Company Registration No. 00411322 (England and Wales)
ROYSTON LEAD LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
Faulkner House
Victoria Street
Rayner Essex LLP
St Albans
Chartered Accountants
Hertfordshire
AL1 3SE
ROYSTON LEAD LIMITED
COMPANY INFORMATION
Directors
Mr G O'Riordan
Mr I Crabbe
Mr M E Sherling
Company number
00411322
Registered office
Pogmoor Works
Stocks Lane
Barnsley
South Yorkshire
S75 2DS
Auditor
Rayner Essex LLP
Faulkner House
Victoria Street
St Albans
Hertfordshire
AL1 3SE
ROYSTON LEAD LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Profit and loss account
8
Statement of comprehensive income
9
Balance sheet
10
Statement of changes in equity
11
Notes to the financial statements
12 - 30
ROYSTON LEAD LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2019
- 1 -
The directors present the strategic report for the year ended 31 December 2019.
Fair review of the business
The company operates within a sector closely related to
the new build and refurbishment sector of the construction industry which has continued to perform satisfactorily throughout the year.
Principal risks and uncertainties
The principal risks and uncertainties faced by the company in the view of the directors are as follows:
Liquidity risk
The board manages liquidity risk by a combination of controls such as the monitoring of gearing levels and ensuring that facilities are readily available for use.
Price risk
The industry in which the company operates is greatly effected by the price of lead
of which
is
outside the control of the company as
it is
dictated by market forces. The directors therefore undertake daily reviews of the price of lead as shown on the London Metal Exchange (LME)
.
The directors believe that the company has the appropriate controls in place to ensure that the company can react in a timely fashion to any significant changes in the price of lead
.
Development and performance
Royston Lead
Limited was a member of the International Industrial Metals Limited Group (2IM Group) during the year ended 31 December 201
9
.
During
the year the subsidiaries of Barlo Radiators Limited (Barlo Group), a fellow subsidiary and a sub group of 2IM Group, was placed into an insolvency process comprising administration and liquidation.
The management of the 2IM Group enacted a restructuring program which was completed in February 2020. This involved the reorganisation of the 2IM Group and resulted in control of the company and certain subsidiaries transferring from International Industrial Metals Limited to International Metal Industries Limited on 6 February 2020 (IMI Group).
Following the restructuring, which included the introduction of additional finance, management are confident that the remaining subsidiaries, which consist of the lead recycling, processing and distribution operations and include
Royston Lead
Limited, will continue to operate and develop in accordance with the plans and forecasts prepared in the IMI Group.
To date the company has operated successfully during the Covid-19 pandemic. The directors, however, are aware that the pandemic continues to cause general economic uncertainty.
ROYSTON LEAD LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
- 2 -
Key performance indicators
The directors review various key performance indicators during the year to measure the performance of the company both compared to forecasts and against the industry as a whole. A summary of these indicators are as follows:-
Turnover
The directors review the pricing of its products in line with the prices on the LME. This means that the prices offered by the company to its customers are continually updated and remain competitive.
Turnover for the year was £16.8m (2018: £18.2m)
Gross profit
As a result of the continued review of the sales prices the directors continually take steps to ensure that the company maintains its gross margin. This is reviewed throughout the year.
Gross profit for the year was £2.7m (2018: £2.3m)
Debtors days
The directors review the average debtors days throughout the year to ensure that any collection problems are swiftly identified and resolved.
Debtor days decreased from 58 in 2018 to 53 in 2019.
Stock turnover
The directors strive to hold stock levels to ensure that any short term fluctuation in the lead price can be covered whilst not tying up a large amount of funds in stock holding.
Turnover days for the year was 36.9 days (2018: 45.6 days)
Mr M E Sherling
Director
25 September 2020
ROYSTON LEAD LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2019
- 3 -
The directors present their annual report and financial statements for the year ended 31 December 2019.
Principal activities
The principal activity of the company continued to be that of the manufacture
specialised lead products.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr G O'Riordan
Mr I Crabbe
Mr M E Sherling
Results and dividends
The results for the year are set out on page 8.
The directors do not recommend the payment of a dividend for the current financial year.
Financial instruments
The company uses financial instruments comprising bank loans and overdrafts, together with various items such as trade debtors and trade creditors that arise directly from its operations. It is the objective of the board to ensure that the company has ready access to the funds that the board deems necessary at any time during the year. The board reviews future projections to highlight any times when requirements may exceed current levels to ensure that facilities are in place and available.
The main risks arising from the financial instruments are credit risk, interest rate risk, liquidity risk and cash flow risk. The company reviews and agrees policies for managing these risks, as detailed below, to minimise its exposure.
