Company registration number 01515817 (England and Wales)
PFEIFER DRAKO LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
PFEIFER DRAKO LIMITED
COMPANY INFORMATION
Directors
D M Polec
A Waibel
(Appointed 6 December 2024)
Secretary
S M Dutton Jones
Company number
01515817
Registered office
Marshfield Bank
Woolstanwood
Crewe
Cheshire
CW2 8UY
Auditor
Afford Bond Holdings Limited
31 Wellington Road
Nantwich
Cheshire
CW5 7ED
PFEIFER DRAKO LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 6
Group statement of comprehensive income
7
Group and company balance sheets
8
Group statement of changes in equity
9
Company statement of changes in equity
10
Group statement of cash flows
11
Company statement of cash flows
12
Notes to the financial statements
13 - 33
PFEIFER DRAKO LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 1 -

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

Fair review of the business

The directors aim to present a balanced review of the development and performance of the business during the period and of the group's position at the period end. Our review is consistent with the size and non-complex nature of the business and is written in the context of the risks and uncertainties facing the group.

 

The group operates from premises at Marshfield Bank in Crewe and Marchwood in Southampton supplying wire rope throughout the UK. The directors consider the key accounting indicators are those that communicate the financial performance and strength of the group as a whole, being turnover, gross profit and shareholders' funds.

 

The turnover decreased by £999,253 during 2024 compared with 2023; the gross profit decreased by £256,082.

 

The profit before tax was £1,126,242. After taxation, revaluations and dividends, shareholders' funds have increased by £1,234,743 to £7,348,358. The results for the period and the financial position at the period end were considered satisfactory by the directors, who anticipate continued growth in the foreseeable future.

 

The main risks and uncertainties, set out below, though not an exhaustive list but which could affect group performance include:-

 

1. Economic conditions: Inflation continues to dominate the headlines and can have a negative impact on customer confidence.

 

2. Group manufacturer relationships: UK performance may be influenced by the operations and strategy of the group manufacturer they represent. This risk is mitigated by the group operating and diversifying its business globally.

 

3. Liquidity: The group finances its business using a mixture of retained profits, trade credit funding and an overdraft facility provided by the bank. It is considered that the group will operate within these facilities.

 

The business environment within wire rope continues to be intensely challenging. The sector is extremely competitive and margins continue to be under pressure. Market spending and changing economic patterns can easily affect the industry.

 

With these risks and uncertainties in mind, the directors are aware that any plans for the future development of the group may be subject to unforeseen future events outside of their control.

By order of the board

S M Dutton Jones
Secretary
30 April 2025
PFEIFER DRAKO LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 2 -

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

Principal activities

The principal activity of the group and company continued to be that of the assembly and distribution of wire rope products and the provision of associated services to the elevator industry.

Results and dividends

The results for the year are set out on page 7.

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:

E H G Pfeifer
(Resigned 10 July 2024)
D M Polec
A Waibel
(Appointed 6 December 2024)
Financial instruments

The company and group uses management accounts, budgeting and forecasting techniques to manage the liquidity, interest and foreign currency risks associated with the company and group’s activities.

 

The company and group’s principal financial instruments used are basic financial instruments, as there are minimal currency risks and interest rate risks arising from the company and group’s activities, with bank overdrafts and loan facilities available to all group companies, the main purpose of which is to raise finance for the company and group’s operations. The company and group has various financial assets and liabilities such as trade debtors and trade creditors arising directly from its operations.

Liquidity risk

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

Interest rate risk

The company and group is exposed to fair value interest rate risk on its fixed rate borrowings and cash flow interest rate risk on floating rate deposits, bank overdrafts and loans. The company and group tries to manage the mix of fixed and variable rate debt so as to reduce its exposure to changes in interest rates.

Foreign currency risk

The company and group’s principal foreign currency exposures arise from trading with overseas companies. Group policy permits but does not demand that these exposures may be hedged in order to fix the cost in sterling by using foreign exchange forward contracts.

Credit risk

Investments of cash surpluses, borrowings and other financing options are made through banks and companies which must fulfil credit rating criteria approved by the board of directors.

 

All customers who wish to trade on credit terms are subject to credit verification procedures. Trade debtors are monitored on an ongoing basis and provision is made for doubtful debts where necessary.

