Company registration number 14253798 (England and Wales)
EAGLEY PLASTICS HOLDINGS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2023
EAGLEY PLASTICS HOLDINGS LIMITED
COMPANY INFORMATION
Director
C M Makin
(Appointed 25 July 2022)
Company number
14253798
Registered office
Stephanie Works
Chinley
Stockport
High Peak
SK23 6BT
Auditor
Alexander & Co LLP
Centurion House
129 Deansgate
Manchester
M3 3WR
EAGLEY PLASTICS HOLDINGS LIMITED
CONTENTS
Page
Strategic report
1 - 2
Director's report
3 - 4
Independent auditor's report
5 - 7
Profit and loss account
8
Group statement of comprehensive income
9
Group balance sheet
10
Company balance sheet
11
Group statement of changes in equity
12
Company statement of changes in equity
13
Group statement of cash flows
14
Notes to the financial statements
15 - 28
EAGLEY PLASTICS HOLDINGS LIMITED
STRATEGIC REPORT
FOR THE PERIOD ENDED 31 MARCH 2023
- 1 -

The director presents the strategic report for the Period ended 31 March 2023.

Review of the business

The Directors are satisfied with the performance of the group during the financial year, despite the challenging economic conditions.

 

The group continues to focus on sustainable growth whilst seeking to control costs through increased manufacturing and logistics efficiencies.

 

Shareholder funds totalled £1,724,292

 

The group follows a strategy of properly funded growth with significant investment in its people and its physical and digital infrastructure.

 

This investment further improves the business platform. We are working to improve the overall customer experience as we target growth and improve profitability for future years.

Principal risks and uncertainties

The Board has primary responsibility for identifying the principal risks which the business faces and for developing appropriate policies to manage those risks.

The principal business risks relate to the following

 

Credit risk

The group actively manages its customer relationships and has a broad spectrum of customers to diversify risk, it trades with only recognised credit worthy third parties. It is the group’s policy that all customers who wish to trade on credit terms are subject to credit vetting procedures. Balances are monitored on an on-going basis so that the group’s exposure to bad debt is minimal.     

Liquidity risk

The group’s objective is to maintain a healthy working capital by monitoring its current assets and liabilities and the timing of cash flows to ensure that the group can cover all its contractual obligations.

Key performance indicators

The Directors monitor the performance of the group through financial key performance indicators including:

 

31 March 2023

Revenue

£7,103,809

Profit Before Tax

£308,072

Net Assets

£1,724,292

Current Assets

£4,676,079

Current Liabilities

£3,948,210

 

EAGLEY PLASTICS HOLDINGS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2023
- 2 -

On behalf of the board

C M Makin
Director
31 January 2024
EAGLEY PLASTICS HOLDINGS LIMITED
DIRECTOR'S REPORT
FOR THE PERIOD ENDED 31 MARCH 2023
- 3 -

The director presents his annual report and financial statements for the Period ended 31 March 2023.

Principal activities

The principal activity of the company and group continued to be that of plastic extrusion and moulding, the retail sale of plastic building products, lamination of goods and the recycling of uPVC window off-cuts.

Results and dividends

The results for the Period are set out on page 8.

No ordinary dividends were paid. The director does not recommend payment of a further dividend.

Director

The director who held office during the Period and up to the date of signature of the financial statements was as follows:

C M Makin
(Appointed 25 July 2022)
Research and development

The Group continues to invest in developing new materials and process technologies in the manufacture of thermoplastic extrusions. The research and development function forms an integral part of the group and looks to secure long term growth for the business.

Auditor

In accordance with the company's articles, a resolution proposing that Alexander & Co LLP be reappointed as auditor of the company will be put at a General Meeting.

Statement of director's responsibilities

The director is responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the director is required to:

 

 

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

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

EAGLEY PLASTICS HOLDINGS LIMITED
DIRECTOR'S REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2023
- 4 -
Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

On behalf of the board
C M Makin
Director
31 January 2024
EAGLEY PLASTICS HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF EAGLEY PLASTICS HOLDINGS LIMITED
- 5 -
Opinion

We have audited the financial statements of Eagley Plastics Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the Period ended 31 March 2023 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

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

Conclusions relating to going concern

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

 

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

 

Our responsibilities and the responsibilities of the director 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 director is 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:

EAGLEY PLASTICS HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF EAGLEY PLASTICS HOLDINGS LIMITED
- 6 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the 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:

Responsibilities of director

As explained more fully in the director's responsibilities statement, the director is 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 director determines 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 director is responsible for assessing the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the director either intends to liquidate the parent company or to cease operations, or has 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.

