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COMPANY REGISTRATION NUMBER: NI632846
Parr Group Limited
Financial Statements
31 December 2023
Parr Group Limited
Financial Statements
Year ended 31 December 2023
Contents
Page
Strategic report
1
Directors' report
5
Independent auditor's report to the members
7
Consolidated statement of comprehensive income
11
Consolidated statement of financial position
12
Company statement of financial position
13
Consolidated statement of changes in equity
14
Company statement of changes in equity
15
Consolidated statement of cash flows
16
Notes to the financial statements
17
Parr Group Limited
Strategic Report
Year ended 31 December 2023
Review of the Company's Business The principal activities of the Group are that of building, mechanical and civil engineering, electrical contracting and facilities management services across the UK and Ireland . It was anticipated that 2023 would be a period of significant transition throughout the Group, as management and directors of each company contemplated changes across client groupings, staff and overall organisational structure. It was envisaged that substantial leadership time and resource would be invested to design, plan and adopt what would be a long term, workable framework for the Group companies to work together effectively. Accordingly, the process crept into 2024, largely as a result of notable senior leadership changes approaching the year end. A notable delay was the senior leadership's intention to subsume the activities of Parr Projects into the main trading entity, Parr Facilities Management during 2023 - this is now planned to take place before the close of the 2024 financial year. Despite the fact that the process was still in its infancy by the 2023 year end, the changes implemented at that time saw revenues increase by approximately 6%, and a return to Group profitability. More importantly, however, it presented the Group with a platform for future growth and improved operational efficiency. In order to promote accountability, corporate governance and compliance; to ensure that all opportunities provided by the restructure are taken; and, to enhance strategic oversight, the Group has established an Executive Leadership Team ('ELT'), led by the Managing Director. Each member of the team is fully empowered to oversee and drive the business within their respective functions, ensuring that focus and resources are directed appropriately to support the Group's broader goals, resulting in higher standards of quality across its range of services. With continued investment in people, as above, and premises (for example, a new location opened in Glasgow to cover the Scotland region) the Group continue to focus on revenues and costs by way of carefully selecting engagements based on expected profitability, and by maintaining tighter controls on the resources required to deliver them. As above, the early outcomes are reflected in this year's Group results, along with what the Executive Leadership Team project are improved prospects for the future. Key Performance Indicators The directors use both financial and non-financial performance indicators to monitor the performance of the business, including the periodic review financial information, customer satisfaction and maintenance of supplier relationships amongst the measures employed. The financial results of the Group are set out on pages 13 through to 36 and show an operating profit after interest amounting to £128,826 (2022: operating loss £1,203,532). Shareholders' funds for the Group are £1,755,915 (2022: £1,640,766). The financial results are in line with expectations. Development, Performance and Position of the Group In terms of resourcing, the Group has reduced its employee numbers by over 45%, primarily as a result of the restructure. The ELT now wishes to stabilise the workforce at the year-end level (including several senior leadership appointments). In terms of the Group's client portfolio and associated revenue composition, in 2023, the main trading entity - Parr Facilities Management ('Parr FM') provided services to 126 entities. At the time of writing, this portfolio has since been reduced to 21 'blue-chip' clients, promoting increasingly useful and more profitable alliances with higher-value customers. A notable associated development in 2023 was the introduction of healthcare clients, contributing approximately 15% of total sales. At the time of writing, Parr FM has seen further growth in this sector, and such revenues are projected to constitute 43% of total sales by 2025. It is important to add that Parr FM have also benefitted from engagement with clients outside of healthcare, with increased revenues driven by the augmentation of existing, and the acquisition of new, high-value contracts. In response to increased demand, the company has opened a new office in Southern England, which was fully operational by the time of writing. As part of our commitment to continuous improvement, a comprehensive review of internal processes was undertaken to ensure that all systems and procedures are fit for purpose. This review has led to the development of an implementation plan aimed at enhancing operational efficiency, streamlining workflows, and to ensure that our processes meet both regulatory requirements and best industry practices. This is underway at the time of writing. This review has highlighted that the Group's main trading companies, would benefit from a precautionary unencumbered cash injection from the ownership to cover short to medium term working capital requirements, as the outcome of ongoing negotiations aimed at the settlement of previously unknown liabilities reach their conclusion (it is perhaps important to add that these liabilities - before interest and potential surcharges - are included in the 2023 financial statements). This injection will be equity-biased, indicating the majority shareholder's confidence in the long term viability of the trading companies and the Group. Additionally, we are focused on ensuring that all staff are adequately trained and equipped to support the evolving needs of the business, in terms of technical skills and compliance awareness, thereby enabling employees to fully contribute to the Group's growth and maintain high standards of governance and regulatory compliance. The efforts alluded to above reflect the leadership's commitment to strengthening the Group's operational performance and position in the market in a sustainable manner. Principal Risks and Uncertainties The directors have identified the following areas of risk and uncertainty: Business performance risk The business environment in which we operate continues to be challenging with the key commercial risks being market conditions, costs of raw materials and labour and customer risk. Increased political and macro-economic uncertainty following the result of the recent US election and the continued war in Ukraine has added to these risks. Financial risk management Group companies use various financial instruments, including investments, cash, trade