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COMPANY REGISTRATION NUMBER: 02108847
Wrights Plastics Limited
Financial Statements
30 April 2024
Wrights Plastics Limited
Financial Statements
Year ended 30 April 2024
Contents
Pages
Officers and professional advisers
1
Strategic report
2 to 3
Directors' report
4 to 5
Independent auditor's report to the members
6 to 9
Statement of comprehensive income
10
Statement of financial position
11
Statement of changes in equity
12
Statement of cash flows
13
Notes to the financial statements
14 to 25
Wrights Plastics Limited
Officers and Professional Advisers
The board of directors
M Wright
N Wright
Company secretary
M J Wright
Registered office
Brandon Way
West Bromwich
West Midlands
United Kingdom
B70 8JH
Auditor
BSN Associates Limited
Chartered accountants & statutory auditor
3B Swallowfield Courtyard
Wolverhampton Road
Oldbury
West Midlands
B69 2JG
Wrights Plastics Limited
Strategic Report
Year ended 30 April 2024
Introduction The Directors present the Company strategic report for the year ended 30 April 2024. The principal activity of the Company continued to be the manufacturing of point of purchase display equipment and industrial solutions from sheet plastic materials. Business review The results for the year show a loss of £2,475,481 of this £2,539,433 is due to a loan relationship write off in the year with a related company in which the directors and shareholders are connected, which has given the company a trading profit for the year of £63,952 compared to the loss last year of £8,156. The directors are pleased with the improvement in the underlying trading position for the year which was in line with expectations. Challenging conditions continue to prevail supplying into the retail sector and after a strategic review the Company is further targeting the industrial sector. This is proving successful and the Directors are confident that the company will return to further profitability in the forthcoming 12 months. Attention in the short to medium term has been on ensuring the safety and well-being of our employees, securing the materials necessary to meet demand and managing cashflow and working capital in general with the Directors of the opinion that the Company can continue to operate within its current and future financial parameters and so continue to meet its debts as they fall due. The on-going aim of the Directors is to maintain Wrights Plastics Limited 's highly regarded reputation for service, quality and industry expertise. Principal risks and uncertainties The business' principal financial instruments comprise bank balances, trade debtors and trade creditors. The main purpose of these instruments is to finance the business' operations. Liquidity risk All of the business' cash balances are held in such a way that achieves a competitive rate of interest. The business makes use of money market facilities where funds are available. Trade debtors are managed in respect of credit and cash flow risk by policies concerning the credit offered to customers and regular monitoring of amounts outstanding for both time and credit limits. The amounts presented in the balance sheet are net of allowances for doubtful debtors. Trade creditors' liquidity risk is managed by ensuring sufficient funds are available to meet amounts due. Financial key performance indicators The financial key performance indicators for the Company are turnover and profitability. The Directors are pleased with the performance of the Company in this regard, given the circumstances detailed in the Business Review.
This report was approved by the board of directors on 28 January 2025 and signed on behalf of the board by:
M Wright
Director
Registered office:
Brandon Way
West Bromwich
West Midlands
United Kingdom
B70 8JH
Wrights Plastics Limited
Directors' Report
Year ended 30 April 2024
The directors present their report and the financial statements of the company for the year ended 30 April 2024 .
Directors
The directors who served the company during the year were as follows:
M Wright
N Wright
Dividends
Particulars of recommended dividends are detailed in note 11 to the financial statements.
Future developments
The future developments of the company are detailed within the strategic report.
Disclosure of information in the strategic report
The following disclosures as required by S414C(ii) have been elevated to the strategic report. - Principal risks and uncertainties; - Financial key performance indicators.
Directors' responsibilities statement
The directors are responsible for preparing the strategic report, directors' report and the financial statements in accordance with applicable law and regulations. Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the profit or loss of the company for that period. In preparing these financial statements, the directors are required to: - select suitable accounting policies and then apply them consistently; - make judgments and accounting estimates that are reasonable and prudent; - prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Auditor
Each of the persons who is a director at the date of approval of this report confirms that:
- so far as they are aware, there is no relevant audit information of which the company's auditor is unaware; and - they have taken all steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information.
