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REGISTERED NUMBER: 02907163 (England and Wales)















Strategic Report, Report of the Directors and

Financial Statements for the Year Ended 31 October 2023

for

Trueline Expanded Products Ltd.

Trueline Expanded Products Ltd. (Registered number: 02907163)






Contents of the Financial Statements
for the year ended 31 October 2023




Page

Company Information 1

Strategic Report 2

Report of the Directors 3

Report of the Independent Auditors 5

Income Statement 9

Other Comprehensive Income 10

Balance Sheet 11

Statement of Changes in Equity 12

Cash Flow Statement 13

Notes to the Cash Flow Statement 14

Notes to the Financial Statements 16


Trueline Expanded Products Ltd.

Company Information
for the year ended 31 October 2023







DIRECTORS: S Mares
Mrs A M Mares
L G W Wellings





SECRETARY: Mrs A M Mares





REGISTERED OFFICE: Parker Place
Firs Industrial Estate
Kidderminster
Worcestershire
DY11 7QN





REGISTERED NUMBER: 02907163 (England and Wales)





AUDITORS: Pinfields Limited
Chartered Accountants
Statutory Auditor
Meryll House
57 Worcester Road
Bromsgrove
Worcestershire
B61 7DN

Trueline Expanded Products Ltd. (Registered number: 02907163)

Strategic Report
for the year ended 31 October 2023

The directors present their strategic report for the year ended 31 October 2023.

REVIEW OF BUSINESS
During the year to 31 October 2023 the company's turnover increased from 2022 by approx 30.7% to give turnover of £12,665,020. The gross margin has increased from 44.13% to 47.17% for the year ended 31 October 2023. The net profit margin after tax has also increased from 10.17% to 14.86%, Administration and Establishment costs have increased, but both less than the percentage of sales growth, therefore overall net profit remains higher than in 2022.

There is an increased risk of uncertainty within the construction industry due to the new government, and access to grants and support from them. However, with this net profit it leaves the company in a strong position on which to trade for the next year.

The key performance indicators are turnover, margin and ultimate profitability and the analysis of these was given above.

PRINCIPAL RISKS AND UNCERTAINTIES
The principal risk and uncertainties for the business is the general state of the UK economy. Especially with regard to the buoyancy of the building industry. The business is also concerned with the cost of its raw material purchases.

ON BEHALF OF THE BOARD:





L G W Wellings - Director


31 July 2024

Trueline Expanded Products Ltd. (Registered number: 02907163)

Report of the Directors
for the year ended 31 October 2023

The directors present their report with the financial statements of the company for the year ended 31 October 2023.

PRINCIPAL ACTIVITY
The principal activity of the company in the year under review was that of manufacturing of metal angle beads for the building industry.

DIVIDENDS
Interim dividends per share were paid as follows:

31.4 - 31 January 2023
62.1 - 30 April 2023
32.1 - 31 July 2023
13.2 - 31 October 2023
138.8
The directors recommend that no final dividend be paid.

The total distribution of dividends for the year ended 31 October 2023 will be £1,454,000 (2022: £735,000).

RESEARCH AND DEVELOPMENT
The company is in the process of quantifying the R&D claim, but the accounts do not include an adjustment for this.

DIRECTORS
The directors shown below have held office during the whole of the period from 1 November 2022 to the date of this report.

S Mares
Mrs A M Mares
L G W Wellings

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless 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, the directors are required to:

-select suitable accounting policies and then apply them consistently;
-make judgements and accounting estimates that are reasonable and prudent;
-prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.


Trueline Expanded Products Ltd. (Registered number: 02907163)

Report of the Directors
for the year ended 31 October 2023

STATEMENT OF DIRECTORS' RESPONSIBILITIES - continued
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.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS
The auditors, Pinfields Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





L G W Wellings - Director


31 July 2024

Report of the Independent Auditors to the Members of
Trueline Expanded Products Ltd.

Opinion
We have audited the financial statements of Trueline Expanded Products Ltd. (the 'company') for the year ended 31 October 2023 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of 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:
-give a true and fair view of the state of the company's affairs as at 31 October 2023 and of its profit for the year then ended;
-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-have been prepared in accordance with the requirements of the Companies Act 2006.

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 Auditors' 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 directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

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.

In connection with our audit of the financial statements, 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 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.

Report of the Independent Auditors to the Members of
Trueline Expanded Products Ltd.


Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

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:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on pages three and four, 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 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.

