REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 JANUARY 2022 |
FOR |
FFP PACKAGING SOLUTIONS LIMITED |
REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 JANUARY 2022 |
FOR |
FFP PACKAGING SOLUTIONS LIMITED |
FFP PACKAGING SOLUTIONS LIMITED (REGISTERED NUMBER: 00893217) |
CONTENTS OF THE FINANCIAL STATEMENTS |
For The Year Ended 31 January 2022 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 4 |
Report of the Independent Auditors | 6 |
Statement of Comprehensive Income | 9 |
Balance Sheet | 10 |
Statement of Changes in Equity | 11 |
Cash Flow Statement | 12 |
Notes to the Cash Flow Statement | 13 |
Notes to the Financial Statements | 14 |
FFP PACKAGING SOLUTIONS LIMITED |
COMPANY INFORMATION |
For The Year Ended 31 January 2022 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
1 Rushmills |
Bedford Road |
Northampton |
Northamptonshire |
NN4 7YB |
FFP PACKAGING SOLUTIONS LIMITED (REGISTERED NUMBER: 00893217) |
STRATEGIC REPORT |
For The Year Ended 31 January 2022 |
The directors present their strategic report for the year ended 31 January 2022. |
PRINCIPAL ACTIVITIES |
The company continues to carry on the business of the conversion of flexible packaging materials for the food and allied industries. |
REVIEW OF BUSINESS AND FUTURE DEVELOPMENTS |
FFP had a strong trading financial year, mainly because of new product launches, delivering improved volume & sales. There does continue to be increased focus across the industry surrounding the use of plastics in packaging (Introduction of a Plastic Packaging Tax), however FFP are leading the way in facilitating the move towards more sustainable packaging choices, leveraging the firm's significant technical experience in this regard, with some new first to market recyclable products having been launched. |
Turnover increased by 38.2% to £26,213,219 (2021: £18,967,972). The increase in turnover came as a direct result of both improved organic growth from current customers, but also new business wins, which have been driven by the launch of some significant new sustainable products. This turnover growth has delivered increased Gross Profit, along with improving both labour & overhead recovery rates, ensuring the company reported a profit before tax of £900,000 (2021 : £825,731), which after tax adjustments was a profit of £1,009,234 (2021 : £610,275). |
With the new products launched, further NPD development in the pipeline, new business wins and the continued investment in capital expenditure and R&D, the company is in a strong position to deliver future sales growth, along with improved margins, whilst also maintaining customer retention and defending against external competition. |
It is the directors' intention that capital investment will be sustained as required to facilitate the continuing development of innovative products, designed to maintain competitive advantage for our customers in our chosen strategic areas. This is with an increasing focus on providing more sustainable packaging solutions and further developing our offering to high temperature applications. The company continues to invest in research and development activities to ensure that it maintains its reputation as an innovator in its chosen sectors within the flexible packaging industry. |
Flexible packaging continues to provide a cost-effective method of preserving, protecting and presenting food and related products, when compared to other packaging methods. As such, the company is well placed to respond to the challenges of the industry, whether driven by cost or functionality pressures. |
KEY PERFORMANCE INDICATORS |
Given the straightforward nature of the business, the directors are of the opinion that analysis using key performance indicators is not necessary for an understanding of the development, performance or position of the business. |
FFP PACKAGING SOLUTIONS LIMITED (REGISTERED NUMBER: 00893217) |
STRATEGIC REPORT |
For The Year Ended 31 January 2022 |
PRINCIPAL RISKS AND UNCERTAINTIES |
The directors consider the principal risks to be as follows: |
Credit risk - The company's credit risk is primarily attributable to its trade debtors. Credit risk is managed by running credit checks on new and existing customers, covering trade debtors with credit insurance where available and by closely controlling payments against contractual agreements. |
Commodity pricing risk - The company is exposed to the risk of variations in the price of polymers, which are linked to the price of crude oil. It is not possible to enter into forward contracts effectively to hedge the price of the company's base material costs. |
Cashflow - The company monitors cash flow as an important part of its day-to-day control procedures. The board considers cash flow projections on a monthly basis and ensures that appropriate facilities are available to be utilised for both working capital and capital expenditure needs. |
Currency risk - The company makes purchases and sales in Euros at similar levels which creates a natural hedge against foreign exchange risks. |
