Company Registration Number 00172842
PARMLEY GRAHAM LIMITED
COMPANY INFORMATION
PARMLEY GRAHAM LIMITED
CONTENTS
PARMLEY GRAHAM LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
The Directors are pleased to present their Annual Report and the audited financial statements for the year ended 31 December 2024.
The principal activity of the Company is the specialist distribution of factory automation products, carried out from nine branches located throughout the United Kingdom. Distribution agreements and key strategic relationships with market-leading global manufacturers enable the Company to remain the leading independent distributor of such automation and control products in the UK.
The Directors consider the key performance indicators of the financial performance and position of the Company to be turnover, profit before tax and net assets.
Turnover in 2024 was £64.43m (2023 £80.31m) and the Company made a profit before tax for the year of £1.50m (2023 £4.18m). Net assets increased to £12.11m in the year (2023 £12.06m).
The strong financial performance in the year was the result of the relentless focus on customer service through communication with customers and suppliers and technical support.
The Directors consider the key performance indicators of the financial performance and position of the Company to be turnover, profit before tax and net assets.
Turnover in 2024 was £64.43m (2023 £80.31m) and the Company made a profit before tax for the year of £1.50m (2023 £4.18m). Net assets increased to £12.11m in the year (2023 £12.06m).
The strong financial performance in the year was the result of the relentless focus on customer service through communication with customers and suppliers and technical support.
Competitive pressure continues to be a key risk for the Company, operating in a highly competitive market with continued pressure on gross margin. The risk is mitigated by understanding and responding to the needs of our customers, through the provision of value added, innovative solutions and excellent technical support and customer service. Combined with efficient management of costs and strategic investment in technology, recruitment and training, enables the Company to deliver strong profits.
The foreign currency exposure is low as the Company predominantly trades with UK subsidiaries of overseas manufacturers.
Credit and liquidity risks are managed through robust credit control procedures and careful cost and working capital controls.
The Directors have reviewed the above key risks and have concluded that they do not expect these risks will have a significant impact on the Company’s ability to continue to operate under the current business model.
The foreign currency exposure is low as the Company predominantly trades with UK subsidiaries of overseas manufacturers.
Credit and liquidity risks are managed through robust credit control procedures and careful cost and working capital controls.
The Directors have reviewed the above key risks and have concluded that they do not expect these risks will have a significant impact on the Company’s ability to continue to operate under the current business model.
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PARMLEY GRAHAM LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
Section 172 of the Companies Act 2006 requires a director of a company 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, amongst other matters, to the following:
• the likely consequence 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 between members of the company.
In discharging our section 172 duties, the Directors of Parmley Graham have regard to the factors set out above.
We also have regard to other factors which we consider relevant to the decision being made. Those factors, for example, include the interests and views of our shareholders, pension scheme members and our bank.
The Company's key stakeholders are its employees, customers, suppliers, shareholders, pension scheme members and trustees, Lloyds Bank plc and the local communities in which it operates.
During the year, regular reviews were performed with management and staff and Pension Trustee meetings were held to consider the financial position of the defined benefit pension scheme.
Board meetings are held periodically to review the performance of the business and to consider key decisions and the continued appropriateness of the Company's strategic objectives. Strategic objectives are set to achieve both short-term targets and to build a long-term sustainable business. Strategic goals are cascaded through the organisation using objectives and measures and regular reviews are held between the directors and managers to ensure actions are defined and prioritised to achieve the goals.
Business relationships - the Directors regard fostering strong relationships with our customers, through regular and open communication, is critical to ensure the Company continues to provide innovative technical solutions to meet their requirements. Equally, working collaboratively with our key suppliers, enables the Company to offer market leading products whilst maintaining customer service through purchasing and supply chain management.
