Caseware UK (AP4) 2023.0.135 2023.0.135 2024-03-312024-05-092024-05-092024-03-312024-03-312024-05-09false2023-04-01falseImporting, exporting and distributing stationery and related products.2525falsefalse 997644 2023-04-01 2024-03-31 997644 2022-04-01 2023-03-31 997644 2024-03-31 997644 2023-03-31 997644 2022-04-01 997644 c:CompanySecretary1 2023-04-01 2024-03-31 997644 c:Director1 2023-04-01 2024-03-31 997644 c:Director1 2024-03-31 997644 c:Director2 2023-04-01 2024-03-31 997644 c:Director4 2023-04-01 2024-03-31 997644 c:Director4 2024-03-31 997644 c:RegisteredOffice 2023-04-01 2024-03-31 997644 d:Buildings 2023-04-01 2024-03-31 997644 d:Buildings 2024-03-31 997644 d:Buildings 2023-03-31 997644 d:Buildings d:OwnedOrFreeholdAssets 2023-04-01 2024-03-31 997644 d:PlantMachinery 2023-04-01 2024-03-31 997644 d:PlantMachinery 2024-03-31 997644 d:PlantMachinery 2023-03-31 997644 d:PlantMachinery d:OwnedOrFreeholdAssets 2023-04-01 2024-03-31 997644 d:FurnitureFittings 2023-04-01 2024-03-31 997644 d:FurnitureFittings 2024-03-31 997644 d:FurnitureFittings 2023-03-31 997644 d:FurnitureFittings d:OwnedOrFreeholdAssets 2023-04-01 2024-03-31 997644 d:OtherPropertyPlantEquipment 2024-03-31 997644 d:OtherPropertyPlantEquipment 2023-03-31 997644 d:OtherPropertyPlantEquipment d:OwnedOrFreeholdAssets 2023-04-01 2024-03-31 997644 d:OwnedOrFreeholdAssets 2023-04-01 2024-03-31 997644 d:CurrentFinancialInstruments 2024-03-31 997644 d:CurrentFinancialInstruments 2023-03-31 997644 d:CurrentFinancialInstruments d:WithinOneYear 2024-03-31 997644 d:CurrentFinancialInstruments d:WithinOneYear 2023-03-31 997644 d:ShareCapital 2023-04-01 2024-03-31 997644 d:ShareCapital 2024-03-31 997644 d:ShareCapital 2022-04-01 2023-03-31 997644 d:ShareCapital 2023-03-31 997644 d:ShareCapital 2022-04-01 997644 d:RetainedEarningsAccumulatedLosses 2023-04-01 2024-03-31 997644 d:RetainedEarningsAccumulatedLosses 2024-03-31 997644 d:RetainedEarningsAccumulatedLosses 2022-04-01 2023-03-31 997644 d:RetainedEarningsAccumulatedLosses 2023-03-31 997644 d:RetainedEarningsAccumulatedLosses 2022-04-01 997644 c:OrdinaryShareClass1 2023-04-01 2024-03-31 997644 c:OrdinaryShareClass1 2024-03-31 997644 c:OrdinaryShareClass1 2023-03-31 997644 c:FRS102 2023-04-01 2024-03-31 997644 c:Audited 2023-04-01 2024-03-31 997644 c:FullAccounts 2023-04-01 2024-03-31 997644 c:PrivateLimitedCompanyLtd 2023-04-01 2024-03-31 997644 d:Subsidiary1 2023-04-01 2024-03-31 997644 d:Subsidiary1 1 2023-04-01 2024-03-31 997644 d:WithinOneYear 2024-03-31 997644 d:WithinOneYear 2023-03-31 997644 d:BetweenOneFiveYears 2024-03-31 997644 d:BetweenOneFiveYears 2023-03-31 997644 d:MoreThanFiveYears 2024-03-31 997644 d:MoreThanFiveYears 2023-03-31 997644 c:Consolidated 2024-03-31 997644 c:ConsolidatedGroupCompanyAccounts 2023-04-01 2024-03-31 997644 6 2023-04-01 2024-03-31 997644 e:PoundSterling 2023-04-01 2024-03-31 xbrli:shares iso4217:GBP xbrli:pure
Company registration number: 997644