ON BEHALF OF THE BOARD: |
FFP PACKAGING SOLUTIONS LIMITED (REGISTERED NUMBER: 00893217) |
REPORT OF THE DIRECTORS |
For The Year Ended 31 January 2022 |
The directors present their report with the financial statements of the company for the year ended 31 January 2022. |
DIVIDENDS |
No dividends will be distributed for the year ended 31 January 2022. |
RESEARCH AND DEVELOPMENT |
It is the directors' intention that capital investment will be sustained as required to facilitate the continuing development of innovative products, designed to maintain competitive advantage for our customers in our chosen strategic areas. This is with an increasing focus on providing more sustainable packaging solutions. The company continues to invest in research and development activities to ensure that it maintains its reputation as an innovator in its chosen sectors within the flexible packaging industry. |
FUTURE DEVELOPMENTS |
The directors continue to innovate, building on the company's existing customer portfolio and product range. |
EVENTS SINCE THE END OF THE YEAR |
Information relating to events since the end of the year is given in the notes to the financial statements. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 February 2021 to the date of this report. |
FINANCIAL INSTRUMENTS |
The company utilises various financial instruments including loans, cash and various items such as trade debtors and trade creditors that arise directly from its operations. The main purpose of these is to raise finance for the company's operations. The existence of these financial instruments exposes the company to a number of financial risks, which are described in more detail in the Strategic Report. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Strategic Report, the Report of the Directors 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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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; |
- | 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. |
FFP PACKAGING SOLUTIONS LIMITED (REGISTERED NUMBER: 00893217) |
REPORT OF THE DIRECTORS |
For The Year Ended 31 January 2022 |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are 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 each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
AUDITORS |
The auditors, Fortus Audit LLP, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
FFP PACKAGING SOLUTIONS LIMITED |
Opinion |
We have audited the financial statements of FFP Packaging Solutions Limited (the 'company') for the year ended 31 January 2022 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, 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 January 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 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. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, 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 Directors 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 Directors have been prepared in accordance with applicable legal requirements. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
FFP PACKAGING SOLUTIONS LIMITED |
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 Directors. |
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 directors' 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 Statement of Directors' Responsibilities set out on page four, 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 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. |
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: |
o We obtained an understanding of the legal and regulatory frameworks that are applicable to the company and determined that the most significant frameworks which are directly relevant so specific assertions in the financial statements are those that relate to the reporting framework (UK GAAP and the Companies Act 2006) and the relevant tax compliance regulations in the UK. |
o We understood how the company is complying with those frameworks by making enquiries of management and those responsible for legal and compliance procedures. We corroborated our enquiries through review of board minutes and discussions with those charged with governance. |
o We assess the susceptibility of the company's financial statements to material misstatement, including how fraud might occur, by discussion with management from various parts of the business to understand where they considered there was a susceptibility to fraud. We considered the procedures and controls that the company has established to prevent and detect fraud, and how these are monitored by management, and also any enhanced risk factors such as performance targets. |
o Based on our understanding, we designed our audit procedures to identify any non-compliance with laws and regulations identified in the paragraphs above. |
o We also performed audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias. |
