Registration number:
Omega North East Limited
for the Year Ended 31 March 2023
Omega North East Limited
Contents
Company Information |
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Strategic Report |
|
Directors' Report |
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Statement of Directors' Responsibilities |
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Independent Auditor's Report |
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Income Statement |
|
Statement of Financial Position |
|
Statement of Changes in Equity |
|
Notes to the Financial Statements |
Omega North East Limited
Company Information
Directors |
C S Thompson D Crone C R Swinhoe G Owen P A Sayer J Jamieson |
Company secretary |
L Wilson |
Registered office |
|
Auditor |
|
Omega North East Limited
Strategic Report for the Year Ended 31 March 2023
The directors present their strategic report for the year ended 31 March 2023.
Principal activity
The principal activity of the company is that Omega Plastics provides in-house, and project managed sub-contract injection mould tooling manufacture and a 24/5 low volume or technical moulding and assembly service across its 40T-330T press range, working across multiple sectors
Fair review of the business
Turnover increased year on year from £8,801,925 in FY22 to £9,808,866 in FY23 – a 11.4% increase. The increase was across Moulding, UK Tooling, and Offshore Tooling. With the largest increase seen across UK Tooling.
However, during FY23 Omega Plastics faced unprecedented challenges on costs and cost of execution, which despite the growth in sales materially impacted profitability.
The cost pressures increased as the year went on, unprecedented increases to energy costs, and inflationary pressures across the supply chain impacted the financial performance.
Omega Plastics continued to face sector wide operational challenges associated with short notice cancellations of orders, high levels of sickness post-COVID and ongoing challenges in relation to labour supply and recruitment.
Omega Plastics carried out an unplanned interim pay review in December 2022 to support employees during the cost-of-living crisis, increasing pay and salaries across the final 4 months of the financial year. Impacting both the cost of execution as well as overheads.
Cost pressures built within the supply chain, not all these costs could be mitigated through efficiency gains or continuous improvement activities, therefore impacting the GM% of Omega Plastics.
As the sales increased, so too did the costs of execution, resulting in a year-on-year reduction in the GM%. Reducing from 29.8% in FY22 to 28.9% in FY23. Overheads increased as a result of inflationary pressures and the rising energy costs.
EBITDA reduced from £912,532 in FY22 to £452,074. Resulting in a Net loss of (£135,755) for the year.
Despite the operational challenges, Omega Plastics continued investment throughout the year, increasing CapEx by 7.3% from £465,044 to £498,826.
Principal risks and uncertainties
Omega Plastics takes a proactive approach to the management of risk to protect the business and secure growth. An analysis of the key risks identified for FY23 are set out below.
Omega North East Limited
Strategic Report for the Year Ended 31 March 2023 (continued)
Omega North East Limited
Strategic Report for the Year Ended 31 March 2023 (continued)
Key performance Indicators
Various Key Performance Indicators (KPIs) to monitor financial performance are in place, please see below which relates to FY23 and a direct comparison to FY22:
Omega North East Limited
Strategic Report for the Year Ended 31 March 2023 (continued)
Post Year End/Outlook for financial year ended 31 March 2024 (“FY24”)
The Board and management believe that continued increased costs pressures and operational disruption will continue into and impact FY24.
The recovery of automotive sales in moulding has continued throughout H1 of FY24. However sales to other sectors have reduced, some customers-built stock levels during the COVID-19 pandemic and supply chain challenges era which had to be unwound.
UK Tooling output has remained strong across a number of sectors, however order intake for larger offshore projects has been lower with some customers delaying planned project launches.
The costs pressures seen throughout FY23 were exceptional and in the most part out of the managements control. As a result, the cost base increased by an amount that could not be mitigate through efficiency gains or continuous improvement activities.
The impact of the 9.7% national minimum wage increases in April 2023, continued high energy prices (settling at around 200% higher than previously), inflationary pressures (11.1% in October) have all impacted the cost of execution throughout the year so far.
Suppliers have continued to increase their prices on a frequent basis.
