SANDERS_POLYFILMS_LIMITED - Accounts
SANDERS_POLYFILMS_LIMITED - Accounts
Company Registration No. 02077853 (England and Wales)
ANNUAL REPORT
FOR THE YEAR ENDED 31 DECEMBER 2014
DIRECTORS AND ADVISERS
Directors
Secretary
Company number
Registered office
United Kingdom
Accountants
Business address
Westfields Trading Estate,
United Kingdom
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditors' report
5 - 6
Consolidated profit and loss account
7
Statement of recognised gains and losses
8
Balance sheets
9
Consolidated cash flow statement
10
Notes to the consolidated cash flow statement
11
Notes to the financial statements
12 - 26
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2014
- 1 -
The directors present the strategic report and financial statements for the year ended 31 December 2014.
Review of the business
The principal activity of the group continued to be that of the manufacture, sales and marketing of Collation Shrinkfilms.
In difficult market conditions the group's turnover decreased by 6.6% in comparison with the previous year. This was as a result of a number of factors including a change in customer mix and a reduction in the price of Polymer. Operating profit has increased by 19.6% over the period, mainly as a result of progress with our Productivity Improvement Programme and falling crude oil prices delivering lower cost of sales.
The consolidated balance sheet of the financial statements shows an increase of 11.7% in the net assets, mainly as a result of the profit achieved in the year.
Environmental and social responsibility
The group takes its environmental and social responsibilities very seriously, understanding the importance of the contribution the group makes.
Employees
The group aims to ensure its workforce are safe, healthy and fulfilled. To such end the group has in place comprehensive health & safety and training policies alongside regular employee appraisals and consultations. Details of the number of employees and related costs can be found in note 22 to the financial statements.
Key financial highlights are as follows:
2014 2013
£ £
Turnover 23,138,780 24,764,271
Profit before tax 443,589 330,310
Gross profit margin for the year ended 31 December 2014 was 11.1% (2013: 10.3%).
Financial Instruments and principal risks
The group's business is subject to uncertainties arising from polymer price instability, competitor activity and the reaction of customers to the economic climate in the UK and throughout Europe.
These risks are balanced through a selection of strategic relationships, delivering moderation to difficult circumstances, which combined with our actions, keep the group on track.
The group is financed through a mix of cash, loans and invoice discounting. The main risks arising from this mix of funding are interest rate fluctuations, random events in the banking sector, and the global economic status.
It is our policy to review funding requirements of the group periodically, in line with our projected cash flow requirements as determined by our operating strategy, and keeping loan exposure at acceptable levels.
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2014
- 2 -
Future developments
The directors consider that 2015 will be no less challenging than recent years. In response the group will continue to adjust its Operation as required to maintain continuous supply of Quality Products matching our Customer's needs.
On behalf of the board
..............................
Director
.........................
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2014
- 3 -
The directors present their report and financial statements for the year ended 31 December 2014.
Results and dividends
The consolidated profit and loss account for the year is set out on page 7.
The directors do not recommend the payment of an equity dividend (2013: £nil).
Directors
The following directors have held office since 1 January 2014:
Auditors
Ward Williams were appointed auditors to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.
Statement of directors' responsibilities
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 group 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 then 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;
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the group 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 the group 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 the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2014
- 4 -
Statement of disclosure to auditors
On behalf of the board
Director
INDEPENDENT AUDITORS' REPORT
TO THE MEMBERS OF SANDERS POLYFILMS LIMITED
- 5 -
We have audited the group and parent company financial statements (the "financial statements") of Sanders Polyfilms Limited for the year ended 31 December 2014 set out on pages 7 to 26. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
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 auditors' 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.
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 auditors' 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.
Respective responsibilities of directors and auditors
As explained more fully in the Directors' Responsibilities Statement set out on pages 3 - 4, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view. Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board's Ethical Standards for Auditors.
Scope of the audit of the financial statements
An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error. This includes an assessment of: whether the accounting policies are appropriate to the company's circumstances and have been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by the directors; and the overall presentation of the financial statements. In addition, we read all the financial and non-financial information in the Annual Report to identify material inconsistencies with the audited financial statements. If we become aware of any apparent material misstatements or inconsistencies we consider the implications for our report.
Opinion on financial statements
-
give a true and fair view of the state of the group's and parent company's affairs as at 31 December 2014 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.
