REGISTERED NUMBER: |
Strategic Report, Directors' Report and |
Financial Statements for the Year Ended 31 October 2023 |
for |
PPT Group UK Ltd |
REGISTERED NUMBER: |
Strategic Report, Directors' Report and |
Financial Statements for the Year Ended 31 October 2023 |
for |
PPT Group UK Ltd |
PPT Group UK Ltd (Registered number: 00414668) |
Contents of the Financial Statements |
for the Year Ended 31 October 2023 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Directors' Report | 3 |
Report of the Independent Auditors | 5 |
Income Statement | 9 |
Statement of other Comprehensive Income | 10 |
Balance Sheet | 11 |
Statement of Changes in Equity | 12 |
Notes to the Financial Statements | 13 |
PPT Group UK Ltd |
Company Information |
for the Year Ended 31 October 2023 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Accountants & |
Statutory Auditors |
3rd Floor |
56 Wellington Street |
Leeds |
West Yorkshire |
LS1 2EE |
BANKERS: |
1 Centenary Square |
Birmingham |
B1 1HQ |
PPT Group UK Ltd (Registered number: 00414668) |
Strategic Report |
for the Year Ended 31 October 2023 |
As part of the group's strategy to maximise cross selling and efficient use of internal resources, the company took on the UK trade of its UK sister company, Mecmesin Ltd. The Company's principal activity during the year continued to be that of a design, manufacture and distributor of testing instruments, consumables and calibration services. |
All figures include the results of the UK trade which was previously in Mecmesin Ltd, from the 1st March 2022. |
BUSINESS REVIEW AND FUTURE OUTLOOK |
Turnover in FY23 of £23,201,890 was higher than FY22 turnover at £21,393,075. Although an increase, this was driven by the annualisation of the transfer of UK trade previously in Mecmesin Ltd, with organic turnover falling below expectations. |
The Company made a profit for the financial year of £3,342,826 compared to £3,910,812 in FY22. This reduction was primarily driven by Foreign Exchange loss as a result of the increased sterling strength and the consequent revaluation of intercompany debts. |
Cash in the bank at year end was £596,463 compared to £1,589,661 in the prior year. Reserves are also held by the Company and were £24,896,616 at the end of FY23, having been £21,597,927 in FY22. |
2024 is projected to deliver year-on-year growth with an increased market focus, coupled with the continuation and annualisation of the synergy benefits identified following the Mecmesin integration. |
PRINCIPAL RISKS AND UNCERTAINTIES |
The key business risks and uncertainties affecting the Company are considered to relate to competition and the market forces within the industry. The company with the backing of its parent company Physical Properties Testing Ltd feels confident that it will remain a market leader. |
FINANCIAL AND OTHER KEY PERFORMANCE INDICATORS |
Financial performance is measured by turnover and operating profit. Turnover was £23,201,890 in 2023 compared to £21,393,075 as set out above. Operating profit was £3,393,638 in 2023 compared to £4,461,738 in 2022. |
FUTURE DEVELOPMENTS |
The Company is focused on driving growth in both turnover and profitability, with certain restructuring continuing. The Company's intentions is to maintain focus on existing and emerging markets supported by enhanced product development. |
POST BALANCE SHEET EVENT |
As part of the ongoing restructuring, John Page, Group Managing Director, left the business on 31 December 2023. |
RESEARCH & DEVELOPMENT ACTIVITIES |
The company is continually looking to develop new products and enhance the existing product range to meet and exceed customer expectations. A number of projects are currently ongoing and expected to deliver incremental growth in FY24. |
ON BEHALF OF THE BOARD: |
PPT Group UK Ltd (Registered number: 00414668) |
Directors' Report |
for the Year Ended 31 October 2023 |
The directors present their report and the financial statements for the year ended 31 October 2023. |
DIVIDENDS |
No dividends will be distributed for the year ended 31 October 2023. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 November 2022 to the date of this report. |
Other changes in directors holding office are as follows: |
J M Page ceased to be a director since the year end, on 31 December 2023. |
FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES |
The company holds or issues financial instruments in order to achieve three main objectives, being: |
(a) to finance its operations; |
(b) to manage its exposure to interest and currency risks arising from its operations and from its sources of finance; and |
(c) for trading purposes. |
