ACCOUNTS - Final Accounts
ACCOUNTS - Final Accounts
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Registered number:
FOR THE YEAR ENDED 31 AUGUST 2023
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COMPANY INFORMATION
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CONTENTS
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GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 AUGUST 2023
The directors present their strategic report for the company for the year ended 31 August 2023.
The results for the UK group show a pre-tax profit of £3,881,690 (2022 - pre-tax profit £3,099,632) for the year and sales of £67,619,785 (2022 - £53,523,891). The underlying pre-tax profit of £3,881,690 reflects an improvement in the results that belies the problems associated with BREXIT.
The results reflect the increased economic activity resurgence following the pandemic and also the continuing rationalisation programme to ensure the business continues to remain resilient and agile. The group has cash and cash equivalents at the end of the year of £2,632,358 (2022 - £5,671,060) as a result of the cash outflow of £3,038,702 during the year (2022 - cash outflow of £449,607). The group continues to grow its business and is fully supported by its parent undertaking PEI/Genesis, Inc. by deferring (£57,665) (2022 - £136,431) for repayment until 2023. Total assets exceed current liabilities by £23,415,799 (2022 - £20,626,775) maintaining liquidity to the group to combat current trading conditions and facilitate further expansion and growth into UK and European markets.
The connector market is extremely competitive and the increase in sales is a testament to the group's employees, strategy and business practices and processes. Economic conditions, not least caused by BREXIT, during the past year were difficult with significant pressure on profit margins.
The group differentiates itself from its competitors by hiring and retaining experienced and talented employees, by maintaining a large inventory of diverse components that enables it to assemble and deliver products to more customers more quickly than its competitors, by providing exceptional customer service, and by operating in diverse geographic markets.
The group's overriding objective is to achieve attractive and sustainable rates of growth and returns through organic growth and by acquisition should the appropriate opportunity arise.
The key elements for sustained growth are: • investment in the appropriate mix and amount of inventory • quick delivery and outstanding customer service. • motivated and experienced sales and operations teams • continuous employee training and development The group carries a broad product range and works closely with such manufacturers as ITT Cannon and Amphenol. The inventory levels are significant and are required to ensure prompt delivery. Despite the difficult economic climate during the past year, the company invested in new inventory lines and expanded its operations outside the UK. The group continues to invest in new technology, infrastructure and business practices to ensure its success. The directors recognise that employees play a significant role in the success of the company and they continually seek to recruit and retain the best employees in order to provide outstanding customer service. Employee training also is a key determinant in the development of the group and is focussed on issues such as: health and safety, customer service, information management, product knowledge, regulatory requirement and inventory handling.
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GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
The management of the business and the execution of the group's strategy are subject to a number of risks.
Risks are formally reviewed by the board of directors and appropriate processes put in place to monitor and mitigate them. If more than one event occurs, it is possible that the overall effect of such events would compound the possible adverse effects on the company. The key business risks affecting the company are set out below. BREXIT The potential implications of the UK’s exit from the European Union are significant and include: • Operational complexity and increased cost due to restriction on the movement of goods arising from stricter border controls. • Import and export duties. • Additional costs passed through from third party suppliers. Inflation and recession The continuing economic pressure being created by inflation is likely to impact the group’s ability to maintain profit margins: • The cost-of-living crisis has been addressed with a significant increase in remuneration for employees that will reduce margins. • Cost of goods have increased due to supplier prices increase being pushed through on a quarterly or semi-annual basis. • Operating costs, in particular energy consumption, have been affected by the increased cost in the energy markets. • Customers may reduce spending and thus lead to a reduction in turnover. Conversely, in times of inflation, sales may increase temporarily as customers stockpile inventory to limit exposure to price increases and the group has been able to pass along some price increases to its customers. However, in the continuing inflationary trend, combined by aggressive action by the UK and European central banks to raise interest rates to dampen inflation, sales will generally decline if the growth in European economies stalls. The Directors are confident that the business is well placed to weather the economic uncertainty. COVID 19 The resurgence of the COVID 19 pandemic and another lockdown could have a further adverse impact on the group. This may result in a decrease in sales orders and also affect the supply chain as has already been experienced in 2022 and 2021. In order to mitigate this risk, the company has made a COVID secure workplace so that production can continue. Competition The group operates in a highly competitive market particularly around price and service. This results not only in downward pressure on margins but also the risk of not meeting customers' expectations. In order to mitigate this risk, the company's sales and support teams continually monitor prices and customer satisfaction. Employee skills and retention The group's performance depends significantly on its general manager, sales staff and other key employees. The resignation of these individuals and the inability to recruit people with the right experience and skills from the local community could adversely impact the company's results. To mitigate these issues, the board of directors has implemented programmes and schemes to retain such key individuals including an ongoing training programme and a reward scheme.
