Company registration number SC131630 (Scotland)
SHORE LAMINATES LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
SHORE LAMINATES LIMITED
COMPANY INFORMATION
Directors
D J Campden
A T Pearson
C J Elkins
Company number
SC131630
Registered office
Unit 1-4 Inveralmond Close
Inveralmond Industrial Estate
PERTH
PH1 3TT
Auditor
MMG Archbold Limited
4 Albert Place
PERTH
PH2 8JE
Business address
Unit 1-4 Inveralmond Close
Inveralmond Industrial Estate
PERTH
PH1 3TT
Bankers
The Royal Bank of Scotland plc
Perth Chief Office
12 Dunkeld Road
PERTH
PH1 5RB
Solicitors
Thorntons WS
Whitehall House
33 Yeaman Shore
DUNDEE
DD1 4BJ
SHORE LAMINATES LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Statement of cash flows
11
Notes to the financial statements
12 - 24
SHORE LAMINATES LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

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

Review of the business

The Company achieved an operating profit of £2.136m (2022: profit £2.369m) at the year ended 31 December 2023, despite the inflationary challenges encountered across the industry within the last 18 months.

The Balance Sheet on page 9 of the financial statements shows the Company’s financial position at the year end 31 December 2023 with net assets of £11.259m (2022: £10.080m). The Company’s cash position remains strong at £0.958m (2022: £1.727m).

Key performance indicators

 

 

2023

2022

2021

 

 

£

£

£

Revenue

 

22,062,908

22,710,924

16,008,401

EBITDA

 

2,622,762

2,791,724

1,579,972

EBITDA %

 

11.9%

12.2%

9.9%

 

Revenue in 2023 was impacted by the economic environment as a result of the rapid increase in inflation, which in turn affected consumer demand and spending across the industry. This has impacted EBITDA on both a monetary and percentage basis, reducing EBITDA to £2.623m (2022: £2.792m decrease of 0.6%, however, an increase from 2021 of 66.1%).

The Company’s activities expose it to both economic and financial risk, as a result of the rapid increase in inflation, changes in foreign currency exchange rates, and raw material price fluctuations.  In 2023 the rapid changes in inflation provided significant challenges to the market, affecting consumer demand. Proactively, the Company undertook a restructure of its manufacturing of Wetwall products within the UK, with the consolidation of Wetwall manufacture at the group company Bushboard Ltd. The restructure has aided the Group in achieving cost reduction through improved efficiency and economies of scale, as well as maximising expertise in the manufacturing process.

EBITDA remains positive with improved margins expected in the next financial year as management develops commercial revenue and processes to enhance productivity, including new product launches.

The Company continues to invest in systems and operations to support the growth of the business and its ability to maximise customer partnerships through increased engagement initiatives.

On behalf of the board

D J Campden
Director
28 August 2024
SHORE LAMINATES LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -

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

Principal activities

The principal activity of the company continued to be the manufacture of laminated products.

Results and dividends

The results for the year are set out on page 8.

No ordinary dividends were paid. The directors do not recommend payment of a final dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

D J Campden
A T Pearson
C J Elkins
Financial instruments
Financial risk management objectives and policies

The company’s principal financial instruments comprise cash and items that arise directly from the company’s operations such as trade debtors and trade creditors.

The company’s activities expose it to a number of financial risks including credit risk, liquidity risk, foreign currency risk and inflation risk.

The directors review and agree policies for managing each of these risks and these are summarised below. The company does not use derivative financial instruments for speculative purposes.

Liquidity risk

In order to maintain liquidity to ensure that sufficient funds are available for ongoing operations and future developments, the company’s policy is to ensure that cash is available within the bank current accounts, whilst maintaining short, medium, and long-term funding arrangements within the Wilsonart group.

Foreign currency risk

The company’s activities expose it to the financial risks of changes in foreign currency exchange rates. These risks are mitigated across the Wilsonart group, which maintains operations in several currency areas globally.

Credit risk

The company’s principal financial assets are bank balances and cash, trade, and other receivables.

The company’s credit risk is primarily attributable to its trade receivables. The amounts presented in the balance sheet are net of allowances for doubtful receivables. An allowance for impairment is made where there is an identified loss event which, based on previous experience, provides evidence of a reduction in cash recoverability.

