Company Registration No. 04180283 (England and Wales)
LANTOR (UK) LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2018
LANTOR (UK) LIMITED
COMPANY INFORMATION
Directors
Mr D P Lamb
Mr A M Brownlow
Company number
04180283
Registered office
BFF Business Park
Bath Road
Bridgwater
Somerset
TA6 4NZ
Auditor
Pierce C A Limited
Mentor House
Ainsworth Street
Blackburn
Lancashire
BB1 6AY
Business address
BFF Business Park
Bath Road
Bridgwater
Somerset
TA6 4NZ
Bankers
Lloyds Bank Plc
Canons House
Canons Way
Bristol
BS1 5LL
Solicitors
Squire Patton Boggs (UK) LLP
Trinity Court
16 John Dalton Street
Manchester
M60 8HS
LANTOR (UK) LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2
Directors' responsibilities statement
3
Independent auditor's report
4 - 5
Profit and loss account
6
Balance sheet
7
Notes to the financial statements
8 - 21
LANTOR (UK) LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2018
- 1 -
The directors are pleased to present the strategic report and financial statements for the year ended 31 March 2018.
Fair review of the business
The principal activity of the group is to provide nonwoven fabrics which are smarter, lighter and technically superior fabrics to other fabrics available in the market. The business specialises in complex problem solving, by developing, modifying and refining bespoke products for diverse applications.
Some areas being Filtration, Face Masks, Protection/CBRN, Acoustics and Electrical applications.
Medical Bandages, Advance wound care dressings and Ostomy.
The directors are pleased to report that business performance has continued to grow in several areas.
The directors are also proud of the company’s ability to develop and deliver solutions to complex requirements by our customers and invest in the development of new products to maintain competitive advantage.
Financial Highlights
The results set out in the profit and loss account show that the turnover for the year ended 31 March 2018 was £6.3 million (2017: £5.8 million).
Earnings before exceptional costs, interest, tax, depreciation and amortisation (EBITDA) were £0.42 million (2017: (£0.47 million)) reflecting continued improvements in customer development, performance and strong cost control.
The company also received an R&D tax payment of £79,116 in the current financial year relating to the prior year. This demonstrates the commitment of the business to continued research and development into new technologies and innovative products.
Financial Risk Management
This is undertaken at a Group level to minimise risk for each individual company.
Financial key performance indicators
Given the nature of the business the company’s directors believe key performance indicators are important. The company uses several indicators to monitor and improve the development, performance and position of the business.
Some non-financial indicators are Customer on time delivery, approved suppliers monitored through our Quality management system and effective performance.
Financial indicators
Sales – Growth in revenue compares to prior year by 9%, providing quantified indicators that the rate of business activity is expanding across the company and market sectors.
Profit – Growth in operating profit compared to prior year by 119% .
Mr D P Lamb
Director
30 August 2018
LANTOR (UK) LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2018
- 2 -
The directors present their annual report and financial statements for the year ended 31 March 2018.
Principal activities
The principal activity of the company is that of the development, manufacture and sale of medical wound dressings and other specialist industrial fabrics.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr D P Lamb
Mr C A Burhop
(Resigned 6 April 2018)
Mr A M Brownlow
Results and dividends
The results for the year are set out on page 6.
The directors do not recommend payment of a final dividend.
Auditor
In accordance with the company's articles, a resolution proposing that Pierce C.A. Limited be reappointed as auditor of the company will be put at a General Meeting.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
On behalf of the board
Mr D P Lamb
Director
30 August 2018
LANTOR (UK) LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MARCH 2018
- 3 -
The directors are responsible for preparing the annual report 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;
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 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.
LANTOR (UK) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF LANTOR (UK) LIMITED
- 4 -
Opinion
We have audited the financial statements of Lantor (UK) Limited (the 'company') for the year ended 31 March 2018 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows 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 FRS 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 2018 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.
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 Auditor's 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
We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:
the directors' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or
the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the company’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.
The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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 our audit:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
LANTOR (UK) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF LANTOR (UK) LIMITED
- 5 -
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 and the directors' report.
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 directors' responsibilities statement, 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 is 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.
Auditor's 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 an auditor’s report 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.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: http://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s 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 an auditor's 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.
