Company registration number 05533002 (England and Wales)
PURCELL HOLDINGS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2022
PURCELL HOLDINGS LIMITED
COMPANY INFORMATION
Directors
Ms J Purcell
Mr S T Purcell
Mr T Purcell
Secretary
Mr T Purcell
Company number
05533002
Registered office
1st Floor, Hunter House
Holloway Drive
Wardley Industrial Estate, Worsley
Manchester
United Kingdom
M28 2LA
Auditor
Azets Audit Services
Alpha House
4 Greek Street
Stockport
Cheshire
SK3 8AB
PURCELL HOLDINGS LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2
Directors' responsibilities statement
3
Independent auditor's report
4 - 7
Profit and loss account
8
Group statement of comprehensive income
9
Group balance sheet
10
Company balance sheet
11
Group statement of changes in equity
12
Company statement of changes in equity
13
Group statement of cash flows
14
Company statement of cash flows
15
Notes to the financial statements
16 - 35
PURCELL HOLDINGS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 APRIL 2022
- 1 -
The directors present the strategic report for the year ended 30 April 2022.
Fair review of business
The board was encouraged by the rise in sales revenue for the group during the year with an increase to £8,805,432 (2021: £8,049,094). Group gross margin was slightly lower at 33.1% (2021: 34.5%) resulting in a loss before taxation for the period (£51,722) (2021: £81,094 - profit). Losses can be attributed to significant increase of cost of goods, labour, energy and currency which counteracted the extra revenues from the growth in sales.
Principal risks and uncertainties
The board acknowledges the risks from competitors, the reliance on key suppliers, ongoing support in finance, foreign exchange fluctuations and the global impact of the coronavirus and the Ukraine conflict.
The board will continue to respond to the challenges and continue to work to minimise these risks wherever possible. The Directors will regularly review the current situation and will seek to take any necessary action in mitigating those potential risks.
At the time of approving the financial statements the full effect on future trading due to interest rates, energy costs and the effect on the global economy resulting from the Ukraine conflict remain uncertain. Directors are working with customers and suppliers to help overcome such uncertainties.
Development and performance
2022 was a challenging year for the Group, with tough economic conditions affecting the overall performance of the Group companies. We have seen successes with retaining and expanding our customer base. Investment in market leading technology in operations has contributed to this growth as well as a strong performance from all our staff.
2023 is expected to remain challenging trading conditions for the Group in the core industries. However, having already undertaken recent restructure and the continued investment in infrastructure, new product and improving efficiencies we remain confident in achieving our future targets.
The Group is in a strong position to remain resilient and be in position to take advantage of opportunities as and when they arise.
Key performance indicators
The directors do not believe there are any further relevant financial and non-financial key performance indicators which require disclosure, other than those disclosed above.
Mr S T Purcell
Director
14 March 2023
PURCELL HOLDINGS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 APRIL 2022
- 2 -
The directors present their annual report and financial statements for the year ended 30 April 2022.
Principal activities
The principal activity of the group continued to be that of supply of fabric and workwear for the fabric division and retail sale in non-specialised stores.
Results and dividends
The results for the year are set out on page 8.
Ordinary dividends were paid amounting to £98,048 (2021: £133,000). Preference share dividends were paid amounting to £75,933 (2021: £132,636).
The directors do not recommend payment of a further dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Ms J Purcell
Mr S T Purcell
Mr T Purcell
Auditor
Azets Audit Services were appointed as auditor to the group and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.
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 auditor
of the
company 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 auditor
of the
company
is
aware of that information.
On behalf of the board
Mr S T Purcell
Director
14 March 2023
PURCELL HOLDINGS LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 APRIL 2022
- 3 -
The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have 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 directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:
-
select suitable accounting policies and then apply them consistently;
-
make judgements and accounting estimates that are reasonable and prudent;
-
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the
;
-
prepare the
on the going concern basis unless it is inappropriate to presume that the
group and
company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
PURCELL HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF PURCELL HOLDINGS LIMITED
- 4 -
Opinion
We have audited the
financial statements of
Purcell Holdings Limited
(the 'parent company') and its subsidiaries (the 'group') for the year ended 30 April 2022 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows, the company statement of cash flows and notes to the financial statements,
including
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 30 April 2022 and of the group's loss 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.
