Company registration number 00741075 (England and Wales)
LALTEX & CO. LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2023
LALTEX & CO. LIMITED
COMPANY INFORMATION
Directors
R J Mulchand
S R Mulchand
Secretary
C Price
Company number
00741075
Registered office
Laltex House
Leigh Commerce Park
Greenfold Way
Leigh
Lancashire
United Kingdom
WN7 3XH
Auditor
Azets Audit Services
98 King Street
Manchester
M2 4WU
Bankers
HSBC Bank plc
17th Floor
Landmark
St Peter's Square
1 Oxford Street
Manchester
United Kingdom
M1 4PB
Barclays Bank
1st Floor
3 Hardman Street
Spinningfields
Manchester
United Kingdom
M3 3HF
LALTEX & CO. LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 6
Group statement of income and retained earnings
7
Group balance sheet
8
Company balance sheet
9
Group statement of cash flows
10
Notes to the financial statements
11 - 26
LALTEX & CO. LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 1 -

The directors present the group strategic report alongside the audited financial statements for the year ending 28th February 2023.

Business review and key performance indicators

The directors are satisfied with the operating results for the year given the competitive environment and pandemic restrictions being in place for a proportion of the year.

 

The Group has continued to focus on developing its relationships with both clients and suppliers, alongside introducing new products which have contributed to the results summarised below.

 

The Group’s trading revenue increased to £47.08m (2022: £34.24m).

 

The figures referred to above are considered to be one of the key financial measures upon which the business is monitored and controlled by the directors.

 

The reported results for the year include fair value gains and losses in respect of listed investments and forward exchange contracts, the effects of which are shown below the operating profit on the face of the profit and loss account.

 

In preparing the financial statements, strategic report and directors’ report, the board have fully considered points a – f as set out in s172 of the Companies Act 2006.

Principal risks and uncertainties

Financial Risk Management

The main risks arising are currency exchange risk and credit risk. The directors have reviewed and agreed policies for managing each of these risks.

 

Currency Exchange Risk

The group seeks to manage currency exchange risk through a mixture of hedging instruments and regular reviews by the directors.

 

Credit Risk

The group’s financial assets include amounts due from its customers. This potential risk is managed by our experienced team members and mitigated by the use of credit insurance where applicable.

Year end position

The group’s overall position at year-end reflects the financial strength of the business, which is considered by the directors to be well positioned for the future.

 

The directors would like to acknowledge and give thanks for the incredible hard work and dedication of it’s loyal team members during this financial period.

By order of the board

R J Mulchand
Director
28 November 2023
LALTEX & CO. LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 2 -

The directors present their annual report and financial statements for the year ended 28 February 2023.

Results and dividends

The results for the year are set out on page 7.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

R J Mulchand
S R Mulchand
Energy and carbon report

The Group has made a number of development and strategic decisions to improve its carbon footprint and meet the Group’s ESG objectives on the road to being Net Zero by 2050.

 

Improvements with the collection of data, new processes, new products and more energy efficient procedures will all help contribute to the Group’s strategy in reducing its carbon footprint in future periods.

 

During the year to 28 February 2023, the Group reported its Carbon footprint emissions report. The following summary highlights the amount of energy the Group has consumed.

 

 

Metric tonnes (tCO2e)

 

Emissions of CO2 equivalent

 

 

 

 

Electricity

89.8

 

Gas

48.9

 

Propane gas

1

 

Fleet fuel

52.8

 

Others

15.8

 

 

 

 

Measured carbon footprint

208.3

tCO2e

 

Intensity ratio

Measured CO2 per employee     1.1 tCO2e

 

The intensity ratio has been calculated using the average number of employees across the Group during the year.

LALTEX & CO. LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 3 -
Statement of directors' responsibilities

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 group and company, and of the profit or loss of the group 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 group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

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 auditor of the company 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 auditor of the company is aware of that information.

By order of the board
C Price
Secretary
28 November 2023
LALTEX & CO. LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF LALTEX & CO. LIMITED
- 4 -
Opinion

We have audited the financial statements of Laltex & Co Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 28 February 2023 which comprise the group statement of income and retained earnings, the group balance sheet, the company balance sheet, the group statement of cash flows 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 group and parent 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 group's and parent 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:

LALTEX & CO. LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF LALTEX & CO. LIMITED
- 5 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and their 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 parent 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 parent 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 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.

