I have received a copy of ‘Report and Unaudited Accounts for 30 November 2010 presented by the six directors. The company accountants were not instructed to carry out an audit or a review. The directors are satisfied that the company is entitled to exemption from the requirement to obtain an audit under section 477 of the Companies Act 2006.
Turnover/sales in 2010 was £173,712* as against £72,651 in 2009, cost of sales was £156,964 this year and £52,970 in 2009. This year their operating loss was £46,776 compared to £11,808 in 2009. The loss for 2010 was £44,296. I understand that the 2009 accounts are from trading starting in March.
In 2010, sales are listed as £163,980 with an addition of £9,732 for carriage outwards. As there was no carriage outwards shown in the 2009 figures, one can assume that this figure equates to 2,163 parcels at £4.50 each (the cost of carriage that PPD charges). This number of deliveries means over this 18 month period that the average number of deliveries per week was 27.
Also under Cost of Sales, carriage is listed once again as £14,838 for 2010 and £444.00 in 2009. Under Administration, postage is shown at £4,307 for 2010, which is an awful lot of letters sent, more than 11,000 first class letters sent at standard first class postage or over 11,000 magazine type mailings with Royal Mail discounts), but there is no postage shown in 2009. The accounts show a lot of blanks under 2009, bearing in mind the PPD project started in March, including packaging, wages and salaries, NI, staff training, rent, light & heat, stationery & printing, software and postage as a few examples.
The accounts state that during the year the company suffered trading deficits that were partially supported by revenue grant aid. The directors have reviewed the forecast of trading deficits and believe that these will be supported by ongoing grant support which has been confirmed to them by Welsh Assembly Government. The directors believe that the company will continue to trade for the foreseeable future and that the going concern basis remains appropriate. The company received a grant advance of £93,906 from Welsh Assembly Government in 2009 to be repaid from all future grant aid dependant on continued trading performance.
Administrative expenses shown for 2010
Employee costs: £
Employers NI 6,647
Staff training & welfare 825
Travel & subsistence 2,208
Motor expenses 399
I’m still unsure of how many staff PPD is employing, or if staff numbers have been reduced since the project started, but £70k on salaries is extra-ordinarily high based against performance. Reading through these accounts again though, it appears that the salaries and NI shown, are from March 2009 as well as 2010.
I am being told many tales about PPD, what I’m interested in knowing is which people put this initial project together and what they think of PPD performance so far…………………….
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