Caseware UK (AP4) 2023.0.135 2023.0.135 2023-12-312023-12-31falsetruetrue51false2023-01-01labels46truefalse 02589295 2023-01-01 2023-12-31 02589295 2022-01-01 2022-12-31 02589295 2023-12-31 02589295 2022-12-31 02589295 2022-01-01 02589295 c:CompanySecretary1 2023-01-01 2023-12-31 02589295 c:Director1 2023-01-01 2023-12-31 02589295 c:Director2 2023-01-01 2023-12-31 02589295 c:RegisteredOffice 2023-01-01 2023-12-31 02589295 c:Agent1 2023-01-01 2023-12-31 02589295 d:PlantMachinery 2023-01-01 2023-12-31 02589295 d:PlantMachinery 2023-12-31 02589295 d:PlantMachinery 2022-12-31 02589295 d:PlantMachinery d:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 02589295 d:PlantMachinery d:LeasedAssetsHeldAsLessee 2023-01-01 2023-12-31 02589295 d:FurnitureFittings 2023-01-01 2023-12-31 02589295 d:FurnitureFittings 2023-12-31 02589295 d:FurnitureFittings 2022-12-31 02589295 d:FurnitureFittings d:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 02589295 d:FurnitureFittings d:LeasedAssetsHeldAsLessee 2023-01-01 2023-12-31 02589295 d:ComputerEquipment 2023-01-01 2023-12-31 02589295 d:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 02589295 d:LeasedAssetsHeldAsLessee 2023-01-01 2023-12-31 02589295 d:CurrentFinancialInstruments 2023-12-31 02589295 d:CurrentFinancialInstruments 2022-12-31 02589295 d:Non-currentFinancialInstruments 2023-12-31 02589295 d:Non-currentFinancialInstruments 2022-12-31 02589295 d:CurrentFinancialInstruments d:WithinOneYear 2023-12-31 02589295 d:CurrentFinancialInstruments d:WithinOneYear 2022-12-31 02589295 d:Non-currentFinancialInstruments d:AfterOneYear 2023-12-31 02589295 d:Non-currentFinancialInstruments d:AfterOneYear 2022-12-31 02589295 d:Non-currentFinancialInstruments d:BetweenOneTwoYears 2023-12-31 02589295 d:Non-currentFinancialInstruments d:BetweenOneTwoYears 2022-12-31 02589295 e:UnitedKingdom 2023-01-01 2023-12-31 02589295 e:UnitedKingdom 2022-01-01 2022-12-31 02589295 e:RestEuropeOutsideUK 2023-01-01 2023-12-31 02589295 e:RestEuropeOutsideUK 2022-01-01 2022-12-31 02589295 d:UKTax 2023-01-01 2023-12-31 02589295 d:UKTax 2022-01-01 2022-12-31 02589295 d:ShareCapital 2023-12-31 02589295 d:ShareCapital 2022-12-31 02589295 d:RetainedEarningsAccumulatedLosses 2023-01-01 2023-12-31 02589295 d:RetainedEarningsAccumulatedLosses 2023-12-31 02589295 d:RetainedEarningsAccumulatedLosses 2022-01-01 2022-12-31 02589295 d:RetainedEarningsAccumulatedLosses 2022-12-31 02589295 d:RetainedEarningsAccumulatedLosses 2022-01-01 02589295 d:FinancialAssetsDesignatedFairValueThroughProfitOrLoss 2023-12-31 02589295 d:FinancialAssetsDesignatedFairValueThroughProfitOrLoss 2022-12-31 02589295 d:FinancialLiabilitiesFairValueThroughProfitOrLoss d:ListedExchangeTraded 2023-12-31 02589295 d:FinancialLiabilitiesFairValueThroughProfitOrLoss d:ListedExchangeTraded 2022-12-31 02589295 d:AcceleratedTaxDepreciationDeferredTax 2023-12-31 02589295 d:AcceleratedTaxDepreciationDeferredTax 2022-12-31 02589295 d:RetirementBenefitObligationsDeferredTax 2023-12-31 02589295 d:RetirementBenefitObligationsDeferredTax 2022-12-31 02589295 d:FurtherSpecificTypeProvisionContingentLiability1ComponentTotalProvisionsContingentLiabilities 2023-12-31 02589295 d:FurtherSpecificTypeProvisionContingentLiability1ComponentTotalProvisionsContingentLiabilities 2022-12-31 02589295 c:OrdinaryShareClass1 2023-01-01 2023-12-31 02589295 c:OrdinaryShareClass1 2023-12-31 02589295 c:FRS102 2023-01-01 2023-12-31 02589295 c:Audited 2023-01-01 2023-12-31 02589295 c:FullAccounts 2023-01-01 2023-12-31 02589295 c:PrivateLimitedCompanyLtd 2023-01-01 2023-12-31 02589295 d:WithinOneYear 2023-12-31 02589295 d:WithinOneYear 2022-12-31 02589295 d:BetweenOneFiveYears 2023-12-31 02589295 d:BetweenOneFiveYears 2022-12-31 02589295 d:HirePurchaseContracts d:WithinOneYear 2023-12-31 02589295 d:HirePurchaseContracts d:WithinOneYear 2022-12-31 02589295 d:HirePurchaseContracts d:BetweenOneFiveYears 2023-12-31 02589295 d:HirePurchaseContracts d:BetweenOneFiveYears 2022-12-31 02589295 2 2023-01-01 2023-12-31 02589295 7 2023-01-01 2023-12-31 02589295 d:PlantMachinery d:LeasedAssetsHeldAsLessee 2023-12-31 02589295 d:PlantMachinery d:LeasedAssetsHeldAsLessee 2022-12-31 02589295 f:PoundSterling 2023-01-01 2023-12-31 iso4217:GBP xbrli:shares xbrli:pure
Registered number: 02589295









