Company registration number 11654317 (England and Wales)
PENNINE INDUSTRIAL HOLDINGS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
PENNINE INDUSTRIAL HOLDINGS LIMITED
COMPANY INFORMATION
Directors
Mr C J Hobbs
Mr S P Holmes
Mr M B Sykes
Mr G Womersley
Company number
11654317
Registered office
Unit A1
Park Mill Way
Clayton West
Huddersfield
HD8 9XJ
Auditor
Azets Audit Services Limited
12 King Street
Leeds
LS1 2HL
PENNINE INDUSTRIAL HOLDINGS LIMITED
CONTENTS
Page
Strategic report
1 - 3
Directors' report
4
Directors' responsibilities statement
5
Independent auditor's report
6 - 9
Group statement of comprehensive income
10
Group balance sheet
11
Company balance sheet
12
Group statement of changes in equity
13
Company statement of changes in equity
14
Group statement of cash flows
15
Notes to the financial statements
16 - 35
PENNINE INDUSTRIAL HOLDINGS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 1 -

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

Principal activities

The principal activity the company was that of a holding company. The principal activtiy of the group continued to be that of manufacturing of inverted tooth chains and other conveying components for industry conveying applications.

Review of the business

The group's subsidiary, Pennine Industrial Equipment Limited, are a market leader in the manufacture of inverted tooth chains and sprockets for the hollow glass industry. The group has over 45 years of experience assisting customers with every aspect of hot end glass conveying. The group also helps customers in industrial conveying with different components mainly made from food grade UHMW-PE.

 

Result for the year

During the year the group generated a turnover of £6,592,247 (2023 - £8,008,172) at a gross margin of 51.9% (2023 - 47.0%) generating underlying profits of £546,981 (2023 - £967,424).

 

Principal risks and uncertainties

The following principal risks encountered in the normal course of business have been assessed and managed by the directors;

 

Commercial risk

The group operates in a changing economic and competitive environment that presents risks, many of which cannot be predicted or controlled. The group faces competition in both pricing and market share. This is handled through management of its customers. The group strives to continually enhance its reputation for quality and service to maintain strong customer relationships. A large proportion of materials purchases are commodities for which prices can fluctuate significantly. Gross margins achieved are heavily influenced by the ability to pass on price increases to customers and the ability to source materials at competitive prices.

 

Financial risks

The group is exposed to a variety of financial risks in the ordinary course of business, including commodity price volatility, liquidity and interest rate risk.

 

Liquidity

The policy has been to ensure continuity of funding by acquiring a proportion of fixed assets under finance and operating leases and financing operations via short term credit facilities with the principal funder. The directors have reviewed forecasts for the next 12 months and consider that available financial resources are sufficient to meet the cash flow requirements of the business.

 

Interest rate risk

The interest rate on the companies borrowings fluctuates. The group has reduced the exposure to this risk following redemption of external lending. The policies and procedures in relation to the monitoring of these risks are undertaken in conjunction with management of the wider group. This includes continual risk assessment, monitoring and, if deemed necessary, entering into contractual arrangements in order to mitigate the adverse effects on the group's financial performance.

 

Credit risk

There is a risk of loss to the group arising from financial difficulties experienced by customers and potentially the failure of customers to meet their financial obligations. The group manages this risk through credit control procedures and continual monitoring of creditworthiness. Amounts presented in the financial statements for trade receivables are net of allowances for doubtful debts estimated by management based upon experience and their assessment of the risks arising from the current economic environment. Management consider that the operational risk is reduced to an acceptable level.

PENNINE INDUSTRIAL HOLDINGS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 2 -
Principal risks and uncertainties

 

Currency risk

The group is exposed to currency risk as sales are invoiced in different currencies. As a result the group is exposed to exchange gain variances between GBP, US Dollar, and Euro. The risk is mitigated to a certain extent, in that foreign currency bank accounts are maintained and, where possible, a natural hedge will result from buying and selling in the same currency. Management continually monitors the exposure of the group.

 

Key performance indicators

 

Financial key performance indicators

The group's Key Performance Indicators (KPIs) are reviewed and discussed at least monthly by the senior management team. KPIs are set at the start of the year as part of the company’s financial budgeting and forecasting process.

 

The directors monitor and manage the performance of the group assisted by the production of detailed quarterly management reports containing detailed monthly accounts and a number of key financial and non-financial performance measures.

