REGISTERED NUMBER: 05455025 (England and Wales) |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
FOR |
PRECISION ENGINEERING PLASTICS |
(HOLDINGS) LIMITED |
REGISTERED NUMBER: 05455025 (England and Wales) |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
FOR |
PRECISION ENGINEERING PLASTICS |
(HOLDINGS) LIMITED |
PRECISION ENGINEERING PLASTICS |
(HOLDINGS) LIMITED (REGISTERED NUMBER: 05455025) |
CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 3 |
Report of the Independent Auditors | 5 |
Consolidated Statement of Comprehensive Income | 8 |
Consolidated Balance Sheet | 9 |
Company Balance Sheet | 11 |
Consolidated Statement of Changes in Equity | 13 |
Company Statement of Changes in Equity | 14 |
Consolidated Cash Flow Statement | 15 |
Notes to the Consolidated Cash Flow Statement | 16 |
Notes to the Consolidated Financial Statements | 17 |
PRECISION ENGINEERING PLASTICS |
(HOLDINGS) LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
SENIOR STATUTORY AUDITOR: | Christopher Andrews ACA |
AUDITORS: |
Chartered Accountants |
& Statutory Auditors |
2 Mountside |
Stanmore |
Middlesex |
HA7 2DT |
PRECISION ENGINEERING PLASTICS |
(HOLDINGS) LIMITED (REGISTERED NUMBER: 05455025) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
The directors present their strategic report of the company and the group for the year ended 31st December 2023. |
REVIEW OF BUSINESS |
The directors consider that the key financial performance indicators (KPIs) are those that communicate the financial performance and strength of the company as a whole to its members. These KPIs comprise turnover, operating profit and shareholders' funds. The company is exempt from the requirement to disclose details of non-financial key performance indicators as it is a medium sized company. |
During the year the group reported a 12% decrease in turnover due to reduced demand, leading to a 30% decrease in operating profit. At the year end, shareholders' funds increased by 5% and net assets per ordinary share were £807. |
The group expects profitability to remain under pressure in the future due to continuing world and inflation uncertainties and their impact on costs. |
PRINCIPAL RISKS AND UNCERTAINTIES |
The group's financial risk management objectives consist of identifying and monitoring those risks which have an adverse impact on the value of the group's financial assets and liabilities or on reported profitability and on the cash flows of the group. |
The group's principal financial instruments comprise cash balances and various items such as trade debtors and trade creditors which arise directly from trading operations. The main purpose of these financial instruments is to provide finance for the group's operations. The existence of these financial instruments exposes the group to a number of financial risks. |
LIQUIDITY RISK |
The group minimises its exposure to liquidity risk by managing cash generation by its operations with cash collection targets set. In this way the group ensures that sufficient funds are available for day to day operations and planned expansions. |
CREDIT RISK |
The principal credit risk arises from trade debtors. Management has a credit policy in place and exposure to credit risk is monitored on an ongoing basis, based on a combination of payment history and third party references. |
FUTURE DEVELOPMENTS |
The directors are satisfied with the results achieved during the year. Their plan for the future is to continue in their efforts to secure new orders, both in the United Kingdom and overseas, and to continue to invest in new plant and machinery. Brexit and events outside the group's control have created significant uncertainties which are likely to dampen the group's future growth, but in the directors' opinion, the group is well positioned to meet these challenges. |
ON BEHALF OF THE BOARD: |
PRECISION ENGINEERING PLASTICS |
(HOLDINGS) LIMITED (REGISTERED NUMBER: 05455025) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
The directors present their report with the financial statements of the company and the group for the year ended 31st December 2023. |
DIVIDENDS |
Interim dividends of £190,000 (2022: £170,000) were distributed during the year. The directors do not recommend the payment of a final dividend. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1st January 2023 to the date of this report. |
DISCLOSURE IN THE STRATEGIC REPORT |
