Company registration number 00507125 (England and Wales)
PERCY MARTIN LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024
PERCY MARTIN LIMITED
COMPANY INFORMATION
Directors
I A Martin
A J Martin
R J Martin
J L Martin
Secretary
A J Martin
Company number
00507125
Registered office
Church Hill Road
Thurmaston
Leicester
LE4 8DJ
Auditor
UHY Hacker Young
14 Park Row
Nottingham
NG1 6GR
Business address
Church Hill Road
Thurmaston
Leicester
LE4 8DJ
Bankers
Royal Bank of Scotland
5 Market Street
Leicester
LE1 6DN
PERCY MARTIN LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 7
Statement of comprehensive income
8
Balance sheet
9 - 10
Statement of changes in equity
11
Statement of cash flows
12
Notes to the financial statements
13 - 20
PERCY MARTIN LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 JULY 2024
- 1 -
Directors' strategic report
The directors present the strategic report for the year ended 31 July 2024.
Review of the business
We aim to present a balanced summary of the performance of our business during the year and its position at the year end. As a company that buys and sells 2nd hand machinery, the company continues to supply customers in the UK and abroad.
We consider that our key financial performance indicators are those that communicate the strength and performance of the company as a whole, these being revenue growth and profit margins. These metrics provide a comprehensive view of our operational efficiency and market position, enabling us to make informed strategic decisions and drive sustainable growth.
The company’s turnover has fallen from £18,995,051 to £18,341,719. The decrease is a result of a global economic downturn in this trading year. Operating profit has fallen from £2,324,003 to £1,644,848 and a profit before tax of £1,836,881 (2023: £2,332,977) has been reported. The company has made a return on capital employed of 39% (2023: 58%) [calculated as operating profit divided by capital employed (net assets)]. Despite the fall in turnover and making less profit we are pleased with our performance in what has been a difficult trading year. We have performed well as the global economy has suffered and manufacturing has had little to no growth in this financial year.
Principal risks and uncertainties
There are a number of potential risks and uncertainties which could have a material impact on the company's performance.
Economic risk
There is a risk of variances in exchange rates, rising interest rates and overhead costs impacting adversely on the competitiveness of the company and its principal customers.
These risks are managed by keeping the stock fluid and constantly assessing every machine we own in order to trade what is no longer profitable, or hold out for better margins if we feel the market value and demand is increasing.
Financial risk management objectives and policies
The company seeks to manage financial risk by purchasing stock that can be sold efficiently, at a small profit to other traders within our sector. Thus, ensuring that there is always a quick profit on our stock purchases in a market that can fluctuate a lot depending on market conditions. By having a mix of trade & retail we keep our stock moving and hence ensure that we do not have stock that is overpriced in the current market. This strategy is key to our success and will remain a key objective going forward. It will hopefully encourage our growth and enable us to increase our market share in the next financial year.
I A Martin
Director
12 March 2025
PERCY MARTIN LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 JULY 2024
- 2 -
The directors present their annual report and financial statements for the year ended 31 July 2024.
Principal activities
The principal activity of the company continued to be that of machine tool merchants.
Results and dividends
The results for the year are set out on page 8.
Ordinary dividends were approved amounting to £1,191,785. The directors do not recommend the approval of a further dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
I A Martin
A J Martin
R J Martin
J L Martin
Statement of directors' responsibilities
The directors are responsible for preparing the annual report 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 of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
PERCY MARTIN LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 3 -
Medium-sized companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
On behalf of the board
I A Martin
Director
12 March 2025
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF PERCY MARTIN LIMITED
- 4 -
Opinion
We have audited the financial statements of Percy Martin Limited (the 'company') for the year ended 31 July 2024 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including 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 July 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.
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's 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.
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF PERCY MARTIN LIMITED (CONTINUED)
- 5 -
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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. 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 course of 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 our audit:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report 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 and the directors' report. We have nothing to report in respect of the following matters in relation to which 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 remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit; or
the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemption in preparing the directors' report.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, 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 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 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.
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF PERCY MARTIN LIMITED (CONTINUED)
- 6 -
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.
Our assessment focused on key laws and regulations the company has to comply with and areas of the financial statements we assessed as being more susceptible to misstatement. These key laws and regulations included but were not limited to compliance with the Companies Act 2006, United Kingdom Generally Accepted Accounting Practice and relevant tax legislation.
We are not responsible for preventing irregularities. Our approach to detecting irregularities included, but was not limited to the following:
obtaining an understanding of the legal and regulatory framework applicable to the entity and how the entity is complying with that framework;
obtaining an understanding of the entity's policies and procedures and how the entity has complied with these, through discussions and walkthrough testing;
obtaining an understanding of the entity's risk assessment process, including the risk of fraud;
enquiring of management as to actual and potential fraud, litigation and claims;
designing our audit procedures to respond to our risk assessment;
performing analytical procedures to identify any large, unusual or unexpected relationships; and
performing audit testing over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias, including recoverability of debtors and provisions in respect of stock.