In additions, various financial instruments (e.g. trade debtors, trade creditors, accruals and prepayments) arise directly from the company's operations. |
Transactions in financial instruments result in the company assuming or transferring to another party one or more of the financial risks described below. |
Interest rate risk - |
Fixed and variable interest rates are arranged when obtaining interest bearing loans and borrowings. |
Credit risk - |
The company monitors credit risk closely and considers that its current policies of credit checks meets its objectives of managing exposure to credit risk. |
Currency risk - |
The company has foreign currency bank accounts into which it receives monies from customers and makes payments to suppliers. The company considers that this policy meets its objectives of managing exposure to currency risk. |
RESEARCH AND DEVELOPMENT ACTIVITIES |
It is the company's policy to modify continually its product base to meet customer requirements. |
DISCLOSURE IN THE STRATEGIC REPORT |
Disclosures with regard to review of the business, principal risks and uncertainties, key performance indicators and future plans are included in the strategic report. |
PPT Group UK Ltd (Registered number: 00414668) |
Directors' Report |
for the Year Ended 31 October 2023 |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Strategic Report, the Directors' 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. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
AUDITORS |
Under section 487(2) of the Companies Act 2006, Haines Watts will be deemed to have been reappointed as auditors 28 days after these financial statements were sent to members or 28 days after the latest date prescribed for filing the accounts with the registrar, whichever is earlier. |
ON BEHALF OF THE BOARD: |
Report of the Independent Auditors to the Members of |
PPT Group UK Ltd |
Opinion |
We have audited the financial statements of PPT Group UK Ltd (the 'company') for the year ended 31 October 2023 which comprise the Income Statement, Statement of other Comprehensive Income, Balance Sheet, Statement of Changes in Equity 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 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 company's affairs as at 31 October 2023 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. |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the 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 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. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Directors' Report, but does not include the financial statements and our Report of the Auditors 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 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 the audit: |
- | the information given in the Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements. |
Report of the Independent Auditors to the Members of |
PPT Group UK Ltd |
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 identified material misstatements in the Strategic Report or the Directors' Report. |
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 Statement of Directors' Responsibilities set out on page four, 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 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. |
Report of the Independent Auditors to the Members of |
PPT Group UK Ltd |
Auditors' 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 a Report of the Auditors 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. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. |
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows: |
- the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations; |
- we identified the laws and regulations applicable to the company through discussions with directors and other management; and from our commercial knowledge and experience of the sector |
- we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation and data protection, anti-bribery, employment, environmental and health and safety legislation; |
- we assessed the extent of compliance with laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and |
- identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit |
We assessed the susceptibility of the company's financial statements to misstatement, including obtaining an understanding of how fraud might occur, by: |
- making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; |
- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations; and |
- understanding the design of the company's remuneration policies. |
To address the risk of fraud through management bias and override of controls, including the impact on revenue recognition, we: |
