Company registration number 03775625 (England and Wales)
EVESHAM SPECIALIST PACKAGING LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2023
EVESHAM SPECIALIST PACKAGING LIMITED
COMPANY INFORMATION
Directors
R P Lynch
R Mitchell
D J Wilson
Mr R Mitchell
D MacDonald
Mrs C S Lynch
Secretary
Mr R Mitchell
Company number
03775625
Registered office
167 High Street
Gloucester
GL1 4TD
Auditor
Griffiths Marshall
Beaumont House
172 Southgate Street
Gloucester
GL1 2EZ
Business address
Unit 20
Orchard Ind Estate
Toddington
Cheltenham
Glos
GL54 5EB
Bankers
HSBC Plc
11a High Street
Tewkesbury
Gloucestershire
GL20 5AP
EVESHAM SPECIALIST PACKAGING LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2
Directors' responsibilities statement
3
Independent auditor's report
4 - 6
Profit and loss account
7
Group statement of comprehensive income
8
Group balance sheet
9
Company balance sheet
10
Group statement of changes in equity
11
Company statement of changes in equity
12
Group statement of cash flows
13
Company statement of cash flows
14
Notes to the financial statements
15 - 33
EVESHAM SPECIALIST PACKAGING LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 1 -

The directors present the strategic report for the year ended 28 February 2023.

Review of the business

The group is a supplier of packaging and horticultural sundries and operates from Toddington, Cheltenham.

Principal risks and uncertainties

The process of risk acceptance and risk management is addressed through a framework of policies, procedures and controls, all of which are subject to board approval and ongoing review by management.

 

The group has to adhere to European standards in relation to trace metals and acetic acid limits in its pulp products. This is to managed by investing in quality control processes and an annual investigation by CCFRA.

 

The principal risks is the group's dependence on strong crop yields and its consequential demand for packaging. This is largely affected by weather conditions.

Development and performance

The results for the group are set out in pages 7 to 33. They show a profit after taxation of £753,026 (2022 - £1,884,374). The group held shareholders' funds of £9,985,489 (2022 - £9,652,463) as at 28 February 2023.

 

The performance of the group for the financial year was very encouraging, a mix in products has helped maintain stable margins.

Key performance indicators

The board monitors the progress of the group by reference to the following KPI's:

 

2023 2022

 

Sales 19,271,228 18,246,406

 

Gross Profit 3,314,625 3,325,498

 

Gross Profit Margin 17.2% 18.2%

 

Net Profit Margin 5.7% 10.2%

The above indicators show an increase in turnover, with an improvement in gross profit margins and in net profit margins,

On behalf of the board

R P Lynch
Director
20 November 2023
EVESHAM SPECIALIST PACKAGING LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 2 -

The directors present their annual report and financial statements for the year ended 28 February 2023.

Principal activities

The principal activity of the company continued to be that of suppliers of packaging and horticultural sundries

Results and dividends

The results for the year are set out on page 7.

Ordinary dividends were paid amounting to £420,000. The directors do not recommend payment of a further dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

R P Lynch
R Mitchell
D J Wilson
Mr R Mitchell
D MacDonald
Mrs C S Lynch
Auditor

In accordance with the company's articles, a resolution proposing that Griffiths Marshall be reappointed as auditor of the group will be put at a General Meeting.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

On behalf of the board
R P Lynch
Director
20 November 2023
EVESHAM SPECIALIST PACKAGING LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 3 -

The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

 

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

 

 

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

EVESHAM SPECIALIST PACKAGING LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF EVESHAM SPECIALIST PACKAGING LIMITED
- 4 -
Opinion

We have audited the financial statements of Evesham Specialist Packaging Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 28 February 2023 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows, the company statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including 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:

Basis for opinion

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

Conclusions relating to going concern

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

 

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

 

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

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

EVESHAM SPECIALIST PACKAGING LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF EVESHAM SPECIALIST PACKAGING LIMITED
- 5 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

 

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

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the parent company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

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

Irregularities including fraud and non-compliance with laws and regulations

We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

We gained an understanding of the legal and regulatory framework applicable to Evesham Specialist Packaging Limited and the industry in which it operates and, considered the risk of acts by Management and directors of Evesham Specialist Packaging Limited which were contrary to applicable laws and regulations, including fraud. These included but were not limited to compliance with the Companies Act 2006 and Employment Law. We made enquiries of the Directors to obtain further understanding of risks of non-compliance.

