REGISTERED NUMBER: |
Strategic Report, Report of the Directors and |
Financial Statements for the Year Ended 31 October 2023 |
for |
Trueline Expanded Products Ltd. |
REGISTERED NUMBER: |
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: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
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: |
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. |
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: |
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. |
for and on behalf of |
Chartered Accountants |
Statutory Auditor |
Meryll House |
57 Worcester Road |
Bromsgrove |
Worcestershire |
B61 7DN |
Trueline Expanded Products Ltd. (Registered number: 02907163) |
Income Statement |
for the year ended 31 October 2023 |
2023 | 2022 |
Notes | £ | £ |
TURNOVER |
Cost of sales | ( |
) | ( |
) |
GROSS PROFIT |
Administrative expenses | ( |
) | ( |
) |
2,518,684 | 1,172,124 |
Other operating income | 3 |
OPERATING PROFIT | 5 |
Interest receivable and similar income |
2,535,148 | 1,187,884 |
Interest payable and similar expenses | 6 | ( |
) | ( |
) |
PROFIT BEFORE TAXATION |
Tax on profit | 7 | ( |
) | ( |
) |
PROFIT FOR THE FINANCIAL YEAR |
Trueline Expanded Products Ltd. (Registered number: 02907163) |
Other Comprehensive Income |
for the year ended 31 October 2023 |
2023 | 2022 |
Notes | £ | £ |
PROFIT FOR THE YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
Trueline Expanded Products Ltd. (Registered number: 02907163) |
Balance Sheet |
31 October 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 9 |
CURRENT ASSETS |
Stocks | 10 |
Debtors: amounts falling due within one year |
11 |
Debtors: amounts falling due after more than one year |
11 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 12 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
13 |
( |
) |
( |
) |
PROVISIONS FOR LIABILITIES | 18 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 19 |
Revaluation reserve | 20 |
Retained earnings | 20 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
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 |
Changes in equity |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - |
Balance at 31 October 2022 |
Changes in equity |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - | ( |
) |
Balance at 31 October 2023 |
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 |
Interest paid | ( |
) | ( |
) |
Interest element of hire purchase payments paid |
( |
) |
( |
) |
Tax paid | ( |
) |
Net cash from operating activities |
Cash flows from investing activities |
Purchase of tangible fixed assets | ( |
) | ( |
) |
Sale of tangible fixed assets |
Interest received |
Net cash from investing activities | ( |
) |
Cash flows from financing activities |
Loan repayments in year | ( |
) | ( |
) |
Capital repayments in year | ( |
) | ( |
) |
Amount introduced by directors | - | 56,159 |
Amount withdrawn by directors | (5,502 | ) | - |
Equity dividends paid | ( |
) | ( |
) |
Net cash from financing activities | ( |
) | ( |
) |
Increase/(decrease) in cash and cash equivalents | ( |
) |
Cash and cash equivalents at beginning of year |
2 |
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 |
Depreciation charges |
(Profit)/loss on disposal of fixed assets | ( |
) |
Finance costs | 79,483 | 55,161 |
Finance income | (4,310 | ) | (876 | ) |
2,859,731 | 1,537,479 |
Increase in stocks | ( |
) | ( |
) |
Increase in trade and other debtors | ( |
) | ( |
) |
Decrease in trade and other creditors | ( |
) | ( |
) |
Cash generated from operations |
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 | 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 |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
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 |
Long leasehold | - |
Plant and machinery | - |
Fixtures and fittings | - |
Motor vehicles | - |
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 |
Government grants |
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 |
Social security costs |
Other pension costs |
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 |
2023 | 2022 |
£ | £ |
Directors' remuneration |
Directors' pension contributions to money purchase schemes |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes |
5. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
