The directors present the strategic report for the year ended 30 June 2024.
Principal activities
The principal activity of the group during the year was the manufacture and sale of medical and surgical instruments and devices.
Review of business
Core Business
The 2024 financial year showed steady progress in our UK and South African subsidiaries, offset by a decline in our international markets.
Group
Group KPI's are highlighted on page 2. Group revenues decreased from £19,871,737 to £19,178,132 in the year, a decrease of 3.5%. After an exceptional credit for bad debts and litigation of £875,454 (2023: £783,826) the group made a loss before tax of £710,286 (2023: profit of £331,845).
United Kingdom
The 2024 financial year remained challenging for our core business due to continued delays in the expected increase in NHS funding in the UK for core services following the Covid-19 pandemic.
Looking forward, with a new Labour government in 2024 and the continued 7m+ patients on waiting lists, the directors continue to believe that the Government will have no option other than to end healthcare austerity by pumping significant resources into the NHS to reduce waiting lists. lt is expected that the group will begin to be a beneficiary of this additional funding in the first half of 2025.
In 2024 we can see that the UK's core revenues have increased by 7% vs FY2023, as a result of improvement in market share.
International
Internationally the group faired poorly with a 12% decrease in revenues, primarily due to temporary strategic distributor realignment in Latin America, notably Brazil.
South Africa
Revenues in FY2024 were up 8.5% v FY2023 due to the continued recovery of this market following the impact from Covid-19 and increases in market share.
Key performance indicators
In the opinion of the directors the key financial performance indicators are the following:
Turnover – 2024: £19,178,132 (2023: £19,871,737) down 3.5%.
Turnover is a key measure of the group's economic output. Although there is a slight dip in revenues, primarily in the international sector, the domestic markets have grown by 7%. Core revenues continue to grow following the multi-year impact of COVID-19 on our customer base plus increases in market share.
The 2024 turnover figure is broken down as:
Core revenues: £19,178,132 (2023: £19,871,737)
Gross profit – 2024: £8,171,679 (2023: £9,328,350)
Gross Profit provides an indication of the group's sales quality and service efficiency.
EBITDA - 2024: £1,828,339 (2023: £2,626,520)
EBITDA (Earnings Before lnterest, Taxes, Depreciation and Amortisation) provides a clear indication of the cash profit generated from the operations of the group. In FY2023, the higher EBITDA is a result of reversed accounting provisions resulting from the fraud recoveries historically perpetrated on the group, and successful litigations credited in the year.
Risks and uncertainties
The surgical device market is highly competitive. The group is subject to UK government policy and the effect on our markets by the general state of the world economy.
Financial risk management
The group's operations expose it to a variety of financial risks that include foreign exchange risk and credit risk. The group has in place a risk management programme that seeks to manage its financial exposure.
Foreign exchange risk
The group is exposed to foreign exchange rate risk in the normal course of business, principally on purchases and sales in Euros and USD which results in a natural hedge.
Credit risk
The group has implemented policies that require appropriate checks on potential customers before sales are made. The amount of exposure to any individual group is subject to a limit which is assessed regularly by the group.
Liquidity risk
The group maintains a consistent and appropriate level of cash, which is generated from retained earnings and profits. The directors consider that the group has the appropriate funding to meet the immediate needs of the business.
Fraud & litigation
Throughout 2024, we have continued to be involved in a number of costly PPE related litigations in the UK, Europe, Hong Kong and the U.S. to recover the sums paid out for goods that were not received.
As at 30 June 2024, the company has provided £35,055,738 (2023: £36,025,478) for non-recovery of advanced payments to suppliers of PPE and potential costs.
Going concern
The directors have adopted the going concern basis in preparing these accounts after assessing the principal risks and having considered the impact of any on-going litigation costs and the customer sales recognised in the year.
The directors have sufficient confidence in the resilience of the group.
The directors believe that the group is well placed to manage it’s financing and other business risks satisfactorily, and have a reasonable expectation that the group will have adequate resources to continue in operation for at least 12 months from the signing date of these financial statements. The directors have not identified any material uncertainties to the group's ability to continue as a going concern. They therefore consider it appropriate to adopt the going concern basis of accounting in preparing the financial statements.
