REGISTERED NUMBER: 04207727 (England and Wales) |
Group Strategic Report, |
Report of the Directors and |
Consolidated Financial Statements |
for the Year Ended 30 April 2024 |
for |
Pritchard Patent Product Company |
(2001) Limited |
REGISTERED NUMBER: 04207727 (England and Wales) |
Group Strategic Report, |
Report of the Directors and |
Consolidated Financial Statements |
for the Year Ended 30 April 2024 |
for |
Pritchard Patent Product Company |
(2001) Limited |
Pritchard Patent Product Company |
(2001) Limited (Registered number: 04207727) |
Contents of the Consolidated Financial Statements |
for the Year Ended 30 April 2024 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 3 |
Report of the Independent Auditors | 5 |
Consolidated Income Statement | 8 |
Consolidated Other Comprehensive Income | 9 |
Consolidated Balance Sheet | 10 |
Company Balance Sheet | 11 |
Consolidated Statement of Changes in Equity | 12 |
Company Statement of Changes in Equity | 13 |
Consolidated Cash Flow Statement | 14 |
Notes to the Consolidated Cash Flow Statement | 15 |
Notes to the Consolidated Financial Statements | 16 |
Pritchard Patent Product Company |
(2001) Limited |
Company Information |
for the Year Ended 30 April 2024 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Accountants |
& Statutory Auditor |
Stafford House |
Blackbrook Park Avenue |
Taunton |
Somerset |
TA1 2PX |
Pritchard Patent Product Company |
(2001) Limited (Registered number: 04207727) |
Group Strategic Report |
for the Year Ended 30 April 2024 |
The directors present their strategic report of the company and the group for the year ended 30 April 2024. |
REVIEW OF BUSINESS |
Pritchard Patent Product Company (2001) Ltd owns the entire issued share capital of Pritchard Patent Product Company Limited, Howe and Davis Limited, and Peco Publications and Publicity Limited which are principally involved in the manufacture and distribution of model railway accessories, the provision of marketing, technical and advisory services of Peco Products, the operation of a permanent exhibition and other attractions, and the publishing of model railway magazines and text books. The latter two subsidiaries ceased to trade a couple of years ago, after Pritchard Patent Product Company Ltd took over the trade of these two companies. |
While performance of the group has remained stable, profit margins have been impacted by the rising cost of living and ongoing inflationary pressures, which has tempered demand. Turnover decreased by 4% to £8,950,231 (2023: £9,367,071). Low consumer confidence has affected spending, prompting the group to work closely with customers to stimulate the market and innovate new products to expand its range. |
The group experienced higher direct costs and stable sales revenue during the year. However, administrative costs decreased due to improved efficiencies. The resulting operating profit saw a reduction of £245,319 compared to 2023. The group continues to monitor and control costs to mitigate the impact on operating margins. |
The group operates in a globally competitive marketplace for its products and publications. All mitigating actions and decisions have been taken to minimise the risks to our supply chain and customers. The events of recent years have not significantly affected demand, supply, or the group's ability to meet business needs. |
Net assets for the year (excluding pension liability) decreased by £486,939 to £12,739,796 (2023: £13,226,735). The pension liability was reduced to £NIL (2023: £59,000) following the closure of the scheme to future accruals on 30 April 2022. The directors remain confident and committed to protecting and supporting the funds accrued in the scheme. The cash position decreased by £546,844 to £3,855,793 (2023: £4,402,637), driven by investments in plant and machinery. |
The group's key financial and other performance indicators during the year were as follows: |
Unit | 2024 | 2023 |
Turnover | £ | 8,950,231 | 9,367,071 |
Gross profit margin | % | 36 | 40 |
Operating profit/(loss) | £ | (407,513 | ) | (162,195 | ) |
PRINCIPAL RISKS AND UNCERTAINTIES |
The principal risks and uncertainties that could impact the group's long-term performance continue to include the wider economic climate affecting disposable income of the target market both in the UK and overseas markets where the group trades, as well as commodity price increases. Financial risks associated with the purchase of specifically nickel silver wire is actively managed by way of forward purchasing at fixed rates in conjunction with regular pricing reviews. |
ON BEHALF OF THE BOARD: |
Pritchard Patent Product Company |
(2001) Limited (Registered number: 04207727) |
Report of the Directors |
for the Year Ended 30 April 2024 |
The directors present their report with the financial statements of the company and the group for the year ended 30 April 2024. |
DIVIDENDS |
No dividends were distributed for the year ended 30 April 2024 (2023: £99,000). |
FUTURE DEVELOPMENTS |
The directors continue to consider space for raw materials and finished stock, with a number of options being explored to ensure the best value to the business. |
Investment in specialist machinery continues to be important to improve capacity, efficiency and reliability and the directors have ensured budget is being allocated appropriately. |
A continued strategy of attending a range of exhibitions to promote the PECO brand and the hobby of model railways is important to the directors, together with producing specialist bookazines and catalogues each year to support this. Investment in continual updates to the website and social media presence is also in place. |
Cash balances are retained to enable the directors to take advantage of business opportunities as and when they arise and support the defined benefit pension scheme. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 May 2023 to the date of this report. |
FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES |
The group's activities expose it to a number of financial risks including credit risk, cashflow risk and liquidity risk. The use and nature of financial instruments are determined by the directors in the context of trading terms made available to the group by customers and suppliers, with the objective of securing the liquidity and profitability of the group. |
