Company registration number 02192064 (England and Wales)
MANOR PACKAGING LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
MANOR PACKAGING LTD
COMPANY INFORMATION
Directors
D W E Orr
A J Clifton
C J E Hall
G M R Campbell
L J Sheridan
(Appointed 1 October 2022)
Secretary
L J Sheridan
Company number
02192064
Registered office
200 Station Road
Whittlesey
Peterborough
PE7 2HA
Auditor
Stephenson Smart & Co
36 Tyndall Court
Commerce Road
Lynch Wood
Peterborough
PE2 6LR
Business address
200 Station Road
Whittlesey
Peterborough
PE7 2HA
MANOR PACKAGING LTD
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 6
Profit and loss account
7
Statement of comprehensive income
8
Balance sheet
10
Statement of changes in equity
9
Notes to the financial statements
11 - 25
MANOR PACKAGING LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2023
- 1 -

The directors present the strategic report for the year ended 31 March 2023.

Review of the Business

Principal Activity

The business is a sheet plant and its principal activities are the design, manufacture and packing of corrugated packaging. The company is a wholly owned subsidiary of Fencor Packaging Group Limited.

 

Performance Review

The Company delivered a strong financial performance in 2022-23. A reduction in turnover of £1,475,170 and increases in overheads of £369,269 (of which £131,388 was due to increased depreciation charges) were mitigated to a certain extent by margin improvements resulting in a pre-tax profit of £1,458,445 (2022: £1,769,794). Net assets increased by £1,152,492 to £6,761,350.

 

After investing £1,619,742 in fixed assets, borrowings reduced by £428,349 to £2,634,683 (2022: £3,063,032) and good management of working capital helped to lead to an increase in cash at the year end to £1,191,488 (2022: £469,834). During the year the Company invested in a 19,000 square foot warehouse extension on the back of its main factory in Whittlesey.

 

Risks and uncertainties

General inflation has meant that the Company has had to deal with some significant cost increases during the course of the year, which continue to impose a heavy burden, most notably in the cost of energy, fuel and salaries. Since the financial year-end, the company has installed a 451.17 kWp solar photovoltaic system on its factory roof, which will provide circa 40% of the Company’s power.

 

Staff retention and recruitment continue to be a prime focus and the Company has redoubled its efforts to be perceived as a good place to work, which has allowed the Company to maintain a skilled and stable workforce to ensure that it is able to meet its customers’ requirements. It is the Company’s policy, wherever possible, to try and fill vacancies internally and to encourage all employees to undergo skills training to facilitate self-advancement. This, combined with the availability of talent internally, has allowed the Company to make 10 well-deserved promotions during the course of this financial year (11% of the total workforce of 98).

 

Future prospects and developments

The Company is now very well invested and has the capacity to absorb significant additional growth. Whilst growth in the immediate future may be more challenging to achieve than in recent years, the Company is well placed both financially and operationally to seize opportunities when they arise.

 

Consumers are increasingly focusing on sustainability and are demanding that their packaging is recyclable. Corrugated packaging is able to meet this challenge in a highly effective manner: circa 85% of the Company’s raw materials are recycled and almost 100% of its products are recyclable.

 

Furthermore, the Company is also making significant progress in its drive towards Carbon Net Zero:

 

Good people, good working conditions, continuous improvement and innovation continue to be at the core of the Company’s culture and these qualities will stand it in good stead as it meets new challenges.

On behalf of the board

D W E Orr
Director
26 September 2023
MANOR PACKAGING LTD
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2023
- 2 -

The directors present their annual report and financial statements for the year ended 31 March 2023.

Principal activities

The principal activity of the company continued to be that of the design, manufacture and packing of corrugated packaging.

Results and dividends

The results for the year are set out on page 7.

No dividends were paid. The directors do not recommend payment of a final dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

D W E Orr
A J Clifton
C J E Hall
G M R Campbell
L J Sheridan
(Appointed 1 October 2022)
Auditor

The auditor, Stephenson Smart & Co, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Statement of directors' responsibilities

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

 

 

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.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

MANOR PACKAGING LTD
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 3 -
On behalf of the board
D W E Orr
Director
26 September 2023
MANOR PACKAGING LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF MANOR PACKAGING LTD
- 4 -
Opinion

We have audited the financial statements of Manor Packaging Ltd (the 'company') for the year ended 31 March 2023 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

MANOR PACKAGING LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF MANOR PACKAGING LTD
- 5 -
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 in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

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

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.

