| REGISTERED NUMBER: 05519499 (England and Wales) |
| Group Strategic Report, Report of the Directors and |
| Consolidated Financial Statements for the Year Ended 31 December 2024 |
| for |
| Picow Engineering Group Ltd. |
| REGISTERED NUMBER: 05519499 (England and Wales) |
| Group Strategic Report, Report of the Directors and |
| Consolidated Financial Statements for the Year Ended 31 December 2024 |
| for |
| Picow Engineering Group Ltd. |
| Picow Engineering Group Ltd. (Registered number: 05519499) |
| Contents of the Consolidated Financial Statements |
| for the Year Ended 31 December 2024 |
| Page |
| Company Information | 1 |
| Group Strategic Report | 2 |
| Report of the Directors | 5 |
| Report of the Independent Auditors | 7 |
| Consolidated Income Statement | 11 |
| Consolidated Other Comprehensive Income | 12 |
| Consolidated Balance Sheet | 13 |
| Company Balance Sheet | 14 |
| Consolidated Statement of Changes in Equity | 15 |
| Company Statement of Changes in Equity | 16 |
| Consolidated Cash Flow Statement | 17 |
| Notes to the Consolidated Cash Flow Statement | 18 |
| Notes to the Consolidated Financial Statements | 19 |
| Picow Engineering Group Ltd. |
| Company Information |
| for the Year Ended 31 December 2024 |
| DIRECTORS: |
| SECRETARY: |
| REGISTERED OFFICE: |
| REGISTERED NUMBER: |
| SENIOR STATUTORY AUDITOR: | Janine Boyo BFP FCA MAAT |
| AUDITORS: |
| 8 Winmarleigh Street |
| Warrington |
| Cheshire |
| WA1 1JW |
| Picow Engineering Group Ltd. (Registered number: 05519499) |
| Group Strategic Report |
| for the Year Ended 31 December 2024 |
| The directors present their strategic report of the company and the group for the year ended 31 December 2024. |
| BUSINESS SERVICES OVERVIEW |
| Picow Engineering Group Ltd are one of the most prominent medium sized construction, mechanical and electrical contractors in the UK. Now approaching 50 years old, we pride ourselves on our unwavering commitment to engineering excellence and customer satisfaction. This enables us to achieve repeat business consistently, which is the foundation from which we continue to grow. With our head office located in Runcorn, Cheshire, our purpose-built facilities serve as a central hub for all our service divisions and satellite offices. With a dedicated team of more than 160 skilled professionals and a thoroughly vetted supply chain, we extend our services nationwide, catering to projects ranging from a few thousand pounds to millions of pounds, utilising one or all of our service capabilities catered to suit our clients exacting needs. |
| Our expertise enables us to provide a wide range of services, including individualised solutions or comprehensive project management. With a focus on your specific objectives, we meticulously design and oversee projects from inception to completion. |
| Working across multiple heavily regulated sectors such as Water & Utilities, Pharmaceutical, Petro-chem, Rail, Chemical, Food & Beverage, Automotive and various other industrial and commercial fields, our capabilities are diverse and extensive and will remain that way to ensure that changing market conditions in one particular sector cannot significantly impact our business as a whole. |
| REVIEW OF BUSINESS |
| The directors are delighted to report that 2024 was another very positive year whereby we were able to maintain significant growth initially experienced in 2023 and in line with our strategic planning towards ensuring that growth in the business is sustainable. 2024 saw turnover at £22.1m compared to 2023 at £21.9m. We have the same belief again as we move into 2025 where the directors expect a fair increase again. This is achievable through serving more repeat business clients, some of which are new, where we have managed to secure incumbent site status. |
| We are equally delighted to report very healthy profit margins and an increase in shareholder funds from £3.6m to £4.1m to help support our growth plans and reduce our commercial risk. |
| The directors continue to work to ensure that the group operates to the highest standards, adopting all industry guidelines and good working practices. We are currently working to refine our internal management systems, where we have adopted proprietary and bespoke software packages to help organise the business and provide directors and senior managers with greater visibility. These systems are proving very effective now in helping us to manage our ISO compliance and demonstrate that the business is meeting all key clauses of the standards. |
| Big investment in the training of all staff and the work to attract the right people continues to be critical to facilitate the controlled growth of our business. The work completed during performance training and that around our core values was a particular success during 2024 and remains at the forefront of our plans moving forward. It is vitally important that all people within our organisation understand what Picow stands for and how they must act as one, in line with the companies' best interests. |
| We as directors continue to maintain a tight control on margins and commercial terms as clients become more cost conscious with increased material and labour costs. |
| Picow Engineering Group Ltd. (Registered number: 05519499) |
| Group Strategic Report |
| for the Year Ended 31 December 2024 |
| 2025 PROSPECTS |
| Moving into 2025, we continue to place an emphasis on training to increase or maintain the performance of our employees. We are looking at a campaign to help further drive our values to all areas of the business in a consistent way to all employees and clients. The sustainable development of our mechanical and constructions services remains key and as seen in recent years with our mechanical offering, we are expecting 2025 to yield significant growth in our construction services. |
