Company registration number 1773891 (England and Wales)
PLANTRONICS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 MARCH 2024
PLANTRONICS LIMITED
COMPANY INFORMATION
Directors
Mr T C Salomon
(Appointed 1 August 2023)
Mr N R Sawyer
(Appointed 1 November 2023)
Company number
1773891
Registered office
Earley West
300 Thames Valley Park Drive
Reading
Berkshire
United Kingdom
RG6 1PT
Auditor
Azets Audit Services
Suites B & D
Burnham Yard
London End
Beaconsfield
Buckinghamshire
United Kingdom
HP9 2JH
PLANTRONICS LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
3 - 4
Directors' responsibilities statement
2
Independent auditor's report
5 - 7
Profit and loss account
8
Statement of comprehensive income
9
Balance sheet
10
Statement of changes in equity
11
Notes to the financial statements
12 - 23
Detailed trading and profit and loss account
24 - 26
PLANTRONICS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 MARCH 2024
- 1 -
The directors present the strategic report for the year ended 30 March 2024.
Review of the business
The results of the company for the period are set out on page 8. Profit on ordinary activities before tax and share based payment equity charges was £3,390,736 (2023: £2,429,662). The shareholders' funds of the company total £21,167,588 (2023: £18,699,836). Due to the acquisition of the Poly Group by HP Inc., the Company is part of the global restructuring plan and the business activity is transferred as per 01 November 2023. All employees of the Company were already transferred to HP Inc UK Limited during fiscal year 2023.
Principal risks and uncertainties
The company's operations expose it to limited financial risks that include credit risk, liquidity risk and interest rate risk.
In respect of credit risk, the company does not run any risk regarding uncollectible receivables from third parties, as the receivables of the company have been transferred to the Principal under an undisclosed agency agreement. In this agreement the ownership of receivables is transferred to the Principal, Plantronics B.V.
In respect of liquidity risk, the company obtains necessary finance from within the HP group. The company's favorable liquidity situation did not warrant any significant borrowing in the current period.
Policies in this regard will be considered at an appropriate time by the directors. As no external borrowings are made in the company nor given, no interest rate risk is present.
In respect of interest rate risk, the company does not run a high risk, as we do not have any high cash volumes. In case the market interest rate declines, our interest income will decrease likewise.
Development and performance
The Company sold the business activity as per 01 November 2023 to HP Inc UK Limited as part of the HP restructuring plan. From that date, there is no operational activity left in the Company.
Key performance indicators
Given the straightforward nature of the business, the company's directors are of the opinion deep analysis using KPIs is not necessary for an understanding of the development, performance or position of the business.
Mr T C Salomon
Director
17 March 2025
PLANTRONICS LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 MARCH 2024
- 2 -
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;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
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.
PLANTRONICS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 MARCH 2024
- 3 -
The directors present their annual report and financial statements for the year ended 30 March 2024.
Principal activities
The principal activity of the Company continued, until 31 October 2023, to be that of acting as a distributor for Plantronics B.V., the parent company incorporated in The Netherlands. As per 01 November 2024, the distribution activities are transferred to another group company and there is no operational activity left in the Company.
Results and dividends
The results for the year are set out on page 8.
The Company didn’t declare and/or paid any dividends during the financial year ended 30 March 2024.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Ms C F Morin
(Resigned 1 August 2023)
Mr T C Salomon
(Appointed 1 August 2023)
Mr D N Prezzano
(Resigned 1 November 2023)
Mr N R Sawyer
(Appointed 1 November 2023)
Research and development
During the period, the company carried out research and development on new products and local market customization. The amount spent for the period to 30 March 2024 is £10,112 (2023: £2,763,399 ).
The company ended the research and development activity during the year.
Auditor
Azets Audit Services was appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.
Energy and carbon report
2024
2023
Energy consumption
kWh
kWh
Aggregate of energy consumption in the year
119,906
1,181,050
PLANTRONICS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 MARCH 2024
- 4 -
2024
2023
Emissions of CO2 equivalent
metric tonnes
metric tonnes
Scope 1 - direct emissions
- Gas combustion
19.98
72.31
- Fuel consumed for owned transport
-
12.64
19.98
84.95
Scope 2 - indirect emissions
- Electricity purchased
33.51
69.11
Scope 3 - other indirect emissions
- Fuel consumed for transport not owned by the
3.00
6.32
Total gross emissions
56.49
160.38
Intensity ratio
Tonnes CO2e per GBP one million revenue
1.3
2.16
Quantification and reporting methodology
We have followed the 2019 HM Government Environmental Reporting Guidelines. We have also used the GHG Reporting Protocol – Corporate Standard and have used the 2020 UK Government’s Conversion Factors for Company Reporting.
