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REGISTERED NUMBER: 02548722 (England and Wales)















STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS FOR THE PERIOD 1 NOVEMBER 2021 TO 31 JANUARY 2023

FOR

PFF PACKAGING (SEDGEFIELD) LIMITED

PFF PACKAGING (SEDGEFIELD) LIMITED (REGISTERED NUMBER: 02548722)






CONTENTS OF THE FINANCIAL STATEMENTS
FOR THE PERIOD 1 NOVEMBER 2021 TO 31 JANUARY 2023




Page

Company Information 1

Strategic Report 2

Report of the Directors 4

Report of the Independent Auditors 6

Profit and Loss Account 10

Other Comprehensive Income 11

Balance Sheet 12

Statement of Changes in Equity 13

Notes to the Financial Statements 14


PFF PACKAGING (SEDGEFIELD) LIMITED

COMPANY INFORMATION
FOR THE PERIOD 1 NOVEMBER 2021 TO 31 JANUARY 2023







DIRECTORS: Robert Victor Atkin
Michelle Annette Bairstow
Andrew Robert Bairstow
Kenton Scott Robbins





REGISTERED OFFICE: Unit 3 Airedale Park
Royd Ings Avenue
Keighley
West Yorkshire
BD21 4BZ





REGISTERED NUMBER: 02548722 (England and Wales)





AUDITORS: Walter Dawson & Son
Chartered Accountants
1 Valley Court
Canal Road
Bradford
West Yorkshire
BD1 4SP

PFF PACKAGING (SEDGEFIELD) LIMITED (REGISTERED NUMBER: 02548722)

STRATEGIC REPORT
FOR THE PERIOD 1 NOVEMBER 2021 TO 31 JANUARY 2023

The directors present their strategic report for the period 1 November 2021 to 31 January 2023.

REVIEW OF BUSINESS
The primary activities of the company continued to be the manufacture of plastic food packaging.

In November 2021, the PFF Group acquired the full share capital of Sirap (UK) Limited (now PFF Packaging (Sedgefield) Limited). This was an important strategic action for the Group and in particular the North East operation, allowing the relocation of the Washington site to Sedgefield. This was vital to allow the potential for further growth in the North East operation.

In October 2022, the trade and assets of PFF Packaging (Sedgefield) Limited (formerly Sirap (UK) Limited) were transferred into PFF Packaging (North East) Limited. At this point PFF Packaging (Sedgefield) Limited ceased to trade.

PRINCIPAL RISKS AND UNCERTAINTIES
Raw material prices continue to be a key risk to the business. Since the end of 2020, there has been significant price pressure seen in the sector with the impacts of COVID, Brexit and natural disasters around the world all having an impact on the availability of materials. Since the year end the price of material has steadily decreased back to more normalised levels. The company has quarterly review mechanisms in place with all key customers and will continue to pro-actively pass costs on where further price increases are seen.

Unprecedented overhead inflation seen in the last year on packaging, carriage, electricity and labour has been a challenge to the company. Brexit and the pandemic have led to driver shortages, shrinkage of the energy sector, increased demand for packaging for online deliveries and labour shortages, which have all applied pressure to the company in the year. The company has and will continue to monitor overhead price increases and will pro-actively pass these on to customers promptly.

PRN ("Plastic Recycling Notes") are externally traded and have seen significant price volatility in the past couple of years. This is a challenge to all plastic producing businesses and needs careful management to ensure that margin is maintained by adjusting commercial pricing to reflect any fluctuations experienced.

The new plastic packaging tax came into force during 2022 in the UK. This levies tax charges on some packaging made from plastic, that doesn't have a minimum amount of recycled material. The company is not heavily exposed to this, with only our injection moulding products, falling into the requirement for tax. The company passes these costs on to customers and continues to work with all customers on product innovation and design to meet the requirements of the legislation and to offer the best value for our customers.

The media led drive for less plastic in packaging is a risk to the sector. The PFF Group has always been committed to innovation and for driving change in our industry. We remain committed to this and continue to look for ways to use less plastic and to use high levels of recycled materials in all of our manufacturing processes.

