PGR Timber Ltd |
Strategic Report |
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The directors present their Strategic Report for the fiscal year ended 31 March 2024. |
PGR Timber Limited is an independent regional builder's merchant that sells and distributes building materials across the Southeast of England. This report provides an overview of the company's performance, key performance indicators (KPIs), business environment, strategy, future developments, and principal risks and uncertainties. |
Fair review of the business |
The company considers turnover and gross profit margin as the primary KPIs for assessing its performance. In 2024, there was a significant increase in turnover, mainly attributed to the lifting of Covid restrictions that had impacted previous years. PGR Timber currently operates ten branches throughout the Southeast (nine in Essex and one in Surrey), PGR opened a new warehouse in the Essex region during the year. |
Aside from financial KPIs, the directors prioritize strong customer service and achieve it through various measures, including assigning designated points of contact for key customers, defining service level agreements (SLAs) with customers, and closely monitoring the metrics to gauge effectiveness. |
The headline key performance indicators (KPI’s) that the directors monitor with regard to financial performance are as follows: - |
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2024 |
2023 |
Movement % |
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£ |
£ |
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Turnover |
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58,098,319 |
61,925,898 |
-6.18% |
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Gross profit |
19,754,130 |
20,587,468 |
-4.05% |
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Gross profit margin |
34.00% |
33.25% |
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Profit before tax |
6,835,482 |
8,078,410 |
-15.39% |
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The directors aim to continue and improve this performance by utilizing these KPIs while also focusing on non-financial matters such as health and safety, employee retention, staff welfare, stock management, operational efficiency, and customer satisfaction. |
Business environment, strategy and future developments |
As a key supplier to the Southeast of England, PGR Timber continues to operate within the Repairs, Maintenance, Improvements, and New Build marketplace. The company intends to remain competitive in this market and seeks opportunities to acquire new sites for opening additional branches, enhancing its services to local communities. |
Moreover, the company is committed to reducing its carbon footprint as mentioned in the Energy and Carbon report and investing in various platforms to enhance the online customer experience. |
Principle Risks & Uncertainties |
The business's principal risks and uncertainties are primarily economic and financial in nature. |
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Economic Risk |
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Economic risks arise from potential downturns in the economy, which may lead to reduced demand in both the New Build and Improvements marketplace, impacting the company's operations. To mitigate these risks, regular reviews of the company's performance are undertaken against set targets, and appropriate actions are taken to align with the prevailing economic climate. |
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Financial Risk |
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Financial risk mainly centres on credit risk associated with trade debtors. The company takes measures to mitigate this risk by conducting credit checks, regularly reviewing credit limits, and engaging debt collection specialists when necessary. |
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PGR Timber Ltd |
Strategic Report |
(continued) |
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Employees, Customers and Suppliers |
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PGR Timber recognizes the importance of its employees, customers, and suppliers in the success of the business. The company actively engages with its employees through various channels, such as meetings, newsletters, direct contact, and open-door policies with line managers and senior staff. Key areas of focus include health and safety in the workplace, meeting customer and supplier needs to excellent standards, employee welfare, compliance, and addressing relevant issues as they arise. |
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Similarly, the company maintains close contact with its customers and suppliers through personal interactions, emails, telephone calls, and the company's website and portal. Service level agreements ensure timely and high-quality interactions with both customers and suppliers, emphasizing excellent service throughout their respective journeys |
SECTION 172(1) STATEMENT |
Directors' statement of compliance with duty to promote success of the Company |
The directors consider that they have acted in the way they consider, in good faith, would be most likely to promote the success of the Company for the benefit of its members as a whole (having regard to the stakeholders and matters set out in s172(1) Companies Act 2006) in the decisions taken during the year ended 31 March 2024. Further details are provided in the following paragraphs as to how these matters have been considered in the directors' decision-making, including with regard to the likely long-term consequences of decisions where applicable. |
Business relationships with customers, suppliers, and partners |
The directors recognize that PGR Timber Ltd.’s primary customers have traditionally been trade professionals in the construction industry. Our focus has been on providing high-quality building materials to meet the needs of these trade customers efficiently and effectively. |
