Year Ended
Registration number:
Pet Mate Ltd
Contents
Company Information |
|
Strategic Report |
|
Directors' Report |
|
Statement of Directors' Responsibilities |
|
Independent Auditor's Report |
|
Statement of Income and Retained Earnings |
|
Balance Sheet |
|
Statement of Cash Flows |
|
Notes to the Financial Statements |
Pet Mate Ltd
Company Information
Directors |
G B Phillips M W G Stead |
Registered office |
|
Auditors |
|
Pet Mate Ltd
Strategic Report for the Year Ended 31 January 2024
The directors present their strategic report for the year ended 31 January 2024.
Principal activity
The principal activity of the company is the designing, sourcing, manufacture and sale of pet products that enhance the lives of pets and their families.
Fair review of the business
Pet Mate has a long trading history within the pet accessory market. Having been founded in 1986 the company has enjoyed historic growth across Europe, the USA & the UK. In the last 3 years the business strategy changed and as a consequence overall debt rose to unmanageable levels, coupled with the dramatic increase in servicing that debt.
Turnover for the year has increased from £11,603k in 2023 to £12,239,683 to £12,240k, whilst gross profit margin has decreased from 38.48% to 36.47%.
Administrative expenses have increased from £4,754k in 2023 to £9,194k. As explained in note 5, much of the increase in administrative expenses is due to an exceptional provision against a balance due from a group undertaking (£3,755k) and an exceptional impairment charge against capitalised development costs (£506k).
Despite the exceptional items above, the balance sheet shows net current assets of £1,496k and net assets of £2,052k. Cash at bank has decreased from £649k in 2023 to £481k in 2024.
In March 2024 Pet Mate Ltd went through a refinancing process which resulted in the overall debt position reducing significantly. The current debt level in the business is now at a sustainable level.
Later in 2024, the Board recruited a new CEO and CFO to lead the business through its recovery and back to growth. A new 3 year plan has been agreed and the management team are focussed on developing a range of new products, to sit alongside the core ranges and grow new routes to market, across the globe.
The strategy has focussed on improvements in fundamentals such as gross margin improvement, significant cost control and working capital initiatives. Business KPIs indicate that these areas of focus are working. Pet Mate should deliver a final EBITDA of £1.16m for FY25.
Cash remains closely monitored and the strategy over the next 3 years including any CAPEX requirements as well as servicing the current debt is self-funding.
On behalf of the Board we would like to thank all our colleagues for their dedication and support during a challenging year, they are our biggest asset.
The key performance indicators of the business are turnover, gross margin and operating profit/(loss), which are detailed in the statement of income and retained earnings on page 10. No further KPI analysis is considered necessary for an understanding of the development, performance and position of the company.
Pet Mate Ltd
Strategic Report for the Year Ended 31 January 2024
Principal risks and uncertainties
The board has a policy of continuous identification and review of key business risks and oversees the development of processes to ensure that these risks are manged appropriately.
Sales to Amazon account for the majority of overall revenue. Due to the cost and compliance risks associated with selling via Amazon the business manages the account closely. The 3 year strategy aims to significantly reduce the overall proportion of sales via the Amazon channel.
The company generally allows customers to pay in their own currencies. As a result, the company is exposed to currency risks associated with accounts receivables denominated in foreign currency. Production is predominantly denominated in US Dollars and whilst a significant percentage is subject to a natural hedge from our US Dollar denominated sales there is an underlying risk.
The company does not enter into any derivative instruments for hedging or other purposes.
Finally the company is reliant on its people to drive the strategic business plan and future success of the business. It is a highly motivated team who are confident of delivering the plan.
Approved by the
......................................... |
Pet Mate Ltd
Directors' Report for the Year Ended 31 January 2024
The directors present their report and the financial statements for the year ended 31 January 2024.
Directors of the company
The directors who held office during the year were as follows:
The following directors were appointed after the year end:
Objectives and policies
The company's principal financial instruments comprise bank balances, trade and other debtors and creditors.
The directors have reviewed the financial risk management objectives and policies of the company and do not believe there to be significant risks in this area. The company does not enter into any hedging instruments, as it does not believe there to be any material exposures. It does not enter into any financial instruments for speculative purposes.
The company manages liquidity by maintaining adequate cash balances.
Appropriate trade terms are negotiated with suppliers and customers. Management reviews these terms and the relationships with suppliers and customers and manages any exposure on normal trade terms.
