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Registered number:
FOR THE YEAR ENDED 31 DECEMBER 2024
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PATERSON SIMONS & CO (AFRICA) LIMITED
COMPANY INFORMATION
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PATERSON SIMONS & CO (AFRICA) LIMITED
CONTENTS
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PATERSON SIMONS & CO (AFRICA) LIMITED
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
The Directors of the Company present their strategic report together with the audited consolidated financial statements for the year ended 31 December 2024.
The principal activity of the Company and its subsidiaries continued to be that of agents and general merchants of specialised lifting and handling equipment. The Strategic Report is a statutory requirement under the Companies Act 2006.
The Directors consider that the main objectives of the business set in 2016 remain current.
2024 saw presidential elections in Mauritania, Ghana and Senegal with successful changes of Government. Worryingly, the trend to authoritarianism continued with Burkina Faso and Mali postponing elections and early in 2025 joining Niger in withdrawing from the ECOWAS regional block. The trend to authoritarianism in those countries has led to some difficult trading environments for Western Mining Companies working in the region, with governments seeking to renegotiate concession agreements and several have been forced to close operations and have had seizures of property and senior personnel to deal with. This, coupled with ongoing concerns over Al Qaida/Boko Haram disruption in the Sahel affecting Northern Nigeria, and most of Mali and Burkina Faso, make the area hard to operate in and our sales into those areas reflect that. There are some signs that those three Governments cannot afford to turn their back on the Western companies that work there, and rapprochement is likely. Guinea Republic, which has long been an independent nation in the Francophone world, has also taken a strong approach to international operators and is forcing local content rules which adds some complexity to sales there. The steps we took to look at contingency planning for travel activities during 2020 remain in place. We expect the political instability to continue to affect mining activity in those regions. 2025 will see presidential elections in Cote d'Ivoire and Togo. Cancelled elections in Niger, Burkina Faso and Mali are rescheduled but may not materialise or may struggle to maintain democratic norms. 2025 will also see elections in Cameroon where succession of the World's longest standing president will likely cause economic and democratic uncertainty. Our customer base is predominantly well-known international Port and Mining companies, but we continue to monitor our customer base to ensure that we maintain due diligence records. Banks and suppliers are increasingly looking for assurances that customers are not breaking sanctions or funding terrorism. During 2025 we will be looking to standardise records and processes around due diligence for customers and suppliers. The African Development Bank estimated that the economies of Central and West Africa grew by 4% and 4.5% in 2024. In 2025 growth is expected to remain stable in Central Africa and reach 5% in West Africa. For West Africa, most of that growth is predicted to come from the Francophone territories with Oil and Gas having a big influence in Senegal and private infrastructure developments helping Togo, Benin and Cote d'Ivoire. Nigeria, Ghana and Sierra Leone will remain around 4%. The Ghana Cedi has stabilised, helped by strong gold pricing and efforts to shore up the cocoa industry. Nigeria has come through a difficult period and oil and gas exports have recovered as refineries have increased
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PATERSON SIMONS & CO (AFRICA) LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
output.
Across the region, container volumes have increased with transhipment cargo driving some of the volumes in Tema, Lome, Abidjan, and Lekki. Further large port projects are planned for the region, and we continue to monitor those for opportunity. Our strategy to continue to offer quality service, parts, retrofits/upgrades and aged replacements in the port sector is well established. PSAL continues to enjoy the trust of all the main terminal operators in the region who generate much of our income and in many areas, relationships are deepening. In recognition of these deepening relationships, we have implemented a strategy for key account management and have further implemented initiatives to enhance our logistics support. During 2025 we will extend that to inventory analysis. As the RTG fleet begins to age, we are seeing an increase in interest in port service solutions (safety and productivity retrofits and technology upgrades) and expect this to be an area for growth in coming years. Gold remains the main commodity of interest to us. The gold price hit record highs during 2024 and is expected to continue to climb into 2025. The pricing remains strong enough to support continued investment; however, regulatory and environment approvals along with security concerns in the Sahel seem to have limited expansions to existing projects rather than bringing new mines into production. The oil price has been hovering around the USD 75-80/barrel mark for most of 2024. The BP project offshore Senegal aside, this has not been high enough to support offshore exploration in the Gulf of Guinea. Many other commodities have continued to see pricing at historically high levels. Copper continues to remain strong from its 2023 highs and presents growth opportunities in Mauritania. Liberia's long delayed iron ore palletisation project has delivered strong sales and is expected to result in service growth in coming years. The Cocoa price has been volatile during 2024, and West African crops were poor. However, we delivered equipment to one major mechanisation project during the year, and we expect to be able to capitalise on this industry further in the