debtors, trade creditors and amounts owed to and from related undertakings that arise directly from operations. The main purpose of these financial instruments is to maintain a balance with regard to working capital and reinvestment, ultimately to secure long-term viability. The Group of its companies does not make use of derivative transactions to minimise exposure to interest rates or foreign exchange. The Group's operations expose it to a variety of financial risks that includes liquidity risk, interest rate risk, credit risk and foreign currency risk. The directors review and agree policies for managing each of these risks, which are summarised below: Liquidity risk and Cash flow risk The liquidity and cashflow position of the Group is closely managed to ensure that the business has the resources it needs to deliver products and services when required. The funding position of the Group is monitored and relationships with funders developed and managed to ensure that there are adequate facilities available to meet the financing needs associated with the growth ambitions of the business. Interest rate risk The growth in the business will give rise to higher levels of funding. The cost of funds is monitored by the directors, including the requirement for any hedging of interest rate exposure, that may be considered appropriate. Credit risk Uncertainties in the economic climate can give rise to bad debt risk. The board seeks to mitigate this risk by adhering to robust credit control procedures. Credit insurance is taken out where available, and all debtors are reviewed on a regular basis and provision is made for bad or doubtful debts should they arise. Foreign Currency risk The Group trades predominantly in sterling but is exposed to payment and receipts in other currencies, and in particular Euro and US dollar. The Group aims to balance receipts and payments in each currency. As the business grows, and to the extent required and considered appropriate by the directors, currency exposures may be managed by forward buying and selling. There are no financial instruments in place at the financial year end.
Group strategy and Future developments As part of our ongoing efforts to strengthen leadership and operational efficiency, at the time of writing the Executive Leadership Team (ELT) has established a Senior Management Team (SMT), complete with clearly defined Terms of Reference. This structure outlines the reporting framework and sets expectations for performance and accountability within the organisation. As part of this, the Group has implemented new performance targets to guide its growth and operational focus. Comprehensive budgets for all Group companies will encompass key growth areas, including upcoming projects and strategic initiatives, subject to periodic review and escalation where necessary. The Group is seeking to increase its roster of longer term contracts (up to three years) to provide greater visibility in terms of financial foresight and security. In terms of sectoral emphasis, as mentioned above, continued expansion into the high-demand healthcare sector is also set to continue, and geographically, the Group's geographical footprint continues to extend into the South of England and Wales. These efforts will be supported by ongoing investments in talent, infrastructure, and technology, ensuring that we remain well-positioned to meet our growth targets and deliver sustainable value to our stakeholders.
This report was approved by the board of directors on 20 November 2024 and signed on behalf of the board by:
Mr S Parr
Mr C Upritchard
Director
Director
Registered office:
Suites 3 & 4
Fortwilliam House
Edgewater Road
Belfast
Northern Ireland
BT3 9JQ
Parr Group Limited
Directors' Report
Year ended 31 December 2023
The directors present their report and the financial statements of the group for the year ended 31 December 2023 .
Directors
The directors who served the company during the year were as follows:
Mr S Parr
Mr C Upritchard
Dividends
The directors do not recommend the payment of a dividend.
Events after the end of the reporting period
Particulars of events after the reporting date are detailed in note 27 to the financial statements.
Disclosure of information in the strategic report
The Group has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the Group's strategic report information required by Sch. 7 to the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008 (SI 2008/410) to be contained in the directors' report. It has done so in respect of future developments and financial risk management (credit risk, liquidity risk, foreign currency risk and cash flow risk).
Directors' responsibilities statement
The directors are responsible for preparing the strategic report, 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 United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and the company and the profit or loss of the group for that period. In preparing these financial statements, the directors are required to: - select suitable accounting policies and then apply them consistently; - make judgments and accounting estimates that are reasonable and prudent; - 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 enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Auditor
Each of the persons who is a director at the date of approval of this report confirms that:
- so far as they are aware, there is no relevant audit information of which the group and the company's auditor is unaware; and - they have taken all steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the group and the company's auditor is aware of that information. The auditor is deemed to have been re-appointed in accordance with section 487 of the Companies Act 2006.
This report was approved by the board of directors on 20 November 2024 and signed on behalf of the board by:
Mr S Parr
Mr C Upritchard
Director
Director
Registered office:
Suites 3 & 4
Fortwilliam House
Edgewater Road
Belfast
Northern Ireland
BT3 9JQ
Parr Group Limited
Independent Auditor's Report to the Members of Parr Group Limited
Year ended 31 December 2023
Opinion
We have audited the financial statements of Parr Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023 which comprise the consolidated statement of comprehensive income, consolidated statement of financial position, company statement of financial position, consolidated statement of changes in equity, company statement of changes in equity, consolidated statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 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 group's and of the parent company's affairs as at 31 December 2023 and of the group's profit for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; - 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 group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's or the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Other information
The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The directors are responsible for the other information. 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.
