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Registered number: 03290190














PEI-GENESIS (U.K.) LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024

 
PEI-GENESIS (U.K.) LIMITED
 

COMPANY INFORMATION


Directors
S L Fisher 
A A Swierczynski (appointed 17 June 2024)
M R Jeram (appointed 17 June 2024)
S Findley (appointed 17 June 2024)
K J Sunderland (appointed 17 June 2024)
J Parry (resigned 30 April 2024)




Registered number
03290190



Registered office
Henwood House
Henwood

Ashford

Kent

TN24 8DH




Trading Address
George Curl Way

Southampton

Hampshire

SO18 2RZ






Independent auditors
Magee Gammon Corporate Limited
Chartered Accountants & Statutory Auditors

Henwood House

Henwood

Ashford

Kent

TN24 8DH





 
PEI-GENESIS (U.K.) LIMITED
 

CONTENTS



Page
Group Strategic Report
 
 
1 - 3
Directors' Report
 
 
4 - 7
Independent Auditors' Report
 
 
8 - 11
Consolidated Statement of Income and Retained Earnings
 
 
12
Consolidated Balance Sheet
 
 
13
Company Balance Sheet
 
 
14
Consolidated Statement of Cash Flows
 
 
15
Consolidated Analysis of Net Debt
 
 
16
Notes to the Financial Statements
 
 
17 - 37


 
PEI-GENESIS (U.K.) LIMITED
 

GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 AUGUST 2024

Introduction
 
The directors present their strategic report for the company for the year ended 31 August 2024.

Business review
 
The results for the UK group report a pre-tax profit of £3,576,469 (2023 - pre-tax profit £3,732,931) for the year and sales of £74,270,207 (2023 - £67,619,785). The underlying pre-tax profit of £3,576,469 reflects satisfactory  results that belies the continuing problems associated with BREXIT.
The results reflect the economic activity resurgence following the pandemic and also the continuing rationalisation programme to ensure the business continues to remain resilient and agile.
The group has cash and cash equivalents at the end of the year of £2,291,417 (2023 - £2,632,358) as a result of the cash outflow of £340,941 during the year (2023 - cash outflow of £3,038,702).
The group continues to grow its business and is fully supported by its parent undertaking PEI/Genesis, Inc. by deferring £243,689 (2023 - £57,665) for repayment until 2024. Total assets exceed current liabilities by £26,786,793 (2023 - £23,904,579) maintaining liquidity to the group to combat current trading conditions and   facilitate further expansion and growth into UK and European markets.

Business Environment

The connector market is extremely competitive and the increase in sales is a testament to the group's employees, strategy and business practices and processes. Economic conditions, not least caused by BREXIT, during the past year were difficult with significant pressure on profit margins. 
The group differentiates itself from its competitors by hiring and retaining experienced and talented employees, by maintaining a large inventory of diverse components that enables it to assemble and deliver products to more customers more quickly than its competitors, by providing exceptional customer service, and by operating in diverse geographic markets.

Strategy

The group's overriding objective is to achieve attractive and sustainable rates of growth and returns through organic growth and by acquisition should the appropriate opportunity arise.
The key elements for sustained growth are: 
     
• investment in the appropriate mix and amount of inventory
• quick delivery and outstanding customer service.
• motivated and experienced sales and operations teams 
• continuous employee training and development 
      
The group carries a broad product range and works closely with such manufacturers as ITT Cannon and Amphenol. The inventory levels are significant and are required to ensure prompt delivery.
Despite the difficult economic climate during the past year, the company invested in new inventory lines and expanded its operations outside the UK.
The group continues to invest in new technology, infrastructure and business practices to ensure its success. The directors recognise that employees play a significant role in the success of the company and they continually seek to recruit and retain the best employees in order to provide outstanding customer service. Employee training also is a key determinant in the development of the group and is focussed on issues such as: health and safety, customer service, information management, product knowledge, regulatory requirement and inventory handling.

Page 1

 
PEI-GENESIS (U.K.) LIMITED
 

GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024

Principal risks and uncertainties
 
The management of the business and the execution of the group's strategy are subject to a number of risks.
Risks are formally reviewed by the board of directors and appropriate processes put in place to monitor and mitigate them. If more than one event occurs, it is possible that the overall effect of such events would compound the possible adverse effects on the company. The key business risks affecting the company are set out below.
BREXIT
The implications of the UK’s exit from the European Union are significant and include:
• Operational complexity and increased cost due to restriction on the movement of goods arising from
  stricter border controls.
• Import and export duties.
• Additional costs passed through from third party suppliers.
Inflation and recession
The continuing economic pressure being created by inflation is likely to impact the group’s ability to maintain profit margins:
• The cost-of-living crisis has been addressed with a significant increase in remuneration for employees that  will reduce margins.
• Cost of goods have increased due to supplier prices increase being pushed through on a quarterly or
  semi-annual basis.
• Operating costs, in particular energy consumption, have been affected by the increased cost in the energy  markets.
• Customers may reduce spending and thus lead to a reduction in turnover.
Conversely, in times of inflation, sales may increase temporarily as customers stockpile inventory to limit exposure to price increases and the group has been able to pass along some price increases to its customers. However, in the continuing inflationary trend, combined by aggressive action by the UK and European central banks to raise interest rates to dampen inflation, sales will generally decline if the growth in European economies stalls.
The Directors are confident that the business is well placed to weather the economic uncertainty.
COVID 19
The resurgence of the COVID 19 pandemic and another lockdown could have a further adverse impact on the group. This may result in a decrease in sales orders and also affect the supply chain. In order to mitigate this risk, the company has maintained a COVID secure workplace so that production can continue. 
Competition
The group operates in a highly competitive market particularly around price and service. This results not only in downward pressure on margins but also the risk of not meeting customers' expectations. In order to mitigate this risk, the company's sales and support teams continually monitor prices and customer satisfaction.
Employee skills and retention
The group's performance depends significantly on its general manager, sales staff and other key employees. The resignation of these individuals and the inability to recruit people with the right experience and skills from the local community could adversely impact the company's results. To mitigate these issues, the board of directors has implemented programmes and schemes to retain such key individuals including an ongoing training programme and a reward scheme.