During the year ended 31 March 2024, the directors made a significant decision to invest in a new marketing strategy, including the development of a new website. This strategic move was aimed at expanding our customer base to include retail customers while also enhancing self-service capabilities for our existing trade customers. The directors believe that this decision will promote the long-term success of the company by diversifying our customer base and improving customer service across all segments. |
The new website is designed to: |
1 |
Attract and serve retail customers, opening up a new market segment for the company. |
2 |
Provide self-service options for existing trade customers, improving their experience and potentially reducing operational costs. |
3 |
Showcase our full product range more effectively to all customer types. |
4 |
Enhance our digital presence in an increasingly online marketplace. |
This decision reflects the directors' consideration of evolving market trends and customer preferences, as well as the potential for long-term growth and improved operational efficiency. |
The directors continue to receive regular feedback from our trade customers through various channels, including direct interactions at our merchant locations, customer surveys, and engagement at industry events. We have also implemented mechanisms to gather feedback from our new retail customers through the website. Our customers across all segments value reliability, product quality, competitive pricing, and efficient service. |
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PGR Timber Ltd |
Strategic Report |
(continued) |
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In addition to the new marketing strategy, the directors made a significant decision to acquire a new warehouse during the year ended 31 March 2024. This warehouse will serve as a central distribution hub for the company. The strategic investment was made with several key objectives in mind: |
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To improve our ability to serve both trade and retail customers more efficiently by centralising our distribution operations. |
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To enhance our inventory management capabilities, ensuring better product availability and reducing lead times for our customers. |
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To support the company's growth and expansion plans, including our move into other markets. |
This decision reflects the directors' long-term view of the business, considering both the immediate benefits of bulk purchasing discounts and the long-term advantages of an optimized distribution network. It demonstrates the directors' commitment to improving our service to customers while also seeking to enhance the company's financial performance through more efficient purchasing and inventory management. |
The directors maintain a strong focus on our relationships with suppliers of building materials. The new central distribution hub and bulk purchasing strategy have allowed us to strengthen these relationships further. During this period, the directors recognized the importance of these relationships in ensuring a stable supply chain, negotiating better prices through bulk purchases, and gaining access to a wider range of building products that appeal to both trade and retail customers. We have worked closely with suppliers to improve lead times and product availability, which directly benefits all our customer segments. The directors maintain a strong focus on our relationships with suppliers of building materials. During this period, the directors recognized the importance of these relationships in ensuring a stable supply chain, competitive pricing, and access to innovative building products that appeal to both trade and retail customers. We have worked closely with suppliers to improve lead times and product availability, which directly benefits all our customer segments. |
Employees |
The directors are committed to ensuring PGR Timber Ltd is a responsible employer, with consultation processes in place to allow views of employees to be taken into account when decisions are made that are likely to affect their interests. During the year, the Company commissioned an employee engagement survey to provide the directors with greater insights into topics of importance to our workforce. |
The implementation of the new marketing strategy and website has necessitated additional training for our employees, particularly in areas of online customer service and digital sales. The Company has invested in these training programmes to ensure our workforce is well-equipped to manage the evolving nature of our business. |
The directors promote a high-performance culture which includes clear articulation of business objectives and alignment with personal goals and development. The Company continues to invest in employee training and development programmes, covering areas such as customer service, product knowledge, health and safety, and now digital skills. Annual performance reviews remain a key part of our employee development process. |
The Company is also committed to providing tools and resources to assist employees with the management of their health and well-being, including awareness programmes, policies and training courses relevant to the builders’ merchant industry and our expanding digital presence. |
Environment and the wider community |
In the year ended 31 March 2024, alongside the implementation of our new digital strategy, the directors initiated a review of our product range to identify and promote more environmentally friendly building materials to both our trade and retail customers. We also implemented measures to reduce waste and improve energy efficiency across our merchant locations and in our delivery processes. |
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PGR Timber Ltd |
Strategic Report |
(continued) |
