Company registration number 04573423 (England and Wales)
BFF NONWOVENS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
BFF NONWOVENS LIMITED
COMPANY INFORMATION
Directors
Mr D P Lamb
Mr A M Brownlow
Mr S Hellyar
Company number
04573423
Registered office
BFF Business Park
& business address
Bath Road
Bridgwater
Somerset
TA6 4NZ
Auditor
Pierce C A Limited
Mentor House
Ainsworth Street
Blackburn
Lancashire
BB1 6AY
Bankers
Lloyds TSB Bank Plc
PO Box 153
55 Corn Street
Bristol
BS99 7LE
BFF NONWOVENS 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
Statement of changes in equity
10
Notes to the financial statements
11 - 24
BFF NONWOVENS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 1 -
The directors present the strategic report and financial statements for the year ended 31 March 2024.
Fair 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 acoustics, filtration, and electrical applications.
Similarly, the Company’s products for the beverages and food packaging markets serve diverse requirements, from repellent, absorbent and high to low porosity, to produce extraordinary pouch product experiences.
The Modern Oral market, which provide further reduced risk product alternative, has seen a strong recovery from the Pandemic and the business is starting to see significant growth in this area.
Financial Highlights
The results set out in the profit and loss account show that the turnover for the year ended 31 March 2024 was £27.7m (2023: £24.8m).
Earnings before exceptional costs, interest, tax, depreciation, and amortisation (EBITDA) were £6.1 million (2023: £4.2 million) reflecting the increase in turnover. The business has continued to invest to facilitate growth in new markets, particularly in people and research & development, which has started coming to fruition as demonstrated by the growth in turnover. Capital investment continues on a new manufacturing line, factory improvements and costs associated with the integration of the sister company's manufacturing operation into the Bridgwater site to streamline future group growth.
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, Customer complaints and approved suppliers monitored through our Quality management system and various manufacturing parameters.
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.
BFF NONWOVENS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 2 -
Mr D P Lamb
Director
30 September 2024
BFF NONWOVENS 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 continued to be that of the manufacture of nonwoven roll goods.
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.
During the year interim dividends were paid amounting to £nil (2023: £5,000,000) to the company's shareholders.
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
BFF NONWOVENS 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:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and 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.
BFF NONWOVENS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF BFF NONWOVENS LIMITED
- 5 -
Opinion
We have audited the financial statements of BFF Nonwovens Limited (the 'company') for the year ended 31 March 2024 which comprise the profit and loss account, 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:
give a true and fair view of the state of the company's affairs as at 31 March 2024 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
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.
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:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
BFF NONWOVENS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF BFF NONWOVENS 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:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, 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:
The nature of the industry, the company’s control environment, the significant laws and regulations relevant to the company, and the company’s policies on detection of fraud;
Results of our enquiries of management, those charged with governance, and of staff in compliance roles;
Our review of disclosures included in the financial statements; and
Engagement team discussions in respect of any potential indicators of non-compliance or fraud.
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.
BFF NONWOVENS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF BFF NONWOVENS LIMITED
- 7 -
This report is made solely to the company's member 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 member those matters we are required to state to the member 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 member, 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
BFF NONWOVENS LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2024
- 8 -
2024
2023
Notes
£
£
Turnover
3
27,719,741
24,750,014
Cost of sales
(12,075,120)
(9,686,442)
Gross profit
15,644,621
15,063,572
Distribution costs
(1,130,878)
(1,279,334)
Administrative expenses
(9,454,754)
(10,451,960)
Other operating income
245,065
313,970
Exceptional operating expenditure
4
(184,372)
(205,772)
Operating profit
5
5,119,682
3,440,476
Interest payable and similar expenses
7
(89,897)
(183,252)
Profit before taxation
5,029,785
3,257,224
Tax on profit
8
(245,189)
(547,507)
Profit for the financial year
4,784,596
2,709,717
The profit and loss account has been prepared on the basis that all operations are continuing operations.
BFF NONWOVENS LIMITED
BALANCE SHEET
AS AT
31 MARCH 2024
31 March 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Intangible assets
10
465,390
Tangible assets
11
8,785,540
6,994,433
Investments
12
500,000
500,000
9,750,930
7,494,433
Current assets
Stocks
14
2,798,707
1,662,340
Debtors
15
6,172,264
5,058,941
Cash at bank and in hand
1,193,416
2,208,041
10,164,387
8,929,322
Creditors: amounts falling due within one year
16
(6,071,930)
(7,309,628)
Net current assets
4,092,457
1,619,694
Total assets less current liabilities
13,843,387
9,114,127
Provisions for liabilities
Deferred tax liability
18
1,489,991
1,545,327
(1,489,991)
(1,545,327)
Net assets
12,353,396
7,568,800
Capital and reserves
Called up share capital
20
85
85
Share premium account
79,915
79,915
Capital redemption reserve
10
10
Profit and loss reserves
12,273,386
7,488,790
Total equity
12,353,396
7,568,800
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.
