Lima Engineering (Polyurethanes) Limited 04501373 false 2022-03-01 2023-02-28 2023-02-28 The principal activity of the company is polyurethane and rubber processing and light engineering. Digita Accounts Production Advanced 6.30.9574.0 true 04501373 2022-03-01 2023-02-28 04501373 2023-02-28 04501373 bus:Director2 1 2023-02-28 04501373 core:CurrentFinancialInstruments 2023-02-28 04501373 core:CurrentFinancialInstruments core:WithinOneYear 2023-02-28 04501373 core:Non-currentFinancialInstruments 2023-02-28 04501373 core:Non-currentFinancialInstruments core:AfterOneYear 2023-02-28 04501373 core:Goodwill 2023-02-28 04501373 core:FurnitureFittingsToolsEquipment 2023-02-28 04501373 core:MotorVehicles 2023-02-28 04501373 core:EntitiesWithJointControlOrSignificantInfluenceOverReportingEntity 2023-02-28 04501373 core:OtherRelatedParties 2023-02-28 04501373 bus:SmallEntities 2022-03-01 2023-02-28 04501373 bus:AuditExemptWithAccountantsReport 2022-03-01 2023-02-28 04501373 bus:FullAccounts 2022-03-01 2023-02-28 04501373 bus:SmallCompaniesRegimeForAccounts 2022-03-01 2023-02-28 04501373 bus:RegisteredOffice 2022-03-01 2023-02-28 04501373 bus:CompanySecretary1 2022-03-01 2023-02-28 04501373 bus:Director2 2022-03-01 2023-02-28 04501373 bus:Director2 1 2022-03-01 2023-02-28 04501373 bus:Director3 2022-03-01 2023-02-28 04501373 bus:Director4 2022-03-01 2023-02-28 04501373 bus:PrivateLimitedCompanyLtd 2022-03-01 2023-02-28 04501373 bus:Agent1 2022-03-01 2023-02-28 04501373 core:Goodwill 2022-03-01 2023-02-28 04501373 core:FurnitureFittings 2022-03-01 2023-02-28 04501373 core:FurnitureFittingsToolsEquipment 2022-03-01 2023-02-28 04501373 core:MotorVehicles 2022-03-01 2023-02-28 04501373 core:OfficeEquipment 2022-03-01 2023-02-28 04501373 core:PlantMachinery 2022-03-01 2023-02-28 04501373 core:EntitiesWithJointControlOrSignificantInfluenceOverReportingEntity 2022-03-01 2023-02-28 04501373 core:OtherRelatedParties 2022-03-01 2023-02-28 04501373 core:ParentEntities 2022-03-01 2023-02-28 04501373 countries:EnglandWales 2022-03-01 2023-02-28 04501373 2022-02-28 04501373 bus:Director2 1 2022-02-28 04501373 core:Goodwill 2022-02-28 04501373 core:FurnitureFittingsToolsEquipment 2022-02-28 04501373 core:MotorVehicles 2022-02-28 04501373 core:EntitiesWithJointControlOrSignificantInfluenceOverReportingEntity 2022-02-28 04501373 core:OtherRelatedParties 2022-02-28 04501373 2021-03-01 2022-02-28 04501373 2022-02-28 04501373 bus:Director2 1 2022-02-28 04501373 core:CurrentFinancialInstruments 2022-02-28 04501373 core:CurrentFinancialInstruments core:WithinOneYear 2022-02-28 04501373 core:Non-currentFinancialInstruments 2022-02-28 04501373 core:Non-currentFinancialInstruments core:AfterOneYear 2022-02-28 04501373 core:FurnitureFittingsToolsEquipment 2022-02-28 04501373 core:MotorVehicles 2022-02-28 04501373 core:EntitiesWithJointControlOrSignificantInfluenceOverReportingEntity 2022-02-28 04501373 core:OtherRelatedParties 2022-02-28 04501373 bus:Director2 1 2021-03-01 2022-02-28 04501373 core:EntitiesWithJointControlOrSignificantInfluenceOverReportingEntity 2021-03-01 2022-02-28 04501373 core:OtherRelatedParties 2021-03-01 2022-02-28 04501373 2021-02-28 04501373 bus:Director2 1 2021-02-28 04501373 core:EntitiesWithJointControlOrSignificantInfluenceOverReportingEntity 2021-02-28 04501373 core:OtherRelatedParties 2021-02-28 iso4217:GBP xbrli:pure

