Caseware UK (AP4) 2023.0.135 2023.0.135 2024-03-312024-03-31false2023-04-01false6855false 05603745 2023-04-01 2024-03-31 05603745 2022-04-01 2023-03-31 05603745 2024-03-31 05603745 2023-03-31 05603745 2022-04-01 05603745 4 2023-04-01 2024-03-31 05603745 4 2022-04-01 2023-03-31 05603745 5 2023-04-01 2024-03-31 05603745 5 2022-04-01 2023-03-31 05603745 1 2023-04-01 2024-03-31 05603745 e:CompanySecretary1 2023-04-01 2024-03-31 05603745 e:Director1 2023-04-01 2024-03-31 05603745 e:Director2 2023-04-01 2024-03-31 05603745 e:RegisteredOffice 2023-04-01 2024-03-31 05603745 d:Buildings 2023-04-01 2024-03-31 05603745 d:Buildings 2024-03-31 05603745 d:Buildings 2023-03-31 05603745 d:Buildings d:OwnedOrFreeholdAssets 2023-04-01 2024-03-31 05603745 d:PlantMachinery 2023-04-01 2024-03-31 05603745 d:PlantMachinery 2024-03-31 05603745 d:PlantMachinery 2023-03-31 05603745 d:PlantMachinery d:OwnedOrFreeholdAssets 2023-04-01 2024-03-31 05603745 d:MotorVehicles 2023-04-01 2024-03-31 05603745 d:MotorVehicles 2024-03-31 05603745 d:MotorVehicles 2023-03-31 05603745 d:MotorVehicles d:OwnedOrFreeholdAssets 2023-04-01 2024-03-31 05603745 d:OwnedOrFreeholdAssets 2023-04-01 2024-03-31 05603745 d:CurrentFinancialInstruments 2024-03-31 05603745 d:CurrentFinancialInstruments 2023-03-31 05603745 d:CurrentFinancialInstruments d:WithinOneYear 2024-03-31 05603745 d:CurrentFinancialInstruments d:WithinOneYear 2023-03-31 05603745 f:UnitedKingdom 2023-04-01 2024-03-31 05603745 f:UnitedKingdom 2022-04-01 2023-03-31 05603745 f:RestEuropeOutsideUK 2023-04-01 2024-03-31 05603745 f:RestEuropeOutsideUK 2022-04-01 2023-03-31 05603745 d:UKTax 2023-04-01 2024-03-31 05603745 d:UKTax 2022-04-01 2023-03-31 05603745 d:ShareCapital 2023-04-01 2024-03-31 05603745 d:ShareCapital 2024-03-31 05603745 d:ShareCapital 2022-04-01 2023-03-31 05603745 d:ShareCapital 2023-03-31 05603745 d:ShareCapital 2022-04-01 05603745 d:RetainedEarningsAccumulatedLosses 2023-04-01 2024-03-31 05603745 d:RetainedEarningsAccumulatedLosses 2024-03-31 05603745 d:RetainedEarningsAccumulatedLosses 2022-04-01 2023-03-31 05603745 d:RetainedEarningsAccumulatedLosses 2023-03-31 05603745 d:RetainedEarningsAccumulatedLosses 2022-04-01 05603745 e:OrdinaryShareClass1 2023-04-01 2024-03-31 05603745 e:OrdinaryShareClass1 2024-03-31 05603745 e:OrdinaryShareClass1 2023-03-31 05603745 e:FRS102 2023-04-01 2024-03-31 05603745 e:Audited 2023-04-01 2024-03-31 05603745 e:FullAccounts 2023-04-01 2024-03-31 05603745 e:PrivateLimitedCompanyLtd 2023-04-01 2024-03-31 05603745 d:AcceleratedTaxDepreciationDeferredTax 2024-03-31 05603745 d:AcceleratedTaxDepreciationDeferredTax 2023-03-31 05603745 2 2023-04-01 2024-03-31 05603745 g:PoundSterling 2023-04-01 2024-03-31 xbrli:shares iso4217:GBP xbrli:pure

Registered number: 05603745









SATCO PLASTICS LIMITED









ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2024

 
SATCO PLASTICS LIMITED
 
 
COMPANY INFORMATION


Directors
Mr S Asaria 
Mr H Karawalli 




Company secretary
Mrs F Asaria



Registered number
05603745



Registered office
Satco Plastics Limited
Unit 2 Aragon Park

Foster Avenue

Dunstable

Bedfordshire

LU5 5GN




Independent auditors
Sumer Auditco Limited

14th Floor

33 Cavendish Square

London

W1G 0PW





 
SATCO PLASTICS LIMITED
 

CONTENTS



Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditors' report
5 - 8
Statement of comprehensive income
9
Balance sheet
10
Statement of changes in equity
11
Statement of cash flows
12
Analysis of net debt
13
Notes to the financial statements
14 - 25


 
SATCO PLASTICS LIMITED
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2024

Business review
 
The Directors consider the results for the year and the state of the company's affairs at the year end, as shown in the accounts, to be satisfactory.