 

The main KPIs include;

 

Turnover £6,592,2478,008,172 - 2023)

Gross Margin 51.9% (47.0% - 2023)

PBT £913,1671,186,257 - 2023)

 

Other key performance indicators

Various non-financial KPIs are included in the management information used to monitor the performance of manufacturing and the wider business;

- On time shipments

- Invoice accuracy

- Aged inventory/debtors

 

Directors' statement of compliance with duty to promote the success of the Group

Section 172 of the Companies Act 2006 requires a director to act in a way he or she considers, in good faith, would be most likely to promote the success of the company for the benefit of its members as a whole. In doing this, section 172 requires a director to have regard, among other matters, to: the likely consequences of any decision in the long term; the interests of the company’s employees; the need to foster the company’s business relationships with suppliers, customers and others; the impact of the company’s operations on the community and the environment; the desirability of the company maintaining a reputation for high standards of business conduct; and the need to act fairly with members of the company.

 

The directors give careful consideration to the factors set out above in discharging their duties under section 172. The stakeholders we consider in this regard are the people who work for us, our customers and those in the supply chain with whom we engage, our owners, regulatory bodies and people living in the societies within which we operate. The directors recognise that building strong relationships with our stakeholders will help us to deliver our strategy in line with our long-term values and operate the business in a sustainable way. We are committed to doing business responsibly and thinking for the long term.

 

The directors regularly receive reports from management on issues concerning clients, the environment,suppliers, employees, and other stakeholders which it takes into account in its discussions and in its decision making process under section 172.

PENNINE INDUSTRIAL HOLDINGS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 3 -

Employment

Directors receive monthly updates on various staff metrics. The group is committed to promoting a healthy workforce with focus on mental health and wellbeing, developing a culture of inclusion, ensuring training and development opportunities are provided and keeping staff informed of key issues through our communications network. We look to attract and retain staff via our recruitment and development strategies.

 

Applications for employment by disabled persons are always fully considered, bearing in mind the abilities of the applicant concerned. In the event of members of staff becoming disabled every effort is made to ensure that their employment with the group continues and that appropriate training is arranged. It is the policy of the group that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.

 

Customers

As well as the directors receiving updates from senior management on the group's interaction with customers, directors and senior managers regularly meet customer representatives to maintain relationships and understand their specific needs.

 

Suppliers

We have consistent standards and procedures for the onboarding and use of external suppliers. We require suppliers to meet our compliance and financial stability requirements, as well as to meet our requirements around health and safety where appropriate.

 

Community and the environment

The group fully recognises the importance of its environmental responsibilities, monitors and controls its impact on the environment and implements policies aimed at reducing any damage that might be caused by it's operations. In this respect further details of the regulatory environment and the response of the company are included in the "Principal risks and uncertainties" section above.

On behalf of the board

Mr C J Hobbs
Director
13 June 2025
PENNINE INDUSTRIAL HOLDINGS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 4 -

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

Principal activities

The principal activity the company was that of a holding company. The principal activtiy of the group continued to be that of manufacturing of inverted tooth chains and other conveying components for industry conveying applications.

Results and dividends

The results for the year are set out on page 10.

Ordinary interim dividends were paid amounting to £2,071,186 (2023 - £166,188). 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 C J Hobbs
Mr S P Holmes
Mr M B Sykes
Mr G Womersley
Auditor

Azets Audit Services Limited were appointed as auditor during the period and are deemed to be re-appointed under section 487(2) of the Companies Act 2006.

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.

On behalf of the board
Mr C J Hobbs
Director
13 June 2025
PENNINE INDUSTRIAL HOLDINGS LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 5 -

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.

PENNINE INDUSTRIAL HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF PENNINE INDUSTRIAL HOLDINGS LIMITED
- 6 -

Qualified opinion on financial statements

We have audited the financial statements of Pennine Industrial Holdings 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 company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group 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, except for the effects of the matter described in the basis for qualified opinion paragraph, the financial statements:

Basis for qualified opinion

During the course of our audit an historical indirect loan to participator was identified. Due to the historic nature of the loan and the transactions within it the Section 459 tax and related interest had not been determined at the date of signing the audit report. The indirect loan balance included within the financial statements as at 31 December 2024 is £1.1m, within the subsidiary, and at the current rate of tax and HMRC interest rate both transactions may require material adjustments to the financial statements. In addition, any potential adjustment to interest would impact post operations finance charges of up to £100k requiring the Profit Before Tax performance indicator stated in the strategic report to be updated.

