Omega Plastics Group Limited - Period Ending 2020-03-31
Omega Plastics Group Limited - Period Ending 2020-03-31
Registration number:
Omega Plastics Group Limited
for the Year Ended 31 March 2020
Omega Plastics Group Limited
Contents
|
Company Information |
|
|
Strategic Report for the Year Ended 31 March 2020 |
|
|
Directors' Report |
|
|
Statement of Directors' Responsibilities |
|
|
Independent Auditor's Report |
|
|
Consolidated Income Statement |
|
|
Consolidated Statement of Financial Position |
|
|
Statement of Financial Position |
|
|
Consolidated Statement of Changes in Equity |
|
|
Statement of Changes in Equity |
|
|
Consolidated Statement of Cash Flows |
|
|
Notes to the Financial Statements |
Omega Plastics Group Limited
Company Information
|
Directors |
C R Swinhoe G O Owen C Thompson D Crone |
|
Company secretary |
L Wilson |
|
Registered office |
|
|
Auditor |
|
Omega Plastics Group Limited
Strategic Report for the Year Ended 31 March 2020
The directors present their strategic report for the year ended 31 March 2020 (“FY20”).
Fair review of the business
Business model
Omega Plastic Group (“Group”) comprises of:
|
• |
Omega Plastics Group Limited, a non-trading holding company |
|
• |
Omega North East Limited t/a Omega Plastics (“Omega Plastics”); and |
|
• |
Signal Plastic Components Limited t/a Signal Plastics (“Signal Plastics”). |
The Group provides a full turn-key solution of low to high volume tooling and plastic injection moulding services.
The Group operates from two facilities at Gateshead (45,000 sq. feet) and Washington (43,500 sq. feet) across 4 main sectors: Automotive, Medical, Industrial and Technical Products and Consumer Products.
The Group’s technical expertise and reputation for delivering solutions to challenging problems or in short timeframes allows it to assist customers from product conception through the development cycle and into serial production.
The Group had invested significantly in the 3 years prior to FY20:
|
• |
completing the acquisition of Signal Plastics and making significant investment in new equipment and consultancy support, to provide a high-volume technical moulding centre; |
|
• |
relocating the Omega Plastics facilities in Blyth and Hartlepool (combined 20,000 sq. feet) to larger premises and new Group headquarters in Gateshead (45,000 sq. feet); and |
|
• |
investing in our tooling and moulding equipment and growing our experienced and skilled team to provide the platform for growth and people and technical skills. |
As a result of the investment in the relocation, the Group became loss making during the financial year ended 31 March 2019 (“FY19”) with one off dilapidation and move costs being expensed in FY19. Further relocation operating expenses continued to be incurred in FY20.
The Group has a strong technical base, customer loyalty and experienced and supportive shareholders. The Board sees significant potential from adopting a more commercial and strategic approach to Group and financial management.
Financial review
The Board are very pleased with both the financial and operational performance during FY20 and thank all colleagues across the Group for their effort and commitment during the year.
The Group built on the significant investment made in the 3 prior years and as expected, performed well, and returned to profit. Strong progress was made and during the year and the Group’s management team have put in place a platform from which the Board are confident that the Group can grow and deliver its strategy.
Group EBITDA, a key performance indicator used by Group’s management, for FY20 was £481,531, an increase of 282% from £170,530 in FY19.
Gross margin for FY20 was 30%, an increase from 26% in FY19 and the Group returned to a net profit of £209,210 in FY20 from a net loss of £99,454 in FY19.
The Group’s reported turnover fell from £11.2m in FY19 to £10.4m in FY20 due to previously bought in components for one the Group’s moulding and assembly customers changing to be free issue and no longer being recharged/passed through. On a like for like basis, including the assembly components which changed to free issue FY20 turnover would have increased by 4% from £11.2m to £11.6m.
Omega Plastics Group Limited
Strategic Report for the Year Ended 31 March 2020 (continued)
Operational review
Following the appointment, a greater focus has been placed on the Group brand and a one group mentality. Clear strategic objectives were set to address tooling sales and focus, operating structures, and operational efficiency.
Strong commercial progress was made during second half of FY20 on rebalancing the Group’s business with a renewed focus on the Group’s original core markets of medical, industrial and technical products and consumer products to supplement the Group’s growing automotive work. A new Group website was launched in November 2020.
In automotive, the Group won its largest tooling order to date on a multi-vehicle platform, which will see the supply of high-volume production moulded components commencing from October 2020. Across the Group’s other sectors tooling and moulding orders were received from a number of new blue chip companies.
Good progress was made to introduce new financial systems and cost control measures and culture throughout the Group. A review took place to optimise structures, efficiencies and reduce unnecessary operational costs across all areas.
Principal risks and uncertainties
The Group takes a proactive approach to the management of risk to protect the business and secure growth. An analysis of the key risks identified for FY20 are set out below.