Price risk, credit risk, liquidity risk and cash flow risk |
The group's principal financial instruments comprise bank balances, trade creditors and trade debtors. |
Due to the nature of the financial instruments used by the group, there is a limited exposure to price risk. The group's approach to managing other risks applicable to the financial instruments concerned is shown below. |
In respect of bank balances, the liquidity risk is managed by maintaining a balance between the continuity of funding and flexibility through the availability of overdraft facilities at floating rates of interest. |
Trade debtors are managed in respect of credit and cash flow risk policies concerning the credit offered to customers and the regular monitoring of amounts outstanding for both time and limits. |
Trade creditors liquidity risk is managed by ensuring sufficient funds are available to meet amounts due. Trade creditors are paid in line with agreed credit terms and conditions, subject to correct invoicing. |
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. |
Pritchard Patent Product Company |
(2001) Limited (Registered number: 04207727) |
Report of the Directors |
for the Year Ended 30 April 2024 |
STATEMENT OF DIRECTORS' RESPONSIBILITIES - continued |
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. |
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 or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
ON BEHALF OF THE BOARD: |
Report of the Independent Auditors to the Members of |
Pritchard Patent Product Company |
(2001) Limited |
Opinion |
We have audited the financial statements of Pritchard Patent Product Company (2001) Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 April 2024 which comprise the Consolidated Income Statement, Consolidated Other 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 30 April 2024 and of the group's loss 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. |
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. |
Report of the Independent Auditors to the Members of |
Pritchard Patent Product Company |
(2001) Limited |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on pages three and four, 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: |
Identifying and assessing potential risks of material misstatement due to irregularities |
We considered the following when identifying and assessing risks of material misstatement due to irregularities, including fraud and non-compliance with laws and regulations: |
- the legal and regulatory framework in which the company and group operate |
- the nature of the sector in which the company and group operate |
- the control environment and controls established to mitigate such risks |
- the results of our enquiries of management about their identification and assessment of risks of irregularities |
- discussions with the audit engagement team about where fraud might occur |
- the incentives for fraud. |
Laws and regulations which are considered to be significant to the company and group include those relating to the requirements of financial reporting framework FRS102, the Companies Act 2006, UK tax legislation, pension regulation, employment law and health and safety. In addition we consider other laws and regulation which may not directly impact the financial statements but may impact on the operation of the company and group. |
As a result of these procedures we concluded, in accordance with International Auditing Standards, that a risk in relation to the potential for management override of controls existed. |
Audit responses to risks identified |
We undertook audit procedures to respond to the risks identified, and designed our audit testing to respond to these risks. The additional procedures we undertook included the following: |
- gaining an understanding of the company and group's procedures for ensuring compliance with laws and regulations |
- testing the appropriateness of journal entries and other adjustments |
- considering whether accounting estimates were indicative of potential bias |
- considering whether any transactions arose outside the normal course of business |
- making enquiries of management |
- corroborating our enquiries through review of Board Minutes and correspondence. |
We also communicated relevant laws and regulations and potential fraud risks to all engagement team members and remained alert to any indicators of fraud or non-compliance with laws and regulations throughout the audit. |
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 |
Pritchard Patent Product Company |
(2001) 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 Auditor |
Stafford House |
Blackbrook Park Avenue |
Taunton |
Somerset |
TA1 2PX |
Pritchard Patent Product Company |
(2001) Limited (Registered number: 04207727) |
Consolidated Income Statement |
for the Year Ended 30 April 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
TURNOVER | 3 | 8,950,231 | 9,367,071 |
Cost of sales | 5,701,703 | 5,597,858 |
GROSS PROFIT | 3,248,528 | 3,769,213 |
Distribution costs | 622,812 | 543,132 |
Administrative expenses | 3,108,370 | 3,477,800 |
3,731,182 | 4,020,932 |
(482,654 | ) | (251,719 | ) |
Other operating income | 4 | 75,140 | 89,524 |
OPERATING LOSS | 6 | (407,514 | ) | (162,195 | ) |
Interest receivable and similar income | 8 | 34,625 | 2,975 |
(372,889 | ) | (159,220 | ) |
Gain/loss on revaluation of investment property |
52,950 |
- |
(319,939 | ) | (159,220 | ) |
Interest payable and similar expenses | 9 | - | 138,000 |
LOSS BEFORE TAXATION | (319,939 | ) | (297,220 | ) |
Tax on loss | 10 | (180,000 | ) | (14,908 | ) |
LOSS FOR THE FINANCIAL YEAR | ( |
) | ( |
) |
Loss attributable to: |
Owners of the parent | (139,939 | ) | (282,312 | ) |
Pritchard Patent Product Company |
(2001) Limited (Registered number: 04207727) |
Consolidated Other Comprehensive Income |
for the Year Ended 30 April 2024 |
2024 | 2023 |
Notes | £ | £ |
LOSS FOR THE YEAR | (139,939 | ) | (282,312 | ) |
OTHER COMPREHENSIVE INCOME |
Remeasurement gain on defined |
benefit pension scheme | (108,000 | ) | 4,151,000 |
Income tax relating to other comprehensive income |
(14,750 |
) |
(1,055,250 |
) |
OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX |
