Inpress Plastics Ltd
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Notes to the Accounts |
for the year ended 31 December 2020
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1 |
Accounting policies |
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Basis of preparation |
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The accounts have been prepared under the historical cost convention and in accordance with FRS 102 Section 1a small entities, the financial reporting standard applicable in the UK and the Republic of Ireland.
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Turnover |
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Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods. Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have transferred to the buyer.
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Intangible fixed assets |
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Intangible fixed assets are measured at cost less accumulative amortisation and any accumulative impairment losses.
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Tangible fixed assets |
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Tangible fixed assets are measured at cost less accumulative depreciation and any accumulative impairment losses. Depreciation is provided on all tangible fixed assets, other than freehold land, at rates calculated to write off the cost, less estimated residual value, of each asset evenly over its expected useful life, as follows:
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Freehold buildings |
2% straight line on building |
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Freehold land |
No depreciation on land which is revalued to fair value |
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Leasehold improvements |
7 year life of lease |
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Plant and machinery |
14 years straight line |
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Motor vehicles |
25% reducing balance or over the life of finance lease, as appropriate |
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Inventories |
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Inventories are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first in first out method. The carrying amount of stock sold is recognised as an expense in the period in which the related revenue is recognised.
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Debtors |
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Short term debtors are measured at transaction price, less any impairment losses for bad and doubtful debts. Loans and other financial assets are initially recognised at transaction price including any transaction costs and subsequently measured at amortised cost determined using the effective interest method, less any impairment losses for bad and doubtful debts.
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Creditors |
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Short term creditors are measured at transaction price. Loans and other financial liabilities are initially recognised at transaction price net of any transaction costs and subsequently measured at amortised cost determined using the effective interest method.
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Taxation |
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A current tax liability is recognised for the tax payable on the taxable profit of the current and past periods. A current tax asset is recognised in respect of a tax loss that can be carried back to recover tax paid in a previous period. Deferred tax is recognised in respect of all timing differences between the recognition of income and expenses in the financial statements and their inclusion in tax assessments. Unrelieved tax losses and other deferred tax assets are recognised only to the extent that 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, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used. Current and deferred tax assets and liabilities are not discounted.
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Foreign currency translation |
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Transactions in foreign currencies are initially recognised at the rate of exchange ruling at the date of the transaction. At the end of each reporting period foreign currency monetary items are translated at the closing rate of exchange. Non-monetary items that are measured at historical cost are translated at the rate ruling at the date of the transaction. All differences are charged to profit or loss.
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Leased assets |
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A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership. All other leases are classified as operating leases. The rights of use and obligations under finance leases are initially recognised as assets and liabilities at amounts equal to the fair value of the leased assets or, if lower, the present value of the minimum lease payments. Minimum lease payments are apportioned between the finance charge and the reduction in the outstanding liability using the effective interest rate method. The finance charge is allocated to each period during the lease so as to produce a constant periodic rate of interest on the remaining balance of the liability. Leased assets are depreciated in accordance with the company's policy for tangible fixed assets. If there is no reasonable certainty that ownership will be obtained at the end of the lease term, the asset is depreciated over the lower of the lease term and its useful life. Operating lease payments are recognised as an expense on a straight line basis over the lease term.
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Pensions |
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The company operates a defined contribution pension scheme. Contributions are charged to the profit and loss account as they become payable in accordance with the rules of the scheme.
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2 |
Employees |
2020 |
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2019 |
Number |
Number |
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Average number of persons employed by the company |
58 |
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45 |
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3 |
Government grants |
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The company has received government grants under the coronavirus job retention scheme. These grants are shown in the profit and loss for the period in which the related salary expenditure was incurred. |
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2020 |
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2019 |
£ |
£ |
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Grants receivable |
20,774 |
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- |
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4 |
Intangible fixed assets |
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Goodwill |
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Research & development |
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Total |
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Cost |
£ |
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£ |
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£ |
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At 1 January 2020 |
251,160 |
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426,977 |
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678,137 |
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Additions |
5 |
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- |
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5 |
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At 31 December 2020 |
251,165 |
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426,977 |
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678,142 |
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Amortisation |
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At 1 January 2020 |
137,599 |
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299,817 |
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437,416 |
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Provided during the year |
50,233 |
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52,991 |
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103,224 |
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At 31 December 2020 |
187,832 |
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352,808 |
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540,640 |
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Net book value |
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At 31 December 2020 |
63,333 |
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74,169 |
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137,502 |
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At 31 December 2019 |
113,561 |
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127,160 |
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240,721 |
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Research and development is being written off in equal annual instalments over the estimated economic life of 5 years, from the year after it has been incurred. |
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Goodwill is being written off in equal annual instalments over the estimated economic life of 5 years. |
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5 |
Tangible fixed assets |
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Land and buildings /Leasehold improvements |
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Plant and machinery etc |
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Motor vehicles |
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Total |
£ |
£ |
£ |
£ |
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Cost |
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At 1 January 2020 |
1,574,434 |
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677,766 |
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110,962 |
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2,363,162 |
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Additions |
100,189 |
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672,223 |