Liquidity risk
There are no significant long term investments held by the company. The majority of the company's net assets are current and the board is looking to ensure that the company
maintains
a Quick ratio of
at least
1.
Interest rate risk
The company finances its operations in the main through bank loans and
asset based financing
. The resulting interest costs are reviewed by the directors however, the board accepts that a
certain
amount of third party funding is required and therefore the board does accept the risk attached to interest rate fluctuations. This risk is considered low by the board in the current environment.
Credit risk
The company undertakes credit checks for new accounts and sets credit limits for its customers. The level of debtor days is reviewed for significant accounts and procedures are in place if an account falls outside the set parameters. A reputable credit insurer is also used to insure the debtors. Due to the current market conditions prevailing within the industry sector the company makes an adequate and realistic provision against possible trade debts.
Cash flow risk
The board continually monitors the cash requirments of the company to ensure that there is the appropriate level of cover. There are adequate facilties readily available to support the company's cash flow requirements at the balance sheet date.
ROYSTON LEAD LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
- 4 -
Research and development
The company invests in the development of new technology. During the period the company incurred £29,039 of business development and research expenditure (2018: £49,717). The directors believe this will lead to future profits for the company.
Post reporting date events
Following the year end a restructuring and refinancing program was undertaken resulting in control of the company transferring from International Industrial Metals Limited to International Metal Industries Limited. The transfer happened on 6 February 2020.
Future developments
The directors continue to develop the business in accordance with plans and projections.
Auditor
The auditor, Rayner Essex LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
Statement of directors' responsibilities
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.
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.
On behalf of the board
Mr M E Sherling
Director
25 September 2020
ROYSTON LEAD LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ROYSTON LEAD LIMITED
- 5 -
Opinion
We have audited the financial statements of Royston Lead Limited (the 'company') for the year ended 31 December 2019 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity and notes to the financial statements, including a summary of significant accounting policies.
The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 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 31 December 2019 and of its profit for the year 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's
responsibilities for the audit of the financial statements
section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard
, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
The impact of uncertainties due to Britain exiting the European Union on our audit
Uncertainties related to the effects of Brexit are relevant to understanding our audit of the financial statements. All audits assess and challenge the reasonableness of estimates made by the directors, such as impairment of fixed assets, recoverability of debtors, intangible assets and related disclosures and the appropriateness of the going concern basis of preparation of the financial statements. All of these depend on assessments of the future economic environment and the company's future prospects and performance.
Brexit is one of the most significant economic events for the UK, and at the date of this report its effects are subject to unprecedented levels of uncertainty of outcomes, with the full range of possible effects unknown. No audit should be expected to predict the unknowable factors or all possible future implications for a company and this is particularly the case in relation to Brexit.
The impact of uncertainties due to Covid-19 on our audit
Uncertainties related to the global effects of Covid-19 are relevant to understanding our audit of the financial statements. All audits assess and challenge the reasonableness of estimates made by the directors, such as impairment of fixed assets, recoverability of debtors, intangibles assets and related disclosures and the appropriateness of the going concern basis of preparation of the financial statements. All of these depend on assessments of the future economic environment and the company's future prospects and performance.
Covid-19 is one of the most significant global economic events presently and at the date of this report its effects are subject to unprecedented levels of uncertainty of outcomes, with the full range of possible effects unknown. No audit should be expected to predict the unknowable factors or all possible future implications for a company and this is particularly the case in relation to Covid-19.
ROYSTON LEAD LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ROYSTON LEAD LIMITED
- 6 -
Conclusions relating to going concern
We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:
-
the directors' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or
-
the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the company’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue
.
However, as not all future events or conditions can be predicted, such as the impact of Brexit and Covid-19 and as subsequent events may result in outcomes that are inconsistent with judgements that were reasonable at the time they were made, the absence of reference to a material uncertainty in this auditor's report is not a guarantee that the company will continue in operation as a going concern.
The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the
financial statements
does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit
:
-
the information given in the strategic report and the directors' r
eport for the financial year 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.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identifie
d
material misstatements in the strategic report and the directors'
r
eport
.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
-
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
-
the financial statements are not in agreement with the accounting records and returns; or
-
certain disclosures of directors' remuneration specified by law are not made; or
-
we have not received all the information and explanations we require for our audit.
ROYSTON LEAD LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ROYSTON LEAD LIMITED
- 7 -
Responsibilities of directors
As explained more fully in the directors'
r
esponsibilities
s
tatement, 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's 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.
A further description of our responsibilities for the audit of the financial statements is located on the
Financial Reporting Council’s website at: http://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.