Opinions 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 group and the parent 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or - the parent company 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, 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 group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
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: Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows: - the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations; - we identified the laws and regulations applicable to the company through discussions with directors and other management; - we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and - identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit. We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by: - making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and - considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations. To address the risk of fraud through management bias and override of controls, we: -performed analytical procedures to identify any unusual or unexpected relationships; and - assessed whether judgements and assumptions made in determining the accounting estimates set out in note 3 were indicative of potential bias. In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: - agreeing financial statement disclosures to underlying supporting documentation; and - enquiring of management as to actual and potential litigation and claims. There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also: - Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. - Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the group's internal control. - Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors. - Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the group's or the parent company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the group or the parent company to cease to continue as a going concern. - Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. - Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. Use of our report
This report is made solely to the company's members, as a body, in accordance with chapter 3 of part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.
John Magee
(Senior Statutory Auditor)
For and on behalf of
Aubrey Campbell & Company
Chartered accountants & statutory auditor
631 Lisburn Road
Belfast
BT9 7GT
20 November 2024
Parr Group Limited
Consolidated Statement of Comprehensive Income
Year ended 31 December 2023
2023
2022
Note
£
£
Turnover
4
22,788,206
21,491,439
Cost of sales
16,746,106
16,757,238
-------------
-------------
Gross profit
6,042,100
4,734,201
Distribution costs
67,133
27,324
Administrative expenses
5,977,932
5,944,223
Other operating income
5
278,526
150,710
------------
------------
Operating profit/(loss)
6
275,561
( 1,086,636)
Interest payable and similar expenses
10
146,735
116,896
------------
------------
Profit/(loss) before taxation
128,826
( 1,203,532)
Tax on profit/(loss)
11
13,677
( 80,564)
---------
------------
Profit/(loss) for the financial year and total comprehensive income
115,149
( 1,122,968)
---------
------------
Profit for the financial year attributable to:
The owners of the parent company
104,844
( 979,239)
Non-controlling interests
10,305
( 143,729)
---------
------------
115,149
( 1,122,968)
---------
------------
All the activities of the group are from continuing operations.
Parr Group Limited
Consolidated Statement of Financial Position
31 December 2023
2023
2022
Note
£
£
Fixed assets
Tangible assets
12
1,419,088
1,174,333
Current assets
Stocks
14
2,669,357
1,755,387
Debtors
15
6,560,852
5,906,488
Cash at bank and in hand
21,774
61,802
------------
------------
9,251,983
7,723,677
Creditors: amounts falling due within one year
17
8,004,806
6,140,743
------------
------------
Net current assets
1,247,177
1,582,934
------------
------------
Total assets less current liabilities
2,666,265
2,757,267
Creditors: amounts falling due after more than one year
18
830,551
1,046,764
Provisions
20
79,799
69,737
------------
------------
Net assets
1,755,915
1,640,766
------------
------------
Capital and reserves
Called up share capital
24
100
100
Profit and loss account
1,718,785
1,613,941
------------
------------
Equity attributable to the owners of the parent company
1,718,885
1,614,041
Non-controlling interests
37,030
26,725
------------
------------
1,755,915
1,640,766
------------
------------
These financial statements were approved by the board of directors and authorised for issue on 20 November 2024 , and are signed on behalf of the board by:
Mr S Parr
Mr C Upritchard
Director
Director
Company registration number: NI632846
Parr Group Limited
Company Statement of Financial Position
31 December 2023
2023
2022
Note
£
£
Fixed assets
Tangible assets
12
890,000
890,000
Investments
13
401
401
---------
---------
890,401
890,401
Current assets
Debtors
15
277,199
272,598
Cash at bank and in hand
170
2,571
---------
---------
277,369
275,169
Creditors: amounts falling due within one year
17
614,830
571,964
---------
---------
Net current liabilities
337,461
296,795
---------
---------
Total assets less current liabilities
552,940
593,606
Creditors: amounts falling due after more than one year
18
79,541
120,206
---------
---------
Net assets
473,399
473,400
---------
---------
Capital and reserves
Called up share capital
24
100
100
Profit and loss account
473,299
473,300
---------
---------
Shareholders funds
473,399
473,400
---------
---------
The loss for the financial year of the parent company was £ 1 (2022: £ 702 profit).
