Company registration number 03837995 (England and Wales)
FENCOR PACKAGING GROUP LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
FENCOR PACKAGING GROUP 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
03837995
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
FENCOR PACKAGING GROUP LTD
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 6
Group statement of comprehensive income
7
Group balance sheet
8
Company balance sheet
9
Group statement of changes in equity
10
Company statement of changes in equity
11
Group statement of cash flows
12
Notes to the financial statements
13 - 31
FENCOR PACKAGING GROUP 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 group of sheet plants and its principal activities are the design, manufacture and packing of corrugated packaging and temporary three dimensional point of sale displays. The Group is also a shareholder in Corrboard (UK) Limited, a supplier of corrugated sheet, its main raw material.
Performance Review
The Group delivered a strong financial performance in 2022-23. A reduction in turnover of £1,964,677 and increases in overheads of £410,404 were offset to a certain extent by margin improvements resulting in a pre-tax profit of £1,519,939 (2022: £1,819,440). Net assets increased by £1,187,252 to £6,847,801; after investing £1,823,648 in fixed assets. Total borrowings reduced by £899,294 to £4,037,087 (2022: £4,936,381) and good management of working capital led to an increase in cash at year end to £1,359,796 (2022: £604,036).
Risks and uncertainties
General inflation has meant that the Group 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 Group has installed a 451.17 kWp solar photovoltaic system on one of its factory roofs, which will provide circa 20% of the Group’s power.
Staff retention and recruitment continue to be a prime focus and the Group has redoubled its efforts to be perceived as a good place to work, which has allowed it to maintain a skilled and stable workforce in order to ensure that it is able to meet its customers’ requirements. It is the Group’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 Group to make 25 well-deserved promotions during the course of this financial year (14% of the total workforce of 173).
Future prospects and developments
The Group is now 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 Group 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 Group’s raw materials are recycled and almost 100% of its products are recyclable. Furthermore, the Group is also making significant progress in its drive towards Carbon Net Zero:
All the Group’s power is now supplied from renewable sources.
As stated above, the Group now has a 451.17 kWp solar photovoltaic system on its main factory roof, which is providing circa 20% of the Group’s annual electricity usage.
Its principal supplier of raw material, Corrboard UK Ltd, is powered by bioenergy.
All Company cars are either electric or hybrid.
Good people, good working conditions, continuous improvement and innovation continue to be at the core of the Group’s culture and these qualities will stand it in good stead as it meets new challenges.
D W E Orr
Director
26 September 2023
FENCOR PACKAGING GROUP 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 and group continued to be that of the design, manufacture and packing of corrugated packaging and temporary, three-dimensional point of purchase displays.
Results and dividends
The results for the year are set out on page 7.
No ordinary dividends were paid. The directors do not recommend payment of a further 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)
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 group and company, and of the profit or loss of the group 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;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the ;
prepare the on the going concern basis unless it is inappropriate to presume that the group and company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and 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 auditor of the company 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 auditor of the company is aware of that information.
FENCOR PACKAGING GROUP 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
FENCOR PACKAGING GROUP LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF FENCOR PACKAGING GROUP LTD
- 4 -
Opinion
We have audited the financial statements of Fencor Packaging Group Ltd (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2023 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows 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:
give a true and fair view of the state of the group's and the parent company's affairs as at 31 March 2023 and of the group's 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.
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 group and parent 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 group's and parent 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.
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:
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.
FENCOR PACKAGING GROUP LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF FENCOR PACKAGING GROUP LTD
- 5 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the group and the parent company and their 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:
adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent company 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 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 parent 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 parent 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.
FENCOR PACKAGING GROUP LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF FENCOR PACKAGING GROUP 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.
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 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 members as a body, 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
FENCOR PACKAGING GROUP LTD
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2023
- 7 -
2023
2022
Notes
£
£
Turnover
3
23,434,438
25,399,115
Cost of sales
(13,897,577)
(16,022,114)
Gross profit
9,536,861
9,377,001
Administrative expenses
(7,792,519)
(7,382,115)
Other operating income
5,000
5,000
Operating profit
4
1,749,342
1,999,886
Interest receivable and similar income
8
20,487
8,237
Interest payable and similar expenses
9
(249,890)
(188,683)
Profit before taxation
1,519,939
1,819,440
Tax on profit
10
(332,687)
(128,771)
Profit for the financial year
1,187,252
1,690,669
Other comprehensive income
Revaluation of tangible fixed assets
(7,462)
(7,462)
Total comprehensive income for the year
1,179,790
1,683,207
Profit for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.