On behalf of the board
The directors present their annual report and financial statements for the year ended 30 June 2024.
The results for the year are set out on page 10.
No ordinary dividends were paid. The directors do not recommend payment of a further dividend.
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
We have audited the financial statements of Purple Surgical Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 June 2024 which comprise the group statement of comprehensive income, the group statement of financial position, the company statement of financial position, the group statement of changes in equity, the company statement of changes in equity, the group 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).
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent 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.
Emphasis of matter – Provisions and events after the reporting period
We draw attention to notes 2 and 4 of the financial statements, which describe judgements and estimates made by the directors regarding provisions for litigations affecting the company during the year and after the year end.
Debtors are stated after a provision relating to amounts advanced to suppliers that have not been recovered. During the year a credit in relation to the provision was recognised in the profit and loss account within Exceptional costs – Bad debt and litigation provision.
At the time of approval of these financial statements the litigation to pursue the recoveries described above and in notes 2 and 4 of the financial statements is on-going and therefore is inherently uncertain. The directors have based their estimates on the continued professional advice received from the company’s lawyers. If the outcome of the litigations differs from the directors’ expectations then the estimates made may not prove to be accurate and could result in material updates to the provisions. Our opinion is not modified in this respect.
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 group's and parent company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Other information
The 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.
In the light of the knowledge and understanding of the group and the parent company and their 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent company financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
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 parent 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 parent company or to cease operations, or have no realistic alternative but to do so.
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 extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations - this responsibility lies with management with the oversight of the directors.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our sector experience through discussion with management (as required by auditing standards).
We had regard to laws and regulations in areas that directly affect the financial statements including financial reporting and taxation legislation. We considered that extent of compliance with those laws and regulations as part of our procedures on the related financial statement items.
Except for any known or possible non-compliance, and as required by auditing standards, our work in respect of these included enquiry of management about company's policies, procedures, and related controls regarding compliance with laws and regulations and if there are any known instances of non-compliance.
We tested the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluated the business rationale of any significant transactions that are unusual or outside the normal course of business.
We performed analytical procedures to identify any unusual or unexpected relationships.
We examined supporting documents for all material balances, transactions and disclosures.
We evaluated the selection and application of accounting policies related to subjective measurements and complex transactions.
Owing to the inherent limitations of an audit, there is an unavoidable risk that some material misstatements of the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISAs (UK).
The potential effects of inherent limitations are particularly significant in the case of misstatement resulting from fraud because fraud may involve sophisticated and carefully organized schemes designed to conceal it, including deliberate failure to record transactions, collusion or intentional misrepresentations being made to us.
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.
Use of our report
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s loss for the year was £577,733 (2023 - £5,387,350 profit).
Purple Surgical Holdings Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is 2 Chestnut House, Farm Close, Shenley, Hertfordshire, WD7 9AD.
The group consists of Purple Surgical Holdings Limited and all of its subsidiaries.
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, [modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.
The 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 for parent company information presented within the consolidated financial statements:
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 financial instruments not measured at fair value; 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 33 ‘Related Party Disclosures’: Compensation for key management personnel.
The consolidated financial statements incorporate those of Purple Surgical Holdings Limited and all of its subsidiaries (ie entities that the group controls through its power to govern the financial and operating policies so as to obtain economic benefits).
All financial statements are made up to 30 June 2023. The transactions of foreign entities being consolidated have been translated into the Group's functional currency using the exchange rates prevailing at the dates of the transactions or valuation where items are re-measured. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the group statement of comprehensive income.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.
At the time of approving the financial statements, the directors have a reasonable expectation that the company and group have adequate resources to continue in operational existence for the foreseeable future and the company is supported by its group undertakings. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
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.
Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.
Freehold land and buildings are not depreciated.
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 recognised in the income statement.
Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.
In the parent company financial statements, investments in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
Other investments are initially recognised at cost and subsequently reviewed for impairment.
At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible 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.
The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.
The group 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 group's statement of financial position when the group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset and 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, 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.
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.
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group 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.
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 group after deducting all of its 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.
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.
Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.
Equity instruments issued by the group 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 group.
