Registration number:
Allumette Limited
for the Year Ended 31 March 2022
Allumette Limited
Contents
Company Information |
|
Strategic Report |
|
Directors' Report |
|
Statement of Directors' Responsibilities |
|
Independent Auditor's Report |
|
Consolidated Profit and Loss Account |
|
Consolidated Statement of Comprehensive Income |
|
Consolidated Balance Sheet |
|
Balance Sheet |
|
Consolidated Statement of Changes in Equity |
|
Statement of Changes in Equity |
|
Consolidated Statement of Cash Flows |
|
Statement of Cash Flows |
|
Notes to the Financial Statements |
Allumette Limited
Company Information
Directors |
Mr Angus Mackie Mr Adrian Field Mr Wayne Brett Mr John Park-Davies |
Registered office |
|
Auditors |
|
Allumette Limited
Strategic Report for the Year Ended 31 March 2022
The directors present their strategic report for the year ended 31 March 2022.
Principal activity
The principal activity of the group is that of a holding company. The trading companies within the group provide powder coating services and the manufacture of louvres.
Fair review of the business
The business continues to grow in line with plans in terms of turnover and profitability.
The board meets regularly to review monthly performance against plan with the following key measures reported in the management accounts:
Turnover
Gross profit
Productive days
Review of wages and overtime costs
Review of profit and loss account
Review of balance sheet
Top ten customers
Health & safety requirements
Principal risks and uncertainties
The group's principal financial instruments comprise bank balances, bank loans and overdrafts, finance in the form of hire purchase contracts and trade creditors. The main purpose of these instruments is to finance the business' operations.
Trade debtors are managed in respect of credit and cash flow risk by policies concerning the credit offered to customers and the regular monitoring of amounts outstanding for both time and credit limits.
The directors do not consider the financial risk exposure of the company to be material in assessing the financial position of the company and the directors objectives are to minimise financial risk wherever possible.
Approved and authorised by the
......................................... |
Allumette Limited
Directors' Report for the Year Ended 31 March 2022
The directors present their report and the for the year ended 31 March 2022.
Director of the group
The directors who held office during the year were as follows:
Financial instruments
Objectives and policies
The directors do not consider the financial risk exposure of the company to be material in assessing the financial position of the company and the directors objectives are to minimise financial risk wherever possible.
Price risk, credit risk, liquidity risk and cash flow risk
The group's principal financial instruments comprise bank balances, bank loans and overdrafts, finance in the form of hire purchase contracts and trade creditors. The main purpose of these instruments is to finance the business' operations.
Trade debtors are managed in respect of credit and cash flow risk by policies concerning the credit offered to customers and the regular monitoring of amounts outstanding for both time and credit limits.
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 auditor is aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditor is unaware.
Approved and authorised by the
......................................... |
Allumette 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; |
• |
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and |
• |
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.
Allumette Limited
Independent Auditor's Report to the Members of Allumette Limited
Opinion
We have audited the financial statements of Allumette Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2022, which comprise the Consolidated Profit and Loss Account, Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Balance Sheet, Consolidated Statement of Changes in Equity, Statement of Changes in Equity, Consolidated Statement of Cash Flows, Statement of Cash Flows, 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 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 2022 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. |
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 group 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 group's or the parent company's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were 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 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.
Opinion on other matter 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.
Allumette Limited
Independent Auditor's Report to the Members of Allumette Limited
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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
• |
the parent company 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 4], 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 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.
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
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:
We gained an understanding of the legal and regulatory framework applicable to the group and the industry in which it operates, and considered the risk of acts by the group that were contrary to applicable laws and regulations, including fraud. We designed audit procedures to respond to the risk, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
We focussed on laws and regulations which could give risk to material misstatement in the financial statements, including, but not limited to, the Companies Act 2006 and UK tax legislation. Our test included agreeing the financial statements disclosures to underlying supporting documentation, enquiries with management and enquiries of legal counsel where considered necessary. There are inherent limitations in the audit procedures described above and, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. We did not identify any key audit matters relating to irregularities, including fraud. As in all our audits, we also addressed the risk of management override of internal controls, including testing of journals and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud.
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.
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.
Allumette Limited
Independent Auditor's Report to the Members of Allumette Limited
......................................