Employee engagement - the Directors recognise the importance of the employees feeling a strong sense of involvement in the business and therefore some of the key activities involving employees are as follows:
• Communication - the Company encourages open communication with employees, aided by a very flat management structure. Progress towards business goals and internal updates are regularly communicated
through both management meetings and written communications;
• Employees participate in an annual incentive plan which links their individual objectives, responsibilities and contribution to the overall achievements of the Company;
• Regular training to develop technical, functional and personal skills to improve performance;
• The availability of an online employee information centre, including an employee handbook and information on business processes and policies, to support employees with questions or concerns. Each employee has a personal responsibility to their fellow employees and to the Company to follow company safety and security procedures, as well as all applicable laws and regulations;
• Regular reviews of employee benefits and conditions.
In doing this, section 172 requires a director to have regard, amongst other matters, to the following:
• the likely consequence 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 between members of the company.
In discharging our section 172 duties, the Directors of Parmley Graham have regard to the factors set out above.
We also have regard to other factors which we consider relevant to the decision being made. Those factors, for example, include the interests and views of our shareholders, pension scheme members and our bank.
The Company's key stakeholders are its employees, customers, suppliers, shareholders, pension scheme members and trustees, Lloyds Bank plc and the local communities in which it operates.
During the year, regular reviews were performed with management and staff and Pension Trustee meetings were held to consider the financial position of the defined benefit pension scheme.
Board meetings are held periodically to review the performance of the business and to consider key decisions and the continued appropriateness of the Company's strategic objectives. Strategic objectives are set to achieve both short-term targets and to build a long-term sustainable business. Strategic goals are cascaded through the organisation using objectives and measures and regular reviews are held between the directors and managers to ensure actions are defined and prioritised to achieve the goals.
Business relationships - the Directors regard fostering strong relationships with our customers, through regular and open communication, is critical to ensure the Company continues to provide innovative technical solutions to meet their requirements. Equally, working collaboratively with our key suppliers, enables the Company to offer market leading products whilst maintaining customer service through purchasing and supply chain management.
Employee engagement - the Directors recognise the importance of the employees feeling a strong sense of involvement in the business and therefore some of the key activities involving employees are as follows:
• Communication - the Company encourages open communication with employees, aided by a very flat management structure. Progress towards business goals and internal updates are regularly communicated
through both management meetings and written communications;
• Employees participate in an annual incentive plan which links their individual objectives, responsibilities and contribution to the overall achievements of the Company;
• Regular training to develop technical, functional and personal skills to improve performance;
• The availability of an online employee information centre, including an employee handbook and information on business processes and policies, to support employees with questions or concerns. Each employee has a personal responsibility to their fellow employees and to the Company to follow company safety and security procedures, as well as all applicable laws and regulations;
• Regular reviews of employee benefits and conditions.
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PARMLEY GRAHAM LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
Impact on the environment - we work with suppliers to maximise the value and quality of their products and to minimise the environmental footprint of the operations. The Company encourages the sustainable use of resources, for example, by transitioning to hybrid and electric vehicles, utilising solar panels and using technology to maintain a balance between virtual meetings and face-to-face meetings.
The Company strives to maintain the highest ethical standards when conducting business, with policies and procedures in place to support employees to maintain standards.
The Company strives to maintain the highest ethical standards when conducting business, with policies and procedures in place to support employees to maintain standards.
The Company continues to work with market leading manufacturers to provide innovative products and solutions, whilst maintaining and improving customer service through continuous investment in technology, people and processes. The recruitment, retention and development of staff, combined with continued investment in online capabilities, remain key enablers for the Company to fulfil its drive to exceed customer expectations.
The Directors expect the level of business to be sustained in the 2025 financial year.
The Directors expect the level of business to be sustained in the 2025 financial year.
This report was approved by the board and signed on its behalf:
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PARMLEY GRAHAM LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
The Directors are pleased to present their Annual Report and the audited financial statements for the year ended 31 December 2024.
The directors are responsible for preparing the Strategic Report, the Directors' Report and the audited financial statements in accordance with applicable law and regulations.
In preparing these audited financial statements, the directors are required to:
∙select suitable accounting policies for the Company's financial statements and then apply them consistently;
∙make judgements 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 audited financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and to enable them to ensure that the audited financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The profit for the year, after taxation, amounted to £1,096,000 (2023 - £3,151,000).
