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Registered number: 07953325
THE PURE GOLD GROUP LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
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THE PURE GOLD GROUP LTD
COMPANY INFORMATION
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Chartered Accountants & Statutory Auditor
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THE PURE GOLD GROUP LTD
CONTENTS
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Independent auditors' report
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Statement of income and retained earnings
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Statement of financial position
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Statement of changes in equity
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Notes to the financial statements
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THE PURE GOLD GROUP LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2024
The Pure Gold Company, is a subsidiary of The Pure Holding Company Limited. The subsidiary operates in the UK precious metals market, specialising in the provision of physical gold and silver investment products to individuals and institutions. With over 15 years of experience, the Group aims to offer secure, tangible wealth protection to its clients.
The Group’s business model revolves around helping clients invest in physical gold and silver as a means of diversifying risk and protecting long-term wealth. Revenue is generated through the sale and storage of physical metals, with services supported by knowledgeable client teams. The business does not provide financial advice, but focuses on product integrity, secure storage, and responsive customer support.
In the year ending 31 March 2024, the Group continued to position itself as the "Trusted Gold Experts," with a clear focus on long-term strategic growth, operational stability, and enhanced customer engagement. While macroeconomic conditions presented both headwinds and opportunities, the Group invested in its operational capacity and leadership structure to support future scalability.
Revenue for the year was £35.5 million, falling short of the £45 million target. The shortfall was primarily attributed to price volatility, operational restructuring, and strategic investment. Despite this, the business demonstrated resilience, maintaining profitability and controlling cost growth through effective management.
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THE PURE GOLD GROUP LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
Principal risks and uncertainties
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The Group has identified the following key risks:
Market and Regulatory Risk
Changing economic conditions, interest rate fluctuations, and trade regulations can affect consumer sentiment and pricing. The Group mitigates this through continuous monitoring, training, and the development of product taxonomy and customer profiling.
Operational and Supply Chain Risk
Infrastructure changes (e.g. storage provider diversification, telephony upgrades) support customer experience and asset security.
Sales and Customer Risk
Investment in training, knowledge management, and employee progression frameworks strengthen service standards.
Financial and Business Continuity Risk
Recruitment, retention, and improved governance reduce key person dependency and improve financial oversight.
Cybersecurity and Data Protection
Internal audits, data governance reforms, and secure recruitment help maintain data security.
Financial key performance indicators
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- Revenue: £35.5 million (2023: £32.9 million)
- New Clients Acquired: 862
- Transactions Completed: 1,491
- Team Members: 18
These KPIs demonstrate the Group’s continued ability to attract new clients, maintain strong transaction volume, and manage significant client assets under storage.
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THE PURE GOLD GROUP LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
Other key performance indicators
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The Group's medium-term goal is to achieve annual revenue of £80 million by March 2027, targeting a compound annual growth rate of 25%. To support this ambition, the Group's core strategic priorities include:
- Increasing lead conversion to 20%
- Retaining 75% of customers through improved relationship management
- Enhancing customer insight to refine engagement
- Strengthening leadership and operational efficiency
- Embedding core values across the business
Strategic enhancements implemented during the year included:
- Appointment of a Chief Operating Officer and Finance Controller
- Establishment of clear leadership behaviours and cultural expectations
- Refinement of values to support decision-making: Passionate Curiosity, Positive Energy
- Thoughtful Respect, Pursuit of Brilliance, and Virtuous Choices
This report was approved by the board on 29 August 2025 and signed on its behalf.
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THE PURE GOLD GROUP LTD
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 MARCH 2024
The director presents his report and the financial statements for the year ended 31 March 2024.
Director's responsibilities statement
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The director is responsible for preparing the Strategic report, the Director's report and the financial statements in accordance with applicable law and regulations.
Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period.
In preparing these financial statements, the director is required to:
∙select suitable accounting policies for the Company's financial statements and then apply them consistently;
∙make judgments and accounting estimates that are reasonable and prudent;
∙state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.
The director is responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and to enable him to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The principal activity of the entity is that of purchasing and selling physical gold and silver, for clients looking to invest.
The profit for the year, after taxation, amounted to £777,570 (2023 - £1,948,585 restated).
Dividends declared, £176,000, and paid to shareholders are as per the attached Statement of Income and Retained Earnings.