Future developments
The directors intend to continue with the present direction of both the company and the group.
PFEIFER DRAKO LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 3 -
Auditor

The auditor, Afford Bond Holdings Limited, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

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 group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

 

 

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

Statement of disclosure to auditor

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

By order of the board
S M Dutton Jones
Secretary
30 April 2025
PFEIFER DRAKO LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF PFEIFER DRAKO LIMITED
- 4 -
Opinion

We have audited the financial statements of Pfeifer Drako Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2024 which comprise the group statement of comprehensive income, the group balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows, the company statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group 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 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 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:

PFEIFER DRAKO LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF PFEIFER DRAKO LIMITED
- 5 -
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 strategic report and the directors' report.

 

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:

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 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 parent 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.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

Extent to which the audit is considered capable of detecting irregularities, including fraud

Our assessment of the susceptibility of the entity’s financial statements to material misstatement, including how fraud might occur, is based on ICAEW guidance relating to reporting on irregularities, November 2020, based on ISA 700 A39-1 to A39-5. An understanding of the significance of irregularities in the context of the financial statements as a whole is required for our assessment. Whilst considering how our audit work addresses the detection of irregularities, we also consider the likelihood of detection based on our approach. Irregularities from fraud are inherently more difficult to detect than those arising from error. We obtain an understanding of the entity’s risk assessment process, including the risk of fraud, as part of our work on the entity's systems and controls. Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

The laws and regulations identified as being of significance in the context of the entity are those considered to form part of United Kingdom Generally Accepted Accounting Practice. An understanding of the legal and regulatory framework applicable to the entity and how the entity is complying with that framework is necessary for our assessment and requires an understanding of the entity’s policies and procedures on compliance with laws and regulations, including documentation of any instances of non-compliance.

PFEIFER DRAKO LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF PFEIFER DRAKO LIMITED
- 6 -

Walkthrough testing is carried out on the recorded systems notes to check that the controls operate as stated and contain sufficient levels of supervision. Segregation of duties should be commensurate with the size of the entity. Analytical procedures are used to review the client's data for unusual entries, highlighting those transactions requiring further explanations as to the reasons for such variations arising. This also includes the identification and testing of unexpected journal entries to judge their appropriateness. Evaluation of the assumptions and judgements used by management within significant accounting estimates is undertaken to assess if these indicate evidence of potential management bias occurring. Detailed testing is carried out in respect of significant transactions. An evaluation is done of the business rationale behind any amounts which appear unusual or outside the company’s normal course of business. The financial statements are then reviewed with relevant disclosures tested against supporting underlying documentation, as applicable.

Matters about non-compliance with laws and regulations and fraud are communicated with the engagement team, who are assessed as having the appropriate competence and capabilities to identify any potential issues regarding non-compliance in order to conduct their work effectively on the assignment. Communication of relevant matters to all members of the audit team is necessary to ensure that they understand the particular risks specific to the entity, in order that the audit procedures are planned appropriately to mitigate against these identified risks.

Audit response to risks identified

Our audit response will depend on the risks identified but may include:

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

Use of our report

This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Peter O'Malley ACA FCCA CTA (Senior Statutory Auditor)
For and on behalf of Afford Bond Holdings Limited, Statutory Auditor
Chartered Accountants
31 Wellington Road
Nantwich
Cheshire
CW5 7ED
30 April 2025
PFEIFER DRAKO LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
- 7 -
2024
2023
Notes
£
£
Turnover
3
18,519,503
19,518,756
Cost of sales
(11,475,070)
(12,218,241)
Gross profit
7,044,433
7,300,515
Distribution costs
(73,502)
(83,175)
Administrative expenses
(5,974,582)
(5,248,524)
Operating profit
4
996,349
1,968,816
Interest receivable and similar income
129,893
218,634
Profit before taxation
1,126,242
2,187,450
Tax on profit
8
(427,499)
(563,243)
Profit for the financial year
23
698,743
1,624,207
Other comprehensive income
Revaluation of tangible fixed assets
536,000
-
0
Total comprehensive income for the year
1,234,743
1,624,207
Profit for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.

The profit and loss account has been prepared on the basis that all operations are continuing operations.

