Company Registration No. 07705657 (England and Wales)
PLATT & REILLY UK LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
PLATT & REILLY UK LIMITED
COMPANY INFORMATION
Directors
C McGrath
C Reilly
P Reilly
D Platt
Secretary
C McGrath
Company number
07705657
Registered office
5 Beauchamp Court
Victors Way
Barnet
London
EN5 5TZ
Auditor
Evans Mockler Limited
5 Beauchamp Court
Victors Way
Barnet
London
EN5 5TZ
Business address
3rd Floor
76-80 Old Broad Street
London
EC2M 1QP
PLATT & REILLY UK LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2
Directors' responsibilities statement
3
Independent auditor's report
4 - 5
Profit and loss account
6
Balance sheet
7
Statement of changes in equity
8
Statement of cash flows
9
Notes to the financial statements
10 - 20
PLATT & REILLY UK LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2019
- 1 -
The directors present the strategic report for the year ended 31 December 2019.
Fair review of the business
The company’s principal activity remains that of construction services, specifically that of partition wall and ceiling contractors. The company remains part of a growing group with locations in the United Kingdom (UK) and Ireland.
Principal risks and uncertainties
As with any other business the company faces a number of principal risks and uncertainties on a day to day basis, which have been increased as a result of the COVID-19 pandemic this year.
This has resulted in the company updating and developing its strategies for its operations on site to ensure that a safe working environment is maintained for its employees and sub-contractors.
The pandemic coupled with the UK Governments onward going negotiations with the EU increase the risk of a recession in the UK economy, which should also lead to an associated slow down in the construction sector. However, to counter this slowdown the UK Government is putting forward proposals to help maintain activity levels in the construction industry.
Development and performance
The directors are pleased with the results achieved in 2019 which record a significant increase in turnover of 40.07% to £52.14 million (2018: £37.07 million). However, with increasing cost pressures gross margin has reduced slightly to 10.05% (2018: 10.88%), but gross profit has increased to £5.24million (2018: £4.03 million).
Due to the impact of the COVID-19 pandemic the directors expect 2020 to be a challenging year with activity levels decreasing but with profitability increasing through tighter cost controls and project management.
Key performance indicators
The company tracks costs on a project by project level and sets its financial key performance indicators as labour costs, materials, overhead, gross profit and net profit margins.
Financial risk management objectives and policies
In order to manage its financial risk the company, as a rule of thumb, tenders for price based work reducing the price volatility once a project has been won; a large proportion of the projects undertaken by the company are with large, reputable, credit worthy construction companies including FTSE listed companies reducing its exposure to credit risk from its projects; and finally the company prepares and tracks cash flow forecasts to ensure it has sufficient liquidity going forward, using where necessary short term borrowings and financing.
C McGrath
Director
5 August 2020
PLATT & REILLY UK LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2019
- 2 -
The directors present their annual report and financial statements for the year ended 31 December 2019.
Principal activities
The principal activity of the company continued to be that of construction services.
Directors
The directors who held office at the year end and up to the date of signature of the financial statements were as follows:
C McGrath
C Reilly
P Reilly
D Platt
Results and dividends
The results for the year are set out on page 6.
Ordinary dividends were paid amounting to £500,000. The directors do not recommend payment of a final dividend.
Future developments
The company closely monitors the economic situation in the UK, particularly with respect to the current COVID-19 crisis and the UK Governments negotiations with the EU and takes all necessary measures to ensure the company adapts to meet the needs of the market, details of which are set out in the strategic report.
Since the balance sheet date, the world economy has seen the full impact of the COVID-19 pandemic. While the directors expect the global and national economic environments to impact on the construction sector they believe the company is well positioned to achieve its objectives of a reduced activity level, but increasing profitability through good revenue visibility, tight cost controls and a good project pipeline.
Auditor
The directors confirm the reappointment of the company's auditors, Evans Mockler Limited, for the forthcoming year.
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.
On behalf of the board
C McGrath
Director
5 August 2020
PLATT & REILLY UK LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2019
- 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 company and of the profit or loss of the company 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;
-
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
PLATT & REILLY UK LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF PLATT & REILLY UK LIMITED
- 4 -
Opinion
We have audited the financial statements of Platt & Reilly UK Limited (the 'company') for the year ended 31 December 2019 which comprise the profit and loss account, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including a summary of significant accounting policies.
