Company Registration No. 02822939 (England and Wales)
Presman (Bullion) Limited
Annual report and financial statements
for the period ended 30 August 2024
Presman (Bullion) Limited
Company information
Directors
H Weiner
T Bransbury
G Williams
Secretary
H Weiner
Company number
02822939
Registered office
2 Leman Street
London
E1W 9US
Independent auditor
Saffery LLP
71 Queen Victoria Street
London
EC4V 4BE
Presman (Bullion) Limited
Contents
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Statement of comprehensive income
8
Statement of financial position
9
Statement of changes in equity
10
Statement of cash flows
11
Notes to the financial statements
12 - 23
Presman (Bullion) Limited
Strategic report
For the period ended 30 August 2024
1
The directors present the strategic report for the period ended 30 August 2024.
Fair review of the business
The company performed in line with expectations, showing healthy margins.
The increase in turnover of 33% to £114,864,304 (2023: £86,162,427) is mainly due to volatile precious metal prices.
Principal risks and uncertainties
The principal risks associated with the company include the continuing need to monitor precious metal prices and maintain strong relationships with suppliers.
The company's principal financial instruments compromise of bank balances, trade debtors and trade creditors.
The main purpose of these instruments is to raise funds for the company's operations.
In respect of bank balances, the liquidity risk is managed by maintaining a balance between continuity of funding and flexibility through the use of metal overdrafts at floating lease rates of charges.
Trade debtors are managed in respect of credit and cash flow risk by policies concerning the credit offered to customers and the regular monitoring of amounts outstanding for both time and credit limits.
Trade creditors liquidity risk is managed by ensuring sufficient funds are available to meet amounts due.
Key performance indicators
The key financial highlights are as follows:
2024
2023
£
£
Turnover
114,864,304
86,162,427
Profit before taxation
1,385,974
557,613
The directors are satisfied that the company is meeting its goals in these key areas.
Presman (Bullion) Limited
Strategic report (continued)
For the period ended 30 August 2024
2
Statement by the Directors in performance of their statutory duties in accordance with s172(1) companies Act 2006
The Board considers the impact of the company’s operations on the community and environment and our wider societal responsibilities. The company supports local charities, enables staff charity events and is an active corporate citizen. As a company we are a long-term active organisation in terms of social equality, diversity and inclusion. A social Equity council drawn from all parts and levels of the company drives this work.
Our intention is to behave responsibly and ensure that management operate the business in a responsible manner, operating within a high standard of business conduct and good governance.
As a board of directors our intention is to behave responsibly towards our shareholders and treat them fairly and equally.
T Bransbury
Director
14 March 2025
Presman (Bullion) Limited
Directors' report
For the period ended 30 August 2024
3
The directors present their annual report and financial statements for the period ended 30 August 2024.
Principal activities
The principal activity of the company continued to be that of buying and selling precious metals.
Future developments
The company will continue to be engaged as buyers and sellers of precious metals.
Results and dividends
The results for the period are set out on page 8.
Ordinary dividends were paid amounting to £593,600 (2023: £475,000 ). The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the period and up to the date of signature of the financial statements were as follows:
H Weiner
T Bransbury
G Williams
Auditor
Saffery LLP have expressed their willingness to continue in office.
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;
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.
Presman (Bullion) Limited
Directors' report (continued)
For the period ended 30 August 2024
4
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.
Going concern
At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
On behalf of the board
T Bransbury
Director
14 March 2025
Presman (Bullion) Limited
Independent auditor's report
To the members of Presman (Bullion) Limited
5
Opinion
We have audited the financial statements of Presman (Bullion) Limited (the 'company') for the period ended 30 August 2024 which comprise the statement of comprehensive income, the statement of financial position, 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 30 August 2024 and of its profit for the period 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.
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.
Presman (Bullion) Limited
Independent auditor's report (continued)
To the members of Presman (Bullion) Limited
6
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 period 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 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.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud are detailed below.
Identifying and assessing risks related to irregularities:
We assessed the susceptibility of the company’s financial statements to material misstatement and how fraud might occur, including through discussions with the directors, discussions within our audit team planning meeting, updating our record of internal controls and ensuring these controls operated as intended. We evaluated possible incentives and opportunities for fraudulent manipulation of the financial statements. We identified laws and regulations that are of significance in the context of the company by discussions with directors and by updating our understanding of the sector in which the company operates.