Risk around the impact of cost of living on the company’s customer base and their ability to pay is monitored frequently via risk reporting and account managers maintaining relationships with supply chain.

Inflation risk

The Consumer Price Index in the UK has risen by 7.9% in the 12 months to June and continues to drive inflationary price increases which have a direct impact on the company.  To protect the company against inflation risk, management have systems in place to monitor price increases and profitability of stock lines from the company purchasing within the group and evaluating its product portfolio.

SHORE LAMINATES LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
Future developments

The expectations of the directors are that despite of the uncertainty in the economy due to rising inflation, the level of activity is sustainable, with further prospects for growth and improved profitability into 2024 and beyond. The directors remain committed to product and process development and see this as a vital component in the company’s ongoing success.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

On behalf of the board
D J Campden
Director
28 August 2024
SHORE LAMINATES LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -

The directors are responsible for preparing the annual report 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:

 

 

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.

 

The directors are responsible for the maintenance and integrity of the corporate financial information including the company’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

SHORE LAMINATES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF SHORE LAMINATES LIMITED
- 5 -
Opinion

We have audited the financial statements of Shore Laminates Limited (the 'company') for the year ended 31 December 2023 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including 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:

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 Auditor's 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 other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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. 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.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

SHORE LAMINATES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SHORE LAMINATES LIMITED
- 6 -
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 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:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, 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 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.

Auditor's 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 auditor's 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 financial statements.

SHORE LAMINATES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SHORE LAMINATES LIMITED
- 7 -

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.

 

The Company is subject to laws and regulations that directly and indirectly affect the financial statements. Based on our understanding of the Company and industry, we identified that the principal risks of non-compliance with laws and regulations related to general legislation, breaches of health and safety regulations and tax legislation. We considered the extent to which these laws and regulations might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements, including the risk of override of controls, and determined that the principal risk related to posting journal entries to manipulate revenue and profit. Audit procedures performed by the engagement team included:

 

 

There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentation, or through collusion.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's 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 an auditor's 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.

Klarrisa Robertson FCCA
Senior Statutory Auditor
For and on behalf of MMG Archbold Limited
28 August 2024
Chartered Accountants
Statutory Auditor
4 Albert Place
PERTH
PH2 8JE
SHORE LAMINATES LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
2023
2022
Notes
£
£
Turnover
3
22,062,908
22,710,924
Cost of sales
(14,573,946)
(17,086,321)
Gross profit
7,488,962
5,624,603
Administrative expenses
(5,364,423)
(3,275,846)
Other operating income
11,807
20,826
Operating profit
4
2,136,346
2,369,583
Interest receivable and similar income
6
12,957
16
Amounts written off investments
7
(54,494)
2,100,438
Profit before taxation
2,094,809
4,470,037
Tax on profit
8
(915,637)
(382,802)
Profit for the financial year
1,179,172
4,087,235

The profit and loss account has been prepared on the basis that all operations are continuing operations.

SHORE LAMINATES LIMITED
BALANCE SHEET
AS AT 31 DECEMBER 2023
31 December 2023
- 9 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
9
888,451
1,489,569
Current assets
Stocks
10
2,487,741
3,515,997
Debtors
11
10,600,970
6,214,936
Cash at bank and in hand
957,999
1,727,490
14,046,710
11,458,423
Creditors: amounts falling due within one year
12
(2,716,052)
(2,868,304)
Net current assets
11,330,658
8,590,119
Total assets less current liabilities
12,219,109
10,079,688
Provisions for liabilities
Provisions
14
960,249
-
0
(960,249)
-
Net assets
11,258,860
10,079,688
Capital and reserves
Called up share capital
17
20,100
20,100
Profit and loss reserves
11,238,760
10,059,588
Total equity
11,258,860
10,079,688

