Company registration number 03879269 (England and Wales)
PCO GROUP UK LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
PCO GROUP UK LTD
COMPANY INFORMATION
Directors
B Wettlaufer
S A Lemke
J A Kelly
Company number
03879269
Registered office
Unit 2A/B
Spitfire Road
Cheshire Green Employment Park
Nantwich
Cheshire
United Kingdom
CW5 6HT
Auditor
Mitchell Charlesworth (Audit) Limited
24 Nicholas Street
Chester
CH1 2AU
PCO GROUP UK LTD
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Statement of cash flows
11
Notes to the financial statements
12 - 24
PCO GROUP UK LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 1 -

The directors present the strategic report for the year ended 31 December 2024.

Principal activities

PCO Group UK Ltd is a leading company in the snack food sector and a reliable partner for cinemas, retail and gastronomy.

The company is BRC certified and has regular audits carried out and food tested to meet the highest quality criteria.

Review of the business

In the year to December 2024, PCO Group UK Ltd sales have grown in the year by 31% (2024 £18.0m; 2023 £13.7m) due to increased demand from cinemas from both new and existing customers. This is expected to continue in 2025 and with increased UK popcorn production, margins are expected to improve significantly.

 

The overall profit before tax for the year was £2,466,037 (2023 – profit £303,527). The directors have forecast that further growth and increased profitability will continue in 2025.

Principal risks and uncertainties

The directors regularly consider the company’s challenges and opportunities as well as its ongoing operational and financial performance.

 

The directors have considered and mitigated the risk profile of the company during the financial period:

 

 

 

 

On behalf of the board

S A Lemke
Director
15 April 2025
PCO GROUP UK LTD
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 2 -

The directors present their annual report and financial statements for the year ended 31 December 2024.

Results and dividends

The results for the year are set out on page 8.

No ordinary dividends were paid. The directors do not recommend payment of a final dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

B Wettlaufer
S A Lemke
J A Kelly
Auditor

The auditor, Mitchell Charlesworth (Audit) Limited, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Statement of directors' responsibilities

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

PCO GROUP UK LTD
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 3 -
On behalf of the board
S A Lemke
Director
15 April 2025
PCO GROUP UK LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF PCO GROUP UK LTD
- 4 -
Opinion

We have audited the financial statements of PCO Group UK Ltd (the 'company') for the year ended 31 December 2024 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

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 company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

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:

PCO GROUP UK LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF PCO GROUP UK LTD (CONTINUED)
- 5 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.

 

Identifying and assessing potential risks related to irregularities

 

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following:

 

PCO GROUP UK LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF PCO GROUP UK LTD (CONTINUED)
- 6 -

As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas:

 

(i) The presentation of the company's Statement of Comprehensive Income and (ii) the company's accounting policy for revenue recognition. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.

 

We also obtained an understanding of the legal and regulatory framework that the company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the UK Companies Act, and GDPR legislation.

 

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the company's ability to operate or to avoid a material penalty. This includes regulations concerning Data Protection.

As a result of performing the above, we identified revenue recognition and stock valuation as the key audit matters related to the potential risk of fraud.

 

Our procedures to respond to risks identified included the following:

 

 

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

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.

PCO GROUP UK LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF PCO GROUP UK LTD (CONTINUED)
- 7 -

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.

Robert Hall
Senior Statutory Auditor
For and on behalf of Mitchell Charlesworth (Audit) Limited
16 April 2025
Accountants
Statutory Auditor
24 Nicholas Street
Chester
CH1 2AU
PCO GROUP UK LTD
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
- 8 -
2024
2023
Notes
£
£
Turnover
2
17,979,324
13,683,235
Cost of sales
(14,236,749)
(12,307,505)
Gross profit
3,742,575
1,375,730
Administrative expenses
(1,203,447)
(1,001,654)
Operating profit
3
2,539,128
374,076
Interest payable and similar expenses
6
(73,091)
(70,549)
Profit before taxation
2,466,037
303,527
Tax on profit
7
(540,788)
108,989
Profit for the financial year
1,925,249
412,516

The profit and loss account has been prepared on the basis that all operations are continuing operations.

PCO GROUP UK LTD
BALANCE SHEET
AS AT
31 DECEMBER 2024
31 December 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
8
2,391,214
1,702,645
Current assets
Stocks
9
1,796,100
1,676,887
Debtors
10
2,583,499
1,712,175
Cash at bank and in hand
985,108
65,189
5,364,707
3,454,251
Creditors: amounts falling due within one year
11
(4,093,744)
(3,922,345)
Net current assets/(liabilities)
1,270,963
(468,094)
Total assets less current liabilities
3,662,177
1,234,551
Creditors: amounts falling due after more than one year
12
(1,316,773)
(1,339,013)
Provisions for liabilities
Deferred tax liability
15
524,617
-
0
(524,617)
-
Net assets/(liabilities)
1,820,787
(104,462)
Capital and reserves
Called up share capital
17
100
100
Profit and loss reserves
1,820,687
(104,562)
Total equity
1,820,787
(104,462)

