KINGSLAND POLYMERS LIMITED
Company registration number 03765588 (England and Wales)
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
KINGSLAND POLYMERS LIMITED
COMPANY INFORMATION
Directors
Mr D G Stephens
Mrs C C Stephens
Secretary
Mrs C C Stephens
Company number
03765588
Registered office
1 Brassey Road
Old Potts Way
Shrewsbury
Shropshire
SY3 7FA
Auditor
Dyke Yaxley Limited
1 Brassey Road
Old Potts Way
Shrewsbury
Shropshire
SY3 7FA
KINGSLAND POLYMERS LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2
Directors' responsibilities statement
3
Independent auditor's report
4 - 6
Profit and loss account
7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Statement of cash flows
11
Notes to the financial statements
12 - 22
KINGSLAND POLYMERS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MAY 2024
- 1 -
The directors present the strategic report for the year ended 31 May 2024.
Activity
The company is principally engaged in the trading and distribution of commodity Polymer Raw Materials to the UK Moulding and Extrusion markets. Procurement of materials are sought, identified and negotiated with both continental and domestic Polymer suppliers. Historically, materials were primarily purchased from continental suppliers, but this trend has been reversed post Brexit.
Polymer raw materials are negotiated primarily on a delivered UK warehouse basis. The company utilises two UK warehouses – one in Cheshire servicing the Midlands and North UK and one in Hampshire to service our Southern customer base.
Outlook for 2025
Businesses are feeling the effects of the cost of living, higher interest rates, inflated energy pricing, loan repayments as well as the cessation of deferred tax benefits, following the pandemic. However, the company is in a robust position to face such challenges, with a healthy cash / Asset position. This has been further enhanced with a recent property purchase, thereby strengthening the company’s Balance Sheet.
Review of the business
Even though there has been a decrease of 10% from 2023 with revenue reported at £12,423,612, the company has remained in a firm position as a UK Prime Polymer supplier.
Major credit insurers are underwriting greater levels of credit on Kingsland Polymers, thereby putting the company in a stronger purchasing position.
The company had net assets of £1,247,235 which is a slight increase on 2023 which was £1,221,757.
Principal risks and uncertainties
The principal risks and uncertainties continue to be global energy and commodity prices along with inflationary pressure which can be seen throughout 2024 financial statements in margin reductions.
Key performance indicators
Management have identified Key Performance Indicators (KPIs) which are used to drive business performance and deliver on strategic goals.
The KPIs used by management to assess performance of the company are turnover, gross profit margin and overall profitability. The company has recognised turnover of £12,423,612 (2023: £13,734,954), gross profit margin of 5% (2023: 3%) and overall profitability (before tax) of £229,700 (2023: £246,047).
Mr D G Stephens
Director
24 February 2025
KINGSLAND POLYMERS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MAY 2024
- 2 -
The directors present their annual report and financial statements for the year ended 31 May 2024.
Principal activities
The principal activity of the company continued to be the trading and distribution of polymers.
Results and dividends
The results for the year are set out on page 7.
Ordinary dividends were paid amounting to £138,350. The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr D G Stephens
Mrs C C Stephens
Auditor
Dyke Yaxley Limited were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
Medium-sized companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
On behalf of the board
Mr D G Stephens
Director
24 February 2025
KINGSLAND POLYMERS LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MAY 2024
- 3 -
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law, the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period.
In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent; and
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.
KINGSLAND POLYMERS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF KINGSLAND POLYMERS LIMITED
- 4 -
Opinion
We have audited the financial statements of Kingsland Polymers Limited (the 'company') for the year ended 31 May 2024 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity, the 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:
give a true and fair view of the state of the company's affairs as at 31 May 2024 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
KINGSLAND POLYMERS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF KINGSLAND POLYMERS LIMITED (CONTINUED)
- 5 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
KINGSLAND POLYMERS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF KINGSLAND POLYMERS LIMITED (CONTINUED)
- 6 -
Irregularities, including fraud, and 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 designed audit procedures to respond to the risk, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion. We considered the nature of the company's industry and its control environment, and reviewed the company's policies and procedures relating to fraud and compliance with laws and regulations.