LATTICE LABELS LIMITED

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

 
LATTICE LABELS LIMITED
 

COMPANY INFORMATION


DIRECTORS
J L Roberts 
T C Clifton 




COMPANY SECRETARY
T C Clifton



REGISTERED NUMBER
02589295



REGISTERED OFFICE
2 Chester Road
Colmworth Business Park

St Neots

Cambridgeshire

PE19 8YT




INDEPENDENT AUDITORS
Price Bailey LLP
Chartered Accountants & Statutory Auditors

Tennyson House

Cambridge Business Park

Cambridge

CB4 0WZ




BANKERS
Barclays Bank plc
41 High Street

St Neots

PE19 1AS




SOLICITORS
Hunt & Combs
35 Thorpe Road

Peterborough

PE3 6AG





 
LATTICE LABELS LIMITED
 

CONTENTS



Page
Strategic Report
1 - 2
Directors' Report
3 - 4
Independent Auditors' Report
5 - 8
Statement of Income and Retained Earnings
9
Balance Sheet
10
Notes to the Financial Statements
11 - 24

 
LATTICE LABELS LIMITED
 

STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

INTRODUCTION
 
This is a balanced and comprehensive review of the performance of our business during the year and its position at the year end consistent with the size and nature of our business and is written in the context of the risks and uncertainties we face.

BUSINESS REVIEW
 
Financial overview
The Company achieved a profit before taxation for the year ended 31 December 2023 of £141,135 (2022: £480,372)
The Directors are satisfied with the performance of the business although 2023 has presented the label market with an array of new challenges the business has performed exceptionally, particularly in the light of losing our largest contract. The influence of external economic factors have impacted volume in certain market sectors throughout 2023 but we are delighted that we have offset this impact by securing new business and contracts. 
Turnover
Management consider the results for the year to be in line with overall performance of the market.
Operating costs
Operating costs have been controlled and remain consistent with the prior financial year.

PRINCIPAL RISKS AND UNCERTAINTIES
 
The management of the business and the nature of the Company's strategy are subject to a number of risks. Management have set out below the principal risks facing the business. Where possible processes are in place to monitor and mitigate such risks.
Economic downturn
The success of the business is reliant on consumer demand. An economic downturn, resulting in reduction of consumer demand, will have an impact on the income achieved by the Company. In response to this risk, management aim to keep abreast of economic downturn, marketing and pricing strategies are modified to reflect the new market conditions.
Manufacturing of products
The Company is reliant on its products being of a high quality and up to date with its customer's demand. This exposes the Company to risks in a number of areas which is dependent on its manufacturing in respect of:
- quality of the labels
- pricing of the labels
- range of types of labels offered
Management are confident that the products produced will be of a continued high quality and will meet the market's demand.

