| Pangolin Editions Limited |
| Strategic Report |
|
| Introduction |
| The Directors present the strategic report for the year ended 31 March 2025 |
|
| The objectives of this report are to provide shareholders and other users of these financial statements with: |
|
| · The appropriate level of background context for these financial statements; |
| · An analysis of the Company’s past performance and future outlook; and |
| · An insight into the Company’s main objectives and strategies, and the principle risks |
| it faces and how they might affect prospects. |
|
| The Company’s Objectives and Strategy |
| Founded in 1985, Pangolin Editions sculpture foundry casts and fabricates sculpture for many of the foremost sculptors of our time. |
|
| The wide range of work these artists have commissioned has given us an unrivalled opportunity to explore and develop the making of sculpture in all its diversity. |
|
| By constantly questioning and researching both ancient and cutting-edge processes we have become world-renowned for our expertise in casting bronze, iron, aluminium and precious metals using lost wax, ceramic shell and sand-casting techniques, as well as our ground-breaking range of surface treatments, patinas and finishes. |
|
| The Board sees the main business objective as delivering sustainable, responsible and profitable business growth which includes: |
|
| · Continuing to increase sales revenues by working with a wide range of artists in the United |
| Kingdom and across the world |
| · Enhancing existing manufacturing techniques and developing new sustainable processes |
| · Developing staff skills and experience |
|
| Summary of financial performance |
| We are pleased to report on the financial year to 31st March 2025. Sales in the period to 31st March 2025 were £11.3m (Prior 16 month period, annualised £13.7m) |
|
| Direct costs of sale were significantly reduced during the financial year compared to the previous period, being approximately 82% of sales value ( prior period 92.4%). Other direct costs of sale increased slightly from 2.0% of sales in the prior period, to 2.8% in the year to 31 March 2025. Gross profit in the period to 31 March 2025 was improved at 15% compared to 5.6% in the prior period. |
|
| Overheads were slightly higher in the year to 31 March 2025 at 6.9% compared to 6.4% in the prior period. |
|
| Corporation tax for the year to 31st March 2025 was £157,681 |
|
| The improved trading results reflect the longer term and ongoing actions taken by the Board to reduce costs and improve profitability. |
|
| Business Review & Market Outlook |
| According to Art Economics during 2024/25 the UK regained its position as the second leading art market globally, with an 18 per cent share of the market worth $10.4 billion – but this market was down 5 per cent on the year before. Against this background Pangolin Editions Limited is stable showing similar sales in the year to March 2025 as were achieved in 2022, but with significantly higher net profits due to proactive cost management. |
|
| Employees |
| The Company continues to invest in training for employees and to support their learning, growth and wellbeing. |
|
| The Company is an equal opportunity employer and gives equal consideration to any application from any background. Any disabled person is considered on an equal basis where they can adequately fulfil the job. When an existing employee becomes disabled, it is the company policy, wherever practical to provide continuing employment under normal terms and providing training and career development. |
|
| Going Concern |
| The Directors of the Company have prepared the Company financial statements on a going concern basis, they do so after having considered the current levels of cash and borrowing facilities available to the Company and key measures of financial and non-financial performance, both in the period immediately prior to the approval of these financial statements and as anticipated in the period ending no less than twelve months after the date of authorisation of these financial statements (“Going Concern Period”). |
|
| Principal Risks and uncertainties |
| Regional Conflicts |
| The wars in Ukraine and Gaza introduced significant global economic uncertainty both in the reporting period and to date, although energy costs have generally reduced. |
|
| Exports, Brexit and the World Markets |
| The exit of the UK from Europe on 31 January 2020 continues to provide challenges in terms of administration and export markets. Pangolin Editions Limited has however, in general performed well in adapting to requirements. There is still uncertaintly in terms of global tariffs and potential trade wars which can affect our export markets. |
|
| Financial risk management |
| The Company uses normal financial assets including bank accounts and cash, trade debtors and creditors which arise directly from its operations. It does not use equity investments, stocks, exchange-traded funds (ETFs), mutual funds, real estate investment trusts (REITs), bonds, derivatives contracts (such as options, futures, and swaps), checks, certificates of deposit (CDs) |
|
| The Directors are of the view that whilst the level of financial risk is low, that risk is not zero and that the following areas should be noted: |
|
| Foreign exchange Rate Risk |
| Uncertainties in relation to tariffs and impacts on exchange rates are a potential risk. |
|
| Interest rate risk |
| The UK interest rate forecasts suggest lower rates through to end 2026. A reduction in UK interest rates of 1% would decrease interest service charges by around £14k pa, but should interest rate rise there would be the same additional cost to the Company per percentage rise. The Directors do not consider the risk in this are to be material on the basis of current forecasts. |
|
| Credit Risk |
| In order to manage credit risk the Directors review exposure to customers on a combination of payment history and third party information. Exposure levels are reviewed on an ongoing basis. |