Report of the Independent Auditors to the Members of
Trueline Expanded Products Ltd.


Auditors' 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 a Report of the Auditors 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:

- Obtaining an understanding of the legal and regulatory frameworks that the company operates in, focusing on those laws and regulations that have a direct effect on the financial statements;
- Enquiry of management around actual and potential litigation claims;
- Enquiry of management to identify and instances of non-compliance with laws and regulations;
- Performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness;
- Reviewing accounting estimates for evidence of management bias;
- Reviewing minutes of meetings of those charged with governance and management, where available; and
- Reviewing the bank for evidence of large and other unusual payments.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Report of the Independent Auditors to the Members of
Trueline Expanded Products Ltd.


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 a Report of the Auditors 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.




P J Tivey FCA FCCA (Senior Statutory Auditor)
for and on behalf of Pinfields Limited
Chartered Accountants
Statutory Auditor
Meryll House
57 Worcester Road
Bromsgrove
Worcestershire
B61 7DN

31 July 2024

Trueline Expanded Products Ltd. (Registered number: 02907163)

Income Statement
for the year ended 31 October 2023

2023 2022
Notes £    £   

TURNOVER 12,665,020 9,692,210

Cost of sales (6,690,833 ) (5,414,648 )
GROSS PROFIT 5,974,187 4,277,562

Administrative expenses (3,455,503 ) (3,105,438 )
2,518,684 1,172,124

Other operating income 3 12,154 14,884
OPERATING PROFIT 5 2,530,838 1,187,008

Interest receivable and similar income 4,310 876
2,535,148 1,187,884

Interest payable and similar expenses 6 (79,483 ) (55,161 )
PROFIT BEFORE TAXATION 2,455,665 1,132,723

Tax on profit 7 (573,175 ) (146,673 )
PROFIT FOR THE FINANCIAL
YEAR

1,882,490

986,050

Trueline Expanded Products Ltd. (Registered number: 02907163)

Other Comprehensive Income
for the year ended 31 October 2023

2023 2022
Notes £    £   

PROFIT FOR THE YEAR 1,882,490 986,050


OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE
INCOME FOR THE YEAR

1,882,490

986,050

Trueline Expanded Products Ltd. (Registered number: 02907163)

Balance Sheet
31 October 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 9 1,978,025 2,295,221

CURRENT ASSETS
Stocks 10 1,151,950 1,109,040
Debtors: amounts falling due within one
year

11

2,941,425

2,571,491
Debtors: amounts falling due after more
than one year

11

1,994,808

2,068,172
Cash at bank 908,374 383,962
6,996,557 6,132,665
CREDITORS
Amounts falling due within one year 12 2,774,486 2,407,492
NET CURRENT ASSETS 4,222,071 3,725,173
TOTAL ASSETS LESS CURRENT
LIABILITIES

6,200,096

6,020,394

CREDITORS
Amounts falling due after more than one
year

13

(1,086,581

)

(1,291,105

)

PROVISIONS FOR LIABILITIES 18 (330,454 ) (374,718 )
NET ASSETS 4,783,061 4,354,571

CAPITAL AND RESERVES
Called up share capital 19 10,000 10,000
Revaluation reserve 20 237,135 282,303
Retained earnings 20 4,535,926 4,062,268
SHAREHOLDERS' FUNDS 4,783,061 4,354,571

The financial statements were approved by the Board of Directors and authorised for issue on 31 July 2024 and were signed on its behalf by:





L G W Wellings - Director


Trueline Expanded Products Ltd. (Registered number: 02907163)

Statement of Changes in Equity
for the year ended 31 October 2023

Called up
share Retained Revaluation Total
capital earnings reserve equity
£    £    £    £   
Balance at 1 November 2021 10,000 3,811,218 282,303 4,103,521

Changes in equity
Dividends - (735,000 ) - (735,000 )
Total comprehensive income - 986,050 - 986,050
Balance at 31 October 2022 10,000 4,062,268 282,303 4,354,571

Changes in equity
Dividends - (1,454,000 ) - (1,454,000 )
Total comprehensive income - 1,927,658 (45,168 ) 1,882,490
Balance at 31 October 2023 10,000 4,535,926 237,135 4,783,061

Trueline Expanded Products Ltd. (Registered number: 02907163)

Cash Flow Statement
for the year ended 31 October 2023

2023 2022
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 2,471,065 891,909
Interest paid (39,941 ) (24,535 )
Interest element of hire purchase
payments paid

(38,699

)

