The Premier Group (Coventry) Limited - Limited company accounts 20.1

REGISTERED NUMBER: 05125384 (England and Wales)

for

Page

Company Information  

1

Group Strategic Report  

2

Report of the Director  

4

Report of the Independent Auditors  

6

Consolidated Income Statement  

9

Consolidated Other Comprehensive Income  

10

Consolidated Balance Sheet  

11

Company Balance Sheet  

12

Consolidated Statement of Changes in Equity  

13

Company Statement of Changes in Equity  

14

Consolidated Cash Flow Statement  

15

Notes to the Consolidated Cash Flow Statement  

16

Notes to the Consolidated Financial Statements  

17

DIRECTOR:

D P Meagher

REGISTERED OFFICE:

Leofric House

Binley Road

Coventry

CV3 1JN

REGISTERED NUMBER:

05125384 (England and Wales)

SENIOR STATUTORY AUDITOR:

C A Christou FCCA

AUDITORS:

Leigh Christou Ltd

Chartered Certified Accountants and

Statutory Auditor

Leofric House

Binley Road

Coventry

CV3 1JN

The director presents her strategic report of the company and the group for the year ended 31 March 2019.

PRINCIPAL ACTIVITIES

The principal activities of the Group in the year under review were those of bespoke manufacturing of low volume production

panels, assemblies and prototypes spanning the international automotive, aeronautical, rail and defence industries

REVIEW OF BUSINESS

The Group delivered a year of consolidation during the year ended 31 March 2019. The Group has grown sales during the year.

Unfortunately, the company has been unable to command sufficient profit margins to cover the extensive cost base, and accordingly

has made a loss for the year.

The group continued its diversification into other markets, to complement its existing automotive, rail and aerospace markets,

securing substantial new business for this financial year and ahead into the future within its existing customer portfolio as well as

bringing on board substantial new blue chip customers.

During the year, the group invested heavily in developing the strength of it senior management team as well in its cutting edge

manufacturing and prototype facility.

The investment in the group facilities and in particular new technologies and research continues to remain for the group and it is

perceived this will open up further significant capacity to meet planned growth in demand from existing and potential new

customers and will allow the group to expand into further new and diverse markets.

The group has grown sales during the year. Unfortunately, the company has been unable to command sufficient profit margins to

cover the extensive cost base, and accordingly has made a loss before taxation for the year of £3,435,861.

As set out in note 26, the group took radical action to address the loss situation. In the subsequent year, up to the outbreak of

Covid-19, the company had generated significant profits.

PRINCIPAL RISKS AND UNCERTAINTIES

The Group conducts its business activities in an increasingly competitive market. Therefore, the director has considered and taken

all reasonable steps to mitigate the principal risks and uncertainties relevant to the business.

A material uncertainty related to going concern exists, as set out in note 26. Following the UK shutdown on 23 March 2020 caused

by Covid-19, the group have experienced a significant downturn in sales. The group have taken action to mitigate the impact on the

business by furloughing staff, negotiating with creditors including landlords and providers of finance.

The group will be dependent on future sales to customers, the timing of which are currently uncertain. Further, management are

unable to make long term strategic plans. Deferment arrangements are generally short-term in nature, and lending facilities will

continue to fall due for renewal. The ultimate controlling party is assessing the capital requirements of the group, and will provide

further support to the group where appropriate.

KEY PERFORMANCE INDICATORS

The Group deems the most relevant key performance indicator to be Turnover and Operating profit/loss

Turnover:

Turnover for the year was £13.9m (2018 £11.6m) an increase on 2018 of 20%

Operating Loss:

Operating loss for the year was £(3.3m) (2018 - £(0.7m))

BUSINESS STRATEGY

The group is attracting expressions of interest from multinational companies within the automotive industry for significant low

volume production work.

The Group's strategy has been affected by Covid-19 (see below), but management is working to adapt to the current environment.

FUTURE DEVELOPMENTS

Following the balance sheet date the Group has signed a lease on substantial new premises which will enable the group to

consolidate operations on a single site.

The director hopes that following the easing of Covid-19 restrictions, the automotive industry will gear up operations rapidly, and

place orders with the company.

FINANCIAL INSTRUMENTS

The group has normal levels of exposure to price, credit, liquidity and cash flow risks arising from trading activities which are

conducted in sterling, euros and US dollar. The company does not enter into any hedging contracts.

ON BEHALF OF THE BOARD:

D P Meagher - Director

2 June 2020

The director presents his report with the financial statements of the company and the group for the year ended 31 March 2019.

