| REGISTERED NUMBER: |
| STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
| FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2024 |
| FOR |
| HEYSIDE PLASTICS LTD |
| REGISTERED NUMBER: |
| STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
| FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2024 |
| FOR |
| HEYSIDE PLASTICS LTD |
| HEYSIDE PLASTICS LTD (REGISTERED NUMBER: 07718277) |
| CONTENTS OF THE FINANCIAL STATEMENTS |
| FOR THE YEAR ENDED 31 JULY 2024 |
| Page |
| Company Information | 1 |
| Strategic Report | 2 |
| Report of the Directors | 4 |
| Report of the Independent Auditors | 6 |
| Income Statement | 10 |
| Other Comprehensive Income | 11 |
| Balance Sheet | 12 |
| Statement of Changes in Equity | 13 |
| Cash Flow Statement | 14 |
| Notes to the Cash Flow Statement | 15 |
| Notes to the Financial Statements | 16 |
| HEYSIDE PLASTICS LTD |
| COMPANY INFORMATION |
| FOR THE YEAR ENDED 31 JULY 2024 |
| DIRECTORS: |
| REGISTERED OFFICE: |
| REGISTERED NUMBER: |
| SENIOR STATUTORY AUDITOR: |
| AUDITORS: |
| Statutory Auditors |
| 3rd Floor, Ivy Mill, |
| Crown Street, |
| Failsworth, |
| Manchester |
| Lancashire |
| M35 9BG |
| HEYSIDE PLASTICS LTD (REGISTERED NUMBER: 07718277) |
| STRATEGIC REPORT |
| FOR THE YEAR ENDED 31 JULY 2024 |
| The directors present their strategic report for the year ended 31 July 2024. |
| REVIEW OF BUSINESS |
| Market Overview |
| The company faced several economic factors affecting the industry, such as a general downturn in construction, geopolitical uncertainty and supply chain disruptions. Nevertheless, the company adapted through strategic investments and agile business practices. |
| Financial Performance |
| Key financial highlights: |
| Revenue: £8,200,778 (5% decrease from the previous year) |
| Gross Profit Margin: 36% (2023: 32%) |
| EBITDA: £1,359,581 (2023: £1,061,555) |
| Net Profit: £763,489 (2023: £393,029) |
| Key investments: injection moulding machinery and associated tooling |
| Key Business Developments |
| Implementing optimised factory layout to improve product flow and reduce vehicle movement |
| Adoption of lean manufacturing processes and methodologies |
| Strengthening of supplier relationships and cost optimisation strategies |
| PRINCIPAL RISKS AND UNCERTAINTIES |
| The industry continues to face challenges from tightening environmental regulations, fluctuating raw material costs, and evolving consumer expectations around sustainability. Additionally, global supply chain disruptions and trade dynamics remain key uncertainties. We actively monitor these risks through a structured risk management framework and are investing in resilience and compliance. |
| STRATEGIC PRIORITIES |
| Innovation & Product Development |
| Investment in R&D to enhance product offerings and improve manufacturing processes. |
| Sustainability & ESG Initiatives |
| Commitment to meeting environmental regulations, reducing carbon footprint, and transitioning to greener fuel sources. |
| Operational Efficiency |
| Enhancing production capabilities through automation, lean manufacturing principles, and cost reduction strategies. |
| Risk Management |
| Identifying and mitigating risks related to supply chain disruptions, regulatory changes, and global economic fluctuations. |
| OUTLOOK AND FUTURE PLANS |
| Heyside Plastics remains focused on growth through strategic partnerships, digital transformation, and adapting to evolving market demands. |
| HEYSIDE PLASTICS LTD (REGISTERED NUMBER: 07718277) |
| STRATEGIC REPORT |
| FOR THE YEAR ENDED 31 JULY 2024 |
| CONCLUSION |
| The financial year ending 31st July 2024 was characterised by resilience and adaptability. Heyside Plastics is well-positioned for continued success in the coming years. |
| ON BEHALF OF THE BOARD: |
| HEYSIDE PLASTICS LTD (REGISTERED NUMBER: 07718277) |
| REPORT OF THE DIRECTORS |
| FOR THE YEAR ENDED 31 JULY 2024 |
| The directors present their report with the financial statements of the company for the year ended 31 July 2024. |
| PRINCIPAL ACTIVITY |
| The principal activity of the company in the year under review was that of the design, manufacture and distribution of high-quality plastic products. |
| DIVIDENDS |