Page 2

 
PEI-GENESIS (U.K.) LIMITED
 

GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024

Financial key performance indicators
 
The group has made significant progress on meeting the company's overriding objective (see Strategy). The group monitors the overall progress and the individual strategic elements by reference to the following KPIs.
Performance together with historical data is set out below:  
Growth in sales
Year on year sales growth expressed as a percentage. The increase in sales for 2024 is due to the resurgent economic activity after the pandemic.
Growth in sales for 2024 is 9.8% compared with a increase in sales of 26.3% for 2023.
Gross profit
Gross profit is the ratio of profit on sale of products, expressed as a percentage.
Gross profit percentage for 2024 is 25.80% compared with 24.90% for 2023. 
Inventory days
This is an expression of how many days a unit of stock is held prior to sale.
Inventory days for 2024 is 142 compared with 144 for 2023.

Other key performance indicators
 
Given the straightforward nature of the business activities, the directors are of the opinion that disclosure of any other key performance indicators is not necessary for an understanding of the results of the group.

Directors' statement of compliance with duty to promote the success of the Group
 
Mr S L Fisher is the chairman and chief executive officer of the ultimate parent undertaking: PEI/Genesis, Inc (“Ultimate Parent”) and in conjunction with his fellow directors of the UK group consider that they have responsibly and appropriately discharged their duties under the Companies Act 2006 (the “Act”), including their duty to act in the way that they consider, in good faith, will be most likely to promote the success of the UK group for the benefit of its members as a whole, having due regard in doing so for the matters set out in section 172(1)(a) to (f) in the Act (“s.172”).
Consequently, a description of how the directors have had regard to the matters set out in s.172 when performing their duty is set out in the attached Directors’ Report.


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



___________________________
S L Fisher
Director

Date: 20 December 2024

Page 3

 
PEI-GENESIS (U.K.) LIMITED
 

 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 AUGUST 2024

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

Directors' responsibilities statement

The directors are responsible for preparing the Group Strategic Report, the Directors' Report and the consolidated 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 the Group and of the profit or loss of the Group for that period.

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


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

make judgments 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 Group 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 the Group 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 the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Results and dividends

The profit for the year, after taxation, amounted to £2,709,101 (2023 - £2,776,696).

The directors do not recommend the payment of a dividend.

Directors

The directors who served during the year were:

S L Fisher 
A A Swierczynski (appointed 17 June 2024)
M R Jeram (appointed 17 June 2024)
S Findley (appointed 17 June 2024)
K J Sunderland (appointed 17 June 2024)
J Parry (resigned 30 April 2024)

Mr S L Fisher is the chairman and chief executive officer of the ultimate parent undertaking, a company that is incorporated and registered in the United States of America.

Page 4

 
PEI-GENESIS (U.K.) LIMITED
 

 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024

Future developments

Facing a continuing gloomy global economic outlook with the continuing impact of inflation implications, the group predicts modest growth in turnover and continued pressure on margins. The group has maintained certain operating and employee costs to compensate for the lower margins. Movements in the foreign exchange markets are likely to have a mixed impact upon the company. Sales into Europe could be impacted positively or negatively with the euro rate movement. However, euro and US dollar denominated purchases could provide a negative impact.
The directors are satisfied that they will maintain or improve the current level of performance in the future and continue to view the group's prospects with realistic optimism.
Accordingly, the directors have prepared these financial statements on the going concern basis due to the continuing financial and operating support provided by its' parent undertaking.
As an outcome of a group wide review and in readiness for IFRS16 being adopted by the UK Accounting Standards Board, the Company’s lease agreement was reviewed. The consequence of which has been the recognition of the dilapidations provision. The directors using their general site manager, who has undertaken the modifications of the premises, estimated a cost for the dilapidations. Whilst, at the cessation of the lease, it is arguable over the quantum of the cost as these types of settlements are negotiated, the directors understand that a provision should be recognised and appreciate that the estimation cause uncertainty and have engaged with an external professional with dilapidations expertise to undertake a full review in 2025.

Engagement with suppliers, customers and others

Engaging with customers, suppliers and employees is fundamental to how PEI does business and the directors believe that such interaction is vital to the Group’s ability to drive value creation over the longer term.

Customers: Ensuring that the customer is at the heart of the decision in enabling the Group to deliver its     strategy. With the breadth of product and expertise, the Group is able to provide relevant solutions.

Suppliers: The long-term partnerships are an important part of being able to innovate and offer new and varied solutions to customers. These strategic relationships and the supply chain are an essential part of the strategy and require close engagement with our suppliers.

Greenhouse gas emissions, energy consumption and energy efficiency action

The Group's greenhouse gas emissions and energy consumption for the year are 61.9 tonnes and 681 MWh respectively (2023 - 59.6 tonnes and 681 MWh). This is analysed as direct emissions (scope 1) of 3.8 tonnes (76 MWh) and indirect emissions from electricity of 58.1 tonnes (605 MWh) (2023 - 6.3 tonnes (126 MWh) and indirect emissions from electricity of 53.3 tonnes (555 MWh).

