Company Registration No. 01045291 (England and Wales)
OPM (LABELS & PACKAGING) GROUP LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2023
OPM (LABELS & PACKAGING) GROUP LIMITED
COMPANY INFORMATION
Directors
Mr A C Ellison
Miss C L Ellison
Mr S M Walker
Mrs S J Ellison
Mr C J Ellison
Mr S McCormick
Mr P Smith
(Appointed 1 June 2023)
Company number
01045291
Registered office
The Colour Box
55 Gelderd Road
Leeds
LS12 6TG
Auditor
TC Group
6 Queen Street
Leeds
West Yorkshire
LS1 2TW
Solicitors
Clarion Solicitors
Elizabeth House
13-19 Queen Street
Leeds
West Yorkshire
LS1 2TW
OPM (LABELS & PACKAGING) GROUP LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 8
Group statement of comprehensive income
9
Group balance sheet
10 - 11
Company balance sheet
12 - 13
Group statement of changes in equity
14
Company statement of changes in equity
15
Group statement of cash flows
16
Notes to the financial statements
17 - 34
OPM (LABELS & PACKAGING) GROUP LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 JANUARY 2023
- 1 -

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

Fair review of the business

These financial statements present the consolidated results of OPM (Labels & Packaging) Group Limited and OPM Advance Limited (collectively "the Group").

 

The principal activity of the Group is the manufacture and supply of innovative, functional, and highly decorated self-adhesive labels, flexible packaging, thermal printing machines and associated products to commercial organisations.

 

Investment and innovation:

 

In line with previous years' strategies, the Group has continued to innovate both new products and processes, further strengthened by the investment of £3.9M in plant and machinery, automation, and MIS/artwork workflows, to maximise customer service offerings and improve overall operating efficiency from the Groups state of the art manufacturing site in Leeds.

 

Further intellectual property protection has been sought against both product and processes.

 

Group Performance:

 

2022/23 saw a sales increase by over £4M to more than £27M. Unfortunately, operating margins were impacted by material supply interruptions and severe cost price fluctuations as a direct result of the Finnish pulp paper manufacturers industrial action. This disruption lasted from Christmas 2021 until May 2022 and beyond with its inevitable residual impact felt within the supply chain until November 2022. The Group was best placed to ensure through significant stock holding and excellent supplier relationships its ability to continue to supply its valued clients almost uninterrupted. The directors would like to thank our loyal client base for their forecasting and understanding through this difficult period. The Group extends appreciation to our both our supply partners and of course all OPM team members who helped navigate this difficult time.

 

Outlook:

 

The Group is proud to announce that 2022 saw the formation of OPM (Labels & Packaging) Group Limited (America), this US based footprint best places the group to continue licencing the manufacturing of its patented and highly innovative reclosure and multi layered products across new and exciting territories previously not accessed.

 

The Group continues to adopt a policy of investment, enabling production of value-added multi-channel offerings to both enhance the commercial value of our products for our clients end use, and further strengthen our market position as a high-quality value driven innovative supplier in a competitive sector.

 

The directors continue to believe the Group is well positioned to move forward and increase its market share in the foreseeable future.

Principal risks and uncertainties

Competitive market forces continue to represent risk. OPM look to minimise these risks through continued development of long-term relationships with our partners and ongoing investment in efficient workflows and systems. This enables the business to extract maximum value from ongoing capital investment, and research and development.

OPM (LABELS & PACKAGING) GROUP LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2023
- 2 -

On behalf of the board

Mr S McCormick
Director
23 October 2023
OPM (LABELS & PACKAGING) GROUP LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 JANUARY 2023
- 3 -

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

Principal activities

The principal activity of the company and group is the manufacture of printed labels.

Results and dividends

The results for the year are set out on page 9.

Ordinary dividends were paid amounting to £750,000 (2022 - £117,050). 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:

Mr I D M Bell
(Resigned 14 April 2023)
Mr A C Ellison
Miss C L Ellison
Mr S M Walker
Mrs S J Ellison
Mr C J Ellison
Mr S McCormick
Mr P Smith
(Appointed 1 June 2023)
Strategic report

The truegroup has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the group's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report.