These financial statements were approved by the board of directors and authorised for issue on 20 November 2024 , and are signed on behalf of the board by:
Mr S Parr
Mr C Upritchard
Director
Director
Company registration number: NI632846
Parr Group Limited
Consolidated Statement of Changes in Equity
Year ended 31 December 2023
Called up share capital
Profit and loss account
Equity attributable to the owners of the parent company
Non-controlling interests
Total
£
£
£
£
£
At 1 January 2022
100
2,593,180
2,593,280
170,454
2,763,734
Loss for the year
( 979,239)
( 979,239)
( 143,729)
( 1,122,968)
----
------------
------------
---------
------------
Total comprehensive income for the year
( 979,239)
( 979,239)
( 143,729)
( 1,122,968)
At 31 December 2022
100
1,613,941
1,614,041
26,725
1,640,766
Profit for the year
104,844
104,844
10,305
115,149
----
------------
------------
---------
------------
Total comprehensive income for the year
104,844
104,844
10,305
115,149
----
------------
------------
---------
------------
At 31 December 2023
100
1,718,785
1,718,885
37,030
1,755,915
----
------------
------------
---------
------------
Parr Group Limited
Company Statement of Changes in Equity
Year ended 31 December 2023
Called up share capital
Profit and loss account
Total
£
£
£
At 1 January 2022
100
472,598
472,698
Profit for the year
702
702
----
---------
---------
Total comprehensive income for the year
702
702
At 31 December 2022
100
473,300
473,400
Loss for the year
( 1)
( 1)
----
---------
---------
Total comprehensive income for the year
( 1)
( 1)
----
---------
---------
At 31 December 2023
100
473,299
473,399
----
---------
---------
Parr Group Limited
Consolidated Statement of Cash Flows
Year ended 31 December 2023
2023
2022
Note
£
£
Cash flows from operating activities
Profit/(loss) for the financial year
115,149
( 1,122,968)
Adjustments for:
Depreciation of tangible assets
88,700
71,084
Interest payable and similar expenses
146,735
116,896
Loss on disposal of tangible assets
36,769
26,588
Tax on (loss)/profit
13,677
( 80,564)
Accrued expenses
89,764
456,915
Changes in:
Stocks
( 913,970)
( 891,993)
Trade and other debtors
( 752,758)
( 932,662)
Trade and other creditors
1,089,654
2,186,803
------------
------------
Cash generated from operations
( 86,280)
( 169,901)
Interest paid
( 146,735)
( 116,896)
Tax paid
( 18,470)
---------
---------
Net cash used in operating activities
( 251,485)
( 286,797)
---------
---------
Cash flows from investing activities
Purchase of tangible assets
( 370,222)
( 81,094)
Proceeds from sale of tangible assets
( 2)
11,342
---------
---------
Net cash used in investing activities
( 370,224)
( 69,752)
---------
---------
Cash flows from financing activities
Proceeds from borrowings
( 296,598)
( 275,737)
Proceeds from loans from group undertakings
1
Proceeds from loans from participating interests
187
( 67,875)
Payments of finance lease liabilities
283,629
( 30,837)
---------
---------
Net cash used in financing activities
( 12,782)
( 374,448)
---------
---------
Net decrease in cash and cash equivalents
( 634,491)
( 730,997)
Cash and cash equivalents at beginning of year
(814,118)
(83,121)
------------
---------
Cash and cash equivalents at end of year
16
( 1,448,609)
( 814,118)
------------
---------
Parr Group Limited
Notes to the Financial Statements
Year ended 31 December 2023
1. General information
The company is a private company limited by shares, registered in Northern Ireland. The address of the registered office is Suites 3 & 4, Fortwilliam House, Edgewater Road, Belfast, BT3 9JQ, Northern Ireland.
2. Statement of compliance
These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.
3. Accounting policies
Basis of preparation
The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.
The financial statements are prepared in sterling, which is the functional currency of the entity.
Going concern
The Group returned pre-tax profits of £128,826 (2022: pre-tax losses of £1,203,532) from continuing operations and ended the period in a net liabilities position of £1,755,915 (2022: £1,640,766). Whilst the increase in Group revenues provides just limited comfort, a return to profitability underlines the strides made by the leadership team in establishing worthwhile processes and procedures with regard to monitoring, resourcing, purchasing, and the careful selection of contracts and engagements. In addition, the finance team have implemented a rigorous routine to include 3-times weekly billing meetings using live information, weekly debtor and creditor meetings, and the production of daily cash flows for each trading company. The individual trading company's current overdraft and invoice financing facilities are due for renewal at the time of writing, and the Directors have taken into consideration the existing relationship with their financiers and the strength of the security provided - accordingly, it is envisaged that renewal should not be an issue (non-committal assurance has been provided by the bank). In addition, the reduction in long term debtors and debtor queries; resolutions with regard to other known material creditors; the changes made at senior leadership and the subsequent financial and non-financial improvements that have resulted; the quality of the company's customer base; and, assurances made by shareholders with regard to the imminent introduction of additional equity and debt funding (via the Group company, per the Strategic Report above) have also been factored in. Taking account of the above, in conjunction with possible changes in trading performance, the directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future. The Group, therefore, continues to adopt the going concern basis in preparing its financial statements.