The financial statements were approved by the board of directors and authorised for issue on 30 September 2024 and are signed on its behalf by:
Mr D P Lamb
Director
Company registration number 04573423 (England and Wales)
BFF NONWOVENS 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
85
79,915
10
9,779,073
9,859,083
Year ended 31 March 2023:
Profit and total comprehensive income
-
-
-
2,709,717
2,709,717
Dividends
9
-
-
-
(5,000,000)
(5,000,000)
Balance at 31 March 2023
85
79,915
10
7,488,790
7,568,800
Year ended 31 March 2024:
Profit and total comprehensive income
-
-
-
4,784,596
4,784,596
Balance at 31 March 2024
85
79,915
10
12,273,386
12,353,396
BFF NONWOVENS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
- 11 -
1
Accounting policies
Company information
BFF Nonwovens Limited is a private company limited by shares incorporated in England and Wales. The registered office is BFF Business Park, Bath Road, Bridgwater, Somerset, TA6 4NZ.
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, modified to include certain financial instruments at fair value. The principal accounting policies adopted are set out below.
The 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 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. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
The company has a revolving credit facility available from its bank to finance trading operations and ongoing capital investment. The directors are not aware of any reasons why these facilities 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.
BFF NONWOVENS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 12 -
1.4
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
1.5
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 land and buildings
Period of lease
Plant and machinery
10% straight line with 10% residual value
Fixtures, fittings & equipment
25% straight line
Computer equipment
33.3% straight line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.6
Fixed asset investments
Fixed asset investments are stated at cost less provision for diminution in value.
1.7
Stocks
Stocks are valued at the lower of cost and net realisable value after making due allowances for slow moving and obsolete items.
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.
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.
BFF NONWOVENS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 13 -
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.
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.
BFF NONWOVENS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 14 -
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.
1.10
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.
BFF NONWOVENS 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.
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
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.
1.14
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
1.15
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.
1.16
Foreign currency translation
Monetary assets and liabilities denominated in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction. All differences are taken to profit and loss account.
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.
BFF NONWOVENS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 16 -
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
27,719,741
24,750,014
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
5,533,296
3,538,992
Europe
13,448,674
16,996,715
Rest of the World
8,737,771
4,214,307
27,719,741
24,750,014
4
Exceptional operating expenditure
2024
2023
£
£
Exceptional expenditure
184,372
205,772
During the previous year the decision was taken to transfer the manufacturing facility of Lantor (UK) Limited, a fellow group company, to the site of this company's manufacturing operations in Bridgwater.
The total costs incurred by this company, for the current and the previous year in relation to the transfer and integration of the sites, are disclosed above.
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 (gains)/losses
(97,549)
113,519
Fees payable to the company's auditor for the audit of the company's financial statements
11,294
12,512
Depreciation of owned tangible fixed assets
829,631
656,217
Operating lease charges
871,716
870,000
BFF NONWOVENS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 17 -
6
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Production
86
68
Sales and administration
49
49
135
117
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
3,378,375
3,162,536
Social security costs
491,830
413,713
Pension costs
174,009
142,829
4,044,214
3,719,078
7
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
89,897
91,002
Other interest on financial liabilities
92,250
89,897
183,252
BFF NONWOVENS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 18 -
8
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
300,525
82,310
Deferred tax
Origination and reversal of timing differences
(55,336)
465,197
Total tax charge
245,189
547,507
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
5,029,785
3,257,224
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
1,257,446
618,873
Tax effect of expenses that are not deductible in determining taxable profit
