Company registration number 14626147 (England and Wales)
SORMAC LTD
FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023
PAGES FOR FILING WITH REGISTRAR
SORMAC LTD
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 8
SORMAC LTD
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 1 -
2023
Notes
£
£
Fixed assets
Tangible assets
3
422,814
Current assets
Debtors
4
197,909
Cash at bank and in hand
74,782
272,691
Creditors: amounts falling due within one year
5
(667,555)
Net current liabilities
(394,864)
Total assets less current liabilities
27,950
Creditors: amounts falling due after more than one year
6
(250,000)
Net liabilities
(222,050)
Capital and reserves
Called up share capital
7
1,000
Profit and loss reserves
(223,050)
Total equity
(222,050)

The notes on pages 2 to 8 form part of these financial statements.

The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the board of directors and authorised for issue on 8 February 2024 and are signed on its behalf by:
R v Essen
Director
Company registration number 14626147 (England and Wales)
SORMAC LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 2 -
1
Accounting policies
Company information

Sormac Ltd is a private company limited by shares incorporated in England and Wales. The registered office is Unit B4 Risby Business Park, Newmarket Road, Risby, Bury St Edmunds, IP28 6RD.

1.1
Reporting period

The company was incorporated on 30 January 2023. These financial statements are prepared for the period ending 31 December 2023, in order to align the reporting date with other group companies.

1.2
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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

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.

1.3
Going concern

Although the company has made a loss in the period and is in a net current liability position at the reporting date primarily due to amounts owed to other group companies, the directors have received assurances from another group company that it will continue to support to provide financial support as needed for at least a period of 12 months following the approval of these financial statements. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.4
Turnover

Turnover relates to sales of vegetable processing machines on behalf of other group companies and is recognised at the fair value of the consideration received or receivable for goods provided in the normal course of business, net of VAT and other sales related taxes. The fair value of consideration takes into account any applicable trade discounts, settlement discounts and volume rebates.

 

Revenue is recognised when the significant risks and rewards of ownership of the machines have passed to the buyer, 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.

 

The significant risks and rewards of ownership typically transfer to buyers on delivery of the machines, provided that on-site acceptance by the customer is considered probable.

 

Where payments on accounts are received from customers in advance of the point at which revenue is recognised, such payments on account are recognised as deferred income.

1.5
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.

SORMAC LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 3 -

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 land and buildings
25 years straight line
Plant and equipment
5 years straight line
Fixtures and fittings
5 years straight line
Computers
5 years straight line
Motor vehicles
5 years reducing balance

Freehold land is not depreciated.

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.

1.6
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.7
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.

SORMAC LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 4 -
1.8
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.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities

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

 

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.

1.9
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.

1.10
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.

1.11
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

SORMAC LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 5 -
2
Employees

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

2023
Number
Total
3
3
Tangible fixed assets
Land and buildings
Plant and machinery etc
Total
£
£
£
Cost
At 30 January 2023
-
0
-
0
-
0
Additions
326,551
108,703
435,254
At 31 December 2023
326,551
108,703
435,254
Depreciation and impairment
At 30 January 2023
-
0
-
0
-
0
Depreciation charged in the period
3,689
8,751
12,440
At 31 December 2023
3,689
8,751
12,440
Carrying amount
At 31 December 2023
322,862
99,952
422,814
4
Debtors
2023
Amounts falling due within one year:
£
Trade debtors
19,119
Other debtors
178,790
197,909

Included within "Other debtors" is an amount due from a director. Further details are disclosed in note 10.

SORMAC LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 6 -
5
Creditors: amounts falling due within one year
2023
£
Trade creditors
10,236
Amounts owed to group undertakings
400,759
Taxation and social security
18,078
Other creditors
238,482
667,555

Amounts owed to group undertakings are unsecured, interest free and repayable within credit terms or otherwise repayable on demand.

6
Creditors: amounts falling due after more than one year
2023
£
Loans from group undertakings
250,000

The loans from group undertakings represent amounts drawn down under a facility agreement with total available credit of £500,000. Amounts drawn down attract an interest rate of 5% per annum and must be repaid in full by 31 December 2028. The amount is unsecured; however, the company is obligated to put in place security at the request of the lender if the company fails or threatens to fail to meet its obligations under the loan agreement.

7
Called up share capital
2023
2023
Ordinary share capital
Number
£
Issued and fully paid
Ordinary shares of £1 each
1,000
1,000

Each share is entitled to one vote in any circumstances, and is entitled to share equally in dividend payments or any other distribution, including a distribution arising from a winding up of the company.

8
Audit report information

As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:

The auditor's report was unqualified.

Senior Statutory Auditor:
Nicholas Nicolaou FCCA
Statutory Auditor:
Alliotts LLP
Date of audit report:
8 February 2024
SORMAC LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 7 -
9
Related party transactions
Transactions with related parties

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

Purchases
2023
£
Entities with control, joint control or significant influence over the company
244,715
Commission income
2023
£
Entities with control, joint control or significant influence over the company
16,103
2023
Amounts due to related parties
£
Entities with control, joint control or significant influence over the company
650,759

The following amounts were outstanding at the reporting end date:

2023
Amounts due from related parties
£
Key management personnel
2,000
10
Directors' transactions

Advances or credits have been granted by the company to its directors as follows:

Description
% Rate
Opening balance
Amounts advanced
Closing balance
£
£
£
Advance to director
-
-
2,000
2,000
-
2,000
2,000

The amount is unsecured, interest free and repayable on demand. No amounts have been repaid, written off or waived in the period.

SORMAC LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 8 -
11
Parent company

The parent undertaking of the smallest group of undertakings for which group accounts are drawn up of which the company is a member is Sormac Holdings BV, a company incorporated in the Netherlands with registered office Huiskensstraat 68, Venlo, 5916PN. These accounts are publicly available from the Netherlands Chamber of Commerce.

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