|
Risk |
Impact |
Mitigation |
|
Key Customers |
The Group has several key customers. There are risks that these key customer relationships could come to an end for a variety of commercial reasons, which would adversely impact Group revenues |
Where appropriate, the Group looks to agree long term supply agreement with its customers. The Group endeavours to be commercially agile to respond to evolving customer priorities whilst continuing its commitment to market-leading service where customers value it. |
|
Reliance on Automotive Sector- |
60% of the Group’s turnover is related to the automotive sector. The Group could suffer a reduction in turnover and profit if there is a downturn in the automotive sector |
The Group’s automotive turnover is not reliant on one manufacturer, it is split between several larger OEMs (through Tier One suppliers) and direct relationships with several niche luxury car brands. Additionally, the Group has placed a greater focus on original core markets (medical, industrial and technical products and consumer goods) to grow those sectors to be the larger percentage of Group’s revenue. The Group does not want to do less automotive work, which remains very important, but to balance this work with work from other sectors. |
Omega Plastics Group Limited
Strategic Report for the Year Ended 31 March 2020 (continued)
Principal risks and uncertainties (continued)
|
Risk |
Impact |
Mitigation |
|
Facilities |
Manufacturing and warehouse management are key activities of the Group. There is a risk that revenue and profit could be impacted should any of the Group’s facilities become damaged. |
The Group has in place appropriate business continuity plans, as well as the necessary insurances for damage to property and business interruption. |
|
Reputation |
The Group is reliant on its reputation for quality, reliability, consistency, and service. Should its reputation for any of these be damaged because of a failure by the Group and/or adverse publicity, this could have a negative impact on the Group’s revenues. |
The Group operates a robust system of controls and processes that underpins the provision of services to customers. The Group also benefits from an in-house Quality function, which monitors a range of operational performance indicators to drive continuous improvement, prevent errors and ensure any issues are resolved as quickly as possible. |
|
Loss of key employees |
The Group is reliant on the strategic management, commercial, technical, engineering and industry expertise of key individuals. Loss of these individuals could impact on the Group’s management or its services to customers |
The Group has a competitive remuneration package that is reflective of market conditions for key roles and is constantly under review as conditions change. |
|
Brexit |
The Group remains concerned as to the effects that no deal Brexit may have on the UK economy generally and for sales in the automotive sector, which account for more than half of the Group’s revenue. |
The Group has been planning and discussing with customers and suppliers the potential impact that Brexit, and a no deal Brexit, may have on their businesses, the supply chain and wider demand over the UK economy. |
Key performance Indicators
The Group’s management team uses various Key Performance Indicators (KPIs) to monitor financial performance. Below are the measures which the Group’s management believe provide the best indication of the performance of the Group during FY20.
|
KPI |
Measurement |
FY20 |
FY19 |
% Change |
|
Group Revenue |
Sale of goods and services net of value added tax, recognised on tooling on staged payments or work in progress and on moulding at point of dispatch |
£10,412,771 |
£11,223,488 |
(7) |
|
Group Gross Profit |
The profit achieved on revenue after taking account of the direct costs incurred in bringing the goods and services to a saleable condition. |
£3,170,971 |
£2,910,295 |
9 |
Omega Plastics Group Limited
Strategic Report for the Year Ended 31 March 2020 (continued)
|
Group Gross Margin |
The percentage profit achieved on revenue. |
30.45% |
25.93% |
Key performance Indicators (continued)
|
KPI |
Measurement |
FY20 |
FY19 |
% Change |
|
Group EBITDA |
The profit achieved on revenue after taking account of the direct costs and overheads but before interest, depreciation, and amortisation |
£481,531 |
£170,530 |
282 |
|
Group Net Profit |
The actual profit after expenses not included in the calculation of Gross Profit have been paid |
£209,210 |
£(99,454) |
The Board consider that these indicators show that the Group is making strong progress on its strategic focus. The Board expect to see further financial improvement, growth, and operational efficiency during the next financial year and beyond.
Future developments
COVID-19
The Board and the Group management’s primary concern remains the health and safety of colleagues and their families and the local communities in which the Group operates. The Group continues to follow the UK government guidance, as it adapts to the daily changing landscape, to create a COVID-secure workplace at both sites which reduce the risk of infection at work.
The Group started to plan for COVID-19 in January 2020 and during the beginning of the pandemic updated colleagues and customers on plans weekly. The Group responded quickly to the threats and opportunities arising from COVID-19. The Group’s management prepared updated assumptions to allow the Group to react, plan and navigate. The Group took quick action to preserve and build cashflow, reduce or defer operating costs and to create a safe working environment for colleagues.
The Group reacted strongly and swiftly to approaches from key Automotive contacts to use technical skills and resource to urgently assist with manufacture of ventilators for the NHS as part of the F1 Ventilator Challenge. The Group also worked with other customers on the urgent and critical supply of PPE and testing equipment for COVID-19.
Omega Plastics has remained fully operational throughout the pandemic to continue to support all customers, including those involved in the supply of COVID-19 or other medical projects.
In response to the widespread suspension of UK automotive, operations at Signal Plastics were suspended in early April 2020. Signal Plastics worked with its automotive customers to meet their final demand before their shutdowns and worked with its non-automotive customers to meet their need for products prior to the planned suspension. Signal Plastics resumed operations in June 2020 and was fully operational again by the end of August 2020.
The Board are proud that by the end of September 2020 the Group were able to return all colleagues in both Omega Plastics and Signal Plastics to work on their normal pay and hours.
Omega Plastics Group Limited
Strategic Report for the Year Ended 31 March 2020 (continued)
Outlook
During FY20 the Group made strong progress in developing several key aspects of the Group’s business. The Group’s management put in place a new 3-year business plan which built on the strong performance in quarter 4 FY20 and which the Board and Group management believed provided a platform for sustainable and achievable growth.
Notwithstanding the challenges faced by COVID-19, the Group have continued the strong financial and strategic progress made during FY20. In the six months since the pandemic the Group has continued to perform well, profitably, and well above management expectations.
The Board and Group’s management will continue to exercise caution as the COVID-19 pandemic evolves and as we approach the Brexit date. However, the Board are proud of the sustained progress the Group has made in the six months since the end of FY20. The Board would like to thank all colleagues in the Group for their effort and commitment throughout this unprecedented period.
Although concerned about the impact that COVID-19 and a no deal Brexit could have on the UK economy generally, the Board believes that the Group is in a very strong position to take advantage of the significant opportunities available to it and the Board looks forward to the forthcoming year and beyond with optimism.
Approved by the Board on 22 October 2020 and signed on its behalf by:
.........................................
C R Swinhoe
Director
Omega Plastics Group Limited
Directors' Report for the Year Ended 31 March 2020
The directors present their report and the for the year ended 31 March 2020.
Directors of the group
The directors who held office during the year were as follows:
The following director was appointed after the year end:
Financial instruments
Objectives and policies
The group finances its activities with a combination of external and shareholder loans, finance leases and hire purchase contracts, cash and short term deposits. Invoice discounting facility is used to satisfy short term cash flow requirements. Other financial assets and liabilities, such as trade debtors and trade creditors, arise directly from the group's operating activities.
