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Registration number: 10244781

Prepared for the registrar

Pepperells Limited

Annual Report and Unaudited Financial Statements

for the Year Ended 30 April 2024

 

Pepperells Limited

Contents

Company Information

1

Balance Sheet

2

Notes to the Unaudited Financial Statements

3 to 10

 

Pepperells Limited

Company Information

Directors

S J Davies

D J Kemshall

B S Pepperell

S W Pepperell

S Ahmed

S I Orridge

Registered office

100 Alfred Gelder Street
Hull
East Yorkshire
HU1 2AE

Accountants

Hazlewoods LLP
Windsor House
Bayshill Road
Cheltenham
GL50 3AT

 

Pepperells Limited

(Registration number: 10244781)
Balance Sheet as at 30 April 2024

Note

2024
£

2023
£

Fixed assets

 

Intangible assets

4

955,501

1,029,001

Tangible assets

5

411,178

454,008

 

1,366,679

1,483,009

Current assets

 

Debtors

6

3,230,028

2,900,810

Cash at bank and in hand

 

178,748

132,393

 

3,408,776

3,033,203

Creditors: Amounts falling due within one year

7

(2,568,818)

(2,131,888)

Net current assets

 

839,958

901,315

Total assets less current liabilities

 

2,206,637

2,384,324

Creditors: Amounts falling due after more than one year

7

(667,246)

(267,093)

Deferred tax liabilities

8

(21,722)

(48,113)

Net assets

 

1,517,669

2,069,118

Capital and reserves

 

Called up share capital

200

300

Capital redemption reserve

100

-

Profit and loss account

1,517,369

2,068,818

Shareholders' funds

 

1,517,669

2,069,118

For the financial year ending 30 April 2024 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476; and

The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime and the option not to file the Profit and Loss Account has been taken.

Approved and authorised by the Board on 29 January 2025 and signed on its behalf by:
 


B S Pepperell
Director

 

Pepperells Limited

Notes to the Unaudited Financial Statements for the Year Ended 30 April 2024

 

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
100 Alfred Gelder Street
Hull
East Yorkshire
HU1 2AE

 

2

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

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A smaller entities - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006 (as applicable to companies subject to the small companies' regime).

Basis of preparation

These financial statements have been prepared using the historical cost convention except for, where disclosed in these accounting policies, certain items that are shown at fair value.

The presentational currency of the financial statements is Pounds Sterling, being the functional currency of the primary economic environment in which the company operates. Monetary amounts in these financial statements are rounded to the nearest Pound.

Critical accounting 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 amounts 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
 

Judgements

No significant judgements have been made by management in preparing these financial statements.

Key sources of estimation uncertainty

Amounts recoverable on contracts - The process of assessing amounts recoverable on contracts requires various estimates and judgements to be made. Fee earners are required to record time spent on client assignments and this is used as the basis for the amounts recoverable on contracts and work in progress estimates. At the year end, the work in progress per the system is adjusted for balances greater than 180 days old and a recovery rate is applied. The carrying amount is £1,680,251 (2023 - £1,777,842).

Bad debt provision - due to the nature of the business, there are high levels of trade receivables at the year end, and therefore a risk that some of these balances maybe irrecoverable. A bad debt review is carried out, where debts are assessed and provided against when recoverability of these balances is considered to be uncertain. The carrying amount is £54,186 (2023 - £37,753).

 

Pepperells Limited

Notes to the Unaudited Financial Statements for the Year Ended 30 April 2024

Revenue recognition

Turnover represents the fair value of services provided during the year on client assignments. Fair value reflects the amounts expected to be recoverable from clients based on time spent, skills provided and expenses incurred, and excludes VAT.

Turnover is recognised as contract activity progresses and the right consideration is secured, except where the final outcome cannot be assessed with reasonable certainty.

Turnover in respect of contingent fee assignments is recognised in the period when the contingent event occurs and collectability of the fee is assured.

Unbilled turnover on individual client assignments is included as amounts recoverable on long term contracts within debtors.

Tax

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

The current 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 operates and generates taxable income.

Deferred tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements and on unused tax losses or tax credits in the company. Deferred income 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.

Tangible assets

Tangible assets are stated in the statement of financial position 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 property

15 years straight line

Motor vehicles

20% reducing balance

Fixtures and fittings

5 years straight line

Office equipment

25% reducing balance

Computer equipment

3 years straight line

Goodwill

Goodwill is amortised over its useful life, which shall not exceed five years if a reliable estimate of the useful life cannot be made.

Intangible assets

Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the company’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each reporting period date.

Negative goodwill arising on an acquisition is recognised on the face of the balance sheet on the acquisition date and subsequently the excess up to the fair value of non-monetary assets acquired is recognised in profit or loss in the periods in which the non-monetary assets are recovered.

 

Pepperells Limited

Notes to the Unaudited Financial Statements for the Year Ended 30 April 2024

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

Goodwill

5% of cost per annum

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. All trade debtors are repayable within one year and hence are included at the undiscounted cost of cash expected to be received. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the debtors.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and all are repayable within one year and hence are included at the undiscounted amount of cash expected to be paid.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

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.

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.

Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the Balance Sheet as a finance lease obligation.