- performed analytical procedures to identify any unusual or unexpected relationships; |
- tested journal entries to identify unusual transactions; |
- assessed whether judgements and assumptions made in determining the accounting estimates set out in note 3 were indicative of potential bias; and |
- investigated the rationale behind significant or unusual transactions; and |
- the use of data analytics to identify transactions requiring further investigation. |
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: |
- agreeing financial statement disclosure to underlying supporting documentation; |
- reading the minutes of meetings of those charged with governance; |
- enquiring of management as to actual and potential litigation and claims; and |
- reviewing correspondence with HMRC and relevant regulators. |
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. |
Report of the Independent Auditors to the Members of |
PPT Group UK Ltd |
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
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 a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
for and on behalf of |
Chartered Accountants & |
Statutory Auditors |
3rd Floor |
56 Wellington Street |
Leeds |
West Yorkshire |
LS1 2EE |
PPT Group UK Ltd (Registered number: 00414668) |
Income Statement |
for the Year Ended 31 October 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
TURNOVER | 5 |
Cost of sales |
GROSS PROFIT |
Distribution costs |
Administrative expenses |
9,287,895 | 7,035,287 |
3,393,638 | 4,459,882 |
Other operating income |
OPERATING PROFIT | 8 |
Interest receivable and similar income |
PROFIT BEFORE TAXATION |
Tax on profit | 9 |
PROFIT FOR THE FINANCIAL YEAR |
PPT Group UK Ltd (Registered number: 00414668) |
Statement of other Comprehensive Income |
for the Year Ended 31 October 2023 |
2023 | 2022 |
Notes | £ | £ |
PROFIT FOR THE YEAR |
OTHER COMPREHENSIVE INCOME |
Movement on deferred tax relating to | ( |
) |
revaluation |
Income tax relating to other comprehensive income |
OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX |
( |
) |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
PPT Group UK Ltd (Registered number: 00414668) |
Balance Sheet |
31 October 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 10 |
Tangible assets | 11 |
CURRENT ASSETS |
Stocks | 12 |
Debtors | 13 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 14 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
PROVISIONS FOR LIABILITIES | 16 |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 17 |
Share premium | 18 |
Revaluation reserve | 18 |
Capital redemption reserve | 18 |
Retained earnings | 18 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
PPT Group UK Ltd (Registered number: 00414668) |
Statement of Changes in Equity |
for the Year Ended 31 October 2023 |
Called up |
share | Retained | Share |
capital | earnings | premium |
£ | £ | £ |
Balance at 1 November 2021 |
Changes in equity |
Profit for the year | - | 3,910,812 | - |
Other comprehensive income | - | - | - |
Total comprehensive income | - | - |
Transfer from revaluation |
reserve | - | 4,278 | - |
Balance at 31 October 2022 | 16,183 | 20,970,891 | 37,961 |
Changes in equity |
Profit for the year | - | 3,342,826 | - |
Other comprehensive income | - | - | - |
Total comprehensive income | - | - |
Transfer from revaluation |
reserve | - | (39,582 | ) | - |
Balance at 31 October 2023 |
Capital |
Revaluation | redemption | Total |
reserve | reserve | equity |
£ | £ | £ |
Balance at 1 November 2021 |
Changes in equity |
Profit for the year | - | - | 3,910,812 |
Other comprehensive income | 813 |
Total comprehensive income |
Transfer from revaluation |
reserve | (4,278 | ) | - | - |
Balance at 31 October 2022 | 566,427 | 21,597,927 |
Changes in equity |
Profit for the year | - | - | 3,342,826 |
Other comprehensive income | ( |
) | (44,137 | ) |
Total comprehensive income | ( |
) |
Transfer from revaluation |
reserve | 39,582 | - | - |
Balance at 31 October 2023 | 561,872 |
PPT Group UK Ltd (Registered number: 00414668) |
Notes to the Financial Statements |
for the Year Ended 31 October 2023 |
1. | STATUTORY INFORMATION |
PPT Group UK Ltd is a |
2. | STATEMENT OF COMPLIANCE |
3. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
The financial statements have been prepared under the historical cost convention as modified by the revaluation of freehold property. |
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the Company's accounting policies. |
Going concern |