LALTEX & CO. LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF LALTEX & CO. LIMITED
- 6 -

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.

 

We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework.  Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.  This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.

 

In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:

 

 

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation.  This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance.  The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Use of our report

This report is made solely to the company’s shareholders, 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 shareholders 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 shareholders as a body, for our audit work, for this report, or for the opinions we have formed.

Graham Rigby (Senior Statutory Auditor)
For and on behalf of Azets Audit Services
28 November 2023
Chartered Accountants
Statutory Auditor
Ship Canal House
98 King Street
Manchester
M2 4WU
LALTEX & CO. LIMITED
GROUP STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 7 -
2023
2022
Notes
£
£
Turnover
3
47,077,400
34,237,986
Cost of sales
(26,596,005)
(21,989,191)
Gross profit
20,481,395
12,248,795
Distribution costs
(3,140,494)
(1,460,541)
Administrative expenses
(9,538,940)
(7,385,773)
Other operating income
-
38,128
Operating profit
4
7,801,961
3,440,609
Other interest receivable and similar income
81,487
1,533
Other interest payable and similar expenses
(198,534)
(131,302)
Gain on investments at fair value
(174,097)
181,509
Income from fixed asset investments
92,362
88,563
Gain / (Loss) on disposal of current asset investments
23,181
28,183
Profit before exceptional items
7,626,360
3,609,095
Exceptional gains and losses on foreign exchange derivatives
(45,363)
192,376
Profit before taxation
7,580,997
3,801,471
Tax on profit
7
(1,425,568)
(749,264)
Profit for the financial year
20
6,155,429
3,052,207
Retained earnings brought forward
26,785,477
24,613,516
Dividends
(1,080,540)
(880,246)
Retained earnings carried forward
31,860,366
26,785,477
Profit for the financial year is all attributable to the owner of the parent company.
LALTEX & CO. LIMITED
GROUP BALANCE SHEET
AS AT
28 FEBRUARY 2023
28 February 2023
- 8 -
2023
2022
Notes
£
£
£
£
Fixed assets
Goodwill
10
2,348,166
2,696,043
Tangible assets
9
7,601,513
7,064,863
Investments
11
-
0
1,230
9,949,679
9,762,136
Current assets
Stocks
13
16,546,904
13,540,814
Debtors
15
6,827,801
5,629,444
Investments
14
2,831,714
2,896,804
Cash at bank and in hand
10,734,534
10,328,729
36,940,953
32,395,791
Creditors: amounts falling due within one year
16
(14,280,266)
(14,622,450)
Net current assets
22,660,687
17,773,341
Net assets
32,610,366
27,535,477
Capital and reserves
Called up share capital
19
600,000
600,000
Capital redemption reserve
20
150,000
150,000
Profit and loss reserves
20
31,860,366
26,785,477
Total equity
32,610,366
27,535,477
The financial statements were approved by the board of directors and authorised for issue on
28 November 2023
28 November 2023
and are signed on its behalf by:
R J Mulchand
Director
Company registration number 00741075 (England and Wales)
LALTEX & CO. LIMITED
COMPANY BALANCE SHEET
AS AT 28 FEBRUARY 2023
2023-02-28
- 9 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
9
6,413,830
6,306,579
Investments
11
4,828,250
4,828,796
11,242,080
11,135,375
Current assets
Stocks
13
-
218,590
Debtors
15
8,671,796
10,939,482
Investments
14
2,831,714
2,896,804
Cash at bank and in hand
133,785
705,860
11,637,295
14,760,736
Creditors: amounts falling due within one year
16
(3,493,736)
(7,955,476)
Net current assets
8,143,559
6,805,260
Net assets
19,385,639
17,940,635
Capital and reserves
Called up share capital
19
600,000
600,000
Capital redemption reserve
20
150,000
150,000
Profit and loss reserves
20
18,635,639
17,190,635
Total equity
19,385,639
17,940,635
The financial statements were approved by the board of directors and authorised for issue on 28 November 2023 and are signed on its behalf by:
28 November 2023
R J Mulchand
Director
Company registration number 00741075 (England and Wales)
LALTEX & CO. LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 10 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
24
5,404,780
(184,984)
Income taxes paid
(822,549)
(318,632)
Net cash inflow/(outflow) from operating activities
4,582,231
(503,616)
Investing activities
Purchase of tangible fixed assets
(1,156,958)
(852,053)
Proceeds on disposal of tangible fixed assets
29,197
49,449
Loss on disposal of current assets investments
23,181
28,183
Management of liquid resources
(109,007)
(173,883)
Interest received
81,487
1,533
Dividends received
92,362
88,563
Net cash used in investing activities
(1,039,738)
(858,208)
Financing activities
Movement in import loans
(2,057,918)
3,552,411
Interest paid
(198,524)
(131,302)
Dividends paid to equity shareholders
(880,246)
(698,799)
Net cash (used in)/generated from financing activities
(3,136,688)
2,722,310
Net increase in cash and cash equivalents
405,805
1,360,486
Cash and cash equivalents at beginning of year
10,328,729
8,968,243
Cash and cash equivalents at end of year
10,734,534
10,328,729
LALTEX & CO. LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 11 -
1
Accounting policies
Company information