(122,750 |
) |
3,095,750 |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
(262,689 |
) |
2,813,438 |
Total comprehensive income attributable to: |
Owners of the parent | (262,689 | ) | 2,813,438 |
Pritchard Patent Product Company |
(2001) Limited (Registered number: 04207727) |
Consolidated Balance Sheet |
30 April 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 13 | 26,758 | 17,924 |
Tangible assets | 14 | 5,065,240 | 5,069,187 |
Investments | 15 | 100 | 100 |
Investment property | 16 | 485,000 | 432,050 |
5,577,098 | 5,519,261 |
CURRENT ASSETS |
Stocks | 17 | 2,908,709 | 3,122,284 |
Debtors | 18 | 2,048,609 | 1,863,638 |
Cash at bank and in hand | 3,855,793 | 4,402,637 |
8,813,111 | 9,388,559 |
CREDITORS |
Amounts falling due within one year | 19 | 1,066,163 | 1,082,085 |
NET CURRENT ASSETS | 7,746,948 | 8,306,474 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
13,324,046 |
13,825,735 |
PROVISIONS FOR LIABILITIES | 21 | (419,000 | ) | (599,000 | ) |
PENSION LIABILITY | 24 | - | (59,000 | ) |
NET ASSETS | 12,905,046 | 13,167,735 |
CAPITAL AND RESERVES |
Called up share capital | 22 | 19,800 | 19,800 |
Capital redemption reserve | 23 | 63,431 | 63,431 |
Other reserves | 23 | (186,170 | ) | (186,170 | ) |
Retained earnings | 23 | 13,007,985 | 13,270,674 |
SHAREHOLDERS' FUNDS | 12,905,046 | 13,167,735 |
The financial statements were approved by the Board of Directors and authorised for issue on 5 December 2024 and were signed on its behalf by: |
J H B Robarts-Arnold - Director |
Pritchard Patent Product Company |
(2001) Limited (Registered number: 04207727) |
Company Balance Sheet |
30 April 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 13 |
Tangible assets | 14 |
Investments | 15 |
Investment property | 16 |
CURRENT ASSETS |
Debtors | 18 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CAPITAL AND RESERVES |
Called up share capital | 22 |
Capital redemption reserve |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | - | 99,000 |
The financial statements were approved by the Board of Directors and authorised for issue on |
Pritchard Patent Product Company |
(2001) Limited (Registered number: 04207727) |
Consolidated Statement of Changes in Equity |
for the Year Ended 30 April 2024 |
Called up | Capital |
share | Retained | redemption | Other | Total |
capital | earnings | reserve | reserves | equity |
£ | £ | £ | £ | £ |
Balance at 1 May 2022 | 19,800 | 10,556,236 | 63,431 | (186,170 | ) | 10,453,297 |
Changes in equity |
Dividends | - | (99,000 | ) | - | - | (99,000 | ) |
Total comprehensive income | - | 2,813,438 | - | - | 2,813,438 |
Balance at 30 April 2023 | 19,800 | 13,270,674 | 63,431 | (186,170 | ) | 13,167,735 |
Changes in equity |
Total comprehensive income | - | (262,689 | ) | - | - | (262,689 | ) |
Balance at 30 April 2024 | 19,800 | 13,007,985 | 63,431 | (186,170 | ) | 12,905,046 |
Pritchard Patent Product Company |
(2001) Limited (Registered number: 04207727) |
Company Statement of Changes in Equity |
for the Year Ended 30 April 2024 |
Called up | Capital |
share | Retained | redemption | Total |
capital | earnings | reserve | equity |
£ | £ | £ | £ |
Balance at 1 May 2022 |
Changes in equity |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - |
Balance at 30 April 2023 |
Changes in equity |
Balance at 30 April 2024 |
Pritchard Patent Product Company |
(2001) Limited (Registered number: 04207727) |
Consolidated Cash Flow Statement |
for the Year Ended 30 April 2024 |
2024 | 2023 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 31,820 | (389,023 | ) |
Tax paid | (232,875 | ) | 237,626 |
Net cash from operating activities | (201,055 | ) | (151,397 | ) |
Cash flows from investing activities |
Purchase of intangible fixed assets | (27,554 | ) | (375 | ) |
Purchase of tangible fixed assets | (578,964 | ) | (1,286,459 | ) |
Sale of intangible fixed assets | 7,150 | - |
Sale of tangible fixed assets | 15,771 | 1,300 |
Interest received | 32,625 | 2,975 |
Net cash from investing activities | (550,972 | ) | (1,282,559 | ) |
Cash flows from financing activities |
Amount introduced by directors | 205,183 | (2,622 | ) |
Amount withdrawn by directors | - | (890,500 | ) |
Equity dividends paid | - | (99,000 | ) |
Net cash from financing activities | 205,183 | (992,122 | ) |
Decrease in cash and cash equivalents | (546,844 | ) | (2,426,078 | ) |
Cash and cash equivalents at beginning of year |
2 |
4,402,637 |
6,828,715 |
Cash and cash equivalents at end of year | 2 | 3,855,793 | 4,402,637 |
Pritchard Patent Product Company |
(2001) Limited (Registered number: 04207727) |
Notes to the Consolidated Cash Flow Statement |
for the Year Ended 30 April 2024 |
1. | RECONCILIATION OF LOSS BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2024 | 2023 |
£ | £ |
Loss before taxation | (319,939 | ) | (297,220 | ) |
Depreciation charges | 593,110 | 559,236 |
Profit on disposal of fixed assets | (14,400 | ) | (1,108 | ) |
Gain on revaluation of fixed assets | (52,950 | ) | - |
Pension scheme movement | (165,000 | ) | (207,000 | ) |
Impairment of fixed assets | - | 251,978 |
Finance costs | - | 138,000 |
Finance income | (34,625 | ) | (2,975 | ) |
6,196 | 440,911 |
Decrease/(increase) in stocks | 213,575 | (523,676 | ) |
Increase in trade and other debtors | (368,111 | ) | (123,293 | ) |
Increase/(decrease) in trade and other creditors | 180,160 | (182,965 | ) |
Cash generated from operations | 31,820 | (389,023 | ) |
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 30 April 2024 |
30.4.24 | 1.5.23 |
£ | £ |
Cash and cash equivalents | 3,855,793 | 4,402,637 |
Year ended 30 April 2023 |
30.4.23 | 1.5.22 |
£ | £ |
Cash and cash equivalents | 4,402,637 | 6,828,715 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1.5.23 | Cash flow | At 30.4.24 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 4,402,637 | (546,844 | ) | 3,855,793 |
4,402,637 | (546,844 | ) | 3,855,793 |
Total | 4,402,637 | (546,844 | ) | 3,855,793 |
Pritchard Patent Product Company |
(2001) Limited (Registered number: 04207727) |
Notes to the Consolidated Financial Statements |
for the Year Ended 30 April 2024 |
1. | STATUTORY INFORMATION |
Pritchard Patent Product Company (2001) Limited is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