Opinion on other matter prescribed by the Companies Act 2006
In our opinion the information given in the Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements.
INDEPENDENT AUDITORS' REPORT (CONTINUED)
TO THE MEMBERS OF SANDERS POLYFILMS LIMITED
- 6 -
Matters on which we are required to report by exception
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.
for and on behalf of Ward Williams
Chartered Accountants
Statutory Auditor
CONSOLIDATED PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2014
- 7 -
2014
2013
Notes
£
£
Turnover
2
23,138,780
24,764,271
Cost of sales
(20,571,211)
(22,222,879)
Gross profit
2,567,569
2,541,392
Administrative expenses
(1,914,855)
(1,995,495)
Operating profit
3
652,714
545,897
Other interest receivable and similar income
17,209
7,134
Interest payable and similar charges
4
(226,334)
(222,721)
Profit on ordinary activities before taxation
443,589
330,310
Tax on profit on ordinary activities
5
(99,689)
(47,868)
Profit on ordinary activities after taxation
343,900
282,442
The profit and loss account has been prepared on the basis that all operations are continuing operations.
STATEMENT OF RECOGNISED GAINS AND LOSSES
FOR THE YEAR ENDED 31 DECEMBER 2014
- 8 -
2014
2013
£
£
Profit for the financial year
343,900
282,442
Unrealised (deficit)/surplus on revaluation of properties
-
111,110
343,900
393,552
Currency translation differences on foreign currency net investments
(19,297)
8,223
Total recognised gains and losses relating to the year
324,603
401,775
BALANCE SHEETS
AS AT
31 DECEMBER 2014
- 9 -
Group
Company
2014
2013
2014
2013
Notes
£
£
£
£
Fixed assets
Intangible assets
7
-
(71,567)
-
-
Tangible assets
8
3,624,965
3,831,499
Investments
9
-
-
3,624,965
3,759,932
Current assets
Stocks
10
1,264,487
2,305,860
Debtors
11
5,007,478
5,409,356
Cash at bank and in hand
122,935
133,723
6,394,900
7,848,939
Creditors: amounts falling due within one year
12
(4,949,573)
(6,739,156)
(3,828,403 )
(5,809,485 )
Net current assets
1,445,327
1,109,783
Total assets less current liabilities
5,070,292
4,869,715
Creditors: amounts falling due after more than one year
13
(1,808,951)
(1,929,477)
(1,808,951 )
(1,929,477 )
Provisions for liabilities
14
(174,000)
(177,500)
(174,000 )
(177,500 )
3,087,341
2,762,738
Capital and reserves
Called up share capital
16
125,000
125,000
Share premium account
17
335,000
335,000
Revaluation reserve
17
174,717
174,717
-
-
Profit and loss account
17
2,452,624
2,128,021
Shareholders' funds
18
3,087,341
2,762,738
Approved by the Board and authorised for issue on 11 May 2015
Director
Company Registration No. 2077853
CONSOLIDATED CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2014
- 10 -
2014
2013
£
£
£
£
Net cash inflow from operating activities
434,774
821,927
Returns on investments and servicing of finance
Interest received
17,209
7,134
Interest paid
(226,334)
(222,721)
Net cash outflow for returns on investments and servicing of finance
(209,125)
(215,587)
Taxation
(63,189)
(63,189)
Capital expenditure
Payments to acquire tangible assets
(194,393)
(256,802)
Receipts from sales of tangible assets
37,000
-
Net cash inflow/(outflow) for capital expenditure
(157,393)
(256,802)
Net cash inflow before management of liquid resources and financing
5,067
221,097
Financing
Other new long term loans
113,822
53,930
Repayment of long term loans
(129,677)
(223,763)
Net cash outflow from financing
(15,855)
(169,833)
(Decrease)/increase in cash in the year
(10,788)
51,264
NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2014
- 11 -
1
Reconciliation of operating profit to net cash inflow from operating activities
2014
2013
£
£
Operating profit
652,714
545,897
Depreciation of tangible assets
349,315
371,092
Amortisation of intangible assets
(71,567)
(71,570)
Profit on disposal of tangible assets
(37,000)
-
Decrease/(increase) in stocks
1,041,373
(594,169)
Decrease in debtors
401,878
131,348
(Decrease)/Increase in creditors within one year
(1,934,254)
411,058
Net effect of foreign exchange differences
32,315
28,271
Net cash inflow from operating activities
434,774
821,927
2
Analysis of net debt
1 January 2014
Cash flow
Other non-cash changes
31 December 2014
£
£
£
£
Net cash:
Cash at bank and in hand
133,723
(10,788)
-
122,935
Finance leases
(123,460)
53,809
-
(69,651)
Debts falling due within one year
(545,448)
(113,822)
-
(659,270)
Debts falling due after one year
(1,859,826)
75,868
-
(1,783,958)
(2,528,734)
15,855
-
(2,512,879)
Net debt
(2,395,011)
5,067
-
(2,389,944)
3
Reconciliation of net cash flow to movement in net debt
2014
2013
£
£
(Decrease)/increase in cash in the year
(10,788)
51,264
Cash outflow from decrease in debt
15,855
169,833
Movement in net debt in the year
5,067
221,097
Opening net debt
(2,395,011)
(2,616,108)
Closing net debt
(2,389,944)
(2,395,011)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2014
- 12 -
1
Accounting policies
1.1
Accounting convention
1.2
Compliance with accounting standards
The financial statements are prepared in accordance with applicable United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), which have been applied consistently (except as otherwise stated).
