Company registration number 07994415 (England and Wales)
MERRIOTT PLASTICS GROUP LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
MERRIOTT PLASTICS GROUP LIMITED
COMPANY INFORMATION
Directors
I Curtis
P Dobson
G Goodhew
A P Lawrence
K Whatley
D Jones
Company number
07994415
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 GROUP LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2
Directors' responsibilities statement
3
Independent auditor's report
4 - 6
Group statement of comprehensive income
7
Group balance sheet
8
Company balance sheet
9
Group statement of changes in equity
10
Company statement of changes in equity
11
Group statement of cash flows
12
Notes to the financial statements
13 - 31
MERRIOTT PLASTICS GROUP 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. This year has seen significant investment in new machinery which will increase both sales and profit going forward. With challenging price increases from raw material, electricity, and the national minimum wage we have seen a decline in sales (reduced by 7.4%) and a slight increase in gross margin (increased by 0.2%).

 

Despite these challenges the directors are pleased to report a creditable profit before tax of £818k (prior year restated £1,019k) has been delivered.

 

The group 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 group 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 group 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 group 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 group 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

Group turnover for 2023/24 was £8.3m (Prior Year £9m), whilst the gross profit margin was 41% (prior year restated 41%).

 

Operating profit was £875k (prior year restated £1,060k).

 

Cash at bank and in hand increased from £542k to £1,663k putting the company in a strong position for the acquisition of Talisman Plastics Limited in May 2024.

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.

On behalf of the board

P Dobson
Director
23 October 2024
MERRIOTT PLASTICS GROUP 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 the holding company of a group of companies engaged in moulding of plastic and composites.

Results and dividends

The results for the year are set out on page 7.

Ordinary dividends were paid amounting to £42,768. The directors do not recommend payment of a further dividend.

Directors

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

I Curtis
P Dobson
G Goodhew
A P Lawrence
K Whatley
D Jones
Auditor

Black Fox Audit LLP were appointed as auditor to the group 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 truecompany has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the group'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 auditor of the company 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 auditor of the company 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
P Dobson
Director
23 October 2024
MERRIOTT PLASTICS GROUP 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 group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

MERRIOTT PLASTICS GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF MERRIOTT PLASTICS GROUP LIMITED
- 4 -
Opinion

We have audited the financial statements of Merriott Plastics Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2024 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent 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 group's and parent company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

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

Other information

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

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

MERRIOTT PLASTICS GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF MERRIOTT PLASTICS GROUP LIMITED
- 5 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

 

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

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the parent 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 parent 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 GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF MERRIOTT PLASTICS GROUP LIMITED
- 6 -

Use of our report

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

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 GROUP LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2024
- 7 -
2024
2023
as restated
Notes
£
£
Turnover
3
8,339,440
9,011,727
Cost of sales
(4,874,846)
(5,286,550)
Gross profit
3,464,594
3,725,177
Administrative expenses
(2,589,838)
(2,665,324)
Operating profit
4
874,756
1,059,853
Interest receivable and similar income
8
3,850
-
Interest payable and similar expenses
9
(60,988)
(40,465)
Profit before taxation
817,618
1,019,388
Tax on profit
10
(229,152)
8,234
Profit for the financial year
588,466
1,027,622
Profit for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.

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

MERRIOTT PLASTICS GROUP LIMITED
GROUP BALANCE SHEET
AS AT 31 MARCH 2024
31 March 2024
- 8 -
2024
2023
as restated
Notes
£
£
£
£
Fixed assets
Goodwill
12
1,453,207
1,661,318
Tangible assets
13
530,934
504,290
1,984,141
2,165,608
Current assets
Stocks
16
835,546
1,211,909
Debtors
17
1,849,613
2,020,502
Cash at bank and in hand
1,663,362
541,783
4,348,521
3,774,194
Creditors: amounts falling due within one year
18
(1,781,278)
(1,624,932)
Net current assets
2,567,243
2,149,262
Total assets less current liabilities
4,551,384
4,314,870
Creditors: amounts falling due after more than one year
19
(414,575)
(732,552)
Provisions for liabilities
Deferred tax liability
21
115,081
106,288
(115,081)
(106,288)
Net assets
4,021,728
3,476,030
Capital and reserves
Called up share capital
24
66,960
66,960
Capital redemption reserve
33,040
33,040
Profit and loss reserves
3,921,728
3,376,030
Total equity
4,021,728
3,476,030

