Registration number:
PDI (Holdings) Limited
for the Year Ended 31 October 2024
PDI (Holdings) Limited
Contents
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Company Information |
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Strategic Report |
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Director's Report |
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Statement of Director's Responsibilities |
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Independent Auditor's Report |
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Consolidated Profit and Loss Account |
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Consolidated Statement of Comprehensive Income |
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Consolidated Balance Sheet |
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Balance Sheet |
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Consolidated Statement of Changes in Equity |
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Statement of Changes in Equity |
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Consolidated Statement of Cash Flows |
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Notes to the Financial Statements |
PDI (Holdings) Limited
Company Information
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Director |
Mr Davide Padoa |
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Company secretary |
Paul Alexander Brooks Molle |
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Registered office |
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Auditors |
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PDI (Holdings) Limited
Strategic Report for the Year Ended 31 October 2024
The director presents his strategic report for the year ended 31 October 2024.
Principal activity
The principal activity of the group is that of design and development consultants.
Fair review of the business
Group turnover for the year was £4 million (2023 - £4.6 million) and loss before tax was £112K (2023 - loss of £142K). Group net assets at 31 October 2024 were £6 million (2023 - £6.3 million).
2024 proved to be another difficult trading year, with both contracted work and new business from pipeline both underperforming.
That said, this matched the ongoing challenges for the global construction markets and supply chains.
Support from long-term clients and the successful completion of a number of design stages on important projects remain a positive factor.
The Directors remain confident in the company’s strategic direction and market positioning and believe an additional push from a revised business development point of view will enhance future results.
A healthy pipeline shows a positive outlook for the future periods and Management see fit to maintain a focus on controlling costs at the same time as improving efficient project delivery.
PDI (Holdings) Limited
Strategic Report for the Year Ended 31 October 2024
Principal risks and uncertainties
The Group's profitability relies on its success in the architectural field and is subject to a number of risks. These include but are not limited to:
- Attracting and retaining staff of the appropriate calibre;
- The global demand for construction projects;
- Treasury and financial risks; and
- Competition within the sector.
The Group is also subject to the fluctuation of the property market although property in the UK and Europe remains a stable investment option and 2021 saw revaluation of the company’s investment property to £9 million.
Credit Risk - Due to the uncertain economic climate that the business is currently operating in, the risk of bad debts has increased. Measures taken to ensure risk is minimised include an enhanced client vetting, onboarding and monitoring processes.
Market Risk - The directors do not consider that the Group is unduly exposed to market risk. The company carries out business in Sterling, US Dollars and Euros and maintains separate bank accounts for each currency which mitigates its currency risk exposure. The Groupis exposed to interest rate risk in relation to long term debt funding however it has been able to service the debt without any difficulties.
Liquidity Risk - The Group places great importance on managing its liquidity closely, ensuring that there is sufficient cash to settle its short term obligations.This was achieved as a result of the continued success of the business, improved payments terms from key suppliers and an enhanced credit control function within the Group.
Covid-19 - As a result of the economic impact of the Covid epidemic and the challenges that this has brought about, the board is continually monitoring the contracted market across all of its international trading entities. By way of observing a flexible cost base, in line with its level of contracted turnover and continuous pipeline, the board are confident in addressing foreseeable uncertainties to avoid any negative effect these may have.
Approved and authorised by the
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PDI (Holdings) Limited
Director's Report for the Year Ended 31 October 2024
The director presents his report and the for the year ended 31 October 2024.
Director of the group
The director who held office during the year was as follows:
Information included in the Strategic Report
The Group has chosen in accordance with Section 414C(11) of the Companies Act 2006 to include certain disclosures required under Section 416 of the Companies Act 2006 within the Strategic Report.
Disclosure of information to the auditor
The director has taken steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditor is aware of that information. The director confirms that there is no relevant information that he knows of and of which he knows the auditor is unaware.
