Company registration number 01769896 (England and Wales)
PELICANS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023
PELICANS LIMITED
COMPANY INFORMATION
Director
Mrs S A Merchant
(Appointed 25 March 2024)
Company number
01769896
Registered office
Qualitas House
100 Elmgrove Road
Harrow
Middlesex
HA1 2RW
Auditor
RDP Newmans LLP
Lynwood House
373-375 Station Road
Harrow
Middlesex
HA1 2AW
Bankers
National Westminster Bank Plc
Hendon Central Circus Branch
5 Central Circus
Hendon
London
NW4 3LE
PELICANS LIMITED
CONTENTS
Page
Strategic report
1 - 2
Director's report
3
Director's responsibilities statement
4
Independent auditor's report
5 - 7
Group statement of comprehensive income
8
Group balance sheet
9
Company balance sheet
10
Group statement of changes in equity
11
Company statement of changes in equity
12
Group statement of cash flows
13
Company statement of cash flows
14
Notes to the financial statements
15 - 31
PELICANS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MAY 2023
- 1 -

The director presents the strategic report for the year ended 31 May 2023.

Principal activities

The principal activity of the company is that of a holding company and it holds 100% of the shares in Pelicans Manufacturing Co. Limited and 14 Marshgate Lane Limited.

 

The group's principal activity is the design, manufacture and sale of business promotional gifts. The director is disappointed with the results for the year but looks forward to improving upon them in future.

Review of the business

The turnover has increased from £9.11 million to £11.74 million. The gross profit margin has also increased from 1.80% to 4.22%. This was largely due to the prior year write down of stock on the relocation to new premises during the year, and that much of the stock held by the group for many years was no longer suitable for resale and was thus scrapped. Despite the increase in gross margins, the group generated a pre tax loss of £1,504k for the year compared to a profit of £4,461k in 2022. The prior year profits were driven by profit generated from the disposal of freehold property.

 

The group's liquidity at 31 May 2023 had a current ratio of 0.98 (2022: 1.29) and a quick ratio of 0.94 (2022: 1.25).

 

The director recognises the above Key Performance Indicators represents the current economic climate and is confident there are policies and procedures in place to ensure that the results in the forthcoming year are improved should the economic climate remain similar.

Principal risks and uncertainties

 

The director believes that the key business risks are in respect of competition from both UK and international businesses and in ensuring product quality and development and timely deliveries to its customers. In view of these risks and uncertainties the director regularly reviews the operations to mitigate the impact of such risks and uncertainties.

 

Future developments

The director anticipates the business environment will remain challenging and competitive and believes that the group is in a sound financial position and remains confident that the group will be able to reverse the decline in profits in future.

 

Research and development

The group is continually undertaking research and development to improve its product range.

 

Treasury operations and financial instruments

The group operates a centralised treasury function which is responsible for managing the liquidity, interest and foreign currency risks associated with the group’s activities.

 

Liquidity risk

The group manages its cash and borrowing requirements in order to maximise interest income and minimise interest expense, whilst ensuring the group has sufficient liquid resources to meet the operating needs of the businesses.

 

Interest rate risk

The group is exposed to interest rate risk on bank overdrafts and loans. The group uses interest rate derivatives to manage the mix of fixed and variable rate debts so as to reduce its exposure to changes in its interest rates.

 

Foreign currency risk

The group’s principal foreign currency exposures arise from trading with overseas companies. Group policy permits but does not demand that these exposures may be hedged in order to fix the cost in sterling. This hedging activity involves the use of foreign exchange forward contracts.

PELICANS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
- 2 -

Credit risk

Investments of cash surpluses and borrowings are made through banks and companies which must fulfil credit rating criteria approved by the Board. All customers who wish to trade on credit terms are subject to credit verification procedures. Trade debtors are monitored on an ongoing basis and provision is made for doubtful debts where necessary.

