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Financial Statements for the Year Ended 31 December 2021 |
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PRINT-RITE EUROPE LTD. |
REGISTERED NUMBER:
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Financial Statements for the Year Ended 31 December 2021 |
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for |
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PRINT-RITE EUROPE LTD. |
PRINT-RITE EUROPE LTD. (REGISTERED NUMBER: 03200492) |
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Contents of the Financial Statements |
FOR THE YEAR ENDED 31 DECEMBER 2021 |
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Company Information | 1 |
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Statement of Financial Position | 2 |
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Notes to the Financial Statements | 3 |
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PRINT-RITE EUROPE LTD. |
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Company Information |
FOR THE YEAR ENDED 31 DECEMBER 2021 |
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Directors: |
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Registered office: |
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Registered number: |
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Auditors: |
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Chartered Accountants & Statutory Auditor |
10 Stadium Business Court |
Millennium Way |
Pride Park |
Derby |
DE24 8HP |
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Bankers: |
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63 Bath Street |
Ilkeston |
Derbyshire |
DE7 8DD |
PRINT-RITE EUROPE LTD. (REGISTERED NUMBER: 03200492) |
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Statement of Financial Position |
31 DECEMBER 2021 |
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2021 | 2020 |
Notes | £ | £ |
Fixed assets |
Intangible assets | 5 |
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Tangible assets | 6 |
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Investments | 7 |
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Current assets |
Stocks |
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Debtors | 8 |
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Cash at bank and in hand |
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Creditors |
Amounts falling due within one year | 9 |
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Net current (liabilities)/assets |
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Total assets less current liabilities |
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Creditors |
Amounts falling due after more than one
year |
10 |
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Net (liabilities)/assets |
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Capital and reserves |
Called up share capital | 13 |
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Retained earnings |
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Shareholders' funds |
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In accordance with Section 444 of the Companies Act 2006, the Statement of Income and Retained Earnings has not been delivered. |
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The financial statements were approved by the Board of Directors and authorised for issue on
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PRINT-RITE EUROPE LTD. (REGISTERED NUMBER: 03200492) |
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Notes to the Financial Statements |
FOR THE YEAR ENDED 31 DECEMBER 2021 |
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1. | STATUTORY INFORMATION |
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Print-Rite Europe Ltd. is a
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2. | STATEMENT OF COMPLIANCE |
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3. | ACCOUNTING POLICIES |
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Basis of preparing the financial statements |
The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss. |
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The financial statements are prepared in sterling, which is the functional currency of the entity. |
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Judgements and key sources of estimation uncertainty |
Stock |
Due to the nature of finished goods which involve cartridges for certain printer models, there is an obsolescence risk relating to the cartridges, if the printer model it belongs to becomes a redundancy model. |
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Where stock items have been identified as slow moving, management use their judgement in considering whether future special offers will allow stock items to be sold at a reduced cost and, stock values are then written down to reflect the lower of cost and estimated selling prices less cost to complete and sell. |
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Management have estimated the net realisable value to be far lower than the cost and therefore have taken the decision to impair stock to £nil. Management have assessed that the cost for staffing and maintaining an operational warehouse for storage significantly exceeds the proceeds expected to be received from stock. |
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Intangible assets |
Capitalised computer software costs consist of SAP licence agreements. The directors consider the value in use of the software costs to exceed the net book value in the accounts. The directors have made this assessment on the basis that the software can be transferred to any worldwide affiliated legal entity. The directors have confirmed they are planning to set up a new UK/EU company to manage the EU customer base as agents and the new company will purchase the software at an amount equal to the carrying value in the accounts. The directors have produced reasonable forecasts of expected commissions generated from the new company and confirm these amounts will be in excess of the carrying value of the software. Accordingly, the directors consider that the intangible assets have not suffered an impairment. |
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Tangible assets |
Management have estimated that the recoverable amount of the tangible assets is far lower and equivalent to scrap prices than the carrying amount therefore a full impairment has been undertaken. Management consider the value in use at the year-end to be negligible as the assets in their current condition are not expected to produce further cash flows. |
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Turnover |