| With significant skills shortages in the industry, Picow will place, as always a huge importance on the development of apprentices and will be taking on a number off apprentices across our service capabilities. |
| In line with our business strategy, we will continue to build our cash reserves to support our growth plans. |
| KEY PERFORMANCE INDICATORS |
| The directors monitor progress with reference to the following key performance indicators: |
| 2024 | 2023 | Definition and method of calculation |
Gross Profit as a % of turnover |
25.70% |
26.36% |
Profit before administration and exceptional costs. |
Liquidity ratio |
183.88% |
143.39% |
Current assets divided by current liabilities. |
| Average Debtor Days | 93 Days | 97 Days | Average time taken for debtor payments |
| Picow Engineering Group Ltd. (Registered number: 05519499) |
| Group Strategic Report |
| for the Year Ended 31 December 2024 |
| PRINCIPAL RISKS AND UNCERTAINTIES |
| The following are the principal risks identified by the directors and the measures taken to address them. |
| People |
| The retention and recruitment of staff is a key challenge for the business. Defined recruitment and retention policies exist centrally and are managed to ensure the company is competitive and attracts the best candidates. An emphasis on cultivating in-house talent and bringing in the right people that match our values is of utmost importance to ensure high retention of the best people |
| Health & Safety |
| The company has further enhanced the attention it gives to health and safety investing heavily to ensure performance remains excellent in this critical area. The company operates an Occupational Health & Safety Management System that is certified to the ISO 45001:2018 standard. Further work is being carried out to ensure and allow the business to easily demonstrate compliance. Further investment is being made in the development of our health and safety department with additional personnel and training. |
| Performance |
| The company is continually reviewing procedures and systems to ensure the work performed is of the highest quality. The company is ISO 9001 accredited, and is regularly audited to ensure compliance. Further work is being carried out to ensure and allow the business to easily demonstrate compliance. Further investment is being made in the development of systems to effectively manage the company in line with our management procedures ensuring that there is clear responsibility, accountability and visibility throughout the business. |
| Environmental |
| The company demonstrates its commitment to the environment through its Environmental Management System which is certified to ISO 14001:2015. As with performance and Health & Safety, further work is being undertaken to demonstrate continual improvement and to ensure compliance in the area. We are developing our realistic net zero carbon goals and we hope to have them published in the very near future. |
| Accreditations |
| The company is also accredited by NICEIC and ECA to perform electrical engineering and RISQS certification to allow railway maintenance work. We are members of BESA and the JIB as a commitment to our employees and the wider industry. |
| Financial |
| The company's principal financial liabilities are trade creditors and trade accruals. The company's principal financial assets are bank balances, work in progress and trade debtors. |
| The financial liabilities and assets are controlled by the directors to ensure sufficient funds are available for the company to meet its business needs. The financial liabilities and assets are stated at fair value and after allowance for doubtful receivables. |
| ON BEHALF OF THE BOARD: |
| Picow Engineering Group Ltd. (Registered number: 05519499) |
| Report of the Directors |
| for the Year Ended 31 December 2024 |
| The directors present their report with the financial statements of the company and the group for the year ended 31 December 2024. |
| DIVIDENDS |
| During the year dividends £782,000 (2023 £0) were paid. |
| DIRECTORS |
| The directors shown below have held office during the whole of the period from 1 January 2024 to the date of this report. |
| POLITICAL DONATIONS AND EXPENDITURE |
| During the year the company made various donations to a number of charities. The total donations in the year were £16,345, (2023 : £21,625). No donations or expenditure have been incurred in respect of a political nature. |
| DISCLOSURE IN THE STRATEGIC REPORT |
| As permitted by the Large and Medium Sized Companies and Groups (Accounts and Reports) Regulation 2008, certain matters which are required to be disclosed in the Directors' report have been omitted as they are included in the Strategic Report. These matters relate to the principal risks and uncertainties that it faces and future developments. |
| STATEMENT OF DIRECTORS' RESPONSIBILITIES |
| The directors are responsible for preparing the Group Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
| Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and 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 and then apply them consistently; |
| - | make judgements and accounting estimates that are reasonable and prudent; |
| - | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
| The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
| STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
| So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
| Picow Engineering Group Ltd. (Registered number: 05519499) |