1.3
Basis of consolidation
The consolidated profit and loss account and balance sheet include the financial statements of the company and its subsidiary undertakings made up to 31 December 2014. The results of subsidiaries sold or acquired are included in the profit and loss account up to, or from the date control passes. Intra-group sales and profits are eliminated fully on consolidation.
1.4
Turnover
1.5
Goodwill
1.6
Tangible fixed assets and depreciation
Land and buildings Freehold
Land and buildings Leasehold
Plant and machinery
Fixtures, fittings & equipment
Motor vehicles
1.7
Leasing and hire purchase commitments
Assets obtained under hire purchase contracts and finance leases are capitalised as tangible assets and depreciated over the shorter of the lease term and their useful lives. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to the profit and loss account so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.
Rentals payable under operating leases are charged against income on a straight line basis over the lease term.
1.8
Investments
Fixed asset investments are stated at cost less provision for diminution in value.
1.9
Stock
Stock is valued at the lower of cost and net realisable value. Cost of finished goods comprises the average purchase price of the raw material plus the directly attributable overheads. Net realisable value is based upon estimated selling price less further costs expected to be incurred to completion and disposal. Provision is made for obsolete and slow-moving items.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2014
1
Accounting policies
(Continued)
- 13 -
1.10
Pensions
The company operates two defined contribution pension schemes. The assets of the schemes are held separately from those of the company in independently administered funds. The pension cost charge represents contributions payable by the company to the funds.
1.11
Deferred taxation
Deferred taxation is provided in full in respect of taxation deferred by timing differences between the treatment of certain items for taxation and accounting purposes. The deferred tax balance has not been discounted.
1.12
Foreign currency translation
Monetary assets and liabilities denominated in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction. All differences are taken to the profit and loss account.
2
Turnover
The total turnover of the group for the year has been derived from its principal activity.