Antony Federer FCA FCCA CF (Senior Statutory Auditor)
for and on behalf of Rayner Essex LLP
28 September 2020
Chartered Accountants
Statutory Auditor
Faulkner House
Victoria Street
St Albans
Hertfordshire
AL1 3SE
ROYSTON LEAD LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2019
- 8 -
2019
2018
Notes
£
£
Turnover
3
16,829,556
18,192,482
Cost of sales
(14,162,930)
(15,878,820)
Gross profit
2,666,626
2,313,662
Administrative expenses
(2,480,890)
(2,111,712)
Operating profit
4
185,736
201,950
Interest receivable and similar income
7
27,000
24,000
Interest payable and similar expenses
8
(141,898)
(166,571)
Profit before taxation
70,838
59,379
Tax on profit
9
-
-
Profit for the financial year
70,838
59,379
The profit and loss account has been prepared on the basis that all operations are continuing operations.
ROYSTON LEAD LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2019
- 9 -
2019
2018
£
£
Profit for the year
70,838
59,379
Other comprehensive income
Actuarial (loss)/gain on defined benefit pension schemes
(15,000)
16,000
Total comprehensive income for the year
55,838
75,379
ROYSTON LEAD LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2019
31 December 2019
- 10 -
2019
2018
Notes
£
£
£
£
Fixed assets
Tangible assets
10
823,239
533,369
Investments
11
4,900
4,900
828,139
538,269
Current assets
Stocks
12
1,242,240
1,518,639
Debtors
13
5,470,603
6,418,173
Cash at bank and in hand
103,650
69,024
6,816,493
8,005,836
Creditors: amounts falling due within one year
14
(4,277,414)
(5,153,255)
Net current assets
2,539,079
2,852,581
Total assets less current liabilities
3,367,218
3,390,850
Creditors: amounts falling due after more than one year
15
(473,899)
(543,369)
Provisions for liabilities
18
(252,000)
(262,000)
Net assets
2,641,319
2,585,481
Capital and reserves
Called up share capital
19
59,170
59,170
Share premium account
20
245,277
245,277
Profit and loss reserves
22
2,336,872
2,281,034
Total equity
2,641,319
2,585,481
The financial statements were approved by the board of directors and authorised for issue on 25 September 2020 and are signed on its behalf by:
Mr M E Sherling
Director
Company Registration No. 00411322
ROYSTON LEAD LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2019
- 11 -
Share capital
Share premium account
Profit and loss reserves
Total
£
£
£
£
Balance at 1 January 2018
59,170
245,277
2,205,655
2,510,102
Year ended 31 December 2018:
Profit for the year
-
-
59,379
59,379
Other comprehensive income:
Actuarial gains on defined benefit plans
-
-
16,000
16,000
Total comprehensive income for the year
-
-
75,379
75,379
Balance at 31 December 2018
59,170
245,277
2,281,034
2,585,481
Year ended 31 December 2019:
Profit for the year
-
-
70,838
70,838
Other comprehensive income:
Actuarial gains on defined benefit plans
-
-
(15,000)
(15,000)
Total comprehensive income for the year
-
-
55,838
55,838
Balance at 31 December 2019
59,170
245,277
2,336,872
2,641,319
ROYSTON LEAD LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
- 12 -
1
Accounting policies
Company information
Royston Lead Limited is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
Pogmoor Works, Stocks Lane, Barnsley, South Yorkshire, S75 2DS.
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 a
mounts
in these financial statements are
rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares
publicly available consolidated financial statements
, including this company,
which are
intended to give a true and fair view of the assets, liabilities,
financial position and profit or loss
of the group
.
T
he company has
therefore
taken advantage of
e
xemptions from the following disclosure requirements:
-
Section 4 ‘Statement of Financial Position’ – Reconciliation of the opening and closing number of shares
;
-
Section 7 ‘Statement of Cash Flows’ – Presentation of a statement of cash
f
low and related notes and disclosures
;
-
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues’ – Carrying amounts, interest income/expense and net gains/losses for each category of financial instrument; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income
;
-
Section 26 ‘Share based Payment’ – Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements
;
-
Section 33 ‘Related Party Disclosures’ – Compensation for key management personnel
.
The financial statements of the company are consolidated in the financial statements of Envirolead Midco
Limited
. These consolidated financial statements are available from its registered office
: Faulkner House, Victoria Street, St Albans, Herts, AL1 3SE.
ROYSTON LEAD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
1
Accounting policies
(Continued)
- 13 -
1.2
Going concern
The financial statements
true
for the Company
are prepared on
a going concern basis.
