Company registration number 06162848 (England and Wales)
LONDON PROCESS CENTRE LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
LONDON PROCESS CENTRE LTD
CORPORATE INFORMATION
Directors
K Mizutani
N Cooper
Y Tango
(Appointed 9 January 2023)
Secretary
Vistra Company Secretaries Limited
First Floor
Templeback
10 Temple Back
Bristol BS1 6GL
United Kingdom
Registered office
Oakland Court
26 Market Square
South Woodham Ferrers
Essex
United Kingdom
CM3 5XA
Auditor
Rickard Luckin Limited
1st Floor
County House
100 New London Road
Chelmsford
Essex
United Kingdom
CM2 0RG
Bankers
Sumitomo Mitsui Banking Corporation Europe Limited
Temple Court, 11 Queen Victoria Street
London EC4V 4EH
United Kingdom
Santander
Santander Business Banking Centre
Bridle Road
Bootle L30 4GB
United Kingdom
LONDON PROCESS CENTRE LTD
CONTENTS
Page
Directors' report
1 - 2
Directors' responsibilities statement
3
Independent auditor's report
4 - 7
Statement of comprehensive income
8
Statement of financial position
9 - 10
Statement of changes in equity
11
Statement of cash flows
12
Notes to the financial statements
13 - 26
LONDON PROCESS CENTRE LTD
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2023
- 1 -

The directors present their annual report, together with the financial statements and auditor’s report of London Process Centre Ltd (‘the Company’) for the year ended 31 March 2023.

 

The directors have not prepared a Strategic Report in accordance with the provisions applicable to companies entitled to the small companies’ exemption.

Principal activities

The Company was incorporated on 15 March 2007. Its principal activity throughout the year was that of providing support services to Mitsui & Co. Europe PLC, the immediate parent company and its EMEA (Europe, the Middle East and Africa) based group companies.

Results and dividends

The Company made a profit after tax for the year of £192,579 (2022: loss £44,634). The directors are satisfied with the Company’s performance in the year. The directors consider the progress and future prospects of the Company to be satisfactory.

The results of the Company for the year are shown on page 8. During the year an interim dividend of £120,000 was paid (2022: £201,630).

Directors

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

K Mizutani
N Cooper
K Taguchi
(Resigned 6 January 2023)
K Kimimori
(Resigned 22 September 2023)
Y Tango
(Appointed 9 January 2023)
Going Concern

The Company has sufficient financial resources in the form of cash and working capital facilities to meet its financial obligations. It has access to funding from Mitsui Group Companies and the parent Company where necessary. As a consequence the directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. Accordingly, the Financial Statements have been prepared on a going concern basis.

 

Principal risks and uncertainties
Liquidity risk

Liquidity risk is the risk that an entity will encounter difficulty in meeting obligations associated with financial liabilities. The Company monitors its risk of shortage of funds, and aims to mitigate liquidity risk by managing cash generated by its operations and its cash collection.

Financial Risk

The Company manages its cash in order to meet its day to day operating and business needs.

Credit risk

Credit risk is the risk that a counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily of trade receivables). However, the directors believe that the Company’s exposure to credit risk is not significant as the majority of trade receivables are due from the parent company. It is, and has been throughout the period under review, the Company’s policy that no derivative financial instrument contracts shall be undertaken.

LONDON PROCESS CENTRE LTD
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 2 -
Future developments

Significant changes in the present nature of the business are not expected in the near future.

Auditor

Each of the directors of the Company holding office at the date of approval of this report confirms that:

This confirmation is given and should be interpreted in accordance with provisions of s418 of the Companies Act 2006.

Rickard Luckin Ltd have been reappointed as auditor for financial year 2023/24, and a resolution to appoint them has been approved.