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
group and
parent 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
group's and
parent
company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
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 our audit
:
-
the information given in the strategic report and the directors'
r
eport 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.
PURCELL HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF PURCELL HOLDINGS LIMITED
- 5 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the
group and the parent
company and
their
environment obtained in the course of the audit, we have not identifie
d
material misstatements in the strategic report or the directors'
r
eport
. We have nothing to report in respect of the following matters in relation to which 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 directors' remuneration specified by law are not made; or
-
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors'
r
esponsibilities
s
tatement, the directors are 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 directors determine 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
directors are
responsible for assessing 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 directors either intend to liquidate the parent company or to cease operations, or have
no realistic alternative but to do so.
Auditor's 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
.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
PURCELL HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF PURCELL HOLDINGS LIMITED
- 6 -
Extent to which the audit was considered capable of detecting irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.
We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework. Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.
In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:
-
Enquiry of management and those charged with governance around actual and potential litigation and claims as well as actual, suspected and alleged fraud;
-
Reviewing minutes of meetings of those charged with governance;
-
Assessing the extent of compliance with the laws and regulations considered to have a direct material effect on the financial statements or the operations of the
entity
through enquiry and inspection;
-
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;
-
Performing audit work over the risk of management bias and override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for indicators of potential bias.
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 of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
PURCELL HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF PURCELL HOLDINGS LIMITED
- 7 -
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.
Lewis Cross (Senior Statutory Auditor)
For and on behalf of Azets Audit Services
16 March 2023
Chartered Accountants
Statutory Auditor
Alpha House
4 Greek Street
Stockport
Cheshire
Cheshire
SK3 8AB
PURCELL HOLDINGS LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 30 APRIL 2022
- 8 -
2022
2021
as restated
Notes
£
£
Turnover
3
8,805,432
8,049,094
Cost of sales
(5,889,980)
(5,269,334)
Gross profit
2,915,452
2,779,760
Distribution costs
(106,222)
(93,917)
Administrative expenses
(2,909,393)
(2,837,588)
Other operating income
68,981
257,779
Operating (loss)/profit
4
(31,182)
106,034
Interest receivable and similar income
7
12
417
Interest payable and similar expenses
8
(20,552)
(25,357)
(Loss)/profit before taxation
(51,722)
81,094
Tax on (loss)/profit
9
11,923
930
(Loss)/profit for the financial year
(39,799)
82,024
(Loss)/profit for the financial year is all attributable to the owners of the parent company.
PURCELL HOLDINGS LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 APRIL 2022
- 9 -
2022
2021
as restated
£
£
(Loss)/profit for the year
(39,799)
82,024
Other comprehensive income
Actuarial gain on defined benefit pension schemes
66,000
82,000
Total comprehensive income for the year
26,201
164,024
Total comprehensive income for the year is all attributable to the owners of the parent company.
