Company registration number 12750258 (England and Wales)
PROCTER BROTHERS LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
PROCTER BROTHERS LTD
COMPANY INFORMATION
DIRECTORS
Mr A. J. Davies
Ms M. Evans
Mr R. D. Evans
Ms S. Goman
Mr J. M. Halton
Mr J. P. Procter
Mr G. S. Selway
Mr T. Shapland
SECRETARY
Mr G. S. Selway
COMPANY NUMBER
12750258
REGISTERED OFFICE
11 Pantglas Industrial Estate
Bedwas
Caerphilly
CF83 8XD
AUDITOR
Kilsby & Williams LLP
Cedar House
Hazell Drive
Newport
South Wales
NP10 8FY
PROCTER BROTHERS LTD
CONTENTS
Page
Strategic report
1 - 3
Directors' report
4 - 5
Independent auditor's report
6 - 10
Statement of comprehensive income
11
Balance sheet
12 - 13
Statement of changes in equity
14
Statement of cash flows
15 - 16
Notes to the financial statements
17 - 34
PROCTER BROTHERS LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 1 -
The directors present the strategic report for the year ended 30 September 2024.
The report has been prepared by the directors in accordance with the requirements of section 414 of the Companies Act 2006.
PRINCIPAL ACTIVITIES
The principal activities of the Company are the design, manufacture, and installation of: machine safety guards, commercial gates, fencing, security systems, and street furniture; plus the direct sale of fencing, railings, gates, and associated products to trade and construction companies.
REVIEW OF THE BUSINESS
The Directors believe the main performance indicators are Turnover, Gross Profit Margin, Profit before Taxation, and EBITDA. Performance of the Company in 2024 is as follows (£'000):
2024
2023
£'000
£'000
Turnover
12,294
13,079
Gross profit (%)
32.53%
33.77%
EBITDA
602
720
Profit before taxation
259
366
Turnover decreased 6%, however that was due to a large one-off contract in 2023 that was not repeated in 2024. The Company was also the victim of a sophisticated materials theft fraud of £60k. Whilst these impacted the Profit and EBITDA, the Directors were still pleased with the performance of the three divisions.
PRINCIPAL RISKS AND UNCERTAINTIES
The main risks to the Company are similar to those of other medium-sized businesses operating in this industry.
PROCTER BROTHERS LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 2 -
Commercial risk
Potential customers and contracts are subject to financial evaluation, to ensure that risks from contract terms, credit-worthiness and potential raw material price fluctuations are considered prior to entering in to a contract. Regular commercial and financial reviews of performance are undertaken throughout each project to ensure risks are identified and addressed on a timely basis.
Debt and interest risk
The Company’s loans are subject to the achievement of certain financial covenants. In addition, the Company funds some of its working capital through invoice financing arrangements which are subject to interest rate changes by the Bank of England.
The Company manages the above risk through careful management of its cash flow requirements.
Credit risk
At 30 September 2024, a single customer balance made up 29% (2023: 13%) of accounts receivable. The change in proportion was due to single large project in progress at the year end which was subsequently paid to terms. The Company considers there to be minimal risk arising from this balance as the customer is a reputable business that pays to terms.
Credit risk with respect to accounts receivable is diversified due to the large number of companies comprising the customer base and their dispersion across different industries. There is a comprehensive credit policy in place and exposure to credit risk is monitored on an ongoing basis. Credit evaluations are performed on all customers requiring credit over a certain amount and credit risk is mitigated through payment terms, including cash in advance, and credit insurance. Credit evaluation is performed by an independent team to ensure proper segregation of duties.
Macro-economic risk
Global uncertainties continue to affect inflation and wage pressures and, by association, the Company’s ability to keep costs at existing levels. In addition, these issues can impact customers’ plans, either deferring or cancelling their proposed projects. As in 2022-23, the company has seen some signs of a slowdown, however overall this has not impacted the Company to date. The directors are monitoring the situation carefully, including managing customers’ expectations on having to pass on the wage and other price rises.
EMPLOYMENT
At 30 September 2024 the Company had 97 employees (2023: 95).
