Trimite Technologies Limited - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: 06736940 (England and Wales)

Financial Statements

for the Year Ended 31 March 2021

for

TRIMITE TECHNOLOGIES LIMITED

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3

Directors:

S P Thornhill

M Cobb

Registered office:

1 Dover Street

Birmingham

B18 5HW

Registered number:

06736940 (England and Wales)

Auditors:

Haines Watts Birmingham LLP

5-6 Greenfield Crescent

Edgbaston

Birmingham

B15 3BE

Bankers:

HSBC UK Bank plc

1 Centenary Square

Birmingham

B1 1HQ

Fixed assets

Intangible assets

4

-

-

Tangible assets

5

146,389

181,273

146,389

181,273

Current assets

Stocks

6

477,176

468,136

Debtors

7

3,027,157

1,544,036

Cash at bank

89,793

148,397

3,594,126

2,160,569

Creditors

Amounts falling due within one year

8

1,819,916

1,106,213

Net current assets

1,774,210

1,054,356

Total assets less current liabilities

1,920,599

1,235,629

Capital and reserves

Called up share capital

10

2

2

Retained earnings

1,920,597

1,235,627

Shareholders' funds

1,920,599

1,235,629

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 31 March 2022 and were signed on its behalf by:

M Cobb - Director

1.	Statutory information

Trimite Technologies Limited is a private company limited by shares and incorporated in England and Wales. Registered number 06736940. The registered head office is located at 1 Dover Street, Birmingham, B18 5HW.The financial statements are presented in sterling (£).

The principle activity of the company is the manufacture of paints and similar coatings. The financial statements are prepared for the year ended 31 March 2021.

2.	Accounting policies

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Going Concern

The net debt position of the Trimite Top Co Limited group, of which Trimite Technologies Limited forms a part, is carefully managed and the business retains an excellent relationship with the primary lender, Duke Royalty UK Limited, who remains supportive of the group's medium term strategy and growth plans.

The directors obtained a pledge of continued financial support from the ultimate parent company, Trimite Top Co Limited until at least 31 March 2023.

On this basis the directors consider that the company has sufficient resources to continue operating as a going concern for a period of at least twelve months from the date of signing the financial statements. The financial statements have therefore been prepared on a going concern basis.

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sales of goods

Revenue from the sale of good is recognised when all the following conditions are satisfied:

- the Company has transferred the significant risks and rewards of ownership to the buyer

- the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;

- the amount of revenue can be measured reliably;

- it is probable that the Company will receive consideration due under the transaction; and

- the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Revenue is generally recognised on dispatch.

Intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight line method.

Depreciation is provided on the following basis:

Freehold property

- 5 years straight line

Plant and machinery

- 4 to 10 years straight line

Motor vehicles

- 3 years straight line

Fixtures and fittings

- 1 to 8 years straight line

The assets residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the Statement of comprehensive income.

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At the balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to it selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

Financial instruments

The Company only enters into basic financial instrument transactions that result in the recognition of the financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties and loans to related parties.

Debt instruments (other than those wholly repayable and receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received.

Financial assets that are measured at cost and amortised costs are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of Comprehensive Income.

For financial assets measured at amorotised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows, discounted at the rate for measuring any impairment loss is the current effective interest rate determined under the contract.

For financial assets measured at cost less impairment, the impairment loss is measured as the differences between an asset;s carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the Company would receive for the asset if it were to be sold at the reporting date.

Financial assets and liabilities are offset and the net amount reported in the Balance sheet when there is an enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Current and deferred taxation

The tax expense for the year compromises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, expect that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

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 Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the Statement of Financial Position date, except that:

- The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and

- Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

Operating leases: the company as lessee

Rentals paid under operating leases are charged to the Statement of comprehensive income on straight line basis over the lease term.

Debtors

Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction cost, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with significant risk of change in value.

Creditors

Short term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

Finance costs

Finance costs are charged to the Statement of Comprehensive Income over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

Exceptional items

Exceptional items are transactions that fall within the ordinary activities of the Company but are presented separately due to their size or incidence.

Government grants

Grants of a revenue nature are recognised in other operating income within profit or loss in the same period as the related expenditure. This includes the Government Coronavirus Job Retention Scheme ('Furlough').

Pensions

The Company operated a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in the Statement of comprehensive income when they fall due. Amounts not paid are shown in accruals as a liability in the Balance sheet, The assets of the plan are held separately from the Company in independently administered funds.

Provisions for liabilities

Provisions are made where an event has taken place that gives the Company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.

Provisions are charged as an expense to the Statement of comprehensive income in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the Balance sheet date of the expenditure required to settle the obligation, talking into account relevant risks and uncertainties.

When payments are eventually made, they are charged to the provision carried in the Balance sheet.

3.	Employees and directors

The average number of employees during the year was 13 (2020 - 11 ) .