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The new website includes features to highlight eco-friendly products and provide information on sustainable building practices, reflecting our commitment to environmental responsibility. The Company's environmental performance is reviewed at least annually, and the directors' report includes further details of the Company's environmental initiatives and performance in the period. |
Members |
PGR Timber Ltd is a wholly owned subsidiary of PGR Enterprises Ltd. The directors of PGR Timber Ltd govern the company and make strategic decisions through monthly board meetings. These regular meetings serve as the primary forum for discussing and deciding on: |
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· The overall strategy of the business |
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· Potential new business opportunities |
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· Expansion plans for our merchant network |
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· Progress on our digital transformation initiatives |
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· Financial performance and planning |
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· Operational efficiencies and improvements |
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· Alignment with the long-term objectives of our parent company, PGR Enterprises Ltd |
The board meetings ensure that decisions are made collectively, drawing on the diverse expertise of all directors. This governance structure allows for thorough consideration of all relevant factors, including the interests of our parent company, employees, customers, suppliers, and other stakeholders. |
The directors ensure that the interests of the parent company are aligned with the long-term sustainable growth of PGR Timber Ltd and our evolving position in the builders’ merchant industry, including our expansion into the retail market. While direct engagement with PGR Enterprises Ltd management is not part of the regular governance process, the directors remain cognizant of the parent company's strategic direction and ensure that PGR Timber Ltd.’s operations and growth plans support the overall group objectives. |
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PGR Timber Ltd |
Energy and Carbon Report |
for the year ended 31 March 2024 |
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The environment |
Scope of disclosures |
In accordance with the Companies Act 2006 (Strategic Report and Directors' Reports) Regulations 2013 and the Companies (Directors' Report) and Limited Liability Partnerships (Energy and Carbon Report) Regulations 2018 (SECR), we report on our greenhouse gas (GHG) emissions as part of the annual Strategic Report. Our GHG reporting period is the same as our financial period and the previous period's figures have been provided as comparators. |
Scope 1 covers emissions from the combustion of fuel and operation of facilities owned/operated by the Company (e.g. diesel and unleaded fuel usage), and scope 2 covers emissions from purchased electricity. |
UK energy use |
Consumption in metric tonnes CO2e |
Year ended |
Year ended |
Change |
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31 March |
31 March |
2024 |
2023 |
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Fuels (scope 1) |
1,028.10 |
1,048.55 |
-1.95% |
Electricity (scope 2) |
87.99 |
87.59 |
+0.46% |
Total consumption in metric tonnes CO2e |
1,116.09 |
1,136.14 |
-1.76% |
Total energy usage in kWh |
4,598,092 |
4,688,294 |
-1.92% |
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Efficiency ratio |
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Year ended |
Year ended |
Change |
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31 March |
31 March |
2024 |
2023 |
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Total emissions in tonnes CO2e |
1116.09 |
1136.14 |
-1.76% |
Number of employees |
153 |
147 |
+4.01% |
Efficiency ratio in tonnes CO2e per employee |
7.29 |
7.73 |
+5.69% |
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Methodology |
We have followed the guidance to the SECR in making these disclosures. The methodology used to calculate our emissions is based on the UK Government's Environmental Reporting Guidelines (2013) and emission factors from the UK Government GHG Conversion Factors for Company Reporting 2023. For scope 2 emissions we have reported using the location-based method of calculation. For fuel conversions, we have used the factors provided by the UK Government GHG Conversion Factors for Company Reporting 2023. |
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Our environmental commitment |
he Company has aligned its environment objectives with the wider SS&C group, and we will aspire to meet the following commitments: |
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Comply with local environmental compliance obligations as they relate to our operations. |
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Implement risk management systems that assess the environmental impact of our operations and seek to prevent pollution and ensure continual improvement. |
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Set targets to improve our performance and encourage the implementation of energy and water efficiency and waste measures into the premises and promote waste minimisation, re-use, recovery and recycling. |
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Seek to use renewable sources of energy where commercially feasible. |
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In conjunction with our IT and Procurement teams, seek to source IT and office equipment which minimises energy consumption. |
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Maximise the use of video conferencing applications to reduce the need to travel. |
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Encourage our suppliers and business partners, to adopt good environmental practices and where appropriate, collaborate with them on solutions to mitigate our own impacts. |
