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Registration number: 04115504

MCP Engineering Plastics Limited

Annual Report and Unaudited Financial Statements

for the Year Ended 31 December 2023

 

MCP Engineering Plastics Limited

Contents

Company Information

1

Balance Sheet

2 to 3

Notes to the Unaudited Financial Statements

4 to 12

 

MCP Engineering Plastics Limited

Company Information

Directors

Mr Paul Lee

Fabio Massimo Saladini

Giovanni Dall'Olio

Mr Jason John Lee

Mr Benjamin James Lee

Mrs Lorraine M Lee

Registered office

Unit 27 Kingston Farm
Down Hall Road
Matching Green
Harlow
Essex
CM17 0RB

Accountants

Parry & Co Chartered Accountants
Suite 123 Waterhouse Business Centre
Cromar Way
Chelmsford
Essex
CM1 2QE

 

MCP Engineering Plastics Limited

(Registration number: 04115504)
Balance Sheet as at 31 December 2023

Note

2023
£

2022
£

Fixed assets

 

Tangible assets

4

590,036

482,983

Investments

5

52,000

52,000

 

642,036

534,983

Current assets

 

Stocks

6

1,290,622

992,706

Debtors

7

928,590

998,612

Cash at bank and in hand

 

111,785

30,954

 

2,330,997

2,022,272

Creditors: Amounts falling due within one year

8

(1,616,039)

(1,444,376)

Net current assets

 

714,958

577,896

Total assets less current liabilities

 

1,356,994

1,112,879

Creditors: Amounts falling due after more than one year

8

(136,431)

(72,700)

Provisions for liabilities

(58,762)

(36,130)

Net assets

 

1,161,801

1,004,049

Capital and reserves

 

Called up share capital

9

11,000

11,000

Other reserves

287,317

297,517

Retained earnings

863,484

695,532

Shareholders' funds

 

1,161,801

1,004,049

For the financial year ending 31 December 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476; and

The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime and the option not to file the Profit and Loss Account has been taken.

 

MCP Engineering Plastics Limited

(Registration number: 04115504)
Balance Sheet as at 31 December 2023

Approved and authorised by the Board on 19 March 2024 and signed on its behalf by:
 

.........................................
Mr Paul Lee
Director

 

MCP Engineering Plastics Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2023

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
Unit 27 Kingston Farm
Down Hall Road
Matching Green
Harlow
Essex
CM17 0RB

These financial statements were authorised for issue by the Board on 19 March 2024.

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A smaller entities - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006 (as applicable to companies subject to the small companies' regime).

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.

The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.

Foreign currency transactions and balances

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rate on the date when the fair value is re-measured.

Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.

 

MCP Engineering Plastics Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2023

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.

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

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Computer equipment

3 years straight line

Plant and machinery

3 years straight line

Motor vehicles

5 years straight line

Fixtures and fittings

8 years straight line

Improvements to leasehold premises

3 years straight line

Business combinations

Business combinations are accounted for using the purchase method. The consideration for each acquisition is measured at the aggregate of the fair values at acquisition date of assets given, liabilities incurred or assumed, and equity instruments issued by the group in exchange for control of the acquired, plus any costs directly attributable to the business combination. When a business combination agreement provides for an adjustment to the cost of the combination contingent on future events, the group includes the estimated amount of that adjustment in the cost of the combination at the acquisition date if the adjustment is probable and can be measured reliably.

 

MCP Engineering Plastics Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2023

Investments

Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.


Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.

The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Borrowings

 

MCP Engineering Plastics Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2023

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Leases

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

Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the balance sheet as a finance lease obligation.

Lease payments are apportioned between finance costs in the profit and loss account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Dividends

Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

3

Staff numbers

The average number of persons employed by the company (including directors) during the year, was 17 (2022 - 14).

 

MCP Engineering Plastics Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2023

4

Tangible assets

Short leasehold land and buildings
£

Plant and machinery
£

Total
£

Cost or valuation

At 1 January 2023

107,659

1,342,270

1,449,929

Additions

-

326,330

326,330

Disposals

-

(114,499)

(114,499)

At 31 December 2023

107,659

1,554,101

1,661,760

Depreciation

At 1 January 2023

60,728

906,218

966,946

Charge for the year

9,233

108,178

117,411

Eliminated on disposal

-

(12,633)

(12,633)

At 31 December 2023

69,961

1,001,763

1,071,724

Carrying amount

At 31 December 2023

37,698

552,338

590,036

At 31 December 2022

46,931

436,052

482,983

Included within the net book value of land and buildings above is £37,698 (2022 - £46,931) in respect of short leasehold land and buildings.
 

5

Investments

2023
£

2022
£

Investments in subsidiaries

52,000

52,000

Subsidiaries

£

Cost or valuation

At 1 January 2023

52,000

Provision

Carrying amount

At 31 December 2023

52,000

At 31 December 2022

52,000

 

MCP Engineering Plastics Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2023

6

Stocks

2023
£

2022
£

Other inventories

1,290,622

992,706

7

Debtors

Current

Note

2023
£

2022
£

Trade debtors

 

653,354

724,834

Amounts owed by related parties

12

254,261

254,598

Prepayments

 

14,550

14,550

Other debtors

 

6,425

4,630

   

928,590

998,612

 

MCP Engineering Plastics Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2023

8

Creditors

Creditors: amounts falling due within one year

Note

2023
£

2022
£

Due within one year

 

Loans and borrowings

10

330,689

147,908

Trade creditors

 

382,008

244,866

Amounts owed to group undertakings and undertakings in which the company has a participating interest

12

399,002

665,007

Taxation and social security

 

230,605

198,399

Other creditors

 

273,735

188,196

 

1,616,039

1,444,376

Creditors: amounts falling due after more than one year

Note

2023
£

2022
£

Due after one year

 

Loans and borrowings

10

136,431

72,700

9

Share capital

Allotted, called up and fully paid shares

 

2023

2022

 

No.

£

No.

£

Ordinary shares of £1 each

10,000

10,000

10,000

10,000

A shares of £1 each

650

650

650

650

B shares of £1 each

50

50

50

50

C shares of £1 each

50

50

50

50

D shares of £1 each

250

250

250

250

 

11,000

11,000

11,000

11,000

 

MCP Engineering Plastics Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2023

10

Loans and borrowings

2023
£

2022
£

Non-current loans and borrowings

Hire purchase contracts

136,431

72,700

2023
£

2022
£

Current loans and borrowings

Bank borrowings

-

95,000

Bank overdrafts

271,042

-

Hire purchase contracts

59,647

52,908

330,689

147,908

11

Dividends

Final dividends paid

   

2023
£

 

2022
£

Final dividend of £388.06 (2022 - £209.90) per each Ordinary shares

 

388,062

 

209,904

         

12

Related party transactions

All related party transactions were at full market value.

 

MCP Engineering Plastics Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2023

Directors' remuneration

The directors' remuneration for the year was as follows:

2023
£

2022
£

Remuneration

66,430

62,750