Company Registration No. 02265026 (England and Wales)
Pendle Polymer Engineering Limited
Annual Report and Unaudited Financial Statements
For the Year Ended
31 May 2024
PAGES FOR FILING WITH REGISTRAR
PENDLE POLYMER ENGINEERING LIMITED
Pendle Polymer Engineering Limited
CONTENTS
Page
Statement of financial position
1 - 2
Notes to the financial statements
3 - 9
PENDLE POLYMER ENGINEERING LIMITED
Pendle Polymer Engineering Limited
STATEMENT OF FINANCIAL POSITION
AS AT
31 MAY 2024
31 May 2024
- 1 -
2024
2023
Notes
£
£
£
£
Fixed assets
Goodwill
3
37,950
42,900
Other intangible assets
3
1,150
8,627
Total intangible assets
39,100
51,527
Property, plant and equipment
4
1,400,755
1,415,342
Investments
5
1,004
1,004
1,440,859
1,467,873
Current assets
Inventories
799,329
885,653
Trade and other receivables
6
1,438,017
1,536,879
Cash at bank and in hand
67,260
51,158
2,304,606
2,473,690
Current liabilities
7
(1,999,705)
(2,296,157)
Net current assets
304,901
177,533
Total assets less current liabilities
1,745,760
1,645,406
Non-current liabilities
8
(439,226)
(420,090)
Provisions for liabilities
(155,233)
(153,344)
Net assets
1,151,301
1,071,972
Equity
Called up share capital
9
100
100
Fair value reserve
235,589
240,440
Retained earnings
915,612
831,432
Total equity
1,151,301
1,071,972
PENDLE POLYMER ENGINEERING LIMITED
Pendle Polymer Engineering Limited
STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT
31 MAY 2024
31 May 2024
- 2 -

The directors of the company have elected not to include a copy of the income statement within the financial statements.true

For the financial year ended 31 May 2024 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the board of directors and authorised for issue on 27 January 2025 and are signed on its behalf by:
Mr R Lorrison
Director
Company Registration No. 02265026
PENDLE POLYMER ENGINEERING LIMITED
Pendle Polymer Engineering Limited
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
- 3 -
1
Accounting policies
Company information

Pendle Polymer Engineering Limited is a private company limited by shares incorporated in England and Wales. The registered office is Vulcan Works, Warehouse Lane, Foulridge, Colne, Lancashire, United Kingdom, BB8 7PP.

 

The company's principal activity continued to be that of the manufacturing of rubber to metal bonded mouldings and moulded rubber products. The company also undertakes product development at the request of its customers.

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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

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

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of certain assets. The principal accounting policies adopted are set out below.

1.2
Revenue

Revenue 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.

1.3
Research and development expenditure

Research expenditure is written off against profits in the year in which it is incurred.

1.4
Intangible fixed assets - goodwill

Acquired goodwill is written off in equal annual instalments over its estimated useful economic life.

 

Goodwill                 33% Straight line

1.5
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
33% Straight line
Other Intangibles
10% Straight line
PENDLE POLYMER ENGINEERING LIMITED
Pendle Polymer Engineering Limited
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
1
Accounting policies
(Continued)
- 4 -
1.6
Property, plant and equipment

Property, plant and equipment are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

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

Freehold land and buildings
2% Straight line
Plant and machinery
10-15% Straight line
Fixtures, fittings & equipment
10-33% Straight line
Motor vehicles
25% 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 credited or charged to profit or loss.

1.7
Non-current investments

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

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

1.8
Impairment of non-current assets

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

1.9
Inventories

Inventories are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials.

 

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of inventories 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.

 

Work in progress

The work in progress is valued on the basis of attributable direct materials, labour and overheads depending on the stage reached in the production process. No element of profit is included in the valuation of work in progress.

1.10
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.

1.11
Financial instruments

The company only has financial assets (debtors, cash and bank balances) and liabilities (creditors and accruals) of a kind that qualify as basic financial instruments. They are initially recognised at transaction value and subsequently measured at their settlement value.

PENDLE POLYMER ENGINEERING LIMITED
Pendle Polymer Engineering Limited
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
1
Accounting policies
(Continued)
- 5 -
1.12
Equity instruments

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

1.13
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 income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

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 income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.14
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 non-current assets.

 

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

1.15
Retirement benefits

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

 

1.16
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to income 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 lease asset are consumed.

1.17
Government grants

Under FRS 102 a grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

 

Grants towards revenue expenditure are released to the profit and loss account as the related expenditure is incurred.

PENDLE POLYMER ENGINEERING LIMITED
Pendle Polymer Engineering Limited
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
1
Accounting policies
(Continued)
- 6 -
1.18
Foreign exchange

Monetary assets and liabilities denominated in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction. All differences are taken to operating profit.

