REGISTERED NUMBER: 12128087 (England and Wales) |
Parkol Marine Holdings Limited |
Group Strategic Report, Report of the Directors and |
Consolidated Financial Statements for the Year Ended 31st May 2024 |
REGISTERED NUMBER: 12128087 (England and Wales) |
Parkol Marine Holdings Limited |
Group Strategic Report, Report of the Directors and |
Consolidated Financial Statements for the Year Ended 31st May 2024 |
Parkol Marine Holdings Limited (Registered number: 12128087) |
Contents of the Consolidated Financial Statements |
for the year ended 31st May 2024 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 4 |
Report of the Independent Auditors | 6 |
Consolidated Statement of Comprehensive Income | 10 |
Consolidated Balance Sheet | 11 |
Company Balance Sheet | 12 |
Consolidated Statement of Changes in Equity | 13 |
Company Statement of Changes in Equity | 14 |
Consolidated Cash Flow Statement | 15 |
Notes to the Consolidated Cash Flow Statement | 16 |
Notes to the Consolidated Financial Statements | 17 |
Parkol Marine Holdings Limited |
Company Information |
for the year ended 31st May 2024 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Accountants |
Statutory Auditor |
Regent's Court |
Princess Street |
Hull |
East Yorkshire |
HU2 8BA |
Parkol Marine Holdings Limited (Registered number: 12128087) |
Group Strategic Report |
for the year ended 31st May 2024 |
The directors present their strategic report of the Company and the Group for the year ended 31st May 2024. |
REVIEW OF BUSINESS |
In light of the sustained poor economic climate, The Directors are pleased with the Group's performance for the period ending 31st May 2024. |
Overall turnover reduced by £622k to £11,418,295 (2023 £12,040,932) which was mainly due to delayed completions (due to supply chain delays) of prior year boat builds which in turn meant delayed starts on the current year builds. |
Gross profit margin increased to 15.8% (2023 7.3% and 2022 10.2%). This was partly due to £360k of office salaries being moved to 'administration costs' from 'cost of sales' plus a return to normal profit margins. |
The Group continues to be successful in attracting new customers by providing a complete service from design to construction, service and maintenance. |
The business continues to invest in systems and infrastructure to sustain growth and ensures that we continue to offer the best possible service to our customers. |
The Group bid on public and private tenders and achieved an excellent success rate. These bids are supported by investment in new staff, systems and business certifications. |
Key Performance Indicators |
The Directors closely monitor cash flow and working capital and use several KPI's to further monitor the Group's performance. These include a range of financial and operational ratios as follows: |
- Gross profit/turnover |
- Operating profit/turnover |
- Debtor days |
- Work in progress days |
- Cash balance |
- Staff utilisation |
- Actual vs budgeted direct labour hours |
- Actual vs budgeted direct materials and stock purchases |
- Order book profile |
The Directors are involved in the day to day activities of the Group which also allows them to monitor performance.The operational performance indicators are commercially sensitive and have not been disclosed. |
Parkol Marine Holdings Limited (Registered number: 12128087) |
Group Strategic Report |
for the year ended 31st May 2024 |
PRINCIPAL RISKS AND UNCERTAINTIES |
The directors are aware of the various risks inherent in the business and meet regularly to consider them. The key business risks are: |
Market risk: |
A continued period of inflation, high interest rates and general economic uncertainty present financial risk. The continued inflation means that long term contracts need to be monitored and managed very closely. Forecasting models are updated and reviewed on a regular basis and the Directors are confident of maintaining financial security |
Foreign currency risk: |
Foreign currency fluctuations are a financial risk to the Group. Currency requirements are monitored on a contract by contract basis and measures taken to safeguard against short and medium term risks. Contract terms either pass on currency risks to customers or forward currency contracts are utilised to fix long-term contract rates. |
Credit risk: |
The Group raises milestone invoices on long term contracts in line with agreed terms in order to mitigate credit risk. |
Staff risk: |
Due to Brexit, the Group has been exposed to a lack of supply of skilled labour and mitigates this risk by utilising subcontracted agency labour where required. |
FUTURE DEVELOPMENTS |