The Company is an equal opportunity employer, supporting laws that prohibit discrimination based on a person’s race, colour, gender, national origin, age, religion, disability, marital status, sexual orientation or other legally protected characteristics. The Company can state with assurance that neither slavery nor human trafficking exist in the business, nor are we aware that these practices exist in our supply chain.
PROCTER BROTHERS LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 3 -
FUTURE OUTLOOK
Trading in the new financial year has been positive with improved margins on work performed and new contracts won. The Company has a large pipeline of opportunities and therefore the directors remain confident that the Company is in a strong position to grow the business profitably in 2024-25.
Mr J. P. Procter
Director
26 June 2025
PROCTER BROTHERS LTD
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 4 -
The directors present their annual report and financial statements for the year ended 30 September 2024.
RESULTS AND DIVIDENDS
The results for the year are set out on page 11.
No ordinary dividends were paid. The directors do not recommend payment of a final dividend.
DIRECTORS
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr A. J. Davies
Ms M. Evans
Mr R. D. Evans
Ms S. Goman
Mr J. M. Halton
Mr J. P. Procter
Mr G. S. Selway
Mr T. Shapland
STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law, the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period.
In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent; and
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
PROCTER BROTHERS LTD
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 5 -
STATEMENT OF DISCLOSURE TO AUDITOR
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
MEDIUM-SIZED COMPANIES EXEMPTION
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
Auditor
Each of the persons who is a director at the date of approval of this report confirms that:
This report was approved by the board of directors.
On behalf of the board
Mr J. P. Procter
Director
26 June 2025
PROCTER BROTHERS LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF PROCTER BROTHERS LTD
- 6 -
Opinion
We have audited the financial statements of Procter Brothers Ltd (the 'company') for the year ended 30 September 2024 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the company's affairs as at 30 September 2024 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
PROCTER BROTHERS LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF PROCTER BROTHERS LTD (CONTINUED)
- 7 -
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
PROCTER BROTHERS LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF PROCTER BROTHERS LTD (CONTINUED)
- 8 -
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
We gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates, and considered the risk of acts by the company that were contrary to applicable laws and regulations, including fraud. 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 or intentional misrepresentations, or through collusion.
We focussed on laws and regulations which could give rise to a material misstatement in the financial statements, including, but not limited to, the Companies Act 2006 and UK tax legislation. Our tests included agreeing the financial statement disclosures to underlying supporting documentation, enquiries with management and enquiries of legal counsel. 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. We did not identify any key audit matters relating to irregularities, including fraud. As in all 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.
PROCTER BROTHERS LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF PROCTER BROTHERS LTD (CONTINUED)
- 9 -
As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also:
•
Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
•
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control.
•
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.
•
Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the company to cease to continue as a going concern.
•
Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.
PROCTER BROTHERS LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF PROCTER BROTHERS LTD (CONTINUED)
- 10 -
Ataf Salim
Senior Statutory Auditor
For and on behalf of
Kilsby & Williams LLP
Chartered accountants & statutory auditor
Cedar House
Hazell Drive
Newport
South Wales
NP10 8FY
26 June 2025
PROCTER BROTHERS LTD
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 11 -
2024
2023
Notes
£
£
TURNOVER
3
12,294,018
13,079,381
Cost of sales
(8,294,896)
(8,662,858)
GROSS PROFIT
3,999,122
4,416,523
Distribution costs
(165,363)
(177,125)
Administrative expenses
(3,552,807)
(3,814,394)
Other operating income
124,574
122,556
OPERATING PROFIT
4
405,526
547,560
Interest receivable and similar income
8
2,370
3,935
Interest payable and similar expenses
9
(149,010)
(185,624)
PROFIT BEFORE TAXATION
258,886
365,871
Tax on profit
10
(7,820)
27,880
PROFIT FOR THE FINANCIAL YEAR
251,066
393,751
The profit and loss account has been prepared on the basis that all operations are continuing operations.