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements were approved by the board of directors and authorised for issue on 28 August 2024 and are signed on its behalf by:
D J Campden
Director
Company registration number SC131630 (Scotland)
SHORE LAMINATES LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 January 2022
20,100
5,972,353
5,992,453
Year ended 31 December 2022:
Profit and total comprehensive income
-
4,087,235
4,087,235
Balance at 31 December 2022
20,100
10,059,588
10,079,688
Year ended 31 December 2023:
Profit and total comprehensive income
-
1,179,172
1,179,172
Balance at 31 December 2023
20,100
11,238,760
11,258,860
SHORE LAMINATES LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
20
65,292
79,534
Income taxes paid
(496,963)
(409,865)
Net cash outflow from operating activities
(431,671)
(330,331)
Investing activities
Purchase of tangible fixed assets
(303,783)
(576,908)
Proceeds from disposal of tangible fixed assets
7,500
4,667
Proceeds from disposal of investments
(54,494)
2,100,438
Interest received
12,957
16
Net cash (used in)/generated from investing activities
(337,820)
1,528,213
Net (decrease)/increase in cash and cash equivalents
(769,491)
1,197,882
Cash and cash equivalents at beginning of year
1,727,490
529,608
Cash and cash equivalents at end of year
957,999
1,727,490
SHORE LAMINATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 12 -
1
Accounting policies
Company information

Shore Laminates Limited is a private company limited by shares incorporated in Scotland. The registered office is Unit 1-4 Inveralmond Close, Inveralmond Industrial Estate, PERTH, PH1 3TT.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2
Going concern

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

1.4
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Leasehold land and buildings
over the lease term
Plant and machinery
15% - 20% straight line
Fixtures, fittings & equipment
20% - 25% straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

SHORE LAMINATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 13 -
1.5
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.6
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.7
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.8
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

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

SHORE LAMINATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 14 -
Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method 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. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

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

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

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

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

SHORE LAMINATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 15 -
Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.9
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.10
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

SHORE LAMINATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 16 -
1.11
Provisions

Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

 

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

1.12
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.13
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.14
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

1.15
Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

 

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

1.16
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

SHORE LAMINATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 17 -
2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Provisions

The Company carries a provision of £960,249 (2022 - £NIL) based on management's best estimates of the costs related to restructuring.

3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Sale of goods
22,062,908
22,710,924
2023
2022
£
£
Turnover analysed by geographical market
UK
22,062,908
22,710,924
2023
2022
£
£
Other revenue
Interest income
12,957
16
Grants received
-
14,956
4
Operating profit
2023
2022
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange losses
4,052
12,524
Government grants
-
(14,956)
Fees payable to the company's auditor for the audit of the company's financial statements
13,172
11,910
Depreciation of owned tangible fixed assets
486,416
422,141
Loss/(profit) on disposal of tangible fixed assets
412,634
(4,667)
Operating lease charges
257,943
245,811
SHORE LAMINATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 18 -
5
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2023
2022
Number
Number
Administration
5
8
Distribution
22
23
Manufacturing
9
13
Sales
19
21
Total
55
65

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
1,722,522
1,779,772
Social security costs
174,530
173,949
Pension costs
32,686
32,997
1,929,738
1,986,718
6
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
62
16
Other interest income
12,895
-
0
Total income
12,957
16
2023
2022
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
62
16
7
Amounts written off investments
2023
2022
£
£
Amounts (written off)/written back to financial assets held at cost
(54,494)
2,100,438
SHORE LAMINATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 19 -
8
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
856,383
388,743
Deferred tax
Origination and reversal of timing differences
59,254
(5,941)
Total tax charge
915,637
382,802