PFEIFER DRAKO LIMITED
GROUP AND COMPANY BALANCE SHEETS
AS AT
31 DECEMBER 2024
31 December 2024
31 December 2024
31 December 2024
- 8 -
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Fixed assets
Goodwill
10
-
0
-
0
-
0
-
0
Tangible assets
11
2,054,038
1,501,895
1,966,069
1,390,227
Investments
12
-
0
-
0
1,739,294
1,739,294
2,054,038
1,501,895
3,705,363
3,129,521
Current assets
Stocks
15
7,044,902
7,501,268
4,228,954
5,110,637
Debtors
16
2,210,372
2,667,207
1,646,660
1,991,620
Cash at bank and in hand
986,167
221,494
911,155
179,306
10,241,441
10,389,969
6,786,769
7,281,563
Creditors: amounts falling due within one year
17
(4,619,509)
(5,584,637)
(2,488,135)
(3,491,882)
Net current assets
5,621,932
4,805,332
4,298,634
3,789,681
Total assets less current liabilities
7,675,970
6,307,227
8,003,997
6,919,202
Provisions for liabilities
Deferred tax liability
19
(327,612)
(193,612)
(327,612)
(193,612)
Net assets
7,348,358
6,113,615
7,676,385
6,725,590
Capital and reserves
Called up share capital
21
250,000
250,000
250,000
250,000
Revaluation reserve
22
1,310,448
774,448
1,310,448
774,448
Profit and loss reserves
23
5,787,910
5,089,167
6,115,937
5,701,142
Total equity
7,348,358
6,113,615
7,676,385
6,725,590

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £414,795 (2023 - £1,463,954 profit).

The financial statements were approved by the board of directors and authorised for issue on 30 April 2025 and are signed on its behalf by:
30 April 2025
D M Polec
Director
Company Registration No. 01515817
PFEIFER DRAKO LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
- 9 -
Share capital
Revaluation reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 January 2023
250,000
774,448
4,156,978
5,181,426
Year ended 31 December 2023:
Profit and total comprehensive income
-
-
1,624,207
1,624,207
Dividends
9
-
-
(692,018)
(692,018)
Balance at 31 December 2023
250,000
774,448
5,089,167
6,113,615
Year ended 31 December 2024:
Profit for the year
-
-
698,743
698,743
Other comprehensive income:
Revaluation of tangible fixed assets
-
536,000
-
536,000
Total comprehensive income
-
536,000
698,743
1,234,743
Balance at 31 December 2024
250,000
1,310,448
5,787,910
7,348,358
PFEIFER DRAKO LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
- 10 -
Share capital
Revaluation reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 January 2023
250,000
774,448
4,929,206
5,953,654
Year ended 31 December 2023:
Profit and total comprehensive income for the year
-
-
1,463,954
1,463,954
Dividends
9
-
-
(692,018)
(692,018)
Balance at 31 December 2023
250,000
774,448
5,701,142
6,725,590
Year ended 31 December 2024:
Profit for the year
-
-
414,795
414,795
Other comprehensive income:
Revaluation of tangible fixed assets
-
536,000
-
536,000
Total comprehensive income
-
536,000
414,795
950,795
Balance at 31 December 2024
250,000
1,310,448
6,115,937
7,676,385
PFEIFER DRAKO LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 11 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
27
1,728,853
757,310
Income taxes paid
(868,032)
(327,580)
Net cash inflow from operating activities
860,821
429,730
Investing activities
Purchase of tangible fixed assets
(73,538)
(75,486)
Proceeds from disposal of tangible fixed assets
-
2,900
Interest received
129,893
218,634
Net cash generated from investing activities
56,355
146,048
Financing activities
Dividends paid to equity shareholders
-
0
(692,018)
Net cash used in financing activities
-
(692,018)
Net increase/(decrease) in cash and cash equivalents
917,176
(116,240)
Cash and cash equivalents at beginning of year
68,991
185,231
Cash and cash equivalents at end of year
986,167
68,991
Relating to:
Cash at bank and in hand
986,167
221,494
Bank overdrafts included in creditors payable within one year
-
(152,503)
PFEIFER DRAKO LIMITED
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 12 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
28
1,398,912
667,978
Income taxes paid
(681,282)
(320,173)
Net cash inflow from operating activities
717,630
347,805
Investing activities
Purchase of tangible fixed assets
(66,734)
(4,204)
Interest received
129,893
218,634
Dividends received
-
0
125,000
Net cash generated from investing activities
63,159
339,430
Financing activities
Dividends paid to equity shareholders
-
(692,018)
Net cash used in financing activities
-
(692,018)
Net increase/(decrease) in cash and cash equivalents
780,789
(4,783)
Cash and cash equivalents at beginning of year
130,366
135,149
Cash and cash equivalents at end of year
911,155
130,366
Relating to:
Cash at bank and in hand
911,155
179,306
Bank overdrafts included in creditors payable within one year
-
(48,940)
PFEIFER DRAKO LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 13 -
1
Accounting policies
Company information

Pfeifer Drako Limited (“the company”) is a private company limited by shares domiciled and incorporated in England and Wales. The registered office is Marshfield Bank, Woolstanwood, Crewe, Cheshire, CW2 8UY.