Principal risks and uncertainties
 
The principal risks to the business are:
- Employment costs
Changes in employment legislation will lead to increased wages and pension costs in the coming years. 
- Logistics costs
Increases in cost of fuel coupled with higher HGV driver wages has led to an additional risk factor which will decrease margins in the coming years.
- Cost of Raw Materials
The cost of raw materials is influenced by the Red Sea logistics route issue, cost of crude oil, energy costs for extraction of crude oil adding to the cost and foreign exchange fluctuations. All of these are outside the control of the company.
- Plastic Packaging Tax
The increase of the PPT rate in the year did not cause a decrease in the margin in the current year, but could impact the margin in the coming years if the rate keeps increasing.

Financial key performance indicators
 
The directors use a number of key performance indicators to assess business performance. Principal amongst these are turnover, gross profit margin, profit before tax and net assets which are reported in the audited financial statements.
Brief analysis of these is shown below:
                    2024                    2023                          2022                 2021 
Turnover              £31,141,295          £29,063,846                  £30,539,169              £24,527,173
Gross Profit Margin                     42%                    40%                           40%                  52% 
Profit before tax               £4,711,506           £4,010,936                   £5,949,298                £6,763,313 
Net profit margin                   15%                      14%                           19%                  28%    
Turnover growth                    7%                       (0.5)%                         25%                 12%  
Despite the increase in the PPT rate, the gross profit margin was slightly better as the company was able to negotiate lower prices with suppliers following prices of products being decreased.
The net profit margin has increased slightly due to better maintenance through the year resulting in cost savings and streamlining of other costs.

Page 1

 
SATCO PLASTICS LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024

Financial Instruments
 
The group's principal financial instruments comprise:
- Bank balances
- Trade creditors
- Trade debtors
The main purpose of these instruments is to raise finance and maintain sufficient funds for the company's operations.     
     
Due to the nature of the financial instruments used by the company there is no exposure to price risk. The company's approach to managing other risks applicable to the financial instruments concerned is shown below.
Bank balances
     
In respect of bank balances the liquidity risk is managed by preparing and maintaining weekly cash flow forecasts to ensure that positive balances are maintained. Interest is received on cash balances at a pre-agreed rate with the bank therefore negating the need for short term money market facilities. This is reviewed annually.
Trade debtors
     
Trade Debtors are managed in respect of credit and cash flow risk by regular review of customers' credit rating, continual communication with customers and regular monitoring of amounts outstanding and age of debt.
Trade creditors
     
Trade creditors liquidity risk is managed by ensuring sufficient funds are available to meet amounts due.


This report was approved by the board on 1 October 2024 and signed on its behalf.



Mr S Asaria
Director

Page 2

 
SATCO PLASTICS LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2024

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

Directors' responsibilities statement

The directors are responsible for preparing the Strategic report, the Directors' report and the financial statements in accordance with applicable law and regulations.
 
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period.

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


select suitable accounting policies for the Company's financial statements and then apply them consistently;

make 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 to enable them to ensure that the financial statements comply with the Companies Act 2006They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Principal activity

The principal activity of the company continues to be that of a plastic consumables manufacturer.

Results and dividends

The profit for the year, after taxation, amounted to £3,757,539 (2023 - £3,189,995).

Total dividends distributed in the year amounted to £2,110,954 (2023 - £1,929,904).

Directors

The directors who served during the year were:

Mr S Asaria 
Mr H Karawalli 

Future developments

The company looks to grow the business in all sectors of the market and the Directors continue to review new opportunities to grow the business within the sector.

Financial instruments

The directors have chosen to report on the use of financial instruments in the strategic report.

Page 3

 
SATCO PLASTICS LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

Auditors

Simmons Gainsford LLP, the previous auditors, have transferred their audit business to Sumer Auditco Limited who will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 1 October 2024 and signed on its behalf.
 





