Company registration number 01041196 (England and Wales)
POWER HEALTH PRODUCTS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
POWER HEALTH PRODUCTS LIMITED
COMPANY INFORMATION
Directors
Mrs A.C. McIver
Mrs C. McIver
Mrs V.C. McIver
Miss H E Whilesmith
Secretary
Mrs C. McIver
Company number
01041196
Registered office
10 Central Avenue
Airfield Estate
Pocklington Industrial Estate
Pocklington
East Yorkshire
England
YO42 1NR
Auditor
Finnies Accountants Limited
4-6 Swaby's Yard
Walkergate
Beverley
East Yorkshire
United Kingdom
HU17 9BZ
POWER HEALTH PRODUCTS LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Profit and loss account
8
Statement of comprehensive income
9
Balance sheet
10
Statement of changes in equity
11
Statement of cash flows
12
Notes to the financial statements
13 - 24
POWER HEALTH PRODUCTS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 APRIL 2024
- 1 -

The directors present the strategic report for the year ended 30 April 2024.

Review of the Business

The company continues to meet the expectations of the board.

Principal risks and uncertainties

The company annually carries out an exercise to identify and assess the impact of risks on their business and the exercise has recently been reviewed. The more significant risks and uncertainties are in line with the rest of the health food manufacture sector specifically customer retention, cost of materials, margin, profitability and competition.

Development and performance

Challenges exist with political uncertainties in the world and UK which are responsible for energy price challenges, inflation, higher taxes and potential recession. The directors believe the company is suitably prepared for this with its strong reserves and cash at bank.

Key performance indicators

The board has assessed that the following Key Performance Indicators (KPI's) are the most effective measures of progress towards achieving further growth of turnover and profitability,

 

- Organic sales growth - year on year increase in sales revenue

- Gross return on sales - gross profit as a percentage of sales revenue

- Net return on sales - operating profit as a percentage of sales revenue

- Free cashflow - cash generated from operations less investing activities.

 

Performance against KPI's                    2024        2023            

Organic sales growth                    6.35%        (3.07)%                

Gross return on sales                    22.56%        23.80%                

Net return on sales                    2.00%        4.21%                

Free cashflow                        £(99,828)    £(139,902)        

On behalf of the board

Mrs V.C. McIver
Director
13 January 2025
POWER HEALTH PRODUCTS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 APRIL 2024
- 2 -

The directors present their annual report and financial statements for the year ended 30 April 2024.

Principal activities

The principal activity of the company continued to be that of retail and wholsesale distribution of natural and health products.

Results and dividends

The results for the year are set out on page 8.

No dividends will be distributed for the year ended 30 April 2024.(2023: £nil).

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Mrs A.C. McIver
Mrs C. McIver
Mrs V.C. McIver
Miss H E Whilesmith
Mrs G Morgan
(Resigned 30 November 2023)
Financial instruments
Financial risk factors

The company's operations expose it to a variety of financial risks that include the effects of credit risk, liquidity risk and interest rate risk. The company's overall risk managements programme focuses on the unpredictability of, the markets in which it operates and seeks to minimise associated volatility of the company's financial performance. The company does not use derivative financial instruments to manage interest rate costs and as such, no hedge accounting is applied.

 

Given the size of the company, the directors have not delegate the responsibility of monitoring the financial risk management to a sub-committee of the board. The policies set by the board of directors are implemented by the executive directors.

Liquidity risk

The company manages liquidity risk by maintaining sufficient cash to enable it to meet its operational requirements. Operating cash flows are actively managed with annual cash flow forecasts updated as required and subject to board review.

The company has both interest bearing assets and interest bearing liabilities. Interest bearing assets comprise cash balances, which earn interest at floating rates. Interest bearing liabilities comprise amounts due on bank borrowings which attract interest at agreed rates.

POWER HEALTH PRODUCTS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 3 -
Foreign currency risk

The company's principal foreign currency exposures arise from sales to customers in overseas countries. Sales are made in GBP, however there is a risk that significant fluctuations in exchange rate make the products too expensive. The management continue to monitor the situation and are in discussion with their customers.

Credit risk

Credit risk arises from cash and cash equivalents and deposits with banks and financial institutions, as well as credit exposures to customers, including outstanding receivables and committed transactions. The company has implemented policies that require maintaining appropriate credit limits on all customers. The company's credit risk is primarily attributable to its trade receivables balance. The amounts presented in the statement of financial position are net of allowances for doubtful debts.

