Company registration number 05465508 (England and Wales)
PENSAVE LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
PENSAVE LIMITED
COMPANY INFORMATION
Directors
T W B Smalley
Mrs R Smalley
J H Lovett
Secretary
T W B Smalley
Company number
05465508
Registered office
The Old Smithy
Detchant
Belford
Northumberland
NE70 7PF
Auditor
Greaves West & Ayre
17 Walkergate
Berwick-upon-Tweed
Northumberland
TD15 1DJ
PENSAVE LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 7
Profit and loss account
8
Group statement of comprehensive income
9
Group balance sheet
10
Company balance sheet
11
Group statement of changes in equity
12
Company statement of changes in equity
13
Group statement of cash flows
14
Notes to the financial statements
15 - 36
PENSAVE LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 1 -
The directors present the strategic report for the year ended 31 March 2024.
REVIEW OF BUSINESS
The company is a holding company and provides investment capital and loan finance to Bedmax Limited, its wholly owned subsidiary, as required. The Board of Directors meet regularly to review strategy and to monitor the trading and operating progress of the subsidiary. The Board also consider other investment opportunities as and when they arise.
Bedmax Limited’s principal activities are the manufacture and supply of wood shavings to the equine industry. From four significant production units in the United Kingdom its products are sold to customers throughout the British Isles and increasingly to customers overseas. There have not been any significant changes in this company’s principal activities during the year under review. The directors are not aware, at the date of this report, of any likely major changes in the company’s activities in the next year. The company continued to make significant investments in both plant and machinery and in research and development during the year, thus enabling it to improve product quality and increase the output and efficiency of its factories.
KEY PERFORMANCE INDICATORS
The group monitors all aspects of the costs associated to the business and these are reported regularly to the trading subsidiary Board and Key Managers.
The group regards gross profit margin percentage and net profit on sales as key financial indicators. These are assessed against budgets and the previous year.
| |
Gross Profit Percentage 26.82% | |
Net Profit before tax Percentage (continuing operations) 1.75% | |
PRINCIPAL RISKS AND UNCERTAINTIES
The cost of energy remains volatile, and thus are being monitored closely. Furthermore, the long term availability of some energy sources may be adversely impacted, albeit this is partly mitigated by long term relationships with key suppliers. In addition, the weather in the UK is a significant factor in determining the level of horse bedding sales. The group sells less bedding during periods of dry and mild weather. The state of the economy also may impact the level of sales and thus the level of gross margin, albeit this is mitigated by a broad customer base including those overseas and diverse product offering.
T W B Smalley
Secretary
23 July 2024
PENSAVE LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 2 -
The directors present their annual report and financial statements for the year ended 31 March 2024.
The financial statements consolidate those of the parent company, Pensave Limited and its wholly owned subsidiary, Bedmax Limited.
Principal activities
The principal activity of the company and group continued to be that of manufacturing wood shavings.
Results and dividends
The results for the year are set out on page 8.
Ordinary dividends were paid amounting to £200,000. The directors do not recommend payment of a further dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
T W B Smalley
Mrs R Smalley
J H Lovett
Financial instruments
Liquidity risk
The company manages its cash and borrowing requirements in order to maximise interest income and minimise interest expense, whilst ensuring the company has sufficient liquid resources to meet the operating needs of the business.
Interest rate risk
The company is exposed to cash flow interest rate risk on its bank overdraft and bank credit facilities.
Credit risk
All customers who wish to trade on credit terms are subject to credit verification procedures. Trade debtors are monitored on an ongoing basis and provision is made for doubtful debts where necessary.
Research and development
The group is heavily committed to research and development activities.
Future developments
The directors are committed to expanding the company’s production capacity over the forthcoming year.
Auditor
Greaves West & Ayre were appointed as auditor to the group and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.
PENSAVE LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 3 -
Statement of directors' responsibilities
The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and company, 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;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the ;
prepare the on the going concern basis unless it is inappropriate to presume that the group and company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.
