REGISTERED NUMBER: |
Strategic Report, Directors' Report and |
Financial Statements for the Year Ended 31 January 2023 |
for |
P. & F. Safepac Co. Limited |
REGISTERED NUMBER: |
Strategic Report, Directors' Report and |
Financial Statements for the Year Ended 31 January 2023 |
for |
P. & F. Safepac Co. Limited |
P. & F. Safepac Co. Limited (Registered number: 00872451) |
Contents of the Financial Statements |
for the Year Ended 31 January 2023 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Directors' Report | 4 |
Report of the Independent Auditors | 7 |
Statement of Comprehensive Income | 11 |
Balance Sheet | 12 |
Statement of Changes in Equity | 13 |
Cash Flow Statement | 14 |
Notes to the Cash Flow Statement | 15 |
Notes to the Financial Statements | 17 |
P. & F. Safepac Co. Limited |
Company Information |
for the Year Ended 31 January 2023 |
Directors: |
Secretary: |
Registered office: |
Registered number: |
Auditors: |
Chartered accountants & statutory auditor |
22-26 King Street |
King's Lynn |
Norfolk |
PE30 1HJ |
Bankers: |
4 Tuesday Market Place |
King's Lynn |
PE30 1YY |
P. & F. Safepac Co. Limited (Registered number: 00872451) |
Strategic Report |
for the Year Ended 31 January 2023 |
The directors present their strategic report for the year ended 31 January 2023. |
Principal activities and business review |
The principal activity of the company continued to be that of packing and forwarding agents and will remain so for the foreseeable future. |
The financial results of the company for the year to 31 January 2023 are set out in the income statement on page 10 of these financial statements. |
Despite another challenging year for both the industry and the wider economy, the directors are satisfied with the performance of the company as it continues to show strong resilience. The company has continued to implement a programme of cost cutting initiatives during the year, where possible, to assist with profitability and help build up reserves, which is reflected in this years net profit figure and subsequent increase in reserves. |
Driving the performance is the increased sales across all aspects of the company's revenue mix, including it's smallest stream which has helped to reduce the reliance on the other revenue streams that are significantly linked to it's eminent location close to several USAF bases. The directors have actively been trying to diversify to mitigate any over reliance of revenue streams, so a more varied mix of revenue shows improvement in this area of focus and will continue with the aim to further diversify it's proportion of sales in each stream. |
The company intends to continue to develop both the UK and overseas markets in the coming years, and closely monitor costs to help alleviate the upward pressures on costs. |
The net asset position of the company at 31 January 2023 totalled £4,766,203 (2022: £3,606,878). |
Key performance indicators |
The company uses a range of performance measures to monitor and manage the business effectively, both financial and non-financial. The key performance indicators and their comparatives are as follows: |
2023 | 2022 | 2021 |
Gross profit margin | 22.89% | 22.01% | 16.25% |
Current ratio | 1.98 | 1.64 | 1.31 |
Net profit margin | 18.14% | 9.99% | 6.71% |
The improved gross profit margins over recent years reflects the consecutive growth achieved within turnover and the directors drive to become more efficient in it's operations, without compromising on customer service which remains to be at the forefront of it's business model. The directors assess the gross profit margins achieved on a regular basis and will continue to focus on minimising costs directly related to fulfilling it's sales orders so that it can withstand the upward pressures on it's costs resulting from inflation.. |
The current ratio has continued on it's upward trend, displaying the success of the directors working capital management strategies implemented over recent years in order to increase it's short term liquidity. |
Following on from the increased efficiencies achieved within its gross margins, the effective monitoring of general overheads throughout the year has helped to achieve a strong bottom line profit that has helped to boost reserves going into the next year which the directors anticipate will just as challenging as the last few years. |
P. & F. Safepac Co. Limited (Registered number: 00872451) |
Strategic Report |
for the Year Ended 31 January 2023 |
Principal risks and uncertainties |
The company is exposed to several risk factors which are closely monitored internally. |
A key risk facing the company is the volatility of the housing market. The UK housing market throughout the year has been strong, but remains a risk moving forward, especially in light of the cost of living crisis that has emerged within the UK. The company is able to react to fluctuations in the housing market and subsequent levels of demand, through employing staff on short term contracts and maintain fixed costs to an acceptable level. |
The USAF has announced the retention of staff for the foreseeable future at bases local to the company which will facilitate a continued trade in the overseas market. However, if this was not the case the company would expect to see significant demand for a 12-month period following withdrawal of USAF squadrons from the UK bases, followed by a period of reorganisation to fully focus on the UK packing and forwarding. |
The company faces continued uncertainties surrounding the United Kingdom's relationship with the European Union, since withdrawal of the UK from the EU. The fallout from Brexit continues to change the way in which imports and exports are dealt with for the UK, and increased rules and legislation has caused associated costs to increase. The company uses European contractors to move good around Europe, therefore uncertainties regarding trade deals remain a risk to the business during the coming year. |
Details of the company's procedures to manage liquidity risk, interest rate risk, foreign currency risk and credit risk are discussed in the Directors' report. |
Whilst recovery from COVID-19 continues to take shape, inflation has surged throughout the UK and this has seen unprecedented rises in energy costs and fuel prices; which will place pressure on the company's margins and overheads. Post the balance sheet date, inflation continued to increase leading to a cost of living crisis in the UK, which will have knock on effects to the housing market as uncertainty grows surrounding house prices and the rental market. This threatens to have a downward effect on the company's UK revenue streams. The directors will continue to actively monitor the associated risks surrounding these developments and implement strategies to react to any adverse impact on the business's performance. |
