Company registration number SC131630 (Scotland)
SHORE LAMINATES LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
SHORE LAMINATES LIMITED
COMPANY INFORMATION
Directors
David Campden
Alan T Pearson
Christopher Elkins
(Appointed 1 March 2021)
Secretary
William Thesing
Company number
SC131630
Registered office
Friarton Bridge Park
Friarton Road
PERTH
PH2 8DD
Auditor
MMG Archbold Limited
4 Albert Place
PERTH
PH2 8JE
Business address
Friarton Bridge Park
Friarton Road
PERTH
PH2 8DD
Bankers
The Royal Bank of Scotland plc
Perth Chief Office
12 Dunkeld Road
PERTH
PH1 5RB
Solicitors
Thorntons WS
Whitehall House
33 Yeaman Shore
DUNDEE
DD1 4BJ
SHORE LAMINATES LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Profit and loss account
8
Statement of comprehensive income
9
Balance sheet
10
Statement of changes in equity
11
Statement of cash flows
12
Notes to the financial statements
13 - 25
SHORE LAMINATES LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2021
- 1 -
The directors present the strategic report for the year ended 31 December 2021.
Fair review of the business
The directors aim to present a balanced and comprehensive review of the development and performance of the business during the year and its position at the year end. The directors review is consistent with the size and non-complex nature of the business and is written in the context of the risks and uncertainties faced.
The company’s core business is the manufacture of laminated products. Turnover has increased as economic conditions return to pre-pandemic levels.
Sales of panel products continue to achieve growth with underlying demand from refurbishment and renovation and the new build sector. The market is forecast to remain strong in future years.
The directors are not aware at this date of this report, of any material changes in the company’s activities in the next year.
Management remain positive regarding the prospects for the business to continue its growth in revenue and profitability throughout 2021 and beyond.
Key performance indicators
There was a increase in turnover from the previous year of 61.62
%.
O
perating profit has increased from £693,558 (7%) to £1,277,600 (8%). After taxation, £1,167182 has been added to the reserves. Return on capital employed was 19.5% (2020: 10.9%). This is calculated as profit after tax by net assets.
The
in
crease in turnover relates to
a
return to pre-pandemic
economic conditions following the COVID-19
pandemic.
David Campden
Director
29 September 2022
SHORE LAMINATES LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2021
- 2 -
The directors present their annual report and financial statements for the year ended 31 December 2021.
Principal activities
The principal activity of the company continued to be the manufacture of laminated products.
Results and dividends
The results for the year are set out on page 8.
No ordinary dividends were paid. The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
David Campden
Alan T Pearson
Marco Besseling
(Resigned 1 March 2021)
Christopher Elkins
(Appointed 1 March 2021)
Financial instruments
Financial risk management objectives and policies
The company’s principal financial instruments comprise cash and items that arise directly from the company’s operations such as trade debtors and trade creditors.
The company’s activities expose it to a number of financial risks including credit risk, liquidity risk and foreign currency risk. The directors review and agree policies for managing each of these risks and these are summarised below. The company does not use derivative financial instruments for speculative purposes.
Liquidity risk
In order to maintain liquidity to ensure that sufficient funds are available for ongoing operations and future developments, the company’s policy is to ensure that cash is available within the bank current accounts, whilst maintaining short, medium, and long-term funding arrangements within the Wilsonart group.
Foreign currency risk
The company’s activities expose it to the financial risks of changes in foreign currency exchange rates. These risks are mitigated across the Wilsonart group, which maintains operations in several currency areas globally.
Credit risk
The company’s principal financial assets are bank balances and cash, trade, and other receivables.
The company’s credit risk is primarily attributable to its trade receivables. The amounts presented in the balance sheet are net of allowances for doubtful receivables. An allowance for impairment is made where there is an identified loss event which, based on previous experience, provides evidence of a reduction in cash recoverability.
Risk around the impact of the pandemic on the company’s customer base are monitored frequently via risk reporting and account managers maintain relationships with supply chain.
Future developments
The expectations of the directors are that despite uncertainly in the economy due rising inflation, the level of activity is sustainable, with further prospects for growth and improved profitability into 2022 and beyond. The directors remain committed to product and process development and see this as a vital component in the company’s ongoing success.
SHORE LAMINATES LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 3 -
Auditor
In accordance with the company's articles, a resolution proposing that MMG Archbold Limited be reappointed as auditor of the company will be put at a General Meeting.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s
auditor
is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s
auditor
is aware of that information.
On behalf of the board
David Campden
Director
29 September 2022
SHORE LAMINATES LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2021
- 4 -
The directors are responsible 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 then 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;
-
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.
