Company registration number 08606447 (England and Wales)
PERFECTOS PRINTING INKS GROUP LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 1 APRIL 2024
PERFECTOS PRINTING INKS GROUP LTD
COMPANY INFORMATION
Directors
Miss J L Price
Dr J H Price
Mr S J H Price
Mr E J H Price
Company number
08606447
Registered office
3rd Floor
Butt Dyke House
33 Park Row
Nottingham
NG1 6EE
Auditor
HSKSG Audit Limited
3rd Floor
Butt Dyke House
33 Park Row
Nottingham
NG1 6EE
Business address
Perfectos Mills
Normanton Lane
Bottesford
Nottingham
NG13 0EL
PERFECTOS PRINTING INKS GROUP LTD
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Group statement of comprehensive income
8
Group statement of financial position
9
Company statement of financial position
10
Group statement of changes in equity
11
Company statement of changes in equity
12
Group statement of cash flows
13
Company statement of cash flows
14
Notes to the financial statements
15 - 32
PERFECTOS PRINTING INKS GROUP LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 1 APRIL 2024
- 1 -
The directors present the strategic report for the year ended 1 April 2024.
Review of the business
Despite a very competitive global market for printing inks and rising costs, the group has improved sales, but achieved a reduced level of profitability, through careful management and ongoing cost efficiency measures.
Principal risks and uncertainties
Global events continue to impact the group business through both general global supply chain disruption, and volatility of commodity and energy pricing.
Our insurable risks are covered by a robust and comprehensive insurance policy which is reviewed in detail each year.
Any risks within our supply chain are closely monitored, with extensive contingency plans available if required.
Development and performance
We pride ourselves on the delivery of responsive and excellent technical support to our customers, offering support, guidance, and advice.
Our continued presence at domestic and global trade events showcases our exceptional product offering and expertise, and we constantly strive for maintaining our collaborative partnerships with customers and suppliers alike.
We are looking to further improve our UK on-site facilities with the addition of a Customer Zone, which will provide state of the art meeting facilities and enables us to showcase our product offering.
With increased legislative and compliance regulations, there is a need to constantly re- invest in our people and processes to ensure adherence, whilst delivering operational efficiencies.
We plan to continue to invest heavily to ensure regulatory compliance alongside the maintenance of our three ISO accreditations, which we have now held for many years.
At PERFECTOS® we maintain our reputation as an industry-leading manufacturer of water-based inks through continuous improvements to our flagship product lines. Incremental improvements to raw material purity and compliance, strengthening the supply chain through identifying additional suppliers of key raw materials, and improving the ease of use, and safety aspects of our ink offerings allows us to offer our customers the best products with secure and consistent supply. Over the past year, PERFECTOS® has also been working hard as a bluesign® system partner to evaluate our raw materials and production processes, with the intention of being able to offer bluesign® approved products in 2024. This is an achievement that will also allow PERFECTOS® to offer ZDHC level 3 products, the highest level of compliance assigned by the ZDHC organisation, which is considered an industry-standard in the Textile sector.
Key performance indicators
Key performance indicators for the group continue to focus on turnover and gross profit margin, with the latter seeing a reduction this year. We will look to further improve the performance of these metrics through 2024/25 and beyond, to enable us to re-invest in the group for further growth.
Non-financial indicators measuring performance on metrics such as Quality, Health and Safety, and employee retention continue to be of paramount importance.
All KPIs are monitored and reviewed regularly by the Board, with appropriate action taken when necessary.
PERFECTOS PRINTING INKS GROUP LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 1 APRIL 2024
- 2 -
Mr S J H Price
Director
27 March 2025
PERFECTOS PRINTING INKS GROUP LTD
DIRECTORS' REPORT
FOR THE YEAR ENDED 1 APRIL 2024
- 3 -
The directors present their annual report and financial statements for the year ended 1 April 2024.
Principal activities
The principal activity of the company and group continued to be that of the manufacturing and distribution of high quality inks and ancillary work.
Results and dividends
The results for the year are set out on page 8.
Ordinary dividends were paid amounting to £1,200,000. The directors do not recommend payment of a further dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Miss J L Price
Dr J H Price
Mr S J H Price
Mr E J H Price
Future developments
We are currently in the planning stages for our new UK on-site Customer Zone. This has been meticulously planned to provide a modern and progressive meeting space, combined with a showroom facility which allows us to showcase our wide and varied product range.
We are looking forward to sharing this space with our employees and customers.
We continue to hold accreditation from various industry specific organisations and strive to retain these as a market leading manufacturer.
Our focus will be to continue to manufacture premium inks complying with regulatory legislation, alongside the ever-increasing environmental governance which we embed in our practices. It is a key principle of ours to ensure we are contributing to both environmental and corporate social responsibilities.