Approved and authorised by the
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PDI (Holdings) Limited
Statement of Director's Responsibilities
The director acknowledges his responsibilities for preparing the Annual 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 United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). 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 group and the company and of the profit or loss of the group for that period. In preparing these financial statements, the director is required to:
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select suitable accounting policies and apply them consistently; |
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make judgements and accounting estimates that are reasonable and prudent; |
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state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and |
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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 group's and the company's transactions and disclose with reasonable accuracy at any time the financial position of the group and the company and enable him to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the group and the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
PDI (Holdings) Limited
Independent Auditor's Report to the Members of PDI (Holdings) Limited
Opinion
We have audited the financial statements of PDI (Holdings) Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 October 2024, which comprise the Consolidated Profit and Loss Account, Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Balance Sheet, Consolidated Statement of Changes in Equity, Statement of Changes in Equity, Consolidated Statement of Cash Flows, and Notes to the Financial Statements, 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 group's and the parent company's affairs as at 31 October 2024 and of the group's 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. |
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the 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 group's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were 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.
Other information
The director are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. 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.
In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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.
PDI (Holdings) Limited
Independent Auditor's Report to the Members of PDI (Holdings) Limited
Opinion on other matter prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
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the information given in the Strategic Report and Director's Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
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the Strategic Report and Director's Report have been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception
In the light of our 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 and the Director's Report.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
• | adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
• | the parent company 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 the director
As explained more fully in the Statement of Director's Responsibilities set out on page 5, 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 group’s and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the director either intends to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so.
Auditor Responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
PDI (Holdings) Limited
Independent Auditor's Report to the Members of PDI (Holdings) Limited
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
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. Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud 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 anagement, and from our commercial knowledge and experience of the sector in which the company operates;
-We focused on specific laws and regulations which we considered may have a direct impact material effect on the financial statements, or the operations of the company which included the Companies Act 2006, taxation legislation, data protection, anti-bribery, fire and safety, landlord and tenant act, and health and safety legislation;
-We assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and
-Identified laws and regulations were communicated within the audit team and the team remained alert to instances of non-compliance throughout the audit.
We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to involve the completeness and timing of income recognition and the override of controls by management.
To address the risk of fraud in relation to revenue recognition, we:
- Performed detailed substantive testing to address completeness and accuracy of sales;
- Assessed the appropriateness and application of the accounting policy concerning income recognition; and
- Performed detailed cut-off testing either side of the balance sheet date.
To address the risk of fraud through management bias and override of controls, we:
- Performed analytical procedures to identify any unusual or unexpected relationships;
- Tested journal entries to identify unusual transactions;
- Assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias;
- Investigated the rationale behind significant or unusual transactions.
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.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
