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2023-05-31 03005322 g:PoundSterling 2023-06-01 2024-05-31 iso4217:GBP xbrli:shares xbrli:pure
Registered number: 03005322













 
PEARCE SIGNS LIMITED
Annual report and financial statements
For the year ended 31 May 2024




































Page Kirk LLP
Chartered Accountants and Statutory Auditors
Sherwood House
7 Gregory Boulevard
Nottingham
NG7 6LB


 
PEARCE SIGNS LIMITED
 

 
Company Information


Directors
Mr D P Crosby (resigned 30 September 2024)
Mr M D Hudson 
Mr P Shilling 
Mrs E A Snaith 
Mr P W Snaith 




Company secretary
Mrs E A Snaith



Registered number
03005322



Registered office
Castle Court
Duke Street

New Basford

Nottingham

NG7 7JN




Independent auditors
Page Kirk LLP
Chartered Accountants and Statutory Auditors

Sherwood House

7 Gregory Boulevard

Nottingham

NG7 6LB




Bankers
HSBC
26 Clumber Street

Nottingham

NG1 3GA






 
PEARCE SIGNS LIMITED
 


Contents



Page
Strategic report
1 - 2
Directors' report
3 - 4
Directors' responsibilities statement
5
Independent auditors' report
6 - 9
Profit and loss account
10
Balance sheet
11 - 12
Statement of changes in equity
13 - 14
Statement of cash flows
15 - 16
Notes to the financial statements
17 - 35



 
PEARCE SIGNS LIMITED
 

 
Strategic report
For the year ended 31 May 2024

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

Principal activity
 
The principal activity of the company is that of supply, installation and maintenance of all types of signage.

Fair review of the business
 
The turnover for the period was £15.0m (2022/23: £11.6m).
Sales in both the UK and export markets continued to perform strongly with an overall increase of 29% annualised on a like for like basis.
The UK market demand during the period was strong in all sectors and a number of new contracts were awarded along with the maintenance and growth within existing clients. The contribution from the global market continued to grow and the Board is committed to develop this further.
The company has benefitted from investment in both the enhancements to our production equipment and office facilities in Nottingham, increasing manufacturing efficiency and capacity. This is part of a continuing program of upgrading production equipment to incorporate the latest technology. The company remains committed to improving its operational and environmental effectiveness in all aspects of its business to support continued growth and remain competitive within its marketplace.
The company values the contribution made by all its employees and is committed to investing in its employees by encouraging leading working practices and in providing a modern and safe working environment so that each employee can develop skills and competences to enhance their contribution to the future success of the business. The company is committed to paying the real living wage.
The company has shown a strong performance during the period and the Board with their extensive experience in the industry views the future of the company with continued confidence.

Page 1


 
PEARCE SIGNS LIMITED
 


Strategic report (continued)
For the year ended 31 May 2024

Principal risks and uncertainties
 
Market risk
The signage market can present unpredictable and variable levels of activity, influenced by general economic conditions and timing of major rebranding decisions or mergers and acquisitions by clients. The company considers that its customer base of high quality clients over a broad sector spread mitigates this risk.
Inflation risk
In a highly competitive and price-sensitive market, opportunities to pass on the effects of inflation can be more limited. The company addresses this risk by continually reviewing its production processes and driving efficiencies and enhancements to raw material sourcing. Long term fixed price energy contracts have protected the business from increasing energy costs.
Foreign exchange risk
Increased export activity can lead to exposure to currency fluctuations and the company seeks to address this risk where possible by fixing exchange rates at the start of a significant contract and by offsetting sales receipts and supplier payments in matching currencies where appropriate.
Health and safety risk
The company operates machinery and carries out services with an inherent safety risk to project workers. Health and Safety procedures and multiple accreditations supported by thorough training ensure that the company’s safety record is excellent.
Capacity constraints
The company uses several subcontract suppliers in specific markets, providing increased capacity and flexibility. Significant investment has been made in new equipment and improving the workflow and available production space in prior years and this has increased capacity for all signage types.
Key performance indicators
The business sets and monitors annual and monthly key performance indicators. These include order input, sales by market and customer, margins and operating cash flow.


This report was approved by the board on 11 April 2025 and signed on its behalf.