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 auditor of the company 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 auditor of the company is aware of that information.
On behalf of the board
Mr S J H Price
Director
27 March 2025
PERFECTOS PRINTING INKS GROUP LTD
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 1 APRIL 2024
- 4 -
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 group and company, and of the profit or loss of the group 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 ;
prepare the on the going concern basis unless it is inappropriate to presume that the group and company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
PERFECTOS PRINTING INKS GROUP LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF PERFECTOS PRINTING INKS GROUP LTD
- 5 -
Opinion
We have audited the financial statements of Perfectos Printing Inks Group Ltd (the 'parent company') and its subsidiaries (the 'group') for the year ended 1 April 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, the company 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 group's and the parent company's affairs as at 1 April 2024 and of the group's profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
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.
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.
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.
PERFECTOS PRINTING INKS GROUP LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF PERFECTOS PRINTING INKS GROUP LTD
- 6 -
Matters on which we are required to report by exception
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.
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 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.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
We considered the nature of the parent company and group's business and the control environment. We also enquired of management and component auditors about their identification and assessment of the risks of irregularities.
We obtained an understanding of the legal and regulatory framework in which the parent company and group operates and identified key laws and regulations that:
- Had a direct effect on the determination of material amounts and disclosures in the financial statements, which included the Companies Act 2006, tax legislation and payroll legislation; and
- Did not have a direct effect on the financial statements but compliance with which may be fundamental to the parent company and the group's ability to operate.
We discussed among the audit engagement team the opportunities and incentives that may exist within the organisation for fraud and how / where fraud might occur in the financial statements.
PERFECTOS PRINTING INKS GROUP LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF PERFECTOS PRINTING INKS GROUP LTD
- 7 -
In common with all audits under ISA's (UK), we are also required to perform specific procedures to respond to the risk of management override. In addressing the risk of fraud through management override of controls, we tested the appropriateness of accounting adjustments and journal entries, assessed whether accounting estimates were reasonable and accurate and reviewed the accounting records for any significant and unusual transactions.
In addition, our procedures to respond to the risks identified included:
- Reviewing financial statement disclosures by testing to supporting documentation to assess compliance with provision of relevant laws and regulations described as having a direct effect on the financial statements;
- Performing analytical procedures to identify any unusual or unexpected variances that may indicate risks of material misstatement due to fraud; and
- Enquiring of management and component auditors about any instances of non-compliance with laws and regulations and any instances of known or suspected fraud.
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 is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
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.
Philip Handley FCA (Senior Statutory Auditor)
For and on behalf of HSKSG Audit Limited, Statutory Auditor
Chartered Accountants
3rd Floor
Butt Dyke House
33 Park Row
Nottingham
NG1 6EE
1 April 2025
PERFECTOS PRINTING INKS GROUP LTD
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 1 APRIL 2024
- 8 -
2024
2023
Notes
£
£
Turnover
3
16,412,329
15,499,680
Cost of sales
(6,582,108)
(5,009,182)
Gross profit
9,830,221
10,490,498
Administrative expenses
(8,186,200)
(8,023,890)
Other operating income
6,700
95,116
Operating profit
4
1,650,721
2,561,724
Interest receivable and similar income
8
185,062
92,035
Interest payable and similar expenses
9
(29,796)
(171,732)
Profit before taxation
1,805,987
2,482,027
Tax on profit
10
(620,187)
(407,824)
Profit for the financial year
24
1,185,800
2,074,203
Other comprehensive income
Currency translation loss taken to retained earnings
(54,026)
(79,758)
Total comprehensive income for the year
1,131,774
1,994,445
Profit for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.
PERFECTOS PRINTING INKS GROUP LTD
GROUP STATEMENT OF FINANCIAL POSITION
AS AT
1 APRIL 2024
01 April 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Goodwill
13
1,650,223
Other intangible assets
13
136,186
163,033
Total intangible assets
136,186
1,813,256
Tangible assets
14
5,831,462
6,022,801
5,967,648
7,836,057
Current assets
Stocks
17
7,237,253
8,344,055
Debtors
18
11,882,548
9,554,539
Cash at bank and in hand
8,704,177
8,567,177
27,823,978
26,465,771
Creditors: amounts falling due within one year
19
(2,914,297)
(3,379,503)
Net current assets
24,909,681
23,086,268
Total assets less current liabilities
30,877,329
30,922,325
Provisions for liabilities
Deferred tax liability
20
486,449
463,219
(486,449)
(463,219)
Net assets
30,390,880
30,459,106
Capital and reserves
Called up share capital
22
4,000
4,000
Other reserves
19,998,000
19,998,000
Profit and loss reserves
24
10,388,880
10,457,106
Total equity
30,390,880
30,459,106
These financial statements have been prepared in accordance with the provisions relating to medium-sized groups.