Whilst considering how our audit work addressed the detection of irregularities, we also consider the likelihood of detection based on our approach. Irregularities arising from fraud are inherently more difficult to detect than those arising from error.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more than compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF PERCY MARTIN LIMITED (CONTINUED)
- 7 -
Other matters which we are required to address
The financial statements to 31 July 2023 were unaudited.
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.
David Allum
Senior Statutory Auditor
For and on behalf of UHY Hacker Young
14 March 2025
Chartered Accountants
Statutory Auditor
PERCY MARTIN LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 JULY 2024
- 8 -
2024
2023
Notes
£
£
Turnover
18,341,719
18,995,051
Cost of sales
(15,054,085)
(14,917,689)
Gross profit
3,287,634
4,077,362
Administrative expenses
(1,642,786)
(1,753,359)
Operating profit
1,644,848
2,324,003
Interest receivable and similar income
3
123,607
10,721
Interest payable and similar expenses
(31,574)
(1,747)
Other gains
12
100,000
-
Profit before taxation
1,836,881
2,332,977
Tax on profit
4
(415,823)
(497,427)
Profit for the financial year
1,421,058
1,835,550
The profit and loss account has been prepared on the basis that all operations are continuing operations.
PERCY MARTIN LIMITED
BALANCE SHEET
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
5
149,193
162,727
Investments
6
50
50
149,243
162,777
Current assets
Stocks
3,571,868
3,255,929
Debtors
7
398,873
666,933
Cash at bank and in hand
2,068,860
1,131,400
6,039,601
5,054,262
Creditors: amounts falling due within one year
8
(1,824,423)
(1,015,790)
Net current assets
4,215,178
4,038,472
Total assets less current liabilities
4,364,421
4,201,249
Creditors: amounts falling due after more than one year
9
(65,994)
(128,845)
Provisions for liabilities
(33,724)
(36,974)
Net assets
4,264,703
4,035,430
Capital and reserves
Called up share capital
10
1,531
1,531
Share premium account
4,500
4,500
Capital redemption reserve
3,469
3,469
Profit and loss reserves
4,255,203
4,025,930
Total equity
4,264,703
4,035,430
PERCY MARTIN LIMITED
BALANCE SHEET (CONTINUED)
- 10 -
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.
The financial statements were approved by the board of directors and authorised for issue on 12 March 2025 and are signed on its behalf by:
I A Martin
A J Martin
Director
Director
Company registration number 00507125 (England and Wales)
PERCY MARTIN LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JULY 2024
- 11 -
Share capital
Share premium account
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 August 2022
1,722
4,500
3,278
2,490,380
2,499,880
Year ended 31 July 2023:
Profit and total comprehensive income
-
-
-
1,835,550
1,835,550
Issue of share capital
10
383
-
-
383
Own shares acquired
-
-
-
(300,000)
(300,000)
Redemption of shares
10
(191)
-
(191)
Reduction of shares
10
(383)
-
(383)
Other movements
-
-
191
-
191
Balance at 31 July 2023
1,531
4,500
3,469
4,025,930
4,035,430
Year ended 31 July 2024:
Profit and total comprehensive income
-
-
-
1,421,058
1,421,058
Dividends
-
-
-
(1,191,785)
(1,191,785)
Balance at 31 July 2024
1,531
4,500
3,469
4,255,203
4,264,703
PERCY MARTIN LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 JULY 2024
- 12 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
14
1,966,525
289,372
Interest paid
(31,574)
(1,747)
Income taxes paid
(502,049)
(623,504)
Net cash inflow/(outflow) from operating activities
1,432,902
(335,879)
Investing activities
Purchase of tangible fixed assets
(16,238)
(7,676)
Proceeds from disposal of tangible fixed assets
1,620
Interest received
23,607
10,721
Dividends received
100,000
Net cash generated from investing activities
108,989
3,045
Financing activities
Purchase of treasury shares
(300,000)
Repayment of borrowings
(114,852)
(109,383)
Payment of finance leases obligations
(45,829)
Amounts drawn from directors loan account
(445,734)
Dividends paid
(43,845)
Net cash used in financing activities
(604,431)
(455,212)
Net increase/(decrease) in cash and cash equivalents
937,460
(788,046)
Cash and cash equivalents at beginning of year
1,131,400
1,919,446
Cash and cash equivalents at end of year
2,068,860
1,131,400
PERCY MARTIN LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024
- 13 -
1
Accounting policies
Company information
Percy Martin Limited is a private company limited by shares incorporated in England and Wales. The registered office is Church Hill Road, Thurmaston, Leicester, LE4 8DJ.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for machine tool goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes.