 

The company does not have significant concentrations of credit risk. The deposits with banks are only held with reputable financial institutions. This credit worthiness is reviewed periodically in order to ensure active management of counter-party risk. If customers are independently rated, these ratings are used. If there is no independent rating, the board of directors assesses the credit quality of the customer, taking into account its financial position, past experience and other factors. Individual risk limits are set based on internal or external ratings in accordance with limits set by the board. The utilisation of credit limits is regularly monitored.

 

No credit limits were exceeded during the reporting period and management does not expect any losses from non-performance by these counterparties.

Auditor

In accordance with the company's articles, a resolution proposing that Finnies Accountants Limited be reappointed as auditor of the company will be put at a General Meeting.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

On behalf of the board
Mrs V.C. McIver
Director
13 January 2025
POWER HEALTH PRODUCTS LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 APRIL 2024
- 4 -

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

POWER HEALTH PRODUCTS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF POWER HEALTH PRODUCTS LIMITED
- 5 -
Opinion

We have audited the financial statements of Power Health Products Limited (the 'company') for the year ended 30 April 2024 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

 

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

 

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

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

POWER HEALTH PRODUCTS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF POWER HEALTH PRODUCTS LIMITED
- 6 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

 

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

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the 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 company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

- Enquiry of management and those charged with governance around actual and potential litigation and claims.

 

- Enquiry of entity staff in compliance functions to identify any instances of non-compliance with laws and regulations.

 

- Reviewing minutes of meetings of those charged with governance.

 

- Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.

 

- Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of business.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

POWER HEALTH PRODUCTS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF POWER HEALTH PRODUCTS LIMITED
- 7 -
Nicholas Michael Auton (Senior Statutory Auditor)
For and on behalf of Finnies Accountants Limited
Chartered Certified Accountants
Statutory Auditor
4-6 Swaby's Yard
Walkergate
Beverley
East Yorkshire
HU17 9BZ
Date: .........................
2025-01-23
POWER HEALTH PRODUCTS LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 30 APRIL 2024
- 8 -
2024
2023
Notes
£
£
Turnover
3
6,584,938
6,191,676
Cost of sales
(5,112,610)
(4,718,324)
Gross profit
1,472,328
1,473,352
Administrative expenses
(1,340,451)
(1,212,871)
Operating profit
4
131,877
260,481
Interest receivable and similar income
35,701
17,429
Interest payable and similar expenses
8
(4,318)
-
0
Profit before taxation
163,260
277,910
Tax on profit
9
163,215
(222,897)
Profit for the financial year
326,475
55,013

The profit and loss account has been prepared on the basis that all operations are continuing operations.

POWER HEALTH PRODUCTS LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 APRIL 2024
- 9 -
2024
2023
£
£
Profit for the year
326,475
55,013
Other comprehensive income
-
-
Total comprehensive income for the year
326,475
55,013
POWER HEALTH PRODUCTS LIMITED
BALANCE SHEET
AS AT
30 APRIL 2024
30 April 2024
- 10 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
11
5,474,713
5,566,235
Investments
12
14,641
14,641
5,489,354
5,580,876
Current assets
Stocks
13
1,918,607
1,926,441
Debtors
14
1,383,344
1,422,908
Cash at bank and in hand
1,165,673
1,265,501
4,467,624
4,614,850
Creditors: amounts falling due within one year
15
(1,007,799)
(1,349,463)
Net current assets
3,459,825
3,265,387
Total assets less current liabilities
8,949,179
8,846,263
Creditors: amounts falling due after more than one year
16
(73,985)
(73,985)
Provisions for liabilities
Deferred tax liability
17
404,231
627,790
(404,231)
(627,790)
Net assets
8,470,963
8,144,488
Capital and reserves
Called up share capital
19
10,500
10,500
Revaluation reserve
20
728,646
728,646
Profit and loss reserves
21
7,731,817
7,405,342
Total equity
8,470,963
8,144,488