Competition and threat to market share continues to be a key risk. This is alleviated by continuing to innovate and develop quality products, reacting efficiently to customer requirements, and by strengthening the core team.

Legislative changes around the plastics and packaging industry could negatively affect the business. Management monitors new legislation, or changes to legislation, that affect the business and ensures the business puts plans in place to comply on a timely basis.


PFF PACKAGING (SEDGEFIELD) LIMITED (REGISTERED NUMBER: 02548722)

STRATEGIC REPORT
FOR THE PERIOD 1 NOVEMBER 2021 TO 31 JANUARY 2023

KEY PERFORMANCE INDICATORS
The key performance indicators that are used to manage the business are:

- Gross margin on materials %
- Operating profit %
- EBITDA %

FUTURE PROSPECTS
With the transfer of trade and assets in October 2022 to PFF Packaging (North East) Limited, the company ceased trading.

ON BEHALF OF THE BOARD:





Andrew Robert Bairstow - Director


20 September 2023

PFF PACKAGING (SEDGEFIELD) LIMITED (REGISTERED NUMBER: 02548722)

REPORT OF THE DIRECTORS
FOR THE PERIOD 1 NOVEMBER 2021 TO 31 JANUARY 2023

The directors present their report with the financial statements of the company for the period 1 November 2021 to 31 January 2023.

PRINCIPAL ACTIVITY
The principal activity of the company in the period under review was that of manufacturing and supply of plastic packaging.

DIVIDENDS
An interim dividend of 19p per share was paid on 1 November 2021. This was paid to the shareholders as of 1st November 2021, before PFF Packaging Group Limited acquired the shareholding. The directors recommend that no final dividend be paid.

The total distribution of dividends for the period ended 31 January 2023 will be £1,457,290.

DIRECTORS
The directors who have held office during the period from 1 November 2021 to the date of this report are as follows:

Robert Victor Atkin - appointed 12 November 2021
Michelle Annette Bairstow - appointed 12 November 2021
Andrew Robert Bairstow - appointed 12 November 2021
Susan Foster - resigned 30 June 2022
Kenton Scott Robbins - appointed 12 November 2021

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

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

-select suitable accounting policies and then apply them consistently;
-make judgements and accounting estimates that are reasonable and prudent;
-prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

PFF PACKAGING (SEDGEFIELD) LIMITED (REGISTERED NUMBER: 02548722)

REPORT OF THE DIRECTORS
FOR THE PERIOD 1 NOVEMBER 2021 TO 31 JANUARY 2023


STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS
The auditors, Walter Dawson & Son, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





Andrew Robert Bairstow - Director


20 September 2023

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
PFF PACKAGING (SEDGEFIELD) LIMITED

Opinion
We have audited the financial statements of PFF Packaging (Sedgefield) Limited (the 'company') for the period ended 31 January 2023 which comprise the Profit and Loss Account, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:
-give a true and fair view of the state of the company's affairs as at 31 January 2023 and of its loss for the period then ended;
-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

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

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

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

Other information
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
PFF PACKAGING (SEDGEFIELD) LIMITED


Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page four, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
PFF PACKAGING (SEDGEFIELD) LIMITED


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

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Our approach to identifying and assessing the risk of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:
- the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
- we identified the laws and regulations applicable to the company through discussion's with directors and other management, and form our commercial knowledge and experience of the sector;
- we focussed on specific laws and regulations which considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation, data protection, anti-bribery, employment, environmental and health and safety legislation;
- we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and
- identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
- making enquiries of management as to where they considered there was a susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

To address the risk of fraud through management bias and overide of controls, we:
- performed analytical procedures to identify any unusual or unexpected relationships;
- tested journal entries to identify unusual transactions;
- assessed whether judgements and assumptions made in determining the accounting estimates set out in note 2 and where indicative of potential bias; and
- investigated the rationale behind significant or unusual transactions.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
- agreeing financial statement disclosures to underlying supporting documentation;
- reading the minutes of meetings of those charged with governance;
- enquiring of management as to actual and potential litigation and claims; and
- reviewing correspondence with HMRC, relevant regulators including the Health and Safety Executive, and the company's legal advisors.


REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
PFF PACKAGING (SEDGEFIELD) LIMITED

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Use of our report
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.




John Richard Hall FCA (Senior Statutory Auditor)
for and on behalf of Walter Dawson & Son
Chartered Accountants
1 Valley Court
Canal Road
Bradford
West Yorkshire
BD1 4SP

20 September 2023

PFF PACKAGING (SEDGEFIELD) LIMITED (REGISTERED NUMBER: 02548722)

PROFIT AND LOSS ACCOUNT
FOR THE PERIOD 1 NOVEMBER 2021 TO 31 JANUARY 2023

Period Period
1.11.21 to 31.1.23 1.1.21 to 31.10.21
Notes £    £    £    £   

TURNOVER 11,911,775 10,019,199

Cost of sales 9,362,710 6,781,648
GROSS PROFIT 2,549,065 3,237,551

Distribution costs 558,979 423,961
Administrative expenses 3,729,582 3,293,894
4,288,561 3,717,855
OPERATING LOSS 5 (1,739,496 ) (480,304 )

Interest receivable and similar income 406 154
LOSS BEFORE TAXATION (1,739,090 ) (480,150 )

Tax on loss 7 - 158,058
LOSS FOR THE FINANCIAL PERIOD (1,739,090 ) (638,208 )

PFF PACKAGING (SEDGEFIELD) LIMITED (REGISTERED NUMBER: 02548722)

OTHER COMPREHENSIVE INCOME
FOR THE PERIOD 1 NOVEMBER 2021 TO 31 JANUARY 2023

Period Period
1.11.21 1.1.21
to to
31.1.23 31.10.21
Notes £    £   

LOSS FOR THE PERIOD (1,739,090 ) (638,208 )


OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME FOR THE
PERIOD

(1,739,090

)

(638,208

)

PFF PACKAGING (SEDGEFIELD) LIMITED (REGISTERED NUMBER: 02548722)

BALANCE SHEET
31 JANUARY 2023

2023 2021
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 9 614,447 4,737,107

CURRENT ASSETS
Stocks 10 - 2,226,231
Debtors 11 5,048,484 2,481,071
Cash at bank and in hand - 1,616,296
5,048,484 6,323,598
CREDITORS
Amounts falling due within one year 12 - 2,201,394
NET CURRENT ASSETS 5,048,484 4,122,204
TOTAL ASSETS LESS CURRENT LIABILITIES 5,662,931 8,859,311

CAPITAL AND RESERVES
Called up share capital 14 7,667,666 7,667,666
Revaluation reserve 35,000 35,000
Profit and loss account (2,039,735 ) 1,156,645
SHAREHOLDERS' FUNDS 5,662,931 8,859,311

The financial statements were approved by the Board of Directors and authorised for issue on 20 September 2023 and were signed on its behalf by:





Andrew Robert Bairstow - Director


PFF PACKAGING (SEDGEFIELD) LIMITED (REGISTERED NUMBER: 02548722)

STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD 1 NOVEMBER 2021 TO 31 JANUARY 2023

Called up Profit
share and loss Revaluation Total
capital account reserve equity
£    £    £    £   

Balance at 1 January 2021 7,667,666 1,794,853 35,000 9,497,519

Changes in equity
Total comprehensive income - (638,208 ) - (638,208 )
Balance at 31 October 2021 7,667,666 1,156,645 35,000 8,859,311

Changes in equity
Dividends - (1,457,290 ) - (1,457,290 )
Total comprehensive income - (1,739,090 ) - (1,739,090 )
Balance at 31 January 2023 7,667,666 (2,039,735 ) 35,000 5,662,931

PFF PACKAGING (SEDGEFIELD) LIMITED (REGISTERED NUMBER: 02548722)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD 1 NOVEMBER 2021 TO 31 JANUARY 2023

1. STATUTORY INFORMATION

PFF Packaging (Sedgefield) Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2. ACCOUNTING POLICIES

BASIS OF PREPARING THE FINANCIAL STATEMENTS
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

FINANCIAL REPORTING STANDARD 102 - REDUCED DISCLOSURE EXEMPTIONS
The company has taken advantage of the following disclosure exemption in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

the requirements of Section 7 Statement of Cash Flows.

