Company registration number 08552746 (England and Wales)
PROGARM LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
PAGES FOR FILING WITH REGISTRAR
PROGARM LIMITED
CONTENTS
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 9
PROGARM LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2021
31 December 2021
- 1 -
2021
2020
Notes
£
£
£
£
Fixed assets
Intangible assets
3
120,598
97,843
Tangible assets
4
211,119
109,602
331,717
207,445
Current assets
Stocks
2,451,374
1,587,121
Debtors
5
2,340,507
1,118,992
Cash at bank and in hand
459,553
1,353,658
5,251,434
4,059,771
Creditors: amounts falling due within one year
6
(2,279,565)
(1,594,311)
Net current assets
2,971,869
2,465,460
Total assets less current liabilities
3,303,586
2,672,905
Provisions for liabilities
(63,629)
(27,593)
Net assets
3,239,957
2,645,312
Capital and reserves
Called up share capital
7
200,115
200,115
Share premium account
7,190
7,190
Profit and loss reserves
3,032,652
2,438,007
Total equity
3,239,957
2,645,312
The director of the company has elected not to include a copy of the profit and loss account within the financial statements.
true
For the financial year ended 31 December 2021 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The director acknowledges his responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
T
he members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476
.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
PROGARM LIMITED
BALANCE SHEET (CONTINUED)
AS AT
31 DECEMBER 2021
31 December 2021
- 2 -
The financial statements were approved and signed by the director and authorised for issue on 7 August 2022
Mr A Arnett
Director
Company Registration No. 08552746
PROGARM LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
- 3 -
1
Accounting policies
Company information
Progarm Limited is a
private
company
limited by shares
incorporated in
England and Wales
.
The registered office is
Unicorn House, Broad Lane, Gilberdyke, Brough, HU15 2TS.
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.
1.2
Going concern
A
true
t the time of approving the financial statements
,
t
he director has a reasonable expectation that the
company
has adequate resources to continue in operational existence for the foreseeable future. Thus
t
he director continues to adopt the going concern basis of accounting in preparing the financial statements.
Whilst the company was impacted by the Covid-19 pandemic, it adapted working practices in line with government guidelines, maintaining operations throughout the lockdown periods and to date. During this time the company did not require any additional cash funding. The director is confident that the company will be able to meet all liabilities as they are expected to fall for at least the next twelve months.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods provided in the normal course of business
, and
is shown net of VAT
. Turnover
is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer
, being on dispatch of the goods.
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, which is 3 years.
1.5
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date
where
it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the
fair
value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.
Amortisation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:
Software
2 years straight line
PROGARM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
1
Accounting policies
(Continued)
- 4 -
1.6
Tangible fixed assets
Tangible fixed assets
are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:
Leasehold improvements
Straight line over the life of the lease
Plant and machinery
5 years straight line
Office equipment
6 years straight line
Computer equipment
3 years straight line
Motor vehicles
4 years 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
.
1.7
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.
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, those overheads that have been incurred in bringing the stocks to their present location and condition.
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 at bank and in hand
are basic financial assets
and
include cash in hand, deposits held at call with banks
a
nd 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.
PROGARM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
1
Accounting policies
(Continued)
- 5 -
Basic financial assets
Basic financial assets, which include
#tErm6, loans to related parties
and cash and bank balances, are initially measured at transaction price including transaction costs.
Financial assets classified as receivable within one year are not amortised.
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 and loans from related parties
, are
initially recognised at transaction price.
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.
Trade creditors
are recognised initially at transaction price
.
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
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
company’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.
1.13
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.
PROGARM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
1
Accounting policies
(Continued)
- 6 -
1.14
Leases
Leases are classified as
hire purchase leases
whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under
hire purchase
leases are recognised as assets at the lower of the assets fair
value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a hire purchase lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
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
s
asset are consumed.