The group continues to seek energy efficient methodologies to reduce the carbon footprint and associated costs. Until the technology advances have settled in respect of electric vehicles company cars are hybrid vehicles.

The Group's annual emissions as 3.1 tonnes of CO2e per £m of sales revenue (2023 – 3.3 tonnes).

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 and the Group'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 and the Group's auditors are aware of that information.

Page 5

 
PEI-GENESIS (U.K.) LIMITED
 

 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024

Branches

The UK company’s branch office in Germany was incorporated and has become a wholly owned subsidiary of the company that commenced trading on 1st January 2021.

Post balance sheet events

At the date of this report there are no post balance sheet events that would impact these financial statements. 

Financial risk management

The group's operations expose it to a variety of financial risks that include the effects of foreign exchange, liquidity risk and interest rate risk and are managed by the group's financial team.
The management of these risks is conducted within a framework of policies and guidelines authorised by the board of directors of the ultimate parent undertaking and are reported periodically to the board. The group is resiliently placed to weather the adverse trading conditions.
The group's financial instruments, other than derivatives, comprise borrowings, cash and liquid resources and various items such as trade debtors and trade creditors that arise directly from its operating activities. The main purpose of the financial statements is to raise financing for the group's operations.
The group publishes its financial statements in pounds sterling and conducts business in sterling and Euros, but also in US dollars. As a result, it is subject to foreign currency exchange risk due to exchange rate movements which will affect the transaction costs and the translation of the results.
The group will also enter into derivative financial instrument such as interest rate swaps. The purpose of such transactions is to manage the interest rate risk arising from the group's operations and its sources of financing.
It is, and has been throughout the period under review, the group's policy that no trading in financial instruments shall be undertaken.
The main risks arising from the group's financial instruments are interest rate risk and liquidity risk. The board of directors reviews and agrees policies for managing each of these risks and they are summarised below.
Liquidity risk
The parent group's policy throughout the year has been to ensure continuity of funding. The credit facility was extended in November 2022 and is now renewable on 30 June 2026. The group obtains borrowing from its bankers and has been granted increased credit line availability since 2004 when it was $14 million to the current credit line of $38 million of which $9 million is capped for various non-US dollar denominated currencies. Therefore, the directors consider that liquidity risk is low.
Interest rate risk
The UK group historically financed its operations through bank borrowings and support from its parent undertaking but throughout the period under review had no bank borrowing and has reduced the support from  its parent undertaking.  The group is able to borrow in desired currencies at floating rates and use interest rate swaps to generate the desired interest rate profile and to manage the company's exposure to interest rate fluctuations. 

Auditors

The auditorsMagee Gammon Corporate Limitedwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

Page 6

 
PEI-GENESIS (U.K.) LIMITED
 

 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024

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





___________________________
S L Fisher
Director

Date: 20 December 2024

Page 7

 
PEI-GENESIS (U.K.) LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PEI-GENESIS (U.K.) LIMITED
 

Qualified opinion


We have audited the financial statements of PEI-Genesis (U.K.) Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 August 2024, which comprise the Consolidated Statement of Income and Retained Earnings, the Consolidated Balance Sheet, the Company Balance Sheet, the Consolidated Statement of Cash Flows and the related notes, including a summary of significant accounting policiesThe 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, except for the possible effects of the matter described in the basis for qualified opinion section of our report, the financial statements:


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


Basis for qualified opinion


A management estimate has been included within the financial statements regarding the dilapidation provision required at the leasehold termination date. We were unable to obtain sufficient audit evidence to determine whether the provision of £637,539 included in the balance sheet at 31 August 2024 was materially correct.  Consequently we were unable to determine whether any adjustment to this amount was necessary.


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 Group 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 Group's or the parent Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.


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


Page 8

 
PEI-GENESIS (U.K.) LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PEI-GENESIS (U.K.) 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.


As described in the basis for qualified opinion section of our report, we were unable to satisfy ourselves concerning the dilapidation provision of £637,539 recognised at 31 August 2024. We have concluded that where the other information refers to the provision balance or related balances such as leasehold improvements, it may be materially misstated for the same reason.

             
Qualified opinion on other matters prescribed by the Companies Act 2006
 

Except for the matter described in the Basis for qualified opinion on other matters prescribed by the Companies Act 2006 section of our report, in our opinion, based on the work undertaken in the course of the audit, the information given in the Group Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements.


Basis for qualified opinion on other matters prescribed by the Companies Act 2006
 

We could not obtain sufficient and appropriate evidence to satisfy ourselves that the provision included within the financial statements at the balance sheet date amounting to £637,539 is materially correct. 


Consequently we were unable to determine whether any adjustment to this amount was necessary.


Matters on which we are required to report by exception
 

Except for the matter described in the basis for qualified opinion section of our report, 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 Directors' Report.

Arising solely from the limitation on the scope of our work to provisions, referred to above:


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


adequate accounting records have not been kept by the parent Company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent Company financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


Page 9

 
PEI-GENESIS (U.K.) LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PEI-GENESIS (U.K.) LIMITED (CONTINUED)


Responsibilities of directors
 

As explained more fully in the Directors' Responsibilities Statement set out on page 4, 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 Group's and the parent Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Group or the parent Company or to cease operations, or have no realistic alternative but to do so.


