Plastics Capital Trading Limited
Annual Report and Financial Statements
For the year ended 31 March 2023
Company Registration No. 04605893 (England and Wales)
Plastics Capital Trading Limited
Company Information
Director
G Clark
A Green
Company number
04605893
Registered office
C/O BNL (UK) Limited
Manse Lane
Knaresborough
North Yorkshire
HG5 8LF
Auditor
Moore Kingston Smith LLP
The Shipping Building
The Old Vinyl Factory
Blyth Road
Hayes
London
UB3 1HA
Plastics Capital Trading Limited
Contents
Page
Director's report
1
Director's responsibilities statement
2
Independent auditor's report
3 - 7
Profit and loss account
8
Balance sheet
9
Statement of changes in equity
10
Notes to the financial statements
11 - 24
Plastics Capital Trading Limited
Director's Report
For the year ended 31 March 2023
Page 1
The directors present their annual report and financial statements for the year ended 31 March 2023.
Principal activities
The principal activity of Plastics Capital Trading Limited ("the Company") was the provision of head office services for the wider Synnovia Limited Group.
Director
The directors who held office during the year and up to date of signature of the financial statements were as follows:
G Clark
J Wilkinson
(Resigned 1 October 2023)
A Green
(Appointed 19 February 2024)
Auditor
The auditor, Moore Kingston Smith LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
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.
Small companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.
On behalf of the board
G Clark
Director
5 April 2024
Plastics Capital Trading Limited
Directors' Responsibilities Statement
For the year ended 31 March 2023
Page 2
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 she is 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 director is required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. Directors 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.
Plastics Capital Trading Limited
Independent Auditor's Report
To the Members of Plastics Capital Trading Limited
Page 3
Opinion
We have audited the financial statements of Plastics Capital Trading Limited (the 'company') for the year ended 31 March 2023 which comprise the Profit and Loss Account, the Balance Sheet, the Statement of Changes in Equity 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 FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the company's affairs as at 31 March 2023 and of its loss for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
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.
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 there is 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.
Plastics Capital Trading Limited
Independent Auditor's Report (Continued)
To the Members of Plastics Capital Trading Limited
Page 4
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Directors' Report has been prepared in accordance with applicable legal requirements.
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 director's 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:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit; or
the director was not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemption in preparing the director's report and from the requirement to prepare a strategic report.
Responsibilities of the 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.
Plastics Capital Trading Limited
Independent Auditor's Report (Continued)
To the Members of Plastics Capital Trading Limited
Page 5
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.
As part of an audit in accordance with ISAs (UK) we exercise professional judgement and maintain professional scepticism throughout the audit. We also:
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. 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.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purposes of expressing an opinion on the effectiveness of the company’s internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.
Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the company to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
Plastics Capital Trading Limited
Independent Auditor's Report (Continued)
To the Members of Plastics Capital Trading Limited
Page 6
Explanation as to what extent 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, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.
The objectives of our audit in respect of fraud, are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the company.
Our approach was as follows:
We obtained an understanding of the legal and regulatory requirements applicable to the company and considered that the most significant are the Companies Act 2006, UK financial reporting standards as issued by the Financial Reporting Council, and UK taxation legislation.
We obtained an understanding of how the company complies with these requirements by discussions with management and those charged with governance.
We assessed the risk of material misstatement of the financial statements, including the risk of material misstatement due to fraud and how it might occur, by holding discussions with management and those charged with governance.
We inquired of management and those charged with governance as to any known instances of non-compliance or suspected non-compliance with laws and regulations.
Based on this understanding, we designed specific appropriate audit procedures to identify instances of non-compliance with laws and regulations. This included making enquiries of management and those charged with governance and obtaining additional corroborative evidence as required.
There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
Plastics Capital Trading Limited
Independent Auditor's Report (Continued)
To the Members of Plastics Capital Trading Limited
Page 7
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.