For and on behalf of
29 Wood Street
Warwickshire
CV37 6JG
Allumette Limited
Consolidated Profit and Loss Account for the Year Ended 31 March 2022
Note |
2022 |
2021 |
|
Turnover |
|
|
|
Cost of sales |
( |
( |
|
Gross profit |
|
|
|
Distribution costs |
( |
( |
|
Administrative expenses |
( |
( |
|
Other operating income |
- |
|
|
Operating profit |
|
|
|
Interest payable and similar expenses |
( |
( |
|
(539,487) |
(773,927) |
||
Profit/(loss) before tax |
|
( |
|
Taxation |
( |
( |
|
Profit/(loss) for the financial year |
|
( |
|
Profit/(loss) attributable to: |
|||
Owners of the company |
|
( |
EBITDA represents earnings before interest, tax, depreciation and amortisation.
EBITDA |
1,718,119 |
1,041,526 |
Allumette Limited
Consolidated Statement of Comprehensive Income for the Year Ended 31 March 2022
2022 |
2021 |
|
Profit/(loss) for the year |
|
( |
Surplus on property, plant and equipment revaluation |
|
|
Deficit on revaluation of other assets |
( |
( |
- |
- |
|
Total comprehensive income for the year |
|
( |
Total comprehensive income attributable to: |
||
Owners of the company |
|
( |
Allumette Limited
(Registration number: 10509712)
Consolidated Balance Sheet as at 31 March 2022
Note |
2022 |
2021 |
|
Fixed assets |
|||
Intangible assets |
|
|
|
Tangible assets |
|
|
|
|
|
||
Current assets |
|||
Stocks |
|
|
|
Debtors |
|
|
|
Cash at bank and in hand |
|
|
|
|
|
||
Creditors: Amounts falling due within one year |
( |
( |
|
Net current assets/(liabilities) |
|
( |
|
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 |
2,837,884 |
2,837,884 |
|
Revaluation reserve |
289,785 |
302,718 |
|
Profit and loss account |
(982,353) |
(1,248,233) |
|
Equity attributable to owners of the company |
2,145,316 |
1,892,369 |
|
Shareholders' funds |
2,145,316 |
1,892,369 |
Approved and authorised by the
......................................... |
Allumette Limited
(Registration number: 10509712)
Balance Sheet as at 31 March 2022
Note |
2022 |
2021 |
|
Fixed assets |
|||
Investments |
|
|
|
Current assets |
|||
Debtors |
|
|
|
Cash at bank and in hand |
|
|
|
|
|
||
Creditors: Amounts falling due within one year |
( |
( |
|
Net current liabilities |
( |
( |
|
Total assets less current liabilities |
|
|
|
Creditors: Amounts falling due after more than one year |
( |
( |
|
Net assets |
|
|
|
Capital and reserves |
|||
Called up share capital |
2,837,884 |
2,837,884 |
|
Profit and loss account |
1,193,470 |
973,997 |
|
Shareholders' funds |
4,031,354 |
3,811,881 |
The company made a profit after tax for the financial year of £219,473 (2021 - profit of £49,390).