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 15 April 2025 and are signed on its behalf by:
S A Lemke
Director
Company registration number 03879269 (England and Wales)
PCO GROUP UK LTD
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
- 10 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 January 2023
100
(517,078)
(516,978)
Year ended 31 December 2023:
Profit and total comprehensive income
-
412,516
412,516
Balance at 31 December 2023
100
(104,562)
(104,462)
Year ended 31 December 2024:
Profit and total comprehensive income
-
1,925,249
1,925,249
Balance at 31 December 2024
100
1,820,687
1,820,787
PCO GROUP UK LTD
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 11 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
21
2,121,499
1,075,075
Income taxes refunded
104,818
-
0
Net cash inflow from operating activities
2,226,317
1,075,075
Investing activities
Purchase of tangible fixed assets
(1,132,439)
(740,409)
Net cash used in investing activities
(1,132,439)
(740,409)
Financing activities
Repayment of borrowings
(526,314)
(304,367)
Repayment of bank loans
(6,347)
(6,484)
Payment of finance leases obligations
358,702
-
0
Net cash used in financing activities
(173,959)
(310,851)
Net increase in cash and cash equivalents
919,919
23,815
Cash and cash equivalents at beginning of year
65,189
41,374
Cash and cash equivalents at end of year
985,108
65,189
PCO GROUP UK LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 12 -
1
Accounting policies
Company information

PCO Group UK Ltd is a private company limited by shares incorporated in England and Wales. The registered office is Unit 2A/B, Spitfire Road, Cheshire Green Employment Park, Nantwich, Cheshire, United Kingdom, CW5 6HT.

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
Going concern

Atruet the time of approving the financial statements, having taken into account the financial support from the ultimate parent company, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

1.4
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Plant and equipment
10% - 50% straight line
Computers
33% straight line
Motor vehicles
25% straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

PCO GROUP UK LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 13 -
1.5
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.6
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell, after making due allowances for obsolete and slow moving items.

 

Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.7
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.

1.8
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

PCO GROUP UK LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 14 -
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.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

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.

PCO GROUP UK LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 15 -
Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.9
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.10
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.11
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.

PCO GROUP UK LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 16 -
1.12
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.13
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

2
Turnover
2024
2023
£
£
Turnover analysed by class of business
Sale of goods
17,928,619
13,683,235
Sale of services
50,705
-
17,979,324
13,683,235
2024
2023
£
£
Turnover analysed by geographical market
UK
17,792,501
13,585,047
Outside the UK
186,823
98,188
17,979,324
13,683,235
3
Operating profit
2024
2023
Operating profit for the year is stated after charging:
£
£
Exchange losses
39,003
132,032
Fees payable to the company's auditor for the audit of the company's financial statements
12,800
14,075
Depreciation of owned tangible fixed assets
390,674
315,730
Depreciation of tangible fixed assets held under finance leases
51,191
-
Operating lease charges
275,561
340,395
PCO GROUP UK LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 17 -
4
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2024
2023
Number
Number
Administration
6
7
Manufacturing
25
14
Total
31
21

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
1,018,868
679,177
Social security costs
83,572
45,138
Pension costs
13,796
9,027
1,116,236
733,342
5
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
76,563
70,583
Company pension contributions to defined contribution schemes
1,321
1,321
77,884
71,904
6
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
439
1,250
Interest payable to group undertakings
57,165
69,299
57,604
70,549
Other finance costs:
Interest on finance leases and hire purchase contracts
15,487
-
73,091
70,549
PCO GROUP UK LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 18 -
7
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
-
0
(89,818)
Deferred tax
Origination and reversal of timing differences
540,788
(19,171)
Total tax charge/(credit)
540,788
(108,989)

The actual charge/(credit) 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
2,466,037
303,527
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 23.52%)
616,509
71,390
Tax effect of expenses that are not deductible in determining taxable profit
7,787
13,365
Change in unrecognised deferred tax assets
(1,381)
(68,660)
Effect of change in corporation tax rate
-
0
(1,134)
Permanent capital allowances in excess of depreciation
271
527
Depreciation on assets not qualifying for tax allowances
180
-
0
Research and development tax credit
(82,578)
(124,477)
Taxation charge/(credit) for the year
540,788
(108,989)
PCO GROUP UK LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 19 -
8
Tangible fixed assets
Plant and equipment
Computers
Motor vehicles
Total
£
£
£
£
Cost
At 1 January 2024
2,278,564
17,333
55,161
2,351,058
Additions
686,954
6,705
438,780
1,132,439
Disposals
-
0
-
0
(15,369)
(15,369)
At 31 December 2024
2,965,518
24,038
478,572
3,468,128
Depreciation and impairment
At 1 January 2024
602,521
12,536
33,356
648,413
Depreciation charged in the year
380,854
3,450
57,561
441,865
Eliminated in respect of disposals
-
0
-
0
(13,364)
(13,364)
At 31 December 2024
983,375
15,986
77,553
1,076,914
Carrying amount
At 31 December 2024
1,982,143
8,052
401,019
2,391,214
At 31 December 2023
1,676,043
4,797
21,805
1,702,645