Jeremy Read
Senior Statutory Auditor
for and on behalf of Moore Kingston Smith LLP
5 April 2024
Chartered Accountants
Statutory Auditor
The Shipping Building
The Old Vinyl Factory
Blyth Road
Hayes
London
UB3 1HA
Plastics Capital Trading Limited
Profit and loss account
For the year ended 31 March 2023
Page 8
2023
2022
Notes
£
£
Turnover
2,395,600
2,395,600
Administrative expenses
(2,889,148)
(1,500,351)
Other operating income
149,863
149,863
Exceptional items
3
(722,283)
(3,481,853)
Operating loss
(1,065,968)
(2,436,741)
Interest receivable and similar income
5
200,147
125,735
Interest payable and similar expenses
6
(2,055,089)
(1,726,379)
Fair value gains and losses on foreign exchange contracts
158,419
(608,887)
Loss before taxation
(2,762,491)
(4,646,272)
Taxation
155,324
Loss for the financial year
(2,607,167)
(4,646,272)
Plastics Capital Trading Limited
Balance Sheet
As at 31 March 2023
Page 9
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
7
66,251
75,571
Investments
8
31,482,625
31,167,771
31,548,876
31,243,342
Current assets
Debtors
11
8,312,361
6,246,441
Cash at bank and in hand
1,003
1,080
8,313,364
6,247,521
Creditors: amounts falling due within one year
12
(59,847,242)
(57,703,698)
Net current liabilities
(51,533,878)
(51,456,177)
Total assets less current liabilities
(19,985,002)
(20,212,835)
Creditors: amounts falling due after more than one year
13
(2,835,000)
Net liabilities
(22,820,002)
(20,212,835)
Capital and reserves
Called up share capital
14
12,883
12,883
Share premium account
2,798,228
2,798,228
Capital redemption reserve
1,025
1,025
Other reserves
607,779
607,779
Profit and loss reserves
(26,239,917)
(23,632,750)
Total equity
(22,820,002)
(20,212,835)
These financial statements have been prepared 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 5 April 2024 and are signed on its behalf by:
G Clark
Director
Company Registration No. 04605893
Plastics Capital Trading Limited
Statement of Changes in Equity
For the year ended 31 March 2023
Page 10
Share capital
Share premium account
Capital redemption reserve
Other reserves
Profit and loss reserves
Total
£
£
£
£
£
£
Balance at 1 April 2021
12,883
2,798,228
1,025
607,779
(18,986,478)
(15,566,563)
Year ended 31 March 2022:
Loss and total comprehensive income for the year
-
-
-
-
(4,646,272)
(4,646,272)
Balance at 31 March 2022
12,883
2,798,228
1,025
607,779
(23,632,750)
(20,212,835)
Year ended 31 March 2023:
Loss and total comprehensive income for the year
-
-
-
-
(2,607,167)
(2,607,167)
Balance at 31 March 2023
12,883
2,798,228
1,025
607,779
(26,239,917)
(22,820,002)
Plastics Capital Trading Limited
Notes to the Financial Statements
For the year ended 31 March 2023
Page 11
1
Accounting policies
Company information
Plastics Capital Trading Limited is a private company limited by shares incorporated in England and Wales. The registered office is C/O BNL (UK) Limited, Manse Lane, Knaresborough, North Yorkshire, HG5 8LF.
1.1
Accounting convention
These financial statements have been prepared in accordance with Section 1A of 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 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.
This 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:
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 26 ‘Share based Payment’: Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
The financial statements of the company are consolidated in the financial statements Synnovia Limited and BPF1 Limited. These consolidated financial statements are available from Companies House.
Plastics Capital Trading Limited
Notes to the Financial Statements (Continued)
For the year ended 31 March 2023
1
Accounting policies
(Continued)
Page 12
1.2
Going concern
The company made a loss for the year of £true2.6m (2022: £4.6m). As at the balance sheet date, the company had net current liabilities of £51.5m (2022: £51.5m) and net liabilities of £22.8m (2022: £20.2m).
The company is an obligor to a group bank facility agreement and is ultimately financed by the group’s facility. The group meets its funding requirements through a group wide term loan, asset-based finance facility, export finance facility and invoice discounting facility. The immediate parent, Synnovia Limited has confirmed that it will continue to make available such funds and provide financial support as required by the company for a period of at least twelve months from the date of the approval of these financial statements. Synnovia Limited will also not seek repayment of the amounts it is currently owed from the company which as at 31 March 2023 amounted to £40.01m.
During the year and since the year end the group has been profitable at EBITDA level and has sufficient cash reserves to continue its operations. The group continues to assess the potential risks to the business as a result of the continuing impact of the cost of living crisis and these risks are reflected by the group forecast.
The directors have prepared cash flow forecasts for a period of twelve months from the date of approval of these financial statements which indicate that, taking account of reasonably possible downsides, the group will have sufficient funds, through shareholder support and utilisation of the facilities in place, to meet its liabilities as they fall due for that period.