The information required by schedule 7 of the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008 has been disclosed in the Strategic Report. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Group Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the group and of 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 judgements 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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
The directors of a company must, in determining how amounts are presented within items in the profit and loss account and balance sheet, have regard to the substance of the reported transaction or arrangement, in accordance with generally accepted accounting principles and practice. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
PRECISION ENGINEERING PLASTICS |
(HOLDINGS) LIMITED (REGISTERED NUMBER: 05455025) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
AUDITORS |
The auditors, Mountsides Limited, are deemed to be reappointed under s487(2) of the Companies Act 2006. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
PRECISION ENGINEERING PLASTICS |
(HOLDINGS) LIMITED |
Opinion |
We have audited the financial statements of Precision Engineering Plastics (Holdings) Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31st December 2023 which comprise the Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, 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 Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
_ |
In our opinion the financial statements: |
- | give a true and fair view of the state of the group's and of the parent company affairs as at 31st 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; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' 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 and 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 directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
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 this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
PRECISION ENGINEERING PLASTICS |
(HOLDINGS) LIMITED |
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 Group Strategic Report or the Report of the Directors. |
We have nothing to report in respect of the following matters where 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 Statement of Directors' Responsibilities set out on page three, 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 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. |
Auditors' 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 a Report of the Auditors 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. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
Based on our understanding of the company and the environment in which it operates, we identified that the principal risks of non-compliance with laws and regulations related to but not limited to, Companies Act 2006 and UK tax legislation, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the financial statements such as the Companies Act 2006. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to posting inappropriate journal entries to increase revenue or reduce expenditure, and management bias in accounting estimates. Audit procedures performed included: |
- Enquiries with management, including consideration of known or suspected instances of non-compliance with laws and regulations and fraud. |
- Designing audit procedures to incorporate unpredictability around the nature, timing or extent of our testing. |
- Identifying and testing journal entries, in particular any journal entries posted with unusual account combinations. |
- Reviewing the financial statements for compliance with the Companies Act 2006. |
- Evaluating and challenging the reasonableness of accounting estimates. |
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 Report of the Auditors. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
PRECISION ENGINEERING PLASTICS |
(HOLDINGS) LIMITED |
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 a Report of the Auditors 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. |
for and on behalf of |
Chartered Accountants |
& Statutory Auditors |
2 Mountside |
Stanmore |
Middlesex |
HA7 2DT |
PRECISION ENGINEERING PLASTICS |
(HOLDINGS) LIMITED (REGISTERED NUMBER: 05455025) |
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
31.12.23 | 31.12.22 |
Notes | £ | £ |
REVENUE | 4 | 5,921,914 | 6,702,933 |
Cost of sales | (3,819,705 | ) | (4,347,561 | ) |
