Company Registration No. 00791896 (England and Wales)
P & R FABRICS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2021
PAGES FOR FILING WITH REGISTRAR
P & R FABRICS LIMITED
CONTENTS
Page
Directors' report
1
Balance sheet
2
Notes to the financial statements
3 - 13
P & R FABRICS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 APRIL 2021
- 1 -
The directors present their annual report and financial statements for the year ended 30 April 2021.
Review of business
The principal activity of the company continued to be that of the supply of
fabric
.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr M Macleod
Mr S T Purcell
Mr T Purcell
Auditor
The auditor, Azets Audit Services, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s
auditor
is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s
auditor
is aware of that information.
This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.
On behalf of the board
Mr S T Purcell
Director
22 January 2022
P & R FABRICS LIMITED
BALANCE SHEET
AS AT
30 APRIL 2021
30 April 2021
- 2 -
2021
2020
Notes
£
£
£
£
Fixed assets
Intangible assets
84,070
26,760
Tangible assets
5
139,766
89,094
Investments
6
80,000
223,836
195,854
Current assets
Stocks
1,645,014
1,150,356
Debtors
7
4,277,153
4,625,488
Cash at bank and in hand
522,970
2,455,850
6,445,137
8,231,694
Creditors: amounts falling due within one year
8
(3,033,023)
(4,536,995)
Net current assets
3,412,114
3,694,699
Total assets less current liabilities
3,635,950
3,890,553
Creditors: amounts falling due after more than one year
9
(100,000)
(100,000)
Provisions for liabilities
11
(135,000)
(217,000)
Net assets
3,400,950
3,573,553
Capital and reserves
Called up share capital
100
100
Profit and loss reserves
3,400,850
3,573,453
Total equity
3,400,950
3,573,553
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.
true
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 22 January 2022 and are signed on its behalf by:
Mr S T Purcell
Director
Company Registration No. 00791896
P & R FABRICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2021
- 3 -
1
Accounting policies
Company information
P & R Fabrics Limited is a
private
company
limited by shares
incorporated in
England and Wales
.
The registered office is
1st Floor, Hunter House, Holloway Drive, Wardley Industrial Estate, Worsley, Manchester, United Kingdom, M28 2LA. The registered number of the company is 00791896.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in
sterling
, which is the functional currency of the company.
Monetary a
mounts
in these financial statements are
rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
The company has taken advantage of the exemption under section
399
of the
Companies Act 2006 not to prepare consolidated accounts
, on the basis that the group of which this is the parent qualifies as a small group
. The
financial statements
present information about the company as an individual entity and not about its group
.
1.2
Going concern
At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future and so continue to adopt the going concern basis of accounting in preparing the financial statements.
true
However at this time the full impact of the Coronavirus pandemic on the UK and the Global economy is uncertain and the effect, both immediate and long term,this may have on the company, it's suppliers and customers is unknown.
In reaching their conclusion, the directors have reviewed forecasts prepared by management which includes detailed profit & loss and cash flow forecasts for the period to 30 April 202
3
and have taken into consideration all information considered relevant to assessing the future performance of the company. The directors have also considered the letters of support issued and received by group companies subject to cross guarantee arrangements and the current funding position
.
The forecasts indicate that the group will overall remain cash positive throughout the review period and will be able to manage its business risks and variations in trading performance.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business
, and
is shown net of VAT and other sales related taxes
.
The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer
(usually on dispatch of the goods)
, the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
P & R FABRICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2021
1
Accounting policies
(Continued)
- 4 -
1.4
Intangible fixed assets - goodwill
Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated
amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life.
For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.
1.5
Tangible fixed assets
Tangible fixed assets
are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Fixtures and fittings
15% reducing balance
Computers
20% straight line
Motor vehicles
25% straight line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and
is credited or charged to profit or loss
.
1.6
Fixed asset investments
Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
The investments are assessed for impairment at each reporting date
and
any
impairment
losses or reversals of impairment losses are recognised immediately in
profit
or
loss
.
A subsidiary is an entity controlled by the company
. Control is
the power to govern the financial and operating policies of
the
entity so as to obtain benefits from its activities.
An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.
Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities
.
1.7
Impairment of fixed assets
At each reporting
period
end date, the
company
reviews the carrying amounts of its tangible
and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the
company
estimates the recoverable amount of the cash-generating unit to which the asset belongs.
P & R FABRICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2021
1
Accounting policies
(Continued)
- 5 -
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in
profit
or
loss
, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit)
in
prior years. A reversal of an impairment loss is recognised immediately in
profit
or
loss
, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.8
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.9
Cash and cash equivalents
Cash and cash equivalents
are basic financial assets
and
include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.10
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset
, with
the net amounts presented in the financial statements
,
when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include
debtors
and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest
method 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.
Financial assets classified as receivable within one year are not amortised.