The financial statements have been prepared on a going concern basis. The Directors have reviewed and considered relevant information, including the annual budget and future cash flows, in making their assessment. Based on these assessments, the Directors have concluded that they can continue to adopt the going concern basis in preparing the annual report and accounts. |
Financial Reporting Standard 102 - reduced disclosure exemptions |
The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland": |
• | the requirements of Section 7 Statement of Cash Flows; |
• | the requirements of paragraphs 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c). |
Turnover |
Turnover is recognised to the extent that it is probably that the economic benefits will flow to the Company and the turnover can be reliably measured. Turnover is measured as the fair value of the consideration received and receivable, excluding discounts, rebates, value added tax and other sales taxes. |
Goodwill |
Goodwill represents the difference between amounts paid on the cost of a buisiness combination and the acquirers interest in the fair value of its identifiable assets and liabilities of the acquire at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight line basis to the profit and loss account over its useful economic life of 5 years. |
PPT Group UK Ltd (Registered number: 00414668) |
Notes to the Financial Statements - continued |
for the Year Ended 31 October 2023 |
3. | ACCOUNTING POLICIES - continued |
Tangible fixed assets |
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. |
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight line method. |
Depreciation is provided on the following basis: |
Freehold property - 2.5% per annum straight line |
Plant and machinery - 25% straight line/ |
Motor vehicles - 33% straight line |
Fixtures and fittings - 15% reducing balance |
Heating plant - 25% straight line/15% reducing balance |
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date. |
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the profit and loss account. |
Stocks |
Stocks are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow moving stocks. |
Work in progress is valued on the basis of direct costs plus attributable overheads based on normal level of activity. Provision is made for any foreseeable losses where appropriate. No element of profit is included in the valuation of work in progress. |
Financial instruments |
The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in non-puttable ordinary shares. |
Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable and receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or financing transaction, like the payment of a trade debt deferred beyond normal business terms or financed at a rate of interest that is not a market rate or in the case of an out-right short-term loan not at market rate, the financial asset or liability is measured, initially, at the present value of the future cash flow discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost. |
PPT Group UK Ltd (Registered number: 00414668) |
Notes to the Financial Statements - continued |
for the Year Ended 31 October 2023 |
3. | ACCOUNTING POLICIES - continued |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Foreign currencies |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result. |
Hire purchase and leasing commitments |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
Pensions |
Differences between contributions payable and contributions actually paid are shown as either accruals or prepayments in the balance sheet. |
Interest income |
Interest income is recognised in the profit and loss account in the period in which it is receivable. |
Revaluation of tangible fixed assets |
Individual freehold and leasehold properties are carried at fair value at the date of the revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. Revaluations are undertaken with sufficient regularity to ensure the carrying amount does not differ materially from that which would be determined using fair value at the balance sheet date. |
Revaluation gains and losses are recognised in the profit and loss account unless losses exceed the previously recognised gains or reflect a clear consumption of economic benefits, in which case the excess losses are recognised in profit or loss. |
An amount equal to the excess of the annual depreciation charge on revalued assets over the notional historical cost depreciation charge on those assets is transferred annually from the revaluation reserve to the profit and loss reserve. |
PPT Group UK Ltd (Registered number: 00414668) |
Notes to the Financial Statements - continued |
for the Year Ended 31 October 2023 |
3. | ACCOUNTING POLICIES - continued |