Mr S Asaria
Director

Page 4

 
SATCO PLASTICS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SATCO PLASTICS LIMITED
 

Opinion


We have audited the financial statements of Satco Plastics Limited (the 'Company') for the year ended 31 March 2024, which comprise the Statement of comprehensive income, the Balance sheet, the Statement of cash flows, the Statement of changes in equity and the related notes, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In our opinion the financial statements:


give a true and fair view of the state of the Company's affairs as at 31 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.


Basis for opinion


We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.


Conclusions relating to going concern


In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.


Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.


Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.


Page 5

 
SATCO PLASTICS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SATCO PLASTICS LIMITED (CONTINUED)


Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' report thereon. The directors are responsible for the other information contained within the Annual ReportOur opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.


We have nothing to report in this regard.


Opinion on other matters prescribed by the Companies Act 2006
 

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


the information given in the Strategic report and the Directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic report and the Directors' report have been prepared in accordance with applicable legal requirements.


Matters on which we are required to report by exception
 

In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic report or the Directors' report.


We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:


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


Responsibilities of directors
 

As explained more fully in the Directors' responsibilities statement set out on page 3, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.


In preparing the financial statements, the directors are responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.


Page 6

 
SATCO PLASTICS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SATCO PLASTICS LIMITED (CONTINUED)


Auditors' responsibilities for the audit of the financial statements
 

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.


Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

In order to identify and assess the risks of material misstatements, including fraud and non-compliance with laws and regulations that could be expected to have a material impact on the financial statements, we have considered:

the results of our enquiries of management and those charged with governange of their assessment of the risks of fraud and irregularities; 
the nature of the company, including its management structure and control systems (including the opportunity for management to override such controls); and
the industry and environment in which it operates.

We also considered UK tax and pension legistlation and laws and regulations relating to employment and the  
preparation and presentation of the financial statements such as the Companies Act 2006.

Based on this understanding, we identified the following matters as being of significance to the entity:

laws and regulations considered to have a direct effect on the financial statements including UK financial reporting standards, Company Law, tax and pension legislation and distributable profits legislation;
the timing of the recognition of commercial income;
compliance with legislation relating to health and safety; fire risk and employment law;
management bias in selecting accounting policies and determining estimates;
inappropriate journal entries; and
recoverability of debtors;

 
We communicated the outcomes of these discussions and enquiries, as well as consideration as to where and
how fraud may occur in the entity, to all engagement team members.
 
Audit procedures undertaken in response to the potential risks relating to irregularities (which include fraud and
non-compliance with laws and regulations) comprised:

enquiries of management and those charged with governance as to whether the entity comples with such
      laws and regulations
enquiries with the same concerning any actual or potential litigation or claims;
discussion with the same regarding any known or suspected instances of non-compliance with laws and
      regulation and fraud; 
obtaining an understanding of the policies and controls over the recognition of income and testing their implementation during the year;
review documentation relating to compliance with the regulations in particular health and safety regulation
      and assessments;
Page 7

 
SATCO PLASTICS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SATCO PLASTICS LIMITED (CONTINUED)


challenging assumptions made by management in their specific accounting policies and estimates;
identifying and testing journal entries, in particular any journal entries posted with unusual account
      combinations or crediting revenue or cash;
assessing the recovery of debtors in the period since the balance sheet date and challenging assumptions
      made by management regarding the recovery of balances which remain outstanding;
reviewing the financial statements for compliance with the relevant disclosure requirements; 
performing analytical procedures to identify any unusual or unexpected relationships or unexpected
      movements in account balances which may be indicative of fraud;
evaluating the underlying business reasons for any unusual transactions; and considered the implementation of controls during the year.

No instances of material non-compliance were identified. However, the likelihood of detecting irregularities,
including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the
entity’scontrols, and the nature, timing and extent of the audit procedures performed. Irregularities that result
from fraud might be inherently more difficult to detect than irregularities that result from error. As explained
above there is an unavoidable risk that material misstatements may not be detected, even though the audit has
been planned and performed in accordance with ISAs (UK).

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


Use of our report
 

This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an Auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.





