Company registration number 09451156 (England and Wales)
ASK PLASTICS LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
ASK PLASTICS LTD
COMPANY INFORMATION
Director
Mr A S Kooner
Company number
09451156
Registered office
Tagus House
9 Ocean Way
Southampton
Hampshire
United Kingdom
SO14 3TJ
Auditor
HJS Chartered Accountants
Tagus House
9 Ocean Way
Southampton
Hampshire
United Kingdom
SO14 3TJ
ASK PLASTICS LTD
CONTENTS
Page
Strategic report
1 - 2
Director's report
3
Director's responsibilities statement
4
Independent auditor's report
5 - 8
Profit and loss account
9
Statement of comprehensive income
10
Balance sheet
11
Statement of changes in equity
12
Statement of cash flows
13
Notes to the financial statements
14 - 26
ASK PLASTICS LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

The director presents the strategic report for the year ended 31 December 2023.

Review of the business

The principal activities of ASK Plastics Ltd in 2023 were the extrusion and sale of polythene film and bags across the nation.

ASK Plastics Ltd has established itself as a reliable provider of high-quality polythene products in the regional market, proven with the increase in turnover from 2022. Fitting previous yearly trends, there was a dip in April due to majority of customer year ends, however turnover returned to expected levels in May onwards.

Within 2023 the packaging industry within the UK was stable amidst recovering from the Covid-19 Pandemic.

The increase of plastic packaging tax in April 2023 up to £210.82 per tonne (and subsequently to £217.85 per tonne from 1 April 2024) has encouraged more consumers to opt for polythene with recycled content. However, it did not disrupt the sales of polythene products within the country. We have implemented new policies to incorporate recycled content.

After 8 years in the industry, ASK Plastics has created many great lasting relationships with its suppliers and customers, proven by the repeat business and customer given to both over this duration.

ASK plastics strives itself on being an integral part of the community, supporting many grassroots projects with sponsorships of sports teams from under 9’s up to under 16s.

Future Plans of ASK Plastics Ltd

In 2024 we have purchased a plot to build a new factory which can accommodate our growth and future plans for increased recycling to create a closed loop system. This would increase the ability to collect, recycle and reuse our own material, reducing the carbon footprint and reducing the need for new material.

With the increased space and power facilities, this would also increase our ability to implement new machinery , creating more efficiency overall through the manufacturing process.

Long term factors affecting the company

The continued stigma around plastics and polythene in general still is a long term factor affecting the company.

All products ASK plastics manufactures are able to be recycled, reprocessed and reused in the manufacturing process. With increased marketing and promotion on the recycling of polythene products, rather than to disuse the product entirely.

Key Performance Indicators

ASK Plastics uses many KPIs to understand where they are doing well and where they can improve. As well as using turnover, Gross margin, operating profit and debtor days which can all be derived from the financial statements the directors also consider monthly sales data, number of returns & complaints, and customer satisfaction.

With majority of our sales coming from repeat business from our customers, this is a clear performance indicator on a certain range of jobs.

Principal risks and uncertainties

UK business in general are facing many uncertainties as the consequence of environmental, geographical and political events such as the Russian invasion of Ukraine and conflicts in Israel and Palestine.

These events impact on supply chain, distribution issues of raw material into the country. The conflict in Israel and Palestine, could affect surrounding middle eastern countries which would affect oil prices; in turn increasing polymer costs, and adversely affecting distribution of material out of the middle east.

To negate the above the risks to the business, due to the business relationships it has built with its suppliers, the Directors have procedures in place to have a constant supply of material and the capabilities to hold additional stock if delays should arise.

ASK PLASTICS LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -

Financial Risk Management:

Monthly management accounts are produced to see performance and where improvements can be made along with where the company has had most growth.

Working capital is monitored through bank reconciliations, day book postings, and day to day inhouse bookkeeping.

On behalf of the board

Mr A S Kooner
Director
30 October 2024
ASK PLASTICS LTD
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -

The director presents his annual report and financial statements for the year ended 31 December 2023.

Principal activities

The principal activity of the company continued to be that of the manufacture of polythene products.

Results and dividends

The results for the year are set out on page 9.

No ordinary dividends were paid. The director does not recommend payment of a final dividend.

Director

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

Mr A S Kooner
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
Mr A S Kooner
Director
30 October 2024
ASK PLASTICS LTD
DIRECTOR'S RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -

The director is responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is 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 director is required to:

 

 

The director is 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. He is 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.

ASK PLASTICS LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF ASK PLASTICS LTD
- 5 -
Opinion

In our opinion the financial statements:

We have audited the financial statements of Ask Plastics Ltd (the 'company') for the year ended 31 December 2023 which comprise the statement of comprehensive income, the balance sheet and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

Basis for opinion

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

Emphasis of matter

When considering existence of fixed assets and stock however, due to our late appointment, we cannot be certain of the balances.  We have performed a rationalisation test of stock and WIP balances during the course of the audit, based on information available to us at the time of the audit work.  