PURCELL HOLDINGS LIMITED
GROUP BALANCE SHEET
AS AT
30 APRIL 2022
30 April 2022
- 10 -
2022
2021
as restated
Notes
£
£
£
£
Fixed assets
Goodwill
11
13,380
20,070
Tangible assets
12
207,630
216,440
221,010
236,510
Current assets
Stocks
15
4,666,716
3,719,778
Debtors
16
2,076,046
1,709,041
Cash at bank and in hand
657,061
596,777
7,399,823
6,025,596
Creditors: amounts falling due within one year
17
(5,065,190)
(3,463,895)
Net current assets
2,334,633
2,561,701
Total assets less current liabilities
2,555,643
2,798,211
Creditors: amounts falling due after more than one year
18
(169,112)
(140,833)
Net assets excluding pension liability
2,386,531
2,657,378
Defined benefit pension liability
20
(69,000)
(135,000)
Net assets
2,317,531
2,522,378
Capital and reserves
Called up share capital
21
1,000
1,000
Profit and loss reserves
2,316,531
2,521,378
Total equity
2,317,531
2,522,378
The financial statements were approved by the board of directors and authorised for issue on 14 March 2023 and are signed on its behalf by:
14 March 2023
Mr S T Purcell
Director
PURCELL HOLDINGS LIMITED
COMPANY BALANCE SHEET
AS AT 30 APRIL 2022
30 April 2022
- 11 -
2022
2021
as restated
Notes
£
£
£
£
Fixed assets
Investments
13
19,391
19,391
Current assets
Debtors
16
2,335,296
2,085,296
Creditors: amounts falling due within one year
17
(2,325,901)
(2,075,901)
Net current assets
9,395
9,395
Net assets
28,786
28,786
Capital and reserves
Called up share capital
21
1,000
1,000
Profit and loss reserves
27,786
27,786
Total equity
28,786
28,786
As permitted by s408 Companies Act 2006, the
c
ompany has not presented its own profit and loss account and related notes. The
c
ompany’s profit for the year was £231,048 (2021 - £208,569 profit).
These financial statements have been prepared 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 14 March 2023 and are signed on its behalf by:
14 March 2023
Mr S T Purcell
Director
Company Registration No. 05533002
PURCELL HOLDINGS LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 APRIL 2022
- 12 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
As restated for the period ended 30 April 2021:
Balance at 1 May 2020
1,000
2,565,923
2,566,923
Year ended 30 April 2021:
Profit for the year
-
82,024
82,024
Other comprehensive income:
Actuarial gains on defined benefit plans
-
82,000
82,000
Total comprehensive income for the year
-
164,024
164,024
Dividends
10
-
(208,569)
(208,569)
Balance at 30 April 2021
1,000
2,521,378
2,522,378
Year ended 30 April 2022:
Loss for the year
-
(39,799)
(39,799)
Other comprehensive income:
Actuarial gains on defined benefit plans
-
66,000
66,000
Total comprehensive income for the year
-
26,201
26,201
Dividends
10
-
(231,048)
(231,048)
Balance at 30 April 2022
1,000
2,316,531
2,317,531
PURCELL HOLDINGS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 APRIL 2022
- 13 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
As restated for the period ended 30 April 2021:
Balance at 1 May 2020
1,000
27,786
28,786
Year ended 30 April 2021:
Profit and total comprehensive income for the year
-
208,569
208,569
Dividends
10
-
(208,569)
(208,569)
Balance at 30 April 2021
1,000
27,786
28,786
Year ended 30 April 2022:
Profit and total comprehensive income for the year
-
231,048
231,048
Dividends
10
-
(231,048)
(231,048)
Balance at 30 April 2022
1,000
27,786
28,786
PURCELL HOLDINGS LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 APRIL 2022
- 14 -
2022
2021
as restated
Notes
£
£
£
£
Cash flows from operating activities
Cash absorbed by operations
26
(170,810)
(594,475)
Interest paid
(20,552)
(25,357)
Income taxes refunded
13,948
Net cash outflow from operating activities
(177,414)
(619,832)
Investing activities
Purchase of tangible fixed assets
(53,648)
(93,846)
Proceeds on disposal of tangible fixed assets
16,970
26,309
Receipts/(expenditure) arising from loans made
(25,629)
15,026
Interest received
12
417
Net cash used in investing activities
(62,295)
(52,094)
Financing activities
Issue of preference shares
250,000
-
Repayment of bank loans
(9,592)
100,000
Dividends paid to equity shareholders
(231,048)
(208,569)
Net cash generated from/(used in) financing activities
9,360
(108,569)
Net decrease in cash and cash equivalents
(230,349)
(780,495)
Cash and cash equivalents at beginning of year
396,910
1,177,405
Cash and cash equivalents at end of year
166,561
396,910
Relating to:
Cash at bank and in hand
657,061
596,777
Bank overdrafts included in creditors payable within one year
(490,500)
(199,867)
PURCELL HOLDINGS LIMITED
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 APRIL 2022
- 15 -
2022
2021
Notes
£
£
£
£
Cash flows from operating activities
Cash absorbed by operations
27
(250,000)
Investing activities
Dividends received
231,048
208,569
Net cash generated from investing activities
231,048
208,569
Financing activities
Issue of preference shares
250,000
-
Dividends paid to equity shareholders
(231,048)
(208,569)
Net cash generated from/(used in) financing activities
18,952
(208,569)
Net increase in cash and cash equivalents
-
-
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year
PURCELL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2022
- 16 -
1
Accounting policies
Company information
Purcell Holdings Limited (“the company”)
is a
private
limited company domiciled and 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 group consists of Purcell Holdings Limited and all of its subsidiaries.