 

We focused on laws and regulations that could give rise to a material misstatement in the financial statements. Our tests included, but were not limited to:

 

Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.

EVESHAM SPECIALIST PACKAGING LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF EVESHAM SPECIALIST PACKAGING LIMITED
- 6 -

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

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 an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Mr S J Humphries
(Senior Statutory Auditor)
For and on behalf of Griffiths Marshall
20 November 2023
Chartered Accountants
Statutory Auditor
Beaumont House
172 Southgate Street
Gloucester
GL1 2EZ
EVESHAM SPECIALIST PACKAGING LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 7 -
2023
2022
Notes
£
£
Turnover
3
19,271,228
18,246,406
Cost of sales
(15,956,603)
(14,920,908)
Gross profit
3,314,625
3,325,498
Administrative expenses
(2,324,534)
(1,493,139)
Other operating income
22,729
21,925
Operating profit
4
1,012,820
1,854,284
Interest receivable and similar income
8
104,329
16,508
Interest payable and similar expenses
9
(6,771)
-
0
Other gains and losses
10
(72,108)
118,501
Profit before taxation
1,038,270
1,989,293
Tax on profit
11
(285,244)
(104,919)
Profit for the financial year
753,026
1,884,374
Profit for the financial year is all attributable to the owners of the parent company.

The profit and loss account has been prepared on the basis that all operations are continuing operations.

EVESHAM SPECIALIST PACKAGING LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 8 -
2023
2022
£
£
Profit for the year
753,026
1,884,374
Other comprehensive income
-
-
Total comprehensive income for the year
753,026
1,884,374
Total comprehensive income for the year is all attributable to the owners of the parent company.
EVESHAM SPECIALIST PACKAGING LIMITED
GROUP BALANCE SHEET
AS AT
28 FEBRUARY 2023
28 February 2023
- 9 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
14
1,195,805
717,928
Investments
15
1,194,128
1,253,836
2,389,933
1,971,764
Current assets
Stocks
17
1,085,694
1,196,377
Debtors
18
3,322,899
3,347,990
Cash at bank and in hand
5,695,685
5,750,553
10,104,278
10,294,920
Creditors: amounts falling due within one year
19
(2,448,119)
(2,566,658)
Net current assets
7,656,159
7,728,262
Total assets less current liabilities
10,046,092
9,700,026
Provisions for liabilities
Deferred tax liability
20
60,603
47,563
(60,603)
(47,563)
Net assets
9,985,489
9,652,463
Capital and reserves
Called up share capital
22
300
300
Profit and loss reserves
9,985,189
9,652,163
Total equity
9,985,489
9,652,463
The financial statements were approved by the board of directors and authorised for issue on 20 November 2023 and are signed on its behalf by:
20 November 2023
R P Lynch
Director
Company registration number 03775625 (England and Wales)
EVESHAM SPECIALIST PACKAGING LIMITED
COMPANY BALANCE SHEET
AS AT 28 FEBRUARY 2023
28 February 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
14
1,195,805
717,928
Investments
15
100
100
1,195,905
718,028
Current assets
Stocks
17
1,085,694
1,196,377
Debtors
18
4,735,965
4,768,612
Cash at bank and in hand
5,648,918
5,700,820
11,470,577
11,665,809
Creditors: amounts falling due within one year
19
(2,404,770)
(2,524,471)
Net current assets
9,065,807
9,141,338
Total assets less current liabilities
10,261,712
9,859,366
Provisions for liabilities
Deferred tax liability
20
60,603
47,563
(60,603)
(47,563)
Net assets
10,201,109
9,811,803
Capital and reserves
Called up share capital
22
300
300
Profit and loss reserves
10,200,809
9,811,503
Total equity
10,201,109
9,811,803

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £809,306 (2022 - £1,780,649 profit).