Future developments |
The directors remain positive about the business outlook over the next 12 months. Looking forward, there has been an active drive to monitor general overhead costs to ensure that they are maintained in line with the level of activity. |
The directors are confident the performance of the company can be consolidated and will continue to monitor performance to ensure profitability in future years. |
On behalf of the board: |
P. & F. Safepac Co. Limited (Registered number: 00872451) |
Directors' Report |
for the Year Ended 31 January 2023 |
The directors present their report with the financial statements of the company for the year ended 31 January 2023. |
Dividends |
The total distribution of dividends for the year ended 31 January 2023 will be £ |
Future developments |
Looking forward, the directors are hoping for another profitable year and believe they are well equipped to manage the associated risks arising from the continued effects of COVID-19 and the emerging cost of living crisis within the UK as a result ot the surge in inflation. Further details on such risks and the directors plans for mitigation can be found within the Strategic Report. |
Results |
The profit for the year, after taxation, amounted to £1,399,325 (2022: £635,949). |
Directors |
The directors shown below have held office during the whole of the period from 1 February 2022 to the date of this report. |
Financial instruments and financial risk management objectives and policies |
The company uses various financial instruments, including loans and cash, and items such as trade debtors and trade creditors that arise directly from its operations. The main purpose of these financial instruments are to finance the company's operations and capital projects. |
The existence of these financial instruments exposes the company to a number of financial risks which are described in more detail below. The main risks arising from the company's financial instruments are credit risk, currency risk, liquidity risk and interest rate risk. The directors review and agree policies for managing each of these risks and they are summarised below. The policies have remained unchanged from previous years. |
The company's principal financial instruments include derivative financial instruments, the purpose of which is to manage currency risks and interest rate risks arising from the company's activities, and bank overdrafts and loans, the main purpose of which is to raise finance for the company's operations. In addition, the company has various other financial assets and liabilities such as trade debtors and trade creditors arising directly from operations. |
Derivative transactions which the company enter into principally comprise forward exchange contracts. In accordance with the company's treasury policy, derivative instruments are not entered into for speculative purposes. |
P. & F. Safepac Co. Limited (Registered number: 00872451) |
Directors' Report |
for the Year Ended 31 January 2023 |
Credit risk |
Investments of cash surpluses, borrowings and derivative instruments are made through banks and which companies which must fulfil credit rating criteria approved by the board. The company monitors credit risk closely and considers that its current policies on credit checks meets its objective of managing exposure to credit risk. Trade debtors are reviewed on a regular basis and provision is made for doubtful debts when necessary. |
Foreign currency risk |
The company's principal foreign currency exposures arise from trading with overseas companies. The company policy permits but does not demand that these exposures may be hedged in order to fix the cost in sterling. This hedging activity involves the use of foreign exchange forward contracts. |
Liquidity risk |
The company manages its cash and borrowing requirements in order to minimise interest expense but not necessarily to maximise interest income, whilst ensuring the company has sufficient liquid resources to meet the operating needs of the business. |
Interest rate risk |
The company is exposed to fair value interest rate risk on its fixed rate borrowings and cash flow interest rate risk on bank overdrafts and loans. The company uses interest rate derivatives to manage the mix of fixed and variable rate debt so as to reduce its exposure to changes in interest rates. |
Disclosure of information in the strategic report |
In accordance with the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013, the review of the development and performance of the business, including key performance indicators, along with details of future developments is contained in the Strategic Report on pages 2 to 4. |
Statement of directors' responsibilities |
The directors are responsible for preparing the Strategic Report, the Directors' 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), 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. |
P. & F. Safepac Co. Limited (Registered number: 00872451) |
Directors' Report |
for the Year Ended 31 January 2023 |
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 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. |
On behalf of the board: |
Report of the Independent Auditors to the Members of |
P. & F. Safepac Co. Limited |
Opinion |
We have audited the financial statements of P. & F. Safepac Co. Limited (the 'company') for the year ended 31 January 2023 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 2023 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 Directors' Report, 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. |
Report of the Independent Auditors to the Members of |
P. & F. Safepac Co. Limited |
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 Directors' Report 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. |
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 Directors' Report. |
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 five, 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. |
Report of the Independent Auditors to the Members of |
P. & F. Safepac Co. Limited |
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: |
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: |
We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion. |