Approved and authorised by the
......................................... |
Allumette Limited
Consolidated Statement of Changes in Equity for the Year Ended 31 March 2022
Equity attributable to the parent company
Share capital |
Revaluation reserve |
Profit and loss account |
Total |
Total equity |
|
At 1 April 2021 |
|
|
( |
|
|
Profit for the year |
- |
- |
|
|
|
Other comprehensive income |
- |
( |
|
- |
- |
Total comprehensive income |
- |
( |
|
|
|
At 31 March 2022 |
|
|
( |
|
|
Share capital |
Revaluation reserve |
Profit and loss account |
Total |
Total equity |
|
At 1 April 2020 |
|
|
( |
|
|
Loss for the year |
- |
- |
( |
( |
( |
Other comprehensive income |
- |
( |
|
- |
- |
Total comprehensive income |
- |
( |
( |
( |
( |
Other share capital movements |
2,217,884 |
- |
- |
2,217,884 |
2,217,884 |
At 31 March 2021 |
|
|
( |
|
|
Allumette Limited
Statement of Changes in Equity for the Year Ended 31 March 2022
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 2020 |
|
|
|
Profit for the year |
- |
|
|
Total comprehensive income |
- |
|
|
Other share capital movements |
2,217,884 |
- |
2,217,884 |
At 31 March 2021 |
|
|
|
Allumette Limited
Consolidated Statement of Cash Flows for the Year Ended 31 March 2022
Note |
2022 |
2021 |
|
Cash flows from operating activities |
|||
Profit/(loss) for the year |
|
( |
|
Adjustments to cash flows from non-cash items |
|||
Depreciation and amortisation |
|
|
|
Profit on disposal of tangible assets |
( |
( |
|
Finance costs |
|
|
|
Income tax expense |
|
|
|
|
|
||
Working capital adjustments |
|||
Increase in stocks |
( |
( |
|
(Increase)/decrease in trade debtors |
( |
|
|
Increase in trade creditors |
|
|
|
Cash generated from operations |
|
|
|
Income taxes paid |
- |
( |
|
Net cash flow from operating activities |
|
|
|
Cash flows from investing activities |
|||
Acquisitions of tangible assets |
( |
( |
|
Proceeds from sale of tangible assets |
|
|
|
Net cash flows from investing activities |
( |
( |
|
Cash flows from financing activities |
|||
Interest paid |
( |
( |
|
Repayment of bank borrowing |
( |
( |
|
Repayment of other borrowing |
- |
( |
|
Payments to finance lease creditors |
( |
( |
|
Net cash flows from financing activities |
( |
( |
|
Net increase in cash and cash equivalents |
|
|
|
Cash and cash equivalents at 1 April |
|
|
|
Cash and cash equivalents at 31 March |
1,401,625 |
1,310,936 |
Allumette Limited
Statement of Cash Flows for the Year Ended 31 March 2022
Note |
2022 |
2021 |
|
Cash flows from operating activities |
|||
Profit for the year |
|
|
|
Adjustments to cash flows from non-cash items |
|||
Finance income |
( |
( |
|
Finance costs |
|
|
|
|
|
||
Working capital adjustments |
|||
Decrease/(increase) in trade debtors |
|
( |
|
(Decrease)/increase in trade creditors |
( |
|
|
Net cash flow from operating activities |
|
|
|
Cash flows from investing activities |
|||
Dividend income from financial assets |
|
|
|
Cash flows from financing activities |
|||
Interest paid |
( |
( |
|
Repayment of bank borrowing |
( |
( |
|
Repayment of other borrowing |
- |
( |
|
Net cash flows from financing activities |
( |
( |
|
Net (decrease)/increase in cash and cash equivalents |
( |
|
|
Cash and cash equivalents at 1 April |
|
|
|
Cash and cash equivalents at 31 March |
164,427 |
261,386 |
Allumette Limited
Notes to the Financial Statements for the Year Ended 31 March 2022
General information |
The company is a private company limited by share capital, incorporated in England & Wales.
The address of its registered office is:
These financial statements were authorised for issue by the
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 UK and Republic of Ireland'.
Basis of preparation
These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.
Basis of consolidation
The consolidated financial statements consolidate the financial statements of the company and its subsidiary undertakings drawn up to 31 March 2022.
A subsidiary is an entity controlled by the company. Control is achieved where the company has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.
The results of subsidiaries acquired or disposed of during the year are included in the Profit and Loss Account from the effective date of acquisition or up to the effective date of disposal, as appropriate. Where necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by the group.
The purchase method of accounting is used to account for business combinations that result in the acquisition of subsidiaries by the group. The cost of a business combination is measured as the fair value of the assets given, equity instruments issued and liabilities incurred or assumed at the date of exchange, plus costs directly attributable to the business combination. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. Any excess of the cost of the business combination over the acquirer’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities recognised is recorded as goodwill.
Inter-company transactions, balances and unrealised gains on transactions between the company and its subsidiaries, which are related parties, are eliminated in full.
Intra-group losses are also eliminated but may indicate an impairment that requires recognition in the consolidated financial statements.
Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the group. Non-controlling interests in the net assets of consolidated subsidiaries are identified separately from the group’s equity therein. Non-controlling interests consist of the amount of those interests at the date of the original business combination and the non-controlling shareholder’s share of changes in equity since the date of the combination.
Allumette Limited
Notes to the Financial Statements for the Year Ended 31 March 2022
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 group’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts and after eliminating sales within the company.