 

The group consists of Pfeifer Drako Limited and all of its subsidiaries.

1.1
Accounting convention

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

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

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

1.2
Business combinations

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

 

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

1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Pfeifer Drako 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 to 31 December 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

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

Any acquisitions are included in the group financial statements using the purchase method of accounting. Accordingly, the group profit and loss account and statement of cash flows include the results and cash flows of these subsidiaries for the period from their acquisition date. The purchase consideration is allocated to the assets and liabilities on the basis of fair value at the date of acquisition.

 

The group profit and loss account and statement of cash flows also include the results and cash flows of any newly formed subsidiaries for the period from their incorporation date and includes the results and cash flows of any subsidiaries disposed of for the period up to disposal, the date of their sale outside the group.

PFEIFER DRAKO LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 14 -

Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.

Investments in joint ventures and associates are carried in the group balance sheet at cost plus post-acquisition changes in the group’s share of the net assets of the entity, less any impairment in value. The carrying values of investments in joint ventures and associates include acquired goodwill.

 

If the group’s share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the group does not recognise further losses unless it has incurred obligations to do so or has made payments on behalf of the joint venture or associate.

 

Unrealised gains arising from transactions with joint ventures and associates are eliminated to the extent of the group’s interest in the entity.

1.4
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group 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.

1.5
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Dividend income from investments is recognised when the shareholder's right to receive payment has been established.

 

Interest income is recognised when it is probable that the economic benefits will flow to the company and the amount of revenue can be measured reliably. Interest income is accrued on a time basis, by reference to the principal outstanding and the effective interest rate applicable.

1.6
Intangible fixed assets - goodwill

Goodwill arising on consolidation is written off in equal annual instalments over its estimated useful economic life of eight years.

1.7
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.

PFEIFER DRAKO LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 15 -

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:

Land and buildings Freehold
0% - 20% per annum straight line
Plant and machinery
10% - 25% per annum straight line
Fixtures, fittings and equipment
10% - 25% per annum straight line
Motor vehicles
25% per annum straight line

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

1.8
Fixed asset investments

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

 

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

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

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

 

Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.

 

Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.

 

In the parent company financial statements, investments in associates are accounted for at cost less impairment.

Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

1.9
Impairment of fixed assets

At each reporting period end date, the group 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.

 

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

PFEIFER DRAKO LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 16 -

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.

1.10
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.

Cost is calculated using the weighted average method.

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.

1.11
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.12
Financial instruments

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

 

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

 

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

Basic financial assets

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

PFEIFER DRAKO LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 17 -
Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

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

Basic financial liabilities

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

 

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

 

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

PFEIFER DRAKO LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 18 -
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 group's contractual obligations expire or are discharged or cancelled.

1.13
Equity instruments

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

1.14
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

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

 

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

PFEIFER DRAKO LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 19 -
1.15
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.

1.16
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.17
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

1.18
Foreign exchange

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

1.19

Pension costs

The group operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the company in independently administered funds. The amount charged against profits represents the contributions payable to the scheme in respect of the accounting period.

2
Judgements and key sources of estimation uncertainty

In the application of the group’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.

3
Turnover and other revenue

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

2024
2023
£
£
Turnover analysed by class of business
Sale of goods
18,519,503
19,518,756
PFEIFER DRAKO LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
3
Turnover and other revenue
(Continued)
- 20 -
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
17,990,759
19,180,040
Rest of Europe
528,744
338,716
18,519,503
19,518,756
2024
2023
£
£
Other revenue
Interest income
129,893
218,634
4
Operating profit
2024
2023
£
£
Operating profit for the year is stated after charging/(crediting):
Depreciation of owned tangible fixed assets
57,395
61,205
Profit on disposal of tangible fixed assets
-
(2,900)
Operating lease charges and associated costs
738,933
624,853
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 group and company
9,350
9,350
Audit of the financial statements of the company's subsidiaries
7,240
6,890
16,590
16,240
For other services
All other non-audit services
7,515
7,453
PFEIFER DRAKO LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 21 -
6
Employees

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

Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
Office and management
14
15
9
9
Production and sales
61
56
48
44
Total
75
71
57
53

Their aggregate remuneration comprised:

Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
3,191,424
2,882,116
2,551,236
2,270,289
Social security costs
321,231
301,552
259,987
241,773
Pension costs
413,942
383,764
332,059
301,411
3,926,597
3,567,432
3,143,282
2,813,473
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
109,120
98,456
Company pension contributions to defined contribution schemes
65,174
53,766
174,294
152,222

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2023 - 1).

