Company registration number 02167522 (England and Wales)
TRICEL (PORTSMOUTH) LIMITED
(FORMERLY ACTION PUMPS LIMITED)
FINANCIAL STATEMENTS
FOR THE YEAR ENDED
31 DECEMBER 2023
10 Bridge Street
Christchurch
Dorset
BH23 1EF
TRICEL (PORTSMOUTH) LIMITED
CONTENTS
Page
Company information
1
Strategic report
2 - 4
Directors' report
5
Directors' responsibilities statement
6
Independent auditor's report
7 - 10
Statement of comprehensive income
11
Balance sheet
12 - 13
Statement of changes in equity
14
Notes to the financial statements
15 - 26
TRICEL (PORTSMOUTH) LIMITED
COMPANY INFORMATION
- 1 -
Directors
Mr. K Dunford
Mr. R P Stack
Mr. C J Stack
Mr. M J Stack
Mr. R S Stack
Company number
02167522
Registered office
Unit 14 Arnside Road
Waterlooville
Hampshire
United Kingdom
PO7 7UP
Auditor
TC Group
10 Bridge Street
Christchurch
Dorset
BH23 1EF
TRICEL (PORTSMOUTH) LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -

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

Fair review of the business

The principal activity of the company during the year was the sales and distribution, installing and servicing of pumps. The directors do not anticipate that the principal activities of the Company will change in the foreseeable future

The company’s activities are principally based in the United Kingdom. The company earned turnover of £11,881,293 (2022: £11,381,885) with cost of sales of £9,749,873 (2022: £9,430,312). The company earned a profit after tax of £702,856 (2022: £718,009). The decrease in profitability is due to the inflationary cost environment.

At the end of the year, the company's financial position showed net assets of £5,464,386 (2022: £4,761,530). Cash at bank and on hand amounted to £255,274 (2022: £293,148).

2023 saw continued strong revenue growth driven by the continued successful execution of the company's growth strategy and positive macroeconomic conditions. Demand for the company's products remains strong, however, the sourcing and pricing key inputs remain challenging. The directors remain confident that the capital investment in the business in recent years will facilitate further growth going forward. The company is broadening its customer base and has continued to target new sales channels and markets.

The average number employed by the company in 2023 was 29 and (2022:26).

Results and Dividends

The profit after taxation for the financial year amounted to £702,856 (2022: £718,009). The directors recommended that no dividend be declared for the year.

 

TRICEL (PORTSMOUTH) LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
Principal risks and uncertainties

The directors considered that principal risks and uncertainties faced by the company fall into the following categories;

Raw material and input cost fluctuations

The company's cost base and margin continue to be challenged by upward price pressures of commodities as well as direct inputs such as energy, freight and labour. An inability to pass on these increases to customers may negatively impact profit margins. The company maintains a strong commercial focus on procurement, pricing and cost improvement initiatives to manage and mitigate this risk. The company employs experienced purchasing and commercial managers to ensure that all input costs are clearly understood and reflected in the pricing of the company's products.

Economic risk

Increasing interest rates and high inflation may have an adverse impact on served markets. These risks are managed by innovative product sourcing and strict control of costs. The risk of adverse economic effects from Brexit and the Russian invasion of Ukraine have also been considered, with the directors of the company monitoring the ongoing situation and working with key advisors in an effort to mitigate the risk

Sterling/Euro fluctuations

This exposure is being monitored and a strategy to manage this exposure is being put in place. As the company buys and sells in both sterling and euro, there is an element of a natural hedge in place which partially minimises the risk.

Key supply risk

The company continues to be challenged by global shortages and long lead times for certain materials and products. The company sources its product from a number of significant suppliers which is helping to mitigate this risk. The loss of any or a number of these suppliers or their inability to supply the necessary products could have a material impact on the company. The company endeavours to maintain close commercial relationships with its suppliers, the most significant of whom are large multi-national organisations.

Competition Risk

The directors of the company manage competition risk through close attention to customer service levels and product innovation.

Financial risk management

The company's operations expose it to a variety of financial risks that include credit risk, foreign exchange risk and commodity price risk. The company has a risk management programme in place that seeks to manage the financial exposure that is being approved by the board. The policies set out are implemented by the company's finance department and include specific guidelines to manage credit risk, foreign exchange risk and commodity price risk.

