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REGISTERED NUMBER:
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FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2017 |
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ROYDON POLYTHENE LIMITED |
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REGISTERED NUMBER:
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FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2017 |
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FOR |
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ROYDON POLYTHENE LIMITED |
ROYDON POLYTHENE LIMITED (REGISTERED NUMBER: 02581625) |
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CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 OCTOBER 2017 |
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Company Information | 1 |
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Balance Sheet | 2 |
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Notes to the Financial Statements | 3 |
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ROYDON POLYTHENE LIMITED |
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COMPANY INFORMATION |
FOR THE YEAR ENDED 31 OCTOBER 2017 |
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DIRECTORS: |
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SECRETARY: |
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REGISTERED OFFICE: |
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REGISTERED NUMBER: |
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SENIOR STATUTORY AUDITOR: |
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AUDITORS: |
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Statutory Auditors |
Regency Court |
62-66 Deansgate |
Manchester |
M3 2EN |
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BANKERS: |
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1 Yorkshire Street |
Rochdale |
Lancashire |
OL16 1BH |
ROYDON POLYTHENE LIMITED (REGISTERED NUMBER: 02581625) |
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BALANCE SHEET |
31 OCTOBER 2017 |
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31.10.17 | 31.10.16 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 4 |
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CURRENT ASSETS |
Stocks |
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Debtors | 5 |
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Cash at bank and in hand |
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CREDITORS |
Amounts falling due within one year | 6 |
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NET CURRENT ASSETS |
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TOTAL ASSETS LESS CURRENT
LIABILITIES |
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CREDITORS |
Amounts falling due after more than one
year |
7 |
( |
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PROVISIONS FOR LIABILITIES | 9 | ( |
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NET ASSETS |
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CAPITAL AND RESERVES |
Called up share capital |
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Share premium |
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Retained earnings |
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SHAREHOLDERS' FUNDS |
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In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered. |
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The financial statements were approved by the Board of Directors on
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ROYDON POLYTHENE LIMITED (REGISTERED NUMBER: 02581625) |
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NOTES TO THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 OCTOBER 2017 |
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1. | STATUTORY INFORMATION |
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Roydon Polythene Limited is a
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company's registered number and registered office address can be found on the Company Information page. |
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2. | ACCOUNTING POLICIES |
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Basis of preparing the financial statements |
The financial statements have been prepared in accordance with Financial Reporting Standard 102 "The |
Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The |
financial statements have been prepared under the historical cost convention. |
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The financial statements are prepared in sterling, which is the functional currency of the company. Monetary |
amounts in these financial statements are rounded to the nearest £. |
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The financial statements for the year ended 31st October 2017 are the first financial statements of Roydon |
Polythene Limited prepared in accordance with FRS 102. The financial statements for the preceding period were |
prepared in accordance with previous UK GAAP. The date of transition to FRS 102 was 1st November 2015. |
The reported financial position and financial performance for the previous period are not affected by the |
transition to FRS 102. |
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The principal accounting policies adopted are set out below. |
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The financial statements of the company are consolidated in the financial statements of Roydon Group PLC. The |
consolidated financial statements of Roydon Group PLC are available from the registered office, Unit 1-3, |
Junction Eco Park, Rake Lane, Swinton, M27 8LU. |
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Related party exemption |
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The |
Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party |
transactions with wholly owned subsidiaries within the group. |
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Significant judgements and estimates |
In the application of the company's accounting policies, the directors are required to make judgements, estimates |
and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other |
sources. The estimates and associated assumptions are based on historical experience and other factors that are |
considered to be relevant. Actual results may differ from these estimates. |
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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. |
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Going concern |
The directors have at the time of approving the financial statements, a reasonable expectation that the company |
has adequate resources to continue in operational existence for the foreseeable future. Thus they continue to |
adopt the going concern basis of accounting in preparing the financial statements. |
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Turnover |
Turnover represents goods delivered and PRN/PERN sales during the year excluding VAT.PRN/PERN sales are |
recognised on the supply of PRN/PERN's. |
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Revenue is recognised when the significant risks and rewards of ownership of the goods have passed to the |
buyer, 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. |
ROYDON POLYTHENE LIMITED (REGISTERED NUMBER: 02581625) |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 OCTOBER 2017 |
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2. | ACCOUNTING POLICIES - continued |
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Tangible fixed assets |
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful |
life. |
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Leasehold improvements | Over the life of the lease |
Plant and machinery | 5% - 20 % straight line |
Plant and machinery - light fittings | 25% straight line |
Plant and machinery - cages and bins | 50% straight line |
Office equipment and fittings | 33.3% straight line |
Motor vehicles | 25% straight line |
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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 recognised in the profit and loss account. |
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Stocks |
Stocks are valued at the lower of cost and net realisable value. Cost is based on the cost of purchase on a first in, |
first out basis together with attributable overheads based on normal level of activity, after making due allowance |
for production losses. |
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Net realisable value is based on estimated selling price less further costs to completion and disposal. |
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Taxation |
The tax expense represents the sum of the tax currently payable and deferred tax. |
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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 group's liability for current tax |
is calculated using tax rates that have been enacted or substantively enacted by the reporting end date. |