The financial statements were approved by the board of directors and authorised for issue on 27 March 2025 and are signed on its behalf by:
27 March 2025
Mr S J H Price
Director
Company registration number 08606447 (England and Wales)
PERFECTOS PRINTING INKS GROUP LTD
COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 1 APRIL 2024
01 April 2024
- 10 -
2024
2023
Notes
£
£
£
£
Fixed assets
Intangible assets
13
114,773
135,606
Investments
15
30,000,000
30,000,000
30,114,773
30,135,606
Current assets
Debtors
18
3,123,609
2,792,511
Cash at bank and in hand
2,634,990
1,251,504
5,758,599
4,044,015
Creditors: amounts falling due within one year
19
(4,336,975)
(1,736,280)
Net current assets
1,421,624
2,307,735
Net assets
31,536,397
32,443,341
Capital and reserves
Called up share capital
22
4,000
4,000
Other reserves
19,998,000
19,998,000
Profit and loss reserves
24
11,534,397
12,441,341
Total equity
31,536,397
32,443,341
As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £293,056 (2023 - £433,877 profit).
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.
The financial statements were approved by the board of directors and authorised for issue on 27 March 2025 and are signed on its behalf by:
27 March 2025
Mr S J H Price
Director
Company registration number 08606447 (England and Wales)
PERFECTOS PRINTING INKS GROUP LTD
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 1 APRIL 2024
- 11 -
Share capital
Other reserves
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 2 April 2022
4,000
19,998,000
9,662,661
29,664,661
Year ended 1 April 2023:
Profit for the year
-
-
2,074,203
2,074,203
Other comprehensive income:
Currency translation differences
-
-
(79,758)
(79,758)
Total comprehensive income
-
-
1,994,445
1,994,445
Dividends
11
-
-
(1,200,000)
(1,200,000)
Balance at 1 April 2023
4,000
19,998,000
10,457,106
30,459,106
Year ended 1 April 2024:
Profit for the year
-
-
1,185,800
1,185,800
Other comprehensive income:
Currency translation differences
-
-
(54,026)
(54,026)
Total comprehensive income
-
-
1,131,774
1,131,774
Dividends
11
-
-
(1,200,000)
(1,200,000)
Balance at 1 April 2024
4,000
19,998,000
10,388,880
30,390,880
PERFECTOS PRINTING INKS GROUP LTD
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 1 APRIL 2024
- 12 -
Share capital
Other reserves
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 2 April 2022
4,000
19,998,000
13,207,464
33,209,464
Year ended 1 April 2023:
Profit and total comprehensive income for the year
-
-
433,877
433,877
Dividends
11
-
-
(1,200,000)
(1,200,000)
Balance at 1 April 2023
4,000
19,998,000
12,441,341
32,443,341
Year ended 1 April 2024:
Profit and total comprehensive income
-
-
293,056
293,056
Dividends
11
-
-
(1,200,000)
(1,200,000)
Balance at 1 April 2024
4,000
19,998,000
11,534,397
31,536,397
PERFECTOS PRINTING INKS GROUP LTD
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 1 APRIL 2024
- 13 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
29
3,970,530
(331,581)
Interest paid
(29,796)
(171,732)
Income taxes paid
(1,210,038)
(127,758)
Net cash inflow/(outflow) from operating activities
2,730,696
(631,071)
Investing activities
Purchase of intangible assets
-
(408)
Purchase of tangible fixed assets
(358,497)
(807,380)
Proceeds from disposal of tangible fixed assets
20,000
39,334
Repayment of loans
(1,240,261)
1,020,994
Interest received
185,062
92,035
Net cash (used in)/generated from investing activities
(1,393,696)
344,575
Financing activities
Dividends paid to equity shareholders
(1,200,000)
(1,200,000)
Net cash used in financing activities
(1,200,000)
(1,200,000)
Net increase/(decrease) in cash and cash equivalents
137,000
(1,486,496)
Cash and cash equivalents at beginning of year
8,567,177
10,053,673
Cash and cash equivalents at end of year
8,704,177
8,567,177
PERFECTOS PRINTING INKS GROUP LTD
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 1 APRIL 2024
- 14 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
30
2,676,423
(1,155,943)
Income taxes paid
(101,882)
(116,669)
Net cash inflow/(outflow) from operating activities
2,574,541
(1,272,612)
Investing activities
Interest received
8,945
Net cash generated from investing activities
8,945
-
Financing activities
Dividends paid to equity shareholders
(1,200,000)
(1,200,000)
Net cash used in financing activities
(1,200,000)
(1,200,000)
Net increase/(decrease) in cash and cash equivalents
1,383,486
(2,472,612)
Cash and cash equivalents at beginning of year
1,251,504
3,724,116
Cash and cash equivalents at end of year
2,634,990
1,251,504
PERFECTOS PRINTING INKS GROUP LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 1 APRIL 2024
- 15 -
1
Accounting policies
Company information
Perfectos Printing Inks Group Ltd (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is 3rd Floor, Butt Dyke House, 33 Park Row, Nottingham, NG1 6EE.