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Raise staff awareness of their role in adopting environmentally responsible behaviour. |
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Take into consideration environmental performance and energy efficiency during the operation of our facilities including renewal of equipment; and |
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Support initiatives in our local areas and collaborate with others to deliver a more sustainable future. |
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This report was approved by the board and signed on its behalf: |
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G J Toomey |
Director |
13/11/2024 |
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PGR Timber Ltd |
Independent auditor's report |
to the member of PGR Timber Ltd |
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Opinion |
We have audited the financial statements of PGR Timber Ltd for the year ended 31 March 2024 which comprise the Income Statement, the Statement of Comprehensive Income, the Statement of Financial Position, the Statement of Changes in Equity, the Statement of Cash Flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicbale law and United Kingdom Accounting Standards, including FRS 102 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland' (United Kingdon Generally Accepted Accounting Practice). |
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In our opinion the financial statements: |
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give a true and fair view of the state of the company's affairs as at 31 March 2024 and of its profit for the year then ended; |
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have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; |
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have been prepared in accordance with the requirements of the Companies Act 2006. |
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Basis of 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. |
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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. |
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Other information |
The other information comprises the information included in the report and financial statements, other than the financial statements and our auditor's report thereon. The directors are responsible for the other information. 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. In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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. |
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Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
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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 |
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the strategic report and the directors’ report have been prepared in accordance with applicable legal requirements. |
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PGR Timber Ltd |
Independent auditor's report (continued) |
to the member of PGR Timber Ltd |
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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: |
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adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or |
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the financial statements are not in agreement with the accounting records and returns; or |
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certain disclosures of directors’ remuneration specified by law are not made; or |
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we have not received all the information and explanations we require for our audit. |
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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. |
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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. |
We gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates, and considered the risk of acts by the company that were contrary to applicable laws and regulations, including fraud. We designed audit procedures to respond to the risk, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion. Our tests included agreeing the financial statement disclosures to underlying supporting documentation and enquiries with management. We did not identify any key audit matters relating to irregularities, including fraud. |
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We focussed on laws and regulations which could give rise to a material misstatement in the financial statements, including, but not limited to, the Companies Act 2006 and UK tax legislation. Our tests included agreeing the financial statement disclosures to underlying supporting documentation and enquiries with management. There are inherent limitations in the audit procedures described above and, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. We did not identify any key audit matters relating to irregularities, including fraud. As in all our audits, we also addressed the risk of management override of internal controls, including testing journals and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud. |
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PGR Timber Ltd |
Independent auditor's report (continued) |
to the member of PGR Timber Ltd |
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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. |
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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. |
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J S Vasir |
(Senior Statutory Auditor) |
5 Margaret Road |
for and on behalf of |
Romford |
Desaur LLP |
Essex |
Chartered Certified Accountants and Statutory Auditors |
RM2 5SH |
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13/11/2024 |
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Impairment of assets |
