Caseware UK (AP4) 2023.0.135 2023.0.135 2023-12-312023-12-312023-12-31falsefalsetrue2023-01-01false00false 01400365 2023-01-01 2023-12-31 01400365 2022-01-01 2022-12-31 01400365 2023-12-31 01400365 2022-12-31 01400365 2022-01-01 01400365 c:Director1 2023-01-01 2023-12-31 01400365 c:Director2 2023-01-01 2023-12-31 01400365 c:Director2 2023-12-31 01400365 c:Director3 2023-01-01 2023-12-31 01400365 c:RegisteredOffice 2023-01-01 2023-12-31 01400365 d:PlantMachinery 2023-01-01 2023-12-31 01400365 d:PlantMachinery 2023-12-31 01400365 d:PlantMachinery 2022-12-31 01400365 d:PlantMachinery d:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 01400365 d:PlantMachinery d:LeasedAssetsHeldAsLessee 2023-01-01 2023-12-31 01400365 d:MotorVehicles 2023-01-01 2023-12-31 01400365 d:MotorVehicles 2023-12-31 01400365 d:MotorVehicles 2022-12-31 01400365 d:MotorVehicles d:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 01400365 d:MotorVehicles d:LeasedAssetsHeldAsLessee 2023-01-01 2023-12-31 01400365 d:FurnitureFittings 2023-01-01 2023-12-31 01400365 d:FurnitureFittings 2023-12-31 01400365 d:FurnitureFittings 2022-12-31 01400365 d:FurnitureFittings d:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 01400365 d:FurnitureFittings d:LeasedAssetsHeldAsLessee 2023-01-01 2023-12-31 01400365 d:OfficeEquipment 2023-01-01 2023-12-31 01400365 d:ComputerEquipment 2023-01-01 2023-12-31 01400365 d:ComputerEquipment 2023-12-31 01400365 d:ComputerEquipment 2022-12-31 01400365 d:ComputerEquipment d:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 01400365 d:ComputerEquipment d:LeasedAssetsHeldAsLessee 2023-01-01 2023-12-31 01400365 d:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 01400365 d:LeasedAssetsHeldAsLessee 2023-01-01 2023-12-31 01400365 d:Goodwill 2023-01-01 2023-12-31 01400365 d:CurrentFinancialInstruments 2023-12-31 01400365 d:CurrentFinancialInstruments 2022-12-31 01400365 d:CurrentFinancialInstruments 1 2023-12-31 01400365 d:CurrentFinancialInstruments 1 2022-12-31 01400365 d:Non-currentFinancialInstruments 2023-12-31 01400365 d:Non-currentFinancialInstruments 2022-12-31 01400365 d:CurrentFinancialInstruments d:WithinOneYear 2023-12-31 01400365 d:CurrentFinancialInstruments d:WithinOneYear 2022-12-31 01400365 d:Non-currentFinancialInstruments d:AfterOneYear 2023-12-31 01400365 d:Non-currentFinancialInstruments d:AfterOneYear 2022-12-31 01400365 d:Non-currentFinancialInstruments d:BetweenTwoFiveYears 2023-12-31 01400365 d:Non-currentFinancialInstruments d:BetweenTwoFiveYears 2022-12-31 01400365 d:ShareCapital 2023-12-31 01400365 d:ShareCapital 2022-12-31 01400365 d:ShareCapital 2022-01-01 01400365 d:CapitalRedemptionReserve 2023-01-01 2023-12-31 01400365 d:CapitalRedemptionReserve 2023-12-31 01400365 d:CapitalRedemptionReserve 2022-12-31 01400365 d:CapitalRedemptionReserve 2022-01-01 01400365 d:RetainedEarningsAccumulatedLosses 2023-01-01 2023-12-31 01400365 d:RetainedEarningsAccumulatedLosses 2023-12-31 01400365 d:RetainedEarningsAccumulatedLosses 2022-01-01 2022-12-31 01400365 d:RetainedEarningsAccumulatedLosses 2022-12-31 01400365 d:RetainedEarningsAccumulatedLosses 2022-01-01 01400365 d:AcceleratedTaxDepreciationDeferredTax 2023-12-31 01400365 d:AcceleratedTaxDepreciationDeferredTax 2022-12-31 01400365 d:TaxLossesCarry-forwardsDeferredTax 2023-12-31 01400365 d:TaxLossesCarry-forwardsDeferredTax 2022-12-31 01400365 c:OrdinaryShareClass1 2023-01-01 2023-12-31 01400365 c:OrdinaryShareClass1 2023-12-31 01400365 c:OrdinaryShareClass1 2022-12-31 01400365 c:OrdinaryShareClass2 2023-01-01 2023-12-31 01400365 c:OrdinaryShareClass2 2023-12-31 01400365 c:OrdinaryShareClass2 2022-12-31 01400365 c:FRS102 2023-01-01 2023-12-31 01400365 c:Audited 2023-01-01 2023-12-31 01400365 c:FullAccounts 2023-01-01 2023-12-31 01400365 c:PrivateLimitedCompanyLtd 2023-01-01 2023-12-31 01400365 d:Subsidiary1 2023-01-01 2023-12-31 01400365 d:Subsidiary1 1 2023-01-01 2023-12-31 01400365 d:Subsidiary2 2023-01-01 2023-12-31 01400365 d:Subsidiary2 1 2023-01-01 2023-12-31 01400365 d:WithinOneYear 2023-12-31 01400365 d:WithinOneYear 2022-12-31 01400365 d:BetweenOneFiveYears 2023-12-31 01400365 d:BetweenOneFiveYears 2022-12-31 01400365 d:MoreThanFiveYears 2023-12-31 01400365 d:MoreThanFiveYears 2022-12-31 01400365 d:HirePurchaseContracts d:WithinOneYear 2023-12-31 01400365 d:HirePurchaseContracts d:WithinOneYear 2022-12-31 01400365 d:HirePurchaseContracts d:BetweenOneFiveYears 2023-12-31 01400365 d:HirePurchaseContracts d:BetweenOneFiveYears 2022-12-31 01400365 c:Consolidated 2023-12-31 01400365 c:ConsolidatedGroupCompanyAccounts 2023-01-01 2023-12-31 01400365 2 2023-01-01 2023-12-31 01400365 6 2023-01-01 2023-12-31 01400365 3 2023-12-31 01400365 3 2022-12-31 01400365 f:PoundSterling 2023-01-01 2023-12-31 iso4217:GBP xbrli:shares xbrli:pure