................................................
Mr P Shilling
Director

Page 2


 
PEARCE SIGNS LIMITED
 

 
Directors' report
For the year ended 31 May 2024

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

Results and dividends

The profit for the year, after taxation, amounted to £1,022,298 (2023 - £577,301). Dividends were £185,000 (2023 - £1,063,246).

Directors

The directors who served during the year were:

Mr D P Crosby (resigned 30 September 2024)
Mr M D Hudson 
Mr P Shilling 
Mrs E A Snaith - Company secretary and director 
Mr P W Snaith 
Mr G A Wilton-Hillard (resigned 31 July 2023)
 
Objectives and policies

The company undertakes a system of budgetary control and regular forecast updates to ensure that its performance and KPI’s are achieved, business risks are identified and mitigating actions are prioritised. The Board regularly reviews the continued effectiveness of its risk management and internal control systems and has established procedures to review its business risks and implement any necessary corrective actions as required.

Price risk, credit risk, liquidity risk and cash flow risk

Customer contracts are awarded following tender submissions and are for a specific number of sites or a defined period of time. Pricing is fixed for the duration of these contracts. Longer term contracts may include a price review mechanism. The company regularly meets with its customers to ensure the business remains competitive and service levels are being achieved.
Default on debts due to customer insolvency is a continuing risk. The company undertakes credit checks in advance of committing resources to a new project, and the quality and spread of the customer base means that this risk is reduced as far as is possible.
The company regularly forecasts cash flow and its funding requirements to ensure the availability of liquidity and the adequacy of its banking facilities and to ensure that bank covenants are not breached.

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

Page 3


 
PEARCE SIGNS LIMITED
 

 
Directors' report (continued)
For the year ended 31 May 2024

Reappointment of auditors

Page Kirk LLP have expressed their willingness to continue as auditors for the next financial year.
The address of the registered office is:
Castle Court
Duke Street
New Basford
Nottingham
NG7 7JN

This report was approved by the board on 11 April 2025 and signed on its behalf.
 





................................................
Mr P Shilling
Director

Page 4


 
PEARCE SIGNS LIMITED
 

 
Directors' responsibilities statement
For the year ended 31 May 2024

The directors are responsible for preparing the Strategic report, the Directors' 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period.

 In preparing these financial statements, the directors are required to:

select suitable accounting policies for the Company's financial statements and then apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and to enable them to ensure that the financial statements comply with the Companies Act 2006They 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.

Page 5


 
PEARCE SIGNS LIMITED
 

 
Independent auditors' report to the members of Pearce Signs Limited
 

Opinion


We have audited the financial statements of Pearce Signs Limited (the 'Company') for the year ended 31 May 2024, which comprise the Profit and loss account, the Balance sheet, the Statement of cash flows, the Statement of changes in equity and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In our opinion the financial statements:


give a true and fair view of the state of the Company's affairs as at 31 May 2024 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


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 Auditors' 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 United Kingdom, including the Financial Reporting Council'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.


Page 6


 
PEARCE SIGNS LIMITED
 

 
Independent auditors' report to the members of Pearce Signs Limited (continued)

Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' report thereon. The directors are responsible for the other information contained within the Annual ReportOur 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.


Opinion on other matters prescribed by the Companies Act 2006
 

In our opinion, based on the work undertaken in the course of the 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.


Matters on which we are required to report by exception
 

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


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


adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of 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 set out on page 5, 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.


Page 7


 
PEARCE SIGNS LIMITED
 

 
Independent auditors' report to the members of Pearce Signs Limited (continued)

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


Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
We obtained an understanding of the legal and regulatory frameworks within which the company operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Companies Act 2006, taxation legislation and money laundering regulations.
We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be the override of controls by management and the understatement of revenue.
Our audit procedures to respond to these risks included:
• Enquiries of management about their own identification and assessment of the risks of irregularities.
• Sample testing on the posting of journals.
• Reviewing regulatory correspondence and professional fees.
• Detailed substantive testing on the completeness of income.
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.
These inherent limitations are particularly significant in the case of misstatement resulting from fraud as this may involve sophisticated schemes designed to avoid detection, including deliberate failure to record transactions, collusion or the provision of intentional misrepresentations.


A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities.


This description forms part of our Auditors' report.