| Interim dividends of £37,500 per share were declared on 31 July 2024 in relation to all 3 classes of share. Total dividends paid during the year were thus £150,000 (2023: £150,000). |
| RESEARCH AND DEVELOPMENT |
| The company has made significant progress towards its sustainability goals, including; |
| - Establishing a key relationship with the Centre for Waste and Resource Management at UCLan. |
| - Compliance with UK and EU environmental regulations. |
| - Initiatives to reduce carbon emissions in manufacturing processes. |
| FUTURE DEVELOPMENTS |
| Looking ahead, Heyside Plastics Ltd intends to focus on: |
| - Continued investment in innovation and product development. |
| - Strengthening relationships with academia and strategic partners. |
| - Advancing its sustainability agenda. |
| DIRECTORS |
| The directors shown below have held office during the whole of the period from 1 August 2023 to the date of this report. |
| STATEMENT OF DIRECTORS' RESPONSIBILITIES |
| The directors are responsible for preparing the Strategic Report, the Report of the Directors 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; |
| - | 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. |
| The accounts for the year ended 31 July 2023 ought to have been audited but the directors had been advised that no audit was due and thus were unaware of this requirement at the time of filing. Once they became aware of this, the company appointed auditors for the 31 July 2024 year end. |
| HEYSIDE PLASTICS LTD (REGISTERED NUMBER: 07718277) |
| REPORT OF THE DIRECTORS |
| FOR THE YEAR ENDED 31 JULY 2024 |
| STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
| So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
| AUDITORS |
| The auditors, Strathmore Audit Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
| ON BEHALF OF THE BOARD: |
| REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
| HEYSIDE PLASTICS LTD |
| Qualified Opinion |
| We have audited the financial statements of Heyside Plastics Ltd (the 'company') for the year ended 31 July 2024 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, 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 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 except for a limitation of scope over opening stock as outlined in our basis for opinion paragraph below, the financial statements: : |
| - give a true and fair view of the state of the company's affairs as at 31 July 2024 and of its profit for the year then ended; |
| - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practices; and |
| - have been prepared in accordance with the requirement 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 Auditors' 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. The reason for our qualified except for opinion is as follows: |
| No statutory audit was completed of the prior year accounts for the Y/E 31 July 2023 and as such no audit review was completed of closing stock totals and valuation. We did not act as the statutory accountant or auditor for Heyside Plastic Ltd for the prior year and as such did not attend the year end stock count. We have also been unable to obtain alternative satisfactory audit evidence in any other form in relation to stock existence and condition at 31 July 2023 and as such a limitation of scope exists over closing stock at 31 July 2023 and opening stock included in the profit and loss for the Y/E 31 July 2024 . Stock is a material figure. |
| 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. |
| Specific consideration was given to the fact net current liabilities exist at 31 July 2024 of £839,910. From our review undertaken and discussions with management regarding facilities in place we are satisfied this does not cast significant doubt on the company's ability to continue as a going concern and that the use of the going concern basis of accounting remains appropriate. |
| REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
| HEYSIDE PLASTICS LTD |
| Other information |
| The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
| 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 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 |
| No audit was completed for the Y/E 31 July 2023 and as such the corresponding figures are unaudited and no opinion is formed on the comparatives. |