DIVIDENDS

No dividends will be distributed for the year ended 31 March 2019.

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

D P Meagher has held office during the whole of the period from 1 April 2018 to the date of this report.

Other changes in directors holding office are as follows:

Miss N Meagher and A Meagher ceased to be directors after 31 March 2019 but prior to the date of this report.

POLITICAL DONATIONS AND EXPENDITURE

The group made no political donations during 2019 or the prior year

DISCLOSURE IN THE STRATEGIC REPORT

The company has chosen in accordance with Companies act 2006, s.414C(11) to set out in the Company's strategic report

information required by medium sized Companies and Groups regulations 2008, sch 7 to be contained in the directors report. It has

done so in respect of future developments, principle risks and uncertainties and financial instruments.

STATEMENT OF DIRECTOR'S RESPONSIBILITIES

The director is responsible for preparing the Group Strategic Report, the Report of the Director and the financial statements in

accordance with applicable law and regulations.

Company law requires the director to prepare financial statements for each financial year.  Under that law the director has elected to

prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom

Accounting Standards and applicable law), including Financial Reporting Standard 102 'The Financial Reporting Standard

applicable in the UK and Republic of Ireland'. Under company law the director must not approve the financial statements unless she

is satisfied that they give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the

group for that period.  In preparing these financial statements, the director is 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 director is responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the

group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and

enable her to ensure that the financial statements comply with the Companies Act 2006. She is also responsible for safeguarding the

assets of the company and the group 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 director is aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of

which the group's auditors are unaware, and she has taken all the steps that she ought to have taken as a director in order to make

herself aware of any relevant audit information and to establish that the group's auditors are aware of that information.

ON BEHALF OF THE BOARD:

D P Meagher - Director

2 June 2020

Disclaimer of opinion

Basis for disclaimer of opinion

As noted below, there is a material uncertainty regarding going concern. Despite management representations, there is insufficient

evidence to support management's determination that the financial statements should be prepared on a going concern basis. As such,

we disclaim our opinion.

We were not appointed as auditors until after 31 March 2019 and thus did not observe the counting of physical inventories at the

beginning and end of the year. We were unable to satisfy ourselves by alternative means concerning the inventory qualities held at

31 March 2019, which are included in the balance sheet at £226,153, by using other audit procedures. Consequently we were unable

to determine whether any adjustment to this amount was necessary.

The financial statements for the year ended 31 March 2018 were not audited. Since opening inventories affect the determination of

the results of operations, we were unable to determine whether adjustments to the results of operations and opening retaining

earnings might be necessary for 2019.

Material uncertainty related 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 director's use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or

-

the director has not disclosed in the financial statements any identified material uncertainties that may cast significant doubt

about the group'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.

We drawn attention to note 2 of the financial statements, which refer to material uncertainty in relation to going concern, and to note

26 which refer to post balance sheet events. Per the Income Statement, the group made a loss before tax for the year ended 31

March 2019 of £3,435,861, which gave rise to the events set out per note 26. As stated in note 26, these events or conditions, along

with other matters set forth in note 26, indicate that a material uncertainty exists that may case significant doubt on the ability of the

company and group to continue as a going concern.

Due to the lack of credit facilities being in place for a period exceeding 12 months, there is insufficient evidence to support

management's determination that the financial statements should be prepared on a going concern basis. As such, we disclaim our

audit opinion.

Other information

The director is responsible for the other information. The other information comprises the information in the Group Strategic Report

and the Report of the Director, 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.

The comparative figures are unaudited.

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 Group Strategic Report and the Report of the Director for the financial year for which the financial

statements are prepared is consistent with the financial statements; and

-

the Group Strategic Report and the Report of the Director 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 group and the parent company and its environment obtained in the course of

the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Director.

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 by the parent company, or returns adequate for our audit have not been received

from branches not visited by us; or

-

the parent company financial statements are not in agreement with the accounting records and returns; or

-

certain disclosures of director's remuneration specified by law are not made; or

-

we have not received all the information and explanations we require for our audit.

Responsibilities of director

As explained more fully in the Statement of Director's Responsibilities set out on page four, the director is 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

director determines 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 director is responsible for assessing the group's and the parent 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 director either intends to liquidate the group or the parent company or to cease operations, or has no realistic

alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

Our responsibility is to conduct an audit of the financial statements of the company and group in accordance with International

Standards on Auditing (UK) and to issue an auditor's report.