Page 8


 
PEARCE SIGNS LIMITED
 

 
Independent auditors' report to the members of Pearce Signs Limited (continued)

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 2006Our 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 Auditors' 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.





John Wallis FCA (Senior statutory auditor)
  
For and on behalf of
Page Kirk LLP
 
Chartered Accountants and Statutory Auditors
  
Sherwood House
7 Gregory Boulevard
Nottingham
NG7 6LB

11 April 2025
Page 9


 
PEARCE SIGNS LIMITED
 

 
Profit and loss account
For the year ended 31 May 2024

2024
2023
Note
£
£

  

Turnover
 3 
14,963,257
11,610,013

Cost of sales
  
(9,020,058)
(7,643,257)

Gross profit
  
5,943,199
3,966,756

Distribution costs
  
(299,829)
(265,306)

Administrative expenses
  
(4,511,387)
(3,846,157)

Other operating income
 4 
253,225
886,261

Operating profit
  
1,385,208
741,554

Interest receivable and similar income
 8 
-
23

Interest payable and similar expenses
 9 
(122,760)
(75,687)

Profit before tax
  
1,262,448
665,890

Tax on profit
 10 
(240,150)
(88,589)

Profit for the financial year
  
1,022,298
577,301

The notes on pages 17 to 35 form part of these financial statements.

Page 10


 
PEARCE SIGNS LIMITED
Registered number:03005322


Balance sheet
As at 31 May 2024

2024
2024
2023
2023
Note
£
£
£
£

Fixed assets
  

Tangible assets
 12 
779,830
579,631

Investments
 13 
500
500

  
780,330
580,131

Current assets
  

Stocks
 14 
793,033
654,653

Debtors: amounts falling due within one year
 15 
4,844,746
4,370,997

Cash at bank and in hand
 16 
270,618
197,162

  
5,908,397
5,222,812

Creditors: amounts falling due within one year
 17 
(3,517,894)
(3,385,643)

Net current assets
  
 
 
2,390,503
 
 
1,837,169

Total assets less current liabilities
  
3,170,833
2,417,300

Creditors: amounts falling due after more than one year
 18 
(450,028)
(566,313)

Provisions for liabilities
  

Deferred tax
 26 
(93,197)
(60,677)

  
 
 
(93,197)
 
 
(60,677)

Net assets
  
2,627,608
1,790,310


Capital and reserves
  

Called up share capital 
 23 
1,000
1,000

Profit and loss account
  
2,626,608
1,789,310

  
2,627,608
1,790,310


Page 11


 
PEARCE SIGNS LIMITED
Registered number:03005322

    
Balance sheet (continued)
As at 31 May 2024

The financial statements were approved and authorised for issue by the board and were signed on its behalf on 11 April 2025.




................................................
Mr P Shilling
Director

The notes on pages 17 to 35 form part of these financial statements.

Page 12


 
PEARCE SIGNS LIMITED
 


Statement of changes in equity
For the year ended 31 May 2024


Called up share capital
Profit and loss account
Total equity

£
£
£

At 1 June 2023
1,000
1,789,310
1,790,310



Profit for the year
-
1,022,298
1,022,298

Dividends: Equity capital
-
(185,000)
(185,000)


At 31 May 2024
1,000
2,626,608
2,627,608


The notes on pages 17 to 35 form part of these financial statements.

Page 13


 
PEARCE SIGNS LIMITED
 


Statement of changes in equity
For the year ended 31 May 2023


Called up share capital
Profit and loss account
Total equity

£
£
£

At 1 June 2022
1,000
2,275,255
2,276,255



Profit for the year
-
577,301
577,301

Dividends: Equity capital
-
(1,063,246)
(1,063,246)


At 31 May 2023
1,000
1,789,310
1,790,310


The notes on pages 17 to 35 form part of these financial statements.

