Pureprint Group Limited - Period Ending 2021-12-31
Pureprint Group Limited - Period Ending 2021-12-31
Registration number:
for the
Year Ended
Pureprint Group Limited
Contents
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Company Information |
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Directors' Report |
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Strategic Report |
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Statement of Directors' Responsibilities |
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Independent Auditor's Report |
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Profit and Loss Account |
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Balance Sheet |
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Statement of Changes in Equity |
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Notes to the Financial Statements |
Pureprint Group Limited
Company Information
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Directors |
M W Handford R Osborne R W Owers B D Smith B M Tucker |
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Company secretary |
B D Smith |
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Registered office |
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Banker |
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Auditor |
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Pureprint Group Limited
Directors' Report for the Year Ended 31 December 2021
The directors present their report and the financial statements for the year ended 31 December 2021.
Directors of the company
The directors who held office during the year were as follows:
Employment of disabled persons
Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the company continues and that the appropriate training is arranged. It is the policy of the company that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.
Employee involvement
The company's policy is to consult and discuss with employees, through unions, staff councils and at meetings, matters likely to affect employees' interests.
Information of matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the company's performance.
Future developments
The external commercial environment is expected to remain competitive going forwards, however, the directors remain confident that the company will continue to improve its current level of performance in the future and will continue to trade as a going concern.
Disclosure of information to the auditors
Each director has taken the steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.
Reappointment of auditors
Hazlewoods LLP have expressed their willingness to continue in office.
Approved by the
Director
Pureprint Group Limited
Strategic Report for the Year Ended 31 December 2021
The directors present their strategic report for the year ended 31 December 2021.
Principal activity
The principal activity of the company is the creation, management and supply of marketing and print services.
Fair review of the business
The results for the year, which are set out in the profit and loss account, show turnover of £42,880,801 (2020 -
£34,223,742). Operating profit before exceptional items was £1,717,422 (2020 - £913,099).
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2021 |
2020 |
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Turnover |
42,881 |
34,224 |
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Other operating income |
189 |
933 |
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Gross profit |
13,718 |
10,971 |
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Gross profit % (of Turnover) |
32% |
32% |
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Overheads |
12,001 |
10,058 |
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Operating profit (pre exceptional/goodwill) |
1,717 |
913 |
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EBITDA |
3,520 |
2,441 |
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EBITDA % (of Turnover) |
8% |
7% |
Whilst COVID-19 lockdowns in 2021 impacted revenues and our customers, EBITDA performance improved significantly to £3.52m (8.2% of Revenue) from £2.4m in 2020 (7.1% of Revenue). The business was agile and managed the pandemic and other market factors (including price inflation, supply chain issues, Brexit transition) to focus on providing excellent customer service, protecting our staff, and delivering results to put the business in a position of strength for the future.
During the year the business continued to invest in both technology and manufacturing capability to unlock significant efficiencies and contribute to the improvement in gross profit % despite revenues being below pre-pandemic levels.
At 31 December 2021, the company had total assets less current liabilities of £9,733,412 (2020 - £7,343,977). The directors consider the performance for the year and the financial position at the year end to be satisfactory.
Business development
In October 2021, Pureprint installed a second HP Indigo 100k Digital Press following on from the success of the first machine over the past year. This investment supports the commitment to the digital market and the growth seen in this sector. Investment in the litho area saw the acquisition of a high-specification Heidelberg XL106 ten-colour press at the end of the year, which offers superior quality and productivity to the business’s clients.
Further investments have been made throughout the business in both physical machinery and technological solutions which have helped deliver significant underlying improvements to the Gross Profit margin of the Group. Additional competitors exited the market in 2021 resulting in some significant new business wins. This has allowed the business to both diversify further per the long-term strategy, and also strengthen our leading positions in several marketplaces.
The business has continued to develop its technology products with the aim of delivering efficiencies for our clients and within our own business.
Pureprint Group Limited
Strategic Report for the Year Ended 31 December 2021
Principal risks and uncertainties
The management of the business and the execution of the Company's strategy are subject to a number of risks. The key business risks and uncertainties affecting the Company are considered to relate to competition from both national and local providers of the creation, management and supply of marketing and print services.
To mitigate this risk, the Company has continued to focus on clients and markets where the Company can add value, as well as improved procurement, productivity and product development. Staff welfare, safety and satisfaction remain core principles, especially during the continued Covid 19 pandemic. Additional measures have been put in place to align with recommendations from the UK government and health authorities as conditions have changed.