Registered number: 01400365
















SANSETSU UK LIMITED




ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023


































img0d1d.png


SANSETSU UK LIMITED

 
COMPANY INFORMATION


Directors
Akio Hayakawa 
Tomoori Ito (appointed 1 March 2023)
Shingo Umeda 




Registered number
01400365



Registered office
Akira House 16-17 Brunleys
Kiln Farm

Milton Keynes

MK11 3EW




Independent auditors
Bishop Fleming LLP
Chartered Accountants & Statutory Auditors

1-3 College Yard

Worcester

WR1 2LB






SANSETSU UK LIMITED


CONTENTS



Page
Group strategic report
1 - 2
Directors' report
3 - 4
Independent auditors' report
5 - 8
Consolidated statement of comprehensive income
9
Consolidated statement of financial position
10
Company statement of financial position
11
Consolidated statement of changes in equity
12
Company statement of changes in equity
13
Consolidated statement of cash flows
14
Consolidated analysis of net debt
15
Notes to the financial statements
16 - 38



SANSETSU UK LIMITED

 
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

Introduction
 
The directors present their strategic report of the company and the group for the year ended 31 December 2023.

Review of business
 
The packaging market remained at the low levels of 2022. Competitive pressures increased through the year which were responded to on appropriate products and customers.
Turnover remained static in the year to £15,767,452 (2022: £16,129,667). The profit of £361,955 (2022 loss: £157,870) is the result of cost control activities in the year. The price of PE granules declined against 2022 as did some other materials however increases in higher energy costs reflected through into heavy energy users such as paper and foil. The increases in the minimum wage continues to put pressure on labour costs.
The balance sheet results for the year ending 31 December 2023 are as follows:


2023
2022
Net current assets
1,082,177
839,427
Net assets
2,635,979
2,274,024


Principal risks and uncertainties
 
The two main principal risks and uncertainties facing the business continue to be competition in the market place and fluctuations in the prices of oil. The sales team constantly monitors competitor activity and knows the market place well enough to be aware of new competitors emerging. Oil prices are constantly monitored, and the impact on our margins. A strategy is in place to deal with any movements beyond acceptable limits. We continue to monitor, liquidity and credit risk and interest rate risk.

Subsequent events
 
There have been no subsequent events affecting the company since the year end.

Future developments
 
The company intends to continue its present management policies for the foreseeable future and will continue to seek to grow the business through organic growth and acquisition of new businesses.

Research & development
 
The Company has continued its work on increasing recycled content within the products with the introduction of the plastic packaging tax in 2023. Increasing the recycled content of our products remains a major focus of the Company and our development and investments will be targeted to achieve this objective. The directors are optimistic that this will secure our market position as a leading supplier of packaging solutions.

Going concern

Sansetsu has facilities in place to provide working capital support as well as strong relationships with asset backed finance providers. The major shareholders remain committed to supporting the long-term finance needs of the Company. The directors believe the Company has access to finance sufficient to meet it's short- and medium-term requirements.

Page 1


SANSETSU UK LIMITED


GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023


This report was approved by the board and signed on its behalf.



Akio Hayakawa
Director

Date: 29 July 2024

Page 2


SANSETSU UK LIMITED

 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

The directors present their report and the financial statements for the year ended 31 December 2023.

Directors' responsibilities statement

The directors are responsible for preparing the Group strategic report, the Directors' report and the consolidated 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 the Group and of the profit or loss of the Group for that period.

 In preparing these financial statements, the directors are required to:


select suitable accounting policies for the Group's financial statements and then apply them consistently;

make judgments 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 Group will continue in business.

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 the Group and to enable them to ensure that the financial statements comply with the Companies Act 2006They are also responsible for safeguarding the assets of the Company and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Principal activity

The group continues to be active in its two main lines, namely Sancell Bubble Wrap and Featherpost Bubble Lined Mailers, along with the subsidiary being haulage contractors.