The group consists of Perfectos Printing Inks Group Ltd and all of its subsidiaries.
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.
1.2
Business combinations
In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.
Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.
1.3
Basis of consolidation
The consolidated group financial statements consist of the financial statements of the parent company Perfectos Printing Inks Group Ltd together with all entities controlled by the parent company (its subsidiaries).
All financial statements are made up to 1 April 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.
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.
1.4
Going concern
At the time of approving the financial statements, the directors have a reasonable expectation that the group 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.
PERFECTOS PRINTING INKS GROUP LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 1 APRIL 2024
1
Accounting policies
(Continued)
- 16 -
The Covid-19 pandemic has continued to be a significant risk to the global economy. The directors continue to monitor the impact on the group on an ongoing basis.
At the time of approving these financial statements, the directors do not consider Covid-19 to impact the group's ability to continue as a going concern and considers the balance sheet to be appropriately valued.
1.5
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.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
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.
1.6
Research and development expenditure
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.
1.7
Intangible fixed assets - goodwill
Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.
For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.
1.8
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.
Amortisation 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:
Patents & licences
10% straight line
PERFECTOS PRINTING INKS GROUP LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 1 APRIL 2024
1
Accounting policies
(Continued)
- 17 -
1.9
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:
Freehold land and buildings
2% straight line
Leasehold improvements
2% and 20% straight line
Plant and equipment
20% and 15% reducing balance and 20% straight line
Motor vehicles
30% 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 recognised in the income statement.
1.10
Fixed asset investments
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.
1.11
Impairment of fixed assets
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.
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.
PERFECTOS PRINTING INKS GROUP LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 1 APRIL 2024
1
Accounting policies
(Continued)
- 18 -
1.12
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.
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.
1.13
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.
1.14
Financial instruments
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
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.
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.
PERFECTOS PRINTING INKS GROUP LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 1 APRIL 2024
1
Accounting policies
(Continued)
- 19 -
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 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.
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 group 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.
PERFECTOS PRINTING INKS GROUP LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 1 APRIL 2024
1
Accounting policies
(Continued)
- 20 -
Derecognition of financial liabilities
Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.
1.15
Equity instruments
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.
1.16
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 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
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.
1.17
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.
1.18
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.19
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 leased asset are consumed.
PERFECTOS PRINTING INKS GROUP LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 1 APRIL 2024
1
Accounting policies
(Continued)
- 21 -
1.20
Government grants
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.
1.21
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 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.
3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Sale of goods
16,412,329
15,499,680
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
763,341
636,964
Europe
2,437,587
2,402,960
Rest of the world
13,211,401
12,459,756
16,412,329
15,499,680
2024
2023
£
£
Other revenue
Interest income
185,062
92,035
Grants received
-
81,306
PERFECTOS PRINTING INKS GROUP LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 1 APRIL 2024
- 22 -
4
Operating profit
2024
2023
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange gains
(131,805)
(656,577)
Government grants
-
(81,306)
Depreciation of owned tangible fixed assets
513,232
503,568
Loss/(profit) on disposal of tangible fixed assets
14,774
(31,589)
Amortisation of intangible assets
1,676,908
1,676,992
Stocks impairment losses recognised or reversed
115,000
434,341
Operating lease charges
377,750
390,457
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 group and company
8,815
5,500
Audit of the financial statements of the company's subsidiaries
20,885
24,323
29,700
29,823
6
Employees
The average monthly number of persons (including directors) employed by the group and company during the year was:
Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
Production staff
52
55
-
-
Laboratory staff
12
9
-
-
Administrative staff
23
23
-
-
Directors
3
3
-
-
Total
90
90
PERFECTOS PRINTING INKS GROUP LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 1 APRIL 2024
6
Employees
(Continued)
- 23 -
Their aggregate remuneration comprised:
Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
3,142,571
4,761,222
Social security costs
244,236
279,276
-
-
Pension costs
78,305
77,902
3,465,112
5,118,400
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
338,539
1,996,421
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
254,501
1,651,526
The number of directors for whom retirement benefits are accruing under defined benefit schemes amounted to 3 (2023 - 3).