GROSS PROFIT | 2,102,209 | 2,355,372 |
Administrative expenses | (1,400,570 | ) | (1,349,943 | ) |
OPERATING PROFIT | 6 | 701,639 | 1,005,429 |
Interest receivable and similar income | 42,432 | - |
PROFIT BEFORE TAXATION | 744,071 | 1,005,429 |
Tax on profit | 7 | (127,339 | ) | (154,628 | ) |
PROFIT FOR THE FINANCIAL YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
616,732 |
850,801 |
Profit attributable to: |
Owners of the parent | 616,732 | 850,801 |
Total comprehensive income attributable to: |
Owners of the parent | 616,732 | 850,801 |
PRECISION ENGINEERING PLASTICS |
(HOLDINGS) LIMITED (REGISTERED NUMBER: 05455025) |
CONSOLIDATED BALANCE SHEET |
31ST DECEMBER 2023 |
31.12.23 | 31.12.22 |
Notes | £ | £ |
FIXED ASSETS |
Property, plant and equipment | 11 | 2,879,772 | 3,090,325 |
Investments | 12 | - | - |
2,879,772 | 3,090,325 |
CURRENT ASSETS |
Inventories | 13 | 495,309 | 698,674 |
Debtors | 14 | 2,926,929 | 3,167,641 |
Cash at bank and in hand | 3,659,473 | 2,713,995 |
7,081,711 | 6,580,310 |
CREDITORS |
Amounts falling due within one year | 15 | (847,428 | ) | (954,597 | ) |
NET CURRENT ASSETS | 6,234,283 | 5,625,713 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
9,114,055 |
8,716,038 |
PROVISIONS FOR LIABILITIES | 16 | (113,606 | ) | (142,321 | ) |
NET ASSETS | 9,000,449 | 8,573,717 |
CAPITAL AND RESERVES |
Called up share capital | 17 | 11,136 | 11,136 |
Retained earnings | 8,989,313 | 8,562,581 |
SHAREHOLDERS' FUNDS | 9,000,449 | 8,573,717 |
PRECISION ENGINEERING PLASTICS |
(HOLDINGS) LIMITED (REGISTERED NUMBER: 05455025) |
CONSOLIDATED BALANCE SHEET - continued |
31ST DECEMBER 2023 |
The financial statements were approved by the Board of Directors and authorised for issue on 28th November 2024 and were signed on its behalf by: |
Mr P Doheny - Director |
Mr V Marino - Director |
PRECISION ENGINEERING PLASTICS |
(HOLDINGS) LIMITED (REGISTERED NUMBER: 05455025) |
COMPANY BALANCE SHEET |
31ST DECEMBER 2023 |
31.12.23 | 31.12.22 |
Notes | £ | £ |
FIXED ASSETS |
Property, plant and equipment | 11 |
Investments | 12 |
CURRENT ASSETS |
Debtors | 14 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 15 | ( |
) | ( |
) |
NET CURRENT LIABILITIES | ( |
) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
PROVISIONS FOR LIABILITIES | 16 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 17 |
Retained earnings |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | 426,400 | 423,493 |
PRECISION ENGINEERING PLASTICS |
(HOLDINGS) LIMITED (REGISTERED NUMBER: 05455025) |
COMPANY BALANCE SHEET - continued |
31ST DECEMBER 2023 |
The financial statements were approved by the Board of Directors and authorised for issue on |
PRECISION ENGINEERING PLASTICS |
(HOLDINGS) LIMITED (REGISTERED NUMBER: 05455025) |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1st January 2022 | 11,136 | 7,881,780 | 7,892,916 |
Changes in equity |
Dividends | - | (170,000 | ) | (170,000 | ) |
Total comprehensive income | - | 850,801 | 850,801 |
Balance at 31st December 2022 | 11,136 | 8,562,581 | 8,573,717 |
Changes in equity |
Dividends | - | (190,000 | ) | (190,000 | ) |
Total comprehensive income | - | 616,732 | 616,732 |
Balance at 31st December 2023 | 11,136 | 8,989,313 | 9,000,449 |
PRECISION ENGINEERING PLASTICS |
(HOLDINGS) LIMITED (REGISTERED NUMBER: 05455025) |
COMPANY STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1st January 2022 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 31st December 2022 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 31st December 2023 |
PRECISION ENGINEERING PLASTICS |
(HOLDINGS) LIMITED (REGISTERED NUMBER: 05455025) |
CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
31.12.23 | 31.12.22 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 1,241,733 | 1,037,305 |
Tax paid | (138,607 | ) | (475,260 | ) |
Net cash from operating activities | 1,103,126 | 562,045 |
Cash flows from investing activities |
Purchase of tangible fixed assets | (10,080 | ) | (163,570 | ) |
Sale of tangible fixed assets | - | 62,250 |
Interest received | 42,432 | - |
Net cash from investing activities | 32,352 | (101,320 | ) |
Cash flows from financing activities |
Capital repayments in year | - | (11,421 | ) |
Equity dividends paid | (190,000 | ) | (170,000 | ) |
Net cash from financing activities | (190,000 | ) | (181,421 | ) |
Increase in cash and cash equivalents | 945,478 | 279,304 |
Cash and cash equivalents at beginning of year |
2 |
