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REGISTERED NUMBER: 02648722 (England and Wales)















STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

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

FOR

PFF PACKAGING LIMITED

PFF PACKAGING LIMITED (REGISTERED NUMBER: 02648722)






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




Page

Company Information 1

Strategic Report 2

Report of the Directors 5

Report of the Independent Auditors 7

Profit and Loss account 11

Other Comprehensive Income 12

Balance Sheet 13

Statement of Changes in Equity 14

Notes to the Financial Statements 15


PFF PACKAGING LIMITED

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







DIRECTORS: N H Bairstow
M A Bairstow
A R Bairstow
K S Robbins
R V Atkin
I Smith





SECRETARY: M A Bairstow





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





REGISTERED NUMBER: 02648722 (England and Wales)





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

PFF PACKAGING LIMITED (REGISTERED NUMBER: 02648722)

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

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

REVIEW OF BUSINESS
The primary activities of the company continued to be the manufacture of plastic food packaging.
Turnover for the 18 month period was £32.4m. Pro-rated to 12 months, turnover was £21.6m, which is 30.1% higher than the previous year. The key driver of the increase was the acquisition of Sirap (UK) Limited into the Group. This allowed the Group to benefit from synergies of consolidating extrusion capacity.
The company made an EBITDA profit of £1.3m in the period. This was a pleasing result, considering the challenging economic environment.

During the period the company was exposed to rapidly rising material costs. The pass on of costs to customers lagged the cost increases due to the speed of the cost rises seen. Material prices have steadily declined post period end. In addition, the company struggled, like many manufacturing organisations, with a lack of skilled labour following the completion of Brexit and the lifting of COVID restrictions. The negative impact of all these issues, does make the positive EBITDA performance an encouraging position and a good basis for growth in the coming year.


PFF PACKAGING LIMITED (REGISTERED NUMBER: 02648722)

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

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 no products currently falling below the threshold. The company will pass these costs on to customers if they arise 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.

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

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


PFF PACKAGING LIMITED (REGISTERED NUMBER: 02648722)

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

FUTURE PROSPECTS
Following a difficult period, the company is now in a strong position to grow again and increase profitability.

The company is fully focused on expanding volume into the new year and has a number of significant contracts ready to launch in the new year.

ON BEHALF OF THE BOARD:





A R Bairstow - Director


4 September 2023

PFF PACKAGING LIMITED (REGISTERED NUMBER: 02648722)

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

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

PRINCIPAL ACTIVITY
The principal activity of the company in the period under review was that of the manufacture of thermoformed rigid plastic food packaging.

DIVIDENDS
No dividends will be distributed for the period ended 31 January 2023.

DIRECTORS
The directors shown below have held office during the whole of the period from 1 August 2021 to the date of this report.

N H Bairstow
M A Bairstow
A R Bairstow
K S Robbins
R V Atkin
I Smith

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.

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.

PFF PACKAGING LIMITED (REGISTERED NUMBER: 02648722)

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


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

ON BEHALF OF THE BOARD:





A R Bairstow - Director


4 September 2023

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
PFF PACKAGING LIMITED

Opinion
We have audited the financial statements of PFF Packaging 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 profit 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 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 five, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
PFF PACKAGING 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 dicussions 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 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

4 September 2023

PFF PACKAGING LIMITED (REGISTERED NUMBER: 02648722)

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

Period Year Ended
1.8.21 to 31.1.23 31.7.21
Notes £    £    £    £   

TURNOVER 32,395,074 16,577,284

Cost of sales 24,161,791 11,485,945
GROSS PROFIT 8,233,283 5,091,339

Distribution costs 1,448,960 836,298
Administrative expenses 6,109,884 3,921,136
7,558,844 4,757,434
674,439 333,905

Other operating income 11,886 51,551
OPERATING PROFIT 4 686,325 385,456


Interest payable and similar expenses 5 488,185 252,176
PROFIT BEFORE TAXATION 198,140 133,280

Tax on profit 6 138,955 21,820
PROFIT FOR THE FINANCIAL PERIOD 59,185 111,460

PFF PACKAGING LIMITED (REGISTERED NUMBER: 02648722)

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

Period
1.8.21
to Year Ended
31.1.23 31.7.21
Notes £    £   

PROFIT FOR THE PERIOD 59,185 111,460


OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME FOR THE
PERIOD

59,185

111,460

PFF PACKAGING LIMITED (REGISTERED NUMBER: 02648722)