Debtors |
Short term debtors are measured at transaction price, less any impairment. |
Cash and cash equivalents |
Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value. |
Creditors |
Short term creditors are measured at the transaction price. |
Research and development |
Research and development expenditure less grants receivable is written off in the year in which it is incurred. |
Impairment of fixed assets |
Assets that are subject to depreciation or amortisation are assessed at each balance sheet date to determine whether there is any indication that the assets are impaired. Where there is any indication that an asset has may be impaired, the carrying value of the asset (or cash generating unit to which the asset has been allocated) is tested for impairment. An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its recoverable amount. |
Provision for liabilities |
Provisions are made where an event has taken place that gives the Company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation. |
Provisions are charged as an expense to the profit and loss account in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the balance sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties. |
When payments are eventually made, they are charged to the provision carried in the balance sheet. |
Employee benefits |
Short term employee benefits, including holiday pay and other similar non monetary benefits, are recognised as an expense in the period in which they are incurred. |
4. | JUDGEMENTS IN APPLYING ACCOUNTING POLICIES AND OF ESTIMATION UNCERTAINTY |
Preparation of the financial statements requires management to make significant judgements and estimates. The items in the financial statements where these key judgements and estimates have been made include the stock provision. |
5. | TURNOVER |
The directors are of the opinion that it would be seriously prejudicial to the interests of the company to analyse the turnover between the company's markets and accordingly the information is not disclosed. |
PPT Group UK Ltd (Registered number: 00414668) |
Notes to the Financial Statements - continued |
for the Year Ended 31 October 2023 |
6. | EMPLOYEES AND DIRECTORS |
2023 | 2022 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
The average number of employees during the year was as follows: |
2023 | 2022 |
Production staff | 81 | 80 |
Administration staff | 98 | 87 |
Directors | 3 | 3 |
7. | DIRECTORS' EMOLUMENTS |
2023 | 2022 |
£ | £ |
Directors' remuneration | 381,023 | 412,803 |
Directors' pension contributions to money purchase schemes | 19,802 | 134,004 |
The highest paid director received remuneration of £150,283 (2022: £168,191). |
8. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
2023 | 2022 |
£ | £ |
Hire of plant and machinery |
Depreciation - owned assets |
Profit on disposal of fixed assets | ( |
) |
Fees payable to the Company's |
auditor for the audit of the |
Company's financial statements |
Foreign exchange differences | ( |
) |
PPT Group UK Ltd (Registered number: 00414668) |
Notes to the Financial Statements - continued |
for the Year Ended 31 October 2023 |
9. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2023 | 2022 |
£ | £ |
Current tax: |
UK corporation tax |
Deferred tax: |
Deferred tax | ( |
) |
Adjustment in respect of prior |
year | (813 | ) | - |
Total deferred tax | ( |
) |
Tax on profit |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
2023 | 2022 |
£ | £ |
Profit before tax |
Profit multiplied by the standard rate of corporation tax in the UK of |
Effects of: |
Expenses not deductible for tax purposes |
Capital allowances in excess of depreciation | - | ( |
) |
Depreciation in excess of capital allowances | - |
Adjustments to tax charge in respect of previous periods | ( |
) |
Rounding on tax charge | 734 | - |
Group relief | (733,620 | ) | (254,785 | ) |
Expenses allowable for tax purposes | - | (1,334 | ) |
Over provision | - | 367 |
Tax charged at 19% | (85,667 | ) | - |
Change in deferred tax rates | (6,712 | ) | - |
Total tax charge | 108,447 | 581,337 |
Tax effects relating to effects of other comprehensive income |
2023 |
Gross | Tax | Net |
£ | £ | £ |
Movement on deferred tax relating to | ( |
) | - | (44,137 | ) |
revaluation |
(44,137 | ) | - | (44,137 | ) |
PPT Group UK Ltd (Registered number: 00414668) |
Notes to the Financial Statements - continued |
for the Year Ended 31 October 2023 |
9. | TAXATION - continued |
2022 |
Gross | Tax | Net |
£ | £ | £ |
Movement on deferred tax relating to | - | 813 |
revaluation |
813 | - | 813 |
From 1 April 2023, the rate of corporation tax in the United Kingdom increased from 19% to 25%. |