FENCOR PACKAGING GROUP LTD
GROUP BALANCE SHEET
AS AT
31 MARCH 2023
31 March 2023
- 8 -
2023
2022
Notes
£
£
£
£
Fixed assets
Goodwill
11
270,276
338,329
Tangible assets
12
7,915,360
7,120,689
Investments
13
420,841
420,841
8,606,477
7,879,859
Current assets
Stocks
14
585,080
785,396
Debtors
15
4,315,212
5,872,893
Cash at bank and in hand
1,359,796
604,036
6,260,088
7,262,325
Creditors: amounts falling due within one year
16
(4,650,002)
(5,674,653)
Net current assets
1,610,086
1,587,672
Total assets less current liabilities
10,216,563
9,467,531
Creditors: amounts falling due after more than one year
17
(2,367,910)
(3,031,229)
Provisions for liabilities
Deferred tax liability
20
1,000,852
775,753
(1,000,852)
(775,753)
Net assets
6,847,801
5,660,549
Capital and reserves
Called up share capital
23
488
488
Share premium account
137,697
137,697
Revaluation reserve
246,074
253,536
Profit and loss reserves
6,463,542
5,268,828
Total equity
6,847,801
5,660,549
The financial statements were approved by the board of directors and authorised for issue on
26 September 2023
26 September 2023
and are signed on its behalf by:
D W E Orr
Director
FENCOR PACKAGING GROUP LTD
COMPANY BALANCE SHEET
AS AT 31 MARCH 2023
31 March 2023
- 9 -
2023
2022
Notes
£
£
£
£
Fixed assets
Investments
13
1,317,703
1,317,703
Current assets
Debtors
15
965,654
900,906
Cash at bank and in hand
60,811
65,843
1,026,465
966,749
Creditors: amounts falling due within one year
16
(189,571)
(212,060)
Net current assets
836,894
754,689
Total assets less current liabilities
2,154,597
2,072,392
Creditors: amounts falling due after more than one year
17
(2,794,208)
(2,695,777)
Net liabilities
(639,611)
(623,385)
Capital and reserves
Called up share capital
23
488
488
Share premium account
137,697
137,697
Profit and loss reserves
(777,796)
(761,570)
Total equity
(639,611)
(623,385)
As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s loss for the year was £16,226 (2022 - £14,088 loss).
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:
26 September 2023
D W E Orr
Director
Company Registration No. 03837995
FENCOR PACKAGING GROUP LTD
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2023
- 10 -
Share capital
Share premium account
Revaluation reserve
Profit and loss reserves
Total
£
£
£
£
£
Balance at 1 April 2021
488
137,697
260,998
3,570,697
3,969,880
Year ended 31 March 2022:
Profit for the year
-
-
-
1,690,669
1,690,669
Other comprehensive income:
Revaluation of tangible fixed assets
-
-
(7,462)
-
(7,462)
Total comprehensive income for the year
-
-
(7,462)
1,690,669
1,683,207
Transfers
-
-
-
7,462
7,462
Balance at 31 March 2022
488
137,697
253,536
5,268,828
5,660,549
Year ended 31 March 2023:
Profit for the year
-
-
-
1,187,252
1,187,252
Other comprehensive income:
Revaluation of tangible fixed assets
-
-
(7,462)
-
(7,462)
Total comprehensive income for the year
-
-
(7,462)
1,187,252
1,179,790
Transfers
-
-
-
7,462
7,462
Balance at 31 March 2023
488
137,697
246,074
6,463,542
6,847,801
FENCOR PACKAGING GROUP LTD
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2023
- 11 -
Share capital
Share premium account
Profit and loss reserves
Total
£
£
£
£
As restated for the period ended 31 March 2022:
Balance at 1 April 2021
488
137,697
333,149
471,334
Effect of prior year adjustment (note 30)
-
-
(1,080,632)
(1,080,632)
As restated
488
137,697
(747,483)
(609,298)
Year ended 31 March 2022:
Loss and total comprehensive income for the year
-
-
(14,087)
(14,087)
Balance at 31 March 2022
488
137,697
(761,570)
(623,385)
Year ended 31 March 2023:
Loss and total comprehensive income for the year
-
-
(16,226)
(16,226)
Balance at 31 March 2023
488
137,697
(777,796)
(639,611)
FENCOR PACKAGING GROUP LTD
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2023
- 12 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
28
3,605,489
1,987,559
Interest paid
(249,890)
(188,683)
Income taxes refunded
127,715
29,288
Net cash inflow from operating activities
3,483,314
1,828,164
Investing activities
Purchase of tangible fixed assets
(1,823,648)
(2,508,052)
Proceeds from disposal of tangible fixed assets
392
24,890
Repayment of loans
(25,491)
-
Interest received
20,487
8,237
Net cash used in investing activities
(1,828,260)
(2,474,925)
Financing activities
Repayment of borrowings
-
(18,412)
Repayment of bank loans
(69,970)
(139,777)
Net proceeds/payment of finance leases obligations
(494,338)
944,325
Net cash (used in)/generated from financing activities
(564,308)
786,136
Net increase in cash and cash equivalents
1,090,746
139,375
Cash and cash equivalents at beginning of year
(472,024)
(611,399)
Cash and cash equivalents at end of year
618,722
(472,024)
Relating to:
Cash at bank and in hand
1,359,796
604,036
Bank overdrafts and sales invoice finance facilities included in creditors payable within one year
(741,074)
(1,076,060)
FENCOR PACKAGING GROUP LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
- 13 -
1
Accounting policies
Company information
Fencor Packaging Group Ltd (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is 200 Station Road, Whittlesey, Peterborough, PE7 2HA.