8
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
56,041
11,490
Other interest income
129,021
80,545
Total income
185,062
92,035
2024
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
56,041
11,490
PERFECTOS PRINTING INKS GROUP LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 1 APRIL 2024
- 24 -
9
Interest payable and similar expenses
2024
2023
£
£
Other finance costs:
Other interest
29,796
171,732
10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
380,047
125,538
Adjustments in respect of prior periods
(18,403)
29,801
Total UK current tax
361,644
155,339
Foreign current tax on profits for the current period
235,313
169,638
Total current tax
596,957
324,977
Deferred tax
Origination and reversal of timing differences
23,230
82,847
Total tax charge
620,187
407,824
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
1,805,987
2,482,027
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.02%)
451,497
471,993
Tax effect of expenses that are not deductible in determining taxable profit
40,022
40,863
Tax effect of income not taxable in determining taxable profit
(9,185)
(46,316)
Double tax relief
(16,807)
Permanent capital allowances in excess of depreciation
342,003
279,527
Depreciation on assets not qualifying for tax allowances
19,237
15,310
Research and development tax credit
(113,371)
(160,120)
Effect of overseas tax rates
(97,730)
(160,147)
Under/(over) provided in prior years
(18,403)
29,801
Short term timing differences
23,230
(63,087)
Tax reduction
(306)
Taxation charge
620,187
407,824
PERFECTOS PRINTING INKS GROUP LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 1 APRIL 2024
- 25 -
11
Dividends
2024
2023
Recognised as distributions to equity holders:
£
£
Interim paid
1,200,000
1,200,000
12
Impairments
Impairment tests have been carried out where appropriate and the following impairment losses have been recognised in profit or loss:
2024
2023
Notes
£
£
In respect of:
Stocks
17
115,000
434,341
Recognised in:
Cost of sales
115,000
434,341
13
Intangible fixed assets
Group
Goodwill
Patents & licences
Total
£
£
£
Cost
At 2 April 2023
16,502,225
267,074
16,769,299
Exchange adjustments
(301)
(301)
At 1 April 2024
16,502,225
266,773
16,768,998
Amortisation and impairment
At 2 April 2023
14,852,002
104,041
14,956,043
Amortisation charged for the year
1,650,223
26,685
1,676,908
Exchange adjustments
(139)
(139)
At 1 April 2024
16,502,225
130,587
16,632,812
Carrying amount
At 1 April 2024
136,186
136,186
At 1 April 2023
1,650,223
163,033
1,813,256
PERFECTOS PRINTING INKS GROUP LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 1 APRIL 2024
13
Intangible fixed assets
(Continued)
- 26 -
Company
Patents & licences
Intellectual property
Total
£
£
£
Cost
At 2 April 2023 and 1 April 2024
208,334
6,000,000
6,208,334
Amortisation and impairment
At 2 April 2023
72,728
6,000,000
6,072,728
Amortisation charged for the year
20,833
20,833
At 1 April 2024
93,561
6,000,000
6,093,561
Carrying amount
At 1 April 2024
114,773
114,773
At 1 April 2023
135,606
135,606
On 2 April 2014, the group acquired a 100% interest in Perfectos Printing Inks Co Ltd. and its wholly owned subsidiary, Perfectos HK Limited. The consideration for this transaction was £30,000,000. The fair values of assets and liabilities recognised on acquisition approximate to the pre-acquisition carrying values based on the respective accounts as at the date of acquisition. The group recognised £16,502,225 of goodwill in respect of this acquisition.
On 11 June 2015, the shares in Perfectos HK Limited were transferred from Perfectos Printing Inks Co Ltd. to Perfectos Printing Inks Group Ltd. Whilst a change in ownership occurred, there has been no change to the composition of the overall group and therefore no adjustment has been made to the goodwill arising on consolidation.
PERFECTOS PRINTING INKS GROUP LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 1 APRIL 2024
- 27 -
14
Tangible fixed assets
Group
Freehold land and buildings
Leasehold improvements
Plant and equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 2 April 2023
1,979,244
2,763,221
5,209,238
591,291
10,542,994
Additions
62,149
199,848
96,500
358,497
Disposals
(48,130)
(48,130)
Exchange adjustments
(1,933)
(8,261)
(10,194)
At 1 April 2024
1,979,244
2,823,437
5,400,825
639,661
10,843,167
Depreciation and impairment
At 2 April 2023
71,345
663,394
3,473,704
311,750
4,520,193
Depreciation charged in the year
37,732
65,860
330,080
79,560
513,232
Eliminated in respect of disposals
(13,356)
(13,356)
Exchange adjustments
(1,501)
(6,863)
(8,364)
At 1 April 2024
109,077
727,753
3,796,921
377,954
5,011,705
Carrying amount
At 1 April 2024
1,870,167
2,095,684
1,603,904
261,707
5,831,462
At 1 April 2023
1,907,899
2,099,827
1,735,534
279,541
6,022,801
The company had no tangible fixed assets at 1 April 2024 or 1 April 2023.