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following: the nature of the industry and sector, control environment and business performance including the key drivers for directors' remuneration; the Companies own assessment of the risks that irregularities may occur either as a result of fraud or error; results of our enquiries of management; any matters we identified having obtained and reviewed the companies documentation of their policies and procedures relating to identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance; detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud. |
In common with all audits under ISAs (UK) we are also required to perform specific procedures to respond to the risk of management override. We also obtained an understanding of the legal and regulatory framework that the Company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the UK Companies Act and tax legislation. |
As a result of performing the above, we identified accounting estimates as a key audit matter related to the potential risk of fraud. Our procedures to respond to risks identified included the following: all material accounting estimates tested to supporting documentation to assess compliance with provisions of relevant laws and regulations; performance of analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud. |
As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also: |
- Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. |
- Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control. |
- Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors. |
Report of the Independent Auditors to the Members of |
P. & F. Safepac Co. Limited |
- Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the company to cease to continue as a going concern. |
- Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. |
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. |
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. |
for and on behalf of |
Chartered accountants & statutory auditor |
22-26 King Street |
King's Lynn |
Norfolk |
PE30 1HJ |
P. & F. Safepac Co. Limited (Registered number: 00872451) |
Statement of Comprehensive Income |
for the Year Ended 31 January 2023 |
31.1.23 | 31.1.22 |
Notes | £ | £ |
Turnover | 4 |
Cost of sales | ( |
) | ( |
) |
Gross profit |
Administrative expenses | ( |
) | ( |
) |
1,437,262 | 569,795 |
Other operating income | 5 |
Operating profit | 7 |
Interest receivable and similar income | 9 |
1,793,118 | 940,051 |
Interest payable and similar expenses | 10 | ( |
) | ( |
) |
Profit before taxation |
Tax on profit | 11 | ( |
) | ( |
) |
Profit for the financial year |
Other comprehensive income |
Purchase of own shares |
Income tax relating to other comprehensive income |
Other comprehensive income for the year, net of income tax |
Total comprehensive income for the year |
P. & F. Safepac Co. Limited (Registered number: 00872451) |
Balance Sheet |
31 January 2023 |
31.1.23 | 31.1.22 |
Notes | £ | £ |
Fixed assets |
Tangible assets | 13 |
Investments | 14 |
Investment property | 15 |
Current assets |
Stocks | 16 |
Debtors | 17 |
Cash at bank and in hand |
Creditors |
Amounts falling due within one year | 18 | ( |
) | ( |
) |
Net current assets |
Total assets less current liabilities |
Creditors |
Amounts falling due after more than one year |
19 |
( |
) |
( |
) |
Provisions for liabilities | 24 | ( |
) | ( |
) |
Net assets |
Capital and reserves |
Called up share capital | 25 |
Revaluation reserve | 26 |
Capital redemption reserve | 26 |
Other reserves | 26 | ( |
) | ( |
) |
Other reserves | 26 |
Retained earnings | 26 |
Shareholders' funds |
The financial statements were approved by the Board of Directors and authorised for issue on |
P. & F. Safepac Co. Limited (Registered number: 00872451) |
Statement of Changes in Equity |
for the Year Ended 31 January 2023 |
Called up |
share | Retained | Revaluation |
capital | earnings | reserve |
£ | £ | £ |
Balance at 1 February 2021 |
Changes in equity |
Issue of share capital | ( |
) | - | - |
Dividends | - | ( |
) | - |
Total comprehensive income | - |
Balance at 31 January 2022 |
Changes in equity |
Dividends | - | ( |
) | - |
Total comprehensive income | - |
Balance at 31 January 2023 |
Capital |
redemption | Other | Other | Total |
reserve | reserves | reserves | equity |
£ | £ | £ | £ |
Balance at 1 February 2021 | ( |
) |
Changes in equity |
Issue of share capital | - | - | - | ( |
) |
Dividends | - | - | - | ( |
) |
Total comprehensive income | ( |
) |
Balance at 31 January 2022 | ( |
) |
Changes in equity |
Dividends | - | - | - | ( |
) |
Total comprehensive income |
Balance at 31 January 2023 | ( |
) |
P. & F. Safepac Co. Limited (Registered number: 00872451) |
Cash Flow Statement |
for the Year Ended 31 January 2023 |
31.1.23 | 31.1.22 |
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 |
Loan repayments in year | ( |
) | ( |
) |
Capital repayments in year | ( |
) | ( |
) |
Amount introduced by directors | 46 | - |
Amount withdrawn by directors | (139,697 | ) | - |
Share buyback | ( |
) |
Equity dividends paid | ( |
) | ( |
) |
Government grant income |
Net cash from financing activities | ( |
) | ( |
) |
Increase in cash and cash equivalents |
Cash and cash equivalents at beginning of year |
2 |
(85,503 |
) |
Cash and cash equivalents at end of year | 2 | 924,827 | 464,289 |
P. & F. Safepac Co. Limited (Registered number: 00872451) |
Notes to the Cash Flow Statement |
for the Year Ended 31 January 2023 |
1. | Reconciliation of profit for the financial year to cash generated from operations |
31.1.23 | 31.1.22 |
£ | £ |
Profit for the financial year |
Depreciation charges |
Profit on disposal of fixed assets | ( |
) | ( |
) |
Government grants | ( |
) |
Finance costs | 56,042 | 48,916 |
Finance income | (1,612 | ) | (5 | ) |
Taxation |
2,095,967 | 1,216,908 |
Increase in stocks | ( |
) | ( |
) |
Decrease/(increase) in trade and other debtors | ( |
) |
(Decrease)/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 2023 |
31.1.23 | 1.2.22 |
£ | £ |
Cash and cash equivalents | 924,827 | 464,289 |
Year ended 31 January 2022 |
31.1.22 | 1.2.21 |
£ | £ |
Cash and cash equivalents | 464,289 | 4,890 |
Bank overdrafts | ( |
) |
464,289 | (85,503 | ) |
P. & F. Safepac Co. Limited (Registered number: 00872451) |
Notes to the Cash Flow Statement |
for the Year Ended 31 January 2023 |
3. | Analysis of changes in net debt |
Other |
non-cash |
At 1.2.22 | Cash flow | changes | At 31.1.23 |
£ | £ | £ | £ |
Net cash |
Cash at bank |
and in hand | 464,289 | 460,538 | 924,827 |
464,289 | 924,827 |
Debt |
Finance leases | (326,054 | ) | 158,438 | (103,898 | ) | (271,514 | ) |
Debts falling due |
within 1 year | (164,577 | ) | 93,876 | - | (70,701 | ) |