By order of the board
T W B Smalley
Secretary
23 July 2024
PENSAVE LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF PENSAVE LIMITED
- 4 -
Opinion
We have audited the financial statements of Pensave Limited (the 'parent company') and its subsidiary (the 'group') for the year ended 31 March 2024 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the group's and the parent company's affairs as at 31 March 2024 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.
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 and parent company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and 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.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
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.
PENSAVE LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF PENSAVE LIMITED
- 5 -
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 and the directors' report. 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, 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
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 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 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.
As part of an audit in accordance with ISAs (UK), we exercise professional judgement and maintain professional scepticism throughout the audit.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
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:
PENSAVE LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF PENSAVE LIMITED
- 6 -
The extent to which the audit was considered capable of detecting irregularities, including fraud
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 group through discussions with directors and other management, and from our commercial knowledge and experience of the manufacturing sector;
we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the group, including legislation such as the Companies Act 2006, taxation legislation, employment legislation and Health & Safety regulations;
we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management, contacting the entity’s solicitor for any details of non-compliance and inspecting current year legal expenditure; and
identified laws and regulations of particular relevance 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 group’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, including any fraud associated with revenue recognition, we:
performed analytical procedures to identify any unusual or unexpected relationships;
tested journal entries to identify unusual transactions;
assessed whether judgements and assumptions made in determining the accounting estimates set out in note 2 were indicative of potential bias;
traced a sample of sales orders to customer signed delivery notes and sales invoices to nominal ledgers;
traced a sample of sales orders dispatched around the year-end from customer signed delivery notes to invoice to ensure cut-off is operating correctly;
traced a sample of sales credit notes throughout the year and around the year-end in order to confirm their commercial justification; and
evaluated the business rationale of any significant transactions that are unusual or outside the normal course of business.
PENSAVE LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF PENSAVE LIMITED
- 7 -
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;
reading the minutes of meetings of those charged with governance;
enquiring of management as to actual and potential litigation and claims against the group;
reviewed health and safety audit reports from health & safety compliance manager for all three production plants; and
reviewed accident & near miss reports from compliance manager.
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.
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.
Roseanne Bennett FCA (Senior Statutory Auditor)
For and on behalf of Greaves West & Ayre
24 July 2024
Chartered Accountants
Statutory Auditor
17 Walkergate
Berwick-upon-Tweed
Northumberland
TD15 1DJ
PENSAVE LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2024
- 8 -
Continuing
Discontinued
31 March
Continuing
Discontinued
31 March
operations
operations
2024
operations
operations
2023
Notes
£
£
£
£
£
£
Turnover
3
21,893,516
-
21,893,516
20,945,430
-
20,945,430
Cost of sales
(16,020,862)
-
(16,020,862)
(15,656,764)
-
(15,656,764)
Gross profit
5,872,654
-
5,872,654
5,288,666
-
5,288,666
Administrative expenses
(5,490,405)
-
(5,490,405)
(5,062,182)
(3,499)
(5,065,681)
Other operating income
93,299
-
93,299
49,593
43,083
92,676
Operating profit
5
475,548
-
475,548
276,077
39,584
315,661
Interest receivable and similar income
9
267
-
267
-
-
-
Interest payable and similar expenses
10
(91,924)
-
(91,924)
(56,641)
-
(56,641)
- Profit on disposal of operations
-
-
-
-
42,282
42,282
Profit before taxation
383,891
-
383,891
219,436
81,866
301,302
Tax on profit
11
(116,906)
-
(116,906)
51,353
-
51,353
Profit for the financial year
32
266,985
-
266,985
270,789
81,866
352,655
Profit for the financial year is all attributable to the owners of the parent company.
PENSAVE LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2024
- 9 -
2024
2023
£
£
Profit for the year
266,985
352,655
Other comprehensive income
-
-
Total comprehensive income for the year
266,985
352,655
Total comprehensive income for the year is all attributable to the owners of the parent company.