Outlook
The Board expects these challenges to continue for a further 12 months before stabilising. Further difficult pricing conversation are anticipated because of continued inflation, the significant increases to the National Living Wage and Real Living Wage from 1 April 2024 and continuing high interest rates.
Updated strategic objectives are in place for FY24 to provide the short-term focus needed to navigate the Group through the cost-of-living challenges whilst providing the future platform for growth and operational efficiency.
The Board would like to thank all colleagues in the Group for their efforts, commitment, and support shown throughout a challenging period.
Approved and authorised for issue by the
......................................... |
Omega North East Limited
Directors' Report for the Year Ended 31 March 2023
The directors present their report and the financial statements for the year ended 31 March 2023.
Directors of the company
The directors who held office during the year were as follows:
Financial instruments
Objectives and policies
The company finances its activities with a combination of bank loans, finance leases and cash and short term deposits. Other financial assets and liabilities, such as trade debtors and trade creditors, arise directly from the Company's operating activities.
Price risk, credit risk, liquidity risk and cash flow risk
Price risk
Price risk is the risk that changes in raw material prices have the potential to impact on the profitability of the company. The company does not consider that it is materially exposed to price risk.
Credit risk
Credit risk is the risk that one party of a financial instrument will cause a financial loss for the other party by failing to discharge its obligation. Company policies are aimed at minimising such losses and require customers to satisfy credit worthiness procedures prior to acceptance of contracts. The company also utilises insurance policies to protect against non-payment of debt. The company does not consider that it is materially exposed to credit risk.
Cash flow and liquidity risk
Cash flow and liquidity risk is the risk that a company's available cash will not be sufficient to meet its financial obligations. The company actively manages its cash flow position including collection of debts and timely payment of creditors. This, coupled with the parent company support is deemed sufficient to minimise the Company's exposure to cash flow and liquidity risk.
Foreign Exchange risk
Foreign exchange risk refers to the potential for loss from exposure to foreign exchange rate fluctuations. Company policies are aimed at minimising this risk. The company does not consider that it is materially exposed to foreign exchange risk.
Future developments
See disclosures within the Strategic Report regarding future developments of the Company.
Omega North East Limited
Directors' Report for the Year Ended 31 March 2023 (continued)
Going concern
The financial statements have been prepared on a going concern basis.
The company meets its day to day working capital requirements through cash generated from operations and external/shareholder borrowings.
The company’s forecasts and projections for the next twelve months show that the company should be able to continue in operational existence for that period, taking into account reasonable possible changes in trading performance.
Based on the factors set out above the directors believe that it remains appropriate to prepare the financial statements on a going concern basis.
Disclosure of information to the auditor
Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.
Reappointment of auditor
In accordance with section 485 of the Companies Act 2006, a resolution for the re-appointment of Azets Audit Services as auditors of the company is to be proposed at the forthcoming Annual General Meeting.
Approved and authorised for issue by the
......................................... |
Omega North East Limited
Statement of Directors' Responsibilities
The directors acknowledge their responsibilities 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 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.
Omega North East Limited
Independent Auditor's Report to the Members of Omega North East Limited
Opinion
We have audited the financial statements of Omega North East Limited (the 'company') for the year ended 31 March 2023, which comprise the Income Statement, Statement of Financial Position, Statement of Changes in Equity, and Notes to the Financial Statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
• | give a true and fair view of the state of the company's affairs as at 31 March 2023 and of its loss 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. |
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our 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.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Other information
The other information comprises the information included in the annual report other than the financial statements and our auditor’s report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Omega North East Limited
Independent Auditor's Report to the Members of Omega North East Limited (continued)
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
• |
the information given in the Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
• |
the Strategic Report and 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 our knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report and the Directors' Report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
• | adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or |
• | the financial statements are not in agreement with the accounting records and returns; or |
• | certain disclosures of directors' remuneration specified by law are not made; or |
• | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities [set out on page 8], 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.