| 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 Report of the Directors. |
| We have nothing to report in respect of the following matters where 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 Statement of Directors' Responsibilities set out on page four, 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 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. |
| REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
| HEYSIDE PLASTICS LTD |
| Auditors' 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 a Report of the Auditors 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. |
| The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
| In identifying and assessing risks of material misstatements in respect of irregularities including fraud and non-compliance with laws and regulations we have considered the following: |
| - The nature of the industry and the legal and regulatory framework that the company operates in; |
| - Evaluating the entity's control environment, including the attitude, awareness and actions of management and those charged with governance toward fraud and its prevention and detection; |
| - Considering the potential for management override of controls and the risk of fraudulent revenue recognition; |
| - Reviewing the financial reporting processes and key areas of judgement for indicators of potential manipulation or bias; |
| - Discussion among the engagement team of indicators of fraud. |
| As part of this assessment, we identified potential risk of fraud and misstatement in the following areas: |
| - the completeness of stock and valuation of stock. |
| - the completeness and accuracy of fixed assets. |
| - fraud in relation to revenue recognition. |
| - management override of controls. |
| - risks of opening balance and comparative misstatement due to the failure to complete an audit for the prior year. |
| - the key laws and regulations we considered in this context included UK Companies Act, employment law, health and safety and tax legislation. |
| Audit response to risks identified |
| - reviewing the financial statement disclosures and testing to supporting documentation; |
| - performing analytical procedures to identify unusual or unexpected relationships that may indicate risks of material misstatement due to fraud; |
| - examining journal entries and other adjustments for evidence of fraudulent activity with a particular focus on potential for management override; |
| - completed a targeted audit programme on stock and fixed assets at 31 July 2024; |
| - reviewing opening balance and comparative figures for accuracy and compliance with accounting standards; |
| - enquiring of management concerning actual and potential litigation and claims; |
| - examination of legal costs for the year for any potential claims or non-compliance with laws and regulations. |
| We also communicated relevant potential issues and risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulation throughout the audit. |
| No instances of material non-compliance were identified. However irregularities that result from fraud are inherently more difficult to detect than irregularities that result from error, there is an unavoidable risk that material misstatement may not be detected, even though the audit has been planned and executed in accordance with ISAs. |
| A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
| REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
| HEYSIDE PLASTICS LTD |
| 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 a Report of the Auditors 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. |
| for and on behalf of |
| Statutory Auditors |
| 3rd Floor, Ivy Mill, |
| Crown Street, |
| Failsworth, |
| Manchester |
| Lancashire |
| M35 9BG |
| HEYSIDE PLASTICS LTD (REGISTERED NUMBER: 07718277) |
| INCOME STATEMENT |
| FOR THE YEAR ENDED 31 JULY 2024 |
| 2024 | 2023 |
| as restated |
| Notes | £ | £ |
| TURNOVER |
| Cost of sales | ( |
) | ( |
) |
| GROSS PROFIT |
| Administrative expenses | ( |
) | ( |
) |
| 910,318 | 657,751 |
| Other operating income |
| OPERATING PROFIT | 4 |
| Interest receivable and similar income |
| 929,043 | 661,154 |
| Interest payable and similar expenses | 5 | ( |