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. The financial statements have been prepared under the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value. |
Going Concern |
The directors are satisfied, having made all necessary enquiries, that the going concern basis of preparation remains appropriate. In making this assessment the directors have given particular consideration to the impact upon the group of the availability and pricing of raw materials. Following the defined benefit pension scheme being closed to future accruals, the impact of the liability on the group's balance sheet is now minimal. |
The rising cost of living and low consumer confidence has had an impact on customer spend, leading to a decrease in turnover following the inflated demand during the Coronavirus pandemic. The group continues to explore new ways to grow market share and explore opportunities for future growth. |
In light of the level of pre and post year trading and the significant net current assets, including cash reserves across the group, the lack of any external debt, and having considered a period of no less than 12 months from the date of approval of these financial statements, the directors are satisfied that the going concern basis of preparation remains appropriate. |
Basis of consolidation |
The group financial statements consolidate the financial statements of the company and its subsidiary undertakings drawn up to 30 April 2024. The group was formed as a result of a share for share exchange with its subsidiaries on 1 May 2000. As this constitutes a group restructure under FRS 102 the financial statements have been prepared using merger accounting principles as if the group had been in existence since all members of the group were incorporated. |
As a consolidated group profit and loss is published, a separate profit and loss account for the parent company is omitted from the group financial statements by virtue of section 408 of the Companies Act 2006. |
Pritchard Patent Product Company |
(2001) Limited (Registered number: 04207727) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 April 2024 |
2. | ACCOUNTING POLICIES - continued |
Critical accounting judgements and key sources of estimation uncertainty |
In the application of the group's accounting policies management is required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. |
The key sources of estimation uncertainty that have a significant effect on the amounts recognised in the financial statements are set out below: |
Defined benefit pension scheme assumptions |
In accordance with FRS 102, as the group's representative company, the company is required to account for the group multi-employer defined benefit pension scheme. The value of the Group's defined benefit pension scheme is determined using actuarial valuations. The actuarial valuation involves making assumptions about discount rates, mortality rates and future pension increases and an external actuary is used by management in determining the underlying assumptions and calculations. Due to the complexity of the valuation, the underlying assumptions and the long term nature of the scheme, management consider the interest rates of corporate bonds in the sterling with at least AA rating, with extrapolated maturities corresponding to the expected duration of the defined benefit. The mortality rates are based on publicly available mortality tables for the United Kingdom. Future pension increases are based on expected future inflation rates. The carrying amount at the year end is £NIL (2023 £(59,000)). Further details are included in note 24. |
Property, plant and equipment |
Property, plant and equipment also represent a significant proportion of the asset base of the group. Therefore, the estimates and assumptions made to determine their carrying value and related depreciation are critical to the company's financial position and performance. |
Estimation of useful life |
The charge in respect of periodic depreciation is derived after determining an estimate of an asset's expected useful life and the expected residual value at the end of its life. Increasing an asset's expected life or its residual value would result in a reduced depreciation charge in the income statement. |
The useful lives and residual values of assets are determined by management at the time the asset is acquired and reviewed annually for appropriateness. The lives are based on historical experience with similar assets. |
Historically, changes in useful lives and residual values have not resulted in material changes to the group's depreciation charge. Further details are included in note 14. |
Pritchard Patent Product Company |
(2001) Limited (Registered number: 04207727) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 April 2024 |
2. | ACCOUNTING POLICIES - continued |
Turnover |
Goods |
Turnover relating to goods represents the value of goods sold during the year, exclusive of Value Added Tax. Turnover relating to goods is recognised when the goods are dispatched to the customer. |
Magazines, books and advertising |
Turnover relating to magazines and books represents amounts invoiced for magazines, bound volume and advertising sales during the year, exclusive of Value Added Tax where applicable. The turnover is recognised on publication with payments in advance being included within accruals and deferred income. |
Exhibitions and attractions |
Turnover relating to exhibitions and attractions represents amounts taken during the year, exclusive of Value Added Tax where applicable. The turnover is recognised at the point of entry. Also included in exhibitions and attractions is turnover from the holiday let property which is recognised according to the date of rental with any payments in advance being included within accruals and deferred income. |
Goodwill |
Positive purchased goodwill arising on acquisitions is capitalised and classified as an asset on the balance sheet. Amortisation is charged on a straight line basis over its useful economic life up to a maximum of 10 years and is recognised in cost of sales in the profit and loss account. The 10 year maximum is presumed to be the maximum useful life of purchased goodwill because it is difficult to make projections beyond this period. Goodwill is reviewed for impairment at the end of the first full financial year following acquisition and subsequently as and when necessary if circumstances emerge that indicate that the carrying value may not be recoverable. |