The rate of corporation tax changed from 19% to 25% from 1 April 2023

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2023
2022
£
£
Profit before taxation
2,094,809
4,470,037
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2022: 19.00%)
523,702
849,307
Tax effect of expenses that are not deductible in determining taxable profit
244,407
117
Tax effect of income not taxable in determining taxable profit
-
0
(399,084)
Effect of change in corporation tax rate
(33,099)
-
0
Permanent capital allowances in excess of depreciation
110,129
(61,598)
Other permanent differences
70,498
(5,940)
Taxation charge for the year
915,637
382,802
SHORE LAMINATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 20 -
9
Tangible fixed assets
Leasehold land and buildings
Plant and machinery
Fixtures, fittings & equipment
Total
£
£
£
£
Cost
At 1 January 2023
283,666
2,527,977
1,016,937
3,828,580
Additions
3,195
172,479
128,109
303,783
Disposals
(217,130)
(1,386,873)
-
0
(1,604,003)
At 31 December 2023
69,731
1,313,583
1,145,046
2,528,360
Depreciation and impairment
At 1 January 2023
94,601
1,786,517
457,893
2,339,011
Depreciation charged in the year
25,186
231,460
229,770
486,416
Eliminated in respect of disposals
(89,621)
(1,095,897)
-
0
(1,185,518)
At 31 December 2023
30,166
922,080
687,663
1,639,909
Carrying amount
At 31 December 2023
39,565
391,503
457,383
888,451
At 31 December 2022
189,065
741,460
559,044
1,489,569
10
Stocks
2023
2022
£
£
Raw materials and consumables
334,219
1,277,570
Finished goods and goods for resale
2,153,522
2,238,427
2,487,741
3,515,997
11
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
3,461,004
4,587,277
Corporation tax recoverable
183,927
543,348
Amounts owed by group undertakings
6,750,000
900,000
Other debtors
300
21,551
Prepayments and accrued income
201,082
98,850
10,596,313
6,151,026
SHORE LAMINATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
11
Debtors
(Continued)
- 21 -
2023
2022
Amounts falling due after more than one year:
£
£
Deferred tax asset
4,657
63,910
Total debtors
10,600,970
6,214,936
12
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
1,319,662
1,025,399
Amounts owed to group undertakings
61,994
123,817
Taxation and social security
207,895
303,699
Other creditors
5,607
-
0
Accruals and deferred income
1,120,894
1,415,389
2,716,052
2,868,304
13
Security

There is a bond and floating charge over the assets of the company in favour of Royal Bank of Scotland.

 

14
Provisions for liabilities
2023
2022
£
£
Provisions
960,249
-
Movements on provisions:
Provisions
£
Additional provisions in the year
960,249

In accordance with the requirements of Section 21 of FRS102 the company has made a total provision of £960,249 (2022 - £NIL) in respect of restructuring which has been communicated to those affected. The provision represents reliable estimated expenditure required to settle the obligations arising from the restructuring including costs related to employee severance, lease terminations and other directly associated costs.

SHORE LAMINATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 22 -
15
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Assets
Assets
2023
2022
Balances:
£
£
Accelerated capital allowances
4,657
63,910
2023
Movements in the year:
£
Asset at 1 January 2023
(63,910)
Charge to profit or loss
59,253
Asset at 31 December 2023
(4,657)

The deferred tax asset set out above is expected to reverse in the future and relates to the timing difference on capital allowances.

16
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
32,686
32,997

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

SHORE LAMINATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 23 -
17
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of £1 each
20,100
20,100
20,100
20,100
18
Operating lease commitments
Lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2023
2022
£
£
Within one year
215,146
242,000
Between two and five years
645,438
968,000
860,584
1,210,000
19
Ultimate controlling party

The immediate parent company is Wilsonart Limited, incorporated in England and Wales. The immediate parent company of Wilsonart Limited is Wilsonart International Holdings Sarl, a company incorporated in Luxembourg. The smallest group of which Shore Laminates Limited is a member which produces consolidated financial statements is Wilsonart LLC, incorporated in the USA. The financial statements of Wilsonart LLC are publicly available and can be obtained from Wilsonart LLC, 13413 Galleria Circle, Suite 200, Austin, Texas, USA, 78738 which is also the registered office.

    

In the opinion of the directors, the ultimate controlling party is Clayton Dubilier & Rice (private equity) investors, who owns 51% of Wilsonart International Holdings LLC.

SHORE LAMINATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 24 -
20
Cash generated from operations
2023
2022
£
£
Profit for the year after tax
1,179,172
4,087,235
Adjustments for:
Taxation charged
915,637
382,802
Investment income
(12,957)
(16)
Loss/(gain) on disposal of tangible fixed assets
412,634
(4,667)
Depreciation and impairment of tangible fixed assets
486,416
422,141
Other gains and losses
54,494
(2,100,438)
Increase in provisions
960,249
-
Movements in working capital:
Decrease in stocks
1,028,256
45,909
Increase in debtors
(4,806,357)
(1,157,152)
Decrease in creditors
(152,252)
(1,581,324)
Decrease in deferred income
-
(14,956)
Cash generated from operations
65,292
79,534
21
Analysis of changes in net funds
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
1,727,490
(769,491)
957,999
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