Cherished vehicle registration numbers are included within motor vehicles at a cost of £66,381 (2023: £66,381), and are non-depreciable assets.
15
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
16
30,000,000
30,000,000
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 2 April 2023 and 1 April 2024
30,000,000
Carrying amount
At 1 April 2024
30,000,000
At 1 April 2023
30,000,000
PERFECTOS PRINTING INKS GROUP LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 1 APRIL 2024
- 28 -
16
Subsidiaries
Details of the company's subsidiaries at 1 April 2024 are as follows:
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Perfectos Printing Inks Co Ltd
England
Ordinary shares
100.00
Perfectos HK Limited
Hong Kong
Ordinary shares
100.00
17
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Raw materials and consumables
5,725,450
7,007,450
-
-
Finished goods and goods for resale
1,511,803
1,336,605
7,237,253
8,344,055
-
-
18
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
2,683,610
2,105,319
Amounts owed by group undertakings
-
-
2,626,808
2,419,529
Other debtors
8,478,447
6,884,902
Prepayments and accrued income
720,491
564,318
496,801
372,982
11,882,548
9,554,539
3,123,609
2,792,511
19
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
£
£
£
£
Trade creditors
289,848
464,619
10,698
5,904
Amounts owed to group undertakings
4,212,497
1,608,089
Corporation tax payable
195,821
808,902
97,685
101,883
Other taxation and social security
64,316
104,000
-
-
Other creditors
1,311,844
1,409,468
923
924
Accruals and deferred income
1,052,468
592,514
15,172
19,480
2,914,297
3,379,503
4,336,975
1,736,280
PERFECTOS PRINTING INKS GROUP LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 1 APRIL 2024
- 29 -
20
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:
Liabilities
Liabilities
2024
2023
Group
£
£
Accelerated capital allowances
486,449
463,219
The company has no deferred tax assets or liabilities.
Group
Company
2024
2024
Movements in the year:
£
£
Liability at 2 April 2023
463,219
-
Charge to profit or loss
23,230
-
Liability at 1 April 2024
486,449
-
21
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
78,305
77,902
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.
At the year end, a liability of £9,946 was outstanding (2023: £9,725).
22
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
4,000
4,000
4,000
4,000
23
Other reserves
2024
2023
Group and company
£
£
At the beginning and end of the year
19,998,000
19,998,000
PERFECTOS PRINTING INKS GROUP LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 1 APRIL 2024
- 30 -
24
Profit and loss reserves
Group
Company
2024
2023
2024
2023
£
£
£
£
At the beginning of the year
10,457,106
9,662,661
12,441,341
13,207,464
Profit for the year
1,185,800
2,074,203
293,056
433,877
Dividends
(1,200,000)
(1,200,000)
(1,200,000)
(1,200,000)
Currency translation differences
(54,026)
(79,758)
At the end of the year
10,388,880
10,457,106
11,534,397
12,441,341
25
Operating lease commitments
Lessee
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:
Group
Company
2024
2023
2024
2023
£
£
£
£
Within one year
268,251
337,396
-
-
Between two and five years
96,114
116,528
-
-
364,365
453,924
-
-
26
Related party transactions
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.
Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements.
Repayments of £43,932 (2023: £40,271) were made during the year on the Perfectos Printing Inks Co Limited Directors' Retirement Plan. Interest is charged on the loan at a rate of 6.5%. The balance outstanding at the end of the year was £25,668 (2023: £66,583).
During the year the group paid £135,750 (2023: £113,004) to the Directors' Retirement Plan for the rental of factory and office space.
PERFECTOS PRINTING INKS GROUP LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 1 APRIL 2024
- 31 -
27
Directors' transactions
The movements on the directors' loan accounts during the year were due to monies being introduced and withdrawn by the directors and personal expenses being paid by the group.
For the loans included in the accounts of Perfectos Printing Inks Co Ltd., interest has been charged to the company at a rate of 2.25% on loan accounts in credit. The company has charged interest at the same rate on debit balances.
The overdrawn amounts included in the accounts of Perfectos HK Limited are interest free and repayable on demand.
During the year the director, Dr J H Price, charged Perfectos Printing Inks Co Ltd. car park rental of £6,505 (2023: £12,500). At the balance sheet date there were no amounts outstanding (2023: £nil).
Description
% Rate
Opening balance
Amounts advanced
Amounts repaid
Closing balance
£
£
£
£
Directors loan - UK company
2.25
4,156,147
846,517
(32,426)
4,970,238
Directors loan - overseas loan
-
883,374
426,169
-
1,309,543
5,039,521
1,272,686
(32,426)
6,279,781
28
Controlling party
The ultimate controlling party is Dr J H Price by virtue of his 50% shareholding in Perfectos Printing Inks Group Ltd.