Page 1

 
LATTICE LABELS LIMITED
 

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

FINANCIAL KEY PERFORMANCE INDICATORS
 
The Company measures its financial performance in several areas as follows:
1. Growth in turnover is a key measure of the company's success in winning new business and retaining existing clients. Sales growth remains our key focus across the business, closely followed by tight cost management. The Tough economic situation in not just the UK but Europe and the rest of the world has meant a reduction of 20% in turnover compared to 2022. We have however with better productivity and material usage managed to increase the level of Gross Margin achieved from 32% to 34%. Towards the end of 2023 we saw inflation starting to fall and stability in the rate of interest. We are hopeful that 2024 will star to see a reduction in interest rates which should stimulate the economy.
2.    Cash collection and stock leveraging forms part of our working capital management. At the year end average debtor days were 51.6 days (2022 – 46.1 days) compared to a target of 60.0 days. Stock turns of 9.8:1 (2021 - 9.2:1) compares less favorably with 2022. We have dedicated more time to reducing stock and this will continue throughout 2024.

OTHER KEY PERFORMANCE INDICATORS
 
The Company measures its non-financial performance in several areas as follows:
1. The securing of new business is a critical area if the business is to continue to grow. The value of contracts won during the year is therefore closely monitored. During the year the level of new business won exceeded our target and helped mitigate our losses.
2. The level of contract losses is also measured. Contract losses are categorised into two areas- those under our control and those outside our control. The level of contract losses under our control was in line with anticipated levels, whilst contract losses outside of our control (receiverships and closures) was broadly as expected.
3. Productivity and efficiency is monitored and assessed using different metrics compared to previous years performance, across a wide range of indicators our performance has improved facilitated by product mix improvements and continued targeted capital expenditure. 


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



................................................
T C Clifton
Director

Date: 28 August 2024
Page 2

 
LATTICE LABELS 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 Strategic Report, the Directors' 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 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 of the profit or loss of the Company for that period.

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


select suitable accounting policies for the Company'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 Company 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 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 hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

RESULTS AND DIVIDENDS

The profit for the year, after taxation, amounted to £79,715 (2022 - £405,894).

The Directors recommend the payment of a dividend this year totalling £45,000 (2022 - £55,000).

DIRECTORS

The directors who served during the year were:

J L Roberts 
T C Clifton 

FUTURE DEVELOPMENTS

The Directors anticipate no significant changes in the Company's activities for the foreseeable future.

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'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's auditors are aware of that information.

Page 3

 
LATTICE LABELS LIMITED
 

 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

POST BALANCE SHEET EVENTS

There have been no significant events affecting the Company since the year end.

AUDITORS

Under section 487(2) of the Companies Act 2006Price Bailey LLP will be deemed to have been reappointed as auditors 28 days after these financial statements were sent to members or 28 days after the latest date prescribed for filing the accounts with the registrar, whichever is earlier.

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





................................................
T C Clifton
Director

Date: 28 August 2024

Page 4

 
LATTICE LABELS LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF LATTICE LABELS LIMITED
 

OPINION


We have audited the financial statements of Lattice Labels Limited (the 'Company') for the year ended 31 December 2023, which comprise the Statement of Income and Retained Earnings, the Balance Sheet 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 Company's affairs as at 31 December 2023 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


BASIS FOR OPINION


We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the 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 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

 
LATTICE LABELS LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF LATTICE LABELS 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 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 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 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:


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


RESPONSIBILITIES OF DIRECTORS
 

As explained more fully in the 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 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.


Page 6

 
LATTICE LABELS LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF LATTICE LABELS 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 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:

We gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates and considered the risk of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations. This included those regulations directly related to the financial statements, including financial reporting, tax legislation and distributable profits and industry regulations including GDPR, employment law and health and safety. 
We communicated the identified laws and regulations with the audit team and remained alert to any indications of non-compliance throughout the audit. We carried out specific procedures to address the risks identified. 
These included the following:
-  agreeing the financial statement disclosures to underlying supporting documentation to assess     compliance with provisions of relevant laws and regulations described as having a direct effect on the    financial statements;
-  enquiries of management including those responsible for key regulations;
-  performing analytical procedures to identify any unusual or unexpected relationships that may indicate    risks of material misstatement due to fraud;
In addressing the risk of management override of controls, we carried out testing of journal entries and other adjustments for appropriateness, assessing whether the judgements made in making accounting estimates are indicative of a potential bias and evaluating the business rationale of significant transactions outside the normal course of business. 
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation.  This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.


