REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
AUDITED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MAY 2024 |
FOR |
PSA PARTS LIMITED |
REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
AUDITED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MAY 2024 |
FOR |
PSA PARTS LIMITED |
PSA PARTS LIMITED (REGISTERED NUMBER: 03544196) |
CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MAY 2024 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 4 |
Report of the Independent Auditors | 6 |
Statement of Comprehensive Income | 9 |
Balance Sheet | 10 |
Statement of Changes in Equity | 11 |
Notes to the Financial Statements | 12 |
PSA PARTS LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 31 MAY 2024 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Statutory Auditors |
Chartered Accountants |
4th Floor Tuition House |
27-37 St George's Road |
Wimbledon |
London |
SW19 4EU |
PSA PARTS LIMITED (REGISTERED NUMBER: 03544196) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 31 MAY 2024 |
The directors present their strategic report for the year ended 31 May 2024. |
Introduction |
The principal activity of the company in the period under review was that of selling electronic and computer spare parts. The company is the leading supplier of batteries, power adapters and chargers within Europe. With over 20 years expertise supplying power product solutions, the company has built strong relationships with battery and accessory manufacturers, including becoming a Duracell licensee. |
The company 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 company supplies customers right across Europe including distributors, computer dealers as well as product owners themselves. |
REVIEW OF BUSINESS |
Financial Performance |
Turnover decreased to £27,304,240 (2023 £30,035,675). The profit for the year after taxation, amounted to £827,293 (2023 £1,055,988). The decrease in turnover and profit was due to weakened customer demand after high levels of business. |
The gross profit margin of the company remained constant at 23% (2023 22%) while overhead expenditure increased to £5,285,097 (2023 £5,246,396). Including in overhead expenditure is a loss on foreign exchange of £68,296 (2023 £16,163). |
Financial Position |
The company is in a sound financial position with net assets at the year end amounted to £6,201,589 (2023 £5,975,316). |
At 31.5.2024 the company has a cash balance of £2,350,088 (2023 £2,340,408). Stock levels decreased to £3,228,515 (2023 £3,443,565). Trade debtors decreased to £3,000,371(2023 £3,098,706) and trade creditors decreased to £1,789,615 (2023 £2,569,532). |
PRINCIPAL RISKS AND UNCERTAINTIES |
The Board continually reviews the potential risks facing the company. 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. |
PSA PARTS LIMITED (REGISTERED NUMBER: 03544196) |
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 | £27,304,240 | £30,035,675 |
Gross Profit | £6,340,687 | £6,547,744 |
Gross Profit Margin | 23% | 22% |
Overheads | £5,285,097 | £5,246,396 |
Profit Before Taxation | £1,102,090 | £1,323,397 |
Cash at Bank | £2,350,088 | £2,340,408 |
Stock | £3,228,515 | £3,443,565 |
Trade Debtors | £3,000,371 | £3,098,706 |
Trade Creditors | £1,789,615 | £2,569,532 |
Net Assets | £6,201,589 | £5,975,316 |
Average Employees | 47 | 50 |
FUTURE DEVELOPMENT |
PSA 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: |
PSA PARTS LIMITED (REGISTERED NUMBER: 03544196) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 MAY 2024 |
The directors present their report with the financial statements of the company for the year ended 31 May 2024. |
PRINCIPAL ACTIVITY |
The principal activity of the company in the year under review was that of selling electronic and computer spare parts. |
DIVIDENDS |
During the year dividends were paid of £371 per share on 17 January 2024 and £371 per share on 18 March 2024. |
The total distribution of dividends for the year ended 31 May 2024 was £601,020 (2023 £1,350,270). |
After the year end the company paid a dividend of £494 per share, totalling £400,140. |
FUTURE DEVELOPMENTS |
This is referred to in the Strategic Report. |
POST BALANCE SHEET EVENTS |
No other events have occurred between the accounting date and the date of this 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 company 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 company 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 company will not be able to meet its financial obligations as they fall due, because of a lack of liquid assets. The company's policy is to ensure that it will always have sufficient cash to allow it to meet its liabilities as they fall due. The company 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 company is not exposed to significant cash flow interest rate risk from long term borrowings. |