The Group continues to review and develop its internal systems and processes to improve efficiencies and ensure its high standards are maintained. This includes certification to Quality Environmental, Occupational Health and Safety ISO standards and ERP systems. |
Staff retention and recruitment helps expand the knowledge and experience within the Group. New measures and annual reviews of employment benefits which contributed positively to staff retention. |
The client sector is being expanded to remove the historical risk presented by a reliance on one industry. |
RESEARCH AND DEVELOPMENT ACTIVITIES |
The Group is recognised throughout the industry for its innovative custom designs and retrofitting/refitting existing boats to a more efficient design. The Group is continually exploring innovative solutions to make boats more efficient in operation and in terms of space utilisation and enhancing crew safety and operational efficiency. |
ON BEHALF OF THE BOARD: |
Parkol Marine Holdings Limited (Registered number: 12128087) |
Report of the Directors |
for the year ended 31st May 2024 |
The directors present their report with the financial statements of the Company and the Group for the year ended 31st May 2024. |
PRINCIPAL ACTIVITIES |
The principal activities of the Group in the year under review were those of ship building and repairing. The principal activity of the company was that of a parent holding company. |
DIVIDENDS |
The directors do not recommend the payment of a final dividend. The total distribution of dividends for the year ended 31 May 2024 will be £85,250 |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1st June 2023 to the date of this report. |
DISCLOSURE IN THE STRATEGIC REPORT |
Disclosures required relating to financial instruments and future developments, including research and development activities, are set out in the Strategic Report in accordance with s.414C(11) of the Companies Act 2006. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Group Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and the Group and of the profit or loss of the Group for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's and the Group's transactions and disclose with reasonable accuracy at any time the financial position of the Company and the Group and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the Group's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the Group's auditors are aware of that information. |
Parkol Marine Holdings Limited (Registered number: 12128087) |
Report of the Directors |
for the year ended 31st May 2024 |
AUDITORS |
The auditors, Smailes Goldie, will be proposed for re-appointment in accordance with section 485 of the |
Companies Act 2006. |
ON BEHALF OF THE BOARD: |
Report of the Independent Auditors to the Members of |
Parkol Marine Holdings Limited |
Opinion |
We have audited the financial statements of Parkol Marine Holdings Limited (the 'Parent Company') and its subsidiaries (the 'Group') for the year ended 31st May 2024 which comprise the Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
In our opinion the financial statements: |
- | give a true and fair view of the state of the Group's and of the Parent Company affairs as at 31st May 2024 and of the Group's profit for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Group 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 the 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 directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether 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 the audit: |
- | the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
Report of the Independent Auditors to the Members of |
Parkol Marine Holdings Limited |
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 its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the parent company financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page four, 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 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 group's and 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 group or the parent company or to cease operations, or have no realistic alternative but to do so. |
Report of the Independent Auditors to the Members of |
Parkol Marine Holdings Limited |
Auditors' 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 a Report of the Auditors 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: |
The extent to which the audit was considered capable of detecting irregularities including fraud |
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the Company and the Group, including the Companies Act 2006, anti-bribery, environmental and health and safety legislation. An understanding of these laws and regulations and the extent of compliance was obtained through discussion with management and inspecting legal and regulatory correspondence. |