PENSAVE LIMITED
GROUP BALANCE SHEET
AS AT 31 MARCH 2024
31 March 2024
- 10 -
2024
2023
Notes
£
£
£
£
Fixed assets
Intangible assets
14
150,426
2,876
Tangible assets
15
4,040,187
3,250,390
4,190,613
3,253,266
Current assets
Stocks
19
1,408,896
1,245,835
Debtors
20
4,669,904
4,660,970
Cash at bank and in hand
46,535
385,836
6,125,335
6,292,641
Creditors: amounts falling due within one year
21
(5,734,761)
(4,974,508)
Net current assets
390,574
1,318,133
Total assets less current liabilities
4,581,187
4,571,399
Creditors: amounts falling due after more than one year
22
(1,139,727)
(1,203,075)
Provisions for liabilities
25
(6,151)
-
Net assets
3,435,309
3,368,324
Capital and reserves
Called up share capital
27
100,000
100,000
Share premium account
28
202,500
202,500
Non distributable reserve
29
395,800
405,200
Capital redemption reserve
30
35,000
35,000
Other reserves
31
58,298
58,298
Profit and loss reserves
32
2,643,711
2,567,326
Total equity
3,435,309
3,368,324
The financial statements were approved by the board of directors and authorised for issue on 23 July 2024 and are signed on its behalf by:
23 July 2024
J H Lovett
Director
PENSAVE LIMITED
COMPANY BALANCE SHEET
AS AT 31 MARCH 2024
31 March 2024
- 11 -
2024
2023
Notes
£
£
£
£
Fixed assets
Investments
16
826,420
826,420
Current assets
Debtors
20
379,565
448,427
Cash at bank and in hand
19,645
146,304
399,210
594,731
Creditors: amounts falling due within one year
21
(93,670)
(105,011)
Net current assets
305,540
489,720
Total assets less current liabilities
1,131,960
1,316,140
Creditors: amounts falling due after more than one year
22
(139,921)
(273,333)
Net assets
992,039
1,042,807
Capital and reserves
Called up share capital
27
100,000
100,000
Share premium account
28
202,500
202,500
Capital redemption reserve
30
35,000
35,000
Other reserves
31
58,298
58,298
Profit and loss reserves
32
596,241
647,009
Total equity
992,039
1,042,807
As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £149,232 (2023 - £431,453 profit).
The financial statements were approved by the board of directors and authorised for issue on 23 July 2024 and are signed on its behalf by:
23 July 2024
J H Lovett
Director
Company Registration No. 05465508
PENSAVE LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
- 12 -
Share capital
Share premium account
Non distributable reserve
Capital redemption reserve
Other reserves
Profit and loss reserves
Total
Notes
£
£
£
£
£
£
£
Balance at 1 April 2022
100,000
202,500
414,600
35,000
58,298
2,405,271
3,215,669
Year ended 31 March 2023:
Profit and total comprehensive income for the year
-
-
-
-
-
352,655
352,655
Dividends
13
-
-
-
-
-
(200,000)
(200,000)
Transfers
-
-
(9,400)
-
-
9,400
-
Balance at 31 March 2023
100,000
202,500
405,200
35,000
58,298
2,567,326
3,368,324
Year ended 31 March 2024:
Profit and total comprehensive income for the year
-
-
-
-
-
266,985
266,985
Dividends
13
-
-
-
-
-
(200,000)
(200,000)
Transfers
-
-
(9,400)
-
-
9,400
-
Balance at 31 March 2024
100,000
202,500
395,800
35,000
58,298
2,643,711
3,435,309
PENSAVE LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
- 13 -
Share capital
Share premium account
Capital redemption reserve
Other reserves
Profit and loss reserves
Total
Notes
£
£
£
£
£
£
Balance at 1 April 2022
100,000
202,500
35,000
58,298
415,556
811,354
Year ended 31 March 2023:
Profit and total comprehensive income for the year
-
-
-
-
431,453
431,453
Dividends
13
-
-
-
-
(200,000)
(200,000)
Balance at 31 March 2023
100,000
202,500
35,000
58,298
647,009
1,042,807
Year ended 31 March 2024:
Profit and total comprehensive income for the year
-
-
-
-
149,232
149,232
Dividends
13
-
-
-
-
(200,000)
(200,000)
Balance at 31 March 2024
100,000
202,500
35,000
58,298
596,241
992,039
PENSAVE LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2024
- 14 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
38
1,730,309
1,505,569
Interest paid
(91,924)
(56,641)
Net cash inflow from operating activities
1,638,385
1,448,928
Investing activities
Proceeds of disposal of business
-
42,282
Purchase of intangible assets
(158,781)
(1,569)
Purchase of tangible fixed assets
(1,585,366)
(936,336)
Proceeds on disposal of tangible fixed assets
8,000
37,818
Interest received
267
Net cash used in investing activities
(1,735,880)
(857,805)
Financing activities
Repayment of borrowings
(131,360)
(87,197)
Payment of finance leases obligations
89,554
147,265
Dividends paid to equity shareholders
(200,000)
(200,000)
Net cash used in financing activities
(241,806)
(139,932)
Net (decrease)/increase in cash and cash equivalents
(339,301)