PDI (Holdings) Limited
Independent Auditor's Report to the Members of PDI (Holdings) Limited
Use of our report
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
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For and on behalf of
80-83 Long Lane
EC1A 9ET
PDI (Holdings) Limited
Consolidated Profit and Loss Account for the Year Ended 31 October 2024
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Note |
2024 |
2023 |
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Turnover |
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Cost of sales |
( |
( |
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Gross profit |
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|
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Administrative expenses |
( |
( |
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Other operating income |
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|
|
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Operating profit |
|
|
|
|
Other interest receivable and similar income |
|
- |
|
|
Interest payable and similar expenses |
( |
( |
|
|
(340,943) |
(184,312) |
||
|
Profit/(loss) before tax |
|
( |
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|
Tax on profit/(loss) |
( |
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|
|
Profit/(loss) for the financial year |
|
( |
|
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Profit/(loss) attributable to: |
|||
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Owners of the company |
|
( |
|
|
Minority interests |
( |
( |
|
|
|
( |
PDI (Holdings) Limited
Consolidated Statement of Comprehensive Income for the Year Ended 31 October 2024
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2024 |
2023 |
|
|
Profit/(loss) for the year |
|
( |
|
Foreign currency translation gains/(losses) |
|
( |
|
Total comprehensive income for the year |
|
( |
|
Total comprehensive income attributable to: |
||
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Owners of the company |
|
( |
|
Minority interests |
( |
( |
|
|
( |
PDI (Holdings) Limited
(Registration number: 05730982)
Consolidated Balance Sheet as at 31 October 2024
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Note |
2024 |
2023 |
|
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Fixed assets |
|||
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Intangible assets |
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Tangible assets |
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Investment property |
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Investments |
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Current assets |
|||
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Stocks |
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Debtors |
|
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Cash at bank and in hand |
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|
|
|
|
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||
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Creditors: Amounts falling due within one year |
( |
( |
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|
Net current assets |
|
|
|
|
Total assets less current liabilities |
|
|
|
|
Creditors: Amounts falling due after more than one year |
( |
( |
|
|
Provisions for liabilities |
( |
( |
|
|
Net assets |
|
|
|
|
Capital and reserves |
|||
|
Called up share capital |
100 |
100 |
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|
Share premium reserve |
6,603 |
6,603 |
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|
Revaluation reserve |
2,532,954 |
2,532,954 |
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|
Other reserves |
1,343,625 |
1,337,652 |
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|
Retained earnings |
2,600,741 |
2,409,180 |
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|
Equity attributable to owners of the company |
6,484,023 |
6,286,489 |
|
|
Minority interests |
7,586 |
28,065 |
|
|
Shareholders' funds |
6,491,609 |
6,314,554 |
PDI (Holdings) Limited
(Registration number: 05730982)
Consolidated Balance Sheet as at 31 October 2024
Approved and authorised by the
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PDI (Holdings) Limited
(Registration number: 05730982)
Balance Sheet as at 31 October 2024
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Note |
2024 |
2023 |
|
|
Fixed assets |
|||
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Tangible assets |
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Investment property |
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Investments |
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|
|
|
|
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Current assets |
|||
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Debtors |
|
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Cash at bank and in hand |
|
|
|
|
|
|
||
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Creditors: Amounts falling due within one year |
( |
( |
|
|
Net current assets |
|
|
|
|
Total assets less current liabilities |
|
|
|
|
Creditors: Amounts falling due after more than one year |
( |
( |
|
|
Provisions for liabilities |
( |
( |
|
|
Net assets |
|
|
|
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Capital and reserves |
|||
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Called up share capital |
100 |
100 |
|
|
Share premium reserve |
6,603 |
6,603 |
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Other reserves |
3,733,635 |