BALANCE SHEET
31 JANUARY 2023

2023 2021
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 7 3,227,796 3,414,052

CURRENT ASSETS
Stocks 8 1,744,801 1,510,684
Debtors 9 8,237,252 6,939,220
Cash at bank and in hand 2,075 294,476
9,984,128 8,744,380
CREDITORS
Amounts falling due within one year 10 8,538,107 8,100,134
NET CURRENT ASSETS 1,446,021 644,246
TOTAL ASSETS LESS CURRENT LIABILITIES 4,673,817 4,058,298

CREDITORS
Amounts falling due after more than one
year

11

(956,837

)

(572,751

)

PROVISIONS FOR LIABILITIES 15 (621,725 ) (449,477 )
NET ASSETS 3,095,255 3,036,070

CAPITAL AND RESERVES
Called up share capital 16 100 100
Profit and loss account 3,095,155 3,035,970
SHAREHOLDERS' FUNDS 3,095,255 3,036,070

The financial statements were approved by the Board of Directors and authorised for issue on 4 September 2023 and were signed on its behalf by:




A R Bairstow - Director



M A Bairstow - Director


PFF PACKAGING LIMITED (REGISTERED NUMBER: 02648722)

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

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

Balance at 1 August 2020 100 2,924,510 2,924,610

Changes in equity
Profit for the year - 111,460 111,460
Total comprehensive income - 111,460 111,460
Balance at 31 July 2021 100 3,035,970 3,036,070

Changes in equity
Profit for the period - 59,185 59,185
Total comprehensive income - 59,185 59,185
Balance at 31 January 2023 100 3,095,155 3,095,255

PFF PACKAGING LIMITED (REGISTERED NUMBER: 02648722)

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

1. STATUTORY INFORMATION

PFF Packaging 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.

The consolidated financial statements, including cash flow, which incorporates the subsidiary PFF Packaging Limited have been prepared by the parent company PFF Group Limited and are publicly available at Companies House.

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.
Plant and machinery - 20% on cost and 10% on reducing balance
Motor vehicles - 25% on reducing balance

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

Cost is calculated using the first-in, first-out method and includes all purchase, transport, and handling costs in bringing stocks to their present location and condition.

PFF PACKAGING LIMITED (REGISTERED NUMBER: 02648722)

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

2. ACCOUNTING POLICIES - continued

DERIVATIVE FINANCIAL INSTRUMENTS
The company uses derivative financial instruments to reduce exposure to foreign exchange risk. The company does not hold or issue derivative financial instruments for speculative purposes.

Derivatives are initially recorded at their fair value at the date a derivative contract is entered into and are subsequently remeasured to their fair value at each reporting date. The resulting gain or loss is recognised in the profit and loss immediately unless the derivative is designed and effective as a hedging instrument, in which event the timing of the recognition of profit or loss depends on the nature of the hedge relationship.

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.

FOREIGN CURRENCIES
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

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.

Tangible fixed assets acquired under finance leases or hire purchase contracts are capitalised and depreciated in the same manner as other tangible fixed assets. The related obligations, net of future charges, are included in creditors.

PFF PACKAGING LIMITED (REGISTERED NUMBER: 02648722)

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

2. ACCOUNTING POLICIES - continued

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.

FINANCE COSTS OF DEBT
The finance costs of debt, including interest and issue costs, are allocated to each period over the term of the debt and charged to the profit and loss account at a constant rate on the outstanding amount.

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

3. EMPLOYEES AND DIRECTORS
Period
1.8.21
to Year Ended
31.1.23 31.7.21
£    £   
Wages and salaries 4,450,766 3,239,566
Social security costs 562,876 341,698
Other pension costs 207,650 138,675
5,221,292 3,719,939

The average number of employees during the period was as follows:
Period
1.8.21
to Year Ended
31.1.23 31.7.21

Distribution and selling 7 8
Production 81 88
Administration 15 16
103 112

Period
1.8.21
to Year Ended
31.1.23 31.7.21
£    £   
Directors' remuneration 876,000 614,000
Directors' pension contributions to money purchase schemes 91,800 61,500

PFF PACKAGING LIMITED (REGISTERED NUMBER: 02648722)

