Company registration number 01208323 (England and Wales)
WEEDON PACKAGING SOLUTION CENTRE LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
WEEDON PACKAGING SOLUTION CENTRE LIMITED
COMPANY INFORMATION
Directors
Mr P R Weedon
Mr J D Weedon
Secretary
Mr P R Weedon
Company number
01208323
Registered office
110 Anglesey Business Park
Littleworth Road
Hednesford
Cannock
Staffordshire
United Kingdom
WS12 1NR
Auditor
BK Plus Audit Limited
Azzurri House
Walsall Road
Aldridge
Walsall
England
WS9 0RB
WEEDON PACKAGING SOLUTION CENTRE LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2
Directors' responsibilities statement
3
Independent auditor's report
4 - 6
Profit and loss account
7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Notes to the financial statements
11 - 24
WEEDON PACKAGING SOLUTION CENTRE LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -
The directors present the strategic report for the year ended 31 December 2023.
Review of the business
The results for the year and the financial position at the year end were considered satisfactory by the directors who expect continued growth in the foreseeable future.
Principal risks and uncertainties
The key business risks affecting the company at present are:
Competitive Risks
The company is reliant on certain customers for contracts which are subject to periodic review. Renewal of these contracts is uncertain and based on financial and performance criteria. Competitive pressure in the UK is reducing margins across the industry.
Legislative Risks
In order to operate in its chosen market, the company must comply with various UK legislation and laws. Compliance imposes costs and failure to comply with the standards could materially affect the company's ability to operate.
Credit Risk
The company's trade and other debtors are actively monitored to avoid significant concentrations of credit risk as well as careful reviewing of all customers, especially those with lack of an extensive credit history.
Brexit
The UK's decision to leave the EU created uncertainty regarding its overall impact on the UK economy and its impact on the free movement of labour between the EU and the UK.
Covid-19
The global coronavirus pandemic has created economic uncertainty and continues to have a financial impact on UK business.
Development and performance
The position of the company is disclosed on the statement of financial position.
Key performance indicators
Turnover decreased by 1.66% (2022 increased - 19.00%).
Gross profit margin during the year was 24.475% (2022 - 23.311%).
Profit before tax was 2.86% of sales (2022 - 2.19%).
Mr P R Weedon
Director
28 March 2024
WEEDON PACKAGING SOLUTION CENTRE LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
The directors present their annual report and financial statements for the year ended 31 December 2023.
Principal activities
The principal activity of the company continued to be that of packaging and point of sale display manufacture.
Results and dividends
The results for the year are set out on page 7.
Ordinary dividends were paid amounting to £477,611. The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr P R Weedon
Mr J D Weedon
Future developments
Work is continuing on the development and modification of existing products to meet customer requirements and through a continuing programme of research and development to take advantage of new technology as it becomes available.
Auditor
BK Plus Audit Limited were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed 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 company’s auditor 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 company’s auditor is aware of that information.
Medium-sized companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
On behalf of the board
Mr P R Weedon
Director
28 March 2024
WEEDON PACKAGING SOLUTION CENTRE LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 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 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.
WEEDON PACKAGING SOLUTION CENTRE LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF WEEDON PACKAGING SOLUTION CENTRE LIMITED
- 4 -
Opinion
We have audited the financial statements of Weedon Packaging Solution Centre Limited (the 'company') for the year ended 31 December 2023 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity 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:
give a true and fair view of the state of the company's affairs as at 31 December 2023 and of its profit for the year 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.
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 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.
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:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
WEEDON PACKAGING SOLUTION CENTRE LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF WEEDON PACKAGING SOLUTION CENTRE LIMITED
- 5 -
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 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:
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 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 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 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.
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, are instances of 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.
From the preliminary of the audit, we ensure our understanding of the entity is up to date. This includes, but is not limited to, current knowledge of their activities, the business and control environments, and their compliance with the applicable legal and regulatory frameworks. This information supports our risk identification and the subsequent design of audit procedures to mitigate those risks; ensuring that the audit evidence obtained is sufficient and appropriate to support our opinion.
In response to the risks identified, specific to this entity, we designed procedures which included, but were not limited to:
Enquiry of management and those charged with governance around actual and potential litigation and claims;
Reviewing minutes of meetings of those charged with governance, if available;
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;
Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness, and evaluating the business rationale for significant transactions outside the normal course of business.
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.
