Company registration number 02257199 (England and Wales)
NAZDAR LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 28 DECEMBER 2024
NAZDAR LIMITED
COMPANY INFORMATION
Directors
Mr M C Steimley
Mr J Thrall
Secretary
Mr D D Potts
Company number
02257199
Registered office
Nazdar House
Battersea Road
Heaton Mersey Industrial Estate
Stockport
SK4 3EA
Auditor
MHA
Richard House
9 Winckley Square
Preston
PR1 3HP
NAZDAR LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Directors' responsibilities statement
5
Independent auditor's report
6 - 8
Statement of comprehensive income
9
Balance sheet
10
Statement of changes in equity
11
Statement of cash flows
12
Notes to the financial statements
13 - 25
NAZDAR LIMITED
STRATEGIC REPORT
FOR THE PERIOD ENDED 28 DECEMBER 2024
- 1 -
The directors present the strategic report for the period ended 28 December 2024.
Fair review of the business
The 2024 results exhibited a 15.1% increase in revenue. The increase in revenue is due to performing well in most markets we operate in. Key growth areas were in OEM Narrow Web Label, OEM Graphics in India and OEM DTG Textile.
As shown in the company's profit and loss account on page 10, the company made a profit before taxation of £1,089,404 (31.12.2023: £297,293). The profit for the period after taxation amounted to £868,926 (31.12.2023: £240,269).
Gross profit has decreased in 2024 from 45.92% to 42.96%, which is due to global price increases in Raw Materials and freight.
Working capital is still being managed effectively, with inventory levels going down 4.7% on previous period. This is due to supply chain issues easing and not having to buy in bulk. The trade debtors’ balances aged over 90 days are at 24.17% of the total balance and the cash on hand has increased by 28.36% on 2023.
The business has bank balances of £2,896,611 on 28 December 2024.
To continue to improve in 2025, we will continue to network with our parent’s strong capabilities in manufacturing, R&D, and supply chain.
Principal risks and uncertainties
The company's operations expose it to a variety of financial risks including the effects of foreign currency exchange rates. The company's principal financial instruments comprise of amounts due to the parent undertaking, together with trade debtors and trade creditors that arise directly from its operations. The main risks arising from the company’s financial instruments can be analysed as follows:
Price risk
The company seeks to limit its exposure to product price risk by carefully monitoring pricing structures agreed with customers.
Foreign currency risk
The company is exposed in its trading operations to the risk of changes in foreign currency rates. The main foreign currencies in which the company operates are Euros and US Dollars. GBP has been very weak against both currencies and going forward is having an impact on cost that the company are looking at ways to manage these.
Liquidity risk
The company's policy has been to ensure continuity of funding via its parent undertaking.
Key performance indicators
Turnover (£'000) - £10,547 (31.12.2023: £9,162)
Gross profit (£'000) - £4,531 (31.12.2023: £4,208)
Gross profit margin (%) 42.96% (31.12.2023: 45.92%)
Net assets (£’000) – £6,144 (31.12.2023: £5,275)
NAZDAR LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 28 DECEMBER 2024
- 2 -
Future developments
Nazdar Limited’s parent is Nazdar Company, a large manufacturer of specialist fluid products, based in Kansas USA. As the EMEA region is a key expansion initiative for Nazdar, the parent readily provides required funding, allowing Nazdar Limited to meet its financial obligations on a timely basis. Nazdar Company will also fund Nazdar Limited expansion through strategic acquisitions.
The company has positioned its organisation and business activities to be successful in a balanced manner regardless of changing market conditions. The lean and balanced approach of Nazdar Limited allows quick adaption to changing requirements within the industry for products and operations.
Mr M C Steimley
Director
13 May 2025
NAZDAR LIMITED
DIRECTORS' REPORT
FOR THE PERIOD ENDED 28 DECEMBER 2024
- 3 -
The directors present their annual report and financial statements for the period ended 28 December 2024.
Principal activities
The principal activity of the company continued to be that of the supply of specialist fluids for the packaging, hygiene and print finishing industries.
Results and dividends
The results for the period are set out on page 9.
No ordinary dividends were paid. The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the period and up to the date of signature of the financial statements were as follows:
Mr M C Steimley
Mr J Thrall
Qualifying third party indemnity provisions
The company has made qualifying third party indemnity provisions for the benefit of its directors during the period. These provisions remain in force at the reporting date.
Financial instruments
Treasury operation and financial instruments
The company has a balanced portfolio of customers and maintains a focus on the quality of its products. The principal risks facing the company that are considered by the directors include the following:
The company's exposure is to a variety of risks that include the effects of foreign currency exchange rates. The company's principal financial instruments comprise of amounts due from the parent undertaking, together with trade debtors and trade creditors that arise directly from its operations.
