Company registration number 00924170 (England and Wales)
BESTPLATE LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
PAGES FOR FILING WITH REGISTRAR
BESTPLATE LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 8
BESTPLATE LIMITED
BALANCE SHEET
AS AT 30 JUNE 2023
30 June 2023
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
4
3,293,951
3,422,344
Current assets
Stocks
885,613
1,500,589
Debtors
5
1,375,272
1,101,828
Cash at bank and in hand
3,270,805
2,272,478
5,531,690
4,874,895
Creditors: amounts falling due within one year
6
(4,662,333)
(4,359,936)
Net current assets
869,357
514,959
Total assets less current liabilities
4,163,308
3,937,303
Provisions for liabilities
(214,224)
(148,224)
Net assets
3,949,084
3,789,079
Capital and reserves
Called up share capital
11,343
11,343
Share premium account
49,437
49,437
Revaluation reserve
437,893
437,893
Profit and loss reserves
3,450,411
3,290,406
Total equity
3,949,084
3,789,079
The directors of the company have 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 by the board of directors and authorised for issue on 25 April 2024 and are signed on its behalf by:
R Laugharne
Director
Company Registration No. 00924170
BESTPLATE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
- 2 -
1
Accounting policies
Company information
Bestplate Limited is a private company limited by shares incorporated in England and Wales. The registered office is Unit 6, Junction 6 Industrial Estate, Electric Avenue, Birmingham, United Kingdom, B6 7JJ.
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 amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties. The principal accounting policies adopted are set out below.
1.2
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
Subsequent to the year end, the company became a subsidiary of Hills Group International Limited. The wider group of which the company is now a part has confirmed it will provide financial support, should this prove necessary, to the company in order to ensure if can continue to trade as a going concern.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
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.
1.4
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, 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 land and buildings
2% straight line
Plant and equipment
15% straight line
Fixtures and fittings
15% straight line
Computers
33.3% straight line
Motor vehicles
25% straight line
BESTPLATE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
1
Accounting policies
(Continued)
- 3 -
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.
1.5
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.
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.
1.6
Cash at bank and in hand
Cash at bank and in hand are basic financial assets and include cash in hand and deposits held at call with banks.
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.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are measured at transaction price including transaction costs.
Impairment of financial assets
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.
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
Basic financial liabilities, including creditors, bank loans and loans from fellow group companies are initially recognised at transaction. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
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.
BESTPLATE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
1
Accounting policies
(Continued)
- 4 -
1.8
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.9
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
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.
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 when the company has 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.
1.10
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.
1.11
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.12
Government grants
Government grants are recognised at the fair value of the asset received 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
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
BESTPLATE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 5 -
2
Judgements and key sources of estimation uncertainty
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.
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.
Critical judgements
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
Deferred grant income
A key area of judgement and estimation uncertainty that has a significant effect on the amounts recognised in the financial statements is in regards to the release of deferred grant income. The Directors have applied judgement when determining the levels of deferred income to release to profit and loss, given due consideration to grant performance obligations and the likelihood of a requirement to settle contingent liabilities in relation to repayment of grant income.
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 provision
A key area of judgement and estimation uncertainty that has a significant effect on the amounts recognised in the financial statements is in regard to any provision for impairment of stock. Management monitor the ageing of stock, along with market trends and conditions, in determining whether a provision is required in relation to particular stock items.
Valuation of freehold land and buildings
Freehold land and buildings are subject to revaluation, which involves estimation uncertainty. Revaluations within the financial statements are made with reference to independent professional valuations.
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Total
44
50
BESTPLATE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 6 -
4
Tangible fixed assets
Land and buildings
Plant and machinery etc
Total
£
£
£
Cost or valuation
At 1 July 2022
3,150,000
1,010,983
4,160,983
Additions
50,111
50,111
At 30 June 2023
3,150,000
1,061,094
4,211,094
Depreciation and impairment
At 1 July 2022
738,639
738,639
Depreciation charged in the year
58,299
120,205
178,504
At 30 June 2023
58,299
858,844
917,143
Carrying amount
At 30 June 2023
3,091,701
202,250
3,293,951
At 30 June 2022
3,150,000
272,344
3,422,344
The company's freehold land and buildings were revalued by Duxburys Commercial in November 2022. This valuation has been included as a fair valuation of the freehold land and buildings at the balance sheet date.
The following assets are carried at valuation. If the assets were measured using the cost model, the carrying amounts would be as follows:
Freehold land and buildings
2023
2022
£
£
Cost
3,075,027
3,075,027
Accumulated depreciation
(443,164)
(381,663)
Carrying value
2,631,863
2,693,364
5
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
831,993
742,895
Amounts owed by group undertakings
439,953
264,075
Other debtors
103,326
94,858
1,375,272
1,101,828
BESTPLATE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 7 -
6
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
850,665
723,759
Amounts owed to group undertakings
3,272,778
3,199,209
Taxation and social security
425,072
298,609
Other creditors
113,818
138,359
4,662,333
4,359,936
7
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.
Senior Statutory Auditor:
Simon Read
Statutory Auditor:
Azets Audit Services
8
Events after the reporting date
In February 2024 the company was sold and is now a subsidiary of Hills Group International Limited. Prior to this transaction, a number of events took place as part of a group reorganisation. These are non-adjusting events after the end of the reporting period.
The group wrote off the net intercompany balances due from Bestplate Limited to fellow group undertakings. In addition, the company made a one-off payment to a company director. The net financial impact of these transactions on the company was a gain of approximately £1.3 million, dependent on prevailing corporation tax rates.
Prior to the sale of the company, Bestplate Limited also disposed of its property at Snowdon Road, Blackpool, to Zell-Em Group Limited via a distribution in specie. This property had a net asset value of £3.1 million at the balance sheet date. The financial impact of this is a corresponding reduction in the fixed assets and net assets of the company.
BESTPLATE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 8 -
9
Related party transactions
Zell-em Group Limited
Ultimate parent company
During the year, the company incurred recharges from Zell-em Group Limited amounting to £479,000 (2022 - £924,000). During the year the company paid dividends to Zell-em Group Limited amounting to £212,500 (2022 - £Nil).
Zell-em Limited
Fellow subsidiary undertaking
During the year, the company made purchases from Zell-em Limited amounting to £145,286 (2022 - £153,843).
Amounts owed to related parties are unsecured, interest free and due for repayment within one year.
10
Directors' transactions
Dividends totalling £104,650 (2022 - £0) were paid in the year in respect of shares held by the company's directors.
11
Parent company
During the year the immediate and ultimate parent undertaking was Zell-Em Group Limited, a company incorporated in England. Group financial statements are prepared and are available to the public from Companies House, Crown Way, Cardiff, CF14 3UZ. This is the only company in which this company's results are consoldiated.
Subsequent to the year end, the company became a subsidiary of Bestplate Holding Limited, which is controlled by Hills Group International Limited. Hills Group International Limited is a 100% subsidiary of Erich Utsch AG, incorporated in Germany.