Company Registration No. 02581625 (England and Wales)
ROYDON POLYTHENE LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED
31 OCTOBER 2023
31 October 2023
PAGES FOR FILING WITH REGISTRAR
PM+M Solutions for Business LLP
Chartered Accountants
New Century House
Greenbank Technology Park
Challenge Way
Blackburn
Lancashire
BB1 5QB
ROYDON POLYTHENE LIMITED
COMPANY INFORMATION
Directors
S P Sumner
W Sumner
G R Wallwork
Secretary
S P Sumner
Company number
02581625
Registered office
Units 1-3
Junction Eco Park
Rake Lane
Swinton
M27 8LU
Auditor
PM+M Solutions for Business LLP
New Century House
Greenbank Technology Park
Challenge Way
Blackburn
Lancashire
BB1 5QB
ROYDON POLYTHENE LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 7
ROYDON POLYTHENE LIMITED
BALANCE SHEET
AS AT
31 OCTOBER 2023
31 October 2023
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
3
799,548
558,074
Current assets
Stocks
170,359
210,112
Debtors
4
4,216,521
3,641,032
Cash at bank and in hand
193,050
530,706
4,579,930
4,381,850
Creditors: amounts falling due within one year
5
(3,706,114)
(3,363,679)
Net current assets
873,816
1,018,171
Total assets less current liabilities
1,673,364
1,576,245
Creditors: amounts falling due after more than one year
6
(199,382)
(12,155)
Provisions for liabilities
(174,620)
(109,133)
Net assets
1,299,362
1,454,957
Capital and reserves
Called up share capital
27,600
27,600
Share premium account
113,326
113,326
Profit and loss reserves
1,158,436
1,314,031
Total equity
1,299,362
1,454,957
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 13 June 2024 and are signed on its behalf by:
S P Sumner
W Sumner
Director
Director
Company registration number 02581625 (England and Wales)
ROYDON POLYTHENE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023
- 2 -
1
Accounting policies
Company information
Roydon Polythene Limited is a private company limited by shares incorporated in England and Wales. The registered office is Units 1-3, Junction Eco Park, Rake Lane, Swinton, M27 8LU.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Turnover
Turnover represents goods delivered and PRN/PERN sales during the year excluding VAT. PRN/PERN sales are recognised on supply of PRN/PERNs.
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.
1.3
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
Over the life of the lease
Plant and machinery
5% - 50% straight line
Office equipment and fittings
33.3% straight line
Motor vehicles
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 credited or charged to profit or loss.
1.4
Stocks
Stocks are valued at the lower of cost and net realisable value. Cost is based on the cost of purchase on a first in, first out basis together with attributable overheads based on normal level of activity, after making due allowance for production losses.
Net realisable value is based on estimated selling price less further costs to completion and disposal.
1.5
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand.
ROYDON POLYTHENE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
1
Accounting policies
(Continued)
- 3 -
1.6
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs. Financial assets classified as receivable within one year are not amortised.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans and loans from fellow group companies are initially recognised at transaction price. 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.
1.7
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.8
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
ROYDON POLYTHENE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
1
Accounting policies
(Continued)
- 4 -
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.9
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.
1.10
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.11
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.
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
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.
ROYDON POLYTHENE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 5 -
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Total
20
19
3
Tangible fixed assets
Land and buildings
Plant and machinery etc
Total
£
£
£
Cost
At 1 November 2022
82,351
2,362,901
2,445,252
Additions
446,241
446,241
At 31 October 2023
82,351
2,809,142
2,891,493
Depreciation and impairment
At 1 November 2022
73,038
1,814,140
1,887,178
Depreciation charged in the year
2,874
201,893
204,767
At 31 October 2023
75,912
2,016,033
2,091,945
Carrying amount
At 31 October 2023
6,439
793,109
799,548
At 31 October 2022
9,313
548,761
558,074
4
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
1,759,407
1,307,218
Amounts owed by group undertakings
2,404,244
2,143,108
Other debtors
52,870
190,706
4,216,521
3,641,032
Amounts owed by group undertakings are interest free and repayable on demand.
ROYDON POLYTHENE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 6 -
5
Creditors: amounts falling due within one year
2023
2022
£
£
Obligations under finance leases
71,951
24,310
Trade creditors
58,110
53,337
Amounts owed to group undertakings
2,429,413
1,856,631
Corporation tax
34,239
Other taxation and social security
24,909
222,218
Other creditors
1,070,164
1,055,172
Accruals and deferred income
51,567
117,772
3,706,114
3,363,679
The amounts owed to group undertakings are interest free and repayable on demand.
The amounts advanced under invoice discounting £250,418 (2022: £1,054,190) are secured by a cross guarantee and debenture given by all group companies.
Obligations due under finance leases are secured on the assets to which the agreement relates.
6
Creditors: amounts falling due after more than one year
2023
2022
£
£
Obligations under finance leases
199,382
12,155
Obligations due under finance leases are secured on the assets to which the agreement relates.
7
Audit report information
As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:
The auditor's report was unqualified.
Senior Statutory Auditor:
Daniel Bowles FCCA
Statutory Auditor:
PM+M Solutions for Business LLP
Date of audit report:
19 July 2024
8
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2023
2022
£
£
136,722
741
ROYDON POLYTHENE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 7 -
9
Related party transactions
Roydon Recycling UK Limited
During the year the company entered into transactions with Roydon Recycling UK Limited, a company of which Mr G Wallwork and Mrs S P Sumner were directors and shareholders of the parent company, Roydon Recycling Holdings UK Limited, up until the 16 June 2023.
The company made sales of goods and services to this company of £40,096 (2022: £84,962) and purchased goods and services from this company totalling £39,818 (2022: £81,834). A balance of £Nil was owed from Roydon Recycling UK Limited at year end (31 October 2022: £10,894).
Outstanding balances are payable on demand, interest free and not secured.
Roydon Bottle Recycling UK Limited
During the year the company entered into transactions with Roydon Bottle Recycling UK Limited, a company of which Mr G Wallwork and Mr W Sumner are directors and shareholders and of which Mrs S Sumner is a director.
During the year the company made sales of goods and services to this company of £25,975 (2022: £16,552) and purchased goods and services from this company totalling £5,055,604 (2022: £2,900,432). A balance of £796,447 was owed to Roydon Bottle Recycling UK Limited at 31 October 2023 (2022: owed to £14,097).
Outstanding balances are payable on demand, interest free and not secured.
10
Parent company
The parent of Roydon Polythene Limited is Roydon Group PLC, a company registered and incorporated in England and Wales. The financial statements can be obtained from the registered office.
The smallest and largest group into which the entity is consolidated is Roydon Holdings Limited, a company registered and incorporated in England and Wales. The financial statements can be obtained from the registered office.