Turnover is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of discounts and Value Added Tax. |
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Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have transferred to the buyer (usually on despatch of the goods); the amount of revenue can be measured reliably; it is probable that the associated economic benefits will flow to the entity; and the costs incurred or to be incurred in respect of the transactions can be measured reliably. |
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Intangible assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
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Intangible assets are being amortised over their useful economic life of 10 years. |
PRINT-RITE EUROPE LTD. (REGISTERED NUMBER: 03200492) |
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Notes to the Financial Statements - continued |
FOR THE YEAR ENDED 31 DECEMBER 2021 |
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3. | ACCOUNTING POLICIES - continued |
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Tangible fixed assets |
Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. |
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An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in equity, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss. |
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Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows: |
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Long leasehold property - 20 years |
Plant and machinery - 5 years |
Fixtures, fittings and equipment - 5 years |
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Investments in subsidiaries |
Investments in subsidiary undertakings are measured at cost less any accumulated impairment loss. |
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Investments in subsidiary undertakings which are in nature intercompany loans have been recorded as such within current debtors these are measured at their fair value. |
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Stocks |
Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, trade discounts, rebates and costs of conversion and other costs incurred in bringing the stock to its present location and condition. |
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Stock is valued on a FIFO (first-in, first-out) basis. Provision is made for obsolete, slow-moving or defective items where appropriate. |
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Financial instruments |
A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument. Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Debt instruments are subsequently measured at amortised cost. Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately. For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets are either assessed individually or grouped on the basis of similar credit risk characteristics. Any reversals of impairment are recognised in profit or loss immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised. |
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Income tax |
The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. |
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Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date. |
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Deferred tax |
Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference. |
PRINT-RITE EUROPE LTD. (REGISTERED NUMBER: 03200492) |
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Notes to the Financial Statements - continued |
FOR THE YEAR ENDED 31 DECEMBER 2021 |
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3. | ACCOUNTING POLICIES - continued |
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Operating leases |
Lease payments are recognised as an expense over the lease term on a straight-line basis. The aggregate benefit of lease incentives is recognised as a reduction to expense over the lease term, on a straight-line basis. |
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Going concern |
The company has received written confirmation from its parent company, confirming their intention to support the company to enable it to meet its ongoing obligations as they fall due. Following the uncertainty from the Russian/Ukraine war and trade relationships between UK and Europe following Brexit, management have decided to mitigate any potential risk and exposure by ceasing to trade during the year ended 31 December 2022. Given the levels of uncertainty management of the larger group have decided to keep the company as dormant. There are no immediate plans to start trading nor have management muted the possibility of closing the company down, accordingly there is a material uncertainty that may cast doubt on the company's ability to continue as a going concern. |
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Consolidation |
The company has taken the advantage of the option not to prepare consolidated financial statements contained in Section 401 of the Companies Act 2006 on the basis that the company and its subsidiary undertakings are consolidated at a higher level in Print-Rite Holdings Limited, a company incorporated in Hong Kong. |
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Copies of the consolidated financial statements of Print-Rite Holdings Limited are available from Companies Registry, 14th floor, High Block, Queensway Government Offices, 66 Queensway, Hong Kong. |
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4. | EMPLOYEES AND DIRECTORS |
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The average number of employees during the year was
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5. | INTANGIBLE FIXED ASSETS |
Computer |
software |
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Cost |
At 1 January 2021 |
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Additions |
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At 31 December 2021 |
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Amortisation |
At 1 January 2021 |
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Amortisation for year |
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At 31 December 2021 |
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Net book value |
At 31 December 2021 |
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At 31 December 2020 |
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PRINT-RITE EUROPE LTD. (REGISTERED NUMBER: 03200492) |
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Notes to the Financial Statements - continued |
FOR THE YEAR ENDED 31 DECEMBER 2021 |
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6. | TANGIBLE FIXED ASSETS |
Fixtures |
Leasehold | Plant and | and | Computer |