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.
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.
1.2
Business combinations
In the parent company
financial statements, t
he cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date.
Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date.
I
nvestments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.
Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.
1.3
Basis of consolidation
The consolidated group financial statements consist of the financial statements of the parent company
Purcell Holdings Limited
together with
all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates
.
All
financial statements
are made up to 30 April 2022
.
Where necessary, adjustments are made to the
financial statements
of subsidiaries to bring the accounting policies used into line with those used by other members of the
g
roup.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.
PURCELL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2022
1
Accounting policies
(Continued)
- 17 -
1.4
Going concern
At the time of approving the financial statements, the directors have a reasonable expectation that the
group
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.
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
4
and have taken into consideration all information considered relevant to assessing the future performance of the
group
. 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.
1.5
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.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
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.
1.6
Intangible fixed assets - goodwill
Goodwill represents the excess of the cost of acquisition of
a
business 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, which is [XXXX].
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.
1.7
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:
Freehold land and buildings
10% straight line
Plant and equipment
15% reducing balance or 20% straight line
Fixtures and fittings
15% reducing balance or 20% straight line
IT Equipment
20-30% 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 recognised in the
profit and loss account
.
PURCELL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2022
1
Accounting policies
(Continued)
- 18 -
1.8
Fixed asset investments
Equity in
vest
ments are measured at fair value through profit or loss
,
except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably
,
which are recognised at cost less impairment until a reliable measure of fair value becomes available.
I
n the parent company
financial statements,
investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
A subsidiary is an entity controlled by the
group. Control is
the power to govern the financial and operating policies of
the
entity so as to obtain benefits from its activities.
1.9
Impairment of fixed assets
At each reporting
period
end date, the
group
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).
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 is estimated to be less than its carrying amount, the carrying amount of the asset 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 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
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.
1.10
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.
1.11
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.
PURCELL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2022
1
Accounting policies
(Continued)
- 19 -
1.12
Financial instruments
The group 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 group's
balance sheet
when the group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset and 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
m
ethod 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.
Impairment of financial assets
Financial assets, other than those
held
at
fair value through profit and loss
, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected.
If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
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 group after deducting all of its liabilities.
PURCELL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2022
1
Accounting policies
(Continued)
- 20 -
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. Amounts 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.
Derecognition of financial liabilities
Financial liabilities are derecognised when the
group's contractual obligations expire or are discharged or cancelled.
1.13
Equity instruments
Equity instruments issued by the group 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 group.
1.14
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the
profit and loss account
because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The
group’s
liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the
profit and loss account
, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset
if, and only if, there is
a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
PURCELL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2022
1
Accounting policies
(Continued)
- 21 -
1.15
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.
1.16
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.
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.
1.17
Leases
Rentals payable under operating leases,
including
any lease incentives received, are charged to
profit or loss
on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the lease
d
asset are consumed.
Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.
1.18
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.
PURCELL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2022
- 22 -
2
Judgements and key sources of estimation uncertainty
In the application of the group’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.
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
Stock provision
The group adopts their own internal stock provisioning policy, the group needs to ensure that stock is still being valued at the lower of cost or net realisable value under FRS 102.
Pension scheme valuation
The
group
has obligations to pay pension benefits to certain employees. The cost of these benefits and
the present value of the obligation depend on a number of factors, including; life expectancy, salary
increases, asset valuations and the discount rate on corporate bonds. Management estimates these factors
in determining the net pension obligation in the statement of financial position. The assumptions reflect
historical experience and current trends.