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.

On behalf of the board
Mr S McCormick
Director
23 October 2023
OPM (LABELS & PACKAGING) GROUP LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 JANUARY 2023
- 4 -

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:

 

 

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.

OPM (LABELS & PACKAGING) GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF OPM (LABELS & PACKAGING) GROUP LIMITED
- 5 -
Opinion

We have audited the financial statements of OPM (Labels & Packaging) Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 January 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 FRS 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 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.

OPM (LABELS & PACKAGING) GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF OPM (LABELS & PACKAGING) GROUP LIMITED
- 6 -

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:

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 its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report and the directors' report.

 

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

 

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 company or to cease operations, or have no realistic alternative but to do so.

OPM (LABELS & PACKAGING) GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF OPM (LABELS & PACKAGING) GROUP LIMITED
- 7 -
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.

Extent to which the audit was capable of detecting irregularities, including fraud

The objectives of our audit, in respect of fraud, are: to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses; and to respond appropriately to fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and its management.

 

Our approach was as follows:

 

OPM (LABELS & PACKAGING) GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF OPM (LABELS & PACKAGING) GROUP LIMITED
- 8 -

Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Where the risk was considered to be higher, we performed audit procedures to address each identified risk. These procedures included: testing manual journals; reviewing the financial statement disclosures and testing to supporting documentation; performing analytical procedures; and enquiring of management, and were designed to provide reasonable assurance that the financial statements were free from material fraud or error.

 

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. We are not responsible for preventing non-compliance and cannot be expected to detect all non-compliance with laws and regulations.

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.

Our report

This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in 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.

Steven Williams FCA (Senior Statutory Auditor)
For and on behalf of TC Group
25 October 2023
Statutory Auditor
6 Queen Street
Leeds
West Yorkshire
LS1 2TW
OPM (LABELS & PACKAGING) GROUP LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 JANUARY 2023
- 9 -
2023
2022
Notes
£
£
Turnover
3
27,042,588
23,092,743
Cost of sales
(18,511,099)
(14,735,485)
Gross profit
8,531,489
8,357,258
Administrative expenses
(4,821,315)
(4,598,172)
Operating profit
4
3,710,174
3,759,086
Interest payable and similar expenses
8
(32,130)
(36,546)
Profit before taxation
3,678,044
3,722,540
Tax on profit
9
(606,044)
(635,239)
Profit for the financial year
21
3,072,000
3,087,301
Profit for the financial year is attributable to:
- Owners of the parent company
3,053,681
3,089,383
- Non-controlling interests
18,319
(2,082)
3,072,000
3,087,301
Total comprehensive income for the year is attributable to:
- Owners of the parent company
3,053,681
3,089,383
- Non-controlling interests
18,319
(2,082)
3,072,000
3,087,301
OPM (LABELS & PACKAGING) GROUP LIMITED
GROUP BALANCE SHEET
AS AT 31 JANUARY 2023
31 January 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
11
7,520,186
4,874,794
Current assets
Stocks
14
1,986,839
1,608,050
Debtors
15
8,042,560
6,860,031
Cash at bank and in hand
2,917,264
3,621,427
12,946,663
12,089,508
Creditors: amounts falling due within one year
16
(4,347,024)
(4,681,009)
Net current assets
8,599,639
7,408,499
Total assets less current liabilities
16,119,825
12,283,293
Creditors: amounts falling due after more than one year
17
(1,437,255)
(484,775)
Provisions for liabilities
Deferred tax liability
18
1,166,114
604,062
(1,166,114)
(604,062)
Net assets
13,516,456
11,194,456
Capital and reserves
Called up share capital
20
3,801
3,801
Share premium account
21
26,943
26,943
Capital redemption reserve
21
816
816
Profit and loss reserves
21
13,460,577
11,156,896
Equity attributable to owners of the parent company
13,492,137
11,188,456
Non-controlling interests
24,319
6,000
13,516,456
11,194,456
OPM (LABELS & PACKAGING) GROUP LIMITED
GROUP BALANCE SHEET (CONTINUED)
AS AT 31 JANUARY 2023
31 January 2023
- 11 -
The financial statements were approved by the board of directors and authorised for issue on 23 October 2023 and are signed on its behalf by:
23 October 2023
Mrs S J Ellison
Mr C J Ellison
Director
Director
OPM (LABELS & PACKAGING) GROUP LIMITED
COMPANY BALANCE SHEET
AS AT 31 JANUARY 2023
31 January 2023
- 12 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
11
7,520,186
4,874,794
Investments
12
752
752
7,520,938
4,875,546
Current assets
Stocks
14
1,986,839
1,608,050
Debtors
15
8,036,069
6,882,597
Cash at bank and in hand
2,781,422
3,596,766
12,804,330
12,087,413
Creditors: amounts falling due within one year
16
(4,301,965)
(4,632,914)
Net current assets
8,502,365
7,454,499
Total assets less current liabilities
16,023,303
12,330,045
Creditors: amounts falling due after more than one year
17
(1,437,255)
(484,775)
Provisions for liabilities
Deferred tax liability
18
1,166,114
604,062
(1,166,114)
(604,062)
Net assets
13,419,934
11,241,208
Capital and reserves
Called up share capital
20
3,801
3,801
Share premium account
21
26,943
26,943
Capital redemption reserve
21
816
816
Profit and loss reserves
21
13,388,374
11,209,648
Total equity
13,419,934
11,241,208