451,191
Cash and cash equivalents at beginning of year
385,836
(65,355)
Cash and cash equivalents at end of year
46,535
385,836
PENSAVE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
- 15 -
1
Accounting policies
Company information
Pensave Limited (“the company”) is a private company limited by shares domiciled and incorporated in England and Wales. The registered office is The Old Smithy, Detchant, Belford, Northumberland, NE70 7PF.
The group consists of Pensave Limited and all of its subsidiaries.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 26 ‘Share based Payment’: Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
1.2
Basis of consolidation
In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.
Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.
PENSAVE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 16 -
The consolidated group financial statements consist of the financial statements of the parent company Pensave Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.
All financial statements are made up to 31 March 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
1.3
Going concern
At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.4
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
In respect of revenue and costs associated with pallets, when pallets are received from the supplier, they are initially recognised as stock at cost. When the pallet is shipped to a customer site along with the goods, the pallet is derecognised from the inventory. A pallet ledger is maintained and therefore, a pallet debtor and a sale in respect of the costs of pallets returnable, less any provision for impairment (recognised in profit & loss account immediately) is recognised at this point. At the reporting year-end date, average rate of return of pallets over a number of years is calculated to recognise the expected number of pallets to be returned which are located at customer site at the year-end. Based on the expected return of pallets, a further provision is recognised for pallets not expected to be returned at the year-end against pallet debtor. Cost of sales is debited for the provision in the profit and loss account.
1.5
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Computer Software
20% Straight line
1.6
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
PENSAVE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 17 -
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Freehold land and buildings
No depreciation on land, 2% & 10% straight line
Improvements to property
10% & 20% straight line
Plant and equipment
20% straight line
Fixtures and fittings
20% & 50% straight line
Motor vehicles
25% straight line
Computer equipment
20% straight line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.
1.7
Fixed asset investments
Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.
In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
1.8
Impairment of fixed assets
At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
PENSAVE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 18 -
1.9
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.10
Cash at bank and in hand
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.11
Financial instruments
The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
PENSAVE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 19 -
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
PENSAVE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 20 -
Derecognition of financial liabilities
Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.
1.12
Equity instruments
Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.
1.13
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.14
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.15
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
PENSAVE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 21 -
1.16
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.
1.17
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
2
Judgements and key sources of estimation uncertainty
In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
Timber Stock Measurement
Timber stock is measured at each monthly stock take to give an estimate of the volume of timber. Timber stack width, length and height are measured however this measurement includes air spaces between the logs and therefore, an industry wide conversion factor of 0.6 is used with expert knowledge from site managers and approval from the directors. This reduces the volume of timber stock by 40% at each monthly stock count.