| Report of the Directors |
| for the Year Ended 31 December 2024 |
| AUDITORS |
| A resolution proposing the re-appointment of Voisey & Co LLP will be proposed at the forthcoming Annual General Meeting. |
| ON BEHALF OF THE BOARD: |
| Report of the Independent Auditors to the Members of |
| Picow Engineering Group Ltd. (Registered number: 05519499) |
| Opinion |
| We have audited the financial statements of Picow Engineering Group Ltd. (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2024 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
| In our opinion the financial statements: |
| - | give a true and fair view of the state of the group's and of the parent company affairs as at 31 December 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 opinion |
| We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
| Conclusions relating to going concern |
| In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
| Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and 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. |
| Other information |
| The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
| 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. |
| In connection with our audit of the financial statements, 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 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 the audit: |
| - | the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
| - | the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
| Report of the Independent Auditors to the Members of |
| Picow Engineering Group Ltd. (Registered number: 05519499) |
| 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 its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors. |
| We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
| - | adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
| - | the parent company financial statements are not in agreement with the accounting records and returns; or |
| - | certain disclosures of directors' remuneration specified by law are not made; or |
| - | we have not received all the information and explanations we require for our audit. |
| Responsibilities of directors |
| As explained more fully in the Statement of Directors' Responsibilities set out on page five, 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 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. |
| Report of the Independent Auditors to the Members of |
| Picow Engineering Group Ltd. (Registered number: 05519499) |
| 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 a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
| The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
| 1 - We enquired of management and those charged with governance about actual and potential litigation and claims, including review of relevant nominal ledger accounts. |
| 2 - We obtained an understanding of laws, regulations and guidance that affect the Company, focusing on those that had a direct effect on the financial statements or that had a fundamental effect on its operations. Key laws, regulations and guidance that we identified included the Companies Act 2006, health and safety legislation and employment legislation. |
| 3 - We enquired of management and those charged with governance to identify any instances of non-compliance with laws and regulations. We also reviewed meeting minutes for evidence of non-compliance with relevant laws and regulations. |
| 4 - We reviewed the Company's financial statement disclosures and agreed to supporting documentation to assess compliance with the applicable laws and regulations discussed above. |
| 5 - We gained an understanding of the controls that management have in place to prevent and detect fraud. We enquired of management about any incidences of fraud that had taken place during the accounting period. |
| 6 - The risk of fraud and non-compliance with laws and regulations was discussed within the audit team and tests were planned and performed to address these risks. |
| 7 - In addressing the risk of fraud due to management override of controls, we performed testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias. |
| 8 - We also challenge management assumptions with regard to accounting estimates. |
| Despite appropriate planning and performing our work in accordance with International Auditing Standards, there are always inherent limitations that non-compliance is not detected. Non-compliance with laws and regulations is often further removed from the events and transactions reflected in the financial statements and material misstatements due to fraud can be deliberately concealed from auditors, for example through misrepresentation, forgery or collusion. |
| 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 Report of the Auditors. |
| Report of the Independent Auditors to the Members of |
| Picow Engineering Group Ltd. (Registered number: 05519499) |
| 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 a Report of the Auditors 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. |
| for and on behalf of |
| 8 Winmarleigh Street |
| Warrington |
| Cheshire |
| WA1 1JW |
| Picow Engineering Group Ltd. (Registered number: 05519499) |
| Consolidated |
| Income Statement |
| for the Year Ended 31 December 2024 |
| 31.12.24 | 31.12.23 |
| Notes | £ | £ |
| TURNOVER | 3 | 22,097,176 | 21,865,310 |
| Cost of sales | (16,417,876 | ) | (16,102,033 | ) |
| GROSS PROFIT | 5,679,300 | 5,763,277 |
| Administrative expenses | (3,926,119 | ) | (4,280,676 | ) |
| 1,753,181 | 1,482,601 |
| Other operating income | 7,642 | 2,807 |
| OPERATING PROFIT | 5 | 1,760,823 | 1,485,408 |
| Interest receivable and similar income | 265,519 | - |