This report was approved by the board of directors on 28 January 2025 and signed on behalf of the board by:
M Wright
Director
Registered office:
Brandon Way
West Bromwich
West Midlands
United Kingdom
B70 8JH
Wrights Plastics Limited
Independent Auditor's Report to the Members of Wrights Plastics Limited
Year ended 30 April 2024
Opinion
We have audited the financial statements of Wrights Plastics Limited (the 'company') for the year ended 30 April 2024 which comprise the statement of comprehensive income, statement of financial position, statement of changes in equity, statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). In our opinion the financial statements: - give a true and fair view of the state of the company's affairs as at 30 April 2024 and of its loss for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; - have been prepared in accordance with the requirements of the Companies Act 2006.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
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. 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. In connection with our audit of the financial statements, 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 the audit:
- the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion: - adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or - the financial statements are not in agreement with the accounting records and returns; or - certain disclosures of directors' remuneration specified by law are not made; or - we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: We have reviewed financial statement disclosures and tested these to supporting documentation to assess compliance with applicable laws and regulations. We have audited the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of business. We have also made enquiries of entity staff in tax and compliance functions to identify any instances of non-compliance with laws and regulations. As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also: - Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. - Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control. - Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors. - Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the company to cease to continue as a going concern. - Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. 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.
Hannah Justice FCA FCCA
(Senior Statutory Auditor)
For and on behalf of
BSN Associates Limited
Chartered accountants & statutory auditor
3B Swallowfield Courtyard
Wolverhampton Road
Oldbury
West Midlands
B69 2JG
28 January 2025
Wrights Plastics Limited
Statement of Comprehensive Income
Year ended 30 April 2024
2024
2023
Note
£
£
Turnover
4
5,231,831
5,182,506
Cost of sales
3,133,026
3,280,770
------------
------------
Gross profit
2,098,805
1,901,736
Administrative expenses
2,112,938
2,013,414
------------
------------
Operating loss
5
( 14,133)
( 111,678)
Other interest receivable and similar income
9
33,475
21,394
Loan relationship write off
2,539,433
------------
------------
Loss before taxation
( 2,520,091)
( 90,284)
Tax on loss
10
( 44,610)
( 82,128)
------------
--------
Loss for the financial year
( 2,475,481)
( 8,156)
------------
--------
Revaluation of tangible assets
1,028,928
Tax relating to components of other comprehensive income
( 99,835)
------------
----
Other comprehensive income for the year
929,093
------------
-------
Total comprehensive income for the year
( 1,546,388)
( 8,156)
------------
-------
All the activities of the company are from continuing operations.
Wrights Plastics Limited
Statement of Financial Position
30 April 2024
2024
2023
Note
£
£
Fixed assets
Intangible assets
12
10,937
11,908
Tangible assets
13
653,703
1,301,154
Investments
14
125
---------
------------
664,640
1,313,187
Current assets
Stocks
15
939,576
850,680
Debtors
16
1,111,752
3,263,479
Cash at bank and in hand
2,706,081
3,509,320
------------
------------
4,757,409
7,623,479
Creditors: amounts falling due within one year
17
1,592,280
1,208,646
------------
------------
Net current assets
3,165,129
6,414,833
------------
------------
Total assets less current liabilities
3,829,769
7,728,020
Provisions
18
114,390
159,000
------------
------------
Net assets
3,715,379
7,569,020
------------
------------
Capital and reserves
Called up share capital
22
8,000
8,000
Capital redemption reserve
23
2,000
2,000
Profit and loss account
23
3,705,379
7,559,020
------------
------------
Shareholders funds
3,715,379
7,569,020
------------
------------
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the medium companies regime.