Intangible assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
Website and software costs are being amortised evenly over their estimated useful life of five years. |
Website and software costs under construction are not amortised until the asset is available for use. |
Tangible fixed assets |
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life. |
Freehold buildings | 10 - 50 years straight line |
Freehold land | No depreciation charged |
Plant and machinery | 2 - 30 years straight line |
Fixture and fittings | 3 - 10 years straight line |
Motor vehicles | 2- 4 years straight line |
Assets under construction | No depreciation charged |
Once complete, assets under construction are transferred to the relevant asset class and depreciated beginning the period after completion. |
Fixed assets are initially measured at cost, and subsequently at cost less accumulated depreciation, and impairment. |
Investment property |
Investment property is carried at fair value, derived from the current market prices for comparable real estate determined annually by the directors. Changes in fair value are recognised in profit and loss. |
Pritchard Patent Product Company |
(2001) Limited (Registered number: 04207727) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 April 2024 |
2. | ACCOUNTING POLICIES - continued |
Stocks |
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. Cost includes all costs incurred in bringing each product to its present location and condition, as follows; |
Raw materials - purchase cost on a 'first in first out' basis; |
Work in progress - direct costs plus attributable overheads based on normal level of activity; |
Finished goods - cost of direct materials and labour plus attributable overheads based on a normal level of activity. |
Net realisable value is based on estimated selling price less any further costs expected to be incurred to completion and disposal. |
Financial instruments |
Classification |
The company holds the following financial instruments: |
- Short term inter-company, trade and other debtors and creditors; |
- Cash and bank balances. |
All financial instruments are classified as basic under FRS 102. |
Recognition and measurement |
The company has chosen to apply the recognition and measurement principles in FRS 102. |
Financial instruments are recognised when the company becomes party to the contractual provisions of the instrument and derecognised when in the case of assets, the contractual rights to cash flows from the assets expire or substantially all the risks and rewards of ownership are transferred to another party, or in the case of liabilities, when the company's obligations are discharged, expire or are cancelled. |
Such instruments are initially measured at transaction price, including transaction costs, and are subsequently carried at the undiscounted amount of the cash or other consideration expected to be paid or received, after taking account of impairment adjustments. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, 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. |
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. |
Pritchard Patent Product Company |
(2001) Limited (Registered number: 04207727) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 April 2024 |
2. | ACCOUNTING POLICIES - continued |
Hire purchase and leasing commitments |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
Pension costs and other post-retirement benefits |
Defined benefit pension obligation |
The company is part of a multi-employer defined benefit pension scheme and is the representative company within the group. In accordance with FRS 102 Section 28 'Employee Benefits', the service cost of the pension provision relating to the period, together with the cost of any benefits relating to past service, is charged to the profit and loss account. Net finance costs are based on the net liability of the scheme times by the discount rate and these are included in the profit and loss account under 'interest payable and similar charges'. |
The difference between the market value of the assets of the scheme and the present value of the accrued pension liabilities is shown as an asset or liability on the balance sheet, the relating deferred tax is shown separately in the balance sheet. Any difference between the expected return on assets and that actually achieved is recognised in other comprehensive income along with the relating deferred tax charge/credit. |
Defined contribution pension obligation |
The company operates a defined contribution pension scheme for employees. The assets of the scheme are held separately from those of the company. The annual contributions payable are charged to the profit and loss account. |
Impairment of assets |
At each reporting date fixed assets are reviewed to determine whether there is any indication that those assets have suffered an impairment loss. If there is an indication of possible impairment, the recoverable amount of any affected asset is estimated and compared with its carrying amount. If estimated recoverable amount is lower, the carrying amount is reduced to its estimated recoverable amount, and an impairment loss is recognised immediately in the statement of comprehensive income. |
3. | TURNOVER |
The turnover and loss before taxation are attributable to the one principal activity of the group. |
An analysis of turnover by geographical market is given below: |
2024 | 2023 |
£ | £ |
United Kingdom | 6,838,621 | 7,058,565 |
Europe | 987,220 | 1,022,397 |
Rest of World | 1,124,390 | 1,286,109 |
8,950,231 | 9,367,071 |
4. | OTHER OPERATING INCOME |
2024 | 2023 |
£ | £ |
Rents received | 47,052 | 38,795 |
Sundry receipts | 28,088 | 50,729 |
75,140 | 89,524 |
5. | EMPLOYEES AND DIRECTORS |
2024 | 2023 |
£ | £ |
Wages and salaries | 4,376,126 | 4,637,657 |
Social security costs | 355,473 | 403,399 |
Other pension costs | 443,482 | 416,583 |
5,175,081 | 5,457,639 |
Pritchard Patent Product Company |
(2001) Limited (Registered number: 04207727) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 April 2024 |