Other information and explanations

The group does not follow any specified code or standard on payment practice. However, it is the group's policy to negotiate the terms with its suppliers and to ensure that they are aware of the terms of payment when business is agreed. It is the group's policy to abide by these terms.

On behalf of the board

Mrs S A Merchant
Director
27 April 2025
PELICANS LIMITED
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 MAY 2023
- 3 -

The director presents her annual report and financial statements for the year ended 31 May 2023.

Results and dividends

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

No ordinary dividends were paid. The director does not recommend payment of a further dividend.

Director

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

Mr A N Merchant
(Resigned 24 January 2024)
Mr S F Maxton
(Resigned 31 January 2024)
Mrs S A Merchant
(Appointed 25 March 2024)
Mr P Kabra
(Appointed 12 January 2024 and resigned 25 March 2024)
Mrs S A Merchant
(Resigned 9 October 2023)
Auditor

The auditor, RDP Newmans LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Energy and carbon report

As the group has not consumed more than 40,000 kWh of energy in this reporting period, it qualifies as a low energy user under these regulations and is not required to report on its emissions, energy consumption or energy efficiency activities.

Strategic report

The truegroup has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the group's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report.

Statement of disclosure to auditor

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

Medium-sized companies exemption

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

On behalf of the board
Mrs S A Merchant
Director
27 April 2025
2025-04-27
PELICANS LIMITED
DIRECTOR'S RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MAY 2023
- 4 -

The director is responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless she is satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the director is required to:

 

 

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

PELICANS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF PELICANS LIMITED
- 5 -
Opinion

We have audited the financial statements of Pelicans Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 May 2023 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows, the company statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

 

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

 

Our responsibilities and the responsibilities of the director 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 director is 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:

PELICANS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF PELICANS LIMITED
- 6 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the director's 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 director

As explained more fully in the director's responsibilities statement, the director is 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 director determines 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 director is responsible for assessing the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the director either intends to liquidate the parent company or to cease operations, or has no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

The extent to which the audit was considered capable of detecting irregularities including fraud

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

We assessed the susceptibility of the group’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

PELICANS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF PELICANS LIMITED
- 7 -

To address the risk of fraud through management bias and override of controls, we:

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity’s controls, and the nature, timing and extent of the audit procedures performed. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance.

Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

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.

Paresh Radia FCA (Senior Statutory Auditor)
For and on behalf of RDP Newmans LLP
30 May 2025
Chartered Accountants
Statutory Auditor
Lynwood House
373-375 Station Road
Harrow
Middlesex
HA1 2AW
PELICANS LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MAY 2023
- 8 -
2023
2022
Notes
£
£
Turnover
3
11,744,451
9,114,627
Cost of sales
(11,249,269)
(8,950,263)
Gross profit
495,182
164,364
Administrative expenses
(2,058,345)
(4,290,955)
Other operating income
48,069
8,615,795
Operating (loss)/profit
5
(1,515,094)
4,489,204
Interest receivable and similar income
9
27,206
14,773
Interest payable and similar expenses
10
(16,067)
(42,702)
(Loss)/profit before taxation
(1,503,955)
4,461,275
Tax on (loss)/profit
11
84,917
(619,778)
(Loss)/profit for the financial year and total comprehensive income
25
(1,419,038)
3,841,497
(Loss)/profit for the financial year and total comprehensive income is all attributable to the owners of the parent company.

The Statement of Comprehensive Income has been prepared on the basis that all operations are continuing operations.