Capability of the audit in 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.

 

Based on our understanding of the company, we identified that the principal risks of non-compliance with laws and regulations related to breaches of the legal and regulatory framework that the company operates in. We considered the extent to which non-compliance might have a material effect on the financial statements. The key laws and regulations we considered in this context included UK Companies Act 2006, employment law, health and safety and tax legislation.

 

We also evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks were related to the posting of inappropriate journal entries to manipulate financial results and potential management bias in accounting estimates.

EAGLEY PLASTICS HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF EAGLEY PLASTICS HOLDINGS LIMITED
- 7 -

As a result of the above, our audit procedures performed included:

There are inherent limitations in the audit procedures described above. The test nature and other inherent limitations of an audit, together with the inherent limitations of any accounting and internal control system, mean that there is an unavoidable risk that even some material misstatements in respect of irregularities may remain undiscovered even though the audit is properly planned and performed in accordance with ISAs (UK).

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.

Our examination should therefore not be relied upon to disclose all such material misstatements or frauds, errors or instances of non-compliance that might exist. The responsibility for safeguarding the assets of the company and for the prevention and detection of fraud, error and non-compliance with law or regulations rests with the directors of Eagley Plastics Holdings Limited.

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.

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.

Gary Kramrisch (Senior Statutory Auditor)
For and on behalf of Alexander & Co LLP
5 February 2024
Chartered Accountants
Statutory Auditor
Centurion House
129 Deansgate
Manchester
M3 3WR
EAGLEY PLASTICS HOLDINGS LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE PERIOD ENDED 31 MARCH 2023
- 8 -
Period
ended
31 March
2023
Notes
£
Turnover
3
7,103,809
Cost of sales
(6,162,358)
Gross profit
941,451
Administrative expenses
(540,452)
Operating profit
4
400,999
Interest payable and similar expenses
7
(92,927)
Profit before taxation
308,072
Tax on profit
8
(183,780)
Profit for the financial Period
124,292
Profit for the financial Period is all attributable to the owners of the parent company.
EAGLEY PLASTICS HOLDINGS LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 31 MARCH 2023
- 9 -
Period
ended
31 March
2023
£
Profit for the Period
124,292
Other comprehensive income
-
Total comprehensive income for the Period
124,292
Total comprehensive income for the Period is all attributable to the owners of the parent company.
EAGLEY PLASTICS HOLDINGS LIMITED
GROUP BALANCE SHEET
AS AT
31 MARCH 2023
31 March 2023
- 10 -
2023
Notes
£
£
Fixed assets
Negative goodwill
9
(751,427)
Tangible assets
10
3,593,962
Current assets
Stocks
13
1,836,304
Debtors
14
1,962,245
Cash at bank and in hand
877,530
4,676,079
Creditors: amounts falling due within one year
15
(3,948,210)
Net current assets
727,869
Total assets less current liabilities
3,570,404
Creditors: amounts falling due after more than one year
16
(1,382,836)
Provisions for liabilities
Deferred tax liability
19
463,276
(463,276)
Net assets
1,724,292
Capital and reserves
Called up share capital
21
4,975
Share premium account
1,595,025
Profit and loss reserves
124,292
Total equity
1,724,292

These financial statements have been prepared in accordance with the provisions relating to medium-sized groups.

The financial statements were approved and signed by the director and authorised for issue on 31 January 2024
31 January 2024
C M Makin
Director
Company registration number 14253798 (England and Wales)
EAGLEY PLASTICS HOLDINGS LIMITED
COMPANY BALANCE SHEET
AS AT 31 MARCH 2023
31 March 2023
- 11 -
2023
Notes
£
£
Fixed assets
Investments
11
3,216,000
Current assets
-
Creditors: amounts falling due within one year
15
(475,418)
Net current liabilities
(475,418)
Total assets less current liabilities
2,740,582
Creditors: amounts falling due after more than one year
16
(562,500)
Net assets
2,178,082
Capital and reserves
Called up share capital
21
4,975
Merger reserve
1,595,025
Profit and loss reserves
578,082
Total equity
2,178,082

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £578,082.

