Company registration number 04180283 (England and Wales)
LANTOR (UK) LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
LANTOR (UK) LIMITED
COMPANY INFORMATION
Directors
Mr D P Lamb
Mr A M Brownlow
Mr S Hellyar
Company number
04180283
Registered office
Sunnyside Business Centre
Adelaide Street
Lancashire
BL3 3NY
Auditor
Pierce C A Limited
Mentor House
Ainsworth Street
Blackburn
Lancashire
BB1 6AY
Business address
BFF Business Park
Bath Road
Bridgwater
Somerset
TA6 4NZ
Bankers
Lloyds Bank Plc
Canons House
Canons Way
Bristol
BS1 5LL
Solicitors
Squire Patton Boggs (UK) LLP
Trinity Court
16 John Dalton Street
Manchester
M60 8HS
LANTOR (UK) LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Profit and loss account
8
Balance sheet
9
Notes to the financial statements
10 - 23
LANTOR (UK) LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 1 -

The directors are pleased to present the strategic report and financial statements for the year ended 31 March 2024.

Review of the business

The principal activity of the company is to provide nonwoven fabrics which are smarter and technically superior fabrics to other fabrics available in the market. The business specialises in complex problem solving, by developing, modifying, and refining bespoke products for diverse applications.

The Company's products serve applications in the industrial market, including face masks, protection/CBRN and filtration.

Similarly, the Company's products for the medical markets specialise in the manufacture of sophisticated products in bandages and advanced wound care.

During the year part of Lantor (UK) Limited was relocated and integrated with the BFF Nonwovens Limited site in Bridgwater. This is a strategic move to streamline the business and significantly reduce the indirect cost base of the business to improve profitability and enable us to deliver an enhanced customer experience for our customers.

Financial Highlights

The results set out in the profit and loss account show that the turnover for the year ended 31 March 2024 was £8.7 million (2023: £10.9 million). The turnover reduction during the year was driven by a large contract to supply activated carbon fabric in CBRN suits/undergarments, during the previous year that was not repeated in the current year.

Earnings before exceptional costs, interest, tax, depreciation, and amortisation (EBITDA) were £1.92 million (2023: £2.06 million) reflecting a strong operational performance, and managed cost control.

Financial Risk Management

This is undertaken at a Group level to minimise risk for each individual company.

Financial Key Performance Indicators

Given the nature of the business the company’s directors believe key performance indicators are important. The company uses several indicators to monitor and improve the development, performance, and position of the business.

Some non-financial indicators are Customer on time delivery, approved suppliers monitored through our Quality management system and effective performance.

Principal risks and uncertainties

The strength of the business combined with the resilience of our teams have enabled us to deliver a strong performance during challenging times.

The business has robust systems in place and continues to be flexible by working closely with internal and external stakeholders to ensure that the business is able to react to any changes.

Our enterprise focus stays un-wavered on perpetually maximising the sustainable benefits for people and the planet while never letting profit keep us from making a positive sustainable impact.

Through our strategic double materiality approach and several ESG programmes, which are recognised to be the best in class by our business partners, we are constantly lowering our impact on the environment. All our electricity comes from 100% renewable resources. We have introduced an industry-leading unified waste management programme which has allowed us to achieve zero waste to landfill from December 2022.

We do so in active collaboration with the wider industry, customers, suppliers, and all major stakeholders through sustainable innovation to keep enabling the Circular Economy. Further details on the combined Group's sustainability journey are detailed in the parent company accounts, Nonwovenn Ltd.

LANTOR (UK) LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 2 -

On behalf of the board

Mr D P Lamb
Director
30 September 2024
LANTOR (UK) LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 3 -

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

Principal activities

The principal activity of the company is that of the development, manufacture and sale of medical wound dressings and other specialist industrial fabrics.

Directors

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

Mr D P Lamb
Mr A M Brownlow
Mr S Hellyar
Results and dividends

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

The directors do not recommend payment of a final dividend.
Auditor

In accordance with the company's articles, a resolution proposing that Pierce C.A. Limited 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 D P Lamb
Director
30 September 2024
LANTOR (UK) 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.

LANTOR (UK) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF LANTOR (UK) LIMITED
- 5 -
Opinion

We have audited the financial statements of Lantor (UK) Limited (the 'company') for the year ended 31 March 2024 which comprise the profit and loss account, the balance sheet 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:

LANTOR (UK) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF LANTOR (UK) 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.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

In identifying and assessing risks of material misstatements in respect of irregularities (including fraud) we considered the following:

 

We have also performed specific procedures to consider the risk of management override and of fraud arising in significant transactions outside the normal course of business.

