REGISTERED NUMBER: |
Parkol Marine Engineering Limited |
Strategic Report, Report of the Directors and |
Financial Statements for the Year Ended 31st May 2024 |
REGISTERED NUMBER: |
Parkol Marine Engineering Limited |
Strategic Report, Report of the Directors and |
Financial Statements for the Year Ended 31st May 2024 |
Parkol Marine Engineering Limited (Registered number: 04005938) |
Contents of the Financial Statements |
for the year ended 31st May 2024 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 4 |
Report of the Independent Auditors | 6 |
Statement of Comprehensive Income | 10 |
Balance Sheet | 11 |
Statement of Changes in Equity | 12 |
Notes to the Financial Statements | 13 |
Parkol Marine Engineering 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 Engineering Limited (Registered number: 04005938) |
Strategic Report |
for the year ended 31st May 2024 |
The directors present their strategic report for the year ended 31st May 2024. |
REVIEW OF BUSINESS |
In light of the sustained poor economic climate, The Directors are pleased with the Company'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 Company 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 Company 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 Company'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 company which also allows them to monitor performance.The operational performance indicators are commercially sensitive and have not been disclosed. |
Parkol Marine Engineering Limited (Registered number: 04005938) |
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: |
Although rates are less than prior recent years, a continued period of inflation, high interest rates and economic uncertainty present financial risk. This has led to lower enquiries in certain sectors. |
Long term contracts are monitored regularly 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 potential financial risk to the Company. Currency requirements are monitored on a contract by contract basis and measures taken in the contract 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 Company raises milestone invoices on long term contracts in line with agreed terms in order to mitigate credit risk. |
Staff risk: |
The Company has been exposed to a lack of supply of skilled shipbuilding labour in recent years. This has been mitigated by utilising subcontracted agency labour where required. |
FUTURE DEVELOPMENTS |
The Company 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 and Environmental, occupational Health & Safety standards ISO standards and ERP systems. |
Staff retention and recruitment helps expand the knowledge and experience within the Company. New measures and annual reviews of employment benefits which contributed positively to staff retention. |
The client sector has being expanded to remove the historical risk presented by a reliance on one industry. |
RESEARCH AND DEVELOPMENT ACTIVITIES |
The Company is recognised throughout the industry for its innovative custom designs and retrofitting/refitting existing boats to a more efficient design. The Company 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 Engineering Limited (Registered number: 04005938) |
Report of the Directors |
for the year ended 31st May 2024 |
The directors present their report with the financial statements of the Company for the year ended 31st May 2024. |
PRINCIPAL ACTIVITIES |
The principal activities of the Company in the year under review were those of ship building and repairing. |
DIVIDENDS |
The directors do not recommend the payment of a final dividend. The total distribution of dividends for the year ended 31st May 2024 will be £152,750. |
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 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 of the profit or loss of the Company for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and 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 transactions and disclose with reasonable accuracy at any time the financial position of the Company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
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 Company'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 Company's auditors are aware of that information. |
Parkol Marine Engineering Limited (Registered number: 04005938) |
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 Engineering Limited |
Opinion |
We have audited the financial statements of Parkol Marine Engineering Limited (the 'Company') for the year ended 31st May 2024 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
In our opinion the financial statements: |
- | give a true and fair view of the state of the Company's affairs as at 31st May 2024 and of its 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 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 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 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 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 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 Engineering Limited |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report 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, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page 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 Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so. |