1.3
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Fixtures, fittings & equipment
10% straight line
Motor vehicles
20% straight line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.4
Fixed asset investments
Interests in jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
A joint venture is an entity, being neither a subsidiary nor an associate, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the joint venture.
PERCY MARTIN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
1
Accounting policies
(Continued)
- 14 -
1.5
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).
1.6
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.7
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price. Financial assets classified as receivable within one year are not amortised.
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
PERCY MARTIN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
1
Accounting policies
(Continued)
- 15 -
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Basic financial liabilities
Basic financial liabilities, including creditors and loans from fellow group companies, are initially recognised at transaction price. Financial liabilities classified as payable within one year are not amortised.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities. Trade creditors are recognised initially at transaction price.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.8
Equity instruments
Share capital issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on share capital are recognised as liabilities once they are no longer at the discretion of the company.
1.9
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
PERCY MARTIN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
1
Accounting policies
(Continued)
- 16 -
1.10
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
1.11
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
1.12
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Total
16
14
3
Interest receivable and similar income
2024
2023
£
£
Interest receivable and similar income includes the following:
Income from shares in group undertakings
100,000
PERCY MARTIN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 17 -
4
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
419,073
502,000
Adjustments in respect of prior periods
4
Total current tax
419,073
502,004
Deferred tax
Origination and reversal of timing differences
(3,250)
(4,577)
Total tax charge
415,823
497,427
5
Tangible fixed assets
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
Cost
At 1 August 2023
318,209
15,255
333,464
Additions
16,238
16,238
Disposals
(4,954)
(4,954)
At 31 July 2024
329,493
15,255
344,748
Depreciation and impairment
At 1 August 2023
155,482
15,255
170,737
Depreciation charged in the year
28,152
28,152
Eliminated in respect of disposals
(3,334)
(3,334)
At 31 July 2024
180,300
15,255
195,555
Carrying amount
At 31 July 2024
149,193
149,193
At 31 July 2023
162,727
162,727
6
Fixed asset investments
2024
2023
£
£
Shares in group undertakings and participating interests
50
50
PERCY MARTIN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 18 -
7
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
97,349
198,447
Amounts owed by group undertakings and undertakings in which the company has a participating interest
25,000
Other debtors
276,524
468,486
398,873
666,933
8
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
328,400
204,636
Amounts owed to group undertakings
75,000
Corporation tax
119,024
202,000
Other taxation and social security
16,887
6,357
Other creditors
1,360,112
527,797
1,824,423
1,015,790
Bank overdrafts and loans included within other creditors are secured against all assets of the company.
9
Creditors: amounts falling due after more than one year
2024
2023
£
£
Other creditors
65,994
128,845
Loans included within other creditors are secured against all assets of the company.
10
Called up share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary 'A' shares of 50p each
1,531
1,531
765
765
Ordinary 'B' shares of 50p each
1,531
1,531
766
766
3,062
3,062
1,531
1,531
PERCY MARTIN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
10
Called up share capital
(Continued)
- 19 -
The ordinary shares and ordinary 'B shares rank pari passu in all respects.
11
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2024
2023
£
£
235,307
21,017
12
Related party transactions
During the year the company made sales of £536,362 (2023 - £192,199) to 1st Machinery Auctions Limited, a joint venture of which the company owns 50%. Purchases were also made from 1st Machinery Auctions Limited of £118,627 (2023 - £17,091). In addition a short term loan is due from 1st Machinery for £25,000 (2023 - £75,000 owed to 1st Machinery Auctions Limited) and is included within amounts owed from group undertakings and undertakings in which the company has a participating interest at the year end. During the period a £100,000 adjustment was made to the loan liability to correct historic differences.
During the year the company made rental payments of £162,000 (2023 - £162,000) to Milemast Ltd, a company under common ownership. Sales via recharges of £2,642 (2023 - £1,348) were made to Milemast Ltd in the year.
A short term loan is outstanding from Milemast for £46,315 (2023 - £46,315) and is included within other debtors.
The company has one outstanding loan with the Percy Martin Limited Retirement Fund. There were, however, two loans active during part of the year.
Interest charged on the first loan amounted to £2,748 (2023 - £5,368). Capital repayments of £57,744 (2023 - £57,744) were made during the year, leaving a balance of £nil (2023 - £54,994) owed by the company and included within other creditors due within and over one year at the year end. The loan interest is calculated at 5.0% above the base rate.