|
| Financial Key Performance Indicators |
|
|
|
12 months to |
16 month period |
Annualised performance from 16 mth period |
| 31.03.2025 |
to 31.03.2024 |
|
|
|
|
|
| Non-Recurring Revenues |
|
11,276,832 |
18,308,995 |
13,731,746 |
| Gross Margin (GP) |
|
1,696,525 |
1,020,633 |
765,475 |
| GP % |
|
15.00% |
5.60% |
5.60% |
|
|
|
|
|
| Administrative Expenses |
|
(880,505) |
(1,144,562) |
(858,421) |
|
|
|
|
|
| Interest receivable |
|
495 |
7,341 |
5,506 |
| Interest payable |
|
(35,175) |
(42,328) |
(31,746) |
|
|
|
|
|
| Profit/(Loss) before Taxation |
|
781,340 |
(158,916) |
(119,187) |
|
|
|
|
|
| Section 172(1) of the Companies Act 2006 |
| The Directors of the Company, as those of all UK companies, must act in accordance with a set of general duties. These Duties are detailed in section 172 of the UK Companies Act 2006 which is summarised below: |
|
| A Director of a Company must act in the way they consider, in good faith, would be most likely to promote the success of the company for the benefit of its shareholders as a whole and, in doing so, have regard (amongst other matters) to : |
|
| · The likely consequences of any decisions 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 |
| · The need to act fairly as between shareholders of the company |
|
| The Directors fulfil their duties: |
|
| · Through employee management, development and wellbeing |
| · By regular communications with suppliers and clients |
| · By maintaining the highest standards in all areas of environmental, social and governance (ESG) activities |
| · The Company seeks to encourage its people to interact with communities |
| · As an environmentally ethical Company we continue to invest in energy efficient technologies, and the |
| responsible sourcing of all materials and products |
| · The Board actively engages and communicates with the Company’s shareholders |
|
| The Directors take full consideration of the principles outlined in Section 172 of the Companies Act 2006 including but not limited to the items outlined above, in each and every decision made to ensure the best long term outcome for the Company. |
|
| Post Balance Sheet Events |
|
| Following the year end date the Company completed the purchase of additional industrial property on the 6th August 2025 to the value of £2.75m with enabling loan funding of £833k. |
|
| On behalf of the Board |
|
|
|
|
|
| __________________________ |
| Craig Jenkins BA(Hons) FCMA CGMA |
| Finance Director |
|
| 18th December 2025 |
|
|
| 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’s 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 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 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. |
|
|
| Other information |
| The other information comprises the information included in the annual report other than the financial statements and our auditor’s report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. |
| We have nothing to report in this regard. |
|
| Opinions on other matters prescribed by the Companies Act 2006 |
| 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. |
|
| Matters on which we are required to report by exception |
|
Motor Vehicles |
over 4 years |
|
|
Investment property |
|
Investment property is initially recognised at cost and then subsequently measured at fair value. Changes in value are recognised in profit or loss. |
|
|
Investments |
|
Investments in subsidiaries, associates and joint ventures are measured at cost less any accumulated impairment losses. Listed investments are measured at fair value. Unlisted investments are measured at fair value unless the value cannot be measured reliably, in which case they are measured at cost less any accumulated impairment losses. Changes in fair value are included in the profit and loss account. |
|
|
Stocks |
|
Stocks and work in progress are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first in first out method. The carrying amount of stock and work in progress sold is recognised as an expense in the period in which the related revenue is recognised. |
|
|
Debtors |
|
Short term debtors are measured at transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts. Loans and other financial assets are initially recognised at transaction price including any transaction costs and subsequently measured at amortised cost determined using the effective interest method, less any impairment losses for bad and doubtful debts. |
|
|
Creditors |
|
Short term creditors are measured at transaction price (which is usually the invoice price). Loans and other financial liabilities are initially recognised at transaction price net of any transaction costs and subsequently measured at amortised cost determined using the effective interest method. |
|
|
Taxation |
|
A current tax liability is recognised for the tax payable on the taxable profit of the current and past periods. A current tax asset is recognised in respect of a tax loss that can be carried back to recover tax paid in a previous period. Deferred tax is recognised in respect of all timing differences between the recognition of income and expenses in the financial statements and their inclusion in tax assessments. Unrelieved tax losses and other deferred tax assets are recognised only to the extent that 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, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used. Current and deferred tax assets and liabilities are not discounted. |
|
|
Provisions |
|
Provisions (ie liabilities of uncertain timing or amount) are recognised when there is an obligation at the reporting date as a result of a past event, it is probable that economic benefit will be transferred to settle the obligation and the amount of the obligation can be estimated reliably. |
|
|
Foreign currency translation |
|
Transactions in foreign currencies are initially recognised at the rate of exchange ruling at the date of the transaction.