This information is included in the consolidated financial statements of the immediate parent company as at 31 October 2021, Sirap Gema S.p.A, and of the ultimate parent company as at 31 October 2021, Italmoiliare S.p.A, a company listed on the Milan stock exchange. The financial statements of the immediate parent company may be obtained from the registered office at Via Industriale 1/3, Verolanuova, Italy. The financial statement of the ultimate parent company may be obtained from the registered office at Via Borgonuova, 20, 20121 Milan, Italy.

RELATED PARTY EXEMPTION
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

TURNOVER
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

TANGIBLE FIXED ASSETS
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Buildings30 - 35 years
Plant and machinery3 - 20 years
LandNot depreciated

STOCKS
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.


PFF PACKAGING (SEDGEFIELD) LIMITED (REGISTERED NUMBER: 02548722)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE PERIOD 1 NOVEMBER 2021 TO 31 JANUARY 2023

2. ACCOUNTING POLICIES - continued
TAXATION
Taxation for the period comprises current and deferred tax. Tax is recognised in the Profit and Loss Account, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

DEFERRED TAX
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the period end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

HIRE PURCHASE AND LEASING COMMITMENTS
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

PENSION COSTS AND OTHER POST-RETIREMENT BENEFITS
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

REVENUE RECOGNITION
Income is recognised when services have been completed such that the risks and rewards of ownership have transferred to them.

PFF PACKAGING (SEDGEFIELD) LIMITED (REGISTERED NUMBER: 02548722)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE PERIOD 1 NOVEMBER 2021 TO 31 JANUARY 2023

3. CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

In the application of the Company's accounting policies, which are described in this note, the directors are required to make judgements, estimates and assumptions about the carrying amounts 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 year in which the estimate is revised if the revision affects only that year, or in the year of the revision and future periods if the revision affects both current and future years.

In the current year there is one critical accounting judgement in respect of the recognition of deferred tax assets which is limited to the extent that it is probable that they will be recovered against future taxable profits and the reversal of deferred tax liabilities. Judgement is required in the assessment of future taxable profits.

4. EMPLOYEES AND DIRECTORS
Period Period
1.11.21 1.1.21
to to
31.1.23 31.10.21
£    £   
Wages and salaries 2,512,647 2,015,678
Social security costs 206,847 190,479
Other pension costs 84,790 82,735
2,804,284 2,288,892

The average number of employees during the period was as follows:
Period Period
1.11.21 1.1.21
to to
31.1.23 31.10.21

Production 61 65
Selling and administration 9 18
70 83

PFF PACKAGING (SEDGEFIELD) LIMITED (REGISTERED NUMBER: 02548722)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE PERIOD 1 NOVEMBER 2021 TO 31 JANUARY 2023

4. EMPLOYEES AND DIRECTORS - continued

Period Period
1.11.21 1.1.21
to to
31.1.23 31.10.21
£    £   
Directors' remuneration 61,195 85,474
Directors' pension contributions to money purchase schemes 5,627 7,013

5. OPERATING LOSS

The operating loss is stated after charging/(crediting):

Period Period
1.11.21 1.1.21
to to
31.1.23 31.10.21
£    £   
Hire of plant and machinery - 48,097
Other operating leases 164,407 166,081
Depreciation - owned assets 775,333 680,003
Auditors' remuneration 15,225 36,240
Foreign exchange differences 54,043 (29,327 )

6. EXCEPTIONAL ITEMS
Period Period
1.11.21 1.1.21
to to
31.1.23 31.10.21
£    £   
Exceptional items (4,826 ) -

7. TAXATION

Analysis of the tax charge
The tax charge on the loss for the period was as follows:
Period Period
1.11.21 1.1.21
to to
31.1.23 31.10.21
£    £   
Deferred tax - 158,058
Tax on loss - 158,058

PFF PACKAGING (SEDGEFIELD) LIMITED (REGISTERED NUMBER: 02548722)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE PERIOD 1 NOVEMBER 2021 TO 31 JANUARY 2023