Disclosure of information to the auditors
Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.
Approved by the
......................................... |
Pet Mate Ltd
Statement of Directors' Responsibilities
The directors acknowledge their responsibilities 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:
• |
select suitable accounting policies and apply them consistently; |
• |
make judgements and accounting estimates that are reasonable and prudent; |
• |
state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and |
• |
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's 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.
Pet Mate Ltd
Independent Auditor's Report to the Members of Pet Mate Ltd
Opinion
We have audited the financial statements of Pet Mate Ltd (the 'company') for the year ended 31 January 2024, which comprise the Statement of Income and Retained Earnings, Balance Sheet, Statement of Cash Flows, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
• | give a true and fair view of the state of the company's affairs as at 31 January 2024 and of its loss for the year then ended; |
• | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
• | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor 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 director's 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 original financial statements were authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Other information
The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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.
Pet Mate Ltd
Independent Auditor's Report to the Members of Pet Mate Ltd
Opinion on other matter 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 Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
• |
the Strategic Report and 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 our 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 and the Directors' Report.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
• | adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or |
• | the financial statements are not in agreement with the accounting records and returns; or |
• | certain disclosures of directors' remuneration specified by law are not made; or |
• | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page 5, 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 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.
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, are as follows:
Pet Mate Ltd
Independent Auditor's Report to the Members of Pet Mate Ltd
As part of our audit planning, we obtained an understanding of the legal and regulatory framework
that is applicable to the company. We gained an understanding of the company and the industry in
which the company operates as part of this assessment to identify the key laws and regulations
affecting the company. We also considered those laws and regulations that have a direct impact on
the preparation of the financial statements such as the Companies Act 2006 and relevant tax
legislation.
We discussed with management how the compliance with these laws and regulations is monitored
and obtained copies of the key policies and procedures in place. We also identified the individuals
who have responsibility for ensuring that the company complies with laws and regulations and deals
with reporting any issues if they arise. As part of our planning procedures, we assessed the risk of any non-compliance with laws and regulations on the company’s ability to continue trading and the risk of material misstatement to the accounts.
We also evaluated managements' incentives and opportunities for fraudulent manipulation of the
financial statements. The key incentive identified is to meet targets set by the company and financial
covenants set by the group's bank, or management bias in accounting estimates. In common with all audits
under ISAs (UK), we are also required to perform specific procedures to respond to the risk of
management override.
Based on this understanding we designed our audit procedures to identify irregularities. Our
procedures involved the following:
• Enquiries of management, regarding their knowledge of any non-compliance or
potential non-compliance with laws and regulations that could affect the financial statements;
• Review of board minutes;
• Review of GDPR policy and enquiries to management as to the occurrence and outcome of any reportable breaches;
• Review of any health and safety incidents which have been reported under The Reporting of
Injuries, Diseases and Dangerous Occurrences Regulations 2013 (“RIDDOR”) during the year;
•Reviewed legal and professional costs to identify any possible non-compliance of laws and
regulations;
• Challenging assumptions and judgements made by management in its significant accounting
estimates;
• 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;
• Testing the recognition of revenue and costs, in particular around the year end date; and
• Reviewing draft tax computations.
Pet Mate Ltd
Independent Auditor's Report to the Members of Pet Mate Ltd
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements. The risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate omissions, collusion, forgery, misrepresentations, or the override of internal controls. We are also less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s 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 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
......................................