Interest charged on a second loan amounted to £9,435 (2023 - £12,285). Capital repayments of £69,292 (2023 - £69,292) were made during the year, leaving a balance of £128,844 (2023 - £188,700) owed by the company and included within other creditors due within and over one year at the year end. The loan interest is calculated at 5.0% above the base rate.
PERCY MARTIN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 20 -
13
Directors' transactions
Movements on loans between the company and the directors are as follows:
Description
% Rate
Opening balance
Amounts advanced
Amounts repaid
Closing balance
£
£
£
£
A J Martin - Loan to company
-
102,041
576,266
(156,456)
521,851
I A Martin - Loan to company
-
74,435
573,567
(289,278)
358,724
176,476
1,149,833
(445,734)
880,575
14
Cash generated from operations
2024
2023
£
£
Profit for the year after tax
1,421,058
1,835,550
Adjustments for:
Taxation charged
415,823
497,427
Finance costs
31,574
1,747
Investment income
(123,607)
(10,721)
Depreciation and impairment of tangible fixed assets
28,152
29,083
Movements in working capital:
Increase in stocks
(315,939)
(992,653)
Decrease in debtors
268,060
56,871
Increase/(decrease) in creditors
241,404
(1,127,932)
Cash generated from operations
1,966,525
289,372
15
Analysis of changes in net funds
1 August 2023
Cash flows
31 July 2024
£
£
£
Cash at bank and in hand
1,131,400
937,460
2,068,860
Borrowings excluding overdrafts
(243,696)
114,852
(128,844)
887,704
1,052,312
1,940,016
2024-07-312023-08-01falsefalsefalseCCH SoftwareCCH Accounts Production 2024.310I A MartinA J MartinR J MartinJ L MartinA J Martin005071252023-08-012024-07-3100507125bus:Director12023-08-012024-07-3100507125bus:Director22023-08-012024-07-3100507125bus:Director32023-08-012024-07-3100507125bus:Director42023-08-012024-07-3100507125bus:CompanySecretary12023-08-012024-07-3100507125bus:RegisteredOffice2023-08-012024-07-3100507125bus:Agent12023-08-012024-07-31005071252024-07-31005071252022-08-012023-07-3100507125core:RetainedEarningsAccumulatedLosses2022-08-012023-07-3100507125core:RetainedEarningsAccumulatedLosses2023-08-012024-07-31005071252023-07-3100507125core:FurnitureFittings2024-07-3100507125core:MotorVehicles2024-07-3100507125core:FurnitureFittings2023-07-3100507125core:MotorVehicles2023-07-3100507125core:CurrentFinancialInstrumentscore:WithinOneYear2024-07-3100507125core:CurrentFinancialInstrumentscore:WithinOneYear2023-07-3100507125core:Non-currentFinancialInstrumentscore:AfterOneYear2024-07-3100507125core:Non-currentFinancialInstrumentscore:AfterOneYear2023-07-3100507125core:CurrentFinancialInstruments2024-07-3100507125core:CurrentFinancialInstruments2023-07-3100507125core:ShareCapital2024-07-3100507125core:ShareCapital2023-07-3100507125core:SharePremium2024-07-3100507125core:SharePremium2023-07-3100507125core:CapitalRedemptionReserve2024-07-3100507125core:CapitalRedemptionReserve2023-07-3100507125core:RetainedEarningsAccumulatedLosses2024-07-3100507125core:RetainedEarningsAccumulatedLosses2023-07-3100507125core:ShareCapital2022-07-3100507125core:SharePremium2022-07-3100507125core:CapitalRedemptionReserve2022-07-3100507125core:RetainedEarningsAccumulatedLosses2022-07-3100507125core:ShareCapitalOrdinaryShares2024-07-3100507125core:ShareCapitalOrdinaryShares2023-07-3100507125core:ShareCapital2022-08-012023-07-3100507125core:SharePremium2022-08-012023-07-31005071252023-07-31005071252022-07-3100507125core:FurnitureFittings2023-08-012024-07-3100507125core:MotorVehicles2023-08-012024-07-3100507125core:UKTax2023-08-012024-07-3100507125core:UKTax2022-08-012023-07-3100507125core:FurnitureFittings2023-07-3100507125core:MotorVehicles2023-07-3100507125core:WithinOneYear2024-07-3100507125core:WithinOneYear2023-07-3100507125core:Non-currentFinancialInstruments2024-07-3100507125core:Non-currentFinancialInstruments2023-07-3100507125bus:PrivateLimitedCompanyLtd2023-08-012024-07-3100507125bus:FRS1022023-08-012024-07-3100507125bus:Audited2023-08-012024-07-3100507125bus:FullAccounts2023-08-012024-07-31xbrli:purexbrli:sharesiso4217:GBP