8
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
282,743
516,776
Adjustments in respect of prior periods
10,756
-
0
Total current tax
293,499
516,776
PFEIFER DRAKO LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
8
Taxation
2024
2023
£
£
(Continued)
- 22 -
Deferred tax
Origination and reversal of timing differences
134,000
46,467
Total tax charge
427,499
563,243

The actual charge 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
1,126,242
2,187,450
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 23.50%)
281,561
514,051
Tax effect of expenses that are not deductible in determining taxable profit
367
292
Permanent capital allowances in excess of depreciation
815
2,433
Under/(over) provided in prior years
10,756
-
0
Deferred tax adjustments in respect of prior years
134,000
46,467
Taxation charge
427,499
563,243
9
Dividends
2024
2023
Recognised as distributions to equity holders:
£
£
Interim paid
-
692,018
10
Intangible fixed assets
Group
Goodwill
£
Cost
At 1 January 2024 and 31 December 2024
1,115,294
Amortisation and impairment
At 1 January 2024 and 31 December 2024
1,115,294
Carrying amount
At 31 December 2024
-
0
At 31 December 2023
-
0
PFEIFER DRAKO LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
10
Intangible fixed assets
(Continued)
- 23 -
The company had no intangible fixed assets at 31 December 2024 or 31 December 2023.
11
Tangible fixed assets
Group
Land and buildings Freehold
Plant and machinery
Fixtures, fittings and equipment
Motor vehicles
Total
£
£
£
£
£
Cost or valuation
At 1 January 2024
1,382,276
521,555
610,545
104,145
2,618,521
Additions
-
0
40,742
32,796
-
0
73,538
Revaluation
536,000
-
0
-
0
-
0
536,000
At 31 December 2024
1,918,276
562,297
643,341
104,145
3,228,059
Depreciation and impairment
At 1 January 2024
74,408
459,473
528,345
54,400
1,116,626
Depreciation charged in the year
3,438
11,697
24,297
17,963
57,395
At 31 December 2024
77,846
471,170
552,642
72,363
1,174,021
Carrying amount
At 31 December 2024
1,840,430
91,127
90,699
31,782
2,054,038
At 31 December 2023
1,307,868
62,082
82,200
49,745
1,501,895
Company
Land and buildings Freehold
Plant and machinery
Fixtures, fittings and equipment
Total
£
£
£
£
Cost or valuation
At 1 January 2024
1,299,000
257,413
497,606
2,054,019
Additions
-
0
37,242
29,492
66,734
Revaluation
536,000
-
0
-
0
536,000
At 31 December 2024
1,835,000
294,655
527,098
2,656,753
Depreciation and impairment
At 1 January 2024
-
0
239,647
424,145
663,792
Depreciation charged in the year
-
0
6,590
20,302
26,892
At 31 December 2024
-
0
246,237
444,447
690,684
Carrying amount
At 31 December 2024
1,835,000
48,418
82,651
1,966,069
At 31 December 2023
1,299,000
17,766
73,461
1,390,227
PFEIFER DRAKO LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
11
Tangible fixed assets
(Continued)
- 24 -

In November 2024 the freehold property of the parent company was externally revalued to £1,835,000 on an open market basis, by an independent firm of Chartered Surveyors.

The revaluation surplus is disclosed in note 22.

The following assets are carried at valuation. If the assets were measured using the cost model, the carrying amounts would be as follows:

Land and buildings
2024
2023
£
£
Group
Cost
607,828
607,828
Accumulated depreciation
(77,846)
(74,408)
Carrying value
529,982
533,420
Company
Cost
524,552
524,552
Carrying value
524,552
524,552
12
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
13
-
0
-
0
1,739,294
1,739,294
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 January 2024 and 31 December 2024
1,739,294
Carrying amount
At 31 December 2024
1,739,294
At 31 December 2023
1,739,294
PFEIFER DRAKO LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 25 -
13
Subsidiaries

Details of the company's subsidiaries at 31 December 2024 are as follows:

Name of undertaking
Country of
Nature of
Class of
% Held
incorporation
business
shares held
Direct
Indirect
Pfeifer Rope and Tackle Limited
England and Wales
Sale of wire rope
Ordinary
100.00
-

Registered office addresses (all UK unless otherwise indicated):

-
North Road, Marchwood Industrial Park, Marchwood, Southampton, SO40 4BL.