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

2024
2023
£
£
Motor vehicles
387,589
-
0
9
Stocks
2024
2023
£
£
Raw materials and consumables
1,796,100
1,676,887
PCO GROUP UK LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 20 -
10
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
2,387,530
1,473,199
Corporation tax recoverable
-
0
104,818
Prepayments and accrued income
195,969
117,987
2,583,499
1,696,004
Deferred tax asset (note 15)
-
0
16,171
2,583,499
1,712,175
11
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans
13
5,500
5,500
Obligations under finance leases
14
82,817
-
0
Other borrowings
13
300,507
461,952
Trade creditors
574,757
893,450
Amounts owed to group undertakings
2,097,329
2,056,195
Taxation and social security
612,532
224,107
Other creditors
37,741
303
Accruals and deferred income
382,561
280,838
4,093,744
3,922,345

In the prior year filed accounts, loans from parent undertakings and fellow group undertakings were presented as amounts owed to group undertakings when they are a form of financing. The presentation of this has been adjusted for current and non-current balances.

12
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Bank loans and overdrafts
13
24,827
30,735
Obligations under finance leases
14
291,372
-
0
Other borrowings
13
1,000,574
1,308,278
1,316,773
1,339,013

The amount due after more than 5 years relates to the Bounceback loan, security and terms of which are noted under 'Borrowings'.

PCO GROUP UK LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
12
Creditors: amounts falling due after more than one year
(Continued)
- 21 -
Amounts included above which fall due after five years are as follows:
Payable by instalments
(2,298)
(8,735)
13
Loans and overdrafts
2024
2023
£
£
Bank loans
30,327
36,235
Loans from group undertakings
1,301,081
1,770,230
1,331,408
1,806,465
Payable within one year
306,007
467,452
Payable after one year
1,025,401
1,339,013

The amount presented under bank loans is a UK Government secured Bounceback loan. This is a fixed term loan, repayable by monthly instalments, at a fixed interest rate of 2.5%.

 

Amounts due to group undertakings are multiple loans secured on the assets of the company including open debtor invoices and machinery. These are fixed term loans, repayable by monthly instalments at fixed rates of interest.

14
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
109,366
-
0
In two to five years
382,780
-
0
492,146
-
0
Less: future finance charges
(117,957)
-
0
374,189
-
0

Finance lease payments represent rentals payable by the company for motor vehicles. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 5 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

PCO GROUP UK LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 22 -
15
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Liabilities
Liabilities
Assets
Assets
2024
2023
2024
2023
Balances:
£
£
£
£
Tax losses
524,617
-
-
16,171
2024
Movements in the year:
£
Asset at 1 January 2024
(16,171)
Charge to profit or loss
540,788
Liability at 31 December 2024
524,617

The deferred tax liability set out above is expected to reverse within 12 months and relates to accelerated capital allowances that are expected to mature within the same period.

16
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
13,796
9,027

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

17
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
100
100
100
100

The company has one class of ordinary shares which are entitled to one vote each in any circumstances. Each share is entitled pari passu to dividend payments or any other distribution.

PCO GROUP UK LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 23 -
18
Operating lease commitments
Lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2024
2023
£
£
Within one year
352,365
240,000
Between two and five years
186,971
333,400
539,336
573,400
19
Related party transactions

The company has taken advantage of the exemption under the terms of Finacial 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.

 

During the year, a total of key management personnel compensation of £76,563 (2023 - £70,583) was paid.

20
Ultimate controlling party

The ultimate parent company is PCO Group GmbH, a company registered in Germany.

 

PCO Group GmbH is the parent undertaking of the largest group of undertakings to consolidate these financial statements at 31 December 2024. The consolidated financial statements of PCO Group GmbH are available to the public and may be obtained from PCO Group GmbH, 15-17 Holmer Berg, 32942 Dassow, Germany.

21
Cash generated from operations
2024
2023
£
£
Profit for the year after tax
1,925,249
412,516
Adjustments for:
Taxation charged/(credited)
540,788
(108,989)
Finance costs
73,091
70,549
Loss on disposal of tangible fixed assets
2,005
-
Depreciation and impairment of tangible fixed assets
441,865
315,733
Movements in working capital:
(Increase)/decrease in stocks
(119,213)
242,752
(Increase)/decrease in debtors
(992,313)
565,492
Increase/(decrease) in creditors
250,027
(422,978)
Cash generated from operations
2,121,499
1,075,075
PCO GROUP UK LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 24 -
22
Analysis of changes in net debt
1 January 2024
Cash flows
Other non-cash changes
Market value movements
31 December 2024
£
£
£
£
£
Cash at bank and in hand
65,189
919,919
-
-
985,108
Borrowings excluding overdrafts
(1,806,465)
401,966
-
73,091
(1,331,408)
Obligations under finance leases
-
(358,702)
(15,487)
-
(374,189)
(1,741,276)
963,183
(15,487)
73,091
(720,489)
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