At the end of each reporting period foreign currency monetary items are translated at the closing rate of exchange. Non-monetary items that are measured at historical cost are translated at the rate ruling at the date of the transaction. All differences are charged to profit or loss. |
|
|
Leased assets |
|
A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership. All other leases are classified as operating leases. The rights of use and obligations under finance leases are initially recognised as assets and liabilities at amounts equal to the fair value of the leased assets or, if lower, the present value of the minimum lease payments. Minimum lease payments are apportioned between the finance charge and the reduction in the outstanding liability using the effective interest rate method. The finance charge is allocated to each period during the lease so as to produce a constant periodic rate of interest on the remaining balance of the liability. Leased assets are depreciated in accordance with the company's policy for tangible fixed assets. If there is no reasonable certainty that ownership will be obtained at the end of the lease term, the asset is depreciated over the lower of the lease term and its useful life. Operating lease payments are recognised as an expense on a straight line basis over the lease term. |
|
|
Pensions |
|
Contributions to defined contribution plans are expensed in the period to which they relate. |
|
|
Judgements in applying accounting policies and key sources of estimation uncertainty |
|
In preparing the financial statements the Directors have had to make judgements on how to apply the company's accounting policies and make estimates about the future. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. The estimates and underlying assumptions are reviewed on an ongoing basis. |
|
| 3 |
Analysis of turnover |
2025 |
|
2024 |
| £ |
£ |
|
|
Sale of goods |
11,276,832 |
|
18,308,995 |
|
|
|
|
|
|
|
|
|
|
By geographical market: |
|
|
UK |
8,883,935 |
|
12,890,469 |
|
Europe |
1,294,955 |
|
625,252 |
|
North America |
376,456 |
|
4,341,784 |
|
Rest of world |
721,486 |
|
451,490 |
|
|
|
|
|
|
11,276,832 |
|
18,308,995 |
|
|
|
|
|
|
|
|
|
|
| 4 |
Operating profit |
2025 |
|
2024 |
| £ |
£ |
|
This is stated after charging: |
|
|
Depreciation of owned fixed assets |
31,977 |
|
66,380 |
|
Depreciation of assets held under finance leases and hire purchase contracts |
|
8,553 |
|
67,285 |
|
Auditors' remuneration for audit services |
9,000 |
|
9,000 |
|
Direct cost of sale |
9,580,307 |
|
17,288,362 |
|
|
|
|
|
|
|
|
|
|
| 5 |
Directors' emoluments |
2025 |
|
2024 |
| £ |
£ |
|
|
Emoluments |
163,128 |
|
265,401 |
|
Company contributions to defined contribution pension plans |
2,698 |
|
3,692 |
|
|
|
|
|
|
165,826 |
|
269,093 |
|
|
|
|
|
|
|
|
|
|
|
Highest paid director: |
|
Emoluments |
100,417 |
|
160,275 |
|
Company contributions to defined contribution pension plans |
1,321 |
|
1,761 |
|
|
|
|
|
|
101,738 |
|
162,036 |
|
|
|
|
|
|
|
|
|
|
|
Number of directors to whom retirement benefits accrued: |
2025 |
|
2024 |
| Number |
Number |
|
|
Defined contribution plans |
3 |
|
3 |
|
|
|
|
|
|
|
|
|
|
| 6 |
Staff costs |
2025 |
|
2024 |
| £ |
£ |
|
|
Wages and salaries |
4,471,598 |
|
6,683,452 |
|
Social security costs |
440,702 |
|
634,012 |
|
Other pension costs |
98,621 |
|
138,033 |
|
|
|
|
|
|
5,010,921 |
|
7,455,497 |
|
|
|
|
|
|
|
|
|
|
|
Average number of employees during the year |
Number |
Number |
|
|
Administration |
22 |
|
19 |
|
Manufacturing |
