Oaklands Plastics Limited - Limited company accounts 22.3

REGISTERED NUMBER: 02802626 (England and Wales)

STRATEGIC REPORT,

REPORT OF THE DIRECTOR AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MAY 2022

FOR

OAKLANDS PLASTICS LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Director

3

Report of the Independent Auditors

4

Income Statement

6

Other Comprehensive Income

7

Balance Sheet

8

Statement of Changes in Equity

9

Notes to the Financial Statements

10

DIRECTOR:

K Tudor

REGISTERED OFFICE:

Unit 64

Station Road

Coleshill

Birmingham

West Midlands

B46 1HT

REGISTERED NUMBER:

02802626 (England and Wales)

AUDITORS:

SFB Group Limited

Chartered Accountants

Statutory Auditor

Manor Court Chambers

Townsend Drive

Nuneaton

Warwickshire

CV11 6RU

The director presents his strategic report for the year ended 31 May 2022.

REVIEW OF BUSINESS

Our first class product range and acknowledged expertise in the plastics industry has put us among the top rotational moulders in the UK. This has led to rapid growth which through continued investment has led us to establish new product designs for our key market sectors.

The company has had another profitable year, and the director is please with the results generated.

Sales growth remains important for the company and the continued investment in research and development will continue in the new financial year. The company has continued to make investments in new plant and machinery, spending £140,866 in 2022 (2021:£74,822). The director regards this as essential for continued long term business success and hope to be able to gain further new business in the years ahead by maintaining this approach.

As at 31 May 2022, the net assets of the company were £9,671,150 (2021: £9,052,642) which represents a 7% increase from the previous year.

PRINCIPAL RISKS AND UNCERTAINTIES

The board believes that the following are the principal risk factors affecting the company and the market in which it operates:

- Significant polymer price volatility;

- Significant adverse changes in environmental legislation;

- Unpredictability surrounding supply chains.

The above risks are monitored by the board and can all be mitigated by timely and prudent management.

Financial key performance indicators

The main key performance indicator has been identified as gross margin, which has fallen on the prior year at 19.4% (2021 - 26.8%). Other indicators considered are turnover, operating profit and cashflow. In the last year the director is satisfied with the performance in these areas, whilst recognisiing that further improvements are always possible.

ON BEHALF OF THE BOARD:

K Tudor - Director

21 February 2023

The director presents his report with the financial statements of the company for the year ended 31 May 2022.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of moulding of plastic products and the manufacture of high quality plastics products for the construction, traffic management and water management industries.

DIVIDENDS

The total distribution of dividends for the year ended 31 May 2022 will be £ 226,689 .

DIRECTOR

M T White held office from 1 June 2021 until after 31 May 2022 but prior to the date of this report.

K Tudor was appointed as a director after 31 May 2022 but prior to the date of this report.

STATEMENT OF DIRECTOR'S RESPONSIBILITIES

The director is responsible for preparing the Strategic Report, the Report of the Director and the financial statements in accordance with applicable law and regulations.

Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is 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 director is required to:

-	select suitable accounting policies and then apply them consistently;

-	make judgements and accounting estimates that are reasonable and prudent;

-	prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The director is 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 him to ensure that the financial statements comply with the Companies Act 2006. He is 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.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the director is aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and he has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS

The auditors, SFB Group Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

K Tudor - Director

21 February 2023

Opinion

We have audited the financial statements of Oaklands Plastics Limited (the 'company') for the year ended 31 May 2022 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 31 May 2022 and of its profit for the year then ended;

-	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

-	have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' 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 director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the 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 director with respect to going concern are described in the relevant sections of this report.

Other information

The director is responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Director, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether 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 the audit:

-	the information given in the Strategic Report and the Report of the Director for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Strategic Report and the Report of the Director have been prepared in accordance with applicable legal requirements.

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 identified material misstatements in the Strategic Report or the Report of the Director.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

-	adequate accounting records have not been kept, 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 director's remuneration specified by law are not made; or

-	we have not received all the information and explanations we require for our audit.

Responsibilities of director

As explained more fully in the Statement of Director's Responsibilities set out on page three, the director is 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 director determines 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 director is 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 director either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so.

Auditors' 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 a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

- The engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws;

- Enquiry of management around actual and potential litigation and claims;

- Enquiry of management to identify any instances of non-compliance with laws and regulations;

- We reviewed correspondence with legal and regulatory bodies where applicable;

- We agreed the financial statements disclosures to underlying supporting documentation

- We reviewed the detail of certain nominal accounts for indications of management override;

- We gained an understanding of the design and implementation of the processes and controls in place within the group which are designed to prevent, detect or correct fraud or error within the financial statements

- We challenged the accounting treatment applied in respect of revenue recognised during the year, in particular in relation to manual adjustments made to revenue, cut off between accounting periods;

- We identified and tested journal entries which we considered to be unusual and me be indicative of bias on the part of management or those charged with governance, investigating the rationale behind significant or unusual transactions.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. This risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors 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.