The director who served during the year was:
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THE PURE GOLD GROUP LTD
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
The Group expects continued macroeconomic volatility to shape the precious metals market. However, it remains cautiously optimistic regarding long-term growth, underpinned by ongoing investment in operational capabilities and leadership capacity. The management continues to focus on customer retention, operational resilience, and cultural alignment to realise its strategic revenue objectives.
Matters covered in the Strategic Report
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As permitted by s414C(11) of the Companies Act 2006, the director has elected to disclose information required to be in the directors' report by schedule 7 of the ‘large and medium-sized companies and groups (accounts and reports) regulations 2008’ in the Strategic Report.
Disclosure of information to auditors
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The director at the time when this Director's report is approved has confirmed that:
∙so far as he is aware, there is no relevant audit information of which the Company's auditors are unaware, and
∙he has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.
Post balance sheet events
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There have been no significant events affecting the Company since the year end.
Under section 487(2) of the Companies Act 2006, BKL Audit LLP will be deemed to have been appointed as auditors 28 days after these financial statements were sent to members or 28 days after the latest date prescribed for filing the accounts with the registrar, whichever is earlier.
This report was approved by the board and signed on its behalf.
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THE PURE GOLD GROUP LTD
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE PURE GOLD GROUP LTD
We have audited the financial statements of The Pure Gold Group Ltd (the 'Company') for the year ended 31 March 2024, which comprise the Statement of income and retained earnings, the Statement of financial position, the Statement of changes in equity and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
∙give a true and fair view of the state of the Company's affairs as at 31 March 2024 and of its profit for the year then ended;
∙have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
∙have been prepared in accordance with the requirements of the Companies Act 2006.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Other matters
The corresponding figures are unaudited.
Conclusions relating to going concern
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In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the director with respect to going concern are described in the relevant sections of this report.
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THE PURE GOLD GROUP LTD
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE PURE GOLD GROUP LTD (CONTINUED)
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' report thereon. The director is 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.
Opinion on other matters prescribed by the Companies Act 2006
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In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Strategic report and the Director's report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the Strategic report and the Director's report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
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In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic report or the Director's report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
∙adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
∙the financial statements are not in agreement with the accounting records and returns; or
∙certain disclosures of director's remuneration specified by law are not made; or
∙we have not received all the information and explanations we require for our audit.
Responsibilities of directors
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As explained more fully in the Director's responsibilities statement set out on page 4, the director is 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 director determines 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 director is responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the director either intends to liquidate the Company or to cease operations, or have no realistic alternative but to do so.
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THE PURE GOLD GROUP LTD
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE PURE GOLD GROUP LTD (CONTINUED)
Auditors' responsibilities for the audit of the financial statements
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Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
∙Enquiring of management around actual and potential litigation and claims;
∙Reviewing minutes of meetings of those charged with governance;
∙Reviewing financial statement disclosures and testing to supporting documentation to assess compliance
with applicable laws and regulations;
∙Performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias;
∙Reviewing the general ledger in detail for all transactions with related parties;
∙Performing walkthrough testing to ensure systems and controls are operating as recorded where
appropriate.
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.
As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also:
∙Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
∙Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion of the effectiveness of the Company's internal control.
∙Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the director.
∙Conclude on the appropriateness of the director's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors' report to the related disclosures in the financial statements or, if such disclosures are inadequate, to
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THE PURE GOLD GROUP LTD
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE PURE GOLD GROUP LTD (CONTINUED)
modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors' report. However, future events or conditions may cause the Company to cease to continue as a going concern.
∙Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
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 Auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.
Ian Saunderson (Senior statutory auditor)
for and on behalf of
BKL Audit LLP
Chartered Accountants
Statutory Auditor
35 Ballards Lane
London
N3 1XW
29 August 2025
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THE PURE GOLD GROUP LTD
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 MARCH 2024
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Loss from changes in fair value of repo loan
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Income from fixed assets investments
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Interest receivable and similar income
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Interest payable and similar expenses
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Fair value gain/(loss) on hedging instrument
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- correction of a prior period error
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At the beginning of the year as restated
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Dividends declared and paid
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Retained earnings at the end of the year
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The notes on pages 14 to 32 form part of these financial statements.
