Company registration number 04180283 (England and Wales)
LANTOR (UK) LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
LANTOR (UK) LIMITED
COMPANY INFORMATION
Directors
Mr D P Lamb
Mr A M Brownlow
Mr S Hellyar
(Appointed 1 December 2022)
Company number
04180283
Registered office
BFF Business Park
and business address
Bath Road
Bridgwater
Somerset
TA6 4NZ
Auditor
Pierce C A Limited
Mentor House
Ainsworth Street
Blackburn
Lancashire
BB1 6AY
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 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Profit and loss account
8
Balance sheet
9
Notes to the financial statements
10 - 22
LANTOR (UK) LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2023
- 1 -

The directors are pleased to present the strategic report and financial statements for the year ended 31 March 2023.

Review of the business

The principal activity of the company is to provide nonwoven fabrics which are smarter 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.

The Company's products serve applications in the industrial market, including face masks, protection/CBRN and filtration.

Similarly, the Company's products for the medical markets specialise in the manufacture of sophisticated products in bandages and advanced wound care.

Part of Lantor (UK) Limited is in the process of being relocated and integrated with the BFF Nonwovens Limited site in Bridgwater. This is a strategic move to streamline the business and significantly reduce the indirect cost base of the business to improve profitability and enable us to deliver an enhanced customer experience for our customers.

Financial Highlights

The results set out in the profit and loss account show that the turnover for the year ended 31 March 2023 was £10.9 million (2022: £7.9 million). Turnover growth during the year was driven by a large contract to supply activated carbon fabric in CBRN suits/undergarments and increased sales of advanced wound care products into the medical market.

Earnings before exceptional costs, interest, tax, depreciation, and amortisation (EBITDA) were £2.06 million (2022: £1.24 million) reflecting a strong operational performance, and managed cost control.

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.

Principal risks and uncertainties

The strength of the business combined with the resilience of our teams have enabled us to deliver a strong performance during challenging times.

The business has robust systems in place and continues to be flexible by working closely with internal and external stakeholders to ensure that the business is able to react to any changes.

Our enterprise focus stays un-wavered on perpetually maximising the sustainable benefits for people and the planet while never letting profit keep us from making a positive sustainable impact.

Through our strategic double materiality approach and several ESG programmes, which are recognised to be the best in class by our business partners, we are constantly lowering our impact on the environment. All our electricity comes from 100% renewable resources. We have introduced an industry-leading unified waste management programme which has allowed us to achieve zero waste to landfill from December 2022.

We do so in active collaboration with the wider industry, customers, suppliers, and all major stakeholders through sustainable innovation to keep enabling the Circular Economy.

LANTOR (UK) LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 2 -

On behalf of the board

Mr D P Lamb
Director
28 September 2023
LANTOR (UK) LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2023
- 3 -

The directors present their annual report and financial statements for the year ended 31 March 2023.

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 A M Brownlow
Mrs P S Thomas
(Resigned 28 September 2022)
Mr S Hellyar
(Appointed 1 December 2022)
Results and dividends

The results for the year are set out on page 8.

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
28 September 2023
LANTOR (UK) LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MARCH 2023
- 4 -

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:

 

 

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
- 5 -
Opinion

We have audited the financial statements of Lantor (UK) Limited (the 'company') for the year ended 31 March 2023 which comprise the profit and loss account, the balance sheet and notes to the financial statements, including 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:

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 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

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 other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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. 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 course of 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 our audit:

LANTOR (UK) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF LANTOR (UK) LIMITED
- 6 -
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 directors' report.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

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.

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

In identifying and assessing risks of material misstatements in respect of irregularities (including fraud) we considered the following:

 

We have also performed specific procedures to consider the risk of management override and of fraud arising in significant transactions outside the normal course of business.

We did not identify a material risk of non-compliance with laws and regulations or of fraud.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

LANTOR (UK) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF LANTOR (UK) LIMITED
- 7 -

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 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
28 September 2023
Statutory Auditor
Mentor House
Ainsworth Street
Blackburn
Lancashire
BB1 6AY
LANTOR (UK) LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2023
- 8 -
2023
2022
Notes
£
£
Turnover
3
10,900,349
7,864,724
Cost of sales
(7,208,599)
(5,001,280)
Gross profit
3,691,750
2,863,444
Administrative expenses
(1,824,001)
(1,875,150)
Other operating income
10,481
42,448
Exceptional operating expenditure
4
(288,133)
(913,346)
Operating profit
5
1,590,097
117,396
Interest payable and similar expenses
7
-
(14,863)
Profit before taxation
1,590,097
102,533
Taxation
8
165,767
(62,899)
Profit for the financial year
1,755,864
39,634