CONSOLIDATED ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED
31 MARCH 2024


PENTEL (STATIONERY) LIMITED






































img5e6d.png                        

 


PENTEL (STATIONERY) LIMITED
 


 
COMPANY INFORMATION


Directors
T Toshinaga (resigned 20 November 2023)
J Ishigaki 
H Hayama (appointed 20 November 2023)




Company secretary
H Hayama



Registered number
997644



Registered office
Lynton House
7-12 Tavistock Square

London

WC1H 9LT




Trading Address
Hunts Rise
South Marston Park

Swindon

Wiltshire

SN3 4TW






Independent auditors
Menzies LLP
Chartered Accountants & Statutory Auditor

Lynton House

7-12 Tavistock Square

London

WC1H 9LT





 


PENTEL (STATIONERY) LIMITED
 



CONTENTS



Page
Group Strategic Report
1 - 2
Directors' Report
3 - 4
Independent Auditors' Report
5 - 8
Consolidated Statement of Comprehensive Income
9
Consolidated Statement of Financial Position
10
Company Statement of Financial Position
11
Consolidated Statement of Changes in Equity
12
Company Statement of Changes in Equity
13
Consolidated Statement of Cash Flows
14
Consolidated Analysis of Net Debt
15
Notes to the Financial Statements
16 - 29


 


PENTEL (STATIONERY) LIMITED
 


 
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2024

Principal activity
 
The principal activity of the Group during the year was that of importing, exporting and distributing stationery and related products.

Business review
 
Although 2023/24 was another challenging year, we saw significant growth in several areas of our business.  Our traditional retail business delivered strong growth as did our export business to Ireland and E- Commerce continues to improve. The Group remained profitable £354,665 (2023: £224,086) and sales were consistent with the prior year £8,534,647 (2023: £9,082,374).

Supply chain disruption has eased although inflationary costs had a significant impact across our business.

The relative strength of GBP against several key currencies enabled us to improve our gross margins.

The Group continues to have a strong cash and balance sheet position with the Group's net asset position being £8,075,518 (2023: £7,997,116) at the balance sheet date. The Directors expect this to further improve during the next period with a forecasted increase in turnover and profitability.

Principal risks and uncertainties
 
The Company structure and operation is set up in the most appropriate way to manage day to day business activities and risks, with regular reporting to the parent company.

There will be several risks to the Company in the next year:

War, military conflict and economic uncertainty could negatively impact on consumer confidence, sales and our supply chain 

Mergers, acquisition and the financial stability of our major customers could also affect sales 

Financial instruments
 
The Group's activities expose it to a number of financial risks including credit risk and foreign currency risk.

Credit risk

The Group’s credit risk is primarily attributable to its trade receivables and the amounts presented in the balance sheet are net of allowances for doubtful receivables. The Group has adopted a policy of only dealing with creditworthy counterparties as a means of mitigating the risk of financial loss.

Foreign currency risk

The Group’s principal foreign currency exposure arises from purchases and sales with overseas companies and consequently exposure to exchange rate fluctuations that arise. Foreign currency risk is managed by the use of foreign currency accounts and the majority of stock purchases being made in pounds.

Future developments

Our plan for 2024/25 is to grow sales by 16% based on 2023/24 results.  We have an ongoing programme of new product launches and promotions planned for the next 12 months, focussing on our key products areas: Energel rollerballs, Markers and Art & Craft product.  We are also adding additional personnel resource to fully develop our e-commerce business.

Page 1

 


PENTEL (STATIONERY) LIMITED
 



GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024

Key performance indicators
 
Our overall sales declined by -8.3% compared to the previous financial year, in a difficult economic environment that saw the traditional office products market decline by -8.2%.  At the same time, we saw an decline in our gross margin (GP%) by 3 percentage points or by 7.4%, this improvement was delivered by tight control of selling prices together with reduced cost of goods.

We anticipate sales growth in most of our sectors, we have significant investment in place to grow our e-commerce sector by 30%.