3,733,635 |
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Retained earnings |
3,302,710 |
3,261,926 |
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Shareholders' funds |
7,043,048 |
7,002,264 |
The company made a profit after tax for the financial year of £40,784 (2023 - profit of £117,698).
Approved and authorised by the
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PDI (Holdings) Limited
Consolidated Statement of Changes in Equity for the Year Ended 31 October 2024
Equity attributable to the parent company
|
Share capital |
Share premium |
Foreign currency translation reserve |
Revaluation reserve |
Non-distributable reserve |
|
|
At 1 November 2023 |
|
|
( |
|
|
|
Profit/(loss) for the year |
- |
- |
- |
- |
- |
|
Other comprehensive income |
- |
- |
|
- |
- |
|
Total comprehensive income |
- |
- |
|
- |
- |
|
At 31 October 2024 |
|
|
( |
|
|
|
Other reserves |
Retained earnings |
Total |
Non-controlling interests - Equity |
Total equity |
|
|
At 1 November 2023 |
|
|
|
|
|
|
Profit/(loss) for the year |
- |
|
|
( |
|
|
Other comprehensive income |
- |
- |
|
- |
|
|
Total comprehensive income |
- |
|
|
( |
|
|
At 31 October 2024 |
|
|
|
|
|
PDI (Holdings) Limited
Consolidated Statement of Changes in Equity for the Year Ended 31 October 2024
Equity attributable to the parent company
|
Share capital |
Share premium |
Foreign currency translation reserve |
Revaluation reserve |
Non-distributable reserve |
|
|
At 1 November 2022 |
|
|
( |
|
|
|
Loss for the year |
- |
- |
- |
- |
- |
|
Other comprehensive income |
- |
- |
( |
- |
- |
|
Total comprehensive income |
- |
- |
( |
- |
- |
|
At 31 October 2023 |
100 |
6,603 |
(91,840) |
2,532,954 |
1,295,563 |
|
Other reserves |
Retained earnings |
Total |
Non-controlling interests - Equity |
Total equity |
|
|
At 1 November 2022 |
|
|
|
|
|
|
Loss for the year |
- |
( |
( |
( |
( |
|
Other comprehensive income |
- |
- |
( |
- |
( |
|
Total comprehensive income |
- |
( |
( |
( |
( |
|
At 31 October 2023 |
133,929 |
2,409,180 |
6,286,489 |
28,065 |
6,314,554 |
PDI (Holdings) Limited
Statement of Changes in Equity for the Year Ended 31 October 2024
|
Share capital |
Share premium |
Non-distributable reserve |
Other reserves |
Retained earnings |
|
|
At 1 November 2023 |
|
|
|
|
|
|
Profit for the year |
- |
- |
- |
- |
|
|
At 31 October 2024 |
|
|
|
|
|
|
Total |
|
|
At 1 November 2023 |
|
|
Profit for the year |
|
|
At 31 October 2024 |
|
|
Share capital |
Share premium |
Non-distributable reserve |
Other reserves |
Retained earnings |
|
|
At 1 November 2022 |
|
|
|
|
|
|
Profit for the year |
- |
- |
- |
- |
|
|
At 31 October 2023 |
100 |
6,603 |
1,295,563 |
2,438,072 |
3,261,926 |
|
Total |
|
|
At 1 November 2022 |
|
|
Profit for the year |
|
|
At 31 October 2023 |
7,002,264 |
PDI (Holdings) Limited
Consolidated Statement of Cash Flows for the Year Ended 31 October 2024
|
Note |
2024 |
2023 |
|
|
Cash flows from operating activities |
|||
|
Profit/(loss) for the year |
|
( |
|
|
Adjustments to cash flows from non-cash items |
|||
|
Depreciation and amortisation |
|
|
|
|
Changes in fair value of investment property |
- |
|
|
|
Loss from disposals of investments |
|
- |
|
|
Finance income |
( |
- |
|
|
Finance costs |
|
|
|
|
Income tax expense |
|
( |
|
|
|
|
||
|
Working capital adjustments |
|||
|
Increase in stocks |
( |
( |
|
|
(Increase)/decrease in trade debtors |
( |
|
|
|
(Decrease)/increase in trade creditors |
( |
|
|
|
(Decrease)/increase in deferred income, including government grants |
( |
|
|
|
Cash generated from operations |
|
|
|
|
Income taxes received |
|
|
|
|
Net cash flow from operating activities |
|
|
|
|
Cash flows from investing activities |
|||
|
Interest received |
|
- |
|
|
Acquisitions of tangible assets |
( |
( |
|
|
Net cash flows from investing activities |
( |
( |
|
|
Cash flows from financing activities |
|||
|
Interest paid |
( |
( |
|
|
Repayment of other borrowing |
( |
( |
|
|
Net cash flows from financing activities |
( |
( |
|
|
Net decrease in cash and cash equivalents |
( |
( |
|
|
Cash and cash equivalents at 1 November |
|
|
|
|
Cash and cash equivalents at 31 October |
(36,141) |
109,821 |
|
|
Reconciliation to Cash and cash equivalents category (adjusted for overdrafts) |
|||
PDI (Holdings) Limited
Consolidated Statement of Cash Flows for the Year Ended 31 October 2024
|
Note |
2024 |
2023 |
|
|
Cash and short-term deposits |
161,681 |
276,458 |
|
|
Bank overdrafts |
(197,822) |
(166,637) |
|
|
(36,141) |
109,821 |
PDI (Holdings) Limited
Notes to the Financial Statements for the Year Ended 31 October 2024
|
General information |
The company is a private company limited by share capital, incorporated in England.
The address of its registered office is:
United Kingdom
These financial statements were authorised for issue by the
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Accounting policies |
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland and the Companies Act 2006'.
Basis of preparation
These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.
Basis of consolidation
The consolidated financial statements consolidate the financial statements of the company and its subsidiary undertakings drawn up to 31 October 2023. Design International Co. Ltd (100% owned subsidiary within the group, registered in PRC) has been excluded from consolidation due to severe long-term restrictions substantially hindering the exercise of the rights of the parent over the assets or management of the subsidiary, as provided under section 9.9(a) of FRS 102.