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 2023
31 March 2023
- 9 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
10
2,308,030
1,766,980
Current assets
Stocks
11
1,940,143
1,506,243
Debtors
12
2,943,621
2,520,213
Cash at bank and in hand
175,859
325,199
5,059,623
4,351,655
Creditors: amounts falling due within one year
13
(2,294,195)
(1,441,683)
Net current assets
2,765,428
2,909,972
Total assets less current liabilities
5,073,458
4,676,952
Creditors: amounts falling due after more than one year
14
-
0
(1,562,591)
Provisions for liabilities
Provisions
16
904,316
904,316
Deferred tax liability
17
266,132
62,899
(1,170,448)
(967,215)
Net assets
3,903,010
2,147,146
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
(1,140,116)
(2,895,980)
Total equity
3,903,010
2,147,146
The financial statements were approved by the board of directors and authorised for issue on 28 September 2023 and are signed on its behalf by:
Mr D P Lamb
Director
Company registration number 04180283 (England and Wales)
LANTOR (UK) LIMITED
NOTES TO THE  FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
- 10 -
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

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future.

 

The group has a revolving credit facility available to finance the trading operations and ongoing capital investment of its trading subsidiaries. The directors are not aware of any reasons why this facility will not be maintained.

 

As a result the directors have continued to adopt the going concern basis in preparing the financial statements.

1.3
Turnover
Turnover represents amounts receivable for goods and services net of VAT and trade discounts.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

LANTOR (UK) LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 11 -
1.4
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
Reducing balance over period of lease/Straight line with 0%/10% residual value
Leasehold land and buildings - Other
Period of lease
Plant and machinery
10% Straight line with 10%/40% residual value
Fixtures, fittings & equipment
33% 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.

1.5
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.

1.6
Cash and cash equivalents

Cash and cash equivalents 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.

1.7
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.

LANTOR (UK) LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 12 -
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.

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.

LANTOR (UK) LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 13 -
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 through 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.

1.8
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.9
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.

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.

1.10
Provisions

Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

 

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

LANTOR (UK) LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 14 -
1.11
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.

1.12
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.

1.13
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss 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 leases asset are consumed.

1.14
Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

 

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

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 in the period are included in profit or loss.

2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

LANTOR (UK) LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 15 -
3
Turnover and other revenue

An analysis of the company's turnover is as follows:

2023
2022
£
£
Turnover analysed by class of business
From principal activity
10,900,349
7,864,724
2023
2022
£
£
Other revenue
Government furlough scheme receipts
-
24,888
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
8,424,758
5,337,351
Rest of Europe
879,414
632,385
North and South America
1,034,260
947,910
Rest of World
561,917
947,078
10,900,349
7,864,724
4
Exceptional operating expenditure
2023
2022
£
£
Exceptional expenditure
288,133
913,346

During the previous year the decision was taken to close the company's manufacturing facility in Bolton and to transfer production to the site of the company's registered office in Bridgwater.

 

The exceptional costs relate to the provision made for the above restructuring (see note 16) and to the associated legal and professional fees incurred in the current and the previous year.

 

The total costs disclosed above have been charged in arriving at the operating profit for the current year and the previous year.

LANTOR (UK) LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 16 -
5
Operating profit
2023
2022
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange losses
51,461
48,519
Government furlough scheme receipts
-
(24,888)
Fees payable to the company's auditor for the audit of the company's financial statements
11,825
11,500
Depreciation of owned tangible fixed assets
203,521
180,027
(Profit)/loss on disposal of tangible fixed assets
(24,508)
27,930
Operating lease charges
195,204
209,356

 

6
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2023
2022
Number
Number
Production and engineering
38
42
Sales and administration
24
31
Total
62
73

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
1,814,389
1,829,971
Social security costs
175,821
170,838
Pension costs
64,677
70,911
2,054,887
2,071,720
7
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest payable to group undertakings
-
0
14,863
LANTOR (UK) LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 17 -
8
Taxation
2023
2022
£
£
Deferred tax
Origination and reversal of timing differences
203,233
62,899
Tax losses carried forward
(369,000)
-
0
Total deferred tax
(165,767)
62,899

The actual (credit)/charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2023
2022
£
£
Profit before taxation
1,590,097
102,533
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2022: 19.00%)
302,118
19,481
Tax effect of expenses that are not deductible in determining taxable profit
3,737
127,824
Permanent capital allowances in excess of depreciation
(1,209)
6,321
Research and development tax credit
(67,999)
(67,563)
Other permanent differences
(4,657)
5,307
Effect of changes in estimated future tax rates
(39,784)
15,096
Utilisation of losses brought forward
(77,533)
(43,567)
Deferred tax on future utilisation of accumulated tax losses
(280,440)
-
0
Taxation (credit)/charge for the year
(165,767)
62,899

The company has estimated losses of £4,147,691 (2022: £4,555,761) available for carry forward against future trading profits.

