Company registration number 01627322 (England and Wales)
MELBA PRODUCTS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
MELBA PRODUCTS LIMITED
COMPANY INFORMATION
Directors
Mr P L Harrison
Mr J A Bowdler
Mr J G Dawson
Mr P R Hyman
Mr M S Todd
Secretary
Mr P L Harrison
Company number
01627322
Registered office
Stubbins Vale Mill
Stubbins Vale Road
Ramsbottom
Lancashire
England
BL0 0NT
Auditor
Azets Audit Services
Alpha House
4 Greek Street
Stockport
United Kingdom
SK3 8AB
MELBA PRODUCTS 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
MELBA PRODUCTS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 1 -

The directors present the strategic report for the year ended 31 March 2024.

Review of the business

The company's key financial and other performance indicators during the year were as follows:

 

 Particulars                                                                                             

Unit

2024

2023

 

 

 

 

Cash inflow(outflow) before financing                                                                                                                        

 

£M

 

2.67

 

2.34

EBITDA

£M

6.37

6.14

Return on capital employed

%

18.7

22.62

Principal risks and uncertainties

The Company considers the principal risks to its financial performance to be increased raw material prices from suppliers and a general downturn in construction work by utilitiy companies and civil engineering contractors. The Company has limited exposure to foreign currencies and generally contracts forward to mitigate the sudden movement in exchange rates.

 

The business's principal financial instruments comprise bank facilities, trade debtors and creditors and finance lease agreements. The main purpose of these instruments is to finance the continuing business operations.

 

Liquidity risk is managed by maintaining a balance between the continuity of funding and flexibility through the use of factoring facilities at competitve floating rates of interest. Loans from financial institutions have fixed interest rates and monthly repayments. The business manages liquidity risk in this respect and in respect of finance leased assets by ensuring that there are sufficient funds available to meet amounts due.

 

Trade debtors are managed in respect of both credit and cash flow risk by policies concerning the credit offered to customers and regular monitoring of amounts outstanding in respect of ageing and credit limits. The amounts presented in the balance sheet are net of allowances for doubtful debts.

On behalf of the board

Mr P L Harrison
Director
25 September 2024
MELBA PRODUCTS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 2 -

The directors present their annual report and financial statements for the year ended 31 March 2024.

Principal activities

The principal activity of the company continues to be the manufacture of plastic moulded products primarily for the traffic management market, but also a range of trade mouldings for other markets at home and abroad.

Results and dividends

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

Ordinary dividends were paid amounting to £100,000. The directors do not recommend payment of a further dividend.

Directors

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

Mr P L Harrison
Mr J A Bowdler
Mr J G Dawson
Mr P R Hyman
Mr M S Todd
Research and development

The Company will continue its policy of investment in research and development in order to retain a competitive position in the market.

Future developments

The directors remain optimistic for the future. Order book activities are reviewed to ensure that future planned performance will continue. The directors aim to maintain a strategy to continue to improve performance and drive the business through targeted growth opportunities.

 

Since the year end the company has acquired a further site in Rossendale, Lancashire with which it aims to continue its expansion in future years.

Auditor

In accordance with the company's articles, a resolution proposing that Azets Audit Services be reappointed as auditor of the company will be put at a General Meeting.

Strategic Report

The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of financial instruments.

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.

MELBA PRODUCTS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 3 -
On behalf of the board
Mr P L Harrison
Director
25 September 2024
MELBA PRODUCTS LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MARCH 2024
- 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.

MELBA PRODUCTS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF MELBA PRODUCTS LIMITED
- 5 -
Opinion

We have audited the financial statements of Melba Products Limited (the 'company') for the year ended 31 March 2024 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:

MELBA PRODUCTS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF MELBA PRODUCTS 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.

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.

MELBA PRODUCTS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF MELBA PRODUCTS LIMITED
- 7 -

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.

 

We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework.  Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.  This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.

 

In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:

 

 

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 of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in 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.