However, because of the matter described in the basis for disclaimer of opinion section of our report, we were not able to obtain

sufficient appropriate audit evidence to provide a basis for an audit opinion on these financial statements.

We are independent of the company and group in accordance with ethical requirements that are relevant to our audit of the financial

statements in the UK, including the FRC's Ethical Standard to the financial statements, and we have fulfilled our other ethical

responsibilities in accordance with these requirements.

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.

C A Christou FCCA (Senior Statutory Auditor)

for and on behalf of Leigh Christou Ltd

Chartered Certified Accountants and

Statutory Auditor

Leofric House

Binley Road

Coventry

CV3 1JN

2 June 2020

TURNOVER

3

13,948,835

11,604,763

Cost of sales

11,940,851

8,104,776

GROSS PROFIT

2,007,984

3,499,987

Distribution costs

36,640

34,155

Administrative expenses

5,613,863

4,456,805

5,650,503

4,490,960

(3,642,519

)

(990,973

)

Other operating income

383,075

265,264

OPERATING LOSS

5

(3,259,444

)

(725,709

)

Interest receivable and similar income

6,765

13,413

(3,252,679

)

(712,296

)

Interest payable and similar expenses

6

183,182

152,509

LOSS BEFORE TAXATION

(3,435,861

)

(864,805

)

Tax on loss

7

(328,796

)

(89,967

)

LOSS FOR THE FINANCIAL YEAR

(3,107,065

)

(774,838

)

Loss attributable to:

Owners of the parent

(3,107,065

)

(774,838

)

LOSS FOR THE YEAR

(3,107,065

)

(774,838

)

OTHER COMPREHENSIVE INCOME  

Movements in respect of revaluations

338,980

-

Income tax relating to other comprehensive

income

-

-

OTHER COMPREHENSIVE INCOME FOR

THE YEAR, NET OF INCOME TAX

338,980

-

TOTAL COMPREHENSIVE INCOME FOR

THE YEAR

(2,768,085

)

(774,838

)

Total comprehensive income attributable to:

Owners of the parent

(2,768,085

)

(774,838

)

FIXED ASSETS

Intangible assets

10

408,424

657,749

Tangible assets

11

8,529,612

8,896,863

Investments

12

-

-

Investment property

13

1,120,000

745,000

10,058,036

10,299,612

CURRENT ASSETS

Stocks

14

226,153

729,157

Debtors

15

4,222,133

4,803,072

Cash at bank and in hand

188,524

203,448

4,636,810

5,735,677

CREDITORS

Amounts falling due within one year

16

9,011,954

6,566,813

NET CURRENT LIABILITIES

(4,375,144

)

(831,136

)

TOTAL ASSETS LESS CURRENT

LIABILITIES

5,682,892

9,468,476

CREDITORS

Amounts falling due after more than one year

17

(1,821,289

)

(2,420,023

)

PROVISIONS FOR LIABILITIES

21

-

(418,765

)

NET ASSETS

3,861,603

6,629,688

CAPITAL AND RESERVES

Called up share capital

22

157,010

157,010

Revaluation reserve

23

1,036,955

697,975

Retained earnings

23

2,667,638

5,774,703

SHAREHOLDERS' FUNDS

3,861,603

6,629,688

The financial statements were approved by the director and authorised for issue on 2 June 2020 and were signed by:

D P Meagher - Director

FIXED ASSETS

Intangible assets

10

-

-

Tangible assets

11

2,006,125

1,914,339

Investments

12

426,854

426,854

Investment property

13

1,120,000

745,000

3,552,979

3,086,193

CURRENT ASSETS

Debtors

15

178,499

15,558

Cash at bank

6,241

33,181

184,740

48,739

CREDITORS

Amounts falling due within one year

16

2,279,394

1,490,592

NET CURRENT LIABILITIES

(2,094,654

)

(1,441,853

)

TOTAL ASSETS LESS CURRENT

LIABILITIES

1,458,325

1,644,340

CREDITORS

Amounts falling due after more than one year

17

(968,817

)

(1,059,300

)

PROVISIONS FOR LIABILITIES

21

-

(58,226

)

NET ASSETS

489,508

526,814

CAPITAL AND RESERVES

Called up share capital

22

157,010

157,010

Revaluation reserve

23

607,906

232,906

Retained earnings

23

(275,408

)

136,898

SHAREHOLDERS' FUNDS

489,508

526,814

Company's loss for the financial year

(412,306

)

(27,769

)

The financial statements were approved by the director and authorised for issue on 2 June 2020 and were signed by:

D P Meagher - Director