(29,795

)
Tax paid (35,719 ) -
Net cash from operating activities 2,356,706 837,579

Cash flows from investing activities
Purchase of tangible fixed assets (60,661 ) (160,770 )
Sale of tangible fixed assets 23,140 218,600
Interest received 4,310 876
Net cash from investing activities (33,211 ) 58,706

Cash flows from financing activities
Loan repayments in year (27,231 ) (31,965 )
Capital repayments in year (312,350 ) (266,463 )
Amount introduced by directors - 56,159
Amount withdrawn by directors (5,502 ) -
Equity dividends paid (1,454,000 ) (735,000 )
Net cash from financing activities (1,799,083 ) (977,269 )

Increase/(decrease) in cash and cash equivalents 524,412 (80,984 )
Cash and cash equivalents at
beginning of year

2

383,962

464,946

Cash and cash equivalents at end of
year

2

908,374

383,962

Trueline Expanded Products Ltd. (Registered number: 02907163)

Notes to the Cash Flow Statement
for the year ended 31 October 2023

1. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM
OPERATIONS
2023 2022
£    £   
Profit before taxation 2,455,665 1,132,723
Depreciation charges 349,330 323,054
(Profit)/loss on disposal of fixed assets (20,437 ) 27,417
Finance costs 79,483 55,161
Finance income (4,310 ) (876 )
2,859,731 1,537,479
Increase in stocks (42,910 ) (303,855 )
Increase in trade and other debtors (281,251 ) (65,622 )
Decrease in trade and other creditors (64,505 ) (276,093 )
Cash generated from operations 2,471,065 891,909

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 October 2023
31/10/23 1/11/22
£    £   
Cash and cash equivalents 908,374 383,962
Year ended 31 October 2022
31/10/22 1/11/21
£    £   
Cash and cash equivalents 383,962 464,946


Trueline Expanded Products Ltd. (Registered number: 02907163)

Notes to the Cash Flow Statement
for the year ended 31 October 2023

3. ANALYSIS OF CHANGES IN NET DEBT

Other
non-cash
At 1/11/22 Cash flow changes At 31/10/23
£    £    £    £   
Net cash
Cash at bank 383,962 524,412 908,374
383,962 524,412 908,374
Debt
Finance leases (1,065,867 ) 312,350 (40,926 ) (794,443 )
Debts falling due
within 1 year (30,460 ) 3,239 - (27,221 )
Debts falling due
after 1 year (488,623 ) 23,992 - (464,631 )
(1,584,950 ) 339,581 (40,926 ) (1,286,295 )
Total (1,200,988 ) 863,993 (40,926 ) (377,921 )

Trueline Expanded Products Ltd. (Registered number: 02907163)

Notes to the Financial Statements
for the year ended 31 October 2023

1. STATUTORY INFORMATION

Trueline Expanded Products Ltd. is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

The presentation currency of these financial statements is sterling (£) and they are rounded to the nearest £1.

Significant judgements and estimates
In the course of preparing the financial statements, no judgements have been made in the process of applying the Company's accounting policies, other than those involving estimations, that have had a significant effect on the amounts recognised in the financial statements.

Turnover
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods has transferred to the buyer. This is usually at the point the customer has signed for the delivery of goods.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.
Long leasehold - 2% on cost
Plant and machinery - 20% on reducing balance
Fixtures and fittings - 33% on cost and 20% on reducing balance
Motor vehicles - 25% on reducing balance

The Long leasehold property is included at a deemed cost valuation from first implementation of FRS 102 in 2016. Depreciation is being provided at 2% on this value. The company has not adopted a revaluation policy.

Government grants
Government grants relating to revenue are recognised when it is reasonable to expect that the grants will be received and that all related conditions will be met, usually on submission of a valid claim for payment.

Grants relating to fixed assets are recognised in the income statement on a systematic basis over the expected useful life of the assets. The deferred element is disclosed in creditors as 'Deferred government grants'.

Trueline Expanded Products Ltd. (Registered number: 02907163)

Notes to the Financial Statements - continued
for the year ended 31 October 2023

2. ACCOUNTING POLICIES - continued

Stocks
Stocks and work in progress are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Cost is calculated using the first-in, first-out method and includes all purchase, transport, and handling costs in bringing stocks to their present location and condition.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Foreign currencies
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Hire purchase and leasing commitments
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Trueline Expanded Products Ltd. (Registered number: 02907163)

Notes to the Financial Statements - continued
for the year ended 31 October 2023

2. ACCOUNTING POLICIES - continued

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Financial instruments
Financial assets and financial liabilities are recognised when the company becomes party to the contractual provisions of the instrument.