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


Page 7

 
LATTICE LABELS LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF LATTICE LABELS LIMITED (CONTINUED)


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.





Paul Cullen FCCA (Senior Statutory Auditor)
for and on behalf of
Price Bailey LLP
Chartered Accountants
Statutory Auditors
Tennyson House
Cambridge Business Park
Cambridge
CB4 0WZ

 
Date: 
9 September 2024
Page 8

 
LATTICE LABELS LIMITED
 

STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
Note
£
£

  

Turnover
 4 
9,512,340
11,871,279

Cost of sales
  
(6,527,196)
(8,386,495)

Gross profit
  
2,985,144
3,484,784

Distribution costs
  
(115,794)
(89,045)

Administrative expenses
  
(2,725,142)
(2,911,732)

Operating profit
 5 
144,208
484,007

Interest receivable and similar income
 9 
3,476
420

Interest payable and similar expenses
 10 
(6,549)
(4,055)

Profit before tax
  
141,135
480,372

Tax on profit
 11 
(61,420)
(74,478)

Profit after tax
  
79,715
405,894

  

  

Retained earnings at the beginning of the year
  
3,392,681
3,041,787

Profit for the year
  
79,715
405,894

Dividends declared and paid
 12 
(45,000)
(55,000)

Retained earnings at the end of the year
  
3,427,396
3,392,681

There were no recognised gains and losses for 2023 or 2022 other than those included in the statement of income and retained earnings.


The notes on pages 11 to 24 form part of these financial statements.

Page 9

 
LATTICE LABELS LIMITED
REGISTERED NUMBER: 02589295

BALANCE SHEET
AS AT 31 DECEMBER 2023

2023
2022
Note
£
£

Fixed assets
  

Tangible fixed assets
 13 
1,304,214
1,305,505

Current assets
  

Stocks
 14 
517,979
969,964

Debtors: amounts falling due within one year
 15 
3,589,335
3,230,224

Cash at bank and in hand
 16 
481,170
510,047

  
4,588,484
4,710,235

Creditors: amounts falling due within one year
 17 
(1,664,497)
(1,892,952)

Net current assets
  
 
 
2,923,987
 
 
2,817,283

Total assets less current liabilities
  
4,228,201
4,122,788

Creditors: amounts falling due after more than one year
 18 
(103,333)
(65,153)

Provisions for liabilities
  

Deferred tax
 22 
(263,722)
(231,204)

Other provisions
 23 
(125,000)
(125,000)

  
 
 
(388,722)
 
 
(356,204)

Net assets
  
3,736,146
3,701,431


Capital and reserves
  

Called up share capital 
 24 
308,750
308,750

Profit and loss account
 25 
3,427,396
3,392,681

  
3,736,146
3,701,431


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




................................................
T C Clifton
Director

Date: 28 August 2024

The notes on pages 11 to 24 form part of these financial statements.

Page 10

 
LATTICE LABELS LIMITED
 

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

1.


GENERAL INFORMATION

Lattice Labels Limited is a private Company limited by shares incorporated in England and Wales, United Kingdom. The registered office is 2 Chester Road, Colmworth Business Park, St Neots, PE19 8YT.
The principal activity of the company continued to be that of a label producer and supplier.

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 management to exercise judgment in applying the Company's accounting policies (see note 3).
The Company's level of rounding is to the nearest Pound.

The following principal accounting policies have been applied:

 
2.2

FINANCIAL REPORTING STANDARD 102 - REDUCED DISCLOSURE EXEMPTIONS

The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
the requirements of Section 7 Statement of Cash Flows;
the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d).

This information is included in the consolidated financial statements of Random Factor Limited as at 31st December 2023 and these financial statements may be obtained from 2 Chester Road, Colmworth Business Park, St Neots, PE19 8YT..