 

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

PENNINE INDUSTRIAL HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF PENNINE INDUSTRIAL HOLDINGS LIMITED
- 7 -

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

Except for the possible effects of the matter described in the basis of qualified option section of our report, in our opinion, based on the work undertaken in the course of our audit:

Matters on which we are required to report by exception

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

Arising solely from the limitation on the scope of our work relating to indirect loan to participator, referred to above:

 

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

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.

PENNINE INDUSTRIAL HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF PENNINE INDUSTRIAL HOLDINGS LIMITED
- 8 -
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.

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.

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.

 

We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework.  Based on this understanding, we 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.  This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.

 

In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:

 

 

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 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.

PENNINE INDUSTRIAL HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF PENNINE INDUSTRIAL HOLDINGS LIMITED
- 9 -

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.

Jessica Lawrence (Senior Statutory Auditor)
For and on behalf of Azets Audit Services Limited
13 June 2025
Chartered Accountants
Statutory Auditor
12 King Street
Leeds
LS1 2HL
PENNINE INDUSTRIAL HOLDINGS LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
- 10 -
2024
2023
Notes
£
£
Turnover
3
6,592,247
8,008,172
Cost of sales
(3,169,484)
(4,240,625)
Gross profit
3,422,763
3,767,547
Administrative expenses
(2,518,893)
(2,475,854)
Other operating expenses
-
(105,764)
Operating profit
4
903,870
1,185,929
Interest receivable and similar income
7
18,520
10,975
Interest payable and similar expenses
8
(9,223)
(10,647)
Profit before taxation
913,167
1,186,257
Tax on profit
9
(366,186)
(218,833)
Profit for the financial year
546,981
967,424
Profit for the financial year is all attributable to the owners of the parent company.

The statement of comprehensive income has been prepared on the basis that all operations are continuing operations.

PENNINE INDUSTRIAL HOLDINGS LIMITED
GROUP BALANCE SHEET
AS AT
31 DECEMBER 2024
31 December 2024
- 11 -
2024
2023
Notes
£
£
£
£
Fixed assets
Goodwill
11
-
0
8,334
Tangible assets
12
2,336,858
2,577,458
2,336,858
2,585,792
Current assets
Stocks
14
680,995
501,446
Debtors
15
1,080,564
2,537,180
Cash at bank and in hand
1,999,981
2,278,336
3,761,540
5,316,962
Creditors: amounts falling due within one year
18
(1,611,800)
(1,884,940)
Net current assets
2,149,740
3,432,022
Total assets less current liabilities
4,486,598
6,017,814
Creditors: amounts falling due after more than one year
19
(78,186)
(85,197)
Provisions for liabilities
Deferred tax liability
20
476,048
476,048
(476,048)
(476,048)
Net assets
3,932,364
5,456,569
Capital and reserves
Called up share capital
22
1,000
1,000
Share premium account
594,050
594,050
Profit and loss reserves
3,337,314
4,861,519
Total equity
3,932,364
5,456,569
The financial statements were approved by the board of directors and authorised for issue on 13 June 2025 and are signed on its behalf by:
13 June 2025
Mr C J Hobbs
Director
Company registration number 11654317 (England and Wales)
PENNINE INDUSTRIAL HOLDINGS LIMITED
COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2024
31 December 2024
- 12 -
2024
2023
Notes
£
£
£
£
Fixed assets
Investments
13
2,000,000
2,000,000
Current assets
Debtors
15
-
0
53,408
Creditors: amounts falling due within one year
18
(1,311,640)
(1,336,561)
Net current liabilities
(1,311,640)
(1,283,153)
Net assets
688,360
716,847
Capital and reserves
Called up share capital
22
1,000
1,000
Share premium account
594,050
594,050
Profit and loss reserves
93,310
121,797
Total equity
688,360
716,847

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 £2,042,699 (2023 - £160,088 profit).

