PJ Colours Limited - Limited company accounts 18.2

REGISTERED NUMBER: 03479538 (England and Wales)

Strategic Report, Report of the Directors and

Financial Statements

for the Year Ended 30 April 2018

for

PJ Colours Limited

Page

Company Information

1

Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

5

Income Statement

7

Other Comprehensive Income

8

Statement of Financial Position

9

Statement of Changes in Equity

10

Notes to the Financial Statements

11

DIRECTORS:

N J Hamilton

H R Jackson

Ms J Spence

N D Jackson

SECRETARY:

Ms J Spence

REGISTERED OFFICE:

The Glades

Festival Way

Festival Park

Stoke on Trent

ST1 5SQ

REGISTERED NUMBER:

03479538 (England and Wales)

AUDITORS:

Mitten Clarke Audit Limited

Statutory Auditors

The Glades

Festival Way

Stoke on Trent

Staffordshire

ST1 5SQ

The directors present their strategic report for the year ended 30 April 2018.

REVIEW OF BUSINESS

During the year ending April 2018 PJ Colours Ltd saw a 3.6% increase in revenue which was largely driven by a

strong performance in export sales. Margins suffered as a result from increases in raw material costs on imported

goods.

The company continues to monitor the situation regarding Brexit and has a number of options for raw material

purchases both from EU and non EU sources.

PRINCIPAL RISKS AND UNCERTAINTIES

The company operates in a highly competitive industry, which is subject to price pressure from both local and

overseas competition. The board review prices and raw material costs on an ongoing basis.

The company purchases many of its raw materials from overseas suppliers and as such is often exposed to

fluctuations in foreign exchange rates. The board reviews the impact that movements in foreign exchange has on

both imports and exports on an ongoing basis.

KEY PERFORMANCE INDICATORS

The board monitors progress of the company using the following KPIs:

Revenue

2017/18

2016/17

Revenue

£12,859,192

£12,413,269

Increase %

3.6

7.2

This KPI is calculated by taking the turnover and other operating income for the year. This is compared to the

previous year and movement is shown as a percentage

Operating Profit

2017/18

2016/17

Operating Profit

£429,957

£891,246

% of revenue

3.3

7.2

This KPI is calculated by taking the total revenue and deducting, the cost of sales, distribution costs and

administrative expenses.

FUTURE DEVELOPMENTS

The company expects a similar level of activity in terms of revenue for the year 2018/19. The company is

continuing to focus on new product lines, that will help improve both revenue and margins moving forward.

ON BEHALF OF THE BOARD:

N J Hamilton - Director

22 October 2018

The directors present their report with the financial statements of the company for the year ended 30 April 2018.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of manufacture and sale of pigments and

additives to the concrete and asphalt industries.

DIVIDENDS

Interim dividends of £360,000 were paid during the year.

The directors recommend that no final dividend be paid.

The total distribution of dividends for the year ended 30 April 2018 will be £360,000.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 May 2017 to the date of this

report.

N J Hamilton

H R Jackson

Ms J Spence

Other changes in directors holding office are as follows:

N D Jackson - appointed 1 January 2018

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial

statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the

directors have elected to prepare the financial statements in accordance with United Kingdom Generally

Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law

the directors must not approve the financial statements unless they are satisfied that they give a true and fair

view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing

these financial statements, the directors are required to:

-	select suitable accounting policies and then apply them consistently;

-	make judgements and accounting estimates that are reasonable and prudent;

-	prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain

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

company and enable them to ensure that the financial statements comply with the Companies Act 2006. They

are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the

prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the

Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that

he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit

information and to establish that the company's auditors are aware of that information.

AUDITORS

Mitten Clarke Audit Limited, has indicated its willingness to continue in office and will be proposed for

re-appointment in accordance with section 485 Companies Act 2006.

ON BEHALF OF THE BOARD:

N J Hamilton - Director

22 October 2018

Opinion

We have audited the financial statements of PJ Colours Limited (the 'company') for the year ended 30 April 2018

which comprise the Income Statement, Other Comprehensive Income, Statement of Financial Position, 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 30 April 2018 and of its profit for the year then ended;

-	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

-	have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable

law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit

of the financial statements section of our report. We are independent of the company in accordance with the

ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's

Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our

opinion.

Conclusions relating to going concern

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to

report to you where:

-	the directors' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or

-

the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the company's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.

Other information

The directors are responsible for the other information. The other information comprises the information in the

Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of

the Auditors thereon.

Our opinion on the financial statements does not cover the other information and 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, 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.