PROCTER BROTHERS LTD
BALANCE SHEET
AS AT
30 SEPTEMBER 2024
30 September 2024
- 12 -
2024
2023
Notes
£
£
FIXED ASSETS
Intangible assets
11
242,435
252,888
Tangible assets
12
1,209,985
1,169,192
1,452,420
1,422,080
CURRENT ASSETS
Stocks
13
527,934
542,394
Debtors
14
3,148,075
3,553,928
Cash at bank and in hand
338,385
392,849
4,014,394
4,489,171
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
15
(3,089,584)
(3,637,409)
NET CURRENT ASSETS
924,810
851,762
TOTAL ASSETS LESS CURRENT LIABILITIES
2,377,230
2,273,842
CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
16
(816,330)
(971,828)
PROVISIONS FOR LIABILITIES
Deferred tax liability
19
(92,367)
(84,547)
NET ASSETS
1,468,533
1,217,467
CAPITAL AND RESERVES
Called up share capital
22
94,000
94,000
Capital redemption reserve
6,000
6,000
Profit and loss reserves
1,368,533
1,117,467
TOTAL EQUITY
1,468,533
1,217,467
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.
The financial statements were approved by the board of directors and authorised for issue on 26 June 2025 and are signed on its behalf by:
PROCTER BROTHERS LTD
BALANCE SHEET (CONTINUED)
AS AT
30 SEPTEMBER 2024
30 September 2024
- 13 -
Mr J. P. Procter
Director
Company registration number 12750258 (England and Wales)
PROCTER BROTHERS LTD
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 14 -
Share capital
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
BALANCE AT 1 OCTOBER 2022
100,000
723,722
823,722
YEAR ENDED 30 SEPTEMBER 2023:
Profit and total comprehensive income
-
-
393,751
393,751
Redemption of shares
22
(6,000)
6,000
(6)
(6)
BALANCE AT 30 SEPTEMBER 2023
94,000
6,000
1,117,467
1,217,467
YEAR ENDED 30 SEPTEMBER 2024:
Profit and total comprehensive income
-
-
251,066
251,066
BALANCE AT 30 SEPTEMBER 2024
94,000
6,000
1,368,533
1,468,533
PROCTER BROTHERS LTD
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 15 -
2024
2023
Notes
£
£
CASH FLOWS FROM OPERATING ACTIVITIES
Profit for the year after tax
251,066
393,751
Adjustments for:
Taxation charged/(credited)
7,820
(27,880)
Finance costs
149,010
185,624
Investment income
(2,370)
(3,935)
Government grant income
(107,439)
(120,110)
(Gain)/loss on disposal of tangible fixed assets
(4,588)
5,558
Amortisation and impairment of intangible assets
111,173
91,028
Depreciation and impairment of tangible fixed assets
85,485
81,632
Movements in working capital:
Decrease/(increase) in stocks
14,460
(82,122)
Decrease/(increase) in debtors
405,853
(480,232)
(Decrease)/increase in creditors
(362,066)
534,087
Cash generated from operations
431,910
633,935
Interest received
2,370
3,935
Interest paid
(149,010)
(185,624)
Income taxes refunded
279
Net cash inflow from operating activities
285,270
452,525
INVESTING ACTIVITIES
Purchase of intangible assets
(100,720)
(101,352)
Purchase of tangible fixed assets
(104,233)
(135,658)
Proceeds from disposal of tangible fixed assets
14,388
39,254
Net cash used in investing activities
(190,565)
(197,756)
FINANCING ACTIVITIES
Redemption of shares
(6)
Repayment of bank loans
(154,492)
(127,475)
Government grant income
42,526
43,864
Payment of finance leases obligations
(37,203)
(47,215)
Net cash used in financing activities
(149,169)
(130,832)
PROCTER BROTHERS LTD
STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
2024
2023
Notes
£
£
- 16 -
NET (DECREASE)/INCREASE IN CASH AND CASH EQUIVALENTS
(54,464)
123,937
Cash and cash equivalents at beginning of year
392,849
268,912
CASH AND CASH EQUIVALENTS AT END OF YEAR
338,385
392,849
PROCTER BROTHERS LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 17 -
1
ACCOUNTING POLICIES
Company information
Procter Brothers Ltd is a private company limited by shares incorporated in England and Wales. The registered office is 11 Pantglas Industrial Estate, Bedwas, Caerphilly, CF83 8XD.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.
1.2
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover represents the amounts derived from the provision of goods and services which fall within the company's ordinary activities and is stated net of VAT.
Turnover is recognised on delivery or in cases where the company undertakes long term contracts turnover is recognised by reference to the stage of completion.
