM LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

1.Accounting policies (continued)

 
1.5

Revenue

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

Sale of goods

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

 
1.6

Interest income

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

 
1.7

Finance costs

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

 
1.8

Borrowing costs

All borrowing costs are recognised in the Profit and Loss Account in the year in which they are incurred.

 
1.9

Pensions

Defined contribution pension plan

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

The contributions are recognised as an expense in the Profit and Loss Account when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds.

Page 15

 
PRINCE PETROLEUM LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

1.Accounting policies (continued)

 
1.10

Current and deferred taxation

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

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

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

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

 
1.11

Tangible fixed assets

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

At each reporting date the Company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives.

Depreciation is provided on the following basis:

Freehold property
-
2% straight line per annum
Plant and machinery
-
15% reducing balance and 25% straight line
Motor vehicles
-
15-25% reducing balance

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the Profit and Loss Account.

Page 16

 
PRINCE PETROLEUM LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

1.Accounting policies (continued)

 
1.12

Stocks

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

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

 
1.13

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at transaction price, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
1.14

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

 
1.15

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at transaction price, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
1.16

Financial instruments

The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.

Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at cost and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or in case of an out-right short-term loan that is not at market rate, the financial asset or liability is measured, initially at the present value of future cash flows discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost, unless it qualifies as a loan from a director in the case of a small company, or a public benefit entity concessionary loan.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Profit and Loss Account.


 
Page 17

 
PRINCE PETROLEUM LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

1.Accounting policies (continued)


1.16
Financial instruments (continued)

For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.

For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the Company would receive for the asset if it were to be sold at the balance sheet date.
Financial assets and liabilities are offset and the net amount reported in the Balance Sheet when there is an 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.

 
1.17

Dividends

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


2.


Judgments in applying accounting policies and key sources of estimation uncertainty

Estimate and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
The Company make estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below.
(i) Useful economic lives of tangible fixed assets
The annual depreciation charge for tangible fixed assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are reassessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. See note 13 for the carrying amount of the tangible fixed assets, and note 1.11 for the useful economic lives for each class of assets.

(ii) Impairment of debtors

Judgement is required when determining if there is any impairment to the trade and other debtor balances. Trade and other debtors are reviewed for impairment if they are past due and not repaid within the terms of the contract. A provision for impairment will be made if, following the review of the balances, the Company considers it unlikely that any balance will be recovered.

Page 18

 
PRINCE PETROLEUM LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

3.


Turnover

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


2024
2023
£
£

Fuel & Oil
88,691,900
73,156,648

Surcharges
64,378
78,857

88,756,278
73,235,505


Analysis of turnover by country of destination:

2024
2023
£
£

United Kingdom
88,756,278
73,235,505

88,756,278
73,235,505



4.


Other operating income

2024
2023
£
£

Rent receivable
-
3,115

-
3,115



5.


Operating profit

The operating profit is stated after charging:

2024
2023
£
£

Depreciation of tangible fixed assets
305,352
256,743

Loss on sale of tangible assets
2,367
4,068

Page 19

 
PRINCE PETROLEUM LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

6.

Auditor's remuneration

During the year, the Company obtained the following services from the Company's auditor:

2024
2023
        £
        £
Fees payable to the Company's auditor for the audit of the Company's financial statements

15,000

14,000
 

Fees paid to the Company's auditor and its associates for services other than the statutory audit of the Company are not disclosed in these financial statements as the consolidated financial statements of the parent, XDR Regent Limited, are required to disclose non-audit fees on a consolidated basis.


7.


Employees

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


2024
2023
£
£

Wages and salaries
1,185,520
954,034

Social security costs
134,054
107,802

Cost of defined contribution scheme
31,966
84,225

1,351,540
1,146,061


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


        2024
        2023
            No.
            No.







Transport
14
12



Sales
3
6



Administration
11
5

28
23

Page 20

 
PRINCE PETROLEUM LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

8.