Price risk, credit risk, liquidity risk and cash flow risk
Price risk
Price risk is the risk that changes in raw material prices have the potential to impact on the profitability of the group. The group does not consider that it is materially exposed to price risk.
Credit risk
Credit risk is the risk that one party of a financial instrument will cause a financial loss for the other party by failing to discharge its obligation. Group policies are aimed at minimising such losses and require customers to satisfy credit worthiness procedures prior to acceptance of contracts. The group also utilises insurance policies to protect against non-payment of debt. The group does not consider that it is materially exposed to credit risk.
Cash flow and liquidity risk
Cash flow and liquidity risk is the risk that a group's available cash will not be sufficient to meet its financial obligations. The group actively manages its cash flow position including collection of debts, utilsation of an invoice discounting facility and timely payment of creditors. This, coupled with the shareholder support of the group is deemed sufficient to minimise the group's exposure to cash flow and liquidity risk.
Foreign Exchange risk
Foreign exchange risk refers to the potential for loss from exposure to foreign exchange rate fluctuations. Group policies are aimed at minimising this risk. The group does not consider that it is materially exposed to foreign exchange risk.
Future developments
See disclosures within the Strategic Report regarding future developments of the Group.
As coronavirus continues to impact the global society, the board will adhere to government guidance and will review the needs of all of our stakeholders.
Omega Plastics Group Limited
Directors' Report for the Year Ended 31 March 2020 (continued)
Going concern
The financial statements have been prepared on a going concern basis.
The group meets its day to day working capital requirements through cash generated from operations and external/shareholder borrowings.
The group’s forecasts and projections for the next twelve months show that the group should be able to continue in operational existence for that period, taking into account reasonable possible changes in trading performance and the potential impact on the business of possible future scenarios arising from the impact of COVID-19. This also considers the effectiveness of available measures to assist in mitigating the impact.
At this time, the long term impact of the COVID-19 virus on the global economy and the subsequent impact on the group is unknown, however Omega North East Limited has continued to trade throughout the pandemic in part due to being a supplier to the medical sector in which some of the company's core activities are in. Signal Plastic Components Limited's operations ceased temporarily on 3 April and recommenced in mid-June 2020. The decision was made to reflect the fall in demand from customers and to minimise costs during the period of uncertainty.
In the directors assessment of possible changes they have considered a fall in demand and potential cost savings which are reflective of their business continuity plan. Key scenarios and assumptions are as follows:
Signal Plastic Components Limited
• That the subsidiary’s business will continue operating at reduced demand until October 2020 before returning to normal trading levels;
• That the entity will avail itself of available reliefs put forward by HM Government including:
- Delayed PAYE and VAT payments
- Furloughing of 75% of underutilised staff until June 2020 and 25% remaining on furlough until August 2020
• That the subsidiary will use other available reliefs such as rent free periods, a rates holiday and hire purchase repayment breaks.
Omega North East Limted
• That the subsidiary's business will continue operating at reduced capacity before returning to normal trading levels in October 2020;
• That the entity will avail itself of available reliefs put forward by HM Government including:
- Delayed PAYE and VAT payments
- Furloughing of underutilised staff
- Securing £200,000 of additional funding through government guaranteed business loans.
• That the subsidiary will use other available reliefs such as rent free periods, a rates holiday and hire purchase repayment breaks.
Although the forecasts were prepared taking account of the matters above and support the ability of the group to be remain a going concern and to be able to trade and meets its debts as they fall due, the full impact of COVID 19, the continued level of government support and the underlying trading assumptions used in forecasting are extremely judgemental and difficult to predict and could be subject to significant variation. The directors have stress tested their forecasts, considering various scenarios, and remain confident that the uncertainties do not cast significant doubt on the group’s ability to continue as a going concern.
Based on the factors set out above the directors believe that it remains appropriate to prepare the financial statements on a going concern basis.
Omega Plastics Group Limited
Directors' Report for the Year Ended 31 March 2020 (continued)
Disclosure of information to the auditor
Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditor is unaware.
Reappointment of auditors
In accordance with section 485 of the Companies Act 2006, a resolution for the re-appointment of MHA Tait Walker as auditors of the company is to be proposed at the forthcoming Annual General Meeting.
Approved by the
|
......................................... |
Omega Plastics Group Limited
Statement of Directors' Responsibilities
The directors acknowledge their responsibilities for preparing the Annual Report 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 group and parent company and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:
|
• |
select suitable accounting policies and apply them consistently; |
|
• |
make judgements 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; and |
|
• |
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the group and parent company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the parent company's transactions and disclose with reasonable accuracy at any time the financial position of the parent 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 group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Omega Plastics Group Limited
Independent Auditor's Report to the Members of Omega Plastics Group Limited
Opinion
We have audited the financial statements of Omega Plastics Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2020, which comprise the Consolidated Income Statement, Consolidated Statement of Financial Position, Statement of Financial Position, Consolidated Statement of Changes in Equity, Statement of Changes in Equity, Consolidated Statement of Cash Flows, 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).
Basis for qualified opinion on financial statements
Qualified opinion on financial statements
In our opinion, except for the effects of the matter described in the Basis for Qualified Opinion paragraph, the financial statements:
• | give a true and fair view of the state of the group's and the parent company's affairs as at 31 March 2020 and of the group's 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 Auditor’s 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 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 group’s or the parent 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. |
Omega Plastics Group Limited
Independent Auditor's Report to the Members of Omega Plastics Group Limited (continued)
Other information
The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. 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.
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 we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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 matter 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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
|
• |
the Directors' Report has been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception
In the light of our 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 Directors' Report.
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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
• | the parent company 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. |
Omega Plastics Group Limited
Independent Auditor's Report to the Members of Omega Plastics Group Limited (continued)
Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities [set out on page 10], 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 is 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 group’s and the parent 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 group or the parent company or to cease operations, or have no realistic alternative but to do so.
Auditor’s 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 an auditor’s 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 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 auditor's report.