Future developments
The company invests in developing new products for our market, this is expected to continue this year with new products being launched throughout the year. The core activities of the company will remain unchanged.
Auditor
MHA 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.
Strategic Report
The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of a fair review of the business, principal risks and uncertainties and future developments.
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.
NAZDAR LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE PERIOD ENDED 28 DECEMBER 2024
- 4 -
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 M C Steimley
Director
13 May 2025
NAZDAR LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE PERIOD ENDED 28 DECEMBER 2024
- 5 -
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;
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.
NAZDAR LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF NAZDAR LIMITED
- 6 -
Opinion
We have audited the financial statements of Nazdar Limited (the 'company') for the period ended 28 December 2024 which comprise 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 28 December 2024 and of its profit for the period 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 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 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.
NAZDAR LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF NAZDAR LIMITED (CONTINUED)
- 7 -
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 period 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.
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.
Matters on which we are required to report by exception
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 responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud, is detailed below:
Enquiries with management about any known or suspected instances of non-compliance with laws and regulations;
Enquires with management about any known or suspected instances of fraud;
Examination of journal entries and other adjustments to test for appropriateness and identify any instances of management override of controls;
Review of legal and professional expenditure to identify any evidence of ongoing litigation or enquiries;
Auditing the risk of fraud in revenue by testing a sample of transactions throughout the period, to ensure they have been recorded within the accounts and by testing transactions around the period end to ensure correct cut off procedures have been applied
Performing a physical verification of key assets and stock items; and
Obtaining third party confirmations of bank balances.
NAZDAR LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF NAZDAR LIMITED (CONTINUED)
- 8 -
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
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.
Virginia Cooper FCA
Senior Statutory Auditor
For and on behalf of MHA, Statutory Auditor
Preston, United Kingdom
14 May 2025
MHA is the trading name of MHA Audit Services LLP, a limited liability partnership in England and Wales (registered number OC455542)
NAZDAR LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 28 DECEMBER 2024
- 9 -
Period
Period
ended
ended
28 December
30 December
2024
2023
Notes
£
£
Turnover
3
10,547,038
9,162,490
Cost of sales
(6,016,133)
(4,954,877)
Gross profit
4,530,905
4,207,613
Administrative expenses
(3,548,110)
(4,028,188)
Other operating income
48,438
66,983
Operating profit
4
1,031,233
246,408
Interest receivable and similar income
6
58,171
50,885
Profit before taxation
1,089,404
297,293
Tax on profit
7
(220,478)
(57,024)
Profit for the financial period
868,926
240,269
The profit and loss account has been prepared on the basis that all operations are continuing operations.
NAZDAR LIMITED
BALANCE SHEET
AS AT
28 DECEMBER 2024
28 December 2024
- 10 -
28 December 2024
30 December 2023
Notes
£
£
£
£
Fixed assets
Tangible assets
9
243,525
195,108
Current assets
Stocks
10
2,029,543
2,129,922
Debtors
11
2,086,441
1,777,662
Cash at bank and in hand
2,896,611
2,256,710
7,012,595
6,164,294
Creditors: amounts falling due within one year
12
(748,843)
(734,251)
Net current assets
6,263,752
5,430,043
Total assets less current liabilities
6,507,277
5,625,151
Provisions for liabilities
Provisions
13
363,021
349,821
(363,021)
(349,821)
Net assets
6,144,256
5,275,330
Capital and reserves
Called up share capital
16
2,594,021
2,594,021
Capital redemption reserve
20,000
20,000
Profit and loss reserves
3,530,235
2,661,309
Total equity
6,144,256
5,275,330
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 13 May 2025 and are signed on its behalf by:
Mr M C Steimley
Director
Company registration number 02257199 (England and Wales)
NAZDAR LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 28 DECEMBER 2024
- 11 -
Share capital
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 31 December 2022
2,594,021
20,000
4,087,640
6,701,661
Period ended 30 December 2023:
Profit and total comprehensive income
-
-
240,269
240,269
Dividends
8
-
-
(1,666,600)
(1,666,600)
Balance at 30 December 2023
2,594,021
20,000
2,661,309
5,275,330
Period ended 28 December 2024:
Profit and total comprehensive income
-
-
868,926
868,926
Balance at 28 December 2024
2,594,021
20,000
3,530,235
6,144,256
NAZDAR LIMITED
STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED 28 DECEMBER 2024
- 12 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
21
893,592
1,276,057
Income taxes paid
(175,004)
(141,046)
Net cash inflow from operating activities
718,588
1,135,011
Investing activities
Purchase of tangible fixed assets
(136,858)
(142,729)
Interest received
58,171
50,885
Net cash used in investing activities
(78,687)
(91,844)
Financing activities
Dividends paid
(1,666,600)
Net cash used in financing activities
-
(1,666,600)
Net increase/(decrease) in cash and cash equivalents
639,901
(623,433)
Cash and cash equivalents at beginning of period
2,256,710
2,880,143
Cash and cash equivalents at end of period
2,896,611
2,256,710
NAZDAR LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 28 DECEMBER 2024
- 13 -
1
Accounting policies
Company information
Nazdar Limited is a private company limited by shares incorporated in England and Wales. The registered office is Nazdar House, Battersea Road, Heaton Mersey Industrial Estate, Stockport, SK4 3EA.