Opinion on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

-	the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of

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

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to

report to you if, in our opinion:

-	adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

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

-	certain disclosures of directors' remuneration specified by law are not made; or

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

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page three, the directors are

responsible for the preparation of the financial statements and for being satisfied that they give a true and fair

view, and for such internal control as the directors determine necessary to enable the preparation of financial

statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to

continue as a going concern, disclosing, as applicable, matters related to going concern and using the going

concern basis of accounting unless the directors either intend to liquidate the company or to cease operations,

or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free

from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes

our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in

accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise

from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be

expected to influence the economic decisions of users taken on the basis of these financial statements.

A further description of our responsibilities for the audit of the financial statements is located on the Financial

Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report

of the Auditors.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the

Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members

those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the

fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company

and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Adam Clarke BA FCA (Senior Statutory Auditor)

for and on behalf of Mitten Clarke Audit Limited

Statutory Auditors

The Glades

Festival Way

Stoke on Trent

Staffordshire

ST1 5SQ

22 October 2018

TURNOVER

4

12,859,192

12,413,269

Cost of sales

10,556,964

9,918,699

GROSS PROFIT

2,302,228

2,494,570

Distribution costs

562,032

508,583

Administrative expenses

1,315,418

1,096,003

1,877,450

1,604,586

OPERATING PROFIT

6

424,778

889,984

Interest receivable and similar income

76,731

40,658

501,509

930,642

Interest payable and similar expenses

7

71,552

39,396

PROFIT BEFORE TAXATION

429,957

891,246

Tax on profit

8

72,416

165,151

PROFIT FOR THE FINANCIAL YEAR

357,541

726,095

PROFIT FOR THE YEAR

357,541

726,095

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

357,541

726,095

FIXED ASSETS

Tangible assets

10

263,415

237,485

CURRENT ASSETS

Stocks

11

2,183,287

1,477,932

Debtors

12

4,053,420

3,406,361

Cash at bank and in hand

312,757

193,287

6,549,464

5,077,580

CREDITORS

Amounts falling due within one year

13

4,066,261

2,969,363

NET CURRENT ASSETS

2,483,203

2,108,217

TOTAL ASSETS LESS CURRENT LIABILITIES

2,746,618

2,345,702

CREDITORS

Amounts falling due after more than one year

14

(730,962

)

(329,587

)

PROVISIONS FOR LIABILITIES

18

(38,000

)

(36,000

)

NET ASSETS

1,977,656

1,980,115

CAPITAL AND RESERVES

Called up share capital

19

200,000

200,000

Retained earnings

20

1,777,656

1,780,115

SHAREHOLDERS' FUNDS

1,977,656

1,980,115

The financial statements were approved by the Board of Directors on 22 October 2018 and were signed on its behalf by:

N J Hamilton - Director

H R Jackson - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 May 2016

200,000

1,909,020

2,109,020

Changes in equity

Dividends

-

(855,000

)

(855,000

)

Total comprehensive income

-

726,095

726,095

Balance at 30 April 2017

200,000

1,780,115

1,980,115

Changes in equity

Dividends

-

(360,000

)

(360,000

)

Total comprehensive income

-

357,541

357,541

Balance at 30 April 2018

200,000

1,777,656

1,977,656

1.	STATUTORY INFORMATION

PJ Colours Limited is a private company, limited by shares , registered in England and Wales. The

company's registered number and registered office address can be found on the Company Information

page.

2.	STATEMENT OF COMPLIANCE

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006.

3.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements cover the company as an individual entity, have been prepared under the

historical cost convention and are presented in Pounds Sterling (£) being the functional currency.

The financial statements have been prepared on the assumption that the company is able to carry on

business as a going concern, which the directors consider appropriate having regard to the company's

current and expected performance.

Financial Reporting Standard 102 - reduced disclosure exemptions

The company has taken advantage of the following disclosure exemptions in preparing these financial

statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic

of Ireland":

•

the requirements of Section 7 Statement of Cash Flows;

•

the requirement of Section 33 Related Party Disclosures paragraph 33.7.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts,

rebates, value added tax and other sales taxes.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated

useful life.

Freehold property

-

straight line over 35 years

Plant and machinery

-

33.33% , 20% and 10% on cost

Fixtures and fittings

-

25% on cost

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete

and slow moving items.