The financial statements were approved by the board of directors and authorised for issue on 13 June 2025 and are signed on its behalf by:
13 June 2025
Mr C J Hobbs
Director
Company registration number 11654317 (England and Wales)
PENNINE INDUSTRIAL HOLDINGS LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
- 13 -
Share capital
Share premium account
Profit and loss reserves
Total controlling interest
Non-controlling interest
Total
Notes
£
£
£
£
£
£
Balance at 1 January 2023
950
594,050
4,060,283
4,655,283
33,612
4,688,895
Year ended 31 December 2023:
Profit and total comprehensive income
-
-
967,424
967,424
-
967,424
Issue of share capital
22
50
-
0
-
50
-
50
Dividends
10
-
-
(166,188)
(166,188)
-
(166,188)
Elimination of NCI on change of ownership
-
-
-
-
(33,612)
(33,612)
Balance at 31 December 2023
1,000
594,050
4,861,519
5,456,569
-
0
5,456,569
Year ended 31 December 2024:
Profit and total comprehensive income
-
-
546,981
546,981
-
546,981
Dividends
10
-
-
(2,071,186)
(2,071,186)
-
(2,071,186)
Balance at 31 December 2024
1,000
594,050
3,337,314
3,932,364
-
0
3,932,364
PENNINE INDUSTRIAL HOLDINGS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
- 14 -
Share capital
Share premium account
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 January 2023
950
594,050
127,897
722,897
Year ended 31 December 2023:
Profit and total comprehensive income for the year
-
-
160,088
160,088
Issue of share capital
22
50
-
0
-
50
Dividends
10
-
-
(166,188)
(166,188)
Balance at 31 December 2023
1,000
594,050
121,797
716,847
Year ended 31 December 2024:
Profit and total comprehensive income
-
-
2,042,699
2,042,699
Dividends
10
-
-
(2,071,186)
(2,071,186)
Balance at 31 December 2024
1,000
594,050
93,310
688,360
PENNINE INDUSTRIAL HOLDINGS LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 15 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
30
2,083,189
2,088,432
Interest paid
(9,223)
(10,647)
Income taxes paid
(204,264)
(148,602)
Net cash inflow from operating activities
1,869,702
1,929,183
Investing activities
Purchase of tangible fixed assets
(102,348)
(586,836)
Proceeds from disposal of tangible fixed assets
34,214
-
Elimination of NCI on change in ownership
-
(33,612)
Interest received
18,520
-
Net cash used in investing activities
(49,614)
(620,448)
Financing activities
Proceeds from issue of shares
-
50
Repayment of bank loans
(15,238)
(13,429)
Payment of finance leases obligations
(13,799)
(48,821)
Dividends paid to equity shareholders
(2,071,186)
(166,188)
Net cash used in financing activities
(2,100,223)
(228,388)
Net (decrease)/increase in cash and cash equivalents
(280,135)
1,080,347
Cash and cash equivalents at beginning of year
2,278,335
1,197,988
Cash and cash equivalents at end of year
1,998,200
2,278,335
Relating to:
Cash at bank and in hand
1,999,981
2,278,335
Bank overdrafts included in creditors payable within one year
(1,781)
-
PENNINE INDUSTRIAL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 16 -
1
Accounting policies
Company information

Pennine Industrial Holdings Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Unit A1, Park Mill Way, Clayton West, Huddersfield, HD8 9XJ.

 

The group consists of Pennine Industrial Holdings 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 £1.

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

The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:

 

The ultimate parent company and controlling party is Rondot Group, which is the smallest and largest company that prepares group financial statements. Copies of the group financial statements for Rondot Group are available from its registered office of 9 rue Jean Elysée Dupuy, 69410 Champagne au Mont d'Or, France.

1.2
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Pennine Industrial Holdings 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.

PENNINE INDUSTRIAL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 17 -

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

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.

1.3
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.

1.4
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.

1.5
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.

1.6
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 5 years.

1.7
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:

Patents and licences
20% straight line
PENNINE INDUSTRIAL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 18 -
1.8
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% reducing balance
Leasehold land and buildings
5% straight line
Leasehold improvements
10% straight line
Plant and machinery
15% reducing balance & 33% straight line
Fixtures and fittings
20% reducing balance
Motor vehicles
25% reducing balance

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

1.9
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.

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

1.10
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.

PENNINE INDUSTRIAL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 19 -

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.

1.11
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.

1.12
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.

1.13
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.

PENNINE INDUSTRIAL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 20 -
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.

PENNINE INDUSTRIAL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 21 -
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.

1.14
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.

1.15
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.

PENNINE INDUSTRIAL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 22 -
1.16
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.

1.17
Retirement benefits

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

1.18
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

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.

