Registration number:
Parry and Evans Holding Ltd
for the Year Ended 31 May 2024
Parry and Evans Holding Ltd
Contents
Company Information |
|
Strategic Report |
|
Director's Report |
|
Statement of Director's Responsibilities |
|
Independent Auditor's Report |
|
Consolidated Profit and Loss Account |
|
Consolidated Balance Sheet |
|
Balance Sheet |
|
Consolidated Statement of Changes in Equity |
|
Statement of Changes in Equity |
|
Consolidated Statement of Cash Flows |
|
Statement of Cash Flows |
|
Notes to the Financial Statements |
Parry and Evans Holding Ltd
Company Information
Director |
S J Evans |
Registered office |
|
Auditors |
|
Parry and Evans Holding Ltd
Strategic Report for the Year Ended 31 May 2024
The director presents his strategic report for the year ended 31 May 2024.
Principal activity
The principal activity of the group is that of a holding company.
Fair review of the business
The group has continued to operate strongly with a focus on improving profit margins and on the UK market. The group has concentrated on expanding its customer base as well as aiming to improve efficiency at its sites.
Wholesale paper recycling prices fluctuated during the period after reaching a peak at the end of 2022. Due to the market price movements, the group's turnover fell compared to the prior year by £4.25m to £10.6m and the gross profit margin fell from 21.34% to 17.6%. The group remains focused on cost control and efficiency.
The group has continued with its five year strategic investment plan by purchasing new plant and machinery and vehicles. This is expected to benefit the group with quicker processing capabilities and higher turnover. It will also assist and support new and continuing customer relationships and reduce costs of repair and idle time. Capital expenditure will continue to be significant over the coming few years to support the group as it continues to grow.
Cashflow has been carefully managed and the group remains comfortably within its banking facilities.
The group's key financial and other performance indicators during the year were as follows:
Financial KPIs |
Unit |
2024 |
2023 |
Turnover |
£m |
10.60 |
14.85 |
Gross profit |
£m |
1.87 |
3.17 |
Gross profit margin |
% |
17.60 |
21.34 |
Cash at bank |
£m |
1.39 |
1.81 |
Liquidity ratio (current assets/current liabilities) |
1.35 |
1.22 |
|
Return on capital employed |
% |
3.02 |
8.20 |
Parry and Evans Holding Ltd
Strategic Report for the Year Ended 31 May 2024
Principal risks and uncertainties
The director and senior management continue to monitor risks affecting the group and its trading environment.
The main risks facing the group are - credit and cashflow risks, which the group mitigate by regular review of credit offered to customers and monitoring amounts outstanding to ensure debtors are collected on a timely basis. Trade creditors are paid as they fall due and external borrowings are kept to a minimum.
- environmental risks - the group's main activity is in recycling and pressure on councils/corporates to improve recycling policy impacts greatly on the group's results - the director and management team stay abreast with changes in government policy.
- foreign currency risk - the group continually monitor exchange rate fluctuations to minimise the impact on the business. The group has foreign currency bank accounts to ensure sales and purchases in foreign currency can be matched wherever possible.
Approved and authorised by the
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Parry and Evans Holding Ltd
Director's Report for the Year Ended 31 May 2024
The director presents his report and the for the year ended 31 May 2024.
Director of the group
The director who held office during the year was as follows:
Information included in the Strategic Report
The director has chosen to set out the information required by schedule 7 of the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008 in the group's Strategic Report.
Financial instruments
Objectives and policies
There are risks and uncertainties reviewed in the strategic report, which could impact on the group's performance in the longer term. The director has carried out a regular assessment to identify, manage and mitigate business risk.
The director has concluded that longer term risks are best addressed by continuing the group's strategy to continually review its operations. The group continues to have the flexibility to respond to new business opportunities as they arise.
The future prosperity of the group will be maintained by recruitment, retention and reward of high calibre employees.
Disclosure of information to the auditor
The director has taken 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 auditor is aware of that information. The director confirms that there is no relevant information that he knows of and of which he knows the auditor is unaware.
Approved and authorised by the
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Parry and Evans Holding Ltd
Statement of Director's Responsibilities
The director acknowledges his responsibilities for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.
Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the group and the company and of the profit or loss of the group for that period. In preparing these financial statements, the director is required to:
• |
select suitable accounting policies and apply them consistently; |
• |
make judgements and accounting estimates that are reasonable and prudent; |
• |
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and |
• |
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The director is responsible for keeping adequate accounting records that are sufficient to show and explain the group's and the company's transactions and disclose with reasonable accuracy at any time the financial position of the group and the company and enable him to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the group and the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Parry and Evans Holding Ltd
Independent Auditor's Report to the Members of Parry and Evans Holding Ltd
Opinion
We have audited the financial statements of Parry and Evans Holding Ltd (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 May 2024, which comprise the Consolidated Profit and Loss Account, Consolidated Balance Sheet, Balance Sheet, Consolidated Statement of Changes in Equity, Statement of Changes in Equity, Consolidated Statement of Cash Flows, Statement of Cash Flows, 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 group's and the parent company's 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 auditor 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 director's 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 ability to continue as a going concern for a period of at least twelve months from when the original financial statements were authorised for issue.
Our responsibilities and the responsibilities of the director with respect to going concern are described in the relevant sections of this report.
Parry and Evans Holding Ltd
Independent Auditor's Report to the Members of Parry and Evans Holding Ltd
Other information
The director are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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.
Opinion on other matter 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 Director's Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
• |
the Strategic Report and Director's Report have been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception
In the light of our 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 and the Director's Report.
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 director's remuneration specified by law are not made; or |
• | we have not received all the information and explanations we require for our audit. |
Responsibilities of the director
As explained more fully in the Statement of Director's Responsibilities [set out on page 5], the director is 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 director determines is 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 director is 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 director either intends to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Parry and Evans Holding Ltd
Independent Auditor's Report to the Members of Parry and Evans Holding Ltd
Auditor’s 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 an auditor’s report 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 obtained an understanding of the legal and regulatory frameworks that are applicable to this group and the parent company and its sector and determined that the most significant are those relating to the reporting framework, environmental regulations and the relevant UK tax legislation.
• We understood how the group and the parent company is complying with those frameworks by making enquiries of management and those responsible for legal and compliance procedures.
• As an audit engagement team, we assessed the susceptibility of the group and the parent company’s financial statements to material misstatement including how fraud might occur and considered the opportunities and incentives that may exist within the group and the parent company for fraud. We considered the controls that the group and the parent company has established to address the risks identified to prevent, deter and detect fraud; and how the management and director monitor those controls.
• Based on our understanding we designed our audit procedures to identify non-compliance with laws and regulations. Those procedures involved: - enquiries of management and those charged with governance; - review of legal and professional costs and related documentation; - journal entry testing; - assessing whether judgements in making accounting estimates are indicative of a potential bias; and – evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.
• Where the risk was considered to be higher, we performed audit procedures to address each identified fraud risk or other risk of material misstatement. These procedures included revenue recognition and testing manual journals and were designed to provide reasonable assurance that the financial statements were free from fraud or error.
• We remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
Parry and Evans Holding Ltd
Independent Auditor's Report to the Members of Parry and Evans Holding Ltd
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 an auditor’s report 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
Rowan House North
1 The Professional Quarter
Shrewsbury Business Park
Shropshire
SY2 6LG
Parry and Evans Holding Ltd
Consolidated Profit and Loss Account for the Year Ended 31 May 2024
Note |
2024 |
2023 |
|
Turnover |
|
|
|
Cost of sales |
( |
( |
|
Gross profit |
|
|
|
Administrative expenses |
( |
( |
|
Other operating income |
- |
|
|
Operating profit |
|
|
|
Other interest receivable and similar income |
|
|
|
Interest payable and similar expenses |
( |
( |
|
9,147 |
(21,188) |
||
Profit before tax |
|
|
|
Tax on profit |
( |
( |
|
Profit for the financial year |
|
|
|
Profit/(loss) attributable to: |
|||
Owners of the company |
|
|
The group has no recognised gains or losses for the year other than the results above.