Laltex & Co. Limited (“the company”) is a private company limited by shares incorporated in England and Wales. The registered office is Laltex House, Leigh Commerce Park, Greenfold Way, Leigh, Lancashire, WN7 3XH.

 

The group consists of Laltex & Co. Limited and all of its subsidiaries.

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, modified to include certain financial instruments at fair value. 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 for parent company information presented within the consolidated financial statements:

 

 

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £2,525,544 (2022 - £2,328,122 profit).

1.2
Basis of consolidation

The consolidated financial statements present the results of the parent company and subsidiaries ("the group") as a single entity. Intercompany transactions and balances between group companies are eliminated in full.

 

The consolidated financial statements incorporate the results of business combinations using the purchase method. In the balance sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognized at their fair values at the acquisition date. The results of acquired operations are included in the consolidated statement of comprehensive income from the date on which control is obtained. They are deconsolidated from the date control ceases.

LALTEX & CO. LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
1
Accounting policies
(Continued)
- 12 -
1.3
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.4
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

 

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.

1.5
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.

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:

Freehold property
2% on cost
Leasehold improvements
2% on cost
Plant and machinery
25% on cost
Fixtures, fittings and equipment
15% on cost
Motor vehicles
25% on reducing balance

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 recognised in the profit and loss account.

1.7
Investments

Investments in subsidiaries are measured at cost less accumulated impairment.

 

Investments held as fixed assets are shown at cost less provision for impairment. Current asset investments, which comprise cash and equities, are held at fair value taking into account the external market values of such instruments.

1.8
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a weighted average basis.

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.

LALTEX & CO. LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
1
Accounting policies
(Continued)
- 13 -
1.9
Financial instruments

The group 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 group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and 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. 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.

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 group 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 group after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, are initially recognised at transaction price unless the

arrangement constitutes a financing transaction. Financial liabilities classified as payable within one yearare 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. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Other financial liabilities

Derivatives, including 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.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

LALTEX & CO. LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
1
Accounting policies
(Continued)
- 14 -
1.10
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.

1.11
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 group’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.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. 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. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.12
Retirement benefits

The group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the group pays fixed contributions into a separate entity. Once the contributions have been paid the group has no further payment obligations.

 

The contributions are recognised as an expense in the profit and loss account when they fall due. Amounts not paid are shown in accruals as a liability in the balance sheet. The assets of the plan are held separately from the group in independently administered funds.

LALTEX & CO. LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
1
Accounting policies
(Continued)
- 15 -
1.13
Foreign exchange

The company's functional and presentational currency is GBP.

 

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

 

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the profit and loss account.

 

"Exceptional gains and losses on foreign currency retranslation" comprises realised and unrealised gains and losses in respect of currency trading during the year and open positions at the balance sheet date, together with month on month retranslation of monetary assets and liabilities, which are separately disclosed in the statement of income and retained earnings where material.

2
Judgements and key sources of estimation uncertainty

In the application of the group’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.