Report of the Independent Auditors to the Members of |
Parkol Marine Engineering 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 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, including the Companies Act 2006, taxation legislation, data protection, anti-bribery, employment, 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'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 Engineering 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 Engineering Limited (Registered number: 04005938) |
Statement of Comprehensive Income |
for the year ended 31st May 2024 |
2024 | 2023 |
Notes | £ | £ |
TURNOVER | 3 |
Cost of sales |
GROSS PROFIT |
Administrative expenses |
448,264 | (196,265 | ) |
Other operating income |
OPERATING PROFIT/(LOSS) | 5 | ( |
) |
Interest receivable and similar income |
458,464 | (190,074 | ) |
Interest payable and similar expenses | 6 |
PROFIT/(LOSS) BEFORE TAXATION | ( |
) |
Tax on profit/(loss) | 7 | ( |
) |
PROFIT/(LOSS) FOR THE FINANCIAL YEAR |
( |
) |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
( |
) |
Parkol Marine Engineering Limited (Registered number: 04005938) |
Balance Sheet |
31st May 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 9 |
Tangible assets | 10 |
CURRENT ASSETS |
Stocks | 11 |
Debtors | 12 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 13 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
PROVISIONS FOR LIABILITIES | 15 |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 16 |
Capital redemption reserve | 17 |
Retained earnings | 17 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
Parkol Marine Engineering Limited (Registered number: 04005938) |
Statement of Changes in Equity |
for the year ended 31st May 2024 |
Called up | Capital |
share | Retained | redemption | Total |
capital | earnings | 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 Engineering Limited (Registered number: 04005938) |
Notes to the Financial Statements |
for the year ended 31st May 2024 |
1. | STATUTORY INFORMATION |
Parkol Marine Engineering Limited is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
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. |
Financial Reporting Standard 102 - reduced disclosure exemptions |
The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland": |
• | the requirements of Section 7 Statement of Cash Flows; |
• | the requirement of paragraph 3.17(d); |
• | the requirement of paragraph 33.7. |
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. |
Parkol Marine Engineering Limited (Registered number: 04005938) |
Notes to the Financial Statements - continued |
for the year ended 31st May 2024 |
2. | ACCOUNTING POLICIES - continued |
Goodwill |
Goodwill has been written off over its original estimated useful life of ten years. |
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 |
Stocks and work in progress |
Stocks 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 company 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 company 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. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the 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. |
Parkol Marine Engineering Limited (Registered number: 04005938) |
Notes to the Financial Statements - continued |
for the year ended 31st May 2024 |
2. | ACCOUNTING POLICIES - continued |
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. |
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. |
Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. |
3. | TURNOVER |
The turnover and profit (2023 - loss) before taxation are attributable to the principal activities of the Company. |
An analysis of turnover by class of business is given below: |
2024 | 2023 |
£ | £ |
4. | EMPLOYEES AND DIRECTORS |
2024 | 2023 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
Parkol Marine Engineering Limited (Registered number: 04005938) |
Notes to the Financial Statements - continued |
for the year ended 31st May 2024 |
4. | EMPLOYEES AND DIRECTORS - continued |
The average number of employees during the year was as follows: |
2024 | 2023 |
Directors | 3 | 4 |
Employees | 54 | 60 |
2024 | 2023 |
£ | £ |
Directors' remuneration |
Directors' pension contributions to money purchase schemes |
5. | OPERATING PROFIT/(LOSS) |
The operating profit (2023 - operating loss) is stated after charging: |
2024 | 2023 |
£ | £ |
Hire of plant and machinery |
Other operating leases |
Depreciation - owned assets |
Loss on disposal of fixed assets |
Auditors' remuneration |
Foreign exchange differences |
Vehicle leases |
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2024 | 2023 |
£ | £ |
Directors' loan interest |
Other interest paid |
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 | ( |
) |
Tax on profit/(loss) | ( |
) |
UK corporation tax has been charged at 25% (2023 - 25%). |
Parkol Marine Engineering Limited (Registered number: 04005938) |
Notes to the Financial Statements - continued |
for the year ended 31st May 2024 |
7. | TAXATION - continued |
Reconciliation of total tax charge/(credit) included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
2024 | 2023 |
£ | £ |
Profit/(loss) before tax | ( |
) |
Profit/(loss) multiplied by the standard rate of corporation tax in the UK of |
( |
) |
Effects of: |
Expenses not deductible for tax purposes |