The Company’s Brexit team continues to assess the potential risks that may be caused by the outcome of the trade negotiations both directly to itself and its clients and how it may best manage these.
Section 172 Statement
The Directors believe that they have effectively implemented their duties under section 172 of the Companies Act 2006. The Company has considered the long-term strategy of the business in the strategic report and consider that this strategy will continue to deliver long term success to the business and its stakeholders.
The Group is committed to maintaining an excellent reputation and strives to achieve high standards across all areas. We are highly selective about which suppliers are used to deliver best value while maintaining an awareness of the environmental impact of the work that they do and strive to reduce their carbon footprint.
The Directors recognise the importance of wider stakeholders in delivering their strategy and achieving sustainability within the business. The main stakeholders in the Company are considered to be the employees, suppliers and customers. The Group’s anti-slavery and gender pay information can be found on our website.
In ensuring that all our stakeholders are considered as part of every decision process we believe we act fairly between all members of the Company.
Sustainability
We have reported on the emissions sources required under The Companies (Directors Report) and Limited Liability Partnerships (Energy and Carbon Report) Regulations 2018 in the immediate parent Company financial statements, East Sussex Press Limited.
Objectives and policies
The Group does not actively use financial instruments as part of its financial risk management. It is exposed to the usual credit risk and cash flow risk associated with selling on credit and manages this through credit control procedures.
Price risk, credit risk, liquidity risk and cash flow risk
In accordance with the Financial Reporting Council's 'Going Concern and Liquidity Risk: Guidance for Directors of UK Companies 2009' the directors of all companies are now required to provide disclosures regarding the adoption of the going concern basis of accounting.
The Company has considerable financial resources available and continues to trade profitably generating cash from operating activities. The Group continues to have the full financial support from its controlling Shareholder and the Business Growth Fund. The directors have prepared forecasts for the next 12 months that indicate that these trends will continue. The directors therefore have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future and has continued to adopt the going concern basis in preparing the financial statements.
Pureprint Group Limited
Strategic Report for the Year Ended 31 December 2021
Approved by the
Director
Pureprint Group Limited
Statement of Directors' Responsibilities
The directors are responsible for preparing the Directors' Report, Strategic Report 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 apply them consistently; |
• | make judgements and accounting estimates that are reasonable and prudent; |
• | state whether applicable UK Accounting Standards has been followed, subject to any material departures disclosed and explained in the financial statements; and |
• | 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.
Pureprint Group Limited
Independent Auditor's Report to the Members of Pureprint Group Limited
Opinion
We have audited the financial statements of Pureprint Group Limited (the 'company') for the year ended 31 December 2021, which comprise the Profit and Loss Account, Balance Sheet, 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 31 December 2021 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 Auditor’s 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
In auditing the financial statements, we have concluded that the directors use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Other information
The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report 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.
Pureprint Group Limited
Independent Auditor's Report to the Members of Pureprint Group Limited
Opinion on other matter prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
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the information given in the Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
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• |
the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception
In the light of our 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 and the Directors' Report.
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 6, the directors are responsible for the preparation of the financial statements and for being satisfied they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements 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.
Auditor’s 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 an auditor’s report 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.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
Pureprint Group Limited
Independent Auditor's Report to the Members of Pureprint Group Limited
We obtained an understanding of the legal and regulatory frameworks applicable to the financial statements or that had a fundamental effect on the operations of the group. We determined that the most significant laws and regulations included UK GAAP, UK Companies Act 2006, and taxation laws;
We understood how the group is complying with those legal and regulatory frameworks by making inquiries of the management, and those responsible for legal and compliance procedures. We corroborated our inquiries through our review of board minutes.
We assessed the susceptibility of the groups financial statements to material misstatement, including how fraud might occur.
Audit procedures performed by the engagement team included:
- Identifying and assessing the design effectiveness of controls management has in place to prevent and detect fraud;
- Understanding how those charged with governance considered and addressed the potential for override of controls or other inappropriate influence over the financial reporting process;
- Challenging assumptions and judgements made by management in its significant accounting estimates;
- Identifying and testing journal entries, in particular any journal entries posted with unusual characteristics.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
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 an auditor’s report 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.