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 an auditor’s 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 Auditor
Bulman House
Regent Centre
Newcastle upon Tyne
NE3 3LS
MHA Tait Walker is a trading name of Tait Walker LLP.
Omega Plastics Group Limited
Consolidated Income Statement for the Year Ended 31 March 2020
|
Note |
2020 |
2019 |
|
|
Turnover |
|
|
|
|
Cost of sales |
( |
( |
|
|
Gross profit |
|
|
|
|
Administrative expenses |
( |
( |
|
|
Other operating income |
- |
|
|
|
Operating loss |
( |
( |
|
|
Other interest receivable and similar income |
- |
|
|
|
Interest payable and similar expenses |
( |
( |
|
|
Loss before tax |
( |
( |
|
|
Taxation |
|
|
|
|
Profit/(loss) for the financial year |
|
( |
|
|
Profit/(loss) attributable to: |
|||
|
Owners of the company |
|
( |
The group has no recognised gains or losses for the year other than the results above.
Omega Plastics Group Limited
(Registration number: 05837672)
Consolidated Statement of Financial Position as at 31 March 2020
|
Note |
2020 |
2019 |
|
|
Fixed assets |
|||
|
Intangible assets |
|
|
|
|
Tangible assets |
|
|
|
|
|
|
||
|
Current assets |
|||
|
Stocks |
|
|
|
|
Debtors |
|
|
|
|
Cash at bank and in hand |
|
|
|
|
|
|
||
|
Creditors: Amounts falling due within one year |
( |
( |
|
|
Net current assets/(liabilities) |
|
( |
|
|
Total assets less current liabilities |
|
|
|
|
Creditors: Amounts falling due after more than one year |
( |
( |
|
|
Provisions for liabilities |
( |
( |
|
|
Net assets |
|
|
|
|
Capital and reserves |
|||
|
Called up share capital |
|
|
|
|
Share premium reserve |
|
|
|
|
Capital redemption reserve |
|
|
|
|
Profit and loss account |
|
|
|
|
Equity attributable to owners of the company |
|
|
|
|
Total equity |
|
|
Approved and authorised by the
|
......................................... |
Omega Plastics Group Limited
(Registration number: 05837672)
Statement of Financial Position as at 31 March 2020
|
Note |
2020 |
2019 |
|
|
Fixed assets |
|||
|
Investments |
|
|
|
|
Current assets |
|||
|
Debtors |
- |
|
|
|
Creditors: Amounts falling due within one year |
( |
- |
|
|
Net current (liabilities)/assets |
( |
|
|
|
Net assets |
|
|
|
|
Capital and reserves |
|||
|
Called up share capital |
|
|
|
|
Share premium reserve |
|
|
|
|
Capital redemption reserve |
|
|
|
|
Profit and loss account |
|
|
|
|
Total equity |
|
|
The company made a profit after tax for the financial year of £57,989 (2019 - profit of £100,849).
Approved and authorised by the
|
......................................... |
Omega Plastics Group Limited
Consolidated Statement of Changes in Equity for the Year Ended 31 March 2020
Equity attributable to the parent company
|
Share capital |
Share premium |
Capital redemption reserve |
Profit and loss account |
Total |
Total equity |
|
|
At 1 April 2018 |
|
|
|
|
|
|
|
Loss for the year |
- |
- |
- |
( |
( |
( |
|
Total comprehensive income |
- |
- |
- |
( |
( |
( |
|
Dividends |
- |
- |
- |
( |
( |
( |
|
At 31 March 2019 |
43,700 |
294,300 |
42,000 |
666,100 |
1,046,100 |
1,046,100 |
|
Share capital |
Share premium |
Capital redemption reserve |
Profit and loss account |
Total |
Total equity |
|
|
At 1 April 2019 |
|
|
|
|
|
|
|
Profit for the year |
- |
- |
- |
|
|
|
|
Total comprehensive income |
- |
- |
- |
|
|
|
|
Dividends |
- |
- |
- |
( |
( |
( |
|
At 31 March 2020 |
|
|
|
|
|
|
Omega Plastics Group Limited
Statement of Changes in Equity for the Year Ended 31 March 2020
|
Share capital |
Share premium |
Capital redemption reserve |
Profit and loss account |
Total |
|
|
At 1 April 2018 |
|
|
|
|
|
|
Profit for the year |
- |
- |
- |
|
|
|
Total comprehensive income |
- |
- |
- |
|
|
|
Dividends |
- |
- |
- |
( |
( |
|
At 31 March 2019 |
43,700 |
294,300 |
42,000 |
267,633 |
647,633 |
|
Share capital |
Share premium |
Capital redemption reserve |
Profit and loss account |
Total |
|
|
At 1 April 2019 |
|
|
|
|
|
|
Profit for the year |
- |
- |
- |
|
|
|
Total comprehensive income |
- |
- |
- |
|
|
|
Dividends |
- |
- |
- |
( |
( |
|
At 31 March 2020 |
|
|
|
|
|
Omega Plastics Group Limited
Consolidated Statement of Cash Flows for the Year Ended 31 March 2020
|
Note |
2020 |
2019 |
|
|
Cash flows from operating activities |
|||
|
Profit/(loss) for the year |
|
( |
|
|
Adjustments to cash flows from non-cash items |
|||
|
Depreciation, impairment and amortisation |
|
|
|
|
(Profit)/loss on disposal of tangible assets |
( |
|
|
|
Finance income |
- |
( |
|
|
Finance costs |
|
|
|
|
Income tax expense |
( |
( |
|
|
|
|
||
|
Working capital adjustments |
|||
|
Decrease in stocks |
|
|
|
|
Decrease in debtors |
|
|
|
|
Decrease in creditors |
( |
( |
|
|
Decrease in deferred income, including government grants |
- |
( |
|
|
Cash generated from operations |
|
( |
|
|
Income taxes received |
|
|
|
|
Net cash flow from operating activities |
|
|
|
|
Cash flows from investing activities |
|||
|
Interest received |
- |
|
|
|
Acquisitions of tangible assets |
( |
( |
|
|
Proceeds from sale of tangible assets |
|
|
|
|
Net cash flows from investing activities |
( |
( |
|
|
Cash flows from financing activities |
|||
|
Interest paid |
( |
( |
|
|
Proceeds from bank borrowing draw downs |
- |
|
|
|
Repayment of bank borrowing |
( |
( |
|
|
Proceeds from other borrowing draw downs |
|
|
|
|
Repayment of other borrowing |
( |
( |
|
|
Receipts from finance lease debtors |
- |
|
|
|
Payments to finance lease creditors |
( |
( |
|
|
Dividends paid |
( |
( |
|
|
Net cash flows from financing activities |
( |
|
|
|
Net (decrease)/increase in cash and cash equivalents |
( |
|
|
|
Cash and cash equivalents at 1 April |
|
|
|
|
Cash and cash equivalents at 31 March |
85,546 |
670,434 |
|
Omega Plastics Group Limited
Notes to the Financial Statements for the Year Ended 31 March 2020
|
General information |
The company is a private company limited by share capital, incorporated in England & Wales.