The directors have also considered the position of the trading companies in the group to ensure that these companies are in a position to meet their obligations as they fall due. There are not believed to be any contingent liabilities which could result in a significant impact on the business if they were to crystallise. As a response to risks and uncertainties in the global economy, the group refinanced its debt facilities on 14 March 2024, moving its external funding to specialist asset backed lender Leumi ABL.
As a result the directors are confident that they have the ability to respond effectively to continued uncertainty and therefore, the directors believe that the company will be able to continue to meet its liabilities as they fall due for a period of at least twelve months from the date of approval of the financial statements. Consequently the financial statements have been prepared on a going concern basis.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for services provided in the normal course of business, and is shown net of VAT and other sales related taxes.
The company provides investment and consultancy services to the wider Synnovia Group. Revenue is recognised in the accounting period in which the services are rendered. All turnover was derived from the provision of these services.
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:
Computer and office equipment
20 - 50% per annum straight line
Plastics Capital Trading Limited
Notes to the Financial Statements (Continued)
For the year ended 31 March 2023
1
Accounting policies
(Continued)
Page 13
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
Fixed asset investments
Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
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 at bank and in hand
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.
Plastics Capital Trading Limited
Notes to the Financial Statements (Continued)
For the year ended 31 March 2023
1
Accounting policies
(Continued)
Page 14
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, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value 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.
Plastics Capital Trading Limited
Notes to the Financial Statements (Continued)
For the year ended 31 March 2023
1
Accounting policies
(Continued)
Page 15
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.
Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.
1.10
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.
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 when the company has 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.
1.11
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
Share-based payments
Equity-settled share-based payments are measured at fair value at the date of grant by reference to the fair value of the equity instruments granted. The fair value determined at the grant date is expensed on a straight-line basis over the vesting period, based on the estimate of shares that will eventually vest. A corresponding adjustment is made to equity.
Plastics Capital Trading Limited
Notes to the Financial Statements (Continued)
For the year ended 31 March 2023
1
Accounting policies
(Continued)
Page 16
When the terms and conditions of equity-settled share-based payments at the time they were granted are subsequently modified, the fair value of the share-based payment under the original terms and conditions and under the modified terms and conditions are both determined at the date of the modification. Any excess of the modified fair value over the original fair value is recognised over the remaining vesting period in addition to the grant date fair value of the original share-based payment. The share-based payment expense is not adjusted if the modified fair value is less than the original fair value.
Cancellations or settlements (including those resulting from employee redundancies) are treated as an acceleration of vesting and the amount that would have been recognised over the remaining vesting period is recognised immediately.
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.
Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.
1.14
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.
Plastics Capital Trading Limited
Notes to the Financial Statements (Continued)
For the year ended 31 March 2023
Page 17
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the director is 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.
Critical judgements
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
Recoverability of amounts due from group undertakings
The company makes an estimate of the recoverable value of amounts due from group undertakings. When assessing impairment of amounts due from group undertakings, management considers factors including ability of the group companies to repay the debt, the ageing profile of debt owed and historical experience. See note 11 for the net carrying amount of the amounts due from group undertakings.
Impairment of investments
The directors have carried out a detailed impairment review in respect of investments. The company assesses at each reporting date whether there is an indication that an asset may be impaired, by considering the net present value of discounted cash flow forecasts.
3
Exceptional costs
2023
2022
£
£
Exceptional costs
722,283
3,481,853
Exceptional costs includes provision and write off of amounts owed from group undertakings and other settlement costs.
