Promart Manufacturing Limited - Period Ending 2021-12-31
Promart Manufacturing Limited - Period Ending 2021-12-31
Registration number:
Promart Manufacturing Limited
for the Year Ended 31 December 2021
Promart Manufacturing Limited
Contents
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Company Information |
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Balance Sheet |
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Notes to the Financial Statements |
Promart Manufacturing Limited
Company Information
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Directors |
Mr A J Davies Mrs E Davies Mr I P Hulse Mr A T McKenna |
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Company secretary |
Mr A J Davies |
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Registered office |
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Auditors |
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Promart Manufacturing Limited
(Registration number: 01751832)
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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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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( |
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Net current assets |
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Total assets less current liabilities |
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Creditors: Amounts falling due after more than one year |
( |
( |
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Provisions for liabilities |
( |
- |
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Net assets |
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Capital and reserves |
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Called up share capital |
10,000 |
10,000 |
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Revaluation reserve |
362,318 |
397,607 |
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Profit and loss account |
2,088,438 |
1,876,882 |
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Shareholders' funds |
2,460,756 |
2,284,489 |
These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.
These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime and the option not to file the Profit and Loss Account has been taken.
Approved and authorised by the
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......................................... |
Promart Manufacturing 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:
These financial statements were authorised for issue by the
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Accounting policies |
Accounting convention
The financial statements have been prepared in accordance with FRS102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" ("FRS102") and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of land and buildings. The principal accounting policies adopted are set out below.
Going concern
At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Management have also assessed the potential impact of the ongoing COVID 19 situation by considering the impact of the potential operational challenges posed, including but not restricted to, an assessment of the robustness of their supply chain and broader logistics arrangements. Management have concluded that any operational pressures caused directly by the COVID 19 situation are unlikely to have a material impact on the company.
The company has certain conditions attached to long term bank borrowings. The directors are confident that if any conditions were not met in full this would not cause any material change in terms of those borrowings as they would expect to maintain the support of their principal bankers.
The company meets its day to day working capital requirements through facilities from it's principal bankers. Based upon the continuing support of the bank the Directors' consider it appropriate to prepare the Financial Statements on the Going Concern basis. The Financial Statements, therefore, do not include any adjustments that would result from a withdrawal of the support of it's bankers.
Promart Manufacturing Limited
Notes to the Financial Statements for the Year Ended 31 December 2021
Turnover
Turnover represents amounts receivable for goods and services net of VAT and trade discounts.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
Research and development expenditure
Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights;and the intangible asset is separable from the entity.
Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful life as follows:
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Asset class |
Amortisation method and rate |
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Development costs |
10 years straight line |
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
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Asset class |
Depreciation method and rate |
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Buildings |
2% straight line |
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Plant and machinery |
15% Reducing balance |
Land is not depreciated.
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
Promart Manufacturing Limited
Notes to the Financial Statements for the Year Ended 31 December 2021
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimated of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
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.
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.
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
Promart Manufacturing Limited
Notes to the Financial Statements for the Year Ended 31 December 2021
Financial instruments
Financial instruments are recongised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
The following policies for financial instruments have been applied in the preparation of the company's financial statements:
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently caried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within on year are not amortised.
Classification of financial liabilities
Basic financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Promart Manufacturing Limited
Notes to the Financial Statements for the Year Ended 31 December 2021
Current tax
The current tax payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company's liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee's services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
Retirement benefts
The company operates a defined contribution scheme for the benefit of its employees. Contributions payable are charged to the profit and loss account in the year they are payable.
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewrds of ownership to the lessees. All other leases are classified as operating leases.
Assts held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
Promart Manufacturing Limited
Notes to the Financial Statements for the Year Ended 31 December 2021
Government grants
Government grants are recognised at the fair value of the asset received or receivable when there is reasoable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.
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Employees |
The average number of persons employed by the company (including directors) during the year, was
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Intangible assets |
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Development costs |
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Cost or valuation |
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At 1 January 2021 |
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At 31 December 2021 |
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Amortisation |
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At 1 January 2021 |
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Amortisation charge |
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At 31 December 2021 |
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Carrying amount |
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At 31 December 2021 |
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At 31 December 2020 |
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Promart Manufacturing Limited
Notes to the Financial Statements for the Year Ended 31 December 2021
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Tangible assets |
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Land and buildings |
Plant and machinery etc |
Total |
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Cost or valuation |
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At 1 January 2021 |
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At 31 December 2021 |
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Depreciation |
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At 1 January 2021 |
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Charge for the year |
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At 31 December 2021 |
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Carrying amount |
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At 31 December 2021 |
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At 31 December 2020 |
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Land and buildings with a carrying amount of £1,560,661 were revalued at 20 February 2020 by Mason Owen, independent valuers not connected with the company on the basis of market value. The valuation conforms to International Valuation Standards and was based on recent market transactions on arm's length terms for similar properties. The directors used this as a basis to value the land and buildings at 31 December 2019.
Historical cost
If revalued assets were stated on an historical cost basis rather than a fair value basis, the total amounts included would have been as follows:
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2021 |
2020 |
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Cost |
1,276,688 |
1,276,688 |
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Accumulated depreciation |
(148,078) |
(122,544) |
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Carrying value |
1,128,610 |
1,154,144 |
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Debtors |
Promart Manufacturing Limited
Notes to the Financial Statements for the Year Ended 31 December 2021
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2021 |
2020 |
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Trade debtors |
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Amounts owed by group undertakings |
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Other debtors |
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Amounts owed by group undertakings are interest free, have no fixed date of repayment and are repayable upon demand.