5. | EMPLOYEES AND DIRECTORS - continued |
The average number of employees during the year was as follows: |
2024 | 2023 |
Production | 103 | 109 |
Administration and support | 33 | 34 |
Sales | 13 | 13 |
Other departments | 25 | 24 |
2024 | 2023 |
£ | £ |
Directors' remuneration | 108,602 | 134,176 |
The number of directors to whom retirement benefits were accruing was as follows: |
Defined benefit schemes | 3 | 3 |
6. | OPERATING LOSS |
The operating loss is stated after charging/(crediting): |
2024 | 2023 |
£ | £ |
Other operating leases | 26,689 | 30,313 |
Depreciation - owned assets | 581,541 | 536,734 |
Profit on disposal of fixed assets | (14,400 | ) | (1,108 | ) |
Goodwill amortisation | 1,003 | 6,689 |
Website and software costs amortisation | 10,567 | 15,812 |
Foreign exchange differences | (43,984 | ) | (53,832 | ) |
Impairment of fixed assets | - | 251,978 |
7. | AUDITORS' REMUNERATION |
2024 | 2023 |
£ | £ |
Previous auditor - audit of the Company's subsidiaries | - | 4,000 |
Previous auditor - non audit work | - | 3,450 |
Audit of parent Company and the Group's consolidated accounts | 1,155 | 1,075 |
Audit of the Company's subsidiaries | 14,420 | 29,387 |
Non audit work | 9,227 | 16,645 |
24,802 | 54,557 |
8. | INTEREST RECEIVABLE AND SIMILAR INCOME |
2024 | 2023 |
£ | £ |
Deposit account interest | 32,625 | 353 |
Other interest | - | 2,622 |
DB pension scheme interest | 2,000 | - |
34,625 | 2,975 |
Pritchard Patent Product Company |
(2001) Limited (Registered number: 04207727) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 April 2024 |
9. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2024 | 2023 |
£ | £ |
Interest on defined benefit pension scheme | - | 138,000 |
10. | TAXATION |
Analysis of the tax credit |
The tax credit on the loss for the year was as follows: |
2024 | 2023 |
£ | £ |
Current tax: |
UK corporation tax | - | (43,908 | ) |
Deferred tax | (180,000 | ) | 29,000 |
Tax on loss | (180,000 | ) | (14,908 | ) |
Reconciliation of total tax credit 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: |
2024 | 2023 |
£ | £ |
Loss before tax | (319,939 | ) | (297,220 | ) |
Loss multiplied by the standard rate of corporation tax in the UK of 25 % (2023 - 19 %) |
(79,985 |
) |
(56,472 |
) |
Effects of: |
Expenses not deductible for tax purposes | (1,050 | ) | 9,319 |
Income not taxable for tax purposes | (3,599 | ) | - |
Capital allowances in excess of depreciation | (15,282 | ) | - |
Adjustments to tax charge in respect of previous periods | (26,779 | ) | - |
charge in respect of previous |
Change in rate | - | 32,245 |
Gain on property revaluation | (13,238 | ) | - |
Movement in deferred tax on accelerated capital allowances | (40,067 | ) | - |
Total tax credit | (180,000 | ) | (14,908 | ) |
Tax effects relating to effects of other comprehensive income |
2024 |
Gross | Tax | Net |
£ | £ | £ |
Remeasurement gain on defined |
benefit pension scheme | (108,000 | ) | (14,750 | ) | (122,750 | ) |
(108,000 | ) | (14,750 | ) | (122,750 | ) |
2023 |
Gross | Tax | Net |
£ | £ | £ |
Remeasurement gain on defined |
benefit pension scheme | 4,151,000 | (1,055,250 | ) | 3,095,750 |
4,151,000 | (1,055,250 | ) | 3,095,750 |
Pritchard Patent Product Company |
(2001) Limited (Registered number: 04207727) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 April 2024 |
11. | INDIVIDUAL INCOME STATEMENT |
As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
12. | DIVIDENDS |
2024 | 2023 |
£ | £ |
Ordinary shares of £1 each |
Interim | - | 99,000 |
13. | INTANGIBLE FIXED ASSETS |
Group |
Website | Website |
and | assets |
software | under |
Goodwill | costs | construction | Totals |
£ | £ | £ | £ |
COST |
At 1 May 2023 | 248,270 | 115,750 | 375 | 364,395 |
Additions | - | 20,404 | 7,150 | 27,554 |
Disposals | - | - | (7,150 | ) | (7,150 | ) |
At 30 April 2024 | 248,270 | 136,154 | 375 | 384,799 |
AMORTISATION |
At 1 May 2023 | 247,020 | 99,451 | - | 346,471 |
Amortisation for year | 1,003 | 10,567 | - | 11,570 |
At 30 April 2024 | 248,023 | 110,018 | - | 358,041 |
NET BOOK VALUE |
At 30 April 2024 | 247 | 26,136 | 375 | 26,758 |
At 30 April 2023 | 1,250 | 16,299 | 375 | 17,924 |
Pritchard Patent Product Company |
(2001) Limited (Registered number: 04207727) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 April 2024 |
14. | TANGIBLE FIXED ASSETS |
Group |
Fixtures |
Freehold | Plant and | and |
property | machinery | fittings |
£ | £ | £ |
COST |
At 1 May 2023 | 2,878,804 | 10,222,627 | 1,968,477 |
Additions | - | 46,546 | 28,361 |
Disposals | - | (76,261 | ) | (1,370 | ) |
Reclassification/transfer | - | 744,962 | 5,026 |
At 30 April 2024 | 2,878,804 | 10,937,874 | 2,000,494 |
DEPRECIATION |
At 1 May 2023 | 1,088,237 | 8,057,546 | 1,422,935 |
Charge for year | 55,523 | 403,417 | 108,665 |
Eliminated on disposal | - | (76,261 | ) | - |
At 30 April 2024 | 1,143,760 | 8,384,702 | 1,531,600 |
NET BOOK VALUE |
At 30 April 2024 | 1,735,044 | 2,553,172 | 468,894 |
At 30 April 2023 | 1,790,567 | 2,165,081 | 545,542 |
Motor | Computer |
vehicles | equipment | Totals |
£ | £ | £ |
COST |
At 1 May 2023 | 158,673 | 564,661 | 15,793,242 |
Additions | 47,992 | 456,065 | 578,964 |
Disposals | (36,870 | ) | - | (114,501 | ) |
Reclassification/transfer | - | (749,988 | ) | - |
At 30 April 2024 | 169,795 | 270,738 | 16,257,705 |
DEPRECIATION |
At 1 May 2023 | 155,337 | - | 10,724,055 |
Charge for year | 13,936 | - | 581,541 |
Eliminated on disposal | (36,870 | ) | - | (113,131 | ) |
At 30 April 2024 | 132,403 | - | 11,192,465 |
NET BOOK VALUE |
At 30 April 2024 | 37,392 | 270,738 | 5,065,240 |
At 30 April 2023 | 3,336 | 564,661 | 5,069,187 |
15. | FIXED ASSET INVESTMENTS |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Shares in group undertakings | - | - |
Other investments not loans | 100 | 100 |
100 | 100 |
Pritchard Patent Product Company |
(2001) Limited (Registered number: 04207727) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 April 2024 |
15. | FIXED ASSET INVESTMENTS - continued |
Additional information is as follows: |
Investments (neither listed nor unlisted) were as follows: |
2024 | 2023 |
£ | £ |
Other investments | 100 | 100 |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1 May 2023 |
and 30 April 2024 |
NET BOOK VALUE |