The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 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 company's affairs as at 31 December 2019 and of its profit 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 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
We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:
-
the directors' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or
-
the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the company’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue
.
The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. 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.
In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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.
PLATT & REILLY UK LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF PLATT & REILLY UK LIMITED
- 5 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identifie
d
material misstatements in the strategic report and the directors'
r
eport
.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
-
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
-
the 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 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 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 for the audit of the financial statements is located on the
Financial Reporting Council’s website at: http://www.frc.org.uk/auditorsresponsibilities
.
This description forms part of our auditor’s report.
Use of our report
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an 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.
Mark Cook (Senior Statutory Auditor)
for and on behalf of Evans Mockler Limited
17 August 2020
Chartered Certified Accountants
Statutory Auditor
5 Beauchamp Court
Victors Way
Barnet
London
EN5 5TZ
PLATT & REILLY UK LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2019
- 6 -
2019
2018
Notes
£
£
Turnover
3
52,147,314
37,069,703
Cost of sales
(46,906,387)
(33,036,908)
Gross profit
5,240,927
4,032,795
Administrative expenses
(3,568,790)
(2,811,102)
Operating profit
4
1,672,137
1,221,693
Interest receivable and similar income
7
5,409
2,307
Interest payable and similar expenses
8
(61,554)
(60,619)
Profit before taxation
1,615,992
1,163,381
Tax on profit
9
(103,722)
(242,184)
Profit for the financial year
1,512,270
921,197
The profit and loss account has been prepared on the basis that all operations are continuing operations.
PLATT & REILLY UK LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2019
31 December 2019
- 7 -
2019
2018
Notes
£
£
£
£
Current assets
Debtors
11
9,314,951
9,263,239
Cash at bank and in hand
2,628,010
1,653,137
11,942,961
10,916,376
Creditors: amounts falling due within one year
12
(7,792,949)
(7,778,634)
Net current assets
4,150,012
3,137,742
Capital and reserves
Called up share capital
15
400
400
Profit and loss reserves
4,149,612
3,137,342
Total equity
4,150,012
3,137,742
The financial statements were approved by the board of directors and authorised for issue on 5 August 2020 and are signed on its behalf by:
C McGrath
Director
Company Registration No. 07705657
PLATT & REILLY UK LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2019
- 8 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 January 2018
400
2,216,145
2,216,545
Year ended 31 December 2018:
Profit and total comprehensive income for the year
-
921,197
921,197
Balance at 31 December 2018
400
3,137,342
3,137,742
Year ended 31 December 2019:
Profit and total comprehensive income for the year
-
1,512,270
1,512,270
Dividends
10
-
(500,000)
(500,000)
Balance at 31 December 2019
400
4,149,612
4,150,012
PLATT & REILLY UK LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2019
- 9 -
2019
2018
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
20
1,765,919
254,658
Interest paid
(61,554)
(60,619)
Income taxes paid
(18,026)
(200,000)
Net cash inflow/(outflow) from operating activities
1,686,339
(5,961)
Investing activities
Proceeds from other investments and loans
-
50,664
Interest received
5,409
2,307
Net cash generated from investing activities
5,409
52,971
Financing activities
Dividends paid
(500,000)
-
Net cash used in financing activities
(500,000)
-
Net increase in cash and cash equivalents
1,191,748
47,010
Cash and cash equivalents at beginning of year
504,344
457,334
Cash and cash equivalents at end of year
1,696,092
504,344
Relating to:
Cash at bank and in hand
2,628,010
1,653,137
Bank overdrafts included in creditors payable within one year
(931,918)
(1,148,793)
PLATT & REILLY UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
- 10 -
1
Accounting policies
Company information
Platt & Reilly UK Limited is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
5 Beauchamp Court, Victors Way, Barnet, London, EN5 5TZ.
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, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
1.2
Turnover
Turnover represents amounts receivable for work completed net of VAT and trade discounts. Sales are recognised on the basis of work measured, valued and certified at the year end. Further details of the revenue recognition criteria applied by the company can be found at "1.4 Construction Contracts" within these financial statements.