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £2,928,726 (2022 - £2,955,630 profit).

OPM (LABELS & PACKAGING) GROUP LIMITED
COMPANY BALANCE SHEET (CONTINUED)
AS AT 31 JANUARY 2023
31 January 2023
- 13 -
The financial statements were approved by the board of directors and authorised for issue on 23 October 2023 and are signed on its behalf by:
23 October 2023
Mrs S J Ellison
Mr C J Ellison
Director
Director
Company Registration No. 01045291
OPM (LABELS & PACKAGING) GROUP LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JANUARY 2023
- 14 -
Share capital
Share premium account
Capital redemption reserve
Profit and loss reserves
Total controlling interest
Non-controlling interest
Total
Notes
£
£
£
£
£
£
£
Balance at 1 February 2021
3,684
-
0
816
8,184,563
8,189,063
8,082
8,197,145
Year ended 31 January 2022:
Profit and total comprehensive income for the year
-
-
-
3,089,383
3,089,383
(2,082)
3,087,301
Issue of share capital
20
117
26,943
-
-
27,060
-
27,060
Dividends
10
-
-
-
(117,050)
(117,050)
-
(117,050)
Balance at 31 January 2022
3,801
26,943
816
11,156,896
11,188,456
6,000
11,194,456
Year ended 31 January 2023:
Profit and total comprehensive income for the year
-
-
-
3,053,681
3,053,681
18,319
3,072,000
Dividends
10
-
-
-
(750,000)
(750,000)
-
(750,000)
Balance at 31 January 2023
3,801
26,943
816
13,460,577
13,492,137
24,319
13,516,456
OPM (LABELS & PACKAGING) GROUP LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JANUARY 2023
- 15 -
Share capital
Share premium account
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 February 2021
3,684
-
0
816
8,371,068
8,375,568
Year ended 31 January 2022:
Profit and total comprehensive income for the year
-
-
-
2,955,630
2,955,630
Issue of share capital
20
117
26,943
-
-
27,060
Dividends
10
-
-
-
(117,050)
(117,050)
Balance at 31 January 2022
3,801
26,943
816
11,209,648
11,241,208
Year ended 31 January 2023:
Profit and total comprehensive income for the year
-
-
-
2,928,726
2,928,726
Dividends
10
-
-
-
(750,000)
(750,000)
Balance at 31 January 2023
3,801
26,943
816
13,388,374
13,419,934
OPM (LABELS & PACKAGING) GROUP LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 JANUARY 2023
- 16 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
27
2,894,949
3,460,748
Interest paid
(32,130)
(36,546)
Income taxes paid
(340,607)
(384,265)
Net cash inflow from operating activities
2,522,212
3,039,937
Investing activities
Purchase of tangible fixed assets
(3,899,221)
(1,517,639)
Proceeds on disposal of tangible fixed assets
307,005
50,583
Net cash used in investing activities
(3,592,216)
(1,467,056)
Financing activities
Proceeds from issue of shares
-
27,060
Net movement on finance leases obligations
1,125,018
(60,877)
Dividends paid to equity shareholders
(750,000)
(117,050)
Net cash generated from/(used in) financing activities
375,018
(150,867)
Net (decrease)/increase in cash and cash equivalents
(694,986)
1,422,014
Cash and cash equivalents at beginning of year
3,612,250
2,190,236
Cash and cash equivalents at end of year
2,917,264
3,612,250
Relating to:
Cash at bank and in hand
2,917,264
3,621,427
Bank overdrafts included in creditors payable within one year
-
(9,177)
OPM (LABELS & PACKAGING) GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2023
- 17 -
1
Accounting policies
Company information

