PJ Colours Limited - Limited company accounts 18.2

REGISTERED NUMBER: 03479538 (England and Wales)

Strategic Report, Report of the Directors and

Financial Statements

for the Year Ended 30 April 2019

for

PJ Colours Limited

Page

Company Information

1

Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

6

Income Statement

9

Other Comprehensive Income

10

Statement of Financial Position

11

Statement of Changes in Equity

12

Notes to the Financial Statements

13

DIRECTORS:

N J Hamilton

H R Jackson

Ms J Spence

N D Jackson

SECRETARY:

Ms J Spence

REGISTERED OFFICE:

The Glades

Festival Way

Festival Park

Stoke on Trent

ST1 5SQ

REGISTERED NUMBER:

03479538 (England and Wales)

AUDITORS:

Mitten Clarke Audit Limited

Statutory Auditors

The Glades

Festival Way

Stoke on Trent

Staffordshire

ST1 5SQ

The directors present their strategic report for the year ended 30 April 2019.

REVIEW OF BUSINESS

During the year ending 30 April 2019, the company saw an 11.4% increase in revenue. Strong sales in new

sectors such as concrete admixtures provided the basis for this increase. Margins improved as a result of

the increase in revenue and also in growth of sales of more profitable lines.

The company continues to monitor the situation regarding Brexit and has a number of options for raw

material purchases both from EU and non-EU sources. The company has also made all of the necessary

provisions with HMRC & REACH in the event of a no deal Brexit.

PRINCIPAL RISKS AND UNCERTAINTIES

The company operates in a highly competitive industry, which is subject to price pressure from both local

and overseas competition. The board review prices and raw material costs on an ongoing basis.

The company purchases many of its raw materials from overseas suppliers and as such, is often exposed to

fluctuations in foreign exchange rates. The board reviews the impact movements in foreign exchange has

on both imports and exports on an ongoing basis.

KEY PERFORMANCE INDICATORS

The board monitors progress of the company using the following KPIs:

Revenue

2018/19

2017/18

Revenue

£14,319,439

£12,859,192

Increase %

11.4

3.6

This KPI is calculated by taking the turnover and other operating income for the year. This is compared to

the previous year and movement is shown as a percentage

Operating Profit

2018/19

2017/18

Operating Profit

£896,749

£424,778

% of revenue

6.3

3.3

This KPI is calculated by taking the total revenue and deducting, the cost of sales, distribution costs and

administrative expenses.

FUTURE DEVELOPMENTS

The company expects a similar level of activity in terms of revenue for the year 2019/20. The company is

continuing to focus on new product lines that will help improve both revenue and margins moving forward.

ON BEHALF OF THE BOARD:

H R Jackson - Director

23 January 2020

The directors present their report with the financial statements of the company for the year ended 30 April 2019.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of the manufacture and sale of

pigments and additives to the concrete and asphalt industries.

DIVIDENDS

Interim dividends of £840,000 were paid during the year.

The directors recommend that no final dividend be paid.

The total distribution of dividends for the year ended 30 April 2019 will be £840,000.

EVENTS SINCE THE END OF THE YEAR

Information relating to events since the end of the year is given in the notes to the financial statements.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 May 2018 to the date of

this report.

N J Hamilton

H R Jackson

Ms J Spence

N D Jackson

DISCLOSURE IN THE STRATEGIC REPORT

The company has chosen in accordance with section 414C(11) of Companies Act 2006 (Strategic Report and

Directors' Report) Regulations 2013 set out in company's Strategic Report information required by schedule

7 of the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Strategic Report, 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 or she ought to have taken as a director in order to make himself or herself aware of any

relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS

Mitten Clarke Audit Limited, has indicated its willingness to continue in office and will be proposed for

re-appointment in accordance with section 485 Companies Act 2006.

ON BEHALF OF THE BOARD:

H R Jackson - Director

23 January 2020

Opinion

We have audited the financial statements of PJ Colours Limited (the 'company') for the year ended

30 April 2019 which comprise the Income Statement, Other Comprehensive Income, Statement of Financial

Position, 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 30 April 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.

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 Strategic Report and 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.

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

-	the Strategic Report and the Report of the Directors have 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 Strategic Report or 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.

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.

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.

Adam Clarke BA FCA (Senior Statutory Auditor)

for and on behalf of Mitten Clarke Audit Limited

Statutory Auditors

The Glades

Festival Way

Stoke on Trent

Staffordshire

ST1 5SQ

28 January 2020

TURNOVER

4

14,319,439

12,859,192

Cost of sales

12,146,745

11,116,477

GROSS PROFIT

2,172,694

1,742,715

Distribution costs

3,469

2,519

Administrative expenses

1,272,476

1,315,418

1,275,945

1,317,937

OPERATING PROFIT

6

896,749

424,778

Interest receivable and similar income

76,208

76,731

972,957

501,509

Interest payable and similar expenses

7

105,408

71,552

PROFIT BEFORE TAXATION

867,549

429,957

Tax on profit

8

145,186

72,416

PROFIT FOR THE FINANCIAL YEAR

722,363

357,541

PROFIT FOR THE YEAR

722,363

357,541

OTHER COMPREHENSIVE INCOME

Revaluation

342,903

-

Income tax relating to other comprehensive income

(30,000

)