Overhead Absorption Rate in Valuing Finished Goods
An overhead absorption rate is used to add fixed production costs to the costs of finished goods. The overhead absorption rate is based on a one year average cost of plant and machinery upkeep and depreciation costs and 20% of remaining overheads (except finance costs) per bags produced per annum.
PENSAVE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 22 -
3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Sales of goods
21,893,516
20,945,430
2024
2023
£
£
Other significant revenue
Interest income
267
-
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
16,181,267
15,813,008
Europe
545,657
670,517
Other
5,166,592
4,461,905
21,893,516
20,945,430
4
Research and development expenditure
The total cost of research and development that has been recognised as an expense through the profit and loss account is £216,983 (2023: £222,209).
5
Operating profit
2024
2023
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange differences apart from those arising on financial instruments measured at fair value through profit or loss
3,476
1,103
Research and development costs
216,983
222,209
Depreciation of owned tangible fixed assets
266,758
260,011
Depreciation of tangible fixed assets held under finance leases
528,811
475,831
Profit on disposal of tangible fixed assets
(8,000)
(2,000)
Amortisation of intangible assets
11,231
1,443
Operating lease charges
150,500
155,150
6
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
7,741
19,085
Audit of the financial statements of the company's subsidiaries
37,687
42,335
45,428
61,420
PENSAVE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
6
Auditor's remuneration
(Continued)
- 23 -
For other services
Taxation compliance services
5,013
4,560
All other non-audit services
50,596
28,175
55,609
32,735
7
Employees
The average monthly number of persons (including directors) employed by the group and company during the year was:
2024
2023
Number
Number
Plant and administration
64
62
64
62
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
2,944,691
2,689,172
Social security costs
308,783
297,953
Pension costs
202,599
159,485
3,456,073
3,146,610
8
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
461,967
481,714
Company pension contributions to defined contribution schemes
120,000
78,910
581,967
560,624
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2023 - 2).
PENSAVE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
8
Directors' remuneration
(Continued)
- 24 -
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
165,952
165,807
Company pension contributions to defined contribution schemes
60,000
40,000
9
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
267
2024
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
267
-
10
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Other interest on financial liabilities
18,640
12,803
Other finance costs:
Interest on finance leases and hire purchase contracts
73,284
43,838
Total finance costs
91,924
56,641
11
Taxation
2024
2023
£
£
Deferred tax
Origination and reversal of timing differences
116,906
(51,353)
PENSAVE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
11
Taxation
(Continued)
- 25 -
The actual charge/(credit) for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2024
2023
£
£
Profit before taxation
383,891
301,302
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
95,973
57,247
Tax effect of expenses that are not deductible in determining taxable profit
10,748
2,846
Tax effect of income not taxable in determining taxable profit
(67)
Gains not taxable
(2,000)
(380)
Tax effect of utilisation of tax losses not previously recognised
(65)
Unutilised tax losses carried forward
100,736
142,135
Group relief
(5,976)
Permanent capital allowances in excess of depreciation
(158,673)
(132,953)
Dividend income
(37,500)
(76,000)
Enhanced deduction for R&D
(46,652)
(54,886)
Deferred tax movement in year
116,906
(51,353)
Consolidation adjustments not taxable
37,500
67,967
Taxation charge/(credit)
116,906
(51,353)
12
Discontinued operations
Profit on disposal of operations
Figures in the prior year under discontinued operations relate to J H Wood Limited, a previous subsidiary of the group. J H Wood Limited was disposed of in a prior year when the company entered liquidation on 29 October 2021. The company was dissolved on 7 September 2023.