 

 

 

2
Employees

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

2024
2023
Number
Number
Total
77
71
3
Intangible fixed assets
Goodwill
Software
Other Intangibles
Total
£
£
£
£
Cost
At 1 June 2023 and 31 May 2024
476,439
36,435
1,500
514,374
Amortisation and impairment
At 1 June 2023
433,539
29,108
200
462,847
Amortisation charged for the year
4,950
7,327
150
12,427
At 31 May 2024
438,489
36,435
350
475,274
Carrying amount
At 31 May 2024
37,950
-
0
1,150
39,100
At 31 May 2023
42,900
7,327
1,300
51,527
PENDLE POLYMER ENGINEERING LIMITED
Pendle Polymer Engineering Limited
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 7 -
4
Property, plant and equipment
Freehold land and buildings
Plant and machinery
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
£
£
Cost or valuation
At 1 June 2023
981,844
2,817,209
191,434
58,688
4,049,175
Additions
-
0
93,573
8,954
-
0
102,527
At 31 May 2024
981,844
2,910,782
200,388
58,688
4,151,702
Depreciation and impairment
At 1 June 2023
136,599
2,311,157
149,820
36,257
2,633,833
Depreciation charged in the year
19,656
82,918
6,620
7,920
117,114
At 31 May 2024
156,255
2,394,075
156,440
44,177
2,750,947
Carrying amount
At 31 May 2024
825,589
516,707
43,948
14,511
1,400,755
At 31 May 2023
845,245
506,052
41,614
22,431
1,415,342

All the assets have been pledged to secure borrowings of the company. The company is not allowed to pledge these assets as security for other borrowings or to sell them to another entity.

In November 2015 the land and buildings were revalued to £400,000. The valuation was performed by Keppie Massie Surveyors and was undertaken strictly in accordance with the RICS Appraisal and Valuation Standards. This value has been adopted as deemed cost of the assets concerned on transition to FRS 102.

If revalued assets were stated on an historical cost basis rather than a fair value basis, the total amounts included would have been as follows:

2024
2023
£
£
Cost
739,996
739,996
Accumulated depreciation
(156,724)
(141,924)
Carrying value
583,272
598,072
5
Fixed asset investments
2024
2023
£
£
Shares in group undertakings and participating interests
1,004
1,004
PENDLE POLYMER ENGINEERING LIMITED
Pendle Polymer Engineering Limited
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 8 -
6
Trade and other receivables
2024
2023
Amounts falling due within one year:
£
£
Trade receivables
1,345,181
1,458,130
Amounts owed by group undertakings
54,517
38,451
Other receivables
38,319
40,298
1,438,017
1,536,879
7
Current liabilities
2024
2023
£
£
Bank loan
32,854
31,365
Trade payables
882,531
1,308,318
Other taxation and social security
287,498
157,605
Other payables
796,822
798,869
1,999,705
2,296,157

The bank loan is secured by a fixed and floating charge over the assets of the company.

 

Included within 'Other payables' are 'Net obligations under hire purchase contracts' liabilities of £25,002 (2023: £14,601) which are secured on the assets to which they relate.

 

Included within 'Other payables' is 'Debt factoring' liabilities of £540,626 (2023: £527,780) which are secured against trade receivables.

8
Non-current liabilities
2024
2023
£
£
Bank loan
380,849
412,173
Other payables
58,377
7,917
439,226
420,090

The bank loan is secured by a fixed and floating charge over the assets of the company.

 

Included with 'Other payables' are 'Net obligations under hire purchase contracts' liabilities of £58,377 (2023: £7,917) which are secured on the assets to which they relate.

Amounts included above which fall due after five years are as follows:
Payable by instalments
260,951
289,425
PENDLE POLYMER ENGINEERING LIMITED
Pendle Polymer Engineering Limited
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 9 -
9
Called up share capital
2024
2023
£
£
Ordinary share capital
Issued and fully paid
100 Ordinary Shares of £1 each
100
100
10
Operating lease commitments
Lessee

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

2024
2023
£
£
3,004
6,009
11
Related party transactions

During the year the company provided an unsecured interest free loan to a director totalling £10,541 which was repayable on demand. The loan was fully repaid in the year, no amounts have been waived or written off.

 

During the year the company provided an unsecured interest free loan to a director totalling £3,207 which was repayable on demand. The loan was fully repaid in the year, no amounts have been waived or written off.

12
Parent company

The parent company of Pendle Polymer Engineering Limited is Pendle Fluid Sealing Limited and its registered office is England and Wales. The group qualifies as small therefore does not prepare consolidated financial statements.

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