Results and dividends

The profit for the year, after taxation, amounted to £361,955 (2022: loss £157,870).

No dividends were paid in the year ended 31 December 2023 (2022: £Nil).

Directors

The directors who served during the year were:

Akio Hayakawa 
Tomoori Ito (appointed 1 March 2023)
Shingo Umeda 

Future developments

The company intends to continue its present management policies for the foreseeable future and will continue to seek to grow the business through organic growth and acquisition of new businesses.

Financial instruments

The company has not entered into a commitment on any financial instruments during the year.

Page 3


SANSETSU UK LIMITED
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
Research and development activities

Increasing the recycled content of our products is a major focus of the Company and our development and investments will be targeted to achieve this objective. The directors are optimistic that this will secure our market position as a leading supplier of packaging solutions.

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company and the Group's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company and the Group's auditors are aware of that information.

Auditors

The auditorsBishop Fleming LLPwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board and signed on its behalf.
 






Akio Hayakawa
Director

Date: 29 July 2024

Akira House 16-17 Brunleys
Kiln Farm
Milton Keynes
MK11 3EW

Page 4



 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SANSETSU UK LIMITED
Opinion


We have audited the financial statements of Sansetsu UK Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 December 2023, which comprise the Consolidated statement of comprehensive income, the Consolidated Statement of Financial Position, the Company Statement of Financial Position, the Consolidated Statement of Cash Flows, the Consolidated Statement of Changes in Equity, the Company Statement of Changes in Equity and the related notes, including a summary of significant accounting policiesThe 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 Group's and of the parent Company's affairs as at 31 December 2023 and of the Group's 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 Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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 Group's or the parent Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.


Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.


Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' report thereon. The directors are responsible for the other information contained within the Annual ReportOur opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.


We have nothing to report in this regard.


Page 5


SANSETSU UK LIMITED
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SANSETSU UK LIMITED (CONTINUED)

Opinion 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 Group strategic report and the Directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Group strategic report and the Directors' report 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 Group and the parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group strategic report or the Directors' report.


We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:


adequate accounting records have not been kept by the parent Company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent Company 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 Directors' responsibilities statement set out on page 3, 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 is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.


In preparing the financial statements, the directors are responsible for assessing the Group's and the parent Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Group or the parent Company or to cease operations, or have no realistic alternative but to do so.


Page 6


SANSETSU UK LIMITED
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SANSETSU UK LIMITED (CONTINUED)

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 an Auditors' report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these Group financial statements.


Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following:
the nature of the industry and sector, control environment and business performance;
results of our enquiries of management and the board about their own identifcation and assessment of the risks of irregularities;
any matters we have identifed having obtained and reviewed the company's documentation of their policies and procedures relating to:
°identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance;
°detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud;
°the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations;
the matters discussed among the audit engagement teams regarding how and where fraud might occur in the financial statements and any potential indicators of fraud.

As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas:
Revenue recognition; and
Accounting estimates.

In common with all audits under ISAs (UK), we are also required to specific procedures to respond to the risk of management override.

We also obtained an understanding of the legal and regulatory frameworks that the company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the Companies Act 2006 and tax legislation.

In addition, we have considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the company's ability to operate to avoid a material penalty. These include data protection regulation, health and safety regulations and employment legislation.

Audit response to risks identified

As a result of performing the above procedures, we have identified revenue recognition and accounting estimates as key audit matters related to the potential risk of fraud. Our procedures to respond to risks identified included the following:

Documenting and validating the control environment for income and debtors and carrying out walkthrough testing;
Undertaking substantive sample-based testing or proof in total calculations on all material revenue streams to ensure revenue has been recognised appropriately and accurately;
Considering manual income journals as part of our work on fraud risks documented above;
Page 7


SANSETSU UK LIMITED
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SANSETSU UK LIMITED (CONTINUED)

Reviewing the financial statement disclosures and testing to supporting documentation;
Enquiring of management concerning actual and potential litigation claims;
Performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement;
Reading minutes of meetings of those charged with governance and reviewing correspondence with HMRC; and
In addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

We also communicated relevant laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.


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 Auditors' report.


Use of our report
 

This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an Auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.






Gary Woodhall ACA (Senior statutory auditor)
for and on behalf of
Bishop Fleming LLP
Chartered Accountants
Statutory Auditors
1-3 College Yard
Worcester
WR1 2LB

30 July 2024
Page 8


SANSETSU UK LIMITED

 
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
Note
£
£

  

Turnover
 4 
15,767,452
16,129,667

Cost of sales
  
(13,252,255)
(13,315,336)

Gross profit
  
2,515,197
2,814,331

Distribution costs
  
(141,015)
(1,309,389)

Administrative expenses
  
(1,794,347)
(1,479,694)

Operating profit
 5 
579,835
25,248

Interest receivable and similar income
  
173
16

Interest payable and similar expenses
 9 
(152,519)
(104,497)

Profit/(loss) before taxation
  
427,489
(79,233)

Tax on profit/(loss)
 10 
(65,534)
(78,637)

Profit/(loss) for the financial year
  
361,955
(157,870)

  

Total comprehensive income for the year
  
361,955
(157,870)

Profit/(loss) for the year attributable to:
  

Owners of the parent Company
  
361,955
(157,870)

  
361,955
(157,870)

The notes on pages 16 to 38 form part of these financial statements.