The Company was a member of the International Industrial Metals Limited Group (2IM Group) during the year ended 31 December 201
9
. In June 2019 the subsidiaries of Barlo Radiators Limited (Barlo Group) which is a sub group of International Industrial Metals Limited were placed into formal insolvency processes comprising administration and liquidation.
The management of the 2IM Group enacted a restructuring program which was completed in February 2020. This involved the reorganisation of the 2IM Group and resulted in control of Royston Lead Limited and certain subsidiaries transferring from International Industrial Metals Limited to International Metal Industries Limited on 6 February 2020 (IMI Group).
Following the restructuring, which included the introduction of additional finance, management are confident that the remaining subsidiaries, which consist of the lead recycling, processing and distribution operations and include Royston Lead Limited, will continue to operate and develop in accordance with the plans and forecasts prepared in the IMI Group.
The forecasts and projections that have been prepared include a base forecast as well as sensitised downside scenarios for the remaining trading subsidiaries within the IMI Group. These demonstrate the ability for these subsidiaries to continue trading within the agreed bank facilities together with additional funding to be introduced by the controlling shareholder of the reorganised group.
The IMI Group has continued to trade successfully during the Covid-19 pandemic and has taken advantage of government backed schemes aimed at assisting with funding requirements, including grants, the furlough scheme and additional banking facilities.
The financial position of the group at 31 December 2019 was satisfactory and post balance sheet trading is now exceeding the projections and forecasts prepared by the group which is operating within agreed banking facilities. The directors therefore concluded it was appropriate to prepare the financial statements on a going concern basis after considering the financial position of the group.
1.3
Turnover
Turnover represents amounts receivable for goods and services net of VAT and trade discounts, including sales rebates. Revenue is recognised at the point at which goods are
despatched
.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer
(usually on despatch of the goods)
, the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
The “percentage of completion method” is used to determine the appropriate amount to recognise in a given period. The stage of completion is measured by the proportion of contract costs incurred for work performed to date compared to the estimated total contract costs. Costs incurred in the year in connection with future activity on a contract are excluded from contract costs in determining the stage of completion. These costs are presented as stocks, prepayments or other assets depending on their nature, and provided it is probable they will be recovered.
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.
ROYSTON LEAD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
1
Accounting policies
(Continued)
- 14 -
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:
Freehold land and buildings
2% - 2.5% straight line
Plant and machinery
5% - 25% straight line
Motor vehicles
33.33% straight line
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
.
1.5
Fixed asset investments
Interests
in private
entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
The investments are assessed for impairment at each reporting date
and
any
impairment
losses or reversals of impairment losses are recognised immediately in profit or loss.
1.6
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. 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.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit)
in
prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.7
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
Stocks held for distribution at no or nominal consideration are measured at the lower of replacement cost and cost, adjusted where applicable for any loss of service potential.
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.
ROYSTON LEAD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
1
Accounting policies
(Continued)
- 15 -
1.8
Cash at bank and in hand
Cash and cash equivalents
are basic financial assets
and
include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.9
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.
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.
ROYSTON LEAD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
1
Accounting policies
(Continued)
- 16 -
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.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from
fellow group companies and preference shares that are classified as debt, 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
paymen
ts 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. A
m
ounts 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
Derivatives, including interest rate swaps and forward foreign exchange contracts,
are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are
s
ubsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
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 though 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.
1.10
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.
Deferred tax
Deferred tax is provided in full in respect of taxation deferred by timing differences between the treatment of certain items for taxation and accounting purposes. The deferred tax balance has not been discounted.
ROYSTON LEAD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
1
Accounting policies
(Continued)
- 17 -
1.11
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.
1.12
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
As a result of implementing FRS 1
02 section 28
'
Employee
Benefits' in full the company is required to recognise a pension obligation as disclosed in
Note 2
1
to the financial statements. The pension obligation in prior years is not material to the company's financial statements and therefore no prior year adjustment has been made in respect to this amount.
The regular cost of providing retirement pensions and related benefits is charged to the profit and loss account over the employees' service lives on the basis of a constant percentage of earnings. Any difference between the charge to the profit and loss account and the contributions paid to the scheme is shown as an asset or liability in the balance sheet.
The net interest element is determined by multiplying the net defined benefit liability by the discount rate, taking into account any changes in the net defined benefit liability during the period as a result of contribution and benefit payments. The net interest is recognised in profit or loss as other finance revenue or cost.
Remeasurement changes comprise actuarial gains and losses, the effect of the asset ceiling and the return on the net defined benefit liability excluding amounts included in net interest. These are recognised immediately in other comprehensive income in the period in which they occur and are not reclassified to profit and loss in subsequent periods.
