Rototek Limited - Limited company accounts 23.2

REGISTERED NUMBER: 07454710 (England and Wales)

Strategic Report,

Report of the Directors and

Financial Statements

for the Year Ended 31 March 2023

for

Rototek Limited

Page

Company Information

1

Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

4

Statement of Comprehensive Income

6

Balance Sheet

7

Statement of Changes in Equity

8

Notes to the Financial Statements

9

DIRECTORS:

Mr S N Wright

Miss S J Wright

Mr S Mills

Mr S T Conway

SECRETARY:

Mr J C Heppell

REGISTERED OFFICE:

Gusto House

Green Way

Collingham

Newark

Nottinghamshire

NG23 7DX

REGISTERED NUMBER:

07454710 (England and Wales)

AUDITORS:

Wright Vigar Limited

Statutory Auditors

Chartered Accountants & Business Advisers

15 Newland

Lincoln

Lincolnshire

LN1 1XG

BANKERS:

NatWest Bank Plc

Newark Branch

1 Market Place

Newark

Nottinghamshire

NG24 1DY

The directors present their strategic report for the year ended 31 March 2023.

Rototek are one of Europe's leading technical Rotational moulding companies, offering the complete service to our customers from concept to finished product. The principle activity of the Company during the year was the manufacture of high performance Rotational moulded products for a variety of demanding applications across numerous industries.

REVIEW OF BUSINESS

Company turnover showed an increase of 2% on the previous period to £14,809,948 (2022: £14,551,160). The 2022 figure of £14,551,160 was over a 15 month period, averaged out over 12 months this would have given a turnover of £11,640,928 for 2022. Based on the 12 month period, 2023 turnover increased by 27% from 2022. The greatly increased turnover was mainly due to the backlog resulting from Covid.

The Gross profit margin increased to 27.25% (2021: 21.54%), mainly due to the stabilisation on raw material prices The business is in a good position to continue to grow but this is not expected to happen until 2024/25.

PRINCIPAL RISKS AND UNCERTAINTIES

High inflation is an enormous challenge and will continue to have an impact in 2023/24 with several of our significant customers seeing greatly reduced orderbooks which in turn will see a reduction in sales for 2023/24. The continuing uncertainty with the energy market is a cause for concern.

ON BEHALF OF THE BOARD:

Mr S N Wright - Director

6 December 2023

The directors present their report with the financial statements of the company for the year ended 31 March 2023.

DIVIDENDS

No dividends will be distributed for the year ended 31 March 2023.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 April 2022 to the date of this report.

Mr S N Wright

Miss S J Wright

Mr S Mills

Mr S T Conway

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Strategic Report, the Report of the Directors 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 company and of the profit or loss of the company 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;

-	prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company 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 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 hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS

The auditors, Wright Vigar Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

Mr S N Wright - Director

6 December 2023

Opinion

We have audited the financial statements of Rototek Limited (the 'company') for the year ended 31 March 2023 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity 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).

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 31 March 2023 and of its 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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company 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

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors 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 this gives rise to a material misstatement in the financial statements themselves. 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.

Opinions on other matters 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 Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

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, or returns adequate for our audit have not been received from branches not visited by us; or

-	the 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.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page three, 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 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 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 company or to cease operations, or have no realistic alternative but to do so.

Auditors' 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 a Report of the Auditors 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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Our work is performed to include an assessment of the susceptibility of the entity's financial statements to material misstatement, including the risk of fraud. Owing to the inherent limitations of an audit, there is an unavoidable risk that material misstatements in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISAs (UK).

In identifying and assessing risk of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:

-

We plan our work to gain an understanding of the significant laws and regulations that are of significance to the entity and the sector in which they operate. We perform our work to ensure that the entity is complying with its legal and regulatory framework.

-

We obtained an understanding of how the company is complying with those legal and regulatory frameworks by making inquiries to the management and people charged with governance.

We assessed the susceptibility of the Company's financial statements to material misstatement, including how fraud might occur. Audit procedures performed by the engagement team included:

-

Substantive procedures performed in accordance with the ISAs (UK).

-

Challenging assumptions and judgments made by management in its significant accounting estimates.

-

Identifying and testing journal entries, in particular material journal entries and an assessment of year end journals.

-

Assessing the extent of compliance with the relevant laws and regulations.

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 Report of the Auditors.