The financial statements were approved by the board of directors and authorised for issue on 20 November 2023 and are signed on its behalf by:
20 November 2023
R P Lynch
Director
Company registration number 03775625 (England and Wales)
EVESHAM SPECIALIST PACKAGING LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 11 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 March 2021
300
8,187,789
8,188,089
Year ended 28 February 2022:
Profit and total comprehensive income
-
1,884,374
1,884,374
Dividends
12
-
(420,000)
(420,000)
Balance at 28 February 2022
300
9,652,163
9,652,463
Year ended 28 February 2023:
Profit and total comprehensive income
-
753,026
753,026
Dividends
12
-
(420,000)
(420,000)
Balance at 28 February 2023
300
9,985,189
9,985,489
EVESHAM SPECIALIST PACKAGING LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 12 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 March 2021
300
8,450,854
8,451,154
Year ended 28 February 2022:
Profit and total comprehensive income for the year
-
1,780,649
1,780,649
Dividends
12
-
(420,000)
(420,000)
Balance at 28 February 2022
300
9,811,503
9,811,803
Year ended 28 February 2023:
Profit and total comprehensive income
-
809,306
809,306
Dividends
12
-
(420,000)
(420,000)
Balance at 28 February 2023
300
10,200,809
10,201,109
EVESHAM SPECIALIST PACKAGING LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 13 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
24
1,109,071
827,664
Interest paid
(6,771)
-
0
Income taxes refunded/(paid)
3,720
(8,631)
Net cash inflow from operating activities
1,106,020
819,033
Investing activities
Purchase of tangible fixed assets
(576,567)
(166,357)
Proceeds on disposal of tangible fixed assets
-
41,001
Proceeds on disposal of investments
(12,400)
(129,325)
Loans advanced
(256,250)
-
Interest received
73,652
7,868
Dividends received
21,416
8,640
Other income received from investments
9,261
-
0
Net cash used in investing activities
(740,888)
(238,173)
Financing activities
Dividends paid to equity shareholders
(420,000)
(420,000)
Net cash used in financing activities
(420,000)
(420,000)
Net (decrease)/increase in cash and cash equivalents
(54,868)
160,860
Cash and cash equivalents at beginning of year
5,750,553
5,589,693
Cash and cash equivalents at end of year
5,695,685
5,750,553
EVESHAM SPECIALIST PACKAGING LIMITED
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 14 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
25
878,217
663,910
Interest paid
(6,208)
-
0
Income taxes refunded/(paid)
3,158
(8,631)
Net cash inflow from operating activities
875,167
655,279
Investing activities
Purchase of tangible fixed assets
(576,567)
(166,357)
Proceeds on disposal of tangible fixed assets
-
0
41,001
Interest received
60,237
1,451
Other income received from investments
9,261
-
0
Net cash used in investing activities
(507,069)
(123,905)
Financing activities
Dividends paid to equity shareholders
(420,000)
(420,000)
Net cash used in financing activities
(420,000)
(420,000)
Net (decrease)/increase in cash and cash equivalents
(51,902)
111,374
Cash and cash equivalents at beginning of year
5,700,820
5,589,446
Cash and cash equivalents at end of year
5,648,918
5,700,820
EVESHAM SPECIALIST PACKAGING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 15 -
1
Accounting policies
Company information

Evesham Specialist Packaging Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is 167 High Street, Gloucester, GL1 4TD.

 

The group consists of Evesham Specialist Packaging Limited and all of its subsidiaries.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, [modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.

The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:

 

1.2
Basis of consolidation

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

EVESHAM SPECIALIST PACKAGING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
1
Accounting policies
(Continued)
- 16 -

The consolidated group financial statements consist of the financial statements of the parent company Evesham Specialist Packaging Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 28 February 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.

Investments in joint ventures and associates are carried in the group balance sheet at cost plus post-acquisition changes in the group’s share of the net assets of the entity, less any impairment in value. The carrying values of investments in joint ventures and associates include acquired goodwill.

 

If the group’s share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the group does not recognise further losses unless it has incurred obligations to do so or has made payments on behalf of the joint venture or associate.

 

Unrealised gains arising from transactions with joint ventures and associates are eliminated to the extent of the group’s interest in the entity.

1.3
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.4
Turnover

Turnover represents amounts receivable for goods and services net of VAT and trade discounts. Turnover is recognised when goods are physically delivered to the customer.

