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Registered number: 02589295
LATTICE LABELS LIMITED
FINANCIAL STATEMENTS
INFORMATION FOR FILING WITH THE REGISTRAR
FOR THE YEAR ENDED 31 DECEMBER 2024
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LATTICE LABELS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
This strategic report provides a balanced and comprehensive review of the Company’s performance during the year ended 31 December 2024. It reflects the business’s position at the year end, taking into account the scale and nature of our operations, as well as the risks and uncertainties we face.
Financial overview
For the year ended 31 December 2024, the Company achieved a profit before taxation of £387,412 (2023: £141,135; 2022: £480,372).
The Directors are very pleased with the Company’s performance in 2024. Following a challenging 2023, which included the loss of our largest contract, the business has responded strongly. Although we lost this major contract in 2023, we regained a proportion of the work during the last six months of 2024 and have now secured a large proportion of it for 2025. This, along with new business wins, improved operational efficiency, and greater market stability, contributed to a significant increase in profitability. Strategic efforts to streamline production and enhance customer service have continued to yield positive results..
Turnover
Management considers the Company’s turnover performance to be in line with expectations and ahead of the general market trend. The return to growth reflects the successful execution of our commercial strategy and client retention efforts.
Operating costs
Operating costs remained well-controlled throughout the year, consistent with the prior period. Continued focus on efficiency has supported margin improvement.
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LATTICE LABELS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
PRINCIPAL RISKS AND UNCERTAINTIES
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The Company’s operations and strategic direction are subject to various risks. Management continues to monitor and manage these risks, adapting strategies as needed. Key areas include:
Economic downturn
The Company remains exposed to macroeconomic pressures, with consumer demand being a critical driver of revenue. While economic conditions stabilised during 2024, we remain vigilant and agile, adjusting marketing and pricing strategies in response to any downturn.
Of particular concern is the re-emergence of global trade tensions, including the tariff war instigated by U.S. President Donald Trump. These developments have the potential to disrupt international supply chains, increase input costs, and weaken overall economic confidence. Management continues to monitor these developments closely and will adapt procurement and pricing strategies as necessary to mitigate any adverse impact.
Domestically, the UK Spring Statement 2025 provided some positive signals, including a modest easing of fiscal policy, continued support for businesses through capital allowance schemes, and a reaffirmed commitment to controlling inflation. While these measures are welcome, the broader economic recovery remains fragile, and consumer confidence is still subject to fluctuation.
Product manufacturing
Maintaining high product quality and relevance to market demand is essential to the Company’s success. Key risk areas include:
- Quality of labels
- Competitive pricing
- Breadth and adaptability of the product range
Management remains confident in the Company's ability to deliver high-quality products that meet evolving customer needs.
FINANCIAL KEY PERFORMANCE INDICATORS
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Turnover Growth
Sales performance continues to be a key focus. Although reported turnover for the year grew by £71k this was affected by a change in one major customer’s supply arrangement—resulting in a £600k reduction in reported turnover—this was due to the customer moving to a conversion-only model and supplying their own material free of charge (FOC).
This change had no negative impact on profitability and in fact contributed to an improvement in gross margin. Adjusting for this, the underlying turnover performance would have shown growth compared to 2023.
Gross margin increased from 34% to 37.4%, reflecting better material usage, improved operational efficiency, and an enhanced product mix. Economic conditions also showed further signs of improvement during 2024, with inflation pressures easing and interest rates beginning to fall. We expect these trends to continue benefiting the business into 2025.
Working Capital Management
Average debtor days at year end were 57.5 days (2023: 51.7 days; 2022: 46.1 days), remaining well within our target of 60.0 days. Stock turns improved to 10.2:1 (2023: 9.8:1), reflecting the impact of our continued focus on inventory efficiency and stock reduction throughout the year.
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LATTICE LABELS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
OTHER KEY PERFORMANCE INDICATORS
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In addition to financial metrics, the Company monitors the following non-financial indicators:
New Business Acquisition
The value of new contracts secured during 2024 exceeded our targets and helped drive overall performance. Our business development strategy continues to deliver strong results.