OPM (Labels & Packaging) Group Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is The Colour Box, 55 Gelderd Road, Leeds, LS12 6TG.

 

The group consists of OPM (Labels & Packaging) Group Limited 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 £1.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2
Summary of disclosure exemptions

FRS 102 allows a qualifying entity certain disclosure exemptions. The Company has taken advantage of the following available exemptions:

1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company OPM (Labels & Packaging) Group Limited 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 January 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.

OPM (LABELS & PACKAGING) GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2023
1
Accounting policies
(Continued)
- 18 -
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.

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

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
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:

Leasehold land and buildings
12% straight line
Leasehold improvements
12.5% and 33.3% straight line
Plant and equipment
10% straight line and 20% reducing balance
Fixtures and fittings
10% and 25% straight line and 20% reducing balance
Motor vehicles
20% straight line and 25% reducing balance
Leased assets
33.3% 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 recognised in the profit and loss account.

1.7
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.

OPM (LABELS & PACKAGING) GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2023
1
Accounting policies
(Continued)
- 19 -
1.8
Investment property

Property that is held for long term rental yields or for capital appreciation or both, and that is not occupied by the Group, is classified as investment property.

 

Investment property is initially measured at cost (comprising the purchase price after deduction of discounts and rebates, and any other directly attributable costs) and is subsequently remeasured to fair value at each reporting date.

 

Changes in fair value are recorded in the profit and loss account in the year in which the change relates.

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.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

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.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

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.

OPM (LABELS & PACKAGING) GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2023
1
Accounting policies
(Continued)
- 20 -
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.

 

Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

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.

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 and bank loans, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future 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.

OPM (LABELS & PACKAGING) GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2023
1
Accounting policies
(Continued)
- 21 -
1.13
Borrowings

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

 

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

 

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

1.14
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.

1.15
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.

OPM (LABELS & PACKAGING) GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2023
1
Accounting policies
(Continued)
- 22 -
1.16
Provisions

Provisions are recognised when the group has a legal or constructive present obligation as a result of a past event, it is probable that the group will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

 

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

1.17
Retirement benefits

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

 

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

1.18
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.

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.

OPM (LABELS & PACKAGING) GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2023
2
Judgements and key sources of estimation uncertainty
(Continued)
- 23 -
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.

Useful economic lives of tangible fixed assets

The annual depreciation charge for tangible fixed assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually.

 

They are amended when necessary to reflect current estimates based on technological advancement, future investments, economic utilisation and the physical condition of the assets.

 

The carrying value of tangible fixed assets is detailed in note 11 and the useful economic life of each category of fixed asset is set out in the accounting policies, under "tangible fixed assets" above.

Impairment of trade and other debtors

The Group makes an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade and other debtors, management considers factors including the ageing profile and historical experience. The carrying value of trade debtors and the associated provision is set out in note 15.