- in addressing the risk of fraud through management override of controls, we have tested the appropriateness of journal entries and other adjustments and we assessed whether judgements made in accounting estimates are indicative of management bias.

- we have evaluated the rationale of any significant transactions that are unusual or outside the normal course of business;

- analytical procedures are performed as well as substantive testing to identify any potential misstatement due to fraud and the audit procedures would also involve being aware of any items from discussions with staff and management.

- health and safety is considered to be a significant law and regulation. Health and safety reports and related documentation were reviewed and discussions were held with management to obtain an understanding of the procedures in place.

MANOR PACKAGING LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF MANOR PACKAGING LTD
- 6 -

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

 

The primary responsibility for the prevention and detection of irregularities including fraud remains with those charged with governance and with management.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the company's member 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 member those matters we are required to state to the member in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's member, for our audit work, for this report, or for the opinions we have formed.

Garry Wiles FCA
Senior Statutory Auditor
For and on behalf of Stephenson Smart & Co
26 September 2023
Chartered Accountants
Statutory Auditor
36 Tyndall Court
Commerce Road
Lynch Wood
Peterborough
PE2 6LR
MANOR PACKAGING LTD
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2023
- 7 -
2023
2022
£
£
Turnover
3
15,123,509
16,598,679
Cost of sales
(9,330,242)
(10,907,357)
Gross profit
5,793,267
5,691,322
Administrative expenses
(4,157,226)
(3,787,957)
Operating profit
4
1,636,041
1,903,365
Other interest payable and similar expenses
6
(177,596)
(133,571)
Profit before taxation
1,458,445
1,769,794
Tax on profit
7
(305,953)
(181,648)
Profit for the financial year
1,152,492
1,588,146

The profit and loss account has been prepared on the basis that all operations are continuing operations.

MANOR PACKAGING LTD
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2023
- 8 -
2023
2022
£
£
Profit for the year
1,152,492
1,588,146
Other comprehensive income
Depreciation written back
7,462
7,462
Total comprehensive income for the year
1,159,954
1,595,608
MANOR PACKAGING LTD
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2023
- 9 -
Share capital
Revaluation reserve
Capital redemption reserve
Profit and loss reserves
Total
£
£
£
£
£
Balance at 1 April 2021
5,000
260,998
45,000
3,709,714
4,020,712
Year ended 31 March 2022:
Profit and total comprehensive income for the year
-
-
-
1,588,146
1,588,146
Depreciation written back
-
(7,462)
-
7,462
-
Balance at 31 March 2022
5,000
253,536
45,000
5,305,322
5,608,858
Year ended 31 March 2023:
Profit and total comprehensive income for the year
-
-
-
1,152,492
1,152,492
Depreciation written back
-
(7,462)
-
7,462
-
Balance at 31 March 2023
5,000
246,074
45,000
6,465,276
6,761,350
MANOR PACKAGING LTD
BALANCE SHEET
AS AT
31 MARCH 2023
31 March 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Goodwill
9
-
0
11,497
Tangible assets
8
7,079,400
6,204,568
7,079,400
6,216,065
Current assets
Stocks
10
393,071
607,939
Debtors falling due after more than one year
11
1,942,641
1,826,007
Debtors falling due within one year
11
2,441,056
3,655,154
Cash at bank and in hand
1,191,488
469,834
5,968,256
6,558,934
Creditors: amounts falling due within one year
12
(2,795,090)
(3,176,628)
Net current assets
3,173,166
3,382,306
Total assets less current liabilities
10,252,566
9,598,371
Creditors: amounts falling due after more than one year
13
(2,605,013)
(3,301,675)
Provisions for liabilities
Deferred tax liability
16
886,203
687,838
(886,203)
(687,838)
Net assets
6,761,350
5,608,858
Capital and reserves
Called up share capital
18
5,000
5,000
Revaluation reserve
246,074
253,536
Capital redemption reserve
45,000
45,000
Profit and loss reserves
6,465,276
5,305,322
Total equity
6,761,350
5,608,858
The financial statements were approved by the board of directors and authorised for issue on 26 September 2023 and are signed on its behalf by:
D W E Orr
Director
Company Registration No. 02192064
MANOR PACKAGING LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
- 11 -
1
Accounting policies
Company information

Manor Packaging Ltd is a private company limited by shares incorporated in England and Wales. The registered office is 200 Station Road, Whittlesey, Peterborough, PE7 2HA.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties as noted at 1.5 below. The principal accounting policies adopted are set out below.

