Vinyl (GB) Limited - Accounts to registrar (filleted) - small 23.2.5

REGISTERED NUMBER: 05056778 (England and Wales)

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31ST DECEMBER 2022

FOR

VINYL (GB) LIMITED

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3

DIRECTOR:

J L Govier

REGISTERED OFFICE:

Unit 1 Prospect Estate

Llay Industrial Estate North

Llay

Wrexham

LL12 0PB

REGISTERED NUMBER:

05056778 (England and Wales)

AUDITORS:

SBCA Statutory Auditor

17 Moor Park Avenue

Preston

Lancashire

PR1 6AS

FIXED ASSETS

Intangible assets

4

-

642

Tangible assets

5

316,641

309,325

316,641

309,967

CURRENT ASSETS

Stocks

6

216,078

150,609

Debtors

7

472,565

377,613

Cash at bank and in hand

35,103

344

723,746

528,566

CREDITORS

Amounts falling due within one year

8

(1,771,673

)

(1,436,509

)

NET CURRENT LIABILITIES

(1,047,927

)

(907,943

)

TOTAL ASSETS LESS CURRENT LIABILITIES

(731,286

)

(597,976

)

CREDITORS

Amounts falling due after more than one year

9

-

(4,165

)

NET LIABILITIES

(731,286

)

(602,141

)

CAPITAL AND RESERVES

Called up share capital

12

232

232

Share premium

13

249,878

249,878

Special reserve

13

642

642

Retained earnings

13

(982,038

)

(852,893

)

SHAREHOLDERS' FUNDS

(731,286

)

(602,141

)

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 director and authorised for issue on 27th September 2023 and were signed by:

J L Govier - Director

1.	STATUTORY INFORMATION

Vinyl (GB) Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

Going Concern

The director is required to assess whether the use of going concern basis of accounting is appropriate for the company and consider whether there are any material uncertainties relating to events or conditions that may cast significant doubt on the ability of the company to continue as a going concern. The director made this assessment in respect of a period to 31st December 2024, which is a period of 15 months from the date of authorisation for issue of the financial statements.

The director has identified the following material uncertainties in making his assessment:

The company made a loss before tax of £271,182 and has net current liabilities of £1,047,927. The loss incurred in the year is attributable to changes in global economic factors, specifically oil pricing, and the direct substantial impact on energy costs (c£264k)and raw material costs (c£184k). The director has prepared financial forecasts and a cash flow projection to 31st December 2024 which indicate increasing profitability brought about by a proposed change in working patterns and methods to stem the net cash requirement from the majority shareholder, Easy-Trim Roofing and Construction Products Limited ("ET") in the form of extended credit terms. This is forecast to peak in December 2023, before gradually reducing each of the following months in the forecast period to December 2024. A material uncertainty exists due to the inherent judgements and estimations required in the forecasts.

The validity of the going concern assumption is dependent on continued support from the company's bankers and from its parent company.

The director confirms his willingness to support the company should cash flow needs arise.

Turnover

Turnover represents amounts receivable for the sale of plastic material and pellets despatched prior to the balance sheet date net of VAT and trade discounts.

The company recognises revenue when:

- the significant risks and rewards of ownership have been transferred to the buyer;

- the company retains no continuing involvement or control over the goods;

- the amount of revenue can be reliably measured;

- it is probable that future economic benefits will flow to the entity; and

- any specific criteria relating to transactions has been met.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Patents and licences are being amortised evenly over their estimated useful life of ten years.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Land and buildings

-

15% on reducing balance and 15% on cost

Plant and machinery etc

-

33% on cost and 10% on cost

The carrying values of tangible assets are reviewed annually for impairment in periods if events or changes in circumstances indicate the carrying value may not be recoverable.

Stocks

Stocks are valued at the lower of cost and net realisable value. Stocks are determined on a first-in first-out basis. Cost comprises expenditure incurred in the normal course of business in bringing stocks to their present location and condition. Full provision is made for obsolete and slow moving items. Net realisable value comprises actual or estimated selling price (net of trade discounts) less all further costs to completion or to be incurred in marketing and selling.

Financial instruments

The company has elected to apply the provisions of Section 11 'Basic Financial Instruments' and Section 12 'Other Financial Instruments Issues' of FRS 102 to all of its financial instruments.

Basic financial assets:

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future cash flows discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Classification of financial liabilities:

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities:

Basic financial liabilities, including creditors and bank loans, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of future cash flows discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if the payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest rate method.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. The assets of the scheme are held separately from those of the company in an independently administered fund. The assets of this scheme are also held separately from those of the company, being invested with pension fund managers.

Ordinary share capital

The ordinary share capital of the company is presented as equity.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 17 (2021 - 13 ) .