13
Dividends
2024
2023
Recognised as distributions to equity holders:
£
£
Final paid
200,000
200,000
PENSAVE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 26 -
14
Intangible fixed assets
Group
Computer software
£
Cost
At 1 April 2023
115,773
Additions - separately acquired
158,781
At 31 March 2024
274,554
Amortisation and impairment
At 1 April 2023
112,897
Amortisation charged for the year
11,231
At 31 March 2024
124,128
Carrying amount
At 31 March 2024
150,426
At 31 March 2023
2,876
The company had no intangible fixed assets at 31 March 2024 or 31 March 2023.
PENSAVE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 27 -
15
Tangible fixed assets
Group
Freehold land and buildings
Improvements to property
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
£
£
Cost or valuation
At 1 April 2023
1,097,202
796,597
10,554,312
18,435
147,988
207,863
12,822,397
Additions
234,748
1,277,406
1,371
34,424
37,417
1,585,366
Disposals
(20,042)
(20,042)
At 31 March 2024
1,097,202
1,031,345
11,831,718
19,806
182,412
225,238
14,387,721
Depreciation and impairment
At 1 April 2023
237,394
655,161
8,359,720
16,190
111,844
191,698
9,572,007
Depreciation charged in the year
13,151
65,267
679,588
755
18,287
18,521
795,569
Eliminated in respect of disposals
(20,042)
(20,042)
At 31 March 2024
250,545
720,428
9,039,308
16,945
130,131
190,177
10,347,534
Carrying amount
At 31 March 2024
846,657
310,917
2,792,410
2,861
52,281
35,061
4,040,187
At 31 March 2023
859,808
141,436
2,194,592
2,245
36,144
16,165
3,250,390
PENSAVE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
15
Tangible fixed assets
(Continued)
- 28 -
The company had no tangible fixed assets at 31 March 2024 or 31 March 2023.
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
Group
Company
2024
2023
2024
2023
£
£
£
£
Plant and equipment
1,648,121
1,514,456
Motor vehicles
6,862
Computers
10,208
21,682
Improvement to property
-
6,884
-
-
1,658,329
1,549,884
-
-
On transition to FRS102 one of the group's properties was recognised at fair value, with the excess taken to a non distributable reserve. This is used as deemed cost going forward under transitional relief.
If the property was measured using the original cost, the carrying amounts would be as follows:
Group
Company
2024
2023
2024
2023
£
£
£
£
Cost
160,000
160,000
-
-
Accumulated depreciation
(7,200)
(6,400)
-
-
Carrying value
152,800
153,600
-
-
The non-distributable reserve is disclosed in note 29.
16
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in associates
826,420
826,420
PENSAVE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
16
Fixed asset investments
(Continued)
- 29 -
Movements in fixed asset investments
Company
Shares in group undertakings
£
Cost or valuation
At 1 April 2023 and 31 March 2024
826,420
Carrying amount
At 31 March 2024
826,420
At 31 March 2023
826,420
17
Subsidiaries
Details of the company's subsidiaries at 31 March 2024 are as follows:
Name of undertaking
Registered
Nature of business
Class of
% Held
office
shares held
Direct
Indirect
Bedmax Limited
The Old Smithy Detchant Belford Northumberland NE70 7PF
Wood shavings manufacturer
Ordinary
100.00
0
18
Financial instruments
Group
Company
2024
2023
2024
2023
£
£
£
£
Carrying amount of financial assets
Debt instruments measured at amortised cost
4,174,740
3,980,261
n/a
n/a
Carrying amount of financial liabilities
Measured at amortised cost
6,791,092
6,055,689
n/a
n/a
As permitted by the reduced disclosure framework within FRS 102, the company has taken advantage of the exemption from disclosing the carrying amount of certain classes of financial instruments, denoted by 'n/a' above.
