Registered number
02888713
The Packaging Company (Midlands) Limited
Unaudited Filleted Accounts
30 April 2023
The Packaging Company (Midlands) Limited
Registered number: 02888713
Balance Sheet
as at 30 April 2023
Notes 2023 2022
£ £
Fixed assets
Tangible assets 3 164,176 215,626
Current assets
Stocks 210,835 246,584
Debtors 4 581,553 580,361
Cash at bank and in hand 25,933 12,516
818,321 839,461
Creditors: amounts falling due within one year 5 (600,143) (713,840)
Net current assets 218,178 125,621
Total assets less current liabilities 382,354 341,247
Creditors: amounts falling due after more than one year 6 (12,327) (35,893)
Provisions for liabilities (41,044) (53,907)
Net assets 328,983 251,447
Capital and reserves
Called up share capital 1,050 1,050
Share premium 4,950 4,950
Profit and loss account 322,983 245,447
Shareholders' funds 328,983 251,447
The directors are satisfied that the company is entitled to exemption from the requirement to obtain an audit under section 477 of the Companies Act 2006.
The members have not required the company to obtain an audit in accordance with section 476 of the Act.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of accounts.
The accounts have been prepared and delivered in accordance with the special provisions applicable to companies subject to the small companies regime. The profit and loss account has not been delivered to the Registrar of Companies.
L J Dunmore
Director
Approved by the board on 26 October 2023
The Packaging Company (Midlands) Limited
Notes to the Accounts
for the year ended 30 April 2023
1 Accounting policies
Basis of preparation
The accounts have been prepared under the historical cost convention and in accordance with FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland (as applied to small entities by section 1A of the standard).
Turnover
Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods and from the rendering of services. Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have transferred to the buyer. Turnover from the rendering of services is recognised by reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs.
Tangible fixed assets
Tangible fixed assets are measured at cost less accumulative depreciation and any accumulative impairment losses. Depreciation is provided on all tangible fixed assets, other than freehold land, at rates calculated to write off the cost, less estimated residual value, of each asset evenly over its expected useful life, as follows:
Fixtures, fittings and computers over 6.67 and 3 years
Plant and machinery over 10 years
Motor vehicles over 6.67 years
Stocks
Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first in first out method. The carrying amount of stock sold is recognised as an expense in the period in which the related revenue is recognised.
Taxation
A current tax liability is recognised for the tax payable on the taxable profit of the current and past periods. A current tax asset is recognised in respect of a tax loss that can be carried back to recover tax paid in a previous period. Deferred tax is recognised in respect of all timing differences between the recognition of income and expenses in the financial statements and their inclusion in tax assessments. 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used. Current and deferred tax assets and liabilities are not discounted.
Provisions
Provisions (ie liabilities of uncertain timing or amount) are recognised when there is an obligation at the reporting date as a result of a past event, it is probable that economic benefit will be transferred to settle the obligation and the amount of the obligation can be estimated reliably.
1 Accounting policies continued
Leased assets
A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership. All other leases are classified as operating leases. The rights of use and obligations under finance leases are initially recognised as assets and liabilities at amounts equal to the fair value of the leased assets or, if lower, the present value of the minimum lease payments. Minimum lease payments are apportioned between the finance charge and the reduction in the outstanding liability using the effective interest rate method. The finance charge is allocated to each period during the lease so as to produce a constant periodic rate of interest on the remaining balance of the liability. Leased assets are depreciated in accordance with the company's policy for tangible fixed assets. If there is no reasonable certainty that ownership will be obtained at the end of the lease term, the asset is depreciated over the lower of the lease term and its useful life. Operating lease payments are recognised as an expense on a straight line basis over the lease term.
Pensions
Contributions to defined contribution plans are expensed in the period to which they relate.
2 Employees 2023 2022
Number Number
Average number of persons employed by the company 24 27
3 Tangible fixed assets
Fixtures,fittings and computers Plant and machinery etc Motor vehicles Total
£ £ £ £
Cost
At 1 May 2022 96,296 305,196 134,428 535,920
Additions 5,292 1,094 - 6,386
Disposals (11,699) (8,988) - (20,687)
At 30 April 2023 89,889 297,302 134,428 521,619
Depreciation
At 1 May 2022 71,580 146,641 102,073 320,294
Charge for the year 11,224 28,903 10,640 50,767
On disposals (10,255) (3,363) - (13,618)
At 30 April 2023 72,549 172,181 112,713 357,443
Net book value
At 30 April 2023 17,340 125,121 21,715 164,176
At 30 April 2022 24,716 158,555 32,355 215,626
4 Debtors 2023 2022
£ £
Trade debtors 512,170 531,717
Other debtors 69,383 48,644
581,553 580,361
5 Creditors: amounts falling due within one year 2023 2022
£ £
Bank loans and overdrafts 120,271 282,117
Obligations under finance lease and hire purchase contracts 23,566 22,116
Trade creditors 299,508 290,898
Taxation and social security costs 133,722 103,511
Other creditors 23,076 15,198
600,143 713,840
6 Creditors: amounts falling due after one year 2023 2022
£ £
Obligations under finance lease and hire purchase contracts 12,327 35,893
7 Loans 2023 2022
£ £
Creditors include:
Secured bank loans 156,164 340,126
The bank overdraft relates to an invoice financing facility on the company's trade debtors and is secured by a fixed and floating charge over all the property of the company. The hire purchase creditor is secured on the asset to which it relates.
8 Capital commitments 2023 2022
£ £
Amounts contracted for but not provided in the accounts 61,645 -
9 Other financial commitments 2023 2022
£ £
Total future minimum payments under non-cancellable operating leases 241,459 240,050
10 Other information
The Packaging Company (Midlands) Limited is a private company limited by shares and incorporated in England. Its registered office is:
195 Scudamore Road
Braunstone Frith Industrial Estate
Leicester
LE3 1UQ
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