For and on behalf of
Windsor House
Bayshill Road
GL50 3AT
Pureprint Group Limited
Profit and Loss Account for the Year Ended 31 December 2021
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Note |
2021 |
2020 |
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Turnover |
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Other operating income |
188,553 |
933,371 |
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Cost of sales |
( |
( |
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Gross profit |
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Distribution costs |
( |
( |
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Administrative expenses |
( |
( |
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Other operating income |
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Operating profit before exceptional expenses |
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Exceptional expenses |
( |
( |
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Interest payable and similar charges |
( |
( |
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Profit before tax |
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Taxation |
( |
( |
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Profit for the financial year |
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EBITDA |
3,519,696 |
2,441,082 |
The above results were derived from continuing operations.
The company has no other comprehensive income for the year.
Pureprint Group Limited
(Registration number: 01493898)
Balance Sheet as at 31 December 2021
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Note |
2021 |
2020 |
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Fixed assets |
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Intangible assets |
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Tangible assets |
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Investments |
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Current assets |
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Stocks |
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Debtors |
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Cash at bank and in hand |
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Creditors: Amounts falling due within one year |
( |
( |
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Net current liabilities |
( |
( |
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Total assets less current liabilities |
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Creditors: Amounts falling due after more than one year |
7,777,560 |
6,516,194 |
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Provisions for liabilities |
440,365 |
302,300 |
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Capital and reserves |
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Called up share capital |
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Profit and loss account |
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Total equity |
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Total capital, reserves and long term liabilities |
9,733,412 |
7,343,977 |
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Approved and authorised by the
Director
Pureprint Group Limited
Statement of Changes in Equity for the Year Ended 31 December 2021
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Share capital |
Profit and loss account |
Total |
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At 1 January 2021 |
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Profit for the year |
- |
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At 31 December 2021 |
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Share capital |
Profit and loss account |
Total |
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At 1 January 2020 |
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Profit for the year |
- |
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At 31 December 2020 |
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Pureprint Group Limited
Notes to the Financial Statements for the Year Ended 31 December 2021
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General information |
The company is a private company limited by share capital, incorporated in England and Wales.
The address of its registered office is:
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Accounting policies |
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.
Basis of preparation
These financial statements have been prepared using the historical cost convention except for, where disclosed in these accounting policies, certain items that are shown at fair value.
The presentational currency of the financial statements is Pounds Sterling, being the functional currency of the primary economic environment in which the company operates. Monetary amounts in these financial statements are rounded to the nearest Pound.
Summary of disclosure exemptions
The company has not presented a cash flow statement on the grounds that the company is a wholly owned subsidiary and a group cash flow statement is included in the financial statements of the parent company.
Name of parent of group
These financial statements are consolidated in the financial statements of East Sussex Press Limited.
The financial statements of East Sussex Press Limited may be obtained from Companies House.
Group accounts not prepared
Going concern
After reviewing the company's forecasts and projections, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The company therefore continues to adopt the going concern basis in preparing its financial statements.
Pureprint Group Limited
Notes to the Financial Statements for the Year Ended 31 December 2021
Significant judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources.
The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an on-going basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of revision and future periods if the revision affects both current and future periods.
Significant judgements and estimations included in the accounts relate to depreciation and a bad debt provision.
Revenue recognition
Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts and after eliminating sales within the company. The company recognises revenue when the amount of revenue can be reliably measured, it is probable that future economic benefits will flow to the entity and specific criteria have been met for each of the company's activities.
Government grants
Government grants are recognised based on the accrual model and are measured at the fair value of the asset received or receivable. Grants are classified as relating either to revenue or to assets. Grants relating to revenue are recognised in income over the period in which the related costs are recognised. Grants relating to assets are recognised over the expected useful life of the asset. Where part of a grant relating to an asset is deferred, it is recognised as deferred income. Government grants are accounted for using the revenue basis.
Tax
The tax expense for the period comprises current and deferred tax. Tax is recognised in the profit and loss account, except that a charge attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
The current tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.
Deferred tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements and on unused tax losses or tax credits in the company. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.
The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.
Tangible assets
Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
Pureprint Group Limited
Notes to the Financial Statements for the Year Ended 31 December 2021
Depreciation
Depreciation is charged so as to write off the cost of assets over their estimated useful lives, as follows:
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Asset class |
Depreciation method and rate |
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Land and buildings leasehold |
Straight line over the life of the lease |
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Plant & machinery |
10-50% straight line |
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Furniture, fittings and equipment |
10-33% straight line |
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Motor vehicles |
25% straight line and 10% reducing balance |
Intangible assets
Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the company’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each reporting period date.