These financial statements have been prepared in accordance with the provisions relating to medium-sized groups.

The financial statements were approved by the board of directors and authorised for issue on 23 October 2024 and are signed on its behalf by:
P Dobson
Director
Company registration number 07994415 (England and Wales)
MERRIOTT PLASTICS GROUP LIMITED
COMPANY BALANCE SHEET
AS AT 31 MARCH 2024
31 March 2024
- 9 -
2024
2023
as restated
Notes
£
£
£
£
Fixed assets
Tangible assets
13
-
0
6,167
Investments
14
7,315,100
7,315,100
7,315,100
7,321,267
Current assets
Debtors
17
105,441
3,354
Cash at bank and in hand
46,031
2,002
151,472
5,356
Creditors: amounts falling due within one year
18
(6,236,995)
(5,649,922)
Net current liabilities
(6,085,523)
(5,644,566)
Total assets less current liabilities
1,229,577
1,676,701
Creditors: amounts falling due after more than one year
19
(414,575)
(732,552)
Provisions for liabilities
Deferred tax liability
21
-
0
1,172
-
(1,172)
Net assets
815,002
942,977
Capital and reserves
Called up share capital
24
66,960
66,960
Capital redemption reserve
33,040
33,040
Profit and loss reserves
715,002
842,977
Total equity
815,002
942,977

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s loss for the year was £85,208 (2023 - £81,384 loss).

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 23 October 2024 and are signed on its behalf by:
P Dobson
Director
Company registration number 07994415 (England and Wales)
MERRIOTT PLASTICS GROUP LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
- 10 -
Share capital
Capital redemption reserve
Other reserves
Profit and loss reserves
Total
Notes
£
£
£
£
£
As restated for the period ended 31 March 2023:
Balance at 1 April 2022
81,666
18,334
-
5,051,258
5,151,258
Year ended 31 March 2023:
Profit and total comprehensive income
-
-
-
1,027,622
1,027,622
Dividends
11
-
-
-
(95,462)
(95,462)
Redemption of shares
24
(14,706)
14,706
-
-
-
Reduction of shares
24
-
-
-
(1,174,568)
(1,174,568)
Shares purchased by EBT
-
-
(1,432,820)
-
(1,432,820)
Transfers
-
-
1,432,820
(1,432,820)
-
Balance at 31 March 2023
66,960
33,040
-
3,376,030
3,476,030
Year ended 31 March 2024:
Profit and total comprehensive income
-
-
-
588,466
588,466
Dividends
11
-
-
-
(42,768)
(42,768)
Balance at 31 March 2024
66,960
33,040
-
3,921,728
4,021,728
MERRIOTT PLASTICS GROUP LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
- 11 -
Share capital
Capital redemption reserve
Other reserves
Profit and loss reserves
Total
Notes
£
£
£
£
£
As restated for the period ended 31 March 2023:
Balance at 1 April 2022
81,666
18,334
-
3,627,211
3,727,211
Year ended 31 March 2023:
Loss and total comprehensive income for the year
-
-
-
(81,384)
(81,384)
Dividends
11
-
-
-
(95,462)
(95,462)
Redemption of shares
24
(14,706)
14,706
-
-
-
0
Reduction of shares
24
-
-
-
(1,174,568)
(1,174,568)
Shares purchased by EBT
-
-
(1,432,820)
-
(1,432,820)
Transfers
-
-
1,432,820
(1,432,820)
-
Balance at 31 March 2023
66,960
33,040
-
842,977
942,977
Year ended 31 March 2024:
Profit and total comprehensive income
-
-
-
(85,207)
(85,207)
Dividends
11
-
-
-
(42,768)
(42,768)
Balance at 31 March 2024
66,960
33,040
-
715,002
815,002
MERRIOTT PLASTICS GROUP LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2024
- 12 -
2024
2023
as restated
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
31
1,885,125
1,211,834
Interest paid
(60,988)
(40,465)
Income taxes paid
(4,239)
(209,895)
Net cash inflow from operating activities
1,819,898
961,474
Investing activities
Purchase of tangible fixed assets
(162,734)
(364,433)
Proceeds from disposal of tangible fixed assets
1,667
-
Interest received
3,850
-
Net cash used in investing activities
(157,217)
(364,433)
Financing activities
Directors loan advances
(52,665)
-
Repayment of loans
-
(117,601)
Proceeds from new bank loans
-
1,010,000
Repayment of bank loans
(282,248)
-
Directors loan repayments
3,850
10,173
Dividends paid to equity shareholders
(42,768)
(95,462)
Purchase of own shares
-
(1,174,568)
Shares acquired by EBT
-
(1,416,153)
Net cash used in financing activities
(373,831)
(1,783,611)
Net increase/(decrease) in cash and cash equivalents
1,288,850
(1,186,570)
Cash and cash equivalents at beginning of year
374,512
1,561,082
Cash and cash equivalents at end of year
1,663,362
374,512
Relating to:
Cash at bank and in hand
1,663,362
541,783
Bank overdrafts included in creditors payable within one year
-
(167,271)
MERRIOTT PLASTICS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
- 13 -
1
Accounting policies
Company information