Revenue from the rendering of services is measured by reference to the stage of completion of the service transaction at the end of the reporting period provided that the outcome can be reliably estimated. When the outcome cannot be reliably estimated, revenue is recognised only to the extent that is probable the expenses will be recovered.
PROCTER BROTHERS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
ACCOUNTING POLICIES
(Continued)
- 18 -
1.4
Research and development expenditure
Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.
Development expenditure incurred is capitalised as an intangible asset only when all of the following criteria are met:
It is technically feasible to complete the intangible asset so that it will be available for use or sale;
There is the intention to complete the intangible asset and use or sell it;
There is the ability to use or sell the intangible asset;
The use or sale of the intangible asset will generate probable future economic benefits;
There are adequate technical, financial and other resources available to complete the development and to use or sell the intangible asset; and
The expenditure attributable to the intangible asset during its development can be measured reliably.
Expenditure that does not meet the above criteria is expensed as incurred.
1.5
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.
Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Development costs
20% straight line
1.6
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Freehold land and buildings
2-10% straight line on buildings & nil on land
Plant and machinery
10-33% straight line
Fixtures and fittings
10-50% straight line
Equipment
20-50% straight line
Motor vehicles
20% straight line
PROCTER BROTHERS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
ACCOUNTING POLICIES
(Continued)
- 19 -
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.7
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.8
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.9
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
PROCTER BROTHERS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
ACCOUNTING POLICIES
(Continued)
- 20 -
1.10
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
PROCTER BROTHERS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
ACCOUNTING POLICIES
(Continued)
- 21 -
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.11
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.12
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
PROCTER BROTHERS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
ACCOUNTING POLICIES
(Continued)
- 22 -
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.13
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.14
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.15
Leases
As lessee
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
PROCTER BROTHERS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
ACCOUNTING POLICIES
(Continued)
- 23 -
1.16
Government grants
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.
1.17
Invoice discounting facility
The company has in place an invoice discount facility based on the value of trade receivables. Under this arrangement the company has retained both the credit and late payment risk associated with the receivables. As the company has retained substantially all the risk and rewards of ownership of the receivables, it continues to recognise the receivables in the balance sheet with advances from the facility provider treated as a separate liability. The expenses associated with this facility are included within interest payable within the profit and loss account.
FRS 102 does not provide guidance on the treatment of factored debts in a cash flow statement. The invoice discounting facility factors debts with recourse, with the advances from the factor treated as an other creditor in the balance sheet. FRS 102 requires cash flows to be analysed under the standard headings according to the substance of the transactions that give rise to them. Operating cash flows including the cash flows from the receivables are treated as if the factoring had not been entered into. Management feel this method of presentation best reflects the substance of the relationship entered into.
2
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.
PROCTER BROTHERS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
2
JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY
(Continued)
- 24 -
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
Provisions
Provisions are included against bad debts. These provisions require management's best estimate of the costs that will be incurred based on contractual agreements, historical experience and current knowledge of the trading difficulties of customers.
Useful lives of property, plant and equipment
Depreciation is provided to write down assets to their residual values over their estimated useful economic lives as set out in the company's accounting policy. The selection of these estimated useful economic lives requires the exercise of management judgement. Useful economic lives are regularly reviewed and should management's assessment of useful lives shorten then depreciation charges in the financial statements would increase and the carrying amounts of property, plant and equipment would reduce accordingly.
Amounts recoverable on contracts
Some of the company's contracts are considered to be of the nature of contracts. In order for the accounts to reflect the level of activity during the period, turnover and profit are recognised on a prudent basis as the work proceeds. A full provision is made for contract losses as soon as they are forseen. The amounts of contracts, at costs incurred, net of amounts transferred to cost of sales after deducting foreseeable losses and payments on account not matched with turnover are included in work in in progress.
3
TURNOVER AND OTHER REVENUE
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
12,294,018
13,079,381
2024
2023
£
£
Other revenue
Interest income
2,370
3,935
Grants received
107,439
120,110
The whole of the turnover is attributable to the principal activity of the company wholly undertaken in the United Kingdom.