Page 14


 
PEARCE SIGNS LIMITED
 


Statement of cash flows
For the year ended 31 May 2024

2024
2023
£
£

Cash flows from operating activities

Profit for the financial year
1,022,298
577,301

Adjustments for:

Depreciation of tangible assets
200,945
164,524

Loss on disposal of tangible assets
(18,300)
(36,210)

Interest paid
122,760
75,687

Interest received
-
(23)

Taxation charge
240,150
88,589

(Increase)/decrease in stocks
(138,380)
373,895

(Increase) in debtors
(238,625)
(847,510)

(Increase) in amounts owed by groups
(235,124)
(393,731)

Increase/(decrease) in creditors
440,491
(408,267)

Increase/(decrease) in amounts owed to groups
(202,132)
(412,644)

Corporation tax (paid)/received
(49,891)
-

Net cash generated from operating activities

1,144,192
(818,389)


Cash flows from investing activities

Purchase of tangible fixed assets
(260,943)
(101,101)

Sale of tangible fixed assets
18,300
36,210

Interest received
-
23

HP interest paid
(13,071)
(6,621)

Net cash from investing activities

(255,714)
(71,489)
Page 15


 
PEARCE SIGNS LIMITED
 


Statement of cash flows (continued)
For the year ended 31 May 2024


2024
2023

£
£



Cash flows from financing activities

New secured loans
-
1,181,091

Repayment of loans
(588,867)
(90,000)

Repayment of/new finance leases
(116,466)
(83,223)

Interest paid
(109,689)
(69,066)

Net cash used in financing activities
(815,022)
938,802

Net increase in cash and cash equivalents
73,456
48,924

Cash and cash equivalents at beginning of year
197,162
148,238

Cash and cash equivalents at the end of year
270,618
197,162


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
270,618
197,162

270,618
197,162


The notes on pages 17 to 35 form part of these financial statements.

Page 16


 
PEARCE SIGNS LIMITED
 

 
Notes to the financial statements
For the year ended 31 May 2024

1.


General information

The company is a private company limited by share capital, incorporated in England and Wales.
The address of its registered office is:
Castle Court
Duke Street
New Basford
Nottingham
NG7 7JN

2.Accounting policies

  
2.1

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out
below. These policies have been consistently applied to all the periods presented, unless otherwise
stated.

 
2.2

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the Company's accounting policies.

The following principal accounting policies have been applied:

 
2.3

Going concern

The national and international economic outlook has been and will continue to be negatively affected by inflationary pressures and foreign currency fluctuations. After assessing the potential impacts and other operational and market risks, the directors expect the company to have adequate resources and projected revenue streams to continue in operational existence for the foreseeable future and, therefore, continue to adopt the going concern basis in preparing the company's financial statements.

  
2.4

Critical accounting judgements and key sources of estimation uncertainty

Preparation of the financial statements requires management to make significant judgements and estimates. During the preparation of these financial statements there have been no significant or material judgements and estimates that require disclosure other than stage of completion on contracts.

Page 17


 
PEARCE SIGNS LIMITED
 

 
Notes to the financial statements
For the year ended 31 May 2024

2.Accounting policies (continued)

 
2.5

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Profit and loss account within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.

 
2.6

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company's activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.
The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.

 
2.7

Operating leases: the Company as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

Page 18


 
PEARCE SIGNS LIMITED
 

 
Notes to the financial statements
For the year ended 31 May 2024

2.Accounting policies (continued)

 
2.8

Borrowing costs

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.
Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.
Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

 
2.9

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance sheet. The assets of the plan are held separately from the Company in independently administered funds.

 
2.10

Taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.


Page 19


 
PEARCE SIGNS LIMITED
 

 
Notes to the financial statements
For the year ended 31 May 2024

2.Accounting policies (continued)

  
2.11

Business Combinations

Business combinations are accounted for using the purchase method. The consideration for each acquisition is measured at the aggregate of the fair values at acquisition date of assets given, liabilities incurred or assumed, and equity instruments issued by the group in exchange for control of the acquired, plus any costs directly attributable to the business combination. When a business combination agreement provides for an adjustment to the cost of the combination contingent on future events, the group includes the estimated amount of that adjustment in the cost of the combination at the acquisition date if the adjustment is probable and can be measured reliably.

 
2.12

Intangible assets

Goodwill
Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight-line basis to the Profit and loss account over its useful economic life.
Other intangible assets
Separately acquired trademarks and licences are shown at historical cost.
Trademarks, licenses (including software) and customer-related intangible assets acquired in a business combination are recognised at fair value at the acquisition date.
Trademarks, licenses and customer-related intangible assets have a finite useful life and are carried at cost less accumulated amortisation and any accumulated impairment losses.