Contract Losses
Contract losses are closely tracked and categorised as either within or outside our control. Losses under our control were in line with expected levels, and those due to external factors (such as client insolvency) remained within anticipated tolerances.
Productivity and Efficiency
Operational metrics across the business showed year-on-year improvement, driven by strategic capital investment, product mix optimisation, and enhanced process management.
This report was approved by the board and signed on its behalf.
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T C Clifton
Director
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LATTICE LABELS LIMITED
REGISTERED NUMBER: 02589295
BALANCE SHEET
AS AT 31 DECEMBER 2024
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Debtors: amounts falling due within one year
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Creditors: amounts falling due within one year
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Total assets less current liabilities
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Creditors: amounts falling due after more than one year
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Provisions for liabilities
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The Company's financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The Company has opted not to file the statement of income and retained earnings in accordance with provisions applicable to companies subject to the small companies' regime.
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
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T C Clifton
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LATTICE LABELS LIMITED
REGISTERED NUMBER: 02589295
BALANCE SHEET (CONTINUED)
AS AT 31 DECEMBER 2024
The notes on pages 8 to 17 form part of these financial statements.
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LATTICE LABELS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
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Comprehensive income for the year
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Other comprehensive income for the year
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Total comprehensive income for the year
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Contributions by and distributions to owners
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Dividends: Equity capital
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Total transactions with owners
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The notes on pages 8 to 17 form part of these financial statements.
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LATTICE LABELS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
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Comprehensive income for the year
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Other comprehensive income for the year
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Total comprehensive income for the year
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Contributions by and distributions to owners
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Dividends: Equity capital
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Total transactions with owners
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The notes on pages 8 to 17 form part of these financial statements.
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LATTICE LABELS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Lattice Labels Limited is a private Company limited by shares incorporated in England and Wales, United Kingdom. The registered office is 2 Chester Road, Colmworth Business Park, St Neots, PE19 8YT.
The principal activity of the company continued to be that of a label producer and supplier.
2.ACCOUNTING POLICIES
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BASIS OF PREPARATION OF FINANCIAL STATEMENTS
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The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies.
The following principal accounting policies have been applied:
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FINANCIAL REPORTING STANDARD 102 - REDUCED DISCLOSURE EXEMPTIONS
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The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
∙the requirements of Section 7 Statement of Cash Flows;
∙the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d).
This information is included in the consolidated financial statements of Random Factor Limited as at 31st December 2023 and these financial statements may be obtained from 2 Chester Road, Colmworth Business Park, St Neots, PE19 8YT..
The directors have prepared projected budgets and on the basis of these budgets, the directors have considered the company to continue to operate as a going concern. The directors are confident that the company will have sufficient funds to meet its liabilities as they fall due for a period of not less than 12 months from the date of approval of these financial statements.
The directors continue to monitor cashflow closely and exercise tight credit control and, based on their forecasts and built up reserves, consider it appropriate to continue to prepare the financial statements on a going concern basis.
Turnover comprises revenue recognised by the company in respect of goods supplied during the year, exclusive of Value Added Tax and trade discounts. Turnover is recognised on despatch of goods.
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LATTICE LABELS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.ACCOUNTING POLICIES (CONTINUED)
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.
At each reporting date the Company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives.
Depreciation is provided on the following basis:
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OPERATING LEASES: THE COMPANY AS LESSEE
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Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.
Short term debtors are measured at transaction price, less any impairment.
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CASH AND CASH EQUIVALENTS
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Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours.
Short term creditors are measured at the transaction price.
Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.
Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.
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LATTICE LABELS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.ACCOUNTING POLICIES (CONTINUED)
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LEASED ASSETS: THE COMPANY AS LESSEE
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Assets obtained under hire purchase contracts and finance leases are capitalised as tangible fixed assets. Assets acquired by finance lease are depreciated over the shorter of the lease term and their useful lives. Assets acquired by hire purchase are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the company. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to profit or loss so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.