These financial statements were approved by the board of directors and authorised for issue on 28 January 2025 , and are signed on behalf of the board by:
M Wright
Director
Company registration number: 02108847
Wrights Plastics Limited
Statement of Changes in Equity
Year ended 30 April 2024
Called up share capital
Revaluation reserve
Capital redemption reserve
Profit and loss account
Total
Note
£
£
£
£
£
At 1 May 2022
8,000
2,000
7,857,176
7,867,176
Loss for the year
( 8,156)
( 8,156)
-------
----
-------
------------
------------
Total comprehensive income for the year
( 8,156)
( 8,156)
Dividends paid and payable
11
( 290,000)
( 290,000)
-------
----
-------
------------
------------
Total investments by and distributions to owners
( 290,000)
( 290,000)
At 30 April 2023
8,000
2,000
7,559,020
7,569,020
Loss for the year
( 2,475,481)
( 2,475,481)
Other comprehensive income for the year:
Revaluation of tangible assets
13
1,028,928
1,028,928
Reclassification from revaluation reserve to profit and loss account
( 929,093)
929,093
Tax relating to components of other comprehensive income
10
( 99,835)
( 99,835)
-------
------------
-------
------------
------------
Total comprehensive income for the year
( 1,546,388)
( 1,546,388)
Dividends paid and payable
11
( 2,307,253)
( 2,307,253)
----
----
----
------------
------------
Total investments by and distributions to owners
( 2,307,253)
( 2,307,253)
-------
----
-------
------------
------------
At 30 April 2024
8,000
2,000
3,705,379
3,715,379
-------
----
-------
------------
------------
Wrights Plastics Limited
Statement of Cash Flows
Year ended 30 April 2024
2024
2023
£
£
Cash flows from operating activities
Loss for the financial year
( 2,475,481)
( 8,156)
Adjustments for:
Depreciation of tangible assets
169,978
173,899
Amortisation of intangible assets
1,599
253
Impairment of loans
2,539,433
Loss on financial assets at fair value through profit or loss
125
Other interest receivable and similar income
( 33,475)
( 21,394)
Gains on disposal of tangible assets
( 19,182)
( 9,336)
Tax on loss
( 44,610)
( 82,128)
Changes in:
Stocks
( 88,896)
243,594
Trade and other debtors
( 487,541)
( 515,441)
Trade and other creditors
339,235
85,489
------------
---------
Cash generated from operations
( 98,815)
( 133,220)
Interest received
33,475
21,394
Tax received
50,493
--------
---------
Net cash used in operating activities
( 65,340)
( 61,333)
--------
---------
Cash flows from investing activities
Purchase of tangible assets
( 111,686)
( 221,891)
Proceeds from sale of tangible assets
59,600
27,851
Purchase of intangible assets
( 628)
( 12,161)
---------
---------
Net cash used in investing activities
( 52,714)
( 206,201)
---------
---------
Cash flows from financing activities
Proceeds from loans from group undertakings
44,399
Dividends paid
( 729,584)
( 290,000)
---------
---------
Net cash used in financing activities
( 685,185)
( 290,000)
---------
---------
Net decrease in cash and cash equivalents
( 803,239)
( 557,534)
Cash and cash equivalents at beginning of year
3,509,320
4,066,854
------------
------------
Cash and cash equivalents at end of year
2,706,081
3,509,320
------------
------------
Wrights Plastics Limited
Notes to the Financial Statements
Year ended 30 April 2024
1. General information
The company is a private company limited by shares, registered in England and Wales. The address of the registered office is Brandon Way, West Bromwich, West Midlands, B70 8JH, United Kingdom.
2. Statement of compliance
These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.
3. Accounting policies
Basis of preparation
The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.
The financial statements are prepared in sterling, which is the functional currency of the entity.
Judgements and key sources of estimation uncertainty
In application of the Company's accounting policies, which are described in note 2, the directors are required to make judgements, estimates and assumptions that affect the carrying amounts 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 if the revision affects only that period, or in the period of revision and future periods if the revision affects both current and future periods.
Revenue recognition
Turnover is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of discounts and Value Added Tax. Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have transferred to the buyer (usually on despatch of the goods); the amount of revenue can be measured reliably; it is probable that the associated economic benefits will flow to the entity; and the costs incurred or to be incurred in respect of the transactions can be measured reliably. Revenue from the rendering of services is measured by reference to the stage of completion of the service transaction at the end of the reporting period provided that the outcome can be reliably estimated. When the outcome cannot be reliably estimated, revenue is recognised only to the extent that it is probable the expenses recognised will be recovered.
Income tax
The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.
Deferred tax is recognised in respect of all timing differences at the reporting date. 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.
Foreign currencies
Foreign currency transactions are initially recorded in the functional currency, by applying the spot exchange rate as at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the exchange rate ruling at the reporting date, with any gains or losses being taken to the profit and loss account.