 

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

 

 

The financial statements of the company are consolidated in the financial statements of Fencor Packaging Group Ltd. These consolidated financial statements are available from its registered office, 200 Station Road, Whittlesey, Peterborough, PE7 2HA.

 

1.2
Going concern

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

 

1.3
Turnover
Turnover represents amounts receivable for goods and services net of VAT.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

MANOR PACKAGING LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 12 -
1.4
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is ten years.

 

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

1.5
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or deemed cost, net of depreciation and any impairment losses. FRS102 allows, as a transitional relief, the inclusion within the accounts of a class of fixed assets at their valuation which is treated as 'deemed cost' at the transition date of 1 April 2014. The company has adopted this treatment for its freehold land and buildings acquired prior to this transition date.

Depreciation is provided at rates calculated to write off the cost or deemed cost less estimated residual value of each asset over its expected useful life, as follows:

Land and buildings freehold
Over 50 years straight line
Plant and machinery
Over 10 years straight line
Fixtures, fittings & equipment
Over 5 years straight line
Motor vehicles
Over 5 years straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

1.6
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

Recoverable amount is the higher of fair value less costs to sell and value in use.

 

If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

MANOR PACKAGING LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 13 -
1.7
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

 

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.8
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, bank overdrafts and sales invoice finance facilities. Bank overdrafts and sales invoice finance facilities are shown within borrowings in current liabilities.

1.9
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

MANOR PACKAGING LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 14 -
Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, obligations under finance leases and hire purchase liabilities, bank loans and loans from fellow group companies 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. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Other financial liabilities

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value though profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.10
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.11
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

MANOR PACKAGING LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 15 -
Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.12
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.13
Retirement benefits

The company operates an auto-enrolment compliant pension scheme for the benefit of its employees. The scheme is a defined contribution scheme, and the contributions are charged against profits as they become payable.

1.14
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

1.15
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation are included in the profit and loss account for the period.

 

MANOR PACKAGING LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 16 -
2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

 

Depreciation and amortisation

Depreciation and amortisation are recognised to write off the cost or valuation of assets less their residual values over their useful lives at the rates detailed in Notes 1.4 and 1.5. The provisions for amortisation and depreciation at the reporting end date are £210,249 and £3,833,002 respectively. Further details of the amounts provided at the beginning and end of the period, together with the charge for the year are shown in Notes 8 and 9 respectively.

 

 

3
Turnover

An analysis of the company's turnover is as follows:

2023
2022
£
£
Turnover analysed by class of business
Manufacture of corrugated cases
15,123,509
16,598,679
2023
2022
£
£
Turnover analysed by geographical market
UK & Republic of Ireland
15,123,509
16,568,376
EU
-
30,303
15,123,509
16,598,679
4
Operating profit
2023
2022
Operating profit for the year is stated after charging:
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
10,650
10,150
Depreciation of owned tangible fixed assets
344,797
352,240
Depreciation of tangible fixed assets held under finance leases and hire purchase agreements
400,115
261,284
Amortisation of intangible assets
11,497
12,000
Operating lease charges
219,928
338,818
MANOR PACKAGING LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 17 -
5
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2023
2022
Number
Number
Administration
26
25
Production
48
45
Drivers
5
6
Warehouse
11
13
Directors
5
4
Engineers
3
3
Total
98
96

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
2,512,748
2,523,724
Social security costs
233,012
223,027
Pension costs
83,370
73,168
2,829,130
2,819,919
6
Interest payable and similar expenses
2023
2022
£
£
Interest on bank overdrafts, loans and mortgages
57,235
36,892
Interest on finance leases and hire purchase contracts
82,667
64,163
Interest on invoice finance arrangements
37,694
32,516
Disclosed on the profit and loss account as follows:
Other interest payable and similar expenses
177,596
133,571
7
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
107,588
(24,047)
Deferred tax
Origination and reversal of timing differences
198,365
205,695
Total tax charge
305,953
181,648
MANOR PACKAGING LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
7
Taxation
(Continued)
- 18 -