The investments in subsidiaries are all stated at cost.

14
Financial instruments
Group
Company
2024
2023
2024
2023
£
£
£
£
Carrying amount of financial assets
Debt instruments measured at amortised cost
1,856,181
2,541,583
1,323,780
1,946,547
Carrying amount of financial liabilities
Measured at amortised cost
4,155,787
4,619,154
2,155,342
2,798,420
15
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Raw materials and consumables
7,044,902
7,501,268
4,228,954
5,110,637

The replacement cost of the stock held would not be significantly different from the values stated.

16
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
1,806,399
2,517,394
1,273,998
1,774,347
Corporation tax recoverable
265,257
-
0
258,289
-
0
Amounts owed by group undertakings
49,782
24,189
49,782
172,200
Prepayments and accrued income
88,934
125,624
64,591
45,073
2,210,372
2,667,207
1,646,660
1,991,620
PFEIFER DRAKO LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 26 -
17
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts
18
-
0
152,503
-
0
48,940
Trade creditors
2,098,159
2,946,394
1,185,772
1,541,992
Amounts owed to group undertakings
77,279
198,189
40,441
201,514
Corporation tax payable
-
0
309,276
-
0
228,721
Other taxation and social security
463,722
656,207
332,793
464,741
Other creditors
1,552,437
914,961
639,898
755,851
Accruals and deferred income
427,912
407,107
289,231
250,123
4,619,509
5,584,637
2,488,135
3,491,882
18
Loans and overdrafts
Group
Company
2024
2023
2024
2023
£
£
£
£
Bank overdrafts
-
0
152,503
-
0
48,940
Payable within one year
-
0
152,503
-
0
48,940

Any bank loans and overdrafts, together with Other creditors which relate to advances against trade debtors, are secured by a cross company guarantee between the group companies, Pfeifer Drako Limited and Pfeifer Rope and Tackle Limited, and a legal charge, over their assets.

 

19
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

Liabilities
Liabilities
2024
2023
Group
£
£
Revaluations
327,612
193,612
Liabilities
Liabilities
2024
2023
Company
£
£
Revaluations
327,612
193,612
PFEIFER DRAKO LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
19
Deferred taxation
(Continued)
- 27 -
Group
Company
2024
2024
Movements in the year:
£
£
Liability at 1 January 2024
193,612
193,612
Charge to profit or loss
134,000
134,000
Liability at 31 December 2024
327,612
327,612

Deferred tax assets and liabilities are offset where the group or company has a legally enforceable right to do so.

20
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
413,942
383,764

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

21
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
250,000
250,000
250,000
250,000

The company has one class of ordinary shares which carry no right to fixed income.

22
Revaluation reserve
Group
Company
2024
2023
2024
2023
£
£
£
£
At the beginning of the year
774,448
774,448
774,448
774,448
Revaluation surplus arising in the year
536,000
-
0
536,000
-
0
At the end of the year
1,310,448
774,448
1,310,448
774,448
PFEIFER DRAKO LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 28 -
23
Profit and loss reserves
Group
Company
2024
2023
2024
2023
£
£
£
£
At the beginning of the year
5,089,167
4,156,978
5,701,142
4,929,206
Profit for the year
698,743
1,624,207
414,795
1,463,954
Dividends
-
(692,018)
-
(692,018)
At the end of the year
5,787,910
5,089,167
6,115,937
5,701,142
24
Operating lease commitments
Lessee

Operating lease payments represent rentals payable by the group for certain of its vehicles and properties. Leases are negotiated for an average term of 3 years and 5 years respectively.

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

Group
Company
2024
2023
2024
2023
£
£
£
£
Within one year
311,206
251,281
169,212
104,316
Between two and five years
648,424
651,852
251,976
122,676
959,630
903,133
421,188
226,992
25
Related party transactions
Remuneration of key management personnel

The remuneration of key management personnel, including those who are also directors, is as follows.