PROCTER BROTHERS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 25 -
4
OPERATING PROFIT
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange gains
(17)
Government grants
(107,439)
(120,110)
Depreciation of owned tangible fixed assets
85,485
81,632
(Profit)/loss on disposal of tangible fixed assets
(4,588)
5,558
Amortisation of intangible assets
111,173
91,028
Impairment of trade debtors
83,200
101,443
5
AUDITOR'S REMUNERATION
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
9,130
9,000
6
EMPLOYEES
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Production Staff
52
53
Admin Staff
38
38
Directors
8
9
Total
98
100
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
3,917,284
3,862,505
Pension costs
109,263
106,122
4,026,547
3,968,627
PROCTER BROTHERS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
6
EMPLOYEES
(Continued)
- 26 -
Gross salaries of £92,662 (2023: £93,244) and direct costs of £8,058 (2023: £8,108) were capitalised as part of development costs.
7
DIRECTORS' REMUNERATION
2024
2023
£
£
Remuneration for qualifying services
586,081
652,903
Company pension contributions to defined contribution schemes
20,969
19,736
607,050
672,639
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 8 (2023 - 9).
Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
103,351
98,305
Company pension contributions to defined contribution schemes
3,815
5,332
8
INTEREST RECEIVABLE AND SIMILAR INCOME
2024
2023
£
£
Interest income
Other interest income
2,370
3,935
9
INTEREST PAYABLE AND SIMILAR EXPENSES
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
67,840
95,870
Other finance costs:
Interest on finance leases and hire purchase contracts
14,285
12,788
Other interest
66,885
76,966
149,010
185,624
PROCTER BROTHERS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 27 -
10
TAXATION
2024
2023
£
£
Deferred tax
Origination and reversal of timing differences
7,820
(27,880)
The actual charge/(credit) for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2024
2023
£
£
Profit before taxation
258,886
365,871
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 22.00%)
64,722
80,492
Tax effect of expenses that are not deductible in determining taxable profit
6,895
3,375
Research and development tax credit
(63,797)
(108,401)
Difference UK tax rates on some earnings
(3,346)
Taxation charge/(credit) for the year
7,820
(27,880)
PROCTER BROTHERS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 28 -
11
INTANGIBLE FIXED ASSETS
Development costs
£
Cost
At 1 October 2023
455,144
Additions - internally developed
100,720
At 30 September 2024
555,864
Amortisation and impairment
At 1 October 2023
202,256
Amortisation charged for the year
111,173
At 30 September 2024
313,429
Carrying amount
At 30 September 2024
242,435
At 30 September 2023
252,888
PROCTER BROTHERS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 29 -
12
TANGIBLE FIXED ASSETS
Freehold land and buildings
Plant and machinery
Fixtures and fittings
Equipment
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 October 2023
796,286
381,853
60,048
47,324
55,436
1,340,947
Additions
51,194
11,410
484
39,145
33,845
136,078
Disposals
(19,141)
(3,071)
(22,212)
At 30 September 2024
847,480
374,122
60,532
86,469
86,210
1,454,813
Depreciation and impairment
At 1 October 2023
12,837
93,515
18,467
23,650
23,286
171,755
Depreciation charged in the year
8,552
46,121
4,693
14,070
12,049
85,485
Eliminated in respect of disposals
(9,341)
(3,071)
(12,412)
At 30 September 2024
21,389
130,295
23,160
37,720
32,264
244,828
Carrying amount
At 30 September 2024
826,091
243,827
37,372
48,749
53,946
1,209,985
At 30 September 2023
783,449
288,338
41,581
23,674
32,150
1,169,192
Tangible fixed assets includes assets held under finance leases or hire purchase contracts, as follows:
2024
2023
£
£
Plant and machinery
148,400
162,800
Motor vehicles
53,946
31,850
202,346
194,650
Included within freehold property is land amounting to £500,000 which is not depreciated.
PROCTER BROTHERS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 30 -
13
STOCKS
2024
2023
£
£
Raw materials and consumables
363,211
391,684
Work in progress
164,723
150,710
527,934
542,394
14
DEBTORS
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
2,933,109
3,123,030
Other debtors
27,811
7,433
Prepayments and accrued income
187,155
423,465
3,148,075
3,553,928
Included within trade debtors are retentions totaling £35,582 (2023: £34,628) that are due in more than one year.