PELICANS LIMITED
GROUP BALANCE SHEET
AS AT 31 MAY 2023
31 May 2023
- 9 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
13
505,273
298,854
Current assets
Stocks
16
236,590
166,021
Debtors
17
5,459,869
6,339,600
Cash at bank and in hand
171,095
181,926
5,867,554
6,687,547
Creditors: amounts falling due within one year
18
(6,007,394)
(5,199,536)
Net current (liabilities)/assets
(139,840)
1,488,011
Total assets less current liabilities
365,433
1,786,865
Provisions for liabilities
Deferred tax liability
21
32,819
35,213
(32,819)
(35,213)
Net assets
332,614
1,751,652
Capital and reserves
Called up share capital
23
60,000
60,000
Capital redemption reserve
24
100,000
100,000
Profit and loss reserves
25
172,614
1,591,652
Total equity
332,614
1,751,652

These financial statements have been prepared in accordance with the provisions relating to medium-sized groups.

The financial statements were approved by the board of directors and authorised for issue on 27 April 2025 and are signed on its behalf by:
27 April 2025
Mrs S A Merchant
Director
Company registration number 01769896 (England and Wales)
PELICANS LIMITED
COMPANY BALANCE SHEET
AS AT 31 MAY 2023
31 May 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Investments
14
117,001
117,001
Current assets
Debtors
17
1,788,794
1,858,223
Cash at bank and in hand
354
387
1,789,148
1,858,610
Creditors: amounts falling due within one year
18
(1,841,995)
(1,882,939)
Net current liabilities
(52,847)
(24,329)
Net assets
64,154
92,672
Capital and reserves
Called up share capital
23
60,000
60,000
Profit and loss reserves
25
4,154
32,672
Total equity
64,154
92,672

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s loss for the year was £28,518 (2022 - £3,371,955 profit).

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements were approved by the board of directors and authorised for issue on 27 April 2025 and are signed on its behalf by:
27 April 2025
Mrs S A Merchant
Director
Company registration number 01769896 (England and Wales)
PELICANS LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MAY 2023
- 11 -
Share capital
Revaluation reserve
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 June 2021
60,000
4,365,092
100,000
1,125,155
5,650,247
Year ended 31 May 2022:
Profit and total comprehensive income
-
-
-
3,841,497
3,841,497
Dividends
12
-
-
-
(3,375,000)
(3,375,000)
Other movements
-
(4,365,092)
-
-
(4,365,092)
Balance at 31 May 2022
60,000
-
0
100,000
1,591,652
1,751,652
Year ended 31 May 2023:
Loss and total comprehensive income
-
-
-
(1,419,038)
(1,419,038)
Balance at 31 May 2023
60,000
-
0
100,000
172,614
332,614
PELICANS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MAY 2023
- 12 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 June 2021
60,000
35,717
95,717
Year ended 31 May 2022:
Profit and total comprehensive income for the year
-
3,371,955
3,371,955
Dividends
12
-
(3,375,000)
(3,375,000)
Balance at 31 May 2022
60,000
32,672
92,672
Year ended 31 May 2023:
Profit and total comprehensive income
-
(28,518)
(28,518)
Balance at 31 May 2023
60,000
4,154
64,154
PELICANS LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MAY 2023
- 13 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash (absorbed by)/generated from operations
29
(179,847)
3,143,373
Interest paid
(16,067)
(42,702)
Income taxes paid
(236,169)
(747,887)
Net cash (outflow)/inflow from operating activities
(432,083)
2,352,784
Investing activities
Purchase of tangible fixed assets
(307,669)
(114,611)
Proceeds from disposal of tangible fixed assets
-
6,776,923
Proceeds from disposal of investments
-
125,685
Increase in/(repayment of) loans
942,821
(1,671,282)
Interest received
27,206
14,773
Net cash generated from investing activities
662,358
5,131,488
Financing activities
Repayment of bank loans
-
(3,937,907)
Payment of finance leases obligations
(13,393)
(12,792)
Dividends paid to equity shareholders
-
0
(3,375,000)
Net cash used in financing activities
(13,393)
(7,325,699)
Net increase in cash and cash equivalents
216,882
158,573
Cash and cash equivalents at beginning of year
(227,458)
(386,031)
Cash and cash equivalents at end of year
(10,576)
(227,458)
Relating to:
Cash at bank and in hand
171,095
181,926
Bank overdrafts included in creditors payable within one year
(181,671)
(409,384)
PELICANS LIMITED
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MAY 2023
- 14 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash absorbed by operations
30
(33)
(32)
Investing activities
Purchase of subsidiaries
-
0
(1)
Dividends received
-
0
3,375,000
Net cash (used in)/generated from investing activities
-
3,374,999
Financing activities
Dividends paid to equity shareholders
-
(3,375,000)
Net cash used in financing activities
-
(3,375,000)
Net decrease in cash and cash equivalents
(33)
(33)
Cash and cash equivalents at beginning of year
387
420
Cash and cash equivalents at end of year
354
387
PELICANS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023
- 15 -
1
Accounting policies
Company information

