Company registration number 03193683 (England and Wales)
LANDOR CARTONS LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
PAGES FOR FILING WITH REGISTRAR
LANDOR CARTONS LIMITED
CONTENTS
Page
Accountants' report
1
Balance sheet
2
Notes to the financial statements
3 - 11
LANDOR CARTONS LIMITED
ACCOUNTANTS' REPORT TO THE BOARD OF DIRECTORS ON THE PREPARATION OF THE UNAUDITED STATUTORY FINANCIAL STATEMENTS OF LANDOR CARTONS LIMITED FOR THE YEAR ENDED 31 MARCH 2024
- 1 -
In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of Landor Cartons Limited for the year ended 31 March 2024 which comprise, the balance sheet and the related notes from the company’s accounting records and from information and explanations you have given us.
As a practising member firm of the Institute of Chartered Accountants in England and Wales (ICAEW), we are subject to its ethical and other professional requirements which are detailed at https://www.icaew.com/regulation.
This report is made solely to the board of directors of Landor Cartons Limited, as a body, in accordance with the terms of our engagement letter dated 20 May 2020. Our work has been undertaken solely to prepare for your approval the financial statements of Landor Cartons Limited and state those matters that we have agreed to state to the board of directors of Landor Cartons Limited, as a body, in this report in accordance with ICAEW Technical Release 07/16 AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Landor Cartons Limited and its board of directors as a body, for our work or for this report.
It is your duty to ensure that Landor Cartons Limited has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets, liabilities, financial position and profit of Landor Cartons Limited. You consider that Landor Cartons Limited is exempt from the statutory audit requirement for the year.
We have not been instructed to carry out an audit or a review of the financial statements of Landor Cartons Limited. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory financial statements.
Malcolm Piper & Company Limited
21 October 2024
Chartered Accountants
Kingsnorth House
Blenheim Way
Birmingham
West Midlands
United Kingdom
B44 8LS
LANDOR CARTONS LIMITED
BALANCE SHEET
AS AT
31 MARCH 2024
31 March 2024
- 2 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
4
725,609
Current assets
Stocks
56,229
731,635
Debtors
5
226,255
1,082,203
Cash at bank and in hand
7,057,148
917,108
7,339,632
2,730,946
Creditors: amounts falling due within one year
6
(1,079,704)
(1,007,987)
Net current assets
6,259,928
1,722,959
Total assets less current liabilities
6,259,928
2,448,568
Provisions for liabilities
(38,000)
(125,200)
Net assets
6,221,928
2,323,368
Capital and reserves
Called up share capital
8
150,000
150,000
Profit and loss reserves
6,071,928
2,173,368
Total equity
6,221,928
2,323,368
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
For the financial year ended 31 March 2024 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 21 October 2024 and are signed on its behalf by:
Mr R McHardy
Mr P Morley
Director
Director
Company registration number 03193683 (England and Wales)
LANDOR CARTONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
- 3 -
1
Accounting policies
Company information
Landor Cartons Limited is a private company limited by shares incorporated in England and Wales. The registered office is Kingsnorth House, Blenheim Way, Kingstanding, Birmingham, West Midlands, United Kingdom, B44 8LS.
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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
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
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
1.3
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:
Freehold buildings
Straight line over 10 - 15 years
Plant and equipment
Straight line over 2 - 10 years
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.
Freehold land is not depreciated.
1.4
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
LANDOR CARTONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 4 -
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.
1.5
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.
1.6
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.
1.7
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
LANDOR CARTONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 5 -
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. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
1.8
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.
1.9
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
LANDOR CARTONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 6 -
1.10
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.
1.11
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
The cost of providing benefits under defined benefit plans is determined separately for each plan using the projected unit credit method, and is based on actuarial advice.
The change in the net defined benefit liability arising from employee service during the year is recognised as an employee cost. The cost of plan introductions, benefit changes, settlements and curtailments are recognised as an expense in measuring profit or loss in the period in which they arise.
The net interest element is determined by multiplying the net defined benefit liability by the discount rate, taking into account any changes in the net defined benefit liability during the period as a result of contribution and benefit payments. The net interest is recognised in profit or loss as other finance revenue or cost.
Remeasurement changes comprise actuarial gains and losses, the effect of the asset ceiling and the return on the net defined benefit liability excluding amounts included in net interest. These are recognised immediately in other comprehensive income in the period in which they occur and are not reclassified to profit and loss in subsequent periods.
The net defined benefit pension asset or liability in the balance sheet comprises the total for each plan of the present value of the defined benefit obligation (using a discount rate based on high quality corporate bonds), less the fair value of plan assets out of which the obligations are to be settled directly. Fair value is based on market price information, and in the case of quoted securities is the published bid price. The value of a net pension benefit asset is limited to the amount that may be recovered either through reduced contributions or agreed refunds from the scheme.
1.12
Leases
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.
1.13
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.
1.14
At the time of approving the financial statements, the company has ceased manufacturing and is in the process of an orderly wind-down of operations. This has included an insurance buy-in of the defined benefit pension scheme liability. The financial statements have been prepared on a going concern basis because the directors have a reasonable expectation that the company's assets will realise adequate resources to meet the company's debts as they fall due. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
LANDOR CARTONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 7 -
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Total
14
41
4
Tangible fixed assets
Land and buildings
Plant and machinery etc
Total
£
£
£
Cost
At 1 April 2023
1,300,163
2,318,467
3,618,630
Disposals
(1,300,163)
(2,318,467)
(3,618,630)
At 31 March 2024
Depreciation and impairment
At 1 April 2023
649,347
2,243,674
2,893,021
Depreciation charged in the year
5,451
12,896
18,347
Eliminated in respect of disposals
(654,798)
(2,256,570)
(2,911,368)
At 31 March 2024
Carrying amount
At 31 March 2024
At 31 March 2023
650,816
74,793
725,609
Included in cost of land and buildings is freehold land of £0 (2023 - £632,000) which is not depreciated.