3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Sale of goods
27,042,588
23,092,743
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
22,256,049
19,616,958
Rest of Europe
4,479,071
3,475,785
Worldwide
307,468
-
27,042,588
23,092,743
OPM (LABELS & PACKAGING) GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2023
- 24 -
4
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange differences apart from those arising on financial instruments measured at fair value through profit or loss
17,320
(11,698)
Depreciation of owned tangible fixed assets
1,097,576
1,026,999
Profit on disposal of tangible fixed assets
(150,752)
(16,822)
Operating lease expenses
293,353
280,262
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
13,200
11,900
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
Production
44
47
42
47
Administration and support
24
25
24
25
Sales, marketing and distribution
14
13
14
13
Total
82
85
80
85
OPM (LABELS & PACKAGING) GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2023
6
Employees
(Continued)
- 25 -

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
3,134,109
2,963,245
3,134,109
2,963,245
Social security costs
339,272
306,866
339,272
306,866
Pension costs
149,928
237,971
149,928
237,971
3,623,309
3,508,082
3,623,309
3,508,082
7
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
474,707
504,606
Company pension contributions to defined contribution schemes
34,394
129,973
509,101
634,579
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
123,299
109,347
Company pension contributions to defined contribution schemes
8,160
4,500
8
Interest payable and similar expenses
2023
2022
£
£
Other finance costs:
Interest on finance leases and hire purchase contracts
32,024
36,172
Other interest
106
374
Total finance costs
32,130
36,546
OPM (LABELS & PACKAGING) GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2023
- 26 -
9
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
33,607
341,605
Adjustments in respect of prior periods
10,385
(12,348)
Total current tax
43,992
329,257
Deferred tax
Origination and reversal of timing differences
562,052
221,186
Changes in tax rates
-
0
91,891
Adjustment in respect of prior periods
-
0
(7,095)
Total deferred tax
562,052
305,982
Total tax charge
606,044
635,239

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
3,678,044
3,722,540
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2022: 19.00%)
698,828
707,283
Tax effect of expenses that are not deductible in determining taxable profit
7,556
7,625
Adjustments in respect of prior years
10,385
(12,348)
Permanent capital allowances in excess of depreciation
(213,075)
-
0
Deferred tax adjustments in respect of prior years
-
0
(7,095)
Fixed asset differences
-
0
(71,965)
Adjustment in research and development tax credit leading to an increase (decrease) in the tax charge
(32,541)
(30,473)
Deferred tax expense/(credit) relating to changes in tax rates and laws
134,892
144,975
Per signed accounts - overprovision CY
-
0
998
Movement in deferred tax not recognised
-
2
Other differences leading to an increase (decrease) in tax charge
-
(103,763)
Unexplained difference
(1)
-
Taxation charge
606,044
635,239
OPM (LABELS & PACKAGING) GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2023
- 27 -
10
Dividends
2023
2022
Recognised as distributions to equity holders:
£
£
Interim paid
750,000
117,050
11
Tangible fixed assets
Group and company
Leasehold land and buildings
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 February 2022
321,193
10,109,401
666,695
519,995
11,617,284
Additions
-
0
3,660,301
37,369
201,551
3,899,221
Disposals
-
0
(1,175,638)
-
0
(98,829)
(1,274,467)
At 31 January 2023
321,193
12,594,064
704,064
622,717
14,242,038
Depreciation and impairment
At 1 February 2022
295,801
5,633,234
533,866
279,589
6,742,490
Depreciation charged in the year
15,614
895,953
49,007
137,002
1,097,576
Eliminated in respect of disposals
-
0
(1,061,457)
-
0
(56,757)
(1,118,214)
At 31 January 2023
311,415
5,467,730
582,873
359,834
6,721,852
Carrying amount
At 31 January 2023
9,778
7,126,334
121,191
262,883
7,520,186
At 31 January 2022
25,392
4,476,167
132,829
240,406
4,874,794

Leased assets

Included within the net book value of tangible fixed assets is £3,565,962 in respect of assets held under finance leases and similar hire purchase contracts. Depreciation for the year on these assets was £255,950.