Lease payments are apportioned between finance costs in the Profit and Loss Account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

 

Pepperells Limited

Notes to the Unaudited Financial Statements for the Year Ended 30 April 2024

Dividends

Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

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
Financial instruments are classified and accounted for according to the substance of the contractual arrangement, as financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. Where shares are issued, any component that creates a financial liability of the company is presented as a liability on the balance sheet. The corresponding dividends relating to the liability component are charged as interest expenses in the profit and loss account.


Recognition and measurement
All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.


Impairment
Assets, other than those measured at fair value, are assessed for indicators of impairment at each balance sheet date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss as described below.

A non financial asset is impaired where there is objective evidence that, as a result of one or more events that occurred after initial recognition, the estimated recoverable value of the asset has been reduced. The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use.

The recoverable amount of goodwill is derived from measurement of the present value of the future cash flows of the cash-generating units ('CGUs') of which the goodwill is a part. Any impairment loss in respect of a CGU is allocated first to the goodwill attached to that CGU, and then to other assets within that CGU on a pro-rata basis.

Where indicators exist for a decrease in impairment loss, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised. Where a reversal of impairment occurs in respect of a CGU, the reversal is applied first to the assets (other than goodwill) of the CGU on a pro-rata basis and then to any goodwill allocated to that CGU.

For financial assets carried at amortised cost, the amount of an impairment is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the financial asset’s original effective interest rate.

For financial assets carried at cost less impairment, the impairment loss is the difference between the asset’s carrying amount and the best estimate of the amount that would be received for the asset if it were to be sold at the reporting date.

Where indicators exist for a decrease in impairment loss, and the decrease can be related objectively to an event occurring after the impairment was recognised, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired financial asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised.

 

Pepperells Limited

Notes to the Unaudited Financial Statements for the Year Ended 30 April 2024

 

3

Staff numbers

The average number of persons employed by the company (including directors) during the year, was 175 (2023 - 163).

 

4

Intangible assets

Goodwill
 £

Cost

At 1 May 2023 and 30 April 2024

1,470,001

Amortisation

At 1 May 2023

441,000

Amortisation charge

73,500

At 30 April 2024

514,500

Carrying amount

At 30 April 2024

955,501

At 30 April 2023

1,029,001

 

5

Tangible assets

Land and buildings
£

Furniture, fittings and equipment
 £

Motor vehicles
 £

Total
£

Cost

At 1 May 2023

30,000

434,865

248,087

712,952

Additions

-

40,976

79,645

120,621

Disposals

(30,000)

-

-

(30,000)

At 30 April 2024

-

475,841

327,732

803,573

Depreciation

At 1 May 2023

5,167

213,306

40,471

258,944

Charge for the year

-

89,130

49,488

138,618

Eliminated on disposal

(5,167)

-

-

(5,167)

At 30 April 2024

-

302,436

89,959

392,395

Carrying amount

At 30 April 2024

-

173,405

237,773

411,178

At 30 April 2023

24,833

221,559

207,616

454,008

Included within the net book value of land and buildings above is £Nil (2023 - £24,833) in respect of leasehold land and buildings.
 

 

6

Debtors

 

Pepperells Limited

Notes to the Unaudited Financial Statements for the Year Ended 30 April 2024

2024
 £

2023
 £

Trade debtors

782,345

563,905

Amounts owed by related parties

448,366

260,678

Prepayments

319,066

298,385

Amounts recoverable on contracts

1,680,251

1,777,842

 

3,230,028

2,900,810

 

Pepperells Limited

Notes to the Unaudited Financial Statements for the Year Ended 30 April 2024

 

7

Creditors

Note

2024
 £

2023
 £

Due within one year

 

Loans and borrowings

9

968,186

810,874

Trade creditors

 

644,316

560,400

Social security and other taxes

 

691,459

554,578

Outstanding defined contribution pension costs

 

24,979

20,705

Other creditors

 

-

44,299

Accrued expenses

 

63,286

26,209

Corporation tax liability

176,592

114,823

 

2,568,818

2,131,888

Note

2024
£

2023
£

Due after one year

 

Loans and borrowings

9

667,246

258,656

Other non-current financial liabilities

 

-

8,437

 

667,246

267,093

 

8

Deferred tax

Deferred tax assets and liabilities

2024

Asset
£

Liability
£

Accelerated tax depreciation

-

24,709

Short term timing differences

2,987

-

2,987

24,709

2023

Asset
£

Liability
£

Accelerated tax depreciation

-

50,602

Short term timing differences

2,489

-

2,489

50,602

 

Pepperells Limited

Notes to the Unaudited Financial Statements for the Year Ended 30 April 2024

 

9

Loans and borrowings

2024
£

2023
£

Current loans and borrowings

Bank borrowings (secured)

10,593

162,083

Bank overdrafts

366,280

265,862

HP and finance lease liabilities

85,360

73,232

Other borrowings

505,953

309,697

968,186

810,874

2024
£

2023
£

Non-current loans and borrowings

Bank borrowings (secured)

140,896

-

HP and finance lease liabilities

114,250

110,866

Other borrowings

412,100

147,790

667,246

258,656

 

10

Financial commitments, guarantees and contingencies

Amounts not provided for in the balance sheet

The total amount of financial commitments not included in the balance sheet is £Nil (2023 - £Nil).

 

11

Related party transactions

Summary of transactions with other related parties

At 30 April 2024, the company was owed £448,366 (2023 - £260,678) from Pepperells Properties Ltd. The loan is interest free and repayable on demand. This company is controlled by the director B S Pepperell.