 

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

1.5
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Land and buildings Freehold
6 years straight line
Land and buildings Leasehold
6 years straight line
Plant and machinery
20% reducing balance
Fixtures, fittings & equipment
20% reducing balance & 33.33% straight line
Motor vehicles
25% reducing balance
EVESHAM SPECIALIST PACKAGING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
1
Accounting policies
(Continued)
- 17 -

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.

1.6
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

 

Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.

 

Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.

 

In the parent company financial statements, investments in associates are accounted for at cost less impairment.

Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

1.7
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

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

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

EVESHAM SPECIALIST PACKAGING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
1
Accounting policies
(Continued)
- 18 -

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.8
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

 

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

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.9
Cash at bank and in hand

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.10
Financial instruments

The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

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

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

EVESHAM SPECIALIST PACKAGING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
1
Accounting policies
(Continued)
- 19 -
Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

EVESHAM SPECIALIST PACKAGING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
1
Accounting policies
(Continued)
- 20 -
1.11
Equity instruments

Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.

1.12
Derivatives

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

 

A derivative with a positive fair value is recognised as a financial asset, whereas a derivative with a negative fair value is recognised as a financial liability.

1.13
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.14
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.15
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.16
Leases
EVESHAM SPECIALIST PACKAGING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
1
Accounting policies
(Continued)
- 21 -

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

1.17
Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

 

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

1.18
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

2
Judgements and key sources of estimation uncertainty

In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

3
Turnover and other revenue

An analysis of the group's turnover is as follows:

2023
2022
£
£
Turnover analysed by class of business
Solid Boards
419,453
280,511
Film
3,063,276
2,910,559
Pulp
4,286,077
4,929,141
Corrugated
7,994,784
7,215,987
Punnets
2,586,894
1,999,150
Trays
293,796
308,497
Other Sales, Bags, Tape, Glue, Liners, Bubble & Sundries
626,948
602,561
19,271,228
18,246,406
EVESHAM SPECIALIST PACKAGING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
3
Turnover and other revenue
(Continued)
- 22 -
2023
2022
£
£
Other significant revenue
Interest income
82,913
7,868
Dividends received
21,416
8,640
Grants received
22,729
21,925
2023
2022
£
£
Turnover analysed by geographical market
UK Sales
19,271,228
18,246,406
4
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange (gains)/losses
(29,317)
14,561
Government grants
(22,729)
(21,925)
Depreciation of owned tangible fixed assets
98,690
53,094
Profit on disposal of tangible fixed assets
-
(24,875)
Operating lease charges
141,965
139,568
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
9,070
8,570
Audit of the financial statements of the company's subsidiaries
3,565
2,539
12,635
11,109
EVESHAM SPECIALIST PACKAGING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 23 -
6
Employees

The average monthly number of persons (including directors) employed by the group and company during the year was:

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
Directors
9
9
5
5
Administration
7
6
7
6
Sales
5
5
5
5
Distribution
14
12
14
12
Total
35
32
31
28

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
860,166
839,929
860,166
839,929
Social security costs
77,023
74,616
77,023
74,616
Pension costs
40,000
40,000
40,000
40,000
977,189
954,545
977,189
954,545
7
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
112,278
176,661
Company pension contributions to defined contribution schemes
40,000
40,000
152,278
216,661
EVESHAM SPECIALIST PACKAGING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 24 -
8
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
60,237
1,451
Other interest income
13,415
6,417
Total interest revenue
73,652
7,868
Other income from investments
Dividends received
21,416
8,640
Gains on financial instruments measured at fair value through profit or loss
9,261
-
0
Total income
104,329
16,508
2023
2022
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
67,402
7,868
Interest on financial assets measured at fair value through profit or loss
9,261
-
0
9
Interest payable and similar expenses
2023
2022
£
£
Other finance costs:
Other interest
6,771
-
10
Other gains/(losses)
2023
2022
£
£
Loss on disposal of investments held at fair value
(9,482)
-
Gain on disposal of fixed asset investments
-
150,758
Other gains and losses
(62,626)
(32,257)
(72,108)
118,501
11
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
117,516
113,602
Adjustments in respect of prior periods
154,688
(29,121)
Total current tax
272,204
84,481
EVESHAM SPECIALIST PACKAGING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
11
Taxation
2023
2022
£
£
(Continued)
- 25 -
Deferred tax
Origination and reversal of timing differences
13,040
20,438
Total tax charge
285,244
104,919