We did not identify a material risk of non-compliance with laws and regulations or of fraud.

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.

LANTOR (UK) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF LANTOR (UK) LIMITED
- 7 -

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.

Linda Wilkinson (Senior Statutory Auditor)
For and on behalf of Pierce C A Limited
30 September 2024
Statutory Auditor
Mentor House
Ainsworth Street
Blackburn
Lancashire
BB1 6AY
LANTOR (UK) LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2024
- 8 -
2024
2023
Notes
£
£
Turnover
3
8,689,894
10,900,349
Cost of sales
(6,185,008)
(7,208,599)
Gross profit
2,504,886
3,691,750
Administrative expenses
(1,238,434)
(1,824,001)
Other operating income
24,816
10,481
Exceptional operating expenditure
4
(964,049)
(288,133)
Operating profit
5
327,219
1,590,097
Interest receivable and similar income
7
4,279
-
Interest payable and similar expenses
8
(2)
-
Profit before taxation
331,496
1,590,097
Taxation
9
(47,409)
165,767
Profit for the financial year
284,087
1,755,864

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

LANTOR (UK) LIMITED
BALANCE SHEET
AS AT
31 MARCH 2024
31 March 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Intangible assets
10
105,534
-
0
Tangible assets
11
2,001,965
2,308,030
2,107,499
2,308,030
Current assets
Stocks
12
423,371
1,940,143
Debtors
13
3,081,853
2,943,621
Cash at bank and in hand
252,106
175,859
3,757,330
5,059,623
Creditors: amounts falling due within one year
14
(1,259,487)
(2,294,195)
Net current assets
2,497,843
2,765,428
Total assets less current liabilities
4,605,342
5,073,458
Provisions for liabilities
Provisions
15
104,704
904,316
Deferred tax liability
16
313,541
266,132
(418,245)
(1,170,448)
Net assets
4,187,097
3,903,010
Capital and reserves
Called up share capital
18
1,500,091
1,500,091
Share premium account
3,543,035
3,543,035
Profit and loss reserves
(856,029)
(1,140,116)
Total equity
4,187,097
3,903,010
The financial statements were approved by the board of directors and authorised for issue on 30 September 2024 and are signed on its behalf by:
Mr D P Lamb
Director
Company registration number 04180283 (England and Wales)
LANTOR (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
- 10 -
1
Accounting policies
Company information

Lantor (UK) Limited is a private company limited by shares incorporated in England and Wales. The registered office is Sunnyside Business Centre, Adelaide Street, Bolton, Lancashire, BL3 3NY.

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.

The financial statements of the company are consolidated in the financial statements of Nonwovenn Ltd. These consolidated financial statements are available from its registered office: BFF Business Park, Bath Road, Bridgwater, Somerset, TA6 4NZ.

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.

 

The group has a revolving credit facility available to finance the trading operations and ongoing capital investment of its trading subsidiaries. The directors are not aware of any reasons why this facility will not be maintained.

 

As a result the directors have continued to adopt the going concern basis in preparing the financial statements.

1.3
Turnover
Turnover represents amounts receivable for goods and services net of VAT and trade discounts.

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 to the profit and loss account in the year in which it is incurred. Development expenditure is written off in the same way unless the directors are satisfied as to the technical, commercial and financial viability of individual projects. In this situation, the expenditure is deferred and amortised over the period during which the company can expect to benefit.

 

1.5
Intangible fixed assets - goodwill
Acquired goodwill is written off in equal annual instalments over its estimated useful economic life of five years.
LANTOR (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 11 -
1.6
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

 

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

Research expenditure is written off to the profit and loss account in the year in which it is incurred. Development expenditure is written off in the same way unless the directors are satisfied as to the technical, commercial and financial viability of individual projects. In this situation, the expenditure is deferred and amortised over the period during which the company is expected to benefit.                        

Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives.

Development Costs
10% straight line
1.7
Tangible fixed assets

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

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

Leasehold land and buildings - Mill
Reducing balance over period of lease/Straight line with 0%/10% residual value
Leasehold land and buildings - Other
Period of lease
Plant and machinery
10% Straight line with 10%/40% residual value
Fixtures, fittings & equipment
33% Straight line
Motor vehicles
33% Straight Line with 25% residual 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.

1.8
Stocks

Stock is valued at the lower of cost and net realisable value.

 

Cost represents all expenditure incurred in bringing stock to its present condition and location at the accounting date.

 

Net realisable value is based on the estimated selling prices less further costs expected to be incurred to completion and disposal.

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.

1.9
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.

LANTOR (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 12 -
1.10
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.