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. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
FFP PACKAGING SOLUTIONS LIMITED |
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. |
for and on behalf of |
1 Rushmills |
Bedford Road |
Northampton |
Northamptonshire |
NN4 7YB |
FFP PACKAGING SOLUTIONS LIMITED (REGISTERED NUMBER: 00893217) |
STATEMENT OF COMPREHENSIVE |
INCOME |
For The Year Ended 31 January 2022 |
2022 | 2021 |
Notes | £ | £ |
TURNOVER | 3 |
Cost of sales |
GROSS PROFIT |
Administrative expenses |
1,015,395 | (757,496 | ) |
Other operating income |
1,015,395 | (729,039 | ) |
Interest receivable and similar income | 5 |
1,015,400 | (729,032 | ) |
Interest payable and similar expenses | 6 |
PROFIT/(LOSS) BEFORE TAXATION | 7 | ( |
) |
Tax on profit/(loss) | 8 | ( |
) | ( |
) |
PROFIT/(LOSS) FOR THE FINANCIAL YEAR | ( |
) |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
( |
) |
FFP PACKAGING SOLUTIONS LIMITED (REGISTERED NUMBER: 00893217) |
BALANCE SHEET |
31 January 2022 |
2022 | 2021 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 9 |
CURRENT ASSETS |
Stocks | 10 |
Debtors | 11 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 12 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
13 |
( |
) |
( |
) |
PROVISIONS FOR LIABILITIES | 16 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 17 |
Share premium | 18 |
Capital redemption reserve | 18 |
Retained earnings | 18 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
FFP PACKAGING SOLUTIONS LIMITED (REGISTERED NUMBER: 00893217) |
STATEMENT OF CHANGES IN EQUITY |
For The Year Ended 31 January 2022 |
Called up | Capital |
share | Retained | Share | redemption | Total |
capital | earnings | premium | reserve | equity |
£ | £ | £ | £ | £ |
Balance at 1 February 2020 |
Changes in equity |
Total comprehensive income | - | ( |
) | - | ( |
) |
Balance at 31 January 2021 |
Changes in equity |
Total comprehensive income | - | - |
Balance at 31 January 2022 |
FFP PACKAGING SOLUTIONS LIMITED (REGISTERED NUMBER: 00893217) |
CASH FLOW STATEMENT |
For The Year Ended 31 January 2022 |
2022 | 2021 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 |
Interest paid | ( |
) | ( |
) |
Interest element of hire purchase payments paid |
( |
) |
( |
) |
Tax paid |
Net cash from operating activities |
Cash flows from investing activities |
Purchase of tangible fixed assets | ( |
) | ( |
) |
Sale of tangible fixed assets |
Interest received |
Net cash from investing activities | ( |
) | ( |
) |
Cash flows from financing activities |
New loans in year |
Loan repayments in year | ( |
) |
New finance leases in year | 1,305,809 | 640,205 |
Capital repayments in year | ( |
) | ( |
) |
Net cash from financing activities | ( |
) |
(Decrease)/increase in cash and cash equivalents | ( |
) |
Cash and cash equivalents at beginning of year |
2 |
21,226 |
Cash and cash equivalents at end of year |
2 |
157,135 |
733,540 |
FFP PACKAGING SOLUTIONS LIMITED (REGISTERED NUMBER: 00893217) |
NOTES TO THE CASH FLOW STATEMENT |
For The Year Ended 31 January 2022 |
1. | RECONCILIATION OF PROFIT/(LOSS) BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2022 | 2021 |
£ | £ |
Profit/(loss) before taxation | ( |
) |
Depreciation charges |
Profit on disposal of fixed assets | ( |
) |
Finance costs | 115,400 | 96,699 |
Finance income | (5 | ) | (7 | ) |
1,887,289 | 121,442 |
Increase in stocks | ( |
) | ( |
) |
Increase in trade and other debtors | ( |
) | ( |
) |
Increase in trade and other creditors |
Cash generated from operations |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 31 January 2022 |
31.1.22 | 1.2.21 |
£ | £ |
Cash and cash equivalents | 157,135 | 733,540 |
Year ended 31 January 2021 |
31.1.21 | 1.2.20 |
£ | £ |
Cash and cash equivalents | 733,540 | 21,226 |
3. | ANALYSIS OF CHANGES IN NET DEBT |
At 1.2.21 | Cash flow | At 31.1.22 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 733,540 | (576,405 | ) | 157,135 |
733,540 | ( |
) | 157,135 |
Debt |
Finance leases | (1,887,769 | ) | (138,408 | ) | (2,026,177 | ) |
Debts falling due within 1 year | (167,500 | ) | 137,500 | (30,000 | ) |
Debts falling due after 1 year | (132,500 | ) | 27,500 | (105,000 | ) |
(2,187,769 | ) | 26,592 | (2,161,177 | ) |
Total | (1,454,229 | ) | (549,813 | ) | (2,004,042 | ) |
FFP PACKAGING SOLUTIONS LIMITED (REGISTERED NUMBER: 00893217) |
NOTES TO THE FINANCIAL STATEMENTS |
For The Year Ended 31 January 2022 |
1. | STATUTORY INFORMATION |
FFP Packaging Solutions Limited is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Significant judgements and estimates |
Preparation of the financial statements requires management to make significant judgements and the items in the financial statements where these judgements and estimates have been made include: |
• Estimates of the useful economic lives of tangible fixed assets |
The useful economic lives used by the Company in respect of tangible fixed assets are set out in the accounting policy. These estimates are the best estimate based on past experience and regular reviews to ensure they remain appropriate. |