Operating leases
Lease payments are recognised as an expense over the lease term on a straight-line basis. The aggregate benefit of lease incentives is recognised as a reduction to expense over the lease term, on a straight-line basis.
Goodwill
Goodwill arises on business acquisitions and represents the excess of the cost of the acquisition over the company's interest in the net amount of the identifiable assets, liabilities and contingent liabilities of the acquired business. Goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. It is amortised on a straight-line basis over its useful life. Where a reliable estimate of the useful life of goodwill or intangible assets cannot be made, the life is presumed not to exceed ten years.
Intangible assets
Intangible assets are initially recorded at cost, and are subsequently stated at cost less any accumulated amortisation and impairment losses. Any intangible assets carried at revalued amounts, are recorded at the fair value at the date of revaluation, as determined by reference to an active market, less any subsequent accumulated amortisation and subsequent accumulated impairment losses. Intangible assets acquired as part of a business combination are only recognised separately from goodwill when they arise from contractual or other legal rights, are separable, the expected future economic benefits are probable and the cost or value can be measured reliably.
Amortisation
Amortisation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful life of that asset as follows:
Goodwill
-
7 years
Patents, trademarks and licences
-
8 years
If there is an indication that there has been a significant change in amortisation rate, useful life or residual value of an intangible asset, the amortisation is revised prospectively to reflect the new estimates.
Tangible assets
Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in equity, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss.
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
Freehold property
-
2% straight line
Plant and machinery
-
15% on reducing balance and 15% straight line
Fixtures and fittings
-
15% on reducing balance and 15%, 20%, and 33% straight line
Motor vehicles
-
25% on reducing balance and 20% straight line
Investments
Fixed asset investments are initially recorded at cost, and subsequently stated at cost less any accumulated impairment losses.
Listed investments are measured at fair value with changes in fair value being recognised in profit or loss.
Impairment of fixed assets
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets. For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the company are assigned to those units.
Stocks
Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition.
Provisions
Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.
Financial instruments
A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument. Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Debt instruments are subsequently measured at amortised cost. Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately. Any reversals of impairment are recognised in profit or loss immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.
Defined contribution plans
Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund. When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.
4. Turnover
Turnover arises from:
2024
2023
£
£
United Kingdom
5,115,997
5,003,770
Rest of Europe
104,360
175,647
Rest of the world
11,474
3,089
------------
------------
5,231,831
5,182,506
------------
------------
The whole of the turnover is attributable to the principal activity of the company wholly undertaken in the United Kingdom.
5. Operating loss
Operating profit or loss is stated after charging/crediting:
2024
2023
£
£
Amortisation of intangible assets
1,599
253
Depreciation of tangible assets
169,978
173,899
Gains on disposal of tangible assets
( 19,182)
( 9,336)
Impairment of trade debtors
184
7,466
Operating lease rentals
11,127
Foreign exchange differences
( 3,480)
580
---------
---------
6. Auditor's remuneration
2024
2023
£
£
Fees payable for the audit of the financial statements
12,830
13,500
--------
--------
7. Staff costs
The average number of persons employed by the company during the year, including the directors, amounted to:
2024
2023
No.
No.
Production staff
45
41
Administrative staff
14
18
Management staff
2
2
----
----
61
61
----
----
The aggregate payroll costs incurred during the year, relating to the above, were:
2024
2023
£
£
Wages and salaries
1,834,856
1,854,494
Social security costs
175,747
184,005
Other pension costs
69,008
66,984
------------
------------
2,079,611
2,105,483
------------
------------
8. Directors' remuneration
The directors' aggregate remuneration in respect of qualifying services was:
2024
2023
£
£
Remuneration
203,009
172,374
Company contributions to defined contribution pension plans
21,321
12,821
---------
---------
224,330
185,195
---------
---------
The number of directors who accrued benefits under company pension plans was as follows:
2024
2023
No.
No.