Omega North East Limited
Independent Auditor's Report to the Members of Omega North East Limited (continued)
Auditor Responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
• |
challenging assumptions and judgements made by management in their significant accounting estimates; |
• |
auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias; and |
• |
reviewing financial statement disclosures and testing to support documentation. |
Because of the field in which the client operates, we identified the following areas as those most likely to have a material impact on the financial statements: Health and Safety; employment law (including the Working Time Directive); and compliance with the UK Companies Act.
Owing to the inherent limitations of an audit, there is an unavoidable risk that some material misstatements in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISAs (UK). For instance, the further removed non-compliance is from the events and transactions reflected in the financial statements, the less likely the auditor is to become aware of it or to recognise the non-compliance.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
Omega North East Limited
Independent Auditor's Report to the Members of Omega North East Limited (continued)
Use of our report
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in 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.
......................................
For and on behalf of
Statutory Auditor
Chartered Accountants
Bulman House
Regent Centre
Newcastle upon Tyne
NE3 3LS
Azets Audit Services is a trading name of Azets Audit Services Limited
Omega North East Limited
Income Statement for the Year Ended 31 March 2023
Note |
2023 |
2022 |
|
Turnover |
|
|
|
Cost of sales |
( |
( |
|
Gross profit |
|
|
|
Administrative expenses |
( |
( |
|
Other operating income |
|
|
|
Operating (loss)/profit |
( |
|
|
Interest payable and similar expenses |
( |
( |
|
(Loss)/profit before tax |
( |
|
|
Taxation |
|
|
|
(Loss)/profit for the financial year |
( |
|
The above results were derived from continuing operations.
The company has no recognised gains or losses for the year other than the results above.
Omega North East Limited
(Registration number: 03296387)
Statement of Financial Position as at 31 March 2023
Note |
2023 |
2022 |
|
Fixed assets |
|||
Tangible assets |
|
|
|
Current assets |
|||
Stocks |
|
|
|
Debtors |
|
|
|
Cash at bank and in hand |
|
|
|
|
|
||
Creditors: Amounts falling due within one year |
( |
( |
|
Net current assets |
|
|
|
Total assets less current liabilities |
|
|
|
Creditors: Amounts falling due after more than one year |
( |
( |
|
Provisions for liabilities |
( |
( |
|
Net assets |
|
|
|
Capital and reserves |
|||
Called up share capital |
|
|
|
Profit and loss account |
|
|
|
Total equity |
|
|
Approved and authorised for issue by the
......................................... |
Omega North East Limited
Statement of Changes in Equity for the Year Ended 31 March 2023
Share capital |
Profit and loss account |
Total |
|
At 1 April 2021 |
|
|
|
Profit for the year |
- |
|
|
Total comprehensive income |
- |
|
|
At 31 March 2022 |
|
|
|
Share capital |
Profit and loss account |
Total |
|
At 1 April 2022 |
|
|
|
Loss for the year |
- |
( |
( |
Total comprehensive income |
- |
( |
( |
At 31 March 2023 |
|
|
|
Omega North East Limited
Notes to the Financial Statements for the Year Ended 31 March 2023
General information |
The company is a private company limited by share capital, incorporated in England & Wales.
The address of its registered office is
Accounting policies |
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland and the Companies Act 2006'.
Basis of preparation
These financial statements have been prepared using the historical cost convention.
These financial statements are prepared in sterling which is the functional currency of the entity and rounded to the nearest £.
Summary of disclosure exemptions
The entity satisfies the criteria of being a qualifying entity as defined in FRS 102. As such, advantage has been taken of the following disclosure exemptions available under paragraph 1.12 of FRS 102:
(a) Disclosures in respect of each class of share capital have not been presented.
(b) No cash flow statement has been presented for the company.
(c) Disclosures in respect of financial instruments have not been presented.
(d) No disclosure has been given for the aggregate remuneration of key management personnel.
The company has taken advantage of the exemption available under paragraph 33.1A of FRS 102 and does not disclose related party transactions with members of the same group that are wholly owned.
Name of parent of group
These financial statements are consolidated in the financial statements of Omega Plastics Group Limited.