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At each reporting date fixed assets are reviewed to determine whether there is any indication that those assets have suffered an impariment loss. If there is an indication of possible impairment, the recoverable amount of any affected asset is estimated and compared with its carrying amount. If estimated recoverable amount is lower, the carrying amount is reduced to its estimated recoverable amount, and an impairment loss is recognised immediately in profit and loss. |
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If an impairment loss subsequently reverses, the carry amount of the asset is increased to the revised estimate of its recoverable amount, but not in excess of the amount that would have been determined had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised immediately in profit and loss |
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Investment property |
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Investment property is initially recognised at cost and then subsequently measured at fair value. Changes in value are recognised in profit or loss. |
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Investments |
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Investments in unquoted equity instruments are measured at fair value. Changes in fair value are recognised in profit or loss. Fair value is estimated by using a valuation technique. |
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Stocks |
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Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the latest cost. The carrying amount of stock sold is recognised as an expense in the period in which the related revenue is recognised. |
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Financial instruments |
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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 its financial instruments. |
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Financial instruments are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument. |
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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 laibility simultaneously. |
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Basic financial assets |
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Basic financial assets, which include debtors, loans to fellow group companies 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. |
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Classification of financial liabilities |
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Financial liabilities and equity instruments are clasiified 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. |
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Basic financial liabilities, including creditors, bank loans, and loans from fellow group companies that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts 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 |
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Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using effective interest method. |
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Debtors |
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Short term debtors are measured at transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts. Loans and other financial assets are initially recognised at transaction price including any transaction costs and subsequently measured at amortised cost determined using the effective interest method, less any impairment losses for bad and doubtful debts. |
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Creditors |
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Short term creditors are measured at transaction price (which is usually the invoice price). Loans and other financial liabilities are initially recognised at transaction price net of any transaction costs and subsequently measured at amortised cost determined using the effective interest method. |
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Taxation |
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A current tax liability is recognised for the tax payable on the taxable profit of the current and past periods. A current tax asset is recognised in respect of a tax loss that can be carried back to recover tax paid in a previous period. Deferred tax is recognised in respect of all timing differences between the recognition of income and expenses in the financial statements and their inclusion in tax assessments. Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used. Current and deferred tax assets and liabilities are not discounted. |
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Provisions |
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Provisions (ie liabilities of uncertain timing or amount) are recognised when there is an obligation at the reporting date as a result of a past event, it is probable that economic benefit will be transferred to settle the obligation and the amount of the obligation can be estimated reliably. |
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Leased assets |
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A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership. All other leases are classified as operating leases. The rights of use and obligations under finance leases are initially recognised as assets and liabilities at amounts equal to the fair value of the leased assets or, if lower, the present value of the minimum lease payments. Minimum lease payments are apportioned between the finance charge and the reduction in the outstanding liability using the effective interest rate method. The finance charge is allocated to each period during the lease so as to produce a constant periodic rate of interest on the remaining balance of the liability. Leased assets are depreciated in accordance with the company's policy for tangible fixed assets. If there is no reasonable certainty that ownership will be obtained at the end of the lease term, the asset is depreciated over the lower of the lease term and its useful life. Operating lease payments are recognised as an expense on a straight line basis over the lease term. |