Helen Davies
Senior Statutory Auditor
For and on behalf of Azets Audit Services
25 September 2024
Chartered Accountants
Statutory Auditor
Alpha House
4 Greek Street
Stockport
United Kingdom
SK3 8AB
MELBA PRODUCTS LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2024
- 8 -
2024
2023
Notes
£
£
Turnover
3
29,603,615
30,111,338
Cost of sales
(13,433,470)
(15,340,072)
Gross profit
16,170,145
14,771,266
Administrative expenses
(11,532,068)
(10,010,244)
Other operating income
88,183
-
0
Operating profit
4
4,726,260
4,761,022
Interest receivable and similar income
7
41,138
3,433
Interest payable and similar expenses
8
(86,682)
(158,967)
Profit before taxation
4,680,716
4,605,488
Tax on profit
9
(1,180,279)
(967,147)
Profit for the financial year
3,500,437
3,638,341

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

MELBA PRODUCTS LIMITED
BALANCE SHEET
AS AT
31 MARCH 2024
31 March 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
11
15,039,852
14,898,569
Current assets
Stocks
13
2,930,769
3,311,531
Debtors
14
9,602,634
8,967,554
Cash at bank and in hand
3,253,946
1,717,166
15,787,349
13,996,251
Creditors: amounts falling due within one year
15
(5,665,607)
(5,485,961)
Net current assets
10,121,742
8,510,290
Total assets less current liabilities
25,161,594
23,408,859
Creditors: amounts falling due after more than one year
16
(510,429)
(2,299,869)
Provisions for liabilities
Deferred tax liability
19
2,487,223
2,345,485
(2,487,223)
(2,345,485)
Net assets
22,163,942
18,763,505
Capital and reserves
Called up share capital
22
16,835
16,835
Share premium account
380,000
380,000
Capital redemption reserve
33,165
33,165
Profit and loss reserves
21,733,942
18,333,505
Total equity
22,163,942
18,763,505
The financial statements were approved by the board of directors and authorised for issue on 25 September 2024 and are signed on its behalf by:
Mr P L Harrison
Director
Company Registration No. 01627322
MELBA PRODUCTS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
- 10 -
Share capital
Share premium account
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 April 2022
16,835
380,000
33,165
15,025,664
15,455,664
Year ended 31 March 2023:
Profit and total comprehensive income for the year
-
-
-
3,638,341
3,638,341
Dividends
10
-
-
-
(330,500)
(330,500)
Balance at 31 March 2023
16,835
380,000
33,165
18,333,505
18,763,505
Year ended 31 March 2024:
Profit and total comprehensive income for the year
-
-
-
3,500,437
3,500,437
Dividends
10
-
-
-
(100,000)
(100,000)
Balance at 31 March 2024
16,835
380,000
33,165
21,733,942
22,163,942
MELBA PRODUCTS LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2024
- 11 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
27
4,959,884
3,962,699
Interest paid
(86,682)
(158,967)
Income taxes paid
(450,000)
(349,370)
Net cash inflow from operating activities
4,423,202
3,454,362
Investing activities
Purchase of tangible fixed assets
(1,793,664)
(1,119,872)
Proceeds from disposal of tangible fixed assets
3,680
-
Interest received
41,138
3,433
Net cash used in investing activities
(1,748,846)
(1,116,439)
Financing activities
Repayment of bank loans
(187,500)
(174,725)
Payment of finance leases obligations
(850,076)
(1,042,676)
Dividends paid
(100,000)
(330,500)
Net cash used in financing activities
(1,137,576)
(1,547,901)
Net increase in cash and cash equivalents
1,536,780
790,022
Cash and cash equivalents at beginning of year
1,717,166
927,144
Cash and cash equivalents at end of year
3,253,946
1,717,166
MELBA PRODUCTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
- 12 -
1
Accounting policies
Company information

Melba Products Limited is a private company limited by shares incorporated in England and Wales. The registered office is Stubbins Vale Mill, Stubbins Vale Road, Ramsbottom, Lancashire, England, BL0 0NT.

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
Research and development expenditure

Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.

1.5
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:

Freehold property
2% straight line basis
Plant and equipment
6.67% straight line basis
Fixtures and fittings
10-25% on net book value
Motor vehicles
25% on net book value

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.

MELBA PRODUCTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 13 -
1.6
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).

1.7
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.

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.

1.8
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.

1.9
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.

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.

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.

MELBA PRODUCTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 14 -
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.

Derecognition of financial liabilities

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

1.10
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.

1.11
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.

MELBA PRODUCTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 15 -
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.

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

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

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

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 leases 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.

MELBA PRODUCTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 16 -
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.

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.

The directors consider there to be no key sources of estimation uncertainty.