2024
2023
£
£
Aggregate compensation
256,811
222,861
PFEIFER DRAKO LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
25
Related party transactions
(Continued)
- 29 -
Transactions with related parties

During the year the group entered into the following transactions with related parties:

Sale of goods
Purchase of goods
2024
2023
2024
2023
£
£
£
£
Group
Entities with control, joint control or significant influence over the group
-
-
143,757
881,027
Other related parties
96,336
105,537
2,527,510
4,131,099
96,336
105,537
2,671,267
5,012,126
Company
Entities with control, joint control or significant influence over the company
-
-
52,865
791,276
Entities over which the company has control, joint control or significant influence
465,080
600,168
203,447
358,081
Other related parties
93,878
75,214
2,375,882
3,994,606
558,958
675,382
2,632,194
5,143,963
Amounts owed by
Amounts owed to
2024
2023
2024
2023
£
£
£
£
Group
Entities with control, joint control or significant influence over the company
-
-
(36,937)
112,895
Other related parties
49,782
24,189
114,216
85,294
49,782
24,189
77,279
198,189
Company
Entities with control, joint control or significant influence over the company
-
-
(42,037)
101,108
Entities over which the entity has control, joint control or significant influence
-
148,011
-
15,587
Other related parties
49,782
24,189
82,478
84,819
49,782
172,200
40,441
201,514

Sales to, and purchases from, related parties are made on a commercial basis.

 

The amounts owed by, and to, related parties are unsecured balances repayable on demand for agreed consideration, preferably cash settlement.

No guarantees have been given or received other than those stated in note 18.

PFEIFER DRAKO LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
25
Related party transactions
(Continued)
- 30 -
Group

The sale of goods to other related parties are amounts received from fellow subsidiary companies, Pfeifer Drako Drahtseilwerk GmbH and Co KG £13,327 (2023: £27), Pfeifer Seil-und Hebetechnik GmbH Memmingen £50,564 (2023: £40,513), Pfeifer Sogequip Sarl £nil (2023: £997), Pfeifer Wire Rope & Lifting Technology Inc £22,302 (2023: £32,017), Pfeifer Middle East FZE £nil (2023: £31,983) and Pfeifer Seil-und Hebetechnik GmbH Asten £10,143 (2023: £nil).

 

The purchase of goods from entities with control over the group are amounts paid to the immediate parent company, Pfeifer International GmbH £nil (2023: £692,018), and the ultimate parent company, Pfeifer Holding GmbH and Co KG £143,757 (2023: £189,009). The purchase of goods from other related parties are amounts paid to fellow subsidiary companies, Pfeifer Drako Drahtseilwerk GmbH and Co KG £1,885,246 (2023: £3,395,856), Pfeifer Seil-und Hebetechnik GmbH Memmingen £637,307 (2023: £726,740) and Geo Gleistein GmbH £4,957 (2023: £8,503).

 

The amounts owed by other related parties are due from fellow subsidiary companies, Pfeifer Drako Drahtseilwerk GmbH and Co KG £13,327 (2023: £nil), Pfeifer Sogequip Sarl £nil (2023: £997), Pfeifer Seil-und Hebetechnik GmbH Memmingen £nil (2023: £9,039), Pfeifer Wire Rope & Lifting Technology Inc £22,302 (2023: £nil) and Pfeifer Middle East FZE £14,153 (2023: £14,153).

 

The amounts owed to entities with control over the group is due to the immediate parent company, Pfeifer International GmbH £nil (2023: £173,810) and the ultimate parent company, Pfeifer Holding GmbH and Co KG £36,937Dr (2023: £60,915Dr). The amounts owed to other related parties are due to fellow subsidiary companies, Pfeifer Drako Drahtseilwerk GmbH and Co KG £101,516 (2023: £48,216) and Pfeifer Seil-und Hebetechnik GmbH Memmingen £12,700 (2023: £37,078).

PFEIFER DRAKO LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
25
Related party transactions
(Continued)
- 31 -
Company

The sale of goods to entities over which the company has control are amounts received from the wholly owned subsidiary company, Pfeifer Rope and Tackle Limited £465,080 (2023: £600,168). The sale of goods to other related parties are amounts received from fellow subsidiary companies, Pfeifer Drako Drahtseilwerk GmbH and Co KG £13,327 (2023: £27), Pfeifer Seil-und Hebetechnik GmbH Memmingen £48,106 (2023: £40,513), Pfeifer Sogequip Sarl £nil (2023: £997), Pfeifer Seil-und Hebetechnik GmbH Asten £10,143 (2023: £nil), Pfeifer Middle East FZE £nil (2023: £31,983) and Pfeifer Wire Rope & Lifting Technology Inc £22,302 (2023: £1,694).