Segmental analysis by geographical area
The analysis by geographical area of the group's turnover is set out as below:
2014
2013
£
£
Geographical segment
United Kingdom
15,358,720
17,812,420
European Union
6,611,807
5,933,418
Rest of world
1,168,253
1,018,433
23,138,780
24,764,271
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2014
- 14 -
3
Operating profit
2014
2013
£
£
Operating profit is stated after charging:
Amortisation of intangible assets
(71,567)
(71,570)
Depreciation of tangible assets
349,315
371,092
Loss on foreign exchange transactions
1,769
4,264
Operating lease rentals
89,000
88,892
and after crediting:
Profit on disposal of tangible assets
(37,000)
-
Auditors' remuneration
Fees payable to the group's auditor for the audit of the group's annual accounts
16,500
16,000
Tax compliance
6,381
3,800
22,881
19,800
4
Interest payable
2014
2013
£
£
On bank loans and overdrafts
50,384
42,316
Hire purchase interest
10,520
18,139
On amounts payable to factors
29,814
27,847
Other interest
135,616
134,419
226,334
222,721
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2014
- 15 -
5
Taxation
2014
2013
£
£
Domestic current year tax
U.K. corporation tax
80,000
40,000
Adjustment for prior years
6,253
(908)
86,253
39,092
Foreign corporation tax
Foreign corporation tax
9,607
11,299
Other foreign tax
7,329
7,977
16,936
19,276
Total current tax
103,189
58,368
Deferred tax
Deferred tax charge/credit current year
(3,500)
(10,500)
99,689
47,868
Factors affecting the tax charge for the year
Profit on ordinary activities before taxation
443,589
330,310
Profit on ordinary activities before taxation multiplied by standard rate of UK corporation tax of 21.13% (2013 - 20%)
93,730
66,062
Effects of:
Non deductible expenses
18,970
30,914
Depreciation add back
61,556
54,070
Capital allowances
(58,020)
(69,703)
Foreign tax adjustments
(16,936)
(19,276)
Adjustments to previous periods
6,253
(908)
Other tax adjustments
(2,364)
(2,791)
9,459
(7,694)
Current tax charge for the year
103,189
58,368
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2014
- 16 -
6
Profit for the financial year
As permitted by section 408 Companies Act 2006, the holding company's profit and loss account has not been included in these financial statements. The profit for the financial year is made up as follows:
2014
2013
£
£
Holding company's profit for the financial year
227,188
219,386
7
Intangible fixed assets
Group
Goodwill
£
Cost
At 1 January 2014 & at 31 December 2014
(342,290)
Amortisation
At 1 January 2014
(270,723)
Charge for the year
(71,567)
At 31 December 2014
(342,290)
Net book value
At 31 December 2014
-
At 31 December 2013
(71,567)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2014
- 17 -
8
Tangible fixed assets
Group
Land and buildings Freehold
Land and buildings Leasehold
Plant and machinery
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
£
£
£
Cost or valuation
At 1 January 2014
2,469,276
144,961
6,691,041
978,795
187,330
10,471,403
Exchange differences
(25,033)
-
(66,328)
(18)
-
(91,379)
Additions
-
-
185,194
9,199
-
194,393
Disposals
-
-
(22,766)
-
-
(22,766)
At 31 December 2014
2,444,243
144,961
6,787,141
987,976
187,330
10,551,651
Depreciation
At 1 January 2014
176,128
144,098
5,333,405
852,761
133,512
6,639,904
Exchange differences
18,515
-
(58,282)
-
-
(39,767)
On disposals
-
-
(22,766)
-
-
(22,766)
Charge for the year
31,968
798
242,515
58,169
15,865
349,315
At 31 December 2014
226,611
144,896
5,494,872
910,930
149,377
6,926,686
Net book value
At 31 December 2014
2,217,632
65
1,292,269
77,046
37,953
3,624,965
At 31 December 2013
2,293,148
863
1,357,636
126,034
53,818
3,831,499
Included above are assets held under finance leases or hire purchase contracts as follows:
Plant and machinery
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
£
Net book values
At 31 December 2014
85,528
7,117
8,920
101,565
At 31 December 2013
95,397
19,317
24,784
139,498
Depreciation charge for the year
31 December 2014
9,869
12,200
15,865
37,934
31 December 2013
3,290
12,200
17,296
32,786
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2014
8
Tangible fixed assets
(Continued)
- 18 -
Company
Land and buildings Freehold
Land and buildings Leasehold
Plant and machinery
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 January 2014
Additions
-
-
-
At 31 December 2014
Depreciation
At 1 January 2014
Charge for the year
At 31 December 2014
Net book value
At 31 December 2014
At 31 December 2013
Included above are assets held under finance leases or hire purchase contracts as follows:
Plant and machinery
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
£
Net book values
At 31 December 2014
101,565
At 31 December 2013
139,498
Depreciation charge for the year
31 December 2014
37,934
31 December 2013
32,786
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2014
- 19 -
9
Fixed asset investments
Company
Shares in group undertakings
£
Cost
At 1 January 2014 & at 31 December 2014
1,065,000
Provisions for diminution in value
At 1 January 2014 & at 31 December 2014
725,000
Net book value
At 31 December 2014
At 31 December 2013
In the opinion of the the aggregate value of the company's investment in subsidiary undertakings is not less than the amount included in the balance sheet.