Development costs are initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Amortisation
Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:
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Asset class |
Amortisation method and rate |
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Goodwill |
Straight line over 5 years |
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Internally generated software development costs |
Straight line over 5 years |
Investments
Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
Trade debtors
Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.
Trade debtors are recognised initially at the transaction price. All trade debtors are repayable within one year and hence are included at the undiscounted cost of cash expected to be received. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the debtors.
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 measure at 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.
Pureprint Group Limited
Notes to the Financial Statements for the Year Ended 31 December 2021
Trade creditors
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Trade creditors are recognised initially at the transaction price and all are repayable within one year and hence are included at the undiscounted amount of cash expected to be paid.
Borrowings
Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Profit and Loss Account over the period of the relevant borrowing.
Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.
Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
Leases
Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.
Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the Balance Sheet as a finance lease obligation.
Lease payments are apportioned between finance costs in the Profit and Loss Account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.
Share capital
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
Pureprint Group Limited
Notes to the Financial Statements for the Year Ended 31 December 2021
Financial instruments
Classification
Recognition and measurement
Impairment
A non financial asset is impaired where there is objective evidence that, as a result of one or more events that occurred after initial recognition, the estimated recoverable value of the asset has been reduced. The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use.
The recoverable amount of goodwill is derived from measurement of the present value of the future cash flows of the cash-generating units ('CGUs') of which the goodwill is a part. Any impairment loss in respect of a CGU is allocated first to the goodwill attached to that CGU, and then to other assets within that CGU on a pro-rata basis.
Where indicators exist for a decrease in impairment loss, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised. Where a reversal of impairment occurs in respect of a CGU, the reversal is applied first to the assets (other than goodwill) of the CGU on a pro-rata basis and then to any goodwill allocated to that CGU.
For financial assets carried at amortised cost, the amount of an impairment is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the financial asset’s original effective interest rate.
For financial assets carried at cost less impairment, the impairment loss is the difference between the asset’s carrying amount and the best estimate of the amount that would be received for the asset if it were to be sold at the reporting date.
Where indicators exist for a decrease in impairment loss, and the decrease can be related objectively to an event occurring after the impairment was recognised, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired financial asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised.
Pureprint Group Limited
Notes to the Financial Statements for the Year Ended 31 December 2021
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Revenue |
The analysis of the company's turnover for the year is as follows:
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2021 |
2020 |
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Turnover derived from the company's principal activity |
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The analysis of the company's turnover for the year by market is as follows:
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2021 |
2020 |
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UK |
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|
|
Europe |
|
|
|
United States of America |
2,684,469 |
1,748,784 |
|
Rest of world |
|
|
|
|
|
|
Other operating income |
The analysis of the company's other operating income for the year is as follows:
|
2021 |
2020 |
|
|
Coronavirus job retention scheme |
385,097 |
1,843,248 |
Income in relation to coronavirus job retention scheme has been split above and below gross profit by £188,553 (2020 - £933,371) and £196,544 (2020 - £909,877) respectively. This is due to income being split between direct staff and admin staff.
|
Operating profit |
Arrived at after charging:
|
2021 |
2020 |
|
|
Depreciation expense |
|
|
|
Amortisation expense |
|
|
|
Operating lease expense - property |
|
|
|
Profit on disposal of property, plant and equipment |
( |
( |
|
Auditor's remuneration - The audit of the company's annual accounts |
18,605 |
17,970 |
|
Auditors' remuneration - non audit work |
4,400 |
4,400 |
Pureprint Group Limited
Notes to the Financial Statements for the Year Ended 31 December 2021
|
Exceptional items |
|
2021 |
2020 |
|
|
Redundancy |
18,862 |
300,299 |
|
Holiday pay accrual |
52,769 |
51,737 |
|
71,631 |
352,036 |
Redundancy costs are considered to be exceptional as a result of restructuring. Further restructuring costs were incurred in the current year as a result of the Covid-19 pandemic.