• Provisions against stock |
This is estimated by management based on slow moving and obsolete stock items. Management's judgement is exercised in this area by use of their historical knowledge of the business and their customer base. |
• Standard cost valuation for stock |
The Company uses the standard cost approach when valuing their stock, assessing each item on an individual basis. Management uses their knowledge in order to best estimate the appropriate proportion of labour and overheads by which should be allocated to each stock item at year end. |
Turnover |
Turnover is the revenue arising from the sales of goods and services. It is stated at the fair value of the consideration receivable, net of value added tax, rebates and discounts. |
Revenue from the sale of goods is recognised when significant risks and benefits of ownership of the product have transferred to the buyer, which may be upon shipment, completion of the product or the product being ready for delivery, based on specific contract terms. |
Tangible fixed assets |
Short leasehold | - |
Plant and machinery | - |
Government grants |
Government grants relating to the Coronavirus Job Retention Scheme are recognised in income in the period in which it becomes receivable under the performance model |
FFP PACKAGING SOLUTIONS LIMITED (REGISTERED NUMBER: 00893217) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
For The Year Ended 31 January 2022 |
2. | ACCOUNTING POLICIES - continued |
Stock and work in progress |
Stocks and work in progress are stated at the lower of cost and net realisable value. In general, cost is determined on an average cost basis and includes transport and handling costs. In the case of manufactured products, cost includes all direct expenditure and production overheads based on the normal level of activity. Net realisable value is the price at which stock can be realised in the normal course of business after allowing for the costs of realisation and, where appropriate, the cost of conversion from its existing state to a finished condition. Where necessary, provision is made for obsolescent, slow moving and defective stocks. |
Financial instruments |
Basic financial assets, including trade and other receivables and cash and bank balances, are initially recognised at transaction price, 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.Such assets are subsequently carried at amortised cost using the effective interest method. |
At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. 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. |
Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party or (c) despite having retained some significant risks and rewards of ownership, control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions. |
Basic financial liabilities, including trade and other payables and loans, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. |
Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts 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 payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method. |
Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires. |
Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, 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. |
FFP PACKAGING SOLUTIONS LIMITED (REGISTERED NUMBER: 00893217) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
For The Year Ended 31 January 2022 |
2. | ACCOUNTING POLICIES - continued |
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. |
Research and development |
Expenditure on research and development is written off in the year in which it is incurred. |
Foreign currencies |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result. |
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. |
Going concern |
The directors have considered the impact of COVID-19 in relation to their assessment of going concern and in their opinion have taken all reasonable steps to mitigate these factors. As at the point of authorising the accounts, and for the foreseeable future, the directors consider the going concern assumption to still be appropriate. The directors acknowledge that given the currently rapidly changing business and social environment, there are likely to be significant unknown factors which may present themselves. Such factors are considered by the directors to represent a general inherent level of risk in relation to the going concern assumption albeit not quantifiable at this time. |
Share options |
The company operates a share option scheme, under which it makes equity-settled share-based payments to certain directors and employees. The fair value has been determined with reference to dividend yield. |
The fair value liability has not been recognised in the financial statements on the grounds that the directors consider the value to be immaterial. |