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- |
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772,412 |
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At 31 December 2020 |
1,674,623 |
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1,349,989 |
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110,962 |
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3,135,574 |
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Depreciation |
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At 1 January 2020 |
20,169 |
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233,005 |
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60,525 |
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313,699 |
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Charge for the year |
30,780 |
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96,428 |
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(1,273) |
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125,935 |
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At 31 December 2020 |
50,949 |
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329,433 |
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59,252 |
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439,634 |
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Net book value |
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At 31 December 2020 |
1,623,674 |
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1,020,556 |
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51,710 |
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2,695,940 |
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At 31 December 2019 |
1,554,265 |
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444,761 |
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50,437 |
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2,049,463 |
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Freehold land and buildings: |
2020 |
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2019 |
£ |
£ |
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Historical cost |
532,706 |
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532,706 |
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Cumulative depreciation based on historical cost |
(11,106) |
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(7,404) |
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521,600 |
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525,302 |
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Within Motor Vehicles is an asset with a net book value of £42,960 (2019: £55,661) held under a finance lease. |
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The Land was revalued in the year end 31 December 2015 by £140,859 and also in the year end 31 December 2017 by £200,873. A valuation report was also prepared in the year end 31 December 2019 by Richard Bull, RCIS Registered Valuer giving the most recent valuation of £1,300,000. |
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6 |
Debtors |
2020 |
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2019 |
£ |
£ |
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Trade debtors |
842,219 |
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372,568 |
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Prepayments |
6,913 |
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6,804 |
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Amounts owed by group undertakings |
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28,912 |
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- |
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Other debtors |
30,071 |
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25,013 |
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908,115 |
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404,385 |
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7 |
Creditors: amounts falling due within one year |
2020 |
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2019 |
£ |
£ |
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Bank loans and overdrafts |
201,568 |
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49,350 |
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Obligations under finance lease and hire purchase contracts |
47,777 |
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16,723 |
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Trade creditors |
688,714 |
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191,526 |
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Accruals |
135,054 |
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92,489 |
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Amounts owed to group undertakings |
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- |
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59,477 |
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Corporation tax |
- |
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35,003 |
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Other taxes and social security costs |
62,541 |
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88,123 |
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Factoring loans |
740,808 |
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323,953 |
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Mortgages |
20,953 |
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30,578 |
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Other creditors |
51,342 |
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5,480 |
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1,948,757 |
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892,702 |
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8 |
Creditors: amounts falling due after one year |
2020 |
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2019 |
£ |
£ |
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Bank loans |
312,958 |
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117,745 |
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Coronavirus Business Interruption Loan |
350,000 |
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- |
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Obligations under finance lease and hire purchase contracts |
145,536 |
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45,202 |
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Mortgages |
332,356 |
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344,061 |
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1,140,850 |
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507,008 |
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9 |
Loans |
2020 |
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2019 |
£ |
£ |
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Creditors include: |
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Mortgages, bank and Factoring loans |
1,608,643 |
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865,687 |
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The balances due under Mortgages are secured on all the property and assets of the company and the balances due under Factoring loans are secured over the invoices booked by the company represented by the Trade debtors balance under note 6.
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10 |
Revaluation reserve |
2020 |
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2019 |
£ |
£ |
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At 1 January 2020 |
1,120,527 |
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679,343 |
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Gain on revaluation of land and buildings |
- |
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610,644 |
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Deferred taxation arising on the revaluation of land and buildings |
15,255 |
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(129,167) |
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Transfer of excess depreciation from revaluation reserve |
(40,293) |
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(40,293) |
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At 31 December 2020 |
1,095,489 |
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1,120,527 |
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11 |
Other financial commitments |
2020 |
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2019 |
£ |
£ |
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Total future minimum payments under non-cancellable operating leases |
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305,869 |
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328,333 |
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2020 |
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2019 |
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Total future minimum payments under non-cancellable finance leases |
£ |
£ |
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- not later than one year |
11,203 |
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11,203 |
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- later than one year and not later than five years |
24,410 |
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35,613 |
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At the end of the minimum lease term the company has the option to purchase the motor vehicle by making a final payment of £33,777. A mileage restriction of 81,667 miles is in place under the finance lease. |
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12 |
Controlling party |
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The parent company is Inpress Holding Ltd with registered office: 1 Harwood Industrial Estate, Harwood Road, Littlehampton, West Sussex, BN17 7AU.
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13 |
Other information |
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Inpress Plastics Ltd is a private company limited by shares and incorporated in England. Its registered office is: |
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1 Harwood Industrial Estate |
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Harwood Road |
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Littlehampton |
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West Sussex |
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BN17 7AU |