Presman (Bullion) Limited
Independent auditor's report (continued)
To the members of Presman (Bullion) Limited
7
Laws and regulations of direct significance in the context of the company include The Companies Act 2006 and UK Tax legislation.
Audit response to risks identified
We considered the extent of compliance with these laws and regulations as part of our audit procedures on the related financial statement items including a review of financial statement disclosures. We reviewed the company's records of breaches of laws and regulations, minutes of meetings and correspondence with relevant authorities to identify potential material misstatements arising. We discussed the company's policies and procedures for compliance with laws and regulations with members of management responsible for compliance.
During the planning meeting with the audit team, the engagement partner drew attention to the key areas which might involve non-compliance with laws and regulations or fraud. We enquired of management whether they were aware of any instances of non-compliance with laws and regulations or knowledge of any actual, suspected or alleged fraud. We addressed the risk of fraud through management override of controls by testing the appropriateness of journal entries and identifying any significant transactions that were unusual or outside the normal course of business. We assessed whether judgements made in making accounting estimates gave rise to a possible indication of management bias. At the completion stage of the audit, the engagement partner’s review included ensuring that the team had approached their work with appropriate professional scepticism and thus the capacity to identify non-compliance with laws and regulations and fraud.
There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
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.
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.
Michael Di Leto
Senior Statutory Auditor
For and on behalf of Saffery LLP
14 March 2025
Statutory Auditors
71 Queen Victoria Street
London
EC4V 4BE
Presman (Bullion) Limited
Statement of comprehensive income
For the period ended 30 August 2024
8
Period
Period
ended
ended
30 August
25 August
2024
2023
Notes
£
£
Turnover
3
114,864,304
86,162,427
Cost of sales
(112,103,968)
(84,479,511)
Gross profit
2,760,336
1,682,916
Administrative expenses
(1,337,578)
(1,045,674)
Operating profit
4
1,422,758
637,242
Interest receivable and similar income
8
15,865
Interest payable and similar expenses
9
(52,649)
(79,629)
Profit before taxation
1,385,974
557,613
Tax on profit
10
(347,251)
(116,556)
Profit for the financial period
1,038,723
441,057
The income statement has been prepared on the basis that all operations are continuing operations.
Presman (Bullion) Limited
Statement of financial position
As at 30 August 2024
9
30 August 2024
25 August 2023
Notes
£
£
£
£
Fixed assets
Tangible assets
12
42,366
51,495
Current assets
Stocks
13
3,590,561
6,144,191
Debtors
14
659,924
793,881
Cash at bank and in hand
3,528,152
760,355
7,778,637
7,698,427
Creditors: amounts falling due within one year
15
(669,328)
(1,041,645)
Net current assets
7,109,309
6,656,782
Total assets less current liabilities
7,151,675
6,708,277
Provisions for liabilities
Deferred tax liability
16
4,690
6,415
(4,690)
(6,415)
Net assets
7,146,985
6,701,862
Capital and reserves
Called up share capital
18
100
100
Profit and loss reserves
7,146,885
6,701,762
Total equity
7,146,985
6,701,862
The financial statements were approved by the board of directors and authorised for issue on 14 March 2025 and are signed on its behalf by:
T Bransbury
Director
Company Registration No. 02822939
Presman (Bullion) Limited
Statement of changes in equity
For the period ended 30 August 2024
10
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 27 August 2022
100
6,735,705
6,735,805
Period ended 25 August 2023:
Profit and total comprehensive income
-
441,057
441,057
Dividends
11
-
(475,000)
(475,000)
Balance at 25 August 2023
100
6,701,762
6,701,862
Period ended 30 August 2024:
Profit and total comprehensive income
-
1,038,723
1,038,723
Dividends
11
-
(593,600)
(593,600)
Balance at 30 August 2024
100
7,146,885
7,146,985
Presman (Bullion) Limited
Statement of cash flows
For the period ended 30 August 2024
11
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
22
3,520,062
216,582
Interest paid
(52,649)
(79,629)
Income taxes paid
(121,881)
(237,927)
Net cash inflow/(outflow) from operating activities
3,345,532
(100,974)
Investing activities
Interest received
15,865
Net cash generated from/(used in) investing activities
15,865
-
Financing activities
Dividends paid
(593,600)
(475,000)
Net cash used in financing activities
(593,600)
(475,000)
Net increase/(decrease) in cash and cash equivalents
2,767,797
(575,974)
Cash and cash equivalents at beginning of period
760,355
1,336,329
Cash and cash equivalents at end of period
3,528,152
760,355
Presman (Bullion) Limited
Notes to the financial statements
For the period ended 30 August 2024
12
1
Accounting policies
Company information
Presman (Bullion) Limited is a private company limited by shares incorporated in England and Wales. The registered office is 2 Leman Street, London, E1W 9US.