2,713,995 |
2,434,691 |
Cash and cash equivalents at end of year | 2 | 3,659,473 | 2,713,995 |
PRECISION ENGINEERING PLASTICS |
(HOLDINGS) LIMITED (REGISTERED NUMBER: 05455025) |
NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
31.12.23 | 31.12.22 |
£ | £ |
Profit before taxation | 744,071 | 1,005,429 |
Depreciation charges | 220,632 | 229,901 |
Profit on disposal of fixed assets | - | (4,250 | ) |
Finance income | (42,432 | ) | - |
922,271 | 1,231,080 |
Decrease in inventories | 203,365 | 8,430 |
Decrease/(increase) in trade and other debtors | 240,712 | (348,030 | ) |
(Decrease)/increase in trade and other creditors | (124,615 | ) | 145,825 |
Cash generated from operations | 1,241,733 | 1,037,305 |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 31st December 2023 |
31.12.23 | 1.1.23 |
£ | £ |
Cash and cash equivalents | 3,659,473 | 2,713,995 |
Year ended 31st December 2022 |
31.12.22 | 1.1.22 |
£ | £ |
Cash and cash equivalents | 2,713,995 | 2,434,691 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1.1.23 | Cash flow | At 31.12.23 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 2,713,995 | 945,478 | 3,659,473 |
2,713,995 | 945,478 | 3,659,473 |
Total | 2,713,995 | 945,478 | 3,659,473 |
PRECISION ENGINEERING PLASTICS |
(HOLDINGS) LIMITED (REGISTERED NUMBER: 05455025) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
1. | STATUTORY INFORMATION |
Precision Engineering Plastics (Holdings) Limited is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | STATEMENT OF COMPLIANCE |
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. |
3. | ACCOUNTING POLICIES |
BASIS OF PREPARING THE FINANCIAL STATEMENTS |
SIGNIFICANT JUDGEMENTS AND ESTIMATES |
The preparation of the financial statements requires management to make significant judgements, estimates and assumptions that affect the amounts reported. These estimates, judgements and assumptions 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. The items in the financial statements where judgements, estimates and assumptions have been made include: |
Debtors |
Management applies judgements in evaluating the recoverability of debtors. To the extent that the directors believe debtors not to be recoverable, they have been provided for in the financial statements. |
Stock |
Management applies judgements in evaluating stock for obsolete and slow moving items. This judgement is based on management knowledge of the stock and customer demand, as well as stock age. At each balance sheet date, stocks are assessed for impairment and written down as appropriate. |
TURNOVER |
The turnover shown in the profit and loss account represents revenue recognised by the group in respect of goods and services supplied during the year.Turnover is measured at the fair value of the consideration received or receivable net of value added tax and trade discounts. The policies adopted for the recognition of turnover are as follows: |
Sale of goods |
Turnover from the sale of goods is recognised when significant risks and rewards of ownership of the goods have transferred to the buyer, the amount of turnover can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the group and the costs incurred or to be incurred in respect of the transaction can be measured reliably. This is usually on dispatch of the goods. |
Rendering of services |
When the outcome of a transaction can be estimated reliably, turnover from rendering of services is recognised by reference to the stage of completion at the balance sheet date. Stage of completion is measured by reference to actual time spent to the total budgeted time. |
Where the outcome cannot be measured reliably, turnover is recognised only to the extent of the expenses recognised that are recoverable. |
PRECISION ENGINEERING PLASTICS |
(HOLDINGS) LIMITED (REGISTERED NUMBER: 05455025) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
3. | ACCOUNTING POLICIES - continued |
TANGIBLE FIXED ASSETS |
Freehold property | - |
Plant and machinery | - |
Fixtures and fittings | - |
Motor vehicles | - |
INVENTORIES |
Stocks and work in progress are valued at the lower of cost and net realisable value, after making due allowances for obsolete and slow moving items. Cost includes all direct expenditure and an appropriate proportion of fixed and variable overheads. |
FINANCIAL INSTRUMENTS |
The group only enters into basic financial instruments that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable and loans to related parties. |
Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment of assets are recognised in the profit and loss account in other administrative expenses. |
TAXATION |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
DEFERRED TAX |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
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. |
RESEARCH AND DEVELOPMENT |
Expenditure on research and development is written off in the year in which it is incurred. |
FOREIGN CURRENCIES |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result. |
PRECISION ENGINEERING PLASTICS |
(HOLDINGS) LIMITED (REGISTERED NUMBER: 05455025) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
3. | ACCOUNTING POLICIES - continued |
LEASING COMMITMENTS |
Leases that do not transfer all the risks and rewards of ownership are classified as operating leases. Payments under operating leases are charged to the profit and loss account on a straight-line basis over the period of the lease. |
PENSION COSTS AND OTHER POST-RETIREMENT BENEFITS |
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
FIXED ASSET INVESTMENTS |
Fixed assets investments are stated at cost less provision for any impairment. |
4. | REVENUE |
The revenue and profit before taxation are attributable to the one principal activity of the group. |
An analysis of revenue by geographical market is given below: |
31.12.23 | 31.12.22 |
£ | £ |
United Kingdom | 4,755,406 | 5,313,272 |
Europe | 825,211 | 1,008,803 |
Rest of the World | 341,297 | 380,858 |
5,921,914 | 6,702,933 |
5. | EMPLOYEES AND DIRECTORS |
31.12.23 | 31.12.22 |
£ | £ |
Wages and salaries | 2,116,171 | 2,278,801 |
Social security costs | 208,648 | 235,375 |
Other pension costs | 294,761 | 229,599 |
2,619,580 | 2,743,775 |
The average number of employees during the year was as follows: |
31.12.23 | 31.12.22 |
Administration and management | 14 | 16 |
Production | 56 | 62 |
The average number of employees by undertakings that were proportionately consolidated during the year was 70 (2022 - 78 ) . |
PRECISION ENGINEERING PLASTICS |
(HOLDINGS) LIMITED (REGISTERED NUMBER: 05455025) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
5. | EMPLOYEES AND DIRECTORS - continued |
31.12.23 | 31.12.22 |
£ | £ |
Directors' remuneration | 102,944 | 96,920 |
Directors' pension contributions to money purchase schemes | 219,200 | 150,600 |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes | 2 | 2 |
6. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
31.12.23 | 31.12.22 |
£ | £ |
Depreciation - owned assets | 220,631 | 212,760 |
Depreciation - assets on hire purchase contracts or finance leases | - | 17,141 |
Profit on disposal of fixed assets | - | (4,250 | ) |
Auditors' remuneration | 8,850 | 8,850 |
Foreign exchange differences | 5,714 | (21,278 | ) |
7. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
31.12.23 | 31.12.22 |
£ | £ |
Current tax: |
UK corporation tax | 156,054 | 138,525 |
Deferred tax | (28,715 | ) | 16,103 |
Tax on profit | 127,339 | 154,628 |
UK corporation tax was charged at 19 %) in 2022. |
PRECISION ENGINEERING PLASTICS |
(HOLDINGS) LIMITED (REGISTERED NUMBER: 05455025) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
7. | TAXATION - continued |
RECONCILIATION OF TOTAL TAX CHARGE INCLUDED IN PROFIT AND LOSS |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
31.12.23 | 31.12.22 |
£ | £ |
Profit before tax | 744,071 | 1,005,429 |
Profit multiplied by the standard rate of corporation tax in the UK of 23.520 % (2022 - 19 %) |
175,005 |
191,032 |
Effects of: |
Expenses not deductible for tax purposes | 205 | 976 |
Change in rate of deferred taxation provision | - | 40,181 |
R & D relief claims | (55,282 | ) | (77,561 | ) |
Origination and reversal of timing differences | 7,411 | - |
Total tax charge | 127,339 | 154,628 |
8. | INDIVIDUAL STATEMENT OF COMPREHENSIVE INCOME |
As permitted by Section 408 of the Companies Act 2006, the Statement of Comprehensive Income of the parent company is not presented as part of these financial statements. |
9. | DIVIDENDS |
31.12.23 | 31.12.22 |
£ | £ |
A Ordinary shares of £1 each |
Interim | 98,800 | 88,400 |
B Ordinary shares of £1 each |
Interim | 91,200 | 81,600 |
190,000 | 170,000 |
10. | PENSION COSTS |
The group operates a defined contribution pension scheme for the benefit of some of its employees. The assets of the scheme are held separately from those of the group in an independently administered fund. The pension cost charge in the profit and loss account represents contributions paid to the fund and amounted to £294,761 (2022 - £229,599). |