 

The purchase of goods from entities with control over the company are amounts paid to the immediate parent company, Pfeifer International GmbH £nil (2023: £692,018), and the ultimate parent company, Pfeifer Holding GmbH and Co KG £52,865 (2023: £99,258). The purchase of goods from entities over which the company has control are amounts paid to the wholly owned subsidiary company, Pfeifer Rope and Tackle Limited £203,447 (2023: £358,081). The purchase of goods from other related parties are amounts paid to fellow subsidiary companies, Pfeifer Drako Drahtseilwerk GmbH and Co KG £1,769,103 (2023: £3,262,641), Pfeifer Seil-und Hebetechnik GmbH Memmingen £601,822 (2023: £726,740) and Geo Gleistein GmbH £4,957 (2023: £5,225).

 

The amounts owed by entities over which the company has control are amounts due from the wholly owned subsidiary company, Pfeifer Rope and Tackle Limited £nil (2023: £148,011). The amounts owed by other related parties are due from fellow subsidiary companies,, Pfeifer Drako Drahtseilwerk GmbH and Co KG £13,327 (2023: £nil), Pfeifer Seil-und Hebetechnik GmbH Memmingen £nil (2023: £9,039), Pfeifer Sogequip Sarl £nil (2023: £997). Pfeifer Wire Rope & Lifting Technology Inc £22,302 (2023: £nil) and Pfeifer Middle East FZE £14,153 (2023: £14,153).

 

The amounts owed to entities with control over the company are due to the immediate parent company, Pfeifer International Gmbh £nil (2023: £173,810) and the ultimate parent company, Pfeifer Holding GmbH and Co KG £42,037Dr (2023: £72,702Dr). The amounts owed to entities over which the company has control are amounts due to the wholly owned subsidiary company, Pfeifer Rope and Tackle Limited £nil (2023: £15,587). The amounts owed to other related parties are due to fellow subsidiary companies, Pfeifer Drako Drahtseilwerk GmbH and Co KG £69,778 (2023: £48,216) and Pfeifer Seil-und Hebetechnik GmbH Memmingen £12,700 (2023: £36,603).

26
Controlling party

The immediate parent company is Pfeifer International GmbH, a company incorporated in Germany. The ultimate parent company and controlling party is Pfeifer Holding GmbH and Co KG, a company incorporated in Germany.

Pfeifer Drako Limited is the head of the UK group into which the entity is consolidated. Pfeifer Holding GmbH and Co KG, a company incorporated in Germany, is the largest group into which the entity is consolidated.

PFEIFER DRAKO LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 32 -
27
Cash generated from group operations
2024
2023
£
£
Profit for the year after tax
698,743
1,624,207
Adjustments for:
Taxation charged
427,499
563,243
Investment income
(129,893)
(218,634)
Gain on disposal of tangible fixed assets
-
(2,900)
Depreciation and impairment of tangible fixed assets
57,395
61,205
Movements in working capital:
Decrease/(increase) in stocks
456,366
(2,054,040)
Decrease in debtors
722,092
484,499
(Decrease)/increase in creditors
(503,349)
299,730
Cash generated from operations
1,728,853
757,310
28
Cash generated from operations - company
2024
2023
£
£
Profit for the year after tax
414,795
1,463,954
Adjustments for:
Taxation charged
328,272
475,188
Investment income
(129,893)
(343,634)
Depreciation and impairment of tangible fixed assets
26,892
32,231
Movements in working capital:
Decrease/(increase) in stocks
881,683
(1,614,210)
Decrease in debtors
603,249
581,558
(Decrease)/increase in creditors
(726,086)
72,891
Cash generated from operations
1,398,912
667,978
29
Analysis of changes in net funds - group
1 January 2024
Cash flows
31 December 2024
£
£
£
Cash at bank and in hand
221,494
764,673
986,167
Bank overdrafts
(152,503)
152,503
-
0
68,991
917,176
986,167
PFEIFER DRAKO LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 33 -
30
Analysis of changes in net funds - company
1 January 2024
Cash flows
31 December 2024
£
£
£
Cash at bank and in hand
179,306
731,849
911,155
Bank overdrafts
(48,940)
48,940
-
0
130,366
780,789
911,155
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