 

 

9
Intangible fixed assets
Goodwill
Patents
Development Costs
Total
£
£
£
£
Cost
At 1 April 2022 and 31 March 2023
10,000
24,024
650,318
684,342
Amortisation and impairment
At 1 April 2022 and 31 March 2023
10,000
24,024
650,318
684,342
Carrying amount
At 31 March 2023
-
0
-
0
-
0
-
At 31 March 2022
-
0
-
0
-
0
-
0
LANTOR (UK) LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 18 -
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 2022
687,858
883,469
4,418,772
270,233
9,500
6,269,832
Additions
-
0
157,507
599,452
4,904
-
0
761,863
Disposals
-
0
-
0
(34,735)
-
0
-
0
(34,735)
At 31 March 2023
687,858
1,040,976
4,983,489
275,137
9,500
6,996,960
Depreciation and impairment
At 1 April 2022
341,505
881,039
3,055,200
218,319
6,789
4,502,852
Depreciation charged in the year
29,738
2,864
146,647
24,272
-
0
203,521
Eliminated in respect of disposals
-
0
-
0
(17,443)
-
0
-
0
(17,443)
At 31 March 2023
371,243
883,903
3,184,404
242,591
6,789
4,688,930
Carrying amount
At 31 March 2023
316,615
157,073
1,799,085
32,546
2,711
2,308,030
At 31 March 2022
346,353
2,430
1,363,572
51,914
2,711
1,766,980
11
Stocks
2023
2022
£
£
Raw materials and consumables
1,213,072
713,053
Work in progress
274,512
272,281
Finished goods and goods for resale
452,559
520,909
1,940,143
1,506,243
12
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
1,981,267
1,717,709
Prepayments and accrued income
287,354
496,504
2,268,621
2,214,213
LANTOR (UK) LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
12
Debtors
(Continued)
- 19 -
2023
2022
Amounts falling due after more than one year:
£
£
Deferred tax asset (note 17)
675,000
306,000
Total debtors
2,943,621
2,520,213
13
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
1,303,398
830,017
Amounts owed to group undertakings
110,774
-
0
Taxation and social security
346,536
233,956
Other creditors
59,319
30,340
Accruals and deferred income
474,168
347,370
2,294,195
1,441,683
14
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Other borrowings
15
-
0
1,562,591
LANTOR (UK) LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 20 -
15
Loans and overdrafts
2023
2022
£
£
Other loans
-
0
1,562,591
Payable after one year
-
0
1,562,591

Included in Other loans are loans of £nil (2022: £1,562,591) from BFF Nonwovens Limited.

 

The above loan was unsecured and interest-bearing.

 

16
Provisions for liabilities
2023
2022
£
£
Restructure provision
904,316
904,316
Movements on provisions:
Restructure provision
£
At 1 April 2022 and 31 March 2023
904,316

The above provision relates to the termination costs estimated to be incurred following the decision taken in the year to close the company's manufacturing facility in Bolton. The costs provided for relate to the estimated dilapidation expenses arising from vacating the leased property and the estimated costs of terminating the employment of the majority of the company's current employees.

 

The provision is expected to be released over the next six to twelve months.

 

LANTOR (UK) LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 21 -
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:

Liabilities
Liabilities
Assets
Assets
2023
2022
2023
2022
Balances:
£
£
£
£
Accelerated capital allowances
266,132
62,899
-
-
Tax losses
-
-
675,000
306,000
266,132
62,899
675,000
306,000
2023
Movements in the year:
£
Asset at 1 April 2022
(243,101)
Credit to profit or loss
(165,767)
Asset at 31 March 2023
(408,868)

The deferred tax asset set out above is expected to reverse within the next two to five years and relates to the utilisation of tax losses against future expected profits of the same period. The deferred tax liability set out above is expected to reverse within five years and relates to accelerated capital allowances that are expected to mature within the same period.

18
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
64,677
70,911

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.

19
Share capital
2023
2022
£
£
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
LANTOR (UK) LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 22 -
20
Financial commitments, guarantees and contingent liabilities

The company has given a guarantee together with Nonwovenn Ltd and Square Foot Concepts Limited, supported by a debenture charge over its assets, in respect of a revolving credit facility provided by Lloyds Bank Plc to BFF Nonwovens Limited, a fellow subsidiary company.