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GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
The group has made significant progress on meeting the company's overriding objective (see Strategy). The group monitors the overall progress and the individual strategic elements by reference to the following KPIs.
Performance together with historical data is set out below: Growth in sales Year on year sales growth expressed as a percentage. The increase in sales for 2023 is due to the resurgent economic activity after the pandemic. Growth in sales for 2023 is 26.3% compared with a increase in sales of 8.05% for 2022. Gross profit Gross profit is the ratio of profit on sale of products, expressed as a percentage. Gross profit percentage for 2023 is 24.90% compared with 25.27% for 2022. Inventory days This is an expression of how many days a unit of stock is held prior to sale. Inventory days for 2023 is 144 compared with 129 for 2022.
Given the straightforward nature of the business activities, the directors are of the opinion that disclosure of any other key performance indicators is not necessary for an understanding of the results of the group.
Mr S L Fisher is the chairman and chief executive officer of the ultimate parent undertaking: PEI/Genesis, Inc (“Ultimate Parent”) and in conjunction with his fellow directors of the UK group consider that they have responsibly and appropriately discharged their duties under the Companies Act 2006 (the “Act”), including their duty to act in the way that they consider, in good faith, will be most likely to promote the success of the UK group for the benefit of its members as a whole, having due regard in doing so for the matters set out in section 172(1)(a) to (f) in the Act (“s.172”).
Consequently, a description of how the directors have had regard to the matters set out in s.172 when performing their duty is set out in the attached Directors’ Report.
This report was approved by the board on 5 January 2024 and signed on its behalf.
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DIRECTORS' REPORT
FOR THE YEAR ENDED 31 AUGUST 2023
The directors present their report and the financial statements for the year ended 31 August 2023.
The directors are responsible for preparing the Group Strategic Report, the Directors' Report and the consolidated financial statements in accordance with applicable law and regulations.
In preparing these financial statements, the directors are required to:
∙select suitable accounting policies for the Group's financial statements and then apply them consistently;
∙make judgments and accounting estimates that are reasonable and prudent;
∙state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group 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 the Group and to 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 the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The profit for the year, after taxation, amounted to £2,925,455 (2022 - £2,332,461).
The directors do not recommend the payment of a dividend.
The directors who served during the year were:
Mr S L Fisher is the chairman and chief executive officer of the ultimate parent undertaking, a company that is incorporated and registered in the United States of America.
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DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
Facing a continuing gloomy global economic outlook with the continuing impact of inflation implications, the group predicts modest growth in turnover and continued pressure on margins. The group has maintained certain operating and employee costs to compensate for the lower margins. Movements in the foreign exchange markets are likely to have a mixed impact upon the company. Sales into Europe could be impacted positively or negatively with the euro rate movement. However, euro and US dollar denominated purchases could provide a negative impact.
The directors are satisfied that they will maintain or improve the current level of performance in the future and continue to view the group's prospects with realistic optimism. Accordingly, the directors have prepared these financial statements on the going concern basis due to the continuing financial and operating support provided by its' parent undertaking.
Engaging with customers, suppliers and employees is fundamental to how PEI does business and the directors believe that such interaction is vital to the Group’s ability to drive value creation over the longer term.
Customers: Ensuring that the customer is at the heart of the decision in enabling the Group to deliver its strategy. With the breadth of product and expertise, the Group is able to provide relevant solutions.
Suppliers: The long-term partnerships are an important part of being able to innovate and offer new and varied solutions to customers. These strategic relationships and the supply chain are an essential part of the strategy and require close engagement with our suppliers.
The Group's greenhouse gas emissions and energy consumption for the year are 59.6 tonnes and 681 MWh respectively (2022 - 61.4 tonnes and 713 MWh). This is analysed as direct emissions (scope 1) of 6.3 tonnes (126 MWh) and indirect emissions from electricity of 53.3 tonnes (555 MWh) (2022 - 7.7 tonnes (154 MWh) and indirect emissions from electricity of 53.7 tonnes (559 MWh).
The group continues to seek energy efficient methodologies to reduce the carbon footprint and associated costs. Until the technology advances have settled in respect of electric vehicles company cars are hybrid vehicles.
The Group's annual emissions as 3.3 tonnes of CO2e per £m of sales revenue (2022 – 4.3 tonnes).
The UK company’s branch office in Germany was incorporated and has become a wholly owned subsidiary of the company that commenced trading on 1st January 2021.
At the date of this report there are no post balance sheet events that would impact these financial statements.