) | ( |
) |
| PROFIT BEFORE TAXATION |
| Tax on profit | 6 | ( |
) | ( |
) |
| PROFIT FOR THE FINANCIAL YEAR |
| HEYSIDE PLASTICS LTD (REGISTERED NUMBER: 07718277) |
| OTHER COMPREHENSIVE INCOME |
| FOR THE YEAR ENDED 31 JULY 2024 |
| 2024 | 2023 |
| as restated |
| Notes | £ | £ |
| PROFIT FOR THE YEAR |
| OTHER COMPREHENSIVE INCOME | - | - |
| TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
| Note |
| Prior year adjustment | 8 | ( |
) | ( |
) |
| TOTAL COMPREHENSIVE INCOME SINCE LAST ANNUAL REPORT |
266,633 |
(274,452 |
) |
| HEYSIDE PLASTICS LTD (REGISTERED NUMBER: 07718277) |
| BALANCE SHEET |
| 31 JULY 2024 |
| 2024 | 2023 |
| as restated |
| Notes | £ | £ |
| FIXED ASSETS |
| Tangible assets | 9 |
| CURRENT ASSETS |
| Stocks | 10 |
| Debtors | 11 |
| Cash at bank |
| CREDITORS |
| Amounts falling due within one year | 12 | ( |
) | ( |
) |
| NET CURRENT LIABILITIES | ( |
) | ( |
) |
| TOTAL ASSETS LESS CURRENT LIABILITIES |
| CREDITORS |
| Amounts falling due after more than one year |
13 |
( |
) |
( |
) |
| PROVISIONS FOR LIABILITIES | 16 | ( |
) | ( |
) |
| NET ASSETS |
| CAPITAL AND RESERVES |
| Called up share capital | 17 |
| Retained earnings | 18 | 1,587,635 |
| SHAREHOLDERS' FUNDS |
| The financial statements were approved by the Board of Directors and authorised for issue on |
| HEYSIDE PLASTICS LTD (REGISTERED NUMBER: 07718277) |
| STATEMENT OF CHANGES IN EQUITY |
| FOR THE YEAR ENDED 31 JULY 2024 |
| Called up |
| share | Retained | Total |
| capital | earnings | equity |
| £ | £ | £ |
| Balance at 1 August 2022 |
| Prior year adjustment | - | ( |
) | ( |
) |
| As restated |
| Changes in equity |
| Dividends | - | ( |
) | ( |
) |
| Total comprehensive income | - |
| Balance at 31 July 2023 |
| Prior year adjustment | - | ( |
) | ( |
) |
| As restated |
| Changes in equity |
| Dividends | - | ( |
) | ( |
) |
| Total comprehensive income | - |
| Balance at 31 July 2024 |
| HEYSIDE PLASTICS LTD (REGISTERED NUMBER: 07718277) |
| CASH FLOW STATEMENT |
| FOR THE YEAR ENDED 31 JULY 2024 |
| 2024 | 2023 |
| as restated |
| Notes | £ | £ |
| Cash flows from operating activities |
| Cash generated from operations | 1 |
| Interest paid | ( |
) |
| Interest element of hire purchase payments paid |
( |
) |
( |
) |
| Tax paid | ( |
) |
| Net cash from operating activities |
| Cash flows from investing activities |
| Purchase of tangible fixed assets | ( |
) | ( |
) |
| Sale of tangible fixed assets |
| Interest received |
| Net cash from investing activities | ( |
) | ( |
) |
| Cash flows from financing activities |
| New loans in year |
| Loan repayments in year | ( |
) | ( |
) |
| Capital repayments in year | ( |
) | ( |
) |
| Amount introduced by directors | 58,000 | 85,000 |
| Equity dividends paid | ( |
) | ( |
) |
| Net cash from financing activities |
| (Decrease)/increase in cash and cash equivalents | ( |
) |
| Cash and cash equivalents at beginning of year |
2 |
341,639 |
| Cash and cash equivalents at end of year | 2 | 437,466 | 444,311 |
| HEYSIDE PLASTICS LTD (REGISTERED NUMBER: 07718277) |
| NOTES TO THE CASH FLOW STATEMENT |
| FOR THE YEAR ENDED 31 JULY 2024 |
| 1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
| 2024 | 2023 |
| as restated |
| £ | £ |
| Profit before taxation |
| Depreciation charges |
| Loss/(profit) on disposal of fixed assets | ( |
) |
| Finance costs | 165,554 | 268,125 |
| Finance income | (2,442 | ) | (1,146 | ) |
| 1,357,139 | 1,060,409 |
| Decrease in stocks |
| Decrease/(increase) in trade and other debtors | ( |
) |
| Increase/(decrease) in trade and other creditors | ( |
) |
| Cash generated from operations |
| 2. | CASH AND CASH EQUIVALENTS |
| The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
| Year ended 31 July 2024 |
| 31.7.24 | 1.8.23 |
| £ | £ |
| Cash and cash equivalents | 437,466 | 444,311 |
| Year ended 31 July 2023 |
| 31.7.23 | 1.8.22 |
| as restated |
| £ | £ |
| Cash and cash equivalents | 444,311 | 341,639 |
| 3. | ANALYSIS OF CHANGES IN NET DEBT |
| At 1.8.23 | Cash flow | At 31.7.24 |
| £ | £ | £ |
| Net cash |
| Cash at bank | 444,311 | (6,845 | ) | 437,466 |
| 444,311 | ( |
) | 437,466 |
| Debt |
| Finance leases | (2,539,044 | ) | (736,125 | ) | (3,275,169 | ) |