We assessed the susceptibility of the Company and the Group's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by making enquiries of management and considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations. |
To address the risk of fraud through management bias and override of controls, we: |
- performed analytical procedures to identify any unusual or unexpected relationships; |
- tested journal entries to identify unusual transactions; |
- assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and |
- investigated the rationale behind significant or unusual transactions. |
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: |
- agreeing financial statement disclosures to underlying supporting documentation; |
- reading the minutes of meetings of those charged with governance; |
- enquiring of management as to actual and potential litigation and claims; and |
- reviewing correspondence with HMRC, relevant regulators, and the company's legal advisors. |
Due to the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. |
The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission, or misrepresentation. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
Report of the Independent Auditors to the Members of |
Parkol Marine Holdings Limited |
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 a Report of the Auditors 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. |
for and on behalf of |
Chartered Accountants |
Statutory Auditor |
Regent's Court |
Princess Street |
Hull |
East Yorkshire |
HU2 8BA |
Parkol Marine Holdings Limited (Registered number: 12128087) |
Consolidated Statement of Comprehensive Income |
for the year ended 31st May 2024 |
2024 | 2023 |
Notes | £ | £ |
TURNOVER | 3 | 11,418,295 | 12,040,932 |
Cost of sales | 9,618,377 | 11,158,573 |
GROSS PROFIT | 1,799,918 | 882,359 |
Administrative expenses | 1,432,780 | 1,111,045 |
367,138 | (228,686 | ) |
Other operating income | 89,597 | 52,328 |
OPERATING PROFIT/(LOSS) | 5 | 456,735 | (176,358 | ) |
Interest receivable and similar income | 7,345 | 2,317 |
464,080 | (174,041 | ) |
Interest payable and similar expenses | 6 | 30,435 | 16,454 |
PROFIT/(LOSS) BEFORE TAXATION | 433,645 | (190,495 | ) |
Tax on profit/(loss) | 7 | 107,781 | (52,815 | ) |
PROFIT/(LOSS) FOR THE FINANCIAL YEAR |
( |
) |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
325,864 |
(137,680 |
) |
Profit/(loss) attributable to: |
Owners of the parent | 325,864 | (137,680 | ) |
Total comprehensive income attributable to: |
Owners of the parent | 325,864 | (137,680 | ) |
Parkol Marine Holdings Limited (Registered number: 12128087) |
Consolidated Balance Sheet |
31st May 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 10 | - | - |
Tangible assets | 11 | 1,171,658 | 1,123,708 |
Investments | 12 | - | - |
Investment property | 13 | 1,284,773 | 937,215 |
2,456,431 | 2,060,923 |
CURRENT ASSETS |
Stocks | 14 | 649,160 | 683,709 |
Debtors | 15 | 2,793,144 | 2,351,248 |
Cash at bank and in hand | 630,178 | 406,257 |
4,072,482 | 3,441,214 |
CREDITORS |
Amounts falling due within one year | 16 | 3,867,632 | 3,226,843 |
NET CURRENT ASSETS | 204,850 | 214,371 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
2,661,281 |
2,275,294 |
CREDITORS |
Amounts falling due after more than one year |
17 |
(345,352 |
) |
(146,260 |
) |
PROVISIONS FOR LIABILITIES | 20 | (124,491 | ) | (110,710 | ) |
NET ASSETS | 2,191,438 | 2,018,324 |
CAPITAL AND RESERVES |
Called up share capital | 21 | 2,826 | 2,826 |
Revaluation reserve | 22 | 242,194 | 242,194 |
Capital redemption reserve | 22 | 353 | 353 |
Retained earnings | 22 | 1,946,065 | 1,772,951 |
SHAREHOLDERS' FUNDS | 2,191,438 | 2,018,324 |
The financial statements were approved by the Board of Directors and authorised for issue on 21st February 2025 and were signed on its behalf by: |
J R Morrison - Director |
S Atkinson - Director |
Parkol Marine Holdings Limited (Registered number: 12128087) |
Company Balance Sheet |
31st May 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 10 |
Tangible assets | 11 |
Investments | 12 |
Investment property | 13 |
CREDITORS |
Amounts falling due within one year | 16 |
NET CURRENT LIABILITIES | ( |
) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
17 |
( |
) |
( |
) |
PROVISIONS FOR LIABILITIES | 20 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 21 |
Revaluation reserve | 22 |
Capital redemption reserve | 22 |
Retained earnings | 22 |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | 140,156 | 264,183 |
The financial statements were approved by the Board of Directors and authorised for issue on |
Parkol Marine Holdings Limited (Registered number: 12128087) |
Consolidated Statement of Changes in Equity |