We focussed on laws and regulations which could give rise to a material misstatement in the financial statements, including, but not limited to, the Companies Act 2006 and UK tax legislation. Our tests included agreeing the financial statement disclosures to underlying supporting documentation, analysis of legal and professional fees incurred and enquiries with management. As the entity does not store its own stock, the laws and regulations relating to storage, recycling, disposal and handling are transferred to the warehouse suppliers, which is covered by an agreement between the company and its warehouse suppliers.
The audit engagement team identified the risk of management override of controls and revenue recognition as areas where the financial statements were most susceptible to material misstatement due to fraud. Audit procedures performed included but were not limited to, testing manual journal entries and other adjustments and evaluating the business rationale in relation to significant, unusual transactions and transactions entered into outside the normal course of business, testing the recognition of a sample of revenue items with reference to the relevant sale documentation.
There are inherent limitations in the audit procedures described above and, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it.
We did not identify any audit matters relating to irregularities, including fraud.
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.
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.
Stacey Lea FCA (Senior Statutory Auditor)
For and on behalf of Dyke Yaxley Limited, Statutory Auditor
Chartered Accountants
1 Brassey Road
Old Potts Way
Shrewsbury
Shropshire
SY3 7FA
24 February 2025
KINGSLAND POLYMERS LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 MAY 2024
- 7 -
2024
2023
Notes
£
£
Turnover
2
12,423,612
13,734,954
Cost of sales
(11,864,366)
(13,268,415)
Gross profit
559,246
466,539
Administrative expenses
(205,826)
(149,185)
Other operating income
8,700
8,740
Operating profit
3
362,120
326,094
Interest receivable and similar income
6
2,580
2,650
Interest payable and similar expenses
7
(135,000)
(82,697)
Profit before taxation
229,700
246,047
Tax on profit
8
(65,872)
(57,868)
Profit for the financial year
163,828
188,179
The profit and loss account has been prepared on the basis that all operations are continuing operations.
KINGSLAND POLYMERS LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MAY 2024
- 8 -
2024
2023
£
£
Profit for the year
163,828
188,179
Other comprehensive income
-
-
Total comprehensive income for the year
163,828
188,179
KINGSLAND POLYMERS LIMITED
BALANCE SHEET
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
11
74,117
64,149
Investment property
12
972,886
972,886
1,047,003
1,037,035
Current assets
Stocks
13
1,015,100
1,412,350
Debtors
14
3,700,173
3,187,875
Cash at bank and in hand
260,330
201,774
4,975,603
4,801,999
Creditors: amounts falling due within one year
15
(4,680,195)
(4,435,388)
Net current assets
295,408
366,611
Total assets less current liabilities
1,342,411
1,403,646
Creditors: amounts falling due after more than one year
16
(67,448)
(158,333)
Provisions for liabilities
Deferred tax liability
18
27,728
23,556
(27,728)
(23,556)
Net assets
1,247,235
1,221,757
Capital and reserves
Called up share capital
20
10
10
Non-distributable profits reserve
21
68,850
68,850
Distributable profit and loss reserves
1,178,375
1,152,897
Total equity
1,247,235
1,221,757
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 24 February 2025 and are signed on its behalf by:
Mr D G Stephens
Director
Company registration number 03765588 (England and Wales)
KINGSLAND POLYMERS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MAY 2024
- 10 -
Share capital
Non-distri-butable profits
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 June 2022
10
68,850
1,175,238
1,244,098
Year ended 31 May 2023:
Profit and total comprehensive income
-
-
188,179
188,179
Dividends
9
-
-
(210,520)
(210,520)
Balance at 31 May 2023
10
68,850
1,152,897
1,221,757
Year ended 31 May 2024:
Profit and total comprehensive income
-
-
163,828
163,828
Dividends
9
-
-
(138,350)
(138,350)
Balance at 31 May 2024
10
68,850
1,178,375
1,247,235
KINGSLAND POLYMERS LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MAY 2024
- 11 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
24
497,219
878,066
Interest paid
(135,000)
(82,697)
Income taxes paid
(51,498)
(132,093)
Net cash inflow from operating activities
310,721
663,276
Investing activities
Purchase of tangible fixed assets
(25,510)
(36,735)
Purchase of investment property
(679,493)
Interest received
2,580
2,650
Net cash used in investing activities
(22,930)
(713,578)
Financing activities
Proceeds from new bank loans
300,000
Repayment of bank loans
(90,885)
(41,667)
Dividends paid
(138,350)
(210,520)
Net cash (used in)/generated from financing activities
(229,235)
47,813
Net increase/(decrease) in cash and cash equivalents
58,556
(2,489)
Cash and cash equivalents at beginning of year
201,774
204,263
Cash and cash equivalents at end of year
260,330
201,774
KINGSLAND POLYMERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
- 12 -
1
Accounting policies
Company information
Kingsland Polymers Limited is a private company limited by shares incorporated in England and Wales. The registered office is 1 Brassey Road, Old Potts Way, Shrewsbury, Shropshire, SY3 7FA.