Mr Paul Carvell BFP FCA (Senior Statutory Auditor)

for and on behalf of SFB Group Limited

Chartered Accountants

Statutory Auditor

Manor Court Chambers

Townsend Drive

Nuneaton

Warwickshire

CV11 6RU

21 February 2023

TURNOVER

3

14,882,704

14,127,974

Other operating income

-

24,430

14,882,704

14,152,404

Raw materials and consumables

8,272,164

6,917,826

Other external expenses

1,256,489

1,173,779

9,528,653

8,091,605

5,354,051

6,060,799

Staff costs

4

2,995,860

2,717,457

Depreciation

255,562

264,343

Other operating expenses

1,072,802

1,072,462

4,324,224

4,054,262

OPERATING PROFIT

5

1,029,827

2,006,537

Interest receivable and similar income

1,274

595

1,031,101

2,007,132

Interest payable and similar expenses

6

74,852

69,918

PROFIT BEFORE TAXATION

956,249

1,937,214

Tax on profit

7

111,052

364,051

PROFIT FOR THE FINANCIAL YEAR

845,197

1,573,163

PROFIT FOR THE YEAR

845,197

1,573,163

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

845,197

1,573,163

FIXED ASSETS

Tangible assets

9

1,043,570

1,158,266

Investments

10

214,645

214,645

1,258,215

1,372,911

CURRENT ASSETS

Stocks

11

569,656

199,000

Debtors

12

10,160,235

8,315,443

Cash at bank

863,466

1,976,958

11,593,357

10,491,401

CREDITORS

Amounts falling due within one year

13

3,003,943

2,621,130

NET CURRENT ASSETS

8,589,414

7,870,271

TOTAL ASSETS LESS CURRENT LIABILITIES

9,847,629

9,243,182

CREDITORS

Amounts falling due after more than one year

14

(73,299

)

(60,092

)

PROVISIONS FOR LIABILITIES

16

(103,180

)

(130,448

)

NET ASSETS

9,671,150

9,052,642

CAPITAL AND RESERVES

Called up share capital

17

2

2

Retained earnings

9,671,148

9,052,640

SHAREHOLDERS' FUNDS

9,671,150

9,052,642

The financial statements were approved by the director and authorised for issue on 21 February 2023 and were signed by:

K Tudor - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 June 2020

-

7,956,195

7,956,195

Changes in equity

Issue of share capital

2

-

2

Dividends

-

(476,718

)

(476,718

)

Total comprehensive income

-

1,573,163

1,573,163

Balance at 31 May 2021

2

9,052,640

9,052,642

Changes in equity

Dividends

-

(226,689

)

(226,689

)

Total comprehensive income

-

845,197

845,197

Balance at 31 May 2022

2

9,671,148

9,671,150

1.	STATUTORY INFORMATION

Oaklands Plastics Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These 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.

Financial Reporting Standard 102 - reduced disclosure exemptions

The company has taken advantage of the following disclosure exemption in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

•

the requirements of Section 7 Statement of Cash Flows.

Preparation of consolidated financial statements

The financial statements contain information about Oaklands Plastics Limited as an individual company and do not contain consolidated financial information as the parent of a group. The company is exempt under Section 400 of the Companies Act 2006 from the requirements to prepare consolidated financial statements as it and its subsidiary undertaking are included by full consolidation in the consolidated financial statements of its parent, Oaklands Group Holdings Ltd, who is registered in the United Kingdom..

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Long leasehold

-

Straight line over period of lease

Plant and machinery

-

25% on reducing balance

Fixtures and fittings

-

25% on reducing balance

Motor vehicles

-

25% on reducing balance

Government grants

Grants of a revenue nature are recognised in the profit and loss account in the same period as the related expenditure.

Investments in subsidiaries

Investment in subsidiaries are measured at cost less accumulated impairment.

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Hire purchase and leasing commitments

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

3.

TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the company.

An analysis of turnover by class of business is given below:

2022

2021

£

£

Moulding of plastic products

14,882,704

14,127,974

14,882,704

14,127,974

All turnover arose within the United Kingdom.

4.	EMPLOYEES AND DIRECTORS

2022

2021

£

£

Wages and salaries

2,652,536

2,409,687

Social security costs

280,763

242,332

Other pension costs

62,561

65,438

2,995,860

2,717,457

The average number of employees during the year was as follows:

2022

2021

Employees

79

77

2022

2021

£

£

Director's remuneration

30,564

32,120

Director's excess retirement benefits

6,600

3,700

The number of directors to whom retirement benefits were accruing was as follows:

Defined benefit schemes

1

1

5.	OPERATING PROFIT

The operating profit is stated after charging:

2022

2021

£

£

Hire of plant and machinery

11,336

3,300

Other operating leases

196,944

192,592

Depreciation - owned assets

235,895

262,397

Loss on disposal of fixed assets

19,667

1,946

Auditors' remuneration

20,000

23,520

6.

INTEREST PAYABLE AND SIMILAR EXPENSES

2022

2021

£

£

Other loan interest payable

64,851

62,596

Hire purchase

10,001

7,322

74,852

69,918

7.