for the year ended 31st May 2024 |
Called up | Capital |
share | Retained | Revaluation | redemption | Total |
capital | earnings | reserve | reserve | equity |
£ | £ | £ | £ | £ |
Balance at 1st June 2022 | 2,826 | 2,172,131 | 242,194 | 353 | 2,417,504 |
Changes in equity |
Dividends | - | (261,500 | ) | - | - | (261,500 | ) |
Total comprehensive income | - | (137,680 | ) | - | - | (137,680 | ) |
Balance at 31st May 2023 | 2,826 | 1,772,951 | 242,194 | 353 | 2,018,324 |
Changes in equity |
Dividends | - | (152,750 | ) | - | - | (152,750 | ) |
Total comprehensive income | - | 325,864 | - | - | 325,864 |
Balance at 31st May 2024 | 2,826 | 1,946,065 | 242,194 | 353 | 2,191,438 |
Parkol Marine Holdings Limited (Registered number: 12128087) |
Company Statement of Changes in Equity |
for the year ended 31st May 2024 |
Called up | Capital |
share | Retained | Revaluation | redemption | Total |
capital | earnings | reserve | reserve | equity |
£ | £ | £ | £ | £ |
Balance at 1st June 2022 |
Changes in equity |
Dividends | - | ( |
) | - | - | ( |
) |
Total comprehensive income | - |
Balance at 31st May 2023 |
Changes in equity |
Dividends | - | ( |
) | - | - | ( |
) |
Total comprehensive income | - |
Balance at 31st May 2024 |
Parkol Marine Holdings Limited (Registered number: 12128087) |
Consolidated Cash Flow Statement |
for the year ended 31st May 2024 |
2024 | 2023 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 593,347 | 144,508 |
Interest paid | (30,435 | ) | (16,454 | ) |
Finance costs paid | (1,469 | ) | - |
Net cash from operating activities | 561,443 | 128,054 |
Cash flows from investing activities |
Purchase of tangible fixed assets | (129,821 | ) | (144,456 | ) |
Purchase of investment property | (347,558 | ) | - |
Sale of tangible fixed assets | 3,400 | - |
Interest received | 8,813 | 2,317 |
Net cash from investing activities | (465,166 | ) | (142,139 | ) |
Cash flows from financing activities |
New loans in year | 212,894 | - |
Loan repayments in year | - | (13,266 | ) |
Amount withdrawn by directors | 67,500 | - |
Equity dividends paid | (152,750 | ) | (261,500 | ) |
Net cash from financing activities | 127,644 | (274,766 | ) |
Increase/(decrease) in cash and cash equivalents | 223,921 | (288,851 | ) |
Cash and cash equivalents at beginning of year |
2 |
406,257 |
695,108 |
Cash and cash equivalents at end of year |
2 |
630,178 |
406,257 |
Parkol Marine Holdings Limited (Registered number: 12128087) |
Notes to the Consolidated Cash Flow Statement |
for the year ended 31st May 2024 |
1. | RECONCILIATION OF PROFIT/(LOSS) BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2024 | 2023 |
£ | £ |
Profit/(loss) before taxation | 433,645 | (190,495 | ) |
Depreciation charges | 77,433 | 78,306 |
Loss on disposal of fixed assets | 1,039 | 4,236 |
Finance costs | 30,435 | 16,454 |
Finance income | (7,345 | ) | (2,317 | ) |
535,207 | (93,816 | ) |
Decrease in stocks | 34,549 | 153,263 |
Increase in trade and other debtors | (444,480 | ) | (401,231 | ) |
Increase in trade and other creditors | 468,071 | 486,292 |
Cash generated from operations | 593,347 | 144,508 |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 31st May 2024 |
31/5/24 | 1/6/23 |
£ | £ |
Cash and cash equivalents | 630,178 | 406,257 |
Year ended 31st May 2023 |
31/5/23 | 1/6/22 |
£ | £ |
Cash and cash equivalents | 406,257 | 695,108 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1/6/23 | Cash flow | At 31/5/24 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 406,257 | 223,921 | 630,178 |
406,257 | 223,921 | 630,178 |
Debt |
Debts falling due within 1 year | (13,200 | ) | (13,802 | ) | (27,002 | ) |
Debts falling due after 1 year | (146,260 | ) | (199,092 | ) | (345,352 | ) |
(159,460 | ) | (212,894 | ) | (372,354 | ) |
Total | 246,797 | 11,027 | 257,824 |
Parkol Marine Holdings Limited (Registered number: 12128087) |
Notes to the Consolidated Financial Statements |
for the year ended 31st May 2024 |
1. | STATUTORY INFORMATION |
Parkol Marine Holdings Limited is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention. |
The financial statements have been prepared on a going concern basis. The directors have taken note of the guidance issued by the Financial Reporting Council on Going Concern Assessments in |
determining that this is the appropriate basis of preparation of the financial statements and have |
considered a number of factors. This has specifically included reviewing banking facilities in place and detailed forecasting using sensitivity analysis to ensure that the worst case scenario situation does not put the going concern concept at risk. |
The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated. |
Significant judgements and estimates |