 
2.3

GOING CONCERN

The directors have prepared projected budgets and on the basis of these budgets, the directors have considered the company to continue to operate as a going concern. The directors are confident that the company will have sufficient funds to meet its liabilities as they fall due for a period of not less than 12 months from the date of approval of these financial statements.
The directors continue to monitor cashflow closely and exercise tight credit control and, based on their forecasts and built up reserves, consider it appropriate to continue to prepare the financial statements on a going concern basis.

 
2.4

TURNOVER

Turnover comprises revenue recognised by the company in respect of goods supplied during the year, exclusive of Value Added Tax and trade discounts. Turnover is recognised on despatch of goods.

Page 11

 
LATTICE LABELS LIMITED
 

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

2.ACCOUNTING POLICIES (CONTINUED)

 
2.5

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.

At each reporting date the Company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives.

Depreciation is provided on the following basis:

Plant and machinery
-
      5-20% straight line
Fixtures and fittings
-
      5-10% straight line
Computer equipment
-
     18-32% straight line

 
2.6

OPERATING LEASES: THE COMPANY AS LESSEE

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

 
2.7

STOCKS

Stocks are stated at the lower of cost and net realisable value, being estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis.
At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete the sell. The impairment loss is recognised immediately in profit or loss.

 
2.8

DEBTORS

Short term debtors are measured at transaction price, less any impairment.

 
2.9

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.

 
2.10

CREDITORS

Short term creditors are measured at the transaction price.
Page 12

 
LATTICE LABELS LIMITED
 

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

2.ACCOUNTING POLICIES (CONTINUED)

 
2.11

FINANCIAL INSTRUMENTS

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

 
2.12

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.

 
2.13

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.

 
2.14

DIVIDENDS

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

 
2.15

LEASED ASSETS: THE COMPANY AS LESSEE

Assets obtained under hire purchase contracts and finance leases are capitalised as tangible fixed assets. Assets acquired by finance lease are depreciated over the shorter of the lease term and their useful lives. Assets acquired by hire purchase are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the company. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to profit or loss so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.

 
2.16

PENSIONS

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company 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 Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds.

Page 13

 
LATTICE LABELS LIMITED
 

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

2.ACCOUNTING POLICIES (CONTINUED)

 
2.17

HOLIDAY PAY ACCRUAL

A liability is recognised to the extent of any unused holiday pay entitlement which is accrued at the balance sheet date and carried forward to future periods. This is measured at the undiscounted salary cost of the future holiday entitlement so accrued at the balance sheet date.

 
2.18

BORROWING COSTS

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

 
2.19

INTEREST INCOME

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

 
2.20

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.

 
2.21

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 corporation tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet 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; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

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 balance sheet date.

Page 14

 
LATTICE LABELS LIMITED
 

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

3.



JUDGMENTS IN APPLYING ACCOUNTING POLICIES AND KEY SOURCES OF ESTIMATION UNCERTAINTY

In the application of the Company's accounting policy, the directors are required to make significant judgements, estimates and assumptions. The estimates and associated assumptions are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Although these estimates are based on management's best knowledge of the amount, events or actions, actual results ultimately may differ from those estimates.
Estimates and judgements are continually evaluated. 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 revision and future periods where the revision affects both current and future periods.
Details of the company's significant accounting judgements and critical estimates include:
Impairment of stock and work in progress
Management have assessed the need to write off or provide against any specific items based on the levels held at period end and the expected sales of such items in the immediate period post year end. Management take into account historic sales data at the date the estimate is made.
Impairment of trade debtors
The recoverability of trade debtors has been assessed at the year end and up until the date of signing these financial statements. Management have based the decision to provide for any amounts based on their judgement of all the available information and their experience of the specific nature of the trade debtor in question.


4.


TURNOVER

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

Analysis of turnover by country of destination:

2023
2022
£
£

United Kingdom
9,046,535
11,391,106

Rest of Europe
465,805
480,173

9,512,340
11,871,279


Page 15

 
LATTICE LABELS 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
£
£

Depreciation of tangible fixed assets
271,251
276,561

Exchange differences
(16,363)
(12,080)

Other operating lease rentals
249,867
241,329

Profit of disposal of tangible fixed assets
275
(1,815)

Defined contribution pension cost
119,146
124,950


6.


AUDITORS' REMUNERATION

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


2023
2022
£
£

Fees payable to the Company's auditors for the audit of the Company's financial statements
13,250
12,250

The Company has taken advantage of the exemption not to disclose amounts paid for non-audit services as these are disclosed in the consolidated accounts of the parent Company.