The
net
defined benefit pension asset or liability in the balance sheet comprises the total for each plan of the present value of the defined benefit obligation (using a discount rate based on high quality corporate bonds), less the fair value of plan assets out of which the obligations are to be settled directly. Fair value is based on market price information, and in the case of quoted securities is the published bid price. The value of a net pension benefit asset is limited to the amount that may be recovered either through reduced contributions or agreed refunds from the scheme.
1.13
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair
value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
ROYSTON LEAD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
1
Accounting policies
(Continued)
- 18 -
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 except where another more systematic basis is more representative of the time pattern in which economic benefits from the lease
s
asset are consumed.
1.14
Foreign exchange
Monetary assets and liabilities denominated in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction. All differences are taken to profit and loss account.
1.15
Product warranties
Provision is made for customers' claims arising in product warranty periods based on management's assessment of costs to be incurred. In the case of certain large contracts, provision is made as a percentage of sales value. Costs of warranty work are written off against the provision as incurred.
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.
There are not considered to be any estimates or assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities of the company.
3
Turnover and other revenue
An analysis of the company's turnover is as follows:
2019
2018
£
£
Turnover analysed by class of business
Sale of goods
16,829,556
18,192,482
2019
2018
£
£
Other significant revenue
Interest income
27,000
24,000
ROYSTON LEAD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
3
Turnover and other revenue
(Continued)
- 19 -
2019
2018
£
£
Turnover analysed by geographical market
UK
7,219,975
10,001,053
Europe
3,620,885
2,681,611
Rest of world
5,988,696
5,509,818
16,829,556
18,192,482
4
Operating profit
2019
2018
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange differences apart from those arising on financial instruments measured at fair value through profit or loss
211,986
(70,346)
Research and development costs
29,039
49,717
Fees payable to the company's auditor for the audit of the company's financial statements
12,000
12,000
Depreciation of owned tangible fixed assets
61,592
105,512
Depreciation of tangible fixed assets held under finance leases
28,748
15,000
Cost of stocks recognised as an expense
12,800,476
14,512,849
Operating lease charges
11,667
18,870
Exchange differences recognised in profit or loss during the year, except for those arising on financial instruments measured at fair value through profit or loss, amounted to £211,986 (2018 - £70,346).
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2019
2018
Number
Number
Management
1
1
Administration
10
9
Warehouse
32
32
Total
43
42
ROYSTON LEAD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
5
Employees
(Continued)
- 20 -
Their aggregate remuneration comprised:
2019
2018
£
£
Wages and salaries
1,458,963
1,365,741
Social security costs
130,564
116,367
Pension costs
38,121
29,362
1,627,648
1,511,470
6
Directors' remuneration
2019
2018
£
£
Remuneration for qualifying services
180,392
200,843
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2018 - 1).
Remuneration disclosed above include the following amounts paid to the highest paid director:
2019
2018
£
£
Remuneration for qualifying services
n/a
200,843
As total directors' remuneration was less than £200,000 in the current year, no disclosure is provided for that year.
7
Interest receivable and similar income
2019
2018
£
£
Interest income
Interest on the net defined benefit asset
27,000
24,000
ROYSTON LEAD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
- 21 -
8
Interest payable and similar expenses
2019
2018
£
£
Interest on bank overdrafts and loans
17,366
21,724
Other interest on financial liabilities
78,694
108,690
Interest on finance leases and hire purchase contracts
10,588
6,157
Net interest on the net defined benefit liability
34,000
30,000
Other interest
1,250
-
141,898
166,571
9
Taxation
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2019
2018
£
£
Profit before taxation
70,838
59,379
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2018: 19.00%)
13,459
11,282
Tax effect of expenses that are not deductible in determining taxable profit
(6,503)
19,861
Tax effect of utilisation of tax losses not previously recognised
-
(15,486)
Unutilised tax losses carried forward
1,697
-
Permanent capital allowances in excess of depreciation
(8,653)
(15,657)
Taxation charge for the year
-
-
At the end of the year, the company has tax losses of £376,002 (2018: £367,070) available to carry forward against future periods.