SHORE LAMINATES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF SHORE LAMINATES LIMITED
- 5 -
Opinion
We have audited the financial statements of Shore Laminates Limited (the 'company') for the year ended 31 December 2021 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including 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 December 2021 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.
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's
responsibilities for the audit of the
financial statements
section of our report. We are independent of the
company
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 directors' 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 company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are 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.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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. 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 course of 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 this gives rise to a material misstatement in the financial statements themselves. 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.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit
:
-
the information given in the strategic report and the directors'
r
eport for the financial year for which the financial statements are prepared is consistent with the financial statements
; and
-
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
SHORE LAMINATES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SHORE LAMINATES LIMITED
- 6 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identifie
d
material misstatements in the strategic report or the directors'
r
eport
. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
-
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
-
the financial statements are not in agreement with the accounting records and returns; or
-
certain disclosures of
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 directors'
r
esponsibilities
s
tatement, 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's 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
.
SHORE LAMINATES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SHORE LAMINATES LIMITED
- 7 -
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
.
The Company is subject to laws and regulations that directly and indirectly affect the financial statements. Based on our understanding of the Company and industry, we identified that the principal risks of non-compliance with laws and regulations related to general legislation, breaches of health and safety regulations and tax legislation. We considered the extent to which these laws and regulations might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements
,
including the risk of override of controls, and determined that the principal risk related to posting journal entries to manipulate revenue and profit. Audit procedures performed by the engagement team included:
-
discussions with management, including consideration of known or suspected instances of non-compliance with laws and regulations, including fraud;
-
enquiring of management as to actual and potential litigation and claims;
-
identifying and assessing the design effectiveness of controls that management has in place to prevent and detect fraud and non-compliance with laws and regulations;
-
challenging assumptions and judgements made by management with regard to the significant accounting estimates identified;
-
performing analytical procedures to identify any unusual or unexpected relationships, investigating the rationale behind significant or unusual transactions and agreeing financial statement disclosures to underlying supporting documentation; and
-
identifying and testing journal entries, in particular journal entries posted with unusual account combinations, journal entries posted
,
backdated journals, and journals with unusual
or minimal
descriptions.
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. Also, 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 misrepresentation, or through collusion.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's 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.
Klarrisa Robertson FCCA (Senior Statutory Auditor)
For and on behalf of MMG Archbold Limited
29 September 2022
Chartered Accountants
Statutory Auditor
4 Albert Place
PERTH
PH2 8JE
SHORE LAMINATES LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2021
- 8 -
2021
2020
Notes
£
£
Turnover
3
16,008,401
9,904,706
Cost of sales
(11,674,064)
(6,804,026)
Gross profit
4,334,337
3,100,680
Administrative expenses
(3,082,941)
(2,674,535)
Other operating income
26,204
267,413
Operating profit
4
1,277,600
693,558
Interest receivable and similar income
6
3
235
Profit before taxation
1,277,603
693,793
Tax on profit
7
(110,421)
(165,537)
Profit for the financial year
1,167,182
528,256
The profit and loss account has been prepared on the basis that all operations are continuing operations.
SHORE LAMINATES LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2021
- 9 -
2021
2020
£
£
Profit for the year
1,167,182
528,256
Other comprehensive income
-
-
Total comprehensive income for the year
1,167,182
528,256
SHORE LAMINATES LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2021
31 December 2021
- 10 -
2021
2020
Notes
£
£
£
£
Fixed assets
Tangible assets
9
1,334,802
1,228,749
Current assets
Stocks
10
3,561,906
2,124,608
Debtors
11
5,030,721
2,806,326
Cash at bank and in hand
529,608
1,121,277
9,122,235
6,052,211
Creditors: amounts falling due within one year
12
(4,449,628)
(2,414,198)
Net current assets
4,672,607
3,638,013
Total assets less current liabilities
6,007,409
4,866,762
Creditors: amounts falling due after more than one year
13
(14,956)
(29,913)
Provisions for liabilities
Deferred tax liability
15
11,578
-
(11,578)
Net assets
5,992,453
4,825,271
Capital and reserves
Called up share capital
18
20,100
20,100
Profit and loss reserves
5,972,353
4,805,171
Total equity
5,992,453
4,825,271
The financial statements were approved by the board of directors and authorised for issue on 29 September 2022 and are signed on its behalf by:
David Campden
Director
Company Registration No. SC131630
SHORE LAMINATES LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2021
- 11 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 January 2020
20,100
6,676,915
6,697,015
Year ended 31 December 2020:
Profit and total comprehensive income for the year
-
528,256
528,256
Dividends
8
-
(2,400,000)
(2,400,000)
Balance at 31 December 2020
20,100
4,805,171
4,825,271
Year ended 31 December 2021:
Profit and total comprehensive income for the year
-
1,167,182
1,167,182
Balance at 31 December 2021
20,100
5,972,353
5,992,453
SHORE LAMINATES LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2021
- 12 -
2021
2020
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
21
220,178
1,785,172
Income taxes paid
(403,983)
(101,903)
Net cash (outflow)/inflow from operating activities
(183,805)
1,683,269
Investing activities
Purchase of tangible fixed assets
(408,425)
(188,627)
Proceeds on disposal of tangible fixed assets
558
25,040
Interest received
3
235
Net cash used in investing activities
(407,864)
(163,352)
Financing activities
Payment of finance leases obligations
(29,430)
Dividends paid
(2,400,000)
Net cash used in financing activities
-
(2,429,430)
Net decrease in cash and cash equivalents
(591,669)
(909,513)
Cash and cash equivalents at beginning of year
1,121,277
2,030,790
Cash and cash equivalents at end of year
529,608
1,121,277
SHORE LAMINATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
- 13 -
1
Accounting policies
Company information
Shore Laminates Limited is a
private
company
limited by shares
incorporated in
Scotland
.