 

We have held discussions with management with regards to the intangibles balance and have written to HMRC to ascertain if the balance relates to R&D expenditure, at the time of reporting we have not yet received a response.

 

Our opinion remains unchanged due to these matters.

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.

ASK PLASTICS LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF ASK PLASTICS LTD (CONTINUED)
- 6 -

Other information

The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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:

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 director's report.

 

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

Responsibilities of director

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.

ASK PLASTICS LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF ASK PLASTICS LTD (CONTINUED)
- 7 -
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.

 

Based on our understanding of the company and industry, we identified that the principal risks of non-compliance with laws and regulations related to breaches of UK regulatory principles, such as those governed by the relevant construction authorities. We also considered the laws and regulations which have a direct impact on the financial statements such as the Companies Act 2006.

 

We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to management bias in accounting estimates and judgmental areas of the financial statements.


Audit procedures performed by the audit engagement team included:

 

There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or though collusion.

 

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

Use of our report

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.

ASK PLASTICS LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF ASK PLASTICS LTD (CONTINUED)
- 8 -
Angela Trainor
Senior Statutory Auditor
For and on behalf of HJS Chartered Accountants
30 October 2024
Chartered Accountants and Statutory Auditor
Tagus House
9 Ocean Way
Southampton
Hampshire
United Kingdom
SO14 3TJ
ASK PLASTICS LTD
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
Year
Period
ended
ended
31 Dec
31 Dec
2023
2022
Notes
£
£
Turnover
3
11,649,372
9,687,333
Cost of sales
(8,739,953)
(7,843,690)
Gross profit
2,909,419
1,843,643
Administrative expenses
(2,726,245)
(1,624,635)
Other operating income
222,000
100,000
Operating profit
4
405,174
319,008
Interest receivable and similar income
7
4,064
(3,571)
Interest payable and similar expenses
8
(4,571)
(3,749)
Profit before taxation
404,667
311,688
Tax on profit
9
(112,023)
(57,076)
Profit for the financial year
292,644
254,612

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

ASK PLASTICS LTD
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
Year
Period
ended
ended
2023
2022
£
£
Profit for the year
292,644
254,612
Other comprehensive income
-
-
Total comprehensive income for the year
292,644
254,612
ASK PLASTICS LTD
BALANCE SHEET
AS AT 31 DECEMBER 2023
31 December 2023
- 11 -
2023
2022
Notes
£
£
£
£
Fixed assets
Goodwill
11
1
1
Other intangible assets
11
611,968
611,968
Total intangible assets
611,969
611,969
Tangible assets
12
224,183
163,327
836,152
775,296
Current assets
Stocks
13
1,438,990
1,624,993
Debtors
14
4,752,768
4,065,084
Cash at bank and in hand
15,129
102,977
6,206,887
5,793,054
Creditors: amounts falling due within one year
15
(4,801,249)
(4,605,026)
Net current assets
1,405,638
1,188,028
Total assets less current liabilities
2,241,790
1,963,324
Creditors: amounts falling due after more than one year
16
(14,947)
(24,333)
Provisions for liabilities
Deferred tax liability
18
36,040
40,832
(36,040)
(40,832)
Net assets
2,190,803
1,898,159
Capital and reserves
Called up share capital
20
100
100
Profit and loss reserves
2,190,703
1,898,059
Total equity
2,190,803
1,898,159
The financial statements were approved and signed by the director and authorised for issue on 30 October 2024
Mr A S Kooner
Director
Company Registration No. 09451156
ASK PLASTICS LTD
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 12 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 April 2022
100
1,667,047
1,667,147
Period ended 31 December 2022:
Profit and total comprehensive income
-
254,612
254,612
Dividends
10
-
(23,600)
(23,600)
Balance at 31 December 2022
100
1,898,059
1,898,159
Year ended 31 December 2023:
Profit and total comprehensive income
-
292,644
292,644
Balance at 31 December 2023
100
2,190,703
2,190,803
ASK PLASTICS LTD
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 13 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
25
251,241
222,516
Interest paid
(4,571)
(3,749)
Income taxes paid
(98,393)
(86,821)
Net cash inflow from operating activities
148,277
131,946
Investing activities
Purchase of tangible fixed assets
(164,908)
(330)
Repayment of loans
(65,895)
(13,398)
Interest received
4,064
(3,571)
Net cash used in investing activities
(226,739)
(17,299)
Financing activities
Repayment of bank loans
(9,386)
(7,334)
Dividends paid
-
0
(23,600)
Net cash used in financing activities
(9,386)
(30,934)
Net (decrease)/increase in cash and cash equivalents
(87,848)
83,713
Cash and cash equivalents at beginning of year
102,977
19,264
Cash and cash equivalents at end of year
15,129
102,977
ASK PLASTICS LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 14 -
1
Accounting policies
Company information

Ask Plastics Ltd is a private company limited by shares incorporated in England and Wales. The registered office is Tagus House, 9 Ocean Way, Southampton, Hampshire, United Kingdom, SO14 3TJ.