| Debts falling due within 1 year | (10,000 | ) | - | (10,000 | ) |
| Debts falling due after 1 year | (27,500 | ) | 10,000 | (17,500 | ) |
| (2,576,544 | ) | (726,125 | ) | (3,302,669 | ) |
| Total | (2,132,233 | ) | (732,970 | ) | (2,865,203 | ) |
| HEYSIDE PLASTICS LTD (REGISTERED NUMBER: 07718277) |
| NOTES TO THE FINANCIAL STATEMENTS |
| FOR THE YEAR ENDED 31 JULY 2024 |
| 1. | STATUTORY INFORMATION |
| Heyside Plastics Ltd is a |
| 2. | ACCOUNTING POLICIES |
| Basis of preparing the financial statements |
| Prior year error |
| The accounts for the prior year were incorrectly prepared under the small companies regime section 1a in error. The comparatives have been fully reviewed and correct disclosures made in the current year. |
| Going concern |
| After reviewing the company's forecasts and projections, the Directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The company therefore adopts the going concern basis in preparing its financial statements. |
| Turnover |
| Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
| Tangible fixed assets |
| Plant and machinery | - |
| Fixtures and fittings | - |
| Stocks |
| Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
| Costs comprise those costs incurred by the company in bringing stocks to the location and condition intended by management and are calculated on a first-in first-out basis. |
| Financial instruments |
| Basic financial instrument transactions are entered into that result in the recognition of financial assets and liabilities like trade and other debtors and creditors and loans from banks. Debt instruments (other than those wholly repayable or receivable within one year), including loans and account receivables and payables, are initially measured at the transaction price (adjusted for transaction cost) and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. |
| Borrowing costs are recognised within finance costs in the profit or loss in the period in which they are incurred. These costs include interest expense calculated using the effective interest method and finance charges in respect of finance leases. |
| HEYSIDE PLASTICS LTD (REGISTERED NUMBER: 07718277) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 JULY 2024 |
| 2. | ACCOUNTING POLICIES - continued |
| Taxation |
| Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
| Current or deferred taxation assets and liabilities are not discounted. |
| Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
| Deferred tax |
| Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
| Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
| Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
| Hire purchase and leasing commitments |
| Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter. |
| The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability. |
| Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
| Pension costs and other post-retirement benefits |
| The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. |
| 3. | EMPLOYEES AND DIRECTORS |
| 2024 | 2023 |
| as restated |
| £ | £ |
| Wages and salaries |
| Social security costs |
| Other pension costs |
| The average number of employees during the year was as follows: |
| 2024 | 2023 |
| as restated |
| Production | 62 | 66 |
| Management and office support | 11 | 11 |
| HEYSIDE PLASTICS LTD (REGISTERED NUMBER: 07718277) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 JULY 2024 |
| 3. | EMPLOYEES AND DIRECTORS - continued |
| 2024 | 2023 |
| as restated |
| £ | £ |
| Directors' remuneration |
| Directors' pension contributions to money purchase schemes |
| 4. | OPERATING PROFIT |
| The operating profit is stated after charging/(crediting): |
| 2024 | 2023 |
| as restated |
| £ | £ |
| Hire of plant and machinery |
| Other operating leases |
| Depreciation - owned assets |
| Depreciation - assets on hire purchase contracts |
| Loss/(profit) on disposal of fixed assets | ( |
) |
| Auditors' remuneration |
| 5. | INTEREST PAYABLE AND SIMILAR EXPENSES |
| 2024 | 2023 |
| as restated |
| £ | £ |
| Bank loan interest |
| Other interest payable |
| Hire purchase |
| 6. | TAXATION |
| Analysis of the tax charge |
| The tax charge on the profit for the year was as follows: |
| 2024 | 2023 |
| as restated |
| £ | £ |