Linda Wilkinson (Senior Statutory Auditor)
for and on behalf of Pierce C A Limited
30 August 2018
Statutory Auditor
Mentor House
Ainsworth Street
Blackburn
Lancashire
BB1 6AY
LANTOR (UK) LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2018
- 6 -
2018
2017
Notes
£
£
Turnover
2
6,320,093
5,786,656
Cost of sales
(4,415,460)
(4,538,958)
Gross profit
1,904,633
1,247,698
Administrative expenses
(1,696,812)
(1,843,256)
Exceptional costs
3
(94,679)
-
Operating profit/(loss)
4
113,142
(595,558)
Interest receivable and similar income
6
14
-
Interest payable and similar expenses
7
(51,754)
(33,848)
Profit/(loss) before taxation
61,402
(629,406)
Taxation
8
79,116
216,010
Profit/(loss) for the financial year
140,518
(413,396)
The Profit And Loss Account has been prepared on the basis that all operations are continuing operations.
LANTOR (UK) LIMITED
BALANCE SHEET
AS AT
31 MARCH 2018
31 March 2018
- 7 -
2018
2017
Notes
£
£
£
£
Fixed assets
Goodwill
9
-
2,000
Tangible assets
10
1,209,407
1,211,831
1,209,407
1,213,831
Current assets
Stocks
12
1,095,141
860,237
Debtors
13
1,536,406
1,397,903
Cash at bank and in hand
100,542
119,072
2,732,089
2,377,212
Creditors: amounts falling due within one year
14
(1,194,141)
(1,193,152)
Net current assets
1,537,948
1,184,060
Total assets less current liabilities
2,747,355
2,397,891
Creditors: amounts falling due after more than one year
15
(2,504,796)
(2,295,850)
Net assets
242,559
102,041
Capital and reserves
Called up share capital
19
1,500,091
1,500,091
Share premium account
3,543,035
3,543,035
Profit and loss reserves
(4,800,567)
(4,941,085)
Total equity
242,559
102,041
The financial statements were approved by the board of directors and authorised for issue on 30 August 2018 and are signed on its behalf by:
Mr D P Lamb
Director
Company Registration No. 04180283
LANTOR (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2018
- 8 -
1
Accounting policies
Company information
Lantor (UK) Limited is a private company limited by shares incorporated in England and Wales. The registered office is BFF Business Park, Bath Road, Bridgwater, Somerset, TA6 4NZ.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
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 £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:
The financial statements of the company are consolidated in the financial statements of Nonwovenn Ltd. These consolidated financial statements are available from its registered office: BFF Business Park, Bath Road, Bridgwater, Somerset, TA6 4NZ.
1.2
Going concern
The company is dependant upon the ongoing financial support of BFF Nonwovens Limited, a fellow group company.
The directors have indicated that BFF Nonwovens Limited will continue to provide financial support to the company for the foreseeable future and the debt outstanding to this company will not be due for payment in the twelve month period from the date of signing these financial statements.
The directors therefore consider that in preparing the financial statements they have taken into account all the information that could reasonably be expected to be available.
On this basis, they consider that it is appropriate to prepare the financial statements on the going concern basis.
1.3
Turnover
Turnover represents amounts receivable for goods and services net of VAT and trade discounts.
1.4
Intangible fixed assets - goodwill
Acquired goodwill is written off in equal annual instalments over its estimated useful economic life of five years.
LANTOR (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2018
1
Accounting policies
(Continued)
- 9 -
1.5
Intangible fixed assets other than goodwill
Patents are valued at cost less accumulated amortisation. Amortisation is calculated to write off the cost in equal annual instalments over their estimated useful lives.
Research expenditure is written off to the profit and loss account in the year in which it is incurred. Development expenditure is written off in the same way unless the directors are satisfied as to the technical, commercial and financial viability of individual projects. In this situation, the expenditure is deferred and amortised over the period during which the company can expect to benefit.
1.6
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Leasehold land and buildings - Mill
Period of lease/Straight line with 10% residual value
Leasehold land and buildings - Other
Period of lease
Plant and machinery
10% Straight line with 10% residual value
Fixtures, fittings & equipment
33% / 20% Straight line
Motor vehicles
33% Straight Line with 25% residual value
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.7
Stocks
Stock is valued at the lower of cost and net realisable value.
Cost represents all expenditure incurred in bringing stock to its present condition and location at the accounting date.
Net realisable value is based on the estimated selling prices less further costs expected to be incurred to completion and disposal.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.8
Cash and cash equivalents
Cash at bank and in hand are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
LANTOR (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2018
1
Accounting policies
(Continued)
- 10 -
1.9
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 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 receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
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.
LANTOR (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2018
1
Accounting policies
(Continued)
- 11 -
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, 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.
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 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 method.
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value though profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.10
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.11
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
LANTOR (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2018
1
Accounting policies
(Continued)
- 12 -
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are 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. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity.
1.12
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.13
Retirement benefits
The company operates a defined contribution scheme for the benefit of its employees. Contributions payable are charged to the profit and loss account in the year they are payable.
1.14
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to income on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the lease asset are consumed.