7. TAXATION - continued

RECONCILIATION OF TOTAL TAX CHARGE INCLUDED IN PROFIT AND LOSS
The tax assessed for the period is higher than the standard rate of corporation tax in the UK. The difference is explained below:

Period Period
1.11.21 1.1.21
to to
31.1.23 31.10.21
£    £   
Loss before tax (1,739,090 ) (480,150 )
Loss multiplied by the standard rate of corporation tax in the UK of
19% (2021 - 19%)

(330,427

)

(91,229

)

Effects of:
Depreciation in excess of capital allowances 330,350 129,201
Utilisation of tax losses 77 (37,972 )

Re measurement of deferred tax asset - 158,058
Total tax charge - 158,058

8. DIVIDENDS
Period Period
1.11.21 1.1.21
to to
31.1.23 31.10.21
£    £   
Ordinary shares of 1 each
Interim 1,457,290 -

PFF PACKAGING (SEDGEFIELD) LIMITED (REGISTERED NUMBER: 02548722)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE PERIOD 1 NOVEMBER 2021 TO 31 JANUARY 2023

9. TANGIBLE FIXED ASSETS
Freehold Plant and
property machinery Totals
£    £    £   
COST
At 1 November 2021 984,059 9,813,147 10,797,206
Additions - 10,551 10,551
Transfer to ownership (224,410 ) (9,823,698 ) (10,048,108 )
At 31 January 2023 759,649 - 759,649
DEPRECIATION
At 1 November 2021 256,922 5,803,177 6,060,099
Charge for period 37,500 737,833 775,333
Transfer to ownership (149,220 ) (6,541,010 ) (6,690,230 )
At 31 January 2023 145,202 - 145,202
NET BOOK VALUE
At 31 January 2023 614,447 - 614,447
At 31 October 2021 727,137 4,009,970 4,737,107

Within plant and machinery is £Nil (2021: £149,860) in relation to assets under the course of construction. At 31 January 2023 the company had contractual commitments of £Nil (2021: £85,042).

10. STOCKS
2023 2021
£    £   
Raw materials - 1,179,902
Finished goods - 1,046,329
- 2,226,231

11. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2021
£    £   
Trade debtors - 2,312,039
Amounts owed by group undertakings 5,048,484 28,919
Prepayments and accrued income - 140,113
5,048,484 2,481,071

Amounts owed by group undertakings in respect of inter-company trading balances are repayable on demand, and have no securities, payments date on interest rate.

PFF PACKAGING (SEDGEFIELD) LIMITED (REGISTERED NUMBER: 02548722)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE PERIOD 1 NOVEMBER 2021 TO 31 JANUARY 2023

12. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2021
£    £   
Trade creditors - 1,599,048
Amounts owed to group undertakings - 12,276
Social security and other taxes - 53,470
VAT - 141,548
Accruals and deferred income - 395,052
- 2,201,394

Amounts owed by group undertakings in respect of inter-company trading balances are repayable on demand, and have no securities, payments date on interest rate.

13. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:
2023 2021
£    £   
Within one year - 274,853
Between one and five years - 363,261
In more than five years - 6,084
- 644,198

14. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2021
value: £    £   
7,667,666 Ordinary 1 7,667,666 7,667,666

15. PENSION COMMITMENTS

The company operates a defined contribution pension scheme. The assets of the pension scheme are held separately from those of the company in an independently administered fund. The pension cost represents contributions payable by the company to the fund and amounted to £84,790 (2021: £82,735). Contributions totalling £Nil (2021: £16,944) were payable to the fund at the year end and are included in creditors.

PFF PACKAGING (SEDGEFIELD) LIMITED (REGISTERED NUMBER: 02548722)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE PERIOD 1 NOVEMBER 2021 TO 31 JANUARY 2023

16. ULTIMATE PARENT COMPANY

As at 31 October 2021 the ultimate controlling party was Italmobiliare S.p.A., a company incorporated in Italy, listed on the Italian stock exchange. The financial statements of the ultimate parent can be obtained from their registered office at Via Borgonuovo, 20, 20121 Milan, Italy.

On 12 November 2021 the company was acquired by PFF Packaging Group Limited after which the ultimate controlling party was PFF Group Limited