1.3
Construction contracts
Where the outcome of a construction contract can be estimated reliably, revenue and costs are recognised by reference to the stage of completion of the contract activity at the reporting end date. Variations in contract work, claims and incentive payments are included to the extent that the amount can be measured reliably and its receipt is considered probable.
When it is probable that total contract costs will exceed total contract turnover, the expected loss is recognised as an expense immediately.
Where the outcome of a construction contract cannot be estimated reliably, contract revenue is recognised to the extent of contract costs incurred where it is probable that they will be recoverable. Contract costs are recognised as expenses in the period in which they are incurred. When costs incurred in securing a contract are recognised as an expense in the period in which they are incurred, they are not included in contract costs if the contract is obtained in a subsequent period.
The “percentage of completion method” is used to determine the appropriate amount to recognise in a given period. The stage of completion is measured by the proportion of contract costs incurred for work performed to date compared to the estimated total contract costs. Costs incurred in the year in connection with future activity on a contract are excluded from contract costs in determining the stage of completion. These costs are presented as stocks, prepayments or other assets depending on their nature, and provided it is probable they will be recovered.
1.4
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.
PLATT & REILLY UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
1
Accounting policies
(Continued)
- 11 -
1.5
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 measured at transaction price
.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
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 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 company
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 company after deducting all of its liabilities.
PLATT & REILLY UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
1
Accounting policies
(Continued)
- 12 -
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from
fellow group companies and preference shares that are classified as debt, are
recognised at transaction price
.
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.
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts,
are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are
s
ubsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as
being measured at
fair value though profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations
expire or are discharged or cancelled.
1.6
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.
1.7
Derivatives
Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to fair value at each reporting end date. The resulting gain or loss is recognised in profit or loss immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the nature of the hedge relationship.
A derivative with a positive fair value is recognised as a financial asset, whereas a derivative with a negative fair value is recognised as a financial liability.
1.8
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.
PLATT & REILLY UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
1
Accounting policies
(Continued)
- 13 -
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 when the
company
has 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.
1.9
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.
1.10
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.11
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
s
asset are consumed.
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.
PLATT & REILLY UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
- 14 -
3
Turnover and other revenue
An analysis of the company's turnover is as follows:
2019
2018
£
£
Turnover analysed by class of business
Construction services
52,147,314
37,069,703
2019
2018
£
£
Other significant revenue
Interest income
5,409
2,307
2019
2018
£
£
Turnover analysed by geographical market
United Kingdom
52,147,314
37,069,703
4
Operating profit
2019
2018
Operating profit for the year is stated after charging:
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
18,500
17,500
Operating lease charges
73,267
68,035
PLATT & REILLY UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
- 15 -
5
Employees
2019
2018
Number
Number
Directors
4
4
Direct operatives
14
16
18
20
Their aggregate remuneration comprised:
2019
2018
£
£
Wages and salaries
780,452
734,548
Social security costs
84,910
79,925
Pension costs
13,863
8,132
879,225
822,605
6
Directors' remuneration
2019
2018
£
£
Remuneration for qualifying services
32,000
32,000
7
Interest receivable and similar income
2019
2018
£
£
Interest income
Interest on bank deposits
4,393
2,307
Other interest income
1,016
-
Total income
5,409
2,307
Investment income includes the following:
Interest on financial assets not measured at fair value through profit or loss
4,393
2,307
PLATT & REILLY UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
- 16 -
8