Defined contribution plans
2
2
----
----
Remuneration of the highest paid director in respect of qualifying services:
2024
2023
£
£
Aggregate remuneration
115,113
112,295
Company contributions to defined contribution pension plans
20,000
10,000
---------
---------
135,113
122,295
---------
---------
9. Other interest receivable and similar income
2024
2023
£
£
Interest on cash and cash equivalents
33,475
21,394
--------
--------
10. Tax on loss
Major components of tax income
2024
2023
£
£
Current tax:
UK current tax income
( 62,128)
Deferred tax:
Origination and reversal of timing differences
( 44,610)
( 20,000)
--------
--------
Tax on loss
( 44,610)
( 82,128)
--------
--------
Tax recognised as other comprehensive income or equity
The aggregate current and deferred tax relating to items recognised as other comprehensive income or equity for the year was £ 99,835
(2023: £Nil).
Reconciliation of tax income
The tax assessed on the loss on ordinary activities for the year is higher than (2023: lower than) the standard rate of corporation tax in the UK of 25 % (2023: 19.49 %).
2024
2023
£
£
Loss on ordinary activities before taxation
( 2,520,091)
( 90,284)
------------
--------
Loss on ordinary activities by rate of tax
( 630,023)
( 17,596)
Adjustment to tax charge in respect of prior periods
( 62,128)
Effect of expenses not deductible for tax purposes
637,430
947
Effect of capital allowances and depreciation
( 52,017)
( 3,351)
------------
--------
Tax on loss
( 44,610)
( 82,128)
------------
--------
11. Dividends
2024
2023
£
£
Dividends paid during the year (excluding those for which a liability existed at the end of the prior year )
2,307,253
290,000
------------
---------
12. Intangible assets
Goodwill
Patents, trademarks and licences
Total
£
£
£
Cost
At 1 May 2023
171,663
12,161
183,824
Additions
628
628
---------
--------
---------
At 30 April 2024
171,663
12,789
184,452
---------
--------
---------
Amortisation
At 1 May 2023
171,663
253
171,916
Charge for the year
1,599
1,599
---------
--------
---------
At 30 April 2024
171,663
1,852
173,515
---------
--------
---------
Carrying amount
At 30 April 2024
10,937
10,937
---------
--------
---------
At 30 April 2023
11,908
11,908
---------
--------
---------
13. Tangible assets
Freehold property
Plant and machinery
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
Cost or valuation
At 1 May 2023
783,716
2,654,068
385,662
286,764
4,110,210
Additions
21,089
41,417
49,180
111,686
Disposals
( 1,577,669)
( 134,707)
( 1,712,376)
Revaluations
772,864
772,864
------------
------------
---------
---------
------------
At 30 April 2024
2,695,485
385,662
201,237
3,282,384
------------
------------
---------
---------
------------
Depreciation
At 1 May 2023
228,565
2,067,017
344,542
168,932
2,809,056
Charge for the year
27,499
94,570
16,261
31,648
169,978
Disposals
( 94,289)
( 94,289)
Revaluations
( 256,064)
( 256,064)
------------
------------
---------
---------
------------
At 30 April 2024
2,161,587
360,803
106,291
2,628,681
------------
------------
---------
---------
------------
Carrying amount
At 30 April 2024
533,898
24,859
94,946
653,703
------------
------------
---------
---------
------------
At 30 April 2023
555,151
587,051
41,120
117,832
1,301,154
------------
------------
---------
---------
------------
During the current financial year the property was revalued to market value and then transferred to the immediate and ultimate parent company, Wrights Plastics Group Limited.
14. Investments
Shares in group undertakings
£
Cost
At 1 May 2023 and 30 April 2024
125
----
Impairment
At 1 May 2023
Impairment losses
125
----
At 30 April 2024
125
----
Carrying amount
At 30 April 2024
----
At 30 April 2023
125
----
Subsidiaries, associates and other investments
Shares in group undertakings relate to the entire issued share capital of Mid West Displays Limited, a company registered in England and Wales under the Companies Act 2006. On the 17th of October 2023, Mid West Displays was dissolved following a voluntary strike off therefore the investment has been impaired to £Nil in the current year.