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Deferred tax |
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised |
to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other |
future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill |
or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor |
the accounting profit. |
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The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it |
is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be |
recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is |
settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it |
relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. |
Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax |
assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority. |
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Foreign currencies |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the |
balance sheet date. |
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Non-monetary assets and liabilities and transactions in foreign currencies are translated into sterling at the rate of |
exchange ruling at the date of the transaction. |
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Exchange differences are taken into account in arriving at the operating profit. Foreign currency transactions are |
translated at the rates ruling when they occurred. Foreign currency monetary assets and liabilities are translated at |
the rates ruling at the the balance sheet dates. Any differences are taken to the profit and loss account. |
ROYDON POLYTHENE LIMITED (REGISTERED NUMBER: 02581625) |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 OCTOBER 2017 |
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2. | ACCOUNTING POLICIES - continued |
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Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme and the pension charge represents the amounts |
payable by the group to the fund in respect of the year. The assets of the scheme are held separately from those |
of the company in an independently administered fund. |
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Hire purchase and leasing commitments |
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. |
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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 the profit and loss account so as to produce a constant periodic rate of interest on the |
remaining balance of the liability. |
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Rentals payable under operating leases, including any lease incentives received, are charged to income on a |
straight line basis over the term of the relevant lease except where another more systematic basis is more |
representative of the time pattern in which economic benefits from the lease asset are consumed. |
ROYDON POLYTHENE LIMITED (REGISTERED NUMBER: 02581625) |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 OCTOBER 2017 |
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2. | ACCOUNTING POLICIES - continued |
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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. |
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Financial instruments are recognised in the company's statement of financial position when the company |
becomes party to the contractual provisions of the instrument. |
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Financial assets and liabilities are offset and 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. |
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Basic financial assets |
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction |
price including transaction costs and are subsequently carried at amortised cost using the effective interest |
method unless the arrangement constitutes a financing transaction, where the transaction is measured at the |
present value of the future receipts discounted at a market rate of interest. Financial assets classified as |
receivable within one year are not amortised. |
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Other financial assets |
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint |
ventures, are initially measured at fair value, which is normally the transaction price. Such assets are |
subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that |
investments in equity instruments that are not publically traded and whose fair values cannot be measured |
reliably are measured at cost less impairment. |
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Impairment of financial assets |
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of |
impairment at each reporting end date. |
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Financial assets are impaired where there is objective evidence that, as a result of one or more events that |
occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If |
an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of |
the estimated cash flows discounted at the asset's original effective interest rate. The impairment loss is |
recognised in profit or loss. |
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If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, |
the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the |
carrying amount would have been, had the impairment not previously been recognised. The impairment reversal |
is recognised in profit or loss. |
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Derecognition of financial assets |
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are |
settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership |
to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has |
transferred to another party that is able to sell the asset in its entirety to an unrelated third party. |
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Classification of financial liabilities |
Financial liabilities and equity instruments are classified according to the substance of the contractual |
arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of |
the company after deducting all of its liabilities.Basic financial liabilities, including creditors, bank loans, loans |
from fellow group companies and preference shares that are classified as debt, are initially recognised at |
transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is |
measured at the present value of the future receipts discounted at a market rate of interest. Financial liabilities |
classified as payable within one year are not amortised. |
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ROYDON POLYTHENE LIMITED (REGISTERED NUMBER: 02581625) |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 OCTOBER 2017 |
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2. | ACCOUNTING POLICIES - continued |
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. |
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Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of |
business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or |
less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction |
price and subsequently measured at amortised cost using the effective interest method. |
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Other financial liabilities |
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial |
instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and |
are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit |
or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a |
cash flow hedge. |
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Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair |
value through profit or loss. Debt instruments may be designated as being measured at fair value though profit or |
loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance |
evaluated on a fair value basis in accordance with a documented risk management or investment strategy. |
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Determination of financial liabilities |
Financial liabilities are derecognised when the company's contractual obligations expire or are discharged or |
cancelled. |
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Impairment of fixed assets |
At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine |
whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, |
the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). |
Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the |
recoverable amount of the cash-generating unit to which the asset belongs. |
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Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the |
estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current |
market assessments of the time value of money and the risks specific to the asset for which the estimates of future |
cash flows have not been adjusted. |
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If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, |