In preparing the financial statements, management is required to make estimates and assumptions which affect reported income, expenses, assets, liabilities and disclosure of contingent assets and liabilities. Use of available information and application of judgement are inherent in the formation of estimates, together with past experience and expectations of future events that are believed to be reasonable under the circumstances. Actual results in the future could differ from such estimates. |
Critical accounting estimates and assumptions |
Management estimate the stage of completion of a new build contract by reference to the percentage of costs incurred. The attributable profit which is recognised at each stage is assessed by management consideration of the overall costs and anticipated profitability of the build when the build has reached a stage whereby this can be foreseen with reasonable certainty. |
The directors do not consider that any of the estimates and assumptions used in the preparation of these financial statements have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year. |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
The amount of profit attributable to the stage of completion of a contract is recognised when the outcome of the contract can be foreseen with reasonable certainty. Revenue for such contracts is stated at the cost appropriate to their stage of completion plus attributable profits, less amounts recognised in previous years. Provision is made for any losses as soon as they are foreseeable. Amounts invoiced in excess of revenue recognised are included as payments on account. |
Rental income |
Income received from the rental of tenanted property is recognised as it becomes due. |
Goodwill |
Goodwill has been written off over its original estimated useful life of ten years. |
Intangible assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
Parkol Marine Holdings Limited (Registered number: 12128087) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31st May 2024 |
2. | ACCOUNTING POLICIES - continued |
Tangible fixed assets |
Tangible fixed assets are stated at cost (or deemed cost) or valuation less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended. |
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life: |
Leasehold improvements | - over the length of the lease |
Plant and machinery | - 20% on reducing balance or 2% on cost |
Fixtures and fittings | - 25% on cost |
Motor vehicles | - 25% on reducing balance |
Freehold properties are stated at revalued amounts under the revaluation model. |
Incomplete investment property |
Incomplete investment properties are valued at cost until complete, at which point they are revalued to fair value. |
Investment property |
Completed investment properties are measured at fair value at each reporting date. Any aggregate surplus or deficit arising from changes in fair value is recognised in profit or loss. |
Investment in subsidiaries |
Investments in subsidiary undertakings are recognised at cost less impairment. |
Stocks and work in progress |
Stocks and work in progress are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
Cost is calculated using the first-in, first-out method and includes all purchase, transport, and handling costs in bringing stocks to their present location and condition. |
If payments on account are greater than turnover to date they are classified as a deduction from long term work in progress with any excess being classified as creditors. |
Financial instruments |
The group mainly enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities such as trade, other accounts receivable and payable and loans from related parties. |
Debt instruments that are payable or receivable within one year, typically trade payables or |
receivables, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. |
Debt instruments such as loans and other accounts receivable and payable are initially measured at present value of the future payments and subsequently at amortised costs using the effective interest method. |
The group does enter into some derivative financial instruments to manage exposures to foreign currency risk, including exposures arising from forecast transactions. |
Derivative financial instruments are classified as other financial instruments and accounted for at fair value. |
Parkol Marine Holdings Limited (Registered number: 12128087) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31st May 2024 |
2. | ACCOUNTING POLICIES - continued |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Pension costs and other post-retirement benefits |
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
Foreign currencies |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result. |
