Company registration number 04044979 (England and Wales)
PATTERSONS (HOLDINGS) LIMITED GROUP ACCOUNTS
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
PATTERSONS (HOLDINGS) LIMITED GROUP ACCOUNTS
COMPANY INFORMATION
Directors
Mrs E Hogan
Mr C Patterson
Mr R Patterson
Mrs S Patterson
Mr K Tucker
(Appointed 11 September 2024)
Secretary
Mrs E Hogan
Company number
04044979
Registered office
Pattersons
Winterstoke Road
BRISTOL
BS3 2NS
Auditor
Old Mill Audit Limited
Maltravers House
Petters Way
YEOVIL
Somerset
BA20 1SH
PATTERSONS (HOLDINGS) LIMITED GROUP ACCOUNTS
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Group statement of comprehensive income
8
Group balance sheet
9 - 10
Company balance sheet
11
Group statement of changes in equity
12
Company statement of changes in equity
13
Group statement of cash flows
14
Notes to the financial statements
15 - 36
PATTERSONS (HOLDINGS) LIMITED GROUP ACCOUNTS
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

Pattersons (Holdings) Limited is the parent company of the consolidated group.

 

The year has not been without its challenges, with economic constraints impacting many of our customers, whom we have worked with extensively to find cost effective solutions for them in their demanding markets. This has impacted on turnover in the year.

 

Strong customer retention has been good to see, but the need for a more strategic approach to our sales function in 2025 has been recognised and acted upon.

 

During this year we have made the decision to invest in a new ERP/WMS system, which has been commissioned and we have a system implementation in progress. This considerable investment demonstrates the board’s full commitment to invest in both staff and resources to drive a more efficient and agile business

 

Work has continued beyond the balance sheet date to restructure the company debt, and this work was concluded in 2025.

Principal risks and uncertainties

The group’s risk management strategy focuses on the minimisation of risks for the group.

 

The principle risks and uncertainties that could impact on the group and the action taken to mitigate and address any impact are detailed as follows:

 

Economic Conditions

Although there is challenge in this area, mainly driven by inflation and interest rates, the flexibility of the group has risen to the occasion and will continue to do so.

 

Liquidity

The group’s financing requirements are regularly reviewed to ensure it is able to meet both its short and long-term liabilities, whatever the challenge.

Key performance indicators

Key performance indicators, including turnover, gross profit margin, distribution costs, salary costs and overhead proportions, are monitored, interpreted and challenged by the management on a regular basis.

Financial review

Group turnover decreased to £17.66m (2023: £17.72m).

 

The loss for the year, after taxation, amounted to £150,642 (2023: £650,857).

 

On behalf of the board

Mr C Patterson
Director
29 January 2025
PATTERSONS (HOLDINGS) LIMITED GROUP ACCOUNTS
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 and group continued to be that of the sale of cleaning and catering equipment.

Results and dividends

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

No ordinary dividends were paid. The directors do not recommend payment of a further dividend.

Directors

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

Mrs E Hogan
Mr C Patterson
Mr R Patterson
Mrs S Patterson
Mr K Tucker
(Appointed 11 September 2024)
Financial instruments
Financial risk management

The group has established a risk and financial management framework whose primary objectives are to protect the group from events that hinder the achievement of the company's performance objectives.

 

The objectives aim to limit undue counterparty exposure, ensure sufficient working capital exists and monitor the management of risk at a business unit level.

Credit risk, liquidity risk and cash flow risk

The group is exposed to a moderate level of credit risk, liquidity risk and cash flow risk. The group manages these risks by financing its operations through the continued support of its bankers and financers, supplemented by long term bank borrowings where necessary to fund expansion or capital expenditure programmes.

Auditor

Old Mill Audit Limited were appointed as auditor to the group and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.

Strategic report

The truegroup has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the group's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of financial risk management, credit risk, liquidity risk and cash flow risk.

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 auditor of the company 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 auditor of the company 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.

