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Registered number: 05955637
OLMEC - UK LIMITED
FINANCIAL STATEMENTS
INFORMATION FOR FILING WITH THE REGISTRAR
FOR THE PERIOD ENDED 31 DECEMBER 2024
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OLMEC - UK LIMITED
REGISTERED NUMBER: 05955637
STATEMENT OF FINANCIAL POSITION
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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OLMEC - UK LIMITED
REGISTERED NUMBER: 05955637
STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT 31 DECEMBER 2024
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Capital redemption reserve
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The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the provisions of FRS 102 Section 1A - small entities.
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:
The notes on pages 3 to 12 form part of these financial statements.
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OLMEC - UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2024
The company is a private company limited by shares, registered in England and Wales. The registered
office is Unit 4 Falkland Way, Barton Upon Humber, North Lincolnshire, DN18 5RL.
The company's year end was changed to align with other entities within the group. These financial statements therefore cover the 14-month period from 1 November 2023 to 31 December 2024. The comparative period presents the results for the year from 1 November 2022 to 31 October 2023.
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 FRS 102 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland' and the requirements of the Companies Act 2006. The disclosure requirements of Section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The following principal accounting policies have been applied:
The financial statements have been prepared on a going concern basis. During the year, the company was acquired and now forms part of the PCE Group. In assessing the appropriateness of this basis due to the nature of operations, the directors have considered the Group’s, to which this company is now a member, current and forecast financial position, cash flows, and liquidity.
During 2024 and into 2025, the Group increased staff levels and overheads to support anticipated growth in customer orders. However, due to delays in certain contracts, activity levels have not grown, or been delivered at the expected rate. In response, management is actively reviewing the cost base and implementing measures to align expenditure with current trading levels.
As part of their assessment, the directors have prepared forecasts until December 2026, taking into consideration expected trading performance, profitability, and potential cost saving measures across the Group they may take.
The Group’s current working capital facilities include several bank loans and an overdraft facility with HSBC. In addition, there is a £700k invoice financing agreement with another provider. The directors maintain regular dialogue with the bank and maintain a positive working relationship. The overdraft facility, currently at £750k, is renewed annually, to which the next renewal is due in March 2026, and the bank have indicated their continued support with this facility at the current level, with the potential for the facility to increase.
The directors have planned various different scenarios over the next 12 months, some of which include several cost-saving measures, to which the above banking facilities will be utilised in the short term, to ensure the long term sustainability of the business. These forecasts show that the Group are expected to return to profitability and generate sufficient cash flows to meet its obligations as they fall due for a period of at least 12 months from the date of approval of these financial statements.
Based on this assessment, the directors consider it appropriate to continue to adopt the going concern basis in preparing the financial statements.
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OLMEC - UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes.
In the case of long-term contract work, turnover reflects the contract activity of the year once contractual obligations have been met and is based on the directors' valuation of work carried out on each contract.
Turnover reflects costs incurred to date in establishing and managing the contracts plus the directors' best estimate of attributable profits which include a proportion of the total profits anticipated to be made on the contract, to the extent that their realisation is reasonably foreseeable.
Provision is made for foreseeable losses on all contracts based on the loss which is currently estimated to arise over the duration of any contract, irrespective of the amount of work carried out at the balance sheet date.
Sales of spare parts are recognised on despatch.
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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.
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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.
Interest income is recognised in profit or loss using the effective interest method.
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.
All borrowing costs are recognised in profit or loss in the period in which they are incurred.
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OLMEC - UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
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 Statement of Financial Position. The assets of the plan are held separately from the Company in independently administered funds.
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Current and deferred taxation
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The tax expense for the period 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 income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company operates and generates income.
Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting 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 reporting date.
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.
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OLMEC - UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
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Tangible fixed assets (continued)
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Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
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Short-term leasehold property
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The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.
At each reporting date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.
Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, 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. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.
Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.
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OLMEC - UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
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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.
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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The average monthly number of employees, including directors, during the period was 39 (2023 - 35).
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OLMEC - UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2024
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Leasehold property improvements
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Raw materials and consumables
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OLMEC - UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2024
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Amounts recoverable on contracts
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Prepayments and accrued income
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Creditors: Amounts falling due within one year
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Payments received on account
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Amounts owed to group undertakings
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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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Customer payments on account
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Accruals and deferred income
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All hire purchase creditors are secured on the related assets.
The bank loan is secured by way of a fixed and floating charge over the Company's assets as well as a personal guarantee by the directors limited to £40,000.
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OLMEC - UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2024
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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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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 2-5 years
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Charged to profit or loss
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OLMEC - UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2024
10.Deferred taxation (continued)
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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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Tax losses carried forward
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It was identified that the revenue and costs recognised under long term contracts in the year ended 31 October 2023 contained some errors. These have been corrected in the comparatives to these financial statements. The adjustments made were:
Decrease turnover by £336,578;
Increase cost of sales by £15,495;
Decrease tax charge by £79,216;
Decrease deferred tax liability by: £79,216;
Decrease amounts recoverable on contract (debtors) by £169,895; and
Increase customer payments on account (creditors) by £182,178.
The pension cost charge represents contributions payable to defined contribution pension plans and amounted to £99,171 (2023 - £108,412). Contributions totalling £3,865 (2023 - £14,102) were payable at the balance sheet date.
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Commitments under operating leases
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At 31 December 2024 the Company had future minimum lease payments payable under non-cancellable operating leases for each of the following periods:
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Later than 1 year and not later than 5 years
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OLMEC - UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2024
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Related party transactions
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The company has taken advantage of the exemption in FRS 102 not to disclose transactions with 100% owned group companies.
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The immediate and ultimate parent company is PCE Automation Limited. PCE Automation Limited is registered in England and Wales and the address of the registered office is Ellough Road, Beccles, Suffolk, United Kingdom, NR34 7TE.
Olmec UK Limited is included in the consolidated financial statements of PCE Group Limited, the ultimate parent company, whose registered office is Ellough Road, Beccles, Suffolk, United Kingdom, NR34 7TE. Copies of the consolidated financial statements are available from Companies House.
The auditors' report on the financial statements for the period ended 31 December 2024 was qualified.
The qualification in the audit report was as follows:
This is the first year that the Company has been audited. Accordingly, we have been unable to obtain sufficient appropriate audit evidence over the existence and valuation of the opening balance of stock of £34,668 as at 1 November 2023 and are therefore unable to determine whether this amount is free from material misstatement or whether any adjustment is required. As a result of this, we are also unable to obtain sufficient appropriate audit evidence in respect of the cost of sales of £3,186,401 for the period ended 31 December 2024 and whether any adjustment is required to this amount. We are also therefore unable to provide an opinion on any reference to profits made in the Strategic and/or Directors' reports included within these financial statements. A physical stock count was carried out and attended by the auditors as at 31 December 2024 and we are satisfied that stocks as at 31 December 2024, included in the Statement of Financial Position at £259,459, are not materially misstated.
The audit report was signed on 19 December 2025 by John Atkins ACA FCCA (Senior Statutory Auditor) on behalf of Larking Gowen LLP.
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