P & R FABRICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2021
1
Accounting policies
(Continued)
- 6 -
Classification of 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 deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including
creditors
, bank loans, loans from
fellow group companies and preference shares that are classified as debt, are
initially recognised at transaction price unless the arrangement constitutes a
financing transaction, where the debt instrument is measured at the present value of
the future
paymen
ts discounted at a market rate of interest.
Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective
interest rate method.
Trade creditors
are obligations to pay for goods or services that have been acquired
in the ordinary course of business from suppliers. A
m
ounts payable are classified as
current liabilities if payment is due within one year or less. If not, they are presented
as non-current liabilities.
Trade creditors
are recognised initially at transaction price
and subsequently measured at amortised cost using the effective interest method.
1.11
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.12
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or
fixed assets
.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.13
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
The cost of providing benefits under defined benefit plans is determined separately for each plan using the projected unit credit method, and is based on actuarial advice.
The change in the net defined benefit liability arising from employee service during the year is recognised as an employee cost. The cost of plan introductions, benefit changes, settlements and curtailments are recognised as an expense in measuring profit or loss in the period in which they arise.
P & R FABRICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2021
1
Accounting policies
(Continued)
- 7 -
The net interest element is determined by multiplying the net defined benefit liability by the discount rate, taking into account any changes in the net defined benefit liability during the period as a result of contribution and benefit payments. The net interest is recognised in
profit
or
loss
as other finance revenue or cost.
Remeasurement changes comprise actuarial gains and losses, the effect of the asset ceiling and the return on the net defined benefit liability excluding amounts included in net interest. These are recognised immediately in other comprehensive income in the period in which they occur and are not reclassified to profit and loss in subsequent periods.
The
net
defined benefit pension asset or liability in the balance sheet comprises the total for each plan of the present value of the defined benefit obligation (using a discount rate based on high quality corporate bonds), less the fair value of plan assets out of which the obligations are to be settled directly. Fair value is based on market price information, and in the case of quoted securities is the published bid price. The value of a net pension benefit asset is limited to the amount that may be recovered either through reduced contributions or agreed refunds from the scheme.
1.14
Government grants
Government grants are recognised at the fair value of the asset receive
d
or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met
. Where a
grant does not specify performance conditions
it
is recognised in income when the proceeds are received or receivable
. A grant received before the recognition criteria are satisfied is recognised as a liability.
1.15
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation
in the period
are included in profit or loss.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
P & R FABRICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2021
- 8 -
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2021
2020
Number
Number
Total
11
22
4
Intangible fixed assets
Goodwill
£
Cost
At 1 May 2020
33,450
Additions
80,000
At 30 April 2021
113,450
Amortisation and impairment
At 1 May 2020
6,690
Amortisation charged for the year
22,690
At 30 April 2021
29,380
Carrying amount
At 30 April 2021
84,070
At 30 April 2020
26,760
P & R FABRICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2021
- 9 -
5
Tangible fixed assets
Plant and machinery etc
£
Cost
At 1 May 2020
285,373
Additions
83,840
Disposals
(26,444)
At 30 April 2021
342,769
Depreciation and impairment
At 1 May 2020
196,279
Depreciation charged in the year
30,724
Eliminated in respect of disposals
(24,000)
At 30 April 2021
203,003
Carrying amount
At 30 April 2021
139,766
At 30 April 2020
89,094
6
Fixed asset investments
2021
2020
£
£
Shares in group undertakings and participating interests
80,000
Following the transfer of assets and liabilities at fair value held by fellow subsidiary Uniform Clothing Solutions Limited, the investment has been impaired to nil.
P & R FABRICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2021
6
Fixed asset investments
(Continued)
- 10 -
Movements in fixed asset investments
Shares in subsidiaries
£
Cost or valuation
At 1 May 2020 & 30 April 2021
80,000
Impairment
At 1 May 2020
-
Impairment losses
80,000
At 30 April 2021
80,000
Carrying amount
At 30 April 2021
-
At 30 April 2020
80,000
7
Debtors
2021
2020
Amounts falling due within one year:
£
£
Trade debtors
735,125
1,024,116
Amounts owed by group undertakings
3,396,422
3,336,096
Other debtors
145,041
264,711
4,276,588
4,624,923
Deferred tax asset
565
565
4,277,153
4,625,488
P & R FABRICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2021
7
Debtors
(Continued)
- 11 -
8
Creditors: amounts falling due within one year
2021
2020
£
£
Bank loans
50,000
Trade creditors
668,721
1,631,601
Amounts owed to group undertakings
2,085,295
2,085,115
Taxation and social security
179,157
277,731
Other creditors
49,850
542,548
3,033,023
4,536,995
9
Creditors: amounts falling due after more than one year
2021
2020
£
£
Other creditors
100,000
100,000
10
Provisions for liabilities
2021
2020
£
£
Retirement benefit obligations
11
135,000
217,000
Defined benefit schemes
The company operates a hybrid defined benefit pension scheme, which is funded.
The assets of the scheme are held separately from those of the company, being invested in unitised funds and ordinary shares via a broker.