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DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
The group's operations expose it to a variety of financial risks that include the effects of foreign exchange, liquidity risk and interest rate risk and are managed by the group's financial team.
The management of these risks is conducted within a framework of policies and guidelines authorised by the board of directors of the ultimate parent undertaking and are reported periodically to the board. The group is resiliently placed to weather the adverse trading conditions. The group's financial instruments, other than derivatives, comprise borrowings, cash and liquid resources and various items such as trade debtors and trade creditors that arise directly from its operating activities. The main purpose of the financial statements is to raise financing for the group's operations. The group publishes its financial statements in pounds sterling and conducts business in sterling and Euros, but also in US dollars. As a result, it is subject to foreign currency exchange risk due to exchange rate movements which will affect the transaction costs and the translation of the results. The group will also enter into derivative financial instrument such as interest rate swaps. The purpose of such transactions is to manage the interest rate risk arising from the group's operations and its sources of financing. It is, and has been throughout the period under review, the group's policy that no trading in financial instruments shall be undertaken. The main risks arising from the group's financial instruments are interest rate risk and liquidity risk. The board of directors reviews and agrees policies for managing each of these risks and they are summarised below. Liquidity risk The parent group's policy throughout the year has been to ensure continuity of funding. The credit facility was extended in November 2022 and is now renewable on 30 June 2026. The group obtains borrowing from its bankers and has been granted increased credit line availability since 2004 when it was $14 million to the current credit line of $38 million of which $9 million is capped for various non-US dollar denominated currencies. Therefore, the directors consider that liquidity risk is low. Interest rate risk The UK group historically financed its operations through bank borrowings and support from its parent undertaking but throughout the period under review had no bank borrowing and has reduced the support from its parent undertaking. The group is able to borrow in desired currencies at floating rates and use interest rate swaps to generate the desired interest rate profile and to manage the company's exposure to interest rate fluctuations.
The auditors, Magee Gammon Corporate Limited, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board on
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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PEI-GENESIS (U.K.) LIMITED
We have audited the financial statements of PEI-Genesis (U.K.) Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 August 2023, which comprise the Consolidated Statement of Income and Retained Earnings, the Consolidated Balance Sheet, the Company Balance Sheet, the Consolidated Statement of Cash Flows and the related notes, 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).
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 Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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.
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 Group's or the parent Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are 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.
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The directors are responsible for the other information contained within the Annual Report. 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. 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 course of 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 this gives rise to a material misstatement in the financial statements themselves. 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.
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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PEI-GENESIS (U.K.) LIMITED (CONTINUED)
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Group Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the Group Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the Group and the parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Directors' Report.
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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PEI-GENESIS (U.K.) LIMITED (CONTINUED)
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 Auditors' 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 Group 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:
Based on our understanding of the company, we have considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006. We evaluated management incentives and opportunities for fraudulent manipulation of the financial statements including management override, and considered that the principal risk was related to the posting of inappropriate journal entries to improve the result before tax for the year.
We designed audit procedures to respond to the risk, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. Procedures performed by the audit team included: • Discussions with management regarding known or suspected instances of non-compliance with laws and regulations; • Evaluation of controls designed to prevent and detect irregularities; and • Assessing journal entries as part of our planned audit approach. There are inherent limitations in the audit procedures described above, and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. As in all of our audits we also addressed the risk of management override of internal controls, including testing journals and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud.
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 Auditors' Report.
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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PEI-GENESIS (U.K.) LIMITED (CONTINUED)
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 Auditors' 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
Chartered Accountants
Statutory Auditors
Henwood House
Henwood
Kent
TN24 8DH
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CONSOLIDATED STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 AUGUST 2023
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CONSOLIDATED BALANCE SHEET
AS AT 31 AUGUST 2023
The financial statements were approved and authorised for issue by the board and were signed on its behalf on 5 January 2024.
The notes on pages 16 to 35 form part of these financial statements.
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COMPANY BALANCE SHEET
AS AT 31 AUGUST 2023
The financial statements were approved and authorised for issue by the board and were signed on its behalf on
The notes on pages 16 to 35 form part of these financial statements.
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CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 AUGUST 2023
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CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 AUGUST 2023
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2023
PEI-Genesis (U.K.) Limited is a private company limited by shares incorporated in England and Wales.
The address of its registered office is Henwood House, Henwood, Ashford, Kent, TN24 8DH. The address of the principal place of business is George Curl Way, Southampton, Hampshire, SO18 2RZ. The registered number of the company is 03290190. The principal activity of the company is that of the supply and production of harsh environment connectors.
2.Accounting policies
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgment in applying the Group's accounting policies (see note 3).
The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Income and Retained Earnings in these financial statements.