Merriott Plastics Group Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is .

 

The group consists of Merriott Plastics Group Limited and all of its subsidiaries.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

The 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 for parent company information presented within the consolidated financial statements:

 

1.2
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Merriott Plastics Group Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 31 March 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

MERRIOTT PLASTICS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 14 -
1.4
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group 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.

1.5
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.

Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.

1.6
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business 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, which is 3-20 years.

 

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

The directors assessed useful economic life of goodwill at the date of acquisition based on the fact that the trading companies have a long history of retaining a consistent customer base and have developed long-term trading relationships with their customers. No events have occurred since this assessment which indicate that estimated useful economic life has changed.

1.7
Tangible fixed assets

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

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

Short leasehold property improvements
Over the term of the lease
Plant and machinery
10-20% straight line
Fixtures, fittings and equipment
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 recognised in the profit and loss account.

MERRIOTT PLASTICS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 15 -
1.8
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

1.9
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible 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.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.10
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost of finished goods and raw materials 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.

 

Stock of raw materials is calculated using the average cost method.

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.

MERRIOTT PLASTICS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 16 -

During the year the directors made a decision to re-evaluate the stock provision across the group. There 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 23.

1.11
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.

1.12
Financial instruments

The group 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 group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and 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.

1.13
Equity instruments

Equity instruments issued by the group 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 group.

1.14
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 group’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 if, and only if, there is 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.

MERRIOTT PLASTICS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 17 -
1.15
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.16
Retirement benefits

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

1.17
Share-based payments

Equity-settled share-based payments are measured at fair value at the date of grant by reference to the fair value of the equity instruments granted using the EV/EBITDA model. The fair value determined at the grant date is expensed on a straight-line basis over the vesting period, based on the estimate of shares that will eventually vest. A corresponding adjustment is made to equity.

 

The expense in relation to options over the parent company’s shares granted to employees of a subsidiary is recognised by the company as a capital contribution, and presented as an increase in the company’s investment in that subsidiary.

