REGISTERED NUMBER: 09961319 (England and Wales) |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
AUDITED |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MAY 2024 |
FOR |
2PG INVESTMENTS LIMITED |
REGISTERED NUMBER: 09961319 (England and Wales) |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
AUDITED |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MAY 2024 |
FOR |
2PG INVESTMENTS LIMITED |
2PG INVESTMENTS LIMITED (REGISTERED NUMBER: 09961319) |
CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MAY 2024 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 4 |
Report of the Independent Auditors | 6 |
Consolidated Income Statement | 9 |
Consolidated Other 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 |
2PG INVESTMENTS LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 31 MAY 2024 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Statutory Auditors |
Chartered Accountants |
4th Floor Tuition House |
27-37 St George's Road |
Wimbledon |
London |
SW19 4EU |
2PG INVESTMENTS LIMITED (REGISTERED NUMBER: 09961319) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 31 MAY 2024 |
The directors present their strategic report of the company and the group for the year ended 31 May 2024. |
Introduction |
The principal activity of the company was that of a holding company and the principal activities of the group in the period under review was that of selling consumer electronic spare parts and accessories. |
The group is the leading supplier of Laptop spare parts in Europe and Australasia. We also have over 20 years expertise supplying power product solutions, the group have built strong relationships with battery and accessory manufacturers, including becoming a Duracell licensee. |
The group supplies 2-Power and Duracell branded products, OEM (Original Equipment Manufacturer) brand name products and high quality replacement products. All of which are guaranteed 100% compatible and almost all come with a one year warranty. |
The group supplies customers right across Europe including distributors, computer dealers as well as product owners themselves. |
The aim of the group is to provide a complete range of spare parts and power solutions for all tech related portable devices, including Servers, Laptops, Digital Cameras, Smartphones and Tablets. |
REVIEW OF BUSINESS |
Financial Performance |
The directors are pleased with the performance of the group. Group turnover decreased to £34,660,822 (2023 £36,289,099). The profit for the year after taxation, amounted to £919,945 (2023 £1,347,408). |
The gross profit margin of the group increased to 22.9% (2023 21.9%) while overhead expenditure increased to £6,675,262 (2023 £6,239,220). Including in overhead expenditure is a loss on foreign exchange of £71,458 (2023 £34,156) |
Financial Position |
The group is in sound financial position with net assets at 31.5.2024 amounted to £9,877,635 (2023 £9,603,737). |
The group balance sheet is underpinned by freehold property assets of £1,928,838 (2023 £1,946,670). The group has in place bank loans of £231,618 (2023 £527,028). At 31.5.2024 the group had a cash balance of £3,307,093 (2023 £3,388,680). Group stock levels decreased to £4,594,024 (2023 £5,089,611).Trade debtors were £3,171,865 (2023 £3,382,295) while trade creditors were £2,334,682 (2023 £3,155,297). |
Market Developments |
The group have operations in three key markets - Europe, Australasia and USA. |
PRINCIPAL RISKS AND UNCERTAINTIES |
The principal risk for the group relates to the continued maintenance of the group's freehold property and the profitability of its subsidiaries. The directors are closely involved in mitigating these risks. |
The Board continually reviews the potential risks facing the group. These continue to be the same issues. |
(i) Products - the evolvement of products mean that some historical categories have declined, we continue to compensate by adding new ranges. |
(ii) Economic environment - the ongoing issues over the UK leaving the EU and the knock-on effect to currencies continue to be a concern. |
The high inflation caused by the war in Ukraine and raising of interest rates has also weakened customer demand. |
2PG INVESTMENTS LIMITED (REGISTERED NUMBER: 09961319) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 31 MAY 2024 |
KEY PERFORMANCE INDICATORS |
With the changes in the category split we monitor the gross margin against sales and overheads. We are pleased to say that these remain consistent, and within expectable parameters to the board. |
31.5.2024 | 31.5.2023 |
Turnover | £34,660,822 | £36,289,099 |
Gross Profit | £7,931,695 | £7,960,687 |
Gross Profit Margin | 22.88% | 21.93% |
Overheads | £6,675,262 | £6,239,220 |
Profit Before Taxation | £1,254,911 | £1,663,176 |
Net Assets | £9,877,635 | £9,603,737 |
Cash at Bank | £3,307,093 | £3,388,680 |
Stock | £4,594,024 | £5,089,611 |
Trade Debtors | £3,171,865 | £3,382,295 |
Trade Creditors | £2,334,682 | £3,155,297 |
Average Employees | 77 | 83 |
FUTURE DEVELOPMENT |
The group will continue to grow via new product lines within the battery and IT sector and to continue its focus on growing the export sales business. |
ON BEHALF OF THE BOARD: |
2PG INVESTMENTS LIMITED (REGISTERED NUMBER: 09961319) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 MAY 2024 |
The directors present their report with the financial statements of the company and the group for the year ended 31 May 2024. |