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
N Cooper
Managing Director
18 October 2023
LONDON PROCESS CENTRE LTD
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MARCH 2023
- 3 -

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 International Financial Reporting Standards (IFRSs) as adopted by the UK. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, International Accounting Standard 1 requires that directors:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

On behalf of the board
N Cooper
Managing Director
18 October 2023
LONDON PROCESS CENTRE LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF LONDON PROCESS CENTRE LTD
- 4 -
Opinion

We have audited the financial statements of London Process Centre Ltd (the 'company') for the year ended 31 March 2023 which comprise the statement of comprehensive income, the statement of financial position, the statement of changes in equity, the 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 International Financial Reporting Standards (IFRSs) as adopted by the United Kingdom.

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

LONDON PROCESS CENTRE LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF LONDON PROCESS CENTRE LTD
- 5 -
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 directors' report.

 

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

 

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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

We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our: general commercial and sector experience; through verbal and written communications with those charged with governance and other management; and via inspection of the company’s regulatory and legal correspondence.

We discussed with those charged with governance and other management the policies and procedures regarding compliance with laws and regulations.

We communicated identified laws and regulations to our team and remained alert to any indicators of non-compliance throughout the audit, we also specifically considered where and how fraud may occur within the company.

The potential effect of these laws and regulations on the financial statements varies considerably.

Firstly, the company is subject to laws and regulations that directly affect the financial statements, including: the company’s constitution, relevant financial reporting standards; company law; tax legislation and distributable profits legislation and we assess the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.

LONDON PROCESS CENTRE LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF LONDON PROCESS CENTRE LTD
- 6 -

Secondly the company is subject to many other laws and regulations where the consequences of non-compliance could have a material effect on the amounts or disclosures in the financial statements, for instance through the imposition of fines and penalties, or through losses arising from litigations. We identified the following areas as those most likely to have such an affect: employment legislation; health and safety legislation; data protection legislation; anti-bribery and anti-corruption legislation.

ISAs (UK) limit the required procedures to identify non-compliance with these laws and regulations to the procedures, and no procedures over and above those already noted are required. These limited procedures did not identify any actual or suspected non-compliance which laws and regulations that could have a material impact on the financial statements.

In relation to fraud, we performed the following specific procedures in addition to those already noted:

These procedures did not identify any actual or suspected fraudulent irregularity that could have a material impact on the financial statements.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with ISAs (UK). For example, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely the procedures that we are required to undertake would identify it. In addition, as with any audit, there remains a high risk of non-detection of irregularities, as these might involve collusion, forgery, intentional omissions, misrepresentation, or the override of internal controls. We are not responsible for preventing non-compliance with laws and regulations or fraud, and cannot be expected to detect non-compliance with all laws and regulations or every incidence of fraud.