The address of its registered office is
|
Accounting policies |
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.
Basis of preparation
These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.
These financial statements are prepared in sterling which is the functional currency of the entity.
Summary of disclosure exemptions
The entity satisfies the criteria of being a qualifying entity as defined in FRS 102. As such, advantage has been taken of the following disclosure exemptions available under paragraph 1.12 of FRS 102:
(a) No cash flow statement has been presented for the company.
(c) Disclosures in respect of financial instruments have not been presented.
(d) No disclosure has been given for the aggregate remuneration of key management personnel.
The Company has taken advantage of the exemption available under paragraph 33.1A of FRS 102 and does not disclose related party transactions with members of the same group that are wholly owned.
Basis of consolidation
The consolidated financial statements consolidate the financial statements of the company and its subsidiary undertakings drawn up to 31 March 2020.
Omega Plastics Group Limited
Notes to the Financial Statements for the Year Ended 31 March 2020 (continued)
|
2 |
Accounting policies (continued) |
A subsidiary is an entity controlled by the company. Control is achieved where the company has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.
The results of subsidiaries acquired or disposed of during the year are included in the Income Statement from the effective date of acquisition or up to the effective date of disposal, as appropriate. Where necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by the group.
The purchase method of accounting is used to account for business combinations that result in the acquisition of subsidiaries by the group. The cost of a business combination is measured as the fair value of the assets given, equity instruments issued and liabilities incurred or assumed at the date of exchange, plus costs directly attributable to the business combination. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. Any excess of the cost of the business combination over the acquirer’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities recognised is recorded as goodwill.
Inter-company transactions, balances and unrealised gains on transactions between the company and its subsidiaries, which are related parties, are eliminated in full.
Intra-group losses are also eliminated but may indicate an impairment that requires recognition in the consolidated financial statements.
Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the group. Non-controlling interests in the net assets of consolidated subsidiaries are identified separately from the group’s equity therein. Non-controlling interests consist of the amount of those interests at the date of the original business combination and the non-controlling shareholder’s share of changes in equity since the date of the combination.
Going concern
The financial statements have been prepared on a going concern basis.
The company meets its day to day working capital requirements through cash generated from operations and external/shareholder borrowings.
The groups’s forecasts and projections for the next twelve months show that the group should be able to continue in operational existence for that period, taking into account reasonable possible changes in trading performance and the potential impact on the business of possible future scenarios arising from the impact of COVID-19. This also considers the effectiveness of available measures to assist in mitigating the impact.
At this time, the long term impact of the COVID-19 virus on the global economy and the subsequent impact on the group is unknown, however the Omega North East Limited has continued to trade throughout the pandemic due to in part being a supplier to the medical sector in which some of the company's core activities are in. Signal Plastic Components Limited's operations ceased temporarily on 3 April and recommenced in mid-June 2020. The decision was made to reflect the fall in demand from customers and to minimise costs during the period of uncertainty.
Omega Plastics Group Limited
Notes to the Financial Statements for the Year Ended 31 March 2020 (continued)
|
2 |
Accounting policies (continued) |
Going concern (continued)
In the directors assessment of possible changes they have considered a fall in demand and potential cost savings which are reflective of their business continuity plan. Key scenarios and assumptions are as follows:
Signal Plastic Components Limited
• That the subsidiary’s business will continue operating at reduced demand until October 2020 before returning to normal trading levels;
• That the entity will avail itself of available reliefs put forward by HM Government including:
- Delayed PAYE and VAT payments
- Furloughing of 75% of underutilised staff until June 2020 and 25% remaining on furlough until August 2020
• That the subsidiary will use other available reliefs such as rent free periods, a rates holiday and hire purchase repayment breaks.
Omega North East Limted
• That the subsidiary's business will continue operating at reduced capacity before returning to normal trading levels in October 2020;
• That the entity will avail itself of available reliefs put forward by HM Government including:
- Delayed PAYE and VAT payments
- Furloughing of underutilised staff
- Securing £200,000 of additional funding through government guaranteed business loans.
• That the subsidiary will use other available reliefs such as rent free periods, a rates holiday and hire purchase repayment breaks.
Although the forecasts were prepared taking account of the matters above and support the ability of the group to be remain a going concern and to be able to trade and meets its debts as they fall due, the full impact of COVID 19, the continued level of government support and the underlying trading assumptions used in forecasting are extremely judgemental and difficult to predict and could be subject to significant variation. The directors have stress tested their forecasts, considering various scenarios, and remain confident that the uncertainties do not cast significant doubt on the group’s ability to continue as a going concern.
Based on the factors set out above the directors believe that it remains appropriate to prepare the financial statements on a going concern basis.