Centenary House
Peninsula Park
Rydon Lane
EX2 7XE
Pet Mate Ltd
Statement of Income and Retained Earnings
Year Ended 31 January 2024
Note |
2024 |
(As restated) |
|
Turnover |
|
|
|
Cost of sales |
( |
( |
|
Gross profit |
|
|
|
Administrative expenses |
|||
Administrative expenses (excluding exceptional items) |
(4,933,593) |
(4,753,815) |
|
Exceptional administrative expenses |
(4,260,551) |
- |
|
Administrative expenses (including exceptional items) |
( |
( |
|
Other operating income |
|
|
|
Operating loss (before exceptional items) |
(423,200) |
(133,593) |
|
Operating loss (after exceptional items) |
( |
( |
|
Other interest receivable and similar income |
|
|
|
Loss before tax |
( |
( |
|
Taxation |
|
|
|
Loss for the financial year |
( |
( |
|
Retained earnings brought forward |
6,488,621 |
6,592,378 |
|
Retained earnings carried forward |
1,949,476 |
6,488,621 |
Pet Mate Ltd
Balance Sheet
31 January 2024
Note |
2024 |
2023 |
|
Fixed assets |
|||
Intangible assets |
|
|
|
Tangible assets |
|
|
|
|
|
||
Current assets |
|||
Stocks |
|
|
|
Debtors |
|
|
|
Cash at bank and in hand |
|
|
|
|
|
||
Creditors: Amounts falling due within one year |
( |
( |
|
Net current assets |
|
|
|
Total assets less current liabilities |
|
|
|
Provisions for liabilities |
- |
( |
|
Net assets |
|
|
|
Capital and reserves |
|||
Called up share capital |
|
|
|
Share premium reserve |
|
|
|
Profit and loss account |
|
|
|
Shareholders' funds |
|
|
Approved and authorised by the
......................................... |
Company Registration Number: 01971114
Pet Mate Ltd
Statement of Cash Flows
Year Ended 31 January 2024
Note |
2024 |
2023 |
|
Cash flows from operating activities |
|||
Loss for the year |
( |
( |
|
Adjustments to cash flows from non-cash items |
|||
Depreciation and amortisation |
|
|
|
Intangible asset impairment |
505,734 |
- |
|
Provision against intercompany debtor |
3,754,817 |
- |
|
Loss on disposal of tangible assets |
|
- |
|
Finance income |
( |
( |
|
Income tax expense |
( |
( |
|
( |
|
||
Working capital adjustments |
|||
Decrease in stocks |
|
|
|
(Increase)/decrease in trade debtors |
( |
|
|
Increase/(decrease) in trade creditors |
|
( |
|
Net cash flow from operating activities |
|
|
|
Cash flows from investing activities |
|||
Interest received |
|
|
|
Acquisitions of tangible assets |
( |
( |
|
Proceeds from sale of tangible assets |
|
- |
|
Acquisition of intangible assets |
( |
( |
|
Net cash flows from investing activities |
( |
( |
|
Net decrease in cash and cash equivalents |
( |
( |
|
Cash and cash equivalents at 1 February |
|
|
|
Cash and cash equivalents at 31 January |
481,121 |
649,313 |
Pet Mate Ltd
Notes to the Financial Statements
Year Ended 31 January 2024
General information |
The company is a private company limited by share capital, incorporated in England and Wales.
The address of its registered office is:
These financial statements were authorised for issue by the
Accounting policies |
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
The Company's financial statements have been prepared in accordance with FRS102 - the Financial Reporting Standard applicable in the UK and Republic of Ireland.
Basis of preparation
These financial statements have been prepared using the historical cost convention, modified to include certain items at fair value.
The functional currency is considered to be pounds sterling because that is the currency of the primary economic environment in which the company operates.
Prior period restatement
A prior period restatement has been made in respect of the year ended 31 January 2023 to reclassify a stock provision of £513,530 from administrative expenses to cost of sales. This restatement has had no impact on the overall result for the period or the balance sheet.
Pet Mate Ltd
Notes to the Financial Statements
Year Ended 31 January 2024
Going concern
The Company made a loss of £4,539,145 after tax for the year, which did include an exceptional impairment charge of £505,734 in relation to capitalised development costs, and a provision against intercompany debt of £3,754,817.
As at 31 January 2024, the company had net current assets of £1,496,114 and net assets of £2,052,045. The company is however part of a group which was heavily indebted and required significant funds to service the debt. In light of this, a refinancing package was agreed in March 2024, which significantly reduced both the capital interest commitment of the group, with no interest being payable until March 2025 and minimum cash hurdles to be met before capital repayments have to be made. Additional cash funding of £1.26m was also injected into the group in exchange for loan notes issued by another group company, which are redeemable in 2028.
Recognising recent trading results and the lack of substantial cash reserves in the business or availability of additional facilities, the directors continue to closely monitor cash flow through the regular updating of a weekly cash flow forecast.
The directors have also prepared financial and cash flow forecasts for the period to 31 January 2026, which are being regularly reviewed and updated. It is the opinion of the directors that these forecasts have been prepared on a conservative basis, factoring in very limited sales growth from sales achieved in the year end 31 January 2025, which was a challenging year for the business. No sales growth has been forecast for the period January to March 2025, which the directors consider to be conservative. These forecasts are not reliant on receipt of the intercompany balances provided against as noted above. Based on these forecasts, there is sufficient headroom to enable the company to continue to operate and meet its liabilities.