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

LONDON PROCESS CENTRE LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF LONDON PROCESS CENTRE LTD
- 7 -

Use of our report

This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Terri Smith
For and on behalf of Rickard Luckin Limited
9 November 2023
Chartered Accountants
Statutory Auditor
1st Floor
County House
100 New London Road
Chelmsford
Essex
CM2 0RG
LONDON PROCESS CENTRE LTD
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2023
- 8 -
2023
2022
Notes
£
£
Revenue
3
3,628,740
3,123,282
Gross profit
3,628,740
3,123,282
Other operating income
500
2,784
Administrative expenses
(3,382,386)
(2,975,358)
Exceptional items
4
-
0
(162,500)
Operating profit/(loss)
5
246,854
(11,792)
Finance costs
9
(5,965)
(7,892)
Profit/(loss) before taxation
240,889
(19,684)
Income tax expense
10
(48,310)
(24,950)
Profit/(loss) and total comprehensive income for the year
192,579
(44,634)
LONDON PROCESS CENTRE LTD
STATEMENT OF FINANCIAL POSITION
AS AT
31 MARCH 2023
31 March 2023
- 9 -
2023
2022
Notes
£
£
Non-current assets
Property, plant and equipment
11
240,971
348,745
Deferred tax asset
12
24,615
24,614
265,586
373,359
Current assets
Trade and other receivables
13
1,097,401
944,919
Cash and cash equivalents
152,674
215,638
1,250,075
1,160,557
Total assets
1,515,661
1,533,916
Current liabilities
Trade and other payables
15
380,063
388,895
Current tax liabilities
48,311
30,389
Lease liabilities
16
101,908
99,924
530,282
519,208
Net current assets
719,793
641,349
Non-current liabilities
Lease liabilities
16
97,511
199,419
Total liabilities
627,793
718,627
Net assets
887,868
815,289
Equity
Called up share capital
18
250,000
250,000
Retained earnings
637,868
565,289
Total equity
887,868
815,289
The financial statements have been prepared in accordance with the provision applicable to companies subject to small companies regime.
Under the companies act 2006, S45 on a voluntary basis, the directors can amend these financial statements if they subsequently prove to be defective.
LONDON PROCESS CENTRE LTD
STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT
31 MARCH 2023
31 March 2023
- 10 -
The financial statements were approved by the board of directors and authorised for issue on 12 October 2023 and are signed on its behalf by:
K Mizutani
N Cooper
Director
Managing Director
Company Registration No. 06162848 (England and Wales)
LONDON PROCESS CENTRE LTD
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2023
- 11 -
Share capital
Retained earnings
Total
Notes
£
£
£
Balance at 1 April 2021
250,000
811,553
1,061,553
Year ended 31 March 2022:
Loss and total comprehensive income for the year
-
(44,634)
(44,634)
Dividends
14
-
(201,630)
(201,630)
Balance at 31 March 2022
250,000
565,289
815,289
Year ended 31 March 2023:
Profit and total comprehensive income for the year
-
192,579
192,579
Dividends
14
-
(120,000)
(120,000)
Balance at 31 March 2023
250,000
637,868
887,868
LONDON PROCESS CENTRE LTD
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2023
- 12 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
24
183,537
483,469
Interest paid
(5,965)
(7,892)
Income taxes paid
-
0
(97,278)
Net cash inflow from operating activities
177,572
378,299
Investing activities
Purchase of property, plant and equipment
(20,499)
(19,299)
Proceeds from disposal of property, plant and equipment
-
0
1,455
Net cash used in investing activities
(20,499)
(17,844)
Financing activities
Payment of lease liabilities
(99,924)
(97,998)
Dividends paid
(120,000)
(201,630)
Net cash used in financing activities
(219,924)
(299,628)
Net (decrease)/increase in cash and cash equivalents
(62,851)
60,827
Cash and cash equivalents at beginning of year
215,638
154,811
Effect of foreign exchange rates
(113)
-
0
Cash and cash equivalents at end of year
152,674
215,638
LONDON PROCESS CENTRE LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
- 13 -
1
Accounting policies
Company information

London Process Centre Ltd (the “Company”) is a private limited company incorporated in the United Kingdom under the Companies Act. The address of the registered office is Oakland Court, 26 Market Square, South Woodham Ferrers, Essex, CM3 5XA. The nature of the Company’s operations and its principal activities are set out in the directors' report on page 1.

1.1
Accounting convention

The financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted for use in the United Kingdom and with those parts of the Companies Act 2006 applicable to companies reporting under IFRS, except as otherwise stated.

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 accounting policies which follow set out those policies which apply in preparing the financial statements for the year ended 31 March 2023.

1.2
Going concern

The Company has sufficient financial resources in the form of cash and working capital facilities to meet its financial obligations. It has access to funding from Mitsui Group Companies and the parent Company where necessary. As a consequence the directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. Accordingly, the financial statements have been prepared on a going concern basis.true

1.3
Revenue

Rendering of services

 

The Company recognises revenue when the contracted service is performed. Revenue represents a management fee for performing the administrative support functions for Mitsui & Co. Europe PLC and its EMEA based subsidiary companies.

1.4
Property, plant and equipment

Property, plant and equipment are stated at cost less accumulated depreciation. Cost comprises the aggregate amount paid and the fair value of any other consideration given to acquire the asset and includes costs directly attributable to making the asset capable of operating as intended.