1.19
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.

1.20
Foreign exchange

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

2
Judgements and key sources of estimation uncertainty

In the application of the group’s accounting policies, the 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.

PENNINE INDUSTRIAL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
2
Judgements and key sources of estimation uncertainty
(Continued)
- 23 -
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.

Stock

Stocks are valued at the lower of cost and estimated selling price less costs to complete and sell, as noted in accounting policy 1.11.

 

The group converts raw materials to finished goods. Stock values include any costs such as labour and overheads attributable to generating finished goods, as management believe this is the most suitable costing method to take into account the matching concept of accounting.

Bad debt provision

Outstanding trade debtor balances are reviewed on a line by line basis by management to identify possible amounts where a provision is required. Management closely manage the collection of trade debtors and therefore are able to identify balances where there is uncertainty about its recoverability, and determine what provision is required (if any).

3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Tooth chain production
6,592,247
8,008,172
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
2,188,818
3,123,187
Rest of the world
4,403,429
4,884,985
6,592,247
8,008,172
2024
2023
£
£
Other revenue
Interest income
18,520
10,975
Grants received
-
6,299
PENNINE INDUSTRIAL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 24 -
4
Operating profit
2024
2023
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange (gains)/losses
(95,837)
126,499
Research and development costs
3,260
111,737
Government grants
-
(6,299)
Depreciation of owned tangible fixed assets
321,409
321,447
(Profit)/loss on disposal of tangible fixed assets
(12,674)
19,432
Amortisation of intangible assets
8,334
20,000
Operating lease charges
120,169
170,295
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
3,000
5,000
Audit of the financial statements of the company's subsidiaries
12,200
11,300
15,200
16,300
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
Directors
4
4
4
4
Chain assembly
30
39
-
-
Office
17
16
-
-
Shop floor
7
7
-
-
Warehouse/inspection
5
4
-
-
Total
63
70
4
4
PENNINE INDUSTRIAL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
6
Employees
(Continued)
- 25 -

Their aggregate remuneration comprised:

Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
1,712,809
1,731,352
-
0
-
0
Social security costs
158,657
132,489
-
-
Pension costs
140,920
102,067
-
0
-
0
2,012,386
1,965,908
-
0
-
0
7
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
18,520
10,975
8
Interest payable and similar expenses
2024
2023
£
£
Interest on bank overdrafts and loans
8,218
9,690
Interest on finance leases and hire purchase contracts
1,005
957
Total finance costs
9,223
10,647
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
309,000
143,392
Adjustments in respect of prior periods
57,186
1,524
Total current tax
366,186
144,916
Deferred tax
Origination and reversal of timing differences
-
0
73,917
Total tax charge
366,186
218,833
PENNINE INDUSTRIAL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
9
Taxation
(Continued)
- 26 -

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
913,167
1,186,257
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 23.52%)
228,292
279,008
Tax effect of expenses that are not deductible in determining taxable profit
6,827
9,667
Permanent capital allowances in excess of depreciation
59,373
-
0
Research and development tax credit
-
0
(44,473)
Under/(over) provided in prior years
57,186
1,524
Fixed asset differences
4,397
-
0
Adjustments to brought forward values
-
0
(23,565)
Patent box additional deduction
-
0
(27,755)
Chargeable gains/losses
-
0
2,045
Remeasurement of deferred tax for changes in tax rates
-
4,375
Other
10,111
18,007
Taxation charge
366,186
218,833
10
Dividends
2024
2023
Recognised as distributions to equity holders:
£
£
Interim paid
2,071,186
166,188
11
Intangible fixed assets
Group
Goodwill
Patents and licences
Total
£
£
£
Cost
At 1 January 2024 and 31 December 2024
100,000
167,112
267,112
Amortisation and impairment
At 1 January 2024
91,666
167,112
258,778
Amortisation charged for the year
8,334
-
0
8,334
At 31 December 2024
100,000
167,112
267,112
PENNINE INDUSTRIAL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
11
Intangible fixed assets
(Continued)
- 27 -
Carrying amount
At 31 December 2024
-
0
-
0
-
0
At 31 December 2023
8,334
-
0
8,334
The company had no intangible fixed assets at 31 December 2024 or 31 December 2023.

On 9 May 2019 Pennine Industrial Equipment Limited completed the acquisition of certain trade and assets of Glass Shearing Services Limited. The consideration paid was £150,000 with deferred consideration of £20,000 payable over two years. The assets acquire were stock of £20,000 and equipment of £50,000 and goodwill of £100,000.