19
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Raw materials and consumables
846,179
904,894
-
-
Finished goods and goods for resale
562,717
340,941
1,408,896
1,245,835
-
-
PENSAVE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 30 -
20
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
3,997,130
3,794,964
Amounts owed by group undertakings
-
-
352,702
-
Other debtors
282,659
254,352
29,527
Prepayments and accrued income
390,115
500,899
26,863
418,900
4,669,904
4,550,215
379,565
448,427
Amounts falling due after more than one year:
Deferred tax asset (note 25)
110,755
Total debtors
4,669,904
4,660,970
379,565
448,427
21
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Obligations under finance leases
24
493,462
473,972
Other borrowings
23
43,471
41,419
43,471
41,419
Bank factoring account
2,716,459
2,585,667
Trade creditors
1,994,585
1,311,303
9,410
Amounts owed to group undertakings
60,217
Other taxation and social security
83,396
121,894
9,261
-
Other creditors
23,173
18,646
Accruals and deferred income
380,215
421,607
31,528
3,375
5,734,761
4,974,508
93,670
105,011
The bank overdraft and factoring account are secured via floating charges over the assets of the group and first charge over the property at Caunton in Nottinghamshire.
The finance leases are secured over the assets to which they relate.
The factoring account represents amounts advanced against trade debtors under an invoice discounting agreement. This is settled as the debts are received and bears charges of 2% above base for Bedmax Limited.
PENSAVE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 31 -
22
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Obligations under finance leases
24
999,806
929,742
Other borrowings
23
139,921
273,333
139,921
273,333
1,139,727
1,203,075
139,921
273,333
Amounts included above which fall due after five years are as follows:
Payable by instalments
-
48,673
-
48,673
23
Loans and overdrafts
Group
Company
2024
2023
2024
2023
£
£
£
£
Other loans
183,392
314,752
183,392
314,752
Payable within one year
43,471
41,419
43,471
41,419
Payable after one year
139,921
273,333
139,921
273,333
Other loan is an interest free unsecured term loan facility with a repayment term of 10 years.
24
Finance lease obligations
Group
Company
2024
2023
2024
2023
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
573,635
529,318
In two to five years
1,105,465
1,006,634
1,679,100
1,535,952
-
-
Less: future finance charges
(185,832)
(132,238)
1,493,268
1,403,714
Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 5 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
PENSAVE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 32 -
25
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:
Liabilities
Liabilities
Assets
Assets
2024
2023
2024
2023
Group
£
£
£
£
Accelerated capital allowances
401,439
184,121
-
-
Tax losses
(488,788)
(277,621)
-
110,755
Revaluations
93,500
93,500
-
-
6,151
-
-
110,755
The company has no deferred tax assets or liabilities.
Group
Company
2024
2024
Movements in the year:
£
£
Asset at 1 April 2023
(110,755)
-
Charge to profit or loss
116,906
-
Liability at 31 March 2024
6,151
-
The deferred tax liability set out above is expected to reverse within 5 years and relates to accelerated capital allowances that are expected to mature within the same period.
26
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
202,599
159,485
The group operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund. At the year end £3,159 (2023: £12,356) had not been paid over and is included in creditors.
27
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
of £1 each
100,000
100,000
100,000
100,000
The ordinary shares have full voting, dividend and capital distribution (including on winding up) rights attached to them; they do not confer any rights of redemption.
PENSAVE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
27
Share capital
(Continued)
- 33 -
28
Share premium account
Group
Company
2024
2023
2024
2023
£
£
£
£
At the beginning and end of the year
202,500
202,500
202,500
202,500
Share premium relates to a premium paid by the shareholders for the ordinary share capital of the company. There have been no changes in share premium in the year.
29
Non distributable reserve
Group
Company
2024
2023
2024
2023
£
£
£
£
At the beginning of the year
405,200
414,600
-
-
Transfer to retained earnings
(9,400)
(9,400)
-
-
At the end of the year
395,800
405,200
-
The non distributable reserve has arisen on the revaluation of the group's freehold land and buildings as detailed within note 15. The movement during the year relates to depreciation excess depreciation on the revalued element of freehold land and buildings over that which would have been charged under the historical cost approach.
30
Capital redemption reserve
Group
Company
2024
2023
2024
2023
£
£
£
£
At the beginning and end of the year
35,000
35,000
35,000
35,000
Capital redemption reserve has been created during the repurchase of the company's own shares.