-

OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX

312,903

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

1,035,266

357,541

FIXED ASSETS

Tangible assets

10

529,295

263,415

CURRENT ASSETS

Stocks

11

1,994,057

2,183,287

Debtors

12

4,674,955

4,053,420

Cash at bank and in hand

177,276

312,757

6,846,288

6,549,464

CREDITORS

Amounts falling due within one year

13

3,887,841

4,066,261

NET CURRENT ASSETS

2,958,447

2,483,203

TOTAL ASSETS LESS CURRENT LIABILITIES

3,487,742

2,746,618

CREDITORS

Amounts falling due after more than one year

14

(1,258,820

)

(730,962

)

PROVISIONS FOR LIABILITIES

18

(56,000

)

(38,000

)

NET ASSETS

2,172,922

1,977,656

CAPITAL AND RESERVES

Called up share capital

19

200,000

200,000

Revaluation reserve

20

312,903

-

Retained earnings

20

1,660,019

1,777,656

SHAREHOLDERS' FUNDS

2,172,922

1,977,656

The financial statements were approved by the Board of Directors on 23 January 2020 and were signed on its behalf by:

H R Jackson - Director

Called up

share

Retained

Revaluation

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1 May 2017

200,000

1,780,115

-

1,980,115

Changes in equity

Dividends

-

(360,000

)

-

(360,000

)

Total comprehensive income

-

357,541

-

357,541

Balance at 30 April 2018

200,000

1,777,656

-

1,977,656

Changes in equity

Dividends

-

(840,000

)

-

(840,000

)

Total comprehensive income

-

722,363

312,903

1,035,266

Balance at 30 April 2019

200,000

1,660,019

312,903

2,172,922

1.	STATUTORY INFORMATION

PJ Colours 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.

2.	STATEMENT OF COMPLIANCE

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" and the Companies Act 2006.

3.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements cover the company as an individual entity, have been prepared under the

historical cost convention and are presented in Pounds Sterling (£) being the functional currency.

The financial statements have been prepared on the assumption that the company is able to carry

on business as a going concern, which the directors consider appropriate having regard to the

company's current and expected performance.

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 requirement of Section 33 Related Party Disclosures paragraph 33.7.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding

discounts, rebates, value added tax and other sales taxes.

Tangible fixed assets

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

estimated useful life.

Freehold property

-

Straight line over 35 years

Plant and machinery

-

33.33% , 20% and 10% on cost

Fixtures and fittings

-

25% on cost

During the year, the company has opted to change from the historical cost method of valuing its

freehold property to the revaluation model. This represents a change in accounting policy and has

been done as the company believes that the revaluation model more closely represents the fair

value of freehold property in the financial statements.

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for

obsolete and slow moving items.

Financial instruments

Basic financial instruments are recognised at amortised cost, except for investments in

non-convertible preference and non-puttable ordinary shares which are measured at fair value, with

changes recognised in profit or loss. Derivative financial instruments are initially recorded at cost

and thereafter at fair value with changes recognised in profit or loss.

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 statement of financial position date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed

at the statement of financial position 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 statement of financial position 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.

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.

4.

TURNOVER

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

company.

An analysis of turnover by geographical market is given below:

2019

2018

£

£

United Kingdom

9,907,459

8,829,461

Exports

4,411,980

4,029,731

14,319,439

12,859,192

5.	EMPLOYEES AND DIRECTORS

2019

2018

£

£

Wages and salaries

833,811

764,033

Social security costs

65,149

56,912

Other pension costs

102,397

100,987

1,001,357

921,932

The average number of employees during the year was as follows:

2019

2018

Directors

4

4

Employees

32

30

36

34

2019

2018

£

£

Directors' remuneration

152,154

110,191

Directors' pension contributions to money purchase schemes

97,860

89,729

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes

4

4

6.	OPERATING PROFIT

The operating profit is stated after charging/(crediting):

2019

2018

£

£

Hire of plant and machinery

29,222

38,773

Leasing of plant and machinery

141,089

146,002

Depreciation - owned assets

108,373

106,473

Auditors' remuneration

5,530

5,410

Auditors' remuneration for non audit work

6,450

6,450

Foreign exchange differences

(39,437

)

9,731

7.

INTEREST PAYABLE AND SIMILAR EXPENSES

2019

2018

£

£

Invoice discounting interest

37,550

30,177

Other loan interest

67,858

41,375

105,408

71,552

8.

TAXATION

Analysis of the tax charge

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

2019

2018

£

£

Current tax:

UK corporation tax

170,604

70,416

(Over)/Under provision

(13,418

)

-

Total current tax

157,186

70,416

Deferred tax

(12,000

)

2,000

Tax on profit

145,186

72,416

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:

2019

2018

£

£

Profit before tax

867,549

429,957

Profit multiplied by the standard rate of corporation tax in the UK of 19% (2018 - 19%)

164,834

81,692

Effects of:

Expenses not deductible for tax purposes

3,377

1,768

Adjustments to tax charge in respect of previous periods

(13,418

)

-

Depreciation of assets not available for capital allowances

-

316

Rounding

120

(113

)

Change in deferred tax rate

2,089

(100

)

Group relief

(11,816

)

(11,147

)

Total tax charge

145,186

72,416

Tax effects relating to effects of other comprehensive income

2019

Gross

Tax

Net

£

£

£

Revaluation

342,903

(30,000

)

312,903

9.

DIVIDENDS

2019

2018

£

£

Ordinary shares of £1 each

Interim

840,000

360,000