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2023
2022
£
£
Profit before taxation
1,458,445
1,769,794
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2022: 19.00%)
277,105
336,261
Tax effect of expenses that are not deductible in determining taxable profit
12,931
10,620
Effect of change in corporation tax rate
212,689
-
0
Group relief
(64,101)
-
0
Permanent capital allowances in excess of depreciation
(44,533)
(97,965)
Depreciation on assets not qualifying for tax allowances
-
0
8,372
Research and development tax credit
(88,138)
(83,103)
Other permanent differences
-
0
7,463
Tax expense for the year
305,953
181,648
8
Tangible fixed assets
Land and buildings freehold
Plant and machinery
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 April 2022
2,791,964
6,099,188
350,605
50,903
9,292,660
Additions
1,108,248
201,620
20,066
289,808
1,619,742
At 31 March 2023
3,900,212
6,300,808
370,671
340,711
10,912,402
Depreciation and impairment
At 1 April 2022
735,407
2,079,788
265,983
6,912
3,088,090
Depreciation charged in the year
64,401
598,872
28,163
53,476
744,912
At 31 March 2023
799,808
2,678,660
294,146
60,388
3,833,002
Carrying amount
At 31 March 2023
3,100,404
3,622,148
76,525
280,323
7,079,400
At 31 March 2022
2,056,556
4,019,399
84,622
43,991
6,204,568
MANOR PACKAGING LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
8
Tangible fixed assets
(Continued)
- 19 -

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

2023
2022
£
£
Plant and machinery
2,858,716
2,969,026
Depreciation charge for the year in respect of assets held under hire purchase or finance lease
400,115
261,284

The historic cost equivalent of freehold land and buildings included at deemed cost are as follows:

 

2023
2022
£
£
Cost
333,774
333,774
Accumulated depreciation
(167,134)
(162,858)
Carrying value
166,640
170,916

Freehold land and buildings with a net book value of £408,490 (2022 - £422,532) have been pledged to secure borrowings of Fencor Packaging Group Ltd, the company's ultimate parent company.

9
Intangible fixed assets
Goodwill
£
Cost
At 1 April 2022 and 31 March 2023
210,249
Amortisation and impairment
At 1 April 2022
198,752
Amortisation charged for the year
11,497
At 31 March 2023
210,249
Carrying amount
At 31 March 2023
-
0
At 31 March 2022
11,497
MANOR PACKAGING LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 20 -
10
Stocks
2023
2022
£
£
Raw materials and finished goods
393,071
607,939
11
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
1,874,337
3,110,563
Corporation tax recoverable
276
24,047
Amounts owed by group undertakings
24,229
27,678
Other debtors
191,089
191,089
Prepayments and accrued income
351,125
301,777
2,441,056
3,655,154
2023
2022
Amounts falling due after more than one year:
£
£
Amounts owed by group undertakings
1,942,641
1,826,007
Total debtors
4,383,697
5,481,161

Amounts owed by group undertakings are repayable on demand with effect from 1 April 2024.

12
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Bank loans, overdrafts and sales invoice finance facilities
14
65,835
63,653
Obligations under finance leases and hire purchase agreements
15
703,879
602,748
Trade creditors
1,165,326
1,779,123
Amounts due to group undertakings
392,487
183,133
Corporation tax
107,588
-
0
Other taxation and social security
257,216
433,272
Accruals and deferred income
102,759
114,699
2,795,090
3,176,628
MANOR PACKAGING LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 21 -
13
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Bank loans
14
759,895
813,843
Obligations under finance leases and hire purchase agreements
15
1,105,074
1,582,788
Amounts due to group undertakings
740,044
905,044
2,605,013
3,301,675

Amounts due to group undertakings are repayable on demand with effect from 1 April 2024.