PATTERSONS (HOLDINGS) LIMITED GROUP ACCOUNTS
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 3 -
On behalf of the board
Mr C Patterson
Director
29 January 2025
PATTERSONS (HOLDINGS) LIMITED GROUP ACCOUNTS
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 group and company, and of the profit or loss of the group 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 group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

PATTERSONS (HOLDINGS) LIMITED GROUP ACCOUNTS
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF PATTERSONS (HOLDINGS) LIMITED GROUP ACCOUNTS
- 5 -
Opinion

We have audited the financial statements of Pattersons (Holdings) Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 April 2024 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group 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 group and parent 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 group's and parent company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

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

Other information

The other information comprises the information included in the annual report other than the financial statements and our 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:

PATTERSONS (HOLDINGS) LIMITED GROUP ACCOUNTS
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF PATTERSONS (HOLDINGS) LIMITED GROUP ACCOUNTS
- 6 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and their 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 parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the parent 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.

We gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates, and considered the risk of acts by the company that were contrary to applicable laws and regulations, including fraud. We designed audit procedures to respond to the risk, recognising that 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 concealment by, for example, forgery or intentional misrepresentations, or through collusion.

We focussed on laws and regulations which could give rise to a material misstatement in the financial statements, including, but not limited to, the Companies Act 2006 and UK tax legislation. Our tests included agreeing the financial statement disclosures to underlying supporting documentation and enquiries with management. There are inherent limitations in the audit procedures described above and, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. We did not identify any key audit matters relating to irregularities, including fraud. As in all our audits, we also addressed the risk of management override of internal controls, including testing journals and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud.

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.

PATTERSONS (HOLDINGS) LIMITED GROUP ACCOUNTS
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF PATTERSONS (HOLDINGS) LIMITED GROUP ACCOUNTS
- 7 -

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.

Philip Mills MSc BA ACA (Senior Statutory Auditor)
For and on behalf of
30 January 2025
Old Mill Audit Limited
Statutory Auditor
Maltravers House
Petters Way
YEOVIL
Somerset
BA20 1SH
PATTERSONS (HOLDINGS) LIMITED GROUP ACCOUNTS
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 APRIL 2024
- 8 -
2024
2023
Notes
£
£
Turnover
3
17,655,060
17,721,137
Cost of sales
(11,875,305)
(11,901,214)
Gross profit
5,779,755
5,819,923
Distribution costs
(129,507)
(122,583)
Administrative expenses
(5,065,665)
(4,795,872)
Operating profit
4
584,583
901,468
Interest receivable and similar income
8
13,374
7,473
Interest payable and similar expenses
9
(638,513)
(1,297,304)
Amounts written off investments
10
43,771
(48,172)
Profit/(loss) before taxation
3,215
(436,535)
Tax on profit/(loss)
11
(153,857)
(214,322)
Loss for the financial year
(150,642)
(650,857)
Loss for the financial year is attributable to:
- Owners of the parent company
(134,025)
(651,733)
- Non-controlling interests
(16,617)
876
(150,642)
(650,857)
Total comprehensive income for the year is attributable to:
- Owners of the parent company
(134,025)
(651,733)
- Non-controlling interests
(16,617)
876
(150,642)
(650,857)
PATTERSONS (HOLDINGS) LIMITED GROUP ACCOUNTS
GROUP BALANCE SHEET
AS AT
30 APRIL 2024
30 April 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Intangible assets
13
361,498
237,498
Tangible assets
14
3,928,491
3,977,730
Investments
15
10,852
10,852
4,300,841
4,226,080
Current assets
Stocks
17
1,744,374
1,769,311
Debtors
18
3,290,567
3,517,839
Investments
19
897,167
693,427
Cash at bank and in hand
88,652
17,510
6,020,760
5,998,087
Creditors: amounts falling due within one year
20
(3,658,358)
(3,458,625)
Net current assets
2,362,402
2,539,462
Total assets less current liabilities
6,663,243
6,765,542
Creditors: amounts falling due after more than one year
21
(4,226,001)
(4,177,633)
Provisions for liabilities
Provisions
23
5,091
5,091
Deferred tax liability
24
164,985
165,010
(170,076)
(170,101)
Net assets
2,267,166
2,417,808
Capital and reserves
Called up share capital
26
6,001
6,001
Share premium account
410,589
410,589
Capital redemption reserve
286,689
286,689
Other reserves
14,500
14,500
Profit and loss reserves
1,600,743
1,734,768
Equity attributable to owners of the parent company
2,318,522
2,452,547
Non-controlling interests
(51,356)
(34,739)
2,267,166
2,417,808