Parry and Evans Holding Ltd
(Registration number: 11343726)
Consolidated Balance Sheet as at 31 May 2024
Note |
2024 |
2023 |
|
Fixed assets |
|||
Tangible assets |
|
|
|
Other financial assets |
18,010 |
18,010 |
|
|
|
||
Current assets |
|||
Stocks |
|
|
|
Debtors |
|
|
|
Cash at bank and in hand |
|
|
|
|
|
||
Creditors: Amounts falling due within one year |
( |
( |
|
Net current assets |
|
|
|
Total assets less current liabilities |
|
|
|
Creditors: Amounts falling due after more than one year |
( |
( |
|
Provisions for liabilities |
( |
( |
|
Net assets |
|
|
|
Capital and reserves |
|||
Called up share capital |
701,000 |
701,000 |
|
Share premium reserve |
3,199,277 |
3,199,277 |
|
Retained earnings |
807,197 |
840,015 |
|
Equity attributable to owners of the company |
4,707,474 |
4,740,292 |
|
Shareholders' funds |
4,707,474 |
4,740,292 |
Approved and authorised by the
|
Parry and Evans Holding Ltd
(Registration number: 11343726)
Balance Sheet as at 31 May 2024
Note |
2024 |
2023 |
|
Fixed assets |
|||
Investments |
|
|
|
Current assets |
|||
Debtors |
|
|
|
Cash at bank and in hand |
|
|
|
|
|
||
Creditors: Amounts falling due within one year |
( |
( |
|
Net current assets/(liabilities) |
- |
- |
|
Net assets |
|
|
|
Capital and reserves |
|||
Called up share capital |
701,000 |
701,000 |
|
Share premium reserve |
3,199,277 |
3,199,277 |
|
Shareholders' funds |
3,900,277 |
3,900,277 |
The company made a profit after tax for the financial year of £185,954.
Approved and authorised by the
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Parry and Evans Holding Ltd
Consolidated Statement of Changes in Equity for the Year Ended 31 May 2024
Equity attributable to the parent company
Share capital |
Share premium |
Retained earnings |
Total |
Total equity |
|
At 1 June 2023 |
|
|
|
|
|
Profit for the year |
- |
- |
|
|
|
Dividends |
- |
- |
( |
( |
( |
At 31 May 2024 |
|
|
|
|
|
Share capital |
Share premium |
Retained earnings |
Total |
Total equity |
|
At 1 June 2022 |
|
|
|
|
|
Profit for the year |
- |
- |
|
|
|
Dividends |
- |
- |
( |
( |
( |
At 31 May 2023 |
701,000 |
3,199,277 |
840,015 |
4,740,292 |
4,740,292 |
Parry and Evans Holding Ltd
Statement of Changes in Equity for the Year Ended 31 May 2024
Share capital |
Share premium |
Retained earnings |
Total |
|
At 1 June 2023 |
|
|
- |
|
Profit for the year |
- |
- |
|
|
Dividends |
- |
- |
( |
( |
At 31 May 2024 |
|
|
- |
|
Share capital |
Share premium |
Retained earnings |
Total |
|
At 1 June 2022 |
|
|
- |
|
Profit for the year |
- |
- |
|
|
Dividends |
- |
- |
( |
( |
At 31 May 2023 |
701,000 |
3,199,277 |
- |
3,900,277 |
Parry and Evans Holding Ltd
Consolidated Statement of Cash Flows for the Year Ended 31 May 2024
Note |
2024 |
2023 |
|
Cash flows from operating activities |
|||
Profit for the year |
|
|
|
Adjustments to cash flows from non-cash items |
|||
Depreciation and amortisation |
|
|
|
Profit on disposal of tangible assets |
( |
( |
|
Finance income |
( |
( |
|
Finance costs |
|
|
|
Income tax expense |
|
|
|
|
|
||
Working capital adjustments |
|||
(Increase)/decrease in stocks |
( |
|
|
(Increase)/decrease in trade debtors |
( |
|
|
Decrease in trade creditors |
( |
( |
|
Cash generated from operations |
|
|
|
Income taxes paid |
( |
- |
|
Net cash flow from operating activities |
|
|
|
Cash flows from investing activities |
|||
Interest received |
|
|
|
Acquisitions of tangible assets |
( |
( |
|
Proceeds from sale of tangible assets |
|
|
|
Net cash flows from investing activities |
( |
( |
|
Cash flows from financing activities |
|||
Interest paid |
( |
( |
|
Payments to finance lease creditors |
( |
( |
|
Dividends paid |
( |
( |
|
Net cash flows from financing activities |
( |
( |
|
Net (decrease)/increase in cash and cash equivalents |
( |
|
|
Cash and cash equivalents at 1 June |
|
|
|
Cash and cash equivalents at 31 May |
1,393,950 |
1,813,420 |
Parry and Evans Holding Ltd
Statement of Cash Flows for the Year Ended 31 May 2024
Note |
2024 |
2023 |
|
Cash flows from operating activities |
|||
Profit for the year |
|
|
|
Adjustments to cash flows from non-cash items |
|||
Finance income |
( |
( |
|
- |
- |
||
Working capital adjustments |
|||
Decrease/(increase) in trade debtors |
|
( |
|
Decrease in trade creditors |
( |
( |
|
Net cash flow from operating activities |
|
( |
|
Cash flows from investing activities |
|||
Interest received |
|
|
|
Cash flows from financing activities |
|||
Dividends paid |
( |
( |
|