Recognising that there can be no certainty in respect of meeting the forecasts, the directors are satisfied that, having made all necessary enquiries, that the company has adequate resources to continue in operational existence for the foreseeable future, and are satisfied that it remains appropriate to adopt the going concern basis in preparing these financial statements.
Pet Mate Ltd
Notes to the Financial Statements
Year Ended 31 January 2024
Key sources of estimation uncertainty
In preparing these financial statements, the directors make estimates and exercise judgement concerning the future. The resulting estimates may, by definition, vary from the actual results. The directors consider the main areas of accounting estimates and judgements used in these financial statements to be as follows.
Stock provision
The directors have concluded that a stock provision is necessary, determined through an assessment of all slow-moving stock lines during the year and post-year end. Stock items are classified as slow-moving if they are expected to take more than 12 months to sell. These items are categorised based on their post-year-end movement, with each category assigned a provision percentage of 100%, 75%, or 50%. This analysis has led to a total provision of £550,223 to be recognized as of 31 January 2024.
Development costs
During the year, development costs were assessed to determine whether they met the definition of being an intangible asset. In addition, at the balance sheet date, development costs were reviewed for any indication of impairment. The method for calculating an impairment is as follows: If an indication of impairment has occurred, the recoverable amount of any affected asset is estimated and compared with its carrying amount. If the estimated recoverable amount is lower, the carrying amount is reduced accordingly, and an impairment loss is recognised immediately in the profit or loss. If an impairment loss is subsequently reversed, the carrying amount of the asset is increased to be the revised estimate of its recoverable amount, but not in excess of the amount that would have been determined had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised immediately in the profit or loss. At the year end, the company has fully impaired a development cost asset and an impairment of £505,734 was recognised within administrative expenses.
Pet Mate Ltd
Notes to the Financial Statements
Year Ended 31 January 2024
Revenue recognition
Turnover comprises the fair value of the consideration received or receivable for the sale of goods in the ordinary course of the company’s activities. Turnover is shown net of value added tax, returns, rebates and discounts. In the prior year, discounts allowed had been included within cost of sales but these have been reanalysed to turnover this year in line with the accounting policy. Turnover is recognised when the risks and rewards of the goods are transferred to the customer, usually on delivery and acceptance by the customer.
Sales of goods
Revenue for the sale of goods is recognised when all of the following conditions are satisfied:
• the Company has transferred the significant risks and rewards of ownership to the buyer;
• the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
• the amount of revenue can be measured reliably;
• it is probable that the Company will receive the consideration due under the transaction; and
• the costs incurred or to be incurred in respect of transaction can be measured reliably.
Turnover from the sale of goods is recognised either on dispatch or delivery depending on the inco terms agreed with customers.
Foreign currency transactions and balances
Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.
Tax
Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
Deferred tax is recognised on all timing differences at the balance sheet date unless indicated below. Timing differences are differences between taxable profits and the results as stated in the profit and loss account and other comprehensive income. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.
The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.
Pet Mate Ltd
Notes to the Financial Statements
Year Ended 31 January 2024
Tangible assets
Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
Depreciation
Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:
Asset class |
Depreciation method and rate |
Leasehold improvements |
Straight line basis over the lease term |
Plant and machinery |
10% - 20% |
Fixtures and fittings |
20% |
Office equipment |
20% |
Computer equipment |
20% |
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 and loss.
Intangible assets
Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any impairment losses.
All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed five years.
Amortisation
Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:
Asset class |
Amortisation method and rate |
Trademarks, patents and licenses |
4-5 years |
Computer software |
5 years |
Development cost |
5 years |
Development costs
The development costs capitalised relate to a project to develop the software for a new product. The costs in relation to this project were capitalised as it was technically feasible and all other criteria for capitalisation have been met. During the year, the development costs were assessed for impairment and subsequently fully impaired.
Pet Mate Ltd
Notes to the Financial Statements
Year Ended 31 January 2024
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the weighted average method.
The cost of finished goods and work in progress 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. At each reporting date, stocks are assessed for impairment. If stocks are 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.
Leases
Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.
Interest income
Interest income is recognised in profit or loss using the effective interest method.