Our customer retention rate is 96%, demonstrating how loyal and stable our Pentel brand resellers are.  Improvements to our forecasting and supply chain processes will ensure that our OTIF delivery performance, already very good,  continues to improve towards our target of 98%. 


This report was approved by the board and signed on its behalf.



H Hayama
Director

Date: 9 May 2024

Page 2

 


PENTEL (STATIONERY) LIMITED
 


 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2024

The directors present their report and the financial statements for the year ended 31 March 2024.

Directors' responsibilities statement

The directors are responsible for preparing the Group Strategic Report, the Directors' Report and the consolidated 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 for the Group's financial statements 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 Group will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and the Group and to enable them to ensure that the financial statements comply with the Companies Act 2006They 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.

Results and dividends

The profit for the year, after taxation, amounted to £354,665 (2023 - £224,086).

The directors have recommended and paid a dividend of £58,701 during the year (2023: £114,770).

Directors

The directors who served during the year,  with exceptions noted below were:

T Toshinaga (resigned 20 November 2023)
H Hayama (appointed 20 November 2023)

Disclosure of information in the strategic report
In accordance with section 414C(11) of the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 the Strategic Report preceding the Directors' Report includes information that would have formerly been included in the  financial instruments and future development sections of the Directors' Report.  

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company and the Group's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company and the Group's auditors are aware of that information.

Page 3

 


PENTEL (STATIONERY) LIMITED
 


 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024

Auditors

The auditorsMenzies LLPwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board and signed on its behalf.
 





H Hayama
Director

Date: 9 May 2024

Page 4

 


PENTEL (STATIONERY) LIMITED
 

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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PENTEL (STATIONERY) LIMITED

Opinion


We have audited the financial statements of Pentel (Stationery) Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 March 2024, which comprise the Consolidated Statement of Comprehensive Income, the Consolidated Statement of Financial Position, the Company Statement of Financial Position, the Consolidated Statement of Cash Flows, the Consolidated Statement of Changes in Equity, the Company Statement of Changes in Equity and the related notes, including a summary of significant accounting policiesThe 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'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.


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 United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.


Conclusions relating to going concern


In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.


Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Group's or the parent Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.


Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.


Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The directors are responsible for the other information contained within the Annual ReportOur 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.


Page 5

 


PENTEL (STATIONERY) LIMITED


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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PENTEL (STATIONERY) LIMITED (CONTINUED)

Opinion 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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Group Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.


Matters on which we are required to report by exception
 

In the light of the knowledge and understanding of the Group and the parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Directors' Report.


We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:


adequate accounting records have not been kept by the parent Company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent Company financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


Responsibilities of directors
 

As explained more fully in the Directors' Responsibilities Statement set out on page 3, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.


In preparing the financial statements, the directors are responsible for assessing the Group's and the parent Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Group or the parent Company or to cease operations, or have no realistic alternative but to do so.


Page 6

 


PENTEL (STATIONERY) LIMITED


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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PENTEL (STATIONERY) LIMITED (CONTINUED)

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 an Auditors' 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 Group financial statements.


Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

The Group is subject to laws and regulations that directly affect the financial statements including financial reporting legislation. We determined that the following laws and regulations were most significant including:

United Kingdom
The Companies Act 2006;
Financial Reporting Standard 102;
UK employment legislation;
General Data Protection Regulations;
UK tax legislation; and
UK Reach chemical regulations.

South Africa
Basic Conditions of Employment Act 1997;
Labour Relations Act 1995;
South African Companies Act 2008; and
South African tax legislation.

We assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statements items.

We understood how the Company is complying with those legal and regulatory frameworks by, making inquiries to management, those reponsible for legal and compliance procedures and the company secretary. The engagement partner assessed whether the engagement team collectively had the appropriate competance and capabilities to identify or recognise non-compliance with laws and regulations. The assessment did no identify any issues in this area.

We assessed the susceptibility of the Company financial statements to material misstatement, including how fraud might occur. Audit procedures performed by the engagement team included:
identifying and assessing the measures management has in place to prevent and detect fraud;
understanding how those charged with governance considered and addressed the potential for override of controls or other inappropriate influence over the financial reporting process;
challenging assumptions and judgements made by management in its significant accounting estimates; and
identifying and testing journal entries, in particular any journal entries posted with unusual account combinations.