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THE PURE GOLD GROUP LTD
REGISTERED NUMBER: 07953325
STATEMENT OF FINANCIAL POSITION
AS AT 31 MARCH 2024
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Creditors: amounts falling due within one year
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Total assets less current liabilities
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Creditors: amounts falling due after more than one year
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Provisions for liabilities
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THE PURE GOLD GROUP LTD
REGISTERED NUMBER: 07953325
STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT 31 MARCH 2024
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 14 to 32 form part of these financial statements.
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THE PURE GOLD GROUP LTD
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
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At 1 April 2022 (as previously stated)
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Prior year adjustment - correction of error
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At 1 April 2022 (as restated)
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Comprehensive income for the year
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Total comprehensive income for the year
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Contributions by and distributions to owners
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Dividends: Equity capital
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Shares issued during the year
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Total transactions with owners
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At 1 April 2023 (as previously stated)
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Prior year adjustment - correction of error
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At 1 April 2023 (as restated)
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Comprehensive income for the year
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Total comprehensive income for the year
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Contributions by and distributions to owners
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Dividends: Equity capital
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Total transactions with owners
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The notes on pages 14 to 32 form part of these financial statements.
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THE PURE GOLD GROUP LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
The principal activity of the entity is that of purchasing and selling physical gold and silver, for clients looking to invest.
The Pure Gold Group Ltd is a private company, limited by shares, registered in England and Wales, registration number 07953325.
The registered office is 1 Royal Exchange, London, EC3V 3DG, England.
The financial statements are presented in Sterling (£). Monetary amounts in these financial statements are rounded to the nearest £.
2.Accounting policies
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Basis of preparation of financial statements
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The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).
The following principal accounting policies have been applied:
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Financial Reporting Standard 102 - reduced disclosure exemptions
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The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
∙the requirements of Section 7 Statement of Cash Flows;
∙the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
∙the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
∙the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A;
∙the requirements of Section 33 Related Party Disclosures paragraph 33.7.
This information is included in the consolidated financial statements of The Pure Holding Group Limited as at 31st March 2024 and these financial statements may be obtained from 1 Royal Exchange, Royal Exchange, London, England, EC3V 3DG.
The Director has considered medium term financial forecasts and specifically for 12 months from the date of signing. At the time of approving the financial statements, the director has a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. The director therefore continues to adopt the going concern basis of accounting in preparing the financial statements.
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THE PURE GOLD GROUP LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
2.Accounting policies (continued)
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Foreign currency translation
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Functional and presentation currency
The Company's functional and presentational currency is GBP.
Transactions and balances
Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.
At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.
Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.
Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Statement of income and retained earnings within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'administrative expenses'.
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates and value added tax. The following criteria must also be met before revenue is recognised:
Sale of goods
Revenue from the sale of precious metals can result in either the delivery of the goods to the customer or for the goods to be stored in one of the entity's third party storage providers. The sale is recognised when all of the following conditions are satisfied:
∙the Company has transferred the significant risks and rewards of ownership to the buyer, which is when the product has been delivered or transferred to the client's storage account;
∙the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
∙the amount of revenue can be measured reliably;
∙it is probable that the Company will receive the consideration due under the transaction; and
∙the costs incurred or to be incurred in respect of the transaction can be measured reliably.
Rendering of services
Revenue from a contract to provide storage services for clients' purchased goods is recognised in the period in which the storage services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
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THE PURE GOLD GROUP LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
2.Accounting policies (continued)
∙the amount of revenue can be measured reliably;
∙it is probable that the Company will receive the consideration due under the contract;
∙the completion of the contract at the end of the reporting period can be measured reliably; and
∙the costs incurred and the costs to complete the contract can be measured reliably.
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Operating leases: the Company as lessee
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Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.
Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.
Interest income is recognised in profit or loss using the effective interest method.
Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.
All borrowing costs are recognised in profit or loss in the year in which they are incurred.
Defined contribution pension plan
The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.
The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of financial position. The assets of the plan are held separately from the Company in independently administered funds.
A liability for unused holiday leave is accrued for at the statement of financial position date. This is measured at the salary cost of the future holiday entitlement.
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THE PURE GOLD GROUP LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
2.Accounting policies (continued)
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Current and deferred taxation
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The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company operates and generates income.
Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting date, except that:
∙The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.
Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.
Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.
At each reporting date the company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.
All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.
The estimated useful lives range as follows:
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THE PURE GOLD GROUP LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
2.Accounting policies (continued)
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.