Page 9


SANSETSU UK LIMITED
REGISTERED NUMBER:01400365

CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2023

2023
2022
Note
£
£

Fixed assets
  

Intangible assets
 11 
205,986
252,226

Tangible assets
 12 
2,290,877
1,859,454

Investments
 13 
12,000
12,000

  
2,508,863
2,123,680

Current assets
  

Stocks
 14 
686,742
1,036,476

Debtors: amounts falling due within one year
 15 
3,990,175
4,505,994

Cash at bank and in hand
  
309,902
146,928

  
4,986,819
5,689,398

Creditors: amounts falling due within one year
 16 
(3,904,642)
(4,849,971)

Net current assets
  
 
 
1,082,177
 
 
839,427

Total assets less current liabilities
  
3,591,040
2,963,107

Creditors: amounts falling due after more than one year
 17 
(574,158)
(373,714)

Provisions for liabilities
  

Deferred taxation
 20 
(380,903)
(315,369)

Net assets
  
2,635,979
2,274,024


Capital and reserves
  

Called up share capital 
 21 
1,412,132
1,412,132

Capital redemption reserve
 22 
77,000
77,000

Profit and loss account
 22 
1,146,847
784,892

Equity attributable to owners of the parent Company
  
2,635,979
2,274,024


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 



Akio Hayakawa
Director

Date: 29 July 2024

The notes on pages 16 to 38 form part of these financial statements.

Page 10


SANSETSU UK LIMITED
REGISTERED NUMBER:01400365

COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2023

2023
2022
Note
£
£

Fixed assets
  

Tangible assets
 12 
1,933,964
1,656,178

Investments
 13 
901,432
901,432

  
2,835,396
2,557,610

Current assets
  

Stocks
 14 
686,742
1,036,476

Debtors: amounts falling due within one year
 15 
3,320,656
3,760,121

Cash at bank and in hand
  
167,280
60,518

  
4,174,678
4,857,115

Creditors: amounts falling due within one year
 16 
(3,592,661)
(4,519,149)

Net current assets
  
 
 
582,017
 
 
337,966

Total assets less current liabilities
  
3,417,413
2,895,576

  

Creditors: amounts falling due after more than one year
 17 
(443,235)
(368,414)

Provisions for liabilities
  

Deferred taxation
 20 
(350,484)
(264,641)

Net assets
  
2,623,694
2,262,521


Capital and reserves
  

Called up share capital 
 21 
1,412,132
1,412,132

Capital redemption reserve
 22 
77,000
77,000

Profit and loss account brought forward
  
773,389
877,834

Profit/(loss) for the year

  

361,173
(104,445)

Profit and loss account carried forward
  
1,134,562
773,389

  
2,623,694
2,262,521


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 



Akio Hayakawa
Director

Date: 29 July 2024

The notes on pages 16 to 38 form part of these financial statements.

Page 11


SANSETSU UK LIMITED


CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023


Called up share capital
Capital redemption reserve
Profit and loss account
Equity attributable to owners of parent Company
Total equity

£
£
£
£
£


At 1 January 2022
1,412,132
77,000
942,762
2,431,894
2,431,894


Comprehensive income for the year

Loss for the year
-
-
(157,870)
(157,870)
(157,870)
Total comprehensive income for the year
-
-
(157,870)
(157,870)
(157,870)



At 1 January 2023
1,412,132
77,000
784,892
2,274,024
2,274,024


Comprehensive income for the year

Profit for the year
-
-
361,955
361,955
361,955
Total comprehensive income for the year
-
-
361,955
361,955
361,955


At 31 December 2023
1,412,132
77,000
1,146,847
2,635,979
2,635,979


The notes on pages 16 to 38 form part of these financial statements.

Page 12


SANSETSU UK LIMITED


COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023


Called up share capital
Capital redemption reserve
Profit and loss account
Total equity

£
£
£
£


At 1 January 2022
1,412,132
77,000
877,834
2,366,966


Comprehensive income for the year

Loss for the year
-
-
(104,445)
(104,445)



At 1 January 2023
1,412,132
77,000
773,389
2,262,521


Comprehensive income for the year

Profit for the year
-
-
361,173
361,173


At 31 December 2023
1,412,132
77,000
1,134,562
2,623,694


The notes on pages 16 to 38 form part of these financial statements.

Page 13


SANSETSU UK LIMITED


CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
£
£

Cash flows from operating activities

Profit/(loss) for the financial year
361,955
(157,870)

Adjustments for:

Amortisation of intangible assets
46,240
46,240

Depreciation of tangible assets
411,831
403,760

Loss on disposal of tangible assets
8,980
(53,260)

Interest paid
152,519
104,497

Interest received
(173)
(16)

Taxation charge
65,534
78,637

Decrease/(increase) in stocks
349,734
(157,984)

Decrease in debtors
504,871
355,056

(Decrease) in creditors
(13,574)
(385,652)

Increase in provisions
65,534
-

Corporation tax received
-
13,273

Foreign exchange
(54,586)
-

Net cash generated from operating activities
1,898,865
246,681


Cash flows from investing activities

Purchase of tangible fixed assets
(307,258)
(380,782)

Sale of tangible assets
51,200
142,341

Interest received
173
16

HP interest paid
(22,321)
(18,061)

Net cash from investing activities
(278,206)
(256,486)

Cash flows from financing activities

Repayment of loans
(115,317)
(115,317)

Repayment of finance leases
(223,086)
(253,787)

Movements on invoice discounting
(989,084)
-

Interest paid
(130,198)
(86,436)

Net cash used in financing activities
(1,457,685)
(455,540)

Net increase/(decrease) in cash and cash equivalents
162,974
(465,345)

Cash and cash equivalents at beginning of year
146,928
612,273

Cash and cash equivalents at the end of year
309,902
146,928


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
309,902
146,928


The notes on pages 16 to 38 form part of these financial statements.