The group 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 group's activities.
Government grants
Income based government grants are recognised in the period to which they relate.
Foreign currency transactions and balances
Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.
Tax
The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change 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 group operates and generates taxable income.
Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the consolidated 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 balance sheet 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 |
Leasehold property |
Over the length of the lease |
Plant and machinery |
20% straight line |
Motor vehicles |
25% straight line |
Business combinations
Business combinations are accounted for using the purchase method. The consideration for each acquisition is measured at the aggregate of the fair values at acquisition date of assets given, liabilities incurred or assumed, and equity instruments issued by the group in exchange for control of the acquired, plus any costs directly attributable to the business combination. When a business combination agreement provides for an adjustment to the cost of the combination contingent on future events, the group includes the estimated amount of that adjustment in the cost of the combination at the acquisition date if the adjustment is probable and can be measured reliably.
Allumette Limited
Notes to the Financial Statements for the Year Ended 31 March 2022
Goodwill
Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the group’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each reporting period date. Goodwill is amortised over its useful life, which shall not exceed ten years if a reliable estimate of the useful life cannot be made.
Amortisation
Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:
Asset class |
Amortisation method and rate |
Goodwill on consolidation |
10 years straight line |
Investments
Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.
Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable.
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.
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 group will not be able to collect all amounts due according to the original terms of the receivables.
Inventories
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.
The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.
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 group 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.
Allumette Limited
Notes to the Financial Statements for the Year Ended 31 March 2022
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 Profit and Loss Account 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 group has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
Leases
Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.
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 Balance Sheet as a finance lease obligation.
Lease payments are apportioned between finance costs in the Profit and Loss Account 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.
Dividends
Dividend distribution to the group’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the group 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.
Allumette Limited
Notes to the Financial Statements for the Year Ended 31 March 2022
Revenue |
The analysis of the group's revenue for the year from continuing operations is as follows:
2022 |
2021 |
|
Sale of goods |
|
|
Other operating income |
The analysis of the group's other operating income for the year is as follows:
2022 |
2021 |
|
Government grants - CJRS monies received |
- |
|
Other gains and losses |
The analysis of the group's other gains and losses for the year is as follows:
2022 |
2021 |
|
Gain on disposal of property, plant and equipment |
|
|
Operating profit |
Arrived at after charging/(crediting)
2022 |
2021 |
|
Depreciation expense |
|
|
Amortisation expense |
|
|
Research and development cost |
- |
|
Operating lease expense - plant and machinery |
|
|
Profit on disposal of property, plant and equipment |
( |
( |
Interest payable and similar expenses |
2022 |
2021 |
|
Interest on bank overdrafts and borrowings |
|
|
Interest on obligations under finance leases and hire purchase contracts |
|
|
Interest expense on other finance liabilities |
|
|
Foreign exchange gains |
|
|
|
|
Allumette Limited