All financial assets and liabilities are initially measured at transactions price, except for those financial assets classified as at fair value through profit and loss. which are initially measured at fair value. If an arrangement constitutes a financing transaction, the financial asset or liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

Debt instruments that have no stated interest rate and are classified as payable or receivable within one year are initially measured at an undiscounted amount of the cash or other consideration expected to be paid or received, net of impairment.

Financial assets are only derecognised when the contractual rights to the cash flows from the financial asset expire or are settled, when the company transfers to another party substantially all of the risks and rewards of ownership of the financial asset, or when the company has transferred control of the asset to another party.

Financial liabilities are only derecognised when the obligation is discharged, cancelled or expired.

3. OTHER OPERATING INCOME
2023 2022
£    £   
Sundry receipts 1,061 1,017
Government grants 11,093 13,867
12,154 14,884

Grants received in the year are made up of deferred grants for asset purchases.

4. EMPLOYEES AND DIRECTORS
2023 2022
£    £   
Wages and salaries 2,067,505 1,629,299
Social security costs 204,459 168,524
Other pension costs 42,537 34,949
2,314,501 1,832,772

Trueline Expanded Products Ltd. (Registered number: 02907163)

Notes to the Financial Statements - continued
for the year ended 31 October 2023

4. EMPLOYEES AND DIRECTORS - continued

The average number of employees during the year was as follows:
2023 2022

Factory 40 35
Office 28 24
68 59

2023 2022
£    £   
Directors' remuneration 174,356 150,739
Directors' pension contributions to money purchase schemes 1,782 1,782

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes 3 3

5. OPERATING PROFIT

The operating profit is stated after charging/(crediting):

2023 2022
£    £   
Hire of plant and machinery 39,250 30,663
Depreciation - owned assets 107,723 160,712
Depreciation - assets on hire purchase contracts 241,607 162,340
(Profit)/loss on disposal of fixed assets (20,437 ) 27,417
Auditors' remuneration 24,400 28,412
Foreign exchange differences 780 5,739

6. INTEREST PAYABLE AND SIMILAR EXPENSES
2023 2022
£    £   
Bank interest 1,738 1,853
Bank loan interest 38,203 22,682
Interest on overdue taxation 843 831
Hire purchase 38,699 29,795
79,483 55,161

Trueline Expanded Products Ltd. (Registered number: 02907163)

Notes to the Financial Statements - continued
for the year ended 31 October 2023

7. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
2023 2022
£    £   
Current tax:
UK corporation tax 617,439 65,788
Prior year tax adjustment - (77,203 )
Total current tax 617,439 (11,415 )

Deferred tax (44,264 ) 158,088
Tax on profit 573,175 146,673

Reconciliation of total tax charge included in profit and loss
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

2023 2022
£    £   
Profit before tax 2,455,665 1,132,723
Profit multiplied by the standard rate of corporation tax in the UK
of 22.518% (2022 - 19%)

552,967

215,217

Effects of:
Expenses not deductible for tax purposes 12,359 8,803
Adjustments to tax charge in respect of previous periods - (77,203 )
Enhanced capital allowances (689 ) (46,436 )
Deferred taxation provision under standard rate (1,874 ) -
Deferred taxation provision over standard rate 4,702 44,171
Qualifying asset provision 5,710 5,345
Deferred taxation adjustment prior period - (3,224 )
Total tax charge 573,175 146,673

Trueline Expanded Products Ltd. (Registered number: 02907163)

Notes to the Financial Statements - continued
for the year ended 31 October 2023

7. TAXATION - continued

Standard rate of taxation
The standard rate of taxation included in the reconciliation above is 22.518%. This is the effective rate based on the days suffered under the main rate of 19% to 31 March 2023 and 25% from 1 April 2023.

Factors that may affect future tax charges
From 1 April 2023 the corporation tax main rate has increased to 25% for profits over £250,000. A small profits rate has been introduced for profits of £50,000 or less, charging corporation tax at 19%. Profits between £50,000 and £250,000 are taxed at the main rate reduced by a marginal relief providing a gradual increase in the effective rate of corporation tax rate.

Research and Development
The company is in the process of quantifying the R&D claim, but the accounts do not include an adjustment for this.