Pelicans Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Qualitas House, 100 Elmgrove Road, Harrow, HA1 2RW.

 

The group consists of Pelicans Limited and all of its subsidiaries.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

1.2
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

1.3
Basis of consolidation

The consolidated financial statements incorporate those of Pelicans Limited and all of its subsidiaries (ie entities that the group controls through its power to govern the financial and operating policies so as to obtain economic benefits).

 

All financial statements are made up to 31 May 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

1.4
Going concern

At the time of approving the financial statements, the director has a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements.

PELICANS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
1
Accounting policies
(Continued)
- 16 -
1.5
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods provided in the normal course of business, and is shown net of VAT. 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.

1.6
Tangible fixed assets

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

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

Leasehold land and buildings
10 year straight line
Plant and machinery
12.5% reducing balance
Fixtures, fittings and equipment
20% - 25% reducing balance
Motor vehicles
25% reducing balance

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

1.7
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

1.8
Impairment of fixed assets

At each reporting period end date, the group 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.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

PELICANS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
1
Accounting policies
(Continued)
- 17 -

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.

1.9
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

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.

1.10
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.

1.11
Financial instruments

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

 

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

 

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

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

PELICANS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
1
Accounting policies
(Continued)
- 18 -
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 group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

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

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Other financial liabilities

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.

PELICANS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
1
Accounting policies
(Continued)
- 19 -
Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.12
Equity instruments

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

1.13
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 group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

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

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the 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 if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.14
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.15
Retirement benefits

Pension contributions are paid to an outside scheme and payments are charged to the profit and loss accounts as incurred.

PELICANS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
1
Accounting policies
(Continued)
- 20 -
1.16
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.

1.17
Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

 

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

1.18
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

2
Judgements and key sources of estimation uncertainty

In the application of the group’s accounting policies, the director is required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

 

In the director's view, there are no significant judgements or estimates made.

3
Turnover and other revenue

An analysis of the group's turnover is as follows:

2023
2022
£
£
Turnover analysed by class of business
Promotional goods
11,744,451
9,114,627
PELICANS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
3
Turnover and other revenue
(Continued)
- 21 -
2023
2022
£
£
Turnover analysed by geographical market
Europe
8,491,981
7,202,206
United Kingdom
3,252,470
1,912,421
11,744,451
9,114,627
2023
2022
£
£
Other revenue
Interest income
27,206
14,773
4
Other income
2023
2022
£
£
Income
Exchange losses
(51,931)
(72,666)
Grant received
-
88,145
Property development income
100,000
-
Profit on disposal of property
-
8,600,316
48,069
8,615,795
5
Operating (loss)/profit
2023
2022
£
£
Operating (loss)/profit for the year is stated after charging:
Exchange losses
51,931
72,666
Depreciation of owned tangible fixed assets
94,553
55,569
Depreciation of tangible fixed assets held under finance leases
6,697
8,930
(Profit)/loss on disposal of tangible fixed assets
-
125,685
6
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
28,472
3,000
Audit of the financial statements of the company's subsidiaries
33,300
25,000
61,772
28,000
For other services
All other non-audit services
10,142
20,000
PELICANS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
- 22 -
7
Employees

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

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
Selling and distribution
1
1
-
-
Administration
12
12
-
-
Production
28
27
-
-
Total
41
40
-
0
-
0

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
1,503,618
1,580,709
-
0
-
0
Pension costs
33,166
26,885
-
0
-
0
1,536,784
1,607,594
-
0
-
0

The total compensation paid to Key Management Personnel during the year amounted to £494,325 (2022: £404,553).