WEEDON PACKAGING SOLUTION CENTRE LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF WEEDON PACKAGING SOLUTION CENTRE LIMITED
- 6 -
This report is made solely to the company's member 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 member those matters we are required to state to the member 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 member, for our audit work, for this report, or for the opinions we have formed.
Christopher Hession C.A.
Senior Statutory Auditor
For and on behalf of BK Plus Audit Limited
28 March 2024
Statutory Auditor
Azzurri House
Walsall Road
Aldridge
Walsall
England
WS9 0RB
WEEDON PACKAGING SOLUTION CENTRE LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 7 -
2023
2022
Notes
£
£
Turnover
3
20,274,060
20,615,811
Cost of sales
(15,311,975)
(15,810,146)
Gross profit
4,962,085
4,805,665
Distribution costs
(962,786)
(836,605)
Administrative expenses
(3,152,250)
(3,335,103)
Other operating income
6,000
6,000
Operating profit
4
853,049
639,957
Interest payable and similar expenses
7
(273,172)
(187,459)
Profit before taxation
579,877
452,498
Tax on profit
8
(138,256)
(180,086)
Profit for the financial year
441,621
272,412
The profit and loss account has been prepared on the basis that all operations are continuing operations.
WEEDON PACKAGING SOLUTION CENTRE LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
2023
2022
£
£
Profit for the year
441,621
272,412
Other comprehensive income
-
-
Total comprehensive income for the year
441,621
272,412
WEEDON PACKAGING SOLUTION CENTRE LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 9 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
11
2,008,316
2,225,963
Current assets
Stocks
12
638,493
494,452
Debtors
13
7,461,654
8,236,491
Cash at bank and in hand
91,399
247,441
8,191,546
8,978,384
Creditors: amounts falling due within one year
14
(6,783,655)
(7,441,039)
Net current assets
1,407,891
1,537,345
Total assets less current liabilities
3,416,207
3,763,308
Creditors: amounts falling due after more than one year
15
(877,643)
(1,238,089)
Provisions for liabilities
Deferred tax liability
18
457,881
408,546
(457,881)
(408,546)
Net assets
2,080,683
2,116,673
Capital and reserves
Called up share capital
21
100
100
Revaluation reserve
24,485
24,485
Profit and loss reserves
2,056,098
2,092,088
Total equity
2,080,683
2,116,673
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.true
The financial statements were approved by the board of directors and authorised for issue on 28 March 2024 and are signed on its behalf by:
Mr P R Weedon
Mr J D Weedon
Director
Director
Company registration number 01208323 (England and Wales)
WEEDON PACKAGING SOLUTION CENTRE LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
Share capital
Revaluation reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 January 2022
100
24,485
2,245,994
2,270,579
Year ended 31 December 2022:
Profit and total comprehensive income
-
-
272,412
272,412
Dividends
9
-
-
(426,318)
(426,318)
Balance at 31 December 2022
100
24,485
2,092,088
2,116,673
Year ended 31 December 2023:
Profit and total comprehensive income
-
-
441,621
441,621
Dividends
9
-
-
(477,611)
(477,611)
Balance at 31 December 2023
100
24,485
2,056,098
2,080,683
WEEDON PACKAGING SOLUTION CENTRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
1
Accounting policies
Company information
Weedon Packaging Solution Centre Limited is a private company limited by shares incorporated in England and Wales. The registered office is 110 Anglesey Business Park, Littleworth Road, Hednesford, Cannock, Staffordshire, United Kingdom, WS12 1NR.
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, except for the modification to a fair value basis for plant and machinery. The principal accounting policies adopted are set out below.
This 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:
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 26 ‘Share based Payment’: Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
The financial statements of the company are consolidated in the financial statements of Weedon Holdings Limmited. These consolidated financial statements are available from its registered office, Unit 110 Angelsey Business Park, Littleworth Road, Hednesford, Staffordshire, WS12 1NR.
1.2
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company 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.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
Revenue from the sale of packaging and point of sale displays is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer.
WEEDON PACKAGING SOLUTION CENTRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 12 -
1.4
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.
Amortisation 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:
Patents & licences
Fully amortised
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 short leaehold
8 years straight line
Plant and machinery
2 to 15 years straight line
Fixtures, fittings and equipment
2 to 5 years straight line
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 credited or charged to profit or loss.
1.6
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible 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.
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.
1.7
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell.
1.8
Cash and cash equivalents
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.
WEEDON PACKAGING SOLUTION CENTRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 13 -
1.9
Financial instruments
The company 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 company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with 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.
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 company 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 company after deducting all of its liabilities.