31
Other reserves
2024
2023
Group and company
£
£
At the beginning and end of the year
58,298
58,298
Other reserves include a capital contribution of £58,298 as a result of £500,000 non-market loan obtained from a related party in 2021.
PENSAVE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 34 -
32
Profit and loss reserves
Group
Company
2024
2023
2024
2023
£
£
£
£
At the beginning of the year
2,567,326
2,405,271
647,009
415,556
Profit for the year
266,985
352,655
149,232
431,453
Dividends
(200,000)
(200,000)
(200,000)
(200,000)
Transfer from revaluation reserve
9,400
9,400
-
-
At the end of the year
2,643,711
2,567,326
596,241
647,009
33
Operating lease commitments
Operating lease payments represent rentals payable by the company for freehold land and buildings. Lease terms range from 5 to 24 years. All renewals must be agreed with the Lessor.
At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
Group
Company
2024
2023
2024
2023
£
£
£
£
Within one year
180,500
185,150
30,000
30,000
Between two and five years
562,417
622,417
26,417
56,417
In over five years
558,090
690,590
-
-
1,301,007
1,498,157
56,417
86,417
The lease relating to the company 2024 yearend total outstanding commitment of £56,417 was surrendered in April 2024.
34
Financial commitments, guarantees and contingent liabilities
The group is party to a multilateral guarantee given by the parent company, Pensave Limited and subsidiary Bedmax Limited to secure the bank overdraft and loan facilities of the Pensave group of companies.
35
Capital commitments
Amounts contracted for but not provided in the financial statements:
Group
Company
2024
2023
2024
2023
£
£
£
£
Acquisition of tangible fixed assets
204,652
394,755
-
-
PENSAVE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 35 -
36
Related party transactions
Transactions with related parties
During the year the group entered into the following transactions with related parties:
Sales
Purchases
2024
2023
2024
2023
£
£
£
£
Group
Key management personnel
3,048
2,505
-
-
Other related parties
8,000
-
51,641
41,767
Settlement of liabilities
2024
2023
£
£
Group
Other related parties
150,000
100,000
Company
Other related parties
150,000
100,000
The following amounts were outstanding at the reporting end date:
Amounts due to related parties
2024
2023
£
£
Group
Other related parties
183,392
314,752
Company
Other related parties
183,392
314,752
Amounts repayable to 'Other related parties' is a term loan which is unsecured and interest free as stated in note 23.
The company is party to the multilateral guarantee detailed in note 34. The guarantee secures the bank overdraft and loan facilities of its subsidiaries.
37
Controlling party
Mr. T.W.B. Smalley, a director of the company control the entity as a result of controlling directly 80% of the issued share capital of the ultimate parent company.
PENSAVE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 36 -
38
Cash generated from group operations
2024
2023
£
£
Profit for the year after tax
266,985
352,655
Adjustments for:
Taxation charged/(credited)
116,906
(51,353)
Finance costs
91,924
56,641
Investment income
(267)
Gain on disposal of tangible fixed assets
(8,000)
(2,000)
Gain on disposal of business
-
(42,282)
Amortisation and impairment of intangible assets
11,231
1,443
Depreciation and impairment of tangible fixed assets
795,569
735,842
Movements in working capital:
(Increase)/decrease in stocks
(163,061)
264,851
Increase in debtors
(119,689)
(962,763)
Increase in creditors
738,711
1,152,535
Cash generated from operations
1,730,309
1,505,569
39
Analysis of changes in net debt - group
1 April 2023
Cash flows
31 March 2024
£
£
£
Cash at bank and in hand
385,836
(339,301)
46,535
Borrowings excluding overdrafts
(314,752)
131,360
(183,392)
Obligations under finance leases
(1,403,714)
(89,554)
(1,493,268)
(1,332,630)
(297,495)
(1,630,125)
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