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Provision for doubtful debts

The directors have reviewed the trading balances owing to the company from its customers and made adequate provision for any debts where it is considered probable that the amount will not be recovered. The amounts would have otherwise been recognized in trade debtors.

Provision for slow moving stock

The directors have applied their knowledge of the operations of the business when reviewing the stock listing at the balance sheet date, and have made appropriate provision for any items deemed to be slow moving or obsolete. The charge to the profit and loss account is recognized in cost of sales.

LALTEX & CO. LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 16 -
3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
44,952,681
32,020,980
Rest of Europe
2,065,019
2,104,899
Rest of world
59,700
112,107
47,077,400
34,237,986
4
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging/(crediting):
Government grants
-
(38,128)
Depreciation of owned tangible fixed assets
599,775
494,860
Amortisation of intangible assets
347,877
347,877
Rental and lease charges
5,668
10,127
Non audit fees
8,240
4,500
Auditors' remuneration
23,760
20,450
5
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
84,420
84,420
6
Employees

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

2023
2022
Number
Number
Distribution and administration
128
116
Management
66
30
194
146
LALTEX & CO. LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
6
Employees
(Continued)
- 17 -

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
4,651,040
3,608,352
Social security costs
462,255
346,145
Pension costs
138,407
106,656
5,251,702
4,061,153
7
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
1,352,406
610,091
Adjustments in respect of prior periods
(132,830)
2,799
Total current tax
1,219,576
612,890
Deferred tax
Origination and reversal of timing differences
205,992
139,462
Adjustment in respect of prior periods
-
(3,088)
Total deferred tax
205,992
136,374
Total tax charge
1,425,568
749,264
LALTEX & CO. LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
7
Taxation
(Continued)
- 18 -

The actual 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
7,580,997
3,801,471
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2022: 19.00%)
1,440,389
722,279
Tax effect of expenses that are not deductible in determining taxable profit
96,550
73,787
Tax effect of income not taxable in determining taxable profit
(17,549)
(56,668)
Adjustments in respect of prior years
(132,830)
2,799
Depreciation on assets not qualifying for tax allowances
38,033
39,378
Research and development tax credit
-
0
(26,007)
Deferred tax adjustments in respect of prior years
-
(3,088)
Enhanced capital allowances
(48,463)
(36,963)
Difference in tax rates
49,438
33,747
Taxation charge
1,425,568
749,264
8
Dividends
2023
2022
£
£
Dividends payable
1,080,540
880,246
LALTEX & CO. LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 19 -
9
Tangible fixed assets
Group
Freehold property
Leasehold improvements
Plant and machinery
Fixtures, fittings and equipment
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 March 2022
6,634,584
592,197
1,597,793
1,656,588
370,406
10,851,568
Additions
230,136
-
0
783,753
37,382
105,687
1,156,958
Disposals
-
0
-
0
-
0
-
0
(64,126)
(64,126)
At 28 February 2023
6,864,720
592,197
2,381,545
1,693,971
411,967
11,944,400
Depreciation and impairment
At 1 March 2022
1,272,175
59,420
891,754
1,417,393
145,963
3,786,705
Depreciation charged in the year
133,877
11,844
306,315
81,767
65,972
599,775
Eliminated in respect of disposals
-
0
-
0
-
0
-
0
(43,593)
(43,593)
At 28 February 2023
1,406,052
71,264
1,198,069
1,499,160
168,342
4,342,887
Carrying amount
At 28 February 2023
5,458,668
520,933
1,183,476
194,811
243,625
7,601,513
At 28 February 2022
5,362,409
532,777
706,039
239,195
224,443
7,064,863
LALTEX & CO. LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
9
Tangible fixed assets
(Continued)
- 20 -
Company
Freehold property
Leasehold improvements
Plant and machinery
Fixtures, fittings and equipment
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 March 2022
6,634,584
592,197
251,113
1,655,102
202,848
9,335,844
Additions
230,136
-
0
97,634
30,144
61,782
419,696
Disposals
-
0
-
0
-
0
-
0
(43,500)
(43,500)
At 28 February 2023
6,864,720
592,197
348,747
1,685,246
221,130
9,712,040
Depreciation and impairment
At 1 March 2022
1,272,175
59,420
176,369
1,416,072
105,229
3,029,265
Depreciation charged in the year
133,877
11,844
42,294
80,916
32,287
301,218
Eliminated in respect of disposals
-
0
-
0
-
0
-
0
(32,273)
(32,273)
At 28 February 2023
1,406,052
71,264
218,663
1,496,988
105,243
3,298,210
Carrying amount
At 28 February 2023
5,458,668
520,933
130,084
188,258
115,887
6,413,830
At 28 February 2022
5,362,409
532,777
74,744
239,030
97,619
6,306,579
10
Intangible fixed assets
Group
Goodwill
£
Cost
At 1 March 2022 and 28 February 2023
3,478,767
Amortisation and impairment
At 1 March 2022
782,724
Amortisation charged for the year
347,877
At 28 February 2023
1,130,601
Carrying amount
At 28 February 2023
2,348,166
At 28 February 2022
2,696,043
The company had no intangible fixed assets at 28 February 2023 or 28 February 2022.
LALTEX & CO. LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 21 -
11
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
12
-
-
0
4,828,250
4,828,250
Unlisted investments
-
0
1,230
-
0
546
-
0
1,230
4,828,250
4,828,796
Movements in fixed asset investments
Company
Shares in group undertakings
Unlised investments
Total
£
£
£
Cost or valuation
At 1 March 2022 and 28 February 2023
4,828,250
546
4,828,796
Impairment
At 1 March 2022
-
-
-
Disposals
-
546
546
At 28 February 2023
-
546
546
Carrying amount
At 28 February 2023
4,828,250
-
4,828,250
At 28 February 2022
4,828,250
546
4,828,796
LALTEX & CO. LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 22 -
12
Subsidiaries