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements were approved by the board of directors and authorised for issue on 13 January 2025 and are signed on its behalf by:
Mrs A.C. McIver
Mrs V.C. McIver
Director
Director
Company registration number 01041196 (England and Wales)
POWER HEALTH PRODUCTS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 APRIL 2024
- 11 -
Share capital
Revaluation reserve
Profit and loss reserves
Total
£
£
£
£
Balance at 1 May 2022
10,500
728,646
7,350,329
8,089,475
Year ended 30 April 2023:
Profit and total comprehensive income
-
-
55,013
55,013
Balance at 30 April 2023
10,500
728,646
7,405,342
8,144,488
Year ended 30 April 2024:
Profit and total comprehensive income
-
-
326,475
326,475
Balance at 30 April 2024
10,500
728,646
7,731,817
8,470,963
POWER HEALTH PRODUCTS LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 APRIL 2024
- 12 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
25
117,304
306,041
Interest paid
(4,318)
-
0
Income taxes paid
(105,015)
(23,174)
Net cash inflow from operating activities
7,971
282,867
Investing activities
Purchase of tangible fixed assets
(128,277)
(203,845)
Proceeds from disposal of tangible fixed assets
11,280
-
0
Repayment of loans
(26,503)
(236,353)
Interest received
35,701
17,429
Net cash used in investing activities
(107,799)
(422,769)
Net decrease in cash and cash equivalents
(99,828)
(139,902)
Cash and cash equivalents at beginning of year
1,265,501
1,405,403
Cash and cash equivalents at end of year
1,165,673
1,265,501
POWER HEALTH PRODUCTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
- 13 -
1
Accounting policies
Company information

Power Health Products Limited is a private company limited by shares incorporated in England and Wales. The registered office is 10 Central Avenue, Airfield Estate, Pocklington Industrial Estate, Pocklington, East Yorkshire, England, YO42 1NR.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, [modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.

1.2
Going concern

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually when the goods are physically delivered to the customer), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

1.4
Intangible fixed assets - goodwill

Goodwill is normally written off against reserves over the directors' estimate of it's expected useful life of five years based upon expected product sales.

1.5
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Freehold land and buildings
2% on cost
Plant and equipment
20% pa on written down value & 2% on cost
Fixtures and fittings
20% pa on written down value
Computers
20% pa on written down value

Freehold property was depreciated from 1st May 2023.

POWER HEALTH PRODUCTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 14 -
1.6
Fixed asset investments

Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

1.7
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.8
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell, after making due allowance for obsolete and slow moving stock. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.9
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

POWER HEALTH PRODUCTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 15 -
1.10
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

POWER HEALTH PRODUCTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 16 -
Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.11
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.12
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

POWER HEALTH PRODUCTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 17 -
Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.13
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.14
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.15
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

1.16
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

POWER HEALTH PRODUCTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 18 -
3
Turnover and other revenue

The turnover and profit before taxation are attributable to the one principal activity of the company.

 

2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
5,901,147
5,094,703
Europe
493,764
519,740
Other
190,027
577,233
6,584,938
6,191,676
2024
2023
£
£
Other revenue
Interest income
35,701
17,429
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange losses
442
-
0
Depreciation of owned tangible fixed assets
210,023
112,223
Profit on disposal of tangible fixed assets
(1,504)
-
Operating lease charges
15,229
13,357
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
11,400
11,000
6
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2024
2023
Number
Number
Production, warehouse and works
52
57
Sales and distribution
2
5
Administration
19
17
Total
73
79
POWER HEALTH PRODUCTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
6
Employees
(Continued)
- 19 -

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
1,878,027
1,689,199
Social security costs
158,018
171,580
Pension costs
64,838
84,963
2,100,883
1,945,742
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
235,427
239,904
Company pension contributions to defined contribution schemes
22,796
23,243
258,223
263,147

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 4 (2023 - 4).

Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
69,350
66,658
Company pension contributions to defined contribution schemes
6,935
6,666
8
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
4,318
-
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
60,344
25,742
POWER HEALTH PRODUCTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
9
Taxation
2024
2023
£
£
(Continued)
- 20 -
Deferred tax
Origination and reversal of timing differences
(223,559)
61,165
Changes in tax rates
-
0
135,990
Total deferred tax
(223,559)
197,155
Total tax (credit)/charge
(163,215)
222,897