3
Turnover and other revenue
2022
2021
£
£
Turnover analysed by class of business
Sale of fabric and workwear
7,223,916
7,006,460
Retail sale in non-specialised stores
1,581,516
1,042,634
8,805,432
8,049,094
2022
2021
£
£
Other revenue
Interest income
12
417
Grants received
18,290
211,862
PURCELL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2022
- 23 -
4
Operating (loss)/profit
2022
2021
£
£
Operating (loss)/profit for the year is stated after charging/(crediting):
Exchange losses/(gains)
20,397
(17,566)
Government grants
(18,290)
(211,862)
Depreciation of owned tangible fixed assets
58,318
53,543
(Profit)/loss on disposal of tangible fixed assets
(12,830)
20,867
Amortisation of intangible assets
6,690
6,690
Operating lease charges
192,780
216,951
5
Auditor's remuneration
2022
2021
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
1,500
1,500
Audit of the financial statements of the company's subsidiaries
19,600
15,600
21,100
17,100
6
Employees
The average monthly number of persons (including directors) employed by the group and company during the year was:
Group
Company
2022
2021
2022
2021
Number
Number
Number
Number
Employees
70
64
3
3
Their aggregate remuneration comprised:
Group
Company
2022
2021
2022
2021
£
£
£
£
Wages and salaries
1,434,599
1,422,334
Social security costs
120,482
121,880
Pension costs
35,363
34,813
1,590,444
1,579,027
PURCELL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2022
- 24 -
7
Interest receivable and similar income
2022
2021
£
£
Interest income
Interest on bank deposits
3
37
Other interest income
9
380
Total income
12
417
Investment income includes the following:
Interest on financial assets not measured at fair value through profit or loss
3
37
8
Interest payable and similar expenses
2022
2021
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
19,495
25,357
Other interest on financial liabilities
1,057
-
20,552
25,357
9
Taxation
2022
2021
£
£
Current tax
Adjustments in respect of prior periods
(11,923)
Deferred tax
Origination and reversal of timing differences
(930)
Total tax credit
(11,923)
(930)
PURCELL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2022
9
Taxation
(Continued)
- 25 -
The actual credit for the year can be reconciled to the expected (credit)/charge for the year based on the profit or loss and the standard rate of tax as follows:
2022
2021
£
£
(Loss)/profit before taxation
(51,722)
81,094
Expected tax (credit)/charge based on the standard rate of corporation tax in the UK of 19.00% (2021: 19.00%)
(9,827)
15,408
Tax effect of expenses that are not deductible in determining taxable profit
4,255
518
Tax effect of income not taxable in determining taxable profit
(4)
Adjustments in respect of prior years
(11,923)
Group relief
1,023
Other non-reversing timing differences
14,229
2,020
Other permanent differences
213
Movement in deferred tax assets not recognised
(9,889)
(18,876)
Taxation credit
(11,923)
(930)
10
Dividends
2022
2021
Recognised as distributions to equity holders:
£
£
Final paid
231,048
208,569
11
Intangible fixed assets
Group
Goodwill
£
Cost
At 1 May 2021 and 30 April 2022
33,450
Amortisation and impairment
At 1 May 2021
13,380
Amortisation charged for the year
6,690
At 30 April 2022
20,070
Carrying amount
At 30 April 2022
13,380
At 30 April 2021
20,070
The company had no intangible fixed assets at 30 April 2022 or 30 April 2021.