future. Supply chain problems eased during the year which helped reduce a significant back-order volume we carried over from 2024. Spare parts intake surpassed all previous records as sales remained high. During 2024 the UK labour market stabilised enabling us to end the year with a much more settled workforce. We continue to look to train, develop and invest in people and systems across the Group with initiatives to aid staff retention a prime focus. We have continued to experience delays in implementation of our Microsoft Dynamics based CRM system, in part owing to the complexity of our market. We now expect to deliver this early in Q2 2025. Our industry often struggles to maintain strong structured data and we are taking steps to ensure that we invest in resources and tools to leverage this area. We have had strong IT policies in place for several years and regularly review risk and implement strategies to deal with them. Our target is to achieve the UK Government approved Cyber essentials certification for the entire PSAL Group during Q1 2025. The business has operated in what are generally considered as high-risk areas for fraud, money laundering and increasingly sanctions. We have reviewed our policies in this area and although we are largely dealing with multi-national enterprises where ownership is a matter of public record and have long employed 'know your customer' techniques to manage the risk to satisfy external stakeholders (banks and suppliers) we need to maintain better records in that area. We are currently revising our new & existing customer documentation to ensure beneficial ownership records are documented and maintained particularly for any parties we highlight as high risk. Steady progress has been made during the year on our Health and Safety. Our accredited ISO45001 system is
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PATERSON SIMONS & CO (AFRICA) LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
now expected to be in place by Q1 2025. Once that is complete, we will start to look at expanding the scope of the ISO9001 QMS to bring the subsidiaries into the structure. The aim is to integrate the QMS and HSE systems.
The Directors of the business remain close to the day-to-day operations of the business which mitigates a lot of risk. We continue to assess risk and introduce formal policies and document procedures to mitigate them.
The group turnover increased by 28.7 % on the previous year (2023 - increase of 11.1%). The commissions
element of the total turnover increased by 30.0% (2023 increase of 61.2%) on the previous year whilst that for the sale of goods increased by 37.4% (2023 Increase of 13.3%). This had a small increase on the Gross profit as commissions generate higher margins than the sale of goods. The Group achieved a Gross profit of 24.0% in 2024 (27.7% - 2023). Staff numbers have stayed the same in total with 124 employed across the group although the split between the various companies has changed a little. The overall staffing costs for 2024 totalled £3.4 Million (2023 - £3.3 Million). Salaries for the other subsidiary staff were again increased during the year 2024 to keep in line with local inflation rises and the increasing cost of living in the West African regions in which the Group operates. The interest rates across West Africa continued to increase year on year. Added to some significant increases in West African rates of inflation this has given rise to high increases in overheads and administration costs. There are decreased amounts owed to the parent company by the subsidiaries, however these balances are still substantial and hence exposes the group to more risk of foreign exchange losses. 2024 has again seen an increase to the Foreign Exchange Provision of £200,906 (2023 - £187,264 increase) arising due to the continued decline in the Cedi (Ghana) and Naira (Nigeria) from the start to the end of the current year. This figure has been adjusted in Other Comprehensive Income. The resultant profit before tax for the year was £1,005,468 (2023 - £574,849).
The Group's financial instruments principally comprise of trade debtors, cash at bank and trade creditors, the main purpose of which is to finance the Group's operations. In addition, the Group has various other financial assets and liabilities such as other creditors arising directly from operations. It is, and has been throughout the period under review, the Group's policy that no trading in financial instruments shall be undertaken.
The main risks arising from the Group's financial instruments are liquidity, credit and foreign exchange risk. The Board reviews and agrees policies for managing each of these risks and they are summarised below. These policies have remained unchanged throughout the period. Liquidity risk The Group is susceptible to liquidity risk on large plant deals. Management prepare and review weekly cashflow forecasts to ensure sufficient funds are held for commitments. Short term shareholder loans are available to the group to inject cash when required. Credit risk All debtors are subject to credit verification procedures by the Board. Debtors are reviewed on a regular basis and provision is made for doubtful debts when necessary.
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PATERSON SIMONS & CO (AFRICA) LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
Foreign exchange risk
The Group is exposed to exchange rate fluctuations particularly where goods are invoiced in foreign currency. This is largely managed through a natural hedge generated from purchases denominated in the same currency.
This report was approved by the board on 30 September 2025 and signed on its behalf.
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PATERSON SIMONS & CO (AFRICA) LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
The directors present their report and the financial statements for the year ended 31 December 2024.
The directors are responsible for preparing the Group Strategic Report, the Directors' Report and the consolidated financial statements in accordance with applicable law and regulations.
