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Company Registration number: 04262651

Reel Label Solutions Limited

Financial Statements

for the Year Ended 31 August 2024

 

Reel Label Solutions Limited

Contents

Balance Sheet

1

Notes to the Financial Statements

2 to 9

 

Reel Label Solutions Limited

(Registration number: 04262651)
Balance Sheet as at 31 August 2024

Note

2024
£

2023
£

Fixed assets

 

Tangible assets

4

773,609

755,407

Current assets

 

Stocks

5

223,193

204,500

Debtors

6

648,672

592,414

Cash at bank and in hand

 

588,630

567,205

 

1,460,495

1,364,119

Creditors: Amounts falling due within one year

7

(781,516)

(839,180)

Net current assets

 

678,979

524,939

Total assets less current liabilities

 

1,452,588

1,280,346

Provisions for liabilities

(181,160)

(178,810)

Net assets

 

1,271,428

1,101,536

Capital and reserves

 

Called up share capital

8

10,300

10,300

Retained earnings

1,261,128

1,091,236

Shareholders' funds

 

1,271,428

1,101,536

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime. As permitted by section 444 (5A) of the Companies Act 2006, the directors have not delivered to the registrar a copy of the Profit and Loss Account.

Approved and authorised by the Board on 1 April 2025 and signed on its behalf by:
 

.........................................
Mr C F Duffin
Company secretary and director

.........................................
Mr J W Wright
Director

 
     
 

Reel Label Solutions Limited

Notes to the Financial Statements for the Year Ended 31 August 2024

1

General information

The company is a private company limited by share capital, incorporated in England & Wales.

The address of its registered office is:
Unit 20 East Side
Cambrian Industrial Estate
Coed Cae Lane
Pontyclun
Rhondda Cynon Taff
CF72 9EW

These financial statements were authorised for issue by the Board on 1 April 2025.

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A smaller entities - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006 (as applicable to companies subject to the small companies' regime).

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

Going concern

The financial statements have been prepared on a going concern basis.

Audit report

The Independent Auditor's Report was unqualified. . The name of the Senior Statutory Auditor who signed the audit report on 1 April 2025 was Stephen Horrigan FCA, who signed for and on behalf of DHB Accountants Limited.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.

The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.

 

Reel Label Solutions Limited

Notes to the Financial Statements for the Year Ended 31 August 2024

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.

Unrelieved tax losses and other deferred tax assets are recognised when 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 and that are expected to apply to the reversal of the timing difference.

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Improvements to property

10% on cost

Fixtures and fittings

10% on cost

Plant and machinery

10% on cost

Office equipment

10% on cost

Motor vehicles

25% on cost

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

 

Reel Label Solutions Limited

Notes to the Financial Statements for the Year Ended 31 August 2024

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.

The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.

Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the balance sheet as a finance lease obligation.

Lease payments are apportioned between finance costs in the profit and loss account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

 

Reel Label Solutions Limited

Notes to the Financial Statements for the Year Ended 31 August 2024

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Dividends

Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

3

Staff numbers

The average number of persons employed by the company (including directors) during the year, was 28 (2023 - 27).

 

Reel Label Solutions Limited

Notes to the Financial Statements for the Year Ended 31 August 2024

4

Tangible assets

Property improvements
 £

Fixtures and fittings
£

Plant and machinery
£

Office equipment
£

Motor vehicles
 £

Cost or valuation

At 1 September 2023

2,941

26,024

1,571,494

68,302

13,000

Additions

-

-

158,049

-

-

Disposals

-

-

(16,573)

(7,500)

-

At 31 August 2024

2,941

26,024

1,712,970

60,802

13,000

Depreciation

At 1 September 2023

2,940

26,024

821,521

66,119

9,750

Charge for the year

-

-

130,609

496

3,250

Eliminated on disposal

-

-

(11,081)

(7,500)

-

At 31 August 2024

2,940

26,024

941,049

59,115

13,000

Carrying amount

At 31 August 2024

1

-

771,921

1,687

-

At 31 August 2023

1

-

749,973

2,183

3,250

Total
£

Cost or valuation

At 1 September 2023

1,681,761

Additions

158,049

Disposals

(24,073)

At 31 August 2024

1,815,737

Depreciation

At 1 September 2023

926,354

Charge for the year

134,355

Eliminated on disposal

(18,581)

At 31 August 2024

1,042,128

Carrying amount

At 31 August 2024

773,609

At 31 August 2023

755,407

 

Reel Label Solutions Limited

Notes to the Financial Statements for the Year Ended 31 August 2024

5

Stocks

2024
£

2023
£

Work in progress

37,807

33,013

Other inventories

185,386

171,487

223,193

204,500

6

Debtors

Current

2024
£

2023
£

Trade debtors

645,079

590,764

Prepayments

1,650

1,650

Other debtors

1,943

-

 

648,672

592,414

7

Creditors

Creditors: amounts falling due within one year

Note

2024
£

2023
£

Due within one year

 

Loans and borrowings

9

-

63,529

Trade creditors

 

455,391

477,140

Amounts owed to group undertakings and undertakings in which the company has a participating interest

10

2,163

136,067

Taxation and social security

 

229,359

95,980

Accruals and deferred income

 

82,958

54,400

Other creditors

 

11,645

12,064

 

781,516

839,180

Creditors include bank loans and overdrafts and net obligations under finance lease and hire purchase contracts which are secured of £nil (2023 - £63,529).

 

Reel Label Solutions Limited

Notes to the Financial Statements for the Year Ended 31 August 2024

8

Share capital

Allotted, called up and fully paid shares

 

2024

2023

 

No.

£

No.

£

Ordinary of £1 each

10,000

10,000

10,000

10,000

Ordinary B of £1 each

100

100

100

100

Ordinary C of £1 each

100

100

100

100

Ordinary D of £1 each

100

100

100

100

 

10,300

10,300

10,300

10,300

9

Loans and borrowings

2024
£

2023
£

Current loans and borrowings

Hire purchase contracts

-

63,529

10

Related party transactions

The company has taken advantage of the exemption provided by section 33 of FRS 102 from the requirement to disclose transactions between wholly owned members of the same group.

 

Reel Label Solutions Limited

Notes to the Financial Statements for the Year Ended 31 August 2024

Summary of transactions with parent

Charge over assets
 A fixed and floating charge has been placed over all the assets and property of the company relating to loans held by the parent company.
 

11

Parent and ultimate parent undertaking

The company's immediate parent is Reel Label Solutions (Holdings) Ltd, incorporated in England & Wales.