TAXATION

Analysis of the tax charge

The tax charge on the profit for the year was as follows:

2022

2021

£

£

Current tax:

UK corporation tax

200,790

334,779

Prior year tax adjustment

(62,470

)

27,142

Total current tax

138,320

361,921

Deferred tax

(27,268

)

2,130

Tax on profit

111,052

364,051

UK corporation tax has been charged at 19% .

Reconciliation of total tax charge included in profit and loss

The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:

2022

2021

£

£

Profit before tax

956,249

1,937,214

Profit multiplied by the standard rate of corporation tax in the UK of 19% (2021 - 19%)

181,687

368,071

Effects of:

Adjustments to tax charge in respect of previous periods

(62,470

)

(35,328

)

Adjustment to closing deferred tax rate

(8,165

)

31,308

Total tax charge

111,052

364,051

8.

DIVIDENDS

2022

2021

£

£

Interim

226,689

476,718

9.	TANGIBLE FIXED ASSETS

Fixtures

Long

Plant and

and

Motor

leasehold

machinery

fittings

vehicles

Totals

£

£

£

£

£

COST

At 1 June 2021

411,316

3,220,017

38,571

205,384

3,875,288

Additions

-

47,896

5,031

87,939

140,866

Disposals

-

(193,127

)

(1,216

)

-

(194,343

)

At 31 May 2022

411,316

3,074,786

42,386

293,323

3,821,811

DEPRECIATION

At 1 June 2021

73,465

2,529,028

20,896

93,633

2,717,022

Charge for year

8,227

176,014

5,230

46,424

235,895

Eliminated on disposal

-

(173,659

)

(1,017

)

-

(174,676

)

At 31 May 2022

81,692

2,531,383

25,109

140,057

2,778,241

NET BOOK VALUE

At 31 May 2022

329,624

543,403

17,277

153,266

1,043,570

At 31 May 2021

337,851

690,989

17,675

111,751

1,158,266

The net book value of tangible fixed assets includes £ 203,228 (2021 - £ 203,228 ) in respect of assets held under hire purchase contracts.

10.	FIXED ASSET INVESTMENTS

Shares in

group

undertakings

£

COST

At 1 June 2021

and 31 May 2022

214,645

NET BOOK VALUE

At 31 May 2022

214,645

At 31 May 2021

214,645

The company's investments at the Balance Sheet date in the share capital of companies include the following:

Tank and Containers Group Limited

Registered office: Unit 64 Station Road, Coleshill, Warks, B46 1HT

Nature of business: Activities of head offices

%

Class of shares:

holding

Ordinary

100.00

On the 12 July 2022 the company was sold outside of the group to Tanks Nationwide Limited.

The registered office changed on 3 February 2023 to Unit A Lakeside Industrial Estate March Lane, Water Orton, Birmingham, B46 1NS.

Oaklands Environmental Limited

Registered office: Unit 64 Station Road, Coleshill, Warks, B46 1HT

Nature of business: Manufacture of other plastic products

%

Class of shares:

holding

Ordinary

100.00

On the 12 July 2022 the company was sold outside of the group to Tanks Nationwide Limited.

The registered office changed on 3 February 2023 to Unit A Lakeside Industrial Estate March Lane, Water Orton, Birmingham, B46 1NS.

Oaklands Building Supplies Limited

Registered office: Station Road, Coleshill, Birmingham, B46 1HT

Nature of business: Agents involved in the sale of timber

%

Class of shares:

holding

Ordinary

100.00

11.

STOCKS

2022

2021

£

£

Raw materials and consumables

361,087

199,000

Finished goods

208,569

-

569,656

199,000

12.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2022

2021

£

£

Trade debtors

3,830,983

3,185,935

Amounts owed by group undertakings

5,562,298

4,773,247

Other debtors

23,457

23,457

Directors' current accounts

539,207

178,814

Prepayments and accrued income

204,290

153,990

10,160,235

8,315,443

13.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2022

2021

£

£

Hire purchase contracts (see note 15)

18,925

47,972

Trade creditors

2,366,404

1,818,623

Tax

14,760

173,013

Social security and other taxes

72,873

53,170

VAT

122,558

345,963

Other creditors

23,609

19,525

Accruals and deferred income

384,814

162,864

3,003,943

2,621,130

Loan notes held in the company's immediate parent undertaking and ultimate parent undertaking are secured by way of a debentures over all the freehold and leasehold properties of the company.

14.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2022

2021

£

£

Hire purchase contracts (see note 15)

73,299

60,092

The obligations under finance lease and hire purchase contracts are secured over the assets to which they agreements relate.

15.	LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase contracts

2022

2021

£

£

Net obligations repayable:

Within one year

18,925

47,972

Between one and five years

73,299

60,092

92,224

108,064

At 31 May 2022 the company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

Non-cancellable operating

leases

2022

2021

£

£

Within one year

69,535

69,535

Between one and five years

110,097

179,632

179,632

249,167