Powakaddy International Limited

The directors present their strategic report for the year ended 31 December 2021 below. Business Review The group has continued to operate as a manufacturer of electric golf trolleys and associated accessories. The Directors are very pleased with the performance of the group in the past year which has seen it consolidate its position in the marketplace with a consistent level of sales and a significant improvement on the prior year, despite this also being a very strong set of results. Continued tight controls over costs has ensured that the group has been able to achieve profits in line with expectations set out at the beginning of the year. Principal Risks and Uncertainties The group has very strong controls in relation to credit and collects a large proportion of its sales via direct debit payment ensuring there is minimal risk in relation to bad debts. Detailed product design and controls in relation to production ensure that all products are of an excellent standard. The main risk to the company relates to exchange rate variances due to procurement from abroad and the impact of Brexit. The company is looking to mitigate this risk via the use of financial instruments and is now trading through Powakaddy Europe Limited to mitigate some of the risks from Brexit. Key Performance Indicators Gross profit margin 39.09% (2020: 40.58%) Average debtor days 10 (2020: 36 days) Strong controls are maintained on debtors with collection via a direct debit facility combined with regular chasing of other trade debtors. Future plans The group intends to continue to develop and improve on their current range of products and is looking to maintain sales and profitability in the year end. Conflict in Ukraine The directors have considered the impact of the events in Ukraine with particular reference to how this may disrupt their business model, strategy and operations. It is noted that the group companies have no direct dealings with either Ukraine or any nation or individual currently experiencing sanctions as a result of the events in Ukraine. The directors have liaised with customers and similarly they have no dealings that will directly impact the group's operations, recoverability of debt and credit. It is clear that there is a worldwide impact on the general economic landscape, and particular impact on Eastern European countries. The directors have calculated the effect and believe that this will not significantly impact the ability to trade or going concern.