| 2,026,342 | 1,485,408 |
| Interest payable and similar expenses | 6 | (201,451 | ) | (200,000 | ) |
| PROFIT BEFORE TAXATION | 1,824,891 | 1,285,408 |
| Tax on profit | 7 | (544,690 | ) | (377,201 | ) |
| PROFIT FOR THE FINANCIAL YEAR |
| Profit attributable to: |
| Owners of the parent | 1,280,201 | 908,207 |
| Picow Engineering Group Ltd. (Registered number: 05519499) |
| Consolidated |
| Other Comprehensive Income |
| for the Year Ended 31 December 2024 |
| 31.12.24 | 31.12.23 |
| Notes | £ | £ |
| PROFIT FOR THE YEAR | 1,280,201 | 908,207 |
| OTHER COMPREHENSIVE INCOME | - | - |
| TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
1,280,201 |
908,207 |
| Total comprehensive income attributable to: |
| Owners of the parent | 1,280,201 | 908,207 |
| Picow Engineering Group Ltd. (Registered number: 05519499) |
| Consolidated Balance Sheet |
| 31 December 2024 |
| 31.12.24 | 31.12.23 |
| Notes | £ | £ | £ |
| FIXED ASSETS |
| Intangible assets | 10 | - | - |
| Tangible assets | 11 | 176,734 | 40,180 |
| Investments | 12 | - | - |
| 176,734 | 40,180 |
| CURRENT ASSETS |
| Debtors | 13 | 4,930,454 | 6,348,649 |
| Cash at bank | 5,204,417 | 4,665,356 |
| 10,134,871 | 11,014,005 |
| CREDITORS |
| Amounts falling due within one year | 14 | 5,226,704 | 6,468,955 |
| NET CURRENT ASSETS | 4,908,167 | 4,545,050 |
| TOTAL ASSETS LESS CURRENT LIABILITIES |
5,084,901 |
4,585,230 |
| CREDITORS |
| Amounts falling due after more than one year | 15 | (1,000,000 | ) | (1,000,000 | ) |
| PROVISIONS FOR LIABILITIES | 19 | (11,515 | ) | (10,045 | ) |
| NET ASSETS | 4,073,386 | 3,575,185 |
| CAPITAL AND RESERVES |
| Called up share capital | 20 | 1,000 | 1,000 |
| Capital redemption reserve | 21 | 500 | 500 |
| Retained earnings | 21 | 4,071,886 | 3,573,685 |
| SHAREHOLDERS' FUNDS | 4,073,386 | 3,575,185 |
| The financial statements were approved by the Board of Directors and authorised for issue on 6 June 2025 and were signed on its behalf by: |
| M E James - Director |
| P T Allen - Director |
| Picow Engineering Group Ltd. (Registered number: 05519499) |
| Company Balance Sheet |
| 31 December 2024 |
| 31.12.24 | 31.12.23 |
| Notes | £ | £ | £ |
| FIXED ASSETS |
| Intangible assets | 10 |
| Tangible assets | 11 |
| Investments | 12 |
| CURRENT ASSETS |
| Debtors | 13 |
| Cash at bank |
| CREDITORS |
| Amounts falling due within one year | 14 |
| NET CURRENT ASSETS |
| TOTAL ASSETS LESS CURRENT LIABILITIES |
| CREDITORS |
| Amounts falling due after more than one year | 15 |
| NET ASSETS |
| CAPITAL AND RESERVES |
| Called up share capital | 20 |
| Capital redemption reserve | 21 |
| Retained earnings | 21 |
| SHAREHOLDERS' FUNDS |
| Company's profit for the financial year | 219,531 | 506,081 |
| The financial statements were approved by the Board of Directors and authorised for issue on |
| Picow Engineering Group Ltd. (Registered number: 05519499) |
| Consolidated Statement of Changes in Equity |
| for the Year Ended 31 December 2024 |
| Called up | Capital |
| share | Retained | redemption | Total |
| capital | earnings | reserve | equity |
| £ | £ | £ | £ |
| Balance at 1 January 2023 | 1,000 | 2,665,478 | 500 | 2,666,978 |
| Changes in equity |
| Total comprehensive income | - | 908,207 | - | 908,207 |
| Balance at 31 December 2023 | 1,000 | 3,573,685 | 500 | 3,575,185 |
| Changes in equity |
| Dividends | - | (782,000 | ) | - | (782,000 | ) |
| Total comprehensive income | - | 1,280,201 | - | 1,280,201 |
| Balance at 31 December 2024 | 1,000 | 4,071,886 | 500 | 4,073,386 |
| Picow Engineering Group Ltd. (Registered number: 05519499) |
| Company Statement of Changes in Equity |
| for the Year Ended 31 December 2024 |
| Called up | Capital |
| share | Retained | redemption | Total |
| capital | earnings | reserve | equity |
| £ | £ | £ | £ |
| Balance at 1 January 2023 |
| Changes in equity |
| Total comprehensive income | - |
| Balance at 31 December 2023 |
| Changes in equity |
| Dividends | - | ( |
) | - | ( |
) |
| Total comprehensive income | - |
| Balance at 31 December 2024 |
| Picow Engineering Group Ltd. (Registered number: 05519499) |
| Consolidated Cash Flow Statement |
| for the Year Ended 31 December 2024 |
| 31.12.24 | 31.12.23 |
| Notes | £ | £ |
| Cash flows from operating activities |
| Cash generated from operations | 1 | 1,762,491 | 1,988,325 |
| Interest paid | (1,451 | ) | - |
| Finance costs paid | (200,000 | ) | (200,000 | ) |
| Tax paid | (332,209 | ) | (573,695 | ) |
| Net cash from operating activities | 1,228,831 | 1,214,630 |
| Cash flows from investing activities |
| Purchase of tangible fixed assets | (161,285 | ) | (4,946 | ) |
| Sale of tangible fixed assets | - | 300 |
| Interest received | 265,519 | - |
| Net cash from investing activities | 104,234 | (4,646 | ) |
| Cash flows from financing activities |
| Amount introduced by directors | 450 | - |
| Amount withdrawn by directors | (12,454 | ) | (220,545 | ) |
| Equity dividends paid | (782,000 | ) | - |
| Net cash from financing activities | (794,004 | ) | (220,545 | ) |
| Increase in cash and cash equivalents | 539,061 | 989,439 |
| Cash and cash equivalents at beginning of year |
2 |
4,665,356 |
3,675,917 |
| Cash and cash equivalents at end of year | 2 | 5,204,417 | 4,665,356 |
| Picow Engineering Group Ltd. (Registered number: 05519499) |
| Notes to the Consolidated Cash Flow Statement |
| for the Year Ended 31 December 2024 |
| 1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
| 31.12.24 | 31.12.23 |
| £ | £ |
| Profit before taxation | 1,824,891 | 1,285,408 |
| Depreciation charges | 24,729 | 24,291 |
| Profit on disposal of fixed assets | - | (300 | ) |
| Finance costs | 201,451 | 200,000 |