When the terms and conditions of equity-settled share-based payments at the time they were granted are subsequently modified, the fair value of the share-based payment under the original terms and conditions and under the modified terms and conditions are both determined at the date of the modification. Any excess of the modified fair value over the original fair value is recognised over the remaining vesting period in addition to the grant date fair value of the original share-based payment. The share-based payment expense is not adjusted if the modified fair value is less than the original fair value.

 

Cancellations or settlements (including those resulting from employee redundancies) are treated as an acceleration of vesting and the amount that would have been recognised over the remaining vesting period is recognised immediately.

1.18
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 leased asset are consumed.

1.19
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.

MERRIOTT PLASTICS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 18 -
2
Judgements and key sources of estimation uncertainty

In the application of the group’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.

Intangible fixed assets

Judgements are required on estimating the useful economic lives of goodwill. Where an indication of impairment is identified the 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.

3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by geographical market
UK
7,181,391
7,235,111
Europe
517,610
543,144
Rest of World
640,439
1,233,472
8,339,440
9,011,727
2024
2023
£
£
Other revenue
Interest income
3,850
-
MERRIOTT PLASTICS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 19 -
4
Operating profit
2024
2023
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange losses/(gains)
17,832
(6,601)
Depreciation of owned tangible fixed assets
136,090
91,285
(Profit)/loss on disposal of tangible fixed assets
(1,667)
16,708
Amortisation of intangible assets
208,111
208,111
Operating lease charges
624,961
576,470
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
6,500
6,400
Audit of the financial statements of the company's subsidiaries
22,000
20,450
28,500
26,850
For other services
Taxation compliance services
1,700
1,865
Other taxation services
7,048
12,810
8,748
14,675
6
Employees

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

Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
Directors
6
6
6
6
Administration and support
6
6
-
-
Production
60
66
-
-
Total
72
78
6
6
MERRIOTT PLASTICS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
6
Employees
(Continued)
- 20 -

Their aggregate remuneration comprised:

Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
2,358,092
2,507,446
-
0
-
0
Social security costs
207,042
211,721
-
-
Pension costs
76,649
73,478
-
0
-
0
2,641,783
2,792,645
-
0
-
0
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
433,670
410,264
Company pension contributions to defined contribution schemes
32,705
31,280
466,375
441,544

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 5 (2023 - 5).

Remuneration disclosed above includes the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
109,258
107,038
Company pension contributions to defined contribution schemes
9,579
9,209
8
Interest receivable and similar income
2024
2023
£
£
Interest income
Other interest income
3,850
-
9
Interest payable and similar expenses
2024
2023
£
£
Interest on bank overdrafts and loans
60,988
40,465
MERRIOTT PLASTICS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 21 -
10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
219,054
(84,219)
Adjustments in respect of prior periods
(1,542)
-
Total current tax
217,512
(84,219)
Deferred tax
Origination and reversal of timing differences
11,640
75,985
Total tax charge/(credit)
229,152
(8,234)