Page 14


SANSETSU UK LIMITED


CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 DECEMBER 2023





At 1 January 2023
Cash flows
New finance leases
At 31 December 2023
£

£

£

£

Cash at bank and in hand

146,928

162,974

-

309,902

Debt due after 1 year

(172,976)

115,317

-

(57,659)

Debt due within 1 year

(127,092)

(2,266)

-

(129,358)

Finance leases

(392,486)

223,086

(596,176)

(765,576)



(545,626)
499,111
(596,176)
(642,691)

The notes on pages 16 to 38 form part of these financial statements.

Page 15


SANSETSU UK LIMITED

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

1.


General information

Sansetsu UK Limited 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

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgment in applying the Group's accounting policies (see note 3).

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of comprehensive income in these financial statements.

The following principal accounting policies have been applied:

 
2.2

Basis of consolidation

The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Statement of financial position, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated statement of comprehensive income from the date on which control is obtained. They are deconsolidated from the date control ceases.
In accordance with the transitional exemption available in FRS 102, the Group has chosen not to retrospectively apply the standard to business combinations that occurred before the date of transition to FRS 102, being 01 January 2015.

 
2.3

Going concern

The directors have reviewed the current trading environment and the resources available to the company in relation to their assessment of going concern and in their opinion have taken reasonable steps to mitigate any issues arising. As at the point of authorising the accounts, and for the foreseeable future, the directors consider the going concern assumption as appropriate. The directors acknowledge that given the current rapidly changing business environment, there are likely to be significant unknown factors that may present themselves. Such factors are considered by the directors to represent a general inherent level of risk in relation to the going concern assumption  albeit not quantifiable at this time.

Page 16


SANSETSU UK LIMITED

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.4

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Consolidated statement of comprehensive income within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.

On consolidation, the results of overseas operations are translated into Sterling at rates approximating to those ruling when the transactions took place. All assets and liabilities of overseas operations are translated at the rate ruling at the reporting date. Exchange differences arising on translating the opening net assets at opening rate and the results of overseas operations at actual rate are recognised in other comprehensive income.

 
2.5

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
the Group has transferred the significant risks and rewards of ownership to the buyer;
the Group retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of revenue can be measured reliably;
it is probable that the Group will receive the consideration due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Page 17


SANSETSU UK LIMITED

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.6

Operating leases: the Group as lessee

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

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

 
2.7

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
2.8

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.9

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

 
2.10

Pensions

Defined Contribution Pension Plan

The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of financial position. The assets of the plan are held separately from the Group in independently administered funds.

Page 18


SANSETSU UK LIMITED

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.11

Current and deferred taxation

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

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 and the Group operate and generate income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits;
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met; and
Where they relate to timing differences in respect of interests in subsidiaries, associates, branches and joint ventures and the Group can control the reversal of the timing differences and such reversal is not considered probable in the foreseeable future.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

 
2.12

Intangible assets

Goodwill

Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of the Group's share of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight-line basis to the Consolidated statement of comprehensive income over its useful economic life.

Other Intangible Assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

 
2.13

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Page 19


SANSETSU UK LIMITED

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)


2.13
Tangible fixed assets (CONTINUED)

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Plant and machinery
-
5 to 15 years
Motor vehicles
-
5 years
Fixtures and fittings
-
10 years
Office equipment
-
3 to 5 years
Computer equipment
-
3 to 5 years

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.14

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

Investments in unlisted Group shares, whose market value can be reliably determined, are remeasured to market value at each reporting date. Gains and losses on remeasurement are recognised in the Consolidated statement of comprehensive income for the period. Where market value cannot be reliably determined, such investments are stated at historic cost less impairment.

Investments in listed company shares are remeasured to market value at each reporting date. Gains and losses on remeasurement are recognised in profit or loss for the period.

 
2.15

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a weighted average basis. Work in progress and finished goods include labour and attributable overheads.

At each reporting date, stocks are assessed for impairment. If stock is 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.

 
2.16

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

Page 20


SANSETSU UK LIMITED

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.17

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Consolidated statement of cash flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Group's cash management.

 
2.18

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
2.19

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
 
Increases in provisions are generally charged as an expense to profit or loss.

 
2.20

Financial instruments

The Group has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the Group's Statement of financial position when the Group becomes party to the contractual provisions of the instrument.

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

Basic financial assets

Basic financial assets, which include trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

Discounting is omitted where the effect of discounting is immaterial. The Group's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.

