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Registration number: 05887845

Sutton's Packaging Limited

Filleted Financial Statements

for the Year Ended 31 December 2021

 

Sutton's Packaging Limited
(Registration number: 05887845)

Contents

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3 to 10

 

Sutton's Packaging Limited
(Registration number: 05887845)

Company Information

Directors

Mr A M Kaupang

Mr T E Seljaas

Mr L D Summers

Company secretary

Mr T E Seljaas

Registered office

28 Alexandra Terrace
Exmouth
Devon
EX8 1BD

Auditors

Thompson Jenner LLP
Statutory Auditors
28 Alexandra Terrace
Exmouth
Devon
EX8 1BD

 

Sutton's Packaging Limited
(Registration number: 05887845)

Balance Sheet as at 31 December 2021

Note

2021
£

2020
£

Fixed assets

 

Tangible assets

5

2,748

7,381

Current assets

 

Stocks

6

175,801

182,847

Debtors

7

99,846

338,335

Cash at bank and in hand

 

249,132

285,295

 

524,779

806,477

Creditors: Amounts falling due within one year

8

(271,365)

(411,582)

Net current assets

 

253,414

394,895

Total assets less current liabilities

 

256,162

402,276

Creditors: Amounts falling due after more than one year

8

(34,167)

(44,167)

Provisions for liabilities

(523)

(1,403)

Net assets

 

221,472

356,706

Capital and reserves

 

Called up share capital

100

100

Profit and loss account

221,372

356,606

Total equity

 

221,472

356,706

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime and the option not to file the Profit and Loss Account has been taken.

Approved and authorised by the Board on 6 July 2022 and signed on its behalf by:
 

.........................................
Mr A M Kaupang
Director

 

Sutton's Packaging Limited
(Registration number: 05887845)

Notes to the Financial Statements for the Year Ended 31 December 2021

1

General information

The company is a private company limited by share capital, incorporated in England & Wales.

The address of its registered office is:
28 Alexandra Terrace
Exmouth
Devon
EX8 1BD

The principal place of business is:
21/2 Dinan Way Trading Estate
Exmouth
Devon
EX8 4RS

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

Audit report

The Independent Auditors' Report was unqualified. The name of the Senior Statutory Auditor who signed the audit report on 7 July 2022 was Mr Ruskin Wilson, who signed for and on behalf of Thompson Jenner LLP.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.

The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.

 

Sutton's Packaging Limited
(Registration number: 05887845)

Notes to the Financial Statements for the Year Ended 31 December 2021

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Deferred income tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements and on unused tax losses or tax credits in the company. Deferred income tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Plant and machinery

25% straight line

Fixtures and fittings

25% straight line

Goodwill

Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the company’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each reporting period date. Goodwill is amortised over its useful life, which shall not exceed ten years if a reliable estimate of the useful life cannot be made.

Amortisation

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:

Asset class

Amortisation method and rate

Goodwill

10% straight line

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

 

Sutton's Packaging Limited
(Registration number: 05887845)

Notes to the Financial Statements for the Year Ended 31 December 2021

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.

The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.

Trade creditors

Trade creditors 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 the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

 

Sutton's Packaging Limited
(Registration number: 05887845)

Notes to the Financial Statements for the Year Ended 31 December 2021

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Profit and Loss Account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Dividends

Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

3

Staff numbers

The average number of persons employed by the company (including directors) during the year, was 3 (2020 - 3).

 

Sutton's Packaging Limited
(Registration number: 05887845)

Notes to the Financial Statements for the Year Ended 31 December 2021

4

Intangible assets

Goodwill
 £

Total
£

Cost or valuation

At 1 January 2021

75,000

75,000

Disposals

(75,000)

(75,000)

At 31 December 2021

-

-

Amortisation

At 1 January 2021

75,000

75,000

Amortisation eliminated on disposals

(75,000)

(75,000)

At 31 December 2021

-

-

Carrying amount

At 31 December 2021

-

-

At 31 December 2020

-

-

5

Tangible assets

Fixtures and fittings
 £

Plant and machinery
 £

Total
£

Cost or valuation

At 1 January 2021

53,836

34,930

88,766

At 31 December 2021

53,836

34,930

88,766

Depreciation

At 1 January 2021

49,551

31,834

81,385

Charge for the year

3,542

1,091

4,633

At 31 December 2021

53,093

32,925

86,018

Carrying amount

At 31 December 2021

743

2,005

2,748

At 31 December 2020

4,285

3,096

7,381

 

Sutton's Packaging Limited
(Registration number: 05887845)

Notes to the Financial Statements for the Year Ended 31 December 2021

6

Stocks

2021
£

2020
£

Finished goods and goods for resale

147,797

139,091

Goods in transit

28,004

43,756

175,801

182,847

7

Debtors

2021
£

2020
£

Trade debtors

85,991

176,599

Amounts owed by group undertakings and undertakings in which the company has a participating interest

-

143,791

Other debtors

8,206

13,460

Prepayments and accrued income

5,649

4,485

Total current trade and other debtors

99,846

338,335

 

Sutton's Packaging Limited
(Registration number: 05887845)

Notes to the Financial Statements for the Year Ended 31 December 2021

8

Creditors

Note

2021
 £

2020
 £

Due within one year

 

Loans and borrowings

9

10,000

37,290

Trade creditors

 

187,278

321,919

Taxation and social security

 

29,893

21,302

Other creditors

 

44,194

31,071

 

271,365

411,582

Due after one year

 

Loans and borrowings

9

34,167

44,167

9

Loans and borrowings

2021
 £

2020
 £

Current loans and borrowings

Bank borrowings

10,000

5,833

Invoice discounting facility

-

31,457

10,000

37,290

Secured loans and borrowings
The above invoice discounting facility is secured by a fixed and floating charge over all assets of the company.

2021
£

2020
£

Non-current loans and borrowings

Bank borrowings

34,167

44,167

 

Sutton's Packaging Limited
(Registration number: 05887845)

Notes to the Financial Statements for the Year Ended 31 December 2021

10

Financial commitments, guarantees and contingencies

Amounts not provided for in the balance sheet

The total amount of guarantees not included in the balance sheet is £200,000 (2020 - £222,972). The company has provided a financial guarantee on bank loans provided to its parent company, Brown Brothers Group Limited. The loans are secured by way of a fixed and floating charge over all assets of the company.

Operating lease commitments

As at 31 December 2021 the company had annual commitments under non-cancellable operating leases totalling £20,062 (2020: £33,437). Of this amount, £13,375 (2020: £13,375) is due within 12 months.

11

Related party transactions

The company has taken advantage of the exemptions in FRS 102 Section 1A from disclosing transactions with other members of the group.

12

Parent and ultimate parent undertaking

The company's immediate parent is Brown Brothers Group Limited, incorporated in England & Wales.

 The ultimate parent is Norwegian Paper Holdings AS, incorporated in Norway.

 The most senior parent entity producing publicly available financial statements is Norwegian Paper Holdings AS. The ultimate controlling party is Mr A M Kaupang.

The parent of the largest group in which these financial statements are consolidated is Norwegian Paper Holdings AS, incorporated in Norway.

The address of Norwegian Paper Holdings AS is:

PB163, 48 91
Grimstad
Osterkogen 20, NO-4879
Grimstad
Norway