- currency risk - the company purchases and sells products from/to overseas entities in currencies other than sterling.The company manages currency risks by using forward foreign exchange rate contracts. Forward foreign exchange rate contracts are not used for speculative purposes. |
- price risk - the company is exposed to price risk due to normal inflationary increases in the costs of the products it purchases. Products can also become obsolete. The company manages the risk by careful stock management and forecasting future trends. |
(iv) Competition risk - the company operates in a highly competitive market putting pressure on margin and turnover growth. The company is well established in the marketplace and continually strives for business efficiencies and monitors our competitors. |
PSA PARTS LIMITED (REGISTERED NUMBER: 03544196) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 MAY 2024 |
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 ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company'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 |
PSA PARTS LIMITED |
Opinion |
We have audited the financial statements of PSA Parts Limited (the 'company') for the year ended 31 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 31 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. |
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. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
PSA PARTS LIMITED |
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 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. |
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 company'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. |
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 company 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 company'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. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
PSA PARTS LIMITED |
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 |
PSA PARTS LIMITED (REGISTERED NUMBER: 03544196) |
STATEMENT OF COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 31 MAY 2024 |
2024 | 2023 |
Notes | £ | £ |
TURNOVER | 4 |
Cost of sales |
GROSS PROFIT |
Administrative expenses |
1,055,590 | 1,301,348 |
Other operating income |
OPERATING PROFIT | 6 |
Interest receivable and similar income |
1,107,105 | 1,337,136 |
Interest payable and similar expenses | 7 |
PROFIT BEFORE TAXATION |
Tax on profit | 8 |
PROFIT FOR THE FINANCIAL YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
PSA PARTS LIMITED (REGISTERED NUMBER: 03544196) |
BALANCE SHEET |
31 MAY 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 10 |
Tangible assets | 11 |
Investments | 12 |
CURRENT ASSETS |
Stocks | 13 |
Debtors | 14 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 15 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CAPITAL AND RESERVES |
Called up share capital | 19 |
Capital redemption reserve | 20 |
Retained earnings | 20 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
PSA PARTS LIMITED (REGISTERED NUMBER: 03544196) |
STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 MAY 2024 |
Called up | Capital |
share | Retained | redemption | Total |
capital | earnings | reserve | 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 |
PSA PARTS LIMITED (REGISTERED NUMBER: 03544196) |
NOTES TO THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MAY 2024 |
1. | STATUTORY INFORMATION |
PSA Parts Limited is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | STATEMENT OF COMPLIANCE |
3. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
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 33.7. |
Related party exemption |
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. |
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 company’s accounting policies. These are discussed below: |
(i) Impairment of stock |
The company 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 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. |
(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 company 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. |
PSA PARTS LIMITED (REGISTERED NUMBER: 03544196) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MAY 2024 |
3. | ACCOUNTING POLICIES - continued |
Revenue recognition |
Turnover is attributable to the one principal activity of the company. It comprises the invoiced value of goods and is stated net of Value Added Tax. Sales are recognised on the despatch of goods. Turnover 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 revenue is recognised when the goods are invoiced. |
Dividends are received from fixed asset investments and are recognised in profit or loss when the right to receive payment is established. |