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.

1.2
Going concern

Atruet the time of approving the financial statements, the director has a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the director continues 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.

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

 

Sale of goods are recognised when goods are shipped and title has passed.

1.4
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life.

1.5
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.

Amortisation 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:

Development costs
Not amortised
ASK PLASTICS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 15 -
1.6
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
40% Straight Line
Plant and equipment
25% Reducing Balance
Computers
33.33% 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.

1.7
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets. A provision is made for any impairment loss and taken to the profit and loss account.

1.8
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.

1.9
Cash and cash equivalents

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

1.10
Financial instruments

The company only enters into Basic financial instrument transactions.

 

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.

ASK PLASTICS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 16 -
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.

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.

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.

ASK PLASTICS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 17 -
Derecognition of financial liabilities

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

1.11
Equity instruments

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

1.12
Taxation

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

Current tax

The current tax liability is recognised for the tax payable on the taxable profit of the current and past periods. A current tax asset is recognised in respect of a tax loss that can be carried back to recover tax paid in a previous period.

Deferred tax

Deferred tax is recognised in respect of all timing differences between the recognition of income and expenses in the financial statements and their inclusion in the tax assessments.

 

Unrelieved tax losses and other 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.

 

The company's liability for current and deferred tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

1.13
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.

1.14
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

ASK PLASTICS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 18 -
1.15
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.

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

1.16
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 director is required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Sales
11,649,372
9,687,333
2023
2022
£
£
Turnover analysed by geographical market
UK Sales
11,649,372
9,687,333
2023
2022
£
£
Other revenue
Interest income
4,064
(3,571)
ASK PLASTICS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 19 -
4
Operating profit
2023
2022
Operating profit for the year is stated after charging:
£
£
Exchange losses
194
3,875
Fees payable to the company's auditor for the audit of the company's financial statements
18,000
-
0
Depreciation of owned tangible fixed assets
104,052
37,671
Operating lease charges
277,780
164,731
5
Employees

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

2023
2022
Number
Number
34
37

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
901,187
556,405
Social security costs
70,499
43,589
Pension costs
12,140
8,823
983,826
608,817
6
Director's remuneration
2023
2022
£
£
Remuneration for qualifying services
26,400
19,800
Company pension contributions to defined contribution schemes
173
-
26,573
19,800
7
Interest receivable and similar income
2023
2022
£
£
Interest income
Other interest income
4,064
(3,571)
ASK PLASTICS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 20 -
8
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
1,262
653
Other finance costs:
Other interest
3,309
3,096
4,571
3,749
9
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
116,316
66,411
Adjustments in respect of prior periods
499
-
0
Total current tax
116,815
66,411
Deferred tax
Origination and reversal of timing differences
(4,792)
(9,335)
Total tax charge
112,023
57,076
ASK PLASTICS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
9
Taxation
(Continued)
- 21 -

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

2023
2022
£
£
Profit before taxation
404,667
311,688
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2022: 19.00%)
101,167
59,221
Tax effect of expenses that are not deductible in determining taxable profit
17,695
7,190
Tax effect of income not taxable in determining taxable profit
(610)
-
0
Under/(over) provided in prior years
499
-
0
Deferred Tax Movement
(4,792)
(9,335)
Capital Allowances
(5,783)
-
0
Taxation charge for the year
108,176
57,076
Taxation charge in the financial statements
112,023
57,076
Reconciliation - the current year tax charge does not reconcile to the above analysis.  Please review figures in the database.
(3,847)
-
10
Dividends
2023
2022
£
£
Final paid
-
0
23,600
11
Intangible fixed assets
Goodwill
Development costs
Total
£
£
£
Cost
At 1 January 2023 and 31 December 2023
1
611,968
611,969
Amortisation and impairment
At 1 January 2023 and 31 December 2023
-
0
-
0
-
0
Carrying amount
At 31 December 2023
1
611,968
611,969
At 31 December 2022
1
611,968
611,969
ASK PLASTICS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 22 -
12
Tangible fixed assets
Leasehold land and buildings
Plant and equipment
Computers
Total
£
£
£
£
Cost
At 1 January 2023
-
0
380,842
330
381,172
Additions
141,778
20,242
2,888
164,908
At 31 December 2023
141,778
401,084
3,218
546,080
Depreciation and impairment
At 1 January 2023
-
0
217,799
46
217,845
Depreciation charged in the year
61,755
41,946
351
104,052
At 31 December 2023
61,755
259,745
397
321,897
Carrying amount
At 31 December 2023
80,023
141,339
2,821
224,183
At 31 December 2022
-
0
163,043
284
163,327
13
Stocks
2023
2022
£
£
Raw materials and consumables
513,990
549,993
Work in progress
925,000
1,075,000
1,438,990
1,624,993
14
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
2,461,815
2,558,265
Other debtors
1,995,878
1,462,465
Prepayments and accrued income
295,075
44,354
4,752,768
4,065,084
ASK PLASTICS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 23 -
15
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Bank loans
17
10,000
10,000
Trade creditors
2,027,000
2,027,697
Corporation tax
165,346
146,924
Other taxation and social security
269,274
136,146
Other creditors
2,236,623
2,261,880
Accruals and deferred income
93,006
22,379
4,801,249
4,605,026