The actual (credit)/charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2024
2023
£
£
Profit before taxation
163,260
277,910
Expected tax charge based on the standard rate of corporation tax in the UK of 24.95% (2023: 19.38%)
40,733
53,859
Capital allowances in excess of depreciation
19,611
(28,117)
Deferred tax movement
(223,559)
197,155
Taxation (credit)/charge for the year
(163,215)
222,897
10
Intangible fixed assets
Goodwill
£
Cost
At 1 May 2023 and 30 April 2024
555,000
Amortisation and impairment
At 1 May 2023 and 30 April 2024
555,000
Carrying amount
At 30 April 2024
-
0
At 30 April 2023
-
0
POWER HEALTH PRODUCTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 21 -
11
Tangible fixed assets
Freehold land and buildings
Plant and equipment
Fixtures and fittings
Computers
Total
£
£
£
£
£
Cost or valuation
At 1 May 2023
4,822,083
2,672,935
44,609
299,919
7,839,546
Additions
-
0
93,826
4,315
30,136
128,277
Disposals
-
0
(11,280)
-
0
-
0
(11,280)
At 30 April 2024
4,822,083
2,755,481
48,924
330,055
7,956,543
Depreciation and impairment
At 1 May 2023
-
0
1,969,766
44,400
259,145
2,273,311
Depreciation charged in the year
78,450
120,597
46
10,930
210,023
Eliminated in respect of disposals
-
0
(1,504)
-
0
-
0
(1,504)
At 30 April 2024
78,450
2,088,859
44,446
270,075
2,481,830
Carrying amount
At 30 April 2024
4,743,633
666,622
4,478
59,980
5,474,713
At 30 April 2023
4,822,083
703,169
209
40,774
5,566,235

Value of land within freehold land and buildings consisted of £170,000.

 

 

The revaluation surplus is disclosed in note 20.

The following assets are carried at valuation. If the assets were measured using the cost model, the carrying amounts would be as follows:

Freehold Property
2024
2023
£
£
Cost
3,922,520
3,922,520
12
Fixed asset investments
2024
2023
£
£
Unlisted investments
14,641
14,641
POWER HEALTH PRODUCTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 22 -
13
Stocks
2024
2023
£
£
Raw materials and consumables
1,641,378
1,735,239
Finished goods and goods for resale
277,229
191,202
1,918,607
1,926,441
14
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
874,053
936,176
Corporation tax recoverable
88,218
79,769
Other debtors
316,606
290,103
Prepayments and accrued income
104,467
116,860
1,383,344
1,422,908
15
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
668,335
1,035,533
Corporation tax
69,289
105,511
Other taxation and social security
125,266
100,062
Other creditors
15,892
15,892
Accruals and deferred income
129,017
92,465
1,007,799
1,349,463
16
Creditors: amounts falling due after more than one year
2024
2023
£
£
Amounts owed to group undertakings
73,985
73,985
POWER HEALTH PRODUCTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 23 -
17
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
179,340
402,899
Revaluations
224,891
224,891
404,231
627,790
2024
Movements in the year:
£
Liability at 1 May 2023
627,790
Credit to profit or loss
(223,559)
Liability at 30 April 2024
404,231
18
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
64,838
84,963

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund. As at 30 April 2024 there was £10,298 outstanding contributions (2023 £13,090).

19
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of £1 each
10,500
10,500
10,500
10,500
20
Revaluation reserve
2024
2023
£
£
At the beginning and end of the year
728,646
728,646
POWER HEALTH PRODUCTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 24 -
21
Profit and loss reserves
2024
2023
£
£
At the beginning of the year
7,405,342
7,350,329
Profit for the year
326,475
55,013
At the end of the year
7,731,817
7,405,342
22
Financial commitments, guarantees and contingent liabilities

There is a guarantee in favour of HMRC for deferred duty of £10,000.

23
Directors' transactions

Advances or credits have been granted by the company to its directors as follows:

24
Ultimate controlling party

The controlling party is Mrs A C McIver.

25
Cash generated from operations
2024
2023
£
£
Profit for the year after tax
326,475
55,013
Adjustments for:
Taxation (credited)/charged
(163,215)
222,897
Finance costs
4,318
-
0
Investment income
(35,701)
(17,429)
Gain on disposal of tangible fixed assets
(1,504)
-
Depreciation and impairment of tangible fixed assets
210,023
112,223
Movements in working capital:
Decrease/(increase) in stocks
7,834
(232,021)
Decrease in debtors
74,516
182,590
Decrease in creditors
(305,442)
(17,232)
Cash generated from operations
117,304
306,041
26
Analysis of changes in net funds
1 May 2023
Cash flows
30 April 2024
£
£
£
Cash at bank and in hand
1,265,501
(99,828)
1,165,673
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