15
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024
2023
Notes
£
£
Bank loans
17
151,937
139,929
Obligations under finance leases
18
43,333
34,045
Trade creditors
1,112,652
1,362,026
Taxation and social security
280,480
249,266
Government grants
20
13,547
104,109
Other creditors
1,091,269
1,108,047
Accruals and deferred income
396,366
639,987
3,089,584
3,637,409
PROCTER BROTHERS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
15
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
(Continued)
- 31 -
The bank loan is secured with a fixed and floating charge over the assets of the company. Personal guarantees totalling £265,864 plus interest, costs, and expenses have been given by seven directors.
The above includes secured creditors secured creditors of £43,333 (2023: £34,045). These balances are secured over the assets to which they relate.
Included within other creditors is an amount of £941,162 (2023: £998,228) which is secured on trade debtors. A personal guarantee of £200,000 plus interest, costs, and expenses has also been given by a director.
16
CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
2024
2023
Notes
£
£
Bank loans
17
665,085
831,585
Obligations under finance leases
18
92,062
106,708
Government grants
20
59,183
33,535
816,330
971,828
The bank loan is secured with a fixed and floating charge over the assets of the company. Personal guarantees have been provided by seven directors totaling £265,864 plus interest, costs and expenses.
The above includes secured creditors of £92,062 (2023: £106,708). These balances are secured over the assets to which they relate.
17
LOANS AND OVERDRAFTS
2024
2023
£
£
Bank loans
817,022
971,514
Payable within one year
151,937
139,929
Payable after one year
665,085
831,585
The bank loan is secured with a fixed and floating charge over the assets of the company. Personal guarantees totalling £265,864 plus interest, costs, and expenses have been given by seven directors.
PROCTER BROTHERS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 32 -
18
FINANCE LEASE OBLIGATIONS
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
54,849
46,268
In two to five years
101,202
121,818
156,051
168,086
Less: future finance charges
(20,656)
(27,333)
135,395
140,753
Finance lease payments represent rentals payable by the company for certain items of plant & machinery and motor vehicles. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
19
DEFERRED TAXATION
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
107,101
99,792
Tax losses
(70,000)
(72,867)
Asset on other timing
55,266
57,622
92,367
84,547
2024
Movements in the year:
£
Liability at 1 October 2023
84,547
Charge to profit or loss
7,820
Liability at 30 September 2024
92,367
PROCTER BROTHERS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 33 -
20
GOVERNMENT GRANTS
2024
2023
£
£
Arising from government grants
72,730
137,644
Included in the financial statements as follows:
Current liabilities
13,547
104,109
Non-current liabilities
59,183
33,535
72,730
137,644
Government grants recognised directly in income equated and recognised in other operating income equate to £107,439 (2023: £120,110).
21
RETIREMENT BENEFIT SCHEMES
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
109,263
106,122
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
22
SHARE CAPITAL
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1000 each
94
94
94,000
94,000
23
RESERVES
Called up share capital - This represents the nominal value of shares that have been issued.
Profit and loss account - This reserve records retained earnings and accumulated losses.
Capital redemption reserve - This undistributable reserve represents the nominal value of shares that have been bought back and ensures the maintenance of the capital base of the Company.
24
OPERATING LEASE COMMITMENTS
PROCTER BROTHERS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
24
OPERATING LEASE COMMITMENTS
(Continued)
- 34 -
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2024
2023
£
£
Within 1 year
136,079
102,661
Years 2-5
202,755
185,858
338,834
288,519
25
DIRECTORS' ADVANCES, CREDITS AND GUARANTEES
Personal guarantees have been given by seven directors totalling £265,864 plus interest, costs, and expenses in relation to a bank loan.
In addition, a personal guarantee has been given by a director of £200,000 plus interest, costs, and expenses in relation to a loan included within other creditors.
26
ANALYSIS OF CHANGES IN NET DEBT
1 October 2023
Cash flows
New finance leases
30 September 2024
£
£
£
£
Cash at bank and in hand
392,849
(54,464)
-
338,385
Borrowings excluding overdrafts
(971,514)
154,492
-
(817,022)
Lease liabilities
(140,753)
37,203
(31,845)
(135,395)
(719,418)
137,231
(31,845)
(614,032)
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