At 30 April 2024 |
At 30 April 2023 |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiaries |
Registered office: Underleys Beer, Seaton, Devon, EX12 3NA |
Nature of business: |
% |
Class of shares: | holding |
2024 | 2023 |
£ | £ |
Aggregate capital and reserves |
Loss for the year | ( |
) | ( |
) |
Registered office: Underleys, Beer, Seaton, Devon, EX12 3NA |
Nature of business: |
% |
Class of shares: | holding |
Registered office: Underleys, Beer, Seaton, Devon, EX12 3NA |
Nature of business: |
% |
Class of shares: | holding |
Registered office: Underleys, Beer, Seaton, Devon, EX12 3NA |
Nature of business: |
% |
Class of shares: | holding |
2024 | 2023 |
£ | £ |
Aggregate capital and reserves |
Pritchard Patent Product Company |
(2001) Limited (Registered number: 04207727) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 April 2024 |
15. | FIXED ASSET INVESTMENTS - continued |
Registered office: Underleys, Beer, Seaton, Devon, EX12 3NA |
Nature of business: |
% |
Class of shares: | holding |
2024 | 2023 |
£ | £ |
Aggregate capital and reserves |
16. | INVESTMENT PROPERTY |
Group |
Total |
£ |
FAIR VALUE |
At 1 May 2023 | 432,050 |
Revaluations | 52,950 |
At 30 April 2024 | 485,000 |
NET BOOK VALUE |
At 30 April 2024 | 485,000 |
At 30 April 2023 | 432,050 |
The investment property was marketed for sale post year-end and external valuations were obtained as a result. The property was deemed to be worth £485,000 and the valuation disclosed in the accounts has been updated to reflect this value accordingly. |
Fair value at 30 April 2024 is represented by: |
£ |
Valuation in 2024 | 52,950 |
Cost | 432,050 |
485,000 |
17. | STOCKS |
Group |
2024 | 2023 |
£ | £ |
Raw materials | 1,833,399 | 1,970,469 |
Work-in-progress | 137,341 | 137,066 |
Finished goods | 937,969 | 1,014,749 |
2,908,709 | 3,122,284 |
Impairment of stocks |
The amount of impairment loss included in profit or loss is £431,634 (2023 - £109,772) |
Pritchard Patent Product Company |
(2001) Limited (Registered number: 04207727) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 April 2024 |
18. | DEBTORS |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Amounts falling due within one year: |
Trade debtors | 821,778 | 490,244 |
Amounts owed by group undertakings | 15,600 | 15,600 |
Other debtors | 316,722 | 326,196 |
Directors' current accounts | - | 200,000 | - | - |
Tax | 36,793 | - |
Prepayments and accrued income | 169,107 | 120,754 |
1,360,000 | 1,152,794 |
Amounts falling due after more than one | year: |
Other debtors | 670 | 2,972 |
Directors' loan accounts | 687,939 | 693,122 | - | - |
Tax | - | 14,750 |
688,609 | 710,844 |
Aggregate amounts | 2,048,609 | 1,863,638 |
19. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group |
2024 | 2023 |
£ | £ |
Trade creditors | 154,940 | 72,919 |
Amounts owed to group undertakings | 15,600 | 15,600 |
Tax | - | 196,082 |
Social security and other taxes | 37,714 | 41,116 |
VAT | 161,935 | 152,988 |
Other creditors | 16,646 | 12,785 |
Accrued expenses | 679,328 | 590,595 |
1,066,163 | 1,082,085 |
20. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Non-cancellable operating | leases |
2024 | 2023 |
£ | £ |
Within one year | 27,359 | 33,773 |
Between one and five years | 66,914 | 29,110 |
94,273 | 62,883 |
The amount of non-cancellable operating lease payments recognised as an expense during the year was £40,859 (2023 - £38,717). |
Pritchard Patent Product Company |
(2001) Limited (Registered number: 04207727) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 April 2024 |
21. | PROVISIONS FOR LIABILITIES |
Group |
2024 | 2023 |
£ | £ |
Accelerated capital allowances | 713,935 | 754,000 |
Brought forward losses | (155,000 | ) | - |
Losses arising during the year | (139,935 | ) | (155,000 | ) |
419,000 | 599,000 |
Group |
Deferred |
tax |
£ |
Balance at 1 May 2023 | 599,000 |
Credit to income statement during the year | (180,000) |
Balance at 30 April 2024 | 419,000 |
22. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2024 | 2023 |
value: | £ | £ |
Ordinary | £1 | 19,800 | 19,800 |
Rights, preferences and restrictions |
Ordinary shares have the following rights, preferences and restrictions: |
The ordinary shares each have one voting right and rank equally in the declaration of dividends and the winding up of the company. |
23. | RESERVES |
Group |
Capital |
Retained | redemption | Other |
earnings | reserve | reserves | Totals |
£ | £ | £ | £ |
At 1 May 2023 | 13,270,674 | 63,431 | (186,170 | ) | 13,147,935 |
Deficit for the year | (139,939 | ) | (139,939 | ) |
Movement in pension scheme |
through other comprehensive |
income | (122,750 | ) | - | - | (122,750 | ) |
At 30 April 2024 | 13,007,985 | 63,431 | (186,170 | ) | 12,885,246 |
Pritchard Patent Product Company |
(2001) Limited (Registered number: 04207727) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 April 2024 |
24. | EMPLOYEE BENEFIT OBLIGATIONS |
Defined contribution pension scheme |
The group operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the group to the scheme and amounted to £473,160 (2023 - £482,794). |
Contributions totalling £57,393 (2023 - £60,796) were payable to the scheme at the end of the year and are included in creditors. |
Defined benefit pension scheme |
Pritchard Patent Product Company Limited Pension Fund |
The group is the representative company of a group multi employer final salary defined benefit pension scheme in the UK called the Pritchard Patent Product Company Limited Pension Fund ("the Scheme"). |
During the year the group contributed £5,000 each month to the Scheme (2023 - £15,000 each month to the Scheme). |
Contributions paid into the pension scheme during the year totalled £180,000 (2023 - £216,000) for the group. The contributions made by the group into the scheme were £165,000 (2023 - £207,000). |
The date of the most comprehensive actuarial valuation was 1 May 2023. This has been updated to 30 April 2024 by a qualified independent actuary. |
The income relating to the defined benefit scheme for the year recognised in the group profit and loss was £2,000 (2023 - £138,000 expense). |