ROYSTON LEAD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
- 22 -
10
Tangible fixed assets
Freehold land and buildings
Plant and machinery
Motor vehicles
Total
£
£
£
£
Cost
At 1 January 2019
682,482
3,313,643
22,750
4,018,875
Additions
-
391,915
-
391,915
Disposals
(703)
(706,892)
(13,500)
(721,095)
Transfers to fellow subsidiary
(21,227)
(616,154)
-
(637,381)
At 31 December 2019
660,552
2,382,512
9,250
3,052,314
Depreciation and impairment
At 1 January 2019
324,724
3,138,032
22,750
3,485,506
Depreciation charged in the year
16,359
73,981
-
90,340
Eliminated in respect of disposals
(443)
(706,892)
(13,500)
(720,835)
Eliminated in transfers to fellow subsidiary
(9,782)
(616,154)
-
(625,936)
At 31 December 2019
330,858
1,888,967
9,250
2,229,075
Carrying amount
At 31 December 2019
329,694
493,545
-
823,239
At 31 December 2018
357,758
175,611
-
533,369
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
2019
2018
£
£
Plant and machinery
357,921
55,000
11
Fixed asset investments
2019
2018
£
£
Unlisted investments
4,900
4,900
The company has not designated any financial assets that are not classified as financial assets at fair value through profit or loss.
The investments represent ordinary shares held
(9%)
in Lead Delegated Assessment Limited, a company registered in England & Wales.
ROYSTON LEAD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
11
Fixed asset investments
(Continued)
- 23 -
Movements in fixed asset investments
Investments other than loans
£
Cost or valuation
At 1 January 2019 & 31 December 2019
4,900
Carrying amount
At 31 December 2019
4,900
At 31 December 2018
4,900
12
Stocks
2019
2018
£
£
Raw materials and consumables
1,242,240
1,518,639
13
Debtors
2019
2018
Amounts falling due within one year:
£
£
Trade debtors
2,409,404
2,848,058
Amounts owed by group undertakings
1,989,098
2,328,882
Other debtors
455,515
517,893
Prepayments and accrued income
616,586
723,340
5,470,603
6,418,173
Amounts owed by group undertakings are due within one year, interest free and unsecured.
ROYSTON LEAD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
- 24 -
14
Creditors: amounts falling due within one year
2019
2018
Notes
£
£
Bank loans
16
94,188
94,188
Obligations under finance leases
17
69,645
37,355
Trade creditors
196,719
498,550
Amounts owed to group undertakings
1,911,306
1,625,323
Taxation and social security
42,307
39,278
Other creditors
1,145,276
2,548,552
Accruals and deferred income
817,973
310,009
4,277,414
5,153,255
Included in other creditors is £1,126,078 (2018: £2,529,481) in respect of HSBC asset financing facilities. These are secured on the assets of the group.
Amounts owed to group undertakings are due within one year, interest free and unsecured.
15
Creditors: amounts falling due after more than one year
2019
2018
Notes
£
£
Bank loans and overdrafts
16
418,790
513,259
Obligations under finance leases
17
55,109
30,110
473,899
543,369
Amounts included above which fall due after five years are as follows:
Payable by instalments
147,000
210,000
16
Loans and overdrafts
2019
2018
£
£
Bank loans
512,978
607,447
Payable within one year
94,188
94,188
Payable after one year
418,790
513,259
The banking facilities also provided to the group by HSBC PLC and HSBC Invoice Financing (UK) Limited are secured by way of a fixed and floating charge over the assets of the company and of it's fellow group companies.
ROYSTON LEAD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
16
Loans and overdrafts
(Continued)
- 25 -
The loan facilities provided by HSBC are wholly repayable within 60 months. The loans bear interest between 2.75 - 2.95% above the HSBC Bank Base Rate.
17
Finance lease obligations
2019
2018
Future minimum lease payments due under finance leases:
£
£
Within one year
69,645
37,355
In two to five years
55,109
30,110
124,754
67,465
Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 3 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
18
Provisions for liabilities
2019
2018
Notes
£
£
Retirement benefit obligations
21
252,000
262,000
19
Share capital
2019
2018
£
£
Ordinary share capital
Issued and fully paid
7,000 ordinary of 5p each
350
350
58,820 deferred ordinary of £1 each
58,820
58,820
59,170
59,170
The deferred ordinary shares do not carry any rights to dividends. In addition, the deferred ordinary shares do not entitle the holders to vote at any general meeting of the company.
On a return of assets on a winding up, the assets of the company available for distribution among the members shall be applied first in repaying to the holders of the ordinary shares the amounts paid up on such shares together with a premium of £100 per share, and second in repaying to the holders of the deferred shares the amounts paid up on such shares. The balance of such assets shall be distributed among the holders of the ordinary shares rat
e
ably according to the number of shares held by them.
ROYSTON LEAD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
- 26 -
20
Share premium account
2019
2018
£
£
At the beginning and end of the year
245,277
245,277
21
Retirement benefit schemes
Defined contribution schemes
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.