Net increase/(decrease) in cash and cash equivalents |
|
( |
|
Cash and cash equivalents at 1 June |
|
|
|
Cash and cash equivalents at 31 May |
361,103 |
353,863 |
Parry and Evans Holding Ltd
Notes to the Financial Statements for the Year Ended 31 May 2024
General information |
The company is a private company limited by share capital, incorporated in England and Wales.
The address of its registered office is:
Accounting policies |
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland and the Companies Act 2006'.
Basis of preparation
These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.
Going concern
The financial statements have been prepared on a going concern basis.
Judgements and key sources of estimation uncertainty
In preparing these financial statements, the Director is required to make judgements, estimates and assumptions which will impact on the application of accounting policies. These judgements, estimates and assumptions will also affect the amounts reported in respect of assets, liabilities, income and expenses. Actual results may differ from these estimates.
Management estimates and assumptions are continually reviewed and any variances are adjusted in the profit and loss account as and when more accurate information is obtained.
Judgements that management have made in applying the group's accounting policies and which could have the most significant impact on the financial statements relate to the following: - Accruals; - Depreciation.
Parry and Evans Holding Ltd
Notes to the Financial Statements for the Year Ended 31 May 2024
Basis of consolidation
The consolidated financial statements consolidate the financial statements of the company and its subsidiary undertakings drawn up to 31 May 2024.
No Profit and Loss Account is presented for the company as permitted by section 408 of the Companies Act 2006. The company made a profit after tax for the financial year of £185,954 (2023 - profit of £166,275).
A subsidiary is an entity controlled by the company. Control is achieved where the company has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.
The results of subsidiaries acquired or disposed of during the year are included in the Profit and Loss Account from the effective date of acquisition or up to the effective date of disposal, as appropriate. Where necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by the group.
The purchase method of accounting is used to account for business combinations that result in the acquisition of subsidiaries by the group. The cost of a business combination is measured as the fair value of the assets given, equity instruments issued and liabilities incurred or assumed at the date of exchange, plus costs directly attributable to the business combination. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. Any excess of the cost of the business combination over the acquirer’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities recognised is recorded as goodwill.
Inter-company transactions, balances and unrealised gains on transactions between the company and its subsidiaries, which are related parties, are eliminated in full.
Intra-group losses are also eliminated but may indicate an impairment that requires recognition in the consolidated financial statements.
Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the group. Non-controlling interests in the net assets of consolidated subsidiaries are identified separately from the group’s equity therein. Non-controlling interests consist of the amount of those interests at the date of the original business combination and the non-controlling shareholder’s share of changes in equity since the date of the combination.
Parry and Evans Holding Ltd
Notes to the Financial Statements for the Year Ended 31 May 2024
Revenue recognition
Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the group’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts and after eliminating sales within the group.
The group recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the group's activities.
Foreign currency transactions and balances
Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.
Tax
The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the group operates and generates taxable income.
Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the consolidated financial statements.
Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.
Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.