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

PATTERSONS (HOLDINGS) LIMITED GROUP ACCOUNTS
GROUP BALANCE SHEET (CONTINUED)
AS AT
30 APRIL 2024
30 April 2024
- 10 -
The financial statements were approved by the board of directors and authorised for issue on 29 January 2025 and are signed on its behalf by:
29 January 2025
Mr C Patterson
Director
Company registration number 04044979 (England and Wales)
PATTERSONS (HOLDINGS) LIMITED GROUP ACCOUNTS
COMPANY BALANCE SHEET
AS AT 30 APRIL 2024
30 April 2024
- 11 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
14
3,717,579
3,791,799
Investments
15
2,143,742
2,448,106
5,861,321
6,239,905
Current assets
Debtors
18
481,018
716,892
Creditors: amounts falling due within one year
20
(186,278)
(187,182)
Net current assets
294,740
529,710
Total assets less current liabilities
6,156,061
6,769,615
Creditors: amounts falling due after more than one year
21
(3,198,016)
(3,195,158)
Provisions for liabilities
Deferred tax liability
24
103,060
103,774
(103,060)
(103,774)
Net assets
2,854,985
3,470,683
Capital and reserves
Called up share capital
26
6,001
6,001
Share premium account
410,589
410,589
Profit and loss reserves
2,438,395
3,054,093
Total equity
2,854,985
3,470,683

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s loss for the year was £615,698 (2023 - £227,977 loss).

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 29 January 2025 and are signed on its behalf by:
29 January 2025
Mr C Patterson
Director
Company registration number 04044979 (England and Wales)
PATTERSONS (HOLDINGS) LIMITED GROUP ACCOUNTS
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 APRIL 2024
- 12 -
Share capital
Share premium account
Capital redemption reserve
Other reserves
Profit and loss reserves
Total controlling interest
Non-controlling interest
Total
Notes
£
£
£
£
£
£
£
£
Balance at 1 May 2022
6,001
410,589
-
0
14,500
2,952,775
3,383,865
(35,615)
3,348,250
Year ended 30 April 2023:
Loss and total comprehensive income
-
-
-
-
(651,733)
(651,733)
876
(650,857)
Dividends
12
-
-
-
-
(45,000)
(45,000)
-
(45,000)
Redemption of shares
26
-
-
286,689
-
(521,274)
(234,585)
-
(234,585)
Balance at 30 April 2023
6,001
410,589
286,689
14,500
1,734,768
2,452,547
(34,739)
2,417,808
Year ended 30 April 2024:
Loss and total comprehensive income
-
-
-
-
(134,025)
(134,025)
(16,617)
(150,642)
Balance at 30 April 2024
6,001
410,589
286,689
14,500
1,600,743
2,318,522
(51,356)
2,267,166
PATTERSONS (HOLDINGS) LIMITED GROUP ACCOUNTS
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 APRIL 2024
- 13 -
Share capital
Share premium account
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 May 2022
6,001
410,589
3,559,826
3,976,416
Year ended 30 April 2023:
Loss and total comprehensive income for the year
-
-
(227,977)
(227,977)
Dividends
12
-
-
(45,000)
(45,000)
Redemption of shares
26
-
-
(232,756)
(232,756)
Balance at 30 April 2023
6,001
410,589
3,054,093
3,470,683
Year ended 30 April 2024:
Profit and total comprehensive income
-
-
(615,698)
(615,698)
Balance at 30 April 2024
6,001
410,589
2,438,395
2,854,985
PATTERSONS (HOLDINGS) LIMITED GROUP ACCOUNTS
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 APRIL 2024
- 14 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
33
941,166
1,015,645
Interest paid
(638,513)
(1,297,304)
Income taxes paid
(100,284)
(514)
Net cash inflow/(outflow) from operating activities
202,369
(282,173)
Investing activities
Purchase of intangible assets
(186,194)
(122,254)
Purchase of tangible fixed assets
(97,278)
(109,491)
Proceeds from disposal of tangible fixed assets
1,500
29,968
Purchase of investments
(159,969)
-
Proceeds from disposal of investments
-
343,672
Interest received
3,406
1,145
Dividends received
9,968
6,328
Net cash (used in)/generated from investing activities
(428,567)
149,368
Financing activities
Redemption of shares
-
0
(234,585)
Repayment of preference shares
48,368
619,101
Repayment of bank loans
-
(49,743)
Dividends paid to equity shareholders
-
0
(50,000)
Net cash generated from financing activities
48,368
284,773
Net (decrease)/increase in cash and cash equivalents
(177,830)
151,968
Cash and cash equivalents at beginning of year
(207,024)
(358,992)
Cash and cash equivalents at end of year
(384,854)
(207,024)
Relating to:
Cash at bank and in hand
88,652
17,510
Bank overdrafts included in creditors payable within one year
(473,506)
(224,534)
PATTERSONS (HOLDINGS) LIMITED GROUP ACCOUNTS
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
- 15 -
1
Accounting policies
Company information

Pattersons (Holdings) Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is located at Winterstoke Road, Bristol, BS3 2NS.