29
Cash generated from/(absorbed by) group operations
2024
2023
£
£
Profit for the year after tax
1,185,800
2,074,203
Adjustments for:
Taxation charged
620,187
407,824
Finance costs
29,796
171,732
Investment income
(185,062)
(92,035)
Loss/(gain) on disposal of tangible fixed assets
14,774
(31,589)
Amortisation and impairment of intangible assets
1,676,908
1,676,992
Depreciation and impairment of tangible fixed assets
515,224
489,162
Foreign exchange movements
(54,026)
(79,758)
Movements in working capital:
Decrease/(increase) in stocks
1,106,802
(2,192,629)
(Increase)/decrease in debtors
(1,087,748)
206,459
Increase/(decrease) in creditors
147,875
(2,961,942)
Cash generated from/(absorbed by) operations
3,970,530
(331,581)
PERFECTOS PRINTING INKS GROUP LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 1 APRIL 2024
- 32 -
30
Cash generated from/(absorbed by) operations - company
2024
2023
£
£
Profit after taxation
293,056
433,877
Adjustments for:
Taxation charged
97,684
101,882
Investment income
(8,945)
Amortisation and impairment of intangible assets
20,833
20,833
Movements in working capital:
Increase in debtors
(331,098)
(1,544,206)
Increase/(decrease) in creditors
2,604,893
(168,329)
Cash generated from/(absorbed by) operations
2,676,423
(1,155,943)
31
Analysis of changes in net funds - group
2 April 2023
Cash flows
1 April 2024
£
£
£
Cash at bank and in hand
8,567,177
137,000
8,704,177
32
Analysis of changes in net funds - company
2 April 2023
Cash flows
1 April 2024
£
£
£
Cash at bank and in hand
1,251,504
1,383,486
2,634,990
2024-04-012023-04-02falsefalseCCH SoftwareCCH Accounts Production 2024.310Miss J L PriceDr J H PriceMr S J H PriceMr E J H Pricefalse08606447bus:Consolidated2023-04-022024-04-01086064472023-04-022024-04-0108606447bus:Director12023-04-022024-04-0108606447bus:Director22023-04-022024-04-0108606447bus:Director32023-04-022024-04-0108606447bus:Director42023-04-022024-04-0108606447bus:RegisteredOffice2023-04-022024-04-0108606447bus:Consolidated2024-04-0108606447bus:Consolidated2022-04-022023-04-01086064472022-04-022023-04-0108606447core:RetainedEarningsAccumulatedLossesbus:Consolidated2023-04-022024-04-0108606447core:RetainedEarningsAccumulatedLossesbus:Consolidated2022-04-022023-04-0108606447core:RetainedEarningsAccumulatedLosses2023-04-022024-04-0108606447core:RetainedEarningsAccumulatedLosses2022-04-022023-04-01086064472024-04-0108606447core:Goodwillbus:Consolidated2024-04-0108606447core:Goodwillbus:Consolidated2023-04-0108606447core:OtherResidualIntangibleAssetsbus:Consolidated2024-04-0108606447core:OtherResidualIntangibleAssetsbus:Consolidated2023-04-0108606447core:OtherResidualIntangibleAssets2024-04-0108606447core:OtherResidualIntangibleAssets2023-04-0108606447core:PatentsTrademarksLicencesConcessionsSimilarbus:Consolidated2024-04-0108606447core:PatentsTrademarksLicencesConcessionsSimilarbus:Consolidated2023-04-0108606447bus:Consolidated2023-04-0108606447core:PatentsTrademarksLicencesConcessionsSimilar2024-04-0108606447core:Non-standardIntangibleAssetClass1ComponentIntangibleAssetsOtherThanGoodwill2024-04-0108606447core:PatentsTrademarksLicencesConcessionsSimilar2023-04-0108606447core:Non-standardIntangibleAssetClass1ComponentIntangibleAssetsOtherThanGoodwill2023-04-01086064472023-04-0108606447core:LandBuildingscore:OwnedOrFreeholdAssetsbus:Consolidated2024-04-0108606447core:LeaseholdImprovementsbus:Consolidated2024-04-0108606447core:PlantMachinerybus:Consolidated2024-04-0108606447core:MotorVehiclesbus:Consolidated2024-04-0108606447core:LandBuildingscore:OwnedOrFreeholdAssetsbus:Consolidated2023-04-0108606447core:LeaseholdImprovementsbus:Consolidated2023-04-0108606447core:PlantMachinerybus:Consolidated2023-04-0108606447core:MotorVehiclesbus:Consolidated2023-04-0108606447core:ShareCapitalbus:Consolidated2024-04-0108606447core