The registered office is
Friarton Bridge Park, Friarton Road, PERTH, PH2 8DD.
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.
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. The principal accounting policies adopted are set out below.
1.2
Going concern
A
t the time of approving the financial statements
,
t
he directors have a reasonable expectation that the
company
has adequate resources to continue in operational existence for the foreseeable future. Thus
t
he directors continue to adopt the going concern basis of accounting in preparing the financial statements.
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.
Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that
it is probable will be
recover
ed
.
SHORE LAMINATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
1
Accounting policies
(Continued)
- 14 -
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:
Leasehold land and buildings
over the lease term
Plant and machinery
15% - 20% straight line
Fixtures, fittings & equipment
20% - 25% straight line
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
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.
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.
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.
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.
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.
SHORE LAMINATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
1
Accounting policies
(Continued)
- 15 -
1.7
Cash and cash equivalents
Cash and cash equivalents
are basic financial assets
and
include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.8
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.
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.
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 publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
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.
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.
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.
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.
SHORE LAMINATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
1
Accounting policies
(Continued)
- 16 -
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, 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
paymen
ts discounted at a market rate of interest.
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. A
m
ounts 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.
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
s
ubsequently 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.
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 th
r
ough 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.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations
expire or are discharged or cancelled.
1.9
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.
SHORE LAMINATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
1
Accounting policies
(Continued)
- 17 -
1.10
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.
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 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.
1.11
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.
1.12
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.13
Leases
Rentals payable under operating leases,
including
any lease incentives received, are charged to
profit or loss
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
d
asset are consumed.
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.
SHORE LAMINATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
1
Accounting policies
(Continued)
- 18 -
1.14
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.
1.15
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.
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.
3
Turnover and other revenue
2021
2020
£
£
Turnover analysed by class of business
Sale of goods
16,008,401
9,904,706
2021
2020
£
£
Turnover analysed by geographical market
UK
16,007,930
9,904,706
Non UK
471
-
16,008,401
9,904,706
2021
2020
£
£
Other revenue
Interest income
3
235
Grants received
14,957
263,250
SHORE LAMINATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 19 -
4
Operating profit
2021
2020
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange losses
4,500
75,607
Government grants
(14,957)
(263,250)
Fees payable to the company's auditor for the audit of the company's financial statements
11,000
10,000
Depreciation of owned tangible fixed assets
302,372
270,605
(Profit)/loss on disposal of tangible fixed assets
(558)
7,774
Operating lease charges
273,989
277,753
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2021
2020
Number
Number
Administration
10
10
Distribution
22
21
Manufacturing
13
14
Sales
19
16
Total
64
61
Their aggregate remuneration comprised:
2021
2020
£
£
Wages and salaries
1,662,905
1,544,620
Social security costs
137,709
128,058
Pension costs
27,614
25,975
1,828,228
1,698,653
6
Interest receivable and similar income
2021
2020
£
£
Interest income
Interest on bank deposits
3
235
Investment income includes the following:
Interest on financial assets not measured at fair value through profit or loss
3
235
SHORE LAMINATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 20 -
7
Taxation
2021
2020
£
£
Current tax
UK corporation tax on profits for the current period