In October 2018 the High Court ruled that UK pension schemes are required to equalise benefits for the effect of Guaranteed Minimum Pensions (GMP). The scheme provides GMP for some members in respect of service between 17 May 1990 and 5 April 1997 and the trustees and employer will therefore need to take appropriate professional and legal advice, agree an approach, and eventually move to equalise member benefits. It may take many years to fully implement GMP equalisation. The funding valuation at 1 May 2020 included an allowance for the estimated effect on scheme benefits of the judgement. The liability figures therefore include an approximate allowance for GMP equalisation. Until such time as the trustees and the employer take definitive action to equalise the effects of GMP, this allowance should be viewed as illustrative. |
Reconciliation of scheme assets and liabilities to assets and liabilities recognised |
The amounts recognised in the balance sheet are as follows: |
2023 | 2023 |
£ | £ |
Fair value of scheme assets | 16,744,000 | 16,157,000 |
Present value of defined benefit obligation | (15,249,000 | ) | (16,216,000 | ) |
Defined benefit pension scheme surplus/(deficit) | 1,495,000 | (59,000 | ) |
Effect of asset ceiling | (1,495,000 | ) | - |
Recognised defined benefit liability | - | (59,000 | ) |
The pension scheme has not invested in any of the group's own financial instruments or in properties or other assets used by the group. |
The accounts have been prepared on the basis that the group does not have an unconditional right to any surplus held within the scheme. This has given rise to the 'effect of the asset ceiling'. |
Pritchard Patent Product Company |
(2001) Limited (Registered number: 04207727) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 April 2024 |
24. | EMPLOYEE BENEFIT OBLIGATIONS - continued |
The amounts recognised in profit or loss are as follows: |
Defined benefit |
pension plans |
2024 | 2023 |
£ | £ |
Current service cost | - | - |
Net interest from net defined benefit asset/liability |
(2,000 |
) |
138,000 |
Past service cost | - | - |
Employer contribution | (165,000 | ) | (207,000 | ) |
(167,000 | ) | (69,000 | ) |
Actual return on plan assets | 994,000 | (418,000 | ) |
Changes in the present value of the defined benefit obligation are as follows: |
Defined benefit |
pension plans |
2024 | 2023 |
£ | £ |
Opening defined benefit obligation | 16,216,000 | 21,036,000 |
Contributions by scheme participants | - | 9,000 |
Interest cost | 796,000 | 688,000 |
Benefits paid | (572,000 | ) | (398,000 | ) |
Actuarial gains and loss - changes in assumptions |
(823,000 |
) |
(6,900,000 |
) |
Actuarial gains and losses - experience | (368,000 | ) | 1,781,000 |
15,249,000 | 16,216,000 |
Changes in the fair value of scheme assets are as follows: |
Defined benefit |
pension plans |
2024 | 2023 |
£ | £ |
Opening fair value of scheme assets | 16,157,000 | 16,757,000 |
Contributions by employer | 165,000 | 207,000 |
Contributions by scheme participants | - | 9,000 |
Interest income | 798,000 | 550,000 |
Benefits paid | (572,000 | ) | (398,000 | ) |
Return on plan assets (excluding interest income) |
196,000 |
(968,000 |
) |
16,744,000 | 16,157,000 |
Pritchard Patent Product Company |
(2001) Limited (Registered number: 04207727) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 April 2024 |
24. | EMPLOYEE BENEFIT OBLIGATIONS - continued |
The amounts recognised in other comprehensive income are as follows: |
Defined benefit |
pension plans |
2024 | 2023 |
£ | £ |
Return on plan assets (excluding interest income) |
196,000 |
(968,000 |
) |
Actuarial gains/(losses) - changes in assumptions and experience |
1,191,000 |
5,119,000 |
Effect of asset ceiling | (1,495,000 | ) | - |
(108,000 | ) | 4,151,000 |
The major categories of scheme assets as a percentage of total scheme assets are as follows: |
Defined benefit |
pension plans |
2024 | 2023 |
Cash and cash equivalents | 2% | 2% |
Equity instruments | 49% | 50% |
Corporate bonds | 29% | 22% |
Property | 5% | 5% |
Other | 13% | 14% |
Gilts | 2% | 7% |
100% | 100% |
Principal actuarial assumptions at the balance sheet date (expressed as weighted averages): |
2024 | 2023 |
% | % |
Discount rate | 5.30 | 5.00 |
RPI | 3.20 | 3.10 |
Salary increase rate | n/a | n/a |
CPI | 2.70 | 2.50 |
Pension increase in deferment: Pensions in excess of GMP earned before 06.04.09 |
2.70 |
2.50 |
Pension increase in deferment: Pensions earned after 05.04.09 | 2.50 | 2.50 |
Price inflation volatility (used in Black-Scholes model) | 1.50 | 1.50 |
Pension increases in payment: GMP earned before and after 05.04.88 | 3.00 | 3.00 |
Pension increases in payment: Pensions in excess of GMP earned before 06.04.97 |
3.00 |
3.00 |
Pension increases in payment: Pensions earned between 05.04.97 and 30.05.13 |
3.60 |
3.60 |
Pension increases in payment: Pensions earned after 29.05.13 | 3.40 | 3.40 |
Post retirement mortality assumptions |
2024 | 2023 |
Years | Years |
Current UK pensioners at retirement age - male | 21 | 21 |
Current UK pensioners at retirement age - female | 23 | 23 |
Future UK pensioners at retirement age - male | 22 | 22 |
Future UK pensioners at retirement age - female | 24 | 25 |
Pritchard Patent Product Company |
(2001) Limited (Registered number: 04207727) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 April 2024 |
25. | CONTINGENT LIABILITIES |
As mentioned in note 22, in October 2018 the High Court ruled that UK pension schemes are required to |
equalise benefits for the effect of Guaranteed Minimum Pensions (GMP). The scheme provides GMP for some members in respect of service between 17 May 1990 and 5 April 1997 and the trustees and employer will therefore need to take appropriate professional and legal advice, agree an approach, and eventually move to equalise member benefits. It may take many years to fully implement GMP equalisation. |
26. | CAPITAL COMMITMENTS |
2024 | 2023 |
£ | £ |
Contracted but not provided for in the |
financial statements | 45,642 | 195,157 |
27. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES |
The following advances and credits to a director subsisted during the years ended 30 April 2024 and 30 April 2023: |
2024 | 2023 |
£ | £ |
C M Pritchard |
Balance outstanding at start of year | 893,122 | - |
Amounts advanced | - | 893,122 |
Amounts repaid | (205,183 | ) | - |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year | 687,939 | 893,122 |