The directors paid dividends in the year of £1,100,000 (2023 - £500,000) (note 12 to the financial statements).
The directors who served during the year and up to the date of this report were as follows:
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PARMLEY GRAHAM LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
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PARMLEY GRAHAM LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
The Company’s activities expose it to a number of financial risks, including credit risk, supplier risk and cash flow risk. The Company has strict credit control procedures both at branch and head office level. Strong links are maintained with key suppliers, who are paid in accordance with agreed terms. Stock levels are under daily review along with slow moving items. The Company has an agreed overdraft with its bankers to manage monthly cash flow fluctuations.
The Company continues to operate a defined benefit pension scheme, which is closed to new members. The latest full triannual actuarial valuation of the scheme was at 31 December 2022. The Company has agreed to make additional annual contributions to the scheme to eliminate the deficits disclosed by these valuations. The amount of the deficit funding contribution for 2024 was £235,000. The amount for the following year will be £235,000.
FRS 102 requires a prescriptive approach to valuing the assets and liabilities in the scheme which is not reflected in the commercial solution resulting form the full actuarial valuation. The Directors consider that the risk is well understood and managed. The next full actuarial valuation of the scheme will be carried out at 31 December 2025.
The Company continues to operate a defined benefit pension scheme, which is closed to new members. The latest full triannual actuarial valuation of the scheme was at 31 December 2022. The Company has agreed to make additional annual contributions to the scheme to eliminate the deficits disclosed by these valuations. The amount of the deficit funding contribution for 2024 was £235,000. The amount for the following year will be £235,000.
FRS 102 requires a prescriptive approach to valuing the assets and liabilities in the scheme which is not reflected in the commercial solution resulting form the full actuarial valuation. The Directors consider that the risk is well understood and managed. The next full actuarial valuation of the scheme will be carried out at 31 December 2025.
There have been no significant events affecting the Company since the year end.
The strategic report has been prepared on pages 1-3 in accordance with section 414C(11) of the Companies Act 2006 (Strategic and Directors’ Report) Regulations 2013.
Armstrong Watson Audit Limited were appointed as auditors on 23 September 2024, and will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board and signed on its behalf.
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PARMLEY GRAHAM LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PARMLEY GRAHAM LIMITED
We have audited the financial statements of Parmley Graham Limited (the 'Company') for the year ended 31 December 2024, which comprise the Statement of Comprehensive Income, the Balance Sheet, the Statement of Cash Flows, 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).
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.
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' 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.
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PARMLEY GRAHAM LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PARMLEY GRAHAM LIMITED (CONTINUED)
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors' Report.
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PARMLEY GRAHAM LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PARMLEY GRAHAM LIMITED (CONTINUED)
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:
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:
• The engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
• We identified the laws and regulations applicable to the company through discussions with directors and other management;
• We assessed the extent of compliance with the laws and regulations identified above through making enquiries of management; and
• Identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.
We assessed the susceptibility of the Company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
• Making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
• Considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.
To address the risk of fraud through management bias and override of controls, we:
• Performed analytical procedures as a risk assessment tool to identify any unusual or unexpected relationships; and
• Tested journal entries to identify unusual transactions; and
• Tested the operating effectiveness of key controls; and
• Reviewed the application of accounting policies
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
• Agreeing financial statement disclosures to underlying supporting documentation; and
• Enquiring of management as to actual and potential litigation and claims.
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PARMLEY GRAHAM LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PARMLEY GRAHAM LIMITED (CONTINUED)
Due to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing fraud or non-compliance with laws and regulations and cannot be expected to detect all fraud and non-compliance with laws and regulations.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' 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 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.
for and on behalf of
Chartered Accountants & Statutory Auditors
Newcastle
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PARMLEY GRAHAM LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
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PARMLEY GRAHAM LIMITED
REGISTERED NUMBER: 00172842
BALANCE SHEET
AS AT 31 DECEMBER 2024
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 16 to 33 form part of these financial statements.