 

The group consists of Pattersons (Holdings) Limited and all of its subsidiaries.

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 certain financial instruments at fair value. The principal accounting policies adopted are set out below.

1.2
Basis of consolidation

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

The consolidated group financial statements consist of the financial statements of the parent company Pattersons (Holdings) Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 30 April 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

PATTERSONS (HOLDINGS) LIMITED GROUP ACCOUNTS
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 16 -
1.3
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future.

 

As disclosed in note 30, the preference shares were bought back by the Company on 28th October 2024. In doing so, the Group has been able to reduce the financial burden that the preference share payment terms created. This action has been crucial in ensuring that the Group will have the liquidity to be able to continue with the strategy, balancing investment in the future of the business with a plan to return the Group to profitability. On this basis the directors are satisfied that it is appropriate to adopt the going concern basis of preparation.

1.4
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 on dispatch of the goods), 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.

1.5
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life of 5-10 years.

1.6
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

 

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

Amortisation 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:

Software
5 years straight line
1.7
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.

PATTERSONS (HOLDINGS) LIMITED GROUP ACCOUNTS
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 17 -

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% straight line
Leasehold improvements
Over the term of the lease
Plant and equipment
5 years straight line
Motor vehicles
5 years straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.

1.8
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

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

1.9
Impairment of fixed assets

At each reporting period end date, the group 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.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

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.

PATTERSONS (HOLDINGS) LIMITED GROUP ACCOUNTS
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 18 -
1.10
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. 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.

1.11
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.

1.12
Financial instruments

The group 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 group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and 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.

PATTERSONS (HOLDINGS) LIMITED GROUP ACCOUNTS
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 19 -
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 group 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 group after deducting all of its liabilities.

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 group's contractual obligations expire or are discharged or cancelled.

PATTERSONS (HOLDINGS) LIMITED GROUP ACCOUNTS
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 20 -
1.13
Equity instruments

Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs.

 

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

 

Dividends on shares recognised as liabilities are recognised as expenses and classified within interest payable.

1.14
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 group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

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 if, and only if, there is 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.

1.15
Provisions

Provisions are recognised when the group has a legal or constructive present obligation as a result of a past event, it is probable that the group will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

 

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

1.16
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.

PATTERSONS (HOLDINGS) LIMITED GROUP ACCOUNTS
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 21 -
1.17
Retirement benefits

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

1.18
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 leased asset are consumed.

2
Judgements and key sources of estimation uncertainty

In the application of the group’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.

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Depreciation and Amortisation

The directors use their knowledge of the business and the industry to estimate the useful life and residual of intangible and tangible fixed assets in order to arrive at an applicable depreciation and amortisation rates. In accordance with section 17 of FRS102, the directors review and update these estimates if there are indicators that current estimates should change. During the year there was no change in depreciation and amortisation rates.

 

It must be noted that there is inherent uncertainty with these estimates as factors such as unexpected wear and tear, technological advancement and changes in market price may result in future changes to the appropriate rate of depreciation.

Stock

The provision for obsolete and slow moving inventories is assessed on an item by item basis for damaged or slow moving stock.

Provision for bad and doubtful debts

Significant overdue items are assessed on the debtor's ledger with specific provision for debtors in financial difficulty.

3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Sales of goods
17,646,049
17,714,829
Sales of services
9,011
6,308
17,655,060
17,721,137
PATTERSONS (HOLDINGS) LIMITED GROUP ACCOUNTS
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
3
Turnover and other revenue
(Continued)
- 22 -
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
17,655,060
17,700,277
Rest of Europe
-
12,533
Rest of the world
-
8,327
17,655,060
17,721,137
2024
2023
£
£
Other revenue
Interest income
3,406
1,145
Dividends received
9,968
6,328
4
Operating profit
2024
2023
£
£
Operating profit for the year is stated after charging/(crediting):
Depreciation of owned tangible fixed assets
146,517
199,780
Profit on disposal of tangible fixed assets
(1,500)
(2,282)
Amortisation of intangible assets
62,194
74,835
Operating lease charges
157,832
201,659
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 group and company
3,600
3,300
Audit of the financial statements of the company's subsidiaries
27,216
24,888
30,816
28,188
For other services
All other non-audit services
24,192
21,804
PATTERSONS (HOLDINGS) LIMITED GROUP ACCOUNTS
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 23 -
6
Employees