The following principal accounting policies have been applied:
The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Balance Sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated Statement of Income and Retained Earnings from the date on which control is obtained. They are deconsolidated from the date control ceases. In accordance with the transitional exemption available in FRS 102, the Group has chosen not to retrospectively apply the standard to business combinations that occurred before the date of transition to FRS 102, being 01 September 2014.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2023
2.Accounting policies (continued)
Functional and presentation currency
Transactions and balances
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2023
2.Accounting policies (continued)
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2023
2.Accounting policies (continued)
The contributions are recognised as an expense in the Statement of Comprehensive Income when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2023
2.Accounting policies (continued)
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line basis and the reducing balance basis.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a weighted average basis. Work in progress and finished goods include labour and attributable overheads.
At each balance sheet date, stocks are assessed for impairment: obsolescence, slow moving and defective items where appropriate. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2023
2.Accounting policies (continued)
Provisions are charged as an expense to profit or loss in the year that the Group becomes aware of the obligation, and are measured at the best estimate at the balance sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties. When payments are eventually made, they are charged to the provision carried in the Balance Sheet.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2023
2.Accounting policies (continued)
The Group has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the Group's Balance Sheet when the Group 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.
Basic financial assets
Basic financial assets, which include trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.
Discounting is omitted where the effect of discounting is immaterial. The Group's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.
Impairment of financial assets
Financial assets are assessed for indicators of impairment at each reporting date.
Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.
If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.
Financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instruments any contract that evidences a residual interest in the assets of the Group after the deduction of all its liabilities.
Basic financial liabilities, which include trade and other payables, bank loans, other loans and loans due to fellow group companies are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial.
Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.
Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2023
2.Accounting policies (continued)
effective interest method. Discounting is omitted where the effect of discounting is immaterial.
Other financial instruments
Derivatives, including forward exchange contracts, futures contracts and interest rate swaps, are not classified as basic financial instruments. These are initially recognised at fair value on the date the derivative contract is entered into, with costs being charged to the profit or loss. They are subsequently measured at fair value with changes in the profit or loss.
Debt instruments that do not meet the conditions as set out in FRS 102 paragraph 11.9 are subsequently measured at fair value through the profit or loss. This recognition and measurement would also apply to financial instruments where the performance is evaluated on a fair value basis as with a documented risk management or investment strategy.
Derecognition of financial instruments
Derecognition of financial assets
Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Group transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Group will continue to recognise the value of the portion of the risks and rewards retained.
Derecognition of financial liabilities
Financial liabilities are derecognised when the Group's contractual obligations expire or are discharged or cancelled.
The estimates and underlying assumptions are reviewed on an ongoing 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 the revision and future periods if the revision affects both current and future periods. The key sources of estimation uncertainty that have a significant effect on the amounts recognised in the financial statements are described below: Depreciation and residual values The directors have reviewed the useful economic life and associated residual values for all classes of fixed assets and have concluded that asset lives and residual values are appropriately reflected. Inventory obsolescence Inventory is continually reviewed for signs of obsolescence and slow moving stocks. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2023
Analysis of turnover by country of destination:
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2023
Page 25
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2023
Page 26
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2023
There were no factors that may affect future tax charges.
Page 27
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2023
The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Income and Retained Earnings in these financial statements. The profit after tax of the parent Company for the year was £
Page 28
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2023
15.Tangible fixed assets (continued)
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2023
Page 30
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2023
Page 31
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2023
Page 32
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2023
Profit and loss account
Page 33
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2023
At 31 August 2023, the Company co-guaranteed various revolving loan facilities issued by certain fellow subsidiaries and the ultimate parent undertaking, PEI/Genesis, Inc. which amounted to $47 million (2022 - $47 million).
The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £252,296 (2022: £203,442). Contributions totalling £45,657 (2022: £68,511) were payable to the fund at the balance sheet date.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2023
At the balance sheet date, the immediate parent undertaking is PEI/Genesis, Inc., a company incorporated in the United States of America.
Mr S L Fisher is the controlling party of the company. The parent undertaking of the smallest group to consolidate their financial statements is PEI/Genesis, Inc., a company incorporated in the United States of America. The registered office of the company is 2180 Hornig Road, Philadelphia, PA 19116, USA. The parent undertaking of the largest group to consolidate these financial statements is PEI/Genesis, Inc., a company incorporated in the United States of America. The registered address of the company is 2180 Hornig Road, Philadelphia, PA 19116, USA. The ultimate parent undertaking is PEI/Genesis, Inc., a company incorporated in the United States of America. PEI/Genesis, Inc. is the ultimate controlling party of the company. The controlling party of the parent undertaking is Mr S L Fisher.
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