1.15
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation are included in the profit and loss account for the period.
2
Turnover and other revenue
An analysis of the company's turnover is as follows:
2018
2017
£
£
Turnover analysed by class of business
From principal activity
6,320,093
5,786,656
2018
2017
£
£
Other revenue
Interest income
14
-
LANTOR (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2018
2
Turnover and other revenue
(Continued)
- 13 -
2018
2017
£
£
Turnover analysed by geographical market
United Kingdom
4,671,093
4,678,362
Rest of Europe
408,000
119,702
North and South America
728,000
633,255
Rest of World
513,000
355,337
6,320,093
5,786,656
3
Exceptional costs
2018
2017
£
£
Exceptional costs
94,679
-
During the year the company made an offer to settle a dispute arising from a contract undertaken in 2002.
An amount of £94,679 was offered by the company, which has been provided for in full, and has been disclosed in arriving at the operating profit for the year.
LANTOR (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2018
- 14 -
4
Operating profit/(loss)
2018
2017
Operating profit/(loss) for the year is stated after charging/(crediting):
£
£
Exchange gains
(41,516)
(45,811)
Fees payable to the company's auditor for the audit of the company's financial statements
13,250
8,750
Depreciation of owned tangible fixed assets
205,663
120,709
(Profit)/loss on disposal of tangible fixed assets
(7,431)
14,393
Amortisation of intangible assets
2,000
2,000
Cost of stocks recognised as an expense
1,982,795
2,215,174
Operating lease charges
303,420
295,139
Exchange differences recognised in profit or loss during the year, except for those arising on financial instruments measured at fair value through profit or loss, amounted to £41,516 (2017 - £45,811).
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2018
2017
Number
Number
Production and engineering
44
47
Sales and administration
27
27
71
74
Their aggregate remuneration comprised:
2018
2017
£
£
Wages and salaries
1,903,804
1,898,114
Social security costs
152,706
180,548
Pension costs
47,979
53,735
2,104,489
2,132,397
LANTOR (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2018
- 15 -
6
Interest receivable and similar income
2018
2017
£
£
Interest income
Interest on bank deposits
14
-
Investment income includes the following:
Interest on financial assets not measured at fair value through profit or loss
14
-
7
Interest payable and similar expenses
2018
2017
£
£
Interest on financial liabilities measured at amortised cost:
Interest payable to group undertakings
51,754
33,848
8
Taxation
2018
2017
£
£
Current tax
Adjustments in respect of prior periods
(79,116)
(96,010)
Deferred tax
Tax losses carried forward
-
(120,000)
Total tax credit
(79,116)
(216,010)
LANTOR (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2018
8
Taxation
(Continued)
- 16 -
The actual credit for the year can be reconciled to the expected charge/(credit) for the year based on the profit or loss and the standard rate of tax as follows:
2018
2017
£
£
Profit/(loss) before taxation
61,402
(629,406)
Expected tax charge/(credit) based on the standard rate of corporation tax in the UK of 19.00% (2017: 20.00%)
11,666
(125,881)
Tax effect of expenses that are not deductible in determining taxable profit
-
4,026
Change in reversing timing differences
3,374
-
Group relief
45,608
216,427
Permanent capital allowances in excess of depreciation
(59,236)
(94,572)
Deferred tax on future utilisation of accumulated tax losses
-
(120,000)
Research and development tax credit
(79,116)
(96,010)
Other permanent differences
(1,412)
-
Taxation credit for the year
(79,116)
(216,010)
The company has estimated losses of £5,129,455 (2017: £5,129,455) available for carry forward against future trading profits.
No provision has been made for tax credits payable in respect of claims to be made by the company for research and development relief in respect of the year ended 31 March 2018. Any such tax credit arising will be recognised when the final claim for relief has been determined.
On the basis of the results of these financial statements, no liability to corporation tax has arisen.