4
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Directors and Management
9
8
Total
9
8
Plastics Capital Trading Limited
Notes to the Financial Statements (Continued)
For the year ended 31 March 2023
Page 18
5
Interest receivable and similar income
2023
2022
£
£
Interest receivable and similar income includes the following:
Dividends received
79,678
-
Interest receivable from group companies
120,469
125,735
200,147
125,735
6
Interest payable and similar expenses
2023
2022
£
£
Interest payable and similar expenses includes the following:
Interest payable to group undertakings
1,203,303
1,121,838
Interest on bank overdrafts and loans
390,190
250,940
Other interest
461,596
353,601
2,055,089
1,726,379
7
Tangible fixed assets
Computer and office equipment
£
Cost
At 1 April 2022
187,114
Additions
17,101
Disposals
(61,406)
At 31 March 2023
142,809
Depreciation and impairment
At 1 April 2022
111,544
Depreciation charged in the year
26,420
Eliminated in respect of disposals
(61,406)
At 31 March 2023
76,558
Carrying amount
At 31 March 2023
66,251
At 31 March 2022
75,571
Plastics Capital Trading Limited
Notes to the Financial Statements (Continued)
For the year ended 31 March 2023
Page 19
8
Fixed asset investments
2023
2022
£
£
Investments
31,482,625
31,167,771
Shares in group undertakings
£
Cost or valuation
At 1 April 2022
31,167,771
Additions
314,854
At 31 March 2023
31,482,625
Carrying amount
At 31 March 2023
31,482,625
At 31 March 2022
31,167,771
Plastics Capital Trading Limited
Notes to the Financial Statements (Continued)
For the year ended 31 March 2023
Page 20
9
Subsidiaries
Details of the company's subsidiaries at 31 March 2023 are as follows:
Name of undertaking
Registered
Nature of business
Class of
% Held
office key
shares held
Direct
Indirect
2 Tianjin Channel Shengli Printing Equipment Co., Ltd
China
Plastics products
Ordinary
100.00
-
1 Bell Plastics Limited
England and Wales
Plastics products
Ordinary
100.00
0
1 BNL (UK) Limited
England and Wales
Plastics products
Ordinary
100.00
0
3 BNL (Japan) Inc. *
Japan
Plastics products
Ordinary
0
100.00
4 BNL (US) Inc *
USA
Plastics products
Ordinary
0
100.00
5 BNL (Thailand) Limited *
Thailand
Plastics products
Ordinary
0
100.00
1 C&T Matrix Limited
England and Wales
Plastics products
Ordinary
100.00
0
1 Flexipol Packaging Limited
England and Wales
Plastics products
Ordinary
100.00
0
1 Palagan Limited
England and Wales
Dormant
Ordinary
0
100.00
6 Plastics Capital India Private Limited
India
Plastics products
Ordinary
100.00
0
1 Samatech BNL (France) SARL *
France
Dormant
Ordinary
0
100.00
7 Shanghai Plastics Capital Trading Limited
China
Closed
Ordinary
100.00
0
7 Shanghai Plastics Capital Parts Limited
China
Plastics products
Ordinary
100.00
0
1 Synpac Limited
England and Wales
Dormant
Ordinary
0
100.00
8 Channel Creasing Matrix Inc.
USA
Distribution
Ordinary
100.00
0
9 Mito Srl.
Italy
Distribution
Ordinary
75.00
0
10 Clear Technologies S.L
Spain
Plastics products
Ordinary
80.00
0
10 Clear Print & Finishing S.L
Spain
Plastics products
Ordinary
80.00
0
10 Corporacion Levantina de Articulos S.L
Spain
Plastics products
Ordinary
80.00
0
-
-
Plastics Capital Trading Limited
Notes to the Financial Statements (Continued)
For the year ended 31 March 2023
9
Subsidiaries
(Continued)
Page 21
Registered Office addresses:
1
C/O BNL (UK) Limited, Manse Lane, Knaresborough, North Yorkshire, HG5 8LF
2
102 YongXing Road, Beichen Economic and Technological Development Zone, Tianjin
3
7F, Yamatane-Hakozaki Building, 8-1, Nihonbashi Hakozaki-cho, Chuou-ku, Tokyo, 103-0015, Japan
4
56 Leonard Street, Unit 5, Foxboro, MA 02035 USA
5
500/58 Moo 3, Hemaraj Eastern Seaboard Industrial Estate, Tasit, Pluakdaeng, Rayong 21140, Thailand
6
Building No. C7, Gala No. 35, Bhumi World Industrial Park, Bhiwandi - Nashki Highway, Pimplas Taluka, Bhiwandi District, Thane, 421302, India
7
3F, Block 7, Lane 208 East Rong LE Road, Songjiang District, Shanghai, China 201613
8
531 Corning Way, Martinsburg, WV 25405, USA
9
Via Primo Maggio 228, 2045 Fara Gera d'Adda, Bergamo, Italy
10
Partida La Lloma Larga (PG IND) 17 46119, Naquera Spain
10
Financial instruments
2023
2022
£
£
Carrying amount of financial liabilities
Measured at fair value through profit or loss
- Other financial liabilities
113,188
271,607
11
Debtors
2023
2022
Amounts falling due within one year:
£
£
Corporation tax recoverable
129,012
Amounts owed by group undertakings
8,135,876
6,023,732
Other debtors
10,007
-
Prepayments and accrued income
37,466
82,269
8,312,361
6,106,001
Deferred tax asset
140,440
8,312,361
6,246,441
Amounts due from Group undertakings accrue interest at 2.75% (2022: 2.75%) per annum.