Other income comprises management charges to IT Parts (Europe) Limited, a subsidiary of the parent company, 2PG Investments Limited. |
Goodwill |
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 |
Depreciation is provided at the following annual rates in order to write off each asset over its expected useful life. |
Leasehold property | 2% on cost |
Freehold buildings | 2% on cost |
Motor vehicles | 20% per annum on on cost |
Plant and machinery | 10% to 33% per annum on cost |
Fixed asset investments |
Investments in associates are accounted for at cost less impairment. The company also owns a dormant wholly owned subsidiary which is accounted for at cost less impairment. |
Stocks |
Stocks are stated at the lower of cost and selling price less costs to complete and sell, after making due allowance for obsolete and slow moving stock. |
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. |
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. |
PSA PARTS LIMITED (REGISTERED NUMBER: 03544196) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MAY 2024 |
3. | ACCOUNTING POLICIES - continued |
Foreign currencies |
The financial statements are presented in sterling which is the company's presentational currency. |
The items included in these financial statements relating to the company are measured using the functional currency, that is the currency of the primary economic environment in which the company operates. The directors' consider the company's "functional currency" to be Sterling (GBP). |
Foreign currency transactions are translated into the functional currency using the prevailing monthly 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 arising on translation are recognised in the income statement for the period, included in other income. |
Lease commitments |
Leases that do not transfer all the risks and rewards of ownership are classified as operating leases.Payments under operating leases are charged to the income statement on a straight-line basis over the lifetime 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. |
Employee short-term benefits |
Short term benefits, including holiday pay and other similar non-monetary benefits, are recognised as an expense in the period in which the service is received. |
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 company 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. |
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 company. |
An analysis of turnover by geographical market is given below: |
2024 | 2023 |
£ | £ |
UK Sales | 18,382,470 | 21,596,797 |
EU Sales | 7,976,202 | 7,828,670 |
Rest of the World Sales | 945,568 | 610,208 |
PSA PARTS LIMITED (REGISTERED NUMBER: 03544196) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MAY 2024 |
5. | EMPLOYEES AND DIRECTORS |
2024 | 2023 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
The average number of employees during the year was as follows: |
2024 | 2023 |
Administrative | 18 | 19 |
Sales and distribution | 29 | 31 |
2024 | 2023 |
£ | £ |
Directors' remuneration |
Directors' pension contributions to money purchase schemes |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes |
Information regarding the highest paid director is as follows: |
2024 | 2023 |
£ | £ |
Emoluments etc |
Pension contributions to money purchase schemes |
6. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
2024 | 2023 |
£ | £ |
Hire of plant and machinery |
Depreciation - owned assets |
Profit on disposal of fixed assets | ( |
) |
Auditors' remuneration |
Auditors' remuneration for non audit work |
Foreign exchange differences |
Property operating lease rentals |
7. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2024 | 2023 |
£ | £ |
Loan |
PSA PARTS LIMITED (REGISTERED NUMBER: 03544196) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MAY 2024 |
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 |
Tax on profit |
UK corporation tax has been charged at 25% (2023 - 20%). |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
2024 | 2023 |
£ | £ |
Profit before tax |
Profit multiplied by the standard rate of corporation tax in the UK of |
Effects of: |
Expenses not deductible for tax purposes |
Capital allowances in excess of depreciation | ( |
) | ( |
) |
credits |
Total tax charge | 274,797 | 267,409 |
9. | DIVIDENDS |
2024 | 2023 |
£ | £ |
Ordinary shares shares of £1 each |
Interim |
10. | INTANGIBLE FIXED ASSETS |
Goodwill |
£ |
COST |
At 1 June 2023 |
and 31 May 2024 |
AMORTISATION |
At 1 June 2023 |
and 31 May 2024 |
NET BOOK VALUE |
At 31 May 2024 |
At 31 May 2023 |
Goodwill of £1,032,540 arose in 1998 when the company acquired Pitts Sales Associates. The goodwill is being amortised over 20 years on a straight line basis. The directors consider that a 20 year amortisation period is appropriate taking into account the continued performance of the company. At 31 May 2018 the goodwill was fully amortised and had no estimated useful life remaining. |