Omega Plastics Group Limited
Notes to the Financial Statements for the Year Ended 31 March 2020 (continued)
|
2 |
Accounting policies (continued) |
Judgements
The judgements (apart from those involving estimations) that management has made in the process of applying the entity's accounting policies and that have the most significant effect on the amounts recognised in the financial statements are as follows: |
Assessing indicators of impairment - In assessing whether there have been indicators of impairment of assets, the directors have considered both external and internal sources of information such as market conditions, counterparty credit ratings and experience of recoverability. |
Assessing nature of lease - The group has entered into commercial leases and as a lessee it obtains use of property, plant and equipment. The classification as operating or finance lease requires the group to determine, based on an evaluation of the terms and conditions of the arrangements, whether it acquires the significant risks and rewards of ownership of these assets and accordingly whether the lease requires an asset and liability to be recognised in the balance sheet. |
Taxation - Management judgement is required to determine the amount of deferred tax assets that can be recognised, based upon the likely timing and level of future taxable profits together with an assessment of the effect of future tax planning strategies. |
Key sources of estimation uncertainty
Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the related actual outcome. The key assumptions and other sources of estimation uncertainty that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are as follows:
Useful economic lives of tangible assets - The annual depreciation charge is sensitive to changes in the estimated useful lives of the assets. The useful economic lives are re-assessed annually. They are amended when necessary to reflect current estimates, future investments and economic utilisation. The carrying amount is £2,284,868 (2019 - £2,700,070).
Revenue recognition
Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the group’s activities. Turnover is shown net of value added tax, returns, rebates and discounts and after eliminating sales within the group.
The group recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the group's activities.
Omega Plastics Group Limited
Notes to the Financial Statements for the Year Ended 31 March 2020 (continued)
|
2 |
Accounting policies (continued) |
Tax
The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a charge attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the group operates and generates taxable income.
Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the consolidated financial statements. Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.
Tangible assets
Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
Depreciation
Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:
|
Asset class |
Depreciation method and rate |
|
|
Computer equipment |
15% reducing balance / 25% straight line |
|
|
Motor vehicles |
20% / 25% straight line |
|
|
Fixtures and fittings |
12.5% / 20% straight line |
|
|
Plant and machinery |
10% reducing balance / 10% straight line |
|
|
Durable tools |
50% straight line |
|
|
Factory / property improvements |
10% straight line |
Business combinations
Business combinations are accounted for using the purchase method. The consideration for each acquisition is measured at the aggregate of the fair values at acquisition date of assets given, liabilities incurred or assumed, and equity instruments issued by the group in exchange for control of the acquired, plus any costs directly attributable to the business combination. When a business combination agreement provides for an adjustment to the cost of the combination contingent on future events, the group includes the estimated amount of that adjustment in the cost of the combination at the acquisition date if the adjustment is probable and can be measured reliably.
Goodwill
Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the group’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each reporting period date. Goodwill is amortised over its useful life, which shall not exceed ten years if a reliable estimate of the useful life cannot be made.
Omega Plastics Group Limited
Notes to the Financial Statements for the Year Ended 31 March 2020 (continued)
|
2 |
Accounting policies (continued) |
Amortisation
Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:
|
Asset class |
Amortisation method and rate |
|
Goodwill |
7-10 years straight line |
Investments
Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment. Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable.
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
Debtors
Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.
Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the group will not be able to collect all amounts due according to the original terms of the receivables.
Inventories
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.
The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are 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.
Creditors
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the group does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.
Omega Plastics Group Limited
Notes to the Financial Statements for the Year Ended 31 March 2020 (continued)
|
2 |
Accounting policies (continued) |
Borrowings
Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Income Statement over the period of the relevant borrowing.
Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.
Borrowings are classified as current liabilities unless the group has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
Leases
Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.
Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the Statement of Financial Position as a finance lease obligation.
Lease payments are apportioned between finance costs in the Income Statement and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.
Share capital
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.
Dividends
Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the group has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
Omega Plastics Group Limited
Notes to the Financial Statements for the Year Ended 31 March 2020 (continued)
|
Revenue |
The analysis of the group's revenue for the year from continuing operations is as follows:
|
2020 |
2019 |
|
|
Sale of goods |
|
|
The analysis of the group's turnover for the year by market is as follows:
|
2020 |
2019 |
|
|
UK |
|
|
|
Europe |
|
|
|
|
|
|
Other operating income |
The analysis of the group's other operating income for the year is as follows:
|
2020 |
2019 |
|
|
Government grants |
- |
|
|
Miscellaneous other operating income |
- |
|
|
- |
|
|
Operating loss |
Arrived at after charging/(crediting)
|
2020 |
2019 |
|
|
Depreciation expense |
|
|
|
Amortisation expense |
|
|
|
Impairment loss |
|
- |
|
Operating lease expense - plant and machinery |
( |
|
|
(Profit)/loss on disposal of property, plant and equipment |
( |
|
Omega Plastics Group Limited
Notes to the Financial Statements for the Year Ended 31 March 2020 (continued)
|
Other interest receivable and similar income |
|
2020 |
2019 |
|
|
Interest income on bank deposits |
- |
|
|
Interest payable and similar expenses |
|
2020 |
2019 |
|
|
Interest on bank overdrafts and borrowings |
( |
|
|
Interest on obligations under finance leases and hire purchase contracts |
|
|
|
Interest expense on other finance liabilities |
|
- |
|
|
|
|
Staff costs |
The aggregate payroll costs (including directors' remuneration) were as follows:
|
2020 |
2019 |
|
|
Wages and salaries |
|
|
|
Social security costs |
|
|
|
Pension costs, defined contribution scheme |
|
|
|
|
|
The average number of persons employed by the group (including directors) during the year, analysed by category was as follows:
|
2020 |
2019 |
|
|
Other departments |
|
|
|
|
|
Omega Plastics Group Limited
Notes to the Financial Statements for the Year Ended 31 March 2020 (continued)
|
Directors' remuneration |
The directors' remuneration for the year was as follows:
|
2020 |
2019 |
|
|
Remuneration |
|
|
|
Contributions paid to money purchase schemes |
|
- |
|
230,508 |
57,169 |
|
Auditors' remuneration |
|
2020 |
2019 |
|
|
Audit of these financial statements |
13,500 |
11,250 |
The above fees comprise of the audit fee of £2,500 (2019 - £4,500) for the group company and £11,000 (2019 - £11,000) for the audit of it's subsidiaries.