Depreciation is provided on all property, plant and equipment, other than land, on a straight-line basis over its expected useful life as follows:

Leasehold land and buildings
Straight-line over the period of the lease
Leasehold improvements
Straight-line over the period of the lease
Furniture, fittings and equipment
Straight-line over a period of three to five years

An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits are expected to arise from the continued use of the asset. Any gain or loss arising on the de-recognition of the asset is included in profit or loss in the period of de-recognition.

1.5
Cash and cash equivalents

Cash and cash equivalents in the statement of financial position comprise cash at banks and in hand. For the purpose of the statement of cash flows, cash and cash equivalents consist of cash and cash equivalents as defined above. For the purpose of the statement of financial position, cash deposits and overdrafts are presented separately.

LONDON PROCESS CENTRE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 14 -
1.6
Trade and other receivables

Financial assets are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument. Financial assets are classified into specified categories, depending on the nature and purpose of the financial assets.

 

At initial recognition, financial assets classified as fair value through profit and loss are measured at fair value and any transaction costs are recognised in profit or loss. Financial assets not classified as fair value through profit and loss are initially measured at fair value plus transaction costs.

Financial assets held at amortised cost

Financial instruments are classified as financial assets measured at amortised cost where the objective is to hold these assets in order to collect contractual cash flows, and the contractual cash flows are solely payments of principal and interest. They arise principally from the provision of goods and services to customers (eg trade receivables). They are initially recognised at fair value plus transaction costs directly attributable to their acquisition or issue, and are subsequently carried at amortised cost using the effective interest rate method, less provision for impairment where necessary.

Other financial liabilities

Other financial liabilities, including borrowings, trade payables and other short-term monetary liabilities, are initially measured at fair value net of transaction costs directly attributable to the issuance of the financial liability. They are subsequently measured at amortised cost using the effective interest method. For the purposes of each financial liability, interest expense includes initial transaction costs and any premium payable on redemption, as well as any interest or coupon payable while the liability is outstanding.

Derecognition of financial liabilities

Financial liabilities are derecognised when, and only when, the company’s obligations are discharged, cancelled, or they expire.

1.7
Equity instruments

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

1.8
Taxation
Current tax

Current tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities, based on tax rates and laws that are enacted or substantively enacted by the reporting date.

LONDON PROCESS CENTRE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 15 -
Deferred tax

Deferred tax is recognised on all temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements, with the following exceptions:

 

 

Deferred tax assets and liabilities are measured on an undiscounted basis at the tax rates that are expected to apply when the related asset is realised or liability is settled, based on tax rates and laws enacted or substantively enacted at the reporting date.

 

The carrying amount of deferred tax assets is reviewed at each reporting date. Deferred tax assets and liabilities are offset, only if a legally enforceable right exists to set off current tax assets against current tax liabilities, the deferred taxes relate to the same taxation authority and that authority permits the Company to make a single net payment.

 

Income tax is charged or credited directly to equity if it relates to items that are credited or charged to equity. Otherwise income tax is recognised in profit or loss.

1.9
Provisions

A provision is recognised when the Company has a legal or constructive obligation as a result of a past event; it is probable that an outflow of economic benefits will be required to settle the obligation; and a reliable estimate can be made of the amount of the obligation. If the effect is material, expected future cash flows are discounted using a current pre-tax rate that reflects, where appropriate, the risks specific to the liability.

 

Where the Company expects some or all of a provision to be reimbursed, for example under an insurance policy, the reimbursement is recognised as a separate asset but only when recovery is virtually certain. The expense relating to any provision is presented in profit or loss net of any reimbursement. Where discounting is used, the increase in the provision due to unwinding the discount is recognised as a finance cost.

1.10
Pension Costs

Contributions to a defined contribution scheme are recognised in profit or loss in the period in which they become payable.