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

3. EMPLOYEES AND DIRECTORS - continued

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes 6 6

Information regarding the highest paid director is as follows:
Period
1.8.21
to Year Ended
31.1.23 31.7.21
£    £   
Emoluments etc 189,000 140,000
Pension contributions to money purchase schemes 27,000 12,000

4. OPERATING PROFIT

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

Period
1.8.21
to Year Ended
31.1.23 31.7.21
£    £   
Hire of plant and machinery 100,333 59,487
Other operating leases 590,149 387,250
Depreciation - owned assets 660,595 475,855
Profit on disposal of fixed assets (36,513 ) (16,645 )
Auditors' remuneration 19,125 19,000

5. INTEREST PAYABLE AND SIMILAR EXPENSES
Period
1.8.21
to Year Ended
31.1.23 31.7.21
£    £   
Bank interest 35,501 13,691
Hire purchase interest 134,982 92,441
Interest on debt factoring advances 222,943 83,044
Other interest 94,759 63,000
488,185 252,176

PFF PACKAGING LIMITED (REGISTERED NUMBER: 02648722)

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

6. TAXATION

Analysis of the tax charge
The tax charge on the profit for the period was as follows:
Period
1.8.21
to Year Ended
31.1.23 31.7.21
£    £   
Current tax:
UK corporation tax (33,293 ) 53,061

Deferred tax 172,248 (31,241 )
Tax on profit 138,955 21,820

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
1.8.21
to Year Ended
31.1.23 31.7.21
£    £   
Profit before tax 198,140 133,280
Profit multiplied by the standard rate of corporation tax in the UK of
19% (2021 - 19%)

37,647

25,323

Effects of:
Capital allowances in excess of depreciation - (3,503 )
Depreciation in excess of capital allowances 136,744 -
Adjustments to tax charge in respect of previous periods (33,293 ) -
Group relief (2,143 ) -
corporation tax rate on carry
Total tax charge 138,955 21,820

PFF PACKAGING LIMITED (REGISTERED NUMBER: 02648722)

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

7. TANGIBLE FIXED ASSETS
Plant and Motor
machinery vehicles Totals
£    £    £   
COST
At 1 August 2021 9,144,440 284,879 9,429,319
Additions 467,430 69,440 536,870
Disposals (143,688 ) (82,235 ) (225,923 )
Grants (3,046 ) - (3,046 )
At 31 January 2023 9,465,136 272,084 9,737,220
DEPRECIATION
At 1 August 2021 5,937,030 78,237 6,015,267
Charge for period 598,760 61,835 660,595
Eliminated on disposal (132,498 ) (33,940 ) (166,438 )
At 31 January 2023 6,403,292 106,132 6,509,424
NET BOOK VALUE
At 31 January 2023 3,061,844 165,952 3,227,796
At 31 July 2021 3,207,410 206,642 3,414,052

The net book value of tangible fixed assets includes £1,493,163 (2021: £1,325,160) in respect of assets held under hire purchase contracts and finance leases. The depreciation charge for the year on those assets amounted to £252,813 (2021: £139,794).

8. STOCKS
2023 2021
£    £   
Raw materials 621,177 531,361
Packaging 93,153 79,364
Machine spares 228,962 228,962
Finished goods 801,509 670,997
1,744,801 1,510,684

PFF PACKAGING LIMITED (REGISTERED NUMBER: 02648722)

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

9. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2021
£    £   
Trade debtors 3,405,110 3,495,878
Amounts owed by group undertakings 3,770,558 2,434,790
Amounts owed by related parties 857,568 793,040
Other debtors 24,893 2,990
Directors' loan accounts 99,264 98,367
Tax on overdrawn directors
loan 6,708 6,708
Prepayments and accrued income 73,151 107,447
8,237,252 6,939,220

10. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2021
£    £   
Bank loans and overdrafts (see note 12) 505,549 233,333
Hire purchase contracts (see note 13) 212,976 478,621
Trade creditors 4,392,687 3,147,505
Amounts owed to group undertakings - 323,731
Amounts owed to associates 17,431 53,722
Corporation tax - 53,061
Social security and other taxes 92,416 89,416
VAT 153,820 431,814
Other creditors 40,528 44,521
Debt factoring advances 2,987,677 3,147,917
Directors' loan accounts 10,943 10,943
Accruals and deferred income 124,080 85,550
8,538,107 8,100,134

11. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
2023 2021
£    £   
Bank loans (see note 12) - 272,223
Hire purchase contracts (see note 13) 956,837 300,528
956,837 572,751

