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Registered number:
For the Year Ended
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Performance Electrical Limited
Company Information
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Performance Electrical Limited
Contents
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Performance Electrical Limited
Strategic Report
For the Year Ended 31 March 2025
The directors present the strategic report for the year ended 31 March 2025.
The business has had a successful year, turnover reduced slightly to £16,960,714 (2024: £17,588,919) but profit before tax increased significantly to £2,602,753 (2024: £1,819,454). At the end of the year the Company had increased shareholders’ funds of £11.1m (2024: £9.2m) and also increased cash balances to £9.5m (2024: £6.1m). The business has successfully delivered a diverse portfolio of projects, which the Directors believe show the strength and quality of the Company.
The Company is fortunate to have a strong balance sheet and cash reserves. Cash flow, including collection of outstanding debts, continues to be monitored daily. Consequently, the Directors are confident that the Company has sufficient liquidity to meet all its obligations.
Main contractor reliance A risk for the Company is the corporate failure of a main contractor. Any individual contractor risk is mitigated by a large, established customer base, where there is a long history of working together and the successful completing of projects. Where the Company does take on new customers, these are extensively vetted before any work is undertaken.
The Company's key financial indicators are profit and cashflow, which are discussed in the fair review of the business above.
The Company has a very experienced and stable work force, where the average length of time an employee has been with the company is 12 years. High employee retention rates and low absenteeism mean the Company can provide a consistent level of high-quality work. The Company continues to invest in apprenticeships, bringing through the next generation of electricians.
The Company continues to invest in health and safety and has delivered another year of excellent on-site safety. Customer satisfaction remains high, with the levels of repeat business from existing customers increasing year on year. Non-financial indicators revolve around the Company’s workforce, health and safety record and customer satisfaction.
This report was approved by the board and signed on its behalf.
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Performance Electrical Limited
Directors' Report
For the Year Ended 31 March 2025
The directors present their report and the financial statements for the year ended 31 March 2025.
The directors are responsible for preparing the Strategic Report, the Directors' Report and the 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 Company's financial statements and then apply them consistently;
∙make judgements 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 Company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The profit for the year, after taxation, amounted to £1,931,975 (2024 - £1,350,728).
No ordinary dividends were paid during the year (2024: £140,000). The directors do not recommend payment of a final dividend.
The directors who served during the year were:
The business has a strong order book, meaning the future is very positive. As inflationary pressures have abated, pricing stability has improved, meaning the Directors are confident that future profit forecasts are accurate and robust. The Company operates from a low fixed cost base which means it is in a strong position to withstand any margin pressures.
The Company has a very strong balance sheet, with no gearing and a positive cash position. This balance sheet strength will enable the business to capitalise on any opportunities that may present themselves.
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Performance Electrical Limited
Directors' Report (continued)
For the Year Ended 31 March 2025
There have been no significant events affecting the Company since the year end.
The auditors, Hurst Accountants Limited, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board and signed on its behalf.
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Performance Electrical Limited
Independent Auditors' Report to the Members of Performance Electrical Limited
We have audited the financial statements of Performance Electrical Limited (the 'Company') for the year ended 31 March 2025, which comprise the Statement of Comprehensive Income, the Statement of Financial Position, the Statement of Changes in Equity and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The directors are responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
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Performance Electrical Limited
Independent Auditors' Report to the Members of Performance Electrical Limited (continued)
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors' Report.
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Performance Electrical Limited
Independent Auditors' Report to the Members of Performance Electrical Limited (continued)
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
Identifying and assessing potential risks related to irregularities
In identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following:
∙The nature of the industry and sector in which the company operates; the control environment and business performance including key drivers for directors' remuneration, bonus levels and performance targets.
∙The outcome of enquiries of local management and parent company management, including whether management was aware of any instances of non-compliance with laws and regulations, and whether management had knowledge of any actual, suspected, or alleged fraud.
∙Supporting documentation relating to the Company's policies and procedures for:
°Identifying, evaluating, and complying with laws and regulations
°Detecting and responding to the risks of fraud
∙The internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations.
∙The outcome of discussions amongst the engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud.
∙The legal and regulatory framework in which the Company operates, particularly those laws and regulations which have a direct effect on the financial statements, such as the Companies Act 2006, pensions and tax legislation, or which had a fundamental effect on the operations of the Company, including General Data Protection requirements, and Anti-bribery and Corruption.
Audit response to risks identified
Our procedures to respond to the risks identified included the following:
∙Reviewing the financial statements disclosures and testing to supporting documentation to assess compliance with the provisions of those relevant laws and regulations which have a direct effect on the financial statements.
∙Discussions with management, including consideration of known or suspected instances of non-compliance with laws and regulations and fraud.
∙Evaluation of the operating effectiveness of management’s controls designed to prevent and detect irregularities.
∙Enquiring of management about any actual and potential litigation and claims.
∙Performing analytical procedures to identify any unusual or unexpected relationships which may indicate risks of material misstatement due to fraud.
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Performance Electrical Limited
Independent Auditors' Report to the Members of Performance Electrical Limited (continued)
We have also considered the risk of fraud through management override of controls by:
∙Testing the appropriateness of journal entries and other adjustments.
∙Challenging assumptions made by management in their significant accounting estimates, and assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and
∙Evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.
We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.
There are inherent limitations in the audit procedures described above, and the further removed non-compliance with laws and regulations are from the events and transactions reflected in the financial statements, the less likely we would become aware of them. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' Report.
This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an Auditors' Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.
for and on behalf of
Chartered Accountants
Statutory Auditors
3 Stockport Exchange
SK1 3GG
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Performance Electrical Limited
Statement of Comprehensive Income
For the Year Ended 31 March 2025
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Performance Electrical Limited
Registered number: 01404578
Statement of Financial Position
As at
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 11 to 23 form part of these financial statements.
