Pangborn Limited - Limited company accounts 18.2

REGISTERED NUMBER: 05902414 (England and Wales)

REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31ST DECEMBER 2018

FOR

PANGBORN LIMITED

Page

Company Information

1

Report of the Directors

2

Report of the Independent Auditors

3

Statement of Income and Retained Earnings

5

Balance Sheet

6

Notes to the Financial Statements

7

DIRECTORS:

S Cooper

H H Prokopp

R K Stonecipher

L Van Der Weijden

REGISTERED OFFICE:

Park Works

Bagillt Road

Greenfield

Holywell

Clwyd

CH8 7EP

REGISTERED NUMBER:

05902414 (England and Wales)

AUDITORS:

M. D. Coxey and Co. Limited

Chartered Accountants

and Statutory Auditors

25 Grosvenor Road

Wrexham

LL11 1BT

BANKERS:

National Westminster Bank Plc

33 Eastgate Street

Chester

Cheshire

CH1 1LG

SOLICITORS:

Aaron & Partners LLP

Grosvenor Court

Foregate Street

Chester

CH1 1HG

The directors present their report with the financial statements of the company for the year ended 31st December 2018.

DIRECTORS

The directors during the year under review were:

S Cooper

H H Prokopp

R K Stonecipher

L Van Der Weijden

The directors holding office at 31st December 2018 did not hold any beneficial interest in the issued share capital of the

company at 1st January 2018 or 31st December 2018.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Report of the Directors 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

The auditors, M. D. Coxey and Co. Limited, will be proposed for re-appointment at the forthcoming Annual General

Meeting.

This report has been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small

companies.

ON BEHALF OF THE BOARD:

S Cooper - Director

16th April 2019

Opinion

We have audited the financial statements of Pangborn Limited (the 'company') for the year ended 31st December 2018

which comprise the Statement of Income and Retained Earnings, Balance Sheet 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 31st December 2018 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

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.

Other information

The directors are responsible for the other information. The other information comprises the information in the Report

of the Directors, 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 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.

Opinion 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 Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Report of the Directors has been prepared in accordance with applicable legal requirements.

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 Report of the Directors.

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; or

-	the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemption from the requirement to prepare a Strategic Report or in preparing the Report of the Directors.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page two, 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.

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.

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.

Mr Anthony Lewis (Senior Statutory Auditor)

for and on behalf of M. D. Coxey and Co. Limited

Chartered Accountants

and Statutory Auditors

25 Grosvenor Road

Wrexham

LL11 1BT

16th April 2019

TURNOVER

3

3,511,334

3,333,661

Cost of sales

2,430,672

2,241,075

GROSS PROFIT

1,080,662

1,092,586

Administrative expenses

1,026,198

945,311

54,464

147,275

Other operating income

4

336

-

OPERATING PROFIT

6

54,800

147,275

Interest receivable and similar income

7

134

20

54,934

147,295

Interest payable and similar expenses

5

55

PROFIT BEFORE TAXATION

54,929

147,240

Tax on profit

8

10,979

26,913

PROFIT FOR THE FINANCIAL YEAR

43,950

120,327

Retained earnings at beginning of year

147,192

11,890

RETAINED EARNINGS AT END OF YEAR

191,142

132,217

FIXED ASSETS

Tangible assets

9

157,657

171,120

CURRENT ASSETS

Stocks

566,907

619,233

Debtors

10

559,411

403,070

Cash at bank and in hand

285,618

290,964

1,411,936

1,313,267

CREDITORS

Amounts falling due within one year

11

1,024,838

981,024

NET CURRENT ASSETS

387,098

332,243

TOTAL ASSETS LESS CURRENT LIABILITIES

544,755

503,363

PROVISIONS FOR LIABILITIES

29,955

32,513

NET ASSETS

514,800

470,850

CAPITAL AND RESERVES

Called up share capital

13

323,658

323,658

Retained earnings

14

191,142

147,192

SHAREHOLDERS' FUNDS

514,800

470,850

The financial statements have been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies.

The financial statements were approved by the Board of Directors on 16th April 2019 and were signed on its behalf by:

S Cooper - Director

1.	STATUTORY INFORMATION

Pangborn Limited is a private company, limited by shares , registered in England and Wales. The company's

registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Principal activity

The principal activity of the company continued to be that of shotblast machine sales, repairs and service.

Related party exemption

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 subsidiaries within the group.

Turnover

The company recognises revenue, including amounts billed to customers for shipping and handling costs, when

persuasive evidence of an arrangement exists, delivery has occurred, the sales price or fee is fixed or

determinable, and the collection is reasonably assured. In instances where final acceptance of the product is

specified by the customer, revenue is deferred until all acceptance criteria have been met.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods

have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it

is probable that the economic benefits associated with the transaction will flow to the entity and the costs

incurred or to be incurred in respect of the transaction can be measured reliably.