 

Included within the net book value of land and buildings above is £9,778 (2022 - £25,392) in respect of long leasehold land and buildings.

OPM (LABELS & PACKAGING) GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2023
- 28 -
12
Fixed asset investments
Company
2023
2022
Notes
£
£
Investments in subsidiaries
13
752
752
752
752
13
Subsidiaries

Details of the company's subsidiaries at 31 January 2023 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
OPM Flexibles Limited
The Colour Box, 55 Gelderd Road, Leeds, LS12 6TG
Ordinary
100.00
OPM Group Limited
As above
Ordinary
100.00
OPM Advance Limited
As above
Ordinary
75.00
OPM (Labels and Packaging) Limited
560 Sylvan Avenue, Suite 3061, Englewood Cliffs, NJ 07632
Ordinary
100.00

OPM Flexibles Limited, OPM Group Limited and OPM (Labels and Packaging) Limited were dormant throughout the period. The principal activity of OPM Advance Limited was that of a licensor of patented technology.

 

OPM Flexibles Limited, OPM Group Limited and OPM (Labels and Packaging) Limited were not consolidated on the grounds of materiality.

14
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Raw materials and consumables
1,986,839
1,608,050
1,986,839
1,608,050

Stocks recognised as an expense during the year totalled £16,022,298.

OPM (LABELS & PACKAGING) GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2023
- 29 -
15
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
5,929,235
5,119,892
5,826,118
5,018,455
Amounts owed by group undertakings
-
-
96,626
124,003
Other debtors
4,850
152,164
4,850
152,164
Prepayments and accrued income
2,108,475
1,587,975
2,108,475
1,587,975
8,042,560
6,860,031
8,036,069
6,882,597
16
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
-
0
9,177
-
0
-
0
Obligations under finance leases and hire purchase contracts
626,798
454,260
626,798
454,260
Trade creditors
2,279,086
2,565,021
2,278,066
2,563,544
Amounts owed to related parties
28
28
28
28
Corporation tax payable
33,607
330,222
-
0
299,336
Other taxation and social security
349,543
343,175
345,150
340,660
Other creditors
321,989
639,331
315,950
639,331
Accruals and deferred income
735,973
339,795
735,973
335,755
4,347,024
4,681,009
4,301,965
4,632,914
17
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Obligations under finance leases and hire purchase contracts
1,437,255
484,775
1,437,255
484,775

The hire purchase borrowings are secured against the assets to which they relate.

OPM (LABELS & PACKAGING) GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2023
- 30 -
18
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

Liabilities
Liabilities
2023
2022
Group
£
£
Accelerated capital allowances
1,454,671
604,062
Tax losses
(282,823)
-
Short term timing differences
(5,734)
-
1,166,114
604,062
Liabilities
Liabilities
2023
2022
Company
£
£
Accelerated capital allowances
1,454,671
604,062
Tax losses
(282,823)
-
Short term timing differences
(5,734)
-
1,166,114
604,062
Group
Company
2023
2023
Movements in the year:
£
£
Liability at 1 February 2022
604,062
604,062
Charge to profit or loss
562,052
562,052
Liability at 31 January 2023
1,166,114
1,166,114
19
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
149,928
237,971
OPM (LABELS & PACKAGING) GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2023
19
Retirement benefit schemes
(Continued)
- 31 -

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.

20
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary A shares of £1 each
1,985
1,985
1,985
1,985
Ordinary B shares of £1 each
1,621
1,621
1,621
1,621
Ordinary C shares of £1 each
117
117
117
117
Ordinary D shares of £1 each
39
39
39
39
Ordinary E shares of £1 each
39
39
39
39
3,801
3,801
3,801
3,801

Rights, preferences and restrictions

 

Voting

The holders of the Ordinary A, Ordinary B, Ordinary C, Ordinary D and Ordinary E shares are entitled to receive notice of and attend, speak and receive one vote per Ordinary share held at a general meeting of the Company.