| Finance income | (265,519 | ) | - |
| 1,785,552 | 1,509,399 |
| Decrease in stocks | - | 18,121 |
| Decrease/(increase) in trade and other debtors | 1,381,580 | (3,012,273 | ) |
| (Decrease)/increase in trade and other creditors | (1,404,641 | ) | 3,473,078 |
| Cash generated from operations | 1,762,491 | 1,988,325 |
| 2. | CASH AND CASH EQUIVALENTS |
| The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
| Year ended 31 December 2024 |
| 31.12.24 | 1.1.24 |
| £ | £ |
| Cash and cash equivalents | 5,204,417 | 4,665,356 |
| Year ended 31 December 2023 |
| 31.12.23 | 1.1.23 |
| £ | £ |
| Cash and cash equivalents | 4,665,356 | 3,675,917 |
| 3. | ANALYSIS OF CHANGES IN NET FUNDS |
| At 1.1.24 | Cash flow | At 31.12.24 |
| £ | £ | £ |
| Net cash |
| Cash at bank | 4,665,356 | 539,061 | 5,204,417 |
| 4,665,356 | 539,061 | 5,204,417 |
| Debt |
| Debts falling due after 1 year | (1,000,000 | ) | - | (1,000,000 | ) |
| (1,000,000 | ) | - | (1,000,000 | ) |
| Total | 3,665,356 | 539,061 | 4,204,417 |
| Picow Engineering Group Ltd. (Registered number: 05519499) |
| Notes to the Consolidated Financial Statements |
| for the Year Ended 31 December 2024 |
| 1. | STATUTORY INFORMATION |
| Picow Engineering Group Ltd. is a |
| 2. | ACCOUNTING POLICIES |
| Basis of preparing the financial statements |
| 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 principal accounting policies adopted are set out below. |
| Basis of consolidation |
| The consolidated group financial statements consist of the financial statements of the parent company Picow Engineering Group Limited together with all entities controlled by the parent company (its subsidiaries) and the group's share of its interests in joint ventures and associates. |
| All financial statements are made up 31 December 2024. Where necessary adjustments are made to the financial statements of the 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. |
| The consolidated financial statements incorporate the results of business combinations using the purchase method. In the consolidated 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 comprehensive income from the date on which control is obtained. They are deconsolidated from the date control ceases. |
| Picow Engineering Group Ltd. (Registered number: 05519499) |
| Notes to the Consolidated Financial Statements - continued |
| for the Year Ended 31 December 2024 |
| 2. | ACCOUNTING POLICIES - continued |
| Significant judgements and key sources of estimation uncertainty |
| In the application of the company's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods. |
| The key assumptions concerning the future and other key sources of estimation include uncertainties at the reporting date, which may have a risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial periods, are discussed below. |
| The following judgements and estimates are considered to have the most significant effect on amounts recognised in the financial statements: |
| Deferred income - income has been identified as having been invoiced in advance. Management reviews are performed to assess the value of sales income raised in advance and makes adjustments as required. |
| Accrued income - income has been identified as having been invoiced post year end but relates to work having been performed in the year under review. Management reviews are performed to identify the value of any accrued income and makes adjustments as required. |
| Turnover |
| Turnover comprises the fair value of work executed in respect of provision of services and construction contracts supplied to external customers, excluding VAT. Turnover from contracts is recognised in accordance with the company's accounting policy on construction contracts (see below). |
| Construction contracts |
| Where the outcome of a contract can be estimated reliably, revenue and costs are recognised by reference to the stage of completion of the contract activity at the balance sheet date. Where the outcome of a contract cannot be estimated reliably, revenue is only recognised to the extent that it is probable that it will be recovered. Profit is only recognised on a construction contract when the final outcome can be assessed with reasonable certainty and expected losses are recognised immediately. |
| Goodwill |
| Goodwill is calculated as the amount paid in connection with the acquisition of a business in 2005. The directors continually review the economic life of the goodwill and in line with FRS102 have taken the decision to amortise the remaining balance over the current and following year. |
| Intangible assets |
| Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
| Picow Engineering Group Ltd. (Registered number: 05519499) |
| Notes to the Consolidated Financial Statements - continued |
| for the Year Ended 31 December 2024 |
| 2. | ACCOUNTING POLICIES - continued |
| Tangible fixed assets |
| Plant and machinery | - |
| Fixtures and fittings | - |
| Motor vehicles | - |
| Tangible fixed assets are initially measured at cost and subsequently measured at cost net of depreciation and any impairment losses. |
| The capitalisation policy is no less than the stated amounts: |
| Plant and Machinery - £5,000 |
| Fixtures and Fittings - £5,000 |
| Motor vehicles - £5,000 |
| The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to the profit or loss. |
| Taxation |
| Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
| Current or deferred taxation assets and liabilities are not discounted. |
| Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
| Deferred tax |
| Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
| Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
| Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
| Hire purchase and leasing commitments |
| Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
| Pension costs and other post-retirement benefits |
| The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
| Picow Engineering Group Ltd. (Registered number: 05519499) |
| Notes to the Consolidated Financial Statements - continued |
| for the Year Ended 31 December 2024 |
| 2. | ACCOUNTING POLICIES - continued |
| Cash and cash equivalents |
| Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with bank, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. |
| Financial instruments |
| The company has elected to apply the provisions of Section 11 'Basic Financial Instruments' and Section 12 'Other Financial Instruments Issues' of FRS 102 to all of its financial instruments. |
| Financial instruments are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument. |
| Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the net 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 costs using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised. |
| Other financial assets |
| Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair values are recognised in profit or loss, except that investments in equity instruments that are not publically 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 indications 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 expires or are settled, or when the company transfers the financial assets 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. |
| Picow Engineering Group Ltd. (Registered number: 05519499) |
| Notes to the Consolidated Financial Statements - continued |
| for the Year Ended 31 December 2024 |
| 2. | ACCOUNTING POLICIES - continued |
| Classification of financial liabilities |
| Financial liabilities and equity instruments are classified according to the substances of the contractual arrangements entered into. An entity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. |
| Basic Financial Liabilities |
| Basic financial liabilities, include trade and other payables, bank 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 payables 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 payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method. |
| Other financial liabilities |
| Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge. |
| Debt instruments that do not meet the conditions in FRS paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy. |
| Derecognition of financial liabilities |
| Financial liabilities are derecognised when the company's contractual obligations expire or are discharged or cancelled. |
| Equity Instruments |
| Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company. |
| Derivatives |
| Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to fair value at each reporting end date. The resulting gain or loss is recognised in profit or loss immediately unless the derivative is designated and effective as a hedging instrument. In which event the timing of the recognition in profit or loss depends on the nature of the hedge relationship. |
| A derivative with a positive fair value is recognised as a financial asset, whereas a derivative with a negative fair value is recognised as a financial liability. |
| Picow Engineering Group Ltd. (Registered number: 05519499) |
| Notes to the Consolidated Financial Statements - continued |
| for the Year Ended 31 December 2024 |
| 2. | ACCOUNTING POLICIES - continued |
| Employee benefits |
| The costs of the 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. |
| Going concern |
| At the time of approving the financial statements the directors have assessed the company forecasts and plans for the coming twelve months and have concluded that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements. |
| 3. | TURNOVER |
| The turnover and profit before taxation are attributable to the one principal activity of the group. |
| An analysis of turnover by class of business is given below: |
| 31.12.24 | 31.12.23 |
| £ | £ |
| Contract revenue | 22,097,176 | 21,865,310 |
| 22,097,176 | 21,865,310 |
| An analysis of turnover by geographical market is given below: |
| 31.12.24 | 31.12.23 |
| £ | £ |
| United Kingdom | 22,097,176 | 21,865,310 |
| 22,097,176 | 21,865,310 |
| The gross amount due from customers for contract work was as follows invoiced debtors £3,669,241 (2023 £5,312,415) & applications raised £1,929,062 (2023 £509,162). |
| 4. | EMPLOYEES AND DIRECTORS |
| 31.12.24 | 31.12.23 |
| £ | £ |
| Wages and salaries | 7,633,043 | 7,482,593 |
| Social security costs | 826,811 | 810,148 |
| Other pension costs | 141,322 | 136,599 |
| 8,601,176 | 8,429,340 |
| Picow Engineering Group Ltd. (Registered number: 05519499) |
| Notes to the Consolidated Financial Statements - continued |
| for the Year Ended 31 December 2024 |
| 4. | EMPLOYEES AND DIRECTORS - continued |
| The average number of employees during the year was as follows: |
| 31.12.24 | 31.12.23 |
| Directors | 4 | 4 |
| Administrative | 6 | 6 |
| Direct | 123 | 116 |
| 31.12.24 | 31.12.23 |
| £ | £ |
| Directors' remuneration | 1,515,981 | 1,869,600 |
| Directors' pension contributions to money purchase schemes | 20,403 | 25,226 |
| The number of directors to whom retirement benefits were accruing was as follows: |
| Defined benefit schemes | 3 | 3 |
| Information regarding the highest paid director is as follows: |
| 31.12.24 | 31.12.23 |
| £ | £ |
| Emoluments etc | 506,495 | 857,500 |
| Pension contributions to money purchase schemes | 6,801 | 6,665 |
| The key management personnel are considered to be the Directors who received a total £1,515,981 in directors remuneration from the Group. |