Revenue from contracts for the provision of professional services is recognised by reference to the stage of

completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The

stage of completion is calculated by comprising costs incurred, mainly in relation to contractual hourly staff

rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is

recognised only to the extent of the expenses recognised that it is probable will be recovered.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Plant and machinery

-

15% on reducing balance

Fixtures and fittings

-

15% on reducing balance

Office equipment

-

15% on reducing balance

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of

depreciation and any impairment losses.

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and

the carrying value of the asset, and is credited or charged to profit or loss.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises

direct materials and, where applicable, direct labour costs and those overheads that have been incurred in

bringing the stocks to their present location and condition.

Stocks held for distribution at no or nominal consideration are measured at the lower of replacement cost and

cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks

over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or

loss. Reversals of impairment losses are also recognised in profit or loss.

Financial instruments

The company has elected to apply the provisions of 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.

Cash and cash equivalents

Cash at bank and in hand are basic financial assets and include cash in hand, deposits held at call with

banks, other short-term liquid investments with original maturities of three months or less, and bank

overdrafts.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at

transaction price including transaction costs and are subsequently carried at amortised cost using the

effective interest method unless the arrangement constitutes a financing transaction, where the transaction

is measured at the present value of the future receipts discounted at a market rate of interest. Financial

assets classified as receivable within one year are not amortised.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and

preference shares that are classified as debt, are initially recognised at transaction price unless the

arrangement constitutes a financing transaction, where the debt instrument is measured at the present

value of the future payments discounted at a market rate of interest. Financial liabilities classified as

payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course

of business from suppliers. Amounts payable are classified as current liabilities if payment is due within

one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially

at transaction price and subsequently measured at amortised cost using the effective interest method.

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 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 recorded at the monthly rate ruling at the date of the

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.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension

scheme are charged to profit or loss in the period to which they relate.

3.

TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the company.

4.	OTHER OPERATING INCOME

31.12.18

31.12.17

£

£

Sundry receipts

336

-

5.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 28 (2017 - 28 ) .

31.12.18

31.12.17

£

£

Directors' remuneration

114,816

96,564

Directors' pension contributions to money purchase schemes

5,400

4,200

6.	OPERATING PROFIT

The operating profit is stated after charging:

31.12.18

31.12.17

£

£

Depreciation - owned assets

28,503

30,940

Foreign exchange losses

10,508

5,446

Operating leases: land and buildings

58,750

60,000

Operating leases: other

54,859

48,167

Auditors remuneration

12,000

11,400

Auditors remuneration: non audit work

1,140

1,345

7.

INTEREST RECEIVABLE AND SIMILAR INCOME

31.12.18

31.12.17

£

£

Deposit account interest

134

20

8.

TAXATION

Analysis of the tax charge

The tax charge on the profit for the year was as follows:

31.12.18

31.12.17

£

£

Current tax:

UK corporation tax

13,347

33,016

Deferred tax

(2,368

)

(6,103

)

Tax on profit

10,979

26,913

UK corporation tax has been charged at 19% (2017 - 19.25%).

9.	TANGIBLE FIXED ASSETS

Fixtures

Plant and

and

Office

machinery

fittings

equipment

Totals

£

£

£

£

COST

At 1st January 2018

197,901

21,659

115,476

335,036

Additions

11,034

134

4,512

15,680

Disposals

(1,400

)

-

-

(1,400

)

At 31st December 2018

207,535

21,793

119,988

349,316

DEPRECIATION

At 1st January 2018

96,878

11,386

55,652

163,916

Charge for year

17,056

1,591

9,856

28,503

Eliminated on disposal

(760

)

-

-

(760

)

At 31st December 2018

113,174

12,977

65,508

191,659

NET BOOK VALUE

At 31st December 2018

94,361

8,816

54,480

157,657

At 31st December 2017

101,023

10,273

59,824

171,120

10.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.12.18

31.12.17

£

£

Trade debtors

523,178

368,275

Amounts owed by group undertakings

100

100

Prepayments

36,133

34,695

559,411

403,070

11.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.12.18

31.12.17

£

£

Trade creditors

173,015

247,169

Amounts owed to group undertakings

365,278

123,092

Corporation tax

16,931

33,016

Social security and other taxes

30,193

27,122

VAT

94,777

51,893

Other creditors

202,652

350,626

Accrued expenses

141,992

148,106

1,024,838

981,024

12.	LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:

31.12.18

31.12.17

£

£

Within one year

60,200

60,200

Between one and five years

27,326

103,315

87,526

163,515

13.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

31.12.18

31.12.17

value:

£

£

323,658

Ordinary shares

£1

323,658

323,658

14.

RESERVES

Retained

earnings

£

At 1st January 2018

147,192

Profit for the year

43,950

At 31st December 2018

191,142

15.	CAPITAL COMMITMENTS

31.12.18

31.12.17

£

£

Contracted but not provided for in the

financial statements

-

-

16.	PARENT COMPANY

The parent company of Pangborn Limited is Pangborn Europe S.r.l. and its registered office is Via Enrico Fermi

75, Caronno Pertusella, 21042, Italy.

The ultimate parent company of Pangborn Limited is United Generations LLC, a company incorporated in the

USA.