PENNINE INDUSTRIAL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 28 -
12
Tangible fixed assets
Group
Freehold land and buildings
Leasehold land and buildings
Leasehold improvements
Plant and machinery
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
£
£
Cost
At 1 January 2024
217,080
792,043
2,235
3,355,104
236,869
397,297
5,000,628
Additions
-
0
-
0
-
0
12,700
267
89,381
102,348
Disposals
-
0
-
0
-
0
-
0
(114,746)
(99,460)
(214,206)
At 31 December 2024
217,080
792,043
2,235
3,367,804
122,390
387,218
4,888,770
Depreciation and impairment
At 1 January 2024
49,265
39,602
2,235
1,958,043
197,172
176,852
2,423,169
Depreciation charged in the year
3,356
39,602
-
0
212,439
9,847
56,165
321,409
Eliminated in respect of disposals
-
0
-
0
-
0
-
0
(114,365)
(78,301)
(192,666)
At 31 December 2024
52,621
79,204
2,235
2,170,482
92,654
154,716
2,551,912
Carrying amount
At 31 December 2024
164,459
712,839
-
0
1,197,322
29,736
232,502
2,336,858
At 31 December 2023
167,815
752,441
-
0
1,397,061
39,697
220,445
2,577,459
The company had no tangible fixed assets at 31 December 2024 or 31 December 2023.
PENNINE INDUSTRIAL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
12
Tangible fixed assets
(Continued)
- 29 -

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

Group
Company
2024
2023
2024
2023
£
£
£
£
Motor vehicles
701
19,404
-
0
-
0
13
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
27
-
0
-
0
2,000,000
2,000,000
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 January 2024 and 31 December 2024
2,000,000
Carrying amount
At 31 December 2024
2,000,000
At 31 December 2023
2,000,000
14
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Raw materials and consumables
680,995
501,446
-
-
15
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
759,216
1,338,179
-
0
-
0
Amounts owed by group undertakings
218,375
1,087,296
-
53,408
Other debtors
2,540
57,040
-
0
-
0
Prepayments and accrued income
100,433
54,665
-
0
-
0
1,080,564
2,537,180
-
53,408
PENNINE INDUSTRIAL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
15
Debtors
(Continued)
- 30 -

Amounts owed by group undertakings include balances owed by the ultimate parent company which are not included within this consolidation. These balances are unsecured, interest free and repayable on demand.

16
Loans and overdrafts
Group
Company
2024
2023
2024
2023
£
£
£
£
Bank loans
85,744
100,982
-
0
-
0
Bank overdrafts
1,781
-
0
-
0
-
0
87,525
100,982
-
-
Payable within one year
9,339
16,406
-
0
-
0
Payable after one year
78,186
84,576
-
0
-
0

The group holds 2 loans at the year end. The first loan is held by Pennine Industrial Equipment Limited, secured against certain fixed assets with interest charged at 4% above the Bank of England base rate. The second loan is held by Pennine Prostamp LLP which is secured against the freehold property held by the LLP.

17
Finance lease obligations
Group
Company
2024
2023
2024
2023
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
1,862
15,040
-
0
-
0
In two to five years
-
0
621
-
0
-
0
1,862
15,661
-
-

Finance lease payments represent rentals payable by the company or group for certain items of plant and machinery. Obligations under finance leases are secured against the assets to which they relate.

PENNINE INDUSTRIAL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 31 -
18
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts
16
9,339
16,406
-
0
-
0
Obligations under finance leases
17
1,862
15,040
-
0
-
0
Trade creditors
629,750
1,042,215
-
0
-
0
Amounts owed to group undertakings
204,342
-
0
1,193,547
1,077,347
Corporation tax payable
309,000
147,078
-
0
-
0
Other taxation and social security
58,034
105,103
-
-
Other creditors
141,113
267,855
118,093
259,214
Accruals and deferred income
258,360
291,243
-
0
-
0
1,611,800
1,884,940
1,311,640
1,336,561

Bank loans and overdrafts are secured as detailed in note 16.

 

Obligations under finance leases are secured as detailed in note 17.

 

Amounts owed to group undertakings include balances owed to the ultimate parent company which are not included within this consolidation. These balances are unsecured, interest free and repayable on demand.