Intensity measurement
The chosen intensity measurement ratio is total gross emissions in metric tonnes CO2e per GBP one million revenue. This method is chosen because the Company does not have employees.
Measures taken to improve energy efficiency
We have taken several actions to improve the energy efficiency. Examples of these actions are the installation of solar panels and energy saving lightning, promoting awareness of saving energy and waste segregation.
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.
On behalf of the board
Mr T C Salomon
Director
17 March 2025
PLANTRONICS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF PLANTRONICS LIMITED
- 5 -
Opinion
We have audited the financial statements of Plantronics Limited (the 'company') for the year ended 30 March 2024 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity 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 30 March 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 a basis of accounting other than going concern in the preparation of the financial statements is appropriate.
We draw attention to note 1.2 of the financial statements which discloses the basis under which these financial statements have been prepared. In accordance with their responsibilities as directors, the directors have concluded that the going concern basis of accounting is inappropriate in preparing these financial statements due to managements intention to liquidate the company. The directors have therefore adopted a basis of accounting other than going concern in preparing these financial statements. Our opinion is not modified in respect of this matter.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
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.
PLANTRONICS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF PLANTRONICS LIMITED
- 6 -
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 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.
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.
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.
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.
PLANTRONICS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF PLANTRONICS LIMITED
- 7 -
Extent to which the audit was considered capable of detecting irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.
We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework. Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.
In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:
Enquiry of management and those charged with governance around actual and potential litigation and claims as well as actual, suspected and alleged fraud;
Assessing the extent of compliance with the laws and regulations considered to have a direct material effect on the financial statements or the operations of the company through enquiry and inspection;
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;
Performing audit work over the risk of management bias and 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 indicators of potential bias.
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 that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
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.
Jack Tatschner ACA
Senior Statutory Auditor
For and on behalf of Azets Audit Services
18 March 2025
Chartered Accountants
Statutory Auditor
Suites B & D
Burnham Yard
London End
Beaconsfield
Buckinghamshire
United Kingdom
HP9 2JH
PLANTRONICS LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 30 MARCH 2024
- 8 -
2024
2023
Notes
£
£
Turnover
3
43,812,396
74,415,745
Cost of sales
(22,466,627)
(46,937,271)
Gross profit
21,345,769
27,478,474
Administrative expenses
(18,139,885)
(25,270,442)
Other operating income
105,221
56,208
Operating profit
4
3,311,105
2,264,240
Interest receivable and similar income
7
79,631
165,422
Profit before taxation
3,390,736
2,429,662
Tax on profit
8
(922,984)
(439,798)
Profit for the financial year
2,467,752
1,989,864
The profit and loss account has been prepared on the basis that all operations are continuing operations.
PLANTRONICS LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 MARCH 2024
- 9 -
2024
2023
£
£
Profit for the year
2,467,752
1,989,864
Other comprehensive income
-
-
Total comprehensive income for the year
2,467,752
1,989,864
The notes on pages 12 to 23 form part of these financial statements.
PLANTRONICS LIMITED
BALANCE SHEET
AS AT
30 MARCH 2024
30 March 2024
- 10 -
30 March 2024
2 April 2023
Notes
£
£
£
£
Fixed assets
Tangible assets
10
393,447
919,769
Current assets
Stocks
11
406,823
396,276
Debtors
12
34,458,633
31,552,373
Cash at bank and in hand
649,334
7,375,685
35,514,790
39,324,334
Creditors: amounts falling due within one year
13
(14,571,839)
(19,016,343)
Net current assets
20,942,951
20,307,991
Total assets less current liabilities
21,336,398
21,227,760
Creditors: amounts falling due after more than one year
14
(1,821,700)
Provisions for liabilities
Provisions
15
168,810
706,224
(168,810)
(706,224)
Net assets
21,167,588
18,699,836
Capital and reserves
Called up share capital
19
101
101
Share premium account
14,217,962
14,217,962
Capital redemption reserve
1,250,000
1,250,000
Profit and loss reserves
5,699,525
3,231,773
Total equity
21,167,588
18,699,836
The financial statements were approved by the board of directors and authorised for issue on 17 March 2025 and are signed on its behalf by:
Mr T C Salomon
Director
Company Registration No. 1773891
PLANTRONICS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 MARCH 2024
- 11 -
Share capital
Share premium account
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 3 April 2022
101
14,217,962
1,250,000
18,302,141
33,770,204
Year ended 1 April 2023:
Profit and total comprehensive income for the year
-
-
-
1,989,864
1,989,864
Dividends
9
-
-
-
(17,060,232)
(17,060,232)
Balance at 1 April 2023
101
14,217,962
1,250,000
3,231,773
18,699,836
Year ended 30 March 2024:
Profit and total comprehensive income for the year
-
-
-
2,467,752
2,467,752
Balance at 30 March 2024
101
14,217,962
1,250,000
5,699,525
21,167,588
PLANTRONICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 MARCH 2024
- 12 -
1
Accounting policies
Company information
Plantronics Limited is a private company limited by shares incorporated in England and Wales. The registered office is Earley West, 300 Thames Valley Park Drive, Reading, Berkshire, United Kingdom, RG6 1PT.