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Pensions |
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Contributions to defined contribution plans are expensed in the period to which they relate. |
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2 |
Critical accounting estimates and judgements |
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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. |
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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. |
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The directors have made a 10% provision for stock obsolescence in the financial statements consistent with previous years. The directors review this regularly and believe it to be an accurate provision based on their knowledge of the business and industry in which it operates. |
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3 |
Analysis of turnover |
2024 |
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2023 |
£ |
£ |
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Builders merchant |
57,885,566 |
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61,761,798 |
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Services rendered |
212,753 |
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164,100 |
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58,098,319 |
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61,925,898 |
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By geographical market: |
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UK |
58,098,319 |
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61,925,898 |
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4 |
Operating profit |
2024 |
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2023 |
£ |
£ |
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This is stated after charging: |
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Depreciation of owned fixed assets |
323,120 |
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291,607 |
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Operating lease rentals - plant and machinery |
751,691 |
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673,583 |
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Operating lease rentals - land and buildings |
1,020,748 |
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1,800,814 |
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Auditors' remuneration for audit services |
7,750 |
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7,750 |
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Carrying amount of stock sold |
39,066,522 |
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42,178,047 |
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Auditor's remuneration |
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Fess payable to the company's auditors and associates |
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For audit services |
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Audit of the financial statements of the company |
7,750 |
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7,750 |
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5 |
Directors' emoluments |
2024 |
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2023 |
£ |
£ |
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Emoluments |
878,204 |
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866,471 |
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Highest paid director: |
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Emoluments |
344,769 |
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443,379 |
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6 |
Staff costs |
2024 |
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2023 |
£ |
£ |
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Wages and salaries |
6,585,499 |
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6,575,405 |
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Social security costs |
688,868 |
|
722,279 |
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Other pension costs |
141,921 |
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129,002 |
|
|
|
|
|
|
7,416,288 |
|
7,426,686 |
|
|
|
|
|
|
|
|
|
|
|
Average number of employees during the year |
Number |
Number |
|
|
Administration |
24 |
|
21 |
|
Distribution |
85 |
|
80 |
|
Sales |
37 |
|
46 |
|
|
|
|
|
|
146 |
|
147 |
|
|
|
|
|
|
|
|
|
|
7 |
Taxation |
2024 |
|
2023 |
£ |
£ |
|
Analysis of charge in period |
|
Current tax: |
|
UK corporation tax on profits of the period |
1,715,824 |
|
1,547,940 |
|
Adjustments in respect of previous periods |
26,028 |
|
- |
|
|
|
|
|
|
1,741,852 |
|
1,547,940 |
|
|
|
|
|
|
|
|
|
|
Deferred tax: |
|
Origination and reversal of timing differences |
(7,458) |
|
(15,259) |
|
|
|
|
|
|
|
|
|
|
|
Tax on profit on ordinary activities |
1,734,394 |
|
1,532,681 |
|
|
|
|
|
|
|
|
|
|
|
Factors affecting tax charge for period |
|
The differences between the tax assessed for the period and the standard rate of corporation tax are explained as follows: |
|
|
|
|
|
|
|
2024 |
|
2023 |
£ |
£ |
|
Profit on ordinary activities before tax |
6,835,482 |
|
8,078,410 |
|
|
|
|
|
|
|
|
|
|
Standard rate of corporation tax in the UK |
25% |
|
19% |
|
£ |
£ |
|
Profit on ordinary activities multiplied by the standard rate of corporation tax |
|
1,708,871 |
|
1,534,898 |
|
|
Effects of: |
|
Expenses not deductible for tax purposes |
10,953 |
|
7,976 |
|
Capital allowances for period in excess of depreciation |
(4,000) |
|
5,066 |
|
Adjustments to tax charge in respect of previous periods |
26,028 |
|
- |
|
|
Current tax charge for period |
1,741,852 |
|
1,547,940 |
|
|
|
|
|
|
|
|
|
|
|
8 |
Property plant and equipment |
|
|
|
|
Land and buildings |
|
Plant and machinery |
|
Total |
|
|
|
|
At cost |