:ShareCapitalbus:Consolidated2023-04-0108606447core:OtherMiscellaneousReservebus:Consolidated2024-04-0108606447core:OtherMiscellaneousReservebus:Consolidated2023-04-0108606447core:ShareCapital2024-04-0108606447core:ShareCapital2023-04-0108606447core:OtherMiscellaneousReserve2024-04-0108606447core:OtherMiscellaneousReserve2023-04-0108606447core:RetainedEarningsAccumulatedLosses2024-04-0108606447core:ShareCapitalbus:Consolidated2022-04-01086064472022-04-0108606447core:RetainedEarningsAccumulatedLossesbus:Consolidated2023-04-0108606447core:RetainedEarningsAccumulatedLossesbus:Consolidated2024-04-0108606447core:ShareCapital2022-04-0108606447core:RetainedEarningsAccumulatedLosses2022-04-0108606447core:RetainedEarningsAccumulatedLosses2023-04-0108606447bus:Consolidated2022-04-0108606447core:Goodwill2023-04-022024-04-0108606447core:IntangibleAssetsOtherThanGoodwill2023-04-022024-04-0108606447core:PatentsTrademarksLicencesConcessionsSimilar2023-04-022024-04-0108606447core:LandBuildingscore:OwnedOrFreeholdAssets2023-04-022024-04-0108606447core:LeaseholdImprovements2023-04-022024-04-0108606447core:PlantMachinery2023-04-022024-04-0108606447core:MotorVehicles2023-04-022024-04-0108606447core:UKTaxbus:Consolidated2023-04-022024-04-0108606447core:UKTaxbus:Consolidated2022-04-022023-04-0108606447core:ForeignTaxbus:Consolidated2023-04-022024-04-0108606447core:ForeignTaxbus:Consolidated2022-04-022023-04-0108606447bus:Consolidated12023-04-022024-04-0108606447bus:Consolidated12022-04-022023-04-0108606447bus:Consolidated22023-04-022024-04-0108606447bus:Consolidated22022-04-022023-04-0108606447bus:Consolidated32023-04-022024-04-0108606447bus:Consolidated32022-04-022023-04-0108606447core:Goodwillbus:Consolidated2023-04-0108606447core:PatentsTrademarksLicencesConcessionsSimilarbus:Consolidated2023-04-0108606447bus:Consolidated2023-04-0108606447core:PatentsTrademarksLicencesConcessionsSimilar2023-04-0108606447core:Non-standardIntangibleAssetClass1ComponentIntangibleAssetsOtherThanGoodwill2023-04-01086064472023-04-0108606447core:Goodwillbus:Consolidated2023-04-022024-04-0108606447core:PatentsTrademarksLicencesConcessionsSimilarbus:Consolidated2023-04-022024-04-0108606447core:Non-standardIntangibleAssetClass1ComponentIntangibleAssetsOtherThanGoodwill2023-04-022024-04-0108606447core:LandBuildingscore:OwnedOrFreeholdAssetsbus:Consolidated2023-04-0108606447core:LeaseholdImprovementsbus:Consolidated2023-04-0108606447core:PlantMachinerybus:Consolidated2023-04-0108606447core:MotorVehiclesbus:Consolidated2023-04-0108606447core:LandBuildingscore:OwnedOrFreeholdAssetsbus:Consolidated2023-04-022024-04-0108606447core:LeaseholdImprovementsbus:Consolidated2023-04-022024-04-0108606447core:PlantMachinerybus:Consolidated2023-04-022024-04-0108606447core:MotorVehiclesbus:Consolidated2023-04-022024-04-0108606447core:Subsidiary12023-04-022024-04-0108606447core:Subsidiary22023-04-022024-04-0108606447core:Subsidiary112023-04-022024-04-0108606447core:Subsidiary212023-04-022024-04-010860644712023-04-022024-04-0108606447core:CurrentFinancialInstruments2024-04-0108606447core:CurrentFinancialInstruments2023-04-0108606447core:CurrentFinancialInstrumentsbus:Consolidated2024-04-0108606447core:CurrentFinancialInstrumentsbus:Consolidated2023-04-0108606447core:CurrentFinancialInstrumentscore:WithinOneYearbus:Consolidated2024-04-0108606447core:CurrentFinancialInstrumentscore:WithinOneYearbus:Consolidated2023-04-0108606447core:CurrentFinancialInstrumentscore:WithinOneYear2024-04-0108606447core:CurrentFinancialInstrumentscore:WithinOneYear2023-04-0108606447bus:PrivateLimitedCompanyLtd2023-04-022024-04-0108606447bus:FRS1022023-04-022024-04-0108606447bus:Audited2023-04-022024-04-0108606447bus:ConsolidatedGroupCompanyAccounts2023-04-022024-04-0108606447bus:FullAccounts2023-04-022024-04-01xbrli:purexbrli:sharesiso4217:GBP