Leasing commitments |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the |
period of the lease. |
3. | TURNOVER |
The turnover and profit (2023 - loss) before taxation are attributable to the principal activities of the Group. |
An analysis of turnover by class of business is given below: |
2024 | 2023 |
£ | £ |
Ship building | 9,083,004 | 10,127,952 |
Repairs and maintenance | 2,335,291 | 1,912,980 |
11,418,295 | 12,040,932 |
Parkol Marine Holdings Limited (Registered number: 12128087) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31st May 2024 |
4. | EMPLOYEES AND DIRECTORS |
2024 | 2023 |
£ | £ |
Wages and salaries | 1,996,118 | 2,116,440 |
Social security costs | 206,555 | 219,258 |
Other pension costs | 26,656 | 23,019 |
2,229,329 | 2,358,717 |
The average number of employees during the year was as follows: |
2024 | 2023 |
Directors | 3 | 4 |
Employees | 54 | 60 |
2024 | 2023 |
£ | £ |
Directors' remuneration | 28,108 | 31,243 |
Directors' pension contributions to money purchase schemes | 1,650 | - |
5. | OPERATING PROFIT/(LOSS) |
The operating profit (2023 - operating loss) is stated after charging: |
2024 | 2023 |
£ | £ |
Hire of plant and machinery | 1,967 | 11,903 |
Other operating leases | 296,167 | 351,533 |
Depreciation - owned assets | 77,432 | 78,306 |
Loss on disposal of fixed assets | 1,039 | 4,236 |
Auditors' remuneration | 9,450 | 18,450 |
Foreign exchange differences | 8,605 | 31,499 |
Vehicle leases | 39,612 | 23,570 |
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2024 | 2023 |
£ | £ |
Bank loan interest | 24,626 | 7,246 |
Directors' loan interest | 5,790 | 8,885 |
Other interest paid | 19 | 323 |
30,435 | 16,454 |
Parkol Marine Holdings Limited (Registered number: 12128087) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31st May 2024 |
7. | TAXATION |
Analysis of the tax charge/(credit) |
The tax charge/(credit) on the profit for the year was as follows: |
2024 | 2023 |
£ | £ |
Deferred tax | 107,781 | (52,815 | ) |
Tax on profit/(loss) | 107,781 | (52,815 | ) |
UK corporation tax has been charged at 25 % (2023 - 25 %). |
Reconciliation of total tax charge/(credit) included in profit and loss |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
2024 | 2023 |
£ | £ |
Profit/(loss) before tax | 433,645 | (190,495 | ) |
Profit/(loss) multiplied by the standard rate of corporation tax in the UK of 25 % (2023 - 25 %) |
108,411 |
(47,624 |
) |
Effects of: |
Expenses not deductible for tax purposes | 1,033 | 1,925 |
Income not taxable for tax purposes | (714 | ) | - |
Utilisation of tax losses | (949 | ) | - |
Enhanced capital allowances | - | (2,554 | ) |
Change in rate of tax | - | (4,562 | ) |
Total tax charge/(credit) | 107,781 | (52,815 | ) |
Losses carried forward as a result of research and development enhanced expenditure deductions are provided for as deferred tax assets, net of deferred tax liabilities arising on accelerated capital allowances and other short term timing differences. |
8. | INDIVIDUAL STATEMENT OF COMPREHENSIVE INCOME |
As permitted by Section 408 of the Companies Act 2006, the Statement of Comprehensive Income of the parent company is not presented as part of these financial statements. |
9. | DIVIDENDS |
2024 | 2023 |
£ | £ |
Ordinary A shares of £1 each |
Interim | 7,500 | 40,000 |
Ordinary B shares of £1 each |
Interim | 85,250 | 161,500 |
Ordinary C shares of £1 each |
Interim | 60,000 | 60,000 |
152,750 | 261,500 |
Parkol Marine Holdings Limited (Registered number: 12128087) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31st May 2024 |
10. | INTANGIBLE FIXED ASSETS |
Group |
Goodwill |
£ |
COST |
At 1st June 2023 |
and 31st May 2024 | 300,000 |
AMORTISATION |
At 1st June 2023 |
and 31st May 2024 | 300,000 |
NET BOOK VALUE |
At 31st May 2024 | - |
At 31st May 2023 | - |
11. | TANGIBLE FIXED ASSETS |
Group |
Freehold | Long | Plant and |
property | leasehold | machinery |
£ | £ | £ |
COST |
At 1st June 2023 | 630,000 | 164,099 | 1,308,316 |
Additions | - | - | 84,116 |
Disposals | - | - | (15,000 | ) |
At 31st May 2024 | 630,000 | 164,099 | 1,377,432 |
DEPRECIATION |
At 1st June 2023 | - | 164,099 | 841,011 |
Charge for year | - | - | 61,909 |
Eliminated on disposal | - | - | (13,068 | ) |
At 31st May 2024 | - | 164,099 | 889,852 |
NET BOOK VALUE |
At 31st May 2024 | 630,000 | - | 487,580 |
At 31st May 2023 | 630,000 | - | 467,305 |
Parkol Marine Holdings Limited (Registered number: 12128087) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31st May 2024 |
11. | TANGIBLE FIXED ASSETS - continued |
Group |
Fixtures |
and | Motor |
fittings | vehicles | Totals |
£ | £ | £ |
COST |
At 1st June 2023 | 118,011 | 25,230 | 2,245,656 |
Additions | 22,955 | 22,750 | 129,821 |
Disposals | - | (6,700 | ) | (21,700 | ) |