The financial statements of Omega Plastics Group Limited may be obtained from Kingsway South, Team Valley Trading Estate, Gateshead, Tyne and Wear, NE11 0JL
Omega North East Limited
Notes to the Financial Statements for the Year Ended 31 March 2023 (continued)
2 |
Accounting policies (continued) |
Judgements
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. |
The judgements (apart from those involving estimations) that management has made in the process of applying the entity's accounting policies and that have the most significant effect on the amounts recognised in the financial statements are as follows: |
Assessing nature of lease - The Company has entered into commercial leases and as a lessee it obtains use of property, plant and equipment. The classification as operating or finance lease requires the Company to determine, based on an evaluation of the terms and conditions of the arrangements, whether it acquires the significant risks and rewards of ownership of these assets and accordingly whether the lease requires an asset and liability to be recognised in the balance sheet. |
Key sources of estimation uncertainty
Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the related actual outcome. The key assumptions and other sources of estimation uncertainty that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are as follows:
There are no key accounting estimates.
Revenue recognition
Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of value added tax, returns, rebates and discounts.
The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.
Government grants
Government grants are recognised using the accrual model.
Under the accrual model, government grants relating to revenue are recognised on a systematic basis over the periods in which the company recognises the related costs for which the grant is intended to compensate. Grants that are receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the entity with no future related costs are recognised in income in the period in which it becomes receivable.
The Coronavirus Job Retention Scheme (CJRS) received in prior year results in cash payments from government to compensate employers for part of the wages, associated national insurance contributions (NICs) and employer pension contributions of employees who have been placed on furlough (i.e. placed on a temporary leave of absence from working for the employer). This is a government grant which should be accounted for as such in accordance with FRS 102 Section 24.
Omega North East Limited
Notes to the Financial Statements for the Year Ended 31 March 2023 (continued)
2 |
Accounting policies (continued) |
Tax
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 or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
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 taxable income.
Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements. Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.
Tangible assets
Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
Depreciation
Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:
Asset class |
Depreciation method and rate |
|
Improvements to property |
10% straight line |
|
Plant and machinery |
10% straight line |
|
Fixtures and fittings |
20 - 50% straight line |
|
Motor vehicles |
20% straight line |
|
Office equipment |
25- 33% straight line |
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
Trade debtors
Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.
Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell, after making due allowance for obsolete and slow moving items.
Omega North East Limited
Notes to the Financial Statements for the Year Ended 31 March 2023 (continued)
2 |
Accounting policies (continued) |
Trade creditors
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.
Borrowings
Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the income statement over the period of the relevant borrowing.
Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.
Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.
Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the statement of financial position as a finance lease obligation.
Lease payments are apportioned between finance costs in the income statement and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.
Share capital
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.
Omega North East Limited
Notes to the Financial Statements for the Year Ended 31 March 2023 (continued)
2 |
Accounting policies (continued) |
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
Omega North East Limited
Notes to the Financial Statements for the Year Ended 31 March 2023 (continued)
Turnover |
The analysis of the company's Turnover for the year from continuing operations is as follows:
2023 |