Promart Manufacturing Limited
Notes to the Financial Statements for the Year Ended 31 December 2021
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Creditors |
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Note |
2021 |
2020 |
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Due within one year |
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Loans and borrowings |
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Trade creditors |
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Taxation and social security |
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Other creditors |
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Note |
2021 |
2020 |
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Due after one year |
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Loans and borrowings |
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Other non-current financial liabilities |
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1,662,414 |
1,285,574 |
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Loans and borrowings |
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2021 |
2020 |
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Non-current loans and borrowings |
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Bank borrowings |
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Promart Manufacturing Limited
Notes to the Financial Statements for the Year Ended 31 December 2021
Included within bank loans is £463,900 (2020:£nil) in respect of a bank loan. The security for the bank loan is supported by fixed and floating charges over all current and future assets of the company and by a corporate guarantee between Promart Manufacturing Limited, Promart Holdings Limited and Promart Holdings (UK) Limited. This is supported by a first legal charge over the fixed assets owned by the parent and company.
The bank loan incurs interest at base plus 2% per annum and is due for repayment in 2031.
Also included in bank loans is £895,833 (2020:£1,156,051) in respect of a Corovonavirus Business Interruption loan. The security for this loan is supported by fixed and floating charges over all current and future assets of the company and by a corporate guarantee between Promart Manufacturing Limited, Promart Holdings Limited and Promart Holdings (UK) Limited. This is supported by a first legal charge over fixed assets owned by the parent and company.
This loan incurs interest at 2.79% per annum and is due for repayment in 2026.
Also included in bank loans is £212,500 (2020:Nil) in respect of a second Coronavirus Business Interuption loan. The security for this loan is supported by fixed and floating charges over all current and future assets of the company and by a corporate guarantee between Promart Manufacturing Limited, Promart Holdings Limited and Promart Holdings (UK) Limited. This is supported by a first legal charge over fixed assets owned by the parent and company.
This loan incurs interest at base plus 2.11% and was due for repayment in 2027, but was repaid in full on 30 March 2022.
Promart Manufacturing Limited
Notes to the Financial Statements for the Year Ended 31 December 2021
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2021 |
2020 |
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Current loans and borrowings |
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Bank borrowings |
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Included within bank loans is £50,379 (2020:£564.055) in respect of a bank loan. The security for the bank loan is supported by fixed and floating charges over all current and future assets of the company and by a corporate guarantee between Promart Manufacturing Limited, Promart Holdings Limited and Promart Holdings (UK) Limited. This is supported by a first legal charge over the fixed assets owned by the parent and company.
The bank loan incurs interest at base plus 2% per annum and is due for repayment in 2031.
Also included in bank loans is £250,000 (2020:£93,949) in respect of a Corovonavirus Business Interruption loan. The security for this loan is supported by fixed and floating charges over all current and future assets of the company and by a corporate guarantee between Promart Manufacturing Limited, Promart Holdings Limited and Promart Holdings (UK) Limited. This is supported by a first legal charge over fixed assets owned by the parent and company.
This loan incurs interest at 2.79% per annum and is due for repayment in 2026.
Also included in bank loans is £37,500 (2020:Nil) in respect of a second Coronavirus Business Interuption loan. The security for this loan is supported by fixed and floating charges over all current and future assets of the company and by a corporate guarantee between Promart Manufacturing Limited, Promart Holdings Limited and Promart Holdings (UK) Limited. This is supported by a first legal charge over fixed assets owned by the parent and company.
This loan incurs interest at base plus 2.11% and was due for repayment in 2027, but was repaid in full on 30 March 2022.
Included in the loans and borrowings are the following amounts due after more than five years:
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2021 |
2020 |
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Due after more than five years |
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After more than five years by instalments |
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Deferred taxation |
A provision of £114,326 (2020 - £0) has been recognised for deferred taxation which arises on accelerated capital allowances and other timing differences.
The timing differences are expected to unwind in periods when the tax rate, which had been substantively enacted at the year end, is 25%. In the mini budget statement held on 23 September 2022, the Chancellor of the Exchequer announced that the increase in the corporation tax rate to 25% will be reversed and the corporation tax rate will continue to be 19%. If the rate of 19% had been substantively enacted at the year end, the deferred tax provision would reduce by £27,438 to £86,888.
Promart Manufacturing Limited
Notes to the Financial Statements for the Year Ended 31 December 2021
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Audit report information |
As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:
The auditor's report was
The senior statutory auditor was
The auditor was Additions Accountants Limited.
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Related party transactions |
The company has taken advantage of the reduced disclosure exemption available under Financial Reporting Standard 102 relating to the disclosure of related party transactions between wholly owned group companies.
No other transactions with related parties were undertaken such as are required to be disclosed Financial Reporting Standard 102.
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Parent company |
The company is a wholly owned subsidiary of Promart Holdings Limited and its ultimate parent company is Promart Holdings (UK) Limited.
The smallest and largest group into which the result of this entity are consolidated is Promart Holdings (UK) Limited. The company is registered at Unit 2b Caddick Road, Knowsley Business Park, Prescot, L34 9HP. The consolidated accounts are also available from this address.
The ulitmate controlling party is Mr A Davies.