The company owned 100% of the ordinary share capital of the following subsidiaries at the balance sheet date:

Name of undertaking
Country of
Nature of business
incorporation
KS Brands Limited
England & Wales
Import and distribution of a diversified range of consumer products
Lloytron Limited (previously Lloytron Plc)
England & Wales
Import and distribution of a diversified range of consumer products
RJM International Limited
England & Wales
Import and distribution of a diversified range of consumer products
The Printed Pen Company Limited
England & Wales
Import and distribution of a diversified range of consumer products
Laltex Ireland Limited
Ireland
Import and distribution of a diversified range of consumer products into the Ireland market
13
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Finished goods and goods for resale
16,546,904
13,540,814
-
0
218,590
14
Current asset investments
Group
Company
2023
2022
2023
2022
£
£
£
£
Listed investments, derivatives and cash
2,831,714
2,896,804
2,831,714
2,896,804
LALTEX & CO. LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 23 -
15
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
6,416,190
4,900,038
58,993
175,649
Corporation tax recoverable
-
0
-
0
83,031
23,031
Amounts owed by group undertakings
-
-
6,987,292
9,095,740
Amounts owed by related undertakings
-
46,427
-
40
Other debtors
27,982
9,225
27,982
9,225
Prepayments and accrued income
219,511
303,644
1,114,323
1,135,782
6,663,683
5,259,334
8,271,621
10,439,467
Deferred tax asset (note 17)
164,118
370,110
400,175
500,015
6,827,801
5,629,444
8,671,796
10,939,482
16
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
£
£
£
£
Import loans
4,041,283
6,099,202
-
0
4,759,337
Trade creditors
3,847,521
3,374,880
140,445
277,108
Corporation tax payable
885,676
490,086
-
0
-
0
Other taxation and social security
1,112,396
1,209,776
48,441
43,715
Derivative financial instruments
54,013
8,433
42,653
7,761
Dividends payable
1,080,540
880,246
1,080,540
880,246
Other creditors
1,880,022
1,607,107
1,867,695
1,597,408
Accruals and deferred income
1,378,815
952,720
313,962
389,901
14,280,266
14,622,450
3,493,736
7,955,476

Import loans are secured by a general pledge over the underlying documents and an unlimited company guarantee given by Laltex & Co Limited.