2022 |
|
Sale of goods |
|
|
The analysis of the company's Turnover for the year by market is as follows:
2023 |
2022 |
|
UK |
|
|
Europe |
|
|
Rest of world |
|
|
|
|
Other operating income |
The analysis of the company's other operating income for the year is as follows:
2023 |
2022 |
|
Coronavirus Job Retention Scheme Income |
- |
|
Management charges receivable |
402,201 |
326,579 |
|
|
Operating (loss)/profit |
Arrived at after charging/(crediting)
2023 |
2022 |
|
Depreciation expense |
|
|
Loss on disposal of property, plant and equipment |
|
- |
Interest payable and similar expenses |
2023 |
2022 |
|
Interest on obligations under finance leases and hire purchase contracts |
|
|
Interest expense on other finance liabilities |
|
|
|
|
Omega North East Limited
Notes to the Financial Statements for the Year Ended 31 March 2023 (continued)
Staff costs |
The aggregate payroll costs (including directors' remuneration) were as follows:
2023 |
2022 |
|
Wages and salaries |
|
|
Social security costs |
|
|
Pension costs, defined contribution scheme |
|
|
|
|
The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:
2023 |
2022 |
|
Management |
|
|
Administration and support |
|
|
Operations |
|
|
|
|
Directors' remuneration |
The directors' remuneration for the year was as follows:
2023 |
2022 |
|
Remuneration |
|
|
Contributions paid to money purchase schemes |
|
|
481,339 |
533,829 |
During the year the number of directors who were receiving benefits and share incentives was as follows:
2023 |
2022 |
|
Accruing benefits under money purchase pension scheme |
|
|
In respect of the highest paid director:
2023 |
2022 |
|
Remuneration |
|
|
Omega North East Limited
Notes to the Financial Statements for the Year Ended 31 March 2023 (continued)
Auditor's remuneration |
2023 |
2022 |
|
Audit of the financial statements |
|
|
Taxation |
Tax charged/(credited) in the income statement
2023 |
2022 |
|
Current taxation |
||
UK corporation tax |
|
( |
UK corporation tax adjustment to prior periods |
( |
- |
119,132 |
(180,917) |
|
Deferred taxation |
||
Arising from origination and reversal of timing differences |
( |
|
Arising from changes in tax rates and laws |
( |
- |
Total deferred taxation |
( |
|
Tax receipt in the income statement |
( |
( |
Omega North East Limited
Notes to the Financial Statements for the Year Ended 31 March 2023 (continued)
10 |
Taxation (continued) |
The tax on profit before tax for the year is the same as the standard rate of corporation tax in the UK (2022 - the same as the standard rate of corporation tax in the UK) of
The differences are reconciled below:
2023 |
2022 |
|
(Loss)/profit before tax |
( |
|
Corporation tax at standard rate |
( |
|
Effect of revenues exempt from taxation |
( |
( |
Effect of expense not deductible in determining taxable profit (tax loss) |
|
|
UK deferred tax (credit)/expense relating to changes in tax rates or laws |
( |
|
Increase in UK and foreign current tax from adjustment for prior periods |
|
- |
Tax decrease from effect of adjustment in research and development tax credit |
- |
( |
Total tax credit |
( |
( |
Omega North East Limited
Notes to the Financial Statements for the Year Ended 31 March 2023 (continued)
10 |
Taxation (continued) |
Deferred tax
Deferred tax assets and liabilities
2023 |
Asset |
Liability |
Fixed asset timing differences |
- |
(344,616) |
Short term timing differences- trading |
266,398 |
- |
Short term timing differences- non trading |
- |
- |
Losses |
- |
- |
266,398 |
(344,616) |
2022 |
Asset |
Liability |
Fixed asset timing differences |
- |
(326,291) |
Short term timing differences- trading |
1,739 |
- |
Short term timing differences- non trading |
9,409 |
- |
Losses |
10,182 |
- |
|
( |
In the Spring Budget 2021, the Government announced that from 1 April 2023 the corporation tax rate will increase from 19% to 25%. This new law was deemed substantively enacted on 24 May 2021 and the deferred tax balances at the year end have been calculated based on this rate.
Omega North East Limited
Notes to the Financial Statements for the Year Ended 31 March 2023 (continued)
Tangible assets |
Short leasehold land and buildings |
Fixtures and fittings |
Plant and machinery |
Office equipment |
Motor vehicles |
Total |
|
Cost or valuation |
||||||
At 1 April 2022 |
|
|
|
|
|
|
Additions |
- |
|
|
|
- |
|
Disposals |
- |
- |
( |
- |
- |
( |
At 31 March 2023 |
|
|
|
|
|
|
Depreciation |
||||||
At 1 April 2022 |
|
|
|
|
|
|
Charge for the year |
|
|
|
|
- |
|
Eliminated on disposal |
- |
- |
( |
- |
- |
( |
At 31 March 2023 |
|
|
|
|
|
|
Carrying amount |
||||||
At 31 March 2023 |
|
|
|
|
- |
|
At 31 March 2022 |
|
|
|
|
- |
|
Included within the net book value of land and buildings above is £44,329 (2022 - £53,555) in respect of short leasehold land and buildings.
