LMC Plastics Limited - Accounts to registrar (filleted) - small 23.2.5

REGISTERED NUMBER: 05849623 (England and Wales)

LMC PLASTICS LIMITED

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3

to

11

DIRECTORS:

David Raymond Merrick

Frank Gittus

SECRETARY:

Frank Gittus

REGISTERED OFFICE:

9-11 Lower Road Trading Estate

Ledbury

Herefordshire

HR8 2DJ

REGISTERED NUMBER:

05849623 (England and Wales)

AUDITORS:

Milne Craig

Chartered accountants

Statutory auditor

Abercorn House

79 Renfrew Road

Paisley

Renfrewshire

PA3 4DA

BANKERS:

HSBC plc

35 High Town

Hereford

HR1 2AQ

FIXED ASSETS

Tangible assets

4

2,680,935

1,452,352

CURRENT ASSETS

Stocks

5

523,575

865,599

Debtors

6

797,460

438,784

Cash at bank and in hand

39,913

179,099

1,360,948

1,483,482

CREDITORS

Amounts falling due within one year

7

3,145,347

2,395,037

NET CURRENT LIABILITIES

(1,784,399

)

(911,555

)

TOTAL ASSETS LESS CURRENT LIABILITIES

896,536

540,797

CREDITORS

Amounts falling due after more than one year

8

(962,386

)

(238,045

)

PROVISIONS FOR LIABILITIES

10

(441,971

)

(135,778

)

NET (LIABILITIES)/ASSETS

(507,821

)

166,974

CAPITAL AND RESERVES

Called up share capital

50,100

50,100

Other reserves

19,563

19,563

Revaluation reserve

11

153,297

223,856

Retained earnings

(730,781

)

(126,545

)

SHAREHOLDERS' FUNDS

(507,821

)

166,974

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 5 June 2024 and were signed on its behalf by:

David Raymond Merrick - Director

1.	STATUTORY INFORMATION

LMC Plastics Limited is a private company, limited by shares, registered in England and Wales. The company’s registered number is 05849623 and registered office address is 9-11 Lower Road Trading Estate, Ledbury, Herefordshire, HR8 2DJ.

The nature of the company's operations and its principal activities are that of the manufacture of extruded plastic products.

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 as modified by the revaluation of certain assets.

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 directors have satisfied themselves that the loan received from group undertakings will remain in place for the forseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

Related party exemption

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Critical accounting judgements and key sources of estimation uncertainty

In preparing these financial statements, the directors have made the following judgements:

Tangible fixed assets are depreciated over their useful lives taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In re-assessing asset lives, factors such as technological innovation, product life cycles and maintenance programmes are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projected disposal values.

Assets are considered for indications of impairment. If required an impairment review will be carried out and a decision made on possible impairment. Factors taken into consideration in reaching such a decision include the economic viability and expected future financial performance of the asset and where it is a component of a larger cash-generating unit, the viability and expected future performance of that unit.

Bad debts are provided for where objective evidence of the need for a provision exists.

Inventories are assessed for evidence of obsolescence and a provision is made against any inventory unlikely to be sold, or where stock is sold post year end at a loss.

Turnover

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. Consideration is given to the point at which the Company is entitled to receive the income, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Revenue from the provision of services is recognised in the period in which the services are provided when all of the following conditions are satisfied:

• the amount of revenue can be measured reliably;

• it is probable that the Company will receive the consideration due;

• the costs incurred can be measured reliably.

Tangible fixed assets

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

Integral Features

-

4% on cost

Plant and machinery

-

15% on cost

Fixtures and fittings

-

10% on cost

Motor vehicles

-

20% on cost

Office Equipment

-

20% on cost

Plant is carried at fair value and as such no depreciation is charged.

Pension costs and other post-retirement benefits

The company operates a defined contribution scheme. Contributions payable to the company's pension scheme are charged to the income statement in the period to which they relate.

Stocks

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

Stock at any stage of production is valued at its raw material component value only. Stock which is not bought for resale is valued at cost subject to a reduction for any obsolete or damaged goods.

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. Financial instruments are recognised in the Company's balance sheet when the Company becomes party to the contractual provisions of the instrument. Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally 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.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transactions 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 receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the Company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

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, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Taxation

Current tax is recognised for the amount of income tax payable in respect of the taxable profit for the current or past reporting periods using the tax rates and laws that have been enacted or substantively enacted by the reporting date.

Deferred tax is recognised in respect of all timing differences at the reporting date, except as otherwise indicated.

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

If and when all conditions for retaining tax allowances for the cost of a fixed asset have been met, the deferred tax is reversed.

Deferred tax is calculated using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.

With the exception of changes arising on the initial recognition of a business combination, the tax expense (income) is presented either in profit or loss, other comprehensive income or equity depending on the transaction that resulted in the tax expense (income).

Deferred tax liabilities are presented within provisions for liabilities and deferred tax assets within debtors.

Deferred tax assets and deferred tax liabilities are offset only if the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same taxation authority on either the same taxable entity or different taxable entities which intend either to settle current tax liabilities and assets on a net basis, or to realise the assets and settle the liabilities simultaneously.

Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks and other short-term liquid investments with original maturities of three months or less.

Impairment of assets

Assets, other than those measured at fair value, are assessed for indicators of impairment at each balance sheet date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss as described below.

Non-financial assets

An asset is impaired where there is objective evidence that, as a result of one or more events that occurred after initial recognition, the estimated recoverable value of the asset has been reduced. The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use.

Where indicators exist for a decrease in impairment loss, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised.

Financial assets

For financial assets carried at amortised cost, the amount of impairment is the difference between the asset's carrying amount and the present value of estimated future cash flows, discounted at the financial asset's original effective interest rate.

For financial assets carried at cost less impairment, the impairment loss is the difference between the asset's carrying amount and the best estimate of the amount that would be received for the asset if it were to be sold at the reporting date.

Where indicators exist for a decrease in impairment loss, and the decrease can be related objectively to an event occurring after the impairment was recognised, the prior impairment loss is tested to determine reversal.

An impairment loss is reversed on an individual impaired financial asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised.

Rental income

Rental income is included in the profit and loss account in the period in which it is receivable.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 44 (2022 - 42 ) .

4.	TANGIBLE FIXED ASSETS

Integral

Plant and

Plant

Features

machinery

£

£

£

COST OR VALUATION

At 1 January 2023

262,567

207,483

1,168,948

Additions

-

93,354

1,459,765

Disposals

-

-

(28,000

)

Revaluations

(70,559

)

-

-

At 31 December 2023

192,008

300,837

2,600,713

DEPRECIATION

At 1 January 2023

-

79,176

113,035

Charge for year

-

9,140

265,389

Eliminated on disposal

-

-

(15,750

)

At 31 December 2023

-

88,316

362,674

NET BOOK VALUE

At 31 December 2023

192,008

212,521

2,238,039

At 31 December 2022

262,567

128,307

1,055,913

Fixtures

and

Motor

Office

fittings

vehicles

Equipment

Totals

£

£

£

£

COST OR VALUATION

At 1 January 2023

35,080

1,500

22,761

1,698,339

Additions

-

39,200

3,160

1,595,479

Disposals

-

-

-

(28,000

)

Revaluations

-

-

-

(70,559

)

At 31 December 2023

35,080

40,700

25,921

3,195,259

DEPRECIATION

At 1 January 2023

35,080

1,475

17,221

245,987

Charge for year

-

7,861

1,697

284,087

Eliminated on disposal

-

-

-

(15,750

)

At 31 December 2023

35,080

9,336

18,918

514,324

NET BOOK VALUE

At 31 December 2023

-

31,364

7,003

2,680,935

At 31 December 2022

-

25

5,540

1,452,352

Cost or valuation at 31 December 2023 is represented by:

Integral

Plant and

Plant

Features

machinery

£

£

£

Valuation in 2023

192,008

-

-

Cost

-

300,837

2,600,713

192,008

300,837

2,600,713

Fixtures

and

Motor

Office

fittings

vehicles

Equipment

Totals

£

£

£

£

Valuation in 2023

-

-

-

192,008

Cost

35,080

40,700

25,921

3,003,251

35,080

40,700

25,921

3,195,259

The net book value of tangible fixed assets includes £1,796,745 (2022 - £398,215) in respect of assets held under hire purchase contracts.

5.

STOCKS

31/12/23

31/12/22

£

£

Finished goods

523,575

865,599

6.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31/12/23

31/12/22

£

£

Trade debtors

379,152

389,461

Other debtors

306,802

15,000

Prepayments

111,506

34,323

797,460

438,784

7.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31/12/23

31/12/22

£

£

Hire purchase contracts

562,875

106,674

Trade creditors

337,247

468,023

Amounts owed to group undertakings

2,085,024

1,637,703

Social security and other taxes

19,029

30,633

Value added tax

49,747

341

Other creditors

3,627

60,367

Accrued expenses

87,798

91,296

3,145,347

2,395,037

8.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

31/12/23

31/12/22

£

£

Hire purchase contracts

962,386

238,045

9.	SECURED DEBTS

The following secured debts are included within creditors:

31/12/23

31/12/22

£

£

Hire purchase contracts

1,525,261

344,719

The hire purchase and lease creditors are secured over the assets which they relate.

10.	PROVISIONS FOR LIABILITIES

31/12/23

31/12/22

£

£

Deferred tax

441,971

135,778

Deferred

tax

£

Balance at 1 January 2023

135,778

Originating and reversal of

338,780

timing differences

Effect of changes in tax rates

(32,587

)

Balance at 31 December 2023

441,971

11.

RESERVES

Revaluation

reserve

£

At 1 January 2023

223,856

Revaluation of plant

(70,559

)

At 31 December 2023

153,297

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

The Report of the Auditors was unqualified.

Alex Webb BAcc FCCA (Senior Statutory Auditor)

for and on behalf of Milne Craig

13.	CAPITAL COMMITMENTS

31/12/23

31/12/22

£

£

Contracted but not provided for in the

financial statements

-

557,019

14.	ULTIMATE CONTROLLING PARTY

The ultimate controlling party by virtue of his shareholding in Linthwaite Topco Limited is D R Merrick.