The group consists of Fencor Packaging Group Ltd and all of its subsidiaries.
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. The principal accounting policies adopted are set out below.
1.2
Business combinations
In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets purchased, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. Iinvestments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.
1.3
Basis of consolidation
The consolidated group financial statements consist of the financial statements of the parent company Fencor Packaging Group Ltd together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.
All financial statements are made up to 31 March 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.
1.4
Going concern
At the time of approving the financial statements, the directors have a reasonable expectation that the group 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.
1.5
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
FENCOR PACKAGING GROUP LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 14 -
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.
1.6
Intangible fixed assets - goodwill
Goodwill represents the excess of the cost of acquisition of a business 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.
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.
1.7
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Freehold land and buildings
2% of deemed cost/cost
Leasehold land and buildings
over the term of the lease
Plant and equipment
10%/20% per annum of costs
Fixtures and fittings
15%/20%/33% per annum of cost
Motor vehicles
20%/25% per annum of cost/reducing balance
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 recognised in the profit and loss account.
1.8
Fixed asset investments
Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.
In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
1.9
Impairment of fixed assets
At each reporting period end date, the group 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). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
FENCOR PACKAGING GROUP LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 15 -
Recoverable amount is the higher of fair value less costs to sell and value in use.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) 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 (or cash-generating unit) 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 (or cash-generating unit) 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.
1.10
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.
1.11
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, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.12
Financial instruments
The group 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 group's balance sheet when the group 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.
FENCOR PACKAGING GROUP LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 16 -
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.
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 group 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 group after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, 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 payments 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
Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
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 through 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 group's contractual obligations expire or are discharged or cancelled.
FENCOR PACKAGING GROUP LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 17 -
1.13
Equity instruments
Equity instruments issued by the group 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 group.
1.14
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 group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
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 if, and only if, there is 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.
1.15
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.
1.16
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.17
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.
FENCOR PACKAGING GROUP LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 18 -
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 leased asset are consumed.
1.18
Government grants
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.
1.19
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 in the period are included in profit or loss.
2
Judgements and key sources of estimation uncertainty
In the application of the group’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.
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
Depreciation
Depreciation is recognised to write off the cost or valuation of assets less their residual values over their useful lives at the rates detailed in Note 1.7. The provision for depreciation for the group at the beginning and end of the period, together with the charge for the year is shown in Note 12.
Amortisation
Amortisation is recognised to write off the cost or valuation of goodwill less its residual values over its expected life at the rates detailed in Note 1.6. The provision for amortisation for the group at the beginning and end of the period, together with the charge for the year is shown in Note 11.