improvements | machinery | fittings | Equipment | Totals |
£ | £ | £ | £ | £ |
Cost |
At 1 January 2021 |
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Additions |
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Impairments | (115,632 | ) | (6,948 | ) | (212,806 | ) | (25,876 | ) | (361,262 | ) |
At 31 December 2021 |
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Depreciation |
At 1 January 2021 |
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Charge for year |
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Impairments | ( |
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At 31 December 2021 |
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Net book value |
At 31 December 2021 |
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At 31 December 2020 |
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7. | FIXED ASSET INVESTMENTS |
Subsidiary |
undertaking |
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Cost |
At 1 January 2021 |
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Impairments | ( |
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At 31 December 2021 |
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Net book value |
At 31 December 2021 |
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At 31 December 2020 |
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8. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2021 | 2020 |
£ | £ |
Trade debtors |
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Amounts owed by group undertakings |
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Other debtors |
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Deferred tax asset |
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Prepayments and accrued income |
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A provision of £19.4m has been made against amounts due from a subsidiary undertaking on the basis that the subsidiary has ceased trading and there is uncertainty over the recoverability of this balance. |
PRINT-RITE EUROPE LTD. (REGISTERED NUMBER: 03200492) |
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Notes to the Financial Statements - continued |
FOR THE YEAR ENDED 31 DECEMBER 2021 |
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9. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2021 | 2020 |
£ | £ |
Bank loans and overdrafts |
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Trade creditors |
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Amounts owed to group undertakings |
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Social security and other taxes |
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VAT |
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Accruals and deferred income |
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10. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
2021 | 2020 |
£ | £ |
Bank loans - 2-5 years |
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11. | LEASING AGREEMENTS |
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Minimum lease payments under non-cancellable operating leases fall due as follows: |
2021 | 2020 |
£ | £ |
Within one year |
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Between one and five years |
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12. | FINANCIAL INSTRUMENTS |
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Note 3 to these financial statements details the accounting policy for financial instruments. |
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The company has the following financial instruments: |
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2021 | 2020 |
£ | £ |
Financial assets that are debt instruments measured at amortised
costs |
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Trade debtors | 21,101 | 124,824 |
Amounts owed by group undertakings | - | 10,821,504 |
Other debtors | 19,995 | 15,500 |
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Financial liabilities measured at amortised costs |
Bank loans | 45,833 | 50,000 |
Trade creditors | 137,441 | 147,656 |
Amounts owed to group undertakings | 19,052,996 | 10,954,113 |
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No interest income and interest expense for financial assets and financial liabilities that are not measured at fair value through the income statement. |
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Intercompany loans to subsidiaries are measured at amortised cost. |
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13. | CALLED UP SHARE CAPITAL |
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Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2021 | 2020 |
value: | £ | £ |
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Ordinary | £1 | 10,000 | 10,000 |
PRINT-RITE EUROPE LTD. (REGISTERED NUMBER: 03200492) |
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Notes to the Financial Statements - continued |
FOR THE YEAR ENDED 31 DECEMBER 2021 |
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14. | DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006 |
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The Report of the Auditors was unqualified. |
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for and on behalf of
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15. | RELATED PARTY DISCLOSURES |
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Key management personnel include all persons that have authority and responsibility for planning, directing and controlling the activities of the company. The total compensation paid to key management personnel for services provided to the company was £nil (2020: £nil). |
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16. | POST BALANCE SHEET EVENTS |
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The business ceased to trade in February 2022 and remained as a dormant holding company. |
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17. | ULTIMATE CONTROLLING PARTY |
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The company's ultimate parent company and controlling party is Starbo Investment Limited, a company incorporated in Hong Kong. |
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The company's immediate parent company and controlling party is Print-Rite Investment Limited, a company incorporated in the British Virgin Islands. |
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The smallest group in which the results of the company are consolidated is that headed by Print-Rite Holdings Limited, a company incorporated in Hong Kong. |
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The largest group in which the results of the company are consolidated is that headed by Starbo Investment Limited, a company incorporated in Hong Kong. |