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2023
2022
£
£
Profit before taxation
1,038,270
1,989,293
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2022: 19.00%)
197,271
377,966
Tax effect of expenses that are not deductible in determining taxable profit
14,305
12,231
Tax effect of income not taxable in determining taxable profit
(4,068)
(3,729)
Adjustments in respect of prior years
154,688
(29,121)
Permanent capital allowances in excess of depreciation
8
(27,794)
Research and development tax credit
-
0
(155,068)
Patent Box Allowance
(90,000)
(90,000)
Deferred Tax
13,040
20,434
Taxation charge
285,244
104,919
12
Dividends
2023
2022
Recognised as distributions to equity holders:
£
£
Final paid
420,000
420,000
EVESHAM SPECIALIST PACKAGING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 26 -
13
Impairments

Impairment tests have been carried out where appropriate and the following impairment losses have been recognised in profit or loss:

2023
2022
Notes
£
£
In respect of:
Fixed asset investments
15
62,626
32,257
Recognised in:
Amounts written off investments
62,626
32,257

The impairment losses in respect of financial assets are recognised in other gains and losses in the profit and loss account.

EVESHAM SPECIALIST PACKAGING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 27 -
14
Tangible fixed assets
Group
Land and buildings Freehold
Land and buildings Leasehold
Plant and machinery
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 March 2022
526,750
87,397
375,208
134,832
300,105
1,424,292
Additions
445,169
-
0
29,629
2,192
99,577
576,567
At 28 February 2023
971,919
87,397
404,837
137,024
399,682
2,000,859
Depreciation and impairment
At 1 March 2022
64,210
79,609
325,620
129,275
107,650
706,364
Depreciation charged in the year
10,435
1,558
9,918
3,771
73,008
98,690
At 28 February 2023
74,645
81,167
335,538
133,046
180,658
805,054
Carrying amount
At 28 February 2023
897,274
6,230
69,299
3,978
219,024
1,195,805
At 28 February 2022
462,540
7,788
49,588
5,557
192,455
717,928
EVESHAM SPECIALIST PACKAGING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
14
Tangible fixed assets
(Continued)
- 28 -
Company
Land and buildings Freehold
Land and buildings Leasehold
Plant and machinery
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 March 2022
526,750
87,397
375,208
134,832
300,105
1,424,292
Additions
445,169
-
0
29,629
2,192
99,577
576,567
At 28 February 2023
971,919
87,397
404,837
137,024
399,682
2,000,859
Depreciation and impairment
At 1 March 2022
64,210
79,609
325,620
129,275
107,650
706,364
Depreciation charged in the year
10,435
1,558
9,918
3,771
73,008
98,690
At 28 February 2023
74,645
81,167
335,538
133,046
180,658
805,054
Carrying amount
At 28 February 2023
897,274
6,230
69,299
3,978
219,024
1,195,805
At 28 February 2022
462,540
7,788
49,588
5,557
192,455
717,928
EVESHAM SPECIALIST PACKAGING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 29 -
15
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
16
-
0
-
0
100
100
Unlisted investments
1,194,128
1,253,836
-
0
-
0
1,194,128
1,253,836
100
100
Movements in fixed asset investments
Group
Investments
£
Cost or valuation
At 1 March 2022
1,253,836
Valuation changes
2,918
At 28 February 2023
1,256,754
Impairment
At 1 March 2022
-
Impairment losses
62,626
At 28 February 2023
62,626
Carrying amount
At 28 February 2023
1,194,128
At 28 February 2022
1,253,836
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 March 2022 and 28 February 2023
100
Carrying amount
At 28 February 2023
100
At 28 February 2022
100
EVESHAM SPECIALIST PACKAGING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 30 -
16
Subsidiaries