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
Financial instruments
Classification
Recognition and measurement
Financial instruments are recognised when the company becomes party to the contractual provisions of the instrument and derecognised when in the case of assets, the contractual rights to cash flows from the assets expire or substantially all the risks and rewards of ownership are transferred to another party, or in the case of liabilities, when the company’s obligations are discharged, expire or are cancelled.
Such instruments are initially measured at transaction price, including transaction costs, and are subsequently carried at the undiscounted amount of the cash or other consideration expected to be paid or received, after taking account of impairment adjustments.
Pet Mate Ltd
Notes to the Financial Statements
Year Ended 31 January 2024
Turnover |
The analysis of the company's Turnover for the year from continuing operations is as follows:
2024 |
2023 |
|
Sale of goods |
|
|
The analysis of the company's Turnover for the year by market is as follows:
2024 |
2023 |
|
UK |
|
|
Europe |
|
|
Rest of world |
|
|
|
|
Other operating income |
The analysis of the company's other operating income for the year is as follows:
2024 |
2023 |
|
Other operating income |
|
|
Pet Mate Ltd
Notes to the Financial Statements
Year Ended 31 January 2024
Operating loss |
Arrived at after charging/(crediting)
2024 |
2023 |
|
Depreciation expense |
|
|
Amortisation expense |
|
|
Research and development cost |
|
|
Foreign exchange losses |
|
|
Loss on disposal of property, plant and equipment |
|
- |
Exceptional item - Impairment of capitalised development costs |
|
- |
Exceptional item - Provision against intercompany debtors |
3,754,817 |
- |
An exceptional impairment charge of £505,734 has been recognised in respect of capitalised development costs, following an impairment review undertaken by the directors.
An exceptional provision has been made against amounts due from a group undertaking of £3,754,817, on the basis that the timing and likelihood of receipt in respect of this balance is uncertain.
Staff costs |
The aggregate payroll costs (including directors' remuneration) were as follows:
2024 |
2023 |
|
Wages and salaries |
|
|
Social security costs |
|
|
Pension costs, defined contribution scheme |
|
|
|
|
The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:
2024 |
2023 |
|
Production |
|
|
Administration and support |
|
|
|
|
Pet Mate Ltd
Notes to the Financial Statements
Year Ended 31 January 2024
Directors' remuneration |
The directors' remuneration for the year was as follows:
2024 |
2023 |
|
Remuneration |
|
|
Contributions paid to money purchase schemes |
|
|
231,145 |
133,339 |
In respect of the highest paid director:
2024 |
2023 |
|
Remuneration |
|
|
Company contributions to money purchase pension schemes |
|
|
Auditor's remuneration |
2024 |
2023 |
|
Audit of the financial statements |
|
|
Other interest receivable and similar income |
2024 |
2023 |
|
Other finance income |
|
|
Pet Mate Ltd
Notes to the Financial Statements
Year Ended 31 January 2024
Taxation |
Tax charged/(credited) in the profit and loss account
2024 |
2023 |
|
Deferred taxation |
||
Arising from origination and reversal of timing differences |
( |
( |
The tax on profit before tax for the year is higher than the standard rate of corporation tax in the UK (2023 - lower than the standard rate of corporation tax in the UK) of
The differences are reconciled below:
2024 |
2023 |
|
Loss before tax |
( |
( |
Corporation tax at standard rate |
( |
( |
Tax increase/(decrease) from effect of capital allowances and depreciation |
|
( |
Effect of expense not deductible in determining taxable profit (tax loss) |
|
|
Deferred tax expense from unrecognised tax loss or credit |
|
- |
Deferred tax credit relating to changes in tax rates or laws |
( |
( |
Tax (decrease)/increase from other tax effects |
( |
|
Total tax credit |
( |
( |
Deferred tax
Deferred tax assets and liabilities
2024 |
Asset |
Liability |
Accelerated capital allowances |
- |
|
Tax losses carried forwards |
|
- |
Other differences |
|
- |
|
|
2023 |
Asset |