PRINCIPAL ACTIVITY |
The principal activity of the group in the year under review was that of selling electronic and computer spare parts. |
DIVIDENDS |
During the year a dividend of 5.50 pence each for both 'A' and 'B' Ordinary £1 shares was paid on 17 January 2024 and a dividend of 3.75 pence each for both 'A' and 'B' Ordinary £1 shares was paid on 18 March 2024. |
The total distribution of dividends for the year ended 31 May 2024 was £674,325 (2023 £674,325). |
After the year end the company paid a dividend of 9.25 pence per share, totalling £674,325. |
FUTURE DEVELOPMENTS |
This is referred to in the Strategic Report. |
EVENTS SINCE THE END OF THE YEAR |
Information relating to events since the end of the year is given in the notes to the financial statements. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 June 2023 to the date of this report. |
FINANCIAL INSTRUMENTS AND RISK MANAGEMENT |
In the course of its business, the group is exposed to a number of financial risks - credit risk, liquidity risk, market risk (interest rate risk, currency risk and price risk) and competition risk.The group uses various financial instruments to manage these risks. The directors review and agree policies for managing each of these risks. |
(i) Credit risk - refers to the risk of a financial loss which would be incurred if a trade debtor does not fulfil its financial obligation. In order to manage credit risk the directors set limits for customers based on historic data and references. Credit limits are reviewed on a regular basis. |
(ii) Liquidity risk - refers to the risk that the group will not be able to meet its financial obligations as they fall due, because of a lack of liquid assets. The group's policy is to ensure that it will always have sufficient cash to allow it to meet its liabilities as they fall due. The group achieves this by monthly budgets and cashflow projections. |
(iii) Market risk - refers to the risk of loss arising due to a fluctuation in interest rates (interest rate risk), foreign exchange rates (currency risk) or other market factors (price risk): |
- interest rate risk - the group is not exposed to significant cash flow interest rate risk from long term borrowings. The group's long-term borrowings are at a fixed interest rate. |
- currency risk - the group purchases and sells products from/to overseas entities in currencies other than sterling.The group manages currency risks by using forward foreign exchange rate contracts. Forward foreign exchange rate contracts are not used for speculative purposes. |
- price risk - the group is exposed to price risk due to normal inflationary increases in the costs of the products it purchases. Products can also become obsolete. The group manages the risk by careful stock management and forecasting future trends. |
(iv) Competition risk - the group operates in a highly competitive market putting pressure on margin and turnover growth. The group is well established in the marketplace and continually strives for business efficiencies and monitors its competitors. |
2PG INVESTMENTS LIMITED (REGISTERED NUMBER: 09961319) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 MAY 2024 |
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 ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
AUDITORS |
The auditors, Hartley Fowler LLP, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
2PG INVESTMENTS LIMITED |
Opinion |
We have audited the financial statements of 2PG Investments Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 May 2024 which comprise the Consolidated Income Statement, Consolidated Other 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 31 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 |
2PG INVESTMENTS 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 five, 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. |
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: |
We identify and assess risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion. |
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following: |
-the nature of the industry and sector, control environment and business performance; |
-results of our enquiries of management about their own identification and assessment of the risks of irregularities; |
-any matters we identified having obtained and reviewed the group's documentation of their policies and procedures relating to: |
- identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non -compliance; |
- detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud; |
- the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations; |
-the matters discussed among the audit engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
2PG INVESTMENTS LIMITED |
As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud. In common with all audits we are also required to perform specific procedures to respond to the risk of management override. |
We also obtained an understanding of the legal and regulatory framework that the group operates in. The key laws and regulations we considered in this context included the UK Companies Act and tax legislation. |
In addition we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the group's ability to operate or to avoid a material penalty. |
As a result of performing the above, we did not identify any key matters related to the potential risk of fraud or non-compliance with laws and regulations. |