Other financial assets

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

Impairment of financial assets

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

 

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

 

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

Derecognition of financial assets

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

Classification of financial liabilities

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

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

Other financial liabilities

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

 

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

Derecognition of financial liabilities

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

1.11
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.

1.12
Derivatives

Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to fair value at each reporting end date. The resulting gain or loss is recognised in profit or loss immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the nature of the hedge relationship.

 

A derivative with a positive fair value is recognised as a financial asset, whereas a derivative with a negative fair value is recognised as a financial liability.

LANTOR (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 14 -
1.13
Taxation

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

Current tax

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

Deferred tax

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

 

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.

1.14
Provisions

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

 

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

1.15
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.

1.16
Retirement benefits

The company operates a defined contribution scheme for the benefit of its employees. Contributions payable are charged to the profit and loss account in the year they are payable.

1.17
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.

LANTOR (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 15 -
1.18
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.

1.19

Research and development

Research expenditure is written off to the profit and loss account in the year in which it is incurred. Development expenditure is written off in the same way unless the directors are satisfied as to the technical, commercial and financial viability of individual projects. In this situation, the expenditure is deferred and amortised over the period during which the company is expected to benefit.

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.

3
Turnover and other revenue

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

2024
2023
£
£
Turnover analysed by class of business
From principal activity
8,689,894
10,900,349
2024
2023
£
£
Other revenue
Interest income
4,279
-
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
5,729,697
8,424,758
Rest of Europe
947,763
879,414
North and South America
731,640
1,034,260
Rest of World
1,280,794
561,917
8,689,894
10,900,349
LANTOR (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 16 -
4
Exceptional operating expenditure
2024
2023
£
£
Exceptional expenditure
964,049
288,133

During a previous year the decision was taken to close the company's manufacturing facility at Rumsworth Mill, Bolton and to transfer production to both the site of the registered office in Bolton and its sister company's site in Bridgwater.

 

The exceptional costs relate to the above restructuring and dilapidation/exit expenses on the Mill (see Note 16) and to the associated legal and professional fees.

 

The total costs disclosed above have been charged in arriving at the operating profit for the current year and the previous year.

5
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange losses
24,778
51,461
Fees payable to the company's auditor for the audit of the company's financial statements
9,295
11,825
Depreciation of owned tangible fixed assets
645,139
203,521
Profit on disposal of tangible fixed assets
(18,707)
(24,508)
Operating lease charges
99,227
195,204

 

6
Employees

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

2024
2023
Number
Number
Production and engineering
27
38
Sales and administration
15
24
Total
42
62
LANTOR (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
6
Employees
(Continued)
- 17 -

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
1,208,059
1,814,389
Social security costs
163,957
175,821
Pension costs
51,021
64,677
1,423,037
2,054,887
7
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
4,279
-
0

Investment income includes the following:

Interest on financial assets not measured at fair value through profit or loss
4,279
-
0
8
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
2
-
LANTOR (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 18 -
9
Taxation
2024
2023
£
£
Deferred tax
Origination and reversal of timing differences
47,409
203,233
Tax losses carried forward
-
0
(369,000)
Total deferred tax
47,409
(165,767)

The actual charge/(credit) 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
331,496
1,590,097
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
82,874
302,118
Tax effect of expenses that are not deductible in determining taxable profit
60,789
3,737
Tax effect of income not taxable in determining taxable profit
(2,878)
-
0
Group relief
15,937
-
0
Permanent capital allowances in excess of depreciation
18,866
(1,209)
Depreciation on assets not qualifying for tax allowances
79,154
-
0
Research and development tax credit
(51,576)
(67,999)
Other non-reversing timing differences
(151,080)
-
0
Other permanent differences
(4,677)
(4,657)
Effect of changes in estimated future tax rates
-
0
(39,784)
Utilisation of losses brought forward
-
0
(77,533)
Deferred tax on future utilisation of accumulated tax losses
-
0
(280,440)
Taxation charge/(credit) for the year
47,409
(165,767)

The company has estimated losses of £4,147,691 (2023: £4,147,691) available for carry forward against future trading profits.