Financial instruments

Basic financial instruments are recognised at amortised cost, except for investments in non-convertible

preference and non-puttable ordinary shares which are measured at fair value, with changes recognised in

profit or loss. Derivative financial instruments are initially recorded at cost and thereafter at fair value

with changes recognised in profit or loss.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement,

except to the extent that it relates to items recognised in other comprehensive income or directly in

equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been

enacted or substantively enacted by the statement of financial position date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the

statement of financial position date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different

from those in which they are recognised in financial statements. Deferred tax is measured using tax rates

and laws that have been enacted or substantively enacted by the year end and that are expected to apply

to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable

that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at

the statement of financial position date. Transactions in foreign currencies are translated into sterling at

the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in

arriving at the operating result.

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of

the lease.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's

pension scheme are charged to profit or loss in the period to which they relate.

4.

TURNOVER

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

An analysis of turnover by geographical market is given below:

2018

2017

£

£

United Kingdom

8,829,461

8,873,706

Exports

4,029,731

3,539,563

12,859,192

12,413,269

5.	EMPLOYEES AND DIRECTORS

2018

2017

£

£

Wages and salaries

764,033

654,065

Social security costs

56,912

46,915

Other pension costs

100,987

147,004

921,932

847,984

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

2018

2017

Directors

4

3

Employees

30

29

34

32

2018

2017

£

£

Directors' remuneration

110,191

89,679

Directors' pension contributions to money purchase schemes

89,729

144,517

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

Money purchase schemes

4

3

6.	OPERATING PROFIT

The operating profit is stated after charging:

2018

2017

£

£

Hire of plant and machinery

38,773

42,268

Leasing of plant and machinery

146,002

150,462

Depreciation - owned assets

106,473

84,713

Auditors' remuneration

5,410

5,240

Auditors' remuneration for non audit work

6,450

6,450

Foreign exchange differences

9,731

552

7.

INTEREST PAYABLE AND SIMILAR EXPENSES

2018

2017

£

£

Invoice discounting interest

30,177

24,419

Other loan interest

41,375

14,977

71,552

39,396

8.

TAXATION

Analysis of the tax charge

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

2018

2017

£

£

Current tax:

UK corporation tax

70,416

151,151

Deferred tax

2,000

14,000

Tax on profit

72,416

165,151

Reconciliation of total tax charge included in profit and loss

The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference

is explained below:

2018

2017

£

£

Profit before tax

429,957

891,246

Profit multiplied by the standard rate of corporation tax in the UK of 19% (2017 - 19.918%)

81,692

177,518

Effects of:

Expenses not deductible for tax purposes

1,768

3,724

Depreciation of assets not available for capital allowances

316

517

Rounding

(113

)

-

Change in deferred tax rate

(100

)

(4,175

)

Group relief

(11,147

)

(12,433

)

Total tax charge

72,416

165,151

9.

DIVIDENDS

2018

2017

£

£

Ordinary shares of £1 each

Interim

360,000

855,000

10.	TANGIBLE FIXED ASSETS

Fixtures

Freehold

Plant and

and

Motor

property

machinery

fittings

vehicles

Totals

£

£

£

£

£

COST

At 1 May 2017

53,600

649,646

123,156

25,678

852,080

Additions

18,675

40,339

40,494

32,895

132,403

Disposals

-

(103,450

)

(5,958

)

-

(109,408

)

At 30 April 2018

72,275

586,535

157,692

58,573

875,075

DEPRECIATION

At 1 May 2017

28,424

486,203

94,975

4,993

614,595

Charge for year

1,754

65,589

19,606

19,524

106,473

Eliminated on disposal

-

(103,450

)

(5,958

)

-

(109,408

)

At 30 April 2018

30,178

448,342

108,623

24,517

611,660

NET BOOK VALUE

At 30 April 2018

42,097

138,193

49,069

34,056

263,415

At 30 April 2017

25,176

163,443

28,181

20,685

237,485

11.

STOCKS

2018

2017

£

£

Raw materials

656,483

656,390

Finished goods

1,526,804

821,542

2,183,287

1,477,932

The total stock recognised as an expense for the year was £9,243,542 (2017 - £8,621,409).

12.

DEBTORS

2018

2017

£

£

Amounts falling due within one year:

Trade debtors

2,656,107

2,619,491

Other debtors

17,375

17,375

Prepayments

30,164

53,466

2,703,646

2,690,332

Amounts falling due after more than one year:

Amounts owed by group undertakings

1,349,774

716,029

Aggregate amounts

4,053,420

3,406,361

The amounts owed by group undertakings are unsecured and interest is being charged at a commercial

rate.