| 5. | OPERATING PROFIT |
| The operating profit is stated after charging/(crediting): |
| 31.12.24 | 31.12.23 |
| £ | £ |
| Hire of plant and machinery | 347,063 | 309,432 |
| Other operating leases | 231,242 | 207,669 |
| Depreciation - owned assets | 24,731 | 24,291 |
| Profit on disposal of fixed assets | - | (300 | ) |
| Auditors' remuneration | 27,500 | 22,000 |
| Other non- audit services | 18,806 | 14,868 |
| Picow Engineering Group Ltd. (Registered number: 05519499) |
| Notes to the Consolidated Financial Statements - continued |
| for the Year Ended 31 December 2024 |
| 6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
| 31.12.24 | 31.12.23 |
| £ | £ |
| Bank interest | 1,451 | - |
| Preference dividend | 200,000 | 200,000 |
| 201,451 | 200,000 |
| 7. | TAXATION |
| Analysis of the tax charge |
| The tax charge on the profit for the year was as follows: |
| 31.12.24 | 31.12.23 |
| £ | £ |
| Current tax: |
| UK corporation tax | 543,220 | 381,001 |
| Deferred tax | 1,470 | (3,800 | ) |
| Tax on profit | 544,690 | 377,201 |
| Reconciliation of total tax charge included in profit and loss |
| The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
| 31.12.24 | 31.12.23 |
| £ | £ |
| Profit before tax | 1,824,891 | 1,285,408 |
| Profit multiplied by the standard rate of corporation tax in the UK of 25 % (2023 - 25 %) |
456,223 |
321,352 |
| Effects of: |
| Expenses not deductible for tax purposes | 43,031 | 29,423 |
| Depreciation in excess of capital allowances | - | 4,837 |
| Adjustments to tax charge in respect of previous periods | (6,034 | ) | (209 | ) |
| Preference dividends included in finance costs | 50,000 | 50,000 |
| Profit/Loss on disposal of fixed assets | - | (75 | ) |
| Deferred tax | 1,470 | (3,800 | ) |
| Profits charged at 19% | - | (24,327 | ) |
| Total tax charge | 544,690 | 377,201 |
| The main rate of corporation tax for the year ended 31 December 2024 was 25%. |
| The government announced that from 1 April 2023 the rate of corporation tax will be 25% for companies with annual profits over £250,000. For companies with annual profits below £50,000 the rate will remain at 19%. Marginal relief provisions will also be introduced so that, where a company's profits fall between the lower (£50,000) and upper (£250,000) limits, it will be able to claim an amount of marginal relief that bridges the gap between the lower and upper limits providing a gradual increase in the corporation tax rate. |
| Picow Engineering Group Ltd. (Registered number: 05519499) |
| Notes to the Consolidated Financial Statements - continued |
| for the Year Ended 31 December 2024 |
| 8. | INDIVIDUAL INCOME STATEMENT |
| As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
| 9. | DIVIDENDS |
| 31.12.24 | 31.12.23 |
| £ | £ |
| A1 Ordinary shares of £1 each |
| Interim | 782,000 | - |
| 10. | INTANGIBLE FIXED ASSETS |
| Group |
| Goodwill |
| £ |
| COST |
| At 1 January 2024 |
| and 31 December 2024 | 1,499,000 |
| AMORTISATION |
| At 1 January 2024 |
| and 31 December 2024 | 1,499,000 |
| NET BOOK VALUE |
| At 31 December 2024 | - |
| At 31 December 2023 | - |
| Picow Engineering Group Ltd. (Registered number: 05519499) |
| Notes to the Consolidated Financial Statements - continued |
| for the Year Ended 31 December 2024 |
| 11. | TANGIBLE FIXED ASSETS |
| Group |
| Fixtures |
| Plant and | and | Motor |
| machinery | fittings | vehicles | Totals |
| £ | £ | £ | £ |
| COST |
| At 1 January 2024 | 104,079 | 102,560 | 84,621 | 291,260 |
| Additions | 6,008 | - | 155,277 | 161,285 |
| At 31 December 2024 | 110,087 | 102,560 | 239,898 | 452,545 |
| DEPRECIATION |
| At 1 January 2024 | 99,223 | 96,223 | 55,634 | 251,080 |
| Charge for year | 3,229 | 1,136 | 20,366 | 24,731 |
| At 31 December 2024 | 102,452 | 97,359 | 76,000 | 275,811 |
| NET BOOK VALUE |
| At 31 December 2024 | 7,635 | 5,201 | 163,898 | 176,734 |
| At 31 December 2023 | 4,856 | 6,337 | 28,987 | 40,180 |
| Company |
| Motor |
| vehicles |
| £ |
| COST |
| Additions |
| At 31 December 2024 |
| DEPRECIATION |
| Charge for year |
| At 31 December 2024 |
| NET BOOK VALUE |
| At 31 December 2024 |
| Picow Engineering Group Ltd. (Registered number: 05519499) |
| Notes to the Consolidated Financial Statements - continued |
| for the Year Ended 31 December 2024 |
| 12. | FIXED ASSET INVESTMENTS |
| Company |
| Shares in |
| group |
| undertakings |
| £ |
| COST |
| At 1 January 2024 |
| and 31 December 2024 |
| NET BOOK VALUE |
| At 31 December 2024 |
| At 31 December 2023 |
| The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
| Subsidiaries |
| Registered office: 1 Station House, Lowlands Road, Runcorn, Cheshire, WA7 5TQ |
| Nature of business: |
| % |
| Class of shares: | holding |
| Registered office: 8 Winmarleigh Street, Warrington, Cheshire, WA1 1JW |
| Nature of business: |
| % |
| Class of shares: | holding |
| The financial statements of Picow Developments Limited have not been subject to audit as it is a dormant company. |
| 13. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
| Group | Company |
| 31.12.24 | 31.12.23 | 31.12.24 | 31.12.23 |
| £ | £ | £ | £ |
| Trade debtors | 4,600,866 | 5,821,577 |
| Other debtors | 20,266 | 17,500 |
| Directors' current accounts | 504 | 954 | 504 | 954 |
| Tax | - | 36,167 |
| VAT | 132,526 | - |
| Prepayments and accrued income | 176,292 | 472,451 |
| 4,930,454 | 6,348,649 |
| Picow Engineering Group Ltd. (Registered number: 05519499) |
| Notes to the Consolidated Financial Statements - continued |
| for the Year Ended 31 December 2024 |
| 14. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
| Group | Company |
| 31.12.24 | 31.12.23 | 31.12.24 | 31.12.23 |