1,054
Tax effect of income not taxable in determining taxable profit
(31,090)
Group relief
(262,197)
Permanent capital allowances in excess of depreciation
(446,097)
1,714
Depreciation on assets not qualifying for tax allowances
13,328
Research and development tax credit
(243,237)
(122,698)
Other non-reversing timing differences
(44,018)
Other permanent differences
(60,023)
Effect of change in deferred tax rate
109,641
Taxation charge for the year
245,189
547,507
9
Dividends
2024
2023
£
£
Interim paid
5,000,000
BFF NONWOVENS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 19 -
10
Intangible fixed assets
Development Costs
£
Cost
At 1 April 2023
Additions - internally developed
465,390
At 31 March 2024
465,390
Amortisation and impairment
At 1 April 2023 and 31 March 2024
Carrying amount
At 31 March 2024
465,390
At 31 March 2023
11
Tangible fixed assets
Leasehold land and buildings
Plant and machinery
Fixtures, fittings & equipment
Computer equipment
Total
£
£
£
£
£
Cost
At 1 April 2023
685,872
8,657,550
1,234,283
523,808
11,101,513
Additions
1,670,203
764,797
172,359
13,379
2,620,738
At 31 March 2024
2,356,075
9,422,347
1,406,642
537,187
13,722,251
Depreciation and impairment
At 1 April 2023
9,531
2,692,952
978,242
426,355
4,107,080
Depreciation charged in the year
53,312
587,684
128,002
60,633
829,631
At 31 March 2024
62,843
3,280,636
1,106,244
486,988
4,936,711
Carrying amount
At 31 March 2024
2,293,232
6,141,711
300,398
50,199
8,785,540
At 31 March 2023
676,341
5,964,598
256,041
97,453
6,994,433
BFF NONWOVENS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 20 -
12
Fixed asset investments
2024
2023
£
£
Unlisted investments
500,000
500,000
Movements in fixed asset investments
Investments other than loans
£
Cost or valuation
At 1 April 2023 & 31 March 2024
500,000
Carrying amount
At 31 March 2024
500,000
At 31 March 2023
500,000
13
Financial instruments
2024
2023
£
£
Carrying amount of financial assets
Debt instruments measured at amortised cost
5,475,103
4,086,822
Equity instruments measured at cost less impairment
500,000
500,000
Carrying amount of financial liabilities
Measured at amortised cost
5,940,606
7,198,555
14
Stocks
2024
2023
£
£
Raw materials and consumables
1,750,950
1,223,071
Work in progress
637,056
229,648
Finished goods and goods for resale
410,701
209,621
2,798,707
1,662,340
BFF NONWOVENS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 21 -
15
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
5,455,043
3,944,363
Corporation tax recoverable
196,528
Amounts owed by group undertakings
19,522
138,654
Other debtors
551,647
560,171
Prepayments and accrued income
146,052
219,225
6,172,264
5,058,941
16
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
2,762,242
2,315,168
Amounts due to group undertakings
2,486,342
4,095,182
Corporation tax
4,745
Other taxation and social security
126,579
111,073
Other creditors
42,535
37,869
Accruals and deferred income
649,487
750,336
6,071,930
7,309,628
BFF NONWOVENS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 22 -
17
Provisions for liabilities
2024
2023
Notes
£
£
Deferred tax liabilities
18
1,489,991
1,545,327
1,489,991
1,545,327
18
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
2024
2023
Balances:
£
£
Accelerated capital allowances
1,497,534
1,595,835
Unrelieved pension contributions and provisions
(7,543)
(50,508)
1,489,991
1,545,327
2024
Movements in the year:
£
Liability at 1 April 2023
1,545,327
Credit to profit or loss
(55,336)
Liability at 31 March 2024
1,489,991
The deferred tax liability set out above relates to accelerated capital allowances which are expected to reverse within five years and and unrelieved pension contributions and provisions that are expected to mature or reverse within the same period.
19
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
174,009
142,829
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.
BFF NONWOVENS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 23 -
20
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
85
85
85
85
21
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
£
£
Land & buildings
Within one year
870,000
870,000
Between two and five years
3,480,000
3,480,000
In over five years
11,092,500
11,962,500
15,442,500
16,312,500
On 21 December 2021 the company signed a lease for a term of twenty years for the premises at BFF Business Park, Bath Road, Bridgwater, Somerset. The total annual rent for the property is £870,000 per annum.
22
Capital commitments
Amounts contracted for but not provided in the financial statements:
2024
2023
£
£
Acquisition of tangible fixed assets
-
136,383
BFF NONWOVENS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 24 -
23
Related party transactions
Transactions with related parties
During the year the company entered into the following transactions with related parties:
Sales
Purchases
2024
2023
2024
2023
£
£
£
£
Entities in which D P Lamb is a director
93,482
111,919
5,216
542
The following amounts were outstanding at the reporting end date:
2024
2023
Amounts due from related parties
£
£
Entities under the control of D P Lamb
12,475
13,199
24
Ultimate controlling party
The company is a wholly-owned subsidiary of Nonwovenn Ltd, a company registered in England and Wales.