The charge to profit or loss in respect of defined contribution schemes was £38,121 (2018 - £29,362).
Defined benefit schemes
The company operates a defined benefit pension scheme for qualifying employees. The most recent full actuarial valuation was on 1 January 2017 and was carried out by a qualified independent actuary. This showed a deficit of £472,000.
FRS102 valuations were undertaken be a qualified independent actuary and these show a deficit of £252,000 at 31 December 2019 and a deficit of £262,000 at 31 December 2018. The movement in the deficit is shown below.
The scheme is closed to new members and as a result the current service costs (as a percentage of pensionable earnings) is expected to increase in future years as the members of the scheme approach retirement.
Key assumptions
2019
2018
%
%
Discount rate
2.00
2.75
Expected rate of increase of pensions in payment
2.95
3.10
Expected rate of salary increases
3.00
3.20
Mortality assumptions
Assumed life expectations on retirement at age 65:
2019
2018
Years
Years
Retiring today
- Males
24.0
24.4
- Females
26.1
26.5
Retiring in 20 years
- Males
25.3
25.7
- Females
27.5
27.9
ROYSTON LEAD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
21
Retirement benefit schemes
(Continued)
- 27 -
Amounts recognised in the profit and loss account
2019
2018
£
£
Net interest on defined benefit liability/(asset)
7,000
6,000
Other costs and income
-
9,000
Total costs
7,000
15,000
Of the total expenses for the year
, £0 is included in cost of sales, £0 in distribution costs,
£0 (2018: £9,000)
in administration expenses, £2
7
,000 (201
8
: £2
4
,000) in investment income and £3
4
,000 (201
8
: £3
0
,000) in finance costs.
Amounts taken to other comprehensive income
2019
2018
£
£
Actual return on scheme assets
(42,000)
(19,000)
Less: calculated interest element
27,000
24,000
Return on scheme assets excluding interest income
(15,000)
5,000
Actuarial changes related to obligations
30,000
(21,000)
Total costs/(income)
15,000
(16,000)
The amounts included in the balance sheet arising from the company's obligations in respect of defined benefit plans are as follows:
2019
2018
£
£
Present value of defined benefit obligations
1,146,000
1,238,000
Fair value of plan assets
(894,000)
(976,000)
Deficit in scheme
252,000
262,000
ROYSTON LEAD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
21
Retirement benefit schemes
(Continued)
- 28 -
Movements in the present value of defined benefit obligations
2019
£
Liabilities at 1 January 2019
1,238,000
Benefits paid
(9,000)
Actuarial gains and losses
30,000
Interest cost
34,000
Other
(147,000)
At 31 December 2019
1,146,000
The defined benefit obligations arise from plans which are wholly or partly funded.
Movements in the fair value of plan assets
2019
£
Fair value of assets at 1 January 2019
976,000
Assets assumed in a business combination
(147,000)
Interest income
27,000
Return on plan assets (excluding amounts included in net interest)
15,000
Benefits paid
(9,000)
Contributions by the employer
32,000
At 31 December 2019
894,000
The actual return on plan assets was £42,000 (2018 - £19,000).
Fair value of plan assets at the reporting period end
2019
2018
£
£
Other assets
894,000
976,000
ROYSTON LEAD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
- 29 -
22
Profit and loss reserves
2019
2018
£
£
At the beginning of the year
2,281,034
2,205,655
Profit for the year
70,838
59,379
Actuarial differences recognised in other comprehensive income
(15,000)
16,000
At the end of the year
2,336,872
2,281,034
23
Financial commitments, guarantees and contingent liabilities
The banking facilities provided to the group by HSBC PLC and HSBC Invoice Financing (UK) Limited are secured by way of a fixed and floating charge over the assets of the company and of it's fellow group companies.
Further fixed charges have been created in favour of the Welsh Ministers securing the assets of group companies providing cross guarantees for all group companies in respect of the Group's debt facilities.
24
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases in relation to property, which fall due as follows:
2019
2018
£
£
Within one year
-
20,000
Between two and five years
-
50,000
-
70,000
The property lease relating to the prior year commitment was terminated during 2019 and therefore no commitment exists at the balance sheet date.
25
Events after the reporting date
Following the year end a restructuring and refinancing program was undertaken resulting in control of the company transferring from International Industrial Metals Limited to International Metal Industries Limited. The transfer happened on 6 February 2020.
ROYSTON LEAD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
- 30 -
26
Ultimate controlling party
The company's immediate parent undertaking is Envirolead Distribution Limited
, a subsidiary of Envirolead Midco Limited.