Financial liabilities

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

Page 21


SANSETSU UK LIMITED

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)


2.20
Financial instruments (CONTINUED)

Basic financial liabilities, which include trade and other payables, bank loans, other loans and loans due to fellow group companies are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial.

Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.

Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.


3.


Judgments in applying accounting policies and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
A deferred tax asset in respect of the future value of tax losses has been recognised in the financial statements on the basis of the assessment of future company profitability as supported by business plans and projections agreed by the directors. The directors are satisfied that there is sufficient transparency of future revenues to support this position. The recoverability of any deferred tax asset is monitored, and will be assessed in future, against forecasts. The directors consider that the assessment of the forecasts represent a balanced assessment, including the residual impact of COVID 19, accepting that a degree of uncertainty remains.


4.


Turnover

The whole of the turnover is attributable to the one principal activity of the group. 

Analysis of turnover by country of destination:

2023
2022
£
£

United Kingdom
15,636,014
16,019,925

Rest of Europe
131,438
94,884

Rest of the world
-
14,858

15,767,452
16,129,667


Page 22


SANSETSU UK LIMITED

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

5.


Operating profit

The operating profit is stated after charging:

2023
2022
£
£

Hire of plant and machinery
36,833
48,096

Other operating leases
240,000
234,411

Depreciation - owned assets
266,977
270,154

Depreciation - assets on hire purchase contracts and finance leases
144,854
133,607

Profit on disposal of fixed assets
8,980
(53,260)

Goodwill amortisation
46,240
46,240

Auditors' remuneration
25,900
23,050

Foreign exchange differences
(54,586)
(59,883)


6.


Auditors' remuneration

During the year, the Group obtained the following services from the Company's auditors:


2023
2022
£
£

Fees payable to the Company's auditors for the audit of the consolidated and parent Company's financial statements
25,900
23,050

Page 23


SANSETSU UK LIMITED

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

7.


Employees

Staff costs, including directors' remuneration, were as follows:


Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£


Wages and salaries
3,553,197
3,395,435
2,567,385
2,405,012

Social security costs
336,080
356,290
239,718
249,004

Cost of defined contribution scheme
105,862
102,520
82,520
78,259

3,995,139
3,854,245
2,889,623
2,732,275


The average monthly number of employees, including the directors, during the year was as follows:


        2023
        2022
            No.
            No.







Production and drivers
72
80



Sales
3
3



Administration
16
8



Operations
8
8

99
99


8.


Directors' remuneration

2023
2022
£
£

Directors' emoluments
42,206
43,614

Group contributions to defined contribution pension schemes
1,688
4,032

43,894
47,646


During the year retirement benefits were accruing to 1 director (2022: 1) in respect of defined contribution pension schemes.

Page 24


SANSETSU UK LIMITED

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

9.


Interest payable and similar expenses

2023
2022
£
£


Bank interest payable
4,461
9,043

Other loan interest payable
-
24

Finance leases and hire purchase contracts
22,321
18,061

Other interest payable
125,737
77,369

152,519
104,497


10.


Taxation


2023
2022
£
£

CORPORATION TAX


Current tax on profits for the year
-
-

Adjustments in respect of previous periods
-
(19,083)


TOTAL CURRENT TAX
-
(19,083)

DEFERRED TAX


Origination and reversal of timing differences
96,726
97,720

Losses and other deductions
(31,192)
-

TOTAL DEFERRED TAX
65,534
97,720


TOTAL TAX CHARGE FOR THE YEAR
65,534
78,637
Page 25


SANSETSU UK LIMITED

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
 
10.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is higher than (2022: the same as) the standard rate of corporation tax in the UK of 23.52% (2022: 19%). The differences are explained below:

2023
2022
£
£


Profit/(loss) on ordinary activities before tax
427,489
(79,233)


Profit/(loss) on ordinary activities multiplied by standard rate of corporation tax in the UK of 23.52% (2022: 19%)
100,545
(15,054)

EFFECTS OF:


Expenses not deductible for tax purposes
3,614
88,217

Fixed asset differences
(7,896)
(16,262)

Non-taxable income less expenses not deductible for tax purposes, other than goodwill and impairment
(78)
-

Movement in deferred tax not recognised
(48,461)
118,235

Remeasurement of deferred tax for changes in tax rates
7,015
(6,469)

Other adjustments leading to an increase/(decrease) in the tax charge
10,795
(90,030)

TOTAL TAX CHARGE FOR THE YEAR
65,534
78,637

The above analysis has changed from the prior year, with comparative figures reclassified.


Factors that may affect future tax charges

There were no factors that may affect future tax charges.



Page 26


SANSETSU UK LIMITED

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

11.


Intangible assets

Group and Company





Goodwill

£



COST


At 1 January 2023
462,394



At 31 December 2023

462,394



AMORTISATION


At 1 January 2023
210,168


Charge for the year
46,240



At 31 December 2023

256,408



NET BOOK VALUE



At 31 December 2023
205,986



At 31 December 2022
252,226



Page 27


SANSETSU UK LIMITED

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

12.