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
817,618
1,019,388
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
204,405
193,684
Tax effect of expenses that are not deductible in determining taxable profit
54,620
44,318
Adjustments in respect of prior years
-
4,716
Over provided in prior years
(1,542)
-
Deferred tax adjustments in respect of prior years
369
17,745
Super deduction
-
(20,773)
EMI deduction
-
(269,736)
Effect of change in accounting estimate
-
21,812
Tax impact of prior period adjustment
(28,700)
-
Taxation charge/(credit)
229,152
(8,234)
11
Dividends
2024
2023
Recognised as distributions to equity holders:
£
£
Final paid
42,768
95,462
MERRIOTT PLASTICS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 22 -
12
Intangible fixed assets
Group
Goodwill
£
Cost
At 1 April 2023 and 31 March 2024
3,653,854
Amortisation and impairment
At 1 April 2023
1,992,536
Amortisation charged for the year
208,111
At 31 March 2024
2,200,647
Carrying amount
At 31 March 2024
1,453,207
At 31 March 2023
1,661,318
Company
Goodwill
£
Cost
At 1 April 2023 and 31 March 2024
33,200
Amortisation and impairment
At 1 April 2023 and 31 March 2024
33,200
Carrying amount
At 31 March 2024
-
0
At 31 March 2023
-
0
MERRIOTT PLASTICS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 23 -
13
Tangible fixed assets
Group
Short leasehold property improvements
Plant and machinery
Fixtures, fittings and equipment
Computer equipment
Total
£
£
£
£
£
Cost
At 1 April 2023
131,552
2,547,899
18,672
38,720
2,736,843
Additions
-
161,146
653
935
162,734
At 31 March 2024
131,552
2,709,045
19,325
39,655
2,899,577
Depreciation and impairment
At 1 April 2023
85,909
2,097,091
18,672
30,881
2,232,553
Depreciation charged in the year
6,287
122,891
120
6,792
136,090
At 31 March 2024
92,196
2,219,982
18,792
37,673
2,368,643
Carrying amount
At 31 March 2024
39,356
489,063
533
1,982
530,934
At 31 March 2023
45,643
450,808
-
7,839
504,290
Company
Computer equipment
£
Cost
At 1 April 2023 and 31 March 2024
37,000
Depreciation and impairment
At 1 April 2023
30,833
Depreciation charged in the year
6,167
At 31 March 2024
37,000
Carrying amount
At 31 March 2024
-
0
At 31 March 2023
6,167
14
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
15
-
-
7,315,100
7,315,100

In the opinion of the directors, the aggregate value of the company's investment in subsidiary undertakings is not less than the amount included in the balance sheet.

MERRIOTT PLASTICS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
14
Fixed asset investments
(Continued)
- 24 -
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 April 2023 and 31 March 2024
7,315,100
Carrying amount
At 31 March 2024
7,315,100
At 31 March 2023
7,315,100
15
Subsidiaries

Details of the company's subsidiaries at 31 March 2024 are as follows:

Name of undertaking
Address
Class of
% Held
shares held
Direct
Indirect
ICM (Plastic Moulding) Limited
1
Ordinary
-
100.00
Merriott Plastic Trustee Limited
1
Ordinary
100.00
-
Merriott Plastics Limited
1
Ordinary
100.00
-

Registered office addresses (all UK unless otherwise indicated):

1
Eden works, Blacknell Lane, Crewkerne, Somerset, TA18 7HE

The shareholding in ICM (Plastic Moulding) Limited is indirect via the shareholding in Merriott Plastics Limited.

 

Merriott Plastics Trustee Limited is excluded from the consolidation in accordance with s479 of the Companies Act 2006 as it is a dormant company.

16
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Raw materials and consumables
571,391
694,494
-
-
Work in progress
71,925
100,394
-
-
Finished goods and goods for resale
192,230
417,021
-
0
-
0
835,546
1,211,909
-
-
MERRIOTT PLASTICS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 25 -
17
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
1,448,365
1,746,792
-
0
-
0
Corporation tax recoverable
10,526
84,219
-
0
-
0
Other debtors
53,743
29,102
53,743
-
0
Prepayments and accrued income
326,929
147,492
51,698
3,354
1,839,563
2,007,605
105,441
3,354
Amounts falling due after more than one year:
Deferred tax asset (note 21)
10,050
12,897
-
0
-
0
Total debtors
1,849,613
2,020,502
105,441
3,354
18
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts
20
198,576
330,118
198,576
162,847
Trade creditors
998,416
898,236
45,066
5,795
Amounts owed to group undertakings
-
-
5,985,473
5,471,931
Corporation tax payable
139,580
-
-
0
-
0
Other taxation and social security
215,203
142,555
-
0
2,042
Other creditors
-
3,279
-
0
-
0
Accruals and deferred income
229,503
250,744
7,880
7,307
1,781,278
1,624,932
6,236,995
5,649,922
19
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts
20
411,575
729,552
411,575
729,552
Other creditors
3,000
3,000
3,000
3,000
414,575
732,552
414,575
732,552
MERRIOTT PLASTICS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 26 -
20
Loans and overdrafts
Group
Company
2024
2023
2024
2023
£
£
£
£
Bank loans
610,151
892,399
610,151
892,399
Bank overdrafts
-
167,271
-
0
-
0
610,151
1,059,670
610,151
892,399
Payable within one year
198,576
330,118
198,576
162,847
Payable after one year
411,575
729,552
411,575
729,552