Registration number: 04501373

Lima Engineering (Polyurethanes) Limited

Annual Report and Unaudited Financial Statements

for the Year Ended 28 February 2023

 

Lima Engineering (Polyurethanes) Limited

Contents

Company Information

1

Accountants' Report

2

Balance Sheet

3

Notes to the Unaudited Financial Statements

4 to 10

 

Lima Engineering (Polyurethanes) Limited

Company Information

Directors

Mr S M Latimer

Mr A E Latimer

Mr J R Latimer

Company secretary

Mr B M Latimer

Registered office

Riverside Works
Brunswick Street
Nelson
Lancashire
BB9 0HZ

Accountants

Hargreaves Brown & Benson
Chartered Accountants
1 Bond Street
Colne
Lancashire
BB8 9DG

 

Chartered Accountants' Report to the Board of Directors on the Preparation of the Unaudited Statutory Accounts of
Lima Engineering (Polyurethanes) Limited
for the Year Ended 28 February 2023

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the accounts of Lima Engineering (Polyurethanes) Limited for the year ended 28 February 2023 as set out on pages 3 to 10 from the company's accounting records and from information and explanations you have given us.

As a practising member firm of the Institute of Chartered Accountants in England and Wales (ICAEW), we are subject to its ethical and other professional requirements which are detailed at
http://www.icaew.com/regulation.

This report is made solely to the Board of Directors of Lima Engineering (Polyurethanes) Limited, as a body. Our work has been undertaken solely to prepare for your approval the accounts of Lima Engineering (Polyurethanes) Limited and state those matters that we have agreed to state to the Board of Directors of Lima Engineering (Polyurethanes) Limited, as a body, in this report in accordance with ICAEW Technical Release 07/16 AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Lima Engineering (Polyurethanes) Limited and its Board of Directors as a body for our work or for this report.

It is your duty to ensure that Lima Engineering (Polyurethanes) Limited has kept adequate accounting records and to prepare statutory accounts that give a true and fair view of the assets, liabilities, financial position and profit of Lima Engineering (Polyurethanes) Limited. You consider that Lima Engineering (Polyurethanes) Limited is exempt from the statutory audit requirement for the year.

We have not been instructed to carry out an audit or a review of the accounts of Lima Engineering (Polyurethanes) Limited. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory accounts.

......................................

Hargreaves Brown & Benson
Chartered Accountants
1 Bond Street
Colne
Lancashire
BB8 9DG

25 October 2023

 

Lima Engineering (Polyurethanes) Limited

(Registration number: 04501373)
Balance Sheet as at 28 February 2023

Note

2023
£

2022
£

Fixed assets

 

Tangible assets

5

26,847

12,352

Current assets

 

Stocks

6

34,183

35,982

Debtors

7

259,140

300,948

Cash at bank and in hand

 

118,985

90,598

 

412,308

427,528

Creditors: Amounts falling due within one year

8

(111,277)

(128,729)

Net current assets

 

301,031

298,799

Total assets less current liabilities

 

327,878

311,151

Creditors: Amounts falling due after more than one year

8

(24,167)

(34,167)

Provisions for liabilities

(6,004)

(7,513)

Net assets

 

297,707

269,471

Capital and reserves

 

Called up share capital

1,000

1,000

Revaluation reserve

31,314

31,314

Retained earnings

265,393

237,157

Shareholders' funds

 

297,707

269,471

For the financial year ending 28 February 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476; and

The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime and the option not to file the Profit and Loss Account has been taken.

Approved and authorised by the Board on 25 October 2023 and signed on its behalf by:
 

.........................................
Mr S M Latimer
Director

.........................................
Mr A E Latimer
Director

.........................................
Mr J R Latimer
Director

     
 

Lima Engineering (Polyurethanes) Limited

Notes to the Unaudited Financial Statements for the Year Ended 28 February 2023

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
Riverside Works
Brunswick Street
Nelson
Lancashire
BB9 0HZ

These financial statements were authorised for issue by the Board on 25 October 2023.

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A smaller entities - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006 (as applicable to companies subject to the small companies' regime).