Details of the company's subsidiaries at 28 February 2023 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
ETF 11 Limited
England
Ordinary Shares
100.00
17
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Finished goods and goods for resale
1,085,694
1,196,377
1,085,694
1,196,377
18
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
1,692,968
2,024,322
1,692,968
2,024,322
Corporation tax recoverable
1,306
-
0
-
0
-
0
Amounts owed by group undertakings
-
-
1,670,622
1,420,622
Other debtors
1,571,581
1,269,473
1,315,331
1,269,473
Prepayments and accrued income
57,044
54,195
57,044
54,195
3,322,899
3,347,990
4,735,965
4,768,612
19
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
£
£
£
£
Trade creditors
922,040
1,509,190
922,040
1,509,190
Corporation tax payable
390,832
113,602
362,977
86,309
Other taxation and social security
104,261
179,223
104,261
179,223
Other creditors
992,983
728,378
980,489
715,884
Accruals and deferred income
38,003
36,265
35,003
33,865
2,448,119
2,566,658
2,404,770
2,524,471
EVESHAM SPECIALIST PACKAGING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 31 -
20
Deferred taxation

Deferred tax assets and liabilities are offset where the group or company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:

Liabilities
Liabilities
2023
2022
Group
£
£
Accelerated capital allowances
60,603
47,563
Liabilities
Liabilities
2023
2022
Company
£
£
Accelerated capital allowances
60,603
47,563
Group
Company
2023
2023
Movements in the year:
£
£
Liability at 1 March 2022
47,563
47,563
Credit to profit or loss
(1,505)
(1,505)
Effect of change in tax rate - profit or loss
14,545
14,545
Liability at 28 February 2023
60,603
60,603

The deferred tax liability set out above is expected to reverse within 12 months and relates to accelerated capital allowances that are expected to mature within the same period.

21
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
40,000
40,000

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

22
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
300
300
300
300
EVESHAM SPECIALIST PACKAGING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 32 -
23
Operating lease commitments
Lessee

Operating lease payments represent rental payable by the company for use of the primary location and units in Toddington. The premises are owned separately by the directors of the company and no long term lease agreement is in place. instead the lease is renewed annually.

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Group
Company
2023
2022
2023
2022
£
£
£
£
Within one year
125,000
125,000
125,000
125,000
125,000
125,000
125,000
125,000
24
Cash generated from group operations
2023
2022
£
£
Profit for the year after tax
753,026
1,884,374
Adjustments for:
Taxation charged
285,244
104,919
Finance costs
6,771
-
0
Investment income
(104,329)
(16,508)
Gain on disposal of tangible fixed assets
-
(24,875)
Depreciation and impairment of tangible fixed assets
98,690
53,094
Gain on sale of investments
-
(150,758)
Other gains and losses
72,108
32,257
Movements in working capital:
Decrease/(increase) in stocks
110,683
(218,856)
Decrease/(increase) in debtors
282,647
(1,204,646)
(Decrease)/increase in creditors
(395,769)
368,663
Cash generated from operations
1,109,071
827,664
EVESHAM SPECIALIST PACKAGING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 33 -
25
Cash generated from operations - company
2023
2022
£
£
Profit for the year after tax
809,306
1,780,649
Adjustments for:
Taxation charged
286,550
77,626
Finance costs
6,208
-
0
Investment income
(69,498)
(1,451)
Gain on disposal of tangible fixed assets
-
(24,875)
Depreciation and impairment of tangible fixed assets
98,690
53,094
Movements in working capital:
Decrease/(increase) in stocks
110,683
(218,856)
Decrease/(increase) in debtors
32,647
(1,370,491)
(Decrease)/increase in creditors
(396,369)
368,214
Cash generated from operations
878,217
663,910
26
Analysis of changes in net funds - group
1 March 2022
Cash flows
28 February 2023
£
£
£
Cash at bank and in hand
5,750,553
(54,868)
5,695,685
27
Analysis of changes in net funds - company
1 March 2022
Cash flows
28 February 2023
£
£
£
Cash at bank and in hand
5,700,820
(51,902)
5,648,918
2023-02-282022-03-01falseCCH SoftwareCCH Accounts Production 2023.200R P LynchD J WilsonMr R MitchellD MacDonaldMrs C S LynchMrs C S LynchMr R 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