No Profit and Loss Account is presented for the company as permitted by section 408 of the Companies Act 2006. This excludes unrealised gains on investment property revaluation.
PDI (Holdings) Limited
Notes to the Financial Statements for the Year Ended 31 October 2024
A subsidiary is an entity controlled by the company. Control is achieved where the company has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.
The results of subsidiaries acquired or disposed of during the year are included in the Profit and Loss Account from the effective date of acquisition or up to the effective date of disposal, as appropriate. Where necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by the group.
The purchase method of accounting is used to account for business combinations that result in the acquisition of subsidiaries by the group. The cost of a business combination is measured as the fair value of the assets given, equity instruments issued and liabilities incurred or assumed at the date of exchange, plus costs directly attributable to the business combination. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. Any excess of the cost of the business combination over the acquirer’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities recognised is recorded as goodwill.
Inter-company transactions, balances and unrealised gains on transactions between the company and its subsidiaries, which are related parties, are eliminated in full.
Intra-group losses are also eliminated but may indicate an impairment that requires recognition in the consolidated financial statements.
Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the group. Non-controlling interests in the net assets of consolidated subsidiaries are identified separately from the group’s equity therein. Non-controlling interests consist of the amount of those interests at the date of the original business combination and the non-controlling shareholder’s share of changes in equity since the date of the combination.
Going concern
The financial statements have been prepared on a going concern basis.
Revenue recognition
Turnover comprises the contractual value for the provision of architectural consultancy, net of value added tax.
The group recognises revenue when:
- The amount of revenue can be reliably measured as approved by the client; or as defined within the specific payment schedule as outlined in the terms of the contract;
- it is probable that future economic benefits will flow to the entity as per specific payment terms normally 30 or 60 days from the invoice date.
Other operating income
Other operating income represents rental income which is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. Rental income is recognised on an accrual basis over the period of the rental agreements.
PDI (Holdings) Limited
Notes to the Financial Statements for the Year Ended 31 October 2024
Government grants
Money received in the form of a government grant is treated as a revenue grant. Therefore, grant income is recorded within other income in the income statement on a systematic basis in the same periods as the related expenses occurred.
Foreign currency transactions and balances
Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.
Tax
The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
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 group operates and generates taxable income.
Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the consolidated financial statements.
Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.
Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.
Tangible assets
Tangible assets (excluding Land & Buildings) are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
Land & Buildings are stated at their fair value, derived from the current market prices for comparable real estate determined annually by the directors and/or external professional valuer. The directors use observable market prices, adjusted if necessary for any difference in the nature, location or condition of the specific asset.
Depreciation
Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:
|
Asset class |
Depreciation method and rate |
|
Land and building |
2% straight line |
|
Leasehold improvements |
10% straight line |
PDI (Holdings) Limited
Notes to the Financial Statements for the Year Ended 31 October 2024
|
Fixtures and fittings |
20% straight line |
|
Office equipment |
20%, 25% and 33% straight line |
Investment property
Business combinations
Business combinations are accounted for using the purchase method. The consideration for each acquisition is measured at the aggregate of the fair values at acquisition date of assets given, liabilities incurred or assumed, and equity instruments issued by the group in exchange for control of the acquired, plus any costs directly attributable to the business combination. When a business combination agreement provides for an adjustment to the cost of the combination contingent on future events, the group includes the estimated amount of that adjustment in the cost of the combination at the acquisition date if the adjustment is probable and can be measured reliably.
Goodwill
Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the group’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each reporting period date. Goodwill is amortised over its useful life, which shall not exceed ten years if a reliable estimate of the useful life cannot be made.
Amortisation
Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:
|
Asset class |
Amortisation method and rate |
|
Goodwill |
Over 10 years |
Investments
Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.
Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable.
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
PDI (Holdings) Limited
Notes to the Financial Statements for the Year Ended 31 October 2024
Trade debtors
Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.
Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the group will not be able to collect all amounts due according to the original terms of the receivables.
Stocks
Work in progress is stated at the lower of cost and estimated net realisable value. Cost is determined using the percentage of completion method.
The cost of work in progress comprises direct labour costs and those overheads that have been incurred in bringing the contractual work to their present location and condition. At each reporting date, WIP is assessed for impairment. If WIP is impaired, the carrying amount is reduced accordingly; the impairment loss is recognised immediately in profit or loss.
Trade creditors
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the group does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.
Borrowings
Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.
Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.
Borrowings are classified as current liabilities unless the group has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
Share capital
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.
PDI (Holdings) Limited
Notes to the Financial Statements for the Year Ended 31 October 2024
|
Revenue |
The analysis of the group's Turnover for the year from continuing operations is as follows:
|
2024 |
2023 |
|
|
Rendering of services |
|
|
|
Rental income from investment property |
|
|
|
Other revenue |
|
|
|
|
|
The analysis of the group's Turnover for the year by market is as follows:
|
2024 |
2023 |
|
|
UK |
|
|
|
Rest of world |
|
|
|
|
|
|
Other gains and losses |
The analysis of the group's other gains and losses for the year is as follows:
|
2024 |
2023 |
|
|
Loss from disposals of investments |
( |
- |
|
Operating profit |
Arrived at after charging/(crediting)
|
2024 |
2023 |
|
|
Depreciation expense |
|
|
|
Amortisation expense |
|
|
PDI (Holdings) Limited
Notes to the Financial Statements for the Year Ended 31 October 2024
|
Interest payable and similar expenses |
|
2024 |
2023 |
|
|
Interest on bank overdrafts and borrowings |
|
|
|
Interest on obligations under finance leases and hire purchase contracts |
|
|
|
Interest expense on other finance liabilities |
|
|
|
Foreign exchange gains/(losses) |
|
( |
|
|
|
|
Staff costs |
The aggregate payroll costs (including director's remuneration) were as follows:
|
2024 |
2023 |
|
|
Wages and salaries |
|
|
|
Social security costs |
|
|
|
Other short-term employee benefits |
|
|
|
Other post-employment benefit costs |
|
|
|
Other employee expense |
|
|
|
|
|
The average number of persons employed by the group (including the director) during the year, analysed by category was as follows:
|
2024 |
2023 |
|
|
Administration and support |
|
|
|
|
|
|
Director's remuneration |
The director's remuneration for the year was as follows:
|
2024 |
2023 |
|
|
Remuneration |
|
|
In respect of the highest paid director:
PDI (Holdings) Limited
Notes to the Financial Statements for the Year Ended 31 October 2024
|
2024 |
2023 |
|
|
Remuneration |
|
|
|
Company contributions to money purchase pension schemes |
|
|
|
Auditors' remuneration |
|
2024 |
2023 |
|
|
Audit of these financial statements |
10,950 |
11,000 |
|
Other fees to auditors |
||
|
All other non-audit services |
|
|
|
Taxation |
Tax charged/(credited) in the consolidated profit and loss account
|
2024 |
2023 |
|
|
Current taxation |
||
|
UK corporation tax |
|
( |
|
Deferred taxation |
||
|
Arising from origination and reversal of timing differences |
( |
|
|
Tax expense/(receipt) in the income statement |
|
( |
The tax on profit before tax for the year is lower than the standard rate of corporation tax in the UK (2023 - higher than the standard rate of corporation tax in the UK) of