| Current tax: |
| UK corporation tax | ( |
) | ( |
) |
| Deferred tax |
| Tax on profit |
| HEYSIDE PLASTICS LTD (REGISTERED NUMBER: 07718277) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 JULY 2024 |
| 6. | TAXATION - continued |
| Reconciliation of total tax charge included in profit and loss |
| The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
| 2024 | 2023 |
| as restated |
| £ | £ |
| Profit before tax |
| Profit multiplied by the standard rate of corporation tax in the UK of (2023 - |
| Effects of: |
| Expenses not deductible for tax purposes |
| Income not taxable for tax purposes | ( |
) | ( |
) |
| Capital allowances in excess of depreciation | ( |
) | ( |
) |
| Utilisation of tax losses |
| Adjustments to tax charge in respect of previous periods | ( |
) | ( |
) |
| Losses carried forward to future years |
| R&D Enhanced Expenditure | ( |
) |
| Deferred tax provision |
| Total tax charge | 203,301 | 4,195 |
| 7. | DIVIDENDS |
| 2024 | 2023 |
| as restated |
| £ | £ |
| Ordinary shares of £1 each |
| Interim |
| HEYSIDE PLASTICS LTD (REGISTERED NUMBER: 07718277) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 JULY 2024 |
| 8. | PRIOR YEAR ADJUSTMENT |
| Tangible fixed assets - prior year adjustment |
| During the year the Directors of Heyside Plastics Ltd completed an internal review of tangible fixed assets and concluded that plant and machinery with a carrying value of £291,822 and fixtures and fittings with a carrying value of £73,283 were no longer in use and held no residual value as at 31 July 2022. The 2023 comparatives have therefore been restated to remove these assets from the balance sheet which has resulted in a prior year adjustment in the comparatives of £365,105. |
| The total depreciation charge was also reworked for the Y/E 31 July 2023 to account for the reduced brought forward carrying value, this resulted in depreciation charge for the year reducing by £119,856., There was also an adjustment to profit on disposal during the Y/E 31 July 2023 of £1,915 that was identified as part of the overall review. A prior year adjustment has been included totalling £117,941 to account for the reduced depreciation charge and profit on disposal which has increased profits available for distribution by £117,941. |
| Deferred tax - prior year adjustment |
| The 2023 comparatives have been restated to incorporate the omission of deferred tax provisions relating to accelerated capital allowances totalling £298,181 that related to the Y/E 31 July 2022 and £174,383 relating to the Y/E 31 July 2023. The change has resulted in profits available for distribution at 31 July 2023 decreasing by £472,564. |
| Asset under construction - prior year adjustment |
| The 2023 comparatives have been restated to to transfer £592,083 from other debtors to tangible fixed assets additions. The transferred balance relates to assets under the course of construction that have been reclassified as non-current tangible fixed assets. |
| Wages accrual - prior year adjustment |
| No accrual adjustment was included at 31 July 2023 for wages costs relating to work completed by staff that had not yet been paid or holidays not yet taken as at 31 July 2023. The total combined missed accrual totals £95,270 which has been added to accruals at 31 July 2023 and results in profits available for distribution decreasing by £95,120. |
| HP Interest adjustment - prior year adjustment |
| Hire purchase interest was calculated on a straight line ammortised cost basis in the Y/E 31 July 2023 as opposed to the correct effective interest rates. This has been corrected via a prior year adjustment which has resulted in profits available for distribution reducing by £141,843. |
| Medium Sized accounts - prior year adjustment |
| As disclosed in the Directors Report, the 31 July 2023 accounts were unaudited and prepared under FRS102 s1A in error. The comparative figures have now been restated under FRS102. |
| Reconciliation of prior year adjustments |
| Y/E 31 July 2024 | Y/E 31 July 2023 |
| £ | £ |
| Fixed asset carrying value adjustment | 365,105 |
| Depreciation and profit on disposal adjustment | (117,941 | ) |
| Deferred tax provision | 174,383 | 298,181 |
| Additional wages accrual | 95,270 |