Tangible assets
Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
Parry and Evans Holding Ltd
Notes to the Financial Statements for the Year Ended 31 May 2024
Depreciation
Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:
Asset class |
Depreciation method and rate |
Freehold property |
2% - 10% straight line |
Short leasehold property |
10% straight line |
Plant and machinery |
6% - 25% straight line |
Fixtures, fittings and equipment |
20% - 33% straight line |
Motor vehicles |
20% - 25% straight line |
Business combinations
Business combinations are accounted for using the purchase method. The consideration for each acquisition is measured at the aggregate of the fair values at acquisition date of assets given, liabilities incurred or assumed, and equity instruments issued by the group in exchange for control of the acquired, plus any costs directly attributable to the business combination. When a business combination agreement provides for an adjustment to the cost of the combination contingent on future events, the group includes the estimated amount of that adjustment in the cost of the combination at the acquisition date if the adjustment is probable and can be measured reliably.
Goodwill
Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the group’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each reporting period date. Goodwill is amortised over its useful life, which shall not exceed ten years if a reliable estimate of the useful life cannot be made.
Amortisation
Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:
Asset class |
Amortisation method and rate |
Goodwill |
10% straight line |
Investments
Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.
Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable.
Parry and Evans Holding Ltd
Notes to the Financial Statements for the Year Ended 31 May 2024
Inventories
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.
The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.
Borrowings
Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.
Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.
Borrowings are classified as current liabilities unless the group has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
Leases
Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.
Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the balance sheet as a finance lease obligation.
Lease payments are apportioned between finance costs in the profit and loss account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the group has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
Parry and Evans Holding Ltd
Notes to the Financial Statements for the Year Ended 31 May 2024
Turnover |
The analysis of the group's turnover for the year from continuing operations is as follows:
2024 |
2023 |
|
Sale of goods |
|
|
All of the group's turnover for the current and prior year is generated from the UK market.
Other operating income |
The analysis of the group's other operating income for the year is as follows:
2024 |
2023 |
|
Sub lease rental income |
- |
|
Other gains and losses |
The analysis of the group's other gains and losses for the year is as follows:
2024 |
2023 |
|
Gain on disposal of Tangible assets |
|
|
Operating profit |
Arrived at after charging/(crediting)
2024 |
2023 |
|
Depreciation expense |
|
|
Depreciation on assets held on hire purchase contracts |
183,899 |
301,013 |
Operating lease expense - plant and machinery |
|
|
Profit on disposal of property, plant and equipment |
( |
( |
Other interest receivable and similar income |
2024 |
2023 |
|
Interest income on bank deposits |
|
|
Parry and Evans Holding Ltd
Notes to the Financial Statements for the Year Ended 31 May 2024
Interest payable and similar expenses |
2024 |
2023 |
|
Interest on obligations under finance leases and hire purchase contracts |
|
|
Foreign exchange losses |
|
- |
|
|
Staff costs |
The aggregate payroll costs (including director's remuneration) were as follows:
2024 |
2023 |
|
Wages and salaries |
|
|
Social security costs |
|
|
Pension costs, defined contribution scheme |
|
|
|
|
The average number of persons employed by the group (including the director) during the year, analysed by category was as follows:
2024 |
2023 |
|
Production |
|
|
Administration and support |
|
|
Other departments |
|
|
|
|
Director's remuneration |
The director's remuneration for the year was as follows:
2024 |
2023 |
|
Remuneration |
|
|
Contributions paid to money purchase schemes |
|
|
68,699 |
68,666 |
During the year the number of directors who were receiving benefits and share incentives was as follows:
2024 |
2023 |
|
Accruing benefits under money purchase pension scheme |
|
|
Parry and Evans Holding Ltd
Notes to the Financial Statements for the Year Ended 31 May 2024
Auditors' remuneration |
2024 |
2023 |
|
Audit of the financial statements of subsidiaries of the company pursuant to legislation |
12,000 |
8,700 |
Taxation |
Tax charged/(credited) in the consolidated profit and loss account
2024 |
2023 |
|
Current taxation |
||
UK corporation tax |
|
|
UK corporation tax adjustment to prior periods |
( |
( |
148,718 |
12,444 |
|
Deferred taxation |
||
Arising from origination and reversal of timing differences |
( |
|
Arising from previously unrecognised tax loss, tax credit or temporary difference of prior periods |
(46,634) |
- |
Total deferred taxation |
( |
|
Tax expense in the income statement |
|
|
Parry and Evans Holding Ltd
Notes to the Financial Statements for the Year Ended 31 May 2024
12 Taxation (continued)
The tax on profit before tax for the year is the same as the standard rate of corporation tax in the UK (2023 - the same as the standard rate of corporation tax in the UK) of
The differences are reconciled below:
2024 |
2023 |
|
Profit before tax |
|
|
Corporation tax at standard rate |
|
|
Decrease in UK and foreign current tax from adjustment for prior periods |
( |
- |
Tax increase/(decrease) from effect of capital allowances and depreciation |
|
( |
Effect of expense not deductible in determining taxable profit (tax loss) |
|
|
Deferred tax credit from unrecognised temporary difference from a prior period |
( |
( |
Deferred tax expense relating to changes in tax rates or laws |
- |
|
Decrease from effect of tax incentives |
( |
( |
Tax decrease from effect of adjustment in research and development tax credit |
- |
( |
Tax increase from other tax effects |
- |
|
Deferred tax at 25% instead of standard rate of tax |
- |
|
Total tax charge |
|
|
Parry and Evans Holding Ltd
Notes to the Financial Statements for the Year Ended 31 May 2024
Deferred tax
Group
Deferred tax assets and liabilities
2024 |
Asset |
Liability |
Accelerated tax depreciation |
- |
|
Short term timing differences |
|
- |
|
|
2023 |
Asset |
Liability |
Accelerated tax depreciation |
- |
|
Short term timing differences |
|
- |
|
|
Intangible assets |
Group
Goodwill |
Total |
|
Cost or valuation |
||
At 1 June 2023 |
|
|
At 31 May 2024 |
|
|
Amortisation |
||
At 1 June 2023 |
|
|
At 31 May 2024 |
|
|
Carrying amount |
||
At 31 May 2024 |
- |
- |
At 31 May 2023 |
- |
- |
Parry and Evans Holding Ltd
Notes to the Financial Statements for the Year Ended 31 May 2024
Tangible assets |
Group
Land and buildings |
Furniture, fittings and equipment |
Motor vehicles |
Other tangible assets |
Total |
|
Cost or valuation |
|||||
At 1 June 2023 |
|
|
|
|
|
Additions |
|
|
|
|
|
Disposals |
- |
- |
( |
( |
( |
At 31 May 2024 |
|
|
|
|
|
Depreciation |
|||||
At 1 June 2023 |
|
|
|
|
|
Charge for the year |
|
|
|
|
|
Eliminated on disposal |
- |
- |
( |
( |
( |
At 31 May 2024 |
|
|
|
|
|
Carrying amount |
|||||
At 31 May 2024 |
|
|
|
|
|
At 31 May 2023 |
|
|
|
|
|
Parry and Evans Holding Ltd
Notes to the Financial Statements for the Year Ended 31 May 2024
Assets held under finance leases and hire purchase contracts
The net carrying amount of tangible assets includes the following amounts in respect of assets held under finance leases and hire purchase contracts:
2024 |
2023 |
|
Plant and machinery |
424,178 |
938,091 |
Motor vehicles |
363,614 |
362,217 |
787,792 |
1,300,308 |
Included within the net book value of land and buildings above is £1,966,608 (2023 - £2,000,996) in respect of freehold land and buildings and £209,286 (2023 - £228,662) in respect of short leasehold land and buildings.