3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by geographical market
UK
23,363,852
24,239,773
Rest of the World
6,239,763
5,871,565
29,603,615
30,111,338
2024
2023
£
£
Other revenue
Interest income
41,138
3,433
Grants received
7,800
-
MELBA PRODUCTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 17 -
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange losses/(gains)
45,545
(25,238)
Research and development costs
54,593
54,389
Government grants
(7,800)
-
Fees payable to the company's auditor for the audit of the company's financial statements
30,250
27,500
Depreciation of owned tangible fixed assets
1,445,363
1,085,441
Depreciation of tangible fixed assets held under finance leases
197,193
291,563
Loss on disposal of tangible fixed assets
6,145
-
Operating lease charges
67,460
128,030
5
Employees

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

2024
2023
Number
Number
Production
175
177
Administration and support
34
31
Other departments
7
7
Total
216
215

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
7,939,855
6,581,376
Social security costs
841,174
666,149
Pension costs
159,363
149,798
8,940,392
7,397,323
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
722,019
417,030
Company pension contributions to defined contribution schemes
54,176
46,676
776,195
463,706
MELBA PRODUCTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
6
Directors' remuneration
(Continued)
- 18 -
Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
443,800
161,200
Company pension contributions to defined contribution schemes
30,000
30,000
7
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
41,138
3,433
2024
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
41,138
3,433
8
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
33,662
61,853
Interest on invoice finance arrangements
(26,086)
21,481
7,576
83,334
Other finance costs:
Interest on finance leases and hire purchase contracts
79,106
75,633
86,682
158,967
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
1,038,541
378,832
Deferred tax
Origination and reversal of timing differences
141,738
588,315
Total tax charge
1,180,279
967,147
MELBA PRODUCTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
9
Taxation
(Continued)
- 19 -

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:

2024
2023
£
£
Profit before taxation
4,680,716
4,605,488
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
1,170,179
875,043
Tax effect of expenses that are not deductible in determining taxable profit
34,551
1,781
Tax effect of utilisation of tax losses not previously recognised
-
0
(362,441)
Permanent capital allowances in excess of depreciation
(166,189)
(135,551)
Deferred tax
141,738
588,315
Taxation charge for the year
1,180,279
967,147
10
Dividends
2024
2023
£
£
Final paid
100,000
330,500
11
Tangible fixed assets
Freehold property
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 April 2023
2,897,025
21,832,766
258,470
69,469
25,057,730
Additions
84,947
1,582,700
-
0
126,017
1,793,664
Disposals
-
0
(2,668,203)
-
0
(45,899)
(2,714,102)
At 31 March 2024
2,981,972
20,747,263
258,470
149,587
24,137,292
Depreciation and impairment
At 1 April 2023
288,665
9,694,695
122,867
52,934
10,159,161
Depreciation charged in the year
38,794
1,580,908
12,175
10,679
1,642,556
Eliminated in respect of disposals
-
0
(2,668,203)
-
0
(36,074)
(2,704,277)
At 31 March 2024
327,459
8,607,400
135,042
27,539
9,097,440
Carrying amount
At 31 March 2024
2,654,513
12,139,863
123,428
122,048
15,039,852
At 31 March 2023
2,608,360
12,138,071
135,603
16,535
14,898,569
MELBA PRODUCTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
11
Tangible fixed assets
(Continued)
- 20 -

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

2024
2023
£
£
Plant and equipment
2,117,968
3,187,300
12
Subsidiaries

Details of the company's subsidiaries at 31 March 2024 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Indirect
MelbaSwintex Limited
UK
Ordinary shares
100.00
-
Swintex Limited
UK
Ordinary shares
0
100.00
13
Stocks
2024
2023
£
£
Raw materials and consumables
1,962,993
1,995,108
Work in progress
374,963
756,590
Finished goods and goods for resale
592,813
559,833
2,930,769
3,311,531
14
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
5,697,974
6,520,682
Amounts owed by group undertakings
1,910,997
1,910,997
Other debtors
1,573,643
522,403
Prepayments and accrued income
420,020
13,472
9,602,634
8,967,554

Amounts owed by group undertakings are interest free and repayable on demand.

MELBA PRODUCTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 21 -
15
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans
17
1,057,722
187,500
Obligations under finance leases
18
718,928
837,286
Trade creditors
1,112,417
1,844,982
Amounts owed to group undertakings
645,671
645,670
Corporation tax
842,888
254,347
Other taxation and social security
397,760
689,874
Government grants
20
69,099
76,899
Other creditors
133,048
218,605
Accruals and deferred income
688,074
730,798
5,665,607
5,485,961

There are fixed and floating charges over all assets in relation to invoice financing.

 

Obligations under finance leases in notes 15 and 16 are secured against plant and machinery shown in note 11.

 

The bank loan relating to the Commercial Mortgage Account has subsequently been settled in full and closed after year.