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.
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.
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:
- Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
- Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues’: Interest income/expense and net gains/losses for each category of financial instrument; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
- Section 26 ‘Share based Payment’: Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;
- Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
The financial statements of the company are consolidated in the financial statements of HP Inc. These consolidated financial statements are available from its registered office, 1501 Page Mill Road, Palo Alto, California, 94304, United States of America.
1.2
Going concern
During the year the decision was made to hive up the trade and assets of the company into the group post year end. As such, Plantronics Limited will cease to trade in the following financial year and will be subsequently wound up. The group truehas confirmed that they will provide support to enable the company to fulfil its financial obligations as and when they fall due until this point. The financial statements are therefore prepared on a basis other than going concern.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
PLANTRONICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 MARCH 2024
1
Accounting policies
(Continued)
- 13 -
Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.
1.4
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:
Property improvements
Straight line over 7 years
Plant and equipment
2 - 5 years straight line
Fixtures and fittings
3 - 5 years straight line
Computers
2 - 5 years 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.
1.5
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). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
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.
Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.
PLANTRONICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 MARCH 2024
1
Accounting policies
(Continued)
- 14 -
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 including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. 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.
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.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
PLANTRONICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 MARCH 2024
1
Accounting policies
(Continued)
- 15 -
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
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 if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.
1.8
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.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
PLANTRONICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 MARCH 2024
1
Accounting policies
(Continued)
- 16 -
1.9
Provisions
Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.
Dilapidations
The provision related to and covers the cost of dilapidations for the London Experience Centre. The provisions are expected to be utilised at the end of the relevant lease.
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.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.11
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.12
Share-based payments
The company participates in a group settled share-based payment arrangement granted by its ultimate parent company to its employees. Group-settled share-based payments are measured at fair value at the date of grant by reference to the fair value of the equity instruments granted using the Black Scholes model. The fair value determined at the grant date is expensed on a straight-line basis over the vesting period, based on the estimate of shares that will eventually vest. A corresponding adjustment is made to liabilities to represent the future compensation charge levied by the parent company on exercise.
When the terms and conditions of equity-settled share-based payments at the time they were granted are subsequently modified, the fair value of the share-based payment under the original terms and conditions and under the modified terms and conditions are both determined at the date of the modification. Any excess of the modified fair value over the original fair value is recognised over the remaining vesting period in addition to the grant date fair value of the original share-based payment. The share-based payment expense is not adjusted if the modified fair value is less than the original fair value.
Cancellations or settlements (including those resulting from employee redundancies) are treated as an acceleration of vesting and the amount that would have been recognised over the remaining vesting period is recognised immediately.
1.13
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.
PLANTRONICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 MARCH 2024
1
Accounting policies
(Continued)
- 17 -
1.14
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
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Critical judgements
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
Dilapidation provision
At the end of the lease at the properties; Building 4, Foundation Park in Maidenhead and London Experience Centre, the provisions are expected to be utilised to return the properties back to the original condition. There is uncertainty in relation to the future cost of the dilapidation repairs, which has a current provision of £168,810.