Interest is due on the bank loan at a varying rate from 4.65% with the loan being secured over the assets of the group. The bank overdrafts represent a funding facility operated by the two trading subsidiary companies. The repayment terms are 120 days from receipt of funding. Bank overdrafts are secured over the assets of the group.

21
Deferred taxation

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

Liabilities
Liabilities
Assets
Assets
2024
2023
2024
2023
Group
£
£
£
£
Accelerated capital allowances
115,081
106,288
10,050
12,897
Liabilities
Liabilities
Assets
Assets
2024
2023
2024
2023
Company
£
£
£
£
Accelerated capital allowances
-
1,172
-
-
Group
Company
2024
2024
Movements in the year:
£
£
Liability at 1 April 2023
93,391
1,172
Charge/(credit) to profit or loss
11,640
(1,172)
Liability at 31 March 2024
105,031
-
MERRIOTT PLASTICS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 27 -
22
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
76,649
73,478

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

The group was committed to pay £nil (2023: £nil) in respect of defined contribution schemes at the balance sheet date.

23
Share-based payment transactions

Certain Eligible Employees of the trading subsidiaries participated in an Enterprise Management Incentive Scheme in the period ended 31 March 2024.

Group and company
Number of share options
Weighted average exercise price
2024
2023
2024
2023
Number
Number
£
£
Outstanding at 1 April 2023
-
-
-
-
Granted
8,564
-
6.43
-
Outstanding at 31 March 2024
8,564
-
6.43
-
Exercisable at 31 March 2024
-
-
-
-

The options outstanding at 31 March 2024 had an exercise price of £6.43, and a remaining maximum contractual life of 10 years.

Group and company

The weighted average fair value of options granted in the year was determined using the EV/EBITDA model.

The total intrinsic value at 31 March 2024 amounted to £55,067 (2023 - £nil) for the group and £55,067 (2023 - £nil) for the company.

24
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
D Ordinary shares of 47.57p each
19,265
19,265
9,165
9,165
B1 Ordinary shares of £1 each
19,265
19,265
19,265
19,265
B2 Ordinary shares of £1 each
19,265
19,265
19,265
19,265
B3 Ordinary shares of £1 each
19,265
19,265
19,265
19,265
77,060
77,060
66,960
66,960
MERRIOTT PLASTICS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
24
Share capital
(Continued)
- 28 -

All classes of shares rank parri passu with regards to voting, dividends and capital distributions. They carry no right to fixed income or to a fixed repayment of capital, one share is entitled to one vote.

 

On 15 July 2022 the company repurchased 11,353 A ordinary shares and 3,353 C ordinary shares for £1.438m which were subsequently cancelled.

 

On 18 July 2022 5,000 A ordinary shares and 13,000 C ordinary shares were redesignated as 6,000 B1 Ordinary shares, 6,000 B2 Ordinary shares, 6,000 B3 Ordinary shares on transfer to the holders of the B shares.

 

On 18 July 2022 9,165 Ordinary D shares were sub-divided into 19,265 ordinary D shares.

25
Reserves

Profit and loss reserves represent the retained profits of the company since its inception.

 

The capital redemption reserve represents the previous purchase of own share capital in 2017, 2019, 2020 and 2022. This reserve is not distributable.

 

The other reserves represents shares that the Merriott Plastics Group Employee Benefit Trust held in Merriott Plastics Group Limited.