Defined contribution pension plan
The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.
The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds.
A liability is recognised to the extent of any unused holiday pay entitlement which is accrued at the balance sheet date and carried forward to future periods. This is measured at the undiscounted salary cost of the future holiday entitlement so accrued at the balance sheet date.
All borrowing costs are recognised in profit or loss in the year in which they are incurred.
Interest income is recognised in profit or loss using the effective interest method.
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PROVISIONS FOR LIABILITIES
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Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
Increases in provisions are generally charged as an expense to profit or loss.
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LATTICE LABELS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.ACCOUNTING POLICIES (CONTINUED)
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CURRENT AND DEFERRED TAXATION
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The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.
The current corporation tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.
Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
∙The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.
Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.
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The average monthly number of employees, including the directors, during the year was as follows:
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Production and development
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LATTICE LABELS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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Charge for the year on owned assets
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Charge for the year on financed assets
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The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:
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LATTICE LABELS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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Raw materials and consumables
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Work in progress (goods to be sold)
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Finished goods and goods for resale
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Amounts owed by group undertakings
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Prepayments and accrued income
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CASH AND CASH EQUIVALENTS
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LATTICE LABELS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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CREDITORS: Amounts falling due within one year
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Invoice discounting facility
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Other taxation and social security
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Obligations under finance lease and hire purchase contracts
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Accruals and deferred income
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The aggregate amount of creditors in the Company's balance sheet as at the year end in respect of which security has been given by the company is £496,332 (2023: £65,153). Hire purchase contracts outstanding were secured against the assets to which they related.
The Company’s bank holds security over the bank borrowings, held within the parent company, which were outstanding at the year end in relation to the total net book value of the Company’s and Group’s assets at the year end via debenture and via a cross guarantee over the property at 2 Chester Road, Colmworth Business Park, Eaton Socon, St Neots.
The company has a £1,500,000 (2023 - Nil) invoice discounting facility with Barclays Bank plc secured by a fixed and floating charge over the assets of Lattice Labels Limited and a corporate guarentee over parent company Random Factor Limited. At 31 December 2024 the balance due on the facility was £565,885 (2023 - £Nil).
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CREDITORS: Amounts falling due after more than one year
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Net obligations under finance leases and hire purchase contracts
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LATTICE LABELS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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Analysis of the maturity of loans is given below:
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Amounts falling due within one year
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Amounts falling due 1-2 years
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HIRE PURCHASE AND FINANCE LEASES
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Minimum lease payments under hire purchase fall due as follows:
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LATTICE LABELS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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Financial assets measured at fair value through profit or loss
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Financial assets that are debt instruments measured at amortised cost
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Financial liabilities measured at amortised cost
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Financial assets measured at fair value through profit or loss comprise cash at bank and in hand.
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Financial assets that are debt instruments measured at amortised cost comprise trade debtors, amounts owed by group undertakings and other debtors.
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Financial liabilities measured at amortised cost comprise trade creditors, amounts owed by group undertakings, other creditors and accruals.
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Charged to profit or loss
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The provision for deferred taxation is made up as follows:
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Accelerated capital allowances
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Other short term timing differences
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LATTICE LABELS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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A dilapidations provision was included in the financial statements in respect of remedial work required to reinstate the buildings when vacated.
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Allotted, called up and fully paid
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308,750 Ordinary Shares shares of £1.00 each
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Profit and loss account
Includes all current and prior period retained profits or losses less any dividends paid.
The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £117,095 (2023 - £119,146). No contributions (2023 - £Nil) were Payable to the fund at the balance sheet date.
The ultimate parent undertaking of the Company is Random factor Limited. The ultimate controlling party of the Company are the Board of Directors of Random Factor Limited by virtue of their directorships and shareholdings of the company.
The auditors' report on the financial statements for the year ended 31 December 2024 was unqualified.
The audit report was signed on 12 August 2025 by Paul Cullen FCCA (Senior Statutory Auditor) on behalf of Price Bailey LLP.
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