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.
The financial statements of the company are consolidated in the financial statements of Mastermelt Holdings Limited. These consolidated financial statements are available from its registered office, 2 Leman Street, London. United Kingdom, E1W 9US.
1.2
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Reporting period
The comparative financial period was for the period 27 August 2022 to 25 August 2023 and is not directly comparable to the current period ended 30 August 2024. The period end changes each year due to the company reporting internally on the last Friday of the period.
1.4
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.
Turnover is recognised when it can be measured reliably and the significant risks and rewards of ownership transferred to the customer. With sales of goods, this occurs when the goods are despatched or made available to the customer. With refining services, revenue is recognised by reference to the stage of completion as measured by the proportion of costs incurred to date.
Presman (Bullion) Limited
Notes to the financial statements (continued)
For the period ended 30 August 2024
1
Accounting policies (continued)
13
1.5
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:
Leasehold land and buildings
10% reducing balance
Plant and equipment
25% reducing balance
Fixtures and fittings
25% reducing balance
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.
1.6
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.
1.7
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to sell, which is equivalent to net realisable value. Cost is based on the first-in first-out principle and includes expenditure incurred in acquiring the stocks, production or conversion costs and other costs in bringing them to their existing 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.
Presman (Bullion) Limited
Notes to the financial statements (continued)
For the period ended 30 August 2024
1
Accounting policies (continued)
14
1.8
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.9
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 statement of financial position 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, 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.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
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.
Presman (Bullion) Limited
Notes to the financial statements (continued)
For the period ended 30 August 2024
1
Accounting policies (continued)
15
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.
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.
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.10
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.11
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 income statement 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.
Presman (Bullion) Limited
Notes to the financial statements (continued)
For the period ended 30 August 2024
1
Accounting policies (continued)
16
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. Where items recognised in other comprehensive income or equity are chargeable to or deductible for tax purposes, the resulting current or deferred tax expense or income is presented in the same component of comprehensive income or equity as the transaction or other event that resulted in the tax expense or income. 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.
1.12
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.
1.13
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.14
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.
1.15
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
Critical accounting 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.
Presman (Bullion) Limited
Notes to the financial statements (continued)
For the period ended 30 August 2024
17
3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Precious metal sales
114,864,304
86,162,427
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
114,864,304
86,162,427
2024
2023
£
£
Other revenue
Interest income
15,865
-
4
Operating profit
2024
2023
Operating profit for the period is stated after charging:
£
£
Exchange losses
22
Depreciation of owned tangible fixed assets
9,129
11,309
Operating lease charges
50,487
50,774
5
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
40,000
39,500
For other services
Taxation compliance services
6,000
5,900
Presman (Bullion) Limited
Notes to the financial statements (continued)
For the period ended 30 August 2024
18
6
Employees
The average monthly number of persons (including directors) employed by the company during the period was:
2024
2023
Number
Number
Director
1
1
Administration
6
6
Total
7
7
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
436,458
401,554
Social security costs
44,765
24,657
Pension costs
13,620
10,904
494,843
437,115
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
102,333
111,439
Company pension contributions to defined contribution schemes
2,893
2,747
105,226
114,186
8
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
15,865
2024
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
15,865
Presman (Bullion) Limited
Notes to the financial statements (continued)
For the period ended 30 August 2024
19
9
Interest payable and similar expenses
2024
2023
£
£
Interest on bank overdrafts and loans
729
-
Lease finance charges - Metal
51,920
79,629
52,649
79,629
10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
348,976
121,881
Adjustments in respect of prior periods
(3,104)
Total current tax
348,976
118,777
Deferred tax
Origination and reversal of timing differences
(1,725)
(2,221)
Total tax charge
347,251
116,556
The actual charge for the period can be reconciled to the expected charge for the period based on the profit or loss and the standard rate of tax as follows:
2024
2023
£
£
Profit before taxation
1,385,974
557,613
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 21.42%)
346,494
119,458
Tax effect of expenses that are not deductible in determining taxable profit
200
Under/(over) provided in prior years
(3,104)
Fixed asset differences
557
520
Remeasurement of deferred tax for change in tax rate
(318)
Taxation charge for the period
347,251
116,556
Presman (Bullion) Limited
Notes to the financial statements (continued)
For the period ended 30 August 2024
20
11
Dividends
2024
2023
£
£
Ordinary Interim paid
593,600
475,000
After the period end no dividend has been declared in relation to the period ended 30 August 2024.
