Company Report: Portview Holdings
In the last three years, Portview Holdings has enjoyed a larger turnover and has registered improved profitability. The accounts for the year ending November 2015 noted a 19% increase in turnover but that gross profit had declined.
This was attributed to securing larger-scale projects which did not earn as high a margin as earlier business. The company emphasised that, in a very competitive environment, it enjoyed successful business from 63% repeat clients.
With annual turnover exceeding £40m, the business profit margins have improved. Retained post-tax profits have been kept and, as a result, the balance sheet values of shareholders' funds have risen sharply. The company has only needed a modest annual level of capital spending and bank borrowing has been steadily reducing. Employment has risen to an average of 82 people. The registered accounts are reporting an unfinished challenge to an assessment for unpaid tax and National Insurance which has been appealed.
This relates to payments from 2007 to 2011 to a human resources company. The potential liability is estimated to be £5.1m. Then, from 2012 to 2015 the group entered into incentive arrangements where certain employees were awarded securities, dependent on specific key performance indicators. The group considers that these payments are revenue expenditure and not subject to PAYE and NIC. The payments are under review by HMRC. The directors have appealed the outcome, with potential liability estimated at £3.2m.