|
Taxation |
Tax charged/(credited) in the income statement
|
2020 |
2019 |
|
|
Current taxation |
||
|
UK corporation tax |
( |
( |
|
UK corporation tax adjustment to prior periods |
( |
- |
|
(277,881) |
(302,382) |
|
|
Deferred taxation |
||
|
Arising from origination and reversal of timing differences |
( |
( |
|
Tax receipt in the income statement |
( |
( |
Omega Plastics Group Limited
Notes to the Financial Statements for the Year Ended 31 March 2020 (continued)
|
11 |
Taxation (continued) |
The tax on profit before tax for the year is the same as the standard rate of corporation tax in the UK (2019 - the same as the standard rate of corporation tax in the UK) of
The differences are reconciled below:
|
2020 |
2019 |
|
|
Loss before tax |
( |
( |
|
Corporation tax at standard rate |
( |
( |
|
Effect of expense not deductible in determining taxable profit (tax loss) |
|
|
|
Effect of tax losses |
( |
( |
|
Deferred tax expense relating to changes in tax rates or laws |
|
|
|
Tax decrease arising from group relief |
( |
( |
|
Tax decrease from effect of adjustment in research and development tax credit |
( |
( |
|
Other tax effects for reconciliation between accounting profit and tax expense (income) |
|
|
|
Total tax credit |
( |
( |
Deferred tax
Group
Deferred tax assets and liabilities
|
2020 |
Liability |
|
Fixed asset timing differences |
|
|
Short-term timing differences |
( |
|
Tax losses carry-forwards |
( |
|
|
|
2019 |
Liability |
|
Fixed asset timing differences |
|
|
Short-term timing differences |
( |
|
Tax losses carry-forwards |
( |
|
|
Omega Plastics Group Limited
Notes to the Financial Statements for the Year Ended 31 March 2020 (continued)
|
Intangible assets |
Group
|
Goodwill |
Total |
|
|
Cost or valuation |
||
|
At 1 April 2019 |
|
|
|
At 31 March 2020 |
|
|
|
Amortisation |
||
|
At 1 April 2019 |
|
|
|
Amortisation charge |
|
|
|
At 31 March 2020 |
|
|
|
Carrying amount |
||
|
At 31 March 2020 |
|
|
|
At 31 March 2019 |
|
|
Omega Plastics Group Limited
Notes to the Financial Statements for the Year Ended 31 March 2020 (continued)
|
Tangible assets |
Group
|
Short leasehold land and buildings |
Fixtures and fittings |
Plant and machinery |
Office equipment |
Motor vehicles |
Durable tools |
Total |
|
|
Cost or valuation |
|||||||
|
At 1 April 2019 |
|
|
|
|
|
|
|
|
Additions |
|
|
|
|
- |
- |
|
|
Disposals |
- |
- |
- |
- |
( |
- |
( |
|
At 31 March 2020 |
|
|
|
|
|
|
|
|
Depreciation |
|||||||
|
At 1 April 2019 |
|
|
|
|
|
|
|
|
Charge for the year |
|
|
|
|
|
|
|
|
Eliminated on disposal |
- |
- |
- |
- |
( |
- |
( |
|
Impairment |
- |
- |
- |
- |
|
- |
|
|
At 31 March 2020 |
|
|
|
|
|
|
|
|
Carrying amount |
|||||||
|
At 31 March 2020 |
|
|
|
|
|
- |
|
|
At 31 March 2019 |
|
|
|
|
|
|
|
Included within the net book value of land and buildings above is £180,100 (2019 - £192,394) in respect of short leasehold land and buildings.
Omega Plastics Group Limited
Notes to the Financial Statements for the Year Ended 31 March 2020 (continued)
|
13 |
Tangible assets (continued) |
Assets held under finance leases and hire purchase contracts
The net carrying amount of tangible assets includes the following amounts in respect of assets held under finance leases and hire purchase contracts:
|
2020 |
2019 |
|
|
Plant and machinery |
1,592,038 |
1,836,245 |
|
Motor vehicles |
11,700 |
21,053 |
|
1,603,738 |
1,857,298 |
|
Investments |
Company
|
2020 |
2019 |
|
|
Investments in subsidiaries |
|
|
|
Subsidiaries |
£ |
|
Cost or valuation |
|
|
At 1 April 2019 |
|
|
Additions |
|
|
At 31 March 2020 |
|
|
Provision |
|
|
At 1 April 2019 |
- |
|
At 31 March 2020 |
- |
|
Carrying amount |
|
|
At 31 March 2020 |
|
|
At 31 March 2019 |
|
Omega Plastics Group Limited
Notes to the Financial Statements for the Year Ended 31 March 2020 (continued)
|
14 |
Investments (continued) |
Details of undertakings
Details of the investments (including principal place of business of unincorporated entities) in which the company holds 20% or more of the nominal value of any class of share capital are as follows:
|
Undertaking |
Registered office |
Holding |
Proportion of voting rights and shares held |
|
|
2020 |
2019 |
|||
|
Subsidiary undertakings |
||||
|
|
Omega Plastics Kingsway South
|
Ordinary |
|
|
|
England & Wales |
||||
|
|
Omega Plastics Kingsway South
|
Ordinary |
|
|
|
England & Wales |
||||
|
Subsidiary undertakings |
|
Omega North East Limited The principal activity of Omega North East Limited is |
|
Signal Plastic Components Limted The principal activity of Signal Plastic Components Limted is |
|
Stocks |
|
Group |
Company |
|||
|
2020 |
2019 |
2020 |
2019 |
|
|
Inventories |
|
|
- |
- |
Omega Plastics Group Limited
Notes to the Financial Statements for the Year Ended 31 March 2020 (continued)
|
Debtors |
|
Group |
Company |
||||
|
Note |
2020 |
2019 |
2020 |
2019 |
|
|
Trade debtors |
2,498,588 |
2,663,144 |
- |
- |
|
|
Amounts owed by related parties |
- |
- |
- |
|
|
|
Prepayments |
|
|
- |
- |
|
|
Accrued income |
|
- |
- |