 Amortisation is provided on the following bases:

Website development
-
33%
straight line
Goodwill
-
10%
straight line
Contract development
-
33%
straight line

 
2.13

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Page 20


 
PEARCE SIGNS LIMITED
 

 
Notes to the financial statements
For the year ended 31 May 2024

2.Accounting policies (continued)


2.13
Tangible fixed assets (continued)

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Leasehold improvements
-
Over the lease term
Plant and machinery
-
20%
straight line
Motor vehicles
-
33%
straight line
Furniture, fittings and equipment
-
15%
to 25% straight line

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.14

Investments

Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured
reliably are measured at cost less impairment.
Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable.

 
2.15

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

 
2.16

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

Page 21


 
PEARCE SIGNS LIMITED
 

 
Notes to the financial statements
For the year ended 31 May 2024

2.Accounting policies (continued)

 
2.17

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Statement of cash flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Company's cash management.

 
2.18

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

  
2.19

Share Capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

 
2.20

Financial instruments

The Company only enters into basic financial instrument transactions that result in the recognition of
financial assets and liabilities like trade and other debtors and creditors, loans from banks and other
third parties, loans to related parties and investments in ordinary shares.
Financial assets that are measured at cost and amortised cost are assessed at the end of each
reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Profit and loss account.
Financial assets and liabilities are offset and the net amount reported in the Balance sheet when
there is an 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.


  
2.21

Dividends

Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

Page 22


 
PEARCE SIGNS LIMITED
 

 
Notes to the financial statements
For the year ended 31 May 2024

3.


Turnover

2024
2023
£
£

Sale of goods
14,963,257
11,610,013

14,963,257
11,610,013


Analysis of turnover by country of destination:

2024
2023
£
£

United Kingdom
11,361,487
10,383,961

Rest of Europe
785,742
559,900

Rest of the world
2,816,028
666,152

14,963,257
11,610,013



4.


Other operating income

2024
2023
£
£

Rents receivable
25,000
15,900

Management charge receivables
228,225
870,361

253,225
886,261



5.


Auditors' remuneration

2024
2023
£
£

Audit of the financial statements
16,630
15,120

Page 23


 
PEARCE SIGNS LIMITED
 

 
Notes to the financial statements
For the year ended 31 May 2024

6.


Staff Costs

Staff costs, including directors' remuneration, were as follows:


2024
2023
£
£

Wages and salaries
3,320,213
3,200,497

Social security costs
368,704
369,984

Cost of defined contribution scheme
64,526
66,372

3,753,443
3,636,853


The average monthly number of employees, including the directors, during the year was as follows:


        2024
        2023
            No.
            No.







Production
28
22



Administration and support
41
42



Distribution
9
11

78
75


7.


Directors' remuneration

2024
2023
£
£

Directors' emoluments
657,379
605,358

Company contributions to defined contribution pension schemes
5,520
6,168

662,899
611,526


During the year retirement benefits were accruing to 6 directors (2023 - 6) in respect of defined contribution pension schemes.

The highest paid director received remuneration of £136,841 (2023 - £131,889).

The value of the Company's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £1,321 (2023 - £1,321).

Page 24


 
PEARCE SIGNS LIMITED
 

 
Notes to the financial statements
For the year ended 31 May 2024

8.


Interest receivable

2024
2023
£
£


Interest income on bank deposits
-
23

-
23


9.


Interest payable

2024
2023
£
£


Interest on bank overdrafts and borrowings
108,359
66,840

Interest on obligations under finance leases and hire purchase contracts
13,071
6,621

Interest expense on other finance liabilities
1,330
2,226

122,760
75,687


10.


Taxation


2024
2023
£
£

Corporation tax


Current tax on profits for the year
207,630
49,891


207,630
49,891


Total current tax
207,630
49,891

Deferred tax


Origination and reversal of timing differences
32,520
38,698

Total deferred tax
32,520
38,698


Tax on profit
240,150
88,589
Page 25


 
PEARCE SIGNS LIMITED
 

 
Notes to the financial statements
For the year ended 31 May 2024
 
10.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is the same as (2023 - the same as) the standard rate of corporation tax in the UK of 25% (2023 - 20.0027%) as set out below:

2024
2023
£
£


Profit on ordinary activities before tax
1,262,448
665,890


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 20.0027%)
315,612
133,196

Effects of:


Expenses not deductible for tax purposes
10,262
6,103

Capital allowances for year in excess of depreciation
(32,424)
(37,606)

Increase or decrease from changes in pension creditor
516
(502)

Origination and reversal of timing difference
32,520
38,698

Group relief
(86,336)
(51,300)

Total tax charge for the year
240,150
88,589

Page 26

 

PEARCE SIGNS LIMITED
 
 
 


 
Notes to the financial statements
For the year ended 31 May 2024


11.