|
At cost |
£ |
£ |
£ |
|
Cost or valuation |
|
At 1 April 2023 |
1,147,708 |
|
3,681,050 |
|
4,828,758 |
|
Additions |
59,454 |
|
263,917 |
|
323,371 |
|
At 31 March 2024 |
1,207,162 |
|
3,944,967 |
|
5,152,129 |
|
|
|
|
|
|
|
|
|
|
Depreciation |
|
At 1 April 2023 |
397,044 |
|
2,966,052 |
|
3,363,096 |
|
Charge for the year |
42,292 |
|
280,828 |
|
323,120 |
|
At 31 March 2024 |
439,336 |
|
3,246,880 |
|
3,686,216 |
|
|
|
|
|
|
|
|
|
|
Carrying amount |
|
At 31 March 2024 |
767,826 |
|
698,087 |
|
1,465,913 |
|
At 31 March 2023 |
750,664 |
|
714,998 |
|
1,465,662 |
|
|
|
|
|
|
|
|
|
|
|
9 |
Investment property |
2024 |
£ |
|
Valuation |
|
At 1 April 2023 |
538,958 |
|
At 31 March 2024 |
538,958 |
|
|
|
|
|
|
|
|
The historic cost of investment properties was £538,958 (2023- £538,958) |
|
The freehold investment properties values are considered by the director, Mr Toomey, annually. Based on his knowledge of similar local commercial properties, Mr Toomey do not consider it necessary to carry out a revaluation at the financial year end as the market value is not believed to be materially different to the carrying amount at the year end. |
|
10 |
Investments |
2024 |
|
2023 |
£ |
£ |
|
|
Unlisted investments |
1,528 |
|
1,528 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
11 |
Stocks |
2024 |
|
2023 |
£ |
£ |
|
|
Finished goods and goods for resale |
10,268,916 |
|
9,546,583 |
|
|
|
|
|
|
|
|
|
|
The difference between purchase price or production cost of stocks and their replacement cost is not material. |
|
12 |
Debtors |
2024 |
|
2023 |
£ |
£ |
|
|
Trade debtors |
4,700,468 |
|
4,730,677 |
|
Amounts owed by group undertakings and undertakings in which the company has a participating interest |
|
648,669 |
|
1,698,669 |
|
Other debtors |
1,168,449 |
|
1,035,413 |
|
Prepayments and accrued income |
1,006,239 |
|
392,175 |
|
|
|
|
|
|
7,523,825 |
|
7,856,934 |
|
|
|
|
|
|
|
|
|
|
13 |
Creditors: amounts falling due within one year |
2024 |
|
2023 |
£ |
£ |
|
|
Bank overdrafts |
- |
|
2,302 |
|
Obligations under finance lease and hire purchase contracts |
- |
|
2,611 |
|
Trade creditors |
5,886,758 |
|
6,361,780 |
|
Corporation tax |
1,015,397 |
|
1,584,573 |
|
Other taxes and social security costs |
36,804 |
|
314,083 |
|
Other creditors |
1,237,770 |
|
1,548,944 |
|
Accruals and deferred income |
100,602 |
|
154,511 |
|
|
|
|
|
|
8,277,331 |
|
9,968,804 |
|
|
|
|
|
|
|
|
|
|
There is a fixed and floating charge on the assets of the company to the benefit of National Westminster Bank for the company's banking facility. |
|
|
14 |
Obligations under finance leases and hire purchase |
2024 |
|
2023 |
|
contracts |
£ |
£ |
|
|
Amounts payable: |
|
Within one year |
- |
|
2,611 |
|
|
|
|
|
|
|
|
|
|
|
15 |
Deferred taxation |
2024 |
|
2023 |
£ |
£ |
|
|
Accelerated capital allowances |
139,347 |
|
146,805 |
|
|
|
|
|
|
|
|
|
|
At 1 April |
146,805 |
|
162,064 |
|
Credited to the profit and loss account |
(7,458) |
|
(15,259) |
|
|
At 31 March |
139,347 |
|
146,805 |
|
|
|
|
|
|
|
|
|
|
Tax rate at 25% (2023-25%) was applied to deferred tax calculation in line with corporation tax rate increase. |
|
16 |
Share capital |
Nominal |
|
2024 |
|
2024 |
|
2023 |
value |
Number |
£ |
£ |
|
Allotted, called up and fully paid: |
|
Ordinary shares |
£1 each |
|
800 |
|
800 |
|
800 |
|
|
|
|
|
|
|
|
|
|
17 |
Profit and loss account |
2024 |
|
2023 |
£ |
£ |
|
|
At 1 April |
17,848,093 |
|
15,302,364 |
|
Profit for the financial year |
5,101,088 |
|
6,545,729 |
|
Dividends |
(5,000,000) |
|
(4,000,000) |
|
|
At 31 March |
17,949,181 |
|
17,848,093 |
|
|
|
|
|
|
|
|
|
|
18 |
Dividends |
2024 |
|
2023 |
£ |
£ |
|
Equity-ordinary |
|
Final paid £6,250 (2023-£5,000) per ordinary share |
5,000,000 |
|
4,000,000 |
|
|
|
|
|
|
|
|
|
|
|
19 |
Other financial commitments |
|
|
Total future minimum lease payments under non-cancellable operating leases: |
|
|
|
|
|
|
|
|
2024 |
|
2023 |
£ |
£ |
|
Falling due: |
|
within one year |
1,561,504 |
|
2,002,049 |
|
within two to five years |
7,713,258 |
|
7,668,665 |
|
in over five years |
3,468,500 |
|
4,380,879 |
|
|
|
|
|
|
12,743,262 |
|
14,051,593 |
|
|
|
|
|
|
|
|
|
|
20 |
Related party transactions |
2024 |
|
2023 |
|
|
|
|
|
|
£ |
|
£ |
|
G J Toomey |
|
|
Amount due (to) from the director. |
NIL |
NIL |
|
|
|
|
|
|
|
|
|
|
Laindon Trading LLP |
|
|
During the period, Laindon Trading LLP, a connected company provided management services for serviced accommodation, staff, plant and vehicles hire to the company. The total value of such transactions amounted to £8,137,978 (2023-£8,002,690) |
|
Amount due (to) from the related party |
(168,398) |
|
121,462 |
|
|
|
|
|
|
|
|
|
|
|
PGR Enterprises Ltd |
|
|
During the period, the company paid dividends of £5,000,000 (2023- £4,000,000) to PGR Enterprises Ltd, the parent company. |
|
Amount due from (to) the related party |
648,669 |
|
1,698,669 |
|
|
|
|
|
|
|
|
|
|
Connect Plumbing & Heating Supplies Ltd |
|
|
During the year, the company charged management fees of £212,753 (2023-£164,100) to Connect Plumbing & Heating Supplies Ltd, a fellow subsidiary. |
|
During the year, sales and purchases were made between the two companies amounting to £359,558 and £46,643 (2023 - £316,335 and £1,203) respectively. |
|
Amount due from (to) the related party |
25,729 |
|
72,758 |
|
|
|
|
|
|
|
|
|
21 |
Controlling party |
|
|
The ultimate controlling party of the company is Mr G J Toomey by virtue of his 100% holding in PGR Enterprises Ltd. |
|
|
22 |
Presentation currency |
|
|
The financial statements are presented in Sterling which is the functional currency of the Company. Monetary amounts in these fiancial statements are rounded to the nearest £. |
|
23 |
Legal form of entity and country of incorporation |
|
|
PGR Timber Ltd is a limited company incorporated in England. |
|
Registration number 01832731 |
|
24 |
Principal place of business |
|
|
The address of the company's principal place of business and registered office is: |
|
|
Courtauld House |
|
Courtauld Road |
|
Basildon |
|
Essex |
|
SS13 1RZ |