Development and performance

Business environment

The business environment continues to be competitive; however, the directors remain confident that the level of performance will be improved in the future through the execution of the strategic objectives of the company.

Strategy

The key strategic objective of the company is delivering high quality products and services to the market.

TRICEL (PORTSMOUTH) LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -
Key performance indicators

Given the straightforward nature of the business, the company's directors are of the opinion that analysis using non-financial KPIs is not necessary for an understanding of the development, performance or position of the business. Financial KPIs are included in the principal activities and review of business paragraph above.

On behalf of the board

Mr. K Dunford
Director
24 September 2024
TRICEL (PORTSMOUTH) LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 5 -

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

Principal activities

The principal activity of the company during the year was the supply, installation, and maintenance of pumps and pumping equipment, including associated control panels.

Results and dividends

The results for the year are set out on page 11.

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

Directors

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

Mr. K Dunford
Mr. R P Stack
Mr. C J Stack
Mr. M J Stack
Mr. R S Stack
Auditor

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

Statement of disclosure to auditor

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

On behalf of the board
Mr. K Dunford
Director
24 September 2024
TRICEL (PORTSMOUTH) LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 6 -

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.

TRICEL (PORTSMOUTH) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF TRICEL (PORTSMOUTH) LIMITED
- 7 -
Opinion

We have audited the financial statements of Tricel (Portsmouth) Limited (the 'company') for the year ended 31 December 2023 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity 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.

TRICEL (PORTSMOUTH) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF TRICEL (PORTSMOUTH) LIMITED
- 8 -

Opinions on other matters prescribed by the Companies Act 2006

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

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.

 

Irregularities, including fraud, are instances of non-compliance with laws and regulations. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

 

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

The objectives of our audit, in respect to fraud, are: to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses; and to respond appropriately to fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and its management.

TRICEL (PORTSMOUTH) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF TRICEL (PORTSMOUTH) LIMITED
- 9 -

Our approach was as follows:

 

 

Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Where the risk was considered to be higher, we performed audit procedures to address each identified fraud risk. These procedures included: testing manual journals; reviewing the financial statement disclosures and testing to supporting documentation; performing analytical procedures; and enquiring of management, and were designed to provide reasonable assurance that the financial statements were free from fraud or error.

 

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/Our-Work/Audit/Audit-and-assurance/Standards-and-guidance/Standards-and-guidance-for-auditors/Auditors-responsibilities-for-audit/Description-of-auditors-responsibilities-for-audit.aspx. This description forms part of our auditor’s report.

 

TRICEL (PORTSMOUTH) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF TRICEL (PORTSMOUTH) LIMITED
- 10 -

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.

Dean Pullen FCCA (Senior Statutory Auditor)
For and on behalf of TC Group
Statutory Auditor
25 September 2024
Office: Christchurch
TRICEL (PORTSMOUTH) LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
2023
2022
Notes
£
£
Turnover
3
11,881,293
11,381,885
Cost of sales
(9,749,873)
(9,430,312)
Gross profit
2,131,420
1,951,573
Administrative expenses
(1,203,460)
(1,055,760)
Profit before taxation
927,960
895,813
Tax on profit
7
(225,104)
(177,804)
Profit for the financial year
702,856
718,009