the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment |
loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which |
case the impairment loss is treated as a revaluation decrease. |
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Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to |
apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating |
unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount |
does not exceed the carrying amount that would have been determined had no impairment loss been recognised |
for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately |
in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the |
impairment loss is treated as a revaluation increase. |
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Government grants |
Grants relating to expenditure on tangible fixed assets are credited to the profit and loss account at the same rate |
as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors |
as deferred income. |
ROYDON POLYTHENE LIMITED (REGISTERED NUMBER: 02581625) |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 OCTOBER 2017 |
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2. | ACCOUNTING POLICIES - continued |
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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. |
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The cost of any unused holiday entitlement is recognised in the period in which the employee's services are |
received. |
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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. |
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3. | EMPLOYEES AND DIRECTORS |
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The average number of employees during the year was NIL (2016 - 21 ). |
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4. | TANGIBLE FIXED ASSETS |
Office |
equipment |
Leasehold | Plant and | and |
improvements | machinery | fittings | Totals |
£ | £ | £ | £ |
COST |
At 1 November 2016 |
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Additions |
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At 31 October 2017 |
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DEPRECIATION |
At 1 November 2016 |
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Charge for year |
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At 31 October 2017 |
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NET BOOK VALUE |
At 31 October 2017 |
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At 31 October 2016 |
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Hire purchase agreements |
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Included within the net book value of £530,494 is £32,583 relating to an asset held under a hire purchase |
agreement. The depreciation charged to the financial statements in the year in respect of such assets amounted to |
£6,517. |
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5. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31.10.17 | 31.10.16 |
£ | £ |
Trade debtors |
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Amounts owed by group undertakings |
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Other debtors |
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ROYDON POLYTHENE LIMITED (REGISTERED NUMBER: 02581625) |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 OCTOBER 2017 |
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6. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31.10.17 | 31.10.16 |
£ | £ |
Hire purchase contracts (see note 8) |
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Trade creditors |
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Amounts owed to group undertakings |
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Taxation and social security |
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Other creditors |
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The amounts advanced under invoice discounting are secured by a cross guarantee and debenture given by all |
group companies. |
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7. |
CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR |
31.10.17 | 31.10.16 |
£ | £ |
Hire purchase contracts (see note 8) |
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8. | LEASING AGREEMENTS |
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Minimum lease payments under hire purchase fall due as follows: |
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31.10.17 | 31.10.16 |
£ | £ |
Net obligations repayable: |
Within one year |
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Between one and five years |
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Obligations under finance lease and hire purchase contracts are wholly payable within five years and are |
effectively secured on the tangible fixed assets to which they relate. |
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9. | PROVISIONS FOR LIABILITIES |
31.10.17 | 31.10.16 |
£ | £ |
Deferred tax | 92,500 | 102,284 |
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Deferred |
tax |
£ |
Balance at 1 November 2016 |
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Accelerated capital allowances | (9,784 | ) |
Balance at 31 October 2017 |
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ROYDON POLYTHENE LIMITED (REGISTERED NUMBER: 02581625) |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 OCTOBER 2017 |
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10. | DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006 |
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The Report of the Auditors was unqualified. |
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for and on behalf of
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11. | OPERATING LEASES |
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The company has operating lease commitments of £146,099 (2016: £177,766). |
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12. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES |
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The following advances and credits to directors subsisted during the years ended 31 October 2017 and |
31 October 2016: |
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31.10.17 | 31.10.16 |
£ | £ |
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Balance outstanding at start of year |
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Amounts advanced |
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Amounts repaid | ( |
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Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year |
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Balance outstanding at start of year |
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Amounts advanced |
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Amounts repaid | ( |
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Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year |
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Director loans are interest free and repayable on demand. |
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13. | RELATED PARTY DISCLOSURES |
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Roydon Recycling UK Limited |
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During the year the company entered into transactions with Roydon Recycling UK Limited, a company of which |
Mr G Wallwork and Mrs S P Sumner are directors and shareholders. During the year the company made sales of |
goods and services to this company of £95,464 (2016; £67,045) and purchased goods and services from this |
company totalling £353,456 (2016; £206). At the 31 October 2017 a balance of £24,194 was owed from Roydon |
Recycling UK Limited (2016: £52,962). |
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Roydon Bottle Recycling Limited |
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During the year the company entered into transactions with Roydon Bottle Recycling Limited, a company of |
which Mr G Wallwork and Mr W Sumner are directors and shareholders and of which Mrs S Sumner is a |
director. During the year the company made sales of goods and services to this company of £8,351 (2016: |
£1,764) and purchased goods and services from this company totalling £465,671 (2016: £129,394). As at 31 |
October 2017 a balance of £119,831 was owed to Roydon Bottle Recycling Limited (2016: due from £30,644). |
ROYDON POLYTHENE LIMITED (REGISTERED NUMBER: 02581625) |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 OCTOBER 2017 |
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14. | PARENT COMPANY |
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The financial statements of the company are consolidated in the financial statements of Roydon Group PLC. The |
consolidated financial statements of Roydon Group PLC are available from the registered office, Unit 1-3, |
Junction Eco Park, Rake Lane, Swinton, M27 8LU. |