PURCELL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2022
- 26 -
12
Tangible fixed assets
Group
Freehold land and buildings
Plant and equipment
Fixtures and fittings
IT Equipment
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 May 2021
25,894
256,384
213,134
325,170
59,871
880,453
Additions
48,210
3,110
2,328
53,648
Disposals
(2,500)
(4,474)
(6,974)
At 30 April 2022
25,894
302,094
216,244
327,498
55,397
927,127
Depreciation and impairment
At 1 May 2021
25,252
187,138
129,041
291,065
31,517
664,013
Depreciation charged in the year
642
21,608
12,957
16,209
6,902
58,318
Eliminated in respect of disposals
(1,063)
(1,771)
(2,834)
At 30 April 2022
25,894
207,683
141,998
307,274
36,648
719,497
Carrying amount
At 30 April 2022
94,411
74,246
20,224
18,749
207,630
At 30 April 2021
642
69,246
84,093
34,105
28,354
216,440
The company had no tangible fixed assets at 30 April 2022 or 30 April 2021.
13
Fixed asset investments
Group
Company
2022
2021
2022
2021
Notes
£
£
£
£
Investments in subsidiaries
14
19,391
19,391
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 May 2021 and 30 April 2022
19,391
Carrying amount
At 30 April 2022
19,391
At 30 April 2021
19,391
PURCELL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2022
- 27 -
14
Subsidiaries
Details of the company's subsidiaries at 30 April 2022 are as follows:
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Indirect
P&R Fabrics Limited
England
Ordinary
100.00
-
Bodnant Furnance Farm Limited
Wales
Ordinary
100.00
-
Work In Style Ltd
England
Ordinary
0
100.00
Uniform Clothing Solutions Limited
England
Ordinary
0
100.00
WIS Clothing Group Holdings Limited
England
Ordinary
0
100.00
The Westbrook Linen Co Limited
England
Ordinary
0
100.00
Northenden Textiles Limited
England
Ordinary
0
100.00
WIS Agents Limited
England
Ordinary
0
100.00
WIS Direct Limited
England
Ordinary
0
100.00
WIS Universities Limited
England
Ordinary
0
100.00
WIS Healthcare Limited
England
Ordinary
0
100.00
www.uniformshop.co.uk Limited
England
Ordinary
0
100.00
15
Stocks
Group
Company
2022
2021
2022
2021
£
£
£
£
Finished goods and goods for resale
4,666,716
3,719,778
16
Debtors
Group
Company
2022
2021
2022
2021
Amounts falling due within one year:
£
£
£
£
Trade debtors
1,715,027
1,491,463
Corporation tax recoverable
4,480
6,505
Amounts owed by group undertakings
-
-
2,335,296
2,085,296
Other debtors
172,081
111,911
Prepayments and accrued income
183,893
98,597
2,075,481
1,708,476
2,335,296
2,085,296
Deferred tax asset
565
565
2,076,046
1,709,041
2,335,296
2,085,296
PURCELL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2022
- 28 -
17
Creditors: amounts falling due within one year
Group
Company
2022
2021
2022
2021
Notes
£
£
£
£
Bank loans and overdrafts
19
511,796
259,034
Other borrowings
19
2,325,800
2,075,800
2,325,800
2,075,800
Trade creditors
1,859,521
784,044
Amounts owed to group undertakings
101
101
Other taxation and social security
169,520
198,720
-
-
Other creditors
67,746
44,478
Accruals and deferred income
130,807
101,819
5,065,190
3,463,895
2,325,901
2,075,901
Bank loans have an interest rate of 2.5% per annum.
18
Creditors: amounts falling due after more than one year
Group
Company
2022
2021
2022
2021
Notes
£
£
£
£
Bank loans and overdrafts
19
69,112
40,833
Other borrowings
19
100,000
100,000
169,112
140,833
-
-
19
Loans and overdrafts
Group
Company
2022
2021
2022
2021
£
£
£
£
Bank loans
90,408
100,000
Bank overdrafts
490,500
199,867
Preference shares
2,425,800
2,175,800
2,325,800
2,075,800
3,006,708
2,475,667
2,325,800
2,075,800
Payable within one year
2,837,596
2,334,834
2,325,800
2,075,800
Payable after one year
169,112
140,833
PURCELL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2022
19
Loans and overdrafts
(Continued)
- 29 -
The amount included within other creditors relates to 1,080,000 £1 redeemable preference shares issued 18 October 2018 and £1,000,000 £1 redeemable P2 preference shares issued 30 October 2019 less associated transaction costs.