Our procedures to respond to risks identified included the following: |
- reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provision of relevant laws and regulations described as having a direct effect on the financial statements; |
-enquiring of management concerning actual and potential litigation and claims; |
-performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud; |
-reviewing minutes of meetings of those charged with governance, reviewing internal reports and reviewing correspondence with HMRC, and |
-in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments, assessing whether the judgements made in making accounting estimates are indicative of a potential bias and evaluating the business rationale for any significant transactions that are unusual or outside the normal course of business. |
We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indication of fraud or non-compliance with laws and regulations throughout the audit. |
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. |
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 |
Statutory Auditors |
Chartered Accountants |
4th Floor Tuition House |
27-37 St George's Road |
Wimbledon |
London |
SW19 4EU |
2PG INVESTMENTS LIMITED (REGISTERED NUMBER: 09961319) |
CONSOLIDATED INCOME STATEMENT |
FOR THE YEAR ENDED 31 MAY 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
TURNOVER | 4 | 34,660,822 | 36,289,099 |
Cost of sales | 26,729,127 | 28,328,412 |
GROSS PROFIT | 7,931,695 | 7,960,687 |
Administrative expenses | 6,675,262 | 6,239,220 |
1,256,433 | 1,721,467 |
Other operating income | 2,982 | 20,830 |
OPERATING PROFIT | 6 | 1,259,415 | 1,742,297 |
Income from interest in associated undertakings | 2,220 | (27,987 | ) |
Interest receivable and similar income | 47,620 | 3,450 |
49,840 | (24,537 | ) |
1,309,255 | 1,717,760 |
Interest payable and similar expenses | 7 | 54,344 | 54,584 |
PROFIT BEFORE TAXATION | 1,254,911 | 1,663,176 |
Tax on profit | 8 | 334,966 | 315,768 |
PROFIT FOR THE FINANCIAL YEAR |
Profit attributable to: |
Owners of the parent | 889,291 | 1,255,848 |
Non-controlling interests | 30,654 | 91,560 |
919,945 | 1,347,408 |
2PG INVESTMENTS LIMITED (REGISTERED NUMBER: 09961319) |
CONSOLIDATED OTHER COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 31 MAY 2024 |
2024 | 2023 |
Notes | £ | £ |
PROFIT FOR THE YEAR | 919,945 | 1,347,408 |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
919,945 |
1,347,408 |
Total comprehensive income attributable to: |
Owners of the parent | 889,291 | 1,255,848 |
Non-controlling interests | 30,654 | 91,560 |
919,945 | 1,347,408 |
2PG INVESTMENTS LIMITED (REGISTERED NUMBER: 09961319) |
CONSOLIDATED BALANCE SHEET |
31 MAY 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 11 | 93,294 | 131,345 |
Tangible assets | 12 | 2,216,695 | 2,271,055 |
Investments | 13 |
Interest in associate | - | (2,220 | ) |
Other investments | 28,207 | 28,209 |
2,338,196 | 2,428,389 |
CURRENT ASSETS |
Stocks | 14 | 4,594,024 | 5,089,611 |
Debtors: amounts falling due within one year | 15 | 3,708,034 | 4,034,338 |
Cash at bank | 3,307,093 | 3,388,680 |
11,609,151 | 12,512,629 |
CREDITORS |
Amounts falling due within one year | 16 | 3,937,974 | 4,869,343 |
NET CURRENT ASSETS | 7,671,177 | 7,643,286 |
TOTAL ASSETS LESS CURRENT LIABILITIES | 10,009,373 | 10,071,675 |
CREDITORS |
Amounts falling due after more than one year | 17 | (124,255 | ) | (454,952 | ) |
PROVISIONS FOR LIABILITIES | 21 | (7,483 | ) | (12,986 | ) |
NET ASSETS | 9,877,635 | 9,603,737 |
CAPITAL AND RESERVES |
Called up share capital | 22 | 7,290,000 | 7,290,000 |
Retained earnings | 23 | 2,037,633 | 1,822,667 |
SHAREHOLDERS' FUNDS | 9,327,633 | 9,112,667 |
NON-CONTROLLING INTERESTS | 550,002 | 491,070 |
TOTAL EQUITY | 9,877,635 | 9,603,737 |
The financial statements were approved by the Board of Directors and authorised for issue on 25 February 2025 and were signed on its behalf by: |
J E McBrien - Director |
2PG INVESTMENTS LIMITED (REGISTERED NUMBER: 09961319) |
COMPANY BALANCE SHEET |
31 MAY 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 11 |
Tangible assets | 12 |
Investments | 13 |
CURRENT ASSETS |
Debtors: amounts falling due within one year | 15 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 16 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year | 17 |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 22 |
Retained earnings | 23 |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | 713,354 | 1,472,117 |
The financial statements were approved by the Board of Directors and authorised for issue on |
2PG INVESTMENTS LIMITED (REGISTERED NUMBER: 09961319) |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 MAY 2024 |
Called up |
share | Retained | Non-controlling | Total |
capital | earnings | Total | interests | equity |
£ | £ | £ | £ | £ |
Balance at 1 June 2022 | 7,290,000 | 1,241,144 | 8,531,144 | - | 8,531,144 |
Changes in equity |
Dividends | - | (674,325 | ) | (674,325 | ) | - | (674,325 | ) |
Total comprehensive income | - | 1,255,848 | 1,255,848 | 91,560 | 1,347,408 |
7,290,000 | 1,822,667 | 9,112,667 | 91,560 | 9,204,227 |
Acquisition of non-controlling interest | - | - | - | 399,510 | 399,510 |
Balance at 31 May 2023 | 7,290,000 | 1,822,667 | 9,112,667 | 491,070 | 9,603,737 |
Changes in equity |
Dividends | - | (674,325 | ) | (674,325 | ) | - | (674,325 | ) |
Total comprehensive income | - | 889,291 | 889,291 | 30,654 | 919,945 |