As a result of the above procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified potential for fraud in the following areas:

The application of inappropriate judgements or estimation to manipulate the financial position in the calculation of the year end provisions; or
Posting of unusual journals and complex transactions.

Because of the inherent limitations of an audit, there is a risk that we will not detect all regularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
Page 7

 


PENTEL (STATIONERY) LIMITED


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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PENTEL (STATIONERY) LIMITED (CONTINUED)


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 Auditors' Report.


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 2006Our 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 Auditors' 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.





Sarah Hallam FCCA (Senior Statutory Auditor)
  
for and on behalf of
Menzies LLP
 
Chartered Accountants
Statutory Auditor
  
Lynton House
7-12 Tavistock Square
London
WC1H 9LT

9 May 2024
Page 8

 


PENTEL (STATIONERY) LIMITED
 


 
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2024

2024
2023
Note
£
£

  

Turnover
 3 
8,534,647
9,082,374

Cost of sales
  
(4,641,039)
(5,222,627)

Gross profit
  
3,893,608
3,859,747

Distribution costs
  
(1,789,304)
(1,697,135)

Administrative expenses
  
(1,724,498)
(1,920,944)

Other operating income
 4 
4,491
59,172

Operating profit
 5 
384,297
300,840

Interest receivable and similar income
 9 
148,822
92,715

Profit before taxation
  
533,119
393,555

Tax on profit
 10 
(178,454)
(169,469)

Profit for the financial year
  
354,665
224,086

  

Foreign currency retranslation
  
(217,562)
(856,595)

Other comprehensive income for the year
  
(217,562)
(856,595)

Total comprehensive income for the year
  
137,103
(632,509)

Profit for the year attributable to:
  

Owners of the parent Company
  
354,665
224,086

  
354,665
224,086

Total comprehensive income for the year attributable to:
  

Owners of the parent Company
  
137,103
(632,509)

  
137,103
(632,509)

The notes on pages 16 to 29 form part of these financial statements.

Page 9

 


PENTEL (STATIONERY) LIMITED
REGISTERED NUMBER:997644



CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 MARCH 2024

2024
2023
Note
£
£

Fixed assets
  

Tangible assets
 12 
1,485,385
1,550,288

  
1,485,385
1,550,288

Current assets
  

Stocks
 14 
2,093,913
2,874,354

Debtors: amounts falling due within one year
 15 
1,437,637
1,458,896

Cash at bank and in hand
 16 
4,220,727
4,049,233

  
7,752,277
8,382,483

Creditors: amounts falling due within one year
 17 
(1,162,144)
(1,935,655)

Net current assets
  
 
 
6,590,133
 
 
6,446,828

Total assets less current liabilities
  
8,075,518
7,997,116


Capital and reserves
  

Called up share capital 
 20 
120,000
120,000

Profit and loss account
 21 
7,955,518
7,877,116

Equity attributable to owners of the parent Company
  
8,075,518
7,997,116


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




H Hayama
Director

Date: 9 May 2024

The notes on pages 16 to 29 form part of these financial statements.

Page 10

 


PENTEL (STATIONERY) LIMITED
REGISTERED NUMBER:997644



COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 31 MARCH 2024

2024
2023
Note
£
£

Fixed assets
  

Tangible assets
 12 
1,239,191
1,289,876

Investments
 13 
140,000
140,000

  
1,379,191
1,429,876

Current assets
  

Stocks
 14 
1,253,983
1,501,707

Debtors: amounts falling due within one year
 15 
799,688
843,906

Cash at bank and in hand
 16 
2,293,077
2,268,546

  
4,346,748
4,614,159

Creditors: amounts falling due within one year
 17 
(695,855)
(884,518)

Net current assets
  
 
 
3,650,893
 
 
3,729,641

Total assets less current liabilities
  
5,030,084
5,159,517

  

  

Net assets
  
5,030,084
5,159,517


Capital and reserves
  

Called up share capital 
 20 
120,000
120,000

Profit and loss account brought forward
  
5,039,517
5,274,609

Loss for the year
  
(70,732)
(120,322)

Other changes in the profit and loss account

  

(58,701)
(114,770)

Profit and loss account carried forward
  
4,910,084
5,039,517

  
5,030,084
5,159,517


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




H Hayama
Director

Date: 9 May 2024

The notes on pages 16 to 29 form part of these financial statements.