1.11
Leases

At inception, the company assesses whether a contract is, or contains, a lease within the scope of IFRS 16. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Where a tangible asset is acquired through a lease, the company recognises a right-of-use asset and a lease liability at the lease commencement date. Right-of-use assets are included within property, plant and equipment, apart from those that meet the definition of investment property.

LONDON PROCESS CENTRE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 16 -

The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date plus any initial direct costs and an estimate of the cost of obligations to dismantle, remove, refurbish or restore the underlying asset and the site on which it is located, less any lease incentives received.

 

The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. The estimated useful lives of right-of-use assets are determined on the same basis as those of other property, plant and equipment. The right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability.

The lease liability is initially measured at the present value of the lease payments that are unpaid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the company's incremental borrowing rate. Lease payments included in the measurement of the lease liability comprise fixed payments, variable lease payments that depend on an index or a rate, amounts expected to be payable under a residual value guarantee, and the cost of any options that the company is reasonably certain to exercise, such as the exercise price under a purchase option, lease payments in an optional renewal period, or penalties for early termination of a lease.

The lease liability is measured at amortised cost using the effective interest method. It is remeasured when there is a change in: future lease payments arising from a change in an index or rate; the company's estimate of the amount expected to be payable under a residual value guarantee; or the company's assessment of whether it will exercise a purchase, extension or termination option. When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the right-of-use asset, or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero.

The company has elected not to recognise right-of-use assets and lease liabilities for short-term leases of machinery that have a lease term of 12 months or less, or for leases of low-value assets including IT equipment. The payments associated with these leases are recognised in profit or loss on a straight-line basis over the lease term.

Amounts payable under operating leases for intangible assets are charged to profit or loss on a straight line basis over the term of the lease.

1.12
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.

1.13

Exceptional items

Exceptional items of expenditure are separately disclosed where they are material and relevant to an understanding of financial performance.

 

1.14

Dividends

An interim dividend is declared and paid by the directors subject to the member’s approval to ensure prompt return on investment in the form of receipt of dividends by the parent company. Each fiscal year, the retained earnings balance held is reviewed in respect of the budgeted cash flow position and the debt-to-equity position and a figure for the annual dividend payable by the company to Mitsui & Co. Europe Plc is determined

LONDON PROCESS CENTRE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 17 -
2
Critical accounting estimates and judgements

The preparation of financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the reporting date and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates.

 

In the process of applying the Company's accounting policies, management has made the following judgements and estimations which have the most significant effect on the amounts recognised in the financial statements:

Critical judgements
Depreciation

The Directors have exercised judgement in determining the useful economic lives of the tangible fixed assets in order to set the depreciation policy.

3
Revenue

Revenue recognised in the Statement of Comprehensive Income is analysed as follows:

2023
2022
£
£
Revenue analysed by class of business
Rendering of services
3,628,740
3,123,282

The Company's revenue is attributable to 87% (2022 - 85%) United Kingdom, and 13% (2022 - 15%) to other countries.

Management services are provided on an ongoing basis with service obligations meet as time is spent providing these services. Invoices are raised monthly with 30 days  payment terms.

.

4
Exceptional items
2023
2022
£
£
Expenditure
Exceptional - Impairment losses on goodwill
-
162,500

During the 2022 year a goodwill impact assessment was performed and as a result of this a resolution was passed by the board to fully impair the remaining goodwill of £162,500. Following the resignation of the former Managing Director, the directors consider that the goodwill relating to the acquisition of Liberty Document Services Ltd is fully impaired.

5
Operating profit/(loss)
2023
2022
Operating profit/(loss) for the year is stated after charging/(crediting):
£
£
Exchange losses
113
-
0
Depreciation of property, plant and equipment
112,252
198,237
(Profit)/loss on disposal of property, plant and equipment
-
494
LONDON PROCESS CENTRE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 18 -
6
Auditor's remuneration
2023
2022
Fees payable to the company's auditor:
£
£
For audit services
Audit of the financial statements of the company
12,400
10,200
7
Employees

Staff costs

None of the directors received remuneration from the Company during the year, however the Company pays a management fee to the parent in regards directors’ remuneration (refer to note 21 for details).