In the prior year, holiday pay accruals were recognised for the first time in line with government regulations that allowed for staff to carry forward leave for a period of up to 2 years. It is the opinion of the directors that this is considered exceptional, as this cost is not considered to be recurring.
|
Interest payable and similar expenses |
|
2021 |
2020 |
|
|
Interest on bank overdrafts and borrowings |
|
|
|
Interest on obligations under finance leases and hire purchase contracts |
|
|
|
Other interest |
|
|
|
|
|
|
Staff costs |
The aggregate payroll costs (including directors' remuneration) were as follows:
|
2021 |
2020 |
|
|
Wages and salaries |
|
|
|
Social security costs |
|
|
|
Pension costs, defined contribution scheme |
|
|
|
|
|
The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:
|
2021 |
2020 |
|
|
Production |
|
|
|
Administration |
|
|
|
|
|
Pureprint Group Limited
Notes to the Financial Statements for the Year Ended 31 December 2021
|
Directors' remuneration |
The directors' remuneration for the year was as follows:
|
2021 |
2020 |
|
|
Remuneration |
|
|
|
Contributions paid to money purchase schemes |
|
|
|
301,619 |
266,489 |
During the year the number of directors who were receiving benefits and share incentives was as follows:
|
2021 |
2020 |
|
|
Accruing benefits under money purchase pension scheme |
|
|
In respect of the highest paid director:
|
2021 |
2020 |
|
|
Remuneration |
|
|
|
Company contributions to money purchase pension schemes |
- |
|
Pureprint Group Limited
Notes to the Financial Statements for the Year Ended 31 December 2021
|
Taxation |
Tax charged in the profit and loss account
|
2021 |
2020 |
|
|
Deferred taxation |
||
|
Arising from origination and reversal of timing differences |
|
|
|
Arising from changes in tax rates and laws |
|
|
|
Total deferred taxation |
|
|
The tax on profit before tax for the year is higher than the standard rate of corporation tax in the UK (2020 - higher than the standard rate of corporation tax in the UK) of
The differences are reconciled below:
|
2021 |
2020 |
|
|
Profit before tax |
|
|
|
Corporation tax at standard rate |
|
|
|
Effect of expense not deductible in determining taxable profit (tax loss) |
|
|
|
Tax (decrease)/increase from effect of capital allowances and depreciation |
( |
|
|
Deferred tax expense relating to changes in tax rates or laws |
95,463 |
24,730 |
|
Total tax charge |
|
|
Deferred tax
Deferred tax assets and liabilities
|
2021 |
Liability |
|
Accelerated capital allowances |
|
|
Short term timing differences |
( |
|
Taxable losses |
- |
|
|
|
2020 |
Liability |
|
Accelerated capital allowances |
|
|
Short term timing differences |
( |
|
Taxable losses |
( |
|
|
Pureprint Group Limited
Notes to the Financial Statements for the Year Ended 31 December 2021
|
Intangible assets |
|
Goodwill |
Internally generated software development costs |
Total |
|
|
Cost |
|||
|
At 1 January 2021 and at 31 December 2021 |
|
|
|
|
Amortisation |
|||
|
At 1 January 2021 |
|
|
|
|
Amortisation charge |
- |
|
|
|
At 31 December 2021 |
|
|
|
|
Carrying amount |
|||
|
At 31 December 2021 |
- |
|
|
|
At 31 December 2020 |
- |
|
|
|
Tangible assets |
|
Land and buildings leasehold |
Plant and machinery |
Furniture, fittings and equipment |
Motor vehicles |
Total |
|
|
Cost |
|||||
|
At 1 January 2021 |
|
|
|
|
|
|
Additions |
|
|
|
- |
|
|
Disposals |
- |
( |
- |
- |
( |
|
At 31 December 2021 |
|
|
|
|
|
|
Depreciation |
|||||
|
At 1 January 2021 |
|
|
|
|
|
|
Charge for the year |
|
|
|
- |
|
|
Eliminated on disposal |
- |
( |
- |
- |
( |
|
At 31 December 2021 |
|
|
|
|
|
|
Carrying amount |
|||||
|
At 31 December 2021 |
|
|
|
- |
|
|
At 31 December 2020 |
|
|
|
- |
|
Pureprint Group Limited
Notes to the Financial Statements for the Year Ended 31 December 2021
Assets held under finance leases and hire purchase contracts
The net carrying amount of tangible assets includes the following amounts in respect of assets held under finance leases and hire purchase contracts:
|
2021 |
2020 |
|
|
Plant and machinery |
6,217,523 |
7,318,914 |
|
Fixtures, fittings and equipment |
8,264 |
97,998 |
|
6,225,787 |
7,416,912 |
|
Investments in subsidiaries |
|
2021 |
2020 |
|
|
Investments in subsidiaries |
|
|
|
Subsidiaries |
£ |
|
Cost and carrying amount |
|
|
At 1 January 2021 and at 31 December 2021 |
|
Details of undertakings