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

TRICEL (PORTSMOUTH) LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 12 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
8
166,834
146,962
Current assets
Stocks
9
436,842
583,166
Debtors
10
6,104,987
5,804,761
Cash at bank and in hand
255,274
293,148
6,797,103
6,681,075
Creditors: amounts falling due within one year
11
(1,459,840)
(2,036,191)
Net current assets
5,337,263
4,644,884
Total assets less current liabilities
5,504,097
4,791,846
Provisions for liabilities
(39,711)
(30,316)
Net assets
5,464,386
4,761,530
Capital and reserves
Called up share capital
14
100
100
Profit and loss reserves
5,464,286
4,761,430
Total equity
5,464,386
4,761,530
TRICEL (PORTSMOUTH) LIMITED
BALANCE SHEET (CONTINUED)
AS AT
31 DECEMBER 2023
31 December 2023
- 13 -
The financial statements were approved by the board of directors and authorised for issue on 24 September 2024 and are signed on its behalf by:
Mr. K Dunford
Director
Company Registration No. 02167522
The notes on pages 15 to 26 form part of these financial statements
TRICEL (PORTSMOUTH) LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 14 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 January 2022
100
4,043,421
4,043,521
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
718,009
718,009
Balance at 31 December 2022
100
4,761,430
4,761,530
Year ended 31 December 2023:
Profit and total comprehensive income for the year
-
702,856
702,856
Balance at 31 December 2023
100
5,464,286
5,464,386
The notes on pages 15 to 26 form part of these financial statements
TRICEL (PORTSMOUTH) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 15 -
1
Accounting policies
Company information

Tricel (Portsmouth) Limited is a private company limited by shares incorporated in England and Wales. The registered office is Unit 14 Arnside Road, Waterlooville, Hampshire, United Kingdom, PO7 7UP.

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 pound.

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

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

 

 

The financial statements of the company are consolidated in the financial statements of ACSTK Holdings IOM Unlimited Company which are publicly available for inspection at Ballyspillane Industrial Estate, Killarney, Republic of Ireland.

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

The turnover shown in the profit and loss account represents amounts receivable during the year exclusive of Value Added Tax.

TRICEL (PORTSMOUTH) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 16 -

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.

Revenue from the rendering of services under a contract, is recognised by reference to the stage of completion of the performance conditions contained within the contract. Where the contract outcome cannot be measured reliably, revenue is recognised only to the extent of the expenses recognised that are recoverable.

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:

Leasehold property
over the life of the lease
Plant and machinery
15% reducing balance
Fixtures and fittings
15% reducing balance
Computer equipment
33.3% straight line
Motor vehicles
25% reducing balance

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.

1.6
Stocks

Stocks are stated at the lower of cost and net realisable value. Cost comprises all costs incurred in bringing the stocks to their present location and condition. Net realisable value is assessed as the estimated selling price less costs to sell. At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its assessed net realisable value is recognised as an impairment loss.

1.7
Cash and cash equivalents

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

TRICEL (PORTSMOUTH) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 17 -
1.8
Financial instruments

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

 

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

 

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

Basic financial assets

Basic financial assets, which include debtors, loans to fellow group companies and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets

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

Impairment of financial assets

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

 

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

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.

TRICEL (PORTSMOUTH) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 18 -
Basic financial liabilities

Basic financial liabilities, including creditors 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.

1.9
Equity instruments

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

1.10
Taxation

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

Current tax

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

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date where transactions or events have occurred at that date that will result in an obligation to pay more, or a right to pay less or to receive more tax.

 

Deferred tax is measured on an undiscounted basis at the tax rates that are expected to apply in the periods in which timing differences reverse, based on tax rates and laws enacted or substantively enacted at the balance sheet date.

TRICEL (PORTSMOUTH) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 19 -
1.11
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.

1.12
Retirement benefits

The company operates a defined contribution pension scheme for employees. The assets of the scheme are held separately from those of the company. The annual contributions payable are charged to the profit and loss account.

1.13
Leases

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

1.14
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.

 

In the opinion of the directors there are no significant judgements or areas of estimation uncertainty.

 

TRICEL (PORTSMOUTH) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 20 -
3
Turnover

An analysis of the company's turnover is as follows:

2023
2022
£
£
Turnover analysed by class of business
Sales of Goods
10,209,288
9,979,048
Servicing
1,672,005
1,402,837
11,881,293
11,381,885
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
11,810,385
11,259,631
Guernsey & Ireland
70,908
122,254
11,881,293
11,381,885
4
Operating profit
2023
2022
Operating profit for the year is stated after charging:
£
£
Exchange losses
3,161
465
Research and development costs
2,326
6,938
Fees payable to the company's auditor for the audit of the company's financial statements
5,000
5,000
Depreciation of owned tangible fixed assets
54,629
53,607
Loss on disposal of tangible fixed assets
5,387
4,221
Operating lease charges
87,868
87,868
5
Employees