On 27 April 2022 there was an additional £250,000 £1 redeemable P2 preference shares issued less transaction costs.
The prescribed particulars of rights attached to the preference shares are:
Preference shares
(a) each share in not entitled to vote in any circumstance;
(b) each share is entitled to a fixed, cumulative preferential dividend at an annual rate of 10% of the issue price; each share shall be paid from the date of issue of the share until the date of redemption of the share, in cash, annually; as contained in the articles of association of the company;
(c) each share is entitled to preferential payment in a capital distribution (including on a winding up of the company);and
(d) a preference shareholder and the company shall at any time have the right to redeem all or any of the preference shares for the time being outstanding and fully paid up by giving written notice.
P2 Preference shares
(a) each share in not entitled to vote in any circumstance;
(b) each share is entitled to a fixed, cumulative preferential dividend at an annual rate of 2.5% above the base rate from time to time of the Bank of England of the issue price; each share shall be paid from the date of issue of the share until the date of redemption of the share, in cash, annually; as contained in the articles of association of the company;
(c) each share is entitled to preferential payment in a capital distribution (including on a winding up of the company);and
(d) a preference shareholder and the company shall at any time have the right to redeem all or any of the preference shares for the time being outstanding and fully paid up by giving written notice.
Based on the above the preference shares have been treated as a financial liability in these accounts.
20
Retirement benefit schemes
2022
2021
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
35,363
34,813
A
defined contribution pension scheme
is operated
for all qualifying employees.
The assets of the scheme are held separately from those of the group in an independently administered fund.
Defined benefit scheme - group and company
The group operates a hybrid defined benefit pension scheme, which is funded.
The assets of the scheme are held separately from those of the group, being invested in unitised funds and ordinary shares via a broker.
The pension cost and provision for the year ended 30 April 2022 are based on the advice of a professional qualified actuary.
The group expects to contribute in the region of £14,000 to its defined benefit pension scheme in the next accounting period.
PURCELL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2022
20
Retirement benefit schemes
(Continued)
- 30 -
2022
2021
Key assumptions
%
%
Discount rate
3.1
1.9
Inflation
4.3
3.4
Mortality assumptions
2022
2021
Assumed life expectations on retirement at age 65:
Years
Years
Retiring today
- Males
21.1
21.7
- Females
23.2
24.0
Retiring in 20 years
- Males
22.6
22.7
- Females
25.2
25.2
The amounts included in the balance sheet arising from the company's obligations in respect of defined benefit plans are as follows:
Group and company
2022
2021
£
£
Present value of defined benefit obligations
622,000
703,000
Fair value of plan assets
(553,000)
(568,000)
Deficit in scheme
69,000
135,000
Group and company
2022
2021
Amounts recognised in the profit and loss account
£
£
Net interest on net defined benefit liability/(asset)
20,000
(48,000)
Restriction on net interest income credited to the income statement
(5,000)
(5,000)
Total costs/(income)
15,000
(53,000)
PURCELL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2022
20
Retirement benefit schemes
(Continued)
- 31 -
Group and company
2022
2021
Amounts taken to other comprehensive income
£
£
Actual return on scheme assets
10,000
(58,000)
Less: calculated interest element
(10,000)
58,000
Return on scheme assets excluding interest income
-
-
Restriction on net interest income credited to the income statement
5,000
5,000
Actuarial changes related to obligations
(71,000)
(19,000)
Total costs/(income)
(66,000)
(14,000)
Group and company
2022
Movements in the present value of defined benefit obligations
£
Liabilities at 1 May 2021
701,000
Benefits paid
(23,000)
Actuarial gains and losses
(71,000)
Interest cost
10,000
Other
5,000
At 30 April 2022
622,000
Group and company
2022
The defined benefit obligations arise from plans funded as follows:
£
Wholly unfunded obligations
-
Wholly or partly funded obligations
622,000
622,000
Group and company
2022
Movements in the fair value of plan assets
£
Fair value of assets at 1 May 2021
566,000
Interest income
(10,000)
Benefits paid
(23,000)
Contributions by the employer
14,000
Other
1,000
At 30 April 2022
553,000
The actual return on plan assets was £5,000 (2021: £63,000).