WEEDON PACKAGING SOLUTION CENTRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 14 -
Basic financial 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.
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 company’s contractual obligations expire or are discharged or cancelled.
1.10
Equity instruments
Equity instruments issued by the company 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 company.
Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.
1.11
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 company’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.
WEEDON PACKAGING SOLUTION CENTRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 15 -
1.12
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.
1.13
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.14
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
1.15
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.
1.16
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 company’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.
WEEDON PACKAGING SOLUTION CENTRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
2
Judgements and key sources of estimation uncertainty
(Continued)
- 16 -
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
Stock provisions
The company considers it necessary to evaluate the recoverability of the cost of stock. The stock levels are constantly reviewed and, should there be an indication of obsolescence, the stock is written down to its assessed net realisable value.
3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Turnover
20,274,060
20,615,811
2023
2022
£
£
Other revenue
Grants received
6,000
6,000
4
Operating profit
2023
2022
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange losses
52
35
Government grants
(6,000)
(6,000)
Fees payable to the company's auditor for the audit of the company's financial statements
15,650
12,360
Depreciation of owned tangible fixed assets
134,901
59,525
Depreciation of tangible fixed assets held under finance leases
218,246
235,702
Operating lease charges
300,846
417,896
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Management and administration
44
43
Production
95
93
Total
139
136
WEEDON PACKAGING SOLUTION CENTRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
5
Employees
(Continued)
- 17 -
Their aggregate remuneration comprised:
2023
2022
£
£
Wages and salaries
3,725,142
3,655,449
Social security costs
372,045
379,423
Pension costs
159,974
142,440
4,257,161
4,177,312
6
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
34,424
32,628
Company pension contributions to defined contribution schemes
85,025
73,548
119,449
106,176
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2022 - 2).
7
Interest payable and similar expenses
2023
2022
£
£
Interest on invoice finance arrangements
138,871
92,606
Other interest on financial liabilities
17,125
17,442
Interest on finance leases and hire purchase contracts
117,176
77,245
Other interest
166
273,172
187,459
8
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
88,921
Deferred tax
Origination and reversal of timing differences
(47,395)
180,086
Tax losses carried forward
96,730
Total deferred tax
49,335
180,086
Total tax charge
138,256
180,086
WEEDON PACKAGING SOLUTION CENTRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
8
Taxation
(Continued)
- 18 -
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
579,877
452,498
Expected tax charge based on the standard rate of corporation tax in the UK of 23.52% (2022: 19.00%)
136,393
85,975
Tax effect of expenses that are not deductible in determining taxable profit
717
684
Tax effect of income not taxable in determining taxable profit
(1,411)
(1,140)
Unutilised tax losses carried forward
73,514
Effect of change in corporation tax rate
2,917
(23,216)
Group relief
125,398
Permanent capital allowances in excess of depreciation
(360)
Depreciation on assets not qualifying for tax allowances
(3,174)
Under/(over) provided in prior years
(2,559)
130% Super deduction
(75,396)
Taxation charge for the year
138,256
180,086
9
Dividends
2023
2022
£
£
Interim paid
477,611
426,318
10
Intangible fixed assets
Patents & licences
£
Cost
At 1 January 2023 and 31 December 2023
37,820
Amortisation and impairment
At 1 January 2023 and 31 December 2023
37,820
Carrying amount
At 31 December 2023
At 31 December 2022
WEEDON PACKAGING SOLUTION CENTRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 19 -
11
Tangible fixed assets
Land and buildings short leaehold
Plant and machinery
Fixtures, fittings and equipment
Total
£
£
£
£
Cost
At 1 January 2023
121,674
5,280,211
652,226
6,054,111
Additions
84,764
50,736
135,500
At 31 December 2023
121,674
5,364,975
702,962
6,189,611
Depreciation and impairment
At 1 January 2023
121,674
3,177,917
528,557
3,828,148
Depreciation charged in the year
327,322
25,825
353,147
At 31 December 2023
121,674
3,505,239
554,382
4,181,295
Carrying amount
At 31 December 2023
1,859,736
148,580
2,008,316
At 31 December 2022
2,102,294
123,669
2,225,963
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
2023
2022
£
£
Plant and machinery
1,471,888
1,631,458
12
Stocks
2023
2022
£
£
Raw materials and consumables
243,760
177,789
Work in progress
166,298
112,716
Finished goods and goods for resale
228,435
203,947
638,493
494,452
WEEDON PACKAGING SOLUTION CENTRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 20 -
13
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
5,286,284
4,951,605
Amounts owed by group undertakings
493,693
1,801,021
Other debtors
33,718
33,558
Prepayments and accrued income
231,729
250,226
6,045,424
7,036,410
2023
2022
Amounts falling due after more than one year:
£
£
Amounts owed by group undertakings
1,416,230
1,200,081
Total debtors
7,461,654
8,236,491
14
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Obligations under finance leases
17
290,926
300,132
Other borrowings
16
63,522
57,388
Trade creditors
2,375,479
2,832,140
Amounts owed to group undertakings
259,453
Corporation tax
88,655
Other taxation and social security
385,045
487,542
Government grants
19
6,000
6,000
Other creditors
3,029,967
3,291,283
Accruals and deferred income
284,608
466,554
6,783,655
7,441,039
Finance leases are secured against the asset they relate to.