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

Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
Administration and management
27
25
20
18
Selling and Distribution
71
69
-
-
Total
98
94
20
18

Their aggregate remuneration comprised:

Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
2,915,495
2,713,323
792,815
670,654
Social security costs
169,839
149,172
-
-
Pension costs
92,376
71,829
24,915
15,470
3,177,710
2,934,324
817,730
686,124
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
460,337
376,136
Company pension contributions to defined contribution schemes
15,126
13,270
475,463
389,406
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
118,745
102,422
Company pension contributions to defined contribution schemes
5,000
4,500

During the year retirement benefits were accruing to 4 directors (2023 - 4) in respect of defined contribution pension schemes.

PATTERSONS (HOLDINGS) LIMITED GROUP ACCOUNTS
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 24 -
8
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
3,406
1,145
Other income from investments
Dividends received
9,968
6,328
Total income
13,374
7,473
2024
2023
Investment income includes the following:
£
£
Dividends from financial assets measured at fair value through profit or loss
9,968
6,328
9
Interest payable and similar expenses
2024
2023
£
£
Interest on bank overdrafts and loans
20,269
24,605
Dividends on redeemable preference shares not classified as equity
249,588
280,688
Other interest on financial liabilities
344,239
975,024
Other interest
24,417
16,987
Total finance costs
638,513
1,297,304
10
Amounts written off investments
2024
2023
£
£
Fair value gains/(losses) on financial instruments
Gain/(loss) on financial assets held at fair value through profit or loss
43,771
(48,172)
11
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
153,882
98,296
Adjustments in respect of prior periods
-
0
57,431
Total current tax
153,882
155,727
PATTERSONS (HOLDINGS) LIMITED GROUP ACCOUNTS
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
11
Taxation
2024
2023
£
£
(Continued)
- 25 -
Deferred tax
Origination and reversal of timing differences
(25)
58,595
Total tax charge
153,857
214,322

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

2024
2023
£
£
Profit/(loss) before taxation
3,215
(436,535)
Expected tax charge/(credit) based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.49%)
804
(85,081)
Tax effect of expenses that are not deductible in determining taxable profit
153,341
255,081
Tax effect of income not taxable in determining taxable profit
(62,157)
-
0
Adjustments in respect of prior years
-
0
57,431
Effect of change in corporation tax rate
-
(586)
Group relief
-
0
(4,549)
Depreciation on assets not qualifying for tax allowances
-
0
4,109
Deferred tax adjustments in respect of prior years
-
0
(23,915)
Dividend income
-
(1,209)
Fixed asset differences
61,869
-
0
Remeasurement of deferred tax for change in rates
-
0
13,041
Taxation charge
153,857
214,322
12
Dividends
2024
2023
Recognised as distributions to equity holders:
£
£
Interim paid
-
45,000
PATTERSONS (HOLDINGS) LIMITED GROUP ACCOUNTS
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 26 -
13
Intangible fixed assets
Group
Goodwill
Software
Total
£
£
£
Cost
At 1 May 2023
1,210,731
745,007
1,955,738
Additions - internally developed
-
0
186,194
186,194
At 30 April 2024
1,210,731
931,201
2,141,932
Amortisation and impairment
At 1 May 2023
1,210,731
507,509
1,718,240
Amortisation charged for the year
-
0
62,194
62,194
At 30 April 2024
1,210,731
569,703
1,780,434
Carrying amount
At 30 April 2024
-
0
361,498
361,498
At 30 April 2023
-
0
237,498
237,498
Company
Goodwill
£
Cost
At 1 May 2023 and 30 April 2024
450,000
Amortisation and impairment
At 1 May 2023 and 30 April 2024
450,000
Carrying amount
At 30 April 2024
-
0
At 30 April 2023
-
0
PATTERSONS (HOLDINGS) LIMITED GROUP ACCOUNTS
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 27 -
14
Tangible fixed assets
Group
Freehold land and buildings
Leasehold improvements
Plant and equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 May 2023
5,010,589
205,106
1,073,162
73,432
6,362,289
Additions
-
0
42,616
46,655
8,007
97,278
Disposals
-
0
-
0
-
0
(28,405)
(28,405)
At 30 April 2024
5,010,589
247,722
1,119,817
53,034
6,431,162
Depreciation and impairment
At 1 May 2023
1,278,249
104,477
933,417
68,416
2,384,559
Depreciation charged in the year
74,220
15,034
52,416
4,847
146,517
Eliminated in respect of disposals
-
0
-
0
-
0
(28,405)
(28,405)
At 30 April 2024
1,352,469
119,511
985,833
44,858
2,502,671
Carrying amount
At 30 April 2024
3,658,120
128,211
133,984
8,176
3,928,491
At 30 April 2023
3,732,340
100,629
139,745
5,016
3,977,730
Company
Freehold land and buildings
£
Cost
At 1 May 2023 and 30 April 2024
5,010,588
Depreciation and impairment
At 1 May 2023
1,218,789
Depreciation charged in the year
74,220
At 30 April 2024
1,293,009
Carrying amount
At 30 April 2024
3,717,579
At 30 April 2023
3,791,799
PATTERSONS (HOLDINGS) LIMITED GROUP ACCOUNTS
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 28 -
15
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
16
-
0
-
0
2,143,742
2,448,106
Unlisted investments
10,852
10,852
-
0
-
0
10,852
10,852
2,143,742
2,448,106
Movements in fixed asset investments
Group
Investments
£
Cost or valuation
At 1 May 2023 and 30 April 2024
10,852
Carrying amount
At 30 April 2024
10,852
At 30 April 2023
10,852
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 May 2023 and 30 April 2024
2,448,106
Impairment
At 1 May 2023
-
Impairment losses
304,364
At 30 April 2024
304,364
Carrying amount
At 30 April 2024
2,143,742
At 30 April 2023
2,448,106
PATTERSONS (HOLDINGS) LIMITED GROUP ACCOUNTS
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 29 -
16
Subsidiaries