7,290,000 | 2,037,633 | 9,327,633 | 521,724 | 9,849,357 |
Acquisition of non-controlling interest | - | - | - | 8,456 | 8,456 |
Disposal of non-controlling interest | - | - | - | 19,822 | 19,822 |
Balance at 31 May 2024 | 7,290,000 | 2,037,633 | 9,327,633 | 550,002 | 9,877,635 |
2PG INVESTMENTS LIMITED (REGISTERED NUMBER: 09961319) |
COMPANY STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 MAY 2024 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 June 2022 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 31 May 2023 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 31 May 2024 |
2PG INVESTMENTS LIMITED (REGISTERED NUMBER: 09961319) |
CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 MAY 2024 |
2024 | 2023 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 1,219,913 | 2,444,778 |
Interest paid | (53,582 | ) | (53,593 | ) |
Interest element of hire purchase payments paid | (762 | ) | (991 | ) |
Tax paid | (295,334 | ) | (430,050 | ) |
Net cash from operating activities | 870,235 | 1,960,144 |
Cash flows from investing activities |
Purchase of intangible fixed assets | 17,257 | - |
Purchase of tangible fixed assets | (48,040 | ) | (93,842 | ) |
Sale of tangible fixed assets | 8,251 | - |
Subsidiary bank balance at acquisition | - | 576,281 |
Acquisition of subsidiary | - | (415,816 | ) |
Interest received | 47,620 | 3,450 |
Net cash from investing activities | 25,088 | 70,073 |
Cash flows from financing activities |
Loan repayments in year | (295,410 | ) | (142,019 | ) |
Capital repayments in year | (7,175 | ) | (5,292 | ) |
Amount withdrawn by directors | - | (275,000 | ) |
Equity dividends paid | (674,325 | ) | (674,325 | ) |
Net cash from financing activities | (976,910 | ) | (1,096,636 | ) |
(Decrease)/increase in cash and cash equivalents | (81,587 | ) | 933,581 |
Cash and cash equivalents at beginning of year |
2 |
3,388,680 |
2,455,099 |
Cash and cash equivalents at end of year | 2 | 3,307,093 | 3,388,680 |
2PG INVESTMENTS LIMITED (REGISTERED NUMBER: 09961319) |
NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 MAY 2024 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2024 | 2023 |
£ | £ |
Profit before taxation | 1,254,911 | 1,663,176 |
Depreciation charges | 140,457 | 142,573 |
Profit on disposal of fixed assets | (8,251 | ) | - |
Pre acquisition subsidiary net assets | - | 415,816 |
Finance costs | 54,344 | 54,584 |
Finance income | (49,840 | ) | 24,537 |
1,391,621 | 2,300,686 |
Decrease/(increase) in stocks | 495,587 | (983,670 | ) |
Decrease in trade and other debtors | 322,355 | 574,112 |
(Decrease)/increase in trade and other creditors | (989,650 | ) | 553,650 |
Cash generated from operations | 1,219,913 | 2,444,778 |
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 31 May 2024 |
31/5/24 | 1/6/23 |
£ | £ |
Cash and cash equivalents | 3,307,093 | 3,388,680 |
Year ended 31 May 2023 |
31/5/23 | 1/6/22 |
£ | £ |
Cash and cash equivalents | 3,388,680 | 2,455,099 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1/6/23 | Cash flow | At 31/5/24 |
£ | £ | £ |
Net cash |
Cash at bank | 3,388,680 | (81,587 | ) | 3,307,093 |
3,388,680 | (81,587 | ) | 3,307,093 |
Debt |
Finance leases | (33,417 | ) | 7,175 | (26,242 | ) |
Debts falling due within 1 year | (247,347 | ) | 39,984 | (207,363 | ) |
Debts falling due after 1 year | (379,681 | ) | 255,426 | (124,255 | ) |
(660,445 | ) | 302,585 | (357,860 | ) |
Total | 2,728,235 | 220,998 | 2,949,233 |
2PG INVESTMENTS LIMITED (REGISTERED NUMBER: 09961319) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MAY 2024 |
1. | STATUTORY INFORMATION |
2PG Investments Limited is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
These financial statements are the company's separate financial statements. |
2. | STATEMENT OF COMPLIANCE |
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. |
3. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Basis of consolidation |
The group consolidated financial statements include the financial statements of the company and its subsidiary undertakings made up to 31 May 2024.. |
All transactions and balances between group companies are eliminated on consolidation. |
Profit or loss and other comprehensive income of subsidiaries acquired of during the year are recognised from the effective date of acquisition. |
The group attributes total comprehensive income or loss of subsidiaries between the owners of the parent and the non-controlling interests based on their respective ownership interests. |
Business combinations |
The group applies the acquisition method in accounting for business combinations. The consideration transferred by the group to obtain control of a subsidiary is calculated as the sum of the acquisition-date fair values of assets transferred, liabilities incurred and the equity interest issued by the group, which includes the fair value of any asset or liability arising from a contingent consideration agreement. Acquisition costs are expensed as incurred. |
Investments in associates |
Investments in associates are accounted for using the equity method. |
The carrying amount of the investment in associates is increased or decreased to recognise the group's share of the profit or loss and other comprehensive income of the associate. |
Significant judgements and estimates |
The Directors have made a number of estimates and assumptions regarding the future, and made some significant judgements in applying the group’s accounting policies. These are discussed below: |
