Company registration number 01145445 (England and Wales)
PERFORMANCE MASTERBATCHES LIMITED
FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2021
PAGES FOR FILING WITH REGISTRAR
PERFORMANCE MASTERBATCHES LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 9
PERFORMANCE MASTERBATCHES LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2021
31 December 2021
- 1 -
2021
2021
Notes
£
£
£
£
Fixed assets
Tangible assets
4
824,701
881,055
Current assets
Stocks
1,176,003
814,706
Debtors
5
1,082,292
1,283,257
Cash at bank and in hand
1,116,282
1,057,092
3,374,577
3,155,055
Creditors: amounts falling due within one year
6
(1,305,807)
(1,267,200)
Net current assets
2,068,770
1,887,855
Total assets less current liabilities
2,893,471
2,768,910
Creditors: amounts falling due after more than one year
7
(197,014)
(222,509)
Provisions for liabilities
(87,690)
(73,842)
Net assets
2,608,767
2,472,559
Capital and reserves
Called up share capital
11
29,514
29,514
Share premium account
5,264
5,264
Capital redemption reserve
750
750
Profit and loss reserves
2,573,239
2,437,031
Total equity
2,608,767
2,472,559
The director of the company has elected not to include a copy of the profit and loss account within the financial statements.
true
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved and signed by the director and authorised for issue on 2 December 2022
Mr L Watts
Director
Company Registration No. 01145445
PERFORMANCE MASTERBATCHES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2021
- 2 -
1
Accounting policies
Company information
Performance Masterbatches Limited is a
private
company
limited by shares
incorporated in
England and Wales
.
The registered office is
Blaenant Industrial Estate, Brynmawr, Blaenau Gwent, United Kingdom, NP23 4BX.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in
sterling
, which is the functional currency of the company.
Monetary a
mounts
in these financial statements are
rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. Freehold properties are recorded at deemed cost on transition to FRS 102. The principal accounting policies adopted are set out below.
1.2
Going concern
Uncertainty due to the recent Covid-19 outbreak has been considered as part of the company's adoption of the going concern basis. At this stage, the impact on the company's business and results have been limited.
true
The director has reviewed the company's cashflow projections for the foreseeable future (being at least 12 months from the date of approval of these financial statements), and is satisfied that the company will be able to operate as a going concern for at least 12 months from the approval sate of the financial statements, therefore the director believes that it remains appropriate to prepare the financial statements on a going concern basis.
1.3
Reporting period
On 4th January 2022, Colloids Limited acquired 100% of the share capital of Performance Masterbatches Limited. Performance Masterbatches Limited shortened their current period to align its period end with the new ultimate parent company, Colloids Limited. The current period is a 9 month period and as such the prior year and current period amounts presented in the financial statements, including the related notes, are not entirely comparable.
1.4
Turnover
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer
(usually on dispatch of the goods)
, the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
1.5
Tangible fixed assets
Tangible fixed assets
are initially measured at cost
or deemed cost on transition
and subsequently measured at cost
or deemed cost on transition
, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Freehold property
2% on cost
Plant and machinery
10% on cost and 25% on cost
Fixtures and fittings
10% on cost and 25% on cost
Motor vehicles
25% on cost
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and
is credited or charged to profit or loss
.
PERFORMANCE MASTERBATCHES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2021
1
Accounting policies
(Continued)
- 3 -
1.6
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.7
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset
, with
the net amounts presented in the financial statements
,
when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account in other administrative expenses
.
1.8
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the
profit and loss account
because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The
company’s
liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Current tax, including UK corporation tax and foreign tax, is provided at amounts expected to be paid (or recovered) using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date where transactions or events that result in an obligation to pay more tax in the future or a right to pay less tax in the future have occurred at the balance sheet date. Timing differences are differences between the company's taxable profits and its results as stated in the financial statements that arise from the inclusion of gains and losses in tax assessments in periods different from those in which they are recognised in the financial statements.
PERFORMANCE MASTERBATCHES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2021
1
Accounting policies
(Continued)
- 4 -
1.9
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or
fixed assets
.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.10
Retirement benefits
The company operates a defined contribution scheme for the benefit of its employees. Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.11
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair
value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.
1.12
Government grants
Government grants are recognised at the fair value of the asset receive
d
or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met
. Where a
grant does not specify performance conditions
it
is recognised in income when the proceeds are received or receivable
. A grant received before the recognition criteria are satisfied is recognised as a liability.
1.13
Foreign exchange
Monetary assets and liabilities denominated in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction. All differences are taken to profit and loss account.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the director is required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
PERFORMANCE MASTERBATCHES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2021
2
Judgements and key sources of estimation uncertainty
(Continued)
- 5 -
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are
as follows.
Stock valuation
At 31
December
202
1
the company held stock of £
1,176,003
(
31 March 2021
:
£814,706
). Stocks are valued at the lower cost and net realisable value. Cost includes the cost of materials, direct costs and production overheads using an appropriate absorption rate. This requires judgement. Net realisable value includes, where necessary, provisions for slow moving and obsolete stocks. Calculation of these provisions requires judgements to be made, which include forecast consumer demand, the promotional, competitive and economic environment trends. This also involves significant judgement.