Abdultaiyab Pisavadi BSc FCA (Senior statutory auditor)
  
for and on behalf of
Sumer Auditco Limited
 
Statutory Auditors
  
14th Floor
33 Cavendish Square
London
W1G 0PW

1 October 2024
Page 8

 
SATCO PLASTICS LIMITED
 
 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2024

2024
2023
Note
£
£

  

Turnover
 4 
31,141,295
29,063,846

Cost of sales
  
(17,885,053)
(17,354,083)

Gross profit
  
13,256,242
11,709,763

Distribution costs
  
(666,181)
(578,169)

Administrative expenses
  
(7,971,147)
(7,113,388)

Operating profit
 5 
4,618,914
4,018,206

Interest receivable and similar income
 8 
100,102
-

Interest payable and similar expenses
 9 
(7,510)
(7,270)

Profit before tax
  
4,711,506
4,010,936

Tax on profit
 10 
(953,967)
(820,941)

Profit for the financial year
  
3,757,539
3,189,995

There was no other comprehensive income for 2024 (2023:£NIL).

The notes on pages 14 to 25 form part of these financial statements.

Page 9

 
SATCO PLASTICS LIMITED
REGISTERED NUMBER: 05603745

BALANCE SHEET
AS AT 31 MARCH 2024

2024
2023
Note
£
£

Fixed assets
  

Tangible assets
 12 
10,597,499
10,709,680

  
10,597,499
10,709,680

Current assets
  

Stocks
 13 
706,161
786,812

Debtors: amounts falling due within one year
 14 
3,795,395
3,592,528

Cash at bank and in hand
 15 
4,957,009
4,701,679

  
9,458,565
9,081,019

Creditors: amounts falling due within one year
 16 
(4,327,175)
(5,502,395)

Net current assets
  
 
 
5,131,390
 
 
3,578,624

Total assets less current liabilities
  
15,728,889
14,288,304

Provisions for liabilities
  

Deferred tax
 17 
(1,700,000)
(1,906,000)

  
 
 
(1,700,000)
 
 
(1,906,000)

Net assets
  
14,028,889
12,382,304


Capital and reserves
  

Called up share capital 
 18 
2,800,100
2,800,100

Profit and loss account
  
11,228,789
9,582,204

  
14,028,889
12,382,304


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 1 October 2024.




Mr S Asaria
Director

The notes on pages 14 to 25 form part of these financial statements.

Page 10

 
SATCO PLASTICS LIMITED
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024


Called up share capital
Profit and loss account
Total equity

£
£
£

At 1 April 2023
2,800,100
9,582,204
12,382,304


Comprehensive income for the year

Profit for the year
-
3,757,539
3,757,539


Other comprehensive income for the year
-
-
-


Total comprehensive income for the year
-
3,757,539
3,757,539


Contributions by and distributions to owners

Dividends: Equity capital
-
(2,110,954)
(2,110,954)


Total transactions with owners
-
(2,110,954)
(2,110,954)


At 31 March 2024
2,800,100
11,228,789
14,028,889


The notes on pages 14 to 25 form part of these financial statements.


STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2023


Called up share capital
Profit and loss account
Total equity

£
£
£

At 1 April 2022
2,800,100
8,322,113
11,122,213


Comprehensive income for the year

Profit for the year
-
3,189,995
3,189,995


Other comprehensive income for the year
-
-
-


Total comprehensive income for the year
-
3,189,995
3,189,995


Contributions by and distributions to owners

Dividends: Equity capital
-
(1,929,904)
(1,929,904)


Total transactions with owners
-
(1,929,904)
(1,929,904)


At 31 March 2023
2,800,100
9,582,204
12,382,304


The notes on pages 14 to 25 form part of these financial statements.

Page 11

 
SATCO PLASTICS LIMITED
 

STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2024

2024
2023
£
£

Cash flows from operating activities

Profit for the financial year
3,757,539
3,189,995

Adjustments for:

Depreciation of tangible assets
743,540
719,583

Loss on disposal of tangible assets
(3,800)
(3,700)

Interest paid
7,510
7,270

Interest received
(100,102)
-

Taxation charge
953,969
820,941

Decrease in stocks
80,651
217,121

(Increase)/decrease in debtors
(202,867)
592,867

(Decrease)/increase in creditors
(1,110,948)
855,553

Corporation tax (paid)
(1,074,239)
(936,296)

Net cash generated from operating activities

3,051,253
5,463,334


Cash flows from investing activities

Purchase of tangible fixed assets
(631,359)
(128,654)

Sale of tangible fixed assets
3,800
3,700

Interest received
100,102
-

Net cash from investing activities

(527,457)
(124,954)

Cash flows from financing activities

Dividends paid
(2,260,956)
(2,529,904)