| £ | £ | £ | £ |
| Trade creditors | 1,275,225 | 1,159,233 |
| Amounts owed to group undertakings | - | - |
| Tax | 176,221 | 1,377 |
| Social security and other taxes | 321,617 | 1,008,973 |
| Directors' current accounts | 128 | 12,582 | 128 | 12,582 |
| Accrued expenses | 3,453,513 | 4,286,790 |
| 5,226,704 | 6,468,955 |
| 15. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
| Group | Company |
| 31.12.24 | 31.12.23 | 31.12.24 | 31.12.23 |
| £ | £ | £ | £ |
| Preference shares (see note 16) | 1,000,000 | 1,000,000 |
| 16. | LOANS |
| An analysis of the maturity of loans is given below: |
| Group | Company |
| 31.12.24 | 31.12.23 | 31.12.24 | 31.12.23 |
| £ | £ | £ | £ |
| Amounts falling due in more than five years: |
| Repayable otherwise than by instalments |
| Preference shares | 1,000,000 | 1,000,000 | 1,000,000 | 1,000,000 |
| Details of shares shown as liabilities are as follows: |
| Allotted, issued and fully paid: |
| Number: | Class: | Nominal | 31.12.24 | 31.12.23 |
| value: | £ | £ |
| Non - cumulative preference | £1 | 1,000,000 | 1,000,000 |
| 17. | LEASING AGREEMENTS |
| Minimum lease payments fall due as follows: |
| Picow Engineering Group Ltd. (Registered number: 05519499) |
| Notes to the Consolidated Financial Statements - continued |
| for the Year Ended 31 December 2024 |
| Group |
| Non-cancellable operating | leases |
| 31.12.24 | 31.12.23 |
| £ | £ |
| Within one year | 130,698 | 149,014 |
| Between one and five years | 221,995 | 242,685 |
| 352,693 | 391,699 |
| The operating lease charge in the financial statements is £231,242 (2023: £207,669). |
| 18. | SECURED DEBTS |
| There is a debenture with the bank formally charged over all the assets of the group. |
| 19. | PROVISIONS FOR LIABILITIES |
| Group |
| 31.12.24 | 31.12.23 |
| £ | £ |
| Deferred tax |
| Accelerated capital allowances | 11,515 | 10,045 |
| Group |
| Deferred |
| tax |
| £ |
| Balance at 1 January 2024 | 10,045 |
| Provided during year | 1,470 |
| Balance at 31 December 2024 | 11,515 |
| 20. | CALLED UP SHARE CAPITAL |
| Allotted, issued and fully paid: |
| Number: | Class: | Nominal | 31.12.24 | 31.12.23 |
| value: | £ | £ |
| D Ordinary | £1 | 100 | 100 |
| 300 | A1 Ordinary | £1 | 300 | 300 |
| 200 | B1 Ordinary | £1 | 200 | 200 |
| 200 | A2 Ordinary | £1 | 200 | 200 |
| 100 | B2 Ordinary | £1 | 100 | 100 |
| 100 | C Ordinary | £1 | 100 | 100 |
| 1,000 | 1,000 |
| Picow Engineering Group Ltd. (Registered number: 05519499) |
| Notes to the Consolidated Financial Statements - continued |
| for the Year Ended 31 December 2024 |
| 20. | CALLED UP SHARE CAPITAL - continued |
| Each share is entitled to one vote in any circumstance subject to the terms of the shareholder agreement. |
| Each share has right to dividends at the discretion of the Directors and only after settlement of the preference dividends and any dividends to the A and B shareholders. |
| On a return of capital the C Ordinary and D Ordinary shares carry individual rights to return on capital. |
| 21. | RESERVES |
| Group |
| Capital |
| Retained | redemption |
| earnings | reserve | Totals |
| £ | £ | £ |
| At 1 January 2024 | 3,573,685 | 500 | 3,574,185 |
| Profit for the year | 1,280,201 | 1,280,201 |
| Dividends | (782,000 | ) | (782,000 | ) |
| At 31 December 2024 | 4,071,886 | 500 | 4,072,386 |
| Company |
| Capital |
| Retained | redemption |
| earnings | reserve | Totals |
| £ | £ | £ |
| At 1 January 2024 | 1,973,343 | 1,973,843 |
| Profit for the year |
| Dividends | ( |
) | ( |
) |
| At 31 December 2024 | 1,410,874 | 1,411,374 |
| Retained Earnings |
| Retained earnings includes all current and prior period retained profits and losses, less dividends payable to shareholders. |
| Capital Redemption Reserve |
| The capital redemption reserve includes amounts transferred following the purchase of own shares out of distributable profits |
| 22. | PENSION COMMITMENTS |
| The group operates a defined contribution scheme. The assets of which are held separately from the assets of the group in an independently administered fund. The pension cost charge represents contributions payable by the group to the fund and amounted to £141,322 (2023: £136,599).There were no liabilities at the year end. |
| Picow Engineering Group Ltd. (Registered number: 05519499) |
| Notes to the Consolidated Financial Statements - continued |
| for the Year Ended 31 December 2024 |
| 23. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES |
| The following advances and credits to a director subsisted during the years ended 31 December 2024 and 31 December 2023: |
| 31.12.24 | 31.12.23 |
| £ | £ |
| S P Brennan |
| Balance outstanding at start of year | 954 | 291 |
| Amounts advanced | 3,616 | 3,064 |
| Amounts repaid | (4,066 | ) | (2,401 | ) |
| Amounts written off | - | - |
| Amounts waived | - | - |
| Balance outstanding at end of year | 504 | 954 |
| 24. | RELATED PARTY DISCLOSURES |
| The financial statements of all subsidiary companies are consolidated within these financial statements. The Group has therefore taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
| Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements. |
| During the year, the company paid rent for premises of £63,446 (2023: £27,291) to a pension fund of which the directors are beneficiaries. |
| Mr B Heath |
| Loans have been provided by B Heath to the company with nil interest charged and is repayable on demand. The balance at the year end was £128 (2023: £12,582). The company paid consultancy fees to B Heath totalling £37,361 (2023: £nil) |
| 25. | ULTIMATE CONTROLLING PARTY |
| There was no individual controlling party during the year under review or the preceding year. |