Disclosure exemptions
The parent company satisfies the criteria of being a qualifying entity as defined in FRS 102. As such, advantage has been taken of the following reduced disclosures available under FRS 102:
(a) Disclosures in respect of each class of share capital have not been presented.
(b) No cash flow statement has been presented for the company.
(c) Disclosures in respect of financial instruments have not been presented.
(d) No disclosure has been given for the aggregate remuneration of key management personnel.
Consolidation
The financial statements consolidate the financial statements of Parr Group Limited and all of its subsidiary undertakings.
The results of subsidiaries acquired or disposed of during the year are included from or to the date that control passes.
The parent company has applied the exemption contained in section 408 of the Companies Act 2006 and has not presented its individual profit and loss account.
Non-controlling interests
Minority interests in the net assets of consolidated subsidiaries are identified separately from the Group’s equity. Minority interests consist of the amount of those interests at the date of the original business combination and the minority’s share of changes in equity since the date of the combination.
The proportions of profit or loss and changes in equity allocated to the owners of the parent and to the minority interests are determined on the basis of existing ownership interests and do not reflect the possible exercise or conversion of options or convertible instruments.
Judgements and key sources of estimation uncertainty
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Significant judgements The judgements (apart from those involving estimations) that management has made in the process of applying the entity's accounting policies and that have the most significant effect on the amounts recognised in the financial statements are as follows: Useful economic lives of tangible assets The annual depreciation charge for tangible 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. Going concern In order to assess whether it is appropriate for the company to be reported as a going concern, the directors apply judgement, having undertaken appropriate enquiries and having considered the business activities and the company's principal risks and uncertainties. In arriving at this judgement there are a large number of assumptions and estimates involved. This includes management's expectations of revenue, EBITDA, timing and quantum of future capital expenditure and estimates and cost of future funding. Key sources of estimation uncertainty Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the related actual outcome. The key assumptions and other sources of estimation uncertainty that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are as follows: Provision for bad or doubtful debts The company has significant trade debtor balances from a large number of customers at any given point in time and further to that, significant debtor balances from related party entities. Consequently estimating the required provision for such debtors requires a regular review to identify those entities where events (either historical or current) give management an indication that future collectability may be uncertain. Construction contract revenue Recognised amounts of construction contract revenues and related receivables reflect management's best estimate of each contract's outcome and stage of completion. This includes the assessment of the profitability of ongoing construction contracts and the order backlog. For more complex contracts in particular, costs to complete and contract profitability are subject to estimation uncertainty.
Revenue recognition
Turnover is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of discounts and Value Added Tax. Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have transferred to the buyer (usually on despatch of the goods); the amount of revenue can be measured reliably; it is probable that the associated economic benefits will flow to the entity; and the costs incurred or to be incurred in respect of the transactions can be measured reliably.
Income tax
The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.
Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.
Foreign currencies
Foreign currency transactions are initially recorded in the functional currency, by applying the spot exchange rate as at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the exchange rate ruling at the reporting date, with any gains or losses being taken to the profit and loss account.
Operating leases
Lease payments are recognised as an expense over the lease term on a straight-line basis. The aggregate benefit of lease incentives is recognised as a reduction to expense over the lease term, on a straight-line basis.
Tangible assets
Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in equity, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss.
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
Plant and machinery
-
20% reducing balance
Fixtures and fittings
-
20% reducing balance
Motor vehicles
-
20% reducing balance
Investment property
Investment property is initially recorded at cost, which includes purchase price and any directly attributable expenditure. Investment property is revalued to its fair value at each reporting date and any changes in fair value are recognised in profit or loss.
Investments
Fixed asset investments are initially recorded at cost, and subsequently stated at cost less any accumulated impairment losses. Listed investments are measured at fair value with changes in fair value being recognised in profit or loss.
Investment property
Investment property is property held by the group to earn rentals or for capital appreciation, or both.
Investment property is initially recorded at cost, which includes purchase price and any directly attributable expenditure.
Investment property is revalued to its fair value at each reporting date and any changes in fair value are recognised in profit or loss. Fair value is the amount for which an asset could be exchanged between knowledgeable, willing parties in an arm's length transaction.
Investments in associates
Investments in associates are accounted for using the equity method of accounting, whereby the investment is initially recognised at the transaction price and subsequently adjusted to reflect the group's share of the profit or loss, other comprehensive income and equity of the associate.
Investments in joint ventures
Investments in joint ventures are accounted for using the equity method of accounting, whereby the investment is initially recognised at the transaction price and subsequently adjusted to reflect the group's share of the profit or loss, other comprehensive income and equity of the joint venture.
Impairment of fixed assets
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets. For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the company are assigned to those units.
Stocks
Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition.
Finance leases and hire purchase contracts
Assets held under finance leases and hire purchase contracts are recognised in the statement of financial position as assets and liabilities at the lower of the fair value of the assets and the present value of the minimum lease payments, which is determined at the inception of the lease term. Any initial direct costs of the lease are added to the amount recognised as an asset. Lease payments are apportioned between the finance charges and reduction of the outstanding lease liability using the effective interest method. Finance charges are allocated to each period so as to produce a constant rate of interest on the remaining balance of the liability.