The differences are reconciled below:
|
2024 |
2023 |
|
|
Profit/(loss) before tax |
|
( |
|
Corporation tax at standard rate |
|
( |
|
Tax increase from effect of capital allowances and depreciation |
|
|
|
Effect of tax losses |
( |
|
|
Tax decrease arising from group relief |
( |
( |
|
Deferred tax expense/(credit) from unrecognised tax loss or credit |
|
( |
|
Total tax charge/(credit) |
|
( |
PDI (Holdings) Limited
Notes to the Financial Statements for the Year Ended 31 October 2024
|
Intangible assets |
Group
|
Goodwill |
Internally generated software development costs |
Total |
|
|
Cost or valuation |
|||
|
At 1 November 2023 |
|
|
|
|
At 31 October 2024 |
|
|
|
|
Amortisation |
|||
|
At 1 November 2023 |
|
|
|
|
Amortisation charge |
|
|
|
|
At 31 October 2024 |
|
|
|
|
Carrying amount |
|||
|
At 31 October 2024 |
|
- |
|
|
At 31 October 2023 |
|
|
|
PDI (Holdings) Limited
Notes to the Financial Statements for the Year Ended 31 October 2024
|
Tangible assets |
Group
|
Land and buildings |
Furniture, fittings and equipment |
Other tangible assets |
Total |
|
|
Cost or valuation |
||||
|
At 1 November 2023 |
|
|
|
|
|
Additions |
- |
|
|
|
|
At 31 October 2024 |
|
|
|
|
|
Depreciation |
||||
|
At 1 November 2023 |
|
|
|
|
|
Charge for the year |
|
|
|
|
|
At 31 October 2024 |
|
|
|
|
|
Carrying amount |
||||
|
At 31 October 2024 |
|
|
|
|
|
At 31 October 2023 |
|
|
|
|
Included within the net book value of land and buildings above is £8,203,467 (2023 - £8,326,608) in respect of freehold land and buildings and £95,530 (2023 - £126,315) in respect of short leasehold land and buildings.
Revaluation
The fair value of the group's Land and buildings was revalued on
Had this class of asset been measured on a historical cost basis, the carrying amount would have been £
|
Investment properties |
Group
|
2024 |
|
|
At 1 November |
|
|
Fair value adjustments |
( |
|
At 31 October |
|
There has been no valuation of investment property by an independent valuer.
PDI (Holdings) Limited
Notes to the Financial Statements for the Year Ended 31 October 2024
Company
|
2024 |
|
|
At 1 November |
|
|
At 31 October |
|
Valuation carried out on 05th June 2017 by Copping Joyce Surveyors Limited on behalf of Barclays Bank putthe market value at £7,000,000. A further valuation was carried out by Knight Frank on 24th January 2020 which put the market value at £9,050,000. With total cost of the investment at £4,071,820, fair value adjustment made during the year ended 31 October 2017 was £2,928,180 and during the year ended 31 October 2021 was £2,050,000.
Carrying amount of investment property rented to another group entity
The carrying amount of investment property rented to another group entity was
£
|
Investments |
Group
Details of undertakings
Details of the investments in which the group holds 20% or more of the nominal value of any class of share capital are as follows:
|
Undertaking |
Registered office |
Holding |
Proportion of voting rights and shares held |
|
|
2024 |
2023 |
|||
|
Subsidiary undertakings |
||||
|
|
|
|
|
|
|
England |
||||
|
|
|
|
|
|
|
Italy |
||||
|
|
|
|
|
|
|
Italy |
||||
|
|
|
|
|
|
|
People's Repblic of China |
||||
|
Associates |
||||
|
|
|
|
|
|
|
England |
||||
|
|
|
|
|
|
|
England |
||||
PDI (Holdings) Limited
Notes to the Financial Statements for the Year Ended 31 October 2024
* indicates direct investment of the company
Subsidiary undertakings
|
D.I. Design & Development Consultants (U.K.) Limited The principal activity of D.I. Design & Development Consultants (U.K.) Limited is |
|
P37 Srl The principal activity of P37 Srl is |
|