At each reporting date the Company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
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Long-term leasehold property
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The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
Stocks are valued at market value of the precious metal contained in the inventory items, excluding any premium the item might attract due to factors unrelated to its precious metal content. The Director considers market value to be the most appropriate recognition policy on the basis that this information is readily available for the precious metals in which the company trades and provides a more appropriate representation of the company's financial position.
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Cash and cash equivalents
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Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.
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THE PURE GOLD GROUP LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
2.Accounting policies (continued)
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Provisions for liabilities
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Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
Increases in provisions are generally charged as an expense to profit or loss.
The Company enters into basic and non-basic financial instruments and transactions that result in the recognition of financial assets and liabilities such as trade, derivatives and other debtors, creditors and loans to and from related parties.
(i) Financial assets
Basic financial assets, including trade and other debtors, and amounts due from related companies, are initially recognised at transaction price, 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.
Such assets are subsequently carried at amortised cost using the effective interest method.
At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. 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 the Statement of Comprehensive Income.
Non-basic financial instruments such as 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 within the line item the derivative relates to. Currently the company has forward exchange contracts to cover the fluctuation in the exchange rates and commodities such as gold and silver related to purchases of inventories. The company does not currently apply hedge accounting.
Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party or (c) control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions.
(ii) Financial liabilities
Basic financial liabilities, including trade, other creditors, amounts due to group undertakings and accruals, 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 receipts discounted at a market rate of interest.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if payment is
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THE PURE GOLD GROUP LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
2.Accounting policies (continued)
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Financial instruments (continued)
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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.
Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires.
(iii) Offsetting
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.
Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.
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Judgments in applying accounting policies and key sources of estimation uncertainty
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The preparation of the financial statements requires management to make judgments, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates.
Estimates and underlying assumptions are continually evaluated and are based on historical experience and other factors, including expectations of future events that are reasonable under the circumstances. Revisions to accounting estimates are recognised in the period in which the estimates are revised and in any future periods affected
In preparing these financial statements, the directors have had to make the following judgments:
Useful economic lives of tangible assets
The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are reassessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. See note 16 for the carrying amount of the tangible assets, and accounting policy note 2.14 for the useful economic lives of each class of asset.
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THE PURE GOLD GROUP LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
Analysis of turnover by country of destination:
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The operating profit is stated after charging:
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Other operating lease rentals
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THE PURE GOLD GROUP LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
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During the year, the Company obtained the following services from the Company's auditors:
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Fees payable to the Company's auditors for the audit of the Company's financial statements
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Staff costs, including director's remuneration, were as follows:
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The average monthly number of employees, including the director, during the year was as follows:
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Company contributions to defined contribution pension schemes
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During the year retirement benefits were accruing to one director (2023 - NIL) in respect of defined contribution pension schemes.
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THE PURE GOLD GROUP LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
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Income from fixed asset investments
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Other interest receivable
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Interest payable and similar expenses
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THE PURE GOLD GROUP LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
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Current tax on profits for the year
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Origination and reversal of timing differences
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THE PURE GOLD GROUP LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
13.Taxation (continued)
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Factors affecting tax charge for the year
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The tax assessed for the year is lower than (2023 - lower than) the standard rate of corporation tax in the UK of 25% (2023 - 19%). The differences are explained below:
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Profit on ordinary activities before tax
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Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 19%)
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Pension contributions adjustment
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Intangible asset amortisation
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Other timing differences leading to an increase (decrease) in taxation
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Trade intangible fixed assets debits on capital items
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Group relief carried forward losses
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Non-trade financial losses
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Qualifying charitable donations
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Total tax charge for the year
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Factors that may affect future tax charges
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There were no factors that may affect future tax charges.