3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Manufacture of commercial print & corrugated packaging
23,434,438
25,399,115
FENCOR PACKAGING GROUP LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
3
Turnover and other revenue
(Continued)
- 19 -
2023
2022
£
£
Turnover analysed by geographical market
UK and Republic of Ireland
23,434,438
25,351,785
EU
-
47,330
23,434,438
25,399,115
2023
2022
£
£
Other revenue
Interest income
20,487
8,237
Grants received
5,000
5,000
4
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging/(crediting):
Government grants
(5,000)
(5,000)
Depreciation of owned tangible fixed assets
628,862
651,474
Depreciation of tangible fixed assets held under finance leases
400,115
261,284
Profit on disposal of tangible fixed assets
(392)
(24,890)
Amortisation of intangible assets
68,053
68,556
Operating lease charges
673,090
633,571
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
5,000
5,000
Audit of the financial statements of the company's subsidiaries
15,770
14,740
20,770
19,740
FENCOR PACKAGING GROUP LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 20 -
6
Employees
The average monthly number of persons (including directors) employed by the group and company during the year was:
Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
Management
14
13
5
4
Administration
56
56
-
-
Production
97
96
-
-
Drivers
6
7
-
-
Total
173
172
5
4
Their aggregate remuneration comprised:
Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
5,089,918
5,106,383
997,980
849,008
Social security costs
441,322
397,476
125,719
109,895
Pension costs
151,288
135,649
35,440
30,246
5,682,528
5,639,508
1,159,139
989,149
7
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
549,620
472,273
Company pension contributions to defined contribution schemes
21,730
15,180
571,350
487,453
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
127,970
127,375
Company pension contributions to defined contribution schemes
9,000
9,000
FENCOR PACKAGING GROUP LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 21 -
8
Interest receivable and similar income
2023
2022
£
£
Interest income
Other interest income
20,487
8,237
9
Interest payable and similar expenses
2023
2022
£
£
Interest on bank overdrafts and loans
57,235
36,892
Interest on invoice finance arrangements
89,469
66,143
Interest on finance leases and hire purchase contracts
103,186
85,648
Total finance costs
249,890
188,683
10
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
107,588
(127,991)
Adjustments in respect of prior periods
(29,287)
Total current tax
107,588
(157,278)
Deferred tax
Origination and reversal of timing differences
225,099
286,049
Total tax charge
332,687
128,771
FENCOR PACKAGING GROUP LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
10
Taxation
(Continued)
- 22 -
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
1,519,939
1,819,440
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2022: 19.00%)
288,788
345,694
Tax effect of expenses that are not deductible in determining taxable profit
23,070
20,887
Tax effect of income not taxable in determining taxable profit
(1,564)
Unutilised tax losses carried forward
2,450
Effect of change in corporation tax rate
242,679
-
Permanent capital allowances in excess of depreciation
(46,765)
(86,354)
Depreciation on assets not qualifying for tax allowances
-
8,372
Amortisation on assets not qualifying for tax allowances
10,745
10,745
Research and development tax credit
(180,135)
(182,798)
Other permanent differences
671
40,626
Under/(over) provided in prior years
(29,287)
Utilisation of tax losses carried forward
(6,366)
Taxation charge
332,687
128,771
11
Intangible fixed assets
Group
Goodwill
£
Cost
At 1 April 2022 and 31 March 2023
2,006,702
Amortisation and impairment
At 1 April 2022
1,668,373
Amortisation charged for the year
68,053
At 31 March 2023
1,736,426
Carrying amount
At 31 March 2023
270,276
At 31 March 2022
338,329
The company had no intangible fixed assets at 31 March 2023 or 31 March 2022.
FENCOR PACKAGING GROUP LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 23 -
12
Tangible fixed assets
Group
Freehold land and buildings
Leasehold land and buildings
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 April 2022
2,791,964
275,421
8,716,589
600,781
143,504
12,528,259
Additions
1,108,248
28,009
337,498
27,950
321,943
1,823,648
Disposals
(91,112)
(189,856)
(92,601)
(373,569)
At 31 March 2023
3,900,212
303,430
8,962,975
438,875
372,846
13,978,338
Depreciation and impairment
At 1 April 2022
735,407
160,987
3,913,750
497,913
99,513
5,407,570
Depreciation charged in the year
64,401
36,547
827,984
41,749
58,296
1,028,977
Eliminated in respect of disposals
(91,112)
(189,856)
(92,601)
(373,569)
At 31 March 2023
799,808
197,534
4,650,622
349,806
65,208
6,062,978
Carrying amount
At 31 March 2023
3,100,404
105,896
4,312,353
89,069
307,638
7,915,360
At 31 March 2022
2,056,557
114,434
4,802,839
102,868
43,991
7,120,689
The company had no tangible fixed assets at 31 March 2023 or 31 March 2022.