Details of the company's subsidiaries at 30 April 2024 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Indirect
Amtoll Limited
Pattersons, Winterstoke Road, Ashton, Bristol, BS3 2NS
Ordinary
100.00
-
Genus International Limited
Pattersons, Winterstoke Road, Ashton, Bristol, BS3 2NS
Ordinary
100.00
-
Pattersons (Accommodation Supplies) Limited
Pattersons, Winterstoke Road, Ashton, Bristol, BS3 2NS
Ordinary
90.00
-
Pattersons (Bristol) Limited
Pattersons, Winterstoke Road, Ashton, Bristol, BS3 2NS
Ordinary
100.00
-
Phoenix Floor Maintenance Equipment Limited
Pattersons, Winterstoke Road, Ashton, Bristol, BS3 2NS
Ordinary
100.00
-
KMC Distribution Limited
Pattersons, Winterstoke Road, Ashton, Bristol, BS3 2NS
Ordinary
0
100.00
Pattersons (Gloucester) Limited
Pattersons, Winterstoke Road, Ashton, Bristol, BS3 2NS
Ordinary
0
100.00
17
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Finished goods and goods for resale
1,744,374
1,769,311
-
0
-
0
18
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
2,638,638
2,878,460
-
0
-
0
Amounts owed by undertakings in which the company has a participating interest
-
-
470,654
716,892
Other debtors
353,614
340,834
-
0
-
0
Prepayments and accrued income
298,315
298,545
10,364
-
0
3,290,567
3,517,839
481,018
716,892
19
Current asset investments
Group
Company
2024
2023
2024
2023
£
£
£
£
Unlisted investments
897,167
693,427
-
-
PATTERSONS (HOLDINGS) LIMITED GROUP ACCOUNTS
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 30 -
20
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts
22
473,506
224,534
-
0
-
0
Trade creditors
1,591,733
1,618,479
-
0
-
0
Amounts owed to undertakings in which the group has a participating interest
14,500
14,500
-
0
-
0
Corporation tax payable
151,894
98,296
40,055
36,946
Other taxation and social security
382,432
361,542
-
-
Other creditors
293,619
392,638
-
0
-
0
Accruals and deferred income
750,674
748,636
146,223
150,236
3,658,358
3,458,625
186,278
187,182

Bank borrowings are secured by an unscheduled mortgage debenture incorporating a fixed and floating charge over all current and future assets of the group.