Directors' remuneration

2024
2023
£
£

Directors' emoluments
256,452
236,039

Company contributions to defined contribution pension schemes
5,200
65,427

261,652
301,466


During the year retirement benefits were accruing to 4 directors (2023 - 4) in respect of defined contribution pension schemes.

The highest paid director received remuneration of £83,730 (2023 - £73,159).

The value of the Company's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £3,546 (2023 - £2,958).

The total accrued pension provision of the highest paid director at 30 June 2024 amounted to £NIL (2023 - £NIL).

The amount of the accrued lump sum in respect of the highest paid director at 30 June 2024 amounted to £NIL (2023 - £NIL).




9.


Interest receivable and similar income

2024
2023
£
£


Other interest receivable
1,103
-

1,103
-


10.


Interest payable and similar expenses

2024
2023
£
£


Bank interest payable
227,271
143,747

Finance leases and hire purchase contracts
42,334
25,649

Other interest payable
201
-

269,806
169,396

Page 21

 
PRINCE PETROLEUM LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

11.


Taxation


2024
2023
£
£

Corporation tax


Current tax on profits for the year
169,991
243,829


169,991
243,829


Total current tax
169,991
243,829

Deferred tax


Origination and reversal of timing differences
24,245
112,854

Total deferred tax
24,245
112,854


Tax on profit
194,236
356,683

Factors affecting tax charge for the year

The tax assessed for the year is the same as (2023 - higher than) the standard rate of corporation tax in the UK of 25% (2023 - 25%). The differences are explained below:

2024
2023
£
£


Profit on ordinary activities before tax
747,710
1,284,106


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 25%)
186,928
321,027

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
7,569
10,985

Enhanced capital allowances
(27,362)
(33,055)

Adjustment for change in UK tax rate leading to a decrease in the tax charge
-
(53,738)

Changes in provisions leading to an increase (decrease) in the tax charge
475
(414)

Other differences leading to an increase (decrease) in the tax charge
26,626
111,878

Total tax charge for the year
194,236
356,683

Page 22

 
PRINCE PETROLEUM LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
 
11.Taxation (continued)

From 1 April 2023, the Corporation Tax main rate was to increased to 25% for profits over £250,000. A small profits rate has also been introduced for profits of £50,000 or less, charging Corporation Tax at 19%. Profits between £50,000 and £250,000 will be taxed at the main rate reduced by a marginal relief providing a gradual increase in the effective Corporation Tax rate. Deferred tax has been calculated at 25%. 


12.


Dividends

2024
2023
£
£


Dividend paid
500,000
510,000

500,000
510,000


13.


Tangible fixed assets





Freehold property
Plant and machinery
Motor vehicles
Total

£
£
£
£



Cost or valuation


At 1 July 2023
476,709
462,182
2,295,610
3,234,501


Additions
121,229
14,932
611,580
747,741


Disposals
-
-
(10,499)
(10,499)



At 30 June 2024

597,938
477,114
2,896,691
3,971,743



Depreciation


At 1 July 2023
30,020
347,813
821,647
1,199,480


Charge for the year on owned assets
7,159
35,202
262,991
305,352


Disposals
-
-
(6,132)
(6,132)



At 30 June 2024

37,179
383,015
1,078,506
1,498,700



Net book value



At 30 June 2024
560,759
94,099
1,818,185
2,473,043



At 30 June 2023
446,689
114,369
1,473,963
2,035,021

Page 23

 
PRINCE PETROLEUM LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

           13.Tangible fixed assets (continued)

The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:


2024
2023
£
£



Motor vehicles
1,684,345
1,323,503

1,684,345
1,323,503


14.


Stocks

2024
2023
£
£

Raw materials and consumables
61,577
144,519

61,577
144,519



15.


Debtors

2024
2023
£
£


Trade debtors
7,613,299
5,982,541

Amounts owed by group undertakings
2,139,204
2,139,204

Other debtors
486,321
417,820

Prepayments and accrued income
184,337
127,271

10,423,161
8,666,836


Page 24

 
PRINCE PETROLEUM LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

16.