179,968
153,959
Deferred tax
Origination and reversal of timing differences
(69,547)
11,578
Total tax charge
110,421
165,537
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2021
2020
£
£
Profit before taxation
1,277,603
693,793
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2020: 19.00%)
242,745
131,821
Tax effect of expenses that are not deductible in determining taxable profit
3,177
Other permanent differences
(132,324)
30,539
Taxation charge for the year
110,421
165,537
8
Dividends
2021
2020
£
£
Final paid
2,400,000
SHORE LAMINATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 21 -
9
Tangible fixed assets
Leasehold land and buildings
Plant and machinery
Fixtures, fittings & equipment
Total
£
£
£
£
Cost
At 1 January 2021
265,382
2,160,159
435,451
2,860,992
Additions
5,984
189,267
213,174
408,425
At 31 December 2021
271,366
2,349,426
648,625
3,269,417
Depreciation and impairment
At 1 January 2021
39,526
1,405,601
187,116
1,632,243
Depreciation charged in the year
28,938
172,136
101,298
302,372
At 31 December 2021
68,464
1,577,737
288,414
1,934,615
Carrying amount
At 31 December 2021
202,902
771,689
360,211
1,334,802
At 31 December 2020
225,856
754,558
248,335
1,228,749
10
Stocks
2021
2020
£
£
Raw materials and consumables
1,425,401
1,167,853
Finished goods and goods for resale
2,136,505
956,755
3,561,906
2,124,608
11
Debtors
2021
2020
Amounts falling due within one year:
£
£
Trade debtors
4,104,413
2,426,498
Corporation tax recoverable
522,225
298,211
Amounts owed by group undertakings
250,000
Other debtors
1,945
Prepayments and accrued income
94,168
81,617
4,972,751
2,806,326
SHORE LAMINATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
11
Debtors
(Continued)
- 22 -
2021
2020
Amounts falling due after more than one year:
£
£
Deferred tax asset
57,970
Total debtors
5,030,721
2,806,326
12
Creditors: amounts falling due within one year
2021
2020
£
£
Trade creditors
1,803,863
1,585,965
Amounts owed to group undertakings
1,306,683
Taxation and social security
256,463
560,324
Other creditors
454
17,672
Accruals and deferred income
1,082,165
250,237
4,449,628
2,414,198
13
Creditors: amounts falling due after more than one year
2021
2020
Notes
£
£
Government grants
16
14,956
29,913
14
Security
There is a bond and floating charge over the assets of the company in favour of Royal Bank of Scotland.
SHORE LAMINATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 23 -
15
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
Assets
Assets
2021
2020
2021
2020
Balances:
£
£
£
£
Accelerated capital allowances
-
11,578
57,970
-
2021
Movements in the year:
£
Liability at 1 January 2021
11,578
Credit to profit or loss
(69,548)
Asset at 31 December 2021
(57,970)
The deferred tax asset set out above is expected to reverse in the future and relates to the timing difference on capital allowances.
16
Government grants
2021
2020
£
£
Arising from government grants
14,956
29,913
17
Retirement benefit schemes
2021
2020
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
27,614
25,975
The company operates a defined contribution pension scheme for all qualifying employees.
The assets of the scheme are held separately from those of the company in an independently administered fund.
18
Share capital
2021
2020
2021
2020
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of £1 each
20,100
20,100
20,100
20,100
SHORE LAMINATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 24 -
19
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2021
2020
£
£
Within one year
242,000
247,723
Between two and five years
968,000
968,000
In over five years
726,000
968,000
1,936,000
2,183,723
20
Ultimate controlling party
The immediate parent company is Wilsonart Limited, incorporated in England and Wales. The immediate parent company of Wilsonart Limited is Wilson
art
International Holdings Sarl, a company incorporated in Luxembourg. The smallest group of which Shore Laminates Limited is a member which produces consolidated financial statements is Wilsonart LLC, incorporated in the USA. The financial statements of Wilsonart LLC are publicly available and can be obtained from Wilsonart LLC, 13413 Galleria Circle, Suite 200, Austin, Texas, USA, 78738 which is also the registered office.
In the opinion of the directors, the ultimate controlling party is Clayton Dubilier & Rice (private equity) investors, who owns 51% of Wilsonart International Holdings LLC.
21
Cash generated from operations
2021
2020
£
£
Profit for the year after tax
1,167,182
528,256
Adjustments for:
Taxation charged
110,421
165,537
Investment income
(3)
(235)
(Gain)/loss on disposal of tangible fixed assets
(558)
7,774
Depreciation and impairment of tangible fixed assets
302,372
270,605
Movements in working capital:
Increase in stocks
(1,437,298)
(521,705)
(Increase)/decrease in debtors
(1,942,411)
788,037
Increase in creditors
2,035,430
561,859
Decrease in deferred income
(14,957)
(14,956)
Cash generated from operations
220,178
1,785,172
SHORE LAMINATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 25 -
22
Analysis of changes in net funds
1 January 2021
Cash flows
31 December 2021
£
£
£
Cash at bank and in hand
1,121,277
(591,669)
529,608
2021-12-31
2021-01-01
false
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