Premier 1983 Limited - Limited company accounts 20.1

REGISTERED NUMBER: 06421317 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2020

FOR

PREMIER 1983 LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

4

Statement of Comprehensive Income

6

Statement of Financial Position

7

Statement of Changes in Equity

8

Statement of Cash Flows

9

Notes to the Statement of Cash Flows

10

Notes to the Financial Statements

11

DIRECTORS:

H M Byrne

Mrs T S Kintas

K A McCreesh BA(Hons) ACA

Miss K J Ord

SECRETARY:

Mrs T S Kintas

REGISTERED OFFICE:

Premier Business Park

Dencora Way

Luton

Bedfordshire

LU3 3HP

REGISTERED NUMBER:

06421317 (England and Wales)

AUDITORS:

ECL Howard Watson Smith LLP

Chartered Accountants

& Statutory Auditors

ECL House

Lake Street

Leighton Buzzard

Bedfordshire

LU7 1RT

The directors present their strategic report for the year ended 31 March 2020.

REVIEW OF BUSINESS

This represents the twelfth year of trading for the company, following the incorporation in 2008 of the business founded in 1983 by a director, Mr H M Byrne, which traded successfully under the name of Premier Computer Supplies and subsequently rebranded as Form I T Solutions. The directors are pleased with the trading result for the year which was achieved in continuing difficult market conditions.

The company achieved a profit after tax of £791,691 which has been added to reserves, representing an increase of 15.11% in the net assets of the company over the year. The directors consider that the financial position of the company remains strong and that the company is well placed to take advantage as market conditions improve.

PRINCIPAL RISKS AND UNCERTAINTIES

The company's activities are in the fields of information technology and ancillary services. The company sells goods and services to a large number of industrial, commercial, government and private customers. The loss of any major customer is seen as a potential risk, but the directors are confident that, in the light of the company's strong marketing team, any lost sales would soon be replaced.

The company is not exposed to significant warranty risks as most products are sold with the manufacturer's warranty.

Where it is practicable and cost-effective to do so, the company insures against normal commercial risks, notably in the areas of public liability and employer's liability.

The risks to which the company is exposed are continually monitored by the directors, and steps are taken to mitigate and manage those risks where it is considered reasonable and practicable to do so.

The departure of the United Kingdom from the European Union has not had any significant effect on the company's business.

The Covid-19 global pandemic has necessitated significant changes in the company's operating procedures to minimise the health risks to the company's staff, suppliers and customers. The company's staff have responded well to these changes and the directors consider that trading results will not be significantly affected in the long term.

KEY PERFORMANCE INDICATORS

Turnover:

2018 - £13.27m

2019 - £16.12m

2020 - £16.06m

Profit after taxation:

2018 - £525,894

2019 - £524,668

2020 - £791,691

ON BEHALF OF THE BOARD:

H M Byrne - Director

29 March 2021

The directors present their report with the financial statements of the company for the year ended 31 March 2020.

DIVIDENDS

No dividends will be distributed for the year ended 31 March 2020.

RESEARCH AND DEVELOPMENT

The company does not engage in research and development activities.

FUTURE DEVELOPMENTS

The company has dealt well with the changes imposed by the Covid-19 pandemic and the directors are confident that the company can continue to build on its earlier successes once trading conditions return to normal.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 April 2019 to the date of this report.

H M Byrne

Mrs T S Kintas

K A McCreesh BA(Hons) ACA

Miss K J Ord

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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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.

ON BEHALF OF THE BOARD:

H M Byrne - Director

29 March 2021

Opinion

We have audited the financial statements of Premier 1983 Limited (the 'company') for the year ended 31 March 2020 which comprise the Statement of Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity, Statement of Cash Flows and Notes to the Statement of Cash Flows, 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 March 2020 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 three, 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.