(i). Impairment of stock |
The group sells electronic and computer spare parts and is subject to changing consumer demands. As a result it is necessary to consider the recoverability of the cost of stock and the associated provisioning required. When calculating the stock provision, management considers the nature and condition of the the stock, as well as applying assumptions around anticipated saleability of the stock. |
(ii). Depreciation on tangible fixed assets |
The annual depreciation charge for tangible fixed assets is sensitive to changes in the estimated economic lives and residual values of the assets.The useful lives and residual values are re-assessed annually. |
2PG INVESTMENTS LIMITED (REGISTERED NUMBER: 09961319) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MAY 2024 |
3. | ACCOUNTING POLICIES - continued |
(iii). Amortisation of Goodwill |
Goodwill is reviewed for impairment in accordance with FRS 102 Section 27 Impairment of assets when there is an indication that goodwill may be impaired. |
(iv). Impairment of financial assets (including trade debtors) |
The group makes an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade and other debtors, management considers factors including the ageing profile and historical experience. |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
Income recognition |
Income from the sale of goods is recognised when the significant risks and rewards of ownership of the goods has transferred to the buyer. In practice this means that income is recognised when the goods are invoiced. |
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. |
Tangible fixed assets |
Freehold property | - |
Long leasehold | - |
Plant and machinery | - |
Fixtures and fittings | - |
Motor vehicles | - |
Depreciation is not charged in respect of freehold land. |
The carrying values of tangible assets are reviewed for impairment if circumstances indicate the carrying value may not be recoverable. |
Investment properties |
In the company's individual financial statements the investment property is rented to another group company .The company has chosen to account for this property using the cost model and has therefore classified it within tangible fixed assets as freehold property at historical cost less depreciation. |
Stocks |
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, 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. |
2PG INVESTMENTS LIMITED (REGISTERED NUMBER: 09961319) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MAY 2024 |
3. | 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 |
1) The financial statements are presented in Pound Sterling (£) which is the group's presentational currency. |
The items included in these financial statements relating to the group are measured using the functional currency, that is the currency of the primary economic environment in which the group operates. The directors' consider the group's "functional currency" to be Pound Sterling (£). |
Foreign currency transactions are translated into the functional currency using the prevailing exchange rates. |
Monetary assets and liabilities denominated in foreign currencies at the reporting date are translated at the exchange rate ruling at that date. Foreign exchange gains and losses on translation are recognised in the income statement for the period. |
2) The results and financial position of foreign subsidiaries that have a functional currency different from the presentational currency are translated into the presentational currency as follows: |
- assets and liabilities are translated at the closing rate at the date of the balance sheet |
- income and expenses are translated at average exchange rates, and |
- all resulting exchange differences are recognised in comprehensive income |
Lease commitments |
Leases that do not transfer all the risks and rewards of ownership are classified as operating lease. Rentals paid under operating leases are charged to profit and loss on a straight line basis over the period of the lease. |
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. |
Basic financial instruments |
Cash at bank |
Cash at bank includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account. |
Debtors |
Trade and other debtors are recognised at the settlement amount due. Prepayments are recognised at the invoiced cost prepaid. |
Creditors |
Creditors are recognised when the group has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors are normally recognised at the settlement amount. |
2PG INVESTMENTS LIMITED (REGISTERED NUMBER: 09961319) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MAY 2024 |
3. | ACCOUNTING POLICIES - continued |
Interest-bearing loans and borrowings: All interest bearing loans and borrowings which are basic financial instruments are initially recognised at the present value of cash payable to the bank (including interest). After initial recognition they are measured at amortised cost using the effective interest rate method, less impairment. The effective interest rate amortised is included in the income statement. |
Other financial liabilities |
Derivatives, including optional forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. |
Share capital |
Ordinary shares are classified as equity. |
4. | TURNOVER |
The turnover and profit before taxation are attributable to the one principal activity of the group. |