4.	INTANGIBLE FIXED ASSETS

Other

intangible

assets

£

COST

At 1st January 2022

and 31st December 2022

7,000

AMORTISATION

At 1st January 2022

6,358

Charge for year

642

At 31st December 2022

7,000

NET BOOK VALUE

At 31st December 2022

-

At 31st December 2021

642

5.	TANGIBLE FIXED ASSETS

Improvements

Fixtures

to

Plant and

and

property

machinery

fittings

Totals

£

£

£

£

COST

At 1st January 2022

9,680

376,432

13,002

399,114

Additions

12,509

13,967

3,078

29,554

At 31st December 2022

22,189

390,399

16,080

428,668

DEPRECIATION

At 1st January 2022

726

77,806

11,257

89,789

Charge for year

2,022

18,628

1,588

22,238

At 31st December 2022

2,748

96,434

12,845

112,027

NET BOOK VALUE

At 31st December 2022

19,441

293,965

3,235

316,641

At 31st December 2021

8,954

298,626

1,745

309,325

The carrying values of tangible fixed assets ar reviewed annually for impairment in periods if events or changes in circumstances indicate the carrying value may not be recoverable.

Included above are assets held under finance leases or hire purchase contracts as follows:

2022

2021

Net book value

Depreciation

Net book value

Depreciation

£

£

£

£

Plant and machinery

-

-

170,648

38,340

-

-

170,648

38,340

6.

STOCKS

31.12.22

31.12.21

£

£

Stocks

216,078

150,609

7.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.12.22

31.12.21

£

£

Trade debtors

248,194

312,764

Other debtors

224,371

64,849

472,565

377,613

8.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.12.22

31.12.21

£

£

Bank loans and overdrafts

204,090

304,671

Hire purchase contracts (see note 10)

-

50,986

Trade creditors

482,546

313,260

Amounts owed to group undertakings

940,721

521,868

Taxation and social security

30,612

15,089

Other creditors

113,704

230,635

1,771,673

1,436,509

Bank loans and overdrafts are secured by way of a fixed and floating charges over the assets of the company.

Invoice financing is secured on the book debts of the company.

9.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

31.12.22

31.12.21

£

£

Other creditors

-

4,165

10.	LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase

contracts

31.12.22

31.12.21

£

£

Net obligations repayable:

Within one year

-

50,986

Non-cancellable

operating leases

31.12.22

31.12.21

£

£

Within one year

179,194

180,664

Between one and five years

709,501

714,959

In more than five years

376,430

550,167

1,265,125

1,445,790

11.	DEFERRED TAX

£

Balance at 1st January 2022

(30,583

)

Credit to Income Statement during year

(28,736

)

Balance at 31st December 2022

(59,319

)

12.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

31.12.22

31.12.21

value:

£

£

222

Ordinary

£1

222

222

10

Ordinary A

£1

10

10

232

232

13.

RESERVES

Retained

Share

Special

earnings

premium

reserve

Totals

£

£

£

£

At 1st January 2022

(852,893

)

249,878

642

(602,373

)

Deficit for the year

(129,145

)

(129,145

)

At 31st December 2022

(982,038

)

249,878

642

(731,518

)

The amount in Share Premium Reserve is the premium paid that arose from the issue of shares in 2018.

14.	DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Report of the Auditors was unqualified.

Christopher Bond (Senior Statutory Auditor)

for and on behalf of SBCA Statutory Auditor

15.	RELATED PARTY DISCLOSURES

During the period the company engaged their Parent, Easy-Trim Roofing and Construction Products Ltd, who are a related party by being members of the same group.

Amounts charged to Easy-trim during the period were £1,845,344 (2021: £918,645) which includes a management charge of £120,000 (2021: £120,000). At the balance sheet date amounts owed to the company were £nil (2021: £76,291). Amounts charged by Easy-Trim during the period were £664,960 (2021: £258,065). At the balance sheet date amounts owed by the company were £940,721 (2021: £521,868).

During the period the company engaged Halo Plastics Ltd, a connected company by virtue of a common shareholder.

Amounts charged to Halo Plastics Ltd were £105,936 (2021: £129,215). At the balance sheet date amounts owed to the company were £nil (2021: £70,422). Amounts charged by Halo Plastics Ltd during the period were £833,090 (2021: £919,963). At the balance sheet date amounts owed by the company were £78,859 (2021: £192,266).

At the balance sheet date amounts owed by a shareholder amounted to £10,881 (2021: £10,881).

16.	ULTIMATE CONTROLLING PARTY

The company regards Easy-Trim Roofing and Construction Products Limited as its parent company.

The company's ultimate parent undertaking is Memtech Limited registered in United Kingdom.

The address of Memtech Limited is Melton Grove Works, Church Road, Lytham St Annes.

Memtech is regarded as both the controlling party and the ultimate controlling party.

The parent of the largest group in which the results are consolidated is Memtech Limited. Copies of these financial statements are available upon request from Companies House, Crown Way, Cardiff, CF14 3UZ.