Interest paid
(7,510)
(7,270)

Net cash used in financing activities
(2,268,466)
(2,537,174)

Net increase in cash and cash equivalents
255,330
2,801,206

Cash and cash equivalents at beginning of year
4,701,679
1,900,473

Cash and cash equivalents at the end of year
4,957,009
4,701,679


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
4,957,009
4,701,679

4,957,009
4,701,679


Page 12

 
SATCO PLASTICS LIMITED
 

ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 MARCH 2024




At 1 April 2023
Cash flows
At 31 March 2024
£

£

£

Cash at bank and in hand

4,701,679

255,330

4,957,009


4,701,679
255,330
4,957,009

The notes on pages 14 to 25 form part of these financial statements.

Page 13

 
SATCO PLASTICS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

1.


General information

The company is a private company limited by shares and is incorporated in England and Wales. The address of its registered office is Satco House, Unit 2 Aragon Park, Foster Avenue, Dunstable, LU5 5GN.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

 
2.2

Going concern

Those charged with governance have undertaken an informal assessment regarding the going
concern of the business. They have concluded that there are no issues regarding going concern and
no subsequent events have been identified. Therefore the Company will continue as a going concern.

 
2.3

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
the Company has transferred the significant risks and rewards of ownership to the buyer;
the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of revenue can be measured reliably;
it is probable that the Company will receive the consideration due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.

 
2.4

Interest income

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

 
2.5

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

Page 14

 
SATCO PLASTICS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

2.Accounting policies (continued)

  
2.6

Borrowing cost

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

 
2.7

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance sheet. The assets of the plan are held separately from the Company in independently administered funds.

 
2.8

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

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

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

 
2.9

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Page 15

 
SATCO PLASTICS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

2.Accounting policies (continued)


2.9
Tangible fixed assets (continued)

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Freehold property
-
2%
Straight Line
Plant and machinery
-
5%
Straight Line
Motor vehicles
-
25%
Straight Line

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.10

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

 
2.11

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.12

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Statement of cash flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Company's cash management.

 
2.13

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
2.14

Financial instruments

The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS
Page 16

 
SATCO PLASTICS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

2.Accounting policies (continued)


2.14
Financial instruments (continued)

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.

Basic financial assets

Basic financial assets, which include trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.

Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other receivables due within the operating cycle fall into this category of financial instruments.

Financial liabilities

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

Basic financial liabilities, which include trade and other payables, bank loans and other loans are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial.

Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.

Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.

Derecognition of financial assets

Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Company transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Company will continue to recognise the value of the portion of the risks and rewards retained.

Derecognition of financial liabilities

Financial liabilities are derecognised when the Company's contractual obligations expire or are discharged or cancelled.

Page 17

 
SATCO PLASTICS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

2.Accounting policies (continued)

  
2.15

Dividends

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


3.


Judgements in applying accounting policies and key sources of estimation uncertainty

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.


4.


Turnover

The whole of the turnover is attributable to manufacturing of plastic consumables products.

Analysis of turnover by country of destination:

2024
2023
£
£

United Kingdom
28,985,011
27,610,654

Rest of Europe
2,156,284
1,453,192

31,141,295
29,063,846



5.


Operating profit

The operating profit is stated after charging:

2024
2023
£
£

Depreciation of tangible fixed assets
743,540
719,583

Fees payable to the Company's auditor and its associates for the audit of the Company's annual financial statements
20,306
17,250

Page 18

 
SATCO PLASTICS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

6.


Employees

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


2024
2023
£
£

Wages and salaries
3,161,176
2,636,918

Social security costs
361,066
301,401

Cost of defined contribution scheme
61,677
24,340

3,583,919
2,962,659


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


        2024
        2023
            No.
            No.







Warehouse and Distribution
65
52



Administrative
3
3

68
55


7.


Directors' remuneration

2024
2023
£
£

Directors' emoluments
723,899
655,716


The highest paid director received remuneration of £695,589 (2023 - £610,443).

The value of the Company's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £10,000 (2023 - £4,000).

The total value of the Company's contributions paid to a defined contribution pension scheme in respect of all of the directors amounted to £10,000 (2023 - £4,000).
During the current and preceeding year, there was no other Key Management Personnel except the
directors.


8.


Interest receivable

2024
2023
£
£


Other interest receivable
100,102
-

Page 19

 
SATCO PLASTICS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

9.


