Company registration number 03496165 (England and Wales)
MERRIOTT PLASTICS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
MERRIOTT PLASTICS LIMITED
COMPANY INFORMATION
Directors
G P Goodhew
A P Lawrence
K Whatley
I Curtis
P Dobson
D A Jones
Secretary
A P Lawrence
Company number
03496165
Registered office
Eden Works
Blacknell Lane, Crewkerne
Somerset
TA18 7HE
Auditor
Black Fox Audit LLP
Ty Gwyn Farm
Nant Y Ffrith
Wrexham
Wales
LL11 5YW
MERRIOTT PLASTICS LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2
Directors' responsibilities statement
3
Independent auditor's report
4 - 6
Statement of comprehensive income
7
Balance sheet
8
Statement of changes in equity
9
Notes to the financial statements
10 - 21
MERRIOTT PLASTICS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 1 -
The directors present the strategic report for the year ended 31 March 2024.
Fair Review of the Business
The results reported in these financial statements are consistent with the board expectations. With challenging price increases from raw material, electricity, and the national minimum wage we have seen a decline in both sales (reduced by 5%) and gross margin (reduced by 2%).
Despite these challenges the directors are pleased to report a creditable profit before tax of £384k (prior year restated £399k) has been delivered.
The company continues to pursue its plan to grow the business - organically by increasing turnover with existing customers, by actively seeking new customers and by the acquisition of competitor businesses in the industry.
Description of Principal Risks and Uncertainties
The company is exposed to price risk due to the nature of its operations. The cost of managing exposure to commodity price risks exceeds any potential benefits that the group could gain due to the size of its operations. The directors will revisit the appropriateness of this policy should the nature or size of group operations change.
The company maintains policies that require appropriate credit checks on potential new customers before contracts are agreed. Credit limits allowed to customers are subject to prior agreement by the directors.
The company is exposed to interest bearing liabilities. The board have mitigated this area of risk by ensuring that the majority of these liabilities are subject to rates that are fixed over the term of the agreement.
The operations of the company are affected by trends in other markets. In order to mitigate the risk of a downturn in one market having a significant effect on the group, the directors try to ensure that its trading subsidiaries have a broad range of customers operating in different markets.
Analysis based on Key Performance Indicators
Company turnover for 2023/24 was £3.4m, whilst the gross profit margin was 39.1%.
Operating profit reduced by £21k to £379k (prior year restated £400k)
Cash at bank and in hand increased from £242k to £411k.
Additional Information and Explanations
The board continues to pursue its policies of creating and maintaining good relationships with customers and suppliers to mutual advantage, and to develop and invest in people, quality and capacity in order to support its ongoing plans for expansion.
A P Lawrence
Director
22 October 2024
MERRIOTT PLASTICS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 2 -
The directors present their annual report and financial statements for the year ended 31 March 2024.
Principal activities
The principal activity of the company continued to be that of moulding of plastic and composites.
Results and dividends
The results for the year are set out on page 7.
No ordinary dividends were paid. The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
G P Goodhew
A P Lawrence
K Whatley
I Curtis
P Dobson
D A Jones
Auditor
Black Fox Audit LLP were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.
Strategic report
The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of financial risk, management objectives, review of performance and future developments.
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.
Medium-sized companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
On behalf of the board
A P Lawrence
Director
22 October 2024
MERRIOTT PLASTICS LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MARCH 2024
- 3 -
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.
MERRIOTT PLASTICS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF MERRIOTT PLASTICS LIMITED
- 4 -
Opinion
We have audited the financial statements of Merriott Plastics Limited (the 'company') for the year ended 31 March 2024 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity 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.
MERRIOTT PLASTICS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF MERRIOTT PLASTICS LIMITED (CONTINUED)
- 5 -
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.
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 out procedures are capable of detecting irregularities, including fraud, is detailed below:
- Enquiring of management and those charged with governance around actual and potential litigation and claims;
- Enquiring of entity staff to identify any instance of non-compliance with laws and regulations;
- Reviewing minutes of meeting of those charged with governance;
- We performed testing on the financial statement disclosures to supporting documentation, performing substantive testing on account balances which were considered to be a greater risk of susceptibility to fraud and to assess compliance with applicable laws and regulations;
- Performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
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.