Holdings of more than 20%
The company holds more than 20% of the share capital of the following companies:
Company
Country of registration or incorporation
Shares held
Class
%
Subsidiary undertakings
Ordinary
Ordinary
Ordinary
The principal activity of these undertakings for the last relevant financial year was as follows:
Principal activity
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2014
- 20 -
10
Stocks
Group
Company
2014
2013
2014
2013
£
£
£
£
Raw materials and consumables
850,725
1,629,621
Finished goods and goods for resale
413,762
676,239
1,264,487
2,305,860
11
Debtors
Group
Company
2014
2013
2014
2013
£
£
£
£
Trade debtors
4,709,188
5,008,011
Amounts owed by group undertakings
-
-
Other debtors
98,207
219,817
Prepayments and accrued income
200,083
181,528
5,007,478
5,409,356
12
Creditors : amounts falling due within one year
Group
Company
2014
2013
2014
2013
£
£
£
£
Bank loans and overdrafts
659,270
428,814
Net obligations under finance lease and hire purchase contracts
44,658
53,809
Trade creditors
2,710,090
3,864,587
Amounts owed to group undertakings
-
-
Corporation tax
80,000
40,000
Taxes and social security costs
428,238
329,772
Other creditors
832,148
1,890,111
Accruals and deferred income
195,169
132,063
4,949,573
6,739,156
Other creditors of £709,605 (2013: £1,427,113) are secured against the trade debtors of the company.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2014
- 21 -
13
Creditors : amounts falling due after more than one year
Group
Company
2014
2013
2014
2013
£
£
£
£
Bank loans
283,958
359,826
Net obligations under finance leases and hire purchase agreements
24,993
69,651
Preference shares classed as a financial liability
1,500,000
1,500,000
1,808,951
1,929,477
Analysis of loans
Not wholly repayable within five years by instalments:
Bank loans
-
447,545
-
447,545
Wholly repayable within five years
366,192
116,634
366,192
116,634
Included in current liabilities
(82,234)
(204,353)
(82,234 )
(204,353 )
283,958
Instalments not due within five years
-
60,417
-
60,417
Loan maturity analysis
In more than one year but not more than two years
72,500
81,909
In more than two years but not more than five years
211,458
217,500
In more than five years
-
-
Preference shares classified as financial liabilities
In more than five years
1,500,000
1,500,000
1,500,000
1,500,000
Net obligations under finance leases and hire purchase contracts
Repayable within one year
44,658
107,618
44,658
53,809
Repayable between one and five years
24,993
69,651
24,993
69,651
69,651
246,920
Included in liabilities falling due within one year
(44,658)
(53,809)
(44,658 )
(53,809 )
24,993
69,651
24,993
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2014
13
Creditors : amounts falling due after more than one year
(Continued)
- 22 -
The bank loans bear interest at rates fixed between 6.810% and 7.284% per annum.
The 7% redeemable cumulative preference shares carry the following rights and rank pari passu in all aspects with the Ordinary shares except:
With certain specific exceptions, the holders of the 7% reedemable cumulative preference shares shall not be entitled to receive notice of, or attend, or vote at any general meetings of the company unless the dividend on the redeemable cumulative preference shares is 12 months in arrears, or the business of the meeting includes the consideration of a resolution for winding up of the company or for the reduction in the capital or any resolution directly or adversely modifying or abrogating any of the special rights and privileges attached to the 7% redeemable cumulative preference shares.
The holders of the reedemable cumulative preference shares shall be entitled in priority to any payment of dividend on any other class of shares to a cumulative preferential dividend of 7% per annum of the capital on those shares payable on 31 March of each year.
The reedemable cumulative preference shares shall on a winding up or reduction of capital to repayment of the capital paid up or credited as paid up thereon plus a sum equal to any arrears or accruals of the fixed cumulative preference shares dividend.
The bank loans are secured by a legal charge over the freehold land and buildings and the investment property, together with an unscheduled mortgage debenture incorporating a fixed and floating charge over all current assets of the company.
The 7% redeemable cumulative preference shares carry the following rights and rank pari passu in all aspects with the Ordinary shares except:
With certain specific exceptions, the holders of the 7% reedemable cumulative preference shares shall not be entitled to receive notice of, or attend, or vote at any general meetings of the company unless the dividend on the redeemable cumulative preference shares is 12 months in arrears, or the business of the meeting includes the consideration of a resolution for winding up of the company or for the reduction in the capital or any resolution directly or adversely modifying or abrogating any of the special rights and privileges attached to the 7% redeemable cumulative preference shares.