Interest payable and similar expenses

2024
2023
£
£


Other interest payable
7,510
7,270


10.


Taxation


2024
2023
£
£

Corporation tax


Current tax on profits for the year
1,159,967
818,521

Adjustments in respect of previous periods
-
(151,131)


1,159,967
667,390


Total current tax
1,159,967
667,390

Deferred tax


Origination and reversal of timing differences
(206,000)
153,551

Total deferred tax
(206,000)
153,551


Taxation on profit on ordinary activities
953,967
820,941
Page 20

 
SATCO PLASTICS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
 
10.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is lower than (2023 - higher than) the standard rate of corporation tax in the UK of 25% (2023 - 19%). The differences are explained below:

2024
2023
£
£


Profit on ordinary activities before tax
4,711,506
4,010,936


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 19%)
1,177,876
762,078

Effects of:


Capital allowances for year in excess of depreciation
(224,356)
217,108

Adjustments to tax charge in respect of prior periods
-
(151,131)

Expense adjustments
665
(2,866)

Provisions adjustment
732
(3,545)

Fixed asset profit on disposals
(950)
(703)

Total tax charge for the year
953,967
820,941


Factors that may affect future tax charges


11.


Dividends

2024
2023
£
£


Dividends paid
2,110,954
1,929,904

2,110,954
1,929,904

Page 21

 
SATCO PLASTICS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

12.


Tangible fixed assets





Freehold property
Plant and machinery
Motor vehicles
Total

£
£
£
£



Cost or valuation


At 1 April 2023
3,407,184
13,080,433
65,193
16,552,810


Additions
-
631,359
-
631,359


Disposals
-
-
(47,000)
(47,000)



At 31 March 2024

3,407,184
13,711,792
18,193
17,137,169



Depreciation


At 1 April 2023
288,647
5,489,290
65,193
5,843,130


Charge for the year on owned assets
68,620
674,920
-
743,540


Disposals
-
-
(47,000)
(47,000)



At 31 March 2024

357,267
6,164,210
18,193
6,539,670



Net book value



At 31 March 2024
3,049,917
7,547,582
-
10,597,499



At 31 March 2023
3,118,537
7,591,143
-
10,709,680


13.


Stocks

2024
2023
£
£

Raw materials and consumables
450,225
680,541

Finished goods and goods for resale
255,936
106,271

706,161
786,812


Page 22

 
SATCO PLASTICS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

14.


Debtors

2024
2023
£
£


Trade debtors
3,643,869
3,470,789

Other debtors
213
10,199

Prepayments and accrued income
151,313
111,540

3,795,395
3,592,528



15.


Cash and cash equivalents

2024
2023
£
£

Cash at bank and in hand
4,957,009
4,701,679

4,957,009
4,701,679



16.


Creditors: Amounts falling due within one year

2024
2023
£
£

Trade creditors
2,315,144
2,391,463

Corporation tax
349,661
263,933

Other taxation and social security
438,687
307,766

Other creditors
737,423
2,136,229

Accruals and deferred income
486,260
403,004

4,327,175
5,502,395


Page 23

 
SATCO PLASTICS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

17.


Deferred taxation




2024


£






At beginning of year
(1,906,000)


Charged to profit or loss
206,000



At end of year
(1,700,000)

The provision for deferred taxation is made up as follows:

2024
2023
£
£


Accelerated capital allowances
(1,700,000)
(1,906,000)

(1,700,000)
(1,906,000)


18.


Share capital

2024
2023
£
£
Allotted, called up and fully paid



2,800,100 (2023 - 2,800,100) Ordinary shares of £1.00 each
2,800,100
2,800,100



19.


Pension commitments

The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company  to the fund and amounted to 61,677 (2023 - £24,340). Contributions totalling £10,209 (2023 - £7,549) were payable to the fund at the balance sheet date and are included in creditors.


20.


Related party transactions

During the year, Mr and Mrs Asaria received £2,110,954 in dividends (2023: £1,929,904).
During the year, salaries of £30,000 (2023: £29,500) were paid to members of the directors' close families.
At the year-end, the Company owed Mr and Mrs Asaria £nil (2023: £150,000).

Page 24

 
SATCO PLASTICS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

21.


Post balance sheet events

The Company bought a new unit in July 2024, which is being used for storage of raw materials.


22.


Controlling party

Mr and Mrs S. H. Asaria were the controlling parties throughout the period by virtue of their share ownership.

 
Page 25