PFF PACKAGING LIMITED (REGISTERED NUMBER: 02648722)

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

12. LOANS

An analysis of the maturity of loans is given below:

2023 2021
£    £   
Amounts falling due within one year or on demand:
Bank overdrafts 349,993 -
Bank loans - 233,333
CBILS Loan 155,556 -
505,549 233,333

Amounts falling due between one and two years:
Bank loans - 233,333

Amounts falling due between two and five years:
Bank loan - 38,890

13. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase contracts
2023 2021
£    £   
Net obligations repayable:
Within one year 212,976 478,621
Between one and five years 956,837 300,528
1,169,813 779,149

Non-cancellable operating leases
2023 2021
£    £   
Within one year 431,665 94,755
Between one and five years 1,415,618 101,929
In more than five years 1,466,667 -
3,313,950 196,684

PFF PACKAGING LIMITED (REGISTERED NUMBER: 02648722)

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

14. SECURED DEBTS

The following secured debts are included within creditors:

2023 2021
£    £   
Bank overdraft 349,993 -
Bank loans 155,556 505,556
Hire purchase contracts 1,169,813 779,149
Debt factoring advances - 3,147,917
1,675,362 4,432,622

The overdraft is secured by a debenture over the assets of the company, by a group cross guarantee and the assets of J&H Property Management Limited.

The obligations under finance leases and hire purchase contract are secured by a charge on the assets purchased under these agreements.

The debt factoring loan is secured on the trade book debts of the company.

The bank loan is secured by a fixed charge over the Company and groups assets and the assets of J&H Property Management Limited.

15. PROVISIONS FOR LIABILITIES
2023 2021
£    £   
Deferred tax 621,725 449,477

Deferred
tax
£   
Balance at 1 August 2021 449,477
Provided during period 172,248
Balance at 31 January 2023 621,725

16. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2021
value: £    £   
100 Ordinary £1 100 100

PFF PACKAGING LIMITED (REGISTERED NUMBER: 02648722)

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

17. 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 £101,784 (2021: £138,675). Contributions totalling £16,256 (2021: £19,219) were payable to the fund at the year end and are included in creditors.

18. ULTIMATE PARENT COMPANY

PFF Group Limited is regarded by the directors as being the company's ultimate parent company.

19. CONTINGENT LIABILITIES

The companys' bankers and finance providers hold as security cross guarantee's against the borrowings of other group companies. As at 31 January 2023 this liability amounted to £2,835,742 (2021: £1,578,618).

20. DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

The following advances and credits to directors subsisted during the period ended 31 January 2023 and the year ended 31 July 2021:

2023 2021
£    £   
A R Bairstow and M A Bairstow
Balance outstanding at start of period 96,092 20,282
Amounts advanced 897 75,810
Amounts repaid - -
Amounts written off - -
Amounts waived - -
Balance outstanding at end of period 96,989 96,092

K S Robbins
Balance outstanding at start of period 2,275 2,275
Amounts repaid - -
Amounts written off - -
Amounts waived - -
Balance outstanding at end of period 2,275 2,275

PFF PACKAGING LIMITED (REGISTERED NUMBER: 02648722)

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

21. RELATED PARTY DISCLOSURES

Mr A Bairstow and Mrs M Bairstow through their control over the majority of shares in the parent company, and together with their involvement in its day to day management, are deemed to be the controlling parties for the purpose of Financial Reporting Standard No. 102.

The company operates from premises owned by J & H Property Management Limited who is a related party due to being under the control of Mr A Bairstow and Mrs M Bairstow. Rent of £480,000 (2021: £320,000) was paid in the period. Electricity was recharged from PFF Packaging Limited to J & H Property Management of £11,695 (2021: £7,112).

As at 31 January 2023 PFF Packaging Limited was owed £857,568 (2021: £793,040) from J & H Property Management Limited.

The company trades with Fetera Limited who is a related party due to Mr A Bairstow and Mrs M Bairstow both being shareholders and Mr A Bairstow also being a director. Total purchases in the year were £297,781 (2021: £272,330). As at 31 January 2023 £17,431 (2021: £95,398) was owed to Fetera Limited by PFF Packaging Limited.

As at 31 January 2023 Mr N Bairstow was owed £10,943 (2021: 10,943) by way of his directors loan account.