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PARMLEY GRAHAM LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
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PARMLEY GRAHAM LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2024
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PARMLEY GRAHAM LIMITED
ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 DECEMBER 2024
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PARMLEY GRAHAM LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Parmley Graham Limited is a private company limited by shares, incorporated in England and Wales (reg. no. 172842). The registered office is South Shore Road, Gateshead, Tyne & Wear, NE8 3AE. The principal activities of the Company are set out in the strategic report on page 1.
2.Accounting policies
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 judgement in applying the Company's accounting policies (see note 3).
All amounts in the financial statements have been rounded to the nearest £1,000.
The following principal accounting policies have been applied:
After making enquiries, the Directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for the next 12 months from date of signing these financial statements. Accordingly, they continue to adopt the going concern basis in preparing the financial statements.
Functional and presentation currency
Transactions and balances
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PARMLEY GRAHAM LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
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 at the fair value of the consideration received or receivable, is stated net of value added tax and trade discounts and is recognised when the significant risks and rewards are considered to have transferred to the buyer, generally when goods are physically delivered to the customer.
The Company continually strives to improve its processes through technical and other innovation. Such research and development expenditure is written off in the year in which it is incurred.
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PARMLEY GRAHAM LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
Defined benefit pension plan
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PARMLEY GRAHAM LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
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.
The estimated useful lives range as follows:
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.
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PARMLEY GRAHAM LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
Short-term debtors are measured at transaction price, less any impairment.
Short-term creditors are measured at the transaction price. Other financial liabilities are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
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PARMLEY GRAHAM LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.
The Company has elected to apply the recognition and measurement provisions of IFRS 9 Financial Instruments (as adopted by the UK Endorsement Board) with the disclosure requirements of Sections 11 and 12 and the other presentation requirements of FRS 102.
Financial instruments are recognised in the Company's Balance Sheet when the Company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.
Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments.
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PARMLEY GRAHAM LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
The estimates and underlying assumptions are reviewed on an on-going basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period or in the period of the revision and future periods if the revision affects both current and future periods.
Critical accounting judgements
Provision is made for obsolete and slow moving stock items using judgements of the directors regarding future sales potential and possible returns to suppliers.
Key sources of estimation uncertainty
The costs, assets and liabilities of the defined benefit pension scheme are determined using methods relying on actuarial estimates and assumptions. Details of the key assumptions are set out in note 21 along with an indication of the impact of changes to the assumptions.
The Company's entire turnover arises from its principal activities. An analysis of turnover by geographical market is given below:
Analysis of turnover by country of destination:
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PARMLEY GRAHAM LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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PARMLEY GRAHAM LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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PARMLEY GRAHAM LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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PARMLEY GRAHAM LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
11.Taxation (continued)
There were no factors that may affect future tax charges.
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PARMLEY GRAHAM LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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PARMLEY GRAHAM LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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PARMLEY GRAHAM LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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Capital redemption reserve
Profit and loss account
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PARMLEY GRAHAM LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
The Company contributes to money purchase schemes for eligible employees, including directors. The pension cost charge for the year represents contributions payable by the Company to the funds and amounted to £229,000 (2023: £211,000).
As explained in the accounting policies set out in note 2 on page 18, the Company also operates a pension scheme providing benefits based on final pensionable pay. The pension cost relating to the defined benefit scheme is assessed in accordance with the advice of a qualified actuary using the projected unit credit method.
The latest full triannual actuarial valuation of the defined benefit scheme was carried out at December 2022 by Mr GR Foden, Fellow of the Institute of Actuaries. The Company has agreed to make annual contributions to the scheme to eliminate the deficits disclosed by these valuations. The annual deficit funding contributions based on the valuation in 2022 expected the deficit to be eliminated by the end of 2026. The amount of the deficit funding contribution for 2024 was £235,000. The amount required in the following year is £235,000.