Debts falling due |
after 1 year | (1,268,480 | ) | 699,646 | - | (568,834 | ) |
(1,759,111 | ) | 951,960 | (103,898 | ) | (911,049 | ) |
Total | (1,294,822 | ) | 1,412,498 | (103,898 | ) | 13,778 |
P. & F. Safepac Co. Limited (Registered number: 00872451) |
Notes to the Financial Statements |
for the Year Ended 31 January 2023 |
1. | General information |
The company is a private company limited by shares, registered in England and Wales. The address of the registered office is Field Road, Mildenhall, Suffolk, IP28 7AP. |
2. | Statement of compliance |
3. | Accounting policies |
Basis of preparing the financial statements |
The financial statements have been prepared under the historical cost convention or historic cost modified by revaluation of financial assets and financial liabilities held at fair value through profit and loss, except for the financial instruments that are measured at their fair values at the end of each reporting period, as explained in the accounting policies below. Historical cost is generally based on the fair value of the consideration given in exchange for goods and services. |
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, regardless of whether that price is directly observable or estimated using another valuation technique. In estimating the fair value of an asset or a liability, the company takes into account the characteristics of the asset or liability if market participants would take those characteristics into account when pricing the asset or liability at the measurement date. Fair value for measurement and/or disclosure purposes in these financial statements is determined on such a basis. |
The financial statements are prepared in sterling, which is the functional currency of the entity. Figures are rounded to the nearest whole pound sterling. |
The company is itself a parent company and is exempt from the requirement to prepare group accounts by virtue of section 405 of the Companies Act 2006. The subsidiary is not material for the purpose of giving a true and fair view. |
These financial statements therefore present information about the company as an individual undertaking and not about its group. |
Contributions to Qualifying Employee Share Ownership Trust (QUEST) |
In accordance with FRS 102 section 26, contributions to the QUEST are not recognised in the profit and loss account until such time as the shares vest unconditionally with the employees. Dividends paid/payable to the QUEST are deducted from the aggregate dividends paid and proposed. |
Contributions to Share Incentive Plan (SIP) |
In accordance with FRS 102 section 26, contributions to the SIP are not recognised in the Profit and Loss Account until such time as the shares vest unconditionally with the employees. Until that time, the employee share ownership plan trust's investment in the shares of the company are shown as a reduction in reserves. |
Liquid resources |
The company classifies liquid resources as debtors and cash at bank and in hand less creditors due within one year, which it attempts to maintain at a level such that working capital can be used effectively. |
The principal accounting policies adopted are set out below. All accounting policies have been applied consistently, other than where new policies have been adopted. |
P. & F. Safepac Co. Limited (Registered number: 00872451) |
Notes to the Financial Statements - continued |
for the Year Ended 31 January 2023 |
Going concern |
The directors consider that the company has adequate resources to continue in operational existence for the foreseeable future and have therefore accordingly prepared these financial statements on a going concern basis. In order to make this assessment the directors have considered forecasts over the next 12 months, including reasonably possible potential negative scenarios, and assessed liquidity of the business under these scenarios.The directors have concluded that the company can successfully managed its financial risks and has sufficient liquidity and resources to continue for the going concern review period. |
Critical accounting judgements and key sources of estimation uncertainty |
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. |
(i) Useful economic lives of tangible assets |
The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancements, future investments, economic utilisation and the physical condition of the assets. See note 13 for the carrying amount of tangible assets and note 3 for the useful economic lives for each class of assets. |
(ii) Taxation |
The company establishes provisions based on reasonable estimates, for possible consequences of audits by the tax authorities. The amount of such provisions is based on various factors, such as experience with previous tax audits and differing interpretations of tax regulations by the taxable entity and the responsible tax authority. See note 24 for the disclosures relating to the deferred tax provision. |
(iii) Impairment of trade debtors |
The company makes an estimate of the recoverable value of trade debtors. When assessing the impairment of trade debtors, management considers factors including the current credit rating, the age profile and the historical experience. See note 17 for the net carrying amount of trade debtors and the associated impairment provision. |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable and represents amounts receivable for goods supplied and services rendered, stated net of discounts and of Value Added Tax. |
Turnover from the rendering of services is measured by reference to the stage of completion of the service transaction at the end of the reporting period provided that the outcome can be reliably estimated. When the outcome cannot be reliably estimated, revenue is recognised only to the extent that it is probable the expenses recognised will be recovered. |
P. & F. Safepac Co. Limited (Registered number: 00872451) |
Notes to the Financial Statements - continued |
for the Year Ended 31 January 2023 |
3. | Accounting policies - continued |
Tangible fixed assets |
Freehold property | - |
Plant and machinery | - |
Motor vehicles | - |
An amount equal to the excess of the annual depreciation charge on revalued assets over the notional historical cost depreciation charge on those assets is transferred annually from the revaluation reserve to the profit and loss reserve. |
Recognition of fixed assets |
Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. |
An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in equity, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset. Where a a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss. |