Carrying value of fixed assets
The company's fixed assets cost £
3,399,925
(
31 March
20
21
: £
3,252,469
) and had a carrying value of £
824,701
at 31
December 2021
(
31 March 2021
: £
881,055
). The depreciation policy is set out at 1.
4
above; depreciation of £
103,970
was charged to the profit and loss account during the year (
31 March
20
21
: £
143,873
). The estimation of useful economic life can have a significant impact on the depreciation charge and on the carrying value of assets; the board regularly reviews the asset lives based on past experience.
3
Employees
The average monthly number of persons (including directors) employed by the company during the Period was:
2021
2021
Number
Number
Total
45
47
PERFORMANCE MASTERBATCHES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2021
- 6 -
4
Tangible fixed assets
Freehold property
Plant and machinery
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 April 2021
512,748
2,485,974
241,442
112,494
3,352,658
Additions
7,530
41,222
2,015
50,767
Disposals
(3,500)
(3,500)
At 31 December 2021
520,278
2,523,696
243,457
112,494
3,399,925
Depreciation and impairment
At 1 April 2021
77,527
2,101,895
223,100
69,081
2,471,603
Depreciation charged in the Period
10,371
67,083
10,182
16,334
103,970
Eliminated in respect of disposals
(349)
(349)
At 31 December 2021
87,898
2,168,629
233,282
85,415
2,575,224
Carrying amount
At 31 December 2021
432,380
355,067
10,175
27,079
824,701
At 31 March 2021
435,221
384,079
18,342
43,413
881,055
The net book value at 1 April 2015, which was based on an independent valuation, has been adopted as 'deemed cost' on transition to FRS 102. This value is lower than historic cost.
5
Debtors
2021
2021
Amounts falling due within one year:
£
£
Trade debtors
1,082,292
1,272,658
Other debtors
10,599
1,082,292
1,283,257
PERFORMANCE MASTERBATCHES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2021
- 7 -
6
Creditors: amounts falling due within one year
2021
2021
£
£
Bank loans
9
30,904
26,097
Obligations under finance leases
8
590
5,234
Trade creditors
1,061,848
1,006,007
Corporation tax
47,179
65,143
Other taxation and social security
53,865
106,817
Government grants
5,050
5,750
Accruals and deferred income
106,371
52,152
1,305,807
1,267,200
Please refer to note 9 for details of security held over these liabilities.
7
Creditors: amounts falling due after more than one year
2021
2021
Notes
£
£
Bank loans and overdrafts
9
188,720
211,259
Government grants
8,294
11,250
197,014
222,509
Please refer to note 9 for details of security held over these liabilities.
8
Finance lease obligations
2021
2021
Future minimum lease payments due under finance leases:
£
£
Within one year
590
5,234
Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 5 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
The liabilities are secured against the assets to which they relate.
PERFORMANCE MASTERBATCHES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2021
- 8 -
9
Loans and overdrafts
2021
2021
£
£
Bank loans
219,624
237,356
Payable within one year
30,904
26,097
Payable after one year
188,720
211,259
Bank loans and overdrafts were secured on a charge over land at Blaenant Industrial Estate, Brynmawr, Gwent
NP23 4BX
on the Bank's standard form dated 12/10/1983 and a debenture on the Bank's standard form dated 27/01/1983. There was a limited guarantee given by DTI for £306,000 dated 03/12/2013.
The company had two
bank loans which were repayable in full by August 2026 and 2 April 2029. Interest wa
s
being charged on the one loan at a fixed rate of 2.5% and at 4.13% over the Barclays Bank PLC base rate on the other. Both loans were repaid in full on 4 January 2022.
10
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2021
2021
Balances:
£
£
Accelerated capital allowances
87,690
73,842
2021
Movements in the Period:
£
Liability at 1 April 2021
73,842
Charge to profit or loss
13,848
Liability at 31 December 2021
87,690
11
Called up share capital
2021
2021
2021
2021
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
50
50
50
50
Ordinary class A shares of £1 each
5,264
5,264
5,264
5,264
Ordinary class B shares of £1 each
24,200
24,200
24,200
24,200
29,514
29,514
29,514
29,514
PERFORMANCE MASTERBATCHES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2021
- 9 -
12
Audit report information
As the income statement has been omitted from the filing copy of the financial statements
,
the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006
:
The auditor's report was unqualified.
The senior statutory auditor was Mr John Griffiths and the auditor was UHY Hacker Young.
13
Operating lease commitments
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2021
2021
£
£
12,000
12,000
14
Related party transactions
Remuneration of key management personnel
2021
2021
£
£
Aggregate compensation
97,600
124,605
Other information
Dividends of
£
40,350
(
year ended 31 March 2021
:
£
5
7,800) were paid to Mr L Watts, director and shareholder, during the period.
15
Parent company and ultimate controlling party
The ultimate controlling party at 31 December 2021 was Mr L Watts. Following the period end, the parent company became Colloids Limited.
2021-12-31
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false
02 December 2022
CCH Software
CCH Accounts Production 2022.300
No description of principal activity
This audit opinion is unqualified
Mr L Watts
Mr L Watts
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