MERRIOTT PLASTICS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF MERRIOTT PLASTICS LIMITED (CONTINUED)
- 6 -
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.
Susan Thomas-Walls BSc BFP FCA
Senior Statutory Auditor
For and on behalf of Black Fox Audit LLP
23 October 2024
Chartered Accountants
Statutory Auditor
Ty Gwyn Farm
Nant Y Ffrith
Wrexham
Wales
LL11 5YW
MERRIOTT PLASTICS LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2024
- 7 -
2024
2023
as restated
Notes
£
£
Turnover
3
3,395,616
3,570,614
Cost of sales
(2,066,792)
(2,113,720)
Gross profit
1,328,824
1,456,894
Administrative expenses
(949,110)
(1,056,308)
Operating profit
4
379,714
400,586
Interest receivable and similar income
7
3,850
Interest payable and similar expenses
8
(1,726)
Profit before taxation
383,564
398,860
Tax on profit
9
(80,779)
91,136
Profit for the financial year
302,785
489,996
The profit and loss account has been prepared on the basis that all operations are continuing operations.
MERRIOTT PLASTICS LIMITED
BALANCE SHEET
AS AT 31 MARCH 2024
31 March 2024
- 8 -
2024
2023
as restated
Notes
£
£
£
£
Fixed assets
Tangible assets
10
59,334
62,241
Investments
11
100
100
59,434
62,341
Current assets
Stocks
13
226,193
260,325
Debtors
14
6,019,399
5,863,689
Cash at bank and in hand
410,686
241,747
6,656,278
6,365,761
Creditors: amounts falling due within one year
15
(493,816)
(508,991)
Net current assets
6,162,462
5,856,770
Net assets
6,221,896
5,919,111
Capital and reserves
Called up share capital
18
324,002
324,002
Profit and loss reserves
5,897,894
5,595,109
Total equity
6,221,896
5,919,111
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 22 October 2024 and are signed on its behalf by:
A P Lawrence
Director
Company registration number 03496165 (England and Wales)
MERRIOTT PLASTICS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
- 9 -
Share capital
Profit and loss reserves
Total
£
£
£
As restated for the period ended 31 March 2023:
Balance at 1 April 2022
324,002
5,105,113
5,429,115
Year ended 31 March 2023:
Profit and total comprehensive income
-
489,996
489,996
Balance at 31 March 2023
324,002
5,595,109
5,919,111
Year ended 31 March 2024:
Profit and total comprehensive income
-
302,785
302,785
Balance at 31 March 2024
324,002
5,897,894
6,221,896
MERRIOTT PLASTICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
- 10 -
1
Accounting policies
Company information
Merriott Plastics Limited is a private company limited by shares incorporated in England and Wales. The registered office is Eden Works, Blacknell Lane, Crewkerne, Somerset, TA18 7HE.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
The company has taken advantage of the exemption under section 400 of the Companies Act 2006 not to prepare consolidated accounts. The financial statements present information about the company as an individual entity and not about its group.
Merriott Plastics Limited is a wholly owned subsidiary of Merriott Plastics Group Limited and the results of Merriott Plastics Limited are included in the consolidated financial statements of Merriott Plastics Group Limited which are available from Companies House.
1.2
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
1.4
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.
MERRIOTT PLASTICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 11 -
Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:
Shore leasehold property improvements
Over the term of the lease
Plant and machinery
10-20% straight line
Computer equipment
33% 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.
1.5
Fixed asset investments
Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
1.6
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
1.7
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
During the year the directors made a decision to re-evaluate the stock provision. The affect on the current year financial statements of this change is an increase in cost of sales of £14,234, a decrease on retained earnings of £14,234 and a decrease in net assets of £14,234. The affect of this re-evaluation in the prior period can be found in note 24.
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 and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
MERRIOTT PLASTICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 12 -
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.
Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account in other administrative expenses.
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.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.12
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
MERRIOTT PLASTICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 13 -
1.13
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
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
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Critical judgements
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
Operating lease commitments
The company has entered into commercial leases as a lessee in order to obtain use of property, plant and equipment and motor vehicles. The classification of such leases as operating or finance lease requires the company to determine, based on an evaluation of the terms and conditions of the arrangements, whether it retains or acquires the significant risks and rewards of ownership of these assets and accordingly whether the lease requires an asset and liability to be recognised in the balance sheet.
Tangible fixed assets
Judgements are required on estimating the useful economic lives of tangible fixed assets. Where an indication of impairment is identified the estimation of recoverable value requires estimation.
Stock provision
Judgements are required on estimating the value of slow moving stock items. Where an indication of impairment is identified the recoverable value requires estimation.
MERRIOTT PLASTICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 14 -
3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by geographical market
UK
3,079,412
3,301,278
Europe
286,367
239,888
Rest of World
29,837
29,448
3,395,616
3,570,614
2024
2023
£
£
Other revenue
Interest income
3,850
-
4
Operating profit
2024
2023
Operating profit for the year is stated after charging:
£
£
Exchange losses
632
3,249
Fees payable to the company's auditor for the audit of the company's financial statements
11,000
13,260
Depreciation of owned tangible fixed assets
15,517
24,977
(Profit)/loss on disposal of tangible fixed assets
-
16,708
Operating lease charges
170,252
165,247
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Directors
6
6
Administration and support
3
3
Production
28
30
Total
37
39
MERRIOTT PLASTICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
5
Employees
(Continued)
- 15 -
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
1,080,289
1,093,880
Social security costs
100,087
103,813
Pension costs
39,335
37,104
1,219,711
1,234,797
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
249,932
222,235
Company pension contributions to defined contribution schemes
19,164
18,108
269,096
240,343
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 3 (2023 - 3).
Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
107,110
99,636
Company pension contributions to defined contribution schemes
9,080
8,407
7
Interest receivable and similar income
2024
2023
£
£
Interest income
Other interest income
3,850
8
Interest payable and similar expenses
2024
2023
£
£
Interest on bank overdrafts and loans
-
1,726
MERRIOTT PLASTICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 16 -
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
79,474
(84,219)
Adjustments in respect of prior periods
(1,542)
Total current tax
77,932
(84,219)
Deferred tax
Origination and reversal of timing differences
2,847
(6,917)
Total tax charge/(credit)
80,779
(91,136)
The actual charge/(credit) for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2024
2023
£
£
Profit before taxation
383,564
398,860
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
95,891
75,783
Tax effect of expenses that are not deductible in determining taxable profit
1,614
Adjustments in respect of prior years
(1,560)
Group relief
3,843
Over provided in prior years
(1,542)
Deferred tax adjustments in respect of prior years
(1,207)
Super deduction
(98)
EMI deduction
(179,824)
Effect of change in accounting estimate
10,313
Tax effect of prior period adjustment
(13,570)
Taxation charge/(credit) for the year
80,779
(91,136)
MERRIOTT PLASTICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 17 -
10
Tangible fixed assets
Shore leasehold property improvements
Plant and machinery
Computer equipment
Total
£
£
£
£
Cost
At 1 April 2023
134,798
1,124,824
1,720
1,261,342
Additions
11,675
935
12,610
At 31 March 2024
134,798
1,136,499
2,655
1,273,952
Depreciation and impairment
At 1 April 2023
89,155
1,109,898
48
1,199,101
Depreciation charged in the year
6,287
8,605
625
15,517
At 31 March 2024
95,442
1,118,503
673
1,214,618
Carrying amount
At 31 March 2024
39,356
17,996
1,982
59,334
At 31 March 2023
45,643
14,926
1,672
62,241
11
Fixed asset investments
2024
2023
Notes
£
£
Investments in subsidiaries
12
100
100
12
Subsidiaries
Details of the company's subsidiaries at 31 March 2024 are as follows:
Name of undertaking
Address
Class of
% Held
shares held
Direct
ICM (Plastic Moulding) Limited
1
Ordinary
100.00
Registered office addresses (all UK unless otherwise indicated):
1
Eden Works, Blacknell Lane, Crewkerne, Somerset, TA18 7HE
13
Stocks
2024
2023
£
£
Raw materials and consumables
157,827
82,406
Work in progress
6,610
13,078
Finished goods and goods for resale
61,756
164,841
226,193
260,325
MERRIOTT PLASTICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 18 -
14
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
754,795
799,748
Corporation tax recoverable
10,526
84,219
Amounts owed by group undertakings
5,196,368
4,912,702
Prepayments and accrued income
47,660
54,123
6,009,349
5,850,792
2024
2023
Amounts falling due after more than one year:
£
£
Deferred tax asset (note 16)
10,050
12,897
Total debtors
6,019,399
5,863,689
Amounts due from group undertakings are interest free and repayable on demand.