10. | INTANGIBLE FIXED ASSETS |
Goodwill |
£ |
COST |
At 1 November 2022 |
and 31 October 2023 |
AMORTISATION |
At 1 November 2022 |
and 31 October 2023 |
NET BOOK VALUE |
At 31 October 2023 |
At 31 October 2022 |
11. | TANGIBLE FIXED ASSETS |
Freehold | Heating | Plant and |
property | plant | machinery |
£ | £ | £ |
COST |
At 1 November 2022 |
Additions |
At 31 October 2023 |
DEPRECIATION |
At 1 November 2022 |
Charge for year |
At 31 October 2023 |
NET BOOK VALUE |
At 31 October 2023 |
At 31 October 2022 |
PPT Group UK Ltd (Registered number: 00414668) |
Notes to the Financial Statements - continued |
for the Year Ended 31 October 2023 |
11. | TANGIBLE FIXED ASSETS - continued |
Fixtures |
and | Motor |
fittings | vehicles | Totals |
£ | £ | £ |
COST |
At 1 November 2022 |
Additions |
At 31 October 2023 |
DEPRECIATION |
At 1 November 2022 |
Charge for year |
At 31 October 2023 |
NET BOOK VALUE |
At 31 October 2023 |
At 31 October 2022 |
Within freehold property, Richmond Works was professionally valued by Walker Singleton Property Consultants on 19 December 2017 on an open market basis of £900,000. The surplus over the written down value was transferred to the revaluation reserve. |
Other tangible fixed assets, including subsequent additions to land and buildings, are included at cost. |
If land and buildings had not been included at valuation they would have been included under the historical cost convention as follows: |
2023 | 2022 |
£ | £ |
Cost | 363,140 | 363,140 |
Accumulated Depreciation | 216,349 | 207,270 |
Net book value | 146,791 | 155,870 |
12. | STOCKS |
2023 | 2022 |
£ | £ |
Raw materials |
Work-in-progress |
Finished goods |
PPT Group UK Ltd (Registered number: 00414668) |
Notes to the Financial Statements - continued |
for the Year Ended 31 October 2023 |
13. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£ | £ |
Trade debtors |
Amounts owed by group undertakings |
Tax |
VAT |
Prepayments and accrued income |
14. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£ | £ |
Trade creditors |
Amounts owed to group undertakings |
Tax |
Social security and other taxes |
Other creditors |
Accruals and deferred income |
15. | LEASING AGREEMENTS |
Minimum lease payments under non-cancellable operating leases fall due as follows: |
2023 | 2022 |
£ | £ |
Within one year |
Between one and five years |
16. | PROVISIONS FOR LIABILITIES |
2023 | 2022 |
£ | £ |
Deferred tax |
Deferred tax | 213,819 | 206,295 |
Charged to profit or loss | (4,740 | ) | 8,337 |
Charged to other comprehensive |
income | 44,137 | (813 | ) |
253,216 | 213,819 |
Deferred |
tax |
£ |
Balance at 1 November 2022 |
Charge to Income Statement during year |
Balance at 31 October 2023 |
PPT Group UK Ltd (Registered number: 00414668) |
Notes to the Financial Statements - continued |
for the Year Ended 31 October 2023 |
16. | PROVISIONS FOR LIABILITIES - continued |
The provision for deferred taxation is made up as follows; |
2022 | 2022 |
£ | £ |
Accelerated capital allowances | 84,321 | 82,023 |
Deferred tax on pension and other provisions | (18,396 | ) | (11,358 | ) |
Deferred tax on revaluation reserve | 187,291 | 143,154 |
253,216 | 213,819 |
17. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
Ordinary share capital | £1 | 16,183 | 16,183 |
18. | RESERVES |
Capital |
Retained | Share | Revaluation | redemption |
earnings | premium | reserve | reserve | Totals |
£ | £ | £ | £ | £ |
At 1 November 2022 | 21,581,744 |
Profit for the year |
Deferred tax movement on |
revaluation surplus | - | - | (44,137 | ) | - | (44,137 | ) |
Transfer from revaluation |
reserve | (39,582 | ) | - | 39,582 | - | - |
At 31 October 2023 | 24,880,433 |
19. | PENSION COMMITMENTS |
The company operates a defined contribution pension scheme. Pension contributions totalling £48,582 (2022: £59,777) were owed from the company at the year end. During the year a total of £262,985 was charged to the profit and loss account (2022: £210,506) for staff and directors pension contributions. |
20. | ULTIMATE PARENT COMPANY |
At the year end the company's immediate parent undertaking is Physical Properties Testing Limited, a company incorporated in England and Wales. The ultimate parent company is BV Aquisitions X Parent Sarl, a company incorporated in Luxembourg. The company's ultimate controlling party at the year end is Battery Ventures, a private equity group based in the United States of America. |
21. | RELATED PARTY DISCLOSURES |
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned member companies within the group. |
No further transactions with related parties took place as are required to be reported under FRS 102. |