Martin Wright FCA MAE (Senior Statutory Auditor)

for and on behalf of ECL Howard Watson Smith LLP

Chartered Accountants

& Statutory Auditors

ECL House

Lake Street

Leighton Buzzard

Bedfordshire

LU7 1RT

29 March 2021

TURNOVER

4

16,061,582

16,119,217

Cost of sales

12,478,810

12,839,773

GROSS PROFIT

3,582,772

3,279,444

Administrative expenses

2,618,640

2,649,799

964,132

629,645

Other operating income

7,000

25,000

OPERATING PROFIT

6

971,132

654,645

Interest receivable and similar income

93,469

81,601

1,064,601

736,246

Interest payable and similar expenses

7

37,073

37,850

PROFIT BEFORE TAXATION

1,027,528

698,396

Tax on profit

8

235,837

173,728

PROFIT FOR THE FINANCIAL YEAR

791,691

524,668

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

791,691

524,668

FIXED ASSETS

Intangible assets

9

1,672,000

1,881,000

Tangible assets

10

63,539

81,834

1,735,539

1,962,834

CURRENT ASSETS

Stocks

11

259,355

219,037

Debtors: amounts falling due within one year

12

4,046,125

3,299,147

Debtors: amounts falling due after more than one year

12

1,543,765

1,863,480

Cash at bank and in hand

2,113,602

1,873,495

7,962,847

7,255,159

CREDITORS

Amounts falling due within one year

13

2,495,924

2,712,021

NET CURRENT ASSETS

5,466,923

4,543,138

TOTAL ASSETS LESS CURRENT LIABILITIES

7,202,462

6,505,972

CREDITORS

Amounts falling due after more than one year

14

(1,168,913

)

(1,261,492

)

PROVISIONS FOR LIABILITIES

17

(821

)

(3,443

)

NET ASSETS

6,032,728

5,241,037

CAPITAL AND RESERVES

Called up share capital

18

500,000

500,000

Retained earnings

19

5,532,728

4,741,037

SHAREHOLDERS' FUNDS

6,032,728

5,241,037

The financial statements were approved by the Board of Directors and authorised for issue on 29 March 2021 and were signed on its behalf by:

H M Byrne - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 April 2018

500,000

4,216,369

4,716,369

Changes in equity

Total comprehensive income

-

524,668

524,668

Balance at 31 March 2019

500,000

4,741,037

5,241,037

Changes in equity

Total comprehensive income

-

791,691

791,691

Balance at 31 March 2020

500,000

5,532,728

6,032,728

Cash flows from operating activities

Cash generated from operations

1

1,558,618

72,029

Interest paid

(37,073

)

(37,850

)

Tax paid

(175,619

)

(174,651

)

Net cash from operating activities

1,345,926

(140,472

)

Cash flows from investing activities

Sale of tangible fixed assets

-

1,900

Interest received

93,469

81,601

Net cash from investing activities

93,469

83,501

Cash flows from financing activities

Loan repayments in year

(81,703

)

(80,857

)

Amount introduced by directors

-

70,344

Amount withdrawn by directors

(1,117,585

)

-

Net cash from financing activities

(1,199,288

)

(10,513

)

Increase/(decrease) in cash and cash equivalents

240,107

(67,484

)

Cash and cash equivalents at beginning of year

2

1,873,495

1,940,979

Cash and cash equivalents at end of year

2

2,113,602

1,873,495

1.	RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

31.3.20

31.3.19

£

£

Profit before taxation

1,027,528

698,396

Depreciation charges

227,295

232,789

Profit on disposal of fixed assets

-

(976

)

Finance costs

37,073

37,850

Finance income

(93,469

)

(81,601

)

1,198,427

886,458

Increase in stocks

(40,318

)

(26,176

)

Decrease/(increase) in trade and other debtors

599,046

(1,279,795

)

(Decrease)/increase in trade and other creditors

(198,537

)

491,542

Cash generated from operations

1,558,618

72,029

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts:

Year ended 31 March 2020

31.3.20

1.4.19

£

£

Cash and cash equivalents

2,113,602

1,873,495

Year ended 31 March 2019

31.3.19

1.4.18

£

£

Cash and cash equivalents

1,873,495

1,940,979

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.4.19

Cash flow

At 31.3.20

£

£

£

Net cash

Cash at bank and in hand

1,873,495

240,107

2,113,602

1,873,495

240,107

2,113,602

Debt

Debts falling due within 1 year

(81,009

)

(10,876

)

(91,885

)

Debts falling due after 1 year

(1,261,492

)

92,579

(1,168,913

)

(1,342,501

)

81,703

(1,260,798

)

Total

530,994

321,810

852,804

1.	STATUTORY INFORMATION

Premier 1983 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.	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 have been prepared under the historical cost convention.

Turnover

The company's turnover represents the value, excluding value added tax, of goods and services supplied to customers during the year. A sale is recognised when goods and services have been delivered and future economic benefits are probable. Revenue is measured at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, net of discounts and VAT.