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, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
1.2
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
1.4
Intangible fixed assets - goodwill
Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
1.5
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 building
10% Straight Line
Fixtures, fittings & equipment
33% Straight Line/25% Reducing Balance
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.
KINGSLAND POLYMERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
1
Accounting policies
(Continued)
- 13 -
1.6
Investment property
Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.
1.7
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
1.8
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises of direct materials.
1.9
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.10
Financial instruments
The company 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.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
KINGSLAND POLYMERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
1
Accounting policies
(Continued)
- 14 -
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.11
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.12
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The 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.
1.13
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
1.14
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
KINGSLAND POLYMERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
1
Accounting policies
(Continued)
- 15 -
1.15
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.
1.16
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
2
Turnover and other revenue
2024
2023
£
£
Other revenue
Interest income
2,580
2,650
3
Operating profit
2024
2023
Operating profit for the year is stated after charging:
£
£
Exchange losses
32
4,211
Fees payable to the company's auditor for the audit of the company's financial statements
10,500
9,500
Depreciation of owned tangible fixed assets
15,542
7,710
4
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
2
2
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
25,140
18,200
Pension costs
11,600
2,400
36,740
20,600
KINGSLAND POLYMERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 16 -
5
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
25,140
18,200
Company pension contributions to defined contribution schemes
11,600
2,400
36,740
20,600
6
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
475
119
Other interest income
2,105
2,531
Total income
2,580
2,650
2024
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
475
119
7
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
22,277
5,484
Interest on invoice finance arrangements
112,723
77,213
135,000
82,697
8
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
61,700
51,513
Deferred tax
Origination and reversal of timing differences
4,172
6,355
Total tax charge
65,872
57,868
KINGSLAND POLYMERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
8
Taxation
(Continued)
- 17 -
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2024
2023
£
£
Profit before taxation
229,700
246,047
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 20.00%)
57,425
49,209
Tax effect of expenses that are not deductible in determining taxable profit
969
926
Effect of change in corporation tax rate
7
Permanent capital allowances in excess of depreciation
3,306
1,371
Deferred tax adjustments in respect of prior years
4,172
6,355
Taxation charge for the year
65,872
57,868
9
Dividends
2024
2023
£
£
Interim paid
138,350
210,520
10
Intangible fixed assets
Goodwill
£
Cost
At 1 June 2023 and 31 May 2024
207,326
Amortisation and impairment
At 1 June 2023 and 31 May 2024
207,326
Carrying amount
At 31 May 2024
At 31 May 2023
KINGSLAND POLYMERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 18 -
11
Tangible fixed assets
Freehold building
Fixtures, fittings & equipment
Total
£
£
£
Cost or valuation
At 1 June 2023
33,936
89,617
123,553
Additions
25,510
25,510
At 31 May 2024
33,936
115,127
149,063
Depreciation and impairment
At 1 June 2023
3,393
56,011
59,404
Depreciation charged in the year
3,393
12,149
15,542
At 31 May 2024
6,786
68,160
74,946
Carrying amount
At 31 May 2024
27,150
46,967
74,117
At 31 May 2023
30,543
33,606
64,149
12
Investment property
2024
£
Fair value
At 1 June 2023 and 31 May 2024
972,886
The fair value of the investment properties has been arrived at on the basis of a valuations carried out at 31 May 2024 by independent valuers with relevant professional qualifications. The valuations were made on an open market value basis by reference to market evidence of transaction prices for similar properties. The directors asses the valuations every year to ensure they are still appropriate.