FFP PACKAGING SOLUTIONS LIMITED (REGISTERED NUMBER: 00893217) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
For The Year Ended 31 January 2022 |
3. | TURNOVER |
The turnover and profit (2021 - loss) before taxation are attributable to the one principal activity of the company. |
An analysis of turnover by geographical market is given below: |
2022 | 2021 |
£ | £ |
United Kingdom |
Europe |
Rest of world | 758,350 | 687,089 |
4. | EMPLOYEES AND DIRECTORS |
2022 | 2021 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
The average number of employees during the year was as follows: |
2022 | 2021 |
Production | 96 | 95 |
Selling and distribution | 12 | 10 |
Administration | 12 | 12 |
2022 | 2021 |
£ | £ |
Directors' remuneration |
Directors' pension contributions to money purchase schemes |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes |
Information regarding the highest paid director is as follows: |
2022 | 2021 |
£ | £ |
Emoluments etc |
Pension contributions to money purchase schemes |
FFP PACKAGING SOLUTIONS LIMITED (REGISTERED NUMBER: 00893217) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
For The Year Ended 31 January 2022 |
5. | INTEREST RECEIVABLE AND SIMILAR INCOME |
2022 | 2021 |
£ | £ |
Deposit account interest |
Interest income is recognised in the profit and loss account in the period in which it arises. |
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2022 | 2021 |
£ | £ |
Bank interest |
Hire purchase |
Interest payable is charged to the profit and loss account in the period in which it is incurred. |
7. | PROFIT/(LOSS) BEFORE TAXATION |
The profit (2021 - loss) is stated after charging/(crediting): |
2022 | 2021 |
£ | £ |
Depreciation - owned assets |
Profit on disposal of fixed assets | ( |
) |
Auditors' remuneration |
Auditors remuneration - Non audit services |
8. | TAXATION |
Analysis of the tax credit |
The tax credit on the profit for the year was as follows: |
2022 | 2021 |
£ | £ |
Current tax: |
UK corporation tax | ( |
) | ( |
) |
Tax on profit/(loss) | ( |
) | ( |
) |
UK corporation tax has been charged at 19% . |
FFP PACKAGING SOLUTIONS LIMITED (REGISTERED NUMBER: 00893217) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
For The Year Ended 31 January 2022 |
8. | TAXATION - continued |
Reconciliation of total tax credit 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/(loss) before tax | ( |
) |
Profit/(loss) multiplied by the standard rate of corporation tax in the UK of |
( |
) |
Effects of: |
Expenses not deductible for tax purposes | ( |
) |
Fixed asset differences | 7,065 | 8,441 |
Additional deduction for R&D expenditure | (176,018 | ) | (159,573 | ) |
Surrender of tax losses for R&D tax credit refund | 33,900 | 66,866 |
Deferred taxation movements | (117,008 | ) | 17,483 |
Super deduction | (26,802 | ) | - |
Total tax credit | (109,234 | ) | (215,456 | ) |
At Spring Budget 2021, the government announced an increase in the Corporation Tax main rate from 19% to 25% for companies with profits over £250,000. There is a small company rate of 19% for taxable profits under £50,000 and marginal relief available for profits falling between £50,000 - £250,000 with effect from 1 April 2023. Deferred tax has therefore been calculated at the future rate of 25%. |
The company has taxable losses of £3,133,055 (2021: £3,133,055) available for carry forward against future trading profits. |
9. | TANGIBLE FIXED ASSETS |
Short | Plant and |
leasehold | machinery | Totals |
£ | £ | £ |
COST |
At 1 February 2021 |
Additions |
Disposals | ( |
) | ( |
) | ( |
) |
At 31 January 2022 |
DEPRECIATION |
At 1 February 2021 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) | ( |
) |
At 31 January 2022 |
NET BOOK VALUE |
At 31 January 2022 |
At 31 January 2021 |
FFP PACKAGING SOLUTIONS LIMITED (REGISTERED NUMBER: 00893217) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
For The Year Ended 31 January 2022 |
9. | TANGIBLE FIXED ASSETS - continued |
The net book value of assets held under finance leases or hire purchase contracts included in the above is £2,115,640 (2021: £2,573,533). |
Depreciation charged on these assets during the year was £304,922 (2021: £272,136). |
10. | STOCKS |
2022 | 2021 |
£ | £ |
Stocks |
Work-in-progress |
Finished goods |
Other stock | 182,264 | 188,407 |
11. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2022 | 2021 |
£ | £ |
Trade debtors |
Other debtors |
Deferred tax asset | 694,471 | 414,560 |
Tax |
Prepayments and accrued income |
12. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2022 | 2021 |
£ | £ |
Bank loans and overdrafts (see note 14) |
Hire purchase contracts (see note 15) |
Trade creditors |
Social security and other taxes |
VAT | 606,140 | 1,077,895 |
Other creditors |
Accruals and deferred income |
The bank loans are secured by a fixed and floating charge over all the assets of the company. |
Hire purchase liabilities are secured against the assets to which they relate. |