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.

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

-

20% on reducing balance

Office equipment

-

15% on reducing balance

Motor vehicles

-

25% on reducing balance

Stocks

Stocks are valued at the lower of cost, calculated on a first-in first-out basis, and net realisable value, after making due allowance for obsolete and slow moving items.

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.

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.

Goodwill

Goodwill, being the amount paid in connection with the acquisition of the business, is being amortised evenly over its estimated useful life of 20 years.

Debtors and creditors receivable/payable within one year

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the income statement in administrative expenses.

Tax

Current tax represents the amount of tax payable or receivable in respect of the taxable profit (or loss) for the current or past reporting periods. It is measured at the amount expected to be paid or recovered using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax represents the future tax consequences of transactions and events recognised in the financial statements of current and previous periods. it is recognised in respect of all timing differences, with certain exceptions. Timing differences are differences between taxable profits and total comprehensive income as stated in the financial statements that arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in the financial statements. 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.

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date that are expected to apply to the reversal of timing differences. Deferred tax on non-depreciable tangible fixed assets and investment properties is measured using the rates and allowances that apply to the sale of the asset.

4.

TURNOVER

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

An analysis of turnover by class of business is given below:

31.3.20

31.3.19

£

£

Hardware

11,932,072

12,720,439

Software

1,867,382

1,609,665

Other

2,262,128

1,789,113

16,061,582

16,119,217

5.	EMPLOYEES AND DIRECTORS

31.3.20

31.3.19

£

£

Wages and salaries

1,363,213

1,350,984

Social security costs

137,186

131,331

Other pension costs

106,216

95,128

1,606,615

1,577,443

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

31.3.20

31.3.19

Directors

4

4

Sales

5

8

Admin

28

26

37

38

31.3.20

31.3.19

£

£

Directors' remuneration

369,906

370,168

Directors' pension contributions to money purchase schemes

66,995

57,530

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

Money purchase schemes

3

3

Information regarding the highest paid director is as follows:

31.3.20

31.3.19

£

£

Emoluments etc

217,006

225,857

Pension contributions to money purchase schemes

33,013

23,245

6.	OPERATING PROFIT

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

31.3.20

31.3.19

£

£

Depreciation - owned assets

18,295

23,789

Profit on disposal of fixed assets

-

(976

)

Goodwill amortisation

209,000

209,000

Auditors' remuneration

12,317

11,963

Inventory charged as an expense

12,478,810

12,839,773

7.

INTEREST PAYABLE AND SIMILAR EXPENSES

31.3.20

31.3.19

£

£

Bank interest

37,004

37,850

Other interest payable

69

-

37,073

37,850

8.

TAXATION

Analysis of the tax charge

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

31.3.20

31.3.19

£

£

Current tax:

UK corporation tax

238,459

176,920

Deferred tax

(2,622

)

(3,192

)

Tax on profit

235,837

173,728

UK corporation tax has been charged at 19% (2019 - 19%).

Reconciliation of total tax charge included in profit and loss

The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

31.3.20

31.3.19

£

£

Profit before tax

1,027,528

698,396

Profit multiplied by the standard rate of corporation tax in the UK of 19% (2019 - 19%)

195,230

132,695

Effects of:

Expenses not deductible for tax purposes

897

1,323

Amortisation of goodwill not deductible for tax purposes

39,710

39,710

Total tax charge

235,837

173,728

9.	INTANGIBLE FIXED ASSETS

Goodwill

£

COST

At 1 April 2019

and 31 March 2020

4,180,000

AMORTISATION

At 1 April 2019

2,299,000

Amortisation for year

209,000

At 31 March 2020

2,508,000

NET BOOK VALUE

At 31 March 2020

1,672,000

At 31 March 2019

1,881,000

10.	TANGIBLE FIXED ASSETS

Plant and

Office

Motor

machinery

equipment

vehicles

Totals

£

£

£

£

COST

At 1 April 2019

and 31 March 2020

62,248

62,110

179,663

304,021

DEPRECIATION

At 1 April 2019

43,592

49,814

128,781

222,187

Charge for year

3,731

1,844

12,720

18,295

At 31 March 2020

47,323

51,658

141,501

240,482

NET BOOK VALUE

At 31 March 2020

14,925

10,452

38,162

63,539

At 31 March 2019

18,656

12,296

50,882

81,834