 

 

LANTOR (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 19 -
10
Intangible fixed assets
Goodwill
Patents
Development Costs
Total
£
£
£
£
Cost
At 1 April 2023
10,000
24,024
650,318
684,342
Additions - internally developed
-
0
-
0
105,534
105,534
At 31 March 2024
10,000
24,024
755,852
789,876
Amortisation and impairment
At 1 April 2023 and 31 March 2024
10,000
24,024
650,318
684,342
Carrying amount
At 31 March 2024
-
0
-
0
105,534
105,534
At 31 March 2023
-
0
-
0
-
0
-
0
11
Tangible fixed assets
Leasehold land and buildings - Mill
Leasehold land and buildings - Other
Plant and machinery
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 April 2023
687,858
1,040,976
4,983,489
275,137
9,500
6,996,960
Additions
-
0
35,669
300,315
1,715
3,750
341,449
Disposals
(687,858)
-
0
(2,370)
-
0
(9,500)
(699,728)
At 31 March 2024
-
0
1,076,645
5,281,434
276,852
3,750
6,638,681
Depreciation and impairment
At 1 April 2023
371,243
883,903
3,184,404
242,591
6,789
4,688,930
Depreciation charged in the year
316,615
13,609
289,789
25,048
78
645,139
Eliminated in respect of disposals
(687,858)
-
0
(2,706)
-
0
(6,789)
(697,353)
At 31 March 2024
-
0
897,512
3,471,487
267,639
78
4,636,716
Carrying amount
At 31 March 2024
-
0
179,133
1,809,947
9,213
3,672
2,001,965
At 31 March 2023
316,615
157,073
1,799,085
32,546
2,711
2,308,030
LANTOR (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 20 -
12
Stocks
2024
2023
£
£
Raw materials and consumables
210,421
1,213,072
Work in progress
43,096
274,512
Finished goods and goods for resale
169,854
452,559
423,371
1,940,143
13
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
2,360,399
1,981,267
Prepayments and accrued income
46,454
287,354
2,406,853
2,268,621
2024
2023
Amounts falling due after more than one year:
£
£
Deferred tax asset (note 16)
675,000
675,000
Total debtors
3,081,853
2,943,621
14
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
377,681
1,303,398
Amounts owed to group undertakings
21,043
110,774
Taxation and social security
186,642
346,536
Other creditors
563,824
59,319
Accruals and deferred income
110,297
474,168
1,259,487
2,294,195
LANTOR (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 21 -
15
Provisions for liabilities
2024
2023
£
£
Restructure provision
104,704
904,316
Movements on provisions:
Restructure provision
£
At 1 April 2023
904,316
Utilisation of provision
(799,612)
At 31 March 2024
104,704

The above provision relates to the termination costs estimated to be incurred following the decision taken in a previous year to close one of the company's manufacturing facilities in Bolton. The costs provided for relate to the estimated dilapidation expenses arising from vacating the leased property and the estimated costs of terminating the employment of the majority of the company's current employees.

 

The remaining provision is expected to be released over the next six to twelve months.

 

LANTOR (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 22 -
16
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
Assets
Assets
2024
2023
2024
2023
Balances:
£
£
£
£
Accelerated capital allowances
313,541
266,132
-
-
Tax losses
-
-
675,000
675,000
313,541
266,132
675,000
675,000
2024
Movements in the year:
£
Asset at 1 April 2023
(408,868)
Charge to profit or loss
47,409
Asset at 31 March 2024
(361,459)

The deferred tax asset set out above is expected to reverse within the next two to five years and relates to the utilisation of tax losses against future expected profits of the same period. The deferred tax liability set out above is expected to reverse within five years and relates to accelerated capital allowances that are expected to mature within the same period.

17
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
51,021
64,677

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.

18
Share capital
2024
2023
£
£
Ordinary share capital
Issued and fully paid
1,000,091 Ordinary shares of £1 each
1,000,091
1,000,091
Preference share capital
Issued and fully paid
500,000 Preference shares of £1 each
500,000
500,000
LANTOR (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 23 -
19
Financial commitments, guarantees and contingent liabilities

The company has given a guarantee together with Nonwovenn Ltd and Square Foot Concepts Limited, supported by a debenture charge over its assets, in respect of a revolving credit facility provided by Lloyds Bank Plc to BFF Nonwovens Limited, a fellow subsidiary company.

 

At 31 March 2024 there was a balance of £nil (2023: £nil) on the revolving credit facility.

20
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:

2024
2023
£
£
Within one year
83,850
140,000
Between two and five years
335,400
51,485
In over five years
408,769
-
0
828,019
191,485
21
Related party transactions
Transactions with related parties

During the year the company entered into the following transactions with related parties:

Sales
Sales
Purchases
Purchases
2024
2023
2024
2023
£
£
£
£
Entities in which Mr D P Lamb is a director
-
4,800
-
1,320
22
Ultimate controlling party

The company is a wholly-owned subsidiary of Nonwovenn Ltd.

 

The ultimate control is with the directors of Nonwovenn Ltd who are also the directors of this company.

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