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Interim dividends on ordinary shares
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THE PURE GOLD GROUP LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
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Charge for the year on owned assets
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THE PURE GOLD GROUP LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
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Long-term leasehold property
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Charge for the year on owned assets
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The net book value of land and buildings may be further analysed as follows:
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Precious metals for resale
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THE PURE GOLD GROUP LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
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Amounts owed by group undertakings
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Prepayments and accrued income
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Cash and cash equivalents
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Creditors: Amounts falling due within one year
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Other taxation and social security
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Obligations under finance lease and hire purchase contracts
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Accruals and deferred income
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THE PURE GOLD GROUP LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
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Creditors: Amounts falling due after more than one year
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Net obligations under finance leases and hire purchase contracts
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Analysis of the maturity of loans is given below:
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Amounts falling due within one year
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Hire purchase and finance leases
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Minimum lease payments under hire purchase fall due as follows:
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Credited to profit or loss
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THE PURE GOLD GROUP LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
24.Deferred taxation (continued)
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The provision for deferred taxation is made up as follows:
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Accelerated capital allowances
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Allotted, called up and fully paid
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105,000 (2023 - 100,000) Ordinary shares of £0.00100 each
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Allotted, called up and partly paid
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£NIL (2023 - 5,000) Ordinary shares of £0.00100 each
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During the year 5,262 ordinary shares of £0.001 each, partly paid shares became fully paid up.
As at year-end, all 105,000 ordinary shares are fully paid.
Profit and loss account
Includes all current and prior period retained profits and losses.
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THE PURE GOLD GROUP LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
Prior Year Adjustment – Revenue and purchases Cut-Off and Goods in Transit
During the current financial year, management identified errors in the application of sales and purchases cut-off procedures and the treatment of goods in transit at the prior reporting date. These errors resulted in the misstatement of certain balances in the prior year’s financial statements:
∙Revenue was overstated and the corresponding deferred income was understated by £3,233,177, due to certain sales made before the year-end not being recognised in the correct period.
∙Cost-of-sales were overstated and closing stock (goods in transit) were understated by £2,833,945, as inventory in transit at the reporting date was not correctly included in stock.
The impact of the errors found above was to reduce profit for 2023 by £399,232.
Prior Year Adjustment – Further purchase Cut-Off error found
The review of cut-off procedures generally led to the discovery of the following error:
∙A purchase invoice error was found showing that purchases were further understated by £1,122,692 in 2023.
The impact of the error found above was to reduce profit for 2023 by £1,122,692.
Prior Year Adjustment – Clearance of errors found in a suspense account
During the current financial year, management identified errors relating to a suspense account. These errors resulted in the misstatement of certain income and expenditure in the prior year’s financial statements:
∙The adjustments required to clear transactions held in a suspense account gave rise to a restatement of 2023 revenue of £113,543 and a restatement of various expenses within the profit and loss account of £25,658. The overall impact on the 2023 profit figure was an increase of £1,165,993.
∙A further impact was to increase the payment received on account creditor by £899,122 with a corresponding increase in the debtors' accounts receivable figure. This amendment has no impact on the 2023 profit.
The net impact of these three misstatements was to understate profit before tax for the year ended 31 March 2023 by £355,991.
Prior Year Adjustment – Incorrectly recorded dividend
The dividend distribution as recorded in the prior year was incorrect. The dividend reported was understated by £1,660,042. The corresponding amendment is shown with the intercompany debtor account with the parent company.
In accordance with FRS 102 Section 10: Accounting Policies, Estimates and Errors, the prior year comparatives have been restated to correct these errors.
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THE PURE GOLD GROUP LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
27.Prior year adjustment (continued)
The statement of financial position at 31 March 2023 has been restated accordingly, and the opening balances for the current year have been adjusted to reflect these changes – this is shown in the Statement Changes in Equity. The overall impact of all of the errors listed above on total equity was to show a restated reserves position which was £2,016,033 less than that previously reported.
The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £123,254 (2023: £87,021). Contributions totaling £14,835 (2023: £1,782) were payable to the fund at the balance sheet date and are included in creditors.
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Commitments under operating leases
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At 31 March 2024 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:
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Later than 1 year and not later than 5 years
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Post balance sheet events
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On the 16th December 2024, following the reporting date, the shareholder of the Company passed a written resolution to cancel and extinguish 5,262 ordinary shares of £0.001 each.
The cancellation of shares does not affect the results or financial position of the Company as at the 31st March 2024 and has therefore not been adjusted for in these financial statements. The transaction will be reflected in the financial statements for the year ending 31st March 2025.
The Company is a wholly owned subsidiary of The Pure Holding Group Ltd, which owns the entire issued share capital of the Company. The registered office and principal place of business is 1 Royal Exchange, London, England, EC3V 3DG. The Pure Holding Group Limited prepares consolidated financial statements.
The holding company is controlled by the company's director, Joshua Saul.
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