8. DIVIDENDS
2023 2022
£    £   
Ordinary shares of £1 each
Interim 1,454,000 735,000

9. TANGIBLE FIXED ASSETS
Fixtures
Long Plant and and Motor
leasehold machinery fittings vehicles Totals
£    £    £    £    £   
COST OR VALUATION
At 1 November 2022 850,000 1,975,292 138,212 636,650 3,600,154
Additions - 9,717 46,390 45,480 101,587
Disposals - (184,600 ) - (167,361 ) (351,961 )
At 31 October 2023 850,000 1,800,409 184,602 514,769 3,349,780
DEPRECIATION
At 1 November 2022 119,000 875,438 67,901 242,594 1,304,933
Charge for year 17,000 213,453 24,045 94,832 349,330
Eliminated on disposal - (145,887 ) - (136,621 ) (282,508 )
At 31 October 2023 136,000 943,004 91,946 200,805 1,371,755
NET BOOK VALUE
At 31 October 2023 714,000 857,405 92,656 313,964 1,978,025
At 31 October 2022 731,000 1,099,854 70,311 394,056 2,295,221

Trueline Expanded Products Ltd. (Registered number: 02907163)

Notes to the Financial Statements - continued
for the year ended 31 October 2023

9. TANGIBLE FIXED ASSETS - continued

Cost or valuation at 31 October 2023 is represented by:

Fixtures
Long Plant and and Motor
leasehold machinery fittings vehicles Totals
£    £    £    £    £   
Valuation in 2015 212,140 - - - 212,140
Cost 637,860 1,800,409 184,602 514,769 3,137,640
850,000 1,800,409 184,602 514,769 3,349,780

If leasehold property had not been revalued it would have been included at the following historical cost:

2023 2022
£    £   
Cost 637,680 637,680
Aggregate depreciation 184,973 172,219

Value of land in freehold land and buildings 850,000 850,000

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:
Plant and Motor
machinery vehicles Totals
£    £    £   
COST OR VALUATION
At 1 November 2022 964,700 427,115 1,391,815
Additions - 45,480 45,480
Disposals - (18,740 ) (18,740 )
Transfer to ownership - (49,500 ) (49,500 )
At 31 October 2023 964,700 404,355 1,369,055
DEPRECIATION
At 1 November 2022 167,313 92,050 259,363
Charge for year 159,477 82,130 241,607
Eliminated on disposal - (7,467 ) (7,467 )
Transfer to ownership - (21,334 ) (21,334 )
At 31 October 2023 326,790 145,379 472,169
NET BOOK VALUE
At 31 October 2023 637,910 258,976 896,886
At 31 October 2022 797,387 335,065 1,132,452

Trueline Expanded Products Ltd. (Registered number: 02907163)

Notes to the Financial Statements - continued
for the year ended 31 October 2023

10. STOCKS
2023 2022
£    £   
Finished Goods 53,482 58,729
Raw materials 928,891 898,250
Work-in-progress 169,577 152,061
1,151,950 1,109,040

11. DEBTORS
2023 2022
£    £   
Amounts falling due within one year:
Trade debtors 2,507,692 2,148,902
Other debtors - 1,200
Staff loan 201,433 176,493
Directors' current accounts 45,018 39,692
Tax 33 64,635
S455 tax debtor 78,073 70,228
Prepayments 109,176 70,341
2,941,425 2,571,491

Amounts falling due after more than one year:
Amounts owed from related
party 1,994,808 2,068,172
1,994,808 2,068,172

Aggregate amounts 4,936,233 4,639,663

Trueline Expanded Products Ltd. (Registered number: 02907163)

Notes to the Financial Statements - continued
for the year ended 31 October 2023

12. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Bank loans and overdrafts (see note 14) 27,221 30,460
Hire purchase contracts (see note 15) 207,995 307,762
Trade creditors 1,221,121 1,402,281
Tax 643,787 117,981
Social security and other taxes 51,556 52,758
Pension account 7,368 7,273
VAT 333,713 174,194
Other creditors - 510
Credit card 2,423 -
Wages control account 706 1,635
Directors' current accounts 489 665
Accrued expenses 269,232 300,880
Deferred government grants 8,875 11,093
2,774,486 2,407,492

13. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN
ONE YEAR
2023 2022
£    £   
Bank loans (see note 14) 464,631 488,623
Hire purchase contracts (see note 15) 586,448 758,105
Amounts owed to related parties 4 4
Deferred government grants 35,498 44,373
1,086,581 1,291,105

14. LOANS

An analysis of the maturity of loans is given below:

2023 2022
£    £   
Amounts falling due within one year or on demand:
Bank loans 27,221 30,460

Amounts falling due between one and two years:
Bank loans - 1- 5 years 135,313 140,181

Amounts falling due in more than five years:

Repayable by instalments
Bank loans more 5 yr by instal 329,318 348,442

Trueline Expanded Products Ltd. (Registered number: 02907163)

Notes to the Financial Statements - continued
for the year ended 31 October 2023

14. LOANS - continued

The bank loan is repayable by instalments. Interest is charged at a variable interest rate of 3.30% per annum above Bank of England base rate.

15. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase contracts
2023 2022
£    £   
Net obligations repayable:
Within one year 207,995 307,762
Between one and five years 486,012 758,105
In more than five years 100,436 -
794,443 1,065,867

Non-cancellable operating leases
2023 2022
£    £   
Within one year 130,527 60,527
Between one and five years 428,207 180,082
In more than five years 6,250 3,651
564,984 244,260

16. SECURED DEBTS

The following secured debts are included within creditors:

2023 2022
£    £   
Bank loans 491,852 519,083
Hire purchase contracts 794,443 1,065,867
1,286,295 1,584,950

The bank loans are secured by a 1st Legal charges over the commercial leasehold know as Plot 8 Park Place, Firs Industrial Estate, Kidderminster, DY11 7QN dated 01/05/2008.

Also there is an unlimited debenture dated 18/04/2008 incorporating fixed and floating charge.

Hire purchase agreements are secured by £896,886 (2022 £1,132,452) worth of fixed assets within the company.

Trueline Expanded Products Ltd. (Registered number: 02907163)

Notes to the Financial Statements - continued
for the year ended 31 October 2023

17. FINANCIAL INSTRUMENTS

The carrying value of the company's financial assets and liabilities are summarised by category below:


2023 2022
£ £
Financial assets
Measured at undiscounted amount receivable
- Trade and other debtors 4,748,951 4,434,459

Financial liabilities
Measured at undiscounted amount payable
- Trade and other creditors 2,562,779 3,052,784


18. PROVISIONS FOR LIABILITIES
2023 2022
£    £   
Deferred tax
Accelerated capital allowances 330,454 374,718

Deferred
tax
£   
Balance at 1 November 2022 374,718
Provided during year (44,264 )
Balance at 31 October 2023 330,454

19. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: £    £   
10,000 Ordinary £1 10,000 10,000

Trueline Expanded Products Ltd. (Registered number: 02907163)

Notes to the Financial Statements - continued
for the year ended 31 October 2023

20. RESERVES
Retained Revaluation
earnings reserve Totals
£    £    £   

At 1 November 2022 4,062,268 282,303 4,344,571
Profit for the year 1,882,490 1,882,490
Dividends (1,454,000 ) (1,454,000 )
Realised depreciation on
valuation

45,168

(45,168

)

-

At 31 October 2023 4,535,926 237,135 4,773,061

21. DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

The following advances and credits to directors subsisted during the years ended 31 October 2023 and 31 October 2022:

2023 2022
£    £   
L G W Wellings
Balance outstanding at start of year 39,692 95,195
Amounts advanced 13,293 14,338
Amounts repaid (7,967 ) (69,841 )
Amounts written off - -
Amounts waived - -
Balance outstanding at end of year 45,018 39,692

S Mares and Mrs A M Mares
Balance outstanding at start of year - -
Amounts advanced 620,488 313,335
Amounts repaid (620,488 ) (313,335 )
Amounts written off - -
Amounts waived - -
Balance outstanding at end of year - -

The directors advances are repayable on demand and no interest has been charged.
The amount advanced to Mr S Mares and Mrs A Mares represents the maximum outstanding before the dividend paid on 31 October 2023.

Trueline Expanded Products Ltd. (Registered number: 02907163)

Notes to the Financial Statements - continued
for the year ended 31 October 2023

22. RELATED PARTY DISCLOSURES

Entities with control, joint control or significant influence over the entity
2023 2022
£    £   
Sales 10,509 18,652
Purchases 315,000 338,500
Transfers (73,364 ) 304,388
Amount due from related party 1,994,804 2,068,168

The transactions above relate to entities controlled by the same individuals as who control Trueline Expanded Products Ltd.

Other related parties
2023 2022
£    £   
Transfers 17,919 (68,747 )
Amount due from related party 194,312 176,393