Tangible fixed assets

Group






Plant and machinery
Motor vehicles
Fixtures and fittings
Office equipment
Computer equipment
Total

£
£
£
£
£
£



COST


At 1 January 2023
7,022,209
735,803
410,786
3,044
181,410
8,353,252


Additions
602,099
255,320
46,015
-
-
903,434


Disposals
(460,101)
(311,000)
-
(1,166)
(25,138)
(797,405)



At 31 December 2023

7,164,207
680,123
456,801
1,878
156,272
8,459,281



DEPRECIATION


At 1 January 2023
5,716,744
417,939
282,263
1,842
75,010
6,493,798


Charge for the year on owned assets
125,189
75,295
43,512
446
22,535
266,977


Charge for the year on financed assets
98,304
46,550
-
-
-
144,854


Disposals
(460,101)
(250,820)
-
(1,166)
(25,138)
(737,225)



At 31 December 2023

5,480,136
288,964
325,775
1,122
72,407
6,168,404



NET BOOK VALUE



At 31 December 2023
1,684,071
391,159
131,026
756
83,865
2,290,877



At 31 December 2022
1,305,465
317,864
128,523
1,202
106,400
1,859,454

The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:


2023
2022
£
£



Plant and machinery
783,832
448,916

Motor vehicles
257,336
99,291

1,041,168
548,207

Page 28


SANSETSU UK LIMITED

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

           12.Tangible fixed assets (continued)


Company






Plant and machinery
Motor vehicles
Fixtures and fittings
Computer equipment
Total

£
£
£
£
£

COST


At 1 January 2023
7,017,202
299,020
401,989
181,410
7,899,621


Additions
602,099
-
46,015
-
648,114


Disposals
(460,101)
(86,000)
-
(25,138)
(571,239)



At 31 December 2023

7,159,200
213,020
448,004
156,272
7,976,496



DEPRECIATION


At 1 January 2023
5,712,067
177,614
278,752
75,010
6,243,443


Charge for the year on owned assets
124,928
39,015
41,753
22,535
228,231


Charge for the year on financed assets
98,304
21,480
-
-
119,784


Disposals
(460,101)
(63,687)
-
(25,138)
(548,926)



At 31 December 2023

5,475,198
174,422
320,505
72,407
6,042,532



NET BOOK VALUE



At 31 December 2023
1,684,002
38,598
127,499
83,865
1,933,964



At 31 December 2022
1,305,135
121,406
123,237
106,400
1,656,178






The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:


2023
2022
£
£



Plant and machinery
783,832
448,916

Motor vehicles
15,027
42,778

798,859
491,694

Page 29


SANSETSU UK LIMITED

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

13.


Fixed asset investments

Group





Unlisted investments

£



COST


At 1 January 2023
29,000



At 31 December 2023

29,000



IMPAIRMENT


At 1 January 2023
17,000



At 31 December 2023

17,000



NET BOOK VALUE



At 31 December 2023
12,000



At 31 December 2022
12,000

Unlisted investments relates to a timeshare property held in Portugal.

Page 30


SANSETSU UK LIMITED

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
Company





Investments in subsidiary companies
Unlisted investments
Total

£
£
£



COST OR VALUATION


At 1 January 2023
889,432
29,000
918,432



At 31 December 2023

889,432
29,000
918,432



IMPAIRMENT


At 1 January 2023
-
17,000
17,000



At 31 December 2023

-
17,000
17,000



NET BOOK VALUE



At 31 December 2023
889,432
12,000
901,432



At 31 December 2022
889,432
12,000
901,432


Subsidiary undertakings


The following were subsidiary undertakings of the Company:

Name

Registered office

Principal activity

Class of shares

Holding

Featherpost Limited
Akira House, 16-17 Brunleys, Kiln Farm, Milton Keynes, MK11 3EW
Dormant
Ordinary
100%
Truckwright Limited
16 Geddington Road, Corby, Northamptonshire, NN18 8ET
Haulage
Ordinary
100%

Page 31


SANSETSU UK LIMITED

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

14.


Stocks

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Raw materials
557,498
944,254
557,498
944,254

Finished goods
129,244
92,222
129,244
92,222

686,742
1,036,476
686,742
1,036,476


The difference between purchase price or production cost of stocks and their replacement cost is not material.


15.


Debtors

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£


Trade debtors
3,355,737
3,829,741
2,836,439
3,278,269

Amounts owed by group undertakings
-
-
63,732
-

Other debtors
84,749
172,234
8,325
105,080

Deferred tax asset
312,260
312,260
312,260
312,260

Prepayments and accrued income
237,429
191,759
99,900
64,512

3,990,175
4,505,994
3,320,656
3,760,121


Page 32


SANSETSU UK LIMITED

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

16.