Intangible assets





Contract developments
Website development
Goodwill
Total

£
£
£
£



Cost


At 1 June 2023
127,613
16,050
45,000
188,663



At 31 May 2024

127,613
16,050
45,000
188,663



Amortisation


At 1 June 2023
127,613
16,050
45,000
188,663



At 31 May 2024

127,613
16,050
45,000
188,663



Net book value



At 31 May 2024
-
-
-
-



At 31 May 2023
-
-
-
-



Page 27


 

PEARCE SIGNS LIMITED
 
 
 


 
Notes to the financial statements
For the year ended 31 May 2024


12.


Tangible fixed assets






Leasehold improvements
Plant and machinery
Motor vehicles
Furniture, fittings and equipment
Total

£
£
£
£
£



Cost or valuation


At 1 June 2023
168,232
1,036,135
400,242
325,776
1,930,385


Additions
133,942
44,926
145,639
76,637
401,144


Disposals
-
-
(46,500)
-
(46,500)



At 31 May 2024

302,174
1,081,061
499,381
402,413
2,285,029



Depreciation


At 1 June 2023
67,601
766,921
240,565
275,667
1,350,754


Charge for the year on owned assets
19,089
72,530
69,294
40,032
200,945


Disposals
-
-
(46,500)
-
(46,500)



At 31 May 2024

86,690
839,451
263,359
315,699
1,505,199



Net book value



At 31 May 2024
215,484
241,610
236,022
86,714
779,830



At 31 May 2023
100,631
269,214
159,677
50,109
579,631
Page 28

 
PEARCE SIGNS LIMITED
 

 
Notes to the financial statements
For the year ended 31 May 2024

           12.Tangible fixed assets (continued)


Finance leases

Included in the net book value of tangible assets is £421,340 (2023 - £378,393) in respect of assets purchased through finance leases.


13.


Investments in subsidiaries, joint ventures and associates





Investments in subsidiaries

£





At 1 June 2023
500



At 31 May 2024
500






Net book value



At 31 May 2024
500



At 31 May 2023
500

Details of undertakings
Details of the investments in which the company holds 20% or more of the nominal value of any class of share capital are as follows:
Subsidiary undertakings                                     Holding                          Proportion of voting
                                                                                                                 rights and shares held
                                                                                                                 2024              2023
Pearce Maintenance Limited                                  Ordinary shares              100%             100%
The registered office address of Pearce Maintenance Limited is Castle Court, Duke Street, Nottingham, NG7 7JN.

Page 29


 
PEARCE SIGNS LIMITED
 

 
Notes to the financial statements
For the year ended 31 May 2024

14.


Stocks

2024
2023
£
£

Raw materials and finished goods
291,464
309,071

Work in progress
501,569
345,582

793,033
654,653



15.


Debtors

2024
2023
£
£


Trade debtors
2,781,694
2,611,484

Amounts owed by related parties
1,694,251
1,459,127

Other debtors
121,906
75,571

Prepayments and accrued income
246,895
224,815

4,844,746
4,370,997


An impairment loss of £26,065 (2023 - £16,309) was recognised against trade debtors.


16.


Cash and cash equivalents

2024
2023
£
£

Cash at bank and in hand
270,618
197,162

270,618
197,162


Page 30


 
PEARCE SIGNS LIMITED
 

 
Notes to the financial statements
For the year ended 31 May 2024

17.


Creditors: Amounts falling due within one year

2024
2023
£
£

Bank loans
232,224
701,091

Trade creditors
1,860,539
1,369,465

Amounts owed to group undertakings
285,577
302,709

Corporation tax
207,630
49,891

Other taxation and social security
105,666
205,264

HP and finance lease liabilities
127,021
107,001

Other creditors
155,079
151,387

Accruals and deferred income
544,158
498,835

3,517,894
3,385,643



18.