13
Stocks
2024
2023
£
£
Finished goods and goods for resale
1,015,100
1,412,350
There is an insurance policy in place to underwrite 100% of the stock value.
KINGSLAND POLYMERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 19 -
14
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
3,339,211
2,882,517
Corporation tax recoverable
19,912
19,913
Other debtors
328,846
281,332
Prepayments and accrued income
12,204
4,113
3,700,173
3,187,875
There is an insurance policy in place to underwrite all of the trade debtors.
15
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans
17
100,000
100,000
Trade creditors
2,978,315
3,567,344
Corporation tax
61,700
51,499
Other taxation and social security
107,622
19,332
Other creditors
1,418,058
685,213
Accruals and deferred income
14,500
12,000
4,680,195
4,435,388
The balance on the invoice discounting facility is secured.
16
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Bank loans and overdrafts
17
67,448
158,333
The Bank loan is secured by a charge over the property concerned and a Limited Guarantee of £50,000 given by the director.
17
Loans and overdrafts
2024
2023
£
£
Bank loans
167,448
258,333
Payable within one year
100,000
100,000
Payable after one year
67,448
158,333
KINGSLAND POLYMERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
17
Loans and overdrafts
(Continued)
- 20 -
The long-term Bank loan is secured by a fixed charge over the property concerned and a Limited Guarantee of £50,000 given by the director.
18
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
10,515
7,406
Investment property
17,213
16,150
27,728
23,556
2024
Movements in the year:
£
Liability at 1 June 2023
23,556
Charge to profit or loss
4,172
Liability at 31 May 2024
27,728
The deferred tax liability set out above is expected to reverse within 12 months and relates to accelerated capital allowances that are expected to mature within the same period.
19
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
11,600
2,400
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
20
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary A shares of £1 each
9
9
9
9
Ordinary B shares of £1 each
1
1
1
1
10
10
10
10
KINGSLAND POLYMERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 21 -
21
Non-distributable profits reserve
2024
2023
£
£
At the beginning and end of the year
68,850
68,850
22
Related party transactions
Transactions with related parties
During the year the company entered into the following transactions with related parties:
Sales
Sales
2024
2023
£
£
Kingsland Plastics Limited
787,716
1,839,432
The following amounts were outstanding at the reporting end date:
2024
2023
Amounts due from related parties
£
£
Kingsland Plastics Limited
261,873
218,464
KINGSLAND POLYMERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 22 -
23
Directors' transactions
Interest of £2,105 (2023: £1,337) was charged on a directors loan.
Description
% Rate
Opening balance
Closing balance
£
£
Loan account
2.25
59,000
59,000
59,000
59,000
24
Cash generated from operations
2024
2023
£
£
Profit after taxation
163,828
188,179
Adjustments for:
Taxation charged
65,872
57,868
Finance costs
135,000
82,697
Investment income
(2,580)
(2,650)
Depreciation and impairment of tangible fixed assets
15,542
7,710
Movements in working capital:
Decrease/(increase) in stocks
397,250
(192,650)
(Increase)/decrease in debtors
(512,299)
1,656,264
Increase/(decrease) in creditors
234,606
(919,352)
Cash generated from operations
497,219
878,066
25
Analysis of changes in net funds/(debt)
1 June 2023
Cash flows
31 May 2024
£
£
£
Cash at bank and in hand
201,774
58,556
260,330
Borrowings excluding overdrafts
(258,333)
90,885
(167,448)
(56,559)
149,441
92,882
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