Change in tax rate | - | (3,404 | ) |
deduction |
Enhanced capital allowances | - | (2,554 | ) |
Total tax charge/(credit) | 114,197 | (53,854 | ) |
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. | DIVIDENDS |
2024 | 2023 |
£ | £ |
Ordinary A shares of £1 each |
Interim |
Ordinary B shares of £1 each |
Interim |
Ordinary C shares of £1 each |
Interim |
9. | INTANGIBLE FIXED ASSETS |
Goodwill |
£ |
COST |
At 1st June 2023 |
and 31st May 2024 |
AMORTISATION |
At 1st June 2023 |
and 31st May 2024 |
NET BOOK VALUE |
At 31st May 2024 |
At 31st May 2023 |
Parkol Marine Engineering Limited (Registered number: 04005938) |
Notes to the Financial Statements - continued |
for the year ended 31st May 2024 |
10. | TANGIBLE FIXED ASSETS |
Fixtures |
Leasehold | Plant and | and | Motor |
improvements | machinery | fittings | vehicles | Totals |
£ | £ | £ | £ | £ |
COST |
At 1st June 2023 |
Additions |
Disposals | ( |
) | ( |
) | ( |
) |
At 31st May 2024 |
DEPRECIATION |
At 1st June 2023 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) | ( |
) |
At 31st May 2024 |
NET BOOK VALUE |
At 31st May 2024 |
At 31st May 2023 |
11. | STOCKS |
2024 | 2023 |
£ | £ |
Engineering stores |
Work-in-progress |
12. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2024 | 2023 |
£ | £ |
Trade debtors |
Amounts owed by group undertakings |
Amounts recoverable on contract |
Other debtors |
Directors' current accounts | 73,175 | 23,083 |
VAT |
Deferred tax asset |
Prepayments and accrued income |
Parkol Marine Engineering Limited (Registered number: 04005938) |
Notes to the Financial Statements - continued |
for the year ended 31st May 2024 |
13. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2024 | 2023 |
£ | £ |
Payments on account |
Trade creditors |
Social security and other taxes |
Other creditors |
Directors' current accounts | 115,158 | 206,914 |
Accruals and deferred income |
14. | LEASING AGREEMENTS |
Minimum lease payments under non-cancellable operating leases fall due as follows: |
2024 | 2023 |
£ | £ |
Within one year |
Between one and five years |
15. | PROVISIONS FOR LIABILITIES |
2024 | 2023 |
£ | £ |
Deferred tax | 49,138 | - |
Other provisions | - | 94,000 |
Deferred | Other |
tax | provisions |
£ | £ |
Balance at 1st June 2023 | ( |
) |
Provided during year |
Balance at 31st May 2024 |
The deferred tax asset relates to taxable losses carried forward as a result of trading losses and research and development enhanced expenditure deductions, net of accelerate capital allowances and other short term timing differences. The expected net reversal of deferred tax assets and liabilities in 2025 is £28,162. |
16. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2024 | 2023 |
value: | £ | £ |
Ordinary A | £1 | 816 | 816 |
Ordinary B | £1 | 1,177 | 1,177 |
Ordinary C | £1 | 1,000 | 1,000 |
2,993 | 2,993 |
Parkol Marine Engineering Limited (Registered number: 04005938) |
Notes to the Financial Statements - continued |
for the year ended 31st May 2024 |
17. | RESERVES |
Capital |
Retained | redemption |
earnings | reserve | Totals |
£ | £ | £ |
At 1st June 2023 | 1,476,900 |
Profit for the year | - |
Dividends | ( |
) | - | ( |
) |
At 31st May 2024 | 1,662,608 |
Retained earnings |
Retained earnings represents cumulative profits and losses net of dividends and other adjustments. |
Capital redemption reserve |
The capital redemption reserve represents the Company's repurchase of own shares. |
18. | PENSION COMMITMENTS |
Employer contributions to defined contribution schemes for the year amounted to £26,656 (2023 £23,019). At 31st May 2024 there was £5,925 outstanding (2023 £6,927). |
19. | CONTINGENT LIABILITIES |
The company has provided a guarantee supported by a debenture on behalf of its parent undertaking in favour of National Westminster Bank Plc in respect of group borrowings which are secured by fixed and floating charges over all assets of the company. The potential liability under the arrangement as at 31st May 2024 was £146,524 (2023: £159,460). |
20. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES |
Included within other creditors falling due within one year are amounts due to the directors of £47,658 (2023: £23,082). Included within other debtors are amounts due from a director of £73,175 (2023: £206,911). 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%. |
21. | 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. |
The directors are considered to be the key management personnel of the company and as such key management personnel compensation is the same as disclosed at note 4. |
Amounts due from/to directors are disclosed at notes 12 and 13 respectively. Amounts owed are repayable on demand and accrue interest at 6%. |
Parkol Marine Engineering Limited (Registered number: 04005938) |
Notes to the Financial Statements - continued |
for the year ended 31st May 2024 |
22. | ULTIMATE CONTROLLING PARTY |
The ultimate parent company is Parkol Marine Holdings Limited, the registered address is that shown on page 1. The parent company is under the control of the directors but has no ultimate controlling party. |
The group in which the results of the company are consolidated is that headed by Parkol Marine Holdings Limited. The consolidated financial statements of the group are available to the public and may be obtained from Companies House, Crown Way, Cardiff, CF14 3UZ. |