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. The principal accounting policies adopted are set out below.
1.2
Going concern
The directors have prepared forecasts for the company for the period to May 2026 which demonstrate that the company can continue to operate within its available financial resources. The company is fortunate that it has significant cash reserves, together with a strong balance sheet, and cash flow continues to be monitored daily.true
On this basis and at 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 near 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 and services to external customers in the ordinary nature of the business. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates. Turnover is shown net of Value Added Tax.
1.4
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:
Leasehold improvements
25 years straight line
Plant and equipment
1 to 15 years straight line
NAZDAR LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 28 DECEMBER 2024
1
Accounting policies
(Continued)
- 14 -
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.
Residual value is calculates on prices prevailing at the reporting date, after estimated costs of disposal, for the asset as if it were at the age and in the condition expected at the end of its useful life.
Subsequent costs, including replacement parts and major inspections, are capitalised only when it is probable that such costs will generate future economic benefits. Any replaced parts or remaining carrying amounts of previous inspections are then derecognised. All other costs of repairs and maintenance are charged to profit or loss as incurred.
1.5
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. These circumstances include consideration of the ability of the assets to be operates as planned and thereby provide the expected revenue streams associates with that asset. 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.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
1.6
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the weighted average cost basis and for finished goods and work in progress, includes direct labour costs and overheads appropriate to the stage of manufacture.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.7
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand.
1.8
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.
NAZDAR LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 28 DECEMBER 2024
1
Accounting policies
(Continued)
- 15 -
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
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.
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.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
NAZDAR LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 28 DECEMBER 2024
1
Accounting policies
(Continued)
- 16 -
Basic financial liabilities
Basic financial liabilities, including creditors, and loans from fellow group companies are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Other financial liabilities
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.
1.9
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.
1.10
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.
NAZDAR LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 28 DECEMBER 2024
1
Accounting policies
(Continued)
- 17 -
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.11
Provisions
Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.
1.12
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.13
Retirement benefits
The company operates a defined contribution pension scheme and the pension charge represents the amounts payable by the company to the fund in respect of the year. The amounts outstanding at the end of the year are included in accruals.
1.14
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease.
NAZDAR LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 28 DECEMBER 2024
- 18 -
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Critical judgements
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
Bad debt provision
The company makes an estimate of the recoverable value of certain trade debtors. When assessing impairment of these debtors, management consider factors including the ageing profile of debtors and historical expenditure.
Dilapidations
The company makes an estimate of of contractual dilapidation obligations in relation to specific lease agreements. When assessing the level of provision required, management have assessed using independent experts and historical experience as to the probable cashflow required to meet the terms and conditions stipulated within the underlying lease agreements.
These estimates require judgement to be applied and may change each reporting date.
3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Sale of goods
10,547,038
9,162,490
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
2,623,254
2,779,700
EU
3,487,669
2,915,467
Rest of the world
4,436,115
3,467,323
10,547,038
9,162,490
2024
2023
£
£
Other revenue
Interest income
58,171
50,885
NAZDAR LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 28 DECEMBER 2024
- 19 -
4
Operating profit
2024
2023
Operating profit for the period is stated after charging/(crediting):
£
£
Exchange (gains)/losses
(125,562)
224,979
Research and development costs
348,630
284,702
Fees payable to the company's auditor for the audit of the company's financial statements
29,070
33,000
Depreciation of owned tangible fixed assets
88,441
70,791
Operating lease charges
194,571
165,917
5
Employees
The average monthly number of persons (including directors) employed by the company during the period was:
2024
2023
Number
Number
Production staff
25
26
Sales and marketing staff
6
7
Administrative staff
16
18
Total
47
51
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
1,791,377
1,823,926
Social security costs
181,351
180,279
Pension costs
91,261
86,399
2,063,989
2,090,604
The directors are all based in the USA and receive no remuneration from Nazdar Limited either in the current or any prior years.