Liability |
Accelerated capital allowances |
- |
|
Tax losses carried forwards |
|
- |
Other differences |
|
- |
|
|
Pet Mate Ltd
Notes to the Financial Statements
Year Ended 31 January 2024
Intangible assets |
Development cost |
Trademarks, patents and licenses |
Computer software |
Total |
|
Cost or valuation |
||||
At 1 February 2023 |
|
|
|
|
Additions |
|
|
- |
|
Transfers in the year |
- |
- |
(12,876) |
(12,876) |
At 31 January 2024 |
|
|
|
|
Amortisation |
||||
At 1 February 2023 |
|
|
|
|
Amortisation charge |
|
|
|
|
Impairment |
|
- |
- |
|
At 31 January 2024 |
|
|
|
|
Carrying amount |
||||
At 31 January 2024 |
- |
|
|
|
At 31 January 2023 |
|
|
|
|
Pet Mate Ltd
Notes to the Financial Statements
Year Ended 31 January 2024
Tangible assets |
Leasehold improvements |
Plant and machinery |
Fixtures and fittings |
Office equipment |
Computer equipment |
Total |
|
Cost or valuation |
||||||
At 1 February 2023 |
|
|
|
|
|
|
Additions |
|
|
- |
- |
|
|
Transfers in the year |
- |
- |
- |
12,876 |
- |
12,876 |
Disposals |
- |
( |
- |
- |
- |
( |
At 31 January 2024 |
|
|
|
|
|
|
Depreciation |
||||||
At 1 February 2023 |
|
|
|
|
|
|
Charge for the year |
|
|
|
|
|
|
Eliminated on disposal |
- |
( |
- |
- |
- |
( |
At 31 January 2024 |
|
|
|
|
|
|
Carrying amount |
||||||
At 31 January 2024 |
|
|
|
|
|
|
At 31 January 2023 |
|
|
|
|
|
|
Stocks |
2024 |
2023 |
|
Components and goods for resale |
|
|
Debtors |
2024 |
2023 |
|
Trade debtors |
|
|
Amounts owed by group undertakings |
- |
|
Other debtors |
|
|
Prepayments and accrued income |
|
|
|
|
Pet Mate Ltd
Notes to the Financial Statements
Year Ended 31 January 2024
Cash and cash equivalents |
2024 |
2023 |
|
Cash on hand |
|
- |
Cash at bank |
|
|
|
|
Creditors |
Note |
2024 |
2023 |
|
Due within one year |
|||
Trade creditors |
|
|
|
Amounts due to group undertakings |
|
- |
|
Social security and other taxes |
|
|
|
Other creditors |
|
|
|
Accruals |
|
|
|
|
|
Obligations under leases and hire purchase contracts |
Operating leases
The total of future minimum lease payments is as follows:
2024 |
2023 |
|
Not later than one year |
|
|
Later than one year and not later than five years |
|
|
Later than five years |
- |
|
|
|
The amount of non-cancellable operating lease payments recognised as an expense during the year was £
Provisions for liabilities |
Deferred tax |
Total |
|
At 1 February 2023 |
|
|
Increase (decrease) in existing provisions |
( |
( |
At 31 January 2024 |
- |
- |
|
Pet Mate Ltd
Notes to the Financial Statements
Year Ended 31 January 2024
Share capital |
Allotted, called up and fully paid shares
2024 |
2023 |
|||
No. |
£ |
No. |
£ |
|
|
|
13,312 |
|
13,312 |
|
|
14,188 |
|
14,188 |
|
|
42,550 |
|
42,550 |
|
|
|
|
Financial guarantee contracts |
Cross guarantee existed at 31 January 2024 and 31 January 2023 in respect of guarantees given by the company on behalf of a group company Pet Mate Finance Ltd to Shawbrook Bank Ltd. Shawbrook Bank Ltd has a first legal charge on the company's real property including its intellectual property. In addition there is an unscheduled mortgage debenture incorporating a fixed and floating charge over all present and future assets of the company. At the year end, Pet Mate Finance Limited had bank loans of £8,152,072.
Non adjusting events after the financial period |
|
Parent and ultimate parent undertaking |
The company's immediate parent is
The ultimate parent is
As at the year end, the company's ultimate parent was Pet Mate Holdco Limited, incorporated in England & Wales.
The group is small and therefore does not prepare group accounts.
Pension and other schemes |
Defined contribution pension scheme
The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £
Pet Mate Ltd
Notes to the Financial Statements
Year Ended 31 January 2024
Related party transactions |
In accordance with FRS 102 paragraph 33.1A the entity has not disclosed transactions entered into between two or more members of a group.
During the period, management fees of £186,153 (2023 - £165,436) were paid to an entity with significant influence over Pet Mate Limited. At the year end £37,231 (2023 - £33,087) was included within trade creditors.