PSA PARTS LIMITED (REGISTERED NUMBER: 03544196) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MAY 2024 |
11. | TANGIBLE FIXED ASSETS |
Long | Plant and | Motor |
leasehold | machinery | vehicles | Totals |
£ | £ | £ | £ |
COST |
At 1 June 2023 |
Additions |
Disposals | ( |
) | ( |
) |
At 31 May 2024 |
DEPRECIATION |
At 1 June 2023 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) |
At 31 May 2024 |
NET BOOK VALUE |
At 31 May 2024 |
At 31 May 2023 |
12. | FIXED ASSET INVESTMENTS |
Unlisted |
investments |
£ |
COST |
At 1 June 2023 |
Disposals | ( |
) |
At 31 May 2024 |
NET BOOK VALUE |
At 31 May 2024 |
At 31 May 2023 |
The company's investments at the Balance Sheet date in the share capital of companies include the following: |
Registered office: England and Wales |
Nature of business: |
% |
Class of shares: | holding |
2024 |
£ | £ |
Aggregate capital and reserves |
During the year the company disposed of its 50% shareholding in PSA Parts PTY Limited for AU$1. |
PSA PARTS LIMITED (REGISTERED NUMBER: 03544196) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MAY 2024 |
13. | STOCKS |
2024 | 2023 |
£ | £ |
Finished goods |
Stocks represents electronic and computer spare parts. An amount of £170,925 (2023 £183,932) has been provided against the cost of sales at the year end. |
14. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2024 | 2023 |
£ | £ |
Trade debtors |
Amounts owed by group undertakings |
Other debtors |
Prepayments |
15. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2024 | 2023 |
£ | £ |
Other loans (see note 16) |
Trade creditors |
Amounts owed to group undertakings |
Tax |
Social security and other taxes |
VAT | 183,002 | 206,546 |
Accrued expenses |
16. | LOANS |
An analysis of the maturity of loans is given below: |
2024 | 2023 |
£ | £ |
Amounts falling due within one year or on demand: |
Other loans |
17. | LEASING AGREEMENTS |
Minimum lease payments under non-cancellable operating leases fall due as follows: |
2024 | 2023 |
£ | £ |
Within one year |
Between one and five years |
PSA PARTS LIMITED (REGISTERED NUMBER: 03544196) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MAY 2024 |
18. | SECURED DEBTS |
HSBC Bank plc holds a guarantee dated 23 January 2013 in favour of HM Revenue and Customs for £200,000. |
HSBC Bank plc holds a composite company limited multilateral guarantee dated 29 March 2016 given by 2PG Investments Limited. |
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 15 March 2010. |
19. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2024 | 2023 |
value: | £ | £ |
Ordinary shares | £1 | 810 | 810 |
Called up share capital represents the nominal value of shares that have been issued. |
There is a single class of ordinary shares. There are no restrictions on the distributions of dividends and the repayment of capital. |
20. | RESERVES |
Capital |
Retained | redemption |
earnings | reserve | Totals |
£ | £ | £ |
At 1 June 2023 | 5,974,506 |
Profit for the year |
Dividends | ( |
) | ( |
) |
At 31 May 2024 | 6,200,779 |
Retained earnings include all current and prior period profits and losses. |
The capital redemption reserve records the nominal value of shares repurchased by the company. |
21. | PENSION COMMITMENTS |
The company contributes towards the employees' pension schemes. Pension contributions totalling £10,237 (2023 £10,203) are included in creditors at the year end. |
22. | ULTIMATE PARENT COMPANY |
The ultimate parent company is 2PG Investments Limited, a company registered in England and Wales. The consolidated accounts are available to the public and may be obtained from Companies House, Crown Way, Cardiff, CF14 3UZ. |
23. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES |
The company 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 month notice. |
PSA PARTS LIMITED (REGISTERED NUMBER: 03544196) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MAY 2024 |
24. | 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. |
At the year end the company 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. |
During the year the company sold goods and services to another group undertaking, The Replace Base Limited for £133,843 (2023 £36,014). |
At the year end the company is owed £23,000 (2023 £29,330) from The Replace Base Limited. |
25. | POST BALANCE SHEET EVENTS |
After the year end the company paid a dividend of £494 per share, totalling £400,140. |
26. | ULTIMATE CONTROLLING PARTY |
The ultimate controlling party is the director J E McBrien and his wife by virtue of their controlling ownership of the issued share capital in the ultimate parent undertaking, 2PG Investments Limited. |