An analysis of turnover by geographical market is given below: |
2024 | 2023 |
£ | £ |
UK Sales | 25,601,594 | 27,538,272 |
EU Sales | 7,976,202 | 7,989,095 |
Rest of the World Sales | 1,083,026 | 761,732 |
34,660,822 | 36,289,099 |
5. | EMPLOYEES AND DIRECTORS |
2024 | 2023 |
£ | £ |
Wages and salaries | 3,138,942 | 3,064,188 |
Social security costs | 238,422 | 250,208 |
Other pension costs | 100,269 | 85,619 |
3,477,633 | 3,400,015 |
The average number of employees during the year was as follows: |
2024 | 2023 |
Administrative | 28 | 31 |
Sales and distribution | 49 | 55 |
2024 | 2023 |
£ | £ |
Directors' remuneration | 213,076 | 211,793 |
Directors' pension contributions to money purchase schemes | 2,034 | 2,034 |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes | 2 | 2 |
2PG INVESTMENTS LIMITED (REGISTERED NUMBER: 09961319) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MAY 2024 |
5. | EMPLOYEES AND DIRECTORS - continued |
Information regarding the highest paid director is as follows: |
2024 | 2023 |
£ | £ |
Emoluments etc | 173,978 | 174,261 |
Pension contributions to money purchase schemes | 1,321 | 1,321 |
6. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
2024 | 2023 |
£ | £ |
Hire of plant and machinery | 29,160 | 15,505 |
Depreciation - owned assets | 91,540 | 98,491 |
Depreciation - assets on hire purchase contracts | 10,860 | 7,240 |
Profit on disposal of fixed assets | (8,251 | ) | - |
Goodwill amortisation | 38,051 | 36,842 |
Auditors' remuneration | 35,292 | 37,625 |
Auditors' remuneration for non audit work | 12,558 | 17,226 |
Foreign exchange differences | 71,458 | 34,186 |
Gain on disposal of subsidiary | (20,662 | ) | - |
7. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2024 | 2023 |
£ | £ |
Bank loan interest | 22,145 | 19,283 |
Loan interest | 5,015 | 13,739 |
Interest payable | 26,422 | 20,571 |
Hire purchase | 762 | 991 |
54,344 | 54,584 |
8. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2024 | 2023 |
£ | £ |
Current tax: |
UK corporation tax | 340,932 | 318,334 |
Corporation tax re prior year | (463 | ) | - |
Total current tax | 340,469 | 318,334 |
Deferred tax | (5,503 | ) | (2,566 | ) |
Tax on profit | 334,966 | 315,768 |
UK corporation tax has been charged at 25 % (2023 - 20 %). |
2PG INVESTMENTS LIMITED (REGISTERED NUMBER: 09961319) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MAY 2024 |
8. | TAXATION - continued |
Reconciliation of total tax charge 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 before tax | 1,254,911 | 1,663,176 |
Profit multiplied by the standard rate of corporation tax in the UK of 25 % (2023 - 20 %) |
313,728 |
332,635 |
Effects of: |
Expenses not deductible for tax purposes | 2,030 | 3,775 |
Depreciation in excess of capital allowances | 7,380 | 8,716 |
Effect of taxation of associates | 555 | 5,597 |
Goodwill amortisation | 9,512 | 7,370 |
credits |
Loss relief | (381 | ) | (46,758 | ) |
Deferred tax | (5,503 | ) | (2,566 | ) |
Other adjustments | 8,108 | 6,999 |
Corporation tax prior year | (463 | ) | - |
Total tax charge | 334,966 | 315,768 |
9. | INDIVIDUAL INCOME STATEMENT |
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. |
10. | DIVIDENDS |
2024 | 2023 |
£ | £ |
'A' Ordinary shares shares of £1 each |
Interim | 67,432 | 67,432 |
'B' Ordinary shares shares of £1 each |
Interim | 606,893 | 606,893 |
674,325 | 674,325 |
2PG INVESTMENTS LIMITED (REGISTERED NUMBER: 09961319) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MAY 2024 |
11. | INTANGIBLE FIXED ASSETS |
Group |
Customer |
Goodwill | lists | Totals |
£ | £ | £ |
COST |
At 1 June 2023 |
and 31 May 2024 | 488,280 | 58,559 | 546,839 |
AMORTISATION |
At 1 June 2023 | 356,935 | 58,559 | 415,494 |
Amortisation for year | 38,051 | - | 38,051 |
At 31 May 2024 | 394,986 | 58,559 | 453,545 |
NET BOOK VALUE |
At 31 May 2024 | 93,294 | - | 93,294 |
At 31 May 2023 | 131,345 | - | 131,345 |
Intangible assets consisted of: |
1) Goodwill acquired during the year ended 31 May 2017 arising on the acquisition of IT Parts (Europe) Limited. The goodwill is being amortised evenly over the directors' estimate of its useful life of 5 years. |
2) Goodwill acquired in PSA Parts Limited which arose on the incorporation of PSA Parts on 9 April 1998. This goodwill is being amortised evenly over the directors' estimate of its useful life of 20 years. At 31 May 2018 this goodwill has been written off. |
3) Goodwill arising on the acquisition of PSA Parts Limited in the year ended 31 May 2016. This goodwill is being amortised evenly over the directors' estimate of its useful life of 10 years. |
4) Customer lists acquired during the year ended 31 May 2017 following the acquisition of IT Parts (Europe) Limited is being amortised evenly over the directors' estimate of their useful life of 5 years. |
5) Goodwill arising on the acquisition of The Replace Base Limited Limited in the year ended 31 May 2023. This goodwill is being amortised evenly over the directors' estimate of its useful life of 10 years. |
2PG INVESTMENTS LIMITED (REGISTERED NUMBER: 09961319) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MAY 2024 |
12. | TANGIBLE FIXED ASSETS |
Group |
Freehold | Long | Plant and |
property | leasehold | machinery |
£ | £ | £ |
COST |
At 1 June 2023 | 2,313,549 | 86,860 | 464,443 |
Additions | - | - | 48,040 |
Disposals | - | - | - |
At 31 May 2024 | 2,313,549 | 86,860 | 512,483 |