26
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 bank loan. As at 31 March 2024 the amount owed by the rest of the Group was £nil (2023: £167,271) and £610,151 (2023: £892,400) respectively. The liabilities are secured over the assets of the group.

27
Operating lease commitments
Lessee

The operating leases represent leases of premises and equipment from third parties. The leases are negotiated over terms of 3 - 10 years and rentals are fixed for up to 5 years.

 

Renewal of lease agreements is dependent upon negotiation near the end of the lease between the Board of Directors and the third party.

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Group
Company
2024
2023
2024
2023
£
£
£
£
Within one year
474,498
473,513
-
-
Between two and five years
1,804,530
1,813,700
-
-
In over five years
1,286,234
1,207,888
-
-
3,565,262
3,495,101
-
-
MERRIOTT PLASTICS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 29 -
28
Events after the reporting date

After the reporting date, the company acquired 100% of the share capital of Talisman Plastics Limited.

29
Related party transactions
Transactions with related parties

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

Services received
2024
2023
£
£
Group
Other related parties
41,040
38,000
Company
Other related parties
41,040
38,000

During the period a company within the group paid rent to a pension scheme in which certain of the directors are trustees for use of premises amounting to £nil (2023: £23,000).

The following amounts were outstanding at the reporting end date:

Amounts due to related parties
2024
2023
£
£
Group
Key management personnel
3,000
6,364
Other related parties
4,104
-
Company
Key management personnel
3,000
3,000
Other related parties
4,104
-
Other information

The amounts due to key management personnel are interest free and repayable in more than one year.

 

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.

MERRIOTT PLASTICS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 30 -
30
Directors' transactions

Dividends totalling £42,768 (2023 - £95,462) were paid in the year in respect of shares held by the company's directors.

Loans have been granted by the group to its directors as follows:

Description
% Rate
Opening balance
Amounts advanced
Interest charged
Amounts repaid
Closing balance
£
£
£
£
£
Loan
2.00
-
52,000
665
(3,850)
48,815
-
52,000
665
(3,850)
48,815
31
Cash generated from group operations
2024
2023
£
£
Profit for the year after tax
588,466
1,027,622
Adjustments for:
Taxation charged/(credited)
229,152
(8,234)
Finance costs
60,988
40,465
Investment income
(3,850)
-
(Gain)/loss on disposal of tangible fixed assets
(1,667)
16,708
Amortisation and impairment of intangible assets
208,111
208,111
Depreciation and impairment of tangible fixed assets
136,090
91,285
Movements in working capital:
Decrease/(increase) in stocks
376,363
(56,311)
Decrease in debtors
143,164
206,630
Increase/(decrease) in creditors
148,308
(314,442)
Cash generated from operations
1,885,125
1,211,834
32
Analysis of changes in net funds/(debt) - group
1 April 2023
Cash flows
31 March 2024
£
£
£
Cash at bank and in hand
541,783
1,121,579
1,663,362
Bank overdrafts
(167,271)
167,271
-
374,512
1,288,850
1,663,362
Borrowings excluding overdrafts
(892,399)
282,248
(610,151)
(517,887)
1,571,098
1,053,211
MERRIOTT PLASTICS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 31 -
33
Prior period adjustment
Changes to the balance sheet - group
As previously reported
Adjustment
As restated at 31 Mar 2023
£
£
£
Current assets
Stocks
1,326,711
(114,802)
1,211,909
Capital and reserves
Profit and loss reserves
3,490,832
(114,802)
3,376,030
Changes to the profit and loss account - group
As previously reported
Adjustment
As restated
Period ended 31 March 2023
£
£
£
Cost of sales
(5,171,748)
(114,802)
(5,286,550)

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.

Reconciliation of changes in equity - company
The prior period adjustments do not give rise to any effect upon equity.
Reconciliation of changes in loss for the previous financial period
2023
£
Adjustments to prior year
Total adjustments
-
Loss as previously reported
(81,384)
Loss as adjusted
(81,384)
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