 

The bank loan is unsecured, interest is charged at a fixed percentage over base rate and is repayable over 60 months.

21
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Other borrowings
22
4,226,001
4,177,633
3,198,016
3,195,158
22
Loans and overdrafts
Group
Company
2024
2023
2024
2023
£
£
£
£
Bank overdrafts
473,506
224,534
-
0
-
0
Preference share capital treated as debt
1,047,985
1,302,475
20,000
320,000
Preference share premium treated as debt
3,178,016
2,875,158
3,178,016
2,875,158
Payable within one year
473,506
224,534
-
0
-
0
Payable after one year
4,226,001
4,177,633
3,198,016
3,195,158

Included within bank overdrafts is an invoice financing account. The security for this account comprises a fixed charge over a deposit bank account.

 

PATTERSONS (HOLDINGS) LIMITED GROUP ACCOUNTS
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 31 -
23
Provisions for liabilities
Group
Company
2024
2023
2024
2023
£
£
£
£
Dilapidation provisions
5,091
5,091
-
-
5,091
5,091
-
-
Movements on provisions:
Dilapidation provisions
Group
£
At 1 May 2023 and 30 April 2024
5,091
24
Deferred taxation

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

Liabilities
Liabilities
2024
2023
Group
£
£
Accelerated capital allowances
164,829
166,525
Investments
2,055
-
Short term timing differences
(1,899)
(1,515)
164,985
165,010
Liabilities
Liabilities
2024
2023
Company
£
£
Accelerated capital allowances
101,005
103,774
Investments
2,055
-
103,060
103,774
PATTERSONS (HOLDINGS) LIMITED GROUP ACCOUNTS
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
24
Deferred taxation
(Continued)
- 32 -
Group
Company
2024
2024
Movements in the year:
£
£
Liability at 1 May 2023
165,010
103,774
Credit to profit or loss
(25)
(714)
Liability at 30 April 2024
164,985
103,060
25
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
92,376
71,829

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

26
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
6,001
6,001
6,001
6,001
2024
2023
2024
2023
Preference share capital
Number
Number
£
£
Issued and fully paid
6% 'A' redeemable preference shares of £1 each
282,830
282,830
282,830
282,830
6% 'B' redeemable preference shares of £1 each
5,600
5,600
5,600
5,600
6% 'C' redeemable preference shares of £1 each
-
300,000
-
300,000
8.75% redeemable preference shares of £1 each
39,500
39,500
39,500
39,500
327,930
627,930
327,930
627,930
Preference shares classified as liabilities
327,930
627,930
PATTERSONS (HOLDINGS) LIMITED GROUP ACCOUNTS
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
26
Share capital
(Continued)
- 33 -

The 6% 'A' redeemable preference shares and 6% 'B' redeemable preference shares are redeemable at the option of the Company at a redemption value of £1,417,600 at 15 January 2001, the date of passing the special resolution, increasing each 31 July by a fraction equivalent to the increase in the retail prices index to the proceeding 30 April. The Company must redeem the 6% 'A' redeemable preference shares by July 2032.

 

There is no time limit or obligation on the Company to redeem the 6% 'B' redeemable preference shares. Had they been redeemed on 30 April 2024 the redemption value at the date would have been £867,445 (2023: £810,644). The redemption premium has been accrued in the financial statements.

 

The 6% 'A' preference shares and 6% 'B' redeemable preference shares carry no voting rights and rank in preference to the ordinary share capital of the Company upon a winding up. Upon any repayment of capital they are entitled to an amount equivalent to the then current redemption value and any arrears of dividend.

 

The 'C' redeemable preference shares are redeemable on death at par value.

 

Dividends on the 'C' redeemable preference shares are payable at half year intervals. The coupon rate is LIBOR plus 2.5%. The 'C' shares carry no voting rights and rank in preference to the 6% 'A' redeemable preference shares and 6% 'B' redeemable preference shares and the ordinary share capital of the Company upon a winding up.

Share capital of subsidiaries - Pattersons (Bristol) Limited

 

The 8.75% redeemable preference shares are redeemable at the option of the company at par value. These shares carry no voting rights but rank in preference to the ordinary share capital upon liquidation, although they do not share in any surplus that may arise.

 

If the 8.75% redeemable preference shares had been redeemed on 30 April 2024 the redemption value at that date would have been £39,500 (2023 - £39,500). This redemption premium has been accrued in the financial statements.