Interest payable and similar expenses
2019
2018
£
£
Interest on financial liabilities measured at amortised cost:
Interest on invoice finance arrangements
61,554
60,597
Other finance costs:
Other interest
-
22
61,554
60,619
9
Taxation
2019
2018
£
£
Current tax
UK corporation tax on profits for the current period
348,974
242,184
Adjustments in respect of prior periods
(245,252)
-
Total current tax
103,722
242,184
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2019
2018
£
£
Profit before taxation
1,615,992
1,163,381
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2018: 19.00%)
307,038
221,042
Tax effect of expenses that are not deductible in determining taxable profit
41,936
21,142
Adjustments in respect of prior years
(245,252)
-
Taxation charge for the year
103,722
242,184
10
Dividends
2019
2018
£
£
Interim paid
500,000
-
PLATT & REILLY UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
- 17 -
11
Debtors
2019
2018
Amounts falling due within one year:
£
£
Gross amounts owed by contract customers
9,156,717
8,394,842
Other debtors
112,139
760,007
Prepayments and accrued income
46,095
108,390
9,314,951
9,263,239
12
Creditors: amounts falling due within one year
2019
2018
Notes
£
£
Bank loans and overdrafts
13
931,918
1,148,793
Trade creditors
3,867,282
4,609,506
Amounts owed to group undertakings
950,439
450,439
Corporation tax
218,381
132,685
Other taxation and social security
400,535
236,741
Other creditors
802,652
810,267
Accruals and deferred income
621,742
390,203
7,792,949
7,778,634
13
Loans and overdrafts
2019
2018
£
£
Bank overdrafts
931,918
1,148,793
Payable within one year
931,918
1,148,793
Short term bank financing
The company's short term bank financing is secured by a) fixed and floating charges over the company's assets; b) a parent company guarantee from RPM Investment Holdings Limited for all debts and liabilities; and c) a directors personal guarantees to the sum of £280,000 against all debts and liabilities that may become due to the bank.
PLATT & REILLY UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
- 18 -
14
Retirement benefit schemes
2019
2018
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
13,863
8,132
The company operates a defined contribution pension scheme for all qualifying employees.
The assets of the scheme are held separately from those of the company in an independently administered fund.
15
Share capital
2019
2018
£
£
Ordinary share capital
Issued and fully paid
400 Ordinary shares of £1 each
400
400
16
Operating lease commitments
Lessee
Operating lease payments represent rentals payable by the company for certain of its properties. Leases are negotiated on a case by case basis with variable lease terms.
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2019
2018
£
£
Within one year
68,960
68,960
Between two and five years
114,932
183,892
183,892
252,852
17
Events after the reporting date
The effects of the COVID-19 outbreak which are noted in the strategic and directors reports are as a result of events that arose after the balance sheet date and it is therefore a non-adjusting event with no adjustments required or considered necessary in the financial statements for the year ended 31 December 2019.
PLATT & REILLY UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
- 19 -
18
Related party transactions
Remuneration of key management personnel
The remuneration of key management personnel is as follows.
2019
2018
£
£
Aggregate compensation
-
32,000
The parent undertaking of Platt & Reilly UK Limited is RPM Investment Holdings Ltd. There is no ultimate controlling party.
Transactions with related parties
Description of
Income
Payments
transaction
2019
2018
2019
2018
£
£
£
£
Other related parties
Direct costs
3,965,333
4,432,212
Amounts owed to/by related parties
The following amounts were outstanding at the reporting end date:
Amount owed to
Amounts owed by
2019
2018
2019
2018
£
£
£
£
Other related parties
162,251
791,222
Purchases of goods, services and management charges from related parties were undertaken in the normal course of business with outstanding balances repayable on normal commercial terms.
At the year-end there was also a loan balance of £450,439 (201
8
: £
450
,
439
) due to the parent undertaking. This loan balance is repayable on demand.
19
Ultimate controlling party
The parent company of Platt & Reilly UK Limited is RPM Investment Holdings Limited. A company incorporated in the Republic of Ireland.
There is no ultimate controlling party.
PLATT & REILLY UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
- 20 -
20
Cash generated from operations
2019
2018
£
£
Profit for the year after tax
1,512,270
921,197
Adjustments for:
Taxation charged
103,722
242,184
Finance costs
61,554
60,619
Investment income
(5,409)
(2,307)
Movements in working capital:
Increase in debtors
(51,712)
(2,544,914)
Increase in creditors
145,494
1,577,879
Cash generated from operations
1,765,919
254,658
21
Analysis of changes in net funds
1 January 2019
Cash flows
31 December 2019
£
£
£
Cash at bank and in hand
1,653,137
974,873
2,628,010
Bank overdrafts
(1,148,793)
216,875
(931,918)
504,344
1,191,748
1,696,092
2019-12-31
2019-01-01
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