 

The average number of employees in the year were:

2023
2022
Number
Number
Directors
4
4
Business Support
11
11
Realisation
9
9
Quality and Assurance
4
4
Human Resources Support Centre
2
2
Management
7
9
Expenses
10
7
Corporate Support and Credit
11
10
Accounts Payable
12
11
Technology and innovation
5
4
Total
75
71

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
2,025,383
1,639,412
Social security costs
206,241
148,287
Pension costs
91,126
95,595
2,322,750
1,883,294
8
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
276,140
302,569
LONDON PROCESS CENTRE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
8
Directors' remuneration
(Continued)
- 19 -

See note 21 for further details.

9
Finance costs
2023
2022
£
£
Interest on lease liabilities
5,965
7,892
10
Income tax expense
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
48,311
30,389
Deferred tax
Origination and reversal of temporary differences
(1)
(5,439)
Total tax charge
48,310
24,950

The tax expense in the Statement of Comprehensive Income for the year is higher than the standard rate of corporation tax in the UK of 19% (2020: 19%). The differences are reconciled below:

2023
2022
£
£
Profit/(loss) before taxation
240,889
(19,684)
Expected tax charge/(credit) based on a corporation tax rate of 19.00% (2022: 19.00%)
45,769
(3,740)
Effect of expenses not deductible in determining taxable profit
2,049
-
Change in unrecognised deferred tax assets
-
0
2,382
Effect of change in UK corporation tax rate
-
0
(5,907)
Permanent capital allowances in excess of depreciation
(472)
(299)
Depreciation on assets not qualifying for tax allowances
964
1,639
Amortisation on assets not qualifying for tax allowances
-
0
30,875
Taxation charge for the year
48,310
24,950
LONDON PROCESS CENTRE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 20 -
11
Property, plant and equipment
Leasehold land and buildings
Leasehold improvements
Furniture, fittings and equipment
Total
£
£
£
£
Cost
At 1 April 2021
742,609
111,592
228,831
1,083,032
Additions
302,638
12,705
6,594
321,937
Disposals
-
0
(7,117)
(26,507)
(33,624)
At 31 March 2022
1,045,247
117,180
208,918
1,371,345
Additions
-
0
12,221
8,278
20,499
Disposals
-
0
(2,216)
(92,437)
(94,653)
At 31 March 2023
1,045,247
127,185
124,759
1,297,191
Accumulated depreciation and impairment
At 1 April 2021
610,515
72,286
173,237
856,038
Charge for the year
145,703
16,949
35,585
198,237
Eliminated on disposal
-
0
(5,795)
(25,880)
(31,675)
At 31 March 2022
756,218
83,440
182,942
1,022,600
Charge for the year
83,987
13,414
14,851
112,252
Eliminated on disposal
-
0
(1,980)
(76,652)
(78,632)
At 31 March 2023
840,205
94,874
121,141
1,056,220
Carrying amount
At 31 March 2023
205,042
32,311
3,618
240,971
At 31 March 2022
289,029
33,740
25,976
348,745

All figures included above under the column 'Leasehold land and buildings' relate to right-of-use assets recognised as a result of applying the Standard IFRS 16 - Leases.

LONDON PROCESS CENTRE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 21 -
12
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon during the current and prior reporting period.

ACAs
£
Asset at 1 April 2021
(19,175)
Deferred tax movements in prior year
Charge/(credit) to profit or loss
(5,439)
Asset at 1 April 2022
(24,614)
Deferred tax movements in current year
Charge/(credit) to profit or loss
(1)
Asset at 31 March 2023
(24,615)

Deferred tax assets and liabilities are offset in the financial statements only where the company has a legally enforceable right to do so.