7.


EMPLOYEES

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


2023
2022
£
£

Wages and salaries
1,448,507
1,573,649

Social security costs
148,160
169,624

Cost of defined contribution scheme
119,146
124,950

1,715,813
1,868,223


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


        2023
        2022
            No.
            No.







Production and development
42
47



Office management
4
4

46
51

Page 16

 
LATTICE LABELS LIMITED
 

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

8.


DIRECTORS' REMUNERATION

2023
2022
£
£

Directors' emoluments
162,710
172,092

Company contributions to defined contribution pension schemes
12,455
18,993

175,165
191,085


During the year retirement benefits were accruing to 2 directors (2022 - 2) in respect of defined contribution pension schemes.
The highest paid director received remuneration of £107,225 (2022 - £107,385).
The value of the Company's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £7,541 (2022 - £11,622).


9.


INTEREST RECEIVABLE

2023
2022
£
£


Other interest receivable
3,476
420


10.


INTEREST PAYABLE AND SIMILAR EXPENSES

2023
2022
£
£


Bank interest payable
678
1,055

Finance leases and hire purchase contracts
5,871
3,000

6,549
4,055

Page 17

 
LATTICE LABELS LIMITED
 

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

11.


TAXATION


2023
2022
£
£

Corporation tax


Current tax on profits for the year
28,902
76,124

Deferred tax


Origination and reversal of timing differences
32,518
(1,646)

Taxation on profit on ordinary activities
 
61,420
 
74,478

FACTORS AFFECTING TAX CHARGE FOR THE YEAR

The tax assessed for the year is higher than (2022 - higher than) the standard rate of corporation tax in the UK of 25% (2022 - 19%). The differences are explained below:

2023
2022
£
£


Profit on ordinary activities before tax
141,135
480,372


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2022 - 19%)
35,284
91,271

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
(1,421)
9

Capital allowances for year in excess of depreciation
(6,259)
(18,136)

Relief on profit on disposal of fixed assets
69
2,980

Short-term timing difference leading to an increase (decrease) in taxation
1,229
-

Deferred tax
32,518
(1,646)

Total tax charge for the year
61,420
74,478


FACTORS THAT MAY AFFECT FUTURE TAX CHARGES

There were no factors that may affect future tax charges.


12.


DIVIDENDS

2023
2022
£
£


Declared in the year
45,000
55,000

Page 18

 
LATTICE LABELS LIMITED
 

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

13.


TANGIBLE FIXED ASSETS





Plant and machinery
Fixtures and fittings
Total

£
£
£



Cost


At 1 January 2023
3,440,948
488,547
3,929,495


Additions
40,133
230,103
270,236


Disposals
-
(13,936)
(13,936)



At 31 December 2023

3,481,081
704,714
4,185,795



Depreciation


At 1 January 2023
2,302,239
321,751
2,623,990


Charge for the year on owned assets
181,434
48,020
229,454


Charge for the year on financed assets
22,193
19,604
41,797


Disposals
-
(13,660)
(13,660)



At 31 December 2023

2,505,866
375,715
2,881,581



Net book value



At 31 December 2023
975,215
328,999
1,304,214



At 31 December 2022
1,138,709
166,796
1,305,505

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


2023
2022
£
£



Plant and machinery
195,601
217,794


14.


STOCKS

2023
2022
£
£

Raw materials and consumables
406,241
754,194

Work in progress (goods to be sold)
3,469
-

Finished goods and goods for resale
108,269
215,770

517,979
969,964


Page 19

 
LATTICE LABELS LIMITED
 

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

15.


DEBTORS

2023
2022
£
£


Trade debtors
2,008,397
1,746,845

Amounts owed by group undertakings
1,499,018
1,444,980

Prepayments and accrued income
81,920
38,399

3,589,335
3,230,224



16.


CASH AND CASH EQUIVALENTS

2023
2022
£
£

Cash at bank and in hand
481,170
510,047



17.