19
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts
16
78,186
84,576
-
0
-
0
Obligations under finance leases
17
-
0
621
-
0
-
0
78,186
85,197
-
-

Bank loans and overdrafts are secured as detailed in note 16.

 

Obligations under finance leases are secured as detailed in note 17.

PENNINE INDUSTRIAL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 32 -
20
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
£
£
Accelerated capital allowances
476,048
476,048
The company has no deferred tax assets or liabilities.
There were no deferred tax movements in the year.
21
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
140,920
102,067

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.

22
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
1,000
1,000
1,000
1,000
23
Operating lease commitments
Lessee

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
96,425
160,225
-
-
Between two and five years
385,700
640,900
-
-
In over five years
1,229,419
2,203,094
-
-
1,711,544
3,004,219
-
-
PENNINE INDUSTRIAL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 33 -
24
Related party transactions
Transactions with related parties

The company has taken advantage of the available exemption conferred by Section 33.1A of FRS102 not to disclose transactions with wholly owned members of the Group.

25
Directors' transactions

During the year, the company operated loan accounts with it's directors.

 

As at 31 December 2024, the company owed MR G K Hobbs amounts totalling £nil (2023 - £204,536). This amount is included within other creditors due within one year.

 

There are no repayment terms for these balances and no interest has been charged on them.

26
Controlling party

On the 15th of November 2023, the entire share capital of Pennine Industrial Holdings Limited was acquired by Rondot Industrial SAS, a French conpany.

 

At the balance sheet date the ultimate parent company and controlling party is Rondot Group, which is the smallest and largest company that prepares group financial statements. Copies of the group financial statements for Rondot Group are available from its registered office of 9 rue Jean Elysée Dupuy, 69410 Champagne au Mont d'Or, France.

27
Subsidiaries

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

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Indirect
Pennine Industrial Equipment Limited
Unit A1 Park Mill Way, Clayton West, Huddersfield, HD8 9XJ
Ordinary
100.00
-
Pennine Prostamp LLP
Unit A1 Park Mill Way, Clayton West, Huddersfield, HD8 9XJ
Ordinary
20.00
80.00

Pennine Industrial Equipment Limited holds 80% interest in Pennine Prostamp LLP, which has been consolidated in these financial statements. At the year end, Prostamp had net assets of £357,372 (2023 - £346,638) and had a loss for the year of £476 (2023 - £4,594).

28
Associates

The company's subsidiary, Pennine Industrial Equipment Limited, holds an 80% interest in Pennine Prostamp LLP. During the 2023 financial year, Pennine Industrial Holdings Limited acquired a 20% interest in Pennine Prostamp LLP. The acquisition was at nil consideration.

Details of associates at 31 December 2024 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Indirect
Pennine Prostamp LLP
Unit 1a, Park Mill Way, Clayton West, Huddersfield, HD8 9XJ
Ordinary
20
80
PENNINE INDUSTRIAL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 34 -
29
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
230,363
85,985
Company pension contributions to defined contribution schemes
105,216
72,614
335,579
158,599
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
105,155
n/a
Company pension contributions to defined contribution schemes
40,996
n/a
30
Cash generated from group operations
2024
2023
£
£
Profit for the year after tax
546,981
967,424
Adjustments for:
Taxation charged
366,186
378,530
Finance costs
9,223
10,647
Investment income
(18,520)
(10,975)
(Gain)/loss on disposal of tangible fixed assets
(12,674)
19,432
Amortisation and impairment of intangible assets
8,334
20,000
Depreciation and impairment of tangible fixed assets
321,409
321,447
Movements in working capital:
Increase in stocks
(179,549)
(53,561)
Decrease/(increase) in debtors
1,456,616
(51,805)
(Decrease)/increase in creditors
(414,817)
487,293
Cash generated from operations
2,083,189
2,088,432
PENNINE INDUSTRIAL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 35 -
31
Analysis of changes in net funds - group
1 January 2024
Cash flows
31 December 2024
£
£
£
Cash at bank and in hand
2,278,335
(278,354)
1,999,981
Bank overdrafts
-
0
(1,781)
(1,781)
2,278,335
(280,135)
1,998,200
Borrowings excluding overdrafts
(100,982)
15,238
(85,744)
Obligations under finance leases
(15,661)
13,799
(1,862)
2,161,692
(251,098)
1,910,594
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