Plastics Capital Trading Limited
Notes to the Financial Statements (Continued)
For the year ended 31 March 2023
Page 22
12
Creditors: amounts falling due within one year
2023
2022
£
£
Bank loans and overdrafts
4,630,508
10,567,036
Other borrowings
4,206,259
Trade creditors
243,051
138,244
Amounts owed to group undertakings
49,905,884
45,468,496
Corporation tax
292,298
Other taxation and social security
275,051
258,637
Derivative financial instruments
113,188
271,607
Liability for share based payments
96,689
90,500
Other creditors
18,449
28,305
Accruals and deferred income
358,163
588,575
59,847,242
57,703,698
The bank overdraft of £3,666,112 is repayable on demand and attracts an interest rate of Base +3.5%. The bank loan of £3,799,396 attracts an interest rate of Base + 3.5%.
Other borrowings also includes £4,206,259 export finance facility held with Barclays bank.
Financial derivatives are designated as fair value through profit and loss.
Amounts owed to group companies accrue interest at 2.75% (2022: 2.75%) and are repayable on demand.
In respect of the prior year, Bank loans and overdrafts included a Term Loan Facility due to Barclays of £5,484,000. Amounts due within one year were £990,000 at 31 March 2022, however there was a technical breach of covenants at that date and the full value was therefore shown as due within one year for the year ended 31 March 2022. A waiver was obtained from Barclays post year end in respect of this covenant breach and the contracted payment timings have been restored. There were no breach of covenants for the current year.
13
Creditors: amounts falling due after more than one year
2023
2022
£
£
Bank loans and overdrafts
2,835,000
The Barclays Bank loans are secured by fixed and floating charges over the property, plant and equipment, inventories and trade receivables of Synnovia group. The fair value of borrowings equals their carrying amount, as the impact of discounting is not significant.
Plastics Capital Trading Limited
Notes to the Financial Statements (Continued)
For the year ended 31 March 2023
Page 23
14
Called up share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary Shares of 1p each
1,208,584
1,208,584
12,086
12,086
A Ordinary Shares of 0.4p each
175,667
175,667
703
703
B Ordinary Shares of 0.01p each
178,728
178,728
18
18
C Ordinary Shares of 0.01p each
766,983
766,983
76
76
2,329,962
2,329,962
12,883
12,883
The Ordinary Shares carry a right to receive dividends.
Except in the event of an Exit Distribution the A Ordinary Shares, the B Ordinary Shares and the C Ordinary Shares shall not carry a right to receive dividends.
Each Ordinary Share shall carry one vote per share at all general meetings.
The A Ordinary Shares shall confer on each A Ordinary Shareholder the right to vote at all general meetings, and such A Ordinary Shares shall together carry such number of votes at such meetings that are equal to 5% of the aggregate votes attaching to all Shares in issue at such time.
The B Ordinary Shares and the C Ordinary shares shall confer no entitlement to vote at general meetings.
15
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2023
2022
£
£
Within one year
43,391
43,391
16
Financial commitments, guarantees and contingent liabilities
A composite guarantee has been given to the Company and Group's bankers in respect of any debts or liabilities owing to the bank by any party to the guarantee.
At the balance sheet date, the Group's indebtedness to its bankers was £12,730,000 (2022: £16,110,000). The Group's indebtedness to its bankers is subject to meeting loan covenants.
Plastics Capital Trading Limited
Notes to the Financial Statements (Continued)
For the year ended 31 March 2023
Page 24
17
Related party transactions
As permitted by FRS 102 Section 33 "related party disclosures", the financial statements do not disclose transactions with the immediate parent company and wholly owned fellow subsidiaries on the basis that group financial statements are prepared. The related parties comprise other companies in the Synnovia Group, including the parent company.
Audit fees haven been disclosed in the company's immediate parent undertaking.
18
Parent company
For the year ended 31 March 2023, the company was a subsidiary of Synnovia Limited, incorporated in England and Wales. The ultimate parent company of the group is BPF1 Limited, a company incorporated in England and Wales.
The groups in which the results of the company are consolidated are those headed by Synnovia Limited and BPF1 Limited. The consolidated financial statements are available from Companies House, Crown Way, Cardiff, CR14 3UZ.
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