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Performance Electrical Limited
Statement of Changes in Equity
For the Year Ended 31 March 2025
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Performance Electrical Limited
Notes to the Financial Statements
For the Year Ended 31 March 2025
Performance Electrical Limited is a private company limited by shares, incorporated in England and Wales. The address of the registered office and principal place of business is 123 Radcliffe Road, Bury, Lancashire, BL9 9LD. The company's registration number is 01404578.
The nature of the company's operation and its principal activity is the design and installation of electrical equipment, and ongoing consultancy services in relation to the electrical equipment.
2.Accounting policies
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the Company's accounting policies (see note 3).
The Company's functional and presentational currency is GBP.
The following principal accounting policies have been applied:
The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
∙the requirements of Section 7 Statement of Cash Flows;
∙the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
∙the requirements of Section 33 Related Party Disclosures paragraph 33.7.
This information is included in the consolidated financial statements of Performance Electrical Holdings Limited as at 31 March 2025 and these financial statements may be obtained from Companies House.
The Directors have prepared forecasts for the group for the period to September 2026 which demonstrate that the Company can continue to operate within its available financial resources. Costs and cashflow are being closely monitored and controlled.
The Company is fortunate that it has strong balance sheet with significant cash reserves. As a consequence, the Directors are confident that the Company has sufficient liquidity to grow profitably. On this basis and at the time of approving the financial statements, the Directors are confident that the Company has adequate resources to continue in operational existence for the foreseeable future. Thus, the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
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Performance Electrical Limited
Notes to the Financial Statements
For the Year Ended 31 March 2025
2.Accounting policies (continued)
Contracts are assessed on an individual basis and reflected in the statement of comprehensive income by recording turnover and related costs as contract activity progresses. Where it is considered the outcome of contracts can be assessed with reasonable certainty before its conclusion, the attributable profit is recognised in the statement of comprehensive income as the difference between the reported turnover and the related costs of that contract. Amounts recoverable on contracts represent excess value of work carried out (which has been recorded as turnover) over cumulative payments on account. When it is probable that total contract costs will exceed total contract turnover, the expected loss is recognised as an expense immediately.
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Performance Electrical Limited
Notes to the Financial Statements
For the Year Ended 31 March 2025
2.Accounting policies (continued)
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
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Performance Electrical Limited
Notes to the Financial Statements
For the Year Ended 31 March 2025
2.Accounting policies (continued)
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the Company's Statement of Financial Position when the Company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
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Performance Electrical Limited
Notes to the Financial Statements
For the Year Ended 31 March 2025
2.Accounting policies (continued)
Basic financial assets
Basic financial assets, which include trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.
Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments.
Financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the Company after the deduction of all its liabilities.
Basic financial liabilities, which include trade and other creditors, bank loans and other loans are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through profit and loss). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial.
Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.
Trade creditors are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade creditors are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.
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Performance Electrical Limited
Notes to the Financial Statements
For the Year Ended 31 March 2025
Revenue and margin recognition The company's revenue recognition and margin recognition policies, which are set out in note 2.4, are central to how the company values the work it has carried out in each financial year. These policies require forecasts to be made of contract outcomes, which require assessments and judgements to be made in respect of budgeted costs and final margins. The company reviews and, when necessary, revises the estimates and revenue and costs as the contract progresses. At the year end, amounts recoverable on contracts totalled £371,187 (2024: £1,142,109). Should estimates vary, the profit or loss and balance sheet of the following years could be impacted.
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Performance Electrical Limited
Notes to the Financial Statements
For the Year Ended 31 March 2025
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Performance Electrical Limited
Notes to the Financial Statements
For the Year Ended 31 March 2025
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Performance Electrical Limited
Notes to the Financial Statements
For the Year Ended 31 March 2025
10.Taxation (continued)
There are no factors that may affect future tax charges.
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Performance Electrical Limited
Notes to the Financial Statements
For the Year Ended 31 March 2025
12.Tangible fixed assets (continued)
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Performance Electrical Limited
Notes to the Financial Statements
For the Year Ended 31 March 2025
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Performance Electrical Limited
Notes to the Financial Statements
For the Year Ended 31 March 2025
Capital redemption reserve
Profit and loss account
The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administrated fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £68,874 (2024: £220,609). Contributions totalling £16,207 (2024: £8,078) were payable to the fund at the balance sheet date.
A director had advances totalling £1,225,973 (2024: £899,039) at the beginning of the year. Amounts advanced during the period totalled £188,026 (2024: £518,221) and amounts repaid totalled £732,778 (2024: £191,286). The balance outstanding at the year end was £681,221 and is included within other debtors (2024: £1,225,973). The maximum amount outstanding during the period was £1,233,973 (2024: £1,235,740). The balance is repayable on demand.
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Performance Electrical Limited
Notes to the Financial Statements
For the Year Ended 31 March 2025
The company's immediate parent undertaking is PEG Limited, a company registered in England and Wales, registered number 06492932.
The ultimate parent undertaking, as at the year end, is Performance Electrical Holdings Limited, a company registered in England and Wales, registered number 09404582. The parent undertaking of the smallest and largest group for which consolidated accounts are prepared is Performance Electrical Holdings Limited. Consolidated accounts are available from 123 Radcliffe Road, Bury, Lancashire, BL9 9LD.
Following the end of the reporting period, the ultimate parent undertaking became Performance Electrical Group Limited. On 6 June 2025, Performance Electrical Group Limited acquired the entire share capital of Performance Electrical Holdings Limited.
The ultimate controlling party is Mr D Trousdale and Mr J Schofield by virtue of their majority shareholding of Performance Electrical Group Limited.
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