13
Fixed asset investments
Group
Company
2023
2022
2023
2022
£
£
£
£
Unlisted investments
420,841
420,841
1,317,703
1,317,703
Movements in fixed asset investments
Group
Investments
£
Cost or valuation
At 1 April 2022 and 31 March 2023
420,841
Carrying amount
At 31 March 2023
420,841
At 31 March 2022
420,841
FENCOR PACKAGING GROUP LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
13
Fixed asset investments
(Continued)
- 24 -
Movements in fixed asset investments
Company
Investments
£
Cost or valuation
At 1 April 2022 and 31 March 2023
1,317,703
Carrying amount
At 31 March 2023
1,317,703
At 31 March 2022
1,317,703
14
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Finished goods and goods for resale
585,080
785,396
15
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
3,033,969
4,567,698
Corporation tax recoverable
276
127,991
Amounts owed by group undertakings
-
-
4,605
4,605
Other debtors
705,651
642,957
503,750
441,056
Prepayments and accrued income
575,316
534,247
3,681
4,315,212
5,872,893
512,036
445,661
Deferred tax asset (note 20)
3,527
5,154
4,315,212
5,872,893
515,563
450,815
Amounts falling due after more than one year:
Amounts owed by group undertakings
-
-
450,091
450,091
Total debtors
4,315,212
5,872,893
965,654
900,906
FENCOR PACKAGING GROUP LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 25 -
16
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and sales invoice finance facilities
18
827,202
1,160,006
20,293
20,293
Obligations under finance leases
19
841,975
745,146
Trade creditors
1,947,032
2,594,031
10,239
24,426
Corporation tax payable
107,588
Other taxation and social security
545,802
711,584
64,126
57,271
Other creditors
38,499
36,747
28,513
26,521
Accruals and deferred income
341,904
427,139
66,400
83,549
4,650,002
5,674,653
189,571
212,060
17
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
18
1,018,626
1,090,778
258,731
276,935
Obligations under finance leases
19
1,349,284
1,940,451
Amounts owed to group undertakings
2,535,477
2,418,842
2,367,910
3,031,229
2,794,208
2,695,777
18
Loans and overdrafts
Group
Company
2023
2022
2023
2022
£
£
£
£
Bank loans
1,104,754
1,174,724
279,024
297,228
Sales invoice finance facilities
741,074
1,076,060
1,845,828
2,250,784
279,024
297,228
Payable within one year
827,202
1,160,006
20,293
20,293
Payable after one year
1,018,626
1,090,778
258,731
276,935
Bank loans, other borrowings and sales invoice finance facilities includes amounts totalling £1,845,828 (2022: £2,250,784) which are secured by fixed and floating charges over the group's assets.
The group and company has a term loan of £279,024 (2022: £297,228) repayable over a remaining period of 10 years with an interest rate of 2.66% over the Barclays base rate, a mortgage of £825,730 (2022: £877,496) repayable over a remaining term of 13 years with a floating interest rate which will never be less that 2.88%.
FENCOR PACKAGING GROUP LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 26 -
19
Finance lease obligations
Group
Company
2023
2022
2023
2022
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
904,593
815,306
In two to five years
1,398,202
2,054,932
2,302,795
2,870,238
-
-
Less: future finance charges
(111,536)
(184,641)
2,191,259
2,685,597
Finance lease payments represent rentals payable by the company or group for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is three 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.
20
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:
Liabilities
Liabilities
Assets
Assets
2023
2022
2023
2022
Group
£
£
£
£
Accelerated capital allowances
1,004,379
780,907
-
-
Tax losses
(3,527)
(5,154)
-
-
1,000,852
775,753
-
-
Liabilities
Liabilities
Assets
Assets
2023
2022
2023
2022
Company
£
£
£
£
Tax losses
-
-
3,527
5,154
FENCOR PACKAGING GROUP LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
20
Deferred taxation
(Continued)
- 27 -
Group
Company
2023
2023
Movements in the year:
£
£
Liability/(Asset) at 1 April 2022
775,753
(5,154)
Charge to profit or loss
225,099
1,627
Liability/(Asset) at 31 March 2023
1,000,852
(3,527)
The deferred tax liability set out above is expected to reverse and relates to accelerated capital allowances.
21
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
151,288
135,649
A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.
22
Share-based payment transactions
In accordance with FRS 102, the fair value of share options are measured at the grant date.
Group and company
Number of share options
Weighted average exercise price
2023
2022
2023
2022
Number
Number
£
£
Outstanding at 1 April 2022
24
20
1.00
1.00
Granted
-
4
-
1.00
Outstanding at 31 March 2023
24
24
1.00
1.00
Exercisable at 31 March 2023
-
-
-
-
The options outstanding at 31 March 2023 have an exercise price of £1, and can only be exercised by the option holders on the sale of the company.