Creditors: Amounts falling due after more than one year

2024
2023
£
£

Bank loans
270,000
390,000

HP and finance lease liabilities
180,028
176,313

450,028
566,313


Page 31


 
PEARCE SIGNS LIMITED
 

 
Notes to the financial statements
For the year ended 31 May 2024

19.


Loans


2024
2023
£
£

Amounts falling due within one year

Bank loans
232,224
701,091


232,224
701,091

Amounts falling due after more than one year

Bank loans
270,000
390,000


270,000
390,000



502,224
1,091,091


Charges
There are charges dated 26 August 2022 entitling Mrs E A Snaith and Close Brothers Limited as security trustees. The charges contain:
• Fixed charge.
• Floating charge covering all property or undertaking of the company.
• Negative pledge.
The following were outstanding at the year end:
• A debenture with HSBC plc dated 12 September 2005 contains a fixed and floating charge over all assets of the company.
• HP contracts are secured over the assets to which they relate.
• Pearce Signs Limited has provided guarantees to support two group companies.
.


20.


Obligations under finance leases and hire purchase contacts


Minimum lease payments under hire purchase fall due as follows:

2024
2023
£
£


Within one year
143,482
117,571

Between 1-5 years
209,405
190,250

352,887
307,821

Page 32


 
PEARCE SIGNS LIMITED
 

 
Notes to the financial statements
For the year ended 31 May 2024

21.


Pension and other schemes

Defined contribution pension scheme
The company operates a defined contribution pension scheme. The pension cost charge for the period represents contributions payable by the company to the scheme and amounted to £64,526 (2023 - £66,372).
        
Contributions totalling £10,448 (2023 - £4,296) were payable to the scheme at the end of the period and are included in creditors.


22.


Commitments under operating leases

At 31 May 2024 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2024
2023
£
£


Within one year
202,093
180,664

Between 1-5 years
244,165
305,772

Later than 5 years
-
486,437

446,258
972,873

The amount of non-cancellable operating lease payments recognised as an expense during the period was £234,457 (2023 - £170,484).

Page 33


 
PEARCE SIGNS LIMITED
 

 
Notes to the financial statements
For the year ended 31 May 2024

23.


Share capital

2024
2023
£
£
Allotted, called up and fully paid



1,000 (2023 - 1,000) Ordinary shares of £1.00 each
1,000
1,000

Rights, preferences and restrictions
Each share carries equal voting rights. Dividend rights are variable.



24.


Financial instruments

2024
2023
£
£

Categorisation of financial instruments


Financial assets that are debt instruments measured at amortised cost
4,868,469
4,346,119

Financial liabilities measured at amortised cost
3,624,544
3,563,169



Items of income, expense, gains or losses
The total interest expense for financial liabilities not measured at fair value through profit or loss is £108,359 (2023 - £66,840).
Impairment
Trade debtors
The amount of the impairment loss during the period is £26,065 (2023 - £16,309).
                                                              


25.


Related party transactions

At the balance sheet date, a balance of £115,709 (2023 - £123,677) was due to an entity under the control of key management personnel.
During the year, lease expenses paid to an entity under the control of key management personnel amounted to £125,000 (2023 - £93,750).

Page 34


 
PEARCE SIGNS LIMITED
 

 
Notes to the financial statements
For the year ended 31 May 2024

26.


Deferred taxation




2024
2023


£

£






At beginning of year
(60,677)
(21,979)


Charged to profit or loss
(32,520)
(38,698)



At end of year
(93,197)
(60,677)

The provision for deferred taxation is made up as follows:

2024
2023
£
£


Accelerated capital allowances
(93,197)
(60,677)

(93,197)
(60,677)


27.


Parent and ultimate parent undertaking

Pearce Global Limited is Pearce Signs Limited’s parent undertaking and Pearce Global Holdings Limited is the ultimate parent undertaking. Pearce Global Limited’s and Pearce Global Holdings Limited’s registered office address is Castle Court, Duke Street, New Basford, Nottingham, NG7 7JN. The directors of Pearce Global Holdings Limited do not consider there to be an ultimate controlling party.

 
Page 35