3
Turnover and other revenue
An analysis of the company's turnover is as follows:
2024
2023
£
£
Turnover analysed by class of business
Third party sales
43,775,612
71,370,298
Retainer fee
36,784
3,045,447
43,812,396
74,415,745
2024
2023
£
£
Other revenue
Interest income
79,631
165,422
PLANTRONICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 MARCH 2024
- 18 -
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange gains
(3,900)
(586,602)
Depreciation of owned tangible fixed assets
265,307
537,127
Loss on disposal of tangible fixed assets
120,534
108,597
Operating lease charges
346,333
797,574
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Sales and marketing
-
80
Administration
-
11
Production and technical
-
19
Total
110
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
12,743,302
Social security costs
-
1,437,527
Pension costs
462,127
14,642,956
6
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
46,640
43,185
For other services
Audit-related assurance services
46,640
43,185
Taxation compliance services
3,150
2,900
All other non-audit services
5,110
4,750
54,900
50,835
PLANTRONICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 MARCH 2024
- 19 -
7
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
79,631
1,058
Interest receivable from group companies
164,364
Total income
79,631
165,422
8
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
885,625
262,260
Adjustments in respect of prior periods
5,704
Total current tax
885,625
267,964
Deferred tax
Origination and reversal of timing differences
37,359
171,834
Total tax charge
922,984
439,798
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2024
2023
£
£
Profit before taxation
3,390,736
2,429,662
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
847,684
461,636
Tax effect of expenses that are not deductible in determining taxable profit
34,230
33,908
Permanent capital allowances in excess of depreciation
3,710
35,182
Tax relief on share options
107,818
Share based payment charge
(376,284)
Under/(over) provided in prior years
5,704
Deferred tax adjustments
37,360
171,834
Taxation charge for the year
922,984
439,798
PLANTRONICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 MARCH 2024
- 20 -
9
Dividends
2024
2023
£
£
Final paid
17,060,232
10
Tangible fixed assets
Property improvements
Assets under construction
Plant and equipment
Fixtures and fittings
Computers
Total
£
£
£
£
£
£
Cost
At 2 April 2023
1,960,726
11,093
101,252
3,977
836,275
2,913,323
Disposals
(524,755)
(11,093)
(96,264)
(3,977)
(791,436)
(1,427,525)
At 30 March 2024
1,435,971
4,988
44,839
1,485,798
Depreciation and impairment
At 2 April 2023
1,297,486
101,252
3,977
590,839
1,993,554
Depreciation charged in the year
208,758
56,549
265,307
Eliminated in respect of disposals
(463,720)
(96,264)
(3,977)
(602,549)
(1,166,510)
At 30 March 2024
1,042,524
4,988
44,839
1,092,351
Carrying amount
At 30 March 2024
393,447
393,447
At 1 April 2023
663,240
11,093
245,436
919,769
11
Stocks
2024
2023
£
£
Finished goods and goods for resale
406,823
396,276
12
Debtors
2024
2023
Amounts falling due within one year:
£
£
Corporation tax recoverable
855,586
Amounts owed by group undertakings
33,578,941
28,820,190
Other debtors
330,844
1,026,743
Prepayments and accrued income
152,401
416,047
34,062,186
31,118,566
PLANTRONICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 MARCH 2024
12
Debtors
(Continued)
- 21 -
2024
2023
Amounts falling due after more than one year:
£
£
Deferred tax asset (note 16)
396,447
433,807
Total debtors
34,458,633
31,552,373
13
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Trade creditors
158,697
419,641
Amounts owed to group undertakings
9,121,081
7,184,236
Corporation tax
573,125
Deferred income
17
4,079,780
3,968,317
Other creditors
19,587
Accruals and deferred income
639,156
7,424,562
14,571,839
19,016,343
14
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Deferred income
17
1,601,789
Other creditors
219,911
1,821,700
15
Provisions for liabilities
2024
2023
£
£
Dilapidations
168,810
706,224
Movements on provisions:
Dilapidations
£
At 2 April 2023
706,223
Reversal of provision
(537,413)
At 30 March 2024
168,810
PLANTRONICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 MARCH 2024
15
Provisions for liabilities
(Continued)
- 22 -
Dilapidations
The provision related to and covers the cost of dilapidations for the London Experience Centre. At the end of the lease at the properties; Building 4, Foundation Park in Maidenhead and London Experience Centre, the provisions are expected to be utilised to return the properties back to the original condition. There is uncertainty in relation to future cost of the dilapidation repairs, which has a current provision of £168,810.
16
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Assets
Assets
2024
2023
Balances:
£
£
Accelerated capital allowances
396,447
433,807
2024
Movements in the year:
£
Asset at 2 April 2023
(433,807)
Charge to profit or loss
37,360
Asset at 30 March 2024
(396,447)
The deferred tax asset set out above is expected to reverse within 5 years and relates to future tax deductions from the share based payment scheme offset by to accelerated capital allowances that are expected to mature within the same period.
17
Deferred income
2024
2023
£
£
Other deferred income
4,079,780
5,570,106
Included in the financial statements as follows:
Current liabilities
4,079,780
3,968,317
Non-current liabilities
1,601,789
4,079,780
5,570,106
PLANTRONICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 MARCH 2024
- 23 -
18
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
-
462,127
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
19
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
101
101
101
101
20
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2024
2023
£
£
Within one year
41,646
646,906
Between two and five years
383,647
41,646
1,030,553
21
Events after the reporting date
During the year the decision was made to hive up the trade and assets of the company into the group post year end. As such, Plantronics Limited will cease to trade in the following financial year and will be subsequently wound up.
22
Ultimate controlling party
The immediate parent undertaking is Plantronics B.V., which is incorporated in The Netherlands. The ultimate parent undertaking and controlling party is HP Inc., a company incorporated in the United States of America. Copies of the group financial statements of HP Inc. may be obtained from HP Inc., HP Inc. These consolidated financial statements are available from its registered office, 1501 Page Mill Road, Palo Alto, California, 94304, United States of America.
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