112 |
|
152 |
|
Sales |
3 |
|
3 |
|
|
|
|
|
|
137 |
|
174 |
|
|
|
|
|
|
|
|
|
|
| 7 |
Interest payable |
2025 |
|
2024 |
| £ |
£ |
|
|
Bank loans and overdrafts |
19,692 |
|
21,386 |
|
Finance charges payable under finance leases and hire purchase contracts |
|
15,483 |
|
20,942 |
|
|
|
|
|
|
35,175 |
|
42,328 |
|
|
|
|
|
|
|
|
|
|
| 8 |
Taxation |
2025 |
|
2024 |
| £ |
£ |
|
Analysis of charge in period |
|
Current tax: |
|
UK corporation tax on profits of the period |
157,682 |
|
- |
|
|
|
|
|
|
|
|
|
|
|
Tax on profit on ordinary activities |
157,682 |
|
- |
|
|
|
|
|
|
|
|
|
|
|
Factors affecting tax charge for period |
|
The differences between the tax assessed for the period and the standard rate of corporation tax are explained as follows: |
|
|
|
|
|
|
|
2025 |
|
2024 |
| £ |
£ |
|
Profit/(loss) on ordinary activities before tax |
781,340 |
|
(158,916) |
|
|
|
|
|
|
|
|
|
|
Standard rate of corporation tax in the UK |
25% |
|
25% |
|
| £ |
£ |
|
Profit on ordinary activities multiplied by the standard rate of corporation tax |
|
195,335 |
|
- |
|
|
Effects of: |
|
Expenses not deductible for tax purposes |
159 |
|
- |
|
Capital allowances for period in excess of depreciation |
(5,861) |
|
- |
|
Utilisation of tax losses |
(31,951) |
|
- |
|
|
Current tax charge for period |
157,682 |
|
- |
|
|
|
|
|
|
|
|
|
|
|
| 9 |
Tangible fixed assets |
|
|
Land and buildings |
|
Plant, machinery, equipment and fixtures |
|
Motor Vehicles |
|
Total |
|
|
At cost |
|
At cost |
|
At cost |
| £ |
£ |
£ |
£ |
|
Cost or valuation |
|
At 1 April 2024 |
318,622 |
|
1,337,155 |
|
87,967 |
|
1,743,744 |
|
Additions |
- |
|
19,382 |
|
- |
|
19,382 |
|
At 31 March 2025 |
318,622 |
|
1,356,537 |
|
87,967 |
|
1,763,126 |
|
|
|
|
|
|
|
|
|
|
Depreciation |
|
At 1 April 2024 |
36,221 |
|
1,249,222 |
|
58,030 |
|
1,343,473 |
|
Charge for the year |
- |
|
31,977 |
|
8,553 |
|
40,530 |
|
At 31 March 2025 |
36,221 |
|
1,281,199 |
|
66,583 |
|
1,384,003 |
|
|
|
|
|
|
|
|
|
|
Carrying amount |
|
At 31 March 2025 |
282,401 |
|
75,338 |
|
21,384 |
|
379,123 |
|
At 31 March 2024 |
282,401 |
|
87,933 |
|
29,937 |
|
400,271 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2025 |
|
2024 |
| £ |
£ |
|
Carrying value of plant and machinery included above held under finance leases and hire purchase contracts |
|
21,384 |
|
33,912 |
|
|
|
|
|
|
|
|
|
|
| 10 |
Stocks |
2025 |
|
2024 |
| £ |
£ |
|
|
Raw materials and consumables |
144,277 |
|
171,691 |
|
Work in progress |
1,529,082 |
|
1,624,713 |
|
Finished goods and goods for resale |
107,481 |
|
45,613 |
|
|
|
|
|
|
1,780,840 |
|
1,842,017 |
|
|
|
|
|
|
|
|
|
|
| 11 |
Debtors |
2025 |
|
2024 |
| £ |
£ |
|
|
Trade debtors |
1,313,847 |
|
1,389,645 |
|
Amounts due from related parties |
2,256,934 |
|
2,063,810 |
|
Prepayments and accrued income |
294,274 |
|
297,450 |
|
|
|
|
|
|
3,865,055 |
|
3,750,905 |
|
|
|
|
|
|
|
|
|
|
| 12 |
Creditors: amounts falling due within one year |
2025 |
|
2024 |
| £ |
£ |
|
|
Bank overdrafts |
- |
|
86,090 |
|
Bank loans |
7,031 |
|
7,030 |
|
Obligations under finance lease and hire purchase contracts |
6,093 |
|
9,634 |
|
Trade creditors |
814,686 |
|
1,531,410 |
|
Amounts owed to group undertakings and undertakings in which the company has a participating interest |
|
201,244 |
|
- |
|
Corporation tax |
157,682 |
|
- |
|
Other taxes and social security costs |
489,705 |
|
171,727 |
|
Other creditors |
303,927 |
|
831,882 |
|
Accruals and deferred income |
1,780,101 |
|
1,492,885 |
|
|
|
|
|
|
3,760,469 |
|
4,130,658 |
|