Creditors: Amounts falling due within one year

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Bank loans
115,317
115,317
115,317
115,317

Other loans
10,800
10,800
10,800
10,800

Obligations under finance lease and hire purchase contracts
249,077
191,748
213,343
161,632

Trade creditors
1,506,642
1,664,479
1,215,210
1,436,920

Amounts owed to group undertakings
-
-
242,050
162,812

Other taxation and social security
293,729
311,427
215,083
251,259

Proceeds of factored debts
1,215,741
2,204,825
1,131,938
2,079,673

Other creditors
23,837
4,378
20,846
3,292

Accruals and deferred income
489,499
346,997
428,074
297,444

3,904,642
4,849,971
3,592,661
4,519,149



The following liabilities were secured:
Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Bank loans
115,317
115,317
115,317
115,317

Net obligations under finance leases and hire purchase contracts
249,077
191,748
213,343
161,632

Proceeds of factored debts
1,215,741
2,204,825
1,131,938
2,079,673

1,580,135
2,511,890
1,460,598
2,356,622

Details of security provided:

Invoice discounting balances due to HSBC Invoice Finance (UK) Ltd are secured on the trade debtors.
Hire purchase creditors are secured on the assets to which they relate.
The bank holds a debenture representing a fixed charge over all present freehold and leasehold property; First Fixed Charge over book and other debts, chattels, goodwill and uncalled capital, both present and future; and First Floating Charge over all assets.

Page 33


SANSETSU UK LIMITED

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

17.


Creditors: Amounts falling due after more than one year

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Bank loans
57,659
172,976
57,659
172,976

Net obligations under finance leases and hire purchase contracts
516,499
200,738
385,576
195,438

574,158
373,714
443,235
368,414



The following liabilities were secured:
Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£


Bank loans
57,659
172,976
57,659
172,976

Net obligations under finance leases and hire purchase contracts
516,499
200,738
385,576
195,438

574,158
373,714
443,235
368,414

Details of security provided:

Hire purchase creditors are secured on the assets to which they relate.
The bank holds a debenture representing a fixed charge over all present freehold and leasehold property; First Fixed Charge over book and other debts, chattels, goodwill and uncalled capital, both present and future; and First Floating Charge over all assets.



Page 34


SANSETSU UK LIMITED

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

18.


Loans


Analysis of the maturity of loans is given below:


Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

AMOUNTS FALLING DUE WITHIN ONE YEAR

Bank loans
115,317
115,317
115,317
115,317

Other loans
10,800
10,800
10,800
10,800


126,117
126,117
126,117
126,117


AMOUNTS FALLING DUE 2-5 YEARS

Bank loans
57,659
172,976
57,659
172,976


57,659
172,976
57,659
172,976


183,776
299,093
183,776
299,093



19.


Hire purchase and finance leases


Minimum lease payments under hire purchase fall due as follows:

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Within one year
249,077
191,748
213,343
161,632

Between 1-5 years
516,499
200,738
385,576
195,438

765,576
392,486
598,919
357,070

Page 35


SANSETSU UK LIMITED

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

20.


Deferred taxation


Group



2023


£






At beginning of year
(315,369)


Charged to profit or loss
(65,534)



AT END OF YEAR
(380,903)

Company


2023


£






At beginning of year
(264,641)


Charged to profit or loss
(85,843)



AT END OF YEAR
(350,484)

The provision for deferred taxation is made up as follows:

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Accelerated capital allowances
(434,618)
(315,369)
(350,484)
(264,641)

Tax losses carried forward
53,715
-
-
-

(380,903)
(315,369)
(350,484)
(264,641)

Page 36


SANSETSU UK LIMITED

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

21.


Share capital

2023
2022
£
£
ALLOTTED, CALLED UP AND FULLY PAID



1,412,112 (2022: 1,412,112) A Ordinary shares of £1.000 each
1,412,112
1,412,112
19,334 (2022: 19,334) B Ordinary shares of £0.001 each
20
20

1,412,132

1,412,132


The company has ordinary shares A which each carry a right to vote and recevie dividends. The shares may be redeemed at the option of the company on terms to be prescribed at the time of redemption.
The company has ordinary shares B which do not carry a right to vote. Each share shall be entitled pari passu to dividend payments or other distributions subject to the discretion of the directors of the company.


22.


Reserves

Capital redemption reserve

This reserve includes the company buy back of own shares.

Profit and loss account

This reserve includes all current and prior period retained profits and losses.


23.


Capital commitments




At 31 December 2023 the Group and Company had capital commitments as follows:


Company
Company
2023
2022
£
£

Contracted for but not provided in these financial statements
-
(406,067)

-
(406,067)

24.


Pension commitments

The company operates a defined contribution pension scheme. The pension charge for the year represents contributions payable by the company to the scheme and amounted to £105,862 (2022: £102,520). Contributions totalling £33,179 (2022: £11,451) were payable to the fund at the reporting date and are included in creditors.

Page 37


SANSETSU UK LIMITED

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

25.


Commitments under operating leases

At 31 December 2023 the Group and the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:


Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Not later than 1 year
613,606
507,116
263,840
166,657

Later than 1 year and not later than 5 years
1,478,742
174,158
1,014,311
105,818

Later than 5 years
880,000
-
880,000
-

2,972,348
681,274
2,158,151
272,475


26.


Related party transactions

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.
Transactions between group entries which have been eliminated on consolidation are not disclosed within the financial statements.
During the prior year the property occupied by the company was purchased by Umeda Holdings UK Limited, a company with common ownership.
Rent paid to Umeda Holdings UK Limited was £361,600 (2022: £60,000). The balance owed at the year-end was £Nil (2022: £60,000).


27.


Controlling party

The immediate parent company is Miyazaki Corporation, a company incorporated in Japan.
The ultimate parent company is Umeda Holdings Co, a company incorporated in Japan.
There is no ultimate controlling party.
 
Page 38