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Plant and machinery

15% straight line

Fixtures and fittings

15% straight line

Motor vehicles

25% straight line

Office equipment

15% straight line

 

Lima Engineering (Polyurethanes) Limited

Notes to the Unaudited Financial Statements for the Year Ended 28 February 2023

Goodwill

Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the company’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each reporting period date. Goodwill is amortised over its useful life, which shall not exceed ten years if a reliable estimate of the useful life cannot be made.

Amortisation

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:

Asset class

Amortisation method and rate

Goodwill

10% straight line

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.

The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

 

Lima Engineering (Polyurethanes) Limited

Notes to the Unaudited Financial Statements for the Year Ended 28 February 2023

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Dividends

Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

3

Staff numbers

The average number of persons employed by the company (including directors) during the year was 6 (2022 - 5).

 

Lima Engineering (Polyurethanes) Limited

Notes to the Unaudited Financial Statements for the Year Ended 28 February 2023

4

Intangible assets

Goodwill
 £

Total
£

Cost or valuation

At 1 March 2022

200,000

200,000

At 28 February 2023

200,000

200,000

Amortisation

At 1 March 2022

200,000

200,000

At 28 February 2023

200,000

200,000

Carrying amount

At 28 February 2023

-

-

5

Tangible assets

Furniture, fittings and equipment
 £

Motor vehicles
 £

Total
£

Cost or valuation

At 1 March 2022

383,932

34,982

418,914

Additions

21,650

-

21,650

At 28 February 2023

405,582

34,982

440,564

Depreciation

At 1 March 2022

371,580

34,982

406,562

Charge for the year

7,155

-

7,155

At 28 February 2023

378,735

34,982

413,717

Carrying amount

At 28 February 2023

26,847

-

26,847

At 28 February 2022

12,352

-

12,352

 

Lima Engineering (Polyurethanes) Limited

Notes to the Unaudited Financial Statements for the Year Ended 28 February 2023

6

Stocks

2023
£

2022
£

Other inventories

34,183

35,982

7

Debtors

2023
£

2022
£

Trade debtors

94,316

72,877

Prepayments

15,642

16,640

Other debtors

149,182

211,431

259,140

300,948

8

Creditors

Creditors: amounts falling due within one year

Note

2023
£

2022
£

Due within one year

 

Loans and borrowings

9

10,000

15,939

Trade creditors

 

36,524

50,366

Amounts owed to group undertakings and undertakings in which the company has a participating interest

10

17,872

-

Taxation and social security

 

38,603

26,767

Accruals and deferred income

 

5,170

5,170

Other creditors

 

3,108

30,487

 

111,277

128,729

Creditors: amounts falling due after more than one year

Note

2023
£

2022
£

Due after one year

 

Loans and borrowings

9

24,167

34,167

 

Lima Engineering (Polyurethanes) Limited

Notes to the Unaudited Financial Statements for the Year Ended 28 February 2023

9

Loans and borrowings

2023
£

2022
£

Non-current loans and borrowings

Bank borrowings

24,167

34,167

2023
£

2022
£

Current loans and borrowings

Bank borrowings

10,000

15,939

10

Related party transactions

Transactions with directors

2023

At 1 March 2022
£

Repayments by director
£

At 28 February 2023
£

Mr S M Latimer

Repayable on demand

6,091

(6,091)

-

       
     

 

2022

At 1 March 2021
£

Advances to director
£

Repayments by director
£

At 28 February 2022
£

Mr S M Latimer

Repayable on demand

7,178

14,773

(15,860)

6,091

         
       

 

The company is a wholly owned subsidiary of:

Lima Engineering Holdings Ltd
Riverside Works
Riverside Industrial Park
Brunswick Street
Nelson
BB9 0HZ

 

 

Lima Engineering (Polyurethanes) Limited

Notes to the Unaudited Financial Statements for the Year Ended 28 February 2023

Summary of transactions with entities with joint control or significant interest

Blackhill Trading Company Ltd
 

Summary of transactions with other related parties

Mr B Latimer (majority shareholder)
 

Loans to related parties

2023

Entities with joint control or significant influence
£

Other related parties
£

Total
£

At start of period

149,573

55,757

205,330

Repaid

-

(55,757)

(55,757)

At end of period

149,573

-

149,573

2022

Entities with joint control or significant influence
£

Other related parties
£

Total
£

At start of period

145,524

44,082

189,606

Advanced

4,049

13,675

17,724

Repaid

-

(2,000)

(2,000)

At end of period

149,573

55,757

205,330