Included within the above is £2,910,288 (2022 - £3,088,622) relating to an invoice discounting facility, this balance is secured by an all assets debenture held by Close Brothers Limited, dated 23/12/2016.
WEEDON PACKAGING SOLUTION CENTRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 21 -
15
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Obligations under finance leases
17
762,904
1,053,828
Other borrowings
16
94,239
157,761
Government grants
19
20,500
26,500
877,643
1,238,089
Finance leases are secured against the asset they relate to.
16
Loans and overdrafts
2023
2022
£
£
Other loans
157,761
215,149
Payable within one year
63,522
57,388
Payable after one year
94,239
157,761
Other borrowings relate to a loan obtained under the UK Government Coronavirus Business Interruption Loan Scheme (CBILS) and is not secured against the company's assets. The loan is repayable over 60 months with a deferred period of 12 months during which the UK Government pays the interest on the company's behalf. The interest rate is fixed at 8.9% per annum.
17
Finance lease obligations
2023
2022
Future minimum lease payments due under finance leases:
£
£
Within one year
376,959
417,399
In two to five years
852,638
1,229,597
1,229,597
1,646,996
Less: future finance charges
(175,767)
(293,036)
1,053,830
1,353,960
Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 4 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
WEEDON PACKAGING SOLUTION CENTRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 22 -
18
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2023
2022
Balances:
£
£
Accelerated capital allowances
461,177
505,276
Tax losses
-
(96,730)
Retirement benefit obligations
(3,296)
-
457,881
408,546
2023
Movements in the year:
£
Liability at 1 January 2023
408,546
Charge to profit or loss
49,335
Liability at 31 December 2023
457,881
£81,323 of the deferred tax liability noted above is expected to reverse in the next 12 months.
19
Government grants
2023
2022
£
£
Arising from government grants
26,500
32,500
Included in the financial statements as follows:
Current liabilities
6,000
6,000
Non-current liabilities
20,500
26,500
26,500
32,500
Grants received are being amortised in line with the depreciation policy of the connected plant and machinery.
£6,000 has been released to the profit and loss account during the year.
At the year end, a balance of £26,500 remains in deferred income which will be amortised in future periods.
WEEDON PACKAGING SOLUTION CENTRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 23 -
20
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
159,974
142,440
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
The amount outstanding at the year end was £13,183 (2022 - £14,841).
21
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
100
100
100
100
22
Operating lease commitments
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2023
2022
£
£
Within one year
336,102
333,275
Between two and five years
630,497
927,845
966,599
1,261,120
23
Related party transactions
Transactions with related parties
During the year the company entered into the following transactions with related parties:
Sales
Sales
Purchases
Purchases
2023
2022
2023
2022
£
£
£
£
Other related parties
459,734
427,169
8,536,151
9,324,295
2023
2022
Amounts due to related parties
£
£
Other related parties
259,453
-
WEEDON PACKAGING SOLUTION CENTRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
23
Related party transactions
(Continued)
- 24 -
The following amounts were outstanding at the reporting end date:
2023
2022
Amounts due from related parties
£
£
Entities with control, joint control or significant influence over the company
108,999
82,816
Other related parties
1,800,924
1,558,742
24
Ultimate controlling party
The parent company is Weedon Holdings Limited, a company incorporated in England and Wales. Weedon Holdings Limited's registered office is located at 110 Anglesey Business Park, Littleworth Road, Hednesford, Cannock, Staffordshire, WS12 1NR.
The ultimate controlling parties are Mr J Weedon and Mr P Weedon by virtue of their shareholdings in the parent company.
The smallest and largest group into which these accounts are consolidated are headed and prepared by Weedon Holdings Limited, accounts for which are available from its registered office.
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