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 Group 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:

Based on our understanding of the company, we have considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006.  We evaluated management incentives and opportunities for fraudulent manipulation of the financial statements including management override, and considered that the principal risk was related to the posting of inappropriate journal entries to improve the result before tax for the year.
We designed audit procedures to respond to the risk, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion.
Procedures performed by the audit team included:
• Discussions with management regarding known or suspected instances of non-compliance with laws and
 regulations;
• Evaluation of controls designed to prevent and detect irregularities; and
• Assessing journal entries as part of our planned audit approach.
There are inherent limitations in the audit procedures described above, and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it.  As in all of our audits we also addressed the risk of management override of internal controls, including testing journals and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud.


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 10

 
PEI-GENESIS (U.K.) LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PEI-GENESIS (U.K.) 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.





Andrew John Childs F.C.A (Senior Statutory Auditor)
for and on behalf of
Magee Gammon Corporate Limited
Chartered Accountants
Statutory Auditors
Henwood House
Henwood
Ashford
Kent
TN24 8DH

23 December 2024
Page 11

 
PEI-GENESIS (U.K.) LIMITED
 

CONSOLIDATED STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 AUGUST 2024

As restated
2024
2023
Note

  

Turnover
 4 
73,724,188
67,619,785

Cost of sales
  
(55,139,419)
(50,815,211)

Gross profit
  
18,584,769
16,804,574

Administrative expenses
  
(15,376,262)
(12,953,583)

Other operating income
 5 
331,612
16,818

Operating profit
 6 
3,540,119
3,867,809

Interest receivable and similar income
 10 
-
193

Interest payable and similar expenses
 11 
(194,467)
(135,071)

Profit before tax
  
3,345,652
3,732,931

Tax on profit
 12 
(636,551)
(956,235)

Profit after tax
  
£2,709,101
£2,776,696

Retained earnings
  

-  as previously stated
  
23,133,175
20,207,720

-  correction of a prior period error
  
(148,759)
-

At the beginning of the year as restated
  
22,984,416
20,207,720

  

Profit for the year attributable to the owners of the parent
  
2,709,101
2,776,696

Retained earnings at the end of the year
  
£25,693,517
£22,984,416

There were no recognised gains and losses for 2024 or 2023 other than those included in the consolidated statement of income and retained earnings.

The notes on pages 17 to 37 form part of these financial statements.

Page 12

 
PEI-GENESIS (U.K.) LIMITED
REGISTERED NUMBER: 03290190

CONSOLIDATED BALANCE SHEET
AS AT 31 AUGUST 2024

As restated
2024
2023
                                                                     Note

Fixed assets
  

Tangible assets
 14 
1,045,590
1,071,369

Current assets
  

Stocks
 16 
20,945,390
19,321,368

Debtors: amounts falling due within one year
 17 
10,044,679
9,198,351

Cash at bank and in hand
 18 
2,291,417
2,632,358

  
33,281,486
31,152,077

Creditors: amounts falling due within one year
 19 
(7,713,396)
(8,318,867)

Net current assets
  
 
 
25,568,090
 
 
22,833,210

Total assets less current liabilities
  
26,613,680
23,904,579

Provisions for liabilities
  

Deferred taxation
 21 
(75,624)
(75,624)

Other provisions
 22 
(637,539)
(637,539)

  
 
 
(713,163)
 
 
(713,163)

Net assets
  
£25,900,517
£23,191,416


Capital and reserves
  

Called up share capital 
 23 
207,000
207,000

Profit and loss account
 24 
25,693,517
22,984,416

  
£25,900,517
£23,191,416


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




___________________________
S L Fisher
Director

Date: 20 December 2024

The notes on pages 17 to 37 form part of these financial statements.

Page 13

 
PEI-GENESIS (U.K.) LIMITED
REGISTERED NUMBER: 03290190

COMPANY BALANCE SHEET
AS AT 31 AUGUST 2024

As restated
2024
2023
                                                                     Note

Fixed assets
  

Tangible assets
 14 
1,040,699
1,064,892

Investments
 15 
146,073
146,074

  
1,186,772
1,210,966

Current assets
  

Stocks
 16 
20,940,870
19,319,075

Debtors: amounts falling due within one year
 17 
9,085,677
8,451,771

Cash at bank and in hand
 18 
2,072,215
2,412,638

  
32,098,762
30,183,484

Creditors: amounts falling due within one year
 19 
(9,132,773)
(8,813,203)

Net current assets
  
 
 
22,965,989
 
 
21,370,281

Total assets less current liabilities
  
24,152,761
22,581,247

  

Provisions for liabilities
  

Deferred taxation
 21 
(75,624)
(75,624)

Other provisions
  
(637,539)
(637,539)

  
 
 
(713,163)
 
 
(713,163)

Net assets
  
£23,439,598
£21,868,084


Capital and reserves
  

Called up share capital 
 23 
207,000
207,000

Profit and loss account
 24 
23,232,598
21,661,084

  
£23,439,598
£21,868,084


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 


___________________________
S L Fisher
Director

Date: 20 December 2024

The notes on pages 17 to 37 form part of these financial statements.