| HP Interest adjustment | 141,843 |
| Total | 293,555 | 663,286 |
| HEYSIDE PLASTICS LTD (REGISTERED NUMBER: 07718277) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 JULY 2024 |
| 9. | TANGIBLE FIXED ASSETS |
| Fixtures |
| Improvements | Plant and | and |
| to property | machinery | fittings | Totals |
| £ | £ | £ | £ |
| COST |
| At 1 August 2023 |
| Additions |
| Disposals | ( |
) | ( |
) |
| Reclassification/transfer | ( |
) |
| At 31 July 2024 |
| DEPRECIATION |
| At 1 August 2023 |
| Charge for year |
| Reclassification/transfer | ( |
) |
| At 31 July 2024 |
| NET BOOK VALUE |
| At 31 July 2024 |
| At 31 July 2023 |
| Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
| Plant and |
| machinery |
| £ |
| COST |
| At 1 August 2023 |
| Additions |
| At 31 July 2024 |
| DEPRECIATION |
| At 1 August 2023 |
| Charge for year |
| At 31 July 2024 |
| NET BOOK VALUE |
| At 31 July 2024 |
| At 31 July 2023 |
| 10. | STOCKS |
| 2024 | 2023 |
| as restated |
| £ | £ |
| Raw materials |
| Finished goods |
| HEYSIDE PLASTICS LTD (REGISTERED NUMBER: 07718277) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 JULY 2024 |
| 11. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
| 2024 | 2023 |
| as restated |
| £ | £ |
| Trade debtors |
| Other debtors |
| Tax |
| Prepayments and accrued income |
| 12. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
| 2024 | 2023 |
| as restated |
| £ | £ |
| Bank loans and overdrafts (see note 14) |
| Hire purchase contracts (see note 15) |
| Trade creditors |
| Tax |
| Social security and other taxes |
| VAT |
| Other creditors |
| Directors' current accounts |
| Accrued expenses |
| 13. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
| 2024 | 2023 |
| as restated |
| £ | £ |
| Bank loans (see note 14) |
| Hire purchase contracts (see note 15) |
| 14. | LOANS |
| An analysis of the maturity of loans is given below: |
| 2024 | 2023 |
| as restated |
| £ | £ |
| Amounts falling due within one year or on demand: |
| Bank loans |
| Amounts falling due between one and two years: |
| Bank loans - 1-2 years |
| Amounts falling due between two and five years: |
| Bank loans - 2-5 years |
| HEYSIDE PLASTICS LTD (REGISTERED NUMBER: 07718277) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 JULY 2024 |
| 14. | LOANS - continued |
| Loans due after one year are unsecured and the effects of discounting are considered by the directors to be immaterial. |
| 15. | LEASING AGREEMENTS |
| Minimum lease payments fall due as follows: |
| Hire purchase contracts |
| 2024 | 2023 |
| as restated |
| £ | £ |
| Net obligations repayable: |
| Within one year |
| Between one and five years |
| Non-cancellable |
| operating leases |
| 2024 | 2023 |
| as restated |
| £ | £ |
| Within one year |
| Between one and five years |
| 16. | PROVISIONS FOR LIABILITIES |
| 2024 | 2023 |
| as restated |
| £ | £ |
| Deferred tax |
| Deferred tax |
| £ |
| Balance at 1 August 2023 |
| Prior year adjustment |
| As restated | 472,564 |
| Provided during year |
| Balance at 31 July 2024 |
| HEYSIDE PLASTICS LTD (REGISTERED NUMBER: 07718277) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 JULY 2024 |
| 17. | CALLED UP SHARE CAPITAL |
| Allotted, issued and fully paid: |
| Number: | Class: | Nominal | 2024 | 2023 |
| value: | as restated |
| £ | £ |
| Ordinary | £1 | 2 | 2 |
| Ordinary A | £1 | 1 | 1 |
| Ordinary B | £1 | 1 | 1 |
| 4 | 4 |
| 18. | RESERVES |
| Retained |
| earnings |
| £ |
| At 1 August 2023 |
| Prior year adjustment | ( |
) |
| Profit for the year |
| Dividends | ( |
) |
| At 31 July 2024 |
| 19. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES |
| The following advances and credits to directors subsisted during the years ended 31 July 2024 and 31 July 2023: |
| 2024 | 2023 |
| as restated |
| £ | £ |
| Balance outstanding at start of year |
| Amounts advanced |
| Amounts repaid | ( |
) | ( |
) |
| Amounts written off | - | - |
| Amounts waived | - | - |
| Balance outstanding at end of year |
| Balance outstanding at start of year |
| Amounts advanced |
| Amounts repaid | ( |
) | ( |
) |
| Amounts written off | - | - |
| Amounts waived | - | - |
| Balance outstanding at end of year |
| Directors loan accounts are interest free and repayable on demand. |