The company has elected to use a previous UK GAAP revaluation as deemed cost at transition, under FRS 102, section 35.10 (d). |
Investments |
Fixed asset investments are initially recorded at cost, and subsequently stated at cost less any accumulated impairment losses. |
Impairment of fixed assets |
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. |
For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets. |
Investments in subsidiaries |
Investments in subsidiary undertakings are recognised at cost. |
P. & F. Safepac Co. Limited (Registered number: 00872451) |
Notes to the Financial Statements - continued |
for the Year Ended 31 January 2023 |
3. | Accounting policies - continued |
Investment property |
Investment property is initially recorded at cost, which includes purchase price and any directly attributable expenditure. |
Investment property is revalued to its fair value at each reporting date and any changes in fair value are recognised in profit or loss. |
If a reliable measure of fair value is no longer available without undue cost or effort for an item of investment property, it shall be transferred to tangible assets and treated as such until it is expected that fair value will be reliably measurable on an on-going basis. |
Stocks |
Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition. |
Financial instruments |
A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument. |
Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. |
Debt instruments are subsequently measured at amortised cost. |
Other financial instruments are subsequently measured at fair value, with any changes recognised in profit or loss, with the exception of hedging instruments in a designated hedging relationship. |
Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately. |
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 entity after deducting all of its financial liabilities. |
Where the contractual obligations of financial instruments (including share capital) are equivalent to a similar debt instrument, those financial instruments are classed as financial liabilities. Financial liabilities are presented as such in the balance sheet. Finance costs and gains or losses relating to financial liabilities are included in the profit and loss account. Finance costs are calculated so as to produce a constant rate of return on the outstanding liability. |
Where the contractual terms of share capital do not have any terms meeting the definition of a financial liability then this is classed as an equity instrument. Dividends and distributions relating to equity instruments are debited direct to equity. |
P. & F. Safepac Co. Limited (Registered number: 00872451) |
Notes to the Financial Statements - continued |
for the Year Ended 31 January 2023 |
3. | Accounting policies - continued |
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. |
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. |
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. |
Operating leases |
Lease payments are recognised as an expense over the lease term on a straight-line basis. The aggregate benefit of lease incentives is recognised as a reduction to expense over the lease term, on a straight-line basis. |
Finance leases and hire purchase contracts |
Assets held under finance leases and hire purchase contracts are recognised in the balance sheet as assets and liabilities at the lower of the fair value of the assets and the present value of the minimum lease payments, which is determined at the inception of the lease term. Any initial direct costs of the lease are added to the amount recognised as an asset. |
Lease payments are apportioned between the finance charges and reduction of the outstanding lease liability using the effective interest method. Finance charges are allocated to each period so as to produce a constant rate of interest on the remaining balance of the liability. |
Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme for directors and a separate scheme for other employees. The assets of the schemes are held separately from those of the company. The annual contributions payable are charged to the profit and loss account. |
P. & F. Safepac Co. Limited (Registered number: 00872451) |
Notes to the Financial Statements - continued |
for the Year Ended 31 January 2023 |
3. | Accounting policies - continued |
Share-based payments |
The valuation is calculated using a generally accepted valuation methodology allowing for the lack of an observable market price as the company is an unlisted limited company. If the value of the shares is less than the cost of the shares awarded, the difference is transferred between the SIP reserve and the profit and loss reserve over the grant period. |
Government grants |
Government grants are recognised at the fair value of the asset received or receivable. Grants are not recognised until there is reasonable assurance that the company will comply with the conditions attaching to them and the grants will be received. |
Government grants are recognised using the accrual model. |
Under the accrual model, government grants relating to revenue are recognised on a systematic basis over the periods in which the company recognises the related costs for which the grant is intended to compensate. Grants that are receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the entity with no future related costs are recognised in income in the period in which it becomes receivable. |
Provisions |
Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the balance sheet and the amount of the provision as an expense. |
Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises. |
4. | 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: |
31.1.23 | 31.1.22 |
£ | £ |
P. & F. Safepac Co. Limited (Registered number: 00872451) |
Notes to the Financial Statements - continued |
for the Year Ended 31 January 2023 |
4. | Turnover - continued |
An analysis of turnover by geographical market is given below: |
31.1.23 | 31.1.22 |
£ | £ |
United Kingdom |
Overseas packing & forwarding | 6,069,190 | 4,740,884 |
5. | Other operating income |
31.1.23 | 31.1.22 |
£ | £ |
Other operating income | 45,987 | 63,189 |
Operating lease rental income |
Management charges receivable |
Government grants |
354,244 | 370,251 |
Government grant income represents the values reclaimed from the UK government under the Coronavirus Job Retention Scheme, claimed to support the wages costs of those employees furloughed during the COVID-19 pandemic. There are no unfulfilled conditions or other contingencies attached the grants recognised as income; the income is not classified as state aid. |