Nonwovenn Ltd is under the control of the directors of this company.
2024-03-312023-04-01falseCCH SoftwareCCH Accounts Production 2024.200Mr D P LambMr A M BrownlowMr S Hellyarfalsefalse045734232023-04-012024-03-3104573423bus:Director12023-04-012024-03-3104573423bus:Director22023-04-012024-03-3104573423bus:Director32023-04-012024-03-3104573423bus:RegisteredOffice2023-04-012024-03-3104573423bus:Agent12023-04-012024-03-31045734232024-03-31045734232022-04-012023-03-310457342312023-04-012024-03-310457342312022-04-012023-03-310457342322023-04-012024-03-310457342322022-04-012023-03-3104573423core:RetainedEarningsAccumulatedLosses2022-04-012023-03-3104573423core:RetainedEarningsAccumulatedLosses2023-04-012024-03-3104573423core:OtherResidualIntangibleAssets2024-03-3104573423core:OtherResidualIntangibleAssets2023-03-3104573423core:DevelopmentCostsCapitalisedDevelopmentExpenditure2024-03-3104573423core:DevelopmentCostsCapitalisedDevelopmentExpenditure2023-03-31045734232023-03-3104573423core:LandBuildingscore:LeasedAssetsHeldAsLessee2024-03-3104573423core:PlantMachinery2024-03-3104573423core:FurnitureFittings2024-03-3104573423core:ComputerEquipment2024-03-3104573423core:LandBuildingscore:LeasedAssetsHeldAsLessee2023-03-3104573423core:PlantMachinery2023-03-3104573423core:FurnitureFittings2023-03-3104573423core:ComputerEquipment2023-03-3104573423core:CurrentFinancialInstrumentscore:WithinOneYear2024-03-3104573423core:CurrentFinancialInstrumentscore:WithinOneYear2023-03-3104573423core:CurrentFinancialInstruments2024-03-3104573423core:CurrentFinancialInstruments2023-03-3104573423core:ShareCapital2024-03-3104573423core:ShareCapital2023-03-3104573423core:SharePremium2024-03-3104573423core:SharePremium2023-03-3104573423core:CapitalRedemptionReserve2024-03-3104573423core:CapitalRedemptionReserve2023-03-3104573423core:RetainedEarningsAccumulatedLosses2024-03-3104573423core:RetainedEarningsAccumulatedLosses2023-03-3104573423core:ShareCapital2022-03-3104573423core:SharePremium2022-03-3104573423core:CapitalRedemptionReserve2022-03-3104573423core:RetainedEarningsAccumulatedLosses2022-03-3104573423core:HedgingReserve2022-03-3104573423core:IntangibleAssetsOtherThanGoodwill2023-04-012024-03-3104573423core:LandBuildingscore:LeasedAssetsHeldAsLessee2023-04-012024-03-3104573423core:PlantMachinery2023-04-012024-03-3104573423core:FurnitureFittings2023-04-012024-03-3104573423core:ComputerEquipment2023-04-012024-03-3104573423core:UKTax2023-04-012024-03-3104573423core:UKTax2022-04-012023-03-310457342332023-04-012024-03-310457342332022-04-012023-03-3104573423core:DevelopmentCostsCapitalisedDevelopmentExpenditure2023-03-3104573423core:DevelopmentCostsCapitalisedDevelopmentExpenditurecore:InternallyGeneratedIntangibleAssets2023-04-012024-03-3104573423core:LandBuildingscore:LeasedAssetsHeldAsLessee2023-03-3104573423core:PlantMachinery2023-03-3104573423core:FurnitureFittings2023-03-3104573423core:ComputerEquipment2023-03-31045734232023-03-3104573423core:Non-currentFinancialInstrumentscore:UnlistedNon-exchangeTraded2024-03-3104573423core:Non-currentFinancialInstrumentscore:UnlistedNon-exchangeTraded2023-03-3104573423core:WithinOneYear2024-03-3104573423core:WithinOneYear2023-03-3104573423core:BetweenTwoFiveYears2024-03-3104573423core:BetweenTwoFiveYears2023-03-3104573423core:MoreThanFiveYears2024-03-3104573423core:MoreThanFiveYears2023-03-3104573423bus:PrivateLimitedCompanyLtd2023-04-012024-03-3104573423bus:FRS1022023-04-012024-03-3104573423bus:Audited2023-04-012024-03-3104573423bus:FullAccounts2023-04-012024-03-31xbrli:purexbrli:sharesiso4217:GBP