8
Director's remuneration
2023
2022
£
£
Remuneration for qualifying services
310,761
261,048
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
152,432
114,625
9
Interest receivable and similar income
2023
2022
£
£
Interest income
Other interest income
27,206
14,773
PELICANS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
- 23 -
10
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
-
40,185
Other finance costs:
Interest on finance leases and hire purchase contracts
676
1,721
Other interest
15,391
796
Total finance costs
16,067
42,702
11
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
(252,523)
613,270
Adjustments in respect of prior periods
170,000
-
0
Total current tax
(82,523)
613,270
Deferred tax
Origination and reversal of timing differences
(2,394)
6,508
Total tax (credit)/charge
(84,917)
619,778

The actual (credit)/charge for the year can be reconciled to the expected (credit)/charge for the year based on the profit or loss and the standard rate of tax as follows:

2023
2022
£
£
(Loss)/profit before taxation
(1,503,955)
4,461,275
Expected tax (credit)/charge based on the standard rate of corporation tax in the UK of 19.00% (2022: 19.00%)
(285,751)
847,642
Tax effect of expenses that are not deductible in determining taxable profit
29,205
19,936
Tax effect of utilisation of tax losses not previously recognised
170,000
(171,000)
Unutilised tax losses carried forward
-
0
35,624
Depreciation on assets not qualifying for tax allowances
19,238
11,724
Deferred tax movement
(2,394)
6,508
Capital allowances
(15,215)
(62,269)
Indexation allowance
-
0
(68,387)
Taxation (credit)/charge
(84,917)
619,778
PELICANS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
- 24 -
12
Dividends
2023
2022
Recognised as distributions to equity holders:
£
£
Interim paid
-
3,375,000
13
Tangible fixed assets
Group
Leasehold land and buildings
Plant and machinery
Fixtures, fittings and equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 June 2022
27,919
1,033,109
20,046
163,904
1,244,978
Additions
172,222
2,058
33,744
99,645
307,669
At 31 May 2023
200,141
1,035,167
53,790
263,549
1,552,647
Depreciation and impairment
At 1 June 2022
2,792
859,351
17,907
66,074
946,124
Depreciation charged in the year
20,014
24,689
7,177
49,370
101,250
At 31 May 2023
22,806
884,040
25,084
115,444
1,047,374
Carrying amount
At 31 May 2023
177,335
151,127
28,706
148,105
505,273
At 31 May 2022
25,127
173,758
2,139
97,830
298,854
The company had no tangible fixed assets at 31 May 2023 or 31 May 2022.

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

Group
Company
2023
2022
2023
2022
£
£
£
£
Motor vehicles
20,092
26,789
-
0
-
0
14
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
15
-
0
-
0
117,001
117,001
PELICANS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
14
Fixed asset investments
(Continued)
- 25 -
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 June 2022 and 31 May 2023
117,001
Carrying amount
At 31 May 2023
117,001
At 31 May 2022
117,001
15
Subsidiaries

Details of the company's subsidiaries at 31 May 2023 are as follows:

Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
Pelicans Manufacturing Co. Ltd (Company registration no 01604582)
Qualitas House, 100 Elmgrove Road, Harrow HA1 2RW
Design. manufacture and sale of promotional gifts
Ordinary shares
100.00
14 Marshgate Lane Limited (Company registration no 13840573)
14 Bedford Square, London WC1B 3JA
Property development
Ordinary shares
100.00
The aggregate capital and reserves and the result for the year of the subsidiaries noted above was as follows:
Name of undertaking
Capital and Reserves
Profit/(Loss)
£
£
Pelicans Manufacturing Co. Ltd (Company registration no 01604582)
556,673
(1,403,755)
14 Marshgate Lane Limited (Company registration no 13840573)
(171,212)
13,235