 

At 31 March 2023 there was a balance of £nil (2022: £nil) on the revolving credit 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:

2023
2022
£
£
Within one year
140,000
198,000
Between two and five years
51,485
283,540
191,485
481,540
22
Related party transactions
Transactions with related parties

During the year the company entered into the following transactions with related parties:

Sales
Sales
Purchases
Purchases
2023
2022
2023
2022
£
£
£
£
Entities in which Mr D P Lamb is a director
4,800
-
1,320
1,777

The following amounts were outstanding at the reporting end date:

2023
2022
Amounts due to related parties
£
£
Entities in which Mr D P Lamb is a director
-
403
23
Ultimate controlling party

The company is 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.

2023-03-312022-04-01falseCCH SoftwareCCH Accounts Production 2023.200Mr D P LambMr A M BrownlowMrs P S ThomasMr S HellyarMr C A Burhop041802832022-04-012023-03-3104180283bus:Director12022-04-012023-03-3104180283bus:Director22022-04-012023-03-3104180283bus:Director42022-04-012023-03-3104180283bus:Director32022-04-012023-03-3104180283bus:CompanySecretary12022-04-012023-03-3104180283bus:RegisteredOffice2022-04-012023-03-31041802832023-03-31041802832021-04-012022-03-3104180283core:Goodwill2023-03-3104180283core:PatentsTrademarksLicencesConcessionsSimilar2023-03-3104180283core:DevelopmentCostsCapitalisedDevelopmentExpenditure2023-03-3104180283core:Goodwill2022-03-3104180283core:PatentsTrademarksLicencesConcessionsSimilar2022-03-3104180283core:DevelopmentCostsCapitalisedDevelopmentExpenditure2022-03-31041802832022-03-310418028312022-04-012023-03-310418028312021-04-012022-03-310418028322022-04-012023-03-310418028322021-04-012022-03-3104180283core:LandBuildingscore:OwnedOrFreeholdAssets2023-03-3104180283core:LandBuildingscore:LeasedAssetsHeldAsLessee2023-03-3104180283core:PlantMachinery2023-03-3104180283core:FurnitureFittings2023-03-3104180283core:MotorVehicles2023-03-3104180283core:LandBuildingscore:OwnedOrFreeholdAssets2022-03-3104180283core:LandBuildingscore:LeasedAssetsHeldAsLessee2022-03-3104180283core:PlantMachinery2022-03-3104180283core:FurnitureFittings2022-03-3104180283core:MotorVehicles2022-03-3104180283core:CurrentFinancialInstrumentscore:WithinOneYear2023-03-3104180283core:CurrentFinancialInstrumentscore:WithinOneYear2022-03-3104180283core:Non-currentFinancialInstrumentscore:AfterOneYear2023-03-3104180283core:Non-currentFinancialInstrumentscore:AfterOneYear2022-03-3104180283core:CurrentFinancialInstruments2023-03-3104180283core:CurrentFinancialInstruments2022-03-3104180283core:ShareCapital2023-03-3104180283core:ShareCapital2022-03-3104180283core:SharePremium2023-03-3104180283core:SharePremium2022-03-3104180283core:RetainedEarningsAccumulatedLosses2023-03-3104180283core:RetainedEarningsAccumulatedLosses2022-03-3104180283core:LandBuildingscore:OwnedOrFreeholdAssets2022-04-012023-03-3104180283core:LandBuildingscore:LeasedAssetsHeldAsLessee2022-04-012023-03-3104180283core:PlantMachinery2022-04-012023-03-3104180283core:FurnitureFittings2022-04-012023-03-3104180283core:MotorVehicles2022-04-012023-03-3104180283core:UKTax2022-04-012023-03-3104180283core:UKTax2021-04-012022-03-310418028332022-04-012023-03-310418028332021-04-012022-03-310418028342022-04-012023-03-310418028342021-04-012022-03-3104180283core:Goodwill2022-03-3104180283core:PatentsTrademarksLicencesConcessionsSimilar2022-03-3104180283core:DevelopmentCostsCapitalisedDevelopmentExpenditure2022-03-31041802832022-03-3104180283core:LandBuildingscore:OwnedOrFreeholdAssets2022-03-3104180283core:LandBuildingscore:LeasedAssetsHeldAsLessee2022-03-3104180283core:PlantMachinery2022-03-3104180283core:FurnitureFittings2022-03-3104180283core:MotorVehicles2022-03-3104180283core:Non-currentFinancialInstruments2023-03-3104180283core:Non-currentFinancialInstruments2022-03-3104180283core:WithinOneYear2023-03-3104180283core:WithinOneYear2022-03-3104180283core:BetweenTwoFiveYears2023-03-3104180283core:BetweenTwoFiveYears2022-03-3104180283bus:PrivateLimitedCompanyLtd2022-04-012023-03-3104180283bus:FRS1022022-04-012023-03-3104180283bus:Audited2022-04-012023-03-3104180283bus:FullAccounts2022-04-012023-03-31xbrli:purexbrli:sharesiso4217:GBP