PRECISION ENGINEERING PLASTICS |
(HOLDINGS) LIMITED (REGISTERED NUMBER: 05455025) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
11. | PROPERTY, PLANT AND EQUIPMENT |
Group |
Fixtures |
Freehold | Plant and | and | Motor |
property | machinery | fittings | vehicles | Totals |
£ | £ | £ | £ | £ |
COST |
At 1st January 2023 | 3,291,868 | 3,017,450 | 381,189 | 147,303 | 6,837,810 |
Additions | - | - | 10,080 | - | 10,080 |
At 31st December 2023 | 3,291,868 | 3,017,450 | 391,269 | 147,303 | 6,847,890 |
DEPRECIATION |
At 1st January 2023 | 598,443 | 2,720,040 | 364,670 | 64,334 | 3,747,487 |
Charge for year | 59,837 | 115,630 | 9,767 | 35,397 | 220,631 |
At 31st December 2023 | 658,280 | 2,835,670 | 374,437 | 99,731 | 3,968,118 |
NET BOOK VALUE |
At 31st December 2023 | 2,633,588 | 181,780 | 16,832 | 47,572 | 2,879,772 |
At 31st December 2022 | 2,693,425 | 297,410 | 16,519 | 82,969 | 3,090,323 |
Company |
Fixtures |
Freehold | and |
property | fittings | Totals |
£ | £ | £ |
COST |
At 1st January 2023 |
and 31st December 2023 |
DEPRECIATION |
At 1st January 2023 |
Charge for year |
At 31st December 2023 |
NET BOOK VALUE |
At 31st December 2023 |
At 31st December 2022 |
Included in cost of land and buildings is freehold land of £ 300,000 (2022 - £ 300,000 ) which is not depreciated. |
PRECISION ENGINEERING PLASTICS |
(HOLDINGS) LIMITED (REGISTERED NUMBER: 05455025) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
12. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1st January 2023 |
and 31st December 2023 |
NET BOOK VALUE |
At 31st December 2023 |
At 31st December 2022 |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
SUBSIDIARY |
Registered office: England & Wales |
Nature of business: |
% |
Class of shares: | holding |
31.12.23 | 31.12.22 |
£ | £ |
Aggregate capital and reserves |
Profit for the year |
13. | STOCKS |
Group |
31.12.23 | 31.12.22 |
£ | £ |
Raw materials | 279,852 | 386,943 |
Finished goods | 215,457 | 311,731 |
495,309 | 698,674 |
PRECISION ENGINEERING PLASTICS |
(HOLDINGS) LIMITED (REGISTERED NUMBER: 05455025) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
14. | DEBTORS |
Group | Company |
31.12.23 | 31.12.22 | 31.12.23 | 31.12.22 |
£ | £ | £ | £ |
Amounts falling due within one year: |
Trade debtors | 995,976 | 1,243,356 |
Other debtors | 5 | 5 |
Prepayments | 75,948 | 69,280 |
1,071,929 | 1,312,641 |
Amounts falling due after more than one | year: |
Directors' loan accounts | 1,400,000 | 1,400,000 | - | - |
Tax | 455,000 | 455,000 |
1,855,000 | 1,855,000 |
Aggregate amounts | 2,926,929 | 3,167,641 |
15. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
31.12.23 | 31.12.22 | 31.12.23 | 31.12.22 |
£ | £ | £ | £ |
Trade creditors | 286,156 | 384,118 |
Amounts owed to group undertakings | - | - |
Tax | 156,054 | 138,607 |
Social security and other taxes | 29,607 | 38,813 |
VAT | 154,464 | 165,396 | 12,898 | 24,000 |
Other creditors | 81,716 | 50,726 |
Accrued expenses | 139,431 | 176,937 |
847,428 | 954,597 |
16. | PROVISIONS FOR LIABILITIES |
Group | Company |
31.12.23 | 31.12.22 | 31.12.23 | 31.12.22 |
£ | £ | £ | £ |
Deferred tax | 113,606 | 142,321 | 95,601 | 94,877 |
PRECISION ENGINEERING PLASTICS |
(HOLDINGS) LIMITED (REGISTERED NUMBER: 05455025) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
16. | PROVISIONS FOR LIABILITIES - continued |
Group |
Deferred |
tax |
£ |
Balance at 1st January 2023 | 142,321 |
Credit to Statement of Comprehensive Income during year | (28,715 | ) |
Balance at 31st December 2023 | 113,606 |
Company |
Deferred |
tax |
£ |
Balance at 1st January 2023 |
Charge to Statement of Comprehensive Income during year |
Balance at 31st December 2023 |
17. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 31.12.23 | 31.12.22 |
value: | £ | £ |
A Ordinary | £1 | 5,792 | 5,792 |
B Ordinary | £1 | 5,344 | 5,344 |
11,136 | 11,136 |
18. | RELATED PARTY DISCLOSURES |
The group has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
Included within debtors are loans totalling £1,400,000 made to the directors, which remain unpaid at the balance sheet date. The loans are interest free and have no fixed repayment dates. |
19. | ULTIMATE CONTROLLING PARTY |
The group was controlled throughout the period by Mr P Doheny and Mr V Marino and their families, acting in concert. |