Page 14

 
PEI-GENESIS (U.K.) LIMITED
 

CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 AUGUST 2024

As restated
2024
2023

Cash flows from operating activities

Profit for the financial year
2,709,101
2,776,696

Adjustments for:

Depreciation of tangible assets
174,107
274,218

Loss on disposal of tangible assets
2,928
9,023

Interest paid
194,467
135,071

Interest received
-
(193)

Taxation charge
636,551
956,235

(Increase) in stocks
(1,624,021)
(5,705,313)

(Increase) in debtors
(846,329)
(1,849,455)

Decrease/(increase) in amounts owed by groups
-
(155,554)

Increase in creditors
802,662
161,024

(Decrease)/increase in amounts owed to groups
(1,390,543)
1,428,583

Increase in provisions
-
637,539

Corporation tax (paid)
(654,141)
(790,636)

Net cash generated from operating activities

4,782
(2,122,762)


Cash flows from investing activities

Purchase of tangible fixed assets
(154,970)
(782,338)

Sale of tangible fixed assets
3,714
1,276

Interest received
-
193

Net cash from investing activities

(151,256)
(780,869)

Cash flows from financing activities

Interest paid
(194,467)
(135,071)

Net cash used in financing activities
(194,467)
(135,071)

Net (decrease) in cash and cash equivalents
(340,941)
(3,038,702)

Cash and cash equivalents at beginning of year
2,632,358
5,671,060

Cash and cash equivalents at the end of year
£2,291,417
£2,632,358


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
2,291,417
2,632,358

£2,291,417
£2,632,358


The notes on pages 17 to 37 form part of these financial statements.

Page 15

 
PEI-GENESIS (U.K.) LIMITED
 

CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 AUGUST 2024




At 1 September 2023
Cash flows
At 31 August 2024



Cash at bank and in hand

2,632,358

(340,941)

2,291,417


£2,632,358
£(340,941)
£2,291,417

The notes on pages 17 to 37 form part of these financial statements.

Page 16

 
PEI-GENESIS (U.K.) LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024

1.


General information

PEI-Genesis (U.K.) Limited is a private company limited by shares incorporated in England and Wales. 
The address of its registered office is Henwood House, Henwood, Ashford, Kent, TN24 8DH. 
The address of the principal place of business is George Curl Way, Southampton, Hampshire, SO18 2RZ.
The registered number of the company is 03290190.
The principal activity of the company is that of the supply and production of harsh environment connectors.

2.Accounting policies

 
2.1

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 Group management to exercise judgment in applying the Group's accounting policies (see note 3).

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Income and Retained Earnings in these financial statements.

The following principal accounting policies have been applied:

 
2.2

Basis of consolidation

The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Balance Sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated Statement of Income and Retained Earnings from the date on which control is obtained. They are deconsolidated from the date control ceases.
In accordance with the transitional exemption available in FRS 102, the Group has chosen not to retrospectively apply the standard to business combinations that occurred before the date of transition to FRS 102, being 01 September 2014.

Page 17

 
PEI-GENESIS (U.K.) LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024

2.Accounting policies (continued)

 
2.3

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 Consolidated Statement of Income and Retained Earnings within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.

On consolidation, the results of overseas operations are translated into Sterling at rates approximating to those ruling when the transactions took place. All assets and liabilities of overseas operations are translated at the rate ruling at the reporting date. Exchange differences arising on translating the opening net assets at opening rate and the results of overseas operations at actual rate are recognised in other comprehensive income.

Page 18

 
PEI-GENESIS (U.K.) LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024

2.Accounting policies (continued)

 
2.4

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
the Group has transferred the significant risks and rewards of ownership to the buyer;
the Group retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of revenue can be measured reliably;
it is probable that the Group will receive the consideration due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
the amount of revenue can be measured reliably;
it is probable that the Group will receive the consideration due under the contract;
the stage of completion of the contract at the end of the reporting period can be measured reliably; and
the costs incurred and the costs to complete the contract can be measured reliably.

 
2.5

Operating leases: the Group 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.

 
2.6

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
2.7

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.8

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

Page 19

 
PEI-GENESIS (U.K.) LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024

2.Accounting policies (continued)

 
2.9

Pensions

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays 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 the Statement of Comprehensive Income 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

Current and deferred 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 and the Group operate and generate 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;
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met; and
Where they relate to timing differences in respect of interests in subsidiaries, associates, branches and joint ventures and the Group can control the reversal of the timing differences and such reversal is not considered probable in the foreseeable future.

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.

 
2.11

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

 
PEI-GENESIS (U.K.) LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024

2.Accounting policies (continued)


2.11
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 basis and the reducing balance basis.

Depreciation is provided on the following basis:

Leasehold improvements
-
over period of the lease
Motor vehicles
-
33% straight line basis
Fixtures, fittings and equipment
-
25% reducing balance basis

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.

 
2.12

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

Investments in unlisted Group shares, whose market value can be reliably determined, are remeasured to market value at each balance sheet date. Gains and losses on remeasurement are recognised in the Consolidated Statement of Income and Retained Earnings for the period. Where market value cannot be reliably determined, such investments are stated at historic cost less impairment.

  
2.13

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 weighted average basis. Work in progress and finished goods include labour and attributable overheads.
At each balance sheet date, stocks are assessed for impairment: obsolescence, slow moving and defective items where appropriate. 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.

 
2.14

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.

 
2.15

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 Consolidated 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 Group's cash management.

Page 21

 
PEI-GENESIS (U.K.) LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024

2.Accounting policies (continued)

 
2.16

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.

 
2.17

Holiday pay accrual

A liability is recognised to the extent of any unused holiday pay entitlement which is accrued at the balance sheet date and carried forward to future periods. This is measured at the undiscounted salary cost of the future holiday entitlement so accrued at the balance sheet date.

 
2.18

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
 
Increases in provisions are generally charged as an expense to profit or loss.

 
2.19

Financial instruments

The Group has elected to apply the provisions of Section 11 “Basic Financial Instruments” 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, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.

Discounting is omitted where the effect of discounting is immaterial. The Group's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.

Impairment of financial assets

Financial assets are assessed for indicators of impairment at each reporting date. 

Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.

If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying
Page 22

 
PEI-GENESIS (U.K.) LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024

2.Accounting policies (continued)


2.19
Financial instruments (continued)

amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.

Financial liabilities

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

Basic financial liabilities, which include trade and other payables, bank loans, other loans and loans due to fellow group companies are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial.

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

Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.

Other financial instruments

Derivatives, including forward exchange contracts, futures contracts and interest rate swaps, are not classified as basic financial instruments. These are initially recognised at fair value on the date the derivative contract is entered into, with costs being charged to the profit or loss. They are subsequently measured at fair value with changes in the profit or loss.

Debt instruments that do not meet the conditions as set out in FRS 102 paragraph 11.9 are subsequently measured at fair value through the profit or loss. This recognition and measurement would also apply to financial instruments where the performance is evaluated on a fair value basis as with a documented risk management or investment strategy.

Derecognition of financial instruments

Derecognition of financial assets

Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Group transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Group will continue to recognise the value of the portion of the risks and rewards retained.

Derecognition of financial liabilities

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

Page 23

 
PEI-GENESIS (U.K.) LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024

3.


Judgements in applying accounting policies and key sources of estimation uncertainty

In the application of the accounting policies, which are described in note 2, management are required to make judgements, estimates and assumptions about carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
The key sources of estimation uncertainty that have a significant effect on the amounts recognised in the financial statements are described below:
Depreciation and residual values
The directors have reviewed the useful economic life and associated residual values for all classes of fixed assets and have concluded that asset lives and residual values are appropriately reflected.
Land and building carrying values
Land and buildings include management's estimate of the dilapidation expenditure due at the lease termination date, recognised at the obligating event, and depreciated to a NIL residual value over the term of the lease.
Inventory obsolescence
Inventory is continually reviewed for signs of obsolescence and slow moving stocks. 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.
Dilapidation provisions
Dilapidation provisions are recognised at the present value of management's estimated leasehold dilapidation expenditure at the lease termination date. 


4.


Turnover

An analysis of turnover by class of business is as follows:


2024
2023

Sales
72,827,668
66,835,229

Freight Income
896,520
784,556

£73,724,188
£67,619,785


Analysis of turnover by country of destination:

2024
2023

United Kingdom
12,521,555
11,559,329

Rest of Europe
40,974,987
34,338,124

Rest of the world
20,227,646
21,722,332

£73,724,188
£67,619,785


Page 24

 
PEI-GENESIS (U.K.) LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024

5.


Other operating income

2024
2023

Other operating income
331,612
16,818

£331,612
£16,818



6.


Operating profit

The operating profit is stated after charging:

2024
2023

Depreciation of tangible fixed assets
131,603
125,458

Loss on asset disposal
2,928
9,023

(Gain)/loss on currency exchange
171,458
150,858

Unrealised (loss)/gain on foreign currency exchange
95,191
502,582

Other operating lease rentals
675,223
685,997

Defined contribution pension cost
£335,596
£252,296


7.


Auditors' remuneration

During the year, the Group obtained the following services from the Company's auditors and their associates:


2024
2023

Fees payable to the Company's auditors and their associates for the audit of the consolidated and parent Company's financial statements
42,000
40,000

Fees payable to the Company's auditors and their associates in respect of:

All non-audit services
34,100
23,040

Page 25

 
PEI-GENESIS (U.K.) LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024

8.


Employees

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


Group
Group
Company
Company
2024
2023
2024
2023


Wages and salaries
8,031,074
6,633,246
7,592,726
6,212,507

Social security costs
932,181
765,400
841,230
675,486

Cost of defined contribution scheme
290,082
252,296
288,989
251,185

£9,253,337
£7,650,942
£8,722,945
£7,139,178


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



Group
Group
Company
Company
        2024
        2023
        2024
        2023
            No.
            No.
            No.
            No.









Administration and support
26
39
26
32



Production
121
117
121
117



Sales
40
25
33
25



Directors
2
2
2
2

189
183
182
176


9.


Directors' remuneration

2024
2023

Directors' emoluments
818,349
398,635

Group contributions to defined contribution pension schemes
19,649
5,874

£837,998
£404,509


During the year retirement benefits were accruing to 4 directors (2023 - 1) in respect of defined contribution pension schemes.

The highest paid director received remuneration of £611,443 (2023 - £402,402).

The value of the Group's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £11,041 (2023 - £5,874).

Page 26

 
PEI-GENESIS (U.K.) LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024

10.


Interest receivable

2024
2023


Other interest receivable
-
193

£-
£193


11.


Interest payable and similar expenses

2024
2023


Group interest payable
194,467
134,931

Other interest payable
-
140

£194,467
£135,071


12.


Taxation


2024
2023

Corporation tax


Current tax on profits for the year
533,086
619,868

Foreign tax


Foreign tax on income for the year
103,465
336,367

Total current tax
£636,551
£956,235

Deferred tax

Total deferred tax
£-
£-


Taxation on profit on ordinary activities
£636,551
£956,235
Page 27

 
PEI-GENESIS (U.K.) LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024
 
12.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is lower than (2023 - higher than) the standard rate of corporation tax in the UK of 25% (2023 - 21.5%). The differences are explained below:

2024
2023


Profit on ordinary activities before tax
£3,345,652
£3,856,271


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 21.5%)
836,413
802,580

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
7,492
2,978

Capital allowances for year in excess of depreciation
(520)
21,026

Short term timing difference leading to an increase (decrease) in taxation
-
3,672

Other timing differences leading to an increase (decrease) in taxation
-
24,459

Foreign tax payments
(206,834)
101,520

Total tax charge for the year
£636,551
£956,235


Factors that may affect future tax charges

There were no factors that may affect future tax charges.