DEPRECIATION |
At 1 June 2023 | 366,879 | 11,335 | 333,656 |
Charge for year | 17,832 | 6,101 | 48,109 |
Eliminated on disposal | - | - | - |
At 31 May 2024 | 384,711 | 17,436 | 381,765 |
NET BOOK VALUE |
At 31 May 2024 | 1,928,838 | 69,424 | 130,718 |
At 31 May 2023 | 1,946,670 | 75,525 | 130,787 |
Fixtures |
and | Motor |
fittings | vehicles | Totals |
£ | £ | £ |
COST |
At 1 June 2023 | 137,796 | 92,160 | 3,094,808 |
Additions | - | - | 48,040 |
Disposals | - | (37,965 | ) | (37,965 | ) |
At 31 May 2024 | 137,796 | 54,195 | 3,104,883 |
DEPRECIATION |
At 1 June 2023 | 54,311 | 57,572 | 823,753 |
Charge for year | 12,558 | 17,800 | 102,400 |
Eliminated on disposal | - | (37,965 | ) | (37,965 | ) |
At 31 May 2024 | 66,869 | 37,407 | 888,188 |
NET BOOK VALUE |
At 31 May 2024 | 70,927 | 16,788 | 2,216,695 |
At 31 May 2023 | 83,485 | 34,588 | 2,271,055 |
Included in cost of land and buildings is freehold land of £1,267,500 (2023 - £1,267,500) which is not depreciated. |
2PG INVESTMENTS LIMITED (REGISTERED NUMBER: 09961319) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MAY 2024 |
12. | TANGIBLE FIXED ASSETS - continued |
Group |
Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
Motor |
vehicles |
£ |
COST |
At 1 June 2023 |
and 31 May 2024 | 54,300 |
DEPRECIATION |
At 1 June 2023 | 30,431 |
Charge for year | 10,860 |
At 31 May 2024 | 41,291 |
NET BOOK VALUE |
At 31 May 2024 | 13,009 |
At 31 May 2023 | 23,869 |
Company |
Freehold |
property |
£ |
COST |
At 1 June 2023 |
and 31 May 2024 |
DEPRECIATION |
At 1 June 2023 |
Charge for year |
At 31 May 2024 |
NET BOOK VALUE |
At 31 May 2024 |
At 31 May 2023 |
Included in cost of land and buildings is freehold land of £ 1,267,500 (2023 - £ 1,267,500 ) which is not depreciated. |
The freehold property is rented to another group company. The group has chosen to account for this property using the cost model.The net book value of the freehold property at the year end was £1,928,838 (2023 £1,946,670). |
2PG INVESTMENTS LIMITED (REGISTERED NUMBER: 09961319) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MAY 2024 |
13. | FIXED ASSET INVESTMENTS |
Group |
Shares in | Interest |
group | in | Unlisted |
undertakings | associate | investments | Totals |
£ | £ | £ | £ |
COST |
At 1 June 2023 | 2 | (2,220 | ) | 28,207 | 25,989 |
Disposals | (2 | ) | 5,757 | - | 5,755 |
Share of profit/(loss) | - | (3,537 | ) | - | (3,537 | ) |
At 31 May 2024 | - | - | 28,207 | 28,207 |
NET BOOK VALUE |
At 31 May 2024 | - | - | 28,207 | 28,207 |
At 31 May 2023 | 2 | (2,220 | ) | 28,207 | 25,989 |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1 June 2023 |
Additions |
At 31 May 2024 |
NET BOOK VALUE |
At 31 May 2024 |
At 31 May 2023 |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiaries |
Registered office: England and Wales |
Nature of business: |
% |
Class of shares: | holding |
Registered office: England and Wales |
Nature of business: |
% |
Class of shares: | holding |
Registered office: USA |
Nature of business: |
% |
Class of shares: | holding |
2PG INVESTMENTS LIMITED (REGISTERED NUMBER: 09961319) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MAY 2024 |
13. | FIXED ASSET INVESTMENTS - continued |
Registered office: Netherlands |
Nature of business: |
% |
Class of shares: | holding |
Registered office: England and Wales |
Nature of business: |
% |
Class of shares: | holding |
PSA Spares Limited |
Registered office: |
Nature of business: Dormant |
% |
Class of shares: | holding |
Ordinary | 100.00 |
Disposal of subsidiary |
On 1 May 2024 the group disposed of Repair Base Billings Limited, a 100% subsidiary of Replace Base Limited for £1. |
The net liabilities of the disposed subsidiary at the date of disposal were £40,484. The Minority interest on disposal amounted to £19,837, resulting in a gain on disposal of £20,662. |
The subsidiary disposed of during the year did not have a significant contribution to the group's operations. |
Disposal of Associate |
On 18 December 2023 the group disposed of PSA Parts Pty Limited, which was owned 50% by PSA Parts Limited for £1. |
Other investments | Group |
£ |
Dormant Subsidiaries: |
PSA Spares Ltd, is 100% owned by PSA Parts Limited and registered in England and | 100 |
Wales. |
100 |
14. | STOCKS |
Group |
2024 | 2023 |
£ | £ |
Finished goods | 4,594,024 | 5,089,611 |
Stocks represents electronic and computer spare parts. An amount of £505,331 (2023 £360,516) has been provided against the cost of sales at the year end. |
The cost of stocks recognised as an expense in the year is £26,729,127 (2023 £28,328,412). All of these items have been included within ‘cost of sales’ in the income statement. |
2PG INVESTMENTS LIMITED (REGISTERED NUMBER: 09961319) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MAY 2024 |
15. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Trade debtors | 3,171,865 | 3,382,295 |
Amounts owed by group undertakings | - | - |
Other debtors | 297,228 | 409,938 |
Directors' current accounts | - | 3,950 | - | - |
Tax | 54,922 | 54,921 |
Prepayments | 184,019 | 183,234 |
3,708,034 | 4,034,338 |
16. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Bank loans and overdrafts (see note 18) | 107,363 | 147,347 |
Other loans (see note 18) | 100,000 | 100,000 |
Hire purchase contracts (see note 19) | 26,242 | 7,938 |
Trade creditors | 2,334,682 | 3,155,297 |
Tax | 179,128 | 148,552 |
Social security and other taxes | 99,126 | 103,510 |