6. | Employees and directors |
31.1.23 | 31.1.22 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
The average number of employees during the year was as follows: |
31.1.23 | 31.1.22 |
Production staff | 70 | 74 |
Administrative staff | 10 | 11 |
Management staff | 3 | 3 |
P. & F. Safepac Co. Limited (Registered number: 00872451) |
Notes to the Financial Statements - continued |
for the Year Ended 31 January 2023 |
6. | Employees and directors - continued |
31.1.23 | 31.1.22 |
£ | £ |
Directors' remuneration |
Directors' pension contributions to money purchase schemes |
The number of directors who accrued benefits under company pension plans was as follows: |
31.1.22 | 31.1.21 |
No. | No. |
Defined contribution plans | 1 | 1 |
7. | Operating profit |
The operating profit is stated after charging/(crediting): |
31.1.23 | 31.1.22 |
£ | £ |
Hire of plant and machinery |
Vehicle leasing charges |
Depreciation - owned assets |
Profit on disposal of fixed assets | ( |
) | ( |
) |
Foreign exchange differences | ( |
) |
Gain on derivative asset | ( |
) |
Included in foreign exchange differences are foreign exchange gains of £202,430, (2022: loss £309,628), with £57,924 (2022: £31,187) relating to losses on foreign exchange financial derivatives. |
Depreciation of tangible fixed assets is included within cost of sales and administrative expenses. |
8. | Auditors' remuneration |
31.1.23 | 31.1.22 |
£ | £ |
Fees payable to the company's auditors for the audit of the company's financial statements |
13,000 |
12,500 |
9. | Interest receivable and similar income |
31.1.23 | 31.1.22 |
£ | £ |
Deposit account interest |
Interest receivable is derived from financial assets measured at amortised cost. |
P. & F. Safepac Co. Limited (Registered number: 00872451) |
Notes to the Financial Statements - continued |
for the Year Ended 31 January 2023 |
10. | Interest payable and similar expenses |
31.1.23 | 31.1.22 |
£ | £ |
Bank loan interest |
Other interest payable |
Hire purchase |
Interest payable is derived from financial liabilities measured at amortised cost. |
11. | Taxation |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
31.1.23 | 31.1.22 |
£ | £ |
Current tax: |
UK corporation tax |
Deferred tax | ( |
) |
Tax on profit |
UK corporation tax has been charged at 19% (2022 - 19%). |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
31.1.23 | 31.1.22 |
£ | £ |
Profit before tax |
Profit multiplied by the standard rate of corporation tax in the UK of (2022 - |
Effects of: |
Expenses not deductible for tax purposes | ( |
) |
Effect of capital allowances and depreciation | 7,946 | 9,345 |
Effect of change in deferred tax rate | - | 76,436 |
Total tax charge | 337,751 | 255,186 |
Tax effects relating to effects of other comprehensive income |
There were no tax effects for the year ended 31 January 2023. |
P. & F. Safepac Co. Limited (Registered number: 00872451) |
Notes to the Financial Statements - continued |
for the Year Ended 31 January 2023 |
11. | Taxation - continued |
31.1.22 |
Gross | Tax | Net |
£ | £ | £ |
Purchase of own shares | - | 2,621 |
Factors that may affect future tax expense |
The Finance Bill 2021, published on 11 March 2021, announced that from 1 April 2023 the Corporation Tax main rate for non-ring fenced profits will be increased to 25%, applying to profits over £250,000. Deferred taxes at the balance sheet date have been calculated at 25% the substantially enacted rate as at the balance sheet date. |
12. | Dividends |
31.1.23 | 31.1.22 |
£ | £ |
Ordinary shares of 1 each |
Interim | 240,000 | 40,000 |
13. | Tangible fixed assets |
Freehold | Plant and | Motor |
property | machinery | vehicles | Totals |
£ | £ | £ | £ |
Cost |
At 1 February 2022 |
Additions |
Disposals | ( |
) | ( |
) |
At 31 January 2023 |
Depreciation |
At 1 February 2022 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) |
At 31 January 2023 |
Net book value |
At 31 January 2023 |
At 31 January 2022 |
The carrying value of the property over which security has been pledged, as detailed in note 22, is £3,306,373 (2022: £3,425,598). There are no tangible fixed assets to which the entity has restricted title. |
P. & F. Safepac Co. Limited (Registered number: 00872451) |
Notes to the Financial Statements - continued |
for the Year Ended 31 January 2023 |
13. | Tangible fixed assets - continued |
Tangible assets held at valuation |
Land and buildings at Field Road, Mildenhall, Suffolk were revalued in 1993 at £318,915. |
In respect of tangible assets held at valuation, the aggregate cost, depreciation and comparable carrying amount that would have been recognised if the assets had been carried under the historical cost model are as follows: |
Freehold |
property |
£ |
At 31 January 2023 |
Aggregate cost | 185,423 |
Aggregate depreciation | (185,423 | ) |
Carrying value | - |
At 31 January 2022 |
Aggregate cost | 185,423 |
Aggregate depreciation | (185,423 | ) |
Carrying value | - |
Finance leases and hire purchase contracts |
Included within the carrying value of tangible assets are the following amounts relating to assets held under finance leases or hire purchase agreements: |
Motor |
vehicles |
£ |
At 31 January 2023 | 339,584 |
At 31 January 2022 | 378,568 |
P. & F. Safepac Co. Limited (Registered number: 00872451) |
Notes to the Financial Statements - continued |
for the Year Ended 31 January 2023 |
14. | Fixed asset investments |
Shares in |
group |
undertakings |
£ |
Cost |
At 1 February 2022 |
and 31 January 2023 |
Net book value |
At 31 January 2023 |
At 31 January 2022 |
The company's investments at the Balance Sheet date in the share capital of companies include the following: |
Registered office: Safepac House, Field Road, Mildenhall, Suffolk, IP28 7AP |
Nature of business: |
% |
Class of shares: | holding |
£ | £ |
Aggregate capital and reserves |
15. | Investment property |
Total |
£ |
Fair value |
At 1 February 2022 |
and 31 January 2023 |
Net book value |
At 31 January 2023 |
At 31 January 2022 |
Included within tangible fixed assets are investment properties included at their fair value of £2,650,000. This value was ascertained externally by Harris Commercial Surveyors Limited in accordance with RICS Code of Measuring Practice (5th Edition) on 30 July 2019. The directors of the entity deemed this valuation to be appropriate as at 31 January 2023. The historic cost of the asset totals £2,863,495, with accumulated depreciation of £806,379 as at the date of reclassification and valuation. The valuation resulted in a fair value uplift of £592,884. |