9
Intangible fixed assets
Goodwill
Patents
Development Costs
Total
£
£
£
£
Cost
At 1 April 2017 and 31 March 2018
10,000
24,024
650,318
684,342
Amortisation and impairment
At 1 April 2017
8,000
24,024
650,318
682,342
Amortisation charged for the year
2,000
-
-
2,000
At 31 March 2018
10,000
24,024
650,318
684,342
Carrying amount
At 31 March 2018
-
-
-
-
At 31 March 2017
2,000
-
-
2,000
LANTOR (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2018
- 17 -
10
Tangible fixed assets
Leasehold land and buildings - Mill
Leasehold land and buildings - Other
Plant and machinery
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 April 2017
360,197
883,469
3,802,788
174,498
48,563
5,269,515
Additions
5,490
-
204,048
9,686
-
219,224
Disposals
-
-
-
-
(39,063)
(39,063)
At 31 March 2018
365,687
883,469
4,006,836
184,184
9,500
5,449,676
Depreciation and impairment
At 1 April 2017
203,225
781,971
2,935,959
115,301
21,228
4,057,684
Depreciation charged in the year
29,329
33,655
114,124
24,270
4,285
205,663
Eliminated in respect of disposals
-
-
-
-
(23,078)
(23,078)
At 31 March 2018
232,554
815,626
3,050,083
139,571
2,435
4,240,269
Carrying amount
At 31 March 2018
133,133
67,843
956,753
44,613
7,065
1,209,407
At 31 March 2017
156,972
101,498
866,829
59,197
27,335
1,211,831
LANTOR (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2018
- 18 -
11
Financial instruments
2018
2017
£
£
Carrying amount of financial assets
Debt instruments measured at amortised cost
1,084,906
937,980
Carrying amount of financial liabilities
Measured at amortised cost
3,566,625
3,336,925
12
Stocks
2018
2017
£
£
Raw materials and consumables
761,777
631,795
Work in progress
135,464
89,998
Finished goods and goods for resale
197,900
138,444
1,095,141
860,237
13
Debtors
2018
2017
Amounts falling due within one year:
£
£
Trade debtors
1,084,906
937,980
Prepayments and accrued income
331,500
339,923
1,416,406
1,277,903
2018
2017
Amounts falling due after more than one year:
£
£
Deferred tax asset (note 17)
120,000
120,000
Total debtors
1,536,406
1,397,903
14
Creditors: amounts falling due within one year
2018
2017
£
£
Trade creditors
605,830
755,334
Other taxation and social security
132,312
152,077
Other creditors
87,208
421
Accruals and deferred income
368,791
285,320
1,194,141
1,193,152
LANTOR (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2018
- 19 -
15
Creditors: amounts falling due after more than one year
2018
2017
Notes
£
£
Other borrowings
16
2,504,796
2,295,850
16
Loans and overdrafts
2018
2017
£
£
Other loans
2,554,796
2,295,850
Payable within one year
50,000
-
Payable after one year
2,504,796
2,295,850
Included in Other loans is a loan of £2,504,796 (2017: £2,245,850) from BFF Nonwovens Limited and total loans of £50,000 (2017: £50,000) from the directors.
All these loans are unsecured. The directors' loans are interest free and have been repaid in full after the balance sheet date.
17
Deferred taxation
Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:
Assets
Assets
2018
2017
Balances:
£
£
Tax losses
120,000
120,000
There were no deferred tax movements in the year.
The deferred tax asset set out above is expected to reverse within the next one to ten years and relates to the utilisation of tax losses against future expected profits of the same period.
18
Retirement benefit schemes
2018
2017
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
47,979
53,735
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
LANTOR (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2018
- 20 -
19
Share capital
2018
2017
£
£
Ordinary share capital
Issued and fully paid
1,000,091 Ordinary shares of £1 each
1,000,091
1,000,091
Preference share capital
Issued and fully paid
500,000 Preference shares of £1 each
500,000
500,000
20
Financial commitments, guarantees and contingent liabilities
The company has given a guarantee together with BFF Nonwovens Limited and Square Foot Concepts Limited, supported by a debenture charge over its assets, in respect of a loan facility and an overdraft facility provided by Lloyds Bank Plc to Nonwovenn Ltd, the parent company. At 31 March 2018 there was a balance of £4,078,125 (2017: £5,890,625) on the loan facility and a balance of £nil (2017: £nil) on the overdraft facility.
21
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2018
2017
£
£
Between two and five years
972,706
1,311,354
LANTOR (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2018
- 21 -
22
Related party transactions
Transactions with related parties
During the year the company entered into the following transactions with related parties:
Purchase of goods
2018
2017
£
£
Entities in which Mr D P Lamb is a director
3,100
2,253
23
Directors' transactions
Transactions in relation to loans from directors during the year are outlined in the table below:
Description
% Rate
Opening balance
Closing balance
£
£
Mr D P Lamb - Director's loan account
-
28,022
28,022
Mr A M Brownlow - Director's loan
-
10,989
10,989
Mr C A Burhop - Director's loan
-
10,989
10,989
50,000
50,000
24
Controlling party
On 29 March 2018 the company's issued share capital was acquired by Nonwovenn Ltd. Prior to that date the company was a wholly-owned subsidiary of Hamsard 3293 Limited, a company which is also a wholly-owned subsidiary of Nonwovenn Ltd.
The ultimate control is with the directors of Nonwovenn Ltd who are also the directors of this company.
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