Design International Srl The principal activity of Design International Srl is |
|
Design International Co. Ltd The principal activity of Design International Co. Ltd is |
Company
|
2024 |
2023 |
|
|
Investments in subsidiaries |
|
|
|
Investments in associates |
|
|
|
|
|
|
Subsidiaries |
£ |
|
Cost or valuation |
|
|
At 1 November 2023 |
|
|
Provision |
|
|
Carrying amount |
|
|
At 31 October 2024 |
|
|
At 31 October 2023 |
|
PDI (Holdings) Limited
Notes to the Financial Statements for the Year Ended 31 October 2024
|
Associates |
£ |
|
Cost |
|
|
At 1 November 2023 |
|
|
Disposals |
( |
|
At 31 October 2024 |
|
|
Provision |
|
|
Carrying amount |
|
|
At 31 October 2024 |
|
|
At 31 October 2023 |
|
Details of undertakings
Details of the investments in which the company holds 20% or more of the nominal value of any class of share capital are as follows:
|
Undertaking |
Registered office |
Holding |
Proportion of voting rights and shares held |
|
|
2024 |
2023 |
|||
|
Subsidiary undertakings |
||||
|
|
England |
|
|
|
|
|
Italy |
|
|
|
|
|
Italy |
|
|
|
|
Subsidiary undertakings |
|
DI Design & Development Consultants (UK) Limited The principal activity of DI Design & Development Consultants (UK) Limited is |
|
P37 Srl The principal activity of P37 Srl is |
|
Design International Srl The principal activity of Design International Srl is |
PDI (Holdings) Limited
Notes to the Financial Statements for the Year Ended 31 October 2024
|
Stocks |
|
Group |
Company |
|||
|
2024 |
2023 |
2024 |
2023 |
|
|
Work in progress |
|
|
- |
- |
|
Debtors |
|
Group |
Company |
||||
|
Current |
Note |
2024 |
2023 |
2024 |
2023 |
|
Trade debtors |
|
|
- |
- |
|
|
Amounts owed by related parties |
- |
- |
|
|
|
|
Other debtors |
|
|
|
|
|
|
Prepayments |
|
|
|
|
|
|
Accrued income |
|
|
- |
- |
|
|
Deferred tax assets |
|
- |
- |
- |
|
|
Income tax asset |
- |
|
- |
- |
|
|
|
|
|
|
||
|
Creditors |
|
Group |
Company |
||||
|
Note |
2024 |
2023 |
2024 |
2023 |
|
|
Due within one year |
|||||
|
Loans and borrowings |
|
|
|
|
|
|
Trade creditors |
|
|
|
|
|
|
Amounts due to related parties |
- |
- |
|
|
|
|
Social security and other taxes |
|
|
|
- |
|
|
Outstanding defined contribution pension costs |
|
|
- |
- |
|
|
Other payables |
|
|
|
- |
|
|
Accruals |
|
|
|
|
|
|
Income tax liability |
20,954 |
6,476 |
- |
- |
|
|
Deferred income |
|
|
- |
- |
|
|
|
|
|
|
||
PDI (Holdings) Limited
Notes to the Financial Statements for the Year Ended 31 October 2024
|
Group |
Company |
||||
|
Note |
2024 |
2023 |
2024 |
2023 |
|
|
Due after one year |
|||||
|
Loans and borrowings |
|
|
|
|
|
|
Other financial liabilities |
|
|
- |
- |
|
|
|
|
|
|
||
|
Share capital |
Allotted, called up and fully paid shares
|
2024 |
2023 |
|||
|
No. |
£ |
No. |
£ |
|
|
|
|
100 |
|
100 |
|
Loans and borrowings |
Non-current loans and borrowings
|
Group |
Company |
|||
|
2024 |
2023 |
2024 |
2023 |
|
|
Bank borrowings |
|
|
|
|
|
Other borrowings |
|
|
- |
- |
|
|
|
|
|
|
Current loans and borrowings
|
Group |
Company |
|||
|
2024 |
2023 |
2024 |
2023 |
|
|
Bank borrowings |
|
|
|
|
|
Bank overdrafts |
|
|
- |
- |
|
Other borrowings |
|
|
- |
- |
|
|
|
|
|
|
The obligations under finance leases are secured on the assets concerned.
The bank overdraft is secured by debentures covering all assets of the company dated 28.02.2020.
PDI (Holdings) Limited
Notes to the Financial Statements for the Year Ended 31 October 2024
|
Related party transactions |
Company
Summary of transactions with subsidiaries
During the year, D.I. Design & Development Consultants (U.K.) Limited charged PDI (Holdings) Limited £15,000 (2023: £250,000) for property improvement consultation.
|
Ultimate controlling party |
The ultimate controlling party is