The actuary has updated the full actuarial valuation to 31 December 2024 for the purposes of Financial Reporting Standard 102. The major assumptions used in this update were:
2024 2023
Salary inflation rate 2.00% 2.00%
Future pension increases - post 88 GMP 2.75% 2.70%
Future pension increases - post 1997 benefits 2.75% 2.70%
Future pension increases - post 2006 benefits 2.50% 2.50%
Future rate of revaluation of deferred pensions 2.75% 2.70%
Discount rate 5.15% 4.35%
Inflation rate - RPI 3.45% 3.40%
Inflation rate - CPI 2.75% 2.70%
Mortality assumption (pre and post retirement) S3PA S3PA
Improvements in longevity CMI 2023 CMI 2022
Underpin 1.25% 1.25%
Commutation - % of members taking the maximum cash on retirement 90% 90%
Life expectancy at age 65 for current pensioners - men 21.3 21.4
Life expectancy at age 65 for current pensioners - women 23.9 23.8
Life expectancy at age 65 for future pensioners now aged 45 - men 22.6 22.5
Longevity at age 65 for future pensioners now aged 45 - women 25.3 25.2
The base mortality rates adopted at 31 December 2024 are in accordance with the S3PA tables published by the Actuarial Profession (2023: S3PA tables).
An allowance has been made for future improvements in longevity in accordance with CMI (Continuous Mortality Investigation) 2023 (2023: 2022) projections with a 1.25% (2023: 1.25%) per annum long-term rate of improvement for both men and women.
The latest full triannual actuarial valuation of the defined benefit scheme was carried out at December 2022 by Mr GR Foden, Fellow of the Institute of Actuaries. The Company has agreed to make annual contributions to the scheme to eliminate the deficits disclosed by these valuations. The annual deficit funding contributions based on the valuation in 2022 expected the deficit to be eliminated by the end of 2026. The amount of the deficit funding contribution for 2024 was £235,000. The amount required in the following year is £235,000.
The actuary has updated the full actuarial valuation to 31 December 2024 for the purposes of Financial Reporting Standard 102. The major assumptions used in this update were:
2024 2023
Salary inflation rate 2.00% 2.00%
Future pension increases - post 88 GMP 2.75% 2.70%
Future pension increases - post 1997 benefits 2.75% 2.70%
Future pension increases - post 2006 benefits 2.50% 2.50%
Future rate of revaluation of deferred pensions 2.75% 2.70%
Discount rate 5.15% 4.35%
Inflation rate - RPI 3.45% 3.40%
Inflation rate - CPI 2.75% 2.70%
Mortality assumption (pre and post retirement) S3PA S3PA
Improvements in longevity CMI 2023 CMI 2022
Underpin 1.25% 1.25%
Commutation - % of members taking the maximum cash on retirement 90% 90%
Life expectancy at age 65 for current pensioners - men 21.3 21.4
Life expectancy at age 65 for current pensioners - women 23.9 23.8
Life expectancy at age 65 for future pensioners now aged 45 - men 22.6 22.5
Longevity at age 65 for future pensioners now aged 45 - women 25.3 25.2
The base mortality rates adopted at 31 December 2024 are in accordance with the S3PA tables published by the Actuarial Profession (2023: S3PA tables).
An allowance has been made for future improvements in longevity in accordance with CMI (Continuous Mortality Investigation) 2023 (2023: 2022) projections with a 1.25% (2023: 1.25%) per annum long-term rate of improvement for both men and women.
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PARMLEY GRAHAM LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
21.Pension commitments (continued)
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PARMLEY GRAHAM LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
21.Pension commitments (continued)
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PARMLEY GRAHAM LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
21.Pension commitments (continued)
The Company is controlled by M Wilson , the majority shareholder.
The Company owns the entire issued share capital of Parmley Graham (Teesside) Limited, a company registered in England and Wales. The subsidiary has the same registered address as the parent company. The original cost of the investment in this subsidiary undertaking amounted to £200 and full provision against this investment has been made in these financial statements. The subsidiary undertaking has not traded during the year and its financial statements have not been consolidated into Parmley Graham Limited as the directors consider them to be immaterial.
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