The pension cost and provision for the year ended 30 April 2021 are based on the advice of a professional qualified actuary.
The company expects to contribute in the region of £14,000 to its defined benefit pension scheme in the next accounting period.
P & R FABRICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2021
Defined benefit schemes
(Continued)
- 12 -
The amounts included in the balance sheet arising from the company's obligations in respect of defined benefit plans are as follows:
2021
2020
£
£
Present value of defined benefit obligations
703,000
727,000
Fair value of plan assets
(568,000)
(510,000)
Deficit in scheme
135,000
217,000
2021
Movements in the present value of defined benefit obligations
£
Liabilities at 1 May 2020
727,000
Benefits paid
(24,000)
Actuarial gains and losses
(19,000)
Interest cost
10,000
Other
9,000
At 30 April 2021
703,000
The defined benefit obligations arise from plans which are wholly or partly funded.
2021
Movements in the fair value of plan assets
£
Fair value of assets at 1 May 2020
510,000
Interest income
(12,000)
Return on plan assets (excluding amounts included in net interest)
(21,000)
Benefits paid
(24,000)
Contributions by the employer
14,000
Other
(4,000)
At 30 April 2021
568,000
The actual return on plan assets was £63,000 (2020 - £21,000).
2021
2020
Fair value of plan assets at the reporting period end
£
£
Equity instruments
374,000
258,000
Debt instruments
146,000
161,000
Cash and net current assets
48,000
91,000
568,000
510,000
P & R FABRICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2021
- 13 -
12
Audit report information
As the income statement has been omitted from the filing copy of the financial statements
,
the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006
:
The auditor's report was unqualified.
The senior statutory auditor was Don Bancroft and the auditor was Azets Audit Services.
13
Financial commitments, guarantees and contingent liabilities
The company is party to a limited Composite Company Multilateral Guarantee to be given by Purcell Holdings Limited, P.&.R. Fabrics Limited, Uniform Clothing Solutions Limited, Work in Style Limited and Northenden Textiles Limited to secure all liabilities of each other.
14
Operating lease commitments
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2021
2020
£
£
146,667
234,667
2021-04-30
2020-05-01
false
27 January 2022
CCH Software
CCH Accounts Production 2021.300
No description of principal activity
This audit opinion is unqualified
Mr M Macleod
Mr T Purcell
Mr T Purcell
Mr S T Purcell
00791896
2020-05-01
2021-04-30
00791896
bus:Director1
2020-05-01
2021-04-30
00791896
bus:CompanySecretaryDirector1
2020-05-01
2021-04-30
00791896
bus:Director2
2020-05-01
2021-04-30
00791896
bus:Director3
2020-05-01
2021-04-30
00791896
bus:CompanySecretary1
2020-05-01
2021-04-30
00791896
2021-04-30
00791896
core:NetGoodwill
2021-04-30
00791896
core:NetGoodwill
2020-04-30
00791896
2019-05-01
2020-04-30
00791896
2020-04-30
00791896
core:OtherPropertyPlantEquipment
2021-04-30
00791896
core:OtherPropertyPlantEquipment
2020-04-30
00791896
core:CurrentFinancialInstruments
core:WithinOneYear
2021-04-30
00791896
core:CurrentFinancialInstruments
core:WithinOneYear
2020-04-30
00791896
core:CurrentFinancialInstruments
2021-04-30
00791896
core:CurrentFinancialInstruments
2020-04-30
00791896
core:Non-currentFinancialInstruments
2021-04-30
00791896
core:Non-currentFinancialInstruments
2020-04-30
00791896
core:ShareCapital
2021-04-30
00791896
core:ShareCapital
2020-04-30
00791896
core:RetainedEarningsAccumulatedLosses
2021-04-30
00791896
core:RetainedEarningsAccumulatedLosses
2020-04-30
00791896
core:Goodwill
2020-05-01
2021-04-30
00791896
core:FurnitureFittings
2020-05-01
2021-04-30
00791896
core:ComputerEquipment
2020-05-01
2021-04-30
00791896
core:MotorVehicles
2020-05-01
2021-04-30
00791896
core:NetGoodwill
2020-04-30
00791896
core:NetGoodwill
2020-05-01
2021-04-30
00791896
core:OtherPropertyPlantEquipment
2020-04-30
00791896
core:OtherPropertyPlantEquipment
2020-05-01
2021-04-30
00791896
core:WithinOneYear
2021-04-30
00791896
core:WithinOneYear
2020-04-30
00791896
bus:PrivateLimitedCompanyLtd
2020-05-01
2021-04-30
00791896
bus:SmallCompaniesRegimeForAccounts
2020-05-01
2021-04-30
00791896
bus:FRS102
2020-05-01
2021-04-30
00791896
bus:Audited
2020-05-01
2021-04-30
00791896
bus:FullAccounts
2020-05-01
2021-04-30
xbrli:pure
xbrli:shares
iso4217:GBP