VAT | 342,164 | 421,375 | 6,157 | 7,808 |
Other creditors | 156,761 | 239,813 |
Accrued expenses | 592,508 | 545,511 |
3,937,974 | 4,869,343 |
17. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Bank loans (see note 18) | 124,255 | 379,681 |
Hire purchase contracts (see note 19) | - | 25,479 |
Other creditors | - | 49,792 |
124,255 | 454,952 |
2PG INVESTMENTS LIMITED (REGISTERED NUMBER: 09961319) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 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 | 107,363 | 147,347 |
Other loans | 100,000 | 100,000 |
207,363 | 247,347 |
Amounts falling due between one and two | years: |
Bank loans - 1-2 years | 124,255 | 239,057 |
Amounts falling due between two and five | years: |
Bank loans - 2-5 years | - | 140,624 |
19. | LEASING AGREEMENTS |
Company |
Receivable |
At 31 May 2024 the future minimum lease payments under non-cancellable leases were receivable as follows: |
2024 | 2023 |
£ | £ |
Within one year | 197,500 | 197,500 |
Between one and five years | 197,500 | 395,000 |
395,000 | 592,500 |
Group |
Payable |
At 31 May 2024 the future minimum lease payments under non-cancellable leases were payable as follows: |
2024 | 2023 |
£ | £ |
Within one year | 72,064 | 62,343 |
Between one and five years | 33,594 | 72,730 |
105,658 | 135,073 |
2PG INVESTMENTS LIMITED (REGISTERED NUMBER: 09961319) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MAY 2024 |
20. | SECURED DEBTS |
The following secured debts are included within creditors: |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Bank loans | 231,618 | 527,028 |
HSBC Bank plc holds a debenture including fixed charge over all present and freehold and leasehold property; first fixed charge over book and other debts, chattels, goodwill and uncalled capital, both present and future; and first floating charge over all assets and undertaking both present and future dated 22 March 2016. The loan is charged by the bank at a market rate.The bank loan is being repaid in monthly instalments over 10 years. |
HSBC Bank plc holds a composite company limited multilateral guarantee dated 29 March 2016 given by 2PG Investments Limited and PSA Parts Limited. |
HSBC Bank plc holds a first legal charge dated 18 May 2016 over freehold property known as 2 Prince Georges Road, London SW19 2PX. |
21. | PROVISIONS FOR LIABILITIES |
Group |
2024 | 2023 |
£ | £ |
Deferred tax |
Accelerated capital allowances | 7,483 | 12,986 |
Group |
Deferred |
tax |
£ |
Balance at 1 June 2023 | 12,986 |
Credit to Income Statement during year | (5,503 | ) |
Balance at 31 May 2024 | 7,483 |
22. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2024 | 2023 |
value: | £ | £ |
'A' Ordinary shares | £1 | 729,000 | 729,000 |
'B' Ordinary shares | £1 | 6,561,000 | 6,561,000 |
7,290,000 | 7,290,000 |
Called up share capital represents the nominal value of shares that have been issued. |
2PG INVESTMENTS LIMITED (REGISTERED NUMBER: 09961319) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MAY 2024 |
22. | CALLED UP SHARE CAPITAL - continued |
(i) The 'A' ordinary shares and 'B' ordinary shares each constitute different classes of shares for the purposes of the Companies Act 2006, but save as otherwise provided by the articles of association shall rank pari passu in all respects. |
(ii) The company may declare and pay dividends at the same or different rates as between 'A' ordinary shares and the 'B' ordinary shares or declare and pay dividends on either class to the exclusion of the other. |
There are no restrictions on the distributions of dividends and the repayment of capital. |
23. | RESERVES |
Group |
Retained |
earnings |
£ |
At 1 June 2023 | 1,822,667 |
Profit for the year | 889,291 |
Dividends | (674,325 | ) |
At 31 May 2024 | 2,037,633 |
Company |
Retained |
earnings |
£ |
At 1 June 2023 |
Profit for the year |
Dividends | ( |
) |
At 31 May 2024 |
Retained earnings |
Cumulative profits or losses, net of dividends paid and other adjustments available for distribution. |
24. | PENSION COMMITMENTS |
The group contributes towards the employees' pension schemes. Pension contributions totalling £12,667 (2023 £12,978) are included in creditors at the year end. |
25. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES |
The group paid a director, £46,000 (2023 £43,000) for computer support provided by his business. |
During the previous year two directors repaid loans totalling £275,000. The loans were interest bearing, unsecured and repayable by giving one months notice. |
2PG INVESTMENTS LIMITED (REGISTERED NUMBER: 09961319) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MAY 2024 |
26. | RELATED PARTY DISCLOSURES |
At the year end the group owed Mrs S McBrien, wife of a director, £100,000 (2023: £100,000) for the provision of a loan. The loan bears interest.The loan is unsecured and repayable on demand. |
Key Management Compensation (including directors) |
Key management includes all directors and certain senior employees who have authority and responsibility for planning and controlling the activities of the group. |
2024 | 2023 |
£ | £ |
Salaries and other short-term benefits | 644,091 | 763,850 |
Post-employment benefits | 6,603 | 6,933 |
650,094 | 759,853 |
27. | POST BALANCE SHEET EVENTS |
After the year end the group paid a dividend of 9.25 pence per share, totalling £674,325. |
28. | ULTIMATE CONTROLLING PARTY |
The ultimate controlling party is J E McBrien and his wife. |