15. Stocks
2024
2023
£
£
Raw materials and consumables
452,175
480,279
Work in progress
173,662
38,249
Finished goods and goods for resale
313,739
332,152
---------
---------
939,576
850,680
---------
---------
16. Debtors
2024
2023
£
£
Trade debtors
763,590
688,388
Amounts owed by related parties
1,789,433
Prepayments and accrued income
222,710
114,327
Directors loan account
50,125
530,172
Other debtors
75,327
141,159
------------
------------
1,111,752
3,263,479
------------
------------
17. Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
1,046,618
432,552
Amounts owed to group undertakings
44,399
Accruals and deferred income
80,649
64,804
Social security and other taxes
150,346
184,922
Director loan accounts
100,000
400,000
Other creditors
170,268
126,368
------------
------------
1,592,280
1,208,646
------------
------------
18. Provisions
Deferred tax (note 19)
£
At 1 May 2023
159,000
Additions
55,225
Transfers
( 99,835)
---------
At 30 April 2024
114,390
---------
19. Deferred tax
The deferred tax included in the statement of financial position is as follows:
2024
2023
£
£
Included in provisions (note 18)
114,390
159,000
---------
---------
The deferred tax account consists of the tax effect of timing differences in respect of:
2024
2023
£
£
Accelerated capital allowances
139,060
202,000
Unused tax losses
( 22,814)
( 42,000)
Provisions
( 1,856)
( 1,000)
---------
---------
114,390
159,000
---------
---------
20. Employee benefits
Defined contribution plans
The amount recognised in profit or loss as an expense in relation to defined contribution plans was £ 69,008 (2023: £ 66,984 ).
21. Financial instruments
Financial assets measured at cost compromise cash at bank, trade debtors, other debtors and amounts owed by group undertakings and amounted to £4,194,018 (2023 - £6,626,487). Financial liabilities measured at cost compromise trade creditors, amounts owed to group undertakings, other creditors and accruals and deferred income and amounted to £1,297,535 (2023 - £1,023,724).
22. Called up share capital
Issued, called up and fully paid
2024
2023
No.
£
No.
£
A Ordinary shares shares of £ 1 each
5,400
5,400
5,400
5,400
B Ordinary shares shares of £ 1 each
1,100
1,100
1,100
1,100
C Ordinary shares shares of £ 1 each
1,000
1,000
1,000
1,000
D Ordinary shares shares of £ 1 each
500
500
500
500
-------
-------
-------
-------
8,000
8,000
8,000
8,000
-------
-------
-------
-------
The A Ordinary shares, B Ordinary shares, C Ordinary shares and D Ordinary shares rank pari passu but are separate classes of shares and shall be entitled to dividends declared from time to time, at the sole and absolute discretion of the directors, on each class of shares as a separate class right.
23. Reserves
Capital redemption reserve - This reserve records the nominal value of shares repurchased by the company. Profit and loss account - This reserve records retained earnings and accumulated losses.
24. Analysis of changes in net debt
At 1 May 2023
Cash flows
At 30 Apr 2024
£
£
£
Cash at bank and in hand
3,509,320
(803,239)
2,706,081
Debt due within one year
(400,000)
255,601
(144,399)
------------
---------
------------
3,109,320
( 547,638)
2,561,682
------------
---------
------------
Wrights Plastics Limited
Notes to the Financial Statements (continued)
Year ended 30 April 2024
25. Capital commitments
Capital expenditure contracted for but not provided for in the financial statements is as follows:
2024
2023
£
£
Tangible assets
8,416
----
-------
26. Operating leases
The total future minimum lease payments under non-cancellable operating leases are as follows:
2024
2023
£
£
Not later than 1 year
11,556
18,509
Later than 1 year and not later than 5 years
28,743
--------
--------
11,556
47,252
--------
--------
27. Directors' advances, credits and guarantees
The balance outstanding from a director of the company as at the balance sheet date amounted to £50,125 (2023 - £530,172). The balance outstanding to a director of the company as at the balance sheet date amounted to £100,000 (2023 - £400,000). Both of these loans are interest free and repayable on demand.
28. Related party transactions
Included in debtors at the 30th of April 2024 is £Nil (2023 - £1,789,433) due from a company controlled by a director. Interest of £Nil (2023 - £8,866) was charged during the year on this loan. During the year, the company paid rent and service charges of £28,446 (2023 - £77,782) to this company, which included an accrual of £Nil (2023 - accrual of £1,144). Further advances in the year amounted to £750,000 (2023 - £Nil) The loan stood at £2,539,433 subsequent to it being written off in the current financial year.
29. Controlling party
The immediate controlling party is Wrights Plastics Group Limited. The ultimate controlling party is M J Wright by virture of his majority shareholding in the immediate parent company.