The financial statements were approved and signed by the director and authorised for issue on 31 January 2024
31 January 2024
C M Makin
Director
Company registration number 14253798 (England and Wales)
EAGLEY PLASTICS HOLDINGS LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 31 MARCH 2023
- 12 -
Share capital
Share premium account
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 25 July 2022
-
-
-
-
Period ended 31 March 2023:
Profit and total comprehensive income
-
-
124,292
124,292
Issue of share capital
21
4,975
-
0
-
4,975
Issue of shares
21
-
0
1,595,025
-
0
1,595,025
Balance at 31 March 2023
4,975
1,595,025
124,292
1,724,292
EAGLEY PLASTICS HOLDINGS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 31 MARCH 2023
- 13 -
Share capital
Share premium account
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 25 July 2022
-
-
-
-
Period ended 31 March 2023:
Profit and total comprehensive income
-
-
578,082
578,082
Issue of share capital
21
4,975
-
0
-
4,975
Issue of shares
21
-
0
1,595,025
-
0
1,595,025
Balance at 31 March 2023
4,975
1,595,025
578,082
2,178,082
EAGLEY PLASTICS HOLDINGS LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED 31 MARCH 2023
- 14 -
2023
Notes
£
£
Cash flows from operating activities
Cash absorbed by operations
24
(980,532)
Interest paid
(92,927)
Net cash outflow from operating activities
(1,073,459)
Investing activities
Def tax
463,276
Purchase of intangible assets
805,100
Purchase of tangible fixed assets
(4,033,030)
Proceeds from disposal of tangible fixed assets
80,612
Net cash used in investing activities
(2,684,042)
Financing activities
Consolidated investing activites
1,600,000
Proceeds from borrowings
2,229,898
Proceeds from finance leases
805,133
Net cash generated from/(used in) financing activities
4,635,031
Net increase in cash and cash equivalents
877,530
Cash and cash equivalents at beginning of Period
-
0
Cash and cash equivalents at end of Period
877,530
EAGLEY PLASTICS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2023
- 15 -
1
Accounting policies
Company information

Eagley Plastics Holdings Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Stephanie Works, Chinley, Stockport, High Peak, SK23 6BT.

 

The group consists of Eagley Plastics Holdings Limited and all of its subsidiaries.

1.1
Reporting period

The reporting period is since incorporation 25 July 2022 and therefore the figures within the accounts are for the 8 months post incorporation.

1.2
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.3
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date.

1.4
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Eagley Plastics Holdings Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 31 March 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

1.5
Going concern

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

EAGLEY PLASTICS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 16 -
1.6
Turnover

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

 

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

1.7
Intangible fixed assets - goodwill

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

 

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

1.8
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:

Leasehold improvements
6.67% straight line
Fixtures and fittings
6.67% - 25% straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.

1.9
Fixed asset investments

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

1.10
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible 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.

 

EAGLEY PLASTICS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 17 -

If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss.

1.11
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

 

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.12
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.13
Financial instruments

The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method 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.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

EAGLEY PLASTICS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 18 -
Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

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

Basic financial liabilities

Basic financial liabilities, including creditors, 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.

 

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.

Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.14
Equity instruments

Equity instruments issued by the group 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 group.

1.15
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

EAGLEY PLASTICS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 19 -
Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.16
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.

 

1.17
Retirement benefits

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

1.18
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

1.19
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.

1.20

Research and Development

Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.

EAGLEY PLASTICS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2023
- 20 -
2
Judgements and key sources of estimation uncertainty

In the application of the group’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.