LALTEX & CO. LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 24 -
17
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

Assets
Assets
2023
2022
Group
£
£
Accelerated capital allowances
(627,608)
(422,993)
Tax losses
789,127
791,196
Short term timing differences
2,599
1,907
164,118
370,110
Assets
Assets
2023
2022
Company
£
£
Accelerated capital allowances
(390,140)
(292,207)
Tax losses
789,126
791,196
Short term timing differences
1,189
1,026
400,175
500,015
Group
Company
2023
2023
Movements in the year:
£
£
Asset at 1 March 2022
(370,110)
(500,015)
Charge to profit or loss
205,992
99,840
Asset at 28 February 2023
(164,118)
(400,175)

The deferred tax asset in respect of losses carried forward relates to capital losses available for offset against future capital gains, the timing of which cannot be determined with reasonable certainty.

18
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
138,407
106,656

The group operates a defined contribution scheme. The assets of the scheme are held separately from those of the group in an independently administered fund.

 

The pension charge represents contributions payable by the group to the scheme in the year to 28 February 2022.

LALTEX & CO. LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 25 -
19
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary "A" shares of £1 each
224,067
224,067
224,067
224,067
Ordinary "B" shares of £1 each
150,000
150,000
150,000
150,000
Ordinary "C" shares of £1 each
125,721
125,721
124,721
125,721
Ordinary "D" shares of £1 each
88,212
88,212
88,212
88,212
Ordinary "E" shares of £1 each
6,000
6,000
6,000
6,000
Ordinary "F" shares of £1 each
6,000
6,000
6,000
6,000
600,000
600,000
600,000
600,000

Subsequent to the year end 1,005,768 £1 Preference Shares were issued on 20 October 2023.

20
Reserves
Profit and loss reserves

The profit and loss account represents accumulated trading profit, less equity dividends paid.

Capital redemption reserve

The capital redemption reserve represents the nominal value of shares historically repurchased by the company for cancellation.

21
Financial commitments, guarantees and contingent liabilities

The company has given an unlimited cross-guarantee to the group's bankers in respect of the present and future indebtedness of Laltex & Co Limited, KS Brands Limited, Lloytron Limited (previously Lloytron Plc) and RJM International Limited. Present liabilities secured under this cross-guarantee, including bank loans, overdrafts, import loans and bills of exchange are disclosed within the financial statements of each company. In respect of future indebtedness the group's bankers have, in aggregate, provided letters of credit of £211,732 (2022: £933,051) across the four companies.

22
Related party transactions

During the year, the group purchased goods for resale from a related party for £8,672,342 (2022: £3,981,836). At the year end, the group owed £3,472,057 (2022: £2,273,650) to the related party.

 

The amounts outstanding at the balance sheet date represent normal trade bills and do not include any substantial long term indebtedness.

 

At the year end the group owed £1,852,469 (2022: £1,583,558) to the directors of the group, the balances are included within other creditors due within one year. Interest is charged on the balance at a commercial rate agreed by the Board of Directors.

 

During the year, the group made a donation of £nil (2022: £250,000) to a charity in which both of the directors of the company are trustees.

 

LALTEX & CO. LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 26 -
23
Controlling party

The group had no single controlling party in the current or preceding period.

24
Cash generated from/(absorbed by) group operations
2023
2022
£
£
Profit for the year after tax
6,155,429
3,052,207
Adjustments for:
Taxation charged
1,425,568
749,264
Finance costs
198,534
131,302
Investment income
(81,487)
(1,533)
Gain on disposal of tangible fixed assets
(8,664)
(17,952)
Fair value movements on forward contracts
45,363
187,599
Gain/(loss) on disposal of current assets investments
(23,181)
(28,183)
Dividends received
(92,362)
(88,563)
Amortisation and impairment of intangible assets
347,877
347,877
Depreciation and impairment of tangible fixed assets
599,775
494,860
Fair value movement on investments
174,097
(181,509)
Movements in working capital:
Increase in stocks
(3,006,090)
(3,921,116)
Increase in debtors
(1,404,349)
(2,184,355)
Increase/(decrease) in creditors
1,218,938
(1,379,598)
Cash generated from/(absorbed by) operations
5,549,448
(2,839,700)
25
Analysis of changes in net funds - group
1 March 2022
Cash flows
28 February 2023
£
£
£
Cash at bank and in hand
10,328,729
405,805
10,734,534
Borrowings excluding overdrafts
(6,099,202)
2,057,919
(4,041,283)
4,229,527
2,463,724
6,693,251
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