- |
|
|
Corporation tax asset |
|
|
- |
- |
|
|
|
|
- |
|
||
|
Cash and cash equivalents |
|
Group |
Company |
|||
|
2020 |
2019 |
2020 |
2019 |
|
|
Cash on hand |
|
- |
- |
- |
|
Cash at bank |
|
|
- |
- |
|
|
|
- |
- |
|
|
Creditors |
|
Group |
Company |
||||
|
Note |
2020 |
2019 |
2020 |
2019 |
|
|
Due within one year |
|||||
|
Loans and borrowings |
|
|
- |
- |
|
|
Trade creditors |
|
|
- |
- |
|
|
Amounts due to related parties |
- |
- |
|
- |
|
|
Social security and other taxes |
|
|
- |
- |
|
|
Outstanding defined contribution pension costs |
|
- |
- |
- |
|
|
Other creditors |
|
|
- |
- |
|
|
Accruals |
|
|
- |
- |
|
|
Directors loan accounts |
- |
183,692 |
- |
- |
|
|
|
|
|
- |
||
|
Due after one year |
|||||
|
Loans and borrowings |
|
|
- |
- |
|
|
Other non-current financial liabilities |
|
- |
- |
- |
|
|
1,243,679 |
1,204,409 |
- |
- |
||
Omega Plastics Group Limited
Notes to the Financial Statements for the Year Ended 31 March 2020 (continued)
|
Loans and borrowings |
|
Group |
Company |
|||
|
2020 |
2019 |
2020 |
2019 |
|
|
Current loans and borrowings |
||||
|
Bank borrowings |
|
|
- |
- |
|
Hire Purchase and finance lease liabilities |
385,288 |
439,204 |
- |
- |
|
Invoice discount facility |
|
|
- |
- |
|
|
|
- |
- |
|
|
Group |
Company |
|||
|
2020 |
2019 |
2020 |
2019 |
|
|
Non-current loans and borrowings |
||||
|
Bank borrowings |
|
|
- |
- |
|
Hire purchase and finance lease liabilities |
501,727 |
832,008 |
- |
- |
|
Directors loan accounts |
|
- |
- |
- |
|
|
|
- |
- |
|
The bank borrowings comprise of an interest bearing Funding Circle loan which is unsecured.
Hire purchase and finance lease liabilities are secured against the asset to which they relate.
Invoice discount facility is secured against the debtor balances which have been advanced.
|
Provisions for liabilities |
Group
|
Deferred tax |
Total |
|
|
At 1 April 2019 |
|
|
|
Increase (decrease) in existing provisions |
( |
( |
|
At 31 March 2020 |
|
|
Omega Plastics Group Limited
Notes to the Financial Statements for the Year Ended 31 March 2020 (continued)
|
Pension and other schemes |
Defined contribution pension scheme
The group operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the group to the scheme and amounted to £
Contributions totalling £
|
Share capital |
Allotted, called up and fully paid shares
|
2020 |
2019 |
|||
|
No. |
£ |
No. |
£ |
|
|
|
|
43,700 |
|
43,700 |
|
Reserves |
Group
Called up share capital
This reserve records the nominal value of the consideration for the shares.
Share premium reserve
This reserve records the value received for shares in excess of their par value.
Capital redemption reserve
This is a non-distributable reserve into which amounts are transferred following the redemption / purchase of the company's own shares.
Profit and loss account
This reserve records the retained earnings and accumulated losses.
Omega Plastics Group Limited
Notes to the Financial Statements for the Year Ended 31 March 2020 (continued)
|
Obligations under leases and hire purchase contracts |
Group
Finance leases
The total of future minimum lease payments is as follows:
|
2020 |
2019 |
|
|
Not later than one year |
|
|
|
Later than one year and not later than five years |
|
|
|
|
|
|
Dividends |
Interim dividends paid
|
2020 |
2019 |
|||
|
Interim dividend of £ |
|
|
||
|
Contingent liabilities |
Company
On 12th December 2017 the company issued a loan note instrument constituting up to £150,000 unsecured loans, which crystalise only on the sale of the business.
Omega Plastics Group Limited
Notes to the Financial Statements for the Year Ended 31 March 2020 (continued)
|
Analysis of changes in net debt |
Group
|
At 1 April 2019 |
Financing cash flows |
New finance leases |
Other non-cash changes |
At 31 March 2020 |
|
|
Cash and cash equivalents |
|||||
|
Cash |
670,434 |
(584,888) |
- |
- |
85,546 |
|
Borrowings |
|||||
|
Long term borrowings |
(372,401) |
(133,662) |
- |
(197,561) |
(703,624) |
|
Short term borrowings |
(274,917) |
(5,542) |
- |
183,692 |
(96,767) |
|
Lease liabilities |
(1,271,212) |
440,836 |
(56,639) |
- |
(887,015) |
|
Invoice discount facility |
(1,151,462) |
412,747 |
- |
- |
(738,715) |
|
(3,069,992) |
714,379 |
(56,639) |
(13,869) |
(2,426,121) |
|
|
( |
|
( |
( |
( |
|
|
Related party transactions |
Group
The group has taken advantage under paragraph 33.1 A of FRS 102, of not disclosing transactions with other group companies.
|
Transactions with directors |
|
2020 |
At 1 April 2019 |
Advances to directors |
Repayments by director |
At 31 March 2020 |
|
C Thompson |
||||
|
Loan |
85,265 |
|
( |
|
|
D Crone |
||||
|
Loan |
98,427 |
|
( |
|
|
2019 |
At 1 April 2018 |
Advances to directors |
Repayments by director |
At 31 March 2019 |
|
C Thompson |
||||
|
Loan |
95,633 |
|
( |
|
|
D Crone |
||||
|
Loan |
98,258 |
|
( |
|
Omega Plastics Group Limited
Notes to the Financial Statements for the Year Ended 31 March 2020 (continued)
|
Ultimate controlling party |
The ultimate controlling party is considered to be