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
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2021
2020
Number
Number
Total
23
19
PROGARM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 7 -
3
Intangible fixed assets
Goodwill
Software
Total
£
£
£
Cost
At 1 January 2021
120,000
97,843
217,843
Additions
82,961
82,961
At 31 December 2021
120,000
180,804
300,804
Amortisation and impairment
At 1 January 2021
120,000
120,000
Amortisation charged for the year
60,206
60,206
At 31 December 2021
120,000
60,206
180,206
Carrying amount
At 31 December 2021
120,598
120,598
At 31 December 2020
97,843
97,843
4
Tangible fixed assets
Leasehold improvements
Plant and machinery
Office equipment
Computer equipment
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 January 2021
9,587
13,199
138,039
81,988
242,813
Additions
36,343
21,949
93,792
34,533
186,617
Disposals
(9,587)
(81,299)
(35,559)
(126,445)
Transfers
6,000
4,597
(10,597)
At 31 December 2021
36,343
41,148
98,389
80,676
46,429
302,985
Depreciation and impairment
At 1 January 2021
9,587
4,673
90,574
28,377
133,211
Depreciation charged in the year
6,997
5,731
12,345
23,326
13,544
61,943
Eliminated in respect of disposals
(9,587)
(70,153)
(23,548)
(103,288)
Transfers
875
480
(1,355)
At 31 December 2021
6,997
11,279
12,825
42,392
18,373
91,866
Carrying amount
At 31 December 2021
29,346
29,869
85,564
38,284
28,056
211,119
At 31 December 2020
8,526
47,465
53,611
109,602
PROGARM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 8 -
5
Debtors
2021
2020
Amounts falling due within one year:
£
£
Trade debtors
1,678,039
766,506
Other debtors
662,468
352,486
2,340,507
1,118,992
6
Creditors: amounts falling due within one year
2021
2020
£
£
Trade creditors
997,599
543,651
Taxation and social security
616,028
696,134
Other creditors
665,938
354,526
2,279,565
1,594,311
Hire purchase obligations totalling £Nil (2020: £3,092) are secured over the assets to which they relate.
7
Called up share capital
2021
2020
2021
2020
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Deferred shares of 1p each
20,000,000
200,000
200,000
200,000
Ordinary shares of 1p each
7,137
80
71
80
Ordinary A shares of 1p each
500
5
5
5
Ordinary B shares of 1p each
500
5
5
5
Ordinary C shares of 1p each
1,000
5
10
10
Ordinary D shares of 1p each
1,000
10
10
10
Ordinary E shares of 1p each
300
3
3
3
Ordinary F shares of 1p each
200
2
2
2
Ordinary G shares of 1p each
863
5
9
-
20,011,500
200,115
200,115
200,115
The Ordinary, Ordinary A, Ordinary B, Ordinary C, Ordinary D, Ordinary E, Ordinary F and Ordinary G shares carry voting rights of one vote per share. The deferred shares have no voting rights. All shares have differing rights to dividends.
On 16 July 2021, the 80 £1 Ordinary shares were sub-divided into 8,000 1p Ordinary shares, 5 £1 A Ordinary shares were sub-divided into 500 1p A Ordinary shares, 5 £1 B Ordinary shares were sub-divided into 500 1p B Ordinary shares, 10 £1 C Ordinary shares were sub-divided into 1,000 1p C Ordinary shares, 10 £1 D Ordinary shares were sub-divided into 1,000 1p D Ordinary shares, 3 £1 E Ordinary shares were sub-divided into 300 1p E Ordinary shares, 2 £1 D Ordinary shares were sub-divided into 200 1p F Ordinary shares and 200,000 £1 Deferred shares were sub-divided into 20,000,000 1p Deferred shares. Subsequently 863 1p Ordinary shares were re-classified as 863 1p G Ordinary shares.
PROGARM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 9 -
8
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2021
2020
£
£
272,969
19,023
9
Related party transactions
Balances with related parties
The following amounts were outstanding at the reporting end date:
Category
Amounts owed by
Amounts owed to
related parties
related parties
2021
2020
2021
2020
£
£
£
£
Key management personnel
25,749