The holders of the reedemable cumulative preference shares shall be entitled in priority to any payment of dividend on any other class of shares to a cumulative preferential dividend of 7% per annum of the capital on those shares payable on 31 March of each year.
The reedemable cumulative preference shares shall on a winding up or reduction of capital to repayment of the capital paid up or credited as paid up thereon plus a sum equal to any arrears or accruals of the fixed cumulative preference shares dividend.
The bank loans are secured by a legal charge over the freehold land and buildings and the investment property, together with an unscheduled mortgage debenture incorporating a fixed and floating charge over all current assets of the company.
14
Provisions for liabilities
Group
Deferred taxation
£
Balance at 1 January 2014
177,500
Profit and loss account
(3,500)
Balance at 31 December 2014
174,000
Company
Balance at 1 January 2014
177,500
Profit and loss acount
(3,500)
Balance at 31 December 2014
174,000
The deferred tax liability is made up as follows:
Group
Company
2014
2013
2014
2013
£
£
£
£
Accelerated capital allowances
174,000
177,500
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2014
- 23 -
15
Pension and other post-retirement benefit commitments
Defined contribution
2014
2013
£
£
Contributions payable by the group for the year
43,530
43,742
16
Share capital
2014
2013
£
£
Allotted, called up and fully paid
17
Statement of movements on reserves
Group
Share premium account
Revaluation reserve
Profit and
loss account
loss account
£
£
£
Balance at 1 January 2014
335,000
174,717
2,128,021
Profit for the year
-
-
343,900
Foreign currency translation differences
-
-
(19,297)
Balance at 31 December 2014
335,000
174,717
2,452,624
Company
Share premium account
Profit and
loss account
loss account
£
£
Balance at 1 January 2014
Profit for the year
-
Balance at 31 December 2014
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2014
- 24 -
18
Reconciliation of movements in shareholders' funds
2014
2013
Group
£
£
Profit for the financial year
343,900
282,442
Other recognised gains and losses
(19,297)
119,333
Net addition to shareholders' funds
324,603
401,775
Opening shareholders' funds
2,762,738
2,360,963
Closing shareholders' funds
3,087,341
2,762,738
2014
2013
Company
£
£
Profit for the financial year
Opening shareholders' funds
Closing shareholders' funds
19
Contingent liabilities
Group
On 1 January 2013, Sanders Polyfilms Limited provided a Parent Company Guarantee to a supplier on behalf of Romfilms Srl. This guarantee expires on 31 December 2016, and the Company is liable for any amounts outstanding by Romfilms Srl.
On 5 November 2014, Sanders Polyfilms Limited provided a Parent Company Guarantee to a supplier on behalf of Romfilms Srl. This guarantee expires on 31 December 2015, and the Company is liable for any amounts outstanding up to 500,000 Euros.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2014
- 25 -
20
Financial commitments
At 31 December 2014 the group had annual commitments under non-cancellable operating leases as follows:
Land and buildings
2014
2013
£
£
Expiry date:
Within one year
62,904
-
Between two and five years
-
70,000
62,904
70,000
At 31 December 2014 the company had annual commitments under non-cancellable operating leases as follows:
Land and buildings
2014
2013
£
£
Expiry date:
Within one year
-
Between two and five years
-
21
Directors' remuneration
2014
2013
£
£
Remuneration for qualifying services
296,209
303,542
Company pension contributions to defined contribution schemes
27,309
27,496
323,518
331,038
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 4 (2013 - 4).
Remuneration disclosed above include the following amounts paid to the highest paid director:
Remuneration for qualifying services
106,220
99,086
Company pension contributions to defined contribution schemes
5,812
5,812
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2014
- 26 -
22
Employees
Number of employees
The average monthly number of employees (including directors) during the year was:
2014
2013
Number
Number
Office and mangement
25
25
Manufacturing
68
69
93
94
Employment costs
2014
2013
£
£
Wages and salaries
1,980,539
1,970,458
Social security costs
256,318
269,583
Other pension costs
43,530
43,742
2,280,387
2,283,783
23
Control
No one party has overall control over the holding company of the Sanders Polyfilms Limited Group.