Deferred tax assets relate to accelerated capital allowances (ACAs), and are expected to be received after more than one year.

13
Trade and other receivables
2023
2022
£
£
Amount owed by parent undertaking
908,641
817,867
Amounts owed by fellow group undertakings
96,042
57,149
Other receivables
9,376
7,500
Prepayments
83,342
62,403
1,097,401
944,919

 

Trade receivables are denominated in pounds sterling and due from the parent and other group companies (see note 21).

 

Trade receivables are non-interest bearing and are generally on 30 days’ terms. There is no provision for impairment as the parent and fellow group undertakings have not defaulted on its transaction obligations, and there is no expectation of a default.

 

Receivables to be recovered no more than twelve months after the reporting date total £1,089,901 (2022: £937,419) and more than twelve months after the reporting date £7,500 (2022: £7,500).

LONDON PROCESS CENTRE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 22 -
14
Dividends
2023
2022
2023
2022
Amounts recognised as distributions:
per share
per share
Total
Total
£
£
£
£
Ordinary
Interim dividend paid
0.48
0.81
120,000
201,630
15
Trade and other payables
2023
2022
£
£
Amount owed to parent undertaking
182,710
140,372
Accruals
67,482
67,958
Social security and other taxation
120,408
99,401
Other payables
9,463
81,164
380,063
388,895

All trade and other payables are expected to be settled no more than twelve months after the reporting date.

16
Lease liabilities
2023
2022
Maturity analysis
£
£
Within one year
101,908
99,924
In two to five years
97,511
199,419
Total undiscounted liabilities
199,419
299,343

Lease liabilities are classified based on the amounts that are expected to be settled within the next 12 months and after more than 12 months from the reporting date, as follows:

2023
2022
£
£
Current liabilities
101,908
99,924
Non-current liabilities
97,511
199,419
199,419
299,343
2023
2022
Amounts recognised in profit or loss include the following:
£
£
Interest on lease liabilities
5,965
7,892
Depreciation charge for right-of-use asset - Leasehold land and buildings
83,987
145,703

The fair value of the company's lease obligations is approximately equal to their carrying amount.

LONDON PROCESS CENTRE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
16
Lease liabilities
(Continued)
- 23 -

Practical Expendient

 

The company has made use of the practical expedient set out in IFRS 16.C10. allowing the application of a single discount rate to all leases, as they have substantially similar characteristics.

 

Weighted average lessee’s incremental borrowing rate applied

 

The borrowing rate applied to lease liabilities recognised in the statement of financial position at the date of initial application was 1.9144% , and the borrowing rate for extended lease liabilities at the date 31 March 2022 was 2.0087%, which is the interest rate set by Mitsui Europe, for internal borrowings within the group.

17
Financial instruments

The Company’s financial instruments comprise cash, trade and other receivables, trade and other payables from the parent. The fair value of the Company’s financial assets and liabilities approximates to their book value.

The Company’s financial instruments arise directly from the Company's operations and to finance its activities.

The Company’s activities do not expose the Company to significant interest rate risk, foreign currency risk, or price risk. The Company is exposed to credit risk and liquidity risk. Refer to the Directors’ Report for further details.

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Company. The Company has adopted a policy of only dealing with creditworthy counterparties as a means of mitigating the risk of financial loss from defaults. The Company’s main counterparty is Mitsui & Co Europe PLC which is the parent company.

The Company’s maximum credit risk exposure is summarised as follows:

 

Assets      2023 2022

£'000 £'000

Trade and other receivables 1,014 883

Cash and cash equivalent      153 216

 

It is, and has been throughout the period under review, the Company’s policy that no derivative financial instrument contracts shall be undertaken.

LONDON PROCESS CENTRE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 24 -
18
Share capital
2023
2022
£
£
Ordinary share capital
Issued and fully paid
250,000 Ordinary of £1 each
250,000
250,000

The Company has one class of ordinary shares which carry one vote and one right to fixed income.