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 a Report of the Auditors 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.

Paul Colcomb FCCA (Senior Statutory Auditor)

for and on behalf of Wright Vigar Limited

Statutory Auditors

Chartered Accountants & Business Advisers

15 Newland

Lincoln

Lincolnshire

LN1 1XG

6 December 2023

TURNOVER

3

14,809,948

14,551,160

Cost of sales

10,774,233

11,417,526

GROSS PROFIT

4,035,715

3,133,634

Administrative expenses

2,289,127

2,210,305

1,746,588

923,329

Other operating income

24,000

36,000

OPERATING PROFIT

5

1,770,588

959,329

Interest payable and similar expenses

6

72,622

9,364

PROFIT BEFORE TAXATION

1,697,966

949,965

Tax on profit

7

361,057

22,442

PROFIT FOR THE FINANCIAL YEAR

1,336,909

927,523

OTHER COMPREHENSIVE INCOME

Deferred tax on revaluation

2,758

2,842

Income tax relating to other comprehensive income

-

-

OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX

2,758

2,842

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

1,339,667

930,365

FIXED ASSETS

Intangible assets

8

-

-

Tangible assets

9

2,412,926

2,361,674

2,412,926

2,361,674

CURRENT ASSETS

Stocks

10

1,512,894

1,903,350

Debtors

11

3,334,477

2,847,495

Cash at bank and in hand

120,652

67,298

4,968,023

4,818,143

CREDITORS

Amounts falling due within one year

12

1,958,129

3,160,219

NET CURRENT ASSETS

3,009,894

1,657,924

TOTAL ASSETS LESS CURRENT LIABILITIES

5,422,820

4,019,598

CREDITORS

Amounts falling due after more than one year

13

-

(53,845

)

PROVISIONS FOR LIABILITIES

16

(420,000

)

(302,600

)

NET ASSETS

5,002,820

3,663,153

CAPITAL AND RESERVES

Called up share capital

17

1,800

1,800

Share premium

18

19,200

19,200

Revaluation reserve

18

94,344

106,101

Retained earnings

18

4,887,476

3,536,052

SHAREHOLDERS' FUNDS

5,002,820

3,663,153

The financial statements were approved by the Board of Directors and authorised for issue on 6 December 2023 and were signed on its behalf by:

Mr S N Wright - Director

Called up

share

Retained

Share

Revaluation

Total

capital

earnings

premium

reserve

equity

£

£

£

£

£

Balance at 1 January 2021

1,800

2,593,569

19,200

118,219

2,732,788

Changes in equity

Profit for the period

-

927,523

-

-

927,523

Other comprehensive income

-

14,960

-

(12,118

)

2,842

Total comprehensive income

-

942,483

-

(12,118

)

930,365

Balance at 31 March 2022

1,800

3,536,052

19,200

106,101

3,663,153

Changes in equity

Profit for the year

-

1,336,909

-

-

1,336,909

Other comprehensive income

-

14,515

-

(11,757

)

2,758

Total comprehensive income

-

1,351,424

-

(11,757

)

1,339,667

Balance at 31 March 2023

1,800

4,887,476

19,200

94,344

5,002,820

1.	STATUTORY INFORMATION

Rototek 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

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" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

Financial Reporting Standard 102 - reduced disclosure exemptions

The company has taken advantage of the following disclosure exemption in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

•

the requirements of Section 7 Statement of Cash Flows.

Details of the parent company can be found in Note 20.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Goodwill

Goodwill arises on business acquisitions and represents the excess of the cost of the acquisition over the company's interest in the net amount of the identifiable assets, liabilities and contingent liabilities of the acquired business.

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.

Tangible fixed assets

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

Plant and machinery

-

25% on reducing balance and 10% on cost

Fixtures and fittings

-

25% on reducing balance

Moulds

-

10% on cost

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, 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.

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.

3.

TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the company.

Turnover was wholly generated within the UK.

4.	EMPLOYEES AND DIRECTORS

Period

1.1.21

Year Ended

to

31.3.23

31.3.22

£

£

Wages and salaries

3,849,692

3,969,135

The average number of employees during the year was as follows:

Period

1.1.21

Year Ended

to

31.3.23

31.3.22

Average

136

125

Period

1.1.21

Year Ended

to

31.3.23

31.3.22

£

£

Directors' remuneration

181,347

169,569

5.	OPERATING PROFIT

The operating profit is stated after charging:

Period

1.1.21

Year Ended

to

31.3.23

31.3.22

£

£

Depreciation - owned assets

362,378

331,738

6.