Investments |
Company
2024 |
2023 |
|
Investments in subsidiaries |
|
|
Subsidiaries |
£ |
Cost or valuation |
|
At 1 June 2023 |
|
At 31 May 2024 |
|
Carrying amount |
|
At 31 May 2024 |
|
At 31 May 2023 |
|
Details of undertakings
Details of the investments (including principal place of business of unincorporated entities) in which the company holds 20% or more of the nominal value of any class of share capital are as follows:
Undertaking |
Registered office |
Holding |
Proportion of voting rights and shares held |
|
2024 |
2023 |
|||
Subsidiary undertakings |
||||
|
Severn Farm Industrial Estate
England & Wales |
|
|
|
Parry and Evans Holding Ltd
Notes to the Financial Statements for the Year Ended 31 May 2024
Subsidiary undertakings |
Parry and Evans Limited The principal activity of Parry and Evans Limited is |
Other financial assets |
Group
Financial assets at amortised cost |
Total |
|
Non-current financial assets |
||
Cost or valuation |
||
At 1 June 2023 |
18,010 |
18,010 |
At 31 May 2024 |
18,010 |
18,010 |
Carrying amount |
||
At 31 May 2024 |
|
18,010 |
At 31 May 2023 |
|
18,010 |
Stocks |
Group |
Company |
|||
2024 |
2023 |
2024 |
2023 |
|
Other inventories |
|
|
- |
- |
Debtors |
Group |
Company |
||||
Current |
Note |
2024 |
2023 |
2024 |
2023 |
Trade debtors |
|
|
- |
- |
|
Amounts owed by related parties |
- |
- |
|
|
|
Other debtors |
|
|
- |
- |
|
Prepayments |
|
|
- |
- |
|
|
|
|
|
Parry and Evans Holding Ltd
Notes to the Financial Statements for the Year Ended 31 May 2024
Cash and cash equivalents |
Group |
Company |
|||
2024 |
2023 |
2024 |
2023 |
|
Cash at bank |
|
|
|
|
Short-term deposits |
|
|
- |
- |
|
|
|
|
Creditors |
Group |
Company |
||||
Note |
2024 |
2023 |
2024 |
2023 |
|
Due within one year |
|||||
Loans and borrowings |
|
|
- |
- |
|
Trade creditors |
|
|
- |
- |
|
Amounts due to related parties |
|
|
|
|
|
Social security and other taxes |
|
|
- |
- |
|
Outstanding defined contribution pension costs |
|
|
- |
- |
|
Other payables |
|
|
|
|
|
Accruals |
|
|
- |
- |
|
Income tax liability |
148,596 |
41,699 |
- |
- |
|
|
|
|
|
||
Due after one year |
|||||
Loans and borrowings |
|
|
- |
- |
Deferred tax and other provisions |
Group
Deferred tax |
Total |
|
At 1 June 2023 |
|
|
Increase (decrease) in existing provisions |
( |
( |
At 31 May 2024 |
|
|
|
Parry and Evans Holding Ltd
Notes to the Financial Statements for the Year Ended 31 May 2024
Pension and other schemes |
Defined contribution pension scheme
The group operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the group to the scheme and amounted to £
Contributions totalling £
Share capital |
Allotted, called up and fully paid shares
2024 |
2023 |
|||
No. |
£ |
No. |
£ |
|
|
|
575 |
|
575 |
|
|
200 |
|
200 |
|
|
75 |
|
75 |
|
|
75 |
|
75 |
|
|
75 |
|
75 |
|
|
700,000 |
|
700,000 |
|
|
|
|
Parry and Evans Holding Ltd
Notes to the Financial Statements for the Year Ended 31 May 2024
Loans and borrowings |
Non-current loans and borrowings
Group |
Company |
|||
2024 |
2023 |
2024 |
2023 |
|
Finance lease liabilities |
|
|
- |
- |
Current loans and borrowings
Group |
Company |
|||
2024 |
2023 |
2024 |
2023 |
|
Finance lease liabilities |
|
|
- |
- |
The finance lease liabilities are secured against the assets to which they relate.
Obligations under leases and hire purchase contracts |
Group
Finance leases
The total of future minimum lease payments is as follows:
2024 |
2023 |
|
Not later than one year |
|
|
Later than one year and not later than five years |
|
|
|
|
Operating leases
The total of future minimum lease payments is as follows:
2024 |
2023 |
|
Not later than one year |
|
|
Later than one year and not later than five years |
|
- |
|
|
The amount of non-cancellable operating lease payments recognised as an expense during the year was £
Parry and Evans Holding Ltd
Notes to the Financial Statements for the Year Ended 31 May 2024
Dividends |
Interim dividends paid
2024 |
2023 |
|||
Interim dividend of £ |
|
- |
||
Interim dividend of £Nil per each |
- |
- |
||
Interim dividend of £ |
|
|
||
Interim dividend of £ |
|
|
||
|
|
During the period dividends totalling £nil (2023 - £21,000) were paid on the Preference shares.
Commitments |
Group
Capital commitments
The total amount contracted for but not provided in the financial statements was £
Related party transactions |
Group
Summary of transactions with entities with joint control or significant interest
During the year the group paid rent to the director, close family members and companies controlled by them totalling £100,000 (2023 - £345,000).
Parent and ultimate parent undertaking |
The ultimate controlling party is