19
Financial commitments

The Company is committed to software use over a 3 year period from 1 May 2021 until 30 April 2024. The total commitment at 31 March 2023 was £118,800 (2022 - £237,600).

20
Capital risk management

The primary objective of the Company’s capital management is to maintain healthy capital ratios in order to support its business and maximise shareholder value. The Company manages its capital structure, and makes adjustments to it, in light of changes in economic conditions.

 

The capital structure of the Company consists of equity attributable to the parent company comprising issued capital as disclosed in Note 17 and retained earnings.

21
Dividends

A dividend of £120,000 (48 pence per ordinary share) was paid in January 2023 to Mitsui & Co.Europe Plc.

22
Related party transactions

The Company is controlled by Mitsui & Co Europe PLC which owns all of the issued share capital. The revenue of the Company is derived from the parent company and other group companies for services rendered by the Company. Transactions entered into, and trading balances outstanding at 31 March 2023 with other related parties are as follows:

Revenue
Expenses
2023
2022
2023
2022
£
£
£
£
Parent company
3,056,260
2,643,650
609,820
707,213
Other related parties
572,480
479,632
-
0
19,269
3,628,740
3,123,282
609,820
726,482
LONDON PROCESS CENTRE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
22
Related party transactions
(Continued)
- 25 -
Amount owed by related parties
Amount owed to related parties
2023
2022
2023
2022
£
£
£
£
Parent company
908,641
817,867
182,710
140,372
Other related parties
96,042
57,149
-
-
1,004,683
875,016
182,710
140,372

No transactions were carried out with the directors or other related parties.

Other information

Key management personnel

 

Key management personnel are the Directors and other senior employees of the Company, who are seconded from Mitsui & Co Europe PLC and paid by Mitsui & Co Europe PLC. Total compensation paid to key management personnel in respect of services to London Process Centre Ltd was £276,140 (2022: £302,569). None of the directors received remuneration from the Company during the current or previous year.

 

Most of the key management personnel of the Company also provide services to other entities within the group, for this year and the preceding year.

23
Ultimate parent and controlling party

The company's immediate parent is Mitsui & Co Europe PLC, a company incorporated in the United Kingdom.

 

The company's ultimate parent and controlling party and parent of the largest and smallest group in which the company's results are consolidated is Mitsui & Co Ltd, a company incorporated in Japan. Copies of the group financial statements are available from:

 

Mitusi & Co Ltd

Nippon Life Marunouchi Garden Tower

1-3, Marunouchi 1-chrome

Chiyoda-ku

Tokyo 100-8631, Japan

LONDON PROCESS CENTRE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 26 -
24
Cash generated from operations
2023
2022
£
£
Profit/(loss) for the year before income tax
240,889
(19,684)
Adjustments for:
Finance costs
5,965
7,892
Loss on disposal of property, plant and equipment
16,021
494
Amortisation and impairment of intangible assets
-
162,500
Depreciation and impairment of property, plant and equipment
112,252
198,237
Foreign exchange gains on cash equivalents
113
-
Movements in working capital:
(Increase)/decrease in trade and other receivables
(152,482)
130,041
(Decrease)/increase in trade and other payables
(39,221)
3,989
Cash generated from operations
183,537
483,469
25
Analysis of changes in net debt
1 April 2022
Cash flows
New finance leases
Exchange rate movements
31 March 2023
£
£
£
£
£
Cash at bank and in hand
215,638
(62,851)
-
(113)
152,674
Obligations under operating leases
(299,343)
99,924
-
-
(199,419)
(83,705)
37,073
-
(113)
(46,745)
1 April 2021
Cash flows
New finance leases
Exchange rate movements
31 March 2022
Prior year:
£
£
£
£
£
Cash at bank and in hand
154,811
60,827
-
-
215,638
Obligations under operating leases
(94,703)
97,998
(302,638)
-
(299,343)
60,108
158,825
(302,638)
-
(83,705)
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