14
Bank loans, overdrafts and sales invoice financing facilities
2023
2022
£
£
Bank loans
825,730
877,496
Payable within one year
65,835
63,653
Payable after one year
759,895
813,843

The company has a mortgage of £825,730 (2022: £877,496) repayable over 13 years with a floating interest rate which will never be less than 2.88%.

 

Bank and other loans, overdraft and sales invoice finance facilities includes amounts totalling £825,730 (2022: £877,496) which are secured by fixed and floating charges over the company's assets and a cross guarantee between the company, its fellow subsidiary Easypack / POP Displays Group Ltd and the parent company, Fencor Packaging Group Ltd.

 

15
Finance lease obligations and hire purchase agreements
2023
2022
Future minimum payments due under finance leases and hire purchase agreements :
£
£
Within one year
766,497
672,908
In two to five years
1,153,992
1,697,269
1,920,489
2,370,177
Less: future finance charges
(111,536)
(184,641)
1,808,953
2,185,536
MANOR PACKAGING LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
15
Finance lease obligations and hire purchase agreements
(Continued)
- 22 -

Finance lease payments and hire purchase obligations represent amounts payable by the company for certain items of plant and machinery. Leases and hire purchase obligations include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average outstanding lease term is 3 years (2022: 4 years) . All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

 

The net obligations under finance leases and hire purchase agreements are secured by fixed charges on the assets concerned.

 

16
Deferred taxation

Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:

Liabilities
Liabilities
2023
2022
Balances:
£
£
Accelerated capital allowances
886,203
687,838
2023
Movements in the year:
£
Liability at 1 April 2022
687,838
Charge to profit or loss
198,365
Liability at 31 March 2023
886,203

The deferred tax liability set out above is expected to reverse and relates to accelerated capital allowances.

17
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
83,370
73,168

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

MANOR PACKAGING LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 23 -
18
Share capital
2023
2022
£
£
Ordinary share capital
Authorised
5,000 Ordinary shares of £1 each
5,000
5,000
Issued and fully paid
5,000 Ordinary shares of £1 each
5,000
5,000
MANOR PACKAGING LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 24 -
19
Operating lease commitments
Lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2023
2022
£
£
Within one year
308,802
367,124
Between two and five years
1,150,218
1,228,746
In over five years
-
0
24,402
1,459,020
1,620,272
20
Financial commitments, guarantees and contingent liabilities

Certain freehold land and buildings have been pledged as guarantee to secure borrowings in the company's ultimate holding company.

 

The company provides a cross guarantee and debenture in support of group bank and invoice finance facilities.

21
Capital commitments

Amounts contracted for but not provided in the financial statements:

2023
2022
£
£
Acquisition of tangible fixed assets
-
1,019,187
22
Related party transactions
Transactions with related parties

During the year the company entered into the following transactions with related parties:

Sale of goods
Purchase of goods
2023
2022
2023
2022
£
£
£
£
Other related parties
478,640
309,708
2,842,421
4,413,601
MANOR PACKAGING LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
22
Related party transactions
(Continued)
- 25 -

The above transactions took place on normal commercial terms.

 

A loan to an other related party of £191,089 (2022: £191,089) remains outstanding. No interest is charged on this loan.

 

The company has taken advantage of the exemption within section 33 of FRS 102 Related Party Disclosures and has not disclosed transactions undertaken with other members of Fencor Packaging Group Ltd.

The following amounts were outstanding at the reporting end date:

Amounts owed to related parties
2023
2022
£
£
Fellow group undertakings
772,530
1,088,177
Other related parties
454,432
843,074
1,226,962
1,931,251

The following amounts were outstanding at the reporting end date:

Amounts owed by related parties
2023
2022
£
£
Fellow group undertakings
1,966,870
1,853,685
Other related parties
262,366
310,769
2,229,236
2,164,454
23
Ultimate controlling party

The parent company of Manor Packaging Limited is Hostmoor Holdings Limited, a wholly owned subsidiary of Fencor Packaging Group Limited.

The ultimate controlling party is Fencor Packaging Group Limited, incorporated in England and Wales. Fencor Packaging Group Limited is a company controlled by D W E Orr by virtue of his majority shareholding and directorship. The registered office of Fencor Packaging Group Limited is 200 Station Road, Whittlesey, Peterborough, PE7 2HA.

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