The tax expense represents the sum of the tax currently payable and deferred 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 group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
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 income statement, 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 if, and only if, there is 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.
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.
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.
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.
In the application of the group’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.
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
Management reviews the useful lives of depreciable assets at each reporting date, based on expected utility of the assets. Uncertainties in these estimates relate to the period that the company intends to derive future economic benefits from the use of these assets. Depreciation and amortisation charges are disclosed in note 11 and 12.
Stock is valued at the lower of cost and net realisable value. Net realisable value includes, where necessary, provisions for slow moving and obsolete inventories. Calculation of these estimates requires judgements to be made, which include forecasting consumer demand and the economic environment. This is reviewed by the management on a regular basis. The stock provision at the year end is £326,075 (2023: £246,395).
During the prior year the company entered into litigation in connection with the supply of PPE and advance payments made to suppliers where the supplier was unable to fulfil their obligations or return the advanced payments. The directors are in regular contact with the appointed lawyers. Following professional advice, the provision has been estimated by the Directors' based upon expectations of the outcomes of the on-going litigation. Until the litigation is finalised and settled, the provision will remain uncertain.
At 30 June 2024 there are total provisions in respect of the above of £35,055,738 (2023: £36,025,478) included in the balance sheet relating to on-going litigations.
During the year, a release of £875,454 (2023: £783,826) has been recognised in the profit and loss account within Exceptional costs - bad debt and litigation provision.
Exceptional cost - Bad debt and litigation provision
The 2024 credit relates to adjustments in connection with provisions made in respect of advanced payments made to suppliers where no PPE goods or refunds were provided. See note 2.
The directors regard the costs as exceptional as they have arisen as a result of the temporary surge in demand for PPE during the Covid-19 pandemic.
The average monthly number of persons (including directors) employed by the group and company during the year was:
Their aggregate remuneration comprised:
The actual charge for the year can be reconciled to the expected (credit)/charge for the year based on the profit or loss and the standard rate of tax as follows:
Details of the company's subsidiaries at 30 June 2024 are as follows:
The registered office for all subsidiaries is 2 Chestnut House, Farm Close , Shenley, Hertfordshire , WD7 9AD, United Kingdom, except for Purple Surgical South Africa Proprietary Limited whose registered office is Southdown Ridge Office Park, Cnr John Voster & Nellmapius Drive, Regus Business Centre, Ground Floor, Centurion, 0062, South Africa and for Purple Surgical do Brasil Ltda whose registered office is Rua José Pereira Liberato, 1710, Warehouse 07 Box 16, Sao Joao, Itajaí, Santa Catarina, 88304400, Brazil.
On 10 November 2023, the company incorporated a new subsidiary, Purple Surgical do Brasil Ltda, which is registered in Brazil. The subsidiary is engaged in the development, marketing and sale of medical and surgical products.
Purple PPE Limited carries on the business of marketing and sale of personal protective equipments. This company ceased to trade on 30 June 2023.
The stock balance above is shown net of stock provisions of £326,075 (2023: £246,395) relating to other stock.
The long-term loans are secured by fixed and floating charges over the company's assets,
The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:
The deferred tax liability set out above consists of the tax effect of timing differences in respect of accelerated capital allowances.
The deferred tax asset set out above consists of tax losses avaliable to offset against future taxable profits.
A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.
All classes of shares rank pari passu.
Capital redemption reserve
This reserve records the nominal value of shares repurchased by the company.
Profit and loss account
This reserve records retained earnings and accumulated losses.
At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
Subsequent to the year end, an amount of $129,023 has been received in respect of the advance payment
made to suppliers during the Covid-19 pandemic as referred to in notes 2 and 4. The provision in respect of
advanced payments to suppliers has been adjusted to reflect this recovery.
Group
The group was under the control of R Sharpe throughout the current year.
The group rented premises from the R Sharpe Pension Fund. Rent paid during the year amounted to £366,330 (2023: £366,330).
At the balance sheet date, included within creditors, are loan notes due to R Sharpe, a director of the company of £7,815,662 (2023: £9,287,500) and accrued interest thereon of £1,392,455 (2023: £1,286,672).