16
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Bank loans and overdrafts
17
-
0
1,057,722
Obligations under finance leases
18
510,429
1,242,147
510,429
2,299,869

Obligations under finance leases in notes 15 and 16 are secured against plant and machinery shown in note 11.

Amounts included above which fall due after five years are as follows:
Payable by instalments
-
120,222
17
Loans and overdrafts
2024
2023
£
£
Bank loans
1,057,722
1,245,222
Payable within one year
1,057,722
187,500
Payable after one year
-
0
1,057,722
MELBA PRODUCTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
17
Loans and overdrafts
(Continued)
- 22 -

The long-term loans are secured by fixed charges over the freehold propery shown in note 11.

18
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
718,928
837,286
In two to five years
510,429
1,242,147
1,229,357
2,079,433

Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 5 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

19
Deferred taxation

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

Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
2,523,717
2,347,830
Short term timing differences
(36,494)
(2,345)
2,487,223
2,345,485
2024
Movements in the year:
£
Liability at 1 April 2023
2,345,485
Charge to profit or loss
141,738
Liability at 31 March 2024
2,487,223

The deferred tax liability set out above is expected to reverse within 12 months and relates to accelerated capital allowances that are expected to mature within the same period.

20
Government grants
2024
2023
£
£
Arising from government grants
69,099
76,899
MELBA PRODUCTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 23 -
21
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
159,363
149,798

The company operates three 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.

22
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary share capital of £1 each
16,835
16,835
16,835
16,835
23
Capital commitments

Amounts contracted for but not provided in the financial statements:

2024
2023
£
£
Acquisition of tangible fixed assets
890,000
-

At the year end the company had entered into a contract to purchase a moulding machine.

24
Events after the reporting date

After the reporting date Melba has purchased land valued at £2,000,000 to support expansion of the business.

 

The bank loan relating to the Commercial Mortgage Account has subsequently been settled in full and closed after year.

25
Related party transactions

At 31 March 2024 Melba Products Limited owed £100 (2023 - £100) to Swintex Limited, a subsidiary of the company.

 

During the year dividends of £100,000 (2023 - £330,500) were paid to Melba Products Holdings Limited, the parent company of Melba Products Limited. At 31 March 2024 Melba Products Holdings Limited were owed £645,671 (2023 - £645,670).

 

Melba Group Limited is the ultimate parent company of Melba Products Limited. At 31 March 2024 Melba Group Limited owed £1,910,997 (2023 - £1,910,997).

 

At 31 March 2024, balances of £2,782 (2023 - £500,000) were owed by close relations of a director, £455,176 (2023 - £279,715) by a company under the control of a close relation of a director and £26,267 (2023 - £11,447) by a company under the control of directors.

 

During the period ended 31 March 2024, total sales of £1,359,556 (2023 - £1,056,314) were made to a company under the control of a close relation of a director, and £277,874 (2023 - £237,644) to a company under the control of directors.

MELBA PRODUCTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 24 -
26
Ultimate controlling party

The company is a wholly owned subsidiary of Melba Products Holdings Limited.

 

The company's immediate parent is Melba Products Holdings Limited, incorporated in England & Wales.

 

The ultimate parent is Melba Group Limited, incorporated in England & Wales.

 

The most senior parent producing publically available financial statements is Melba Group Limited.

 

These financial statements are available upon request from Companies House, Crown Way, Maindy, Cardiff, CF14 3UZ.

27
Cash generated from operations
2024
2023
£
£
Profit for the year after tax
3,500,437
3,638,341
Adjustments for:
Taxation charged
1,180,279
967,147
Finance costs
86,682
158,967
Investment income
(41,138)
(3,433)
Loss on disposal of tangible fixed assets
6,145
-
Depreciation and impairment of tangible fixed assets
1,642,556
1,377,004
Movements in working capital:
Decrease in stocks
380,762
176,018
Increase in debtors
(635,080)
(831,239)
Decrease in creditors
(1,152,959)
(1,512,306)
Decrease in deferred income
(7,800)
(7,800)
Cash generated from operations
4,959,884
3,962,699
28
Analysis of changes in net funds/(debt)
1 April 2023
Cash flows
31 March 2024
£
£
£
Cash at bank and in hand
1,717,166
1,536,780
3,253,946
Borrowings excluding overdrafts
(1,245,222)
187,500
(1,057,722)
Obligations under finance leases
(2,079,433)
850,076
(1,229,357)
(1,607,489)
2,574,356
966,867
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