Within other creditors is an invoice financing facility creditor of £3,337,342 (2021: £3,564,286). This is secured over the trade debtors balance and other assets of the company. |
13. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
2022 | 2021 |
£ | £ |
Bank loans (see note 14) |
Hire purchase contracts (see note 15) |
FFP PACKAGING SOLUTIONS LIMITED (REGISTERED NUMBER: 00893217) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
For The Year Ended 31 January 2022 |
14. | LOANS |
An analysis of the maturity of loans is given below: |
2022 | 2021 |
£ | £ |
Amounts falling due within one year or on demand: |
Bank loans |
Amounts falling due between one and two years: |
Bank loans - 1-2 years |
Amounts falling due between two and five years: |
Bank loans - 2-5 years |
15. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Hire purchase contracts |
2022 | 2021 |
£ | £ |
Net obligations repayable: |
Within one year |
Between one and five years |
Non-cancellable | operating leases |
2022 | 2021 |
£ | £ |
Within one year |
Between one and five years |
16. | PROVISIONS FOR LIABILITIES |
2022 | 2021 |
£ | £ |
Deferred tax | 694,471 | 414,560 |
Deferred |
tax |
£ |
Balance at 1 February 2021 |
Movement in the year | 279,911 |
Balance at 31 January 2022 |
FFP PACKAGING SOLUTIONS LIMITED (REGISTERED NUMBER: 00893217) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
For The Year Ended 31 January 2022 |
17. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2022 | 2021 |
value: | £ | £ |
Ordinary shares | 0.1 | 205,658 | 205,658 |
18. | RESERVES |
Capital |
Retained | Share | redemption |
earnings | premium | reserve | Totals |
£ | £ | £ | £ |
At 1 February 2021 | 3,631,835 |
Profit for the year |
At 31 January 2022 | 4,641,069 |
Called up share capital - Represents the nominal value of shares that have been issued. |
Share premium account - Includes any premiums received on issue of share capital. Any transaction costs associated with the issuing of shares are deducted from share premium. The balance on the share premium account may not be distributed legally under section 830 of the Companies Act 2006. |
Capital redemption reserve - The reserve records the nominal value of shares repurchased by the company. |
Profit and loss account - Includes all current and prior period retained profits and losses. |
19. | PENSION COMMITMENTS |
The company operates a group personal pension scheme where the benefits are based on the money purchase principle. The assets are held be each individual member in defined pension policies. The pension costs charge represents contributions payable by the company to the scheme and amounted to £225,727 (2021: £234,682). At the year end the outstanding were £20,004 (2021: £25,588). |
20. | CONTINGENT LIABILITIES |
The company has a £50,000 (2021: £50,000) recourse guarantee to H M Revenue and Customs. |
21. | RELATED PARTY DISCLOSURES |
During the year ended 31 January 2022, there have been no related party transactions that require disclosure in the financial statements. |
During the year, a total of key management personnel compensation of £ |
The company considers the Key Management Personnel to be the directors of the business |
22. | POST BALANCE SHEET EVENTS |
The Company has entered into a new operating lease for the Company premises since year end. The total liability in respect of this is £5,000,000 over a 10 year contract. |
FFP PACKAGING SOLUTIONS LIMITED (REGISTERED NUMBER: 00893217) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
For The Year Ended 31 January 2022 |
23. | ULTIMATE CONTROLLING PARTY |
The ultimate controlling party was R W Chudley by virtue of his shareholding. |
24. | SHARE-BASED PAYMENT TRANSACTIONS |
The company has granted options to certain directors and employees in respect of ordinary 10p shares under an Enterprise Management Scheme. |
The options are settled in equity once exercised. The period when exercisable may be overruled by a significant change in the ownership of the company's share capital. |
Movements in the turnover of share options outstanding and their related weighted average exercise prices are as follows: |
2022 weighted average exercise price per share | 2022numbe r | 2021 weighted average exercise price per share | 2021numb er |
Outstanding at the beginning of the year | 0.64 | 222,000 | 0.63 | 243,000 |
Granted | - | 28,000 | - | - |
Lapsed | - | - | - | (21,000 | ) |
Outstanding at the end of the year | 0.63 | 250,000 | 0.64 | 222,000 |
The expiry of the options granted are as follows: |
Weighted average exercise price per share | 2022number | 2021numbe r |
1 February 2028 | 0.62 | 177,000 | 177,000 |
26 November 2028 | 0.67 | 5,000 | 5,000 |
5 December 2029 | 0.68 | 40,000 | 40,000 |
11 June 2031 | 0.60 | 28,000 | - |
At year end | 0.63 | 250,000 | 222,000 |
Management estimated the value of the options granted in prior periods based on dividend yield. The fair value of the liability has not been recognised in the financial statements on the grounds that the directors consider the value to be immaterial. |