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

2023
2022
Number
Number
29
26
TRICEL (PORTSMOUTH) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
5
Employees
(Continued)
- 21 -

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
1,434,404
1,214,872
Social security costs
151,815
124,282
Pension costs
25,521
24,417
1,611,740
1,363,571
6
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
377,305
220,463
Company pension contributions to defined contribution schemes
3,000
3,000
380,305
223,463
Remuneration disclosed above include the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
377,305
220,463
Company pension contributions to defined contribution schemes
3,000
3,000
7
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
215,709
171,964
TRICEL (PORTSMOUTH) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
7
Taxation
2023
2022
£
£
(Continued)
- 22 -
Deferred tax
Origination and reversal of timing differences
9,395
5,840
Total tax charge
225,104
177,804

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

2023
2022
£
£
Profit before taxation
927,960
895,813
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2022: 19.00%)
231,990
170,204
Tax effect of expenses that are not deductible in determining taxable profit
3,140
3,821
Effect of change in corporation tax rate
(10,026)
-
0
Permanent capital allowances in excess of depreciation
-
0
(2,062)
Deferred tax adjustments in respect of prior years
-
0
5,841
Taxation charge for the year
225,104
177,804
TRICEL (PORTSMOUTH) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 23 -
8
Tangible fixed assets
Leasehold property
Plant and machinery
Fixtures and fittings
Computer equipment
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 January 2023
130,824
80,861
7,265
96,031
153,829
468,810
Additions
3,018
-
0
-
0
717
79,070
82,805
Disposals
-
0
-
0
-
0
-
0
(31,543)
(31,543)
At 31 December 2023
133,842
80,861
7,265
96,748
201,356
520,072
Depreciation and impairment
At 1 January 2023
107,580
42,376
6,113
76,532
89,247
321,848
Depreciation charged in the year
18,270
6,101
114
10,155
19,989
54,629
Eliminated in respect of disposals
-
0
-
0
-
0
-
0
(23,239)
(23,239)
At 31 December 2023
125,850
48,477
6,227
86,687
85,997
353,238
Carrying amount
At 31 December 2023
7,992
32,384
1,038
10,061
115,359
166,834
At 31 December 2022
23,244
38,485
1,152
19,499
64,582
146,962
9
Stocks
2023
2022
£
£
Finished goods and goods for resale
436,842
583,166
10
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
2,108,602
2,454,191
Amounts owed by group undertakings
3,953,975
3,303,331
Other debtors
3,250
3,250
Prepayments and accrued income
39,160
43,989
6,104,987
5,804,761
TRICEL (PORTSMOUTH) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
10
Debtors
(Continued)
- 24 -

Amounts owed by group undertakings, included within debtors falling due within one year, are repayable on demand, but have no formal repayment terms in place.

11
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
726,860
1,567,451
Amounts owed to group undertakings
25,632
15,631
Corporation tax
123,782
93,812
Other taxation and social security
206,949
144,202
Other creditors
13,169
5,159
Accruals and deferred income
363,448
209,936
1,459,840
2,036,191
12
Deferred taxation

Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:

Liabilities
Liabilities
2023
2022
Balances:
£
£
ACAs
39,711
30,316
2023
Movements in the year:
£
Liability at 1 January 2023
30,316
Charge to profit or loss
9,395
Liability at 31 December 2023
39,711
TRICEL (PORTSMOUTH) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 25 -
13
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
25,521
24,417

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

14
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary A shares of £1 each
60
60
60
60
Ordinary B shares of £1 each
30
30
30
30
Ordinary C shares of £1 each
10
10
10
10
100
100
100
100
15
Operating lease commitments
Lessee

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

2023
2022
£
£
Within one year
49,780
89,640
Between two and five years
68,720
33,500
In over five years
17,000
-
0
135,500
123,140
16
Related party transactions
Transactions with related parties

The company has applied the exemptions available within Section 33.1A of FRS 102 not to disclose transactions with wholly owned group undertakings.