12
Tangible fixed assets
Leasehold land and buildings
Plant and equipment
Fixtures and fittings
Total
£
£
£
£
Cost
At 26 August 2023 and 30 August 2024
88,221
145,262
134,603
368,086
Depreciation and impairment
At 26 August 2023
66,482
131,517
118,592
316,591
Depreciation charged in the period
2,226
4,421
2,482
9,129
At 30 August 2024
68,708
135,938
121,074
325,720
Carrying amount
At 30 August 2024
19,513
9,324
13,529
42,366
At 25 August 2023
21,739
13,745
16,011
51,495
13
Stocks
2024
2023
£
£
Finished goods and goods for resale
3,590,561
6,144,191
14
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
18,231
18,337
Other debtors
633,005
768,269
Prepayments and accrued income
8,688
7,275
659,924
793,881
Presman (Bullion) Limited
Notes to the financial statements (continued)
For the period ended 30 August 2024
21
15
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
85,082
115,283
Amounts owed to group undertakings
600,000
Corporation tax
348,976
121,881
Other taxation and social security
8,113
8,224
Accruals and deferred income
227,157
196,257
669,328
1,041,645
16
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
4,690
6,415
2024
Movements in the period:
£
Liability at 26 August 2023
6,415
Credit to profit or loss
(1,725)
Liability at 30 August 2024
4,690
17
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
13,620
10,904
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.
Presman (Bullion) Limited
Notes to the financial statements (continued)
For the period ended 30 August 2024
22
18
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary Shares of £1 each
50
50
50
50
"A" Ordinary Shares of £1 each
50
50
50
50
100
100
100
100
19
Related party transactions
Transactions with related parties
During the period the company entered into the following transactions with related parties:
Sales
Purchases
2024
2023
2024
2023
£
£
£
£
Mastermelt Limited
128,306
131,323
411,912
475,054
Mastermelt Refining Services Limited
-
1,066,000
-
-
2024
2023
Amounts due to related parties
£
£
Mastermelt Limited
3,311
602,200
2024
2023
Amounts due from related parties
£
£
Mastermelt Limited
3,037
1,258
20
Ultimate controlling party
The ultimate parent undertaking is Mastermelt Holdings Limited, a company incorporated in England with address 2 Leman Street, London, United Kingdom, E1W 9US. The ultimate controlling party remains as Robert Davis.
The financial statements of the company are consolidated in the financial statements of Mastermelt Holdings Limited. These consolidated financial statements are available from its registered office, 2 Leman Street, London, United Kingdom, E1W 9US.
Presman (Bullion) Limited
Notes to the financial statements (continued)
For the period ended 30 August 2024
23
21
Analysis of changes in net funds
26 August 2023
Cash flows
30 August 2024
£
£
£
Cash at bank and in hand
760,355
2,767,797
3,528,152
22
Cash generated from operations
2024
2023
£
£
Profit for the period after tax
1,038,723
441,057
Adjustments for:
Taxation charged
347,251
116,556
Finance costs
52,649
79,629
Investment income
(15,865)
Depreciation and impairment of tangible fixed assets
9,129
11,309
Movements in working capital:
Decrease/(increase) in stocks
2,553,630
(1,493,432)
Decrease in debtors
133,957
578,281
(Decrease)/increase in creditors
(599,412)
483,182
Cash generated from operations
3,520,062
216,582
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