REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS FOR THE PERIOD 1 AUGUST 2021 TO 31 JANUARY 2023 |
FOR |
PFF PACKAGING LIMITED |
REGISTERED NUMBER: |
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: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
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: |
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. |
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: |
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. |
for and on behalf of |
Chartered Accountants |
1 Valley Court |
Canal Road |
Bradford |
West Yorkshire |
BD1 4SP |
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 |
Cost of sales |
GROSS PROFIT |
Distribution costs |
Administrative expenses |
7,558,844 | 4,757,434 |
674,439 | 333,905 |
Other operating income |
OPERATING PROFIT | 4 |
Interest payable and similar expenses | 5 |
PROFIT BEFORE TAXATION |
Tax on profit | 6 |
PROFIT FOR THE FINANCIAL PERIOD |
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 |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD |
PFF PACKAGING LIMITED (REGISTERED NUMBER: 02648722) |
BALANCE SHEET |
31 JANUARY 2023 |
2023 | 2021 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 7 |
CURRENT ASSETS |
Stocks | 8 |
Debtors | 9 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 10 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
11 |
( |
) |
( |
) |
PROVISIONS FOR LIABILITIES | 15 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 16 |
Profit and loss account |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
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 |
Changes in equity |
Profit for the year | - | 111,460 | 111,460 |
Total comprehensive income | - |
Balance at 31 July 2021 |
Changes in equity |
Profit for the period | - | 59,185 | 59,185 |
Total comprehensive income | - |
Balance at 31 January 2023 |
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 |
2. | ACCOUNTING POLICIES |
BASIS OF PREPARING THE FINANCIAL STATEMENTS |
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 |
Plant and machinery | - |
Motor vehicles | - |
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 |
Social security costs |
Other pension costs |
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 |
Period |
1.8.21 |
to | Year Ended |
31.1.23 | 31.7.21 |
£ | £ |
Directors' remuneration |
Directors' pension contributions to money purchase schemes |
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 |
Information regarding the highest paid director is as follows: |
Period |
1.8.21 |
to | Year Ended |
31.1.23 | 31.7.21 |
£ | £ |
Emoluments etc |
Pension contributions to money purchase schemes |
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 |
Other operating leases |
Depreciation - owned assets |
Profit on disposal of fixed assets | ( |
) | ( |
) |
Auditors' remuneration |
5. | INTEREST PAYABLE AND SIMILAR EXPENSES |
Period |
1.8.21 |
to | Year Ended |
31.1.23 | 31.7.21 |
£ | £ |
Bank interest |
Hire purchase interest |
Interest on debt factoring advances |
Other interest |
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 | ( |
) |
Deferred tax | ( |
) |
Tax on profit |
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 |
Profit multiplied by the standard rate of corporation tax in the UK of |
Effects of: |
Capital allowances in excess of depreciation | - | ( |
) |
Depreciation in excess of capital allowances | - |
Adjustments to tax charge in respect of previous periods | ( |
) |
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 |
Additions |
Disposals | ( |
) | ( |
) | ( |
) |
Grants | (3,046 | ) | - | (3,046 | ) |
At 31 January 2023 |
DEPRECIATION |
At 1 August 2021 |
Charge for period |
Eliminated on disposal | ( |
) | ( |
) | ( |
) |
At 31 January 2023 |
NET BOOK VALUE |
At 31 January 2023 |
At 31 July 2021 |
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 |
Packaging | 93,153 | 79,364 |
Machine spares |
Finished goods |
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 |
Amounts owed by group undertakings |
Amounts owed by related parties |
Other debtors |
Directors' loan accounts | 99,264 | 98,367 |
Tax on overdrawn directors |
loan |
Prepayments and accrued income |
10. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2021 |
£ | £ |
Bank loans and overdrafts (see note 12) |
Hire purchase contracts (see note 13) |
Trade creditors |
Amounts owed to group undertakings |
Amounts owed to associates | 17,431 | 53,722 |
Corporation tax |
Social security and other taxes |
VAT | 153,820 | 431,814 |
Other creditors |
Debt factoring advances | 2,987,677 | 3,147,917 |
Directors' loan accounts | 10,943 | 10,943 |
Accruals and deferred income |
11. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
2023 | 2021 |
£ | £ |
Bank loans (see note 12) |
Hire purchase contracts (see note 13) |
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 |
Bank loans |
CBILS Loan | 155,556 | - |
Amounts falling due between one and two years: |
Bank loans |
Amounts falling due between two and five years: |
Bank loan |
13. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Hire purchase contracts |
2023 | 2021 |
£ | £ |
Net obligations repayable: |
Within one year |
Between one and five years |
Non-cancellable | operating leases |
2023 | 2021 |
£ | £ |
Within one year |
Between one and five years |
In more than five years |
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 |
Bank loans |
Hire purchase contracts | 1,169,813 | 779,149 |
Debt factoring advances | - | 3,147,917 |
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 |
Provided during period |
Balance at 31 January 2023 |
16. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2021 |
value: | £ | £ |
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 |
Balance outstanding at start of period |
Amounts repaid |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of period |
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. |