At 31st May 2024 | 140,966 | 41,280 | 2,353,777 |
DEPRECIATION |
At 1st June 2023 | 99,192 | 17,646 | 1,121,948 |
Charge for year | 11,397 | 4,126 | 77,432 |
Eliminated on disposal | - | (4,193 | ) | (17,261 | ) |
At 31st May 2024 | 110,589 | 17,579 | 1,182,119 |
NET BOOK VALUE |
At 31st May 2024 | 30,377 | 23,701 | 1,171,658 |
At 31st May 2023 | 18,819 | 7,584 | 1,123,708 |
Company |
Fixtures |
Freehold | and |
property | fittings | Totals |
£ | £ | £ |
COST |
At 1st June 2023 |
Additions |
At 31st May 2024 |
DEPRECIATION |
At 1st June 2023 |
Charge for year |
At 31st May 2024 |
NET BOOK VALUE |
At 31st May 2024 |
At 31st May 2023 |
Parkol Marine Holdings Limited (Registered number: 12128087) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31st May 2024 |
11. | TANGIBLE FIXED ASSETS - continued |
Company |
Freehold land and buildings were valued on an open market basis by professional valuers in 2020 and by the directors at 31 May 2024. |
If freehold land and buildings had not been revalued, they would have been included at the following historical cost less depreciation: |
£ |
Cost | 307,473 |
Depreciation | (28,497 | ) |
Net book value | 278,976 |
12. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1st June 2023 |
and 31st May 2024 |
NET BOOK VALUE |
At 31st May 2024 |
At 31st May 2023 |
The company's investment at the Balance Sheet date includes the share capital of the following company: |
Subsidiary: |
Name of company | Class of Shares | % Holding | Nature of business |
Parkol Marine Engineering Limited |
Ordinary A, B and C |
100% |
Ship building and repairing |
The above investment was held directly by the company for the whole period. The investments are measured at cost less impairment on the basis that they represent share in the entities that are not publicly traded. The registered office is Eskside Wharf, Church Street, Whitby, North Yorkshire, United Kingdom, YO22 4AE. |
Parkol Marine Holdings Limited (Registered number: 12128087) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31st May 2024 |
13. | INVESTMENT PROPERTY |
Group |
Total |
£ |
FAIR VALUE |
At 1st June 2023 | 937,215 |
Additions | 347,558 |
At 31st May 2024 | 1,284,773 |
NET BOOK VALUE |
At 31st May 2024 | 1,284,773 |
At 31st May 2023 | 937,215 |
Fair value at 31st May 2024 is represented by: |
£ |
Cost | 1,284,773 |
Company |
Total |
£ |
FAIR VALUE |
At 1st June 2023 |
Additions |
At 31st May 2024 |
NET BOOK VALUE |
At 31st May 2024 |
At 31st May 2023 |
Investment properties were valued by the directors as at 31st May 2024 at open market value. |
14. | STOCKS |
Group |
2024 | 2023 |
£ | £ |
Engineering stores | 649,160 | 681,739 |
Work-in-progress | - | 1,970 |
649,160 | 683,709 |
Parkol Marine Holdings Limited (Registered number: 12128087) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31st May 2024 |
15. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group |
2024 | 2023 |
£ | £ |
Trade debtors | 1,467,880 | 677,524 |
Amounts recoverable on contract | 919,037 | 951,365 |
Other debtors | 571 | 10,126 |
Directors' current accounts | 73,175 | 23,083 |
VAT | 147,379 | 207,098 |
Prepayments and accrued income | 185,102 | 482,052 |
2,793,144 | 2,351,248 |
16. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Bank loans and overdrafts (see note 18) | 27,002 | 13,200 |
Payments on account | 2,568,070 | 891,501 |
Trade creditors | 703,053 | 1,853,801 |
Amounts owed to group undertakings | - | - |
Social security and other taxes | 51,916 | 52,095 |
Other creditors | 17,082 | 5,511 |
Directors' current accounts | 115,158 | 204,317 | - | - |
Accruals and deferred income | 385,351 | 206,418 |
3,867,632 | 3,226,843 |
17. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Bank loans (see note 18) | 345,352 | 146,260 |
Parkol Marine Holdings Limited (Registered number: 12128087) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31st May 2024 |
18. | LOANS |
An analysis of the maturity of loans is given below: |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Amounts falling due within one year or | on demand: |
Bank loans | 27,002 | 13,200 |
Amounts falling due between one and | two years: |
Bank loans - 1-2 years | 27,918 | 146,260 |
Amounts falling due between two and | five years: |
Bank loans - 2-5 years | 317,434 | - |
There are two bank loans outstanding. The first is repayable by monthly instalments over a period of five years to March 2025 when the final instalment payment falls due. Interest is charged at a margin of 2.25% over base per annum. It is anticipated that the loan will be refinanced prior to the final repayment date. The second is repayable over a period of fifteen years to June 2038. Interest is charged at a margin of 2.1% over Bank of England base rate. |