2023 | 2022 |
£ | £ |
Hire of plant and machinery |
Depreciation - owned assets |
Depreciation - assets on hire purchase contracts |
(Profit)/loss on disposal of fixed assets | ( |
) |
Auditors' remuneration |
Foreign exchange differences |
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2023 | 2022 |
£ | £ |
Bank interest |
Bank loan interest |
Interest on overdue taxation |
Hire purchase |
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 |
Prior year tax adjustment | - | (77,203 | ) |
Total current tax | ( |
) |
Deferred tax | ( |
) |
Tax on profit |
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 |
Profit multiplied by the standard rate of corporation tax in the UK of |
Effects of: |
Expenses not deductible for tax purposes |
Adjustments to tax charge in respect of previous periods | ( |
) |
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 |
9. | TANGIBLE FIXED ASSETS |
Fixtures |
Long | Plant and | and | Motor |
leasehold | machinery | fittings | vehicles | Totals |
£ | £ | £ | £ | £ |
COST OR VALUATION |
At 1 November 2022 |
Additions |
Disposals | ( |
) | ( |
) | ( |
) |
At 31 October 2023 |
DEPRECIATION |
At 1 November 2022 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) | ( |
) |
At 31 October 2023 |
NET BOOK VALUE |
At 31 October 2023 |
At 31 October 2022 |
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 |
Additions |
Disposals | ( |
) | ( |
) |
Transfer to ownership | - | (49,500 | ) | (49,500 | ) |
At 31 October 2023 |
DEPRECIATION |
At 1 November 2022 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) |
Transfer to ownership | - | (21,334 | ) | (21,334 | ) |
At 31 October 2023 |
NET BOOK VALUE |
At 31 October 2023 |
At 31 October 2022 |
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 |
Raw materials |
Work-in-progress |
11. | DEBTORS |
2023 | 2022 |
£ | £ |
Amounts falling due within one year: |
Trade debtors |
Other debtors |
Staff loan | 201,433 | 176,493 |
Directors' current accounts | 45,018 | 39,692 |
Tax |
S455 tax debtor | 78,073 | 70,228 |
Prepayments |
Amounts falling due after more than one year: |
Amounts owed from related |
party | 1,994,808 | 2,068,172 |
Aggregate amounts |
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) |
Hire purchase contracts (see note 15) |
Trade creditors |
Tax |
Social security and other taxes |
Pension account | 7,368 | 7,273 |
VAT | 333,713 | 174,194 |
Other creditors |
Credit card | 2,423 | - |
Wages control account | 706 | 1,635 |
Directors' current accounts | 489 | 665 |
Accrued expenses |
Deferred government grants |
13. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
2023 | 2022 |
£ | £ |
Bank loans (see note 14) |
Hire purchase contracts (see note 15) |
Amounts owed to related parties | 4 | 4 |
Deferred government grants |
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 |
Amounts falling due between one and two years: |
Bank loans - 1- 5 years |
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 |
Between one and five years |
In more than five years |
Non-cancellable | operating leases |
2023 | 2022 |
£ | £ |
Within one year |
Between one and five years |
In more than five years |
16. | SECURED DEBTS |
The following secured debts are included within creditors: |
2023 | 2022 |
£ | £ |
Bank loans |
Hire purchase contracts | 794,443 | 1,065,867 |
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 |
Deferred |
tax |
£ |
Balance at 1 November 2022 |
Provided during year | ( |
) |
Balance at 31 October 2023 |
19. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
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 | 4,344,571 |
Profit for the year |
Dividends | ( |
) | ( |
) |
Realised depreciation on valuation |
45,168 |
(45,168 |
) |
- |
At 31 October 2023 | 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 |
£ | £ |
Balance outstanding at start of year |
Amounts advanced |
Amounts repaid | ( |
) | ( |
) |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year |
Balance outstanding at start of year |
Amounts advanced |
Amounts repaid | ( |
) | ( |
) |
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 |
2023 | 2022 |
£ | £ |
Sales |
Purchases |
Transfers | (73,364 | ) | 304,388 |
Amount due from related party |
2023 | 2022 |
£ | £ |
Transfers | 17,919 | (68,747 | ) |
Amount due from related party |