 

Dividends

The Ordinary B, Ordinary C, Ordinary D and Ordinary E shares entitle the holders to the receipt of dividends at the discretion of the Directors.

 

The Ordinary A share does not carry any right to receive dividend distributions.

 

Return of capital

Ordinary D and Ordinary E shares rank equally for any return of surplus assets on liquidation, return of capital or capital reduction or otherwise. Ordinary A, Ordinary B and Ordinary C shares shall have no right to the surplus assets of the Company available for distribution.

During the year, 78 Ordinary A shares of £1 each were redesignated, with 39 classified as Ordinary D shares and the remaining 39 classified as Ordinary E shares. The aggregate share capital value remained unchanged.

OPM (LABELS & PACKAGING) GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2023
- 32 -
21
Reserves

Share capital

 

Share capital represents the nominal value of shares in issue.

 

Capital redemption reserve

 

The capital redemption reserve balance represents the nominal value of paid up share capital that has been repurchased by the parent company. The reserve is non-distributable.

 

Profit and loss account

 

The profit and loss account represents accumulated comprehensive income for the year and prior periods, after deduction of dividends paid. This reserve is distributable.

 

Non-controlling interests

 

Non-controlling interests represents accumulated comprehensive income for the year end and prior periods, after deduction of dividends, attributable to minority shareholders of group undertakings.

22
Operating lease commitments

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
141,199
277,622
141,199
277,622
Between two and five years
10,206
147,735
10,206
147,735
151,405
425,357
151,405
425,357
23
Capital commitments

As at 31 January 2023, amounts contracted for but not provided for in the financial statements had a total of £205,502.

OPM (LABELS & PACKAGING) GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2023
- 33 -
24
Related party transactions
Remuneration of key management personnel

The remuneration of key management personnel is as follows.

2023
2022
£
£
Aggregate compensation
651,141
788,026

Company

 

Transactions with subsidiary undertakings

OPM Advance Limited is a 75% owned subsidiary undertaking of the Company. During the year-ended 31 January 2023, the Company was charged royalties amounting to £89,641 (2022 - £89,953) by OPM Advance Limited in respect of use of intellectual property owned by that company. As at 31 January 2023, the Company was owed £96,626 (2022 - £124,003) by OPM Advanced Limited.

25
Directors' transactions

Dividends totalling £750,000 (2022 - £117,050) were paid in the year in respect of shares held by the company's directors.

Directors' loan balances

 

C J Ellison and S Ellison

As at 31 January 2023, the amount due to C J Ellison and S Ellison on their combined loan account was £258,132 (2022 - £149,059). No interest was charged on this balance.

26
Controlling party

The ultimate controlling party is Mr C J Ellison.

OPM (LABELS & PACKAGING) GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2023
- 34 -
27
Cash generated from group operations
2023
2022
£
£
Profit for the year after tax
3,072,000
3,087,301
Adjustments for:
Taxation charged
606,044
635,239
Finance costs
32,130
36,546
Gain on disposal of tangible fixed assets
(150,752)
(16,822)
Depreciation and impairment of tangible fixed assets
1,097,576
1,026,999
Movements in working capital:
Increase in stocks
(378,789)
(504,030)
Increase in debtors
(1,182,529)
(416,393)
Decrease in creditors
(200,731)
(388,092)
Cash generated from operations
2,894,949
3,460,748
28
Analysis of changes in net funds - group
1 February 2022
Cash flows
31 January 2023
£
£
£
Cash at bank and in hand
3,621,427
(704,163)
2,917,264
Bank overdrafts
(9,177)
9,177
-
0
3,612,250
(694,986)
2,917,264
Obligations under finance leases
(939,035)
(1,125,018)
(2,064,053)
2,673,215
(1,820,004)
853,211
2023-01-312022-02-01falseCCH SoftwareCCH Accounts Production 2023.300Mr I D M BellMr A C EllisonMiss C L EllisonMr S M WalkerAlan A HaighMrs S J EllisonMr C J EllisonMr S McCormickMr P 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