13.


Parent company profit for the year

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Income and Retained Earnings in these financial statements. The profit after tax of the parent Company for the year was £1,571,369 (2023 - £2,019,860).

Page 28

 
PEI-GENESIS (U.K.) LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024

14.


Tangible fixed assets

Group






Land and buildings
Fixtures, fittings and equipment
Total



Cost or valuation


At 1 September 2023 (as previously stated)
667,510
2,799,022
3,466,532


Prior Year Adjustment
637,539
-
637,539


At 1 September 2023 (as restated)
1,305,049
2,799,022
4,104,071


Additions
38,746
116,224
154,970


Disposals
-
(20,307)
(20,307)



At 31 August 2024

1,343,795
2,894,939
4,238,734



Depreciation


At 1 September 2023 (as previously stated)
484,553
2,399,390
2,883,943


Prior Year Adjustment
148,759
-
148,759


At 1 September 2023 (as restated)
633,312
2,399,390
3,032,702


Charge for the year on owned assets
60,713
113,393
174,106


Disposals
-
(13,664)
(13,664)



At 31 August 2024

694,025
2,499,119
3,193,144



Net book value



At 31 August 2024
£649,770
£395,820
£1,045,590



At 31 August 2023 (as restated)
£671,737
£399,632
£1,071,369

Page 29

 
PEI-GENESIS (U.K.) LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024

           14.Tangible fixed assets (continued)


Company






Land and buildings
Fixtures and fittings
Total

Cost or valuation


At 1 September 2023 (as previously stated)
667,510
2,790,105
3,457,615


Prior Year Adjustment

637,539
-
637,539


At 1 September 2023 (as restated)
1,305,049
2,790,105
4,095,154


Additions
38,746
116,224
154,970


Disposals
-
(20,307)
(20,307)



At 31 August 2024

1,343,795
2,886,022
4,229,817



Depreciation


At 1 September 2023 (as previously stated)
484,553
2,396,950
2,881,503


Prior Year Adjustment

148,759
-
148,759


At 1 September 2023 (as restated)
633,312
2,396,950
3,030,262


Charge for the year on owned assets
60,713
111,807
172,520


Disposals
-
(13,664)
(13,664)



At 31 August 2024

694,025
2,495,093
3,189,118



Net book value



At 31 August 2024
£649,770
£390,929
£1,040,699



At 31 August 2023 (as restated)
£671,737
£393,155
£1,064,892

The net book value of land and buildings comprise of long leasehold property totalling £649,770 (2023 - £671,737).






Page 30

 
PEI-GENESIS (U.K.) LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024

15.


Fixed asset investments

Company





Investments in subsidiary companies



Cost or valuation


At 1 September 2023
147,763



At 31 August 2024

147,763



Impairment


At 1 September 2023
1,689



At 31 August 2024

1,689



Net book value



At 31 August 2024
£146,074



At 31 August 2023
£146,074


Subsidiary undertakings


The following were subsidiary undertakings of the Company:

Name

Class of shares

Holding

PEI Genesis Germany GmbH
Ordinary
100%
PEI Genesis Turkey Konnektör Ticaret Limited Sirketi
Ordinary
100%

The principal place of business of the German subsidiary undertaking is Fellbacher Strasse 115, Fellbach-Schmiden, 70736 Germany.
The principal place of business of the Turkish subsidiary undertaking is Karaagac Cad No 116, Altinboynuz Plaza D 11, 34445 Sutluce-Beyoglu, Istanbul,Turkey.

The aggregate of the share capital and reserves as at 31 August 2024 and the profit or loss for the year ended on that date for the subsidiary undertakings were as follows:

Name
Aggregate of share capital and reserves
Profit/
(Loss)

PEI Genesis Germany GmbH
2,694,411
1,137,732

PEI Genesis Turkey Konnektör Ticaret Limited Sirketi
-
-

Page 31

 
PEI-GENESIS (U.K.) LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024

16.


Stocks

Group
Group
Company
Company
2024
2023
2024
2023

Finished goods and goods for resale
20,945,390
19,321,368
20,940,870
19,319,075

£20,945,390
£19,321,368
£20,940,870
£19,319,075


The carrying value of stocks are stated net of impairment losses totalling £281,154 (2023 - £807,295). Impairment reversals totalling  £526,141 (2023 - £394,724 impairment losses) were recognised in profit and loss.


17.


Debtors

Group
Group
Company
Company
2024
2023
2024
2023


Trade debtors
9,674,145
8,592,028
8,889,420
7,876,781

Other debtors
201,795
433,271
30,248
418,790

Prepayments and accrued income
168,739
173,052
166,009
156,200

£10,044,679
£9,198,351
£9,085,677
£8,451,771



18.


Cash and cash equivalents

Group
Group
Company
Company
2024
2023
2024
2023

Cash at bank and in hand
2,291,417
2,632,358
2,072,215
2,412,638

£2,291,417
£2,632,358
£2,072,215
£2,412,638



19.


Creditors: Amounts falling due within one year

Group
Group
Company
Company
2024
2023
2024
2023

Trade creditors
4,065,263
3,385,509
4,047,774
3,371,895

Amounts owed to group undertakings
1,728,088
3,118,631
3,435,239
4,083,699

Corporation tax
623,751
641,342
404,814
306,362

Other taxation and social security
150,880
207,671
150,880
156,840

Accruals and deferred income
1,145,414
965,714
1,094,066
894,407

£7,713,396
£8,318,867
£9,132,773
£8,813,203


Page 32

 
PEI-GENESIS (U.K.) LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024

20.