LANDOR CARTONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 8 -
5
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
95,108
987,563
Other debtors
121,647
66,640
216,755
1,054,203
2024
2023
Amounts falling due after more than one year:
£
£
Deferred tax asset
9,500
28,000
Total debtors
226,255
1,082,203
6
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
53,262
672,604
Corporation tax
724,896
25,261
Other taxation and social security
33,448
229,603
Other creditors
268,098
80,519
1,079,704
1,007,987
7
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
62,020
96,198
Landor Cartons Limited ("the Company") operates a defined benefit pension arrangement called Landor Cartons Pension Scheme ("the Scheme"). The Scheme was closed to new members from 30 September 2003. The amounts for the year ended 31 March 2024 relating to pensions are based on an actuarial valuation as at 1 April 2021.
Defined benefit schemes
The most recent actuarial valuations of plan assets and the present value of the defined benefit obligation were carried out at 1 April 2021 by Mr A Batchelor of Adkins Pensions, Fellow of the Institute of Actuaries. The present value of the defined benefit obligation, the related current service cost and past service cost were measured using the projected unit credit method.
LANDOR CARTONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
7
Retirement benefit schemes
(Continued)
- 9 -
2024
2023
Key assumptions
%
%
Discount rate
4.85%
4.7%
Expected rate of increase of pensions in payment
0% - 3.20%
0% - 3.3%
Expected rate of salary increases
0%
0%
Revaluation in deferment
2.90% - 4.45%
2.7% - 4.4%
Mortality assumptions
2024
2023
Mortality assumption - 105% of S3PA with CMI 2023 with a 1% per annum long term trend (2023 - 105% of S3PA with CMI 2021 model allowing for 25% of the data from 2020 and 2021 with a 1% per annum long term trend)
Assumed life expectations on retirement at age 65:
Retiring today
Years
Years
- Males
20.90
20.7
- Females
23.40
23.3
Retiring in 20 years
- Males
21.80
21.6
- Females
24.50
24.4
2024
2023
Amounts recognised in the profit and loss account
£
£
Net interest on net defined benefit liability/(asset)
(24,000)
16,000
The effect of any curtailment or settlement
1,375,000
-
Other costs and income
40,000
76,000
Total costs
1,391,000
92,000
2024
2023
Amounts taken to other comprehensive income
£
£
Actual cost/(income) on scheme assets
(514,000)
1,005,000
Less: calculated interest income
264,000
178,000
Cost/(return) on scheme assets excluding interest income
(250,000)
1,183,000
Actuarial changes related to obligations
82,000
(1,695,000)
Total costs/(income)
(168,000)
(512,000)
LANDOR CARTONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
7
Retirement benefit schemes
(Continued)
- 10 -
The amounts included in the balance sheet arising from the company's obligations in respect of defined benefit plans are as follows:
2024
2023
£
£
Present value of defined benefit obligations
5,280,000
5,270,000
Fair value of plan assets
(5,242,000)
(5,158,000)
Deficit in scheme
38,000
112,000
2024
Movements in the present value of defined benefit obligations
£
Liabilities at 1 April 2023
5,270,000
Benefits paid
(312,000)
Actuarial gains and losses
82,000
Interest cost
240,000
At 31 March 2024
5,280,000
The defined benefit obligations arise from plans which are wholly or partly funded.
2024
Movements in the fair value of plan assets
£
Fair value of assets at 1 April 2023
5,158,000
Interest income
264,000
Return on plan assets (excluding amounts included in net interest)
250,000
Plan introductions, changes, curtailments and settlements
(1,375,000)
Benefits paid
(312,000)
Contributions by the employer
1,297,000
Other
(40,000)
At 31 March 2024
5,242,000
The actual return on plan assets was £514,000 (2023 - £1,005,000).
2024
2023
Fair value of plan assets at the reporting period end
£
£
Equity instruments
-
1,308,000
Bonds
-
3,353,000
Cash/Other
12,000
497,000
Insurance policies
5,230,000
-
5,242,000
5,158,000
LANDOR CARTONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 11 -
8
Called up share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of £1 each
150,000
150,000
150,000
150,000
9
Operating lease commitments
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2024
2023
£
£
2,277
10
Related party transactions
Transactions with related parties
During the year the company entered into the following transactions with related parties:
The Directors were also Trustees of the Landor Cartons Pension Scheme.
During the year, Scheme Deficit Contributions received from the Company amounted to £1,336,879, including £75,000 in relation to the Scheme Deficit Contribution under the Schedule of Contributions and £1,261,879 in relation to the buy-out Deficit Funding Contributions (2023: £75,000). Payment of expenses on behalf of the Scheme by the Company during the year and recharged to the Scheme amounted to £264,642 (2023 - £272,554). Not all the costs incurred by the Company in respect of the Scheme were recharged to the Scheme during the year. Amounts not rechanged together with the Buy-out Deficit Funding Contributions and other Scheme costs and other specific professional costs incurred as part of the process of an orderly wind down of the Scheme totalling £1,469,689 (2023: £nil) have been treated as exceptional (see "exceptional items" note to the financial statements). At the year end, a net balance of £120,475 (2023 - £nil) was due for repayment to the company during the current year.
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