CREDITORS: Amounts falling due within one year

2023
2022
£
£

Bank loans
51,666
-

Trade creditors
1,050,203
1,373,135

Corporation tax
28,902
76,124

Other taxation and social security
199,823
125,808

Obligations under finance lease and hire purchase contracts
65,153
78,182

Other creditors
82,402
86,935

Accruals and deferred income
186,348
152,768

1,664,497
1,892,952


The aggregate amount of creditors in the Company's balance sheet as at the year end in respect of which security has been given by the company is £65,153 (2022: £143,335). Hire purchase contracts outstanding were secured against the assets to which they related.
The Company’s bank holds security over the bank borrowings, held within the parent company, which were outstanding at the year end in relation to the total net book value of the Company’s and Group’s assets at the year end via debenture and via a cross guarantee over the property at 2 Chester Road, Colmworth Business Park, Eaton Socon, St Neots.

Page 20

 
LATTICE LABELS LIMITED
 

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

18.


CREDITORS: Amounts falling due after more than one year

2023
2022
£
£

Bank loans
103,333
-

Net obligations under finance leases and hire purchase contracts
-
65,153

103,333
65,153



19.


LOANS


Analysis of the maturity of loans is given below:


2023
2022
£
£

Amounts falling due within one year

Bank loans
51,666
-

Amounts falling due 1-2 years

Bank loans
103,333
-



154,999
-



20.


HIRE PURCHASE AND FINANCE LEASES


Minimum lease payments under hire purchase fall due as follows:

2023
2022
£
£


Within one year
65,153
78,182

Between 1-5 years
-
65,153

65,153
143,335

Page 21

 
LATTICE LABELS LIMITED
 

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

21.


FINANCIAL INSTRUMENTS

2023
2022
£
£

Financial assets


Financial assets measured at fair value through profit or loss
481,170
510,047

Financial assets that are debt instruments measured at amortised cost
3,507,415
3,191,825


Financial liabilities


Financial liabilities measured at amortised cost
(1,318,953)
(1,612,838)


Financial assets measured at fair value through profit or loss comprise cash at bank and in hand.

Financial assets that are debt instruments measured at amortised cost comprise trade debtors, amounts owed by group undertakings and other debtors.


Financial liabilities measured at amortised cost comprise trade creditors, amounts owed by group undertakings, other creditors and accruals.


22.


DEFERRED TAXATION




2023
2022


£

£






At beginning of year
(231,204)
(232,850)


Charged to profit or loss
(32,518)
1,646



At end of year
(263,722)
(231,204)

The provision for deferred taxation is made up as follows:

2023
2022
£
£


Accelerated capital allowances
(264,778)
(231,204)

Other short term timing differences
1,056
-

(263,722)
(231,204)

Page 22

 
LATTICE LABELS LIMITED
 

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

23.


PROVISIONS




Dilapidations Provision

£





At 1 January 2023
125,000



At 31 December 2023
125,000

A dilapidations provision was included in the financial statements in respect of remedial work required to reinstate the buildings when vacated.


24.


SHARE CAPITAL

2023
2022
£
£
Allotted, called up and fully paid



308,750 Ordinary Shares shares of £1.00 each
308,750
308,750



25.


RESERVES

Profit and loss account

Includes all current and prior period retained profits or losses less any dividends paid.


26.


CONTINGENT LIABILITIES

Intercompany bank guarantees have been given to the parent company, Random Factor Limited, via a fixed and floating charge over the net book value of the company's assets. The amount of this guarantee as at 31 December 2023 is £1,304,214 (2022 - £1,305,505).


27.


PENSION COMMITMENTS

The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £119,146 (2022 - £124,950). No contributions (2022 - £Nil) were Payable to the fund at the balance sheet date.

Page 23

 
LATTICE LABELS LIMITED
 

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

28.


COMMITMENTS UNDER OPERATING LEASES

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

2023
2022
£
£


Not later than 1 year
39,463
49,728

Later than 1 year and not later than 5 years
7,607
28,602

47,070
78,330


29.


RELATED PARTY TRANSACTIONS

The Company has taken advantage of the exemption from the requirement to disclose transactions with wholly owned Group companies.
Only the Directors are considered to be key management and personnel. Total remuneration in respect of these individuals is disclosed in note 8.


30.


CONTROLLING PARTY

The ultimate parent undertaking of the Company is Random factor Limited. The ultimate controlling party of the Company are the Board of Directors of Random Factor Limited by virtue of their directorships and shareholdings of the company.

Page 24