23
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
488
488
488
488
FENCOR PACKAGING GROUP LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 28 -
24
Financial commitments, guarantees and contingent liabilities
The company provides a cross guarantee and debenture in support of group bank and finance facilities.
25
Operating lease commitments
Lessee
At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
Group
Company
2023
2022
2023
2022
£
£
£
£
Within one year
796,316
904,113
-
-
Between two and five years
2,131,058
2,451,890
-
-
In over five years
563,605
833,217
-
-
3,490,979
4,189,220
-
-
26
Capital commitments
Amounts contracted for but not provided in the financial statements in respect to capital expenditure commitments;
Group
Company
2023
2022
2023
2022
£
£
£
£
Acquisition of tangible fixed assets
-
1,019,187
-
-
27
Related party transactions
Transactions with related parties
During the year the group entered into the following transactions with related parties:
Sales
Sales
Purchases
Purchases
2023
2022
2023
2022
£
£
£
£
Group
Other related parties
478,640
309,709
3,245,043
4,632,243
Interest
2023
2022
£
£
Group
Other related parties
14,327
7,167
FENCOR PACKAGING GROUP LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
27
Related party transactions
(Continued)
- 29 -
During the year, the group made no further loans to a company in which it holds a minority shareholding. Interest was charged on the total loan of £14,327 (2022: £7,167).
During the year, the group made a further loan of £30,000 (2022: £30,000) to a related party. No interest is charged on this loan.
The following amounts were outstanding at the reporting end date:
Amounts due to related parties
2023
2022
£
£
Group
Other related parties
486,737
866,587
Company
Entities with control, joint control or significant influence over the company
2,535,477
2,418,842
The following amounts were outstanding at the reporting end date:
Amounts due from related parties
2023
2022
Balance
Balance
£
£
Group
Key management personnel
25,491
-
Other related parties
262,366
286,993
Company
Entities with control, joint control or significant influence over the company
454,696
454,696
Key management personnel
25,491
-
Other related parties
478,259
441,056
An amount of £25,000 was advanced in the year to key management personnel. Interest was charged at 2% on the amount advanced.
FENCOR PACKAGING GROUP LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 30 -
28
Cash generated from group operations
2023
2022
£
£
Profit for the year after tax
1,187,252
1,690,669
Adjustments for:
Taxation charged
332,687
128,771
Finance costs
249,890
188,683
Investment income
(20,487)
(8,237)
Gain on disposal of tangible fixed assets
(392)
(24,890)
Amortisation and impairment of intangible assets
68,053
68,556
Depreciation and impairment of tangible fixed assets
1,028,978
912,758
Movements in working capital:
Decrease in stocks
200,316
84,517
Decrease/(increase) in debtors
1,455,457
(732,073)
Decrease in creditors
(891,264)
(316,195)
Decrease in deferred income
(5,000)
(5,000)
Cash generated from operations
3,605,490
1,987,559
29
Analysis of changes in net debt - group
1 April 2022
Cash flows
31 March 2023
£
£
£
Cash at bank and in hand
604,036
755,760
1,359,796
Sales invoice finance facilities
(1,076,060)
334,986
(741,074)
(472,024)
1,090,746
618,722
Borrowings excluding sale invoice finance facilities
(1,174,724)
69,970
(1,104,754)
Obligations under finance leases
(2,685,597)
494,338
(2,191,259)
(4,332,345)
1,655,054
(2,677,291)
30
Prior period adjustment
Changes to the balance sheet - group
As previously reported
Adjustment
As restated at 31 Mar 2022
£
£
£
Net assets
5,660,549
-
5,660,549
Capital and reserves
Total equity
5,660,549
-
5,660,549
FENCOR PACKAGING GROUP LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
30
Prior period adjustment
(Continued)
- 31 -
Changes to the balance sheet - company
As previously reported
Adjustment
As restated at 31 Mar 2022
£
£
£
Fixed assets
Investments
2,398,335
(1,080,632)
1,317,703
Capital and reserves
Profit and loss reserves
319,062
(1,080,632)
(761,570)
Notes to reconciliation
The prior period adjustment relates to the impairment of the cost of investment in two dormant subsidiary companies, ACH Corrugated Cases Ltd and Lee Packaging Ltd, in the individual company accounts of Fencor Packaging Group Limited.
There is no change in the consolidated group accounts or impact on profits or net assets of the group.
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