The company's ultimate parent company
as at 31 December 201
9
was
International Industrial Metals Limited, a company incorporated in the United Kingdom.
Envirolead Midco Limited
ha
s included the financial statements of
Royston Lead
Limited
in its consolidated group accounts, copies of which are available upon request: Faulkner House, Victoria Street, St Albans, Herts, AL1 3SE.
The ultimate controlling party is Mr M E Sherling by virtue of his voting rights on his shareholding in the ultimate parent undertaking.
27
Related party transactions and balances
The company has taken advantage of FRS 102 section 33.1A to not disclose transactions entered into between two or more members of a group, provided that any subsidiary which is party to the transaction is wholly owned by such a member.
During the year the following expenditure was incurred from the following related entities which share a common director and/or shareholder. All transactions were entered into at arm’s length.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nerja Enterprises Limited
|
|
|
During the year the following sales were entered into with the following related entities which share a common director and/or shareholder. All transactions were entered into at arm’s length.
At the balance sheet date the following balances were owed from/(to) the following related entities which share a common director.
2019-12-31
2019-01-01
false
CCH Software
CCH Accounts Production 2020.200
Mr G O'Riordan
Mr I Crabbe
Mr I Crabbe
00411322
2019-01-01
2019-12-31
00411322
bus:Director1
2019-01-01
2019-12-31
00411322
bus:Director3
2019-01-01
2019-12-31
00411322
bus:Director4
2019-01-01
2019-12-31
00411322
bus:Director2
2019-01-01
2019-12-31
00411322
bus:RegisteredOffice
2019-01-01
2019-12-31
00411322
2019-12-31
00411322
2018-01-01
2018-12-31
00411322
core:RetainedEarningsAccumulatedLosses
2018-01-01
2018-12-31
00411322
core:RetainedEarningsAccumulatedLosses
2019-01-01
2019-12-31
00411322
2018-12-31
00411322
core:LandBuildings
core:OwnedOrFreeholdAssets
2019-12-31
00411322
core:PlantMachinery
2019-12-31
00411322
core:LandBuildings
core:OwnedOrFreeholdAssets
2018-12-31
00411322
core:PlantMachinery
2018-12-31
00411322
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2019-12-31
00411322
core:CurrentFinancialInstruments
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2018-12-31
00411322
core:CurrentFinancialInstruments
2019-12-31
00411322
core:CurrentFinancialInstruments
2018-12-31
00411322
core:Non-currentFinancialInstruments
2019-12-31
00411322
core:Non-currentFinancialInstruments
2018-12-31
00411322
core:ShareCapital
2019-12-31
00411322
core:ShareCapital
2018-12-31
00411322
core:SharePremium
2019-12-31
00411322
core:SharePremium
2018-12-31
00411322
core:RetainedEarningsAccumulatedLosses
2019-12-31
00411322
core:RetainedEarningsAccumulatedLosses
2018-12-31
00411322
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2017-12-31
00411322
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2017-12-31
00411322
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2017-12-31
00411322
2017-12-31
00411322
core:ShareCapitalOrdinaryShares
2019-12-31
00411322
core:ShareCapitalOrdinaryShares
2018-12-31
00411322
core:LandBuildings
core:OwnedOrFreeholdAssets
2019-01-01
2019-12-31
00411322
core:PlantMachinery
2019-01-01
2019-12-31
00411322
core:MotorVehicles
2019-01-01
2019-12-31
00411322
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2018-01-01
2018-12-31
00411322
core:UKTax
2019-01-01
2019-12-31
00411322
core:UKTax
2018-01-01
2018-12-31
00411322
core:LandBuildings
core:OwnedOrFreeholdAssets
2018-12-31
00411322
core:PlantMachinery
2018-12-31
00411322
core:MotorVehicles
2018-12-31
00411322
2018-12-31
00411322
core:MotorVehicles
2019-12-31
00411322
core:Non-currentFinancialInstruments
core:UnlistedNon-exchangeTraded
2019-12-31
00411322
core:Non-currentFinancialInstruments
core:UnlistedNon-exchangeTraded
2018-12-31
00411322
core:WithinOneYear
2019-12-31
00411322
core:WithinOneYear
2018-12-31
00411322
core:BetweenTwoFiveYears
2019-12-31
00411322
core:BetweenTwoFiveYears
2018-12-31
00411322
bus:PrivateLimitedCompanyLtd
2019-01-01
2019-12-31
00411322
bus:FRS102
2019-01-01
2019-12-31
00411322
bus:Audited
2019-01-01
2019-12-31
00411322
bus:FullAccounts
2019-01-01
2019-12-31
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