Notes to the Financial Statements for the Year Ended 31 March 2022
Staff costs |
The aggregate payroll costs (including directors' remuneration) were as follows:
2022 |
2021 |
|
Wages and salaries |
|
|
Social security costs |
|
|
Other short-term employee benefits |
|
|
Pension costs, defined contribution scheme |
|
|
Other post-employment benefit costs |
( |
- |
|
|
The average number of persons employed by the group (including directors) during the year, analysed by category was as follows:
2022 |
2021 |
|
Production |
|
|
Administration and support |
|
|
Other departments |
|
|
|
|
Directors' remuneration |
The directors' remuneration for the year was as follows:
2022 |
2021 |
|
Remuneration |
|
|
Contributions paid to money purchase schemes |
|
|
407,536 |
292,730 |
During the year the number of directors who were receiving benefits and share incentives was as follows:
2022 |
2021 |
|
Accruing benefits under defined benefit pension scheme |
|
|
Allumette Limited
Notes to the Financial Statements for the Year Ended 31 March 2022
Auditors' remuneration |
2022 |
2021 |
|
Audit of these financial statements |
1,000 |
1,000 |
Audit of the financial statements of subsidiaries of the company pursuant to legislation |
9,000 |
9,000 |
|
|
Taxation |
Tax charged/(credited) in the income statement
2022 |
2021 |
|
Current taxation |
||
UK corporation tax |
|
- |
Deferred taxation |
||
Arising from origination and reversal of timing differences |
|
|
Tax expense in the income statement |
|
|
The tax on profit before tax for the year is the same as the standard rate of corporation tax in the UK (2021 - the same as the standard rate of corporation tax in the UK) of
The differences are reconciled below:
2022 |
2021 |
|
Profit/(loss) before tax |
|
( |
Corporation tax at standard rate |
|
( |
Effect of expense not deductible in determining taxable profit (tax loss) |
|
|
Effect of tax losses |
- |
|
Tax decrease from effect of capital allowances and depreciation |
( |
- |
Other tax effects for reconciliation between accounting profit and tax expense (income) |
|
|
Total tax charge |
|
|
Allumette Limited
Notes to the Financial Statements for the Year Ended 31 March 2022
Deferred tax
Group
Deferred tax assets and liabilities
2022 |
Asset |
Liability |
Accelerated tax depreciation |
- |
|
Tax losses carry forward |
|
- |
Revaluation of property |
- |
|
|
|
2021 |
Asset |
Liability |
Accelerated tax depreciation |
- |
|
Tax losses carry forward |
|
- |
Revaluation of property |
- |
|
|
|
Intangible assets |
Group
Goodwill |
Total |
|
Cost or valuation |
||
At 1 April 2021 |
|
|
At 31 March 2022 |
|
|
Amortisation |
||
At 1 April 2021 |
|
|
Amortisation charge |
|
|
At 31 March 2022 |
|
|
Carrying amount |
||
At 31 March 2022 |
|
|
At 31 March 2021 |
|
|
Allumette Limited
Notes to the Financial Statements for the Year Ended 31 March 2022
Tangible assets |
Group
Long leasehold land and buildings |
Fixtures and fittings |
Plant and machinery |
Office equipment |
Total |
|
Cost or valuation |
|||||
At 1 April 2021 |
|
|
|
|
|
Additions |
|
- |
|
- |
|
At 31 March 2022 |
|
|
|
|
|
Depreciation |
|||||
At 1 April 2021 |
|
|
|
|
|
Charge for the year |
|
|
|
|
|
At 31 March 2022 |
|
|
|
|
|
Carrying amount |
|||||
At 31 March 2022 |
|
|
|
|
|
At 31 March 2021 |
|
|
|
|
|
Included within the net book value of land and buildings above is £3,106,174 (2021 - £3,139,575) in respect of long leasehold land and buildings.
Revaluation
The fair value of the group's long leasehold land and buildings was revalued on
Had this class of asset been measured on a historical cost basis, the carrying amount would have been £
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:
2022 |
2021 |
|
Plant and machinery |
865,608 |
433,377 |
Allumette Limited
Notes to the Financial Statements for the Year Ended 31 March 2022
Contractual commitments for the acquisition of property, plant and equipment
Contractual commitments for the acquisition of tangible assets were as follows:
2022 |
2021 |
|
Plant and machinery |
- |
|
Investments |
Group
Details of undertakings
Details of the investments (including principal place of business of unincorporated entities) in which the group holds 20% or more of the nominal value of any class of share capital are as follows:
Undertaking |
Registered office |
Holding |
Proportion of voting rights and shares held |
|
2022 |
2021 |
Subsidiary undertakings |
||||
|