15
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
300,732
293,170
Taxation and social security
120,364
118,004
Other creditors
2,177
Accruals and deferred income
72,720
95,640
493,816
508,991
Amounts due to group undertakings are interest free and repayable on demand.
16
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Assets
Assets
2024
2023
Balances:
£
£
Accelerated capital allowances
10,050
12,897
MERRIOTT PLASTICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
16
Deferred taxation
(Continued)
- 19 -
2024
Movements in the year:
£
Asset at 1 April 2023
(12,897)
Charge to profit or loss
2,847
Asset at 31 March 2024
(10,050)
17
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
39,335
37,104
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
18
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
324,002
324,002
324,002
324,002
The company has one class of ordinary shares which carry no right to fixed income or to a fixed repayment to capital, each share is entitled to one vote.
19
Profit and loss reserves
Profit and loss reserves represent the retained profits on the company since its inception.
20
Financial commitments, guarantees and contingent liabilities
The company has provided a cross-guarantee to the Group's bankers in respect of a funding facility and a loan.
As at 31 March 2024 the amount owed by the rest of the Group in respect of the funding facility was £Nil (2023: £167,271).
As at 31 March 2024 the amount owed by the rest of the Group in respect of the loan was £610,151 (2023: £892,400).
MERRIOTT PLASTICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 20 -
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
£
£
Within one year
169,367
163,281
Between two and five years
637,678
617,488
In over five years
581,261
246,821
1,388,306
1,027,590
22
Events after the reporting date
After the reporting date, the parent company (Merriott Plastics Group Limited) acquired 100% of the share capital of Talisman Plastics Limited.
23
Related party transactions
Transactions with related parties
During the year the company entered into the following transactions with related parties:
During the period the company paid rent to a pension scheme in which certain of the directors are trustees for use of premises amounting to £nil (2023: £100,000).
2024
2023
Amounts due to related parties
£
£
Key management personnel
2,177
Other information
The company has taken advantage of the exemption under the terms of FRS102 not to disclose related party transactions with wholly owned subsidiaries within the group
24
Prior period adjustment
Changes to the balance sheet
As previously reported
Adjustment
As restated at 31 Mar 2023
£
£
£
Current assets
Stocks
314,605
(54,280)
260,325
Capital and reserves
Profit and loss reserves
5,649,389
(54,280)
5,595,109
MERRIOTT PLASTICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
24
Prior period adjustment
(Continued)
- 21 -
Changes to the profit and loss account
As previously reported
Adjustment
As restated
Period ended 31 March 2023
£
£
£
Cost of sales
(2,059,440)
(54,280)
(2,113,720)
Profit for the financial period
544,276
(54,280)
489,996
The prior period adjustment is in relation to a change of accounting estimate for providing for slow moving stock. The slow moving stock provision was increased in the prior year which decreased profit, retained earnings and net assets in the prior period by the amounts disclosed above.
Although the amounts were not material to the financial statements, the directors made a decision to adjust the prior year in order to enhance the reliability and accuracy of the financial statements in the prior year and ensure consistency across both periods on financial information.
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