For the financial year ended 31 May 2023 14 Marshgate Lane Limited was entitled to exemption from audit under section 479A of the Companies Act 2006 relating to subsidiary companies. Pelicans Limited guarantees the liabilities of the 14 Marshgate Lane Limited under section 479C of the Companies Act 2006 in respect of the year ended 31 May 2023.

16
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Finished goods and goods for resale
236,590
166,021
-
0
-
0
PELICANS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
- 26 -
17
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
3,137,723
2,252,613
-
0
-
0
Corporation tax recoverable
390,819
294,161
-
0
-
0
Amounts owed by group undertakings
-
-
1,788,794
1,858,223
Other debtors
1,910,593
3,732,018
-
0
-
0
Prepayments and accrued income
20,734
60,808
-
0
-
0
5,459,869
6,339,600
1,788,794
1,858,223
18
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
19
181,671
409,384
-
0
-
0
Obligations under finance leases
20
15,280
28,673
-
0
-
0
Trade creditors
449,788
315,417
-
0
-
0
Amounts owed to group undertakings
1,805,983
1,875,411
1,805,983
1,875,411
Corporation tax payable
683,497
905,531
-
0
-
0
Other taxation and social security
81,979
39,991
-
-
Other creditors
2,561,043
1,533,776
-
0
-
0
Accruals and deferred income
228,153
91,353
36,012
7,528
6,007,394
5,199,536
1,841,995
1,882,939
19
Loans and overdrafts
Group
Company
2023
2022
2023
2022
£
£
£
£
Bank overdrafts
181,671
409,384
-
0
-
0
Payable within one year
181,671
409,384
-
0
-
0

The bank loans and overdrafts are secured by a fixed and floating charge over the assets of the group and the company.

PELICANS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
- 27 -
20
Finance lease obligations
Group
Company
2023
2022
2023
2022
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
6,060
14,069
-
0
-
0
In two to five years
9,220
14,604
-
0
-
0
15,280
28,673
-
-

Finance lease payments represent rentals payable by the company or group for certain items of plant and machinery. 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 3 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

 

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts £20,092 (2022: £26,789). The depreciation charge in respect of such assets amounted to £6,697 (2022: £8,930).

21
Deferred taxation

Deferred tax assets and liabilities are offset where the group or company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:

Liabilities
Liabilities
2023
2022
Group
£
£
Accelerated capital allowances
32,819
35,213
The company has no deferred tax assets or liabilities.
Group
Company
2023
2023
Movements in the year:
£
£
Liability at 1 June 2022
35,213
-
Credit to profit or loss
(2,394)
-
Liability at 31 May 2023
32,819
-

The deferred tax liability set out above in respect of capital allowances is expected to reverse within 12 months.

PELICANS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
- 28 -
22
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
33,166
26,885

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund. Contributions of £8,780 (2022: £2,549) were outstanding as at the balance sheet date.

23
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
60,000
60,000
60,000
60,000
24
Capital redemption reserve
Group
Company
2023
2022
2023
2022
£
£
£
£
At the beginning and end of the year
100,000
100,000
-
0
-
0
25
Profit and loss reserves
Group
Company
2023
2022
2023
2022
£
£
£
£
At the beginning of the year
1,591,652
1,125,155
32,672
35,717
Profit/(loss) for the year
(1,419,038)
3,841,497
(28,518)
3,371,955
Dividends
-
(3,375,000)
-
(3,375,000)
At the end of the year
172,614
1,591,652
4,154
32,672
PELICANS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
- 29 -
26
Operating lease commitments

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

Group
Company
2023
2022
2023
2022
£
£
£
£
Within one year
291,478
218,609
-
-
Between two and five years
1,165,912
1,165,912
-
-
In over five years
1,165,912
1,457,390
-
-
2,623,302
2,841,911
-
-
27
Related party transactions

Included within amounts owed to group undertakings is a balance of £1,805,983 (2022: £1,875,411) due to Al-Noor Investments Limited (a company incorporated in Jersey), who is the parent undertaking.