The company uses a factoring company for its trade receivables and there is a charge from the factoring company which has been placed over the company.

16
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Bank loans and overdrafts
17
14,947
24,333
17
Loans and overdrafts
2023
2022
£
£
Bank loans
24,947
34,333
Payable within one year
10,000
10,000
Payable after one year
14,947
24,333

The long-term loans are secured by fixed charges over 6 years.

18
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Liabilities
Liabilities
2023
2022
Balances:
£
£
Accelerated capital allowances
36,040
40,832
ASK PLASTICS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
18
Deferred taxation
(Continued)
- 24 -
2023
Movements in the year:
£
Liability at 1 January 2023
40,832
Credit to profit or loss
(4,792)
Liability at 31 December 2023
36,040

The deferred tax liability set out above is expected to reverse within 12 months and relates to accelerated capital allowances that are expected to mature within the same period.

19
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
12,140
8,823

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.

20
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of £1 each
100
100
100
100
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:

2023
2022
£
£
Within one year
249,130
218,000
Between two and five years
194,295
411,500
443,425
629,500
ASK PLASTICS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 25 -
22
Post Balance Sheet Events

On 5 July 2024 clearance was given for a group to be formed. Ask Group Holdings Limited became the parent company. By virtue of the shareholding within the parent company, Mr A S Kooner is deemed to be the ultimate controlling party.

Due to the expansion of the business a loan was taken out on 25 July 2024 in order to purchase land for a new site whilst a mortgage is put into place. This has resulted in a charge by Capify UK LLC being placed over the business. It is expected that this will be removed before 31 December 2024 and replaced with a mortgage.

23
Related party transactions

Ask Plastics Birmingham Ltd - Director is Key Management Personnel

 

Sales and recharges during the year amounted to £1,202,500. Purchases and recharges during the year amounted to £336,392. At the balance sheet date an amount of £1,403,779 (2022: £939,415) was owed from the above named related party.

Ask Plastics Ltd rents a property on behalf of Ask Plastics Birmingham Ltd. The rental charge is £72,000 per annum.

Akaal Property Development Ltd - Director is Key Management Personnel

 

Sales and recharges during the year amounted to £28,533. At the balance sheet date an amount of £301,184 (2022: £292,700) was owed from the above named related party.

D K Trading Services Ltd - Director is Key Management Personnel

 

Sales and recharges during the year amounted to £27,938. Purchases and recharges during the year amounted to £102,591. At the balance sheet date an amount of £58,430 (2022: Nil) was owed to the above named related party.

Baba Corporation Limited - Director is Key Management Personnel

 

Sales and recharges during the year amounted to £69,699. Purchases and recharges during the year amounted to £69,199. At the balance sheet date an amount of £23,023 (2022: £23,523) was owed to the above-named related party.

24
Directors' transactions

Dividends totalling £0 (2022 - £23,600) were paid in the year in respect of shares held by the company's directors.

ASK PLASTICS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 26 -
25
Cash generated from operations
2023
2022
£
£
Profit for the year after tax
292,644
254,612
Adjustments for:
Taxation charged
112,023
57,076
Finance costs
4,571
3,749
Investment income
(4,064)
3,571
Depreciation and impairment of tangible fixed assets
104,052
37,671
Movements in working capital:
Decrease in stocks
186,003
465,968
Increase in debtors
(621,789)
(2,083,515)
Increase in creditors
177,801
1,483,384
Cash generated from operations
251,241
222,516
26
Analysis of changes in net funds/(debt)
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
102,977
(87,848)
15,129
Borrowings excluding overdrafts
(34,333)
9,386
(24,947)
68,644
(78,462)
(9,818)
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