Details of the investments (including principal place of business of unincorporated entities) in which the company holds 20% or more of the nominal value of any class of share capital are as follows:
|
Undertaking |
Registered office |
Holding |
Proportion of voting rights and shares held |
|
|
2021 |
2020 |
|||
|
Subsidiary undertakings |
||||
|
|
England and Wales |
Ordinary |
|
|
|
|
England and Wales |
Ordinary |
|
|
|
|
England and Wales |
Ordinary |
|
|
|
|
England and Wales |
Ordinary |
|
|
Pureprint Group Limited
Notes to the Financial Statements for the Year Ended 31 December 2021
|
Subsidiary undertakings |
|
Pureprint Abstract Limited The principal activity of Pureprint Abstract Limited is |
|
Imprint Creative Print Solutions Limited The principal activity of Imprint Creative Print Solutions Limited is |
|
Perfect Screen Print Limited The principal activity of Perfect Screen Print Limited is |
|
Headford Digital Limited The principal activity of Headford Digital Limited is |
|
Stocks |
|
2021 |
2020 |
|
|
Raw materials and consumables |
459,579 |
328,193 |
|
Work in progress |
824,955 |
548,363 |
|
Finished goods and goods for resale |
82,000 |
70,676 |
|
|
|
|
Debtors |
|
2021 |
2020 |
|
|
Trade debtors |
|
|
|
Amounts owed by group undertakings |
|
|
|
Other debtors |
|
|
|
Prepayments |
|
|
|
|
|
|
Creditors |
Pureprint Group Limited
Notes to the Financial Statements for the Year Ended 31 December 2021
|
Note |
2021 |
2020 |
|
|
Due within one year |
|||
|
Loans and borrowings |
|
|
|
|
Trade creditors |
|
|
|
|
Amounts due to group undertakings |
|
|
|
|
Social security and other taxes |
|
|
|
|
Other creditors |
|
|
|
|
Accrued expenses |
|
|
|
|
|
|
||
|
Due after one year |
|||
|
Loans and borrowings |
|
|
|
Loans and borrowings |
|
2021 |
2020 |
|
|
Current loans and borrowings |
||
|
Bank borrowings |
|
|
|
HP and finance lease liabilities |
|
|
|
|
|
|
|
2021 |
2020 |
|
|
Non-current loans and borrowings |
||
|
HP and finance lease liabilities |
|
|
Included within bank borrowings is £3,032,026 (2020 - £1,378,613) due to the bank in respect of invoice discounting. This amount is secured by a fixed and floating charge over the assets of the company in favour of Barclays Bank PLC.
|
Pension and other schemes |
Defined contribution pension scheme
The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £
Contributions totalling £
|
Share capital |
Allotted, called up and fully paid shares
|
2021 |
2020 |
|||
|
No. |
£ |
No. |
£ |
|
|
|
|
100,000 |
|
100,000 |
Pureprint Group Limited
Notes to the Financial Statements for the Year Ended 31 December 2021
|
Obligations under leases and hire purchase contracts |
Finance leases
The total of future minimum lease payments is as follows:
|
2021 |
2020 |
|
|
Not later than one year |
|
|
|
Later than one year and not later than five years |
|
|
|
Later than five years |
|
|
|
Less : future finance costs |
(837,226) |
(644,874) |
|
|
|
Operating leases
The total of future minimum lease payments is as follows:
|
2021 |
2020 |
|
|
Not later than one year |
|
|
|
Later than one year and not later than five years |
|
|
|
Later than five years |
|
|
|
|
|
The amount of non-cancellable operating lease payments recognised as an expense during the year was £
|
Contingent liabilities |
In the event of an exit event prior to 5 February 2023, an amount of £50,000 (2020 - £50,000) will become payable to the previous shareholder of a subsidiary.
Pureprint Group Limited
Notes to the Financial Statements for the Year Ended 31 December 2021
|
Related party transactions |
Fielden Properties Limited
During the year, the company incurred costs of £150,000 (2020 - £150,000) in relation to the lease of Beacon House from Fielden Properties Limited, a company under common control of Mark Handford. At the balance sheet date, the company owed £nil (2020 - £37,500) to Fielden Properties Limited.
Summary of transactions with key management
During the year the company paid rent of £31,000 (2020 - £31,000) to the parents of one of the directors.
Headford Digital Limited
During the year, the company made sales of £418,301 (2020 - £273,593) to and incurred costs of £88,597 (2020 - £28,997) from Headford Digital Limited, a company under common control.
|
Parent and ultimate parent undertaking |
The company's immediate parent is
The most senior parent entity producing publicly available financial statements is