Provisions
Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.
Financial instruments
A financial asset or a financial liability is recognised only when the company becomes a party to the contractual provisions of the instrument. Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Debt instruments are subsequently measured at amortised cost. Where investments in non-convertible preference shares and non-puttable ordinary shares or preference shares are publicly traded or their fair value can otherwise be measured reliably, the investment is subsequently measured at fair value with changes in fair value recognised in profit or loss. All other such investments are subsequently measured at cost less impairment. Other financial instruments, including derivatives, are initially recognised at fair value, unless payment for an asset is deferred beyond normal business terms or financed at a rate of interest that is not a market rate, in which case the asset is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Other financial instruments are subsequently measured at fair value, with any changes recognised in profit or loss, with the exception of hedging instruments in a designated hedging relationship.
Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately. For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets are either assessed individually or grouped on the basis of similar credit risk characteristics. Any reversals of impairment are recognised in profit or loss immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.
Defined contribution plans
Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund. When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.
4. Turnover
The whole of the turnover is attributable to its market in the United Kingdom and is derived from the principal activity of building, mechanical, civil engineering, demolition and electrical contracting.
Turnover attributable to the ROI market has not been disclosed separately from the UK market as this information is deemed seriously prejudicial to the interest of the group.
5. Other operating income
2023
2022
£
£
Management charges receivable
12,050
Other operating income
278,526
138,660
---------
---------
278,526
150,710
---------
---------
6. Operating profit
Operating profit or loss is stated after charging/crediting:
2023
2022
£
£
Depreciation of tangible assets
88,700
71,084
Loss on disposal of tangible assets
36,769
26,588
Impairment of trade debtors
76,176
Foreign exchange differences
( 3,338)
51,134
--------
--------
7. Auditor's remuneration
2023
2022
£
£
Fees payable for the audit of the financial statements
34,050
42,000
--------
--------
8. Staff costs
The average number of persons employed by the group during the year, including the directors, amounted to:
2023
2022
No.
No.
Production staff
72
98
Distribution staff
3
6
Administrative staff
110
73
Management staff
3
11
----
----
188
188
----
----
The aggregate payroll costs incurred during the year, relating to the above, were:
2023
2022
£
£
Wages and salaries
7,107,764
6,739,212
Social security costs
674,731
658,280
Other pension costs
51,197
86,071
------------
------------
7,833,692
7,483,563
------------
------------
9. Directors' remuneration
The directors' aggregate remuneration in respect of qualifying services was:
2023
2022
£
£
Remuneration
389,586
555,562
---------
---------
Remuneration of the highest paid director in respect of qualifying services:
2023
2022
£
£
Aggregate remuneration
70,000
87,668
--------
--------
10. Interest payable and similar expenses
2023
2022
£
£
Interest on banks loans and overdrafts
100,358
79,753
Interest on obligations under finance leases and hire purchase contracts
22,023
23,387
Other interest payable and similar charges
24,354
13,756
---------
---------
146,735
116,896
---------
---------
11. Tax on (loss)/profit
Major components of tax income
2023
2022
£
£
Current tax:
UK current tax income
3,711
Adjustments in respect of prior periods
3,615
( 104,837)
-------
---------
Total current tax
3,615
( 101,126)
-------
---------
Deferred tax:
Origination and reversal of timing differences
10,062
20,562
--------
--------
Tax on (loss)/profit
13,677
( 80,564)
--------
--------
Reconciliation of tax expense/(income)
The tax assessed on the profit/(loss) on ordinary activities for the year is lower than (2022: higher than) the standard rate of corporation tax in the UK of 23.40 % (2022: 19 %).
2023
2022
£
£
Profit/(loss) on ordinary activities before taxation
128,826
( 1,203,532)
---------
------------
Profit/(loss) on ordinary activities by rate of tax
30,146
( 228,671)
Adjustment to tax charge in respect of prior periods
3,615
( 104,837)
Effect of expenses not deductible for tax purposes
25,483
17,515
Effect of capital allowances and depreciation
( 45,162)
( 3,118)
Utilisation of tax losses
( 41,657)
Unused tax losses
41,252
238,747
Utilisation of tax losses from group companies
( 200)
---------
------------
Tax on (loss)/profit
13,677
( 80,564)
---------
------------
12. Tangible assets
Group
Plant and machinery
Fixtures and fittings
Motor vehicles
Investment Property
Total
£
£
£
£
£
Cost
At 1 January 2023
86,583
347,807
586,353
890,000
1,910,743
Additions
370,222
370,222
Disposals
( 122,578)
( 122,578)
--------
---------
---------
---------
------------
At 31 December 2023
86,583
347,807
833,997
890,000
2,158,387
--------
---------
---------
---------
------------
Depreciation
At 1 January 2023
76,873
286,055
373,482
736,410
Charge for the year
1,942
12,351
74,407
88,700
Disposals
( 85,811)
( 85,811)
--------
---------
---------
---------
------------
At 31 December 2023
78,815
298,406
362,078
739,299
--------
---------
---------
---------
------------
Carrying amount
At 31 December 2023
7,768
49,401
471,919
890,000
1,419,088
--------
---------
---------
---------
------------
At 31 December 2022
9,710
61,752
212,871
890,000
1,174,333
--------
---------
---------
---------
------------
Company
Investment Property
£
Cost
At 1 January 2023 and 31 December 2023
890,000
---------
Depreciation
At 1 January 2023 and 31 December 2023
---------
Carrying amount
At 31 December 2023
890,000
---------
At 31 December 2022
890,000
---------
The fair value of the investment properties has been arrived at on the basis of valuations performed in July and August 2022 by external valuers, who are not connected with the company. The valuation was made on an open market value basis .