In preparing these financial statements, the directors are required to:
∙select suitable accounting policies for the Group's financial statements and then apply them consistently;
∙make judgments and accounting estimates that are reasonable and prudent;
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group 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 the Group and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The profit for the year, after taxation and minority interests, amounted to £562,816 (2023 - £362,344).
The directors do not propose the payment of a dividend.
The directors have highlighted in the strategic report on pages 1-4, a review of the current year results, future outlook expectations, risks and key performance indicators for the Group.
The directors who served during the year were:
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PATERSON SIMONS & CO (AFRICA) LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
There have been no significant events affecting the Group since the year end.
The auditors, Sumer Auditco Limited, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board on
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PATERSON SIMONS & CO (AFRICA) LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PATERSON SIMONS & CO (AFRICA) LIMITED
We have audited the financial statements of Paterson Simons & Co (Africa) Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 December 2024, which comprise the Group Statement of Comprehensive Income, the Group and Company Balance Sheets, the Group Statement of Cash Flows, the Group and Company 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 Group 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 Group's or the parent Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
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PATERSON SIMONS & CO (AFRICA) LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PATERSON SIMONS & CO (AFRICA) LIMITED (CONTINUED)
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.
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Group 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 Group 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 Group and the parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Directors' Report.
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PATERSON SIMONS & CO (AFRICA) LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PATERSON SIMONS & CO (AFRICA) 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 Group 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:
In order to identify and assess the risks of material misstatements, including fraud and non-compliance with laws and regulations that could be expected to have a material impact on the financial statements, we have considered: • the results of our enquiries of management and those charged with governance of their assessment of the risks of fraud and irregularities; • the nature of the Group, including its management structure and control systems (including the opportunity for management to override such controls); • management’s incentives and opportunities for fraudulent manipulation of the financial statements including the Company’s remuneration and bonus policies and performance targets; and • the industry and environment in which it operates. We also considered tax and pension legislation and laws and regulations relating to employment and the preparation and presentation of the financial statements such as the Companies Act 2006. Based on this understanding we identified the following matters as being of significance to the entity: • laws and regulations considered to have a direct effect on the financial statements including UK financial reporting standards, Company Law, tax and pension legislation and distributable profits legislation; • the timing of the recognition of commercial income; • compliance with legislation relating to health and safety and operating licenses; • management bias in selecting accounting policies and determining estimates; • inappropriate journal entries;and • recoverability of debtors. We communicated the outcomes of these discussions and enquiries, as well as consideration as to where and how fraud may occur in the entity, to all engagement team members including the auditors of significant components.
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PATERSON SIMONS & CO (AFRICA) LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PATERSON SIMONS & CO (AFRICA) LIMITED (CONTINUED)
Audit procedures undertaken by the Group engagement team and/or component auditors in response to the potential risks relating to irregularities (which include fraud and non-compliance with laws and regulations) comprised:
• enquiries of management and those charged with governance as to whether the entity complies with such laws and regulations and discussion with the same regarding any known or suspected instances of non- compliance; • enquiries with the same concerning any actual or potential litigation or claims; • inspection of relevant legal correspondence; • assessment of matters reported to management and the result of the subsequent investigation; • obtaining an understanding of the relevant controls during the period and consideration of their implementation; • obtaining an understanding of the policies and controls over the recognition of income and testing their implementation during the year; • challenging assumptions made by management in their specific accounting policies and estimates, in particular in relation to depreciation of tangible fixed assets and impairment of investments; • identifying and testing journal entries, in particular any journal entries posted with unusual account combinations or crediting revenue or cash; • assessing the recovery of debtors in the period since the balance sheet date and challenging assumptions made by management regarding the recovery of balances which remain outstanding; • reviewing the financial statements for compliance with the relevant disclosure requirements; • performing analytical procedures to identify any unusual or unexpected relationships or unexpected movements in account balances which may be indicative of fraud; • reviewing correspondence with HMRC; • evaluating the underlying business reasons for any unusual transactions; and • review of component auditors' working papers. No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity’s controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK).
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.
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PATERSON SIMONS & CO (AFRICA) LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PATERSON SIMONS & CO (AFRICA) LIMITED (CONTINUED)
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
Statutory Auditors
14th Floor
33 Cavendish Square
W1G 0PW
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PATERSON SIMONS & CO (AFRICA) LIMITED
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
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PATERSON SIMONS & CO (AFRICA) LIMITED
REGISTERED NUMBER: 00453843
CONSOLIDATED 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 on
The notes on pages 19 to 38 form part of these financial statements.
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PATERSON SIMONS & CO (AFRICA) LIMITED
REGISTERED NUMBER: 00453843
COMPANY 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 on
The notes on pages 19 to 38 form part of these financial statements.
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