 

The 6% 'A' redeemable preference shares are redeemable at the option of the company, increasing each year by a fraction equivalent to the increase in the official retail price index on each anniversary of 30 September 1988, as compared with such index at that date.

 

If the 6% 'A' redeemable preference shares had been redeemed on 30 April 2024 the redemption value at that date would have been £988,485 (2023 - £942,975). The redemption premium has been accrued in the financial statements.

 

The 6% 'A' redeemable preference shares carry no voting rights and rank after the 8.75% preference shares, but in preference to the ordinary share capital of the company. Upon liquidation they are entitled to a repayment of capital at their current redemption value, but do not share in any surplus that may arise. For each class of preference share, the dividends are payable at half yearly intervals. Dividends on the 6% preference shares are payable on the current redemption value.

27
Pension commitments

The group operates two defined contribution pension schemes. The assets of the schemes are held separately from those of the group in an independently administered fund. The pension cost charge represents contributions payable by the group to the fund and amounted to £92,376 (2023: £71,829). Contributions totalling £14,227 (2023: £13,051) were payable to the fund at the reporting date.

PATTERSONS (HOLDINGS) LIMITED GROUP ACCOUNTS
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 34 -
28
Operating lease commitments
Lessee

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Group
Company
2024
2023
2024
2023
£
£
£
£
Within one year
436,884
351,205
93,750
93,750
Between two and five years
691,747
763,757
46,875
140,625
In over five years
210,000
315,000
-
-
1,338,631
1,429,962
140,625
234,375
29
Capital commitments

Amounts contracted for but not provided in the financial statements:

Group
Company
2024
2023
2024
2023
£
£
£
£
Acquisition of intangible assets
77,307
-
-
-
30
Events after the reporting date

After the year end, Pattersons (Accommodation Supplies) Limited, a subsidiary, has ceased trading and transferred the trade to another group company. The financial effect on the group is £Nil.

 

After the year end, the redeemable preference shares were bought back for 25% of their value. The value of the preference shares at 30 April 2024 is £4,226,001 and they have been bought back for a value of £1,056,500.

31
Controlling party

Pattersons (Holdings) Limited, the parent company of the group, is controlled by Mr C J Patterson, who is the ultimate controlling party of the group.

PATTERSONS (HOLDINGS) LIMITED GROUP ACCOUNTS
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 35 -
32
Related party transactions
Transactions with related parties
Management fee income
Interest received from group company
2024
2023
2024
2023
£
£
£
£
Company
Entities over which the entity has control, joint control or significant influence
98,763
81,789
8,220
8,220
Amounts due to related parties
2024
2023
£
£
Group
Key management personnel
162,204
158,042
Other related parties
111,858
231,922
Amounts due from related parties
2024
2023
Balance
Balance
£
£
Group
Other related parties
36,652
15,109
Company
Entities over which the company has control, joint control or significant influence
450,237
716,892

During the year, Pattersons (Bristol) Limited paid rent of £105,000 (2023: £105,000) in respect of premises owned by Pattersons Executive Pension Scheme.

PATTERSONS (HOLDINGS) LIMITED GROUP ACCOUNTS
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 36 -
33
Cash generated from group operations
2024
2023
£
£
Loss for the year after tax
(150,642)
(650,857)
Adjustments for:
Taxation charged
153,857
214,322
Finance costs
638,513
1,297,304
Investment income
(13,374)
(7,473)
Gain on disposal of tangible fixed assets
(1,500)
(2,282)
Amortisation and impairment of intangible assets
62,194
74,835
Depreciation and impairment of tangible fixed assets
146,517
199,780
Other gains and losses
(43,771)
48,172
Decrease in provisions
-
(9,100)
Movements in working capital:
Decrease in stocks
24,937
300,221
Decrease/(increase) in debtors
227,272
(467,014)
(Decrease)/increase in creditors
(102,837)
17,737
Cash generated from operations
941,166
1,015,645
34
Analysis of changes in net debt - group
1 May 2023
Cash flows
30 April 2024
£
£
£
Cash at bank and in hand
17,510
71,142
88,652
Bank overdrafts
(224,534)
(248,972)
(473,506)
(207,024)
(177,830)
(384,854)
Borrowings excluding overdrafts
(4,177,633)
(48,368)
(4,226,001)
(4,384,657)
(226,198)
(4,610,855)
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