Page 11

 


PENTEL (STATIONERY) LIMITED
 



CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024


Called up share capital
Profit and loss account
Total equity

£
£
£


At 1 April 2022
120,000
8,624,395
8,744,395


Comprehensive income for the year

Profit for the year
-
224,086
224,086

Foreign currency retranslation
-
(856,595)
(856,595)


Other comprehensive income for the year
-
(856,595)
(856,595)


Total comprehensive income for the year
-
(632,509)
(632,509)


Contributions by and distributions to owners

Dividends
-
(114,770)
(114,770)


Total transactions with owners
-
(114,770)
(114,770)



At 1 April 2023
120,000
7,877,116
7,997,116


Comprehensive income for the year

Profit for the year
-
354,665
354,665

Foreign currency retranslation
-
(217,562)
(217,562)


Other comprehensive income for the year
-
(217,562)
(217,562)


Total comprehensive income for the year
-
137,103
137,103


Contributions by and distributions to owners

Dividends
-
(58,701)
(58,701)


Total transactions with owners
-
(58,701)
(58,701)


At 31 March 2024
120,000
7,955,518
8,075,518


The notes on pages 16 to 29 form part of these financial statements.

Page 12

 


PENTEL (STATIONERY) LIMITED
 



COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024


Called up share capital
Profit and loss account
Total equity

£
£
£


At 1 April 2022
120,000
5,274,609
5,394,609


Comprehensive income for the year

Loss for the year
-
(120,322)
(120,322)


Other comprehensive income for the year
-
-
-


Contributions by and distributions to owners

Dividends
-
(114,770)
(114,770)


Total transactions with owners
-
(114,770)
(114,770)



At 1 April 2023
120,000
5,039,517
5,159,517


Comprehensive income for the year

Loss for the year
-
(70,732)
(70,732)


Contributions by and distributions to owners

Dividends
-
(58,701)
(58,701)


Total transactions with owners
-
(58,701)
(58,701)


At 31 March 2024
120,000
4,910,084
5,030,084


The notes on pages 16 to 29 form part of these financial statements.

Page 13

 


PENTEL (STATIONERY) LIMITED
 



CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2024

2024
2023
£
£

Cash flows from operating activities

Profit for the financial year
354,665
224,086

Adjustments for:

Depreciation of tangible assets
68,284
65,534

Interest received
(148,822)
(92,715)

Taxation charge
178,454
169,469

Decrease/(increase) in stocks
780,441
(479,244)

Decrease in debtors
2,112
88,108

(Increase)/decrease in amounts owed by groups
(1,414)
12,474

(Decrease) in creditors
(171,459)
(92,202)

(Decrease)/increase in amounts owed to groups
(606,763)
59,501

Increase in provisions
-
6,461

Corporation tax (paid)
(156,459)
(196,423)

Foreign exchange
(195,927)
(435,023)

Net cash generated from operating activities

103,112
(669,974)


Cash flows from investing activities

Purchase of tangible fixed assets
(21,739)
(79,979)

Interest received
148,822
92,715

Net cash from investing activities

127,083
12,736

Cash flows from financing activities

Dividends paid
(58,701)
(114,770)

Net cash used in financing activities
(58,701)
(114,770)

Net increase/(decrease) in cash and cash equivalents
171,494
(772,008)

Cash and cash equivalents at beginning of year
4,049,233
4,821,241

Cash and cash equivalents at the end of year
4,220,727
4,049,233


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
4,220,727
4,049,233

4,220,727
4,049,233


Page 14

 


PENTEL (STATIONERY) LIMITED
 



CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 MARCH 2024




At 1 April 2023
Cash flows
At 31 March 2024
£

£

£

Cash at bank and in hand

4,049,233

171,494

4,220,727


4,049,233
171,494
4,220,727

The notes on pages 16 to 29 form part of these financial statements.