INTEREST PAYABLE AND SIMILAR EXPENSES

Period

1.1.21

Year Ended

to

31.3.23

31.3.22

£

£

Other loan interest payable

67,222

-

Hire purchase

5,400

9,364

72,622

9,364

7.

TAXATION

Analysis of the tax charge

The tax charge on the profit for the year was as follows:

Period

1.1.21

Year Ended

to

31.3.23

31.3.22

£

£

Current tax:

UK corporation tax

240,899

-

Deferred tax movement

120,158

22,442

Tax on profit

361,057

22,442

Tax effects relating to effects of other comprehensive income

2023

Gross

Tax

Net

£

£

£

Deferred tax on revaluation

2,758

-

2,758

1.1.21 to 31.3.22

Gross

Tax

Net

£

£

£

Deferred tax on revaluation

2,842

-

2,842

8.	INTANGIBLE FIXED ASSETS

Goodwill

£

COST

At 1 April 2022

and 31 March 2023

126,000

AMORTISATION

At 1 April 2022

and 31 March 2023

126,000

NET BOOK VALUE

At 31 March 2023

-

At 31 March 2022

-

9.	TANGIBLE FIXED ASSETS

Fixtures

Plant and

and

machinery

fittings

Moulds

Totals

£

£

£

£

COST OR VALUATION

At 1 April 2022

2,850,709

453,601

206,156

3,510,466

Additions

338,861

74,769

-

413,630

At 31 March 2023

3,189,570

528,370

206,156

3,924,096

DEPRECIATION

At 1 April 2022

810,740

219,388

118,664

1,148,792

Charge for year

278,016

63,746

20,616

362,378

At 31 March 2023

1,088,756

283,134

139,280

1,511,170

NET BOOK VALUE

At 31 March 2023

2,100,814

245,236

66,876

2,412,926

At 31 March 2022

2,039,969

234,213

87,492

2,361,674

Cost or valuation at 31 March 2023 is represented by:

Fixtures

Plant and

and

machinery

fittings

Moulds

Totals

£

£

£

£

Valuation in 2015

134,603

-

105,760

240,363

Cost

3,054,967

528,370

100,396

3,683,733

3,189,570

528,370

206,156

3,924,096

If plant and machinery and moulds had not been revalued they would have been included at the following historical cost:

2023

2022

£

£

Cost

817,493

817,493

Aggregate depreciation

560,983

499,782

10.

STOCKS

2023

2022

£

£

Finished goods

1,512,894

1,903,350

11.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2023

2022

£

£

Trade debtors

2,327,698

2,781,010

Other debtors

965,299

24,510

Prepayments

41,480

41,975

3,334,477

2,847,495

The company operates a factoring arrangement with The Royal Bank of Scotland PLC. This provides the company with flexible sales related finance based on the value of sales invoices assigned. The costs comprise a factoring charge on the value of the invoices assigned together with an interest charge on the amounts advanced.

12.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2023

2022

£

£

Hire purchase contracts (see note 14)

41,894

55,422

Trade creditors

987,049

1,230,700

PAYE Control

84,874

63,943

Wages and salaries control

238,286

202,069

Amounts owed to group undertakings

-

1,000,000

Tax

240,899

-

VAT

287,102

171,244

Other creditors

40,036

346,787

Accrued expenses

37,989

90,054

1,958,129

3,160,219

13.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2023

2022

£

£

Hire purchase contracts (see note 14)

-

41,845

Accruals and deferred income

-

12,000

-

53,845

14.	LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase contracts

2023

2022

£

£

Net obligations repayable:

Within one year

41,894

55,422

Between one and five years

-

41,845

41,894

97,267

Non-cancellable

operating leases

2023

2022

£

£

Within one year

267,000

267,000

Between one and five years

200,250

467,250

467,250

734,250

15.	SECURED DEBTS

Hire purchase contracts are secured on the asset to which they relate.

RBS Invoice Finance Limited hold a fixed and floating charge over the company's assets.

16.	PROVISIONS FOR LIABILITIES

2023

2022

£

£

Deferred tax

420,000

302,600