TRICEL (PORTSMOUTH) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 26 -
17
Capital commitments

Bank loans of Tricel Holdings (UK) Limited of £5.066 million at 31 December 2023 are secured by a guarantee from Tricel (Weston) Limited (formerly Dewey Waters Limited), Tricel (Gloucester) Limited, Tricel (Lanark) Limited (formerly Nicholson Plastics Limited), Tricel (Portsmouth) Limited, Tricel Composites (NI) Limited and Tricel Composites (GB) Limited.

18
Directors' transactions

During the year the company paid rent for the use of property totalling £71,760 (2022 - £71,760) to a partnership in which one of the current directors is a member.

19
Ultimate controlling party

Tricel Holdings (UK) Limited is the parent company. Tricel Holdings (UK) Limited's ultimate parent undertaking is ACSTK Holdings IOM Unlimited Company, incorporated in the Isle of Man, whose registered office is Ballyspillane Industrial Estate, Killarney, Co Kerry, ROI.

2023-12-312023-01-01falseCCH SoftwareCCH Accounts Production 2024.210Mr. K DunfordMr. R P StackMr. C J StackMr. M J StackMr. R S Stackfalsefalse021675222023-01-012023-12-3102167522bus:Director12023-01-012023-12-3102167522bus:Director22023-01-012023-12-3102167522bus:Director32023-01-012023-12-3102167522bus:Director42023-01-012023-12-3102167522bus:Director52023-01-012023-12-3102167522bus:RegisteredOffice2023-01-012023-12-31021675222023-12-31021675222022-01-012022-12-3102167522core:RetainedEarningsAccumulatedLosses2022-01-012022-12-3102167522core:RetainedEarningsAccumulatedLosses2023-01-012023-12-31021675222022-12-3102167522core:LandBuildingscore:LeasedAssetsHeldAsLessee2023-12-3102167522core:PlantMachinery2023-12-3102167522core:FurnitureFittings2023-12-3102167522core:ComputerEquipment2023-12-3102167522core:MotorVehicles2023-12-3102167522core:LandBuildingscore:LeasedAssetsHeldAsLessee2022-12-3102167522core:PlantMachinery2022-12-3102167522core:FurnitureFittings2022-12-3102167522core:ComputerEquipment2022-12-3102167522core:MotorVehicles2022-12-3102167522core:CurrentFinancialInstrumentscore:WithinOneYear2023-12-3102167522core:CurrentFinancialInstrumentscore:WithinOneYear2022-12-3102167522core:CurrentFinancialInstruments2023-12-3102167522core:CurrentFinancialInstruments2022-12-3102167522core:ShareCapital2023-12-3102167522core:ShareCapital2022-12-3102167522core:RetainedEarningsAccumulatedLosses2023-12-3102167522core:RetainedEarningsAccumulatedLosses2022-12-3102167522core:ShareCapitalOrdinaryShares2023-12-3102167522core:ShareCapitalOrdinaryShares2022-12-3102167522core:LandBuildingscore:LongLeaseholdAssets2023-01-012023-12-3102167522core:PlantMachinery2023-01-012023-12-3102167522core:FurnitureFittings2023-01-012023-12-3102167522core:ComputerEquipment2023-01-012023-12-3102167522core:MotorVehicles2023-01-012023-12-3102167522core:UKTax2023-01-012023-12-3102167522core:UKTax2022-01-012022-12-3102167522core:LandBuildingscore:LeasedAssetsHeldAsLessee2022-12-3102167522core:PlantMachinery2022-12-3102167522core:FurnitureFittings2022-12-3102167522core:ComputerEquipment2022-12-3102167522core:MotorVehicles2022-12-31021675222022-12-3102167522core:LandBuildingscore:LeasedAssetsHeldAsLessee2023-01-012023-12-3102167522core:WithinOneYear2023-12-3102167522core:WithinOneYear2022-12-3102167522core:BetweenTwoFiveYears2023-12-3102167522core:BetweenTwoFiveYears2022-12-3102167522core:MoreThanFiveYears2023-12-3102167522core:MoreThanFiveYears2022-12-3102167522bus:PrivateLimitedCompanyLtd2023-01-012023-12-3102167522bus:FRS1022023-01-012023-12-3102167522bus:Audited2023-01-012023-12-3102167522bus:FullAccounts2023-01-012023-12-31xbrli:purexbrli:sharesiso4217:GBP