Assets held under finance leases and hire purchase contracts
The net carrying amount of tangible assets includes the following amounts in respect of assets held under finance leases and hire purchase contracts:
2023 |
2022 |
|
Plant and Machinery |
708,442 |
949,722 |
Stocks |
2023 |
2022 |
|
Stocks |
|
|
Omega North East Limited
Notes to the Financial Statements for the Year Ended 31 March 2023 (continued)
Debtors |
Current |
Note |
2023 |
2022 |
Trade debtors |
|
|
|
Amounts owed by related parties |
|
|
|
Other debtors |
- |
|
|
Prepayments |
|
|
|
Corporation tax asset |
|
|
|
|
|
Creditors |
Note |
2023 |
2022 |
|
Due within one year |
|||
Loans and borrowings |
|
|
|
Trade creditors |
|
|
|
Social security and other taxes |
|
|
|
Directors loan accounts |
113,040 |
113,040 |
|
Other creditors |
|
|
|
Accrued expenses |
|
|
|
|
|
||
Due after one year |
|||
Loans and borrowings |
|
|
Loans and borrowings |
Note |
2023 |
2022 |
|
Current loans and borrowings |
|||
Bank borrowings |
|
|
|
Hire purchase and finance lease liabilities |
|
|
|
Other borrowings |
|
- |
|
|
|
2023 |
2022 |
||
Non-current loans and borrowings |
|||
Bank borrowings |
|
|
|
Hire purchase and finance lease liabilities |
|
|
|
Directors loan accounts |
|
|
|
|
|
Bank borrowings
Omega North East Limited
Notes to the Financial Statements for the Year Ended 31 March 2023 (continued)
15 |
Loans and borrowings (continued) |
The bank borrowings comprise of a CBILs loan which is interest bearing after the initial interest free 12 month period. This is unsecured borrowings.
|
Provisions for liabilities |
Deferred tax |
Total |
|
At 1 April 2022 |
|
|
Increase (decrease) in existing provisions |
( |
( |
At 31 March 2023 |
|
|
|
Pension and other schemes |
Defined contribution pension scheme
The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £
Contributions totalling £
Omega North East Limited
Notes to the Financial Statements for the Year Ended 31 March 2023 (continued)
Share capital |
Allotted, called up and fully paid shares
2023 |
2022 |
|||
No. |
£ |
No. |
£ |
|
|
|
100,000 |
|
100,000 |
Reserves |
Called up share capital
This reserve records the nominal value of the consideration for the shares.
Profit and loss account
This reserve records the retained earnings and accumulated losses.
Obligations under leases and hire purchase contracts |
Operating leases
The total of future minimum lease payments is as follows:
2023 |
2022 |
|
Not later than one year |
|
|
Later than one year and not later than five years |
|
|
Later than five years |
|
|
|
|
The amount of non-cancellable operating lease payments recognised as an expense during the year was £
Related party transactions |
The company undertook related party transactions with wholly owned members of the Omega Plastics Group Limited group during the year and has taken the exemption from disclosure of these transactions available under paragraph 33.1A of FRS 102.
Transactions with directors |
Omega North East Limited
Notes to the Financial Statements for the Year Ended 31 March 2023 (continued)
21 |
Related party transactions (continued) |
2023 |
At 1 April 2022 |
Repayments by director |
At 31 March 2023 |
C S Thompson |
|||
Loan |
|
( |
|
D Crone |
|||
Loan |
|
( |
|
2022 |
At 1 April 2021 |
Repayments by director |
At 31 March 2022 |
C S Thompson |
|||
Loan |
|
( |
|
D Crone |
|||
Loan |
|
( |
|
C R Swinhoe |
|||
Loan |
|
( |
- |
Parent and ultimate parent undertaking |
The company's immediate parent is
These financial statements are available upon request from Unit 431, Kingsway South, Team Valley Trading Estate, Gateshead, NE11 0JL