3
Turnover
2023
£
Turnover analysed by class of business
Production and sale of plastic building products
7,103,809
2023
£
Turnover analysed by geographical market
United Kingdom
6,809,947
European Union
289,712
Rest of world
4,150
7,103,809
4
Operating profit
2023
£
Operating profit for the period is stated after charging/(crediting):
Exchange gains
(37,440)
Depreciation of owned tangible fixed assets
264,847
Profit on disposal of tangible fixed assets
(66,845)
Amortisation of intangible assets
(53,673)
5
Auditor's remuneration
2023
Fees payable to the company's auditor and associates:
£
For audit services
Audit of the financial statements of the group and company
3,600
Audit of the financial statements of the company's subsidiaries
19,500
23,100
EAGLEY PLASTICS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2023
- 21 -
6
Employees

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

Group
Company
2023
2023
Number
Number
Management
4
1
Sales and administration
7
-
Manufacturing and distribution
56
-
Total
67
1

Their aggregate remuneration comprised:

Group
Company
2023
2023
£
£
Wages and salaries
1,189,120
-
0
Social security costs
103,083
-
Pension costs
29,965
-
0
1,322,168
-
0
7
Interest payable and similar expenses
2023
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
31,247
Other interest on financial liabilities
5,286
36,533
Other finance costs:
Interest on finance leases and hire purchase contracts
23,600
Other interest
14,476
Total finance costs
92,927
8
Taxation
2023
£
Deferred tax
Other adjustments
183,780
EAGLEY PLASTICS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2023
8
Taxation
(Continued)
- 22 -

The actual charge for the Period can be reconciled to the expected charge/(credit) for the Period based on the profit or loss and the standard rate of tax as follows:

2023
£
Profit before taxation
308,072
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00%
58,534
Tax effect of expenses that are not deductible in determining taxable profit
4,429
Unutilised tax losses carried forward
4,164
Amortisation on assets not qualifying for tax allowances
(10,635)
Deferred tax movement
111,186
Profit adjustment upon consolidation
27,848
super deduction enhancement
(11,746)
Taxation charge
183,780
9
Intangible fixed assets
Group
Negative goodwill
£
Cost
At 25 July 2022
-
0
Additions
(805,100)
At 31 March 2023
(805,100)
Amortisation and impairment
At 25 July 2022
-
0
Amortisation charged for the Period
(53,673)
At 31 March 2023
(53,673)
Carrying amount
At 31 March 2023
(751,427)

Additions to intangible assets relate to goodwill generated on the acquisition of Eagley Plastics Limited. The negative goodwill is being amortised over its useful life which the directors consider to be 10 years.

The group had no intangible fixed assets at 25 July 2022.
EAGLEY PLASTICS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2023
- 23 -
10
Tangible fixed assets
Group
Leasehold improvements
Fixtures and fittings
Total
£
£
£
Cost
At 25 July 2022
-
0
-
0
-
0
Additions
608,481
3,424,639
4,033,120
Disposals
-
0
(83,327)
(83,327)
At 31 March 2023
608,481
3,341,312
3,949,793
Depreciation and impairment
At 25 July 2022
-
0
-
0
-
0
Depreciation charged in the Period
65,726
328,277
394,003
Eliminated in respect of disposals
-
0
(38,172)
(38,172)
At 31 March 2023
65,726
290,105
355,831
Carrying amount
At 31 March 2023
542,755
3,051,207
3,593,962
The group had no tangible fixed assets at 25 July 2022.

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

Group
Company
2023
2023
£
£
Plant and equipment
1,650,134
-
0
11
Fixed asset investments
Group
Company
2023
2023
Notes
£
£
Investments in subsidiaries
12
-
0
3,216,000
EAGLEY PLASTICS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2023
11
Fixed asset investments
(Continued)
- 24 -
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 25 July 2022
-
Additions
3,216,000
At 31 March 2023
3,216,000
Carrying amount
At 31 March 2023
3,216,000
12
Subsidiaries

Details of the company's subsidiaries at 31 March 2023 are as follows:

Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
Eagley Plastics Limited
England and Wales
Plastic extrusion and moulding, the retail sale of plastic building products, lamination of goods and the recycling of uPVC window off-cuts.
Ordinary
100.00
The aggregate capital and reserves and the result for the year of the subsidiaries noted above was as follows:
Name of undertaking
Capital and Reserves
Profit/(Loss)
£
£
Eagley Plastics Limited
3,513,637
236,805
13
Stocks
Group
Company
2023
2023
£
£
Raw materials and consumables
1,171,310
-
Finished goods and goods for resale
664,994
-
0
1,836,304
-
EAGLEY PLASTICS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2023
- 25 -
14
Debtors
Group
Company
2023
2023
Amounts falling due within one year:
£
£
Trade debtors
1,610,774
-
0
Other debtors
41,276
-
0
Prepayments and accrued income
310,195
-
0
1,962,245
-
15
Creditors: amounts falling due within one year
Group
Company
2023
2023
Notes
£
£
Bank loans
17
100,000
-
0
Obligations under finance leases
18
194,943
-
0
Other borrowings
17
1,625,570
268,318
Trade creditors
869,748
-
0
Amounts owed to group undertakings
-
0
203,500
Other taxation and social security
167,456
-
Other creditors
823,801
-
0
Accruals and deferred income
166,692
3,600
3,948,210
475,418

Other borrowings include £1,357,252 which relate to an invoice discounting facility which is secured by a fixed and floating charge over certain trade debtors of Eagley Plastics Limited.

16
Creditors: amounts falling due after more than one year
Group
Company
2023
2023
Notes
£
£
Bank loans and overdrafts
17
210,146
-
0
Obligations under finance leases
18
610,190
-
0
Other borrowings
17
562,500
562,500
1,382,836
562,500

Included in other borrowings are loan notes totalling £1m issued to M D Makin as part of the consideration for the purchase of Eagley Plastics Limited. The loan notes are repayable in quarterly installments of £62,500 commencing 30th September 2022.

EAGLEY PLASTICS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2023
- 26 -
17
Loans and overdrafts
Group
Company
2023
2023
£
£
Bank loans
310,146
-
0
Other loans
2,188,070
830,818
2,498,216
830,818
Payable within one year
1,725,570
268,318
Payable after one year
772,646
562,500

 

 

18
Finance lease obligations
Group
Company
2023
2023
£
£
Future minimum lease payments due under finance leases:
Within one year
270,851
-
0
In two to five years
662,337
-
0
933,188
-
Less: future finance charges
(128,055)
-
0
805,133
-
0

Obligations under finance leases are secured on the asset to which the lease relate.

 

19
Deferred taxation

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

Liabilities
2023
Group
£
Accelerated capital allowances
829,550
Tax losses
(366,274)
463,276
The company has no deferred tax assets or liabilities.
EAGLEY PLASTICS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2023
19
Deferred taxation
(Continued)
- 27 -
Group
Company
2023
2023
Movements in the Period:
£
£
Liability at 25 July 2022
279,496
-
Effect of change in tax rate - profit or loss
111,186
-
Utilisation of losses
72,594
-
Liability at 31 March 2023
463,276
-

The deferred tax liability set out above is expected to reverse within 72 months and relates to accelerated capital allowances that are expected to mature within the same period.

20
Retirement benefit schemes
2023
Defined contribution schemes
£
Charge to profit or loss in respect of defined contribution schemes
46,932

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

21
Share capital
Group and company
2023
2023
Ordinary share capital
Number
£
Issued and fully paid
Ordinary of £1 each
4,975
4,975
22
Operating lease commitments

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Group
Company
2023
2023
£
£
Within one year
328,256
-
Between two and five years
683,105
-
1,011,361
-
EAGLEY PLASTICS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2023
(Continued)
- 28 -
23
Related party transactions

During the year rent totalling £225,000 (2022 - £225,000) was charged from Vinyl Partners LLP which is owned jointly by C M Makin and M D Makin.

24
Cash absorbed by group operations
2023
£
Profit for the Period after tax
124,292
Adjustments for:
Finance costs
92,927
Gain on disposal of tangible fixed assets
(35,547)
Amortisation and impairment of intangible assets
(53,673)
Depreciation and impairment of tangible fixed assets
394,003
Movements in working capital:
Increase in stocks
(1,836,304)
Increase in debtors
(1,962,245)
Increase in creditors
2,296,015
Cash absorbed by operations
(980,532)
25
Analysis of changes in net debt - group
25 July 2022
Cash flows
31 March 2023
£
£
£
Cash at bank and in hand
-
877,530
877,530
Borrowings excluding overdrafts
-
(2,498,216)
(2,498,216)
Obligations under finance leases
-
(805,133)
(805,133)
-
(2,425,819)
(2,425,819)
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