 

During the year the group purchased goods worth £9,748,525 (2022: £6,520,330) from Pelicans Automotive & Promotional Products (Pvt.) Limited, a company registered in India, and related by virtue of common control. At the year end a balance £2,553,966 (2022: £1,533,776) was due to Pelicans Automotive & Promotional Products (Pvt.) Limited.

 

Included within other debtors is an amount of £870,393 (2022: £96,332) due from FF Propco Ltd. a company incorporated in Jersey. Mr. R A Merchant, the son of Mrs. S A Merchant, is a director and beneficial owner of the company.

 

Included within other debtors is an amount of £nil (2022: £1,474,151) due from 110/116 Cheshire Street Limited, a previously associated company, in which Mrs S A Merchant is a director.

 

During the year, amounts of £nil (2022:1,379,895) and £nil (2022: £456,809) due from The Collective Holdco Jersey Limited, a company incorporated in Jersey and 14 Bedford Square Ltd respectively, were deemed irrecoverable and written off in last year accounts. Mr R M Merchant, the son of Mr A N Merchant, is a director and beneficial owner in these companies.

 

Included within other debtors is a balance of £877,848 (2022: £1,820,668) due from the directors. Interest of £27,206 (2022: £14,773) has been charged on this balance.

28
Controlling party

By virtue of it's majority shareholding, the ultimate parent company is Al-Noor Investments Limited, a company registered in Jersey, Channel Islands. Al-Noor Investments Limited is not required to prepare consolidated financial statements.

PELICANS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
- 30 -
29
Cash (absorbed by)/generated from group operations
2023
2022
£
£
(Loss)/profit for the year after tax
(1,419,038)
3,841,497
Adjustments for:
Taxation (credited)/charged
(84,917)
619,778
Finance costs
16,067
42,702
Investment income
(27,206)
(14,773)
(Gain)/loss on disposal of tangible fixed assets
-
125,685
Depreciation and impairment of tangible fixed assets
101,250
64,499
Decrease in provisions
-
(4,365,092)
Movements in working capital:
(Increase)/decrease in stocks
(70,569)
652,808
Decrease/(increase) in debtors
33,568
(402,500)
Increase in creditors
1,270,998
2,578,769
Cash (absorbed by)/generated from operations
(179,847)
3,143,373
30
Cash absorbed by operations - company
2023
2022
£
£
(Loss)/profit for the year after tax
(28,518)
3,371,955
Adjustments for:
Investment income
-
0
(3,375,000)
Movements in working capital:
Decrease/(increase) in debtors
69,429
(1,382,384)
(Decrease)/increase in creditors
(40,944)
1,385,397
Cash absorbed by operations
(33)
(32)
31
Analysis of changes in net debt - group
1 June 2022
Cash flows
31 May 2023
£
£
£
Cash at bank and in hand
181,926
(10,831)
171,095
Bank overdrafts
(409,384)
227,713
(181,671)
(227,458)
216,882
(10,576)
Obligations under finance leases
(28,673)
13,393
(15,280)
(256,131)
230,275
(25,856)
PELICANS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
- 31 -
32
Analysis of changes in net funds - company
1 June 2022
Cash flows
31 May 2023
£
£
£
Cash at bank and in hand
387
(33)
354
2023-05-312022-06-01falseCCH SoftwareCCH Accounts Production 2024.100Mr A N MerchantMr S F MaxtonMr P KabraMrs S A MerchantMrs S A MerchantMrs. S. 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