P. & F. Safepac Co. Limited (Registered number: 00872451) |
Notes to the Financial Statements - continued |
for the Year Ended 31 January 2023 |
16. | Stocks |
31.1.23 | 31.1.22 |
£ | £ |
Stocks |
Stocks are stated after provisions for impairment of £Nil (2021: £Nil). |
17. | Debtors: amounts falling due within one year |
31.1.23 | 31.1.22 |
£ | £ |
Trade debtors |
Provision for doubtful debts | (70,542 | ) | (227,343 | ) |
Other debtors |
Financial derivative asset | - | 71,137 |
Bank loan overpaid | 7,466 | - |
VAT |
Prepayments and accrued income |
The company enters into forward exchange currency contracts to mitigate the exchange rate risk. The forward currency contracts are measured at fair value, which is determined using valuation techniques that utilise observable inputs. The key assumptions used in valuing the derivatives are the forward rates for Sterling:Dollar and Ultra Low Sulphur Diesel at the balance sheet date. |
As at the balance sheet date, the company is had contracts in place to sell $1,100,000 (2022: $1,650,000) at £834,788 (2022: £1,196,949). The company had contracts in place to enable the purchase of 1,740,000 (2022:1,620,000) litres of Ultra Low Sulphur Diesel at £1,955,262 (2022: £1,598,676). |
18. | Creditors: amounts falling due within one year |
31.1.23 | 31.1.22 |
£ | £ |
Bank loans and overdrafts (see note 20) |
Hire purchase contracts (see note 21) |
Trade creditors |
Tax |
Social security and other taxes |
Other creditors |
Financial derivative liability | 69,258 | - |
Directors' loan accounts | 40,867 | 180,518 |
Accruals and deferred income |
P. & F. Safepac Co. Limited (Registered number: 00872451) |
Notes to the Financial Statements - continued |
for the Year Ended 31 January 2023 |
19. | Creditors: amounts falling due after more than one year |
31.1.23 | 31.1.22 |
£ | £ |
Bank loans (see note 20) |
Hire purchase contracts (see note 21) |
20. | Loans |
An analysis of the maturity of loans is given below: |
31.1.23 | 31.1.22 |
£ | £ |
Amounts falling due within one year or on demand: |
Bank loans |
Amounts falling due between two and five years: |
Bank loans - 2-5 years |
21. | Leasing agreements |
Minimum lease payments fall due as follows: |
Hire purchase contracts |
31.1.23 | 31.1.22 |
£ | £ |
Net obligations repayable: |
Within one year | 145,451 | 144,251 |
Between one and five years | 137,172 | 202,563 |
282,623 | 346,814 |
Non-cancellable |
operating leases |
31.1.23 | 31.1.22 |
£ | £ |
Within one year |
Between one and five years |
P. & F. Safepac Co. Limited (Registered number: 00872451) |
Notes to the Financial Statements - continued |
for the Year Ended 31 January 2023 |
22. | Secured debts |
The following secured debts are included within creditors: |
31.1.23 | 31.1.22 |
£ | £ |
Bank loans |
Hire purchase contracts | 271,514 | 326,054 |
The aggregate liability of creditors under one year over which security is held is £204,976 (2022: £295,783). |
Within creditors over one year, the aggregate liability over which security is held is £706,073 (2022: £1,463,328). |
The bank loans and overdrafts are secured by way of legal charges over the property owned by the company, a fixed and floating charge over all current and future assets of the company and a charge of debt over the balances owed by the company to the directors. |
The hire purchase debt is secured over the asset the debt was used to purchase. |
Included within creditors: amounts falling due after more than one year is an amount of £260,546 (2022: £516,139) in respect of liabilities payable or repayable by instalments which fall due for payment after more than five years from the reporting date. The balance is repayable by instalments, with interest charged at 1.85% above SONIA rate. The final payment to repay the loan, interest and any other amounts outstanding to be made in April 2030. |
P. & F. Safepac Co. Limited (Registered number: 00872451) |
Notes to the Financial Statements - continued |
for the Year Ended 31 January 2023 |
23. | Financial instruments |
The carrying amount for each category of financial instrument is as follows: |
31.1.23 | 31.1.22 |
£ | £ |
Financial assets that are debt instruments measured at amortised cost |
Financial assets that are debt instruments measured at amortised cost | 2,249,356 | 2,223,945 |
Financial assets measured at fair value through profit or loss |
Derivative assets that are measured at fair value through profit or loss | - | 71,137 |
Financial assets that are equity instruments measured at cost less impairment |
Financial assets that are equity instruments measured at cost less impairment | 1 | 1 |
Financial liabilities measured at fair value through profit or loss |
Derivative liabilities that are measured at fair value through profit or loss | 69,258 | - |
Financial liabilities measured at amortised cost |
Financial liabilities measured at amortised cost | 1,921,273 | 2,979,418 |
24. | Provisions for liabilities |
31.1.23 | 31.1.22 |
£ | £ |
Deferred tax |
Accelerated capital allowances |
Deferred tax |
£ |
Balance at 1 February 2022 |
Utilised during year | ( |
) |
Balance at 31 January 2023 |
Deferred tax has been calculated at 25% (2022: 25%), the future rate of taxation. |
P. & F. Safepac Co. Limited (Registered number: 00872451) |
Notes to the Financial Statements - continued |
for the Year Ended 31 January 2023 |
25. | Called up share capital |
Issued, called up and fully paid |
31.1.23 | 31.1.22 |
No. | £ | No. | £ |
'A' Ordinary shares of £1 each | 272,572 | 272,572 | 272,572 | 272,572 |
'B' Ordinary shares of £1 each | 100 | 100 | 100 | 100 |
'D' Ordinary shares of £1 each | 46,100 | 46,100 | 46,100 | 46,100 |
'E' Ordinary shares of £0.01 each | 1,362,860 | 13,629 | 1,362,860 | 13,629 |
'F' Ordinary shares of £0.01 each | 479,130 | 4,791 | 479,130 | 4,791 |
2,160,762 | 337,192 | 2,160,762 | 337,192 |
Ordinary A, B and E shares are full ordinary shares; there are no restrictions on the distribution of dividends and the repayment of capital. |
Ordinary D and F shares are full ordinary shares with pre-emption rights attached to the shares. See note 31 for further details. |
26. | Reserves |
Capital |
Retained | Revaluation | redemption |
earnings | reserve | reserve |
£ | £ | £ |
At 1 February 2022 |
Profit for the year |
Dividends | ( |
) |
At 31 January 2023 |
P. & F. Safepac Co. Limited (Registered number: 00872451) |
Notes to the Financial Statements - continued |
for the Year Ended 31 January 2023 |
26. | Reserves - continued |
Other | Other |
reserves | reserves | Totals |
£ | £ | £ |
At 1 February 2022 | ( |
) | 3,269,686 |
Profit for the year |