19. | SECURED DEBTS |
The following secured debts are included within creditors: |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Bank loans | 372,354 | 159,460 |
Bank loans are secured by way of a legal mortgage and fixed charge over all of the assets of the Group. |
In the prior year, the Group was party to an advanced payment guarantee with National Westminster Bank Plc secured by way of fixed and floating charges over the assets of the Group. |
20. | PROVISIONS FOR LIABILITIES |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Deferred tax | 124,491 | 16,710 | 75,353 | 81,769 |
Other provisions | - | 94,000 | - | - |
Aggregate amounts | 124,491 | 110,710 | 75,353 | 81,769 |
Parkol Marine Holdings Limited (Registered number: 12128087) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31st May 2024 |
20. | PROVISIONS FOR LIABILITIES - continued |
Group |
Deferred | Other |
tax | provisions |
£ | £ |
Balance at 1st June 2023 | 16,710 | 94,000 |
Provided during year | 107,781 | - |
Balance at 31st May 2024 | 124,491 | 94,000 |
Company |
Deferred |
tax |
£ |
Balance at 1st June 2023 |
Provided during year | ( |
) |
Balance at 31st May 2024 |
The provision for deferred includes the effects of upward property revaluations, accelerated capital allowances, taxable losses carried forward and other short term timing differences. The expected net reversal of deferred tax assets and liabilities in 2025 is £28,169. |
21. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2024 | 2023 |
value: | £ | £ |
Ordinary A | £1 | 816 | 816 |
Ordinary B | £1 | 1,010 | 1,010 |
Ordinary C | £1 | 1,000 | 1,000 |
2,826 | 2,826 |
22. | RESERVES |
Group |
Capital |
Retained | Revaluation | redemption |
earnings | reserve | reserve | Totals |
£ | £ | £ | £ |
At 1st June 2023 | 1,772,951 | 242,194 | 353 | 2,015,498 |
Profit for the year | 325,864 | - | - | 325,864 |
Dividends | (152,750 | ) | - | - | (152,750 | ) |
At 31st May 2024 | 1,946,065 | 242,194 | 353 | 2,188,612 |
Parkol Marine Holdings Limited (Registered number: 12128087) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31st May 2024 |
22. | RESERVES - continued |
Company |
Capital |
Retained | Revaluation | redemption |
earnings | reserve | reserve | Totals |
£ | £ | £ | £ |
At 1st June 2023 | 542,952 |
Profit for the year | - | - |
Dividends | ( |
) | - | - | ( |
) |
At 31st May 2024 | 530,358 |
Retained earnings |
Retained earnings represents cumulative profits and losses net of dividends and other adjustments. |
Revaluation reserve |
The revaluation reserve is used to record increases in the fair value of freehold land and buildings and is stated net of related deferred tax expense. The revaluation reserve is a non-distributable reserve. |
Capital redemption reserve |
The capital redemption reserve represents the Company's repurchase of own shares. |
23. | PENSION COMMITMENTS |
Employer contributions to defined contribution schemes for the year amounted to £26,656 (2023 £23,019). At 31 May 2024 there was £5,925 outstanding (2023 £6,927). |
24. | CONTINGENT LIABILITIES |
The company has pledged security in favour of National Westminster Bank Plc on behalf of its subsidiary undertaking in respect of advanced payment guarantees on payments advanced to that company. The security is in the form of fixed and floating charges over freehold property and all other assets of the company. The potential liability under the arrangement as at 31 May 2024 was £225,830 (2023: £nil). |
25. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES |
Included within other creditors falling due within one year are amounts due to the directors of £47,658 (2023: £23,083). Included within other debtors are amounts due from a director of £73,175 (2023: £204,317). During the year, total amounts advanced to the directors amounted to £333,271, total amounts repaid amounted to £124,007. The loan amounts to and from the directors are repayable on demand and accrue interest at 6%. |
26. | RELATED PARTY DISCLOSURES |
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements. |
Parkol Marine Holdings Limited (Registered number: 12128087) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31st May 2024 |
Key management personnel of the entity or its parent (in the | aggregate) |
Amounts due from/to directors are disclosed at notes 15 and 16 respectively. Amounts owed are repayable on demand and accrue interest at 6%. |
During the year ended 31 May 2024, dividends totalling £85,250 (2023: £261,500) were paid to directors. Total key management remuneration, including dividends paid to directors, amounted to £116,176 (2023: £292,743). |
27. | ULTIMATE CONTROLLING PARTY |
The company is under the control of the directors but has no ultimate controlling party. |