|
|
|
|
|
|
|
|
|
| 13 |
Creditors: amounts falling due after one year |
2025 |
|
2024 |
| £ |
£ |
|
|
Bank loans |
92,083 |
|
96,990 |
|
Obligations under finance lease and hire purchase contracts |
15,740 |
|
21,832 |
|
|
|
|
|
|
107,823 |
|
118,822 |
|
|
|
|
|
|
|
|
|
|
The bank loan is secured on Unit 8A Chalford Industrial Estate as well as a full and floating charge on all assets of the company. |
|
| 14 |
Obligations under finance leases and hire purchase |
2025 |
|
2024 |
|
contracts |
£ |
£ |
|
|
Amounts payable: |
|
Within one year |
6,093 |
|
9,634 |
|
Within two to five years |
15,740 |
|
21,832 |
|
|
|
|
|
|
21,833 |
|
31,466 |
|
|
|
|
|
|
|
|
|
|
|
| 15 |
Share capital |
Nominal |
|
2025 |
|
2025 |
|
2024 |
| value |
Number |
£ |
£ |
|
Allotted, called up and fully paid: |
|
Ordinary shares |
£1 each |
|
- |
|
100 |
|
100 |
|
|
|
|
|
|
|
|
|
|
| 16 |
Profit and loss account |
2025 |
|
2024 |
| £ |
£ |
|
|
At 1 April |
1,745,600 |
|
1,904,516 |
|
Profit/(loss) for the financial year |
623,658 |
|
(158,916) |
|
|
At 31 March |
2,369,258 |
|
1,745,600 |
|
|
|
|
|
|
|
|
|
|
| 17 |
Presentation currency |
|
|
The financial statements are presented in Sterling. |
|
|
| 18 |
Legal form of entity and country of incorporation |
|
|
Pangolin Editions Limited is a private company limited by shares and incorporated in England. |
|
| 19 |
Principal place of business |
|
|
The address of the company's principal place of business is: |
|
9 Chalford Industrial Estate, Stroud, Gloucestershire GL6 8NT |
|
| 20 |
Related party transactions |
|
|
During the period under review the Company: |
|
|
Purchased goods to the value of £512,081 from Pangolin Digital Ltd, a company owned by |
|
R Kingdon, C Koenig, C Maule and S Maule (25% share each), and made net sales of |
|
£160,761 to Pangolin Digital Ltd. |
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The amount owed to Pangolin Digital Ltd at the period end date was £201,244 (2024 £307,987). |
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Made net sales to Pangolin Editions, a business owned by R Kingdon, to the value of £638,703 |
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and net purchases of £447,736. |
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The amount owed by Pangolin Editions at the period end date was £2,238,244 (2024 £2,046,220). |
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Made net sales of £28,533 to Pangolin London Ltd, a company part owned by R Kingdon (22.5%) |
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C Koenig (22.5%) and P Fairbanks-Bielecka (10%). |
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The amount owed by Pangolin London Ltd at the period end date was £180 (2024 £18,556). |
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The amount owed by Lypiatt Castings Ltd at the period end date was £18,149 (2024 £17,149). |
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Received £1,000 from Lypiatt Castings Ltd, a company controlled by R Kingdon and C Koenig. |
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All transactions were undertaken at arms-length commercial rates. |
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| 21 |
Post balance sheet events |
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Following the year end date the Company completed the purchase of additional industrial property |
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on the 6th August 2025 to the value of £2.75m with enabling loan funding of £833k. |