6
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
58,171
50,885
NAZDAR LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 28 DECEMBER 2024
6
Interest receivable and similar income
(Continued)
- 20 -
2024
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
58,171
50,885
7
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
206,773
27,539
Adjustments in respect of prior periods
12,237
13,077
Total current tax
219,010
40,616
Deferred tax
Origination and reversal of timing differences
917
16,408
Adjustment in respect of prior periods
551
Total deferred tax
1,468
16,408
Total tax charge
220,478
57,024
The actual charge for the period can be reconciled to the expected charge for the period based on the profit or loss and the standard rate of tax as follows:
2024
2023
£
£
Profit before taxation
1,089,404
297,293
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 23.52%)
272,351
69,923
Tax effect of expenses that are not deductible in determining taxable profit
1,302
1,370
Adjustments in respect of prior years
12,237
7,306
Research and development tax credit
(11,961)
Deferred tax adjustments in respect of prior years
551
1,459
Fixed asset differences
47
(593)
Deferred tax asset not recognised
(64,385)
(12,171)
Remeasurement of deferred tax for changes in tax rates
1,691
Land remediation expenditure
(1,625)
Taxation charge for the period
220,478
57,024
NAZDAR LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 28 DECEMBER 2024
- 21 -
8
Dividends
2024
2023
£
£
Final paid
1,666,600
9
Tangible fixed assets
Leasehold improvements
Plant and equipment
Total
£
£
£
Cost
At 31 December 2023
185,000
1,037,873
1,222,873
Additions
136,858
136,858
Disposals
(11,088)
(11,088)
At 28 December 2024
185,000
1,163,643
1,348,643
Depreciation and impairment
At 31 December 2023
185,000
842,765
1,027,765
Depreciation charged in the period
88,441
88,441
Eliminated in respect of disposals
(11,088)
(11,088)
At 28 December 2024
185,000
920,118
1,105,118
Carrying amount
At 28 December 2024
243,525
243,525
At 30 December 2023
195,108
195,108
10
Stocks
2024
2023
£
£
Raw materials and consumables
661,823
690,826
Work in progress
251,572
357,240
Finished goods and goods for resale
1,116,148
1,081,856
2,029,543
2,129,922
NAZDAR LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 28 DECEMBER 2024
- 22 -
11
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
1,759,513
1,691,813
Corporation tax recoverable
30,834
Other debtors
94,674
Prepayments and accrued income
232,254
53,547
2,086,441
1,776,194
2024
2023
Amounts falling due after more than one year:
£
£
Deferred tax asset (note 14)
1,468
Total debtors
2,086,441
1,777,662
12
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
189,643
247,276
Amounts owed to group undertakings
105,209
2,891
Corporation tax
13,172
Other taxation and social security
57,236
61,002
Accruals and deferred income
383,583
423,082
748,843
734,251
13
Provisions for liabilities
2024
2023
£
£
Dilapidation provision
363,021
349,821
NAZDAR LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 28 DECEMBER 2024
13
Provisions for liabilities
(Continued)
- 23 -
Movements on provisions:
Dilapidation provision
£
At 31 December 2023
349,821
Additional provisions in the year
13,200
At 28 December 2024
363,021
Provisions are in relation to contractual dilapidation obligations which management assessed using independent experts in 2019 and reassessed by the directors as at 31 December 2024. The related contracts expire at various dates through to 2018. The actual amounts payable are subject to negotiation as part of the exit or renewal of those contracts.
14
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
Assets
Assets
2024
2023
2024
2023
Balances:
£
£
£
£
Accelerated capital allowances
51,613
-
-
1,468
Tax losses
(49,291)
-
-
-
Short term timing differences
(2,322)
-
-
-
-
-
-
1,468
2024
Movements in the period:
£
Asset at 31 December 2023
(1,468)
Charge to profit or loss
1,468
Liability at 28 December 2024
-
As at the signing date of these financial statements, the company has not finalised its capital expenditure programme for 2025, so an assessment as to the likely movement of related timing differences cannot be made.
NAZDAR LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 28 DECEMBER 2024
- 24 -
15
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
91,261
86,399
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.
16
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary 'A' shares of £1 each
2,594,021
2,594,021
2,594,021
2,594,021
The holders of the Ordinary 'A' shares are entitled to attend and vote at any general meeting of the company. They are eligible for any dividends declared or paid.