PURCELL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2022
20
Retirement benefit schemes
(Continued)
- 32 -
Group and company
2022
2021
Fair value of plan assets at the reporting period end
£
£
Equity instruments
367,000
374,000
Debt instruments
93,000
146,000
Property
41,000
-
52,000
48,000
553,000
568,000
21
Share capital
Group and company
2022
2021
2022
2021
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary A of £1 each
334
334
334
334
Ordinary B of £1 each
333
333
333
333
Ordinary C of £1 each
333
333
333
333
1,000
1,000
1,000
1,000
22
Financial commitments, guarantees and contingent liabilities
The group has entered into continuing guarantees in respect of the banking facilities afforded to other group undertakings.
23
Operating lease commitments
Lessee
At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
Group
Company
2022
2021
2022
2021
£
£
£
£
Within one year
160,101
186,932
-
-
Between two and five years
417,617
572,606
-
-
577,718
759,538
-
-
PURCELL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2022
- 33 -
24
Directors' transactions
Included within other debtors are amounts of £31,674 (2021: nil) in relation to amounts owed by the directors to P&R Fabrics Limited.
The Directors loan account "DLA" was repaid in full following the year end.
Description
% Rate
Opening balance
Amounts advanced
Closing balance
£
£
£
DLA
-
-
31,674
31,674
-
31,674
31,674
25
Prior period adjustment
The balance sheet stock figure in the comparative period has been revised to ensure that stock is carried at the lower of cost and net realisable value.
Reconciliation of changes in equity - group
1 May
30 April
2020
2021
£
£
Adjustments to prior year
Reduce the unit price of stock at average cost
-
(58,216)
Equity as previously reported
2,566,926
2,580,594
Equity as adjusted
2,566,926
2,522,378
Analysis of the effect upon equity
Profit and loss reserves
-
(58,216)
Reconciliation of changes in profit for the previous financial period
2021
£
Adjustments to prior year
Reduce the unit price of stock at average cost
(58,216)
Profit as previously reported
140,240
Profit as adjusted
82,024
Reconciliation of changes in equity - company
The prior period adjustments do not give rise to any effect upon equity.
PURCELL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2022
- 34 -
26
Cash absorbed by group operations
2022
2021
£
£
(Loss)/profit for the year after tax
(39,799)
82,021
Adjustments for:
Taxation credited
(11,923)
(930)
Finance costs
20,552
25,357
Investment income
(12)
(417)
(Gain)/loss on disposal of tangible fixed assets
(12,830)
20,867
Amortisation and impairment of intangible assets
6,690
6,690
Depreciation and impairment of tangible fixed assets
58,318
53,540
Movements in working capital:
Increase in stocks
(946,938)
(273,409)
(Increase)/decrease in debtors
(343,401)
1,326,423
Increase/(decrease) in creditors
1,098,533
(1,834,617)
Cash absorbed by operations
(170,810)
(594,475)
27
Cash absorbed by operations - company
2022
2021
£
£
Profit for the year after tax
231,048
208,569
Adjustments for:
Investment income
(231,048)
(208,569)
Movements in working capital:
Increase in debtors
(250,000)
-
Cash absorbed by operations
(250,000)
-
28
Analysis of changes in net debt - group
1 May 2021
Cash flows
30 April 2022
£
£
£
Cash at bank and in hand
596,777
60,284
657,061
Bank overdrafts
(199,867)
(290,633)
(490,500)
396,910
(230,349)
166,561
Borrowings excluding overdrafts
(2,275,800)
(240,408)
(2,516,208)
(1,878,890)
(470,757)
(2,349,647)
PURCELL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2022
- 35 -
29
Analysis of changes in net debt - company
1 May 2021
Cash flows
30 April 2022
£
£
£
Borrowings excluding overdrafts
(2,075,800)
(250,000)
(2,325,800)
2022-04-30
2021-05-01
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