Page 15

 


PENTEL (STATIONERY) LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

1.


Statement of compliance

Pentel (Stationery) Limited is a private company, limited by shares, incorporated in England and Wales under the Companies Act 2006. The address of the registered office and principal place of business is given on the company information page. The principal activity of the company and the nature of its operations are set out in the strategic report on page 1. 

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements.

 
2.2

Basis of consolidation

The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Statement of Financial Position, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated Statement of Comprehensive Income from the date on which control is obtained. They are deconsolidated from the date control ceases.
In accordance with the transitional exemption available in FRS 102, the Group has chosen not to retrospectively apply the standard to business combinations that occurred before the date of transition to FRS 102, being .

Page 16

 


PENTEL (STATIONERY) LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

2.Accounting policies (continued)

  
2.3

Judgements in applying accounting policies and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
Significant judgements
The directors have made no key judgements (apart from those involving estimations)  in the process of applying the entity's accounting policies.
Key sources of estimation uncertainty
Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the related actual outcome. The key assumptions and other sources of estimation uncertainty that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are as follows:
Impairment of Inventories
Management include impairment provisions based on how long the stock has been held and appropriate percentages are then applied accordingly. This is reviewed by assessing the average stock life on hand considering factors such as shelf life, seasonal trends, product termination and customer demand are taken into consideration when determining the provision. Where an item of stock no longer possesses any functional capabilities it is fully written off.
Impairment of Trade Receivables
Management include impairment provisions against irrecoverable debts based on their best estimate on the amounts that will be recovered. These estimates take into account historic recoverability and external economic factors when determining the provision which includes an element of uncertainty.

  
2.4

Revenue recognition

Turnover is measured at the fair value of the consideration received or receivable for goods supplied and
services rendered, net of discounts and Value Added Tax.
Revenue from the sale of goods is recognised when the significant risks and reward of ownership have transferred to the buyer (usually on despatch of the goods); the amount of revenue can be measured reliably; it is probable that the associated economic benefits will flow to the entity; and the costs incurred or to be incurred in respect of the transactions can be measured reliably.

Page 17

 


PENTEL (STATIONERY) LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

2.Accounting policies (continued)

 
2.5

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company and the Group operate and generate income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits;
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met; and
Where they relate to timing differences in respect of interests in subsidiaries, associates, branches and joint ventures and the Group can control the reversal of the timing differences and such reversal is not considered probable in the foreseeable future.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

 
2.6

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

On consolidation, the results of overseas operations are translated into Sterling at rates approximating to those ruling when the transactions took place. All assets and liabilities of overseas operations are translated at the rate ruling at the reporting date. Exchange differences arising on translating the opening net assets at opening rate and the results of overseas operations at actual rate are recognised in other comprehensive income.

Page 18

 


PENTEL (STATIONERY) LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

2.Accounting policies (continued)

  
2.7

Operating leases

Lease payments are recognised as an expense over the lease term on a straight-line basis. The aggregate benefit of lease incentives is recognised as a reduction to expense over the lease term, on a straight-line basis.

 
2.8

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Freehold property
-
twenty to fifty years straight line
Plant and machinery
-
three to five years straight line
Fixtures and fittings
-
five years straight line

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

No depreciation is provided in respect of freehold land. 

 
2.9

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

 
2.10

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At each reporting date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

 
2.11

Pensions

Defined contribution pension plan

The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of Financial Position. The assets of the plan are held separately from the Group in independently administered funds.

Page 19

 


PENTEL (STATIONERY) LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

2.Accounting policies (continued)

 
2.12

Financial instruments

The Group only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.
For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.
For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the Group would receive for the asset if it were to be sold at the reporting date.


3.


Turnover

An analysis of turnover by class of business is as follows:


2024
2023
£
£

Sales
8,534,647
9,082,374

8,534,647
9,082,374


Analysis of turnover by country of destination:

2024
2023
£
£

United Kingdom
4,077,683
4,219,414

Africa
4,206,688
4,693,851

Other overseas
250,276
169,109

8,534,647
9,082,374



4.