Yardley Brook Industrial Park, Lea Ford Road, Shard End, Birmingham B33 9TX |
Ordinary £1 shares |
|
|
England & Wales |
||||
|
Yardley Brook Industrial Park, Lea Ford Road, Shard End, Birmingham B33 9TX |
Ordinary £1 shares |
|
|
England & Wales |
||||
|
Yardley Brook Industrial Park, Lead Ford Road, Shard End, Birmingham B33 9TX |
Ordinary £1 shares |
|
|
England & Wales |
||||
|
Yardley Brook Industrial Park, Lea Ford Road, Shard End, Birmingham B33 9TX |
Ordinary £1 shares |
|
|
England & Wales |
* indicates direct investment of the company
Subsidiary undertakings
Motion Finance Limited The principal activity of Motion Finance Limited is |
Vertik-al Limited The principal activity of Vertik-al Limited is |
Ikon Aluminium Solutions (Holdings) Limited The principal activity of Ikon Aluminium Solutions (Holdings) Limited is |
Ikon Aluminium Systems Limited The principal activity of Ikon Aluminium Systems Limited is |
Company
Allumette Limited
Notes to the Financial Statements for the Year Ended 31 March 2022
2022 |
2021 |
|
Investments in subsidiaries |
|
|
Subsidiaries |
£ |
Cost or valuation |
|
At 1 April 2021 |
|
Provision |
|
Carrying amount |
|
At 31 March 2022 |
|
At 31 March 2021 |
|
Stocks |
Group |
Company |
|||
2022 |
2021 |
2022 |
2021 |
|
Raw materials and consumables |
|
|
- |
- |
Other inventories |
|
|
- |
- |
|
|
- |
- |
Allumette Limited
Notes to the Financial Statements for the Year Ended 31 March 2022
Debtors |
Group |
Company |
||||
Note |
2022 |
2021 |
2022 |
2021 |
|
Trade debtors |
|
|
- |
- |
|
Amounts owed by related parties |
- |
- |
- |
|
|
Other debtors |
|
|
- |
- |
|
Prepayments |
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
Group |
Company |
|||
2022 |
2021 |
2022 |
2021 |
|
Cash on hand |
|
|
- |
- |
Cash at bank |
|
|
|
|
|
|
|
|
Creditors |
Group |
Company |
||||
Note |
2022 |
2021 |
2022 |
2021 |
|
Due within one year |
|||||
Loans and borrowings |
|
|
|
|
|
Trade creditors |
|
|
|
- |
|
Amounts due to related parties |
- |
- |
- |
|
|
Social security and other taxes |
|
|
|
|
|
Other payables |
|
|
|
|
|
Accruals |
|
|
|
|
|
Income tax liability |
91,943 |
- |
- |
- |
|
|
|
|
|
||
Due after one year |
|||||
Loans and borrowings |
|
|
|
|
Allumette Limited
Notes to the Financial Statements for the Year Ended 31 March 2022
Deferred tax and other provisions |
Group
Deferred tax |
Total |
|
At 1 April 2021 |
|
|
Increase (decrease) in existing provisions |
|
|
At 31 March 2022 |
|
|
|
Allumette Limited
Notes to the Financial Statements for the Year Ended 31 March 2022
Pension and other schemes |
Defined contribution pension scheme
The group operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the group to the scheme and amounted to
£
Share capital |
Allotted, called up and fully paid shares
2022 |
2021 |
|||
No. |
£ |
No. |
£ |
|
|
|
620,000 |
|
620,000 |
|
|
2,217,884 |
|
2,217,884 |
|
|
|
|
Loans and borrowings |
Group |
Company |
|||
2022 |
2021 |
2022 |
2021 |
|
Non-current loans and borrowings |
||||
Hire purchase contracts |
|
|
- |
- |
Other borrowings |
|
|
|
|
|
|
|
|
Group |
Company |
|||
2022 |
2021 |
2022 |
2021 |
|
Current loans and borrowings |
||||
Bank borrowings |
|
|
|
|
Hire purchase contracts |
|
|
- |
- |
|
|
|
|
Company
Bank borrowings
Allumette Limited
Notes to the Financial Statements for the Year Ended 31 March 2022
|
The bank loans are secured by a fixed and floating charge over the assets of the company and its subsidiaries
|
Other borrowings
MGL loan is denominated in Sterling with a nominal interest rate of 10%, and the final instalment is due on 1 April 2023. The carrying amount at year end is £2,494,379 (2021 - £2,257,962).
NPCCL loan is denominated in Sterling with a nominal interest rate of 10%, and the final instalment is due on 1 April 2023. The carrying amount at year end is £2,494,379 (2021 - £2,257,962).
Related party transactions |
Company
Summary of transactions with all subsidiaries
During the period the company received management charges of £600,000 (2021: £600,000) and a dividend of £87,500 (2021: £350,000) from Motion Finance Limited. At the balance sheet date the company owed £Nil (2021: £171,144) to Motion Finance Limited.
During the period the company received management charges of £120,000 (2021: £120,000) and a dividend of £437,500 (2021: £175,000) from Ikon Aluminium Solutions (Holdings) Limited. At the balance sheet date the company was owed £Nil (2021: £175,000) from Ikon Aluminium Solutions (Holdings) Limited.