Dividends | ( |
) |
At 31 January 2023 | ( |
) | 4,429,011 |
Profit and loss account - This reserve records distributable retained earnings and accumulated losses. |
Capital redemption reserve - This reserve records the nominal value of shares repurchased by the company. |
Other reserves - This reserve holds the shares acquired on behalf of the Qualifying Employee Share Ownership Trust. The company paid a contribution for the purchase of shares in the company which are held to be divested to the employees at a future date. As at the balance sheet date the balance on this reserve totalled (£2,593,792) (2022: (£2,593,792)), including provisions for deferred tax. |
Share based payment reserve - This reserve records the value of the remaining cost on unconditional vesting of shares, if the value of the shares is less than the cost of the shares awarded, the difference is transferred between the SIP reserve and the profit and loss reserve. This is included within 'Other reserves' on the face of the balance sheet; as at the balance sheet date the balance on this reserve totalled £21,515 (2022: £21,515). |
Revaluation reserve - This reserve records the value of asset revaluations and fair value movements on assets recognised in other comprehensive income, along with the gains and losses on the revaluation of investment properties, which are non-distributable. |
27. | Capital commitments |
31.1.23 | 31.1.22 |
£ | £ |
Contracted but not provided for in the |
financial statements |
P. & F. Safepac Co. Limited (Registered number: 00872451) |
Notes to the Financial Statements - continued |
for the Year Ended 31 January 2023 |
28. | Related party disclosures |
The following balances were outstanding at the year end: |
2023 | 2022 |
£ | £ |
Owed by Eurogroup International Movers Limited | 44,765 | 98,239 |
Owed to Eurogroup International Movers Limited | 835 | - |
Owed by APAK Relocations Limited | - | 5,389 |
Owed by Home Store Limited | 2,158 | 55,147 |
Owed to Home Store Limited | 158,394 | 233,394 |
Owed to P&F Safepac Company Limited Directors Pension Scheme | 40,800 | 40,800 |
Owed by P&F Safepac Company Limited Directors Pension Scheme | 6,505 | 6,505 |
The following transactions took place with related parties during the year: |
2023 | 2022 |
£ | £ |
Sales to Eurogroup International Movers Limited | 395,693 | 456,187 |
Purchases from Eurogroup International Movers Limited | 2,703 | 7,687 |
Rent charged to Home Store Limited | 180,000 | 180,000 |
Other sales to Home Store Limited | 11,430 | 34,499 |
Management charges to Home Store Limited | 75,000 | 75,000 |
Purchases from Home Store Limited | 94,937 | 72,189 |
Rent to P&F Safepac Company Limited Directors Pension Scheme | 68,000 | 68,000 |
Mr W P Flynn and Mr D A Flynn are shareholders and directors of P & F Safepac Company Limited and Eurogroup International Movers Limited (formerly Euro-USA Shipping Limited) and are directors of Home Store Limited throughout the current and previous year. |
APAK Relocations Limited is a wholly owned subsidiary of Eurogroup International Movers Limited. |
P & F Safepac Company Limited Directors' Pension Scheme will provide pensions to Mr W P Flynn and Mr D A Flynn on their retirement. |
The company was under the joint control of the directors Mr W P Flynn and Mr D A Flynn (who are also the majority shareholders) in both the current and previous year. During the year there were net transactions between the company and the directors amounting to £139,651 (2022:£90,000).At the balance sheet date an amount of £40,867 (2022: £180,518) was owed to the directors. |
There are no other key management personnel other than directors. Details of directors remuneration can be found in note 6. |
No other transactions took place with directors or other related parties such as are required to be disclosed under FRS102. |
P. & F. Safepac Co. Limited (Registered number: 00872451) |
Notes to the Financial Statements - continued |
for the Year Ended 31 January 2023 |
29. | Employee benefits |
Defined contribution plans |
The amount recognised in profit or loss as an expense in relation to defined contribution plans was £55,404 (2022: £53,211). |
At the balance sheet date contributions of £7,754 (2022: £9,356) were outstanding and subsequently paid. |
30. | Contingencies |
The company has provided a guarantee to Natwest Bank plc in the sum of £18,000 in favour of HM Revenue and Customs. |
Since 1 November 2017, the company has acted as a guarantor for Home Store Limited regarding the 5 year lease agreements for units A3/A6 and A5, Anglian Lane Industrial Estate, Bury St. Edmunds, Suffolk. Annual rents for these properties total £91,850 and £38,000 per annum respectively; the maximum expose of the guarantee is £97,388 (2022: £97,388). |
The directors have provided security in respect of a bank loan by way of a charge of debt over the balances owed to them by the company. |
31. | Controlling party |
The company is controlled jointly by directors, Mr D A Flynn and Mr W P Flynn acting in concert. |
P. & F. Safepac Co. Limited (Registered number: 00872451) |
Notes to the Financial Statements - continued |
for the Year Ended 31 January 2023 |
32. | Other reserves |
Investment: Own shares |
'D' Shares | 'F' Shares |
held in | held in | Nominal |
trust | trust | value | Cost | Total |
£ | £ | £ |
QUEST | 18,276 | 91,380 | 19,190 | 1,999,475 | 1,999,475 |
SIP | 27,824 | 387,750 | 31,702 | 1,696,725 | 1,696,725 |
46,100 | 479,130 | 50,891 | 3,696,200 | 3,696,200 |
The P. & F. Safepac Co. Limited Share Incentive Plan was established to purchase shares for the benefit of the employees. The aim is to provide free shares to all employees over a five year period. On 17 December 2009, 77,550 Ordinary £1.00 'D' Shares were granted, the value of the shares at the grant date was £59,972. As P. & F. Safepac Co. Limited is a private company, there is no observable market price for the shares granted. Therefore, the value of the shares was measured using generally accepted valuation methodology which allowed for this. |
As the value of the shares is less than the cost of the shares, the difference has been transferred from the SIP reserve to the profit and loss reserve over the vesting period. |
The P. & F. Safepac Co. Limited QUEST is governed by a trust deed dated 1 September 2003. The QUEST trustees hold shares for the benefit of the employees generally. The aim is to appropriate the shares to the employees on a long term basis. |
There was no movement in the current year. During the prior year, 4,129 of SIP shares were repurchased, at an effective cost of £3,193. |