Finance leases and hire purchase contracts
Included within the carrying value of tangible assets are the following amounts relating to assets held under finance leases or hire purchase agreements:
Group
Motor vehicles
£
At 31 December 2023
409,794
---------
At 31 December 2022
137,961
---------
The company has no tangible assets held under finance lease or hire purchase agreements.
13. Investments
The group has no investments.
Company
Shares in group undertakings
£
Cost
At 1 January 2023 and 31 December 2023
401
----
Impairment
At 1 January 2023 and 31 December 2023
----
Carrying amount
At 1 January 2023 and 31 December 2023
401
----
At 31 December 2022
401
----
Subsidiaries, associates and other investments
Details of the investments in which the parent company has an interest of 20% or more are as follows:
Class of share
Percentage of shares held
Subsidiary undertakings
SPE Contracts Limited
A and B Ordinary
97
Parr Facilities Management Limited
A Ordinary
70
Parr Projects Limited
Ordinary
75
Parr Renewables Limited
Ordinary
75
SPE Contracts Ireland Limited
Ordinary
100
The registered offices of SPE Contracts Limited, Parr Facilities Management Limited, Parr Projects Limited and Parr Renewables Limited is Suites 3 & 4, Fortwilliam House, Edgewater Road, Belfast, BT3 9JQ. The registered office of SPE Contracts Ireland Limited is Unit 2 Woodlawn Business Park, Dublin 9, Santry, Dublin, Ireland.
14. Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Work in progress
2,649,357
1,735,387
Finished goods and goods for resale
20,000
20,000
------------
------------
----
----
2,669,357
1,755,387
------------
------------
----
----
15. Debtors
Group
Company
2023
2022
2023
2022
£
£
£
£
Trade debtors
5,955,343
4,237,991
Amounts owed by group undertakings
124,099
114,274
Amounts owed by undertakings in which the company has a participating interest
6,324
564,353
Prepayments and accrued income
178,807
255,888
5,224
Directors loan account
82,974
100
100
Other debtors
420,378
765,282
153,000
153,000
------------
------------
---------
---------
6,560,852
5,906,488
277,199
272,598
------------
------------
---------
---------
16. Cash and cash equivalents
Cash and cash equivalents comprise the following:
2023
2022
£
£
Cash at bank and in hand
21,774
61,802
Bank overdrafts
( 1,470,383)
( 875,920)
------------
---------
( 1,448,609)
( 814,118)
------------
---------
17. Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
£
£
£
£
Bank loans and overdrafts
1,906,344
1,163,527
31,907
22,268
Trade creditors
3,968,673
3,915,170
Amounts owed to group undertakings
539,674
516,367
Amounts owed to undertakings in which the company has a participating interest
187
Accruals and deferred income
303,501
312,131
10,000
3,200
Corporation tax
46,098
60,953
24,765
24,765
Social security and other taxes
1,526,908
484,325
5,583
2,463
Obligations under finance leases and hire purchase contracts
101,526
53,002
Director loan accounts
6,366
Other creditors
145,203
151,635
2,901
2,901
------------
------------
---------
---------
8,004,806
6,140,743
614,830
571,964
------------
------------
---------
---------
A first and only all monies debenture in favour of the bank over all the borrower's assets and undertaking to incorporate a first and only legal charge over property situated at Unit 1, Tamar Commercial Centre, Chater Street, Belfast, BT4 1BL. An all monies composite guarantee in favour of the Bank from each of Parr Group Limited , Parr FM Limited and SPE Contracts Limited collateralised by first and only all monies debentures over the property, assets and undertaking of each company. A fixed charge over all that property situate at and known as Unit 10, Tamar Commercial Centre, Tamar Street, Belfast, BT4 1HR. A fixed charge over all that property situate at and known as 18 Smithfield lane, Worseley, Manchester, M28 0GP.
18. Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
£
£
£
£
Bank loans and overdrafts
529,467
980,785
79,541
120,206
Obligations under finance leases and hire purchase contracts
301,084
65,979
---------
------------
--------
---------
830,551
1,046,764
79,541
120,206
---------
------------
--------
---------
19. Finance leases and hire purchase contracts
The total future minimum lease payments under finance leases and hire purchase contracts are as follows:
Group
Company
2023
2022
2023
2022
£
£
£
£
Not later than 1 year
101,526
53,002
Later than 1 year and not later than 5 years
301,084
65,979
---------
---------
----
----
402,610
118,981
---------
---------
----
----
20. Provisions
Group
Deferred tax (note 21)
£
At 1 January 2023
69,737
Additions
39,555
Charge against provision
( 29,493)
--------
At 31 December 2023
79,799
--------
The company does not have any provisions.
21. Deferred tax
The deferred tax included in the statement of financial position is as follows:
Group
Company
2023
2022
2023
2022
£
£
£
£
Included in provisions (note 20)
79,799
69,737
--------
--------
----
----
The deferred tax account consists of the tax effect of timing differences in respect of:
Group
Company
2023
2022
2023
2022
£
£
£
£
Accelerated capital allowances
79,799
69,737
--------
--------
----
----
22. Employee benefits
Defined contribution plans
The amount recognised in profit or loss as an expense in relation to defined contribution plans was £ 15,799 (2022: £ 30,328 ).
23. Financial instruments
The carrying amount for each category of financial instrument is as follows:
Financial assets that are debt instruments measured at amortised cost
Group
2023
2022
£
£
Financial assets that are debt instruments measured at amortised cost
6,447,045
5,813,994
------------
------------
Financial liabilities measured at amortised cost
Group
2023
2022
£
£
Financial liabilities measured at amortised cost
7,262,351
6,642,228
------------
------------
24. Called up share capital
Issued, called up and fully paid
2023
2022
No.
£
No.
£
Ordinary shares of £ 1 each
100
100
100
100
----
----
----
----
25. Analysis of changes in net debt
At 1 Jan 2023
Cash flows
At 31 Dec 2023
£
£
£
Cash at bank and in hand
61,802
(40,028)
21,774
Bank overdrafts
(875,920)
(594,463)
(1,470,383)
Debt due within one year
(340,609)
(203,431)
(544,040)
Debt due after one year
(1,046,764)
216,213
(830,551)
------------
---------
------------
( 2,201,491)
( 621,709)
( 2,823,200)
------------
---------
------------
26. Operating leases
The total future minimum lease payments under non-cancellable operating leases are as follows:
Group
Company
2023
2022
2023
2022
£
£
£
£
Not later than 1 year
311,760
311,760
Later than 1 year and not later than 5 years
311,760
623,520
---------
---------
----
----
623,520
935,280
---------
---------
----
----
27. Events after the end of the reporting period
The Group sold property at Tamar Street, Belfast which was held per the balance sheet at £515,000 at the 31 December 2023. Completion was dated 10 May 2024.
Parr Group Limited
Notes to the Financial Statements (continued)
Year ended 31 December 2023
28. Limitation of auditors liability
The group has entered into a liability limitation agreement with its auditor, Aubrey Campbell and Company, on the following basis:
(a) the maximum aggregate amount of the auditor's liability to the company shall not exceed the sum of seven times the fees payable (excluding expenses and value added tax) under the engagement letter agreed for the financial period, or £30,000, whichever is the lesser amount.
(b) the agreement was passed by a resolution of the company's shareholders on 19th November 2024.
29. Directors' advances, credits and guarantees
During the year the directors entered into the following advances and credits with the company and its subsidiary undertakings:
2023
Balance brought forward
Advances/ (credits) to the directors
Amounts repaid
Balance outstanding
£
£
£
£
Mr S Parr
82,974
90,660
( 180,000)
( 6,366)
--------
--------
---------
-------
2022
Balance brought forward
Advances/ (credits) to the directors
Amounts repaid
Balance outstanding
£
£
£
£
Mr S Parr
443,204
218,012
( 578,242)
82,974
---------
---------
---------
--------
30. Related party transactions
Company
Co Parr Limited owes SPE Contracts Ltd £6,324 (2022: £564,353). During the 2022 year, SPE Contracts Ltd charged £10,000 of management income and sales of £776,853 to this entity under common control of key management. Hargan Homes Ltd owes SPE Contracts Ltd £123,813 (2022: £nil). During the year, SPE Contracts Ltd charged sales of £177,322 to this entity under common control of key management (2022: £2,050 of management income). Prometheus No. 1 Limited owed SPE Contracts Ltd £40,000 (2022: £nil). During the year, SPE Contracts Ltd charged sales of £105,612 to this entity under common control of key management. All amounts are repayable on demand. Note that key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the company, either directly or indirectly. Compensation paid to key management personnel, which includes all employee benefits, in the period was £450,559 (2022: £607,663).
31. Controlling party
The group was under the control of Mr S Parr during the current and prior periods.