4.	Intangible fixed assets

Intellectual

property

£

Cost

At 1 April 2020

and 31 March 2021

60,152

Amortisation

At 1 April 2020

and 31 March 2021

60,152

Net book value

At 31 March 2021

-

At 31 March 2020

-

5.	Tangible fixed assets

Fixtures

Freehold

Plant and

and

property

machinery

fittings

Totals

£

£

£

£

Cost

At 1 April 2020

40,171

524,683

352,005

916,859

Additions

-

11,038

8,134

19,172

At 31 March 2021

40,171

535,721

360,139

936,031

Depreciation

At 1 April 2020

36,734

362,545

336,307

735,586

Charge for year

1,748

42,192

10,116

54,056

At 31 March 2021

38,482

404,737

346,423

789,642

Net book value

At 31 March 2021

1,689

130,984

13,716

146,389

At 31 March 2020

3,437

162,138

15,698

181,273

6.

Stocks

2021

2020

£

£

Raw materials

54,178

80,134

Finished goods

422,998

388,002

477,176

468,136

7.

Debtors: amounts falling due within one year

2021

2020

£

£

Trade debtors

764,043

712,518

Amounts owed by group undertakings

2,221,666

806,898

Amounts owed by participating interests

19,680

2,023

Corporation tax

15,948

15,948

Prepayments and accrued income

5,820

6,649

3,027,157

1,544,036

Amounts owed by group undertakings and related parties are interest free, unsecured and repayable on demand.

8.

Creditors: amounts falling due within one year

2021

2020

£

£

Trade creditors

210,106

237,707

Amounts owed to group undertakings

691,721

82,933

Social security and other taxes

35,294

22,570

VAT

138,955

79,078

Other creditors

5,043

4,779

Invoice discounting facility

658,017

642,509

Accruals and deferred income

80,780

36,637

1,819,916

1,106,213

The invoice discounting facility is secured by a fixed and floating charge on the Company's assets.

Amounts owed to group undertakings are interest free and repayable on demand.

9.	Leasing agreements

Minimum lease payments under non-cancellable operating leases fall due as follows:

2021

2020

£

£

Within one year

82,852

85,897

Between one and five years

83,894

166,746

166,746

252,643

10.	Called up share capital

Allotted, issued and fully paid:

Number:

Class:

Nominal

2021

2020

value:

£

£

2

Ordinary

1

2

2

11.	Disclosure under Section 444(5B) of the Companies Act 2006

The Report of the Auditors was unqualified.

We draw attention to note 2 in the Financial Statements and to the Consolidated Financial Statements of Trimite Top Co Limited, of which Trimite Technologies Limited forms a part.

These accounts show that the group incurred a net loss of £1.7M during the year ended 31 March 2021 and, as of that date, the group's current liabilities exceeded the total assets by £11.5M and it's total liabilities exceeded total assets by £6.1M.

These conditions indicate the existence of a material uncertainty which may cast significant doubt over the company and group's ability to continue as a going concern. The financial statements do not include the adjustments that would result if the company or group were unable to continue as a going concern.

The group is reliant on its primary lender, Duke Royalty UK Limited, who remains supportive of the group's medium term strategy

and growth plans. The group has received a pledge of continued financial support from Duke Royalty UK Limited until at least 31

March 2023.

We also draw attention to the contingent liabilities note within the financial statements which states that, as a result of prevailing

market conditions, whilst the group was able to fulfil all of its loan repayment obligations, it was unable to meet certain debt

servicing benchmarks set out in its bank and other loan agreements during the year ended 31 March 2021. Our opinion is not

modified in respect of this matter.

Andrew Hughes (Senior Statutory Auditor)

for and on behalf of Haines Watts Birmingham LLP

12.	Contingent liabilities

The company and certain fellow group companies have entered into a cross-guarantee agreements in relation banking facilities with HSBC. At 31 March 2021 the contingent liability under these agreements was £473,855 (2020 - £499,188).

The company and certain fellow group companies have entered into a cross-guarantee agreements in relation to loan facilities with Duke Royalty UK Limited. At 31 March 2021 the contingent liability under these arrangements was £10,486,289 (2020 £10,503,289).

Whilst the group was able to fulfil all of its loan repayment obligations, it was unable to meet certain debt servicing benchmarks set out in its bank and other loan agreements during the year ended 31 March 2021. Duke Royalty UK Limited have formally waived the breach for 2021. The group expects to be in breach for the year ended 31 March 2022.

13.	Pension commitments

The Company operates a defined contributions pension scheme. The assets of the scheme are held separately form those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £5,981 (2020: £5,471). Contributions totalling £1,042 (£778 - 2020) were payable to the fund at the balance sheet date and are included in creditors.

14.	Related party disclosures

The company has taken advantage of the exemption available under FRS102 not to disclose transactions between the group company and its parent and 100% owned subsidiaries within the Trimite Top Co Limited group.

During the year, the company sold goods to Trimite Scotland Limited amounting to £68,177 (2020: £nil), a company having common directorship. At the year end, the amount owed from Trimite Scotland Limited was £19,680 (2020: £2,023).

During the year, the company sold goods to Tier One Limited amounting to £nil (2020: £4,929), a company having common directorship.

Key management is considered to include all of the directors who are remunerated through other group companies.

15.	Ultimate controlling party

The immediate parent company is Trimite Bid Co Limited, a company registered in England.

The ultimate parent company is Trimite Top Co Limited, a company registered in England. The ultimate controlling party is Duke Royalty Limited, the majority shareholder of Trimite Top Co Limited.