Other operating income

2024
2023
£
£

Net rents receivable
2,000
2,500

Other income
2,491
56,672

4,491
59,172


Page 20

 


PENTEL (STATIONERY) LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

5.


Operating profit

The operating profit is stated after charging:

2024
2023
£
£

Exchange differences
(16,912)
(173,225)

Other operating lease rentals
(17,114)
(78,490)

Stock impairment losses
15,949
50,351


6.


Auditors' remuneration

During the year, the Group obtained the following services from the Company's auditors:


2024
2023
£
£

Fees payable to the Company's auditors for the audit of the consolidated and parent Company's financial statements
43,650
43,000


7.


Employees

Staff costs were as follows:


Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£


Wages and salaries
1,388,822
1,390,576
815,147
786,817

Social security costs
89,555
89,401
89,555
89,401

Cost of defined contribution scheme
42,652
41,204
42,652
41,204

1,521,029
1,521,181
947,354
917,422


The average monthly number of employees, including the directors, during the year was as follows:



Group
Group
Company
Company
        2024
        2023
        2024
        2023
            No.
            No.
            No.
            No.









Distribution staff
29
29
6
6



Administrative staff
30
27
19
19

59
56
25
25

Page 21

 


PENTEL (STATIONERY) LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

8.


Directors' remuneration



The directors, who are considered to be the key management personnel have received aggregate remuneration in respect of qualifying services were £131,953 (2023: £156,895). 


9.


Interest receivable

2024
2023
£
£


Other interest receivable
148,822
92,715

148,822
92,715


10.


Taxation


2024
2023
£
£


Foreign tax


Foreign tax on income for the year
161,170
201,432

161,170
201,432

Total current tax
161,170
201,432

Deferred tax


Origination and reversal of timing differences
17,284
(31,963)

Total deferred tax
17,284
(31,963)


Taxation on profit on ordinary activities
178,454
169,469
Page 22

 


PENTEL (STATIONERY) LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
 
10.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is higher than (2023 - higher than) the standard rate of corporation tax in the UK of 25% (2023 - 19%). The differences are explained below:

2024
2023
£
£


Profit on ordinary activities before tax
533,119
393,555


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 19%)
133,280
74,775

Effects of:


Expenses not deductible for tax purposes
1,686
2,190

Capital allowances for year in excess of depreciation
12,247
(4,546)

Higher rate taxes on overseas earnings
13,204
50,202

Other timing differences leading to an increase (decrease) in taxation
221
(1,765)

Unrelieved tax losses carried forward
17,816
48,613

Total tax charge for the year
178,454
169,469


11.


Dividends



2024
2023
£
£


Equity dividends on ordinary shares
58,701
114,770

58,701
114,770

Page 23

 


PENTEL (STATIONERY) LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

12.


Tangible fixed assets

Group






Land
Buildings
Plant and machinery
Fixtures and fittings
Total

£
£
£
£
£



Cost 


At 1 April 2023
879,197
3,468,944
70,926
838,700
5,257,767


Additions
-
-
-
21,739
21,739


Disposals
-
-
-
(20,527)
(20,527)


Exchange adjustments
-
(18,695)
-
(25,843)
(44,538)



At 31 March 2024

879,197
3,450,249
70,926
814,069
5,214,441



Depreciation


At 1 April 2023
-
2,933,478
62,923
711,078
3,707,479


Charge for the year on owned assets
-
18,829
5,740
43,715
68,284


Disposals
-
-
-
(20,527)
(20,527)


Exchange adjustments
-
(2,826)
-
(23,354)
(26,180)



At 31 March 2024

-
2,949,481
68,663
710,912
3,729,056



Net book value



At 31 March 2024
879,197
500,768
2,263
103,157
1,485,385



At 31 March 2023
879,197
535,466
8,003
127,622
1,550,288

Page 24

 


PENTEL (STATIONERY) LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

           12.Tangible fixed assets (continued)


Company






Land
Buildings
Plant and machinery
Fixtures and fittings
Total

£
£
£
£
£

Cost


At 1 April 2023
879,197
3,203,768
70,926
591,572
4,745,463



At 31 March 2024

879,197
3,203,768
70,926
591,572
4,745,463



Depreciation


At 1 April 2023
-
2,893,395
62,923
499,269
3,455,587


Charge for the year on owned assets
-
17,210
5,740
27,735
50,685



At 31 March 2024

-
2,910,605
68,663
527,004
3,506,272



Net book value



At 31 March 2024
879,197
293,163
2,263
64,568
1,239,191



At 31 March 2023
879,197
310,373
8,003
92,303
1,289,876






Page 25

 


PENTEL (STATIONERY) LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

13.