Creditors: Amounts falling due within one year

2024
2023
£
£

Bank loans
73,242
71,950

Other loans
2,763,278
1,203,930

Trade creditors
5,944,497
5,058,944

Corporation tax
169,404
244,324

Other taxation and social security
45,708
55,791

Obligations under finance lease and hire purchase contracts
402,477
292,741

Other creditors
3,951
20,787

Accruals and deferred income
194,622
243,764

9,597,179
7,192,231


The bank loans are secured on the freehold property of the Company and its associated assets by legal charge.
Obligations under hire purchase contracts are secured on the assets to which they relate.
Included in other loans is a liability of £2,763,278 (2023 - £1,203,930) regarding RBS Invoice Financing. This facility is secured by floating charge over the assets of the Company.


17.


Creditors: Amounts falling due after more than one year

2024
2023
£
£

Bank loans
198,055
258,753

Net obligations under finance leases and hire purchase contracts
529,937
497,874

727,992
756,627


The bank loans are secured on the freehold property of the Company and its associated assets by legal charge.
Obligations under hire purchase contracts are secured on the assets to which they relate

Page 25

 
PRINCE PETROLEUM LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

18.


Hire purchase and finance leases


Minimum lease payments under hire purchase fall due as follows:

2024
2023
£
£


Within one year
402,477
292,741

Between 2-5 years
529,937
497,874

932,414
790,615


19.


Deferred taxation




2024


£






At beginning of year
(397,083)


Charged to profit or loss
(24,245)



At end of year
(421,328)

The provision for deferred taxation is made up as follows:

2024
2023
£
£


Accelerated capital allowances
421,328
397,083

421,328
397,083

Page 26

 
PRINCE PETROLEUM LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

20.


Share capital

2024
2023
£
£
Allotted, called up and fully paid



13,500 (2023 - 13,500) Ordinary A shares of £1.00 each
13,500
13,500
13,500 (2023 - 13,500) Ordinary B shares of £1.00 each
13,500
13,500
1,500 (2023 - 1,500) Ordinary C shares of £1.00 each
1,500
1,500
1,500 (2023 - 1,500) Ordinary D shares of £1.00 each
1,500
1,500

30,000

30,000

Each class of Ordinary share has equal voting and distribution rights, including repayment of capital in the event of winding up. 



21.


Capital commitments


At 30 June 2024 the Company had capital commitments as follows:

2024
2023
£
£


Contracted for but not provided in these financial statements
912,800
453,200

912,800
453,200


22.


Pension commitments

The Company operates a defined contribution pension scheme.
The assets of the scheme are held separately from those of the Company in an independently administered fund. Contributions totalling £3,951 (2023 - £Nil) were payable to the fund at the reporting date.

Page 27

 
PRINCE PETROLEUM LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

23.


Transactions with directors

Advances or credits have been granted by the Company to its directors as follows:

Opening balance
Amounts advanced
Amounts repaid
Closing balance
        £
        £
        £
        £

Mr D W Prince - Directors loan account

359,353

588,070

(500,000)
 
447,423
 
Mr J Prince - Directors loan account

-

70,151

(70,151)
 
-
 

359,353

658,221

(570,151)
 
447,423
 

All amounts are interest free and repayable on demand.


24.


Related party transactions

The Company has taken advantage of the exemption set out in Financial Reporting Standard 102, section 33.1A not to disclose transactions entered into between two or more members of a group, provided that any subsidiary involved in those transactions is wholly owned.


25.


Controlling party

The Company is a wholly owned subsidiary of XDR Regent Limited, a company registered in England & Wales with registration number 12392237. The registered office of XDR Regent Limited is 11 Merus Court, Meridian Business Park, Leicester,  LE19 1RJ. 
The smallest and largest group in which the Company is consolidated is XDR Regent Limited. Group financial statements can be obtained from 11 Merus Court, Meridian Business Park, Leicester,  LE19 1RJ.
Mr D W Prince is the ultimate controlling party by virtue of his majority shareholding in XDR Regent Limited.
 
Page 28