Financial instruments

Group
Group
Company
Company
2024
2023
2024
2023

Financial assets

Financial assets measured at fair value through profit or loss
2,291,417
2,632,358
2,072,215
2,412,638

Financial assets that are debt instruments measured at amortised cost
10,421,876
8,610,310
9,605,982
7,881,683

£12,713,293
£11,242,668
£11,678,197
£10,294,321


Financial liabilities

Financial liabilities measured at amortised cost
(5,616,520)
(6,504,140)
(7,306,182)
(7,455,594)

£(5,616,520)
£(6,504,140)
£(7,306,182)
£(7,455,594)

Financial assets and other financial liabilities measured at fair value through profit or loss comprise cash at bank and in hand.
Financial assets that are debt instruments measured at amortised cost comprise trade debtors and other debtors.
Financial liabilities measured at amortised cost comprise bank loans, trade creditors and amounts owed to group undertakings.

Page 33

 
PEI-GENESIS (U.K.) LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024

21.


Deferred taxation


Group



2024
2023





At beginning of year
75,624
75,624



At end of year
£75,624
£75,624

Company


2024
2023









At beginning of year
75,624
75,624



At end of year
£75,624
£75,624

Group
Group
Company
Company
2024
2023
2024
2023

Accelerated capital allowances
75,624
75,624
75,624
75,624

£75,624
£75,624
£75,624
£75,624


22.


Provisions


Group and Company



Other provision





At 1 September 2023
637,539



At 31 August 2024
£637,539

All of the Group's provisions are held in the Parent Company.
Other provisions represent dilapidation obligations arising from leasehold properties. The amount recognised is management's estimate of associated expenditure at the end of the lease term discounted to present value. The earliest full outflow is expected is 2030.

Page 34

 
PEI-GENESIS (U.K.) LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024

23.


Share capital

2024
2023
Allotted, called up and fully paid



105,570 (2023 - 105,570) "A" ordinary shares of £1.00 each
105,570
105,570
101,430 (2023 - 101,430) "B" ordinary shares of £1.00 each
101,430
101,430

£207,000

£207,000


The "A" and "B" ordinary shares rank pari passu.



24.


Reserves

Profit and loss account

Includes all current and prior period retained profit and losses.


25.


Prior year adjustment

An adjustment of the prior year financial statements has been recognised for provisions to reinstate leasehold properties at the end of their leases. The impact of the adjustment is set out below:


Profit after tax as previously stated
2,925,455 

Depreciation on provision recognised
(148,759)

Restated profit after tax
£2,776,696 




Retained earnings as previously reported
23,133,175 

Restatement of comparatives
(148,759)

Restated retained earnings
£22,984,416 




Net assets as previously reported 
23,340,175 

Depreciation on provision recognised 
(148,759)

Recognition of provision in fixed assets
637,539 

Recognition of provision
(637,539)

Restated net assets
£23,191,416 




26.


Contingent liabilities

At 31 August 2024, the Company co-guaranteed various revolving loan facilities issued by certain fellow subsidiaries and the ultimate parent undertaking, PEI/Genesis, Inc. which amounted to $47 million (2023 - $47 million).

Page 35

 
PEI-GENESIS (U.K.) LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024

27.


Pension commitments

The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £290,082 (2023 - £252,296). Contributions totalling £34,259 (2023 - £45,657) were payable to the fund at the balance sheet date.


28.


Commitments under operating leases

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


Group
Group
Company
Company
2024
2023
2024
2023

Land and Buildings

Not later than 1 year
603,539
607,006
571,541
575,000

Later than 1 year and not later than 5 years
2,371,074
2,406,960
2,275,000
2,277,791

Later than 5 years
253,990
822,740
253,990
822,740

£3,228,603
£3,836,706
£3,100,531
£3,675,531

Group
Group
Company
Company
2024
2023
2024
2023

Other

Not later than 1 year
110,523
61,059
93,395
43,931

Later than 1 year and not later than 5 years
84,019
63,266
82,592
44,711

£194,542
£124,325
£175,987
£88,642

Page 36

 
PEI-GENESIS (U.K.) LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024

29.


Related party transactions

Key management personnel:
Key management personnel are defined as those who have authority and responsibility for planning, directing and controlling the activities of the group and the company. The benefits and compensation paid in respect of key management personnel is as follows:

Group
Group
Company
Company
2024
2023
2024
2023


Staff costs
1,268,765
1,028,505
1,268,765
1,028,505

£1,268,765
£1,028,505
£1,268,765
£1,028,505


30.
Controlling party

At the balance sheet date, the immediate parent undertaking is PEI/Genesis, Inc., a company incorporated in the United States of America. 
Mr S L Fisher is the controlling party of the company.
The parent undertaking of the smallest group to consolidate their financial statements is PEI/Genesis, Inc., a company incorporated in the United States of America. The registered office of the company is 2180 Hornig Road, Philadelphia, PA 19116, USA.
The parent undertaking of the largest group to consolidate these financial statements is PEI/Genesis, Inc., a company incorporated in the United States of America. The registered address of the company is 2180 Hornig Road, Philadelphia, PA 19116, USA.
The ultimate parent undertaking is PEI/Genesis, Inc., a company incorporated in the United States of America.
PEI/Genesis, Inc. is the ultimate controlling party of the company. The controlling party of the parent undertaking is Mr S L Fisher.



Page 37