17
Financial commitments, guarantees and contingent liabilities
There is a bank guarantee in favour of HM Revenue and Customs for £160,000.
18
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2024
2023
£
£
Within one year
196,704
200,935
Between two and five years
310,936
504,692
507,640
705,627
19
Related party transactions
The company has taken advantage of the exemption permitted by section 33.1A of FRS102 not to disclose transactions with its parent undertaking, Nazdar Company Inc. as the latter has a 100% shareholding in the company.
20
Ultimate controlling party
The ultimate parent company was Thrall Enterprises Inc. which is incorporated in the USA and is the smallest and largest company for which the consolidated accounts including Nazdar Limited are prepared. Copies of the consolidated financial statements can be requested from Chicago, IL 60601-6710, United States of America.
NAZDAR LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 28 DECEMBER 2024
20
Ultimate controlling party
(Continued)
- 25 -
The immediate parent company Nazdar Company Inc. is also incorporated in the USA. In the opinion of the directors, there is no single ultimate controlling party.
21
Cash generated from operations
2024
2023
£
£
Profit for the period after tax
868,926
240,269
Adjustments for:
Taxation charged
220,478
57,024
Investment income
(58,171)
(50,885)
Depreciation and impairment of tangible fixed assets
88,441
70,791
Increase in provisions
13,200
13,200
Movements in working capital:
Decrease in stocks
100,379
283,356
(Increase)/decrease in debtors
(341,081)
580,294
Increase in creditors
1,420
82,008
Cash generated from operations
893,592
1,276,057
22
Analysis of changes in net funds
31 December 2023
Cash flows
28 December 2024
£
£
£
Cash at bank and in hand
2,256,710
639,901
2,896,611
2024-12-282023-12-31falsefalsefalseCCH SoftwareCCH Accounts Production 2024.301Mr M C SteimleyMr J ThrallMr D D Potts022571992023-12-312024-12-2802257199bus:Director12023-12-312024-12-2802257199bus:Director22023-12-312024-12-2802257199bus:CompanySecretary12023-12-312024-12-2802257199bus:RegisteredOffice2023-12-312024-12-28022571992024-12-28022571992022-12-312023-12-3002257199core:RetainedEarningsAccumulatedLosses2022-12-312023-12-3002257199core:RetainedEarningsAccumulatedLosses2023-12-312024-12-28022571992023-12-3002257199core:LeaseholdImprovements2024-12-2802257199core:PlantMachinery2024-12-2802257199core:LeaseholdImprovements2023-12-3002257199core:PlantMachinery2023-12-3002257199core:CurrentFinancialInstruments2024-12-2802257199core:CurrentFinancialInstruments2023-12-3002257199core:CurrentFinancialInstrumentscore:WithinOneYear2024-12-2802257199core:CurrentFinancialInstrumentscore:WithinOneYear2023-12-3002257199core:ShareCapital2024-12-2802257199core:ShareCapital2023-12-3002257199core:CapitalRedemptionReserve2024-12-2802257199core:CapitalRedemptionReserve2023-12-3002257199core:RetainedEarningsAccumulatedLosses2024-12-2802257199core:RetainedEarningsAccumulatedLosses2023-12-3002257199core:ShareCapital2022-12-3002257199core:CapitalRedemptionReserve2022-12-3002257199core:RetainedEarningsAccumulatedLosses2022-12-30022571992023-12-30022571992022-12-3002257199core:LeaseholdImprovements2023-12-312024-12-2802257199core:PlantMachinery2023-12-312024-12-2802257199core:UKTax2023-12-312024-12-2802257199core:UKTax2022-12-312023-12-300225719912023-12-312024-12-280225719912022-12-312023-12-300225719922023-12-312024-12-280225719922022-12-312023-12-300225719932023-12-312024-12-280225719932022-12-312023-12-300225719942023-12-312024-12-280225719942022-12-312023-12-3002257199core:LeaseholdImprovements2023-12-3002257199core:PlantMachinery2023-12-3002257199core:Non-currentFinancialInstruments2024-12-2802257199core:Non-currentFinancialInstruments2023-12-3002257199core:WithinOneYear2024-12-2802257199core:WithinOneYear2023-12-3002257199core:BetweenTwoFiveYears2024-12-2802257199core:BetweenTwoFiveYears2023-12-3002257199bus:PrivateLimitedCompanyLtd2023-12-312024-12-2802257199bus:FRS1022023-12-312024-12-2802257199bus:Audited2023-12-312024-12-2802257199bus:FullAccounts2023-12-312024-12-28xbrli:purexbrli:sharesiso4217:GBP