Fixed asset investments

Company





Investments in subsidiary companies

£



Cost or valuation


At 1 April 2023
140,000



At 31 March 2024
140,000





Subsidiary undertaking


The following was a subsidiary undertaking of the Company:

Name

Registered office

Class of shares

Holding

Pentel South Africa (Pty) Ltd
96 Shaft Street, Stormill
Roodepoort 1725,
Johannesburg, South
Africa.
Ordinary shares
100%


14.


Stocks

Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£

Finished goods and goods for resale
2,093,913
2,874,354
1,253,983
1,501,707

2,093,913
2,874,354
1,253,983
1,501,707


Page 26

 


PENTEL (STATIONERY) LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

15.


Debtors

Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£


Trade debtors
1,177,139
1,117,690
732,784
778,809

Amounts owed by group undertakings
32,784
30,060
32,784
30,060

Other debtors
142,169
204,143
-
-

Prepayments and accrued income
52,671
53,568
34,120
35,037

Deferred taxation
32,874
53,435
-
-

1,437,637
1,458,896
799,688
843,906



16.


Cash and cash equivalents

Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£

Cash at bank and in hand
4,220,727
4,049,233
2,293,077
2,268,546

4,220,727
4,049,233
2,293,077
2,268,546



17.


Creditors: Amounts falling due within one year

Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£

Trade creditors
296,569
447,039
272,936
337,020

Amounts owed to group undertakings
599,132
1,205,895
238,443
380,854

Corporation tax
9,720
5,009
-
-

Other taxation and social security
72,329
54,140
72,329
54,140

Other creditors
107,661
147,823
35,414
36,755

Accruals and deferred income
76,733
75,749
76,733
75,749

1,162,144
1,935,655
695,855
884,518


The Group had unpaid pension contributions outstanding at the year end of £6,539 (2023: £6,363). 

Page 27

 


PENTEL (STATIONERY) LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

18.


Deferred taxation


Group



2024


£






At beginning of year
53,435


Charged to profit or loss
(20,561)



At end of year
32,874

Company


2024






At end of year
-
Group
Group
2024
2023
£
£

Short term timing differences
32,874
53,435

32,874
53,435


19.


Commitments under operating leases

At 31 March 2024 the Group and the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:


Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£

Not later than 1 year
44,350
76,855
44,350
76,855

Later than 1 year and not later than 5 years
58,190
68,921
58,190
68,921

Later than 5 years
-
3,216
-
3,216

102,540
148,992
102,540
148,992

The total value of lease payments recognised as an expense is £58,267 (2023: £58,975)

Page 28

 


PENTEL (STATIONERY) LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

20.


Share capital

2024
2023
£
£
Allotted, called up and fully paid



120,000 (2023 - 120,000) Ordinary shares shares of £1.00 each
120,000
120,000



21.


Reserves

Profit and loss account
This reserve records retained earnings and accumulated losses.


22.


Related party transactions

During the year the group had the following transactions and year end balances with the parent company Pentel Kabushiki Kaisha: 
Purchases: £2,535,806 (2023: £3,498,207) 
Creditor: £516,519 (2023: £926,697)
During the year the group had the following transactions and year end balances with other companies under common control: 
Sales:  £12,327 (2023: £37,604)
Purchases: £642,926 (2023: